EX-99.1 3 ex99-1.txt EXHIBIT 99.1 EXHIBIT 99.1 RECKSON ASSOCIATES REALTY CORP. FOURTH QUARTER 2002 SUPPLEMENTAL OPERATING AND FINANCIAL DATA MARCH 5, 2002 225 BROADHOLLOW ROAD, MELVILLE, NY 11747 PHONE: 631.694.6900 1.888.RECKSON FAX: 631.622.6790 WWW.RECKSON.COM -------------------------------------------------------------------------------- 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...........................................................................................15-18 o Portfolio Snapshot.....................................................................................................19 o Occupancy Analysis.....................................................................................................20 o Leasing Statistics..................................................................................................21-23 o Lease Expiration Schedules..........................................................................................24-28 o Top Tenants and Tenant Diversification.................................................................................29 o Capital Expenditures Analysis.......................................................................................30-33 Market Statistics o Suburban Markets Overview...........................................................................................34-35 o New York City Sub -Markets..........................................................................................36-37 o Long Island Sub-Markets................................................................................................38 o Westchester Sub-Markets................................................................................................39 o New Jersey Sub-Markets.................................................................................................40 Value Creation Pipeline Schedule..............................................................................................41 Unconsolidated Real Estate Joint Ventures.....................................................................................42 Reckson Strategic Venture Partners (RSVP) o Combined Balance Sheets................................................................................................43 o Summary of Invested Capital............................................................................................44 o Summarized Platform Balance Sheets.....................................................................................45
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. ### Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 -------------------------------------------------------------------------------- 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 20.3 million square feet located throughout the New York Tri-State area markets. These properties are comprised of 13.6 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 $3.1 billion and has generated a total return to its initial Class A common shareholders of approximately 182% for the period June 2, 1995 through December 31, 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 December 31, 2002 2 -------------------------------------------------------------------------------- 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 (212) 902-6781 (212) 449-0335 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 Early March 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 December 31, 2002 3 -------------------------------------------------------------------------------- REPORTING PERIOD HIGHLIGHTS SUMMARY FOURTH QUARTER 2002 RESULTS Reported fourth quarter diluted funds from operations ("FFO") of $.59 per share, as compared to FFO of $.57 per share for the fourth quarter of 2001, representing a per share increase of 3.5%. Reported diluted FFO for the year ended December 31, 2002 of $2.36 per share on total revenues of $506.1 million, as compared to FFO of $2.61 per share for the year-ended December 31, 2001, representing a per share decrease of (9.6%). SUMMARY PORTFOLIO PERFORMANCE Portfolio performance remained stable during the fourth quarter of 2002 with overall portfolio occupancy of 95.4% at December 31, 2002, as compared to 94.2% at September 30, 2002 and 94.6% at December 31, 2001. The Company reported occupancies at December 31, 2002 of 95.7% for the office portfolio and 94.7% for the industrial/R&D portfolio. This compares to 95.1% and 92.4%, respectively, at September 30, 2002 and 96.1% and 91.7%, respectively, at December 31, 2001. The Company also reported same property occupancy of 95.6% for the overall portfolio at December 31, 2002, as compared to 94.2% at September 30, 2002 and 94.6% at December 31 2001. Reported same property occupancies at December 31, 2002 of 96.1% for the office portfolio and 94.6% for the industrial/R&D portfolio. This compares to 95.6% and 91.6%, respectively, at September 30, 2002 and 96.2% and 91.6%, respectively, at December 31, 2001. During the quarter, the Company executed 63 leases encompassing 699,328 square feet, representing 3.4% of the total portfolio. For the year, the Company executed 255 leases encompassing 2.8 million square feet, representing 13.7% of the total portfolio. During the quarter and the year, the company renewed 45% and 60% of expiring square feet, respectively. As of December 31, 2002, the Company reduced total portfolio exposure to expiring leases to 7.6% in 2003 and 8.0% in 2004. This excludes the impact of the rejection of 191,972 square feet of leases by WorldCom/MCI. Core same property net operating income ("NOI") before termination fees for the fourth quarter of 2002 increased 8.3% (cash) and 3.0% (GAAP), compared to the fourth quarter of 2001. Core same property NOI before termination fees for the year ended December 31, 2002 increased 7.7% (cash) and 0.7% (GAAP), compared to year ended December 31, 2001. Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 4 -------------------------------------------------------------------------------- REPORTING PERIOD HIGHLIGHTS (continued) Net of minority interests in joint ventures, core same property NOI before termination fees for the fourth quarter of 2002 increased 3.9% (cash) and 2.0% (GAAP), compared to the fourth quarter of 2001. Net of minority interests in joint ventures, core same property NOI before termination fees for the year ended December 31, 2002 increased 3.9% (cash) and decreased (0.3%) (GAAP), compared to year ended December 31, 2001. Rent performance on renewal and replacement space during the fourth quarter of 2002 increased 5.8% (cash) and 9.5% (GAAP) in the office properties and decreased (8.3%) (cash) and increased 11.9% (GAAP) in the industrial/R&D properties. Rent performance on renewal and replacement space during the year ended December 31, 2002 increased 9.2% (cash) and 13.8% (GAAP) in the office properties and 1.1% (cash) and 14.4% (GAAP) in the industrial/R&D properties. OTHER HIGHLIGHTS Announced that the Company has entered into a sale contract with an affiliate of First Data Corp. for a 19.3 acre parcel of land located in Melville, Long Island, along with a contract for the build-to-suit construction of a 195,000 square foot office building, for an aggregate consideration of approximately $47 million. Subsequent to year-end, WorldCom/MCI announced the rejection of 191,972 square feet of leases totaling approximately $5.3 million of annual GAAP revenues. Closed on the refinancing of the Company's unsecured revolving credit facility, scheduled to mature in September of 2003, with a group of 14 banks. The facility bears interest at LIBOR plus a spread of 90 basis points, representing a reduction of 15 basis points from the previous facility. CONSOLIDATED FINANCIAL RESULTS The Company reported diluted earnings per Class A common share ("EPS") of $.14 for the fourth quarter of 2002, as compared to $.46 per Class A common share for the comparable 2001 period. The Company also reported diluted earnings per Class A common share ("EPS") of $.83 for the twelve months ended December 31, 2002, as compared to a loss of ($.92) per Class A common share for the comparable 2001 period. Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 5 -------------------------------------------------------------------------------- STOCK PERFORMANCE The following summarizes recent activity of Reckson's Class A common stock (RA):
3rd 4th Quarter Quarter 1/1/03 to 2002 2002 2/28/03 ---------------------------------------------- High Price* $ 24.92 $ 22.95 $ 21.40 Low Price* $ 21.08 $ 20.10 $ 19.48 Closing Price* $ 22.77 $ 21.05 $ 20.17 Average daily trading volume* 334,372 315,061 326,398 Indicated dividend per share** $ 1.6984 $ 1.6984 $ 1.6984 Closing dividend yield 7.46% 8.07% 8.42% Closing shares and units outstanding (thousands) 56,428 55,522 55,522 Closing market value of shares and units outstanding (thousands) $1,284,866 $1,168,738 $1,119,879
-------------------------------------------------------------------------------- The following summarizes recent activity of Reckson's Class B common stock (RA.B):
3rd 4th Quarter Quarter 1/1/03 to 2002 2002 2/28/03 ---------------------------------------------- High Price* $ 25.95 $ 23.88 $ 22.50 Low Price* $ 22.30 $ 20.70 $ 19.85 Closing Price* $ 23.75 $ 22.40 $ 20.55 Average daily trading volume* 80,700 12,266 114,705 Indicated dividend per share** $ 2.5884 $ 2.5884 $ 2.5884 Closing dividend yield 10.90% 11.56% 12.60% Closing shares outstanding (thousands) 9,915 9,915 9,915 Closing market value of shares outstanding (thousands) $ 235,481 $ 222,096 $ 203,753
-------------------------------------------------------------------------------- The following summarizes recent activity of Reckson's Series A preferred stock (RA.A):
3rd 4th Quarter Quarter 1/1/03 to 2002 2002 2/28/03 ---------------------------------------------- High Price* $ 24.10 $ 23.88 $ 23.27 Low Price* $ 20.30 $ 21.00 $ 22.25 Closing Price* $ 23.70 $ 22.50 $ 22.90 Average daily trading volume* 23,419 45,452 53,707 Indicated dividend per share** $ 1.9064 $ 1.9064 $ 1.9064 Closing dividend yield 8.04% 8.47% 8.32% Closing shares outstanding (thousands) 9,192 8,835 8,835 Closing market value of shares outstanding (thousands) $ 217,850 $ 198,788 $ 202,322
-------------------------------------------------------------------------------- * New York Stock Exchange trades only ** On an annual basis Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 6 -------------------------------------------------------------------------------- KEY FINANCIAL DATA (Dollars in thousands, except per share data)
FOR THE THREE MONTHS ENDED OR AS OF ------------------------------------------------------------------------- 12/31/02 9/30/02 6/30/02 3/31/02 12/31/01 ------------------------------------------------------------------------- SHARES AND UNITS ---------------- Common Shares Outstanding - Class A 48,246,083 49,152,033 50,988,233 50,305,143 49,982,377 Common Shares Outstanding - Class B 9,915,313 9,915,313 10,283,513 10,283,513 10,283,513 Operating Partnership Units Outstanding 7,276,224 7,276,224 7,276,224 7,942,692 7,487,218 ------------------------------------------------------------------------- Total Shares and Operating Partnership Units 65,437,620 66,343,570 68,547,97 68,531,348 67,753,108 ========================================================================= SHARE PRICE & DIVIDENDS - CLASS A --------------------------------- End of Period $ 21.05 $ 22.77 $ 24.90 $ 24.66 $ 23.36 High during period $ 22.95 $ 24.92 $ 26.00 $ 24.68 $ 24.46 Low during period $ 20.10 $ 21.08 $ 24.18 $ 22.54 $ 22.15 Dividend declared $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42 Closing dividend yield 8.1% 7.5% 6.8% 6.9% 7.3% SHARE PRICE & DIVIDENDS - CLASS B --------------------------------- End of period $ 22.40 $ 23.75 $ 25.50 $ 25.76 $ 25.51 High during period $ 23.88 $ 25.95 $ 27.07 $ 25.76 $ 25.76 Low during period $ 20.70 $ 22.30 $ 25.30 $ 23.86 $ 23.55 Dividend declared $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65 Closing dividend yield 11.6% 10.9% 10.2% 10.1% 10.2% MARKET CAPITALIZATION --------------------- Market Value of Common Equity (a) $ 1,390,848 $ 1,520,360 $ 1,713,015 $ 1,701,295 $ 1,604,822 Stated Value of Preferred Equity 290,524 299,462 299,462 299,462 310,765 Total Debt (b) 1,371,446 1,331,141 1,285,636 1,279,195 1,336,011 ------------------------------------------------------------------------- Total Market Capitalization $ 3,052,818 $ 3,150,963 $ 3,298,113 $ 3,279,952 $ 3,251,598 ========================================================================= Total Debt / Total Market Capitalization 44.9% 42.2% 39.0% 39.0% 41.1% SELECTED BALANCE SHEET DATA --------------------------- Book Value of Real Estate Assets before Depreciation $ 2,954,527 $ 2,935,695 $ 2,938,968 $ 2,894,481 $ 2,880,879 Total Assets $ 2,907,920 $ 2,898,948 $ 2,914,000 $ 2,914,546 $ 2,994,218 Total Liabilities $ 1,631,675 $ 1,578,835 $ 1,532,340 $ 1,518,623 $ 1,592,811 SELECTED OPERATING DATA ----------------------- Property Operating Revenues $ 127,002 $ 126,447 $ 122,929 $ 121,704 $ 121,314 Property Operating Expenses $ 45,580 $ 46,135 $ 41,431 $ 41,895 $ 42,244 Property Operating NOI $ 81,422 $ 80,312 $ 81,498 $ 79,809 $ 79,070 Property Gross Operating Margin 64.1% 63.5% 66.3% 65.6% 65.2% Other Revenues (excluding gain on sales of real estate) $ 2,356 $ 2,335 $ 2,008 $ 2,425 $ 2,706 Marketing, General & Administrative Expenses $ 8,868 $ 7,965 $ 7,650 $ 7,095 $ 7,115 as a percent of Total Revenues (excluding gain on sales of real estate) 6.9% 6.2% 6.1% 5.7% 5.7% Interest Expense $ 22,813 $ 22,653 $ 22,124 $ 20,995 $ 22,369 Capitalized Interest $ 1,962 $ 1,948 $ 1,799 $ 2,607 $ 2,442 Non-Incremental Capital Expenditures to NOI as a percent (d) (e) 10.91% 27.41% 6.64% 7.43% 8.68% FINANCIAL RATIOS ---------------- Debt Service Coverage Ratio 3.26 3.32 3.44 3.60 3.11 Fixed Charge Coverage Ratio 2.55 2.58 2.66 2.72 2.44 EPS, FFO AND CAD -------------- Class A Common stock: Basic Net Income per share $ 0.14 $ 0.25 $ 0.21 $ 0.24 $ 0.47 Diluted Net Income per share $ 0.14 $ 0.25 $ 0.21 $ 0.24 $ 0.46 Class B Common stock: Basic Net Income per share $ 0.21 $ 0.38 $ 0.32 $ 0.37 $ 0.71 Diluted Net Income per share $ 0.19 $ 0.26 $ 0.22 $ 0.26 $ 0.50 Diluted FFO per share $ 0.59 $ 0.59 $ 0.59 $ 0.60 $ 0.57 Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.45 $ 0.45 $ 0.45 $ 0.45 Diluted FFO payout ratio (Class A & B combined) 77.3% 77.4% 77.2% 76.1% 80.2% Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42 Diluted FFO payout ratio - Class A 72.4% 72.5% 72.3% 71.2% 74.9% Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65 Diluted FFO payout ratio - Class B 110.3% 110.5% 110.3% 108.8% 114.6% Diluted CAD per share (d) $ 0.36 $ 0.17 $ 0.45 $ 0.39 $ 0.33 Diluted weighted average Class A & B dividends per share or unit (d) $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 Diluted CAD payout ratio (Class A & B combined) (d) 127.7% 277.1% 101.2% 117.2% 138.9% Diluted weighted average Class A dividends per share (d) $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42 Diluted CAD payout ratio - Class A (d) 118.4% 257.0% 93.9% 108.5% 128.7% Diluted weighted average Class B dividends per share (d) $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65 Diluted CAD payout ratio - Class B (d) 180.4% 391.7% 143.2% 166.0% 196.7% TRI-STATE PORTFOLIO STATISTICS ------------------------------ Office properties 75 75 77 77 77 Office square footage 13,549,033 13,614,217 13,770,743 13,771,319 13,777,009 Office occupancy at end of quarter (c) 95.7% 95.1% 95.2% 96.2% 96.1% Industrial properties 101 101 102 102 103 Industrial square footage 6,716,394 6,720,342 6,755,843 6,755,949 6,813,536 Industrial occupancy at end of quarter (c) 94.7% 92.4% 92.0% 92.9% 91.7% Total portfolio occupancy at end of quarter (c) 95.4% 94.2% 94.2% 95.1% 94.6%
