EXHIBIT 99.1
RECKSON ASSOCIATES REALTY CORP.
THIRD QUARTER 2002
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
NOVEMBER 5, 2002
225 BROADHOLLOW ROAD, MELVILLE, NY 11747
PHONE: 631.694.6900 1.888.RECKSON FAX: 631.622.6790
www.reckson.com
[graphic omitted]
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TABLE OF CONTENTS
Page(s)
Corporate Information........................................................2-3
Financial Highlights
o Reporting Period Highlights.........................................4-5
o Stock Performance.....................................................6
o Key Financial Data....................................................7
o Statements of Operations..............................................8
o Funds from Operations and Cash Available for Distribution..........9-11
o Consolidated Balance Sheets..........................................12
o Debt Summary.........................................................13
o Preferred Securities.................................................14
Portfolio Performance
o Same Property Performance.........................................15-16
o Portfolio Snapshot...................................................17
o Occupancy Analysis................................................18-19
o Leasing Statistics................................................20-21
o Lease Expiration Schedules........................................22-25
o Top Tenants and Tenant Diversification...............................28
o Capital Expenditures Analysis.....................................29-31
Market Statistics
o Suburban Markets Overview.........................................32-33
o New York City Sub-Markets............................................34
o Long Island Sub-Markets..............................................35
o Westchester Sub-Markets..............................................36
o New Jersey Sub-Markets...............................................37
Value Creation Pipeline Schedule..............................................38
Unconsolidated Real Estate Joint Ventures.....................................39
Reckson Strategic Venture Partners (RSVP)
o Combined Balance Sheets..............................................40
o Summary of Invested Capital..........................................41
o Summarized Platform Balance Sheets...................................42
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; credit of our tenants; 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 and insurance 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 undertakes no responsibility to update or supplement
information contained in this supplemental operating and financial data package.
###
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
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CORPORATE INFORMATION
CORPORATE PROFILE
Reckson Associates Realty Corp. 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.
Through a predecessor entity, Reckson commenced operations in 1958 and grew
steadily by acquiring, developing and redeveloping Class A office and industrial
properties throughout Long Island. In June 1995, Reckson successfully completed
its initial public offering. Subsequently, the Company expanded from its Long
Island base and established operating divisions in Westchester, Connecticut, New
Jersey and New York City. By transporting the formula that built its success on
Long Island to the other Tri-State area markets, Reckson is now positioned as
the premier real estate franchise in the New York Tri-State area.
Today, Reckson owns 178 properties comprised of approximately 20.4 million
square feet located throughout the New York Tri-State area markets. These
properties are comprised of 13.7 million square feet of Class A office space and
6.7 million square feet of industrial space. The Company has a total market
capitalization of approximately $3.2 billion and has generated a total return to
its initial Class A common shareholders of approximately 198% for the period
June 2, 1995 through September 30, 2002.
Reckson is a fully integrated real estate operating company specializing in the
acquisition, leasing, financing, property and asset management, design and
development and construction of Class A office and industrial properties in the
New York Tri-State area.
CORPORATE HEADQUARTERS
225 Broadhollow Road
Melville, New York 11747-4883
Telephone: (631) 694-6900
(888) RECKSON
Facsimile: (631) 622-6790
Web site: www.reckson.com
EXECUTIVE OFFICER CONTACTS
Donald Rechler Co-Chief Executive Officer
Chairman of the Board
Scott Rechler Co-Chief Executive Officer
Chairman of the Executive Committee
Michael Maturo Chief Financial Officer
Executive Vice President
INVESTOR RELATIONS
Susan McGuire Vice President Investor Relations
Telephone: (631) 622-6642
Facsimile: (631) 622-6790
E-mail: smcguire@reckson.com
To request an Investor Relations package or be added to our distribution list,
please contact us at:
Telephone: (631) 622-6746
Facsimile: (631) 622-6790
E-mail: investorrelations@reckson.com
Web site: www.reckson.com (Go to Information Request in the Investor
Relations section)
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
2
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CORPORATE INFORMATION
RESEARCH COVERAGE
Credit Suisse First Boston Lehman Brothers
Lawrence Raiman David Shulman/Stuart Axelrod
(212) 538-2380 (212) 526-3413/(212) 526-3410
Deutsche Bank Securities McDonald & Company
Louis Taylor Anatole Pevnev
(212) 469-4912 (216) 263-4783
Goldman Sachs Merrill Lynch
David Kostin Steve Sakwa/Rahul Bhattacharjee
(212) 902-6781 (212) 449-0335/(212) 449-1920
Greenstreet Advisors Salomon Smith Barney
John Lutzius Jonathan Litt/Gary Boston
(949) 640-8780 (212) 816-0231/(212) 816-1383
Legg Mason
David Fick/Kenneth Weinberg
(410) 454-5018/(410) 454-5175
QUARTERLY REPORTING SCHEDULE
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
SENIOR UNSECURED DEBT RATINGS
Moody's Baa3
Standard & Poor's BBB-
Stock Listing
The stock of Reckson Associates Realty Corp. is traded primarily on the New York
Stock Exchange under the following symbols:
Class A Common Stock: RA
Class B Common Stock: RA.B
Series A Preferred Stock: RA.A
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
3
Reporting Period Highlights
Summary Third Quarter 2002 Results
Reported third quarter diluted funds from operations ("FFO") of $.59 per share
as compared to FFO of $.66 per share for the third quarter of 2001, representing
a per share decrease of 10.6%.
Reported diluted FFO for the nine months ended September 30, 2002 of $1.77 per
share as compared to FFO of $2.04 per share for the nine months ended September
30, 2001, representing a per share decrease of 13.2%.
Summary Portfolio Performance
Portfolio performance remained stable during the third quarter of 2002 with
overall portfolio occupancy of 94.2% at September 30, 2002, as compared to 94.2%
at June 30, 2002 and 96.8% at September 30, 2001. The Company reported
occupancies at September 30, 2002 of 95.1% for the office portfolio and 92.4%
for the industrial portfolio. This compares to 95.2% and 92.0%, respectively, at
June 30, 2002 and 96.7% and 97.5%, respectively, at September 30, 2001.
The Company also reported same property occupancy of 94.2% for the overall
portfolio at September 30, 2002, as compared to 94.6% at June 30, 2002 and 95.0%
at September 30 2001. Reported same property office portfolio occupancy of 95.6%
at September 30, 2002, as compared to 95.9% at June 30, 2002 and 96.4%, at
September 30, 2001.
During the quarter, the Company executed 66 leases encompassing 745,000 square
feet, which included 612,000 square feet of office space. This represents 3.7%
of the total portfolio. The Company also renewed 65% of expiring square feet. As
of September 30, 2002 the Company reduced total portfolio exposure to expiring
leases to 1.1% in 2002 and 8.6% in 2003.
Same property net operating income ("NOI") before termination fees for the third
quarter of 2002 increased 7.2% (cash) and decreased (0.4%) (GAAP) for the total
portfolio, compared to the third quarter of 2001.
Rents on same space leases executed during the third quarter of 2002 increased
7.9% (cash) and 11.1% (GAAP) in the office properties and 4.8% (cash) and 16.6%
(GAAP) in the industrial/R&D properties.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
4
Other Highlights
Completed 239,000 square feet of leasing in Westchester related to Fuji Photo
Film U.S.A., Inc. and associated transactions.
During the third quarter, the Company repurchased 1,856,200 Class A common
shares at a weighted average stock price of $21.98 per share and 368,200 Class B
common shares at a weighted average stock price of $22.90 per share.
Subsequent to September 30, 2002, the Company repurchased 842,200 Class A Common
shares at a weighted average stock price of $20.77 per share and 357,500 Series
A Preferred shares at a weighted average stock price of $22.29 per share.
Total year to date aggregate repurchases of 3,424,100 shares of Class A common
stock, Class B common stock and Series A preferred stock amounts to
approximately $75 million.
Consolidated Financial Results
The Company reported diluted operating earnings per share ("OpEPS") of $.20 for
the third quarter of 2002, as compared to $.31 per share for the comparable 2001
period.
The Company reported diluted earnings per Class A common share ("EPS") of $.25
for the third quarter of 2002, as compared to ($1.97) per Class A common share
for the comparable 2001 period.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
5
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STOCK PERFORMANCE
The following summarizes recent activity of Reckson's Class A common stock (RA):
2nd 3rd 10/1/02
Quarter Quarter to
2002 2002 10/31/02
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High Price* $ 26.00 $ 24.92 $ 22.95
Low Price* $ 24.18 $ 21.08 $ 20.10
Closing Price* $ 24.90 $ 22.77 $ 20.31
Average daily trading volume* 351,706 334,372 490,491
Indicated dividend per share** $ 1.6984 $ 1.6984 $ 1.6984
Closing dividend yield 6.82% 7.46% 8.36%
Closing shares and units outstanding (thousands) 58,264 56,428 55,586
Closing market value of shares and units outstanding (thousands) $1,450,774 $1,284,866 $1,128,952
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The following summarizes recent activity of Reckson's Class B common stock
(RA.B):
2nd 3rd 10/1/02
Quarter Quarter to
2002 2002 10/31/02
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High Price* $ 27.07 $ 25.95 $ 23.88
Low Price* $ 25.30 $ 22.30 $ 21.05
Closing Price* $ 25.50 $ 23.75 $ 21.20
Average daily trading volume* 72,400 80,700 13,239
Indicated dividend per share** $ 2.5884 $ 2.5884 $ 2.5884
Closing dividend yield 10.15% 10.90% 12.21%
Closing shares outstanding (thousands) 10,284 9,915 9,915
Closing market value of shares outstanding (thousands) $262,242 $235,481 $210,198
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The following summarizes recent activity of Reckson's Series A preferred stock
(RA.A):
2nd 3rd 10/1/02
Quarter Quarter to
2002 2002 10/31/02
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High Price* $ 24.85 $ 24.10 $ 23.88
Low Price* $ 23.75 $ 20.30 $ 21.00
Closing Price* $ 23.95 $ 23.70 $ 21.40
Average daily trading volume* 42,320 23,419 112,065
Indicated dividend per share** $ 1.9064 $ 1.9064 $ 1.9064
Closing dividend yield 7.96% 8.04% 8.91%
Closing shares outstanding (thousands) 9,192 9,192 8,835
Closing market value of shares outstanding (thousands) $220,148 $217,850 $189,069
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* New York Stock Exchange trades only
** On an annual basis
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
6
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KEY FINANCIAL DATA
(Dollars in thousands, except per share data)
For the three months ended or as of
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9/30/02 6/30/02 3/31/02 12/31/01 9/30/01
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SHARES AND UNITS
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Common Shares Outstanding - Class A 49,152,033 50,988,233 50,305,143 49,982,377 49,806,885
Common Shares Outstanding - Class B 9,915,313 10,283,513 10,283,513 10,283,513 10,283,513
Operating Partnership Units Outstanding 7,276,224 7,276,224 7,942,692 7,487,218 7,638,043
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Total Shares and Operating Partnership Units 66,343,570 68,547,970 68,531,348 67,753,108 67,728,441
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SHARE PRICE & DIVIDENDS - CLASS A
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End of period $ 22.77 $ 24.90 $ 24.66 $ 23.36 $ 24.15
High during period $ 24.92 $ 26.00 $ 24.68 $ 24.46 $ 24.15
Low during period $ 21.08 $ 24.18 $ 22.54 $ 22.15 $ 21.90
Dividend declared $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Closing dividend yield 7.5% 6.8% 6.9% 7.3% 7.0%
SHARE PRICE & DIVIDENDS - CLASS B
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End of period $ 23.75 $ 25.50 $ 25.76 $ 25.51 $ 25.51
High during period $ 25.95 $ 27.07 $ 25.76 $ 25.76 $ 25.60
Low during period $ 22.30 $ 25.30 $ 23.86 $ 23.55 $ 23.29
Dividend declared $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65
Closing dividend yield 10.9% 10.2% 10.1% 10.2% 10.2%
MARKET CAPITALIZATION
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Market Value of Common Equity (a) $1,520,360 $1,713,015 $1,701,295 $1,604,822 $1,649,627
Stated Value of Preferred Equity 299,462 299,462 299,462 310,765 310,765
Total Debt (b) 1,331,141 1,285,636 1,279,195 1,336,011 1,444,473
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Total Market Capitalization $3,150,963 $3,298,113 $3,279,952 $3,251,598 $3,404,865
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Total Debt / Total Market Capitalization 42.2% 39.0% 39.0% 41.1% 42.4%
SELECTED BALANCE SHEET DATA
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Book Value of Real Estate Assets before Depreciation $2,935,695 $2,938,968 $2,894,481 $2,880,879 $2,814,024
Total Assets $2,898,948 $2,914,000 $2,914,546 $2,994,218 $2,861,651
Total Liabilities $1,578,835 $1,532,340 $1,518,623 $1,592,811 $1,566,012
SELECTED OPERATING DATA
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Property Operating Revenues $ 126,447 $ 123,627 $ 122,505 $ 122,261 $ 125,867
Property Operating Expenses $ 46,135 $ 41,739 $ 42,212 $ 42,565 $ 43,844
Property Operating NOI $ 80,312 $ 81,888 $ 80,293 $ 79,696 $ 82,023
Property Gross Operating Margin 63.5% 66.2% 65.5% 65.2% 65.2%
Other Revenues (excluding gain on sales of real estate) $ 2,335 $ 2,008 $ 2,425 $ 2,706 $ 5,333
Marketing, General & Administrative Expenses $ 7,965 $ 7,693 $ 7,139 $ 7,160 $ 7,629
as a percent of Total Revenues
(excluding gain on sales of real estate) 6.2% 6.1% 5.7% 5.7% 5.8%
Interest Expense $ 22,653 $ 22,124 $ 20,996 $ 22,369 $ 23,510
Capitalized Interest $ 1,948 $ 1,799 $ 2,607 $ 2,442 $2,627
Non-Incremental Capital Expenditures to NOI as
a percent (e)(f) 27.41% 6.61% 7.39% 8.62% 6.22%
FINANCIAL RATIOS
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Debt Service Coverage Ratio 3.32 3.44 3.60 3.11 3.27
Fixed Charge Coverage Ratio 2.58 2.66 2.72 2.44 2.60
EPS, FFO AND CAD
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Class A Common stock:
Basic Net Income (loss) per share $ 0.25 $ 0.21 $ 0.24 $ 0.47 $ (1.97)
Diluted Net Income (loss) per share $ 0.25 $ 0.21 $ 0.24 $ 0.46 $ (1.97)
Class B Common stock:
Basic Net Income (loss) per share $ 0.38 $ 0.32 $ 0.37 $ 0.71 $ (3.01)
Diluted Net Income (loss) per share $ 0.26 $ 0.22 $ 0.26 $ 0.50 $ (3.01)
Basic operating earnings per share (d) $ 0.20 $ 0.22 $ 0.26 $ 0.27 $ 0.31
Diluted operating earnings per share (d) $ 0.20 $ 0.22 $ 0.26 $ 0.27 $ 0.31
Diluted FFO per share $ 0.59 $ 0.59 $ 0.60 $ 0.57 $ 0.66
Diluted weighted average Class A & B dividends per share
or unit $ 0.45 $ 0.45 $ 0.45 $ 0.46 $ 0.45
Diluted FFO payout ratio (Class A & B combined) 77.4% 77.2% 76.1% 80.2% 68.7%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Diluted FFO payout ratio - Class A 72.5% 72.3% 71.2% 74.9% 64.3%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65
Diluted FFO payout ratio - Class B 110.5% 110.3% 108.8% 114.6% 98.3%
Diluted CAD per share (e) $ 0.17 $ 0.45 $ 0.39 $ 0.33 $ 0.46
Diluted weighted average Class A & B dividends per share
or unit (e) $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46
Diluted CAD payout ratio (Class A & B combined) (e) 277.1% 101.2% 117.2% 138.9% 99.3%
Diluted weighted average Class A dividends per share (e) $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Diluted CAD payout ratio - Class A (e) 257.0% 93.9% 108.5% 128.7% 92.1%
Diluted weighted average Class B dividends per share (e) $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65
Diluted CAD payout ratio - Class B (e) 391.7% 143.2% 166.0% 196.7% 140.7%
TRI-STATE PORTFOLIO STATISTICS
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Office properties 75 77 77 77 78
Office square footage 13,614,217 13,770,743 13,771,319 13,777,009 13,863,565
Office occupancy at end of quarter (c) 95.1% 95.2% 96.2% 96.1% 96.7%
Industrial properties 101 102 102 103 103
Industrial square footage 6,720,342 6,755,843 6,755,949 6,813,536 6,812,158
Industrial occupancy at end of quarter (c) 92.4% 92.0% 92.9% 91.7% 96.2%
Total portfolio occupancy at end of quarter (c) 94.2% 94.2% 95.1% 94.6% 96.0%
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(a) Includes Operating Partnership Units valued at the closing price of the
Class A common stock.
