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