------------------------------------------------------------------------------- (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) 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. (e) For the three months ended September 30, 2002, this calculation would have yielded 13.46% exclusive of the approximately $11.2 million of committed costs related to the Fuji Photo Film USA Inc. transaction. -------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 7 -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS (In thousands, except per share data)
Three Months Ended The Years Ended December 31, December 31, ----------------------------------------------------------------------------------------------------------------------------------- REVENUES 2002 2001 2002 2001 ----------------------------------------------------------------------------------------------------------------------------------- Base Rents $ 110,969 $ 106,974 $ 437,393 $ 434,671 Tenant escalations and reimbursements 16,033 14,340 60,689 59,538 Interest income on mortgage notes and notes receivable 1,569 1,587 6,279 6,238 Investment and other income 272 736 1,731 14,199 ----------------------------------------------------------------------------------------------------------------------------------- Total Operating Revenues 128,843 123,637 506,092 514,646 ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Property operating expenses 25,756 25,041 101,165 98,069 Real estate taxes 19,824 17,203 73,876 69,222 Marketing, general and administrative 8,868 7,115 31,578 30,553 ----------------------------------------------------------------------------------------------------------------------------------- Total Expenses 54,448 49,359 206,619 197,844 ----------------------------------------------------------------------------------------------------------------------------------- Equity in earnings of service companies and real estate joint ventures 515 383 1,113 2,087 ----------------------------------------------------------------------------------------------------------------------------------- EBITDA 74,910 74,661 300,586 318,889 Depreciation and amortization 29,428 25,507 112,341 102,108 Interest expense 22,813 22,369 88,585 93,070 ----------------------------------------------------------------------------------------------------------------------------------- Income from continuing operations before minority interests and discontinued operations 22,669 26,785 99,660 123,711 Minority partners' interests in consolidated partnerships (4,351) (3,090) (18,730) (15,975) Limited partners' minority interest in the operating partnership (1,442) (1,909) (6,238) (9,436) Distributions to preferred unitholders (274) (481) (1,288) (2,111) ----------------------------------------------------------------------------------------------------------------------------------- Income from continuing operations 16,602 21,305 73,404 96,189 Adjust for non operating items, net of limited partners' minority interest: Discontinued operations (281) 338 4,762 1,019 Valuation reserves on affiliate loans and joint ventures -- (2,783) -- (148,717) Gain on sales of real estate -- 17,233 537 18,103 Extraordinary loss on extinguishment or debt (2,335) -- (2,335) (2,595) ----------------------------------------------------------------------------------------------------------------------------------- Income (loss) before dividends to preferred shareholders 13,986 36,093 76,368 (36,001) Dividends to preferred shareholders (5,374) (5,487) (21,835) (21,866) ----------------------------------------------------------------------------------------------------------------------------------- Net income (loss) allocable to common shareholders $ 8,612 $ 30,606 $ 54,533 $ (57,867) =================================================================================================================================== Net income (loss) allocable to: Class A Shareholders $ 6,563 $ 23,284 $ 41,604 $ (44,243) Class B Shareholders $ 2,049 $ 7,322 $ 12,929 $ (13,624) PER SHARE DATA Basic net income (loss) per weighted average common share: Class A common stock $ 0.18 $ 0.20 $ 0.79 $ (1.19) Gain on sales of real estate -- 0.26 0.01 0.29 Discontinued operations -- 0.01 0.07 0.02 Extraordinary loss (0.04) -- (0.03) (0.04) ----------------------------------------------------------------------------------------------------------------------------------- Basic net income (loss) per Class A common $ 0.14 $ 0.47 $ 0.84 $ (0.92) =================================================================================================================================== Class B common stock $ 0.27 $ 0.30 $ 1.21 $ (1.70) Gain on sales of real estate -- 0.40 0.01 0.42 Discontinued operations -- 0.01 0.11 0.02 Extraordinary loss (0.06) -- (0.05) (0.06) ----------------------------------------------------------------------------------------------------------------------------------- Basic net income (loss) per Class B common $ 0.21 $ 0.71 $ 1.28 $ (1.32) =================================================================================================================================== Diluted net income (loss) per weighted average common share: Class A common $ 0.14 $ 0.46 $ 0.83 $ (0.92) Class B common $ 0.19 $ 0.50 $ 0.90 $ (1.32) Basic weighted average common shares outstanding: Class A common 48,384 49,994 49,669 48,121 Class B common 9,915 10,284 10,122 10,284 Diluted weighted average common shares outstanding: Class A common 48,551 51,005 49,968 48,121 Class B common 9,915 10,284 10,122 10,284 -----------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 8 ------------------------------------------------------------------------------- SUMMARY DATA FUNDS FROM OPERATIONS ("FFO") AND FFO PAYOUT RATIOS CASH AVAILABLE FOR DISTRIBUTION ("CAD") AND CAD PAYOUT RATIOS -------------------------------------------------------------------------------
Three Months Ended The Years Ended December 31, December 31, ---------------------------------------------------- 2002 2001 2002 2001 ----------------------------------------------------- FUNDS FROM OPERATIONS: ---------------------- Diluted FFO per weighted average share or unit $ 0.59 $ 0.57 $ 2.36 $ 2.61 Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.46 $ 1.81 $ 1.77 Diluted FFO payout ratio (Class A & B combined) 77.3% 80.2% 77.0% 67.9% Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66 Diluted FFO payout ratio - Class A 72.4% 74.9% 72.1% 63.6% Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53 Diluted FFO payout ratio - Class B 110.3% 114.6% 110.0% 97.0% CAD - TOTAL COMMITTED TI & LEASING COSTS INCURRED DURING PERIOD (A) ------------------------------------------------------------------- Diluted CAD per weighted average share or unit $ 0.36 $ 0.33 $ 1.37 $ 1.77 Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.83 $ 1.79 Diluted CAD payout ratio (Class A & B combined) 127.7% 138.9% 133.6% 101.6% Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66 Diluted CAD payout ratio - Class A 118.4% 128.7% 123.9% 94.0% Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53 Diluted CAD payout ratio - Class B 180.4% 196.7% 189.0% 143.3% CAD - ACTUAL PAID OR ACCRUED TI & LEASING COSTS DURING PERIOD ------------------------------------------------------------- Diluted CAD per weighted average share or unit $ 0.30 $ 0.33 $ 1.42 $ 1.65 Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.83 $ 1.79 Diluted CAD payout ratio (Class A & B combined) 153.8% 140.7% 129.2% 108.6% Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66 Diluted CAD payout ratio - Class A 142.5% 130.3% 119.8% 100.4% Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53 Diluted CAD payout ratio - Class B 217.2% 199.2% 182.7% 153.1% CAD - COMMITTED TI & LEASING COSTS ON SIGNED LEASES, EXCLUDING EARLY RENEWALS (B) ---------------------------------------------------------------- Diluted CAD per weighted average share or unit $ 0.38 $ 1.43 Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 1.83 Diluted CAD payout ratio (Class A & B combined) 122.2% 143.1% Diluted weighted average Class A dividends per share $ 0.42 $ 1.70 Diluted CAD payout ratio - Class A 113.2% 118.7% Diluted weighted average Class B dividends per share $ 0.65 $ 2.59 Diluted CAD payout ratio - Class B 172.5% 181.1% -----------------------------------------------------------------------------------------------------------------------------------
Notes: (A) For the year ended December 31, 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: 119.2%), (Class A: 110.5%) and (Class B: 168.6%) for the year ended December 31, 2002 had these costs not been included. (B) For the year ended December 31, 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: 159.7%), (Class A: 106.3%) and (Class B: 162.2%) for the year ended December 31, 2002 had these costs not been included. ------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 9 ------------------------------------------------------------------------------- FUNDS FROM OPERATIONS AND FFO PAYOUT RATIO DATA (In thousands, except per share / unit data)
Three Months Ended The Years Ended December 31, December 31, ----------------------------------------------------------------------------------------------------------------------------------- 2002 2001 2002 2001 ----------------------------------------------------------------------------------------------------------------------------------- FUNDS FROM OPERATIONS ----------------------------------------------------------------------------------------------------------------------------------- Net income allocable to common shareholders $ 8,612 $ 30,606 $ 54,533 $ (57,867) Add back: Real estate depreciation and amortization 28,336 24,911 108,906 100,967 Minority partners' interests in consolidated partnerships 4,351 3,090 18,730 15,975 Limited partners' minority interest in the operating partnership 1,410 3,599 6,948 -- Valuation reserves on investments in affiliate loans and joint ventures -- -- -- 163,000 Extraordinary loss on exinguishment of debt (net of limited partners minority interest) 2,335 -- 2,335 2,595 Less: Limited partners' minority interest in the operating partnership -- -- -- 5,727 Gain on sales of real estate -- 19,201 5,433 20,173 Amounts distributable to minority partners in consolidated partnerships 6,053 4,072 24,996 19,083 ----------------------------------------------------------------------------------------------------------------------------------- Basic Funds From Operations 38,991 38,933 161,023 179,687 Add dividends and distributions on dilutive shares and units: Series A preferred stock 4,267 4,381 17,410 17,524 Series B preferred stock 1,106 -- 4,425 4,342 Minority partners' preferred interest -- -- -- 2,624 Limited partners' preferred interest 274 481 1,288 2,111 ----------------------------------------------------------------------------------------------------------------------------------- Diluted FFO $ 44,638 $ 43,795 $ 184,146 206,288 =================================================================================================================================== Diluted weighted average shares and units outstanding: Common shares 58,299 60,278 59,791 58,405 Limited operating partnership units 7,276 7,505 7,389 7,652 Common stock equivalents 168 445 299 433 Series A preferred stock 7,791 8,060 7,992 8,060 Series B preferred stock 1,919 -- 1,919 1,919 Minority partners' preferred interest -- -- -- 1,419 Limited partners' preferred interest 661 1,009 743 1,139 ----------------------------------------------------------------------------------------------------------------------------------- Total diluted weighted average shares and units outstanding 76,114 77,297 78,133 79,027 =================================================================================================================================== Diluted FFO per weighted average share or unit $ 0.59 $ 0.57 $ 2.36 $ 2.61 Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.46 $ 1.81 $ 1.77 Diluted FFO payout ratio (Class A & B combined) 77.3% 80.2% 77.0% 67.9% Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66 Diluted FFO payout ratio - Class A 72.4% 74.9% 72.1% 63.6% Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53 Diluted FFO payout ratio - Class B 110.3% 114.6% 110.0% 97.0% ----------------------------------------------------------------------------------------------------------------------------------- CASH AVAILABLE FOR DISTRIBUTION AND CAD PAYOUT RATIO DATA (In thousands, except per share / unit data) -----------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------- CAD - TOTAL COMMITTED TI & LEASING COSTS INCURRED DURING PERIOD ---------------------------------------------------------------------------------------------------------------------------------- Basic FFO $ 38,991 $ 38,933 $ 161,023 $ 179,687 Less: Straight line rents 6,529 9,550 26,247 41,293 Committed non-incremental capitalized tenant improvements and leasing costs (Note A) 6,230 4,432 33,407 14,281 Actual non-incremental capitalized improvements 2,653 2,437 8,832 6,697 ---------------------------------------------------------------------------------------------------------------------------------- Basic Cash Available for Distribution 23,579 22,514 92,537 117,416 Add dividends and distributions on dilutive shares and units: Series A preferred stock -- -- -- -- Series B preferred stock -- -- -- -- Limited partners' preferred interest -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Diluted CAD $ 23,579 $ 22,514 $ 92,537 $ 117,416 ================================================================================================================================== Diluted weighted average shares and units outstanding: Common shares 58,299 60,278 59,791 58,405 Limited operating partnership units 7,276 7,505 7,389 7,652 Common stock equivalents 168 445 299 433 Series A preferred stock -- -- -- -- Series B preferred stock -- -- -- -- Limited partners' preferred interest -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Diluted weighted average shares and units outstanding 65,743 68,228 67,479 66,490 ================================================================================================================================== Diluted CAD per weighted average share or unit $ 0.36 $ 0.33 $ 1.37 $ 1.77 Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.83 $ 1.79 Diluted CAD payout ratio (Class A & B combined) 127.7% 138.9% 133.6% 101.6% Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66 Diluted CAD payout ratio - Class A 118.4% 128.7% 123.9% 94.0% Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53 Diluted CAD payout ratio - Class B 180.4% 196.7% 189.0% 143.3% ----------------------------------------------------------------------------------------------------------------------------------
Note: (A) For the year ended December 31, 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: 119.2%), (Class A: 110.5%) and (Class B: 168.6%) for the year ended December 31, 2002 had these costs not been included. Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 10 ------------------------------------------------------------------------------- CASH AVAILABLE FOR DISTRIBUTION AND CAD PAYOUT RATIO DATA - CONTINUED (In thousands, except per share / unit data)
