Reports Same Property NOI Growth of 14.9% and Same Space Average Rent Growth of 22.9% in its Office Properties and 24.5% in its Industrial/R&D Properties for the First Quarter of 2001
MELVILLE, N.Y.--(BUSINESS WIRE)--May 2, 2001--
Reckson Associates Realty Corp. (NYSE: RA) today reported first
quarter diluted Funds from Operations ("FFO") of $.69 per share, as
compared to FFO of $.62 per share for the first quarter of 2000,
representing a per share increase of 11.3%.
Highlights from the first quarter include:
-
Generated a 14.9% increase (cash) and 13.4% increase (GAAP) in
same property NOI for the first quarter of 2001.
-
Generated same space rent growth of 22.9% (GAAP) and 11.6% (cash)
for Office and 24.5% (GAAP) and 12.9% (cash) for Industrial/R&D
for the first quarter of 2001.
-
Actively pursuing capital recycling program with over $600 million
of assets targeted for disposition.
-
Successfully capitalized on strong market conditions by placing
$1.1 billion of development projects into service and reducing
lease expiration exposure to less than 15% of portfolio through
2002.
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 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 188
properties comprised of approximately 21.3 million square feet either
owned and controlled, directly or indirectly, or under contract. For
additional information on Reckson Associates Realty Corp. please visit
the Company's web site at www.reckson.com.
CONFERENCE CALL AND WEBCAST
The Company's executive management team led by Co-CEO and
President Scott Rechler, will host a conference call outlining first
quarter results on Thursday, May 3, 2001 at 3:00 p.m. EST. The
conference call can be accessed by dialing (800) 553-0327
(internationally (612) 332-0530). No passcode is required. The live
conference call in a listen only mode will also be available through
the Company's web site at www.reckson.com in the Investor Relations
section with an accompanying slide show presentation outlining the
Company's first quarter results.
A replay of the conference call will be available telephonically
from May 3, 2001 at 7:00 p.m. EST through May 11, 2001 at 11:59 p.m.
EST. The telephone number for the replay is (800) 475-6701, passcode
582728. A replay of the conference call via the Company's web site
will also be available through May 11, 2001 at 11:59 p.m. EST.
(FINANCIAL STATEMENTS ATTACHED)
A copy of the supplemental materials on the Company's first
quarter results is available by calling or written request to: Susan
McGuire at Reckson Associates Realty Corp., 225 Broadhollow Road,
Melville, New York 11747-0983, telephone number (631) 622-6746.
This information contains forward-looking information that is
subject to certain risks, trends and uncertainties that could cause
actual results to differ materially from those projected. Among those
