RECKSON ASSOCIATES REALTY CORP.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
FOR THE FOURTH QUARTER/YEAR ENDED DECEMBER 31, 2000
REPORTING PERIOD HIGHLIGHTS
- ---------------------------
o REPORTED DILUTED FFO OF $.67 PER SHARE FOR THE FOURTH QUARTER OF 2000,
AS COMPARED TO $.59 PER SHARE FOR THE COMPARABLE 1999 PERIOD,
REPRESENTING AN INCREASE OF 13.6%.
o REPORTED DILUTED FFO OF $2.59 PER SHARE FOR THE YEAR ENDED DECEMBER 31,
2000, AS COMPARED TO $2.31 PER SHARE FOR THE COMPARABLE 1999 PERIOD,
REPRESENTING AN INCREASE OF 12.1%.
o GENERATED A 10.6% INCREASE (CASH) AND 10.2% INCREASE (GAAP) IN SAME
PROPERTY NOI FOR THE FOURTH QUARTER OF 2000. GENERATED A 5.2% INCREASE
(CASH) AND 6.7% INCREASE (GAAP) IN SAME PROPERTY NOI FOR THE 12 MONTHS
ENDED DECEMBER 31, 2000.
o GENERATED SAME SPACE AVERAGE RENT GROWTH OF 24.0% FOR OFFICE AND 17.9%
FOR INDUSTRIAL/R&D FOR THE FOURTH QUARTER OF 2000. GENERATED SAME SPACE
AVERAGE RENT GROWTH OF 17.5% FOR OFFICE AND 18.7% FOR INDUSTRIAL/R&D
FOR THE 12 MONTHS ENDED DECEMBER 31, 2000.
o EXECUTED 295 LEASES TOTALING 3,980,168 SQUARE FEET.
o REACHED REALIZATION ON 2.9 MILLION SQUARE FEET OF VALUE CREATION
PROJECTS FOR A TOTAL INVESTMENT OF $528 MILLION THAT ARE ESTIMATED TO
GENERATE AN AVERAGE NOI RETURN OF 12.2%.
o WITHDREW OFFER TO PURCHASE THE TRACT OF LAND WHICH IS PART OF THE
PILGRIM STATE PROPERTY FROM NEW YORK STATE.
RECKSON ASSOCIATES REALTY CORP.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
FOR THE QUARTER ENDING DECEMBER 31, 2000
TABLE OF CONTENTS
-----------------
PAGE
----
o Company Background................................................... 1
o Summary Statement of Operating Data.................................. 5
o Selected Financial Information....................................... 6
o Funds from Operations Analysis....................................... 7
o Cash Available for Distribution Analysis............................. 8
o Balance Sheet........................................................ 9
o Ratios Computed for Industry Comparisons.............................10
o Core Operating Results
o Occupancy Analysis..........................................11
o Executed Lease and Renewal Analysis.........................15
o Lease Expiration Analysis...................................16
o Portfolio Snapshot..........................................23
o Capital Expenditure Analysis................................25
o Market Statistics
o Market Overview Analysis....................................26
o Long Island Sub-market Analysis.............................28
o Westchester Sub-market Analysis.............................30
o New Jersey Sub-market Analysis..............................32
o New York City Sub-market Analysis...........................34
o Value Creation Pipeline Statistics...................................36
THIS INFORMATION CONTAINS FORWARD-LOOKING INFORMATION THAT IS SUBJECT TO CERTAIN
RISKS, TRENDS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE PROJECTED. AMONG THOSE RISKS, TRENDS AND UNCERTAINTIES ARE
THE GENERAL ECONOMIC CLIMATE; THE SUPPLY OF AND DEMAND FOR OFFICE AND INDUSTRIAL
PROPERTIES IN THE NEW YORK TRI-STATE AREA; INTEREST RATE LEVELS; DOWNTURNS IN
RENTAL RATE LEVELS IN THE COMPANY'S MARKETS; THE AVAILABILITY OF FINANCING; 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
INFORMATION CONTAINED IN THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA PACKAGE.
# # #
CORE IDEOLOGY
VISION
- ------
Reckson will be the "Landlord of Choice" in the New York Tri-State area.
MISSION
- -------
We are in the business of improving the quality of life in the workplace through
innovation, design excellence and providing premier service.
VALUES
- ------
o Tenant satisfaction comes first
o Do what is right by acting honestly, fairly and maintaining integrity
o Act as a team, share knowledge, foster a challenging and rewarding work
experience for all employees
o Strive for continued improvement individually and continued progress as
a Company
o Be responsible to the communities in which we operate
o Treat our shareholders as we would treat our partners
By acting in this manner, we will maximize the value of our Company.
[GRAPHIC OMITTED]
COMPANY BACKGROUND
- ------------------
Reckson Associates Realty Corp. ("Reckson") is a self-administered and
self-managed real estate investment trust ("REIT") that is one of the largest
publicly traded owners, developers and managers of Class A office and industrial
properties in the New York Tri-State area. Reckson is structured as an UPREIT,
therefore its property operations are conducted through Reckson Operating
Partnership, a limited partnership in which the Company is the sole general
partner.
On June 2, 1995, Reckson successfully completed its initial public offering.
Subsequently, Reckson expanded from its Long Island base and established
operating divisions in Westchester, Connecticut, New Jersey and New York City.
Each division was opened by acquiring a critical mass of assets and a local
management team which had significant experience, local market expertise and
well-established relationships in each of their respective markets.
Through a predecessor entity, Reckson commenced operations in 1958 and grew
steadily through the 1960s, 1970s, 1980s and 1990s by developing and
redeveloping Class A office and industrial properties throughout Long Island.
Today, Reckson owns 188 properties comprised of approximately 21.3 million
square feet located throughout the New York Tri-State area markets. These
properties are comprised of 14.4 million square feet of office space and 6.9
million square feet of industrial space. Reckson also owns approximately 308
acres of unencumbered land which is either located contiguous to one of the
Company's existing properties or on major thoroughfares.
Since completing its initial public offering in June 1995, Reckson has acquired,
contracted to acquire or developed approximately 16.8 million square feet of
office and industrial real estate assets for approximately $2.1 billion and has
generated a total return to its initial Class A Common shareholders of
approximately 196% for the period June 2, 1995 through December 31, 2000.
Reckson's management currently owns approximately 9% of the equity of the
Company.
Reckson is a fully integrated real estate company, having in-house expertise in
leasing, design and development, construction, property and asset management,
architectural services and financial controls, reporting and planning.
INVESTOR INFORMATION
- --------------------
RECKSON ASSOCIATES
- ------------------
225 Broadhollow Road
Melville, New York 11747
(631) 694-6900 (Phone)
(631) 622-6790 (Facsimile)
Donald Rechler Co-Chief Executive Officer
Chairman of the Board
Scott Rechler Co-Chief Executive Officer
President
Michael Maturo Executive Vice President
Chief Financial Officer
RESEARCH COVERAGE
- -----------------
CIBC World Markets Anthony Paolone 212/667-8116
Credit Suisse First Boston Lawrence Raiman 212/538-2380
Deutsche Banc Alex. Brown Louis Taylor 212/469-4912
Goldman Sachs David Kostin 212/902-6781
Greenstreet Advisors John Lutzius 949/640-8780
Legg Mason David Fick/Ken Weinberg 410/454-5081
Lehman Brothers David Shulman/Stuart Axelrod 212/526-3413
McDonald & Company Anatole Pevnev 216/443-2300
Merrill Lynch Steve Sakwa/Rahul Bhattacharjee 212/449-0335
Salomon Smith Barney Jonathan Litt/Gary Boston 212/816-0231
TIMING
- ------
Quarterly results will be announced according to the following anticipated
schedule:
First Quarter Early May
Second Quarter Early August
Third Quarter Early November
Fourth Quarter and Year-End Late February
STOCK DATA
- ----------
Reckson Associates' class A common stock is traded primarily on the New York
Stock Exchange under the symbol: RA. The following summarizes recent activity of
Reckson's class A common stock:
- --------------------------------------------------------------------------------------------------------------------------
3rd 4th January 1, 2001
Quarter Quarter to February 28,
2000 2000 2001
- --------------------------------------------------------------------------------------------------------------------------
High Price* $ 26.81 $ 26.00 $ 25.875
- --------------------------------------------------------------------------------------------------------------------------
Low Price* $ 23.63 $ 21.875 $ 22.69
- --------------------------------------------------------------------------------------------------------------------------
Closing Price* $ 25.50 $ 25.063 $ 23.30
- --------------------------------------------------------------------------------------------------------------------------
Average daily trading volume* 183,787 240,013 213,093
- --------------------------------------------------------------------------------------------------------------------------
Indicated dividend per share** $ 1.544 $ 1.544 $ 1.544
- --------------------------------------------------------------------------------------------------------------------------
Closing dividend yield 6.05% 6.16% 6.63%
- --------------------------------------------------------------------------------------------------------------------------
Closing shares and units outstanding (thousands) 52,986 53,047 53,047
- --------------------------------------------------------------------------------------------------------------------------
Closing market value of shares and units outstanding (thousands) $1,351,100 $1,329,500 $1,236,000
- --------------------------------------------------------------------------------------------------------------------------
<FN>
* New York Stock Exchange trades only
** On an annual basis
</FN>
OFFICE INDUSTRIAL COMPOSITE:
Comparitive Market Performance
Monthly Indexed Class A Common Stock Price History
SPIEKER PROPERTIES
SL GREEN REALTY
ARDEN REALTY [GRAPHIC OMITTED]
PRENTISS PROPERTIES
KILROY REALTY
HIGHWOODS Daily from 1/1/2000 to 12/31/2000
LIBERTY PROPERTY
MACK CALI -Reckson Associates Realty -Office Industrial Composite
EQUITY OFFICE -Wilshire REIT Index -S+P 500
CARRAMERICA
STOCK DATA CONTINUED...