(b) Includes pro rata share of consolidated and unconsolidated joint venture
debt.
(c) Excludes properties under development.
(d) Before, when applicable, gain on sales of real estate, extraordinary loss
and valuation reserves on investment in affiliate loans and joint ventures
and other investments.
(e) Calculated based on committed non incremental tenant improvements and
leasing costs and actual non incremental capitalized improvements. In
addition, for the three months ended September 30, 2002, these amounts
include approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc, transaction. This transaction encompasses nine
tenants and approximately 239,000 square feet located in Westchester
County. Payout ratios would have been (Class A and B combined: 137.8%),
(Class A: 127.8%) and (Class B: 194.8%) for the three months ended
September 30, 2002 had these costs not been included.
(f) Calculation would have yielded 13.46% exclusive of the approximately $11.2
million of committed costs related to the Fuji Photo USA Inc. transaction.
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Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
7
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STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
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REVENUES 2002 2001 2002 2001
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Base Rents $ 111,175 $ 110,594 $ 326,424 $ 327,697
Tenant escalations and reimbursements 15,272 15,273 44,656 45,198
Equity in earnings of service companies and real estate joint ventures 104 505 598 1,704
Interest income on mortgage notes and notes receivable 1,589 1,584 4,710 4,651
Investment and other income 642 3,244 1,459 13,463
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Total Operating Revenues 128,782 131,200 377,847 392,713
EXPENSES
Property operating expenses 27,618 26,106 75,409 72,921
Real estate taxes 18,517 17,738 54,052 52,126
Marketing, general and administrative 7,965 7,629 22,710 23,438
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EBITDA 74,682 79,727 225,676 244,228
Depreciation and amortization 29,147 26,318 82,913 76,601
Interest expense 22,653 23,510 65,772 70,701
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Income from continuing operations before minority interests and
discontinued operations 22,882 29,899 76,991 96,926
Minority partners' interests in consolidated partnerships (4,446) (3,065) (14,379) (12,885)
Limited partners' minority interest in the operating partnership (1,249) (2,279) (4,741) (7,526)
Distributions to preferred unitholders (273) (509) (1,014) (1,630)
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Income from continuing operations 16,914 24,046 56,857 74,885
Adjust for non operating items, net of limited partners' minority interest:
Discontinued operations 4,707 181 5,043 681
Valuation reserves on affiliate loans and joint ventures -- (145,935) -- (145,935)
Gain on sales of real estate -- 870 482 870
Extraordinary loss on extinguishment of debt -- (2,595) -- (2,595)
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Income (loss) before dividends to preferred shareholders 21,621 (123,433) 62,382 (72,094)
Dividends to preferred shareholders (5,487) (5,487) (16,461) (16,379)
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Net income (loss) allocable to common shareholders $ 16,134 $(128,920) $ 45,921 $ (88,473)
===================================================================================================================================
Net income (loss) allocable to:
Class A Shareholders $ 12,334 $ (97,944) $ 35,041 $ (67,526)
Class B Shareholders $ 3,800 $ (30,976) $ 10,880 $ (20,947)
PER SHARE DATA
Basic operating earnings $ 0.20 $ 0.31 $ 0.68 $ 1.03
Diluted operating earnings $ 0.20 $ 0.31 $ 0.68 $ 1.01
Basic net income (loss):
Class A common stock before extraordinary loss $ 0.25 $ (1.93) $ 0.70 $ (1.38)
Extraordinary loss per Class A common share -- (0.04) -- (0.04)
------------------------------------------------
Basic net income (loss) per Class A common share $ 0.25 $ (1.97) $ 0.70 $ (1.42)
================================================
Class B common stock before extraordinary loss $ 0.38 $ (2.95) $ 1.07 $ (1.98)
Extraordinary loss per Class B common share -- (0.06) -- (0.06)
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Basic net income (loss) per Class B common share $ 0.38 $ (3.01) $ 1.07 $ (2.04)
================================================
Diluted net (loss) income:
Diluted net income (loss) per Class A common share $ 0.25 $ (1.97) $ 0.69 $ (1.42)
Diluted net income (loss) per Class B common share $ 0.26 $ (3.01) $ 0.75 $ (2.04)
Basic weighted average common shares outstanding:
Class A common stock 49,525 49,715 50,103 47,489
Class B common stock 10,010 10,284 10,191 10,284
Diluted weighted average common shares outstanding:
Class A common stock 49,825 49,715 50,445 47,489
Class B common stock 10,010 10,284 10,191 10,284
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Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
8
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SUMMARY DATA
FUNDS FROM OPERATIONS ("FFO") AND FFO PAYOUT RATIOS
CASH AVAILABLE FOR DISTRIBUTION ("CAD") AND CAD PAYOUT RATIOS
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Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------------------
2002 2001 2002 2001
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FUNDS FROM OPERATIONS:
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Diluted FFO per weighted average share or unit $ 0.59 $ 0.66 $ 1.77 $ 2.04
Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.45 $ 1.36 $ 1.32
Diluted FFO payout ratio (Class A & B combined) 77.4% 68.7% 76.9% 64.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.24
Diluted FFO payout ratio - Class A 72.5% 64.3% 72.0% 60.4%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 1.94 $ 1.88
Diluted FFO payout ratio - Class B 110.5% 98.3% 109.8% 92.1%
CAD - ACTUAL PAID OR ACCRUED TI & LEASING COSTS DURING PERIOD
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Diluted CAD per weighted average share or unit $ 0.32 $ 0.45 $ 1.12 $ 1.33
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.37 $ 1.34
Diluted CAD payout ratio (Class A & B combined) 144.0% 101.7% 122.9% 100.4%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.24
Diluted CAD payout ratio - Class A 133.6% 94.1% 113.9% 92.8%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 1.94 $ 1.88
Diluted CAD payout ratio - Class B 203.6% 143.9% 173.9% 141.5%
CAD - TOTAL COMMITTED TI & LEASING COSTS INCURRED DURING PERIOD (A)
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Diluted CAD per weighted average share or unit $ 0.17 $ 0.46 $ 1.01 $ 1.44
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.37 $ 1.33
Diluted CAD payout ratio (Class A & B combined) 277.1% 99.3% 135.6% 92.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.24
Diluted CAD payout ratio - Class A 257.0% 92.1% 125.7% 85.9%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 1.94 $ 1.88
Diluted CAD payout ratio - Class B 391.7% 140.7% 191.9% 130.9%
CAD - COMMITTED TI & LEASING COSTS EXCLUDING LEASES SCHEDULED TO
EXPIRE IN FUTURE PERIODS (B)
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Diluted CAD per weighted average share or unit $ 0.17 $ 1.06
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 1.37
Diluted CAD payout ratio (Class A & B combined) 262.1% 105.7%
Diluted weighted average Class A dividends per share $ 0.42 $ 1.27
Diluted CAD payout ratio - Class A 243.1% 120.6%
Diluted weighted average Class B dividends per share $ 0.65 $ 1.94
Diluted CAD payout ratio - Class B 370.5% 184.0%
- -----------------------------------------------------------------------------------------------------------------------------
Notes:
(A) For the three months ended September 30, 2002 these amounts include
approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc, transaction. This transaction
encompasses nine tenants and approximately 239,000 square feet
located in Westchester County. Payout ratios would have been (Class
A and B combined: 137.8%), (Class A: 127.8%) and (Class B: 194.8%)
for the three months ended September 30, 2002 had these costs not
been included.
(B) For the three months ended September 30, 2002 these amounts include
approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc, transaction. This transaction
encompasses nine tenants and approximately 239,000 square feet
located in Westchester County. Payout ratios would have been (Class
A and B combined: 134.0%), (Class A: 124.3%) and (Class B: 189.4%)
for the three months ended September 30, 2002 had these costs not
been included.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
9
- --------------------------------------------------------------------------------
FUNDS FROM OPERATIONS AND FFO PAYOUT RATIO DATA
(In thousands, except per share / unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
- ----------------------------------------------------------------------------------------------------------------------------------
2002 2001 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------------
FUNDS FROM OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------------
Net income allocable to common shareholders $ 16,134 $(128,920) $ 45,921 $ (88,473)
Add back: Real estate depreciation and amortization 28,208 26,340 80,570 76,055
Minority partners' interests in consolidated partnerships 4,446 3,065 14,379 12,885
Limited partners' minority interest in the operating partnership 1,941 -- 5,538 --
Valuation reserves on investments in affiliate loans and joint ventures -- 163,000 -- 163,000
Extraordinary loss on exinguishment of debt (net of limited partners
minority interest) -- 2,595 -- 2,595
Less: Limited partners' minority interest in the operating partnership -- 14,657 -- 9,326
Gain on sales of real estate 4,896 972 5,433 972
Amounts distributable to minority partners in consolidated partnerships 6,050 4,206 18,943 15,010
- ----------------------------------------------------------------------------------------------------------------------------------
Basic Funds From Operations 39,783 46,245 122,032 140,754
Add dividends and distributions on dilutive shares and units:
Series A preferred stock 4,381 4,381 13,143 13,143
Series B preferred stock 1,106 1,106 3,319 3,236
Minority partners' preferred interest -- -- -- 2,624
Limited partners' preferred interest 274 509 1,014 1,630
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted FFO $ 45,544 $ 52,241 $ 139,508 $ 161,387
==================================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 59,536 59,999 60,294 57,773
Limited operating partnership units 7,276 7,652 7,427 7,703
Common stock equivalents 300 441 342 429
Series A preferred stock 8,060 8,060 8,060 8,060
Series B preferred stock 1,919 1,919 1,919 1,919
Minority partners' preferred interest -- -- -- 1,898
Limited partners' preferred interest 661 1,056 770 1,182
- ----------------------------------------------------------------------------------------------------------------------------------
Total diluted weighted average shares and units outstanding 77,752 79,127 78,812 78,964
==================================================================================================================================
Diluted FFO per weighted average share or unit $ 0.59 $ 0.66 $ 1.77 $ 2.04
Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.45 $ 1.36 $ 1.32
Diluted FFO payout ratio (Class A & B combined) 77.4% 68.7% 76.9% 64.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.24
Diluted FFO payout ratio - Class A 72.5% 64.3% 72.0% 60.4%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 1.94 $ 1.88
Diluted FFO payout ratio - Class B 110.5% 98.3% 109.8% 92.1%
- ----------------------------------------------------------------------------------------------------------------------------------
CASH AVAILABLE FOR DISTRIBUTION AND CAD PAYOUT RATIO DATA
(In thousands, except per share / unit data)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
CAD - ACTUAL PAID OR ACCRUED TI & LEASING COSTS DURING PERIOD
- ----------------------------------------------------------------------------------------------------------------------------------
Basic FFO $ 39,783 $ 46,245 $ 122,032 $ 140,754
Less: Straight line rents 6,683 9,730 19,718 31,743
Actual non-incremental capitalized tenant improvements
and leasing costs 9,029 3,803 20,037 17,064
Actual non-incremental capitalized improvements 2,738 1,996 6,179 4,260
- ----------------------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 21,333 30,716 76,098 87,687
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Minority partners' preferred interest -- -- -- --
Limited partners' preferred interest -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted CAD $ 21,333 $ 30,716 $ 76,098 $ 87,687
==================================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 59,536 59,999 60,294 57,773
Limited operating partnership units 7,276 7,652 7,427 7,703
Common stock equivalents 300 441 342 429
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Minority partners' preferred interest -- -- -- --
Limited partners' preferred interest -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 67,112 68,092 68,063 65,905
==================================================================================================================================
Diluted CAD per weighted average share or unit $ 0.32 $ 0.45 $ 1.12 $ 1.33
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.37 $ 1.34
Diluted CAD payout ratio (Class A & B combined) 144.0% 101.7% 122.9% 100.4%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.24
Diluted CAD payout ratio - Class A 133.6% 94.1% 113.9% 92.8%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 1.94 $ 1.88
Diluted CAD payout ratio - Class B 203.6% 143.9% 173.9% 141.5%
- ----------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
10
- --------------------------------------------------------------------------------
CASH AVAILABLE FOR DISTRIBUTION AND CAD PAYOUT RATIO DATA - CONTINUED
(In thousands, except per share / unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
- ----------------------------------------------------------------------------------------------------------------------------------
2002 2001 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------------
CAD - TOTAL COMMITTED TI & LEASING COSTS INCURRED DURING PERIOD
- ----------------------------------------------------------------------------------------------------------------------------------
Basic FFO $ 39,783 $ 46,245 $ 122,032 $ 140,754
Less: Straight line rents 6,683 9,730 19,718 31,743
Committed non-incremental capitalized tenant improvements and
leasing costs (Note A) 19,274 3,105 27,177 9,849
Actual non-incremental capitalized improvements 2,738 1,996 6,179 4,260
- ----------------------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 11,088 31,414 68,958 94,902
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Minority partners' preferred interest -- -- -- 2,624
Limited partners' preferred interest -- 260 -- 1,630
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted CAD $ 11,088 $ 31,674 $ 68,958 $ 99,156
==================================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 59,536 59,999 60,294 57,773
Limited operating partnership units 7,276 7,652 7,427 7,703
Common stock equivalents 300 441 342 429
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Minority partners' preferred interest -- -- -- 1,898
Limited partners' preferred interest 566 1,182
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 67,112 68,658 68,063 68,985
==================================================================================================================================
Diluted CAD per weighted average share or unit $ 0.17 $ 0.46 $ 1.01 $ 1.44
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.37 $ 1.33
Diluted CAD payout ratio (Class A & B combined) 277.1% 99.3% 135.6% 92.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.24
Diluted CAD payout ratio - Class A 257.0% 92.1% 125.7% 85.9%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 1.94 $ 1.88
Diluted CAD payout ratio - Class B 391.7% 140.7% 191.9% 130.9%
- ----------------------------------------------------------------------------------------------------------------------------------
Note:
(A) For the three months ended September 30, 2002 these amounts include
approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc, transaction. This transaction
encompasses nine tenants and approximately 239,000 square feet
located in Westchester County. Payout ratios would have been (Class
A and B combined: 137.8%), (Class A: 127.8%) and (Class B: 194.8%)
for the three months ended September 30, 2002 had these costs not
been included.