Three Months Ended The Years Ended December 31, December 31, ---------------------------------------------------------------------------------------------------------------------------------- 2002 2001 2002 2001 ----------------------------------------------------------------------------------------------------------------------------------- CAD - ACTUAL PAID OR ACCRUED TI & LEASING COSTS DURING PERIOD ----------------------------------------------------------------------------------------------------------------------------------- Basic FFO $ 38,991 $ 38,933 $ 161,023 179,687 Less: Straight line rents 6,529 9,550 26,247 41,293 Actual non-incremental capitalized tenant improvements and leasing costs 10,224 4,711 30,261 21,775 Actual non-incremental capitalized improvements 2,653 2,437 8,832 6,697 ----------------------------------------------------------------------------------------------------------------------------------- Basic Cash Available for Distribution 19,585 22,235 95,683 109,922 Add dividends and distributions on dilutive shares and units: Series A preferred stock -- -- -- -- Series B preferred stock -- -- -- -- Limited partners' preferred interest -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Diluted CAD $ 19,585 $ 22,235 $ 95,683 109,922 =================================================================================================================================== Diluted weighted average shares and units outstanding: Common shares 58,299 60,278 59,791 58,405 Limited operating partnership units 7,276 7,505 7,389 7,652 Common stock equivalents 168 445 299 433 Series A preferred stock -- -- -- -- Series B preferred stock -- -- -- -- Limited partners' preferred interest -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Diluted weighted average shares and units outstanding 65,743 68,228 67,479 66,490 =================================================================================================================================== Diluted CAD per weighted average share or unit $ 0.30 $ 0.33 $ 1.42 $ 1.65 Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.83 $ 1.79 Diluted CAD payout ratio (Class A & B combined) 153.8% 140.7% 129.2% 108.6% Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66 Diluted CAD payout ratio - Class A 142.5% 130.3% 119.8% 100.4% Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53 Diluted CAD payout ratio - Class B 217.2% 199.2% 182.7% 153.1% -----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------- CAD - COMMITTED TI & LEASING COSTS ON SIGNED LEASES, EXCLUDING EARLY RENEWALS -------------------------------------------------------------------------------
Basic FFO $ 38,991 $ 161,023 Less: Straight line rents 6,529 26,247 Committed non-incremental capitalized tenant improvements and leasing costs scheduled to expire in future periods (Note B) 5,154 29,372 Actual non-incremental capitalized improvements 2,653 8,832 ----------------------------------------------------------------------------------------------------------------------------------- Basic Cash Available for Distribution 24,655 96,572 Add dividends and distributions on dilutive shares and units: Series A preferred stock -- -- Series B preferred stock -- -- Limited partners' preferred interest -- -- ----------------------------------------------------------------------------------------------------------------------------------- Diluted CAD $ 24,655 $ 96,572 =================================================================================================================================== Diluted weighted average shares and units outstanding: Common shares 58,299 59,791 Limited operating partnership units 7,276 7,389 Common stock equivalents 168 299 Series A preferred stock -- -- Series B preferred stock -- -- Limited partners' preferred interest -- -- ----------------------------------------------------------------------------------------------------------------------------------- Diluted weighted average shares and units outstanding 65,743 67,479 =================================================================================================================================== Diluted CAD per weighted average share or unit $ 0.38 $ 1.43 Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 1.83 Diluted CAD payout ratio (Class A & B combined) 122.2% 143.1% Diluted weighted average Class A dividends per share $ 0.42 $ 1.70 Diluted CAD payout ratio - Class A 113.2% 118.7% Diluted weighted average Class B dividends per share $ 0.65 $ 2.59 Diluted CAD payout ratio - Class B 172.5% 181.1% -----------------------------------------------------------------------------------------------------------------------------------
Note: (B) For the year ended December 31, 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: 159.7%), (Class A: 106.3%) and (Class B: 162.2%) for the year ended December 31, 2002 had these costs not been included. ------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 11 ------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (In thousands)
December 31, ------------------------------------------- 2002 2001 ----------------------------------------------------------------------------------------------------------------------------------- ASSETS ------------------------------------------------------------------------------------------------------------------------------------ Commercial real estate properties, at cost: Land $ 418,040 $ 408,837 Building and improvements 2,415,252 2,328,374 Developments in progress: Land 92,924 69,365 Development costs 28,311 74,303 Furniture, fixtures, and equipment 13,595 7,725 ----------------------------------------------------------------------------------------------------------------------------------- 2,968,122 2,888,604 Less: accumulated depreciation (454,018) (361,960) ----------------------------------------------------------------------------------------------------------------------------------- Investment in real estate, net of accumulated depreciation 2,514,104 2,526,644 Investments in real estate joint ventures 6,116 5,744 Investments in mortgage notes and notes receivable 54,547 56,234 Investments in service companies and affiliate loans and joint ventures 73,332 79,184 Cash and cash equivalents 30,827 121,975 Tenant receivables 14,050 9,633 Deferred rents receivable 107,366 81,089 Prepaid expenses and other assets 37,235 45,495 Contract and land deposits and pre-acquisition costs 240 3,782 Deferred leasing and loan costs (net of accumulated amortization) 70,103 64,438 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 2,907,920 $ 2,994,218 =================================================================================================================================== LIABILITIES AND STOCKHOLDER'S EQUITY ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES: Mortgage notes payable $ 740,012 $ 751,077 Unsecured credit facility 267,000 271,600 Senior unsecured notes 499,305 449,463 Accrued expenses and other liabilities 93,783 87,683 Dividends and distributions payable 31,575 32,988 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 1,631,675 1,592,811 ----------------------------------------------------------------------------------------------------------------------------------- MINORITY INTERESTS: Minority partners' interests in consolidated partnerships 242,934 242,698 Preferred unit interest in the operating partnership 19,662 30,965 Limited partners' minority interest in the operating partnership 71,420 81,887 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL MINORITY INTERESTS 334,016 355,550 ----------------------------------------------------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY: Preferred Stock, $.01 par value, 25,000,000 shares authorized Series A - 8,834,500 and 9,192,000 shares issued and outstanding, respectively 88 92 Series B - 2,000,000 shares issued and outstanding 20 20 Common Stock, $.01 par value, 100,000,000 shares authorized Class A - 48,246,083 and 49,982,377 shares issued and outstanding, respectively 482 500 Class B - 9,915,313 and 10,283,513 shares issued and outstanding, respectively 99 103 Treasury Stock, Class A common, 2,698,400 and 0 shares, respectively and Class B common, 368,200 and 0 shares, respectively (63,954) -- Additional paid in capital 1,005,494 1,045,142 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 942,229 1,045,857 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,907,920 $ 2,994,218 ===================================================================================================================================
Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 12 -------------------------------------------------------------------------------- DEBT SUMMARY AT DECEMBER 31, 2002 (Dollars in thousands)
DEBT BREAKDOWN ----------------------------------------------------------------------------------------------------------------------------------- % of Weighted Average Weighted Average Balance Total Interest Rate Maturity (Years) ----------------------------------------------------------------------------------------------------------------------------------- Fixed Rate Secured Debt $ 740,012 49.1% 7.3% 9.0 Fixed Rate Senior Unsecured Notes (a) 499,305 33.2% 7.4% 4.6 Variable Rate Unsecured Credit Facility 267,000 17.7% 4.3% 3.0 ----------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average $1,506,317 100.0% 6.8% 6.5 ===================================================================================================================================
DEBT AMORTIZATION AND MATURITY ----------------------------------------------------------------------------------------------------------------------------------- Secured Debt Senior Unsecured Unsecured Credit Year Amortization Due at Maturity Notes Facility Total ----------------------------------------------------------------------------------------------------------------------------------- 2003 12,300 0 12,300 2004 13,169 2,616 100,000 115,785 2005 14,167 18,553 267,000 299,720 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 2012 3,527 0 3,527 Thereafter 80,125 0 80,125 ----------------------------------------------------------------------------------------------------------------------------------- Total Debt $182,115 $557,897 $500,000 (a) $267,000 $1,507,012 ===================================================================================================================================
PROPERTY MORTGAGE DETAIL ----------------------------------------------------------------------------------------------------------------------------------- Interest Maturity Amortization Property $ Outstanding Rate Date Term (Years) ----------------------------------------------------------------------------------------------------------------------------------- 80 Orville Drive, Islip, NY 2,616 10.10% February -04 Interest only 395 North Service Road, Melville, NY 19,709 6.45% October -05 $34k per month 200 Summit Lake Drive, Valhalla, NY 19,373 9.25% January -06 25 1350 Avenue of the Americas, NY, NY 74,631 6.52% June-06 30 Landmark Square, Stamford, CT 45,090 8.02% October -06 25 100 Summit Lake Drive, Valhalla, NY 19,101 8.50% April-07 15 333 Earle Ovington Blvd., Mitchel Field, NY (b) 53,864 7.72% August-07 25 810 Seventh Avenue, NY,NY 82,854 7.73% August-09 25 100 Wall Street, NY, NY 35,904 7.73% August-09 25 6900 Jericho Turnpike, Syosset, NY 7,348 8.07% July-10 25 6800 Jericho Turnpike, Syosset, NY 13,922 8.07% July-10 25 580 White Plains Road, Tarrytown, NY 12,685 7.86% September-10 25 919 Third Avenue, NY, NY (c) 246,651 6.867% August-11 30 110 Bi -County Blvd., Farmingdale, NY 3,635 9.125% November-12 20 One Orlando Center, Orlando, FL (d) 38,366 6.82% November -27 28 120 West 45th Street, NY,NY (d) 64,263 6.82% November -27 28 ----------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average $740,012 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 $694,678 (b) The Company has a 60% general partnership interest in this property and its proportionate share of the aggregate principal amount is approximately $32.3 million (c) The Company has a 51% membership interest in this property and its proportionate share of the aggregate principal amount is approximately $125.8 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 $7.5 million. -------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 13 ------------------------------------------------------------------------------- PREFERRED SECURITIES AT DECEMBER 31, 2002 (in thousands) The following table sets forth certain information regarding the Company's preferred securites as of December 31, 2002.
----------------------------------------------------------------------------------------------------------------------------------- Liquidation Current Conversion price Security Preference Value Yield Per Share Issuance date ----------------------------------------------------------------------------------------------------------------------------------- 7 5/8 % Series A Convertible Cumulative Preferred Stock $220,863 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 $290,525 -----------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 14 ------------------------------------------------------------------------------- SAME PROPERTY PERFORMANCE - CONSOLIDATED For the 3 month period December 31, 2002 vs. December 31, 2001 (In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN ------------------ ----------------------- CASH REVENUE (a) CASH REVENUE (a) 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 35,972 $ 34,586 $ 1,386 4.0 % Office $ 103,673 $ 94,670 $ 9,003 9.5 % Westchester $ 19,463 $ 20,060 $ (597) (3.0)% Industrial (b) $ 9,687 $ 9,378 $ 309 3.3 % Connecticut $ 8,547 $ 8,545 $ 2 0.0 % R&D $ 3,426 $ 3,613 $ (186) (5.2)% New Jersey $ 12,693 $ 12,979 $ (286) (2.2)% --------------------------------------------------------------- New York City $ 40,111 $ 31,489 $ 8,622 27.4 % Total $ 116,786 $ 107,661 $ 9,126 8.5 % --------------------------------------------------------------- --------------------------------------------------------------- Total $ 116,786 $ 107,661 $ 9,126 8.5 % --------------------------------------------------------------- GAAP REVENUE (a) GAAP REVENUE (a) 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 37,113 $ 35,883 $ 1,230 3.4 % Office $ 108,852 $ 103,419 $ 5,433 5.3 % Westchester $ 21,218 $ 20,502 $ 716 3.5 % Industrial (b) $ 10,114 $ 9,736 $ 378 3.9 % Connecticut $ 8,718 $ 8,666 $ 53 0.6 % R&D $ 3,555 $ 3,594 $ (39) (1.1)% New Jersey $ 12,982 $ 13,052 $ (70) (0.5)% --------------------------------------------------------------- New York City $ 42,488 $ 38,645 $ 3,843 9.9 % Total $ 122,520 $ 116,748 $ 5,772 4.9 % --------------------------------------------------------------- --------------------------------------------------------------- Total $ 122,520 $ 116,748 $ 5,772 4.9 % --------------------------------------------------------------- OPERATING EXPENSES OPERATING EXPENSES 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 6,191 $ 6,183 $ 8 0.1 % Office $ 22,952 $ 21,863 $ 1,089 5.0 % Westchester $ 5,206 $ 4,837 $ 370 7.6 % Industrial (b) $ 780 $ 561 $ 220 39.2 % Connecticut $ 2,306 $ 2,361 $ (55) (2.3)% R&D $ 439 $ 774 $ (335) (14.4)% New Jersey $ 2,209 $ 2,200 $ 9 0.4 % --------------------------------------------------------------- New York City $ 8,259 $ 7,616 $ 642 8.4 % Total $ 24,172 $ 23,198 $ 974 9.0 % --------------------------------------------------------------- --------------------------------------------------------------- Total $ 24,172 $ 23,198 $ 974 4.2 % --------------------------------------------------------------- REAL ESTATE TAXES REAL ESTATE TAXES 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 6,404 $ 6,161 $ 243 4.0 % Office $ 17,285 $ 14,860 $ 2,425 10.0% Westchester $ 2,801 $ 2,397 $ 405 16.9 % Industrial (b) $ 1,746 $ 1,640 $ 106 6.5% Connecticut $ 776 $ 741 $ 35 4.7 % R&D $ 507 $ 504 $ 3 0.6% New Jersey $ 1,673 $ 1,681 $ (8) (0.5)% ----------------------------------------------------------------- New York City $ 7,883 $ 6,025 $ 1,859 30.9 % Total $ 19,538 $ 17,004 $ 2,534 14.9% --------------------------------------------------------------- ----------------------------------------------------------------- Total $ 19,538 $ 17,004 $ 2,534 14.9 % --------------------------------------------------------------- CASH NOI CASH NOI 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 23,376 $ 22,242 $ 1,134 5.1 % Office $ 63,436 $ 57,946 $ 5,489 9.5 % Westchester $ 11,455 $ 12,827 $ (1,371) (10.7)% Industrial (b) $ 7,160 $ 7,178 $ (17) (0.2)% Connecticut $ 5,465 $ 5,443 $ 22 0.4 % R&D $ 2,480 $ 2,335 $ 145 6.2 % New Jersey $ 8,811 $ 9,099 $ (288) (3.2)% --------------------------------------------------------------- New York City $ 23,969 $ 17,848 $ 6,121 34.3 % Total $ 73,076 $ 67,459 $ 5,617 8.3 % --------------------------------------------------------------- --------------------------------------------------------------- Total $ 73,076 $ 67,459 $ 5,617 8.3 % --------------------------------------------------------------- GAAP NOI GAAP NOI 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 24,518 $ 23,539 $ 979 4.2 % Office $ 68,615 $ 66,696 $ 1,919 2.9% Westchester $ 13,210 $ 13,269 $ (58) (0.4)% Industrial (b) $ 7,587 $ 7,535 $ 52 0.7% Connecticut $ 5,636 $ 5,563 $ 73 1.3 % R&D $ 2,609 $ 2,316 $ 293 12.6% New Jersey $ 9,100 $ 9,172 $ (72) (0.8)% --------------------------------------------------------------- New York City $ 26,346 $ 25,004 $ 1,342 5.4 % Total $ 78,810 $ 76,547 $ 2,264 3.0% --------------------------------------------------------------- --------------------------------------------------------------- Total $ 78,810 $ 76,547 $ 2,264 3.0 % ---------------------------------------------------------------