Reckson Associates' class B common stock is traded primarily on the New York
Stock Exchange under the symbol: RA.B. The following summarizes recent activity
of Reckson's class B common stock:
- --------------------------------------------------------------------------------------------------------------------------
3rd 4th January 1, 2001
Quarter Quarter to February 28,
2000 2000 2001
- --------------------------------------------------------------------------------------------------------------------------
High Price* $ 27.56 $27.5625 $ 27.50
- --------------------------------------------------------------------------------------------------------------------------
Low Price* $ 24.63 $ 22.50 $ 23.80
- --------------------------------------------------------------------------------------------------------------------------
Closing Price* $ 26.75 $ 27.188 $ 24.10
- --------------------------------------------------------------------------------------------------------------------------
Average daily trading volume* 49,998 78,152 62,950
- --------------------------------------------------------------------------------------------------------------------------
Indicated dividend per share** $ 2.40 $ 2.40 $ 2.40
- --------------------------------------------------------------------------------------------------------------------------
Closing dividend yield 8.97% 8.83% 9.96%
- --------------------------------------------------------------------------------------------------------------------------
Closing shares outstanding (thousands) 10,284 10,284 10,284
- --------------------------------------------------------------------------------------------------------------------------
Closing market value of shares outstanding (thousands) $275,100 $279,600 $247,800
- --------------------------------------------------------------------------------------------------------------------------
<FN>
* New York Stock Exchange trades only
** On an annual basis
</FN>
Reckson Associates' series A preferred stock is traded primarily on the New York
Stock Exchange under the symbol: RA.A (pfd). The following summarizes recent
activity of Reckson's series A preferred stock:
- --------------------------------------------------------------------------------------------------------------------------
3rd 4th January 1, 2001
Quarter Quarter to February 28,
2000 2000 2001
- --------------------------------------------------------------------------------------------------------------------------
High Price* $ 24.31 $ 24.00 $ 24.13
- --------------------------------------------------------------------------------------------------------------------------
Low Price* $ 21.88 $ 20.75 $ 21.70
- --------------------------------------------------------------------------------------------------------------------------
Closing Price* $ 23.38 $ 23.63 $ 22.20
- --------------------------------------------------------------------------------------------------------------------------
Average daily trading volume* 23,270 39,219 51,590
- --------------------------------------------------------------------------------------------------------------------------
Indicated dividend per share** $ 1.9064 $ 1.9064 $ 1.9064
- --------------------------------------------------------------------------------------------------------------------------
Closing dividend yield 8.15% 8.07% 8.59%
- --------------------------------------------------------------------------------------------------------------------------
Closing shares outstanding (thousands) 9,192 9,192 9,192
- --------------------------------------------------------------------------------------------------------------------------
Closing market value of shares outstanding (thousands) $214,900 $217,200 $204,100
- --------------------------------------------------------------------------------------------------------------------------
<FN>
* New York Stock Exchange trades only
** On an annual basis
</FN>
RECKSON ASSOCIATES REALTY CORP.
SUMMARY STATEMENT OF OPERATING DATA
DECEMBER 31, 2000
(In Thousands)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, 2000 DECEMBER 31, 2000
-------------------- -----------------
2000 1999 2000 1999
---- ---- ---- ----
REVENUES:
Base rents $105,974 $ 89,388 $397,327 $324,146
Tenant escalation and reimbursements 14,020 12,465 54,750 44,989
------ ------- ------ ------
119,994 101,853 452,077 369,135
------- ------- ------- -------
OPERATING EXPENSES:
Operating expenses 23,805 19,420 91,265 72,023
Real estate taxes 17,465 15,448 66,191 53,971
------ ------ ------ ------
Total operating expenses 41,270 34,868 157,456 125,994
------ ------ ------- -------
Net Operating Income 78,724 66,985 294,621 243,141
Gross margiin% 65.61% 65.77% 65.17% 65.87%
OTHER INCOME:
Equity in earnings of service companies and real
estate joint ventures 489 776 4,383 2,148
Interest income on mortgage notes and notes receivable 1,836 2,316 8,212 7,944
Gain (loss) on dispositions of real estate (3,200) -- 18,669 10,052
Other 7,403 5,516 26,597 13,874
----- ----- ------ ------
6,528 8,608 57,861 34,018
----- ----- ------ ------
OTHER EXPENSES:
Interest expense 23,670 20,700 96,337 74,320
Marketing general and administrative 7,626 8,052 27,371 24,293
Depreciation and amortization 25,028 18,418 92,547 74,504
------ ------ ------ ------
56,324 47,170 216,255 173,117
------ ------ ------- -------
Distributions to preferred unitholders 660 661 2,641 2,641
Minority partners' interests in consolidated
partnerships 3,348 1,869 9,120 6,802
Limited partners' minority interest in
the operating partnership 2,256 2,326 11,669 9,407
----- ----- ------ -----
6,264 4,856 23,430 18,850
----- ----- ------ ------
INCOME BEFORE DIVIDENDS TO PREFERRED SHAREHOLDERS
AND EXTRAORDINARY LOSS 22,664 23,567 112,797 85,192
Dividends to preferred shareholders 5,425 7,325 25,371 24,360
Extraordinary loss on extinguishment of debt -- -- 1,396 555
----- ----- ------ ------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $17,239 $16,242 $86,030 $60,277
======= ======= ======= =======
RECKSON ASSOCIATES REALTY CORP.
DECEMBER 31, 2000
(IN THOUSANDS EXCEPT PER SHARE DATA)
SELECTED FINANCIAL INFORMATION:
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------- -----------------------
2000 1999 2000 1999
----------- ---------- ---------- ----------
OPERATING DATA:
Revenues:
Operating revenues $ 129,722 $ 110,461 $ 491,269 $ 393,101
Gain (loss) on dispositions of real estate (3,200) -- 18,669 10,052
----------- ---------- ---------- ----------
Total revenues: $ 126,522 $ 110,461 $ 509,938 $ 403,153
=========== ========== ========== ==========
Income before extraordinary loss, limited partners' minority interest
in the operating partnership, distributions to preferred
unitholders and dividends to preferred shareholders $ 25,580 $ 26,554 $ 127,107 $ 97,240
Less:
Extraordinary loss on extinguishment of debt -- -- 1,396 555
Limited partners' minority interest in the operating partnership 2,256 2,326 11,669 9,407
Distributions to preferred unitholders 660 661 2,641 2,641
Dividends to preferred shareholders 5,425 7,325 25,371 24,360
----------- ---------- ---------- ----------
Net Income available to common shareholders $ 17,239 $ 16,242 $ 86,030 $ 60,277
=========== ========== ========== ==========
Funds From Operations:
Basic $ 44,859 $ 35,894 $ 167,782 $ 130,820
=========== ========== ========== ==========
Diluted $ 52,538 $ 45,473 $ 202,169 $ 161,681
=========== ========== ========== ==========
Cash Available for Distribution:
Basic $ 27,743 $ 28,484 $ 112,920 $ 110,825
=========== ========== ========== ==========
Diluted $ 27,743 $ 38,063 $ 114,008 $ 141,686
=========== ========== ========== ==========
Interest expense $ 23,670 $ 20,700 $ 96,337 $ 74,320
=========== ========== ========== ==========
Capitalized interest expense $ 3,015 $ 2,525 $ 11,462 $ 9,806
=========== ========== ========== ==========
Non-incremental capitalized improvements $ 1,002 $ 1,043 $ 4,775 $ 3,355
=========== ========== ========== ==========
Non-incremental capitalized tenant improvements
and leasing commissions $ 2,221 $ 2,404 $ 11,203 $ 6,077
=========== ========== ========== ==========
Marketing, general and administrative expenses $ 7,626 $ 8,052 $ 27,371 $ 24,293
=========== ========== ========== ==========
DECEMBER 31,
-----------------
2000 1999
---- -----
BALANCE SHEET DATA:
DECEMBER 31, 2000
Commercial real estate investments before depreciation $2,770,607 $2,208,399
---------- ----------
Investment in mortgage notes and notes receivable $ 58,220 $ 352,466
---------- ----------
Investment in real estate joint ventures $ 43,534 $ 31,531
========== ==========
Total assets $2,998,030 $2,733,878
========== ==========
Total debt $1,394,956 $1,281,087
========== ==========
Total debt (Including joint venture debt and net of minority
partners' interests) $1,380,814 $1,266,911
========== ==========
Book equity (Total Assets less Total Debt) $1,603,074 $1,452,791
---------- ----------
MARKET CAPITALIZATION DATA:
Common shares and units $1,609,072 $1,219,527
---------- ----------
Preferred shares, units and interest $ 407,318 $ 507,318
========== ==========
Total market capitalization $3,397,204 $2,993,756
========== ==========
RECKSON ASSOCIATES REALTY CORP.
FUNDS FROM OPERATIONS
DECEMBER 31, 2000
(IN THOUSANDS EXCEPT PER SHARE / UNIT DATA)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
--------------------- --------------------
2000 1999 2000 1999
-------- -------- -------- --------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 17,239 $ 16,242 $ 86,030 $ 60,277
Add back:
Real estate depreciation and amortization 24,368 17,719 90,552 72,124
Minority partners' interests in consolidated partnerships 3,348 1,869 9,120 6,802
Limited partners' minority interest in the operating partnership 2,256 2,326 11,669 9,407
Extraordinary loss on extinguishment of debt -- -- 1,396 555
Less :
Gain (loss) on dispositions of real estate (3,200) -- 18,669 10,052
Amounts distributable to minority partners in consolidated partnerships 5,552 2,262 12,316 8,293
-------- -------- -------- --------
BASIC FUNDS FROM OPERATIONS ("FFO") 44,859 35,894 167,782 130,820
Add:
Dividends and distributions on dilutive shares and units 7,679 9,579 34,387 30,861
-------- -------- -------- --------
DILUTED FFO $ 52,538 $ 45,473 $202,169 $161,681
======== ======== ======== ========
BASIC FFO CALCULATIONS:
Weighted average common shares outstanding 55,610 50,843 53,354 47,014
Weighted average units of limited partnership interest outstanding 7,695 7,701 7,696 7,705
-------- -------- -------- --------
Basic weighted average common shares and units outstanding 63,305 58,544 61,050 54,719
======== ======== ======== ========
Basic FFO per weighted average common share or unit $ 0.71 $ 0.61 $ 2.75 $ 2.39
======== ======== ======== ========
Basic weighted average dividends or distributions per share or unit $ 0.42 $ 0.41 $ 1.67 $ 1.55
======== ======== ======== ========
Basic FFO payout ratio 59.5% 66.1% 60.7% 64.8%
======== ======== ======== ========
DILUTED FFO CALCULATIONS:
Basic weighted average common shares and units outstanding 63,305 58,544 61,050 54,719
Adjustments for dilutive FFO weighted average shares and units outstanding:
Add:
Weighted average common stock equivalents 628 373 475 406
Weighted average shares of Series A Preferred Stock 8,060 8,060 8,060 8,060
Weighted average shares of Series B Preferred Stock 1,919 5,758 3,713 3,360
Weighted average shares of minority partners preferred interest 3,454 3,454 3,454 2,101
Weighted average units of preferred limited partnership interest 1,367 1,367 1,367 1,367
-------- -------- -------- --------
Dilutive FFO weighted average shares and units outstanding 78,733 77,556 78,119 70,013
======== ======== ======== ========
Diluted FFO per weighted average share or unit $ 0.67 $ 0.59 $ 2.59 $ 2.31
======== ======== ======== ========
Diluted weighted average dividends or distributions per share or unit $ 0.41 $ 0.40 $ 1.64 $ 1.53
======== ======== ======== ========
Diluted FFO payout ratio 62.1% 67.7% 63.3% 66.1%
======== ======== ======== ========
RECKSON ASSOCIATES REALTY CORP.
