Exhibit 99.1
PRESS RELEASE
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Reckson Associates Realty Corp.
225 Broadhollow Road
Melville, New York 11747
(631) 694-6900 (Phone)
(631) 622-6790 (Facsimile)
Contact: Scott Rechler, Co-CEO
Michael Maturo, CFO
________________________________________________________________________
FOR IMMEDIATE RELEASE
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Reckson Associates Realty Corp. Provides Data on
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Leases with WorldCom/MCI
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(Melville, New York, June 28, 2002) - Reckson Associates Realty Corp. (NYSE:
RA) today provided detail on the Company's leases with WorldCom/MCI and its
affiliates. The Company leases approximately 547,000 square feet to
WorldCom/MCI in 15 buildings located throughout the Company's New York
Tri-State area portfolio. The total annualized base rental revenue from these
leases amounts to approximately $12.4 million, or 2.5%, of the Company's total
annualized rental revenue, making it the Company's second largest tenant based
on rental revenue contribution on a consolidated basis. Total annualized
escalation and reimbursement revenue related to the WorldCom/MCI leases
amounts to $3.2 million, or 0.7% of total annualized rental revenue.
Set forth in the tables below are certain qualitative and quantitative metrics
relating to the WorldCom/MCI leases and the relevant submarkets.
WorldCom/MCI occupancy by submarket:
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Submarket # Of WorldCom/MCI Square Lease Annualized Annualized Escalation
Bldgs. Feet Expirations Base Rental and Reimbursement
Revenue Rental Revenue
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Westchester:
Eastern 4 300,000 2006-2007 $5.7 Million $2.5 Million
White Plains 2 19,800 2002-2007 $0.4 Million -
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Long Island: (a)
Central Nassau 2 165,000 2004-2010 $4.6 Million $0.4 Million
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New York City:
Downtown 1 34,900 2002-2006 $0.8 Million $0.1 Million
Midtown 3 10,400 2004-2006 $0.5 Million $0.1 Million
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Connecticut:
Stamford 3 16,600 2005-2011 $0.4 Million $0.1 Million
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(a) Includes one lease encompassing approximately 37,000 square feet with
annualized rental revenue of approximately $1.2 million in one of the
Company's 51% owned joint venture properties.
Class A office occupancy data by affected submarkets:
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Submarket March 31, 2002 March 31, 2002 Total RA Space Total Space
RA Occupancy in Submarket Class A in Class A in Class A
Submarket Overall Vacancy Rate(a) Submarket Submarket (a)
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Westchester:
Eastern 98.8% 10.5% 541,884 5,912,918
White Plains 96.1% 23.6% 668,916 5,175,796
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Long Island:
Central Nassau 96.8% 10.0% 1,531,021 4,047,802
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New York City:
Downtown 96.2% 12.5% 466,226 45,375,476
Midtown 97.8% 8.4% 3,032,167 180,177,896
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Connecticut:
Stamford 93.9% 13.7% 1,123,915 5,417,760
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(a) Source: Cushman & Wakefield
Description of WorldCom/MCI uses by submarket:
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Type of Use Submarket(s) Square Feet
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Call Center Central Nassau - LI 127,800
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Switch and Equipment Eastern - WC, Central Nassau - LI, 34,100
Stamford - CT, Downtown and Midtown - NYC
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Sales Offices Central Nassau - LI 37,300
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Executive Offices Eastern and White Plains - WC, 227,500
Downtown - NYC
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Telecom Sales Offices Eastern - WC 30,000
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Telecom Executive Offices Eastern - WC 90,000
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All of WorldCom/MCI's leases with Reckson are current on base rental payments
through June 30, 2002. The Company holds security deposits in the amount of
approximately $863,000 relating to these leases. As of June 28, 2002, there is
approximately $192,000 of expense reimbursements billed but not yet paid.
In addition, Reckson is providing detail on the Company's largest 25 tenants
by consolidated base rental revenue.
Top 25 Tenants:
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Tenant Name Tenant Type Square Feet Percent of Total
Annualized
Rental Revenue
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Debevoise & Plimpton (a) Office 465,420 5.1%
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WorldCom/MCI (a) Office 547,018 2.5%
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Shulte Roth & Zabel (a) Office 230,621 2.2%
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American Express (a) Office 238,261 1.5%
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Banque Nationale De Paris (a) Office 144,334 1.4%
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HQ Global Workplaces (a) Office/Industrial 201,900 1.3%
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Bell Atlantic Office 208,661 1.1%
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DraftWorldwide (a) Office 124,008 1.1%
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Kramer Levin Naftalis & Frankel LLP (a) Office 140,892 1.1%
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United Distillers Office 137,918 0.8%
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State Farm (a) Office 142,650 0.8%
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Waterhouse Securities Office 127,143 0.8%
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Prudential (a) Office 219,416 0.7%
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Novartis (a) Office 150,747 0.7%
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Metromedia Fiber Network Inc. Office 112,075 0.6%
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D.E. Shaw Office 89,526 0.6%
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JP Morgan Chase Bank (a) Office 69,527 0.6%
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Vytra Healthcare Office 105,612 0.6%
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Hoffman-La Roche Inc. Office 120,736 0.6%
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Heller Ehrman White & McAuliffe LLP Office 54,815 0.5%
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Practicing Law Institute Office 62,000 0.5%
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Estee Lauder Industrial 370,000 0.5%
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National Health Lab Inc. Office 108,000 0.5%
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Lockheed Martin Corporation Office 123,554 0.5%
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Radianz U.S. No.2 Inc. Office 130,009 0.5%
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(a) Part or all of space occupied by tenant is in a 51% or more owned joint
venture building.
Reckson Associates Realty Corp. is a self-administered and self-managed real
estate investment trust (REIT) specializing in the acquisition, leasing,
financing, management, and development of office and industrial properties.
Reckson's core growth strategy is focused on the markets surrounding and
including New York City. The Company is one of the largest publicly traded
owners, managers and developers of Class A office and industrial properties in
the New York Tri-State area, with 181 properties comprised of approximately
20.5 million square feet either owned or controlled. For additional
information on Reckson Associates Realty Corp., please visit the Company's web
site at www.reckson.com.
Certain matters discussed herein are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Although the
Company believes the expectations reflected in such forward-looking statements
are based on reasonable assumptions, forward-looking statements are not
guarantees of results and no assurance can be given that the expected results
will be delivered. Such forward-looking statements are subject to certain
risks, trends and uncertainties that could cause actual results to differ
materially from those expected. Among those risks, trends and uncertainties
are the general economic climate, including the conditions affecting
industries in which our principal tenants compete; changes in the supply of
and demand for office and industrial properties in the New York Tri-State
area; changes in interest rate levels; downturns in rental rate levels in our
markets and our ability to lease or re-lease space in a timely manner at
current or anticipated rental rate levels; the availability of financing to us
or our tenants; changes in operating costs, including utility costs; repayment
of debt owed to the Company by third parties (including FrontLine Capital
Group); risks associated with joint ventures; and other risks associated with
the development and acquisition of properties, including risks that
development may not be completed on schedule, that the tenants will not take
occupancy or pay rent, or that development or operating costs may be greater
than anticipated. For further information on factors that could impact
Reckson, reference is made to Reckson's filings with the Securities and
Exchange Commission. Reckson is subject to the reporting requirements of the
Securities and Exchange Commission and undertakes no responsibility to update
or supplement information contained in this press release that subsequently
becomes untrue.
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