(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 7.7% and the GAAP NOI same store performance was 2.6%. ---------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 15 ------------------------------------------------------------------------------- SAME PROPERTY PERFORMANCE - NET OF MINORITY INTERESTS IN JOINT VENTURES For the 3 month period December 31, 2002 vs. December 31, 2001 (In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN ------------------ ----------------------- CASH REVENUE (a) CASH REVENUE (a) 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- ------------------------------------------------------------ Long Island $ 31,504 $ 30,196 $ 1,307 4.3 % Office $ 87,018 $ 81,857 $ 5,161 6.3 % Westchester $ 18,033 $ 18,893 $ (860) (4.6)% Industrial (b) $ 9,687 $ 9,378 $ 309 3.3 % Connecticut $ 7,324 $ 7,359 $ (36) (0.5)% R&D $ 3,426 $ 3,613 $ (186) (5.2)% New Jersey $ 11,447 $ 11,806 $ (360) (3.0)% ------------------------------------------------------------ New York City $ 31,825 $ 26,593 $ 5,232 19.7 % Total $ 100,131 $ 94,848 $ 5,284 5.6 % --------------------------------------------------------------- ------------------------------------------------------------ Total $ 100,131 $ 94,848 $ 5,284 5.6 % --------------------------------------------------------------- GAAP REVENUE (a) GAAP REVENUE (a) 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 32,553 $ 31,376 $ 1,177 3.8 % Office $ 91,145 $ 87,234 $ 3,911 4.5 % Westchester $ 19,761 $ 19,310 $ 451 2.3 % Industrial (b) $ 10,114 $ 9,736 $ 378 3.9 % Connecticut $ 7,488 $ 7,451 $ 37 0.5 % R&D $ 3,555 $ 3,594 $ (39) (1.1)% New Jersey $ 11,700 $ 11,858 $ (158) (1.3)% --------------------------------------------------------------- New York City $ 33,312 $ 30,569 $ 2,743 9.0 % Total $ 104,813 $ 100,563 $ 4,250 4.2 % --------------------------------------------------------------- --------------------------------------------------------------- Total $ 104,813 $ 100,563 $ 4,250 4.2 % --------------------------------------------------------------- OPERATING EXPENSES OPERATING EXPENSES 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 5,255 $ 5,184 $ 72 1.4 % Office $ 19,550 $ 18,646 $ 904 4.8 % Westchester $ 4,944 $ 4,594 $ 350 7.6 % Industrial (b) $ 780 $ 561 $ 220 39.2 % Connecticut $ 1,995 $ 2,073 $ (78) (3.8)% R&D $ 439 $ 774 $ (335) (43.2)% New Jersey $ 1,935 $ 2,012 $ (78) (3.9)% --------------------------------------------------------------- New York City $ 6,640 $ 6,117 $ 523 8.5 % Total $ 20,770 $ 19,980 $ 789 3.9 % --------------------------------------------------------------- --------------------------------------------------------------- Total $ 20,770 $ 19,980 $ 789 3.9 % --------------------------------------------------------------- REAL ESTATE TAXES REAL ESTATE TAXES 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 5,587 $ 5,338 $ 249 4.7 % Office $ 14,405 $ 12,347 $ 2,058 16.7% Westchester $ 2,622 $ 2,237 $ 386 17.2 % Industrial (b) $ 1,746 $ 1,640 $ 106 6.5% Connecticut $ 643 $ 616 $ 27 4.4 % R&D $ 507 $ 504 $ 3 0.6% New Jersey $ 1,538 $ 1,543 $ (5) (0.3)% --------------------------------------------------------------- New York City $ 6,268 $ 4,758 $ 1,511 31.7 % Total $ 16,658 $ 14,491 $ 2,167 15.0% --------------------------------------------------------------- --------------------------------------------------------------- Total $ 16,658 $ 14,491 $ 2,167 15.0 % --------------------------------------------------------------- CASH NOI CASH NOI 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 20,662 $ 19,675 $ 987 5.0 % Office $ 53,063 $ 50,864 $ 2,199 4.3 % Westchester $ 10,466 $ 12,062 $ (1,596) (13.2)% Industrial (b) $ 7,160 $ 7,178 $ (17) (0.2)% Connecticut $ 4,685 $ 4,670 $ 15 0.3 % R&D $ 2,480 $ 2,335 $ 145 6.2 % New Jersey $ 7,974 $ 8,251 $ (277) (3.4)% --------------------------------------------------------------- New York City $ 18,917 $ 15,718 $ 3,199 20.3 % Total $ 62,703 $ 60,376 $ 2,327 3.9 % --------------------------------------------------------------- --------------------------------------------------------------- Total $ 62,703 $ 60,376 $ 2,327 3.9 % --------------------------------------------------------------- GAAP NOI GAAP NOI 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change --------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 21,711 $ 20,854 $ 857 4.1 % Office $ 57,190 $ 56,241 $ 949 1.7% Westchester $ 12,194 $ 12,479 $ (285) (2.3)% Industrial (b) $ 7,587 $ 7,535 $ 52 0.7% Connecticut $ 4,849 $ 4,761 $ 88 1.8 % R&D $ 2,609 $ 2,316 $ 293 12.6% New Jersey $ 8,227 $ 8,303 $ (76) (0.9)% --------------------------------------------------------------- New York City $ 20,404 $ 19,694 $ 710 3.6 % Total $ 67,385 $ 66,092 $ 1,294 2.0% --------------------------------------------------------------- --------------------------------------------------------------- Total $ 67,385 $ 66,092 $ 1,294 2.0 % ---------------------------------------------------------------
(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 3.3% and the GAAP NOI same store performance was 1.5%. ----------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 16 ----------------------------------------------------------------------------- SAME PROPERTY PERFORMANCE - CONSOLIDATED For the 12 month period December 31, 2002 vs. December 31, 2001 (In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN ------------------ ----------------------- CASH REVENUE (a) CASH REVENUE (a) 2002 2001 $ Change % Change 2002 2001 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 141,031 $ 135,843 $ 5,188 3.8 % Office $ 404,231 $ 372,681 $ 31,550 8.5 % Westchester $ 78,103 $ 78,240 (136) (0.2)% Industrial (b) $ 37,913 $ 36,401 $ 1,511 4.2 % Connecticut $ 33,530 $ 34,446 (916) (2.7)% R&D $ 13,929 $ 14,305 $ (376) (2.6)% New Jersey $ 51,322 $ 51,946 (623) (1.2)% ---------------------------------------------------------------- New York City $ 152,087 $ 122,913 29,174 23.7 % Total $ 456,073 $ 423,388 $ 32,685 7.7 % -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 456,073 $ 423,388 $ 32,685 7.7 % -------------------------------------------------------------- GAAP REVENUE (a) GAAP REVENUE (a) 2002 2001 $ Change % Change 2002 2001 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 146,476 $ 141,951 $ 4,525 3.2 % Office $ 424,200 $ 411,932 $ 12,268 3.0% Westchester $ 80,595 $ 81,177 (583) (0.7)% Industrial (b) $ 39,278 $ 38,115 $ 1,163 3.1% Connecticut $ 34,611 $ 34,672 (61) (0.2)% R&D $ 15,116 $ 14,426 $ 691 4.8% New Jersey $ 51,760 $ 53,248 (1,488) (2.8)% ---------------------------------------------------------------- New York City $ 165,153 $ 153,424 11,729 7.6 % Total $ 478,594 $ 464,472 $ 14,122 3.0% -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 478,594 $ 464,472 $ 14,122 3.0 % -------------------------------------------------------------- OPERATING EXPENSES OPERATING EXPENSES 2002 2001 $ Change % Change 2002 2001 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 24,366 $ 23,080 $ 1,286 5.6% Office $ 90,520 $ 84,623 $ 5,896 7.0 % Westchester $ 19,922 $ 18,955 967 5.1% Industrial (b) $ 2,511 $ 2,194 $ 317 14.4 % Connecticut $ 8,493 $ 8,287 206 2.5% R&D $ 2,070 $ 2,274 $ (204) (9.0)% New Jersey $ 8,082 $ 8,014 68 0.9% ---------------------------------------------------------------- New York City $ 34,238 $ 30,756 3,482 11.3% Total $ 95,101 $ 89,092 $ 6,009 6.7 % -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 95,101 $ 89,092 $ 6,009 6.7% -------------------------------------------------------------- REAL ESTATE TAXES REAL ESTATE TAXES 2002 2001 $ Change % Change 2002 2001 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 25,711 $ 24,229 $ 1,481 6.1% Office $ 63,701 $ 58,112 $ 5,589 9.6% Westchester $ 10,997 $ 9,443 1,554 16.5% Industrial (b) $ 6,995 $ 6,597 $ 398 6.0% Connecticut $ 3,036 $ 2,917 119 4.1% R&D $ 2,044 $ 1,993 $ 51 2.5% New Jersey $ 6,384 $ 6,135 249 4.1% ---------------------------------------------------------------- New York City $ 26,613 $ 23,978 2,634 11.0% Total $ 72,739 $ 66,702 $ 6,037 9.1% -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 72,739 $ 66,702 $ 6,037 9.1% -------------------------------------------------------------- CASH NOI CASH NOI 2002 2001 $ Change % Change 2002 2001 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 90,954 $ 88,534 $ 2,420 2.7 % Office $ 250,011 $ 229,946 $ 20,065 8.7 % Westchester $ 47,185 $ 49,842 (2,657) (5.3)% Industrial (b) $ 28,407 $ 27,610 $ 797 2.9 % Connecticut $ 22,001 $ 23,242 (1,241) (5.3)% R&D $ 9,815 $ 10,038 $ (223) (2.2)% New Jersey $ 36,856 $ 37,797 (941) (2.5)% ---------------------------------------------------------------- New York City $ 91,237 $ 68,179 23,057 33.8 % Total $ 288,233 $ 267,594 $ 20,638 7.7 % -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 288,233 $ 267,594 $ 20,638 7.7 % -------------------------------------------------------------- GAAP NOI GAAP NOI 2002 2001 $ Change % Change 2002 2001 $ Change % Change -------------------------------------------------------------- --------------------------------------------------------------- Long Island $ 96,399 $ 94,641 $ 1,757 1.9 % Office $ 269,980 $ 269,197 $ 783 0.3% Westchester $ 49,676 $ 52,779 (3,103) (5.9)% Industrial (b) $ 29,772 $ 29,324 $ 448 1.5% Connecticut $ 23,082 $ 23,468 (386) (1.6)% R&D $ 11,002 $ 10,158 $ 844 8.3% New Jersey $ 37,294 $ 39,099 (1,805) (4.6)% ---------------------------------------------------------------- New York City $ 104,302 $ 98,690 5,612 5.7 % Total $ 310,753 $ 308,679 $ 2,075 0.7% -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 310,753 $ 308,679 $ 2,075 0.7 % --------------------------------------------------------------
(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 7.2% and the GAAP NOI same store performance was 0.4%. ----------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 17 ----------------------------------------------------------------------------- SAME PROPERTY PERFORMANCE - NET OF MINORITY INTEREST IN JOINT VENTURES For the 12 month period December 31, 2002 vs. December 31, 2001 (In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN ------------------ ----------------------- CASH REVENUE (a) CASH REVENUE (a) 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 123,369 $ 118,567 $ 4,802 4.1 % Office $ 341,194 $ 323,199 17,994 5.6% Westchester $ 73,435 $ 73,902 $ (466) (0.6)% Industrial (b) $ 37,913 $ 36,401 1,511 4.2% Connecticut $ 28,730 $ 29,762 $ (1,032) (3.5)% R&D $ 13,929 $ 14,305 (376) 2.6% New Jersey $ 46,237 $ 47,178 $ (941) (2.0)% ---------------------------------------------------------------- New York City $ 121,264 $ 104,497 $ 16,767 16.0 % Total $ 393,035 $ 373,906 19,129 5.1% -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 393,035 $ 373,906 $ 19,129 5.1 % -------------------------------------------------------------- GAAP REVENUE (a) GAAP REVENUE (a) 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 128,359 $ 123,920 $ 4,439 3.6 % Office $ 355,180 $ 348,204 6,977 2.0% Westchester $ 75,863 $ 76,762 $ (899) (1.2)% Industrial (b) $ 39,278 $ 38,115 1,163 3.1% Connecticut $ 29,766 $ 29,883 $ (117) (0.4)% R&D $ 15,116 $ 14,426 691 4.8% New Jersey $ 46,555 $ 48,311 $ (1,756) (3.6)% ---------------------------------------------------------------- New York City $ 129,032 $ 121,869 $ 7,163 5.9 % Total $ 409,574 $ 400,744 8,830 2.2% -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 409,574 $ 400,744 $ 8,830 2.2 % -------------------------------------------------------------- OPERATING EXPENSES OPERATING EXPENSES 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 20,466 $ 19,280 $ 1,186 6.2 % Office $ 76,627 $ 72,351 4,276 5.9 % Westchester $ 18,936 $ 17,975 $ 961 5.3 % Industrial (b) $ 2,511 $ 2,194 317 14.4 % Connecticut $ 7,446 $ 7,295 $ 151 2.1 % R&D $ 2,070 $ 2,274 (204) (9.0)% New Jersey $ 7,173 $ 7,224 $ (51) (0.7)% ---------------------------------------------------------------- New York City $ 27,188 $ 25,046 $ 2,142 8.6 % Total $ 81,209 $ 76,819 4,389 5.7 % -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 81,209 $ 76,819 $ 4,389 5.7 % -------------------------------------------------------------- REAL ESTATE TAXES REAL ESTATE TAXES 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 22,419 $ 21,125 $ 1,294 6.1% Office $ 53,141 $ 48,303 4,838 10.0% Westchester $ 10,294 $ 8,802 $ 1,492 17.0% Industrial (b) $ 6,995 $ 6,597 398 6.0% Connecticut $ 2,521 $ 2,426 $ 95 3.9% R&D $ 2,044 $ 1,993 51 2.5% New Jersey $ 5,863 $ 5,603 $ 260 4.6% ---------------------------------------------------------------- New York City $ 21,083 $ 18,939 $ 2,145 11.3% Total $ 62,180 $ 56,894 5,286 9.3% -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 62,180 $ 56,894 $ 5,286 9.3% -------------------------------------------------------------- CASH NOI CASH NOI 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 80,484 $ 78,162 $ 2,322 3.0 % Office $ 211,425 $ 202,545 $ 8,880 4.4 % Westchester $ 44,206 $ 47,125 $ (2,920) (6.2)% Industrial (b) $ 28,407 $ 27,610 $ 797 2.9 % Connecticut $ 18,763 $ 20,041 $ (1,278) (6.4)% R&D $ 9,815 $ 10,038 $ (223) (2.2)% New Jersey $ 33,201 $ 34,352 $ (1,151) (3.3)% ---------------------------------------------------------------- New York City $ 72,993 $ 60,512 $ 12,481 20.6 % Total $ 249,647 $ 240,193 $ 9,454 3.9 % -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 249,647 $ 240,193 $ 9,454 3.9 % -------------------------------------------------------------- GAAP NOI GAAP NOI 4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change -------------------------------------------------------------- ---------------------------------------------------------------- Long Island $ 85,474 $ 83,515 $ 1,959 2.3 % Office $ 225,412 $ 227,549 $ (2,137) (0.9)% Westchester $ 46,633 $ 49,985 $ (3,353) (6.7)% Industrial (b) $ 29,772 $ 29,324 $ 448 1.5 % Connecticut $ 19,799 $ 20,162 $ (363) (1.8)% R&D $ 11,002 $ 10,158 $ 844 8.3 % New Jersey $ 33,519 $ 35,484 $ (1,966) (5.5)% ---------------------------------------------------------------- New York City $ 80,761 $ 77,884 $ 2,877 3.7 % Total $ 266,186 $ 267,031 $ (845) (0.3)% -------------------------------------------------------------- ---------------------------------------------------------------- Total $ 266,186 $ 267,031 $ (845) (0.3)% --------------------------------------------------------------