CASH AVAILABLE FOR DISTRIBUTION
DECEMBER 31, 2000
(IN THOUSANDS EXCEPT PER SHARE / UNIT DATA)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
-------------------- --------------------
2000 1999 2000 1999
-------- -------- -------- --------
BASIC FUNDS FROM OPERATIONS $ 44,859 $ 35,894 $167,782 $130,820
Less :
Straight line rents (Note a) 13,893 3,963 38,884 10,563
Non-incremental capitalized tenant improvements and leasing commissions 2,221 2,404 11,203 6,077
Non-incremental capitalized Improvements 1,002 1,043 4,775 3,355
-------- -------- -------- --------
BASIC CASH AVAILABLE FOR DISTRIBUTION ("CAD") 27,743 28,484 112,920 110,825
Add:
Dividends and distributions on dilutive shares and units -- 9,579 1,088 30,861
-------- -------- -------- --------
DILUTED CAD $ 27,743 $ 38,063 $114,008 $141,686
======== ======== ======== ========
BASIC CAD CALCULATIONS:
Weighted average common shares outstanding 55,610 50,843 53,354 47,014
Weighted average units of limited partnership interest outstanding 7,695 7,701 7,696 7,705
-------- -------- -------- --------
Basic weighted average common shares and units outstanding 63,305 58,544 61,050 54,719
======== ======== ======== ========
Basic CAD per weighted average common share or unit $ 0.44 $ 0.49 $ 1.85 $ 2.03
======== ======== ======== ========
Basic weighted average dividends or distributions per share or unit $ 0.42 $ 0.41 $ 1.67 $ 1.55
======== ======== ======== ========
Basic CAD payout ratio 96.2% 83.2% 90.2% 76.5%
======== ======== ======== ========
DILUTED CAD CALCULATIONS:
Basic weighted average common shares and units outstanding 63,305 58,544 61,050 54,719
Adjustments for dilutive CAD weighted average shares and units outstanding:
Add:
Weighted average common stock equivalents 628 373 475 406
Weighted average shares of Series A Preferred Stock -- 8,060 -- 8,060
Weighted average shares of Series B Preferred Stock -- 5,758 -- 3,360
Weighted average shares of minority partners preferred interest -- 3,454 -- 2,101
Weighted average units of preferred limited partnership interest -- 1,367 598 1,367
-------- -------- -------- --------
Dilutive CAD weighted average shares and units outstanding 63,933 77,556 62,123 70,013
======== ======== ======== ========
Diluted CAD per weighted average share or unit $ 0.43 $ 0.49 $ 1.84 $ 2.02
======== ======== ======== ========
Diluted weighted average dividends or distributions per share or unit $ 0.42 $ 0.40 $ 1.67 $ 1.53
======== ======== ======== ========
Diluted CAD payout ratio 97.0% 80.8% 90.8% 75.5%
======== ======== ======== ========
<FN>
- --------------
Notes:
(a) Includes straight line rental income attributable to the property located at 919 Third Avenue, New York, N.Y of $9,765, $755,
$23,324 and $1,750, respectively.
</FN>
RECKSON ASSOCIATES REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
D R A F T
DECEMBER 31,
---------------------------
2000 1999
----------- -----------
ASSETS
Commercial real estate properties, at cost:
Land .............................................................................................. $ 396,482 $ 276,204
Buildings and improvements ........................................................................ 2,219,448 1,802,611
Developments in progress:
Land .............................................................................................. 60,918 60,894
Development costs ................................................................................. 93,759 68,690
Furniture, fixtures and equipment .................................................................... 7,138 6,473
----------- -----------
2,777,745 2,214,872
Less accumulated depreciation .................................................................. (288,479) (218,385)
----------- -----------
2,489,266 1,996,487
Investments in real estate joint ventures ............................................................ 43,534 31,531
Investment in mortgage notes and notes receivable .................................................... 58,220 352,466
Cash and cash equivalents ............................................................................ 17,843 21,368
Tenant receivables ................................................................................... 11,511 5,117
Investments in and advances to affiliates ............................................................ 177,474 178,695
Deferred rents receivable ............................................................................ 67,930 32,132
Prepaid expenses and other assets .................................................................... 68,895 66,977
Contract and land deposits and pre-acquisition costs ................................................. 1,676 9,585
Deferred lease and loan costs, less accumulated amortization of $32,773 and $24,484, respectively .... 61,681 39,520
----------- -----------
Total Assets ......................................................................................... $ 2,998,030 $ 2,733,878
=========== ===========
LIABILITIES
Mortgage notes payable ............................................................................... $ 728,971 $ 459,174
Unsecured credit facility ............................................................................ 216,600 297,600
Unsecured term loan .................................................................................. -- 75,000
Senior unsecured notes ............................................................................... 449,385 449,313
Accrued expenses and other liabilities ............................................................... 95,393 82,079
Dividends and distributions payable .................................................................. 28,801 27,166
----------- -----------
Total Liabilities .................................................................................... 1,519,150 1,390,332
----------- -----------
Minority interests' in consolidated partnerships ..................................................... 226,350 93,086
Preferred unit interest in the operating partnership ................................................. 42,518 42,518
Limited partners' minority interest in the operating partnership ..................................... 97,353 90,986
----------- -----------
366,221 226,590
----------- -----------
Commitments and other comments ....................................................................... -- --
STOCKHOLDERS' EQUITY
Preferred Stock, $.01 par value, 25,000,000 shares authorized
Series A preferred stock, 9,192,000 shares issued and outstanding ................................. 92 92
Series B preferred stock, 2,000,000 and 6,000,000 shares issued and outstanding, respectively ..... 20 60
Common Stock, $.01 par value, 100,000,000 shares authorized
Class A common stock, 45,352,286 and 40,375,506 shares issued and outstanding, respectively ....... 454 404
Class B common Stock, 10,283,513 and 10,283,763 shares issued and outstanding, respectively ....... 103 103
Additional paid in capital ........................................................................... 1,111,990 1,116,297
----------- -----------
Total Stockholders' Equity ........................................................................... 1,112,659 1,116,956
----------- -----------
Total Liabilities and Stockholders' Equity ........................................................... $ 2,998,030 $ 2,733,878
=========== ===========
RECKSON ASSOCIATES REALTY CORP.
DECEMBER 31, 2000
RATIOS COMPUTED FOR INDUSTRY COMPARISONS:
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------ ------------
2000 1999 2000 1999
---- ---- ---- ----
Debt Service Coverage Ratio 3.22 3.20 3.09 3.22
( Basic Funds from Operations + Interest expense + ==== ==== ==== ====
preferred dividends and distributions / Interest
expense + Principal )
Fixed Charge Coverage Ratio 2.55 2.30 2.38 2.35
( Basic Funds from Operations + Interest expense + ==== ==== ==== ====
preferred dividends and distributions / Interest
expense + preferred dividends and distributions + Principal )
Total Debt to Market Capitalization ratio as a percent 40.6% 42.3% 40.6% 42.3%
==== ==== ==== ====
Marketing, general and administrative expenses to total 6.03% 7.29% 5.37% 6.03%
revenues as a percent ==== ==== ==== ====
Non - Incremental Capital Expenditures to Net Operating 4.09% 5.15% 5.42% 3.88%
Income as a percent ==== ==== ==== ====
Fully diluted FFO Payout Ratio - (note 1) 62.10% 67.70% 63.30% 66.10%
( Dividends to fully diluted FFO as a percent ) ===== ===== ===== =====
Fully diluted CAD Payout Ratio - (note 2) 97.00% 80.80% 90.80% 75.50%
( Dividends to fully diluted CAD as a percent ) ===== ===== ===== =====
Note:
- ----
(1) Based on weighted average per share / unit dividends and distributions
of $.4145, $.3967, $1.6384 and $1.5272, respectively.
(2) Based on weighted average per share / unit dividends and distributions
of $.4211, $.3967, $1.6665 and $1.5272, respectively.
CORE OPERATING RESULTS
----------------------
RECKSON ASSOCIATES REALTY CORP.
OCCUPANCY ANALYSIS
DECEMBER 31, 2000
- -----------------------------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 2000 DECEMBER 31, 2000 (EXCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent Number of Rentable Percent of Percent
Property Buildings Square Feet Property Type Leased Buildings Square Feet Property Type Leased
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICE PROPERTIES
LONG ISLAND OFFICE PROPERTIES
Huntington Melville
Corporate Center
Melville, NY (1) . 6 777,279 5.5% 98.7% 6 777,279 5.5% 98.6%
Nassau West Corporate
Corporate Center (2)
Mitchell Field, NY 6 1,527,263 10.8% 97.6% 6 1,527,263 10.8% 98.9%
North Shore Atrium
Syosset, NY . . . . 2 310,064 2.2% 96.6% 2 304,177 2.1% 97.3%
Stand-alone Long Island
Office Properties . 12 1,487,867 10.5% 95.6% 12 1,486,629 10.5% 96.6%
---- --------- ---- ---- --------- ----
SUBTOTAL - LONG
ISLAND OFFICE 26 4,102,473 29.0% 97.9% 26 4,095,348 28.9% 98.0%
WESTCHESTER OFFICE PROPERTIES
Tarrytown Corporate Center
Tarrytown, NY . . 6 875,726 6.2% 93.5% 6 875,726 6.2% 94.8%
Reckson Executive Park
Rye Brook, NY . . 6 541,884 3.8% 99.0% 6 541,884 3.8% 98.3%
Summit at Valhalla
Valhalla, NY . . . 3 699,045 4.9% 94.2% 3 699,045 4.9% 94.9%
Mt. Pleasant Corporate Center
Valhalla, NY . . . 2 162,004 1.1% 98.1% 2 162,004 1.1% 95.6%
Stand-alone Westchester(3)
Office Properties . 7 1,012,714 7.2% 97.9% 7 1,012,714 7.2% 96.7%
---- --------- ---- ---- --------- ---
SUBTOTAL - WESTCHESTER
OFFICE 24 3,291,373 23.2% 95.9% 24 3,291,373 23.2% 96.0%
CONNECTICUT OFFICE PROPERTIES
Landmark Square
Stamford, CT . . . 6 798,321 5.6% 94.0% 6 798,321 5.6% 94.0%
Stamford Towers
Stamford, CT . . . 2 324,867 2.3% 98.8% 2 324,867 2.3% 99.6%
---- --------- ---- ---- -------- ---
SUBTOTAL - 8 1,123,188 7.9% 95.4% 8 1,123,188 7.9% 95.6%
CONNECTICUT OFFICE
---------------------------------------------------------
DECEMBER 31, 2000 (INCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent
Buildings Square Feet Property Type Leased
---------------------------------------------------------
OFFICE PROPERTIES
LONG ISLAND OFFICE PROPERTIES
Huntington Melville
Corporate Center
Melville, NY (1) . 7 1,054,779 7.3% 98.6%
Nassau West Corporate
Corporate Center (2)
Mitchell Field, NY 6 1,527,263 10.6% 98.9%
North Shore Atrium
Syosset, NY . . . . 2 304,177 2.1% 97.3%
Stand-alone Long Island
Office Properties . 12 1,486,629 10.3% 96.6%
---- --------- -----
SUBTOTAL - LONG ISLAND OFFICE 27 4,372,848 30.3% 98.0%
WESTCHESTER OFFICE PROPERTIES
Tarrytown Corporate Center
Tarrytown, NY . . 6 875,726 6.1% 94.8%
Reckson Executive Park
Rye Brook, NY . . 6 541,884 3.8% 98.3%
Summit at Valhalla
Valhalla, NY . . . 3 699,045 4.8% 94.9%
Mt. Pleasant Corporate Center
Valhalla, NY . . . 2 162,004 1.1% 95.6%
Stand-alone Westchester(3)
Office Properties . 7 1,012,714 7.0% 96.7%
---- --------- -----
SUBTOTAL - WESTCHESTER OFFICE 24 3,291,373 22.8% 96.0%
CONNECTICUT OFFICE PROPERTIES
Landmark Square
Stamford, CT . . . 6 798,321 5.5% 94.0%
Stamford Towers
Stamford, CT . . . 2 324,867 2.3% 99.6%
---- --------- -----
SUBTOTAL - 8 1,123,188 7.8% 95.6%
CONNECTICUT OFFICE
(1) Rentable square feet as of December 31, 2000 includes a recently completed
277,500 sf Class A office building; percent leased excludes this property.