- --------------------------------------------------------------------------------
CAD - COMMITTED TI & LEASING COSTS EXCLUDING LEASES SCHEDULED TO
EXPIRE IN FUTURE PERIODS)
- --------------------------------------------------------------------------------
Basic FFO $ 39,783 $ 122,032
Less: Straight line rents 6,683 19,718
Committed non-incremental capitalized tenant improvements and
leasing costs scheduled to expire in future periods (Note B) 18,640 24,218
Actual non-incremental capitalized improvements 2,738 6,179
- ----------------------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 11,722 71,917
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- --
Series B preferred stock -- --
Limited partners' preferred interest -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted CAD $ 11,722 $ 71,917
==================================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 59,536 60,294
Limited operating partnership units 7,276 7,427
Common stock equivalents 300 342
Series A preferred stock -- --
Series B preferred stock -- --
Limited partners' preferred interest -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 67,112 68,063
==================================================================================================================================
Diluted CAD per weighted average share or unit $ 0.17 $ 1.06
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 1.37
Diluted CAD payout ratio (Class A & B combined) 262.1% 105.7%
Diluted weighted average Class A dividends per share $ 0.42 $ 1.27
Diluted CAD payout ratio - Class A 243.1% 120.6%
Diluted weighted average Class B dividends per share $ 0.65 $ 1.94
Diluted CAD payout ratio - Class B 370.5% 184.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Note:
(B) For the three months ended September 30, 2002 these amounts include
approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc, transaction. This transaction
encompasses nine tenants and approximately 239,000 square feet
located in Westchester County. Payout ratios would have been (Class
A and B combined: 134.0%), (Class A: 124.3%) and (Class B: 189.4%)
for the three months ended September 30, 2002 had these costs not
been included.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
11
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2002 2001
- --------------------------------------------------------------------------------------------------------------------
ASSETS (audited)
- --------------------------------------------------------------------------------------------------------------------
Commercial real estate properties, at cost:
Land $ 417,351 $ 408,837
Building and improvements 2,400,577 2,328,374
Developments in progress:
Land 91,396 69,365
Development costs 26,371 74,303
Furniture, fixtures, and equipment 7,811 7,725
- --------------------------------------------------------------------------------------------------------------------
2,943,506 2,888,604
Less: accumulated depreciation (428,150) (361,960)
- --------------------------------------------------------------------------------------------------------------------
Investment in real estate, net of accumulated depreciation 2,515,356 2,526,644
Investments in real estate joint ventures 5,680 5,744
Investments in mortgage notes and notes receivable 55,695 56,234
Investments in service companies and affiliate loans and joint ventures 80,130 79,184
Cash and cash equivalents 32,631 121,975
Tenant receivables 9,321 9,633
Deferred rents receivable 100,755 81,089
Prepaid expenses and other assets 30,964 45,495
Contract and land deposits and pre-acquisition costs 121 3,782
Deferred leasing and loan costs 68,295 64,438
- --------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 2,898,948 $ 2,994,218
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDER'S EQUITY
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Mortgage notes payable $ 743,148 $ 751,077
Unsecured credit facility 224,000 271,600
Senior unsecured notes 499,272 449,463
Accrued expenses and other liabilities 80,181 87,683
Dividends and distributions payable 32,234 32,988
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,578,835 1,592,811
- --------------------------------------------------------------------------------------------------------------------
MINORITY INTERESTS:
Minority partners' interests in consolidated partnerships 242,720 242,698
Preferred unit interest in the operating partnership 19,662 30,965
Limited partners' minority interest in the operating partnership 74,288 81,887
- --------------------------------------------------------------------------------------------------------------------
TOTAL MINORITY INTERESTS 336,670 355,550
- --------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Preferred Stock, $.01 par value, 25,000,000 shares authorized
Series A - 9,192,000 shares issued and outstanding 92 92
Series B - 2,000,000 shares issued and outstanding 20 20
Common Stock, $.01 par value, 100,000,000 shares authorized
Class A - 49,152,033 and 49,982,377 shares issued and outstanding, respectively 492 500
Class B - 9,915,313 and 10,283,513 shares issued and outstanding, respectively 99 103
Additional paid in capital 982,740 1,045,142
- --------------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 983,443 1,045,857
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,898,948 $ 2,994,218
- --------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
12
- --------------------------------------------------------------------------------
DEBT SUMMARY AT SEPTEMBER 30, 2002
(Dollars in thousands)
DEBT BREAKDOWN
- --------------------------------------------------------------------------------------------------------------------------
% of Weighted Average Weighted Average
Balance Total Interest Rate Maturity (Years)
- --------------------------------------------------------------------------------------------------------------------------
Fixed Rate Secured Debt $ 743,148 50.7% 7.3% 9.2
Fixed Rate Senior Unsecured Notes (a) 499,272 34.0% 7.4% 4.8
Variable Rate Unsecured Credit Facility 224,000 15.3% 2.9% 0.9
- --------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average $1,466,420 100.0% 6.7% 6.4
- --------------------------------------------------------------------------------------------------------------------------
DEBT AMORTIZATION AND MATURITY
- --------------------------------------------------------------------------------------------------------------------------
Secured Debt Senior Unsecured Unsecured Credit
Year Amortization Due at Maturity Notes Facility Total
- --------------------------------------------------------------------------------------------------------------------------
2002 $ 3,132 $ 0 $ 3,132
2003 12,300 0 224,000 236,300
2004 13,169 2,616 100,000 115,785
2005 14,167 18,553 32,720
2006 13,785 129,920 143,705
2007 11,305 60,539 200,000 271,844
2008 10,357 0 10,357
2009 9,991 100,254 200,000 310,245
2010 7,818 28,423 36,241
2011 5,571 217,592 223,163
Thereafter 83,656 0 83,656
- --------------------------------------------------------------------------------------------------------------------------
Total Debt $185,251 $557,897 $500,000 (a) $224,000 $1,467,148
- --------------------------------------------------------------------------------------------------------------------------
PROPERTY MORTGAGE DETAIL
- --------------------------------------------------------------------------------------------------------------------------
Interest Maturity Amortization
Property $ Outstanding Rate Date Term (Years)
- --------------------------------------------------------------------------------------------------------------------------
80 Orville Dr, Islip, NY 2,616 10.10% February-04 Interest only
395 North Service Road, Melville, NY 19,811 6.45% October-05 $34k per month
200 Summit Lake Drive, Valhalla, NY 19,476 9.25% January-06 25
1350 Avenue of the Americas, NY, NY 74,824 6.52% June-06 (b)
Landmark Square, Stamford, CT 45,342 8.02% October-06 25
100 Summit Lake Drive, Valhalla, NY 19,429 8.50% April-07 15
333 Earle Ovington Blvd, Mitchel Field, NY (b) 54,104 7.72% August-07 25
810 Seventh Avenue, NY,NY 83,223 7.73% August-09 25
100 Wall Street, NY, NY 36,063 7.73% August-09 25
6900 Jericho Turnpike, Syosset, NY 7,376 8.07% July-10 25
6800 Jericho Turnpike, Syosset, NY 13,976 8.07% July-10 25
580 White Plains Road, Tarrytown, NY 12,735 7.86% September-10 25
919 Third Ave, NY, NY (c) 247,464 6.867% August-11 30
110 Bi-County Blvd., Farmingdale, NY 3,690 9.125% November-12 20
One Orlando Center, Orlando, FL (d) 38,512 6.82% November-27 28
120 West 45th Street, NY,NY (d) 64,507 6.82% November-27 28
- --------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average $743,148 7.26%
- --------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------
(a) These notes were issued at an aggregate discount of $1,005,500, which is
being amortized over the term of the Senior Unsecured Notes to which they
relate. Current unamortized discount is approximately $728,000.
(b) The Company has a 60% general partnership interest in this property and its
proportionate share of the aggregate principal amount is approximately
$32.5 million.
(c) The Company has a 51% membership interest in this property and its
proportionate share of the aggregate principal amount is approximately
$126.2 million.
(d) Subject to interest rate adjustment on November 1, 2004.
In addition, the Company has a 60% interest in an unconsolidated joint venture
property. The pro rata share of this debt is approximately $7.6 million.
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
13
- -------------------------------------------------------------------------------
PREFERRED SECURITIES AT SEPTEMBER 30, 2002
(in thousands)
The following table sets forth certain information regarding the Company's
preferred securites as of September 30, 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
Liquidation Current Conversion price
Security Preference Value Yield Per Share Issuance date
- ------------------------------------------------------------------------------------------------------------------------------------
7 5/8 % Series A Convertible Cumulative Preferred Stock (A) $229,800 7.625% $28.51 April 1998
Series B Convertible Cumulative Preferred Stock 50,000 8.850% $26.05 June 1999
Series B Preferred Units of Limited Partnership Interest 3,081 5.560% $32.51 April 1998
Series C Preferred Units of Limited Partnership Interest 10,581 5.560% $29.39 April 1998
Series D Preferred Units of Limited Partnership Interest 6,000 5.560% $29.12 July 1998
- -------------------------------------------------------------------------------------------------------------------------------
Total $299,462
- -------------------------------------------------------------------------------------------------------------------------------
NOTE (A): Subsequent to September 30, 2002, the Company repurchased 357,500
shares of the Series A Preferred Stock at $22.29 per share aggregating a total
cost of approximately eight million dollars. The repurchased shares had a
liquidation preference value of approximately $8.9 million.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
14
- --------------------------------------------------------------------------------
SAME PROPERTY PERFORMANCE
For the 3 month period September 30, 2002 vs. September 30, 2001
(In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN
------------------ -----------------------
CASH REVENUE (A) CASH REVENUE (A)
3Q02 3Q01 $ Change % Change 3Q02 3Q01 $ Change % Change
- --------------- ----------- ----------- --------- --------- -------------- --------- --------- -------- --------
Long Island $ 35,636 $ 34,190 $ 1,446 4.2% Office $ 100,553 $ 93,415 $ 7,138 7.6%
Industrial (b) 13,066 12,696 370 2.9%
Westchester 17,345 18,512 (1,167) -6.3% -------------- --------- --------- -------- --------
Total $ 113,619 $ 106,111 $ 7,508 7.1%
Connecticut 8,367 8,690 (323) -3.7% ============== ========= ========= ======= ========
New Jersey 12,383 12,304 79 0.6%
New York City 39,888 32,415 7,473 23.1%
- --------------- ----------- ----------- --------- ---------
Total $ 113,619 $ 106,111 $ 7,508 7.1%
=============== =========== =========== ========= =========
GAAP REVENUE (A) GAAP REVENUE (A)
3Q02 3Q01 $ Change % Change 3Q02 3Q01 $ Change % Change
- --------------- ----------- ----------- --------- --------- -------------- --------- --------- -------- --------
Long Island $ 36,877 $ 36,018 $ 859 2.4% Office $ 104,967 $ 103,009 $ 1,958 1.9%
Industrial (b) 13,669 13,125 544 4.1%
Westchester 18,174 19,235 (1,061) -5.5% -------------- --------- --------- -------- --------
Total 118,636 116,134 2,502 2.2%
Connecticut 8,553 8,692 (139) -1.6% ============== ========= ========= ======= ========
New Jersey 12,508 12,460 48 0.4%
New York City 42,524 39,729 2,795 7.0%
- --------------- ----------- ----------- --------- ---------
Total $ 118,636 $ 116,134 $ 2,502 2.2%
=============== =========== =========== ========= =========
OPERATING EXPENSES OPERATING EXPENSES
3Q02 3Q01 $ Change % Change 3Q02 3Q01 $ Change % Change
- --------------- ----------- ----------- --------- --------- -------------- --------- --------- -------- --------
Long Island $ 6,853 $ 6,147 $ 706 11.5% Office $ 24,880 $ 23,325 $ 1,555 6.7%
Industrial (b) 1,146 932 214 23.0%
Westchester 5,006 4,792 214 4.5% -------------- --------- --------- -------- --------
Total $ 26,026 $ 24,257 $ 1,769 7.3%
Connecticut 2,103 2,123 (20) -0.9% ============== ========= ========= ======= ========
New Jersey 2,055 2,128 (73) -3.4%
New York City 10,009 9,067 942 10.4%
- --------------- ----------- ----------- --------- ---------
Total $ 26,026 $ 24,257 $ 1,769 7.3%
=============== =========== =========== ========= =========
REAL ESTATE TAXES REAL ESTATE TAXES
3Q02 3Q01 $ Change % Change 3Q02 3Q01 $ Change % Change
- --------------- ----------- ----------- --------- --------- -------------- --------- --------- -------- --------
Long Island $ 6,502 $ 6,079 $ 423 7.0% Office $ 15,926 $ 14,931 $ 995 6.7%
Industrial (b) 2,259 2,192 67 3.1%
Westchester 2,576 2,278 298 13.1% -------------- --------- --------- -------- --------
Total $ 18,185 $ 17,123 $ 1,062 6.2%
Connecticut 778 743 35 4.7% ============== ========= ========= ======= ========
New Jersey 1,740 1,726 14 0.8%
New York City 6,589 6,297 292 4.6%
- --------------- ----------- ----------- --------- ---------
Total $ 18,185 $ 17,123 $ 1,062 6.2%
=============== =========== =========== ========= =========
CASH NOI CASH NOI
3Q02 3Q01 $ Change % Change 3Q02 3Q01 $ Change % Change
- --------------- ----------- ----------- --------- --------- -------------- --------- --------- -------- --------
Long Island $ 22,281 $ 21,964 $ 317 1.4% Office $ 59,747 $ 55,159 $ 4,588 8.3%
Industrial (b) 9,661 9,572 89 0.9%
Westchester 9,763 11,442 (1,679) -14.7% -------------- --------- -------- -------- -----
Total $ 69,408 $ 64,731 $ 4,677 7.2%
Connecticut 5,486 5,824 (338) -5.8% ============== ========= ======== ======== =====
New Jersey 8,588 8,450 138 1.6%
New York City 23,290 17,051 6,239 36.6%
- --------------- ----------- ----------- --------- ---------
Total $ 69,408 $ 64,731 $ 4,677 7.2%
=============== =========== =========== ========= =========
GAAP NOI GAAP NOI
3Q02 3Q01 $ Change % Change 3Q02 3Q01 $ Change % Change
- --------------- ----------- ----------- --------- --------- -------------- --------- --------- -------- --------
Long Island $ 23,522 $ 23,792 $ (270) -1.1% Office $ 64,161 $ 64,753 $ (592) -0.9%
Industrial (b) 10,264 10,001 263 2.6%
Westchester 10,592 12,165 (1,573) -12.9% -------------- --------- --------- -------- --------
Total $ 74,425 $ 74,754 $ (329) -0.4%
Connecticut 5,672 5,826 (154) -2.6% ============== ========= ========= ======= ========
New Jersey 8,713 8,606 107 1.2%
New York City 25,926 24,365 1,561 6.4%
- --------------- ----------- ----------- --------- ---------
Total $ 74,425 $ 74,754 $ (329) -0.4%
=============== =========== =========== ========= =========
- -------------------------------------------------------------------------------
(a) Excludes lease termination fees
(b) Includes two retail properties.
