MELVILLE, N.Y., Jan 12, 2006 (BUSINESS WIRE) -- Reckson Associates Realty Corp. (NYSE: RA) announced today that the Company has completed record level leasing activity in the fourth quarter of 2005 totaling approximately 61 lease transactions, encompassing approximately 918,000 square feet throughout the Company's New York Tri-State area markets. Of the 918,000 square feet leased, 47% were new leases and 53% were renewals.

Reckson also announced that Citibank has signed a long-term lease to occupy approximately 203,000 square feet of the Company's newly completed ground-up development project at 68 South Service Road, in Melville, Long Island, bringing the building to approximately two-thirds occupancy significantly ahead of forecast.

Reckson completed construction of 68 South Service Road, a 305,000 square foot Class A office building, on budget and ahead of schedule during the fourth quarter of 2005. Reckson anticipates a total investment at 68 South Service Road of approximately $61 million and a stabilized net operating income (NOI) yield of approximately 10%.

Scott Rechler, Reckson's President and Chief Executive Officer, stated, "Our fourth quarter record level of leasing activity reflects that the New York Tri-State area markets continue to gain strength as demand for quality office space continues to outpace supply." Mr. Rechler continued, "We are extremely pleased with the accelerated lease-up of our development project at 68 South Service Road and believe it validates our ability to exceed expectations as we execute our value creation strategy."

Reckson currently has a value creation pipeline with approximately $150 million of active ground-up development projects and approximately $350 million of active redevelopment/repositioning projects.

Salvatore Campofranco, Reckson's Executive Vice President and Chief Operating Officer, noted, "The recent Citibank transactions give indication that our strategy of providing premier services and building long-term relationships with some of the largest office users in the New York Tri-State region is effective. In addition to the 203,000 square foot lease at 68 South Service Road, we have also signed a lease renewal with Citibank for approximately 109,000 square feet at Stamford Towers, in Stamford, Connecticut. These two lease transactions cap off a year in which we also completed a 1.4 million square foot sale lease-back with Citibank at One Court Square in Long Island City."

"In developing 68 South Service Road, we sought to build one of the premier Class A office buildings on Long Island. Citibanks's decision to lease 203,000 square feet at the property validates that we have achieved our objective and further enhances the building's position in the market," commented Ken Bauer, Reckson's Senior Vice President and Co-Director of the Long Island Division.

The building is situated adjacent to the Company's 2001 ground-up development at 58 South Service Road, which is 96% occupied, and completes the three building 711,000 square foot Reckson Executive Office Park. 68 South Service Road has a dramatic four-story granite and glass facade and features hi-tech conference and training rooms, concierge service, cafe, fitness center, on-site wireless networking and an indoor executive parking garage, providing the highest quality services and amenities which continue to make Reckson the "Landlord of Choice" in the New York Tri-State area.

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 Class A office 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 properties in the New York Tri-State area, and wholly owns, has substantial interests in, or has under contract, a total of 103 properties comprised of approximately 20.1 million square feet. For additional information on Reckson Associates Realty Corp., please visit the Company's web site at www.reckson.com.

Certain matters discussed herein, including guidance concerning the Company's future performance, 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; financial condition of our tenants; changes in the supply of and demand for office properties in the New York Tri-State area; changes in interest rate levels; changes in the Company's credit ratings; changes in the Company's cost of and access to capital; 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, real estate taxes, security and insurance costs; repayment of debt owed to the Company by third parties; risks associated with joint ventures; liability for uninsured losses or environmental matters; 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 press release.

SOURCE: Reckson Associates Realty Corp.

Reckson Associates Realty Corp.
Scott Rechler, CEO
Michael Maturo, CFO
Salvatore Campofranco, COO
Ken Bauer, SVP and Co-Director LI
631-694-6900 (Phone)
631-622-6790 (Facsimile)
or
Rubenstein Communications
Media:
Rick Matthews, 212-843-8267