(2) Does not include 27,013 square feet leased to the health club at Omni.
(3) Rentable square feet as of September 30, 2000 includes a 382,000 square
foot building under redevelopment which was 82% leased; percent leased as
of September 30, 2000 excludes this property. As of December 31, 2000 this
property is currently 96% leased.
OFFICE PROPERTIES (CONTINUED)
NEW JERSEY OFFICE PROPERTIES
- ---------------------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 2000 DECEMBER 31, 2000 (EXCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent Number of Rentable Percent of Percent
Property Buildings Square Feet Property Type Leased Buildings Square Feet Property Type Leased
- --------------------------------------- -----------------------------------------------------------------------------------
Executive Hill Office Park
West Orange, NJ . . . 4 391,382 2.8% 100.0% 4 391,382 2.8% 100.0%
------------------------------------------------
DECEMBER 31, 2000 (EXCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent
Buildings Square Feet Property Type Leased
------------------------------------------------
Executive Hill Office Park
West Orange, NJ . . . 4 391,382 2.7% 100.0%
RECKSON ASSOCIATES REALTY CORP.
OCCUPANCY ANALYSIS
DECEMBER 31, 2000
- ------------------------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 2000 DECEMBER 31, 2000 (EXCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent Number of Rentable Percent of Percent
Property Buildings Square Feet Property Type Leased Buildings Square Feet Property Type Leased
- ------------------------------------------------------------------------------------------------------------------------------
University Square
Princeton, NJ . . . . 3 131,105 0.9% 100.0% 3 131,105 0.9% 100.0%
Short Hills Office Center
Short Hills, NJ . . . 3 557,036 3.9% 99.7% 3 557,036 3.9% 100.0%
Stand-alone New Jersey
Office Properties . . 8 1,058,059 7.5% 95.0% 8 1,061,545 7.5% 96.9%
- --------- ---- - --------- ----
SUBTOTAL - NEW JERSEY OFFICE 18 2,137,582 15.1% 97.5% 18 2,141,068 15.1% 98.7%
NEW YORK CITY OFFICE PROPERTIES
120 W. 45th Street . 1 443,109 3.1% 100.0% 1 443,109 3.1% 100.0%
100 Wall Street . . . 1 458,626 3.2% 99.3% 1 458,626 3.2% 99.3%
810 Seventh Avenue 1 692,060 4.9% 97.3% 1 692,060 4.9% 95.1%
919 Third Avenue . 1 1,374,966 9.7% 96.6% 1 1,374,966 9.7% 97.9%
1350 Ave. of the Americas . . . 1 540,000 3.8% 95.0% 1 540,000 3.8% 92.8%
- ------- ---- - -------- ----
SUBTOTAL - NEW YORK
CITY OFFICE 5 3,508,761 24.8% 97.3% 5 3,508,761 24.8% 97.0%
SUBTOTAL-OFFICE PROPERTIES (1) 81 14,163,377 100.0% 97.0% 81 14,159,738 100.0% 97.2%
As a Percent of Total
Portfolio . . . . . . 68.1% 68.0%
---------------------------------------------------------
DECEMBER 31, 2000 (INCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent
Buildings Square Feet Property Type Leased
--------------------------------------------------------
University Square
Princeton, NJ . . . . 3 131,105 0.9% 100.0%
Short Hills Office Center
Short Hills, NJ . . . 3 557,036 3.9% 100.0%
Stand-alone New Jersey
Office Properties . . 8 1,061,545 7.4% 96.9%
- --------- ----
SUBTOTAL - NEW JERSEY OFFICE 18 2,141,068 14.8% 98.7%
NEW YORK CITY OFFICE PROPERTIES
120 W. 45th Street . 1 443,109 3.1% 100.0%
100 Wall Street . . . 1 458,626 3.2% 99.3%
810 Seventh Avenue 1 692,060 4.8% 95.1%
919 Third Avenue . 1 1,374,966 9.5% 97.9%
1350 Ave. of the Americas . . . 1 540,000 3.7% 92.8%
- ------- ----
SUBTOTAL - NEW YORK
CITY OFFICE 5 3,508,761 24.3% 97.0%
---
SUBTOTAL-OFFICE PROPERTIES (1) 82 14,437,238 100.0% 97.2%
As a Percent of Total
Portfolio . . . . . . 67.8%
(1) Percent leased excludes properties under development.
INDUSTRIAL PROPERTIES
LONG ISLAND INDUSTRIAL PROPERTIES
- ------------------------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 2000 DECEMBER 31, 2000 (EXCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent Number of Rentable Percent of Percent
Property Buildings Square Feet Property Type Leased Buildings Square Feet Property Type Leased
- ------------------------------------------------------------------------------------------------------------------------------
Vanderbilt Industrial Park (1)
Hauppauge, NY . . . . 47 2,379,895 41.8% 98.6% 47 2,379,895 41.8% 96.8%
Airport International Plaza
Bohemia, NY . . . . . 20 1,082,510 19.0% 98.2% 20 1,082,510 19.0% 97.7%
County Line Industrial Center
Melville, NY . . . . 4 342,174 6.0% 100.0% 4 342,174 6.0% 100.0%
Other Submarkets
---------------------------------------------------------
DECEMBER 31, 2000 (INCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent
Buildings Square Feet Property Type Leased
--------------------------------------------------------
Vanderbilt Industrial Park (1)
Hauppauge, NY . . . . 47 2,379,895 40.4% 96.8%
Airport International Plaza
Bohemia, NY . . . . . 21 1,288,510 21.9% 98.1%
County Line Industrial Center
Melville, NY . . . . 4 342,174 5.8% 100.0%
Other Submarkets
RECKSON ASSOCIATES REALTY CORP.
OCCUPANCY ANALYSIS
DECEMBER 31, 2000
- ------------------------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 2000 DECEMBER 31, 2000 (EXCLUDING DEVELOPMENT
& ACQUISITIONS)
Number of Rentable Percent of Percent Number of Rentable Percent of
Property Buildings Square Feet Property Type Leased Buildings Square Feet Property Type
- ------------------------------------------------------------------------------------------------------------------------------
Farmingdale . . . . . 3 520,615 9.2% 98.9% 3 520,615 9.2%
Melville . . . . . . 4 246,169 4.3% 100.0% 4 246,169 4.3%
Islip/Islandia . . . 6 212,400 3.7% 100.0% 6 212,400 3.7%
Hauppauge . . . . . 2 195,942 3.4% 97.4% 2 195,942 3.4%
Other . . . . . . . 8 708,740 12.5% 100.0% 8 708,740 12.5%
- ------- ----- - ------- -----
SUBTOTAL - LONG
ISLAND INDUSTRIAL 94 5,688,445 85.8% 98.7% 94 5,688,445 85.8%
Stand-alone Westchester (2)
Industrial Properties 3 163,000 2.5% 100.0% 3 163,000 2.5%
Stand-alone Connecticut
Industrial Properties 1 452,414 6.8% 100.0% 1 452,414 6.8%
Stand-alone New Jersey
Industrial Properties 5 324,254 4.9% 82.4% 5 324,254 4.9%
SUBTOTAL-INDUSTRIAL
PROPERTIES(3) 103 6,628,113 100.0% 98.0% 103 6,628,113 100.0%
As a Percent of Total Portfolio .. 31.8% 31.9%
RETAIL PROPERTIES 2 20,000 100.0% 100.0% 2 20,000 100.0%
As a Percent of Total
Portfolio 0.1% 0.1%
TOTAL - ALL 186 20,811,490 100.0% 97.3% 186 20,807,851 100.0%
PROPERTIES (3)
----------------------------------------------------------------------
DECEMBER 31, 2000 (INCLUDING DEVELOPMENT & ACQUISITIONS)
Percent Number of Rentable Percent of Percent
Leased Buildings Square Feet Property Type Leased
---------------------------------------------------------------------
Farmingdale . . . . . 98.9% 3 520,615 8.8% 98.9%
Melville . . . . . . 100.0% 4 246,169 4.2% 100.0%
Islip/Islandia . . . 100.0% 6 212,400 3.6% 100.0%
Hauppauge . . . . . 99.1% 2 195,942 3.3% 99.1%
Other . . . . . . . 100.0% 8 708,740 12.0% 100.0%
- ------- -----
SUBTOTAL - LONG
ISLAND INDUSTRIAL 98.1% 95 5,894,445 86.3% 98.2%
Stand-alone Westchester (2)
Industrial Properties 96.7% 3 163,000 2.4% 96.7%
Stand-alone Connecticut
Industrial Properties 100.0% 1 452,414 6.6% 100.0%
Stand-alone New Jersey
Industrial Properties 82.4% 5 324,254 4.7% 82.4%
SUBTOTAL-INDUSTRIAL PROPERTIES 97.4% 104 6,834,113 100.0% 97.5%
As a Percent of Total Portfolio 32.1%
RETAIL PROPERTIES 46.0% 2 20,000 100.0% 46.0%
As a Percent of Total
Portfolio 0.1%
TOTAL - ALL
PROPERTIES (3) 97.3% 188 21,291,351 100.0% 97.3%
(1) Rentable square feet includes a 56,875 square foot vacant building
under redevelopment; percent leased excludes this property.
(2) Rentable square feet as of September 30, 2000 includes a 45,000 square
foot building under redevelopment which was 22% leased; percent leased
as of September 30, 2000 excludes this property. As of December 31,
2000 this property is currently 88% leased.
(3) Percent leased excludes properties under development.
RECKSON ASSOCIATES REALTY CORP.
OCCUPANCY ANALYSIS
DECEMBER 31, 2000
RECKSON PORTFOLIO HISTORICAL OCCUPANCY
[GRAPHIC OMITTED]
[GRAPHIC OMITTED]
INDUSTRIAL OFFICE
---------- ------
DECEMBER 1996 96.3% 96.8%
DECEMBER 1997 95.8% 95.3%
DECEMBER 1998 96.4% 96.8%
DECEMBER 1999 96.0% 98.2%
DECEMBER 2000 97.2% 97.5%
Note: Percent leased excludes properties under development
RECKSON ASSOCIATES REALTY CORP.