(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 3.8% and the GAAP NOI same store performance was -0.4%. ----------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 18 ------------------------------------------------------------------------------- PORTFOLIO SNAPSHOT Based on 4th 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 19% 22% 22% 21% 18% 21% 21% 21% Industrial (c) 29% 9% 11% 11% 31% 11% 12% 12% ----------------------------------------------------------------------------------------------------------------------------------- Subtotal - Long Island 48% 31% 33% 32% 49% 32% 33% 33% Westchester Office 15% 15% 14% 14% 16% 17% 15% 16% Industrial 1% 0% 0% 1% 1% 0% 1% 0% ----------------------------------------------------------------------------------------------------------------------------------- Subtotal - Westchester 16% 15% 14% 15% 17% 17% 16% 16% Connecticut Office 5% 7% 7% 6% 5% 7% 6% 6% Industrial 2% 1% 1% 1% 2% 0% 1% 1% ----------------------------------------------------------------------------------------------------------------------------------- Subtotal - Connecticut 7% 8% 8% 7% 7% 7% 7% 7% New Jersey Office 10% 10% 11% 12% 10% 11% 12% 13% Industrial 2% 1% 1% 1% 2% 1% 1% 1% ----------------------------------------------------------------------------------------------------------------------------------- Subtotal - New Jersey 12% 11% 12% 13% 12% 12% 13% 14% New York City Office 17% 35% 33% 33% 15% 32% 31% 30% ----------------------------------------------------------------------------------------------------------------------------------- Subtotal - New York City 17% 35% 33% 33% 15% 32% 31% 30% -----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------- PROPERTY TYPE ----------------------------------------------------------------------------------------------------------------------------------- Office 66% 89% 87% 86% 64% 88% 85% 86% Industrial 34% 11% 13% 14% 36% 12% 15% 14% -----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------- SUBURBAN VS CBD ( OFFICE SPACE ONLY ) ----------------------------------------------------------------------------------------------------------------------------------- Suburban 62% 50% 50% 51% 64% 52% 52% 53% CBD 38% 50% 50% 49% 36% 48% 48% 47% -----------------------------------------------------------------------------------------------------------------------------------
(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 December 31, 2002 19 ---------------------------------------------------------------------------- OCCUPANCY ANALYSIS As of December 31, 2002 ----------------------------------------------------------------------------
NUMBER OF RENTABLE (1) OCCUPANCY OCCUPANCY BUILDINGS SQUARE FEET AS OF 9/30/02 AS OF 12/31/02 ------------------------------------------------------------------------------------------- OFFICE LONG ISLAND 25 3,954,921 94.2% 94.4% Eastern Nassau 2 299,276 96.6% 97.9% Central Nassau 8 1,816,703 97.3% 97.0% Western Nassau 2 67,758 92.0% 98.6% Central Suffolk 1 185,475 88.8% 90.4% Western Suffolk 12 1,585,709 91.0% 91.1% NEW JERSEY 16 1,969,209 92.9% 95.8% Clifton/Passaic 1 193,574 100.0% 100.0% Parsippany 2 189,020 81.1% 85.8% Princeton / Rt. 1 Corridor 3 131,727 100.0% 100.0% Rt. 23/GSP Corridor 1 130,009 100.0% 100.0% Rt. 280 Corridor 5 536,687 84.6% 92.8% Rt. 4 Corridor 1 219,550 94.8% 94.9% Short Hills 3 568,642 98.0% 98.9% NEW YORK CITY 5 3,488,484 98.4% 97.8% 100 Wall Street 1 457,678 99.2% 100.0% 1350 Avenue of the Americas 1 543,415 99.3% 91.9% 919 Third Avenue 1 1,355,239 100.0% 100.0% 120 West 45th Street 1 441,175 96.6% 97.0% 810 Seventh Avenue 1 690,977 95.2% 97.0% WESTCHESTER 21 3,047,088 94.1% 94.3% Rye Brook 6 543,751 95.4% 94.9% Tarrytown 7 1,054,677 90.3% 93.6% Valhalla 5 856,462 100.0% 95.5% White Plains 2 505,084 89.9% 92.2% Standalone 1 87,114 100.0% 100.0% CONNECTICUT 8 1,089,331 94.8% 97.7% Stamford 8 1,089,331 94.8% 97.7% ------------------------------------------------------------------------------------------- TOTAL OFFICE 75 13,549,033 95.1% 95.7% ------------------------------------------------------------------------------------------- INDUSTRIAL LONG ISLAND 76 5,086,301 95.4% 98.5% Airport Industrial Plaza 17 1,212,113 98.3% 98.7% Hauppauge Industrial Park 40 2,221,192 91.7% 98.5% Islip 6 212,524 85.7% 85.7% Melville / Farmingdale 9 902,435 100.0% 100.0% Standalone 4 538,037 100.0% 100.0% NEW JERSEY 4 189,468 100.0% 100.0% Western Morris County 4 189,468 100.0% 100.0% WESTCHESTER 1 92,000 100.0% 100.0% Standalone 1 92,000 100.0% 100.0% ------------------------------------------------------------------------------------------- TOTAL INDUSTRIAL 81 5,367,769 95.6% 98.5% ------------------------------------------------------------------------------------------- RESEARCH & DEVELOPMENT LONG ISLAND 17 717,728 95.8% 96.0% Airport Industrial Plaza 4 77,298 100.0% 100.0% Hauppauge Industrial Park 9 320,494 90.6% 91.1% Melville / Farmingdale 3 284,936 100.0% 100.0% Standalone 1 35,000 100.0% 100.0% NEW JERSEY 1 130,793 69.3% 69.3% Rt. 287 Corridor 1 130,793 69.3% 69.3% WESTCHESTER 1 47,690 100.0% 100.0% Standalone 1 47,690 100.0% 100.0% CONNECTICUT 1 452,414 54.3% 54.3% Standalone 1 452,414 54.3% 54.3% ------------------------------------------------------------------------------------------- TOTAL R& D 20 1,348,625 79.5% 79.6% ------------------------------------------------------------------------------------------- RETAIL LONG ISLAND 2 18,537 81.8% 84.8% Standalone 2 18,537 81.8% 84.8% ------------------------------------------------------------------------------------------- TOTAL RETAIL 2 18,537 81.8% 84.8% ------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- TOTAL PORTFOLIO 178 20,283,964 94.2% 95.4% ----------------------------------------------------------------------------------------------------------------------------------- SQUARE FEET AS A % OF NOI AS A % OF ------------------------------------------ -------------------------------------- PROPERTY TYPE TOTAL PORTFOLIO PROPERTY TYPE TOTAL PORTFOLIO ------------------------------------------ -------------------------------------- OFFICE LONG ISLAND 29.2% 19.5% 24.9% 21.7% Eastern Nassau 2.2% 1.5% 1.8% 1.6% Central Nassau 13.4% 9.0% 12.1% 10.6% Western Nassau 0.5% 0.3% 0.4% 0.4% Central Suffolk 1.4% 0.9% 1.2% 1.0% Western Suffolk 11.7% 7.8% 9.4% 8.2% NEW JERSEY 14.5% 9.7% 13.1% 11.4% Clifton/Passaic 1.4% 1.0% 1.1% 0.9% Parsippany 1.4% 0.9% 1.4% 1.2% Princeton / Rt. 1 Corridor 1.0% 0.6% 1.0% 0.9% Rt. 23/GSP Corridor 1.0% 0.6% 0.8% 0.7% Rt. 280 Corridor 4.0% 2.6% 2.8% 2.4% Rt. 4 Corridor 1.6% 1.1% 1.5% 1.3% Short Hills 4.2% 2.8% 4.5% 3.9% NEW YORK CITY 25.7% 17.2% 38.4% 33.5% 100 Wall Street 3.4% 2.3% 4.0% 3.5% 1350 Avenue of the Americas 4.0% 2.7% 5.4% 4.7% 919 Third Avenue 10.0% 6.7% 15.3% 13.3% 120 West 45th Street 3.3% 2.2% 7.0% 6.1% 810 Seventh Avenue 5.1% 3.4% 6.8% 5.9% WESTCHESTER 22.5% 15.0% 15.7% 13.7% Rye Brook 4.0% 2.7% 2.4% 2.1% Tarrytown 7.8% 5.2% 4.6% 4.0% Valhalla 6.3% 4.2% 4.9% 4.3% White Plains 3.7% 2.5% 3.2% 2.8% Standalone 0.6% 0.4% 0.6% 0.5% CONNECTICUT 8.0% 5.4% 7.8% 6.8% Stamford 8.0% 5.4% 7.8% 6.8% ------------------------------------------------------------------------------------- TOTAL OFFICE 100.0% 66.8% 100.0% 87.2% ------------------------------------------------------------------------------------- INDUSTRIAL LONG ISLAND 94.8% 25.1% 91.6% 8.9% Airport Industrial Plaza 22.6% 6.0% 24.9% 2.4% Hauppauge Industrial Park 41.4% 11.0% 34.1% 3.3% Islip 4.0% 1.0% 2.3% 0.2% Melville / Farmingdale 16.8% 4.4% 20.2% 2.0% Standalone 10.0% 2.7% 10.1% 1.0% NEW JERSEY 3.5% 0.9% 5.7% 0.6% Western Morris County 3.5% 0.9% 5.7% 0.6% WESTCHESTER 1.7% 0.5% 2.7% 0.3% Standalone 1.7% 0.5% 2.7% 0.3% ---------------------------------------------------------------------------------- TOTAL INDUSTRIAL 100.0% 26.5% 100.0% 9.7% ---------------------------------------------------------------------------------- RESEARCH & DEVELOPMENT LONG ISLAND 53.2% 3.5% 67.6% 2.1% Airport Industrial Plaza 5.7% 0.4% 6.9% 0.2% Hauppauge Industrial Park 23.8% 1.6% 29.1% 0.9% Melville / Farmingdale 21.1% 1.4% 26.7% 0.8% Standalone 2.6% 0.2% 4.9% 0.2% NEW JERSEY 9.7% 0.6% 2.6% 0.3% Rt. 287 Corridor 9.7% 0.6% 2.6% 0.3% WESTCHESTER 3.5% 0.2% 1.8% 0.2% Standalone 3.5% 0.2% 1.8% 0.2% CONNECTICUT 8.4% 2.2% 5.9% 0.6% Standalone 33.5% 2.2% 5.9% 0.6% --------------------------------------------------------------------------------- TOTAL R& D 100.0% 6.6% 100.0% 3.1% --------------------------------------------------------------------------------- RETAIL LONG ISLAND 100.0% 0.1% 100.0% 0.1% Standalone 100.0% 0.1% 100.0% 0.1% --------------------------------------------------------------------------------- TOTAL RETAIL 100.0% 0.1% 100.0% 0.1% --------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- TOTAL PORTFOLIO 100.0% 100.0% 100.0% 100.0% -----------------------------------------------------------------------------------------------------------------------------------
(1) Rentable square feet excludes amenity and storage space (2) Statistics above exclude 800 North Magnolia Avenue, a 355,000 square foot office building (81.5% occupied) located in Orlando Florida. ------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 20 ------------------------------------------------------------------------------- LEASING STATISTICS For the 3 months ended December 31, 2002
------------------------------------------------------------------------------------------------------------------------------- EXECUTED LEASES (a) ------------------------------------------------------------------------------------------------------------------------------- # of Total Average Average Average Transactions Sq. Ft. Base Rent Effective Rent Term (Years) ----------------------------------------------------------------------------------------------------------------------------------- OFFICE PORTFOLIO Long Island 12 50,542 $ 26.48 $ 23.16 5.5 Westchester 14 63,945 $ 24.64 $ 22.84 4.7 Connecticut 7 78,951 $ 37.62 $ 36.80 2.4 New Jersey 11 121,722 $ 24.62 $ 21.02 6.5 New York City 5 53,545 $ 34.04 $ 30.25 6.0 ----------------------------------------------------------------------------------------------------------------------------------- Totals/Weighted Average 49 368,705 $ 29.03 $ 26.35 5.1 ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL PORTFOLIO Long Island 12 324,873 $ 6.59 $ 5.93 7.9 New Jersey 2 5,750 $ 11.30 $ 10.30 3.2 ----------------------------------------------------------------------------------------------------------------------------------- Totals/Weighted Average 14 330,623 $ 6.67 $ 6.01 7.8 ----------------------------------------------------------------------------------------------------------------------------------- RESEARCH & DEVELOPMENT PORTFOLIO Long Island Operational 0 0 $ 0.00 $ 0.00 0.0 Development 0 0 $ 0.00 $ 0.00 0.0 ----------------------------------------------------------------------------------------------------------------------------------- Totals/Weighted Average 0 0 $ 0.00 $ 0.00 0.0 ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TOTALS 63 699,328 -----------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------- SAME SPACE STATISTICS ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- Total Base Rent GAAP Rent Property Type Sq. Ft. Expiration Current (b) % Change Expiration Current (b) % Change ---------------------------------------------------------------------------------------------------------------------------------- Office New 214,916 $ 27.77 $ 29.50 6.2% $ 26.75 $ 29.12 8.9% Renewal 153,789 $ 24.83 $ 26.09 5.1% $ 24.72 $ 27.33 10.6% ---------------------------------------------------------------------------------------------------------------------------------- Total 368,705 $ 26.54 $ 28.08 5.8% $ 25.90 $ 28.37 9.5% Industrial New 270,965 $ 6.52 $ 5.78 -11.3% $ 5.73 $ 6.32 10.3% Renewal 59,658 $ 7.69 $ 7.92 3.0% $ 7.15 $ 8.44 18.0% ---------------------------------------------------------------------------------------------------------------------------------- Total 330,623 $ 6.73 $ 6.17 -8.3% $ 5.99 $ 6.70 11.9% 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% $ 6.73 $ 6.17 -8.3% $ 5.99 $ 6.70 11.9% ---------------------------------------------------------------------------------------------------------------------------------- Totals/Weighted Average 699,328 $ 17.17 $ 17.72 3.2% $ 16.49 $ 18.13 9.9% ----------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------- TENANT RETENTION --------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- Leases Sq. Ft Sq. Ft Renewal Property Type Expiring (c) Expiring (c) Renewing Percentage --------------------------------------------------------------------------------------------------------------------------------- Office 54 392,597 153,789 39.2% Industrial 10 84,751 59,658 70.4% Research & Development 0 0 0 0.0% --------------------------------------------------------------------------------------------------------------------------------- Totals 64 477,348 213,447 44.7% ---------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------- (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 December 31, 2002 21 ------------------------------------------------------------------------------- LEASING STATISTICS For the 12 months ended December 31, 2002
----------------------------------------------------------------------------------------------------------------------------------- EXECUTED LEASES (A) ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- # of Total Average Average Average Transactions Sq. Ft. Base Rent Effective Rent Term (Years) ----------------------------------------------------------------------------------------------------------------------------------- OFFICE PORTFOLIO Long Island 55 355,304 $ 29.44 $ 25.64 6.6 Westchester 65 601,578 $ 25.48 $ 21.91 7.4 Connecticut 21 131,441 $ 34.69 $ 33.33 3.3 New Jersey 31 387,229 $ 28.48 $ 24.31 7.5 New York City 32 264,645 $ 47.18 $ 42.73 8.4 ----------------------------------------------------------------------------------------------------------------------------------- Totals/Weighted Average 204 1,740,197 $ 30.95 $ 27.23 7.1 ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL PORTFOLIO Long Island 42 864,365 $ 6.45 $ 5.96 6.0 New Jersey 2 5,750 $ 11.30 $ 10.30 3.2 ----------------------------------------------------------------------------------------------------------------------------------- Totals/Weighted Average 44 870,115 $ 6.48 $ 5.99 6.0 ----------------------------------------------------------------------------------------------------------------------------------- RESEARCH & DEVELOPMENT PORTFOLIO Long Island Operating 7 168,971 $ 14.98 $ 12.62 7.9 Development 0 0 $ 0.00 $ 0.00 0.0 New Jersey 0 0 $ 0.00 $ 0.00 0.0 ----------------------------------------------------------------------------------------------------------------------------------- Totals/Weighted Average 7 168,971 $ 14.98 $ 12.62 7.9 ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TOTALS 255 2,779,283 -----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------- SAME SPACE STATISTICS ----------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------- Total Base Rent GAAP Rent Property Type Sq. Ft. Expiration Current (b) % Change Expiration Current (b) % Change ----------------------------------------------------------------------------------------------------------------------------------- Office New 903,470 $ 26.12 $ 28.75 10.1% $ 25.67 $ 29.49 14.9% Renewal 496,763 $ 24.78 $ 26.63 7.5% $ 24.33 $ 27.18 11.7% ----------------------------------------------------------------------------------------------------------------------------------- Total 1,400,233 $ 25.64 $ 28.00 9.2% $ 25.19 $ 28.67 13.8% Industrial New 462,562 $ 6.27 $ 6.07 -3.2% $ 5.66 $ 6.50 14.8% Renewal 407,550 $ 5.96 $ 6.24 4.7% $ 5.59 $ 6.33 