MELVILLE, N.Y.--(BUSINESS WIRE)--Dec. 17, 2004--Reckson Associates Realty Corp. (NYSE: RA) announced today that Moody's Investors Service upgraded its ratings of Reckson Operating Partnership, L.P. senior unsecured debt to an investment grade rating of Baa3 from Ba1. The ratings outlook is stable.

These rating actions result from a number of significant balance sheet enhancements executed by Reckson during 2004. During this period Reckson raised over $436 million in common equity in three separate issuances. Reckson also converted or redeemed approximately $240 million of Preferred Equity, reducing its fixed charges by approximately $18 million. These actions have resulted in a material reduction to Reckson's leverage ratio and significant improvement to Reckson's coverage ratios.

Michael Maturo, Reckson's Chief Financial Officer stated, "We have restructured our balance sheet over the last year to demonstrate our commitment to the unsecured debt markets. Moody's ratings upgrade is a substantial recognition of our efforts."

According to Moody's, Reckson's ratings are supported by its high quality office portfolio in high barrier entry markets, diverse tenant mix, manageable near-term lease expirations, staggered tenant maturities, and improved transparency and corporate governance. Moody's notes that Reckson's office portfolio continues to outperform its improving sub-markets. Its occupancy has increased to 94% from 91% at year-end 2003; further demonstrating Reckson's capacity to create value in its office portfolio.

Scott Rechler, Reckson's Chief Executive Officer stated, "A key part of the reorganization plan that we embarked upon a year ago was to regain the Company's investment grade rating. We are very pleased by the ratings upgrade announced by Moody's today."

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, with 87 properties comprised of approximately 15.9 million square feet either owned or controlled, or under contract. 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 (including FrontLine Capital Group); 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.

CONTACT:
Reckson Associates Realty Corp.
Scott Rechler, CEO
or
Michael Maturo, CFO
631-694-6900
Facsimile: 631-622-6790

SOURCE: Reckson Associates Realty Corp.