EXECUTED LEASES AND RENEWAL ANALYSIS
DECEMBER 31, 2000
TOTAL PORTFOLIO
QUARTER ENDED DECEMBER 31, 2000
RESEARCH &
OFFICE (1) INDUSTRIAL (2) DEVELOPMENT (3) TOTAL
---------- -------------- --------------- -----
EXECUTED LEASES (8)
TOTAL PORTFOLIO
NUMBER OF EXECUTED LEASES 49 7 5 61
SQUARE FOOTAGE 611,851 262,610 65,066 939,527
AVERAGE RENT $29.96 $6.69 $18.67
AVERAGE EFFECTIVE RENT $26.67 $6.37 $17.03
LONG ISLAND PORTFOLIO
NUMBER OF EXECUTED LEASES 12 5 2 19
SQUARE FOOTAGE 205,780 246,460 16,498 468,738
AVERAGE RENT $25.69 $6.51 $17.39
AVERAGE EFFECTIVE RENT $21.99 $6.20 $16.37
WESTCHESTER PORTFOLIO
NUMBER OF EXECUTED LEASES 17 3 20
SQUARE FOOTAGE 133,190 48,568 181,758
AVERAGE RENT $26.42 $19.10
AVERAGE EFFECTIVE RENT $24.11 $17.26
CONNECTICUT PORTFOLIO
NUMBER OF EXECUTED LEASES 5 5
SQUARE FOOTAGE 24,049 24,049
AVERAGE RENT $33.57
AVERAGE EFFECTIVE RENT $31.76
NEW JERSEY PORTFOLIO
NUMBER OF EXECUTED LEASES 7 2 9
SQUARE FOOTAGE 180,514 16,150 196,664
AVERAGE RENT $21.73(9) $9.39
AVERAGE EFFECTIVE RENT $18.37(9) $8.96
NEW YORK CITY PORTFOLIO
NUMBER OF EXECUTED LEASES 8 8
SQUARE FOOTAGE 68,318 68,318
AVERAGE RENT $70.17(10)
AVERAGE EFFECTIVE RENT $65.94(10)
RENEWALS
LEASES EXPIRING DURING PERIOD 45 8 2 55
SQUARE FOOTAGE EXPIRING DURING PERIOD 252,850 84,450 13,204 350,504
SQUARE FOOTAGE RENEWED DURING PERIOD 172,134 28,150 13,204 213,488
RENEWAL PERCENTAGE 68.1% 33.3% 100.0% 60.9%
12 MONTHS ENDED DECEMBER 31, 2000
RESEARCH &
OFFICE (4) INDUSTRIAL (5) DEVELOPMENT (6) TOTAL
---------- -------------- --------------- -----
EXECUTED LEASES (8)
TOTAL PORTFOLIO
NUMBER OF EXECUTED LEASES 248 38 9 295
SQUARE FOOTAGE 2,692,518 1,128,593 159,057 3,980,168
AVERAGE RENT $28.85 $6.97 $13.32
AVERAGE EFFECTIVE RENT $25.84 $6.56 $12.49
LONG ISLAND PORTFOLIO
NUMBER OF EXECUTED LEASES 67 36 6 109
SQUARE FOOTAGE 753,701 1,112,443 110,489 1,976,633
AVERAGE RENT $27.05 $6.94 $10.78
AVERAGE EFFECTIVE RENT $24.07 $6.53 $10.40
WESTCHESTER PORTFOLIO
NUMBER OF EXECUTED LEASES 77 3 80
SQUARE FOOTAGE 909,196 48,568 957,764
AVERAGE RENT $25.73 $19.10
AVERAGE EFFECTIVE RENT $23.28 $17.26
CONNECTICUT PORTFOLIO
NUMBER OF EXECUTED LEASES 25 25
SQUARE FOOTAGE 149,301 149,301
AVERAGE RENT $28.64
AVERAGE EFFECTIVE RENT $26.25
NEW JERSEY PORTFOLIO
NUMBER OF EXECUTED LEASES 46 2 48
SQUARE FOOTAGE 548,878 16,150 565,028
AVERAGE RENT $24.28 $9.39
AVERAGE EFFECTIVE RENT $21.19 $8.96
NEW YORK CITY PORTFOLIO
NUMBER OF EXECUTED LEASES 33 33
SQUARE FOOTAGE 331,442 331,442
AVERAGE RENT $49.14
AVERAGE EFFECTIVE RENT $44.44
RENEWALS
LEASES EXPIRING DURING PERIOD 153 39 8 200
SQUARE FOOTAGE EXPIRING DURING PERIOD 1,184,352 490,014 140,492 1,814,858
SQUARE FOOTAGE RENEWED DURING PERIOD 737,929 362,168 107,195 1,207,292
RENEWAL PERCENTAGE 62.3% 73.9% 76.3% 66.5%
<FN>
(1) Included in the total square footage is 208,748 square feet of non-incremental leases that, on average, at expiration, were
paying a Base Rent of $23.12 / square foot and a straightline rent of $22.58 / square foot. These leases were renewed or
released at an average starting Base Rent of $26.71 and at a straightline rent of $28.00 / square foot.
(2) Included in the total square footage is 107,657 square feet of non-incremental leases that, on average, at expiration, were
paying a Base Rent of $8.28 / square foot and a straightline rent of $7.99/ square foot. These leases were renewed or
released at an average starting Base Rent of $9.57 and at a straightline rent of $9.51 / square foot.
(3) Included in the total square footage is 13,204 square feet of non-incremental leases that, on average, at expiration, were
paying a Base Rent of $16.72 / square foot and a straightline rent of $15.68/ square foot. These leases were renewed or
released at an average starting Base Rent of $16.51 and at a straightline rent of $17.77 / square foot.
(4) Included in the total square footage is 1,379,272 square feet of non-incremental leases that, on average, at expiration,
were paying a Base Rent of $23.92 / square foot and a straightline rent of $23.36 / square foot. These leases were renewed
or released at an average starting Base Rent of $25.93 and at a straightline rent of $27.45 / square foot.
(5) Included in the total square footage is 507,283 square feet of non-incremental leases that, on average, at expiration, were
paying a Base Rent of $6.37 / square foot and a straightline rent of $6.02 / square foot. These leases were renewed or
released at an average starting Base Rent of $6.92 and at a straightline rent of $7.22 / square foot.
(6) Included in the total square footage is 83,195 square feet of non-incremental leases that, on average, at expiration, were
paying a Base Rent of $10.45 / square foot and a straightline rent of $10.16 / square foot. These leases were renewed or
released at an average starting Base Rent of $11.23 and at a straightline rent of $11.58 / square foot.
(7) Base Rent is equal to annualized base rent plus non-recoverable operating expense pass-throughs.
(8) Includes new and renewed leases during the period.
(9) Excluding one triple net lease for 130,009 sf, the average rent and the net effective rent are $29.18 and $26.87,
respectively.
(10) Excluding two ground floor retail spaces totaling 12,758 sf, the average rent and the net effective rent are $63.60 and
$59.24, respectively.
</FN>
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
DECEMBER 31, 2000
OFFICE PORTFOLIO
Cumulative
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Square Feet Expiring
------------------------- -------------------- ---------------------- --------------------
Year of Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 144 148 977,999 919,884 7.5% 6.8% 7.5% 6.8%
2002 143 144 1,173,551 1,139,298 9.0% 8.4% 16.5% 15.2%
2003 139 141 1,182,580 1,156,366 9.1% 8.5% 25.6% 23.7%
2004 149 149 1,236,469 1,243,715 9.5% 9.2% 35.1% 32.8%
2005 213 218 1,973,850 1,975,976 15.2% 14.5% 50.3% 47.4%
2006 83 101 1,263,630 1,396,408 9.7% 10.3% 60.0% 57.7%
2007 and thereafter 208 220 5,210,039 5,752,443 40.0% 42.3% 100.0% 100.0%
----- ----- ---------- ---------- ----- -----
Total 1,079 1,121 13,018,118 13,584,090 100.0% 100.0%
===== ===== ========== ========== ===== =====
INDUSTRIAL / R&D PORTFOLIO
Cumulative
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Square Feet Expiring
------------------------- -------------------- ---------------------- --------------------
Year of Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 35 36 653,259 843,969 10.9% 13.5% 10.9% 13.5%
2002 29 30 358,964 367,964 6.0% 5.9% 16.8% 19.4%
2003 35 33 975,882 773,872 16.2% 12.4% 33.0% 31.7%
2004 44 43 763,303 733,303 12.7% 11.7% 45.7% 43.5%
2005 22 25 756,227 780,497 12.6% 12.5% 58.3% 56.0%
2006 20 21 783,855 787,855 13.0% 12.6% 71.3% 68.5%
2007 and thereafter 42 49 1,726,513 1,967,112 28.7% 31.5% 100.0% 100.0%
---- ---- --------- --------- ------- -------
Total 227 237 6,018,003 6,254,572 100.0% 100.0%
==== ==== ========= ========= ======= =======
TOTAL PORTFOLIO
Cumulative
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Square Feet Expiring
------------------------- -------------------- ---------------------- --------------------
Year of Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 179 184 1,631,258 1,763,853 8.6% 8.9% 8.6% 8.9%
2002 172 174 1,532,515 1,507,262 8.1% 7.6% 16.6% 16.5%
2003 174 174 2,158,462 1,930,238 11.3% 9.7% 28.0% 26.2%
2004 193 192 1,999,772 1,977,018 10.5% 10.0% 38.5% 36.2%
2005 235 243 2,730,077 2,756,473 14.3% 13.9% 52.8% 50.1%
2006 103 122 2,047,485 2,184,263 10.8% 11.0% 63.6% 61.1%
2007 and thereafter 250 269 6,936,552 7,719,555 36.4% 38.9% 100.0% 100.0%
------ ------ ----------- ----------- ------- -------
Total 1,306 1,358 19,036,121 19,838,662 100.0% 100.0%
====== ====== =========== =========== ======= =======
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
DECEMBER 31, 2000
LONG ISLAND OFFICE (EXCLUDING OMNI)
Number of
Leases Square Feet % Square Feet Per Square Foot Per Square
Expiring Expiring Expiring S/L Rent (1) Foot Rent (2)
Year of -------------- ------------------- -------- ------------ -------------
Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ---------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
2001 40 41 179,285 178,087 5.9% 5.5% $22.94 $22.00 $24.62 $23.96
2002 33 34 165,462 170,262 5.4% 5.2% $22.24 $22.08 $24.82 $24.78
2003 49 50 291,296 301,674 9.5% 9.2% $22.12 $22.52 $25.09 $25.26
2004 45 45 275,654 272,624 9.0% 8.4% $23.04 $23.21 $25.84 $26.08
2005 67 68 603,218 591,907 19.7% 18.1% $22.17 $23.19 $24.66 $24.97
2006 12 14 53,384 74,876 1.7% 2.3% -- $26.48 -- $30.55
2007 and
thereafter 73 77 1,489,770 1,675,145 48.7% 51.3% -- -- -- --
---- ---- --------- --------- ----- -----
Total / Weighted
Average 319 329 3,058,069 3,264,575 100.0% 100.0%
==== ==== ========= ========= ===== =====
OMNI
Number of
Leases Square Feet % Square Feet Per Square Foot Per Square
Expiring Expiring Expiring S/L Rent (1) Foot Rent (2)
Year of -------------- ------------------- -------- ------------ -------------
Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ---------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
2001 4 4 32,680 32,680 5.6% 5.5% $27.39 $29.00 $34.02 $35.81
2002 4 4 80,060 80,060 13.8% 13.4% $26.23 $26.23 $30.60 $29.99
2003 6 6 81,809 64,356 14.1% 10.8% $29.60 $30.19 $34.59 $34.70
2004 4 4 112,414 112,414 19.4% 18.8% $26.05 $26.12 $33.44 $34.08
2005 7 7 59,166 59,166 10.2% 9.9% $27.99 $27.99 $34.47 $35.24
2006 0 0 0 0 0.0% 0.0% -- -- -- --
2007 and
thereafter 8 8 214,323 249,246 36.9% 41.7% -- -- -- --
---- ---- --------- --------- ----- -----
Total / Weighted
Average 33 33 580,452 597,922 100.0% 100.0%
==== ==== ========= ========= ===== =====
<FN>
(1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date.