Note: Including the one office property located in Orlando, Florida the cash
NOI same store performance was 6.5% and the GAAP NOI same store
performance was (0.9%).
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
15
- -------------------------------------------------------------------------------
SAME PROPERTY PERFORMANCE
For the 9 month period September 30, 2002 vs. September 30, 2001
(In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN
------------------ -----------------------
CASH REVENUE (A) CASH REVENUE (A)
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- --------------- ----------- ----------- -------- -------- -------------- --------- --------- -------- --------
Long Island $ 102,942 $ 99,749 $ 3,193 3.2% Office $ 295,683 $ 271,672 $ 24,011 8.8%
Industrial (b) 36,976 36,809 167 0.5%
Westchester 54,268 55,010 (742) -1.3% -------------- --------- --------- -------- --------
Total $ 332,659 $ 308,481 $ 24,178 7.8%
Connecticut 24,618 25,424 (806) -3.2% -------------- --------- --------- -------- --------
New Jersey 38,492 36,262 2,230 6.1%
New York City 112,339 92,036 20,303 22.1%
- --------------- ----------- ----------- -------- --------
Total $ 332,659 $ 308,481 $ 24,178 7.8%
- --------------- ----------- ----------- -------- --------
GAAP REVENUE (A) GAAP REVENUE (A)
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- --------------- ----------- ----------- -------- -------- -------------- --------- --------- -------- --------
Long Island $ 105,612 $ 103,815 $ 1,797 1.7% Office $ 309,408 $ 301,703 $ 7,705 2.6%
Industrial (b) 38,791 38,086 705 1.9%
Westchester 55,353 57,533 (2,180) -3.8% -------------- --------- --------- -------- --------
Total $ 348,199 $ 339,789 $ 8,410 2.5%
Connecticut 25,528 25,530 (2) 0.0% -------------- --------- --------- -------- --------
New Jersey 38,641 37,491 1,150 3.1%
New York City 123,065 115,420 7,645 6.6%
- --------------- ----------- ----------- -------- --------
Total $ 348,199 $ 339,789 $ 8,410 2.5%
- --------------- ----------- ----------- -------- --------
OPERATING EXPENSES OPERATING EXPENSES
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- --------------- ----------- ----------- -------- -------- -------------- --------- --------- -------- --------
Long Island $ 17,879 $ 16,948 $ 931 5.5% Office $ 67,511 $ 63,860 $ 3,651 5.7%
Industrial (b) 3,136 3,121 15 0.5%
Westchester 13,861 14,015 (154) -1.1% -------------- --------- --------- -------- --------
Total $ 70,647 $ 66,981 $ 3,666 5.5%
Connecticut 6,181 5,984 197 3.3% -------------- --------- --------- -------- --------
New Jersey 5,828 5,977 (149) -2.5%
New York City 26,898 24,057 2,841 11.8%
- --------------- ----------- ----------- -------- --------
Total $ 70,647 $ 66,981 $ 3,666 5.5%
- --------------- ----------- ----------- -------- --------
REAL ESTATE TAXES REAL ESTATE TAXES
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- --------------- ----------- ----------- -------- -------- -------------- --------- --------- -------- --------
Long Island $ 19,031 $ 17,884 $ 1,147 6.4% Office $ 45,465 $ 42,711 $ 2,754 6.4%
Industrial (b) 6,603 6,300 303 4.8%
Westchester 7,338 6,656 682 10.2% -------------- --------- --------- -------- --------
Total $ 52,068 $ 49,011 $ 3,057 6.2%
Connecticut 2,259 2,176 83 3.8% -------------- --------- --------- -------- --------
New Jersey 4,711 4,342 369 8.5%
New York City 18,729 17,953 776 4.3%
- --------------- ----------- ----------- -------- --------
Total $ 52,068 $ 49,011 $ 3,057 6.2%
- --------------- ----------- ----------- -------- --------
CASH NOI CASH NOI
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- --------------- ----------- ----------- -------- -------- -------------- --------- --------- -------- --------
Long Island $ 66,032 $ 64,917 $ 1,115 1.7% Office $ 182,707 $ 165,101 $ 17,606 10.7%
Industrial (b) 27,237 27,388 (151) -0.6%
Westchester 33,069 34,339 (1,270) -3.7% -------------- --------- --------- -------- --------
Total $ 209,944 $ 192,489 $ 17,455 9.1%
Connecticut 16,178 17,264 (1,086) -6.3% -------------- --------- --------- -------- --------
New Jersey 27,953 25,943 2,010 7.7%
New York City 66,712 50,026 16,686 33.4%
- --------------- ----------- ----------- -------- --------
Total $ 209,944 $ 192,489 $ 17,455 9.1%
- --------------- ----------- ----------- -------- --------
GAAP NOI GAAP NOI
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- --------------- ----------- ----------- -------- -------- -------------- --------- --------- -------- --------
Long Island $ 68,702 $ 68,983 $ (281) -0.4% Office $ 196,432 $ 195,132 $ 1,300 0.7%
Industrial (b) 29,052 28,665 387 1.4%
Westchester 34,154 36,862 (2,708) -7.3% -------------- --------- --------- -------- --------
Total $ 225,484 $ 223,797 $ 1,687 0.8%
Connecticut 17,088 17,370 (282) -1.6% ============== ========= ========= ======== ========
New Jersey 28,102 27,172 930 3.4%
New York City 77,438 73,410 4,028 5.5%
- --------------- ----------- ----------- -------- --------
Total $ 225,484 $ 223,797 $ 1,687 0.8%
=============== =========== =========== ========= ========
- ------------------------------------------------------------------------------------
(a) Excludes lease termination fees and reserves against deferred rents receivable.
(b) Includes two retail properties.
Note: Including the one office property located in Orlando, Florida the cash
NOI same store performance was 8.5% and the GAAP NOI same store
performance was 0.4%.
- ------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
16
- --------------------------------------------------------------------------------
PORTFOLIO SNAPSHOT
Based on 3nd quarter 2002
GAAP CONSOLIDATED AMOUNTS (A) PRO FORMA AMOUNTS (B)
-------------------------------------------- -----------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION
- -----------------------------------------------------------------------------------------------------------------------------------
Square Cash Cash GAAP Square Cash Cash GAAP
Feet Revenue NOI NOI Feet Revenue NOI NOI
- ----------------------------------- --------- ----------- ---------- ----------- -------- -------- ----------- ----------- --------
Long Island
Office 20% 22% 20% 20% 18% 21% 19% 20%
Industrial (c) 29% 9% 11% 11% 32% 11% 13% 13%
- ----------------------------------- --------- ----------- ---------- ----------- -------- -------- ----------- ----------- --------
Subtotal - Long Island 49% 31% 31% 31% 50% 32% 32% 32%
Westchester
Office 14% 17% 16% 16% 15% 18% 18% 18%
Industrial 1% 0% 1% 0% 1% 0% 1% 1%
- ----------------------------------- --------- ----------- ---------- ----------- -------- -------- ----------- ----------- --------
Subtotal - Westchester 15% 17% 17% 16% 16% 19% 19% 18%
Connecticut
Office 6% 7% 7% 7% 5% 7% 7% 6%
Industrial 2% 1% 1% 1% 2% 1% 1% 1%
- ----------------------------------- --------- ----------- ---------- ----------- -------- -------- ----------- ----------- --------
Subtotal - Connecticut 8% 8% 8% 8% 8% 7% 8% 8%
New Jersey
Office 10% 10% 11% 11% 10% 10% 11% 12%
Industrial 2% 1% 1% 1% 2% 1% 1% 1%
- ----------------------------------- --------- ----------- ---------- ----------- -------- -------- ----------- ----------- --------
Subtotal - New Jersey 11% 10% 12% 12% 11% 11% 12% 13%
New York City
Office 17% 34% 32% 33% 15% 31% 29% 29%
- ----------------------------------- --------- ----------- ---------- ----------- -------- -------- ----------- ----------- --------
Subtotal - New York City 17% 34% 32% 33% 15% 31% 29% 29%
- -----------------------------------------------------------------------------------------------------------------------------------
PROPERTY TYPE
- -----------------------------------------------------------------------------------------------------------------------------------
Office 66% 89% 87% 87% 63% 87% 85% 85%
Industrial 34% 11% 13% 13% 37% 13% 15% 15%
- -----------------------------------------------------------------------------------------------------------------------------------
SUBURBAN VS CBD ( OFFICE SPACE ONLY )
- -----------------------------------------------------------------------------------------------------------------------------------
Suburban 62% 51% 51% 52% 64% 53% 53% 54%
CBD 38% 49% 49% 48% 36% 47% 47% 46%
- -----------------------------------------------------------------------------------------------------------------------------------
(a) Information in accordance with GAAP accounting.
(b) Adjusted for pro rata share of consolidated and unconsolidated joint venture properties.
(c) Includes 2 retail properties.
Note: The Company also owns a 357,000 square foot office building in Orlando, FL. Percentage calculations exclude this
property
- -----------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
17
- ---------------------------------------------------------------------------------------------------------------
OCCUPANCY ANALYSIS
As of September 30, 2002
- ---------------------------------------------------------------------------------------------------------------
NUMBER OF RENTABLE OCCUPANCY AS OF
PROPERTY BUILDINGS SQUARE FEET JUN-02 SEP-02
- ---------------------------------------------------------------------------------------------------------------
OFFICE PROPERTIES (1)
LONG ISLAND
Nassau West Corporate Center, Mitchel
Field, NY 6 1,531,021 97.3% 97.3%
Huntington Melville Corporate Center,
Melville, NY 7 1,054,569 88.9% 92.5%
North Shore Atrium, Syosset, NY 2 304,263 96.8% 96.6%
Standalone Office Properties 10 1,064,231 94.2% 90.8%
- ---------------------------------------------------------------------------------------------------------------
SUBTOTAL - LONG ISLAND 25 3,954,084 94.2% 94.2%
WESTCHESTER
Tarrytown Corporate Center, Tarrytown, NY 6 875,726 92.3% 90.3%
Summit at Vallhalla, Vahalla, NY 3 699,045 97.0% 98.9%
Mt. Pleasant Corporate Center, Valhalla,
NY 2 162,004 96.5% 100.0%
Reckson Executive Park, Rye Brook, NY 6 541,903 87.3% 95.4%
Standalone Office Properties 4 797,035 96.2% 91.9%
- ---------------------------------------------------------------------------------------------------------------
SUBTOTAL - WESTCHESTER 21 3,075,713 93.8% 94.1%
NEW JERSEY
Short Hills Office Center, Short Hills,
NJ 3 568,642 100.0% 98.0%
Executive Hill Office Park, West Orange,
NJ 4 391,382 84.2% 79.0%
University Square, Princeton, NJ 3 131,727 100.0% 100.0%
Standalone Office Properties 6 872,003 95.4% 94.6%
- ---------------------------------------------------------------------------------------------------------------
SUBTOTAL - NEW JERSEY 16 1,963,754 94.8% 92.9%
CONNECTICUT
Landmark Square, Stamford, CT 6 799,048 92.8% 93.1%
Stamford Towers, Stamford, CT 2 323,315 100.0% 99.0%
- ---------------------------------------------------------------------------------------------------------------
SUBTOTAL - CONNECTICUT 8 1,122,363 94.9% 94.8%
NEW YORK CITY
919 Third Avenue 1 1,356,796 100.0% 100.0%
810 Seventh Avenue 1 692,060 97.6% 95.2%
100 Wall Street 1 466,338 96.8% 99.2%
120 W. 45th Street 1 443,109 93.6% 89.6%
1350 Ave. of the Americas 1 540,000 96.5% 99.3%
- ---------------------------------------------------------------------------------------------------------------
SUBTOTAL - NEW YORK CITY 5 3,498,303 97.7% 98.4%
===============================================================================================================
SUBTOTAL - OFFICE PROPERTIES 75 13,614,217 95.2% 95.1%
===============================================================================================================
-------------------------------------------------------------------------
SQUARE FEET AS A % OF NOI AS A %
PROPERTY TYPE TOTAL PORTFOLIO PROPERTY TYPE TOTAL PORTFOLIO
-------------------------------------------------------------------------
LONG ISLAND
Nassau West Corporate Center, Mitchel
Field, NY 11.2% 7.5% 10.0% 8.7%
Huntington Melville Corporate Center,
Melville, NY 7.7% 5.2% 6.7% 5.8%
North Shore Atrium, Syosset, NY 2.2% 1.5% 1.5% 1.3%
Standalone Office Properties 7.8% 5.2% 5.6% 4.8%
- ---------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - LONG ISLAND 29.0% 19.4% 23.7% 20.5%
WESTCHESTER
Tarrytown Corporate Center, Tarrytown, NY 6.4% 4.3% 4.6% 4.0%
Summit at Vallhalla, Vahalla, NY 5.1% 3.4% 3.8% 3.3%
Mt. Pleasant Corporate Center, Valhalla,
NY 1.2% 0.8% 0.6% 0.5%
Reckson Executive Park, Rye Brook, NY 4.0% 2.7% 2.5% 2.2%
Standalone Office Properties 5.9% 3.9% 5.0% 4.4%
- ---------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - WESTCHESTER 22.6% 15.1% 16.6% 14.3%
NEW JERSEY
Short Hills Office Center, Short Hills,
NJ 4.2% 2.8% 5.1% 4.4%
Executive Hill Office Park, West Orange,
NJ 2.9% 1.9% 1.8% 1.5%
University Square, Princeton, NJ 1.0% 0.6% 1.0% 0.9%
Standalone Office Properties 6.4% 4.3% 5.1% 4.4%
- -
- ---------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - NEW JERSEY 14.4% 9.6% 13.0% 11.2%
CONNECTICUT
Landmark Square, Stamford, CT 5.9% 3.9% 5.7% 4.9%
Stamford Towers, Stamford, CT 2.4% 1.6% 2.7% 2.4%
- ---------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - CONNECTICUT 8.2% 5.5% 8.4% 7.3%
NEW YORK CITY
919 Third Avenue 10.0% 6.7% 16.1% 13.9%
810 Seventh Avenue 5.1% 3.4% 7.3% 6.3%
100 Wall Street 3.4% 2.3% 4.0% 3.5%
120 W. 45th Street 3.3% 2.2% 5.4% 4.7%
1350 Ave. of the Americas 4.0% 2.7% 5.5% 4.7%
- ---------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - NEW YORK CITY 99.4% 17.2% 38.3% 33.1%
=================================================================================================================================
SUBTOTAL-
OFFICE PROPERTIES 100.0% 66.9% 100.0% 86.4%
=================================================================================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Statistics above exclude 800 North Magnolia Avenue, a 357,000 square foot office building (81.6% occupied) located in
Orlando Florida.