13.2% ----------------------------------------------------------------------------------------------------------------------------------- Total 870,112 $ 6.12 $ 6.15 0.5% $ 5.63 $ 6.42 14.0% Research & Development New 18,402 $ 11.79 $ 12.24 3.8% $ 10.82 $ 13.45 24.3% Renewal 52,830 $ 9.12 $ 9.71 6.5% $ 8.84 $ 10.05 13.7% ----------------------------------------------------------------------------------------------------------------------------------- Total 71,232 $ 9.81 $ 10.36 5.6% $ 9.35 $ 10.93 16.9% $ 6.40 $ 6.47 1.1% $ 5.91 $ 6.76 14.4% ----------------------------------------------------------------------------------------------------------------------------------- Totals/Weighted Average 2,341,577 $ 17.90 $ 19.34 8.0% $ 17.44 $ 19.86 13.9% -----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------- TENANT RETENTION ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- Leases Sq. Ft Sq. Ft Renewal Property Type Expiring (c) Expiring (c) Renewing Percentage ----------------------------------------------------------------------------------------------------------------------- Office 156 1,019,412 486,847 47.8% Industrial 33 584,740 472,550 80.8% Research & Development 4 21,503 16,883 78.5% ----------------------------------------------------------------------------------------------------------------------- Totals 193 1,625,655 976,280 60.1% -----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------- (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 December 31, 2002 22 ------------------------------------------------------------------------------- LEASE ACTIVITY As of December 31, 2002 -------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------- RENEWAL NEW LEASES AT EXPIRATION EARLY RENEWAL EXSPANSIONS TOTAL PORTFOLIO REGION # SF # SF # SF # SF # SF ----------------------------------------------------------------------------------------------------------------------------------- OFFICE PROPERTIES Connecticut 1 45,490 4 28,177 0 0 1 2,760 6 76,427 Long Island 5 14,225 4 29,703 1 5,609 2 3,529 12 53,066 New Jersey 6 67,632 3 19,255 2 34,330 1 505 12 121,722 New York City 2 17,516 0 0 1 17,895 2 18,134 5 53,545 Westchester 9 38,628 5 25,317 0 0 0 0 14 63,945 ----------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL -OFFICE 23 183,491 16 102,452 4 57,834 6 24,928 49 368,705 ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL PROPERTIES Long Island 5 254,665 4 39,700 1 16,508 2 14,000 12 324,873 New Jersey 1 2,300 1 3,450 0 0 0 0 2 5,750 ----------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL -INDUSTRIAL 6 256,965 5 43,150 1 16,508 2 14,000 14 330,623 ----------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TOTAL 29 440,456 21 145,602 5 74,342 8 38,928 63 699,328 63% 21% 11% 5% 100% -----------------------------------------------------------------------------------------------------------------------------------
HOLDOVERS # SF ------ ------ Long Island Office 6 36,806 Connecticut Office 4 7,186 New Jersey Office 2 20,126 New York City Office 2 18,882 Westchester Office 2 2,711 ------ ------ sub-total Office 16 85,711 Long Island Industrial 0 0 ------ ------ Total Holdovers 16 85,711 ------ ------
EARLY TERMINATIONS TERMINATED RELEASED VACANT # SF SF SF ------- ---------- ---------- ------ OFFICE PROPERTIES Long Island Industrial 1 106,515 106,515 0 Long Island Office 5 29,698 2,768 26,930 New Jersey Office 2 6,001 6,001 0 New York City Office 6 71,739 20,770 50,969 Connecticut Office 1 7,360 7,360 0 Westchester Office 3 15,198 13,486 1,712 ------- ------- ------- ------- 18 236,511 156,900 79,611 -------------------------------------------------------------------------------------------------------------
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. EXSPANSION: 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. ------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 23 ------------------------------------------------------------------------------- LEASE EXPIRATION SCHEDULE As of January 1, 2003
TOTAL PORTFOLIO --------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total Cumulative Year of Leases Feet Portfolio % of Total Expiration Expiring Expiring Sq Ft Portfolio Sq Ft --------------------------------------------------------------------------------------------------------------------------- 2003 159 1,533,361 7.6% 7.6% 2004 192 1,622,196 8.0% 15.6% 2005 244 2,460,052 12.1% 27.7% 2006 223 2,649,790 13.1% 40.7% 2007 142 1,619,006 8.0% 48.7% 2008 98 1,420,922 7.0% 55.7% 2009 and thereafter 276 7,963,703 39.4% 95.0% --------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average 1,334 19,269,030 95.0% -- --------------------------------------------------------------------------------------------------------------------------- Total Portfolio Square Feet 20,283,964 ---------------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO ------------------------------------------------------------------------------------------------------------------------------ Number of Square % of Total Cumulative Year of Leases Feet Office % of Total Expiration Expiring Expiring Sq Ft Portfolio Sq Ft ------------------------------------------------------------------------------------------------------------------------------ 2003 139 1,064,852 7.9% 7.9% 2004 151 1,012,551 7.5% 15.3% 2005 211 1,804,599 13.3% 28.7% 2006 170 1,647,446 12.2% 40.8% 2007 110 1,255,054 9.3% 50.1% 2008 69 766,199 5.7% 55.7% 2009 and thereafter 227 5,339,943 39.4% 95.2% ------------------------------------------------------------------------------------------------------------------------------ Total/Weighted Average 1,077 12,890,644 95.2% -- ------------------------------------------------------------------------------------------------------------------------------ Total Office Portfolio Square Feet 13,549,033 ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/R&D PORTFOLIO ------------------------------------------------------------------------------------------------------------------------------ Number of Square % of Total Cumulative Year of Leases Feet Industrial/R&D % of Total Expiration Expiring Expiring Sq Ft Portfolio Sq Ft ------------------------------------------------------------------------------------------------------------------------------ 2003 20 468,509 7.0% 7.0% 2004 41 609,645 9.1% 16.0% 2005 33 655,453 9.7% 25.7% 2006 53 1,002,344 14.9% 40.6% 2007 32 363,952 5.4% 46.0% 2008 29 654,723 9.7% 55.7% 2009 and thereafter 49 2,623,760 39.0% 94.7% -------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average 257 6,378,386 94.7% -- -------------------------------------------------------------------------------------------------------------------------------- Total Industrial/R&D Portfolio Square Feet 6,734,931 --------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 24 ------------------------------------------------------------------------------- LEASE EXPIRATION SCHEDULE As of January 1, 2003
LONG ISLAND OFFICE (EXCLUDING OMNI) --------------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total LI Cumulative Expiring Expiring Year of Leases Feet (excluding Omni) % of Total GAAP Cash Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2) --------------------------------------------------------------------------------------------------------------------------------- 2003 51 312,592 9.3% 9.3% $25.77 $27.27 2004 48 293,940 8.7% 18.0% $23.34 $26.08 2005 71 367,257 10.9% 28.8% $23.94 $27.04 2006 40 159,434 4.7% 33.6% $26.09 $29.66 2007 40 427,590 12.7% 46.2% $24.54 $30.31 2008 25 349,954 10.4% 56.6% $22.63 $26.35 2009 and thereafter 68 1,266,600 37.5% 94.1% $26.41 $32.21 --------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average 343 3,177,367 94.1% -- -- -- --------------------------------------------------------------------------------------------------------------------------------- Total LI Portfolio (excluding Omni) Square Feet 3,376,123 ---------------------------------------------------------------------------------------------------------------------------------
OMNI --------------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total LI Cumulative Expiring Expiring Year of Leases Feet Omni % of Total GAAP Cash Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2) --------------------------------------------------------------------------------------------------------------------------------- 2003 4 71,193 12.3% 12.3% $31.17 $35.07 2004 5 113,793 19.7% 32.0% $27.17 $34.96 2005 5 44,578 7.7% 39.7% $27.94 $35.34 2006 0 -- 0.0% 39.7% -- -- 2007 2 59,722 10.3% 50.0% $26.78 $34.63 2008 2 13,672 2.4% 52.3% $30.40 $33.99 2009 and thereafter 12 246,335 42.6% 94.9% $33.16 $39.30 ------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average 30 549,293 94.9% -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total Omni Portfolio Square Feet 578,798 -------------------------------------------------------------------------------------------------------------------------------
WESTCHESTER OFFICE --------------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total LI Cumulative Expiring Expiring Year of Leases Feet Westchester % of Total GAAP Cash Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2) --------------------------------------------------------------------------------------------------------------------------------- 2003 31 138,339 4.5% 4.5% $21.83 $23.71 2004 29 142,296 4.7% 9.2% $21.48 $23.12 2005 44 416,006 13.7% 22.9% $23.55 $24.96 2006 36 649,560 21.3% 44.2% $22.59 $24.87 2007 32 448,928 14.7% 58.9% $25.55 $27.42 2008 15 132,771 4.4% 63.3% $22.71 $24.19 2009 and thereafter 34 925,220 30.4% 93.6% $25.58 $29.26 ------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average 221 2,853,120 93.6% -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total Westchester Portfolio Square Feet 3,047,088 -------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------- (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 (3) Tenants that have expired on 12/31/02 are not included (6,722 SF for Long Island and 20,807 SF for Westchester). ------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 25 ------------------------------------------------------------------------------- LEASE EXPIRATION SCHEDULE As of January 1, 2003
STAMFORD OFFICE --------------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total LI Cumulative Expiring Expiring Year of Leases Feet Westchester % of Total GAAP Cash Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2) --------------------------------------------------------------------------------------------------------------------------------- 2003 24 93,783 8.6% 8.6% $26.14 $26.67 2004 25 144,127 13.2% 21.8% $21.03 $22.41 2005 29 252,612 23.2% 45.0% $34.61 $36.04 2006 25 308,463 28.3% 73.3% $24.92 $25.79 2007 14 100,796 9.3% 82.6% $31.99 $34.46 2008 6 34,223 3.1% 85.7% $30.49 $32.72 2009 and thereafter 8 127,632 11.7% 97.5% $20.60 $22.69 ------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average 131 1,061,636 97.5% -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total Portfolio Square Feet 1,089,331 -------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY OFFICE --------------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total LI Cumulative Expiring Expiring Year of Leases Feet Westchester % of Total GAAP Cash Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2) --------------------------------------------------------------------------------------------------------------------------------- 2003 17 284,221 14.4% 14.4% $27.39 $28.13 2004 26 143,701 7.3% 21.7% $23.71 $24.59 2005 31 316,849 16.1% 37.8% $24.05 $25.04 2006 16 170,137 8.6% 46.5% $23.92 $25.76 2007 8 83,806 4.3% 50.7% $22.30 $23.89 2008 10 139,990 7.1% 57.8% $29.47 $32.51 2009 and thereafter 21 717,699 36.4% 94.3% $26.55 $29.50 ------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average 129 1,856,403 94.3% -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total Portfolio Square Feet 1,969,209 -------------------------------------------------------------------------------------------------------------------------------
NEW YORK CITY OFFICE --------------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total LI Cumulative Expiring Expiring Year of Leases Feet Westchester % of Total GAAP Cash Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2) --------------------------------------------------------------------------------------------------------------------------------- 2003 12 164,724 4.7% 4.7% $35.94 $37.12 2004 18 174,694 5.0% 9.7% $33.65 $36.77 2005 31 407,297 11.7% 21.4% $36.90 $39.34 2006 53 359,852 10.3% 31.7% $30.29 $32.03 2007 14 134,212 3.8% 35.6% $37.25 $39.77 2008 11 95,589 2.7% 38.3% $38.02 $43.05 2009 and thereafter 84 2,056,457 58.9% 97.4% $46.57 $52.09 -------------------------------------------------------------------------------------------------------------------------------- Total/Weighted Average 223 3,392,825 97.4% -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total Portfolio Square Feet 3,488,484 --------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- (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 (3) Tenants that have expired on 12/31/02 are not included (2,600 SF for CT, 30,167 SF for NJ and 17,790 SF for NYC). -------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 26 ------------------------------------------------------------------------------- LEASE EXPIRATION SCHEDULE As of January 1, 2003
INDUSTRIAL --------------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total LI Cumulative Expiring Expiring Year of Leases Feet Westchester % of Total GAAP Cash Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2) --------------------------------------------------------------------------------------------------------------------------------- 2003 16 428,552 8.0% 8.0% $6.35 $7.31 2004 32 510,427 9.5% 17.4% $6.46 $7.60 2005 29 523,314 9.7% 27.1% $6.02 $7.78 2006 39 829,656 15.4% 42.6% $6.70 $8.28 2007 28 278,508 5.2% 47.7% $7.55 $8.77 2008 25 618,947 11.5% 59.2% $7.49 $9.99 2009 and thereafter 38 2,115,817 39.3% 98.5% $7.62 $9.03 ------------------------------------------------------------------------------------------------------------------------------- Total / Weighted Average 207 5,305,221 98.5% -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total Portfolio Square Feet 5,386,306 -------------------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT --------------------------------------------------------------------------------------------------------------------------------- Number of Square % of Total LI Cumulative Expiring Expiring Year of Leases Feet Westchester % of Total GAAP Cash Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2) --------------------------------------------------------------------------------------------------------------------------------- 2003 4 39,957 3.0% 3.0% $ 6.60 $ 7.57 2004 9 99,218 7.4% 10.3% $13.86 $15.46 2005 4 132,139 9.8% 20.1% $10.12 $11.70 2006 14 172,688 12.8% 32.9% $14.34 $15.90 2007 4 85,444 6.3% 39.3% $12.60 $13.97 2008 4 35,776 2.7% 41.9% $17.80 $19.14 2009 and thereafter 11 507,943 37.7% 79.6% $10.83 $13.83 ------------------------------------------------------------------------------------------------------------------------------- Total / Weighted Average 50 1,073,165 79.6% -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total Portfolio Square Feet 1,348,625 -------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- (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 (3) Tenants that have expired on 12/31/02 are not included (4,529 SF for R&D). -------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 27 ------------------------------------------------------------------------------- LEASE EXPIRATION COMPARISON As of December 31, 2002 EXPIRING RENTS VS. RECKSON FORECAST RENTS(a) OFFICE PORTFOLIO CBD PORTFOLIO 636,282 SQ. FT. EXPIRING Cash GAAP ------- ------- Expiring $29.84 $29.25 Forecasted(b) $37.94 $38.62 Increase 27.1% 32.0% SUBURBAN PORTFOLIO 1.4 MILLION SQ. FT. EXPIRING Cash GAAP ------- ------- Expiring $26.41 $25.01 Forecasted(b) $26.64 $27.15 Increase 0.9% 8.6% (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 December 31, 2002 28 ---------------------------------------------------------------------------- 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% * American Express Office 335,242 2.0% 1.8% * WorldCom/MCI Office 365,242 1.8% 1.7% Bell Atlantic Office 210,426 1.6% 1.4% * Schulte Roth & Zabel Office 238,052 1.4% 2.4% * HQ Global Office/Industrial 201,900 1.2% 1.5% United Distillers Office 137,918 1.1% 1.0% T.D. Waterhouse Office 139,211 1.1% 0.9% * Prudential Office 127,153 0.9% 0.9% * Banque Nationale De Paris Office 145,834 0.9% 1.5% * Kramer Levin Nessen Kamin Office 158,144 0.9% 1.5% Vytra Healthcare Office 105,613 0.8% 0.7% P.R. Newswire Associates Office 67,000 0.8% 0.7% Hoffmann -La Roche Inc. Office 120,736 0.7% 0.6% D.E. Shaw Office 89,526 0.7% 0.6% Heller Ehrman White Office 64,526 0.7% 0.6% * State Farm Office/Industrial 164,175 0.7% 1.0% EMI Entertainment World Office 65,844 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% 1.2% Practicing Law Institute Office 62,000 0.7% 0.6% Lockheed Martin Corp. Office 123,554 0.7% 0.6% Towers Perrin Foster Office 88,233 0.6% 0.6% Radianz (Reuters) Office 130,009 0.6% 0.5% -------------------------------------------------------------------------------------------------------------------------