(2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense
pass-throughs.
</FN>
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
DECEMBER 31, 2000
WESTCHESTER OFFICE
Number of
Leases Square Feet % Square Feet Per Square Foot Per Square
Expiring Expiring Expiring S/L Rent (1) Foot Rent (2)
Year of -------------- ------------------- -------- ------------ -------------
Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ---------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
2001 39 38 255,484 223,154 8.4% 7.1% $20.73 $20.42 $21.12 $20.92
2002 47 45 459,105 425,736 15.0% 13.6% $20.20 $20.73 $20.47 $21.04
2003 43 41 263,153 259,202 8.6% 8.3% $21.94 $21.94 $23.26 $23.22
2004 26 28 158,602 163,164 5.2% 5.2% $21.08 $21.05 $22.04 $22.04
2005 48 52 381,712 414,494 12.5% 13.2% $24.97 $23.94 $25.17 $24.31
2006 10 16 544,828 599,566 17.8% 19.2% -- $21.43 -- $23.28
2007 and
thereafter 36 37 994,211 1,045,433 32.5% 33.4% -- -- -- --
---- ---- --------- --------- ------ ------
Total / Weighted
Average 249 257 3,057,095 3,130,749 100.0% 100.0%
==== ==== ========= ========= ====== ======
STAMFORD OFFICE
Number of
Leases Square Feet % Square Feet Per Square Foot Per Square
Expiring Expiring Expiring S/L Rent (1) Foot Rent (2)
Year of -------------- ------------------- -------- ------------ -------------
Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ---------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
2001 22 29 136,087 155,165 13.3% 14.4% $22.58 $22.09 $25.11 $22.03
2002 20 19 100,199 89,039 9.8% 8.3% $27.39 $27.45 $28.30 $28.80
2003 14 15 95,298 96,824 9.3% 9.0% $31.50 $31.40 $32.26 $32.40
2004 20 20 221,929 231,155 21.7% 21.5% $22.85 $22.45 $23.74 $22.96
2005 23 24 109,943 118,425 10.8% 11.0% $28.28 $26.82 $30.27 $28.62
2006 10 13 210,641 221,265 20.6% 20.6% -- $23.75 -- $24.27
2007 and
thereafter 10 11 148,458 162,113 14.5% 15.1% -- -- -- --
---- ---- --------- --------- ------ ------
Total / Weighted
Average 119 131 1,022,555 1,073,986 100.0% 100.0%
==== ==== ========= ========= ====== ======
<FN>
(1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date.
(2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense
pass-throughs.
</FN>
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
DECEMBER 31, 2000
NEW JERSEY OFFICE
Number of
Leases Square Feet % Square Feet Per Square Foot Per Square
Expiring Expiring Expiring S/L Rent (1) Foot Rent (2)
Year of -------------- ------------------- -------- ------------ -------------
Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ---------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
2001 21 21 239,999 203,392 12.4% 9.6% $17.85 $18.18 $18.08 $18.44
2002 21 21 184,595 184,786 9.5% 8.7% $19.80 $19.83 $20.43 $20.47
2003 20 22 335,298 318,584 17.3% 15.1% $19.94 $18.67 $20.04 $18.79
2004 34 32 244,184 239,383 12.6% 11.3% $22.44 $22.49 $22.98 $23.03
2005 34 32 382,221 354,343 19.7% 16.8% $22.56 $22.97 $23.61 $23.63
2006 4 9 93,903 149,686 4.8% 7.1% -- $22.65 -- $23.94
2007 and
thereafter 14 17 461,251 663,491 23.8% 31.4% -- -- -- --
---- ---- --------- --------- ------ ------
Total / Weighted
Average 148 154 1,941,451 2,113,665 100.0% 100.0%
==== ==== ========= ========= ====== ======
NEW YORK CITY OFFICE
Number of
Leases Square Feet % Square Feet Per Square Foot Per Square
Expiring Expiring Expiring S/L Rent (1) Foot Rent (2)
Year of -------------- ------------------- -------- ------------ -------------
Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ---------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
2001 18 15 134,464 127,406 4.0% 3.7% $33.07 $32.64 $30.43 $29.66
2002 18 21 184,130 189,415 5.5% 5.6% $32.02 $32.48 $32.87 $33.25
2003 7 7 115,726 115,726 3.4% 3.4% $31.89 $31.89 $32.34 $32.33
2004 20 20 223,686 224,975 6.7% 6.6% $36.74 $36.60 $37.72 $37.69
2005 34 35 437,590 437,641 13.0% 12.9% $35.58 $35.26 $36.89 $36.53
2006 47 49 360,874 351,015 10.7% 10.3% -- $29.66 -- $30.74
2007 and
thereafter 67 70 1,902,026 1,957,015 56.6% 57.5% -- -- -- --
---- ---- --------- --------- ------ ------
Total / Weighted
Average 211 217 3,358,496 3,403,193 100.0% 100.0%
==== ==== ========= ========= ====== ======
<FN>
(1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date.
(2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense
pass-throughs.
</FN>
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
DECEMBER 31, 2000
INDUSTRIAL
Number of
Leases Square Feet % Square Feet Per Square Foot Per Square
Expiring Expiring Expiring S/L Rent (1) Foot Rent (2)
Year of -------------- ------------------- -------- ------------ -------------
Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ---------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
2001 28 29 557,139 567,139 11.7% 11.4% $5.42 $5.46 $6.77 $6.40
2002 26 27 240,344 249,344 5.1% 5.0% $6.43 $6.46 $7.19 $7.20
2003 30 29 731,234 735,934 15.4% 14.8% $5.30 $5.35 $6.11 $6.22
2004 34 34 634,085 634,085 13.3% 12.8% $6.40 $6.40 $7.10 $7.10
2005 18 19 396,810 400,960 8.3% 8.1% $5.81 $5.87 $7.96 $8.02
2006 17 18 718,899 722,899 15.1% 14.6% -- $6.05 -- $7.68
2007 and
thereafter 32 35 1,474,012 1,652,695 31.0% 33.3% -- -- -- --
---- ---- --------- --------- ----- -----
Total / Weighted
Average 185 191 4,752,523 4,963,056 100.0% 100.0%
==== ==== ========= ========= ===== =====
RESEARCH AND DEVELOPMENT
Number of
Leases Square Feet % Square Feet Per Square Foot Per Square
Expiring Expiring Expiring S/L Rent (1) Foot Rent (2)
Year of -------------- ------------------- -------- ------------ -------------
Expiration Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00 Sep-00 Dec-00
- ---------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
2001 7 7 96,120 276,830 7.6% 21.4% $11.61 $5.62 $13.21 $6.86
2002 3 3 118,620 118,620 9.4% 9.2% $10.19 $10.19 $11.80 $11.82
2003 5 4 244,648 37,938 19.3% 2.9% $5.01 $9.20 $5.88 $10.15
2004 10 9 129,218 99,218 10.2% 7.7% $11.98 $13.86 $13.43 $15.02
2005 4 6 359,417 379,537 28.4% 29.4% $8.33 $8.88 $9.27 $10.90
2006 3 3 64,956 64,956 5.1% 5.0% -- $17.50 -- $20.48
2007 and
thereafter 10 14 252,501 314,417 20.0% 24.3% -- -- -- --
---- ---- --------- --------- ----- -----
Total / Weighted
Average 42 46 1,265,480 1,291,516 100.0% 100.0%
==== ==== ========= ========= ===== =====
<FN>
(1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date.
(2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense
pass-throughs.
</FN>
Reckson Associates Realty Corp.
Lease Expiration Comparison
December 31, 2000
Expiring rent vs. Market Rent
Suburban Portfolio
[GRAPHIC OMITTED]
EXPIRING RENT (1) MARKET RENT (2) DIFFERENCE
----------------- --------------- ----------
LONG ISLAND $23.78 $28.86 21%
WESTCHESTER $21.71 $29.62 36%
NEW JERSEY $20.84 $29.66 42%
Source: Cushman & Wakefield
(1) Represents average rents for leases expiring over the next 6 years
(2) Average asking rents as provided by Cushman & Wakefield
Reckson Associates Realty Corp.
Lease Expiration Comparison
December 31, 2000
Expiring Rent vs. Market Rent
CBD Office Portfolio
[GRAPHIC OMITTED]
EXPIRING RENT (1) MARKET RENT (2) DIFFERENCE
----------------- --------------- ----------
CONNECTICUT $24.71 $44.41 80%
NEW YORK CITY $33.25 $60.96 83%
Source: Cushman & Wakefield
(1) Represents average rents for leases expiring over the next 6 years
(2) Average asking rents as provided by Cushman & Wakefield
RECKSON ASSOCIATES REALTY CORP.
PORTFOLIO SNAPSHOT (BASED ON 4TH QUARTER 2000)
- ------------------------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION PROPERTY TYPE
- ------------------------------------------------------------------------------------------------
Square Feet - Geographic Distribution Square Feet - Property Type
Long Island 49% Office 68%
New York City 16% Industrial 32%
Westchester 16%
Connecticut 7%
New Jersey 12%
Revenue - Geographic Distribution Revenue - Property Type
Long Island 36% Office 88%
New York City 25% Industrial 12%
Westchester 19%
Connecticut 8%
New Jersey 12%
NOI - Geographic Distribution
Long Island 38% NOI - Propery Type
New York City 20% Office 85%
Westchester 19% Industrial 15%
Connecticut 8%
New Jersey 14%
FFO - Geographic Distribution
Long Island 32% FFO - Propery Type
New York City 31% Office 87%
Westchester 17% Industrial 13%
Connecticut 7%
New Jersey 13%
- -----------------------------------------------------------------------------
CBD VS SURBURBAN ( OFFICE SPACE ONLY )
- -----------------------------------------------------------------------------
------------------
------------------
CBD/Suburban SqFt CBD/Suburban NOI
------------------------------
------------------------------
CBD 37% CBD 37%
------------------------------
------------------------------
Suburban 63% Suburban 63%
------------------------------
------------------------------
------------------
------------------
------------------
------------------
CBD/Suburban Revenue CBD/Suburban FFO
------------------------------
------------------------------
CBD 40% CBD 46%
------------------------------
------------------------------
Suburban 60% Suburban 54%
------------------------------
------------------------------
RECKSON ASSOCIATES REALTY CORP.