- ---------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
18
- ----------------------------------------------------------------------------------------------------------------------------------
OCCUPANCY ANALYSIS
As of September 30, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
NUMBER OF RENTABLE OCCUPANCY AS OF
PROPERTY BUILDINGS SQUARE FEET JUN-02 SEP-02
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
LONG ISLAND INDUSTRIAL PROPERTIES
- ---------------------------------
Vanderbilt Industrial Park, Hauppauge, NY 46 2,300,732 91.4% 92.0%
Airport International Plaza, Bohemia, NY 21 1,290,401 98.4% 98.4%
County Line Industrial Center, Melville, NY 4 342,354 100.0% 100.0%
Other Submarkets
Farmingdale 3 520,008 100.0% 100.0%
Melville 4 246,769 100.0% 100.0%
Islip/Islandia 6 212,524 85.7% 85.7%
Hauppauge 2 195,942 99.1% 96.7%
Other 7 699,277 96.6% 96.6%
- ----------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - LONG ISLAND INDUSTRIAL 93 5,808,007 95.3% 95.4%
- ----------------------------------------------------------------------------------------------------------------------------------
Stand-alone Westchester Industrial Properties 2 139,690 100.0% 100.0%
Stand-alone Connecticut Industrial Properties 1 452,414 54.3% 54.3%
Stand-alone New Jersey Industrial Properties 5 320,231 82.6% 87.5%
- ----------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - INDUSTRIAL PROPERTIES 101 6,720,342 92.0% 92.4%
==================================================================================================================================
RETAIL PROPERTIES 2 19,200 81.8% 81.8%
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL - ALL PROPERTIES (1) 178 20,353,759 94.2% 94.2%
==================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
SQUARE FEET AS A % OF NOI AS A %
PROPERTY PROPERTY TYPE TOTAL PORTFOLIO PROPERTY TYPE TOTAL PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
LONG ISLAND INDUSTRIAL PROPERTIES
- ---------------------------------
Vanderbilt Industrial Park, Hauppauge, NY 34.2% 11.3% 29.0% 3.9%
Airport International Plaza, Bohemia, NY 19.2% 6.3% 21.4% 2.9%
County Line Industrial Center, Melville, NY 5.1% 1.7% 5.5% 0.7%
Other Submarkets
Farmingdale 7.7% 2.6% 8.1% 1.1%
Melville 3.7% 1.2% 6.1% 0.8%
Islip/Islandia 3.2% 1.0% 1.5% 0.2%
Hauppauge 2.9% 1.0% 3.5% 0.5%
Other 10.4% 3.4% 10.2% 1.4%
- -----------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - LONG ISLAND INDUSTRIAL 86.4% 28.5% 85.4% 11.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Stand-alone Westchester Industrial Properties 2.1% 0.7% 4.0% 0.5%
Stand-alone Connecticut Industrial Properties 6.7% 2.2% 4.8% 0.7%
Stand-alone New Jersey Industrial Properties 4.8% 1.6% 5.7% 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - INDUSTRIAL PROPERTIES 100.0% 33.0% 100.0% 13.5%
==================================================================================================================================
RETAIL PROPERTIES 0.1% 0.1% 0.3% 0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL - ALL PROPERTIES 100.0% 100.0% 100.0% 100.0%
==================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
19
- -----------------------------------------------------------------------------------------------------------------------------
LEASING STATISTICS
For the 3 months ended September 30, 2002
- -----------------------------------------------------------------------------------------------------------------------------
EXECUTED LEASES (A)
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
# of Total Average Average Average
Transactions Sq. Ft. Base Rent Effective Rent Term (Years)
- -----------------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO
Long Island 14 79,614 $30.32 $27.36 8.3
Westchester 19 367,574 $25.92 $21.29 8.9
Connecticut 3 6,573 $34.73 $33.31 3.8
New Jersey 10 78,100 $26.46 $25.13 5.7
New York City 9 80,466 $48.62 $43.49 9.0
- -----------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 55 612,327 $29.64 $25.62 8.4
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PORTFOLIO
Long Island 11 132,665 $6.71 $6.35 3.9
- -----------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 11 132,665 $6.71 $6.35 3.9
- -----------------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 0 0 $0.00 $0.00 0.0
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTALS 66 744,992
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
SAME SPACE STATISTICS
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Total Base Rent GAAP Rent
Property Type Sq. Ft. Expiration Current (b) % Change Expiration Current (b) % Change
- -----------------------------------------------------------------------------------------------------------------------------
Office
New 432,908 $25.76 $27.88 8.2% $25.40 $28.66 12.8%
Renewal 143,130 $24.14 $25.76 6.7% $24.25 $25.57 5.4%
----------------------------------------------------------------------------------------------------
Total 576,038 $25.36 $27.35 7.9% $25.11 $27.89 11.1%
Industrial
New 28,500 $5.69 $6.72 18.1% $5.21 $6.88 32.1%
Renewal 104,165 $6.37 $6.47 1.6% $5.94 $6.71 12.9%
----------------------------------------------------------------------------------------------------
Total 132,665 $6.23 $6.53 4.8% $5.78 $6.74 16.6%
Research & Development
New 0 $0.00 $0.00 0.0% $0.00 $0.00 0.0%
Renewal 0 $0.00 $0.00 0.0% $0.00 $0.00 0.0%
----------------------------------------------------------------------------------------------------
Total 0 $0.00 $0.00 0.0% $0.00 $0.00 0.0%
- -----------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 708,703 $21.78 $23.45 7.7% $21.50 $23.93 11.3%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TENANT RETENTION
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Leases Sq. Ft Sq. Ft Renewal
Property Type Expiring (c) Expiring (c) Renewing Percentage
- -----------------------------------------------------------------------------------------------------------------------------
Office 31 269,190 142,722 53.0%
Industrial 8 104,165 104,165 100.0%
Research & Development 1 4,620
- -----------------------------------------------------------------------------------------------------------------------------
Totals 40 377,975 246,887 65.3%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
(a) Includes new and renewed leases during the period.
(b) Represents either renewed or released space.
(c) Includes early renewals.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
20
LEASING STATISTICS
For the 12 months ended September 30, 2002
- -----------------------------------------------------------------------------------------------------------------------
EXECUTED LEASES (A)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
# of Total Average Average Average
Transactions Sq. Ft. Base Rent Effective Rent Term (Years)
- -----------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO
Long Island 66 464,177 $29.86 $26.40 6.6
Westchester 66 693,293 $25.37 $22.00 6.9
Connecticut 22 110,327 $31.64 $30.52 4.5
New Jersey
Operating 20 145,748 $25.13 $23.31 6.0
Development 1 123,000 $36.13 $28.67 10.0
New York City 31 246,434 $52.16 $47.41 9.4
- -----------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 206 1,782,979 $31.35 $27.75 7.2
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PORTFOLIO
Long Island 50 770,224 $6.50 $6.14 5.3
New Jersey 1 36,059 $9.85 $7.81 5.0
- -----------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 51 806,283 $6.65 $6.21 5.3
- -----------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT PORTFOLIO
Long Island
Operating 11 317,975 $13.14 $11.70 5.7
Development 2 97,930 $17.87 $14.23 9.9
New Jersey 1 13,013 $17.60 $12.02 5.0
- -----------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 14 428,918 $14.36 $12.29 6.6
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTALS 271 3,018,180
- -----------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
SAME SPACE STATISTICS
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Total Base Rent GAAP Rent
Property Type Sq. Ft. Expiration Current (b) % Change Expiration Current (b) % Change
- --------------------------------------------------------------------------------------------------------------------------
Office
New 1,048,746 $21.48 $27.11 26.2% $21.06 $27.93 32.6%
Renewal 511,354 $25.14 $27.34 8.8% $24.53 $27.92 13.8%
--------------------------------------------------------------------------------------------
Total 1,560,100 $22.68 $27.19 19.9% $22.20 $27.92 25.8%
Industrial
New 314,295 $5.66 $6.43 13.6% $5.34 $6.90 29.1%
Renewal 488,924 $5.94 $6.22 4.7% $5.59 $6.33 13.2%
--------------------------------------------------------------------------------------------
Total 803,219 $5.83 $6.30 8.1% $5.50 $6.55 19.2%
Research & Development
New 23,392 $13.26 $13.86 4.5% $12.37 $15.23 23.1%
Renewal 166,830 $10.74 $10.73 -0.1% $9.69 $11.02 13.7%
--------------------------------------------------------------------------------------------
Total 190,222 $11.05 $11.11 0.6% $10.02 $11.53 15.1%
- --------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 2,553,541 $16.51 $19.42 17.6% $16.04 $19.98 24.6%
- -------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
TENANT RETENTION
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Leases Sq. Ft Sq. Ft Renewal
Property Type Expiring (c) Expiring (c) Renewing Percentage
- ---------------------------------------------------------------------------------------------------------------------------
Office 150 952,454 571,928 60.0%
Industrial 38 647,002 557,405 86.2%
Research & Development 9 387,203 170,883 44.1%
- ---------------------------------------------------------------------------------------------------------------------------
Totals 197 1,986,659 1,300,216 65.4%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(a) Includes new and renewed leases during the period.
(b) Represents either renewed or released space.
(c) Includes early renewals.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
21
- --------------------------------------------------------------------------------------------------------------------------------
LEASE ACTIVITY
As of September 30, 2002
- --------------------------------------------------------------------------------------------------------------------------------
RENEWAL
NEW LEASES AT EXPIRATION (2) EARLY RENEWAL (2) EXPANSIONS TOTAL PORTFOLIO
REGION # SF # SF # SF # SF # SF
- --------------------------------------------------------------------------------------------------------------------------------
OFFICE PROPERTIES
Connecticut 2 5,270 1 1,303 0 0 0 0 3 6,573
Long Island 8 63,092 6 16,522 0 0 0 0 14 79,614
New Jersey 4 40,192 6 37,908 0 0 0 0 10 78,100
New York City 5 41,309 1 3,739 0 0 3 35,418 9 80,466
Westchester 11 281,239 2 24,040 4 53,507 2 8,788 19 367,574
- --------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL -OFFICE 30 431,102 16 83,512 4 53,507 5 44,206 55 612,327
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
Long Island 3 28,500 6 87,385 2 16,780 0 0 11 132,665
- --------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL -INDUSTRIAL 3 28,500 6 87,385 2 16,780 -- -- 11 132,665
- --------------------------------------------------------------------------------------------------------------------------------
R&D
0 0 0 0 0 0 0 0 0 0
- --------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL -R&D -- -- -- -- -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTAL 33 459,602 22 170,897 6 70,287 5 44,206 66 744,992
62% 23% 9% 6% 100%
- --------------------------------------------------------------------------------------------------------------------------------
HOLDOVERS
# SF
----------- ----------------
Long Island Office 3 30,334
Connecticut Office 3 3,274
New Jersey Office 2 20,126
New York City Office 1 5,137
Westchester Office 2 74,319
----------- ----------------
sub-total Office 11 133,190
Long Island Industrial 0 0
----------- ----------------
Total Holdovers 11 133,190
- --------------------------------------------------------------------------------------------------------------------------------
EARLY TERMINATIONS
TERMINATED RELEASED VACANT
# SF SF SF
----------- ---------------- ---------------- ----------------
OFFICE PROPERTIES
Long Island - Office 3 16,290 1,340 14,950
Long Island - Industrial 2 12,720 3,000 9,720
New Jersey 3 27,198 0 27,198
New York City 1 7,042 0 7,042
Connecticut 1 2,306 0 2,306
Westchester 10 191,081 (1) 146,451 44,630
----------- ---------------- ---------------- ----------------
20 256,637 150,791 105,846
- --------------------------------------------------------------------------------------------------------------------------------
DEFINITIONS:
- ------------
EARLY TERMINATION: When a tenant vacates their space before contract lease end
date. If tenant terminates part of their space, only the portion that has
terminated is reflected.
HOLDOVER: Any lease agreement less than 12 months.
RENEWAL: When an existing tenant renews space for longer than 12 months.
EARLY RENEWAL: When an existing tenant renews their space 12 months prior to
expiration & is renewing for more than 12 months.
EXPANSION: When an existing tenant takes additional space, renews and takes
additional space and early renews and takes additional space. Only the
additional space is reflected.
RELOCATIONS: When a tenant "early terminates" to move to another space/building
A.) If the tenant relocates for less space and extends term for more than
12 months, the amount of contraction is reflected in Early Terminations
and the renewal space is reflected in Renewal.
B.) If the tenant relocates for additional space, whether or not term
length is extended, the additional space only is reflected in
Expansion.
- --------------------------------------------------------------------------------
(1) Includes 3 tenants that relocated into approximately 61,000 square feet of
space.
(2) Excludes 57,989 square feet of contraction space.