TENANT DIVERSIFICATION (2) TOTAL PORTFOLIO [GRAPHIC OMITTED] Accounting 1% Advertising 1% Commercial Banking 5% Consumer Products 14% Defense/Electronics 2% Financial Services 13% Government 2% Healthcare 4% Hospitality 1% Insurance 8% Legal Services 11% Manufacturing 3% Media/Entertainment 6% Other Professional Services 4% Pharmaceuticals 4% Real Estate 4% Research/Consulting 3% Retail/Wholesale 2% Technology 4% Telecom 7% Transportation 1% ------------------------------------------------------------------------------- (1) Ranked by pro rata share of annualized base rental revenue adjusted for pro rata share of joint venture interests and to reflect WorldCom/MCI leases rejected to date. (2) Based on annualized base rental revenue adjusted for pro rata share of joint venture interests and to reflect WorldCom/MCI leases rejected to date. * 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 December 31, 2002 29 --------------------------------------------------------------------------------
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 twelve months ended December 31, 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 $5,283,674 Per Square Foot $ 0.23 $ 0.23 $ 0.33 $ 0.45 $ 0.31 $ 0.53 NYC Office Properties Total N/A N/A $ 946,718 $1,584,501 $1,265,610 $1,939,111 Per Square Foot N/A N/A 0.38 0.45 0.42 $ 0.56 Industrial Properties Total $1,205,266 $1,048,688 $ 813,431 $ 711,666 $ 944,763 $1,881,627 Per Square Foot $ 0.12 $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.28 TOTAL PORTFOLIO ---------- ----------- ---------- --------- ---------- ---------- Total $3,210,242 $3,347,587 $5,049,265 $6,902,236 $9,104,412 Per Square Foot $ 0.17 $ 0.17 $ 0.25 $ 0.34 $ 0.45
-------------------------------------------------------------------------------------------------------------------------------- NON-INCREMENTAL REVENUE GENERATING TENANT IMPROVEMENTS AND LEASING COMMISSIONS (3) -------------------------------------------------------------------------------------------------------------------------------- Average YTD 1998 1999 2000 2001 1998-2001 2002 New Renewal ---------- --------- -------- ----------- ---------- --------- --------- ---------- Long Island Office Properties Tenant Improvements $1,140,251 $1,009,357 2,853,706 $2,722,457 $1,931,443 $ 1,917,466 $ 960,804 $ 956,662 Per Square Foot Improved $ 3.98 $ 4.73 6.99 $ 8.47 $ 6.04 $ 7.81 $ 11.18 $ 6.00 Leasing Commissions $ 418,191 $ 551,762 2,208,604 $1,444,412 $1,155,742 $ 1,026,970 $ 392,462 $ 634,508 Per Square Foot Leased $ 1.46 $ 2.59 4.96 $ 4.49 $ 3.38 $ 4.18 $ 4.57 $ 3.98 ---------- ---------- --------- ---------- ---------- ----------- ----------- --------- Total Per Square Foot $ 5.44 $ 7.32 11.95 $ 12.96 $ 9.42 $ 11.99 $ 15.75 $ 9.98 ========== ========== ========= ========== ========== =========== =========== ========= Westchester Office Properties Tenant Improvements $ 711,160 $1,316,611 1,860,027 $2,584,728 $1,618,132 $26,391,589(2)$4,265,406 $2,126,183 Per Square Foot Improved $ 4.45 $ 5.62 5.72 $ 5.91 $ 5.43 $ 15.05 $ 17.53 $ 11.73 Leasing Commissions $ 286,150 $ 457,730 412,226 $1,263,012 $ 604,780 $ 1,975,850 $1,618,240 $ 357,609 Per Square Foot Leased $ 1.79 $ 1.96 3.00 $ 2.89 $ 2.41 $ 4.65 $ 6.16 $ 2.21 ---------- ---------- --------- ---------- ---------- ----------- ---------- ---------- Total Per Square Foot $ 6.24 $ 7.58 8.72 $ 8.80 $ 7.84 $ 19.70 $ 23.69 $ 13.94 ========== ========== ========= ========== ========== =========== ========== ========== Connecticut Office Properties Tenant Improvements $ 202,880 $ 179,043 385,531 $ 213,909 $ 245,341 $ 491,435 $ 489,715 $ 1,720 Per Square Foot Improved $ 5.92 $ 4.88 4.19 $ 1.46 $ 4.11 $ 3.81 $ 4.86 $ 0.06 Leasing Commissions $ 151,063 $ 110,252 453,435 $ 209,322 $ 231,018 $ 307,023 $ 203,055 $ 103,968 Per Square Foot Leased $ 4.41 $ 3.00 4.92 $ 1.43 $ 3.44 $ 2.38 $ 2.01 $ 3.67 ---------- ---------- --------- ---------- ---------- ----------- ---------- ---------- Total Per Square Foot $ 10.33 $ 7.88 9.11 $ 2.89 $ 7.55 $ 6.19 $ 6.87 $ 3.73 ========== ========== ========= ========== ========== =========== ========== ========== New Jersey Office Properties Tenant Improvements $ 654,877 $ 454,054 1,580,323 $1,146,385 $ 958,910 $ 2,842,521 $2,148,751 $ 693,770 Per Square Foot Improved $ 3.78 $ 2.29 6.71 $ 2.92 $ 3.93 $ 10.76 $ 16.47 $ 5.19 Leasing Commissions $ 396,127 $ 787,065 1,031,950 $1,602,962 $ 954,526 $ 1,037,012 $ 448,363 $ 588,649 Per Square Foot Leased $ 2.08 $ 3.96 4.44 $ 4.08 $ 3.64 3.92 $ 3.44 $ 4.40 ---------- ---------- --------- ---------- ---------- ----------- ---------- ---------- Total Per Square Foot $ 5.86 $ 6.25 11.15 $ 7.00 $ 7.57 $ 14.68 $ 19.91 $ 9.59 ========== ========== ========= ========== ========== =========== ========== ========== New York City Office Properties Tenant Improvements N/A N/A 65,267 $ 788,930 $ 427,099 $ 4,350,106 $3,407,278 $ 942,828 Per Square Foot Improved N/A N/A 1.79 $ 15.69 $ 8.74 $ 18.39 $ 19.11 $ 16.17 Leasing Commissions N/A N/A 418,185 $1,098,829 $ 758,507 $ 2,019,837 $1,398,069 $ 621,768 Per Square Foot Leased N/A N/A 11,50 $ 21.86 $ 16.68 $ 8.54 $ 7.84 $ 10.67 ---------- ---------- --------- ---------- ---------- ----------- ---------- ---------- Total Per Square Foot N/A N/A 13.29 $ 37.55 $ 25.42 $ 26.93 $ 26.95 $ 26.84 ========== ========== ========= ========== ========== =========== ========== ========== Industrial Properties Tenant Improvements $ 283,842 $ 375,646 650,216 $1,366,488 $ 669,048 $ 1,850,812 $1,577,958 $ 272,854 Per Square Foot Improved $ 0.76 $ 0.25 0.95 $ 1.65 $ 0.90 $ 1.97 $ 3.28 $ 0.59 Leasing Commissions $ 200,154 $ 835,108 436,506 $ 354,572 $ 456,585 $ 890,688 $ 826,089 $ 64,599 Per Square Foot Leased $ 0.44 $ 0.56 0.64 $ 0.43 $ 0.52 $ 0.95 $ 1.71 $ 0.14 ---------- ---------- --------- ---------- ---------- ----------- ---------- ---------- Total Per Square Foot $ 1.20 $ 0.81 1.59 $ 2.08 $ 1.42 $ 2.92 $ 5.01 $ 0.73 ========== ========== ========= ========== ========== =========== ========== ========== ----------------------------------------------------------------------------------------------------------------- ---------- TOTAL PORTFOLIO Tenant Improvements $2,993,010 $3,334,711 7,395,070 $8,822,897 $5,849,971 $17,843,929 $12,849,912 $4,994,017 Per Square Foot Improved $ 2.91 $ 1.53 4.15 $ 4.05 $ 3.42 $ 7.96 $ 10.54 $ 4.89 Leasing Commissions $1,451,685 $2,741,917 4,960,906 $5,973,109 $4,161,158 $ 7,257,379 $ 4,886,278 $2,371,101 Per Square Foot Leased $ 1.29 $ 1.26 3.05 $ 2.75 $ 2.25 $ 3.24 $ 3.94 $ 2.37 ---------- ---------- --------- ---------- ---------- ----------- ----------- ----------- Total Per Square Foot $ 4.20 $ 2.79 7.20 $ 6.80 $ 5.67 $ 11.20 $ 14.48 $ 7.26 ========== ========== ========= ========== ========== =========== ========== ==========
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 December 31, 2002 30 ------------------------------------------------------------------------------- ANALYSIS OF CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COSTS (5) As of December 31, 2002
----------------------------------------------------------------------------------------------------- 4Q02 COSTS PER YEAR-TO-DATE COSTS PER CAPITAL EXPENDITURES COSTS SQUARE FOOT COSTS SQUARE FOOT ----------------------------------------------------------------------------------------------------- NON-INCREMENTAL CAPITAL EXPENDITURES ------------------------------------ Maintenance Capital Expenditures $2,688,038 $ 0.13 $ 9,104,412 $ 0.45 ---------- ------ ----------- ----------- Total Recurring Capital Expenditures $2,688,038 $ 0.13 $ 9,104,412 $ 0.45 ========== ====== =========== =========== INCREMENTAL CAPITAL EXPENDITURES -------------------------------- Property Renovations $1,493,734 $ 0.07 $ 7,910,509 $ 0.39 ---------- ------ ----------- ----------- Total Non-recurring Capital Expenditures $1,493,734 $ 0.07 $ 7,910,509 $ 0.39 ========== ====== =========== =========== ACQUISITION AND DEVELOPMENT COSTS $4,592,169 $41,895,785 ========== =========== -----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------- 4Q02 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 $2,191,936 $ 3.13 $ 7,257,378 $ 3.24 Tenant Improvements $4,184,890 $ 5.98 $17,843,929 $ 7.96 ---------- ------ ----------- ----------- TOTAL NON -INCREMENTAL $6,376,826 $ 9.11 $25,101,307 $ 11.20 INCREMENTAL (4) --------------- Leasing Costs $ 0 $ 0.00 $ 3,773,197 $ 10.08 Tenant Improvements $ 0 $ 0.00 $14,225,835 $ 38.00 ---------- ------ ----------- ----------- TOTAL INCREMENTAL $ 0 $ 0.00 $17,999,032 $ 48.08 ---------- ------ ----------- ---------- TOTAL COMMITTED/ WTD AVG. $6,376,826 $ 9.11 $43,100,339 $ 26.60 ========== ====== =========== =========== -----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------- 4Q02 COSTS PER YEAR-TO-DATE COSTS PER TENANT IMPROVEMENTS AND LEASING COSTS (1) COSTS SQUARE FOOT COSTS SQUARE FOOT ----------------------------------------------------------------------------------------------------- PAID OR ACCRUED NON-INCREMENTAL --------------- Leasing Costs $ 2,269,081 $ 1.35 $10,482,832 $ 1.72 Tenant Improvements $ 8,173,056 $ 3.02 $20,973,163 $ 2.83 ----------- ------ ----------- ----------- TOTAL NON-INCREMENTAL $10,442,137 $ 4.37 $31,455,995 $ 4.55 INCREMENTAL (4) --------------- Leasing Costs $ 1,356,349 $ 4.85 $ 5,931,620 $ 2.17 Tenant Improvements $ 4,668,240 $ 8.61 $10,063,706 $ 3.49 ----------- ------ ----------- ---------- TOTAL INCREMENTAL $ 6,024,589 $13.46 $15,995,326 $ 5.66 ----------- ------ ----------- ---------- TOTAL PAID OR ACCRUED $16,466,726 $ 7.69 $47,451,321 $ 4.92 =========== ====== =========== ========== -----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------- 4Q02 COSTS PER YEAR-TO-DATE COSTS PER TENANT IMPROVEMENTS AND LEASING COSTS (1) COSTS SQUARE FOOT COSTS SQUARE FOOT ----------------------------------------------------------------------------------------------------- COMMITTED TENANT IMPROVEMENTS AND LEASING COSTS ON SIGNED LEASES, EXCLUDING EARLY RENEWALS (6) NON-INCREMENTAL --------------- Leasing Costs $ 1,560,891 $ 2.65 $ 6,626,333 $ 8.16 Tenant Improvements $ 3,739,946 $ 6.14 $17,398,985 $ 8.09 ----------- ------ ----------- ----------- TOTAL NON-INCREMENTAL $ 5,300,837 $ 8.79 $17,398,985 $ 16.25 INCREMENTAL (4) --------------- Leasing Costs $ 0 $ 0.00 $ 3,773,197 $ 10.08 Tenant Improvements $ 0 $ 0.00 $14,225,835 $ 38.00 ----------- ------ ----------- ----------- TOTAL INCREMENTAL $ 0 $ 0.00 $17,999,032 $ 48.08 ----------- ------ ----------- ----------- TOTAL $ 5,300,837 $ 8.79 $35,398,017 $ 32.44 =========== ====== =========== ===========
------------------------------------------------------------------------------- (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 early renewals. (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) Year-to-date number 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 December 31, 2002 31 ------------------------------------------------------------------------------- CAPITAL EXPENDITURES As of December 31, 2002
------------------------------------------------------------------------------------------------------------------------------------ 3Q01 4Q01 1Q02 2QO2 3Q02 4Q02 2002 TENANT IMPROVEMENTS AND LEASING COSTS (1) AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT YTD AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ RECURRING - NON INCREMENTAL --------------------------- Amenities (Health Club, Cafe, etc.) $ 32,858 $ 3,607 $ 85,670 $ 20,230 $ -- $ 11,113 $ 117,013 Bathrooms $ 132,968 $ 325,582 $ 316,963 $ 55,871 $ 88,216 $ 109,192 $ 570,242 Corridors $ 97,442 $ 187,429 $ 161,964 $ 82,480 $ 65,586 $ 102,945 $ 412,975 Elevators $ 200,094 $ 33,585 $ 24,589 $ 2,123 $ 41,870 $ 31,789 $ 100,372 Exterior Renovation $ 272,828 $ 205,918 $ 214,344 $ 600,148 $ 1,079,221 $ 692,151 $ 2,585,864 Lobby $ 47,176 $ 89,752 $ 37,635 $ 90,566 $ 237,657 $ 181,873 $ 547,730 Mechanical, Electrical & Plumbing $ 385,100 $ 505,362 $ 468,287 $ 663,361 $ 625,584 $ 684,780 $ 2,442,013 Other $ 383,304 $ 632,354 $ 140,591 $ 291,271 $ 293,218 $ 395,910 $ 1,120,991 Parking Lots $ 113,333 $ 446,703 $ 12,789 $ 150,057 $ 269,198 $ 250,876 $ 682,920 Roofs $ 260,183 $ 107,557 $ 15,377 $ 80,414 $ 124,615 $ 176,236 $ 396,642 Security $ 13,386 $ 30,624 $ 33,525 $ 42,953 $ 51,173 $ 127,650 -------------------------------------------------------------------------------------------- TOTAL RECURRING - NON INCREMENTAL $ 1,938,672 $ 2,568,473 $ 1,511,734 $ 2,079,474 $ 2,825,165 2,688,038 $ 9,104,412 Amount Per Square Foot $ 0.09 $ 0.12 $ 0.07 $ 0.10 $ 0.14 $ 0.13 $ 0.45 NON-RECURRING - INCREMENTAL (1) $ 2,331,452 $ 3,025,187 $ 1,673,606 $ 3,529,974 $ 1,213,194 1,493,734 $ 7,910,509 ------------------------------- Amount Per Square Foot $ 0.11 $ 0.15 $ 0.08 $ 0.17 $ 0.06 $ 0.07 $ 0.39 Rentable SF 20,695,723 20,610,545 20,546,468 20,545,786 20,353,759 20,283,964 20,283,964 # of Buildings 183 182 181 181 178 178 178
------------------------------------------------------------------------------- (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 December 31, 2002 32 ------------------------------------------------------------------------------- TENANT IMPROVEMENTS AND LEASING COSTS As of December 31, 2002
-------------------------------------------------------------------------------------------------------------------------------- 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 2002 COMMITTED (1) AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT YTD AMOUNT -------------------------------------------------------------------------------------------------------------------------------- NON -INCREMENTAL --------------- LEASING COSTS $ 1,054,004 $ 2,383,854 $ 1,532,939 $ 1,234,199 $ 2,298,304 (5) $ 2,191,936 $ 7,257,378 TENANT IMPROVEMENTS $ 765,749 $ 4,309,256 $ 3,293,408 $ 2,607,037 $ 7,758,594 (5) $ 4,184,890 $17,843,929 ----------------------------------------------------------------------------------- ----------- Non-Recurring Capital Expenditures $ 1,819,753 $ 6,693,110 $ 4,826,347 $ 3,841,236 $10,056,898 $ 6,376,826 $25,101,307 INCREMENTAL (4) --------------- LEASING COSTS $ 1,430,544 $ 339,337 $ 2,910,232 $ 392,312 $ 470,653 $ 0 $ 3,773,197 TENANT IMPROVEMENTS $ 1,929,149 $ 2,345,122 $11,095,857 $ 1,986,445 $ 1,143,533 $ 0 $14,225,835 ----------------------------------------------------------------------------------- ----------- Total Incremental $ 3,359,693 $ 2,684,459 $14,006,089 $ 2,378,757 $ 1,614,186 $ 0 $17,999,032 ----------------------------------------------------------------------------------- ----------- TOTAL COMMITTED $ 5,179,446 $ 9,377,569 $18,832,436 $ 6,219,993 $11,671,084 $ 6,376,826 $43,100,339 =================================================================================== ===========