PORTFOLIO SNAPSHOT -
ADJUSTED FOR MINORITY INTEREST IN TRI-STATE JOINT VENTURE TRANSACTION
AND 919 3RD AVENUE FREE RENT ADDBACK
Square Feet - Geographic Distribution
Long Island 49%
New York City 17%
Westchester 16%
Connecticut 7%
New Jersey 11%
Square Feet - Property Type
Office 67%
Industrial 33%
Revenue - Geographic Distribution
Long Island 32%
New York City 33%
Westchester 17%
Connecticut 7%
New Jersey 11%
Revenue - Property Type
Office 88%
Industrial 12%
NOI - Geographic Distribution
Long Island 34%
New York City 31%
Westchester 17%
Connecticut 7%
New Jersey 11%
FOI - Property Type
Office 86%
Industrial 14%
FFO - Geographic Distribution
Long Island 33%
New York City 32%
Westchester 17%
Connecticut 6%
New Jersey 12%
FFO - Property Type
Office 86%
Industrial 14%
CBD/Suburban SqFt CBD/Suburban FFO
CBD 38% CBD 47%
Suburban 62% Suburban 53%
CBD/Suburban Revenue
CBD 47%
Suburban 53%
CBD/Suburban NOI
CBD 47%
Suburban 53%
NON-INCREMENTAL REVENUE GENERATING CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
The following table summarizes the expenditures incurred for capital
expenditures for the entire portfolio and tenant improvements and leasing
commissions for space leased at the Company's office and industrial properties
for the twelve month period ended December 31, 2000 and the historical average
of such capital expenditures, tenant improvements and leasing commissions for
the years 1996 through 1999.
NON-INCREMENTAL REVENUE GENERATING CAPITAL EXPENDITURES
1996-1999
1996 1997 1998 1999 AVERAGE 2000
----------- ------------- ------------- ------------- ------------- -------------
SUBURBAN OFFICE PROPERTIES
Total $ 375,026 $ 1,108,675 $ 2,004,976 $ 2,298,899 $ 1,446,894 $ 3,289,116
Per Square Foot 0.13 0.22 0.23 0.23 0.20 0.33
CBD OFFICE PROPERTIES
Total N/A N/A N/A N/A N/A $ 946,718
Per Square Foot N/A N/A N/A N/A N/A 0.38
INDUSTRIAL PROPERTIES
Total $ 670,751 $ 733,233 $ 1,205,266 $ 1,048,688 $ 914,484 $ 813,431
Per Square Foot 0.18 0.15 0.12 0.11 0.14 0.11
NON-INCREMENTAL REVENUE GENERATING TENANT IMPROVEMENTS AND LEASING COMMISSIONS
1996-1999
1996 1997 1998 1999 AVERAGE 2000 NEW RENEWAL
-------- ---------- ---------- ---------- --------- ---------- ---------- ----------
LONG ISLAND OFFICE PROPERTIES
Tenant Improvements $523,574 $ 784,044 $1,140,251 $1,009,357 $ 864,307 $2,853,706 $1,547,414 $1,306,292
Per Square Foot Improved 4.28 7.00 3.98 4.73 5.00 6.99 7.46 6.50
Leasing Commissions $119,047 $ 415,822 $ 418,191 $ 551,762 $ 376,206 $2,208,604 $ 671,548 $1,537,056
Per Square Foot Leased 0.97 4.83 1.46 2.59 2.46 4.96 3.24 6.47
-------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 5.25 $ 11.83 $ 5.44 $ 7.32 $ 7.46 $ 11.95 $ 10.70 $ 12.97
======== ========== ========== ========== ========== ========== ========== ==========
WESTCHESTER OFFICE PROPERTIES
Tenant Improvements $834,764 $1,211,665 $ 711,160 $1,316,611 $1,018,550 $1,860,027 $ 769,954 $1,090,073
Per Square Foot Improved 6.33 8.90 4.45 5.62 6.33 5.72 5.44 5.94
Leasing Commissions $264,388 $ 366,257 $ 286,150 $ 457,730 $ 343,631 $ 412,226 $ 327,172 $ 85,054
Per Square Foot Leased 2.00 2.69 1.79 1.96 2.11 3.00 2.31 0.47
-------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 8.33 $ 11.59 $ 6.24 $ 7.58 $ 8.44 $ 8.72 $ 7.75 $ 6.41
======== ========== ========== ========== ========== ========== ========== ==========
CONNECTICUT OFFICE PROPERTIES (A)
Tenant Improvements $ 58,000 $1,022,421 $ 202,880 $ 179,043 $ 449,952 $ 385,531 $ 366,800 $ 18,731
Per Square Foot Improved 12.45 13.39 5.92 4.88 9.16 4.19 7.78 0.42
Leasing Commissions $ 0.00 $ 256,615 $ 151,063 $ 110,252 $ 159,363 $ 453,435 $ 264,785 $ 188,650
Per Square Foot Leased 0.00 3.36 4.41 3.00 2.69 4.92 5.62 4.19
-------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 12.45 $ 16.75 $ 10.33 $ 7.88 $ 11.85 $ 9.11 $ 13.40 $ 4.61
======== ========== ========== ========== ========== ========== ========== ==========
NEW JERSEY OFFICE PROPERTIES
Tenant Improvements N/A N/A $ 654,877 $ 454,054 $ 554,465 $1,580,323 $1,048,613 $ 531,710
Per Square Foot Improved N/A N/A 3.78 2.29 3.03 6.71 6.31 7.68
Leasing Commissions N/A N/A $ 396,127 $ 787,065 $ 591,596 $1,031,950 $ 654,761 $ 377,189
Per Square Foot Leased N/A N/A 2.08 3.96 3.02 4.44 4.02 5.44
-------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot N/A N/A $ 5.86 $ 6.25 $ 6.05 $ 11.15 $ 10.33 $ 13.12
======== ========== ========== ========== ========== ========== ========== ==========
NEW YORK CITY OFFICE PROPERTIES
Tenant Improvements N/A N/A N/A N/A N/A $ 65,267 $ 65,267 $ 0
Per Square Foot Improved N/A N/A N/A N/A N/A $ 1.79 $ 4.53 0.00
Leasing Commissions N/A N/A N/A N/A N/A $ 418,185 $ 226,543 $ 191,642
Per Square Foot Leased N/A N/A N/A N/A N/A $ 11.50 $ 15.72 8.73
-------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot N/A N/A N/A N/A N/A $ 13.29 $ 20.25 $ 8.73
======== ========== ========== ========== ========== ========== ========== ==========
INDUSTRIAL PROPERTIES
Tenant Improvements $380,334 $ 230,466 $ 283,842 $ 375,646 $ 317,572 $ 650,216 $ 507,115 $ 143,101
Per Square Foot Improved 0.72 0.55 0.76 0.25 0.57 0.95 2.68 0.29
Leasing Commissions $436,213 $ 81,013 $ 200,154 $ 835,108 $ 388,122 $ 436,506 $ 286,904 $ 149,602
Per Square Foot Leased 0.82 0.19 0.44 0.56 0.50 0.64 1.52 0.30
-------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 1.54 $ 0.75 $ 1.20 $ 0.81 $ 1.07 $ 1.59 $ 4.20 $ 0.59
======== ========== ========== ========== ========== ========== ========== ==========
(A) 1996 - 1999 average weighted to reflect October 1996 acquisition date
MARKET STATISTICS
-----------------
Reckson Associates Realty Corp
[GRAPHIC OMITTED]
Long Island Class A Statistics
1996 1997 1998 1999 2000
Direct Vacancy 12.7% 8.7% 6.1% 5.6% 6.3%
Average Asking Rental Rates $23.83 $26.14 $27.23 $27.69 $28.86
Westchester Class A Statistics
1996 1997 1998 1999 2000
Direct Vacancy 16.0% 13.3% 16.4% 15.0% 10.7%
Average Asking Rental Rates $23.67 $25.14 $26.67 $27.23 $29.62
<FN>
Source: Cushman & Wakefield
</FN>
Reckson Associates Realty Corp
[GRAPHIC OMITTED]
Southern Connecticut Class A Statistics
1996 1997 1998 1999 2000
Direct Vacancy 6.1% 4.2% 3.6% 4.0% 7.2%
Average Asking Rental Rates $26.19 $28.96 $32.22 $31.78 $44.41
Northern New Jersey Class A Statistics
1996 1997 1998 1999 2000
Direct Vacancy 9.1% 4.7% 5.3% 4.6% 6.5%
Average Asking Rental Rates $24.55 $25.38 $27.42 $28.52 $29.66
<FN>
Source: Cushman & Wakefield
</FN>
Reckson Associates Realty Corp
Long Island Submarket Class A Office Average Asking Rents
[GRAPHIC OMITTED]
1996 1997 1998 1999 2000
CENTRAL NASSAU COUNTY $25.76 $28.79 $29.10 $29.93 $31.15
WESTERN SUFFOLK COUNTY $24.75 $26.55 $26.22 $27.34 $28.22
EASTERN NASSAU COUNTY $21.73 $25.22 $27.49 $26.23 $28.75
<FN>
Source: Cushman & Wakefield
Note: 47% of Long Island office revenue is derived from Central Nassau
properties
29% of Long Island office revenue is derived from Western Suffolk
properties
7% of Long Island office revenue is derived from Eastern Nassau
properties
</FN>
Reckson Associates Realty Corp
Long Island Class A Office Direct Vacancy Rates
[GRAPHIC OMITTED]
1996 1997 1998 1999 2000
CENTRAL NASSAU COUNTY 11.0% 7.5% 5.1% 5.1% 4.7%
WESTERN SUFFOLK COUNTY 8.2% 7.7% 7.7% 11.6% 15.4%
EASTERN NASSAU COUNTY 22.4% 6.4% 4.9% 0.9% 1.4%
<FN>
Source: Cushman & Wakefield
Note: 47% of Long Island office revenue is derived from Central Nassau
properties
29% of Long Island office revenue is derived from Western Suffolk
properties
7% of Long Island office revenue is derived from Eastern Nassau
properties
</FN>
Reckson Associates Realty Corp
Westchester Submarkets Class A Office Average Asking Rents
[GRAPHIC OMITTED]
TARRYTOWN / WESTERN EASTERN CENTRAL WHITE
PLAINS CBD
1996 $23.50 $23.62 $22.30 $24.19
1997 $24.43 $26.53 $22.39 $25.09
1998 $24.66 $29.35 $22.91 $26.84
1999 $27.30 $27.70 $27.07 $27.44
2000 $27.03 $29.65 $28.49 $30.62
<FN>
Source: Cushman & Wakefield
Note: 29% of Westchester office revenue is derived from Central properties
29% of Westchester office revenue is derived from Tarrytown / Western
properties
17% of Westchester office revenue is derived from Eastern properties
17% of Westchester office revenue is derived from White Plains
properties
</FN>
Reckson Associates Realty Corp
Westchester Submarkets Class A Office Direct Vacancy
[GRAPHIC OMITTED]
TARRYTOWN / WESTERN EASTERN CENTRAL WHITE PLAINS CBD
1996 9.2% 11.5% 7.9% 21.2%
1997 7.9% 8.6% 5.7% 25.7%
1998 7.8% 12.2% 12.3% 22.7%
1999 8.0% 10.1% 13.5% 22.6%
2000 6.0% 8.1% 12.0% 11.5%
<FN>
Source: Cushman & Wakefield
Note: 29% of Westchester office revenue is derived from Central properties
29% of Westchester office revenue is derived from Tarrytown / Western
properties
17% of Westchester office revenue is derived from Eastern properties
17% of Westchester office revenue is derived from White Plains
properties
Note: The 12.0% vacancy in Central Westchester is impacted by IBM selling a
383,000 owner occupied building. The location of this building is not
easily accessible to major thoroughfares and employee bedroom
communities. Excluding this building the vacany rate is 7.2%
</FN>
Reckson Associates Realty Corp
New Jersey Submarkets Class A Office Average Asking Rent
[GRAPHIC OMITTED]
ESSEX COUNTY BERGEN COUNTY MERCER COUNTY
1996 $23.84 $23.57 $22.11
1997 $26.47 $26.02 $23.01
1998 $27.74 $27.37 $24.49
1999 $28.78 $28.07 $27.46
2000 $28.90 $29.41 $30.32
Source: Cushman & Wakefield
Note: 57% of New Jersey office revenue is derived from Essex County office
properties
13% of New Jersey office revenue is derived from Bergen County office
properties
6% of New Jersey office revenue is derived from Mercer County office
properties
Reckson Associates Realty Corp.