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
22
- --------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of September 30, 2002
TOTAL PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Portfolio % of Total
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft
- ---------------------------------------------------------------------------------------------------------------------------------
2002 40 222,550 1.1% 1.1%
2003 159 1,742,219 8.6% 9.7%
2004 201 1,820,933 9.0% 18.6%
2005 244 2,445,977 12.0% 30.6%
2006 221 2,592,815 12.8% 43.4%
2007 126 1,535,558 7.6% 50.9%
2008 and thereafter 327 8,787,070 43.3% 94.2%
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 1,318 19,147,122 94.2% --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 20,334,559
OFFICE PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Portfolio % of Total
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft
- ---------------------------------------------------------------------------------------------------------------------------------
2002 36 197,457 1.5% 1.5%
2003 136 1,154,426 8.5% 9.9%
2004 157 1,159,480 8.5% 18.4%
2005 210 1,764,124 13.0% 31.4%
2006 170 1,622,691 11.9% 43.3%
2007 98 1,197,898 8.8% 52.1%
2008 and thereafter 260 5,844,193 42.9% 95.1%
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 1,067 12,940,269 95.1% --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 13,614,217
INDUSTRIAL/R&D PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Portfolio % of Total
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft
- ---------------------------------------------------------------------------------------------------------------------------------
2002 4 25,093 0.4% 0.4%
2003 23 587,793 8.7% 9.1%
2004 44 661,453 9.8% 19.0%
2005 34 681,853 10.1% 29.1%
2006 51 970,124 14.4% 43.5%
2007 28 337,660 5.0% 48.6%
2008 and thereafter 67 2,942,877 43.8% 92.4%
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 251 6,206,853 92.4% --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 6,720,342
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
23
- --------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of September 30, 2002
LONG ISLAND OFFICE (EXCLUDING OMNI)
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Portfolio % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2002 11 49,772 1.5% 1.5% $24.24 $26.51
2003 49 312,781 9.3% 10.7% $24.46 $26.70
2004 50 302,470 9.0% 19.7% $23.33 $24.21
2005 72 398,645 11.8% 31.5% $24.28 $27.04
2006 44 169,206 5.0% 36.5% $25.18 $28.45
2007 35 411,108 12.2% 48.7% $24.46 $30.13
2008 and thereafter 84 1,537,904 45.5% 94.2% -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 345 3,181,886 94.2% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 3,379,084
OMNI
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Portfolio % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2002 1 21,400 3.7% 3.7% $29.29 $34.05
2003 3 49,793 8.7% 12.4% $29.54 $35.16
2004 5 113,793 19.8% 32.2% $27.11 $34.61
2005 5 44,578 7.8% 39.9% $27.97 $34.79
2006 -- -- 0.0% 39.9% -- --
2007 3 63,320 11.0% 50.9% $26.97 $32.36
2008 and thereafter 12 250,112 43.5% 94.4% -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 29 542,996 94.4% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 575,000
WESTCHESTER OFFICE
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Portfolio % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2002 9 49,849 1.6% 1.6% $19.89 $20.21
2003 34 177,169 5.8% 7.4% $22.43 $23.91
2004 30 144,008 4.7% 12.1% $21.55 $23.16
2005 44 438,808 14.3% 26.3% $22.88 $24.11
2006 35 651,044 21.2% 47.5% $22.56 $24.51
2007 27 431,593 14.0% 61.5% $23.90 $27.53
2008 and thereafter 39 1,000,527 32.5% 94.1% -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 218 2,892,998 94.1% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 3,075,713
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Represents annualized straightline rent as of the lease expiration date
(2) Represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs
- ---------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
24
LEASE EXPIRATION SCHEDULE
As of September 30, 2002
STAMFORD OFFICE
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Portfolio % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2002 7 19,074 1.7% 1.7% $24.34 $26.11
2003 21 149,508 13.3% 15.0% $30.85 $31.45
2004 29 236,554 21.1% 36.1% $22.04 $22.90
2005 23 121,905 10.9% 47.0% $26.30 $28.10
2006 24 291,313 26.0% 72.9% $24.22 $25.09
2007 13 99,796 8.9% 81.8% $31.98 $34.46
2008 and thereafter 9 140,729 12.5% 94.3% -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 126 1,058,879 94.3% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 1,122,363
NEW JERSEY OFFICE
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Portfolio % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2002 2 4,831 0.2% 0.2% $16.85 $17.16
2003 20 319,328 16.3% 16.5% $27.16 $28.22
2004 25 158,130 8.1% 24.6% $23.24 $23.94
2005 31 306,173 15.6% 40.2% $23.91 $24.81
2006 15 164,901 8.4% 48.5% $23.39 $25.09
2007 7 71,369 3.6% 52.2% $21.88 $23.81
2008 and thereafter 22 798,734 40.7% 92.9% -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 122 1,823,466 92.9% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 1,963,754
NEW YORK CITY OFFICE
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Portfolio % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2002 6 52,531 1.5% 1.5% $33.09 $34.11
2003 9 145,847 4.2% 5.7% $32.74 $33.92
2004 18 204,525 5.8% 11.5% $37.31 $40.30
2005 35 454,015 13.0% 24.5% $36.53 $38.47
2006 52 346,227 9.9% 34.4% $30.28 $31.76
2007 13 120,712 3.5% 37.8% $35.71 $32.77
2008 and thereafter 94 2,116,187 60.5% 98.4% -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 227 3,440,044 98.4% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 3,498,303
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Represents annualized straightline rent as of the lease expiration date
(2) Represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs
- -------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
25
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of September 30, 2002
INDUSTRIAL
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Portfolio % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2002 4 25,093 0.5% 0.5% $10.03 $11.26
2003 19 505,885 9.4% 9.9% $ 5.73 $ 6.91
2004 35 562,235 10.4% 20.3% $ 6.55 $ 7.60
2005 29 523,314 9.7% 30.0% $ 5.90 $ 7.54
2006 38 823,836 15.3% 45.3% $ 6.69 $ 7.90
2007 24 252,216 4.7% 50.0% $ 7.50 $ 8.70
2008 and thereafter 51 2,387,109 44.3% 94.3% -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total / Weighted Average 200 5,079,688 94.3% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 5,388,872
RESEARCH & DEVELOPMENT
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Portfolio % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2002 -- -- 0.0% 0.0% -- --
2003 4 81,908 6.2% 6.2% $10.59 $10.97
2004 9 99,218 7.5% 13.6% $13.86 $15.07
2005 5 158,539 11.9% 25.5% $ 9.99 $11.51
2006 13 146,288 11.0% 36.5% $14.67 $16.84
2007 4 85,444 6.4% 42.9% $12.60 $13.97
2008 and thereafter 16 555,768 41.8% 84.7% -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total / Weighted Average 51 1,127,165 84.7% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 1,330,670
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Represents annualized straightline rent as of the lease expiration date
(2) Represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs
- ---------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
26
Lease Expiration Comparison
As of September 30, 2002
Expiring Rents vs.Reckson Forecast Rents (a)
Office Portfolio
[Graphics Omitted]
CBD Portfolio
367,000 SF Expiring
Cash Rents Expiring $31.18
Cash Rents Forecasted (b) $38.32
Increase 23%
GAAP Rents Expiring $32.10
GAAP Rents Forecasted (b) $38.60
Increase 20%
Suburban Portfolio
1 Million SF Expiring
Cash Rents Expiring $26.06
Cash Rents Forecasted (b) $25.95
Decrease (0.4%)
GAAP Rents Expiring $25.05
GAAP Rents Forecasted (b) $26.21
Increase 5%
(a) Represents leases expiring during 2002 and 2003
(b) Company's forecast rent for space to be re-leased. There can be
no assurance that the Company's properties can achieve such rents.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
27
- -----------------------------------------------------------------------------------------------------------------------------------
TOP 25 TENANTS
(Based on Base Rental Revenue)
- -----------------------------------------------------------------------------------------------------------------------------------
PERCENT OF PRO-RATA PERCENT OF CONSOLIDATED
TOTAL SHARE OF ANNUALIZED ANNUALIZED BASE
TENANT NAME (1) TENANT TYPE SQUARE FEET BASE RENTAL REVENUE RENTAL REVENUE
- -----------------------------------------------------------------------------------------------------------------------------------
* DEBEVOISE & PLIMPTON Office 465,420 3.3% 5.6%
* WORLDCOM/MCI Office 527,214 3.2% 2.9%
* AMERICAN EXPRESS Office 240,142 2.0% 1.8%
BELL ATLANTIC Office 210,426 1.5% 1.3%
* SCHULTE ROTH & ZABEL Office 238,052 1.4% 2.3%
* HQ GLOBAL Office/Industrial 201,900 1.2% 1.5%
UNITED DISTILLERS Office 137,918 1.1% 1.0%
T.D. WATERHOUSE Office 127,143 1.1% 0.9%
* BANQUE NATIONALE DE PARIS Office 145,834 0.9% 1.5%
* KRAMER LEVIN NESSEN KAMIN Office 158,144 0.9% 1.4%
VYTRA HEALTHCARE Office 105,613 0.8% 0.7%
D.E.SHAW Office 89,526 0.7% 0.6%
P.R.NEWSWIRE ASSOCIATES Office 67,000 0.7% 0.6%
HOFFMANN-LA ROCHE INC. Office 120,736 0.7% 0.6%
EMI ENTERTAINMENT WORLD Office 65,844 0.7% 0.6%
* STATE FARM Office/Industrial 162,651 0.7% 1.0%
HELLER EHRMAN WHITE Office 51,167 0.7% 0.6%
LABORATORY CORP OF AMERICA Office 108,000 0.7% 0.6%
ESTEE LAUDER Industrial 374,578 0.7% 0.6%
* DRAFT WORLDWIDE INC. Office 124,008 0.7% 1.1%
PRACTICING LAW INSTITUTE Office 62,000 0.7% 0.6%
LOCKHEED MARTIN CORP. Office 123,554 0.7% 0.6%
RADIANZ (REUTERS) Office 130,009 0.6% 0.5%
TOWERS PERRIN FOSTER Office 88,233 0.6% 0.5%
* MERRILL LYNCH Office 102,973 0.6% 0.7%
- ----- ------------------------------------------------------------------------------------------------------------------------------
TENANT DIVERSIFICATION (2)
TOTAL PORTFOLIO
[Graphic Omitted]
Accounting 2%
Advertising 1%
Commercial Banks 5%
Consumer Products 13%
Defense/Electronics 2%
Financial Services 12%
Government 2%
Healthcare 4%
Hospitality 1%
Insurance 8%
Legal Services 11%
Manufacturing 3%
Media/Entertainment 6%
Other Professional Services 8%
Pharmaceuticals 3%
Real Estate 3%
Retail/Wholesale 2%
Technology 4%
Telecom 9%
Transportation 1%
- -------------------------------------------------------------------------------
(1) Ranked by pro rata share of annualized base rental revenue.
(2) Based on annualized base rental revenue adjusted for pro rata share of
joint venture interests. * Part or all of space occupied by tenant is
in a 51% or more owned joint venture building.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
28
- -------------------------------------------------------------------------------
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 years 1998 through 2001 and the nine months ended September 30, 2002.
- --------------------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL REVENUE GENERATING CAPITAL EXPENDITURES
- --------------------------------------------------------------------------------------------------------------------------------
Average
1998 1999 2000 2001 1998-2001 2002
------------ ----------- ---------- ---------- ----------- ------------
Suburban Office Properties
Total $2,004,976 $2,298,899 $3,289,116 $4,606,069 $3,049,765 $3,629,532
Per Square Foot 0.23 0.23 0.33 0.45 0.31 $0.36
NYC Office Properties
Total N/A N/A $946,718 $1,584,501 $1,265,610 $1,406,967
Per Square Foot N/A N/A 0.38 0.45 0.42 $0.40
Industrial Properties
Total $1,205,266 $1,048,688 $813,431 $711,666 $944,763 $1,379,875
Per Square Foot 0.12 0.11 0.11 0.11 0.11 $0.21
- ---------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL REVENUE GENERATING TENANT IMPROVEMENTS AND LEASING COMMISSIONS (3)
- ---------------------------------------------------------------------------------------------------------------------
Average
1998 1999 2000 2001 1998-2001
------------ ----------- ------------ ------------- ------------
Long Island Office Properties
Tenant Improvements $1,140,251 $1,009,357 $2,853,706 $2,722,457 $1,931,443
Per Square Foot Improved 3.98 4.73 6.99 8.47 6.04
Leasing Commissions $418,191 $551,762 $2,208,604 $1,444,412 $1,155,742
Per Square Foot Leased 1.46 2.59 4.96 4.49 3.38
------------- ------------ ------------- ------------- --------------
Total Per Square Foot $5.44 $7.32 $11.95 $12.96 $9.42
============= ============ ============= ============= =============
Westchester Office Properties
Tenant Improvements $711,160 $1,316,611 $1,860,027 $2,584,728 $1,618,132
Per Square Foot Improved 4.45 5.62 5.72 5.91 5.43
Leasing Commissions $286,150 $457,730 $412,226 $1,263,012 $604,780
Per Square Foot Leased 1.79 1.96 3.00 2.89 2.41
------------- ------------ ------------- ------------- -------------
Total Per Square Foot $6.24 $7.58 $8.72 $8.80 $7.84
============= ============ ============= ============= =============
Connecticut Office Properties
Tenant Improvements $202,880 $179,043 $385,531 $213,909 $245,341
Per Square Foot Improved 5.92 4.88 4.19 1.46 4.11
Leasing Commissions $151,063 $110,252 $453,435 $209,322 $231,018
Per Square Foot Leased 4.41 3.00 4.92 1.43 3.44
------------- ------------ ------------- ------------- -------------
Total Per Square Foot $10.33 $7.88 $9.11 $2.89 $7.55
============= ============ ============= ============= =============
New Jersey Office Properties
Tenant Improvements $654,877 $454,054 $1,580,323 $1,146,385 $958,910
Per Square Foot Improved 3.78 2.29 6.71 2.92 3.93
Leasing Commissions $396,127 $787,065 $1,031,950 $1,602,962 $954,526
Per Square Foot Leased 2.08 3.96 4.44 4.08 3.64
------------- ------------ ------------- ------------ ------------
Total Per Square Foot $5.86 $6.25 $11.15 $7.00 $7.57
============= ============ -=========--- ============ ============
New York City Office Properties
Tenant Improvements N/A N/A $65,267 $788,930 $427,099
Per Square Foot Improved N/A N/A 1.79 15.69 8.74
Leasing Commissions N/A N/A $418,185 $1,098,829 $758,507
Per Square Foot Leased N/A N/A 11.50 21.86 16.68
------------- ------------ ------------- ------------ ------------
Total Per Square Foot N/A N/A $13.29 $37.55 $25.42
============= ============ ============= ============ ============
Industrial Properties
Tenant Improvements $283,842 $375,646 $650,216 $1,366,488 $669,048
Per Square Foot Improved 0.76 0.25 0.95 1.65 0.90
Leasing Commissions $200,154 $835,108 $436,506 $354,572 $456,585
Per Square Foot Leased 0.44 0.56 0.64 0.43 0.52
------------- ------------ ------------- ------------ ------------
Total Per Square Foot $1.20 $0.81 $1.59 $2.08 $1.42
============= ============ ============= ============ ============
YTD
2002 New Renewal
-------------- ------------ -----------
Long Island Office Properties
Tenant Improvements $1,240,929 $675,704 $565,225
Per Square Foot Improved 6.37 9.70 4.52
Leasing Commissions $773,699 $317,398 $456,301
Per Square Foot Leased 3.97 4.55 3.65
-------------- --------------- -------------
Total Per Square Foot 10.33 $14.25 $8.16
============== =============== =============
Westchester Office Properties
Tenant Improvements $5,973,514(2) $3,907,006 $2,066,508
Per Square Foot Improved 15.63 18.46 12.12
Leasing Commissions $1,777,227 $1,434,359 $342,868
Per Square Foot Leased 4.91 6.36 2.51
-------------- --------------- -------------
Total Per Square Foot $20.54 $24.83 $14.63
============== =============== =============
Connecticut Office Properties
Tenant Improvements $397,308 $395,588 $1,720
Per Square Foot Improved 7.92 8.52 0.46
Leasing Commissions $122,612 $122,612 $0
Per Square Foot Leased 2.45 2.64 --
-------------- --------------- -------------
Total Per Square Foot $10.37 $11.16 0.46
============== =============== =============
New Jersey Office Properties
Tenant Improvements $1,306,938 $998,613 $308,325
Per Square Foot Improved 9.39 17.47 3.76
Leasing Commissions $359,276 $131,731 $227,545
Per Square Foot Leased 2.52 2.18 2.77
------------- ------------- -------------
Total Per Square Foot $11.91 $19.65 $6.53
============= -============ -------------
New York City Office Properties
Tenant Improvements $3,868,236 $3,104,358 $763,878
Per Square Foot Improved 21.14 21.77 18.91
Leasing Commissions $1,665,978 $1,218,308 $447,670
Per Square Foot Leased 9.10 8.54 11.08
============= -============ -------------
Total Per Square Foot $30.24 $30.32 $29.99
============= -============ -------------
Industrial Properties
Tenant Improvements $872,114 $694,363 $177,751
Per Square Foot Improved 1.43 3.31 --
Leasing Commissions $366,653 $320,996 $45,657
Per Square Foot Leased 0.60 1.52 0.11
============= -============ -------------
Total Per Square Foot $2.02 $4.84 $0.11
============= -============ -------------
- -------------------------------------------------------------------------------
NOTES:
- ------
(1) Excludes non-incremental capital expenditures, tenant improvements and
leasing commissions for One Orlando Center in Orlando, Florida.