-------------------------------------------------------------------------------------------------------------------------------- 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 2002 PAID OR ACCRUED (2) AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT YTD AMOUNT -------------------------------------------------------------------------------------------------------------------------------- NON-INCREMENTAL --------------- LEASING COSTS $ 1,237,447 $ 1,503,116 $ 2,240,976 $ 2,188,337 $ 3,784,438 $ 2,269,081 $10,482,832 TENANT IMPROVEMENTS $ 2,751,620 $ 5,107,743 $ 4,243,242 $ 3,681,440 $ 4,875,425 $ 8,173,056 $20,973,163 --------------------------------------------------------------------------------- ----------- Total Non-Incremental $ 3,989,067 $ 6,610,859 $ 6,484,218 $ 5,869,777 $ 8,659,863 $10,442,137 $31,455,995 INCREMENTAL (4) --------------- LEASING COSTS $ 237,482 $ 2,199,465 $ 829,468 $ 910,336 $ 2,835,467 $ 1,356,349 $ 5,931,620 TENANT IMPROVEMENTS $ 8,137,624 $11,489,202 $ 1,244,676 $ 2,846,454 $ 1,304,335 $ 4,668,240 $10,063,706 --------------------------------------------------------------------------------- ----------- Total Incremental $ 8,375,106 $13,688,667 $ 2,074,145 $ 3,756,790 $ 4,139,802 $ 6,024,590 $15,995,326 --------------------------------------------------------------------------------- ----------- TOTAL PAID OR ACCRUED $12,364,173 $20,299,526 $ 8,558,362 $ 9,626,567 $12,799,665 $16,466,727 $47,451,321 ================================================================================= ===========
------------------------------------------------------------------------------- (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 December 31, 2002 33 CLASS A OFFICE STATISTICS
LONG ISLAND 1998 1999 2000 2001 4Q02 ----------- ------ ------ ------ ------ ------ Average Asking Rental Rates $27.23 $27.69 $28.86 $30.06 $29.15 Overall Vacancy 6.7% 6.5% 8.4% 11.9% 12.5% Direct Vacancy 6.1% 5.6% 6.3% 7.7% 8.1% WESTCHESTER 1998 1999 2000 2001 4Q02 ----------- ------ ------ ------ ------ ------ Average Asking Rental Rates $26.67 $27.23 $29.62 $30.15 $29.83 Overall Vacancy 19.2% 16.3% 12.0% 20.5% 18.9% Direct Vacancy 16.4% 15.0% 10.7% 16.3% 15.3% SOUTHERN CONNECTICUT 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ------ Average Asking Rental Rates $32.22 $31.78 $44.41 $36.10 $36.59 Overall Vacancy 4.2% 4.7% 8.1% 13.6% 17.3% Direct Vacancy 3.6% 4.0% 7.2% 8.8% 8.8% NORTHERN NEW JERSEY 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ------ Average Asking Rental Rates $27.42 $28.52 $29.66 $30.92 $30.74 Overall Vacancy 7.5% 7.1% 9.9% 13.4% 17.8% Direct Vacancy 5.3% 4.6% 6.5% 8.1% 10.2%
Source: Cushman & Wakefield 34 NEW YORK CITY CLASS A OFFICE STATISTICS
AVERAGE ASKING RENTS 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ------ Financial East $40.21 $37.64 $52.90 $48.07 $47.64 Midtown West Side $43.36 $48.28 $60.89 $61.22 $51.91 Midtown East Side $47.85 $51.18 $61.46 $59.81 $54.23 6th Ave./Rockefeller Center $51.33 $53.12 $65.91 $67.15 $62.36
FINANCIAL EAST 1998 1999 2000 2001 4Q02 ------ ------ ------ ------ ------ Overall Vacancy 7.3% 4.1% 2.1% 7.0% 16.1% Direct Vacancy 6.6% 3.4% 1.4% 2.3% 9.3% MIDTOWN WEST Overall Vacancy 4.3% 6.0% 2.7% 6.2% 8.3% Direct Vacancy 3.3% 4.6% 2.4% 4.0% 5.8% MIDTOWN EAST Overall Vacancy 8.0% 5.0% 2.6% 8.9% 12.5% Direct Vacancy 6.0% 3.8% 1.9% 3.1% 5.7% 6TH AVE/ROCK CTR Overall Vacancy 5.0% 2.6% 1.2% 4.3% 9.0% Direct Vacancy 2.2% 1.6% 0.9% 2.7% 3.3%
Source: Cushman & Wakefield Breakdown of New York City Revenue: Midtown East Side 41% Midtown West Side 34% 6th Ave./Rockefeller Center 14% Financial East 11% 35 CLASS A OFFICE STATISTICS LONG ISLAND SUBMARKET
DIRECT VACANCY RATES 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ------ Central Nassau County 5.1% 5.1% 4.7% 5.6% 6.0% Western Suffolk County 7.7% 11.6% 15.4% 17.5% 12.0% Eastern Nassau County 4.9% 0.9% 1.4% 1.2% 1.1%
AVERAGE ASKING RENTS 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ------ Central Nassau County $29.10 $29.93 $31.15 $31.94 $31.44 Western Suffolk County $26.22 $27.34 $28.22 $30.06 $29.84 Eastern Nassau County $27.49 $26.23 $28.75 $29.02 $28.99
Breakdown of Long Island office revenue: Central Nassau 47% Western Suffolk 36% Eastern Nassau 8% Other 9% ------------------------------------------------------------------------------ WESTCHESTER SUBMARKET
DIRECT VACANCY RATES 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ------ Central 12.3% 13.5% 12.0% 20.6% 21.6% Tarrytown / Western 7.8% 8.0% 6.0% 8.4% 13.6% Eastern 12.2% 10.1% 8.1% 16.6% 9.4% White Plains CBD 22.7% 22.6% 11.5% 15.3% 15.6%
AVERAGE ASKING RENTS 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ----- Central $22.91 $27.07 $28.49 $29.53 $29.51 Tarrytown/Western $24.66 $27.30 $27.03 $28.37 $26.73 Eastern $29.35 $27.70 $29.65 $30.62 $31.06 White Plains CBD $26.84 $27.44 $30.62 $30.52 $31.26
Breakdown of Westchester office revenue: White Plains 19% Tarrytown/Western 32% Central 29% Eastern 17 Other 3% Note: The 21.6% vacancy in Central Westchester is impacted by IBM selling a 383,000 sf 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 17%. ------------------------------------------------------------------------------- NEW JERSEY SUBMARKET
DIRECT VACANCY RATES 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ------ Essex County 3.30% 6.00% 9.60% 6.80% 9.70% Bergen County 6.80% 5.30% 5.10% 9.90% 11.90% Mercer County 1.50% 5.20% 6.30% 6.20% 6.00%
AVERAGE ASKING RENTS 1998 1999 2000 2001 4Q02 -------------------- ------ ------ ------ ------ ------ Essex County $27.74 $28.78 $28.90 $30.24 $28.19 Bergen County $27.37 $28.07 $29.41 $29.78 $29.29 Mercer County $24.49 $27.46 $30.32 $30.06 $29.81
Breakdown of New Jersey office revenue: Essex County 50% Bergen County 11% Mercer County 8% Other 31% ------------------------------------------------------------------------------- Source: Cushman & Wakefield 36 ------------------------------------------------------------------------------- VALUE CREATION PIPELINE As of December 31, 2002
----------------------------------------------------------------------------------------------------------------------------------- Anticipated Estimated Anticipated Square Feet/ Investment Total Current % Stabilization Stabilized Stage / Property Acres To Date Investment(a) Leased Date (a) Return (a) ----------------------------------------------------------------------------------------------------------------------------------- PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 2001 Orville Drive North, Bohemia, NY 71,000 5,364,000 $ 7,280,000 0.0% Q2 2003 9.0% ----------------------------------------------------------------------------------------------------------------------------------- TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 71,000 $ 5,364,000 $ 7,280,000 0.0% 9.0% ----------------------------------------------------------------------------------------------------------------------------------- PROJECTS IN PLANNING -------------------- Melville Square II, Melville, NY 275,000 TBD University Square , Princeton, NJ 316,000 TBD 68 South Service Road, Melville, NY 277,000 TBD Reckson Executive Park - Ryebrook (Building 7), Ryebrook, NY 315,000 TBD Giralda Farms , Madison Township, NJ 436,000 TBD 70 Andrews Road, Hicksville, NY 58,000 TBD ----------------------------------------------------------------------------------------------------------------------------------- TOTAL PROJECTS IN PLANNING 1,677,000 $ 70,187,000 $349,450,000 11% TO 12% ----------------------------------------------------------------------------------------------------------------------------------- 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 $ 45,653,000 -----------------------------------------------------------------------------------------------------------------------------------
Investments that reached realization during 2002 ------------------------------------------------ SQ. FT. % LEASED ------- -------- 58 South Service Road, Melville, NY 277,500 74.1% 103 JFK Expressway, Short Hills, NJ 123,000 100.0% 400 Moreland Road, Commack, NY 57,050 100.0% ------------------------------------------------------------------------------- (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 December 31, 2002 37 ------------------------------------------------------------------------------- UNCONSOLIDATED REAL ESTATE JOINT VENTURES
December 31, BALANCE SHEETS ------------------------------ (in thousands) 2002 2001 ---- ---- (Unaudited) (Unaudited) ASSETS Commercial real estate property, at cost: Land $ 3,462 $ 3,462 Building and improvements 20,800 20,711 Furniture, fixtures, and equipment 15 15 -------------------------------------------------------------------------------------------- 24,277 24,188 Less: accumulated depreciation (4,981) (4,081) -------------------------------------------------------------------------------------------- Investment in real estate, net of accumulated depreciation 19,296 20,107 Cash and cash equivalents 425 271 Tenant receivables 75 172 Deferred rents receivable 682 960 Prepaid expenses and other assets 338 306 Deferred leasing and loan costs 144 161 -------------------------------------------------------------------------------------------- TOTAL ASSETS $ 20,960 $ 21,977 -------------------------------------------------------------------------------------------- LIABILITIES AND PARTNERS' CAPITAL -------------------------------------------------------------------------------------------- LIABILITIES: Mortgage note payable $ 12,548 $ 13,057 Accrued expenses and other liabilities 197 995 -------------------------------------------------------------------------------------------- TOTAL LIABILITIES 12,745 14,052 -------------------------------------------------------------------------------------------- PARTNERS' CAPITAL 8,215 7,925 -------------------------------------------------------------------------------------------- TOTAL PARTNERS' CAPITAL 8,215 7,925 -------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 20,960 $ 21,977 --------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (in thousands)
Three Months Ended Years Ended December 31, December 31, -------------------------------------------------------------------------------------------------------------- REVENUES 2002 2001 2002 2001 -------------------------------------------------------------------------------------------------------------- Base Rents $1,546 $ 904 $3,955 $3,617 Other Income 1 3 $ 10 19 Tenant escalations and reimbursements 92 159 248 322 -------------------------------------------------------------------------------------------------------------- Total Operating Revenues 1,639 1,066 4,213 3,958 -------------------------------------------------------------------------------------------------------------- EXPENSES -------------------------------------------------------------------------------------------------------------- Property operating expenses 158 178 648 663 Real estate taxes 140 118 536 475 Marketing, general and administrative 13 11 48 53 Depreciation and amortization 230 229 919 917 Interest expense 279 290 1,131 1,189 -------------------------------------------------------------------------------------------------------------- Total Expenses 820 826 3,282 3,297 -------------------------------------------------------------------------------------------------------------- Net Income $ 819 $ 240 $ 931 $ 661 --------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 38 ------------------------------------------------------------------------------- RSVP (INCLUDING IT'S EQUITY INVESTMENTS) COMBINED BALANCE SHEETS (In thousands)
(UNAUDITED) (AUDITED) DECEMBER 31, DECEMBER 31, 2002 2001 ---------------- --------------- ASSETS ------ Cash and other assets $ 380,964 $ 358,985 Equity investments $ 106,228 $ 135,416 --------- --------- Total assets $ 487,192 $ 494,401 ========= ========= LIABILITIES ----------- Accounts payable and accrued expenses $ 20,021 10,546 Long term debt $ 251,977 234,449 Other liabilities $ 8,370 15,878 --------- --------- Total liabilities $ 280,368 $ 260,873 --------- --------- MEMBER'S EQUITY (a) ------------------- Preferred equity $ 129,702 153,340 Common equity $ 84,826 87,892 Offering costs (7,704) (7,704) --------- --------- Total member's equity 206,824 233,528 --------- --------- --------- --------- Total liabilities and member's equity $ 487,192 $ 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 December 31, 2002 39 ------------------------------------------------------------------------------- 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 office 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 December 31, 2002 40 ------------------------------------------------------------------------------- RSVP SUMMARIZED PLATFORM BALANCE SHEETS AS OF DECEMBER 31, 2002 (UNAUDITED) (Amounts in thousands)
------------------------------------------------------------------------- STUDENT MEDICAL PRIVATIZATION (3) HOUSING OFFICE PARKING ------------------------------------------------------------------------- ASSETS ------ Real estate assets $ 44,809 $285,470 $ 59,184 $ 56,183 Other assets 10,187 34,977 47,859 $ 6,241 ----------------------------------------------------------- Total Assets $ 54,996 $320,447 $107,043 $ 62,424 =========================================================== LIABILITIES ----------- Accounts payable & other liabilities $ -- $ 20,542 $ 1,482 $ 3,102 Property related debt 251,977 44,156 $ 31,497 ----------------------------------------------------------- Total Liabilities 0 272,519 45,638 34,599 ----------------------------------------------------------- PARTNER'S CAPITAL ----------------- RSVP / RAP capital 54,996 47,694 57,533 $ 19,166 Other partners (2) 0 234 3,872 $ 8,659 ----------------------------------------------------------- Total Partner's Capital 54,996 47,928 61,405 27,825 ----------------------------------------------------------- Total Liabilities and Partner's Capital $ 54,996 $320,447 $107,043 $ 62,424 ===========================================================
----------------------------------------------------- NET LEASED RESORTS RETAIL OTHER (1) ----------------------------------------------------- ASSETS ------ Real estate assets $62,282 $ 2,866 $ -- Other assets 7,701 4,832 7,452 --------------------------------------- Total Assets $69,983 $ 7,698 $ 7,452 ======================================= LIABILITIES ----------- Accounts payable & other liabilities $ 4,930 $ 1,608 $ -- Property related debt 24,296 2,030 0 --------------------------------------- Total Liabilities 29,226 3,638 0 --------------------------------------- PARTNER'S CAPITAL ----------------- RSVP / RAP capital 21,138 4,060 7,452 Other partners (2) 19,619 0 0 --------------------------------------- Total Partner's Capital 40,757 4,060 7,452 --------------------------------------- Total Liabilities and Partner's Capital $69,983 $ 7,698 $ 7,452 =======================================
------------------------------------------------------------------------------- (1) Represents 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 values of assets received through settlement. Facility was sold on January 17, 2003. ------------------------------------------------------------------------------- Reckson Associates Realty Corp. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2002 41