NEW JERSEY SUBMARKETS CLASS A OFFICE DIRECT VACANCY
[GRAPHIC OMITTED]
MERCER COUNTY ESSEX COUNTY BERGEN COUNTY
1996 9.7% 9.0% 15.6%
1997 2.5% 4.7% 7.8%
1998 1.5% 3.3% 6.8%
1999 5.2% 6.0% 5.3%
2000 6.3% 9.6% 5.1%
Source: Cushman & Wakefield
Note: 57% of New Jersey office revenue is derived from Essex County office properties
13% of New Jersey office revenue is derived from Bergen County office properties
6% of New Jersey office revenue is derived from Mercer County office properties
Reckson Associates Realty Corp.
NEW YORK CITY SUBMARKETS CLASS A OFFICE AVERAGE ASKING RENT
[GRAPHIC OMITTED]
1996 1997 1998 1999 2000
Midtown West Side $31.92 $33.10 $43.36 $48.28 $60.89
Financial East $30.80 $29.77 $40.21 $37.64 $52.90
Midtown East Side $36.27 $39.33 $47.85 $51.18 $61.46
6th Ave./Rockefeller Center $39.43 $43.62 $51.33 $53.12 $65.91
Source: Cushman & Wakefield
Note: 46% of New York City office revenue is derived from Midtown West Side properties
20% of New York City office revenue is derived from 6th Ave./Rockefeller Center properties
19% of New York City office revenue is derived from Midtown East Side properties
15% of New York City office revenue is derived from Financial East properties
Reckson Associates Realty Corp.
NEW YORK CITY CLASS A OFFICE DIRECT VACANCY
[GRAPHIC OMITTED]
1996 1997 1998 1999 2000
---- ---- ---- ---- ----
MIDTOWN WEST SIDE 6.2% 3.7% 3.3% 4.6% 2.4%
FINANCIAL EAST 16.0% 8.2% 6.6% 3.4% 1.4%
MIDTOWN EAST SIDE 7.6% 5.6% 6.0% 3.8% 1.9%
6TH AVE./ROCKEFELLER CENTER 4.8% 2.7% 2.2% 1.6% 0.9%
Source: Cushman & Wakefield
Note: 46% of New York City office revenue is derived from Midtown West Side properties
20% of New York City office revenue is derived from 6th Ave./Rockefeller Center properties
19% of New York City office revenue is derived from Midtown East Side properties
15% of New York City office revenue is derived from Financial East properties
VALUE CREATION PIPELINE STATISTICS
----------------------------------
RECKSON ASSOCIATES REALTY CORP.
VALUE CREATION PIPELINE
DECEMBER 31, 2000
ANTICIPATED TOTAL
ACRES / INITIAL INCREMENTAL ANTICIPATED
STAGE/PROPERTY SQ. FEET INVESTMENT INVESTMENT INVESTMENT
- -------------- -------- ---------- ---------- ----------
PROJECTS IN STABILIZATION PERIOD
100 Grasslands Road, Elmsford, NY 47,700 $563,000 $4,437,000 $5,000,000
919 3rd Avenue, New York City, NY (2) 1,374,966 $277,500,000 $87,500,000 $365,000,000
50 Marcus Drive, Melville, NY 163,762 $2,930,000 $19,031,000 $21,961,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN STABILIZATION PERIOD 1,586,428 $280,993,000 $110,968,000 $391,961,000
- ---------------------------------------------------------------------------------------------------------------------------------
PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
Melville Expressway Corporate Center, Melville, NY ( Phase I ) 277,500 $4,250,000 $39,196,000 $43,446,000
University Square , Princeton, NJ 315,000 $4,657,300 $45,739,700 $50,397,000
AIP 2001, Islip, NY 71,000 $650,000 $5,042,000 $5,692,000
400 Moreland Road, Commack, NY 56,875 $1,562,000 $1,405,000 $2,967,000
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TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 720,375 $11,119,300 $91,382,700 $102,502,000
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PROJECTS IN PLANNING
Melville Square Corporate Center II, Melville, NY 255,000 $5,732,621 $27,927,379 $33,660,000
Melville Expressway Corporate Center, Melville, NY ( Phase II ) 277,500 $4,250,000 $45,040,000 $49,290,000
Reckson Executive Park, Rye Brook, NY 345,000 $8,000,000 $47,799,000 $55,799,000
Landmark 7, Stamford, CT 61,000 $0 $13,208,000 $13,208,000
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TOTAL PROJECTS IN PLANNING 938,500 $17,982,621 $133,974,379 $151,957,000
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LAND
155 White Plains Road, Tarrytown, NY 7 $700,000 $0 $700,000
70 Andrews Road, Hicksville, NY 3.8 $487,500 $2,821,500 $3,309,000
Giralda Farms , Morris County, NJ (3) 40 $5,000,000 $75,091,000 $80,091,000
Old Willets Path, Hauppauge, NY 2 $595,000 $2,400,000 $2,995,000
Eagle Rock 3, East Hanover, NJ 15 $2,808,904 $14,816,096 $17,625,000
AIP Recapture, Islip, NY 4.2 $0 $0 $0
AIP, Islip NY 3.8 $0 $2,200,000 $2,200,000
AIP, Islip NY 2 $0 $1,400,000 $1,400,000
East Patchogue, East Patchogue, NY 23 $0 $0 $0
40 Cragwood, South Plainfield, NJ 7 $0 $0 $0
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TOTAL LAND 107.8 $9,591,404 $98,728,596 $108,320,000
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TOTAL UNREALIZED PIPELINE $319,686,325 $435,053,675 $754,740,000
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REALIZATION
Investments that reached realization this quarter
AIP 2002 206,000 sf
492 River Road 130,009 sf
390 Motor Parkway 181,155 sf
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TOTAL REALIZED VALUE CREATION PROJECTS 6,358,875 $361,749,533 $200,822,433 $562,571,966
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INVESTMENT ANTICIPATED ESTIMATED MONTHS
TO STABILIZED CURRENT TO COMPLETION/
STAGE/PROPERTY DATE RETURN (1) CCUPANCY BUSINESS PLAN STABILIZATION
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PROJECTS IN STABILIZATION PERIOD
100 Grasslands Road, Elmsford, NY $3,345,361 14.3% 82.9% Complete reposition of tenant space. Lease 3 - 6
remaining vacant space.
919 3rd Avenue, New York City, NY (2) $310,787,998 11.5% 97.9% Complete reposition of tenant space. 12
50 Marcus Drive, Melville, NY $13,983,535 14.0% 100.0% Complete reposition of tenant space for occupancy. 3
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TOTAL PROJECTS IN STABILIZATION PERIOD $328,116,894 11.7%
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PROJECTS UNDER DEVELOPMENT
OR REPOSITIONING
Melville Expressway Corporate Center, $33,982,351 12.0% Commercial developement on Phase I of 12 - 24
Melville, NY ( Phase I ) commercial land zoned for 550,000 SF
office development.
University Square , Princeton, NJ $10,165,302 12.0% Commenced development on a 315,000 SF 24 - 36
office building
AIP 2001, Islip, NY $1,557,800 12.2% Development of a 71,000 SF industrial building. 12 - 24
This represents the last remaining parcel
in a development
which includes 3 fully leased industrial
buildings encompassing 442,000 sf.
400 Moreland Road, Commack, NY $2,813,607 13.1% Reposition vacant industrial property 12 - 18
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TOTAL PROJECTS UNDER DEVELOPMENT $48,519,060 12.0%
OR REPOSITIONING
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PROJECTS IN PLANNING
Melville Square Corporate Center II, $6,926,871 12.5% Development of 255,000 SF office building 24-30
Melville, NY
Melville Expressway Corporate Center, $7,939,685 13.0% Phase II of commercial land zoned for 550,000
SF office development. 18 - 30
Melville, NY ( Phase II )
Reckson Executive Park, Rye Brook, NY $13,655,992 12.0% Commercial land zoned for 345,000 SF office 18 - 36
development. Actively marketing to build
to suits
Landmark 7, Stamford, CT $20,396 12.3% Develop 61,000 sf building adjacent to 18 - 24
existing Landmark Square office complex.
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TOTAL PROJECTS IN PLANNING $28,542,944 12.5%
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LAND
155 White Plains Road, Tarrytown, NY $700,000 40.0% Intended for sale 12
70 Andrews Road, Hicksville, NY $971,360 12.5% Development of 50,000 SF building 18
Giralda Farms , Morris County, NJ (3) $16,227,146 11.0% Commercial land zoned for 430,000 SF 30 - 36
office development. Presently marketing
to corporate users.
Old Willets Path, Hauppauge, NY $742,918 12.0% Commercial land zoned for 30,000 SF
industrial development. 18
Eagle Rock 3, East Hanover, NJ $3,787,119 12.0% Development of 115,000 SF office building 24 - 36
AIP Recapture, Islip, NY $0 14.5% Land lease to alternative use ( hotel , retail ) 36
AIP, Islip NY $0 13.0% Development of 43,000 SF office/R&D use 36
AIP, Islip NY $0 12.5% Development of 30,000 SF office/R&D use 36
East Patchogue, East Patchogue, NY $0 12.0% Intended for sale 48
40 Cragwood, South Plainfield, NJ $0 12.0% Intended for sale 60
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TOTAL LAND $22,428,543 11.5%
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TOTAL UNREALIZED PIPELINE $427,607,441 11.9%
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TOTAL REALIZED VALUE
CREATION PROJECTS $562,571,966 12.6% 97.2%
(1) Forward looking statement based upon management's estimates. Actual
results may differ materially.
(2) Yield projected to grow to 11.5% by the end of 2005.
(3) Excludes $3.7 million of purchase price which is allocated to 113 acres on
which an additional 650,000 SF of office space can be developed.