(2) Excludes tenant improvements and leasing commissions related to a 163,880
square foot leasing transaction with Fuji Photo Film U.S.A. Leasing
commissions on this transaction amounted to $5.33 per square foot and
tenant improvement allowance amounted to $40.88 per square foot.
(3) All amounts represent tenant improvements and leasing costs committed on
leases signed during the period.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
29
- ------------------------------------------------------------------------------
ANALYSIS OF CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COSTS (5)
As of September 30, 2002
- ----------------------------------------------------------------------------------------------------------------------------
3Q02 COSTS PER YEAR-TO-DATE COSTS PER
CAPITAL EXPENDITURES COSTS SQUARE FOOT COSTS SQUARE FOOT
- ----------------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL CAPITAL EXPENDITURES
Maintenance Capital Expenditures $2,825,165 $0.14 $6,416,374 $0.32
--------------- ---------------- ----------------- ----------------
Total Recurring Capital Expenditures $2,825,165 $0.14 $6,416,374 $0.32
=============== ================ ================= ================
INCREMENTAL CAPITAL EXPENDITURES
Property Renovations $1,213,194 $0.06 $6,416,774 $0.32
--------------- ---------------- ----------------- ----------------
Total Non-recurring Capital Expenditures $1,213,194 $0.06 $6,416,774 $0.32
=============== ================ ================= ================
--------------- ----------------
ACQUISITION AND DEVELOPMENT COSTS $5,494,387 $37,303,616
=============== ================
- ----------------------------------------------------------------------------------------------------------------------------------
3Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (1) COSTS SQUARE FOOT COSTS SQUARE FOOT
- ----------------------------------------------------------------------------------------------------------------------------------
COMMITTED (6)
NON-INCREMENTAL
Leasing Costs $2,298,304 $4.23 $5,065,442 $3.27
Tenant Improvements $7,758,594 $13.78 $13,659,039 $8.76
--------------- --------------- ---------------- -------------
TOTAL NON-INCREMENTAL $10,056,898 $18.01 $18,724,481 $12.03
INCREMENTAL (4)
Leasing Costs $470,653 $12.32 $3,773,197 $10.08
Tenant Improvements $1,143,533 $29.94 $14,225,835 $38.00
--------------- --------------- ---------------- -------------
TOTAL INCREMENTAL $1,614,186 $42.27 $17,999,032 $48.08
--------------- --------------- ---------------- -------------
TOTAL COMMITTED/ WTD AVG. $11,671,084 $21.37 $36,723,513 $29.70
=============== =============== ================ =============
- ----------------------------------------------------------------------------------------------------------------------------------
3Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (2) COSTS SQUARE FOOT COSTS SQUARE FOOT
- ----------------------------------------------------------------------------------------------------------------------------------
PAID OR ACCRUED
NON-INCREMENTAL
Leasing Costs $3,784,438 $2.40 $8,213,751 $1.86
Tenant Improvements $4,875,425 $3.72 $12,800,107 $2.72
--------------- ------------- ----------------- --------------
TOTAL NON-INCREMENTAL $8,659,863 $6.12 $21,013,858 $4.58
INCREMENTAL (4)
Leasing Costs $2,835,467 $6.63 $4,575,271 $2.08
Tenant Improvements $1,304,335 $2.78 $5,395,466 $2.31
--------------- ------------- ----------------- --------------
TOTAL INCREMENTAL $4,139,802 $9.42 $9,970,737 $4.39
--------------- ------------- ----------------- --------------
TOTAL PAID OR ACCRUED $12,799,665 $7.19 $30,984,595 $4.52
=============== ============= ================= ==============
- ----------------------------------------------------------------------------------------------------------------------------------
3Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (3) COSTS SQUARE FOOT COSTS SQUARE FOOT
- ----------------------------------------------------------------------------------------------------------------------------------
COMMITTED EXCLUDING LEASES SCHEDULED TO EXPIRE
IN FUTURE PERIODS (6)
NON-INCREMENTAL
Leasing Costs $2,313,867 $6.31 3,982,007 $10.74
Tenant Improvements $7,109,428 $13.14 $11,686,798 $8.85
---------------- ------------- ------------------ -------------
TOTAL NON-INCREMENTAL $9,423,295 $19.45 $11,686,798 $19.59
INCREMENTAL (4)
Leasing Costs $470,653 $12.32 $3,773,197 $10.08
Tenant Improvements $1,143,533 $29.94 $14,225,835 $38.00
---------------- ------------- ------------------ -------------
TOTAL INCREMENTAL $1,614,186 $42.27 $17,999,032 $48.08
---------------- ------------- ------------------ -------------
TOTAL PAID OR ACCRUED $11,037,481 $22.79 $29,685,830 $36.86
================ ============= ================== =============
- -------------------------------------------------------------------------------
(1) Represents tenant Improvements and leasing costs committed on leases
signed during the period.
(2) Represents tenant improvements and leasing costs paid or accrued during
the period.
(3) Represents tenant Improvements and leasing costs committed to leases
signed during the period excluding leases that were scheduled to expire in
future periods.
(4) Represents tenant improvements and leasing costs on developments and
repositionings.
(5) Excludes non-incremental capital expenditures, tenant improvements and
leasing commissions for One Orlando Center in Orlando, Florida.
(6) Excludes tenant improvements and leasing commissions related to a 163,880
square foot leasing transaction with Fuji Photo Film U.S.A. Leasing
commissions on this transaction amounted to $5.33 per square foot and
tenant improvement allowance amounted to $40.88 per square foot.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
30
- -------------------------------------------------------------------------------
CAPITAL EXPENDITURES
As of September 30, 2002
- ----------------------------------------------------------------------------------------------------------
2Q01 3Q01 4Q01 1Q02 2Q02
CAPITAL EXPENDITURES AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT
- ----------------------------------------------------------------------------------------------------------
RECURRING - NON INCREMENTAL
---------------------------
Amenities (Health Club, Cafe, etc.) $46,474 $32,858 $3,607 $85,670 $20,230
Bathrooms $18,170 $132,968 $325,582 $316,963 $55,871
Corridors $158,818 $97,442 $187,429 $161,964 $82,480
Elevators $31,335 $200,094 $33,585 $24,589 $2,123
Exterior Renovation $325,437 $272,828 $205,918 $214,344 $600,148
Lobby -$16,053 $47,176 $89,752 $37,635 $90,566
Mechanical, Electrical & Plumbing $227,574 $385,100 $505,362 $468,287 $663,361
Other $358,905 $383,304 $632,354 $140,591 $291,271
Parking Lots $202,218 $113,333 $446,703 $12,789 $150,057
Roofs $286,101 $260,183 $107,557 $15,377 $80,414
Security $69,694 $13,386 $30,624 $33,525 $42,953
- ----------------------------------------------------------------------------------------------------------
TOTAL RECURRING - NON INCREMENTAL $1,708,674 $1,938,674 $2,568,473 $1,511,734 $2,079,474
Amount Per Square Foot $0.08 $0.09 $0.12 $0.07 $0.10
NON-RECURRING - INCREMENTAL (1) $3,519,314 $2,331,452 $3,025,187 $1,673,606 $3,529,974
-------------------------------
Amount Per Square Foot $0.17 $0.11 $0.15 $0.08 $0.17
Rentable SF 21,298,951 20,695,723 20,610,545 20,546,468 20,545,786
# of Buildings 188 183 182 181 181
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
3Q02 4Q02 2002
CAPITAL EXPENDITURES AMOUNT AMOUNT YTD AMOUNT
- ----------------------------------------------------------------------------------------
RECURRING - NON INCREMENTAL
---------------------------
Amenities (Health Club, Cafe, etc.) $0 $105,900
Bathrooms $88,216 $461,050
Corridors $65,587 $310,031
Elevators $41,870 $68,583
Exterior Renovation $1,079,221 $1,893,713
Lobby $237,657 $365,858
Mechanical, Electrical & Plumbing $625,584 $1,757,233
Other $293,218 $725,081
Parking Lots $269,198 $432,043
Roofs $124,615 $220,405
Security $76,478
- ----------------------------------------------------------------------------------------
TOTAL RECURRING - NON INCREMENTAL $2,825,165 $0 $6,416,374
Amount Per Square Foot $0.14 $0.32
NON-RECURRING - INCREMENTAL (1) $1,213,194 $6,416,774
-------------------------------
Amount Per Square Foot $0.06 $0.32
Rentable SF 20,349,799 20,545,786
# of Buildings 178 178
- ----------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(1) Represents value enhancing capital expenditures.
(2) Excludes non-incremental tenant improvements and leasing commissions for
One Orlando Center in Orlando, Florida.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
31
TENANT IMPROVEMENTS AND LEASING COSTS
As of September 30, 2002
- ---------------------------------------------------------------------------------------------------------------------------------
2Q01 3Q01 4Q01 1Q02
COMMITTED (1) AMOUNT AMOUNT AMOUNT AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Non-Incremental
---------------
LEASING COSTS $1,446,245 $1,054,004 $2,383,854 $1,532,939
TENANT IMPROVEMENTS $1,965,338 $765,749 $4,309,256 $3,293,408
--------------------------------------------------------------------------------
Non-Recurring Capital Expenditures $3,411,583 $1,819,753 $6,693,110 $4,826,347
INCREMENTAL (4)
---------------
LEASING COSTS $611,015 $1,430,544 $339,337 $2,910,232
TENANT IMPROVEMENTS $2,230,664 $1,929,149 $2,345,122 $11,095,857
--------------------------------------------------------------------------------
Total Incremental $2,841,679 $3,359,693 $2,684,459 $14,006,089
--------------------------------------------------------------------------------
TOTAL COMMITTED $6,253,262 $5,179,446 $9,377,569 $18,832,436
===========================================================================
2Q01 3Q01 4Q01 1Q02
PAID OR ACCRUED (2) AMOUNT AMOUNT AMOUNT AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL
---------------
LEASING COSTS $2,819,470 $1,237,447 $1,503,116 $2,240,976
TENANT IMPROVEMENTS $4,849,956 $2,751,620 $5,107,743 $4,243,242
--------------------------------------------------------------------------------
Total Non-Incremental $7,669,426 $3,989,067 $6,610,859 $6,484,218
INCREMENTAL (4)
---------------
LEASING COSTS $3,471,436 $237,482 $2,199,465 $829,468
TENANT IMPROVEMENTS $23,776,980 $8,137,624 $11,489,202 $1,244,676
--------------------------------------------------------------------------------
Total Incremental $27,248,416 $8,375,106 $13,688,667 $2,074,145
--------------------------------------------------------------------------------
TOTAL PAID OR ACCRUED $34,917,842 $12,364,173 $20,299,526 $8,558,362
===========================================================================
- ----------------------------------------------------------------------------------------------------------------------------
2Q02 3Q02 4Q02 2002
COMMITTED (1) AMOUNT AMOUNT AMOUNT YTD AMOUNT
- ----------------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL
---------------
LEASING COSTS $1,234,199 $2,298,304 (5) $5,065,442
TENANT IMPROVEMENTS $2,607,037 $7,758,594 (5) $13,659,039
--------------------------------------------------------------------------------
Non-Recurring Capital Expenditures $3,841,236 $10,056,898 $0 $18,724,481
INCREMENTAL (4)
---------------
LEASING COSTS $392,312 $470,653 $3,773,197
TENANT IMPROVEMENTS $1,986,445 $1,143,533 $14,225,835
--------------------------------------------------------------------------------
Total Incremental $2,378,757 $1,614,186 $0 $17,999,032
--------------------------------------------------------------------------------
TOTAL COMMITTED $6,219,993 $11,671,084 $0 $36,723,513
===========================================================================
2Q02 3Q02 4Q02 2002
PAID OR ACCRUED (2) AMOUNT AMOUNT AMOUNT YTD AMOUNT
- ----------------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL
---------------
LEASING COSTS $2,188,337 $3,784,438 $8,213,751
TENANT IMPROVEMENTS $3,681,440 $4,875,425 $12,800,107
--------------------------------------------------------------------------------
Total Non-Incremental $5,869,778 $8,659,863 $0 $21,013,858
INCREMENTAL (4)
---------------
LEASING COSTS $910,336 $2,835,467 $4,575,271
TENANT IMPROVEMENTS $2,846,454 $1,304,335 $5,395,466
--------------------------------------------------------------------------------
Total Incremental $3,756,790 $4,139,802 $0 $9,970,737
--------------------------------------------------------------------------------
TOTAL PAID OR ACCRUED $9,626,568 $12,799,665 $0 $30,984,595
===========================================================================
- -------------------------------------------------------------------------------
(1) Represents tenant Improvements and leasing costs committed on leases signed
during the period.
(2) Represents tenant improvements and leasing costs paid or accrued during the
period.
(3) Represents tenant improvements at 100% of cost for all consolidated
properties.
(4) Represents tenant improvements and leasing costs on developments and
repositionings.
(5) Excludes tenant improvements and leasing commissions related to a 163,880
square foot leasing transaction with Fuji Photo Film U.S.A. Leasing
commissions on this transaction amounted to $5.33 per square foot and tenant
improvement allowance amounted to $40.88 per square foot.
(6) Excludes non-incremental tenant improvements and leasing commissions for One
Orlando Center in Orlando, Florida.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30,2002
32
- --------------------------------------------------------------------------------
CLASS A OFFICE STATISTICS
LONG ISLAND 1998 1999 2000 2001 3Q02
Average Asking Rental Rates $27.23 $27.69 $28.86 $30.06 $29.39
Overall Vacancy 6.7% 6.5% 8.4% 11.9% 12.5%
Direct Vacancy 6.1% 5.6% 6.3% 7.7% 8.6%
WESTCHESTER 1998 1999 2000 2001 3Q02
Average Asking Rental Rates $26.67 $27.23 $29.62 $30.15 $29.78
Overall Vacancy 19.2% 16.3% 12.0% 20.5% 19.5%
Direct Vacancy 16.4% 15.0% 10.7% 16.3% 15.0%
SOUTHERN CONNECTICUT 1998 1999 2000 2001 3Q02
Average Asking Rental Rates $32.22 $31.78 $44.41 $36.10 $34.94
Overall Vacancy 4.2% 4.7% 8.1% 13.6% 16.6%
Direct Vacancy 3.6% 4.0% 7.2% 8.8% 7.3%
NORTHERN NEW JERSEY 1998 1999 2000 2001 3Q02
Average Asking Rental Rates $27.42 $28.52 $29.66 $30.92 $30.67
Overall Vacancy 7.5% 7.1% 9.9% 13.4% 16.7%
Direct Vacancy 5.3% 4.6% 6.5% 8.1% 10.1%
Source: Cushman & Wakefield
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
33
- --------------------------------------------------------------------------------
NEW YORK CITY CLASS A OFFICE STATISTICS
AVERAGE ASKING RENTS 1998 1999 2000 2001 3Q02
Financial East $ 40.21 $ 37.64 $ 52.90 $ 48.07 $ 47.93
Midtown West Side $ 43.36 $ 48.28 $ 60.89 $ 61.22 $ 54.33
Midtown East Side $ 47.85 $ 51.18 $ 61.46 $ 59.81 $ 56.38
6th Ave./Rockefeller Center $ 51.33 $ 53.12 $ 65.91 $ 67.15 $ 65.32
DIRECT VACANCY RATES
FINANCIAL EAST 1998 1999 2000 2001 3Q02
Overall Vacancy 7.3% 4.1% 2.1% 7.0% 15.1%
Direct Vacancy 6.6% 3.4% 1.4% 2.3% 9.3%
MIDTOWN WEST
Overall Vacancy 4.3% 6.0% 2.7% 6.2% 6.3%
Direct Vacancy 3.3% 4.6% 2.4% 4.0% 3.9%
MIDTOWN EAST
Overall Vacancy 8.0% 5.0% 2.6% 8.9% 11.2%
Direct Vacancy 6.0% 3.8% 1.9% 3.1% 5.3%
6TH AVE/ROCK CTR
Overall Vacancy 5.0% 2.6% 1.2% 4.3% 8.4%
Direct Vacancy 2.2% 1.6% 0.9% 2.7% 3.1%
Source: Cushman & Wakefield
Breakdown of New York City Revenue:
Midtown East Side 43%
Midtown West Side 31%
6th Ave./Rockefeller Center 15%
Financial East 11%
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
34
- --------------------------------------------------------------------------------
LONG ISLAND SUBMARKET CLASS A OFFICE STATISTICS
DIRECT VACANCY RATES 1998 1999 2000 2001 3Q02
Central Nassau County 5.1% 5.1% 4.7% 5.6% 6.0%
Western Suffolk County 7.7% 11.6% 15.4% 17.5% 11.5%
Eastern Nassau County 4.9% 0.9% 1.4% 1.2% 1.8%
AVERAGE ASKING RENTS 1998 1999 2000 2001 3Q02
Central Nassau County $ 29.10 $ 29.93 $ 31.15 $ 31.94 $ 31.60
Western Suffolk County $ 26.22 $ 27.34 $ 28.22 $ 30.06 $ 30.27
Eastern Nassau County $ 27.49 $ 26.23 $ 28.75 $ 29.02 $ 29.13
Source: Cushman & Wakefield
Breakdown of Long Island office revenue:
Central Nassau 48%
Western Suffolk 35%
Eastern Nassau 8%
Other 9%
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
35
- --------------------------------------------------------------------------------
WESTCHESTER SUBMARKETS CLASS A OFFICE STATISTICS
DIRECT VACANCY RATES 1998 1999 2000 2001 3Q02
Central 12.3% 13.5% 12.0% 20.6% 16.7%
Tarrytown / Western 7.8% 8.0% 6.0% 8.4% 12.1%
Eastern 12.2% 10.1% 8.1% 16.6% 10.8%
White Plains CBD 22.7% 22.6% 11.5% 15.3% 16.6%
AVERAGE ASKING RENTS 1998 1999 2000 2001 3Q02
Central $ 22.91 $ 27.07 $ 28.49 $ 29.53 $ 28.73
Tarrytown/Western $ 24.66 $ 27.30 $ 27.03 $ 28.37 $ 24.74
Eastern $ 29.35 $ 27.70 $ 29.65 $ 30.62 $ 31.35
White Plains CBD $ 26.84 $ 27.44 $ 30.62 $ 30.52 $ 30.47
Source: Cushman & Wakefield
Breakdown of Westchester office revenue:
White Plains 16%
Tarrytown / Western 30%
Central 36%
Eastern 15%
Other 3%
Note: The 16.7% vacancy in Central Westchester is
impacted by IBM selling a 383,000sf owner occupied
building. The location of this building is not
easily accessible to major thoroughfares and
employee bedroom communities. Excluding this
building the vacancy rate is 15%.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
36
- --------------------------------------------------------------------------------
NEW JERSEY SUBMARKETS CLASS A OFFICE STATISTICS
AVERAGE ASKING RENTS 1998 1999 2000 2001 3Q02
Essex County $ 27.74 $ 28.78 $ 28.90 $ 30.24 $ 28.32
Bergen County $ 27.37 $ 28.07 $ 29.41 $ 29.78 $ 28.50
Mercer County $ 24.49 $ 27.46 $ 30.32 $ 30.06 $ 30.25
DIRECT VACANCY RATES 1998 1999 2000 2001 3Q02
Essex County 3.3% 6.0% 9.6% 6.8% 9.9%
Bergen County 6.8% 5.3% 5.1% 9.9% 10.9%
Mercer County 1.5% 5.2% 6.3% 6.2% 5.4%
Source: Cushman & Wakefield
Breakdown of New Jersey office revenue:
Essex County 53%
Bergen County 11%
Mercer County 7%
Other 29%
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
37
- --------------------------------------------------------------------------------
VALUE CREATION PIPELINE
As of September 30, 2002
- -------------------------------------------------------------------------------------------------------------------------
Square Feet/ Investment Anticipated Current %
Stage / Property Acres To Date Total Investment (a) Leased
- -------------------------------------------------------------------------------------------------------------------------
PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
- -------------------------------------------
2001 Orville Drive North, Bohemia, NY 71,000 4,166,000 $7,280,000 0.0%
- -------------------------------------------------------------------------- ----------------------- ----------------------
TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 71,000 $4,166,000 $7,280,000 0.0%
- -------------------------------------------------------------------------- ----------------------- ----------------------
PROJECTS IN PLANNING
- --------------------
Melville Square II, Melville, NY 275,000 $51,330,000
University Square , Princeton, NJ 316,000 $57,280,000
68 South Service Road, Melville, NY 277,000 $47,000,000
Reckson Executive Park - Ryebrook (Building 7), Ryebrook, NY 315,000 $74,890,000
Giralda Farms , Madison Township, NJ 436,000 $113,770,000
70 Andrews Road, Hicksville, NY 58,000 $5,180,000
- -------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING 1,677,000 $68,629,873 $349,450,000
- -------------------------------------------------------------------------------------------------------------------------
LAND
- ----
Old Willets Path, Hauppauge, NY 2.0
Eagle Rock III, East Hanover, NJ 15.0
AIP 45, Bohemia, NY 4.2
AIP 43, Bohemia NY 3.8
East Patchogue, East Patchogue, NY 23.0
Giralda Farms , Chatham Township, NJ 113.0
Valhalla Land, Valhalla, NY 52.7
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LAND 213.7 $44,659,228
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
TOTAL UNREALIZED PIPELINE $117,455,102 $356,730,000
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Estimated Anticipated
Stage / Property Stabilization Date (a) Stabilized Return (a)
- -------------------------------------------------------------------------------------------------------------------
PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
- -------------------------------------------
2001 Orville Drive North, Bohemia, NY Q4 2002 9.0%
- -------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 9.0%
- -------------------------------------------------------------------------------------------------------------------
PROJECTS IN PLANNING
- --------------------
Melville Square II, Melville, NY TBD
University Square , Princeton, NJ TBD
68 South Service Road, Melville, NY TBD
Reckson Executive Park - Ryebrook (Building 7), Ryebrook, NY TBD
Giralda Farms , Madison Township, NJ TBD
70 Andrews Road, Hicksville, NY TBD
- -------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING 11% TO 12%
- -------------------------------------------------------------------------------------------------------------------
LAND
- ----
Old Willets Path, Hauppauge, NY
Eagle Rock III, East Hanover, NJ
AIP 45, Bohemia, NY
AIP 43, Bohemia NY
East Patchogue, East Patchogue, NY
Giralda Farms , Chatham Township, NJ
Valhalla Land, Valhalla, NY
- -------------------------------------------------------------------------------------------------------------------
TOTAL LAND
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
TOTAL UNREALIZED PIPELINE
- -------------------------------------------------------------------------------------------------------------------
Investments that reached realization during 2002
- ------------------------------------------------
58 South Service Road, Melville, NY 277,500
103 JFK Expressway, Short Hills, NJ 123,000
400 Moreland Road, Commack, NY 57,050
- --------------------------------------------------------------------------------
(a) Forward looking statement based upon management's estimates. Actual results
may differ materially.
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
38
- --------------------------------------------------------------------------------
UNCONSOLIDATED REAL ESTATE JOINT VENTURES
BALANCE SHEETS September 30, December 31,
(in thousands) 2002 2001
(Unaudited) (Unaudited)
ASSETS
- -------------------------------------------------------------------------------------------------
Commercial real estate property, at cost:
Land $ 3,462 $ 3,462
Building and improvements 20,749 20,711
Furniture, fixtures, and equipment 15 15
- -------------------------------------------------------------------------------------------------
24,226 24,188
Less: accumulated depreciation (4,756) (4,081)
- -------------------------------------------------------------------------------------------------
Investment in real estate, net of accumulated depreciation 19,470 20,107
Cash and cash equivalents 413 271
Tenant receivables 13 172
Deferred rents receivable 878 960
Prepaid expenses and other assets 339 306
Deferred leasing and loan costs 148 161
- -------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 21,261 $ 21,977
- -------------------------------------------------------------------------------------------------
LIABILITIES AND PARTNERS' CAPITAL
- -------------------------------------------------------------------------------------------------
LIABILITIES:
Mortgage note payable $ 12,679 $ 13,057
Accrued expenses and other liabilities 1,004 995
- -------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 13,683 14,052
- -------------------------------------------------------------------------------------------------
PARTNERS' CAPITAL 7,578 7,925
- -------------------------------------------------------------------------------------------------
TOTAL PARTNERS' CAPITAL 7,578 7,925
- -------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 21,261 $ 21,977
- -------------------------------------------------------------------------------------------------
STATEMENTS OF INCOME
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
- ----------------------------------------------------------------------------------------
REVENUES 2002 2001 2002 2001
- ----------------------------------------------------------------------------------------
Base Rents $ 855 $ 905 $2,409 $2,713
Other Income 2 5 9 17
Tenant escalations and reimbursements 100 29 156 163
- ----------------------------------------------------------------------------------------
Total Operating Revenues 957 939 2,574 2,893
- ----------------------------------------------------------------------------------------
EXPENSES
- ----------------------------------------------------------------------------------------
Property operating expenses 161 162 487 485
Real estate taxes 139 121 395 357
Marketing, general and administrative 10 17 35 42
Depreciation and amortization 230 229 689 688
Interest expense 281 292 854 899
- ----------------------------------------------------------------------------------------
Total Expenses 821 821 2,460 2,471
- ----------------------------------------------------------------------------------------
Net Income $ 136 $ 118 $ 114 $ 422
- ----------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
39
- --------------------------------------------------------------------------------
RSVP (INCLUDING ITS EQUITY INVESTMENTS)
COMBINED BALANCE SHEETS
(In thousands)
(UNAUDITED) (AUDITED)
SEPTEMBER 30, DECEMBER 31,
2002 2001
-------------- ------------
ASSETS
- ------
Cash and other assets $ 366,890 $ 358,985
Equity investments 135,587 135,416
--------- ---------
Total assets $ 502,477 $ 494,401
========= =========
LIABILITIES
- -----------
Accounts payable and accrued expenses $ 11,245 $ 10,546
Long term debt 261,623 234,449
Other liabilities 19,112 15,878
--------- ---------
Total liabilities 291,980 260,873
--------- ---------
MEMBER'S EQUITY (A)
- -------------------
Preferred equity 132,083 153,340
Common equity 86,118 87,892
Offering costs (7,704) (7,704)
--------- ---------
Total member's equity 210,497 233,528
--------- ---------
Total liabilities and member's equity $ 502,477 $ 494,401
========= =========
- --------------------------------------------------------------------------------
(a) RSVP has guaranteed $10 million of secured first mortgage debt to third
party financial institutions with respect to the Resort platform.
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
40
- --------------------------------------------------------------------------------
RSVP
SUMMARY OF INVESTED CAPITAL
(Amounts in thousands)
The following table sets forth the Company's invested capital (before valuation
reserves) in RSVP controlled (REIT-qualified) joint ventures and amounts which
were advanced under the RSVP Commitment to FrontLine, for its investment in RSVP
controlled investments:
- -------------------------------------------------------------------------------------------------
RSVP CONTROLLED AMOUNTS
PLATFORM JOINT VENTURES ADVANCED TOTAL
- -------------------------------------------------------------------------------------------------
Privatization (Prisons / Gov't offices) $ 21,480 $ 3,520 $ 25,000
Student housing 18,086 3,935 22,021
Medical offices 20,185 -- 20,185
Parking -- 9,091 9,091
Resorts -- 8,057 8,057
Net leased retail -- 3,180 3,180
Other assets and overhead -- 21,598 21,598
------------------------------------------------
Total $ 59,751 $ 49,381 $109,132
================================================
- --------------------------------------------------------------------------------
Included in these investments is approximately $16.5 million of cash that has
been contributed to the respective RSVP controlled joint ventures or advanced
under the RSVP Commitment to FrontLine and is being held, along with cash from
the preferred investors.
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
41
- --------------------------------------------------------------------------------
RSVP
SUMMARIZED PLATFORM BALANCE SHEETS AS OF SEPTEMBER 30, 2002 (UNAUDITED)
(Amounts in thousands)
-------------------------------------------------------------
STUDENT MEDICAL
PRIVATIZATION (3) HOUSING OFFICE PARKING
-------------------------------------------------------------
ASSETS
Real estate assets $ 44,719 $ 296,438 $ 59,338 $ 56,490
Other assets 10,075 38,589 50,045 6,269
-------------------------------------------------------------
Total Assets $ 54,794 $ 335,027 $ 109,383 $ 62,759
=============================================================
LIABILITIES
Accounts payable & other liabilities $ -- $ 24,775 $ 1,681 $ 2,327
Property related debt -- 261,623 44,314 31,662
-------------------------------------------------------------
Total Liabilities 0 286,398 45,995 33,989
-------------------------------------------------------------
PARTNER'S CAPITAL
RSVP / RAP capital 54,794 48,796 58,805 $ 19,862
Other partners (2) -- (167) 4,583 8,908
-------------------------------------------------------------
Total Partner's Capital 54,794 48,629 63,388 28,770
-------------------------------------------------------------
-------------------------------------------------------------
Total Liabilities and Partner's Capital $ 54,794 $ 335,027 $ 109,383 $ 62,759
=============================================================
---------------------------------------
NET LEASED
RESORTS RETAIL OTHER (1)
---------------------------------------
ASSETS
Real estate assets $ 61,226 $ 6,066 $ --
Other assets 10,220 3,150 7,452
---------------------------------------
Total Assets $ 71,446 $ 9,216 $ 7,452
=======================================
LIABILITIES
Accounts payable & other liabilities $ 4,697 $ 1,548 $ --
Property related debt 26,247 4,117 --
---------------------------------------
Total Liabilities 30,944 5,665 0
---------------------------------------
PARTNER'S CAPITAL
RSVP / RAP capital 21,486 3,551 7,452
Other partners (2) 19,016 -- --
---------------------------------------
Total Partner's Capital 40,502 3,551 7,452
---------------------------------------
---------------------------------------
Total Liabilities and Partner's Capital $ 71,446 $ 9,216 $ 7,452
=======================================
- --------------------------------------------------------------------------------
(1) Represents a note receivable collateralized by interests in certain senior
living facilities, less impairment allowances.
(2) Includes amounts that are subordinated to RSVP / RAP capital.
(3) Reflects carrying value of assets received through settlement.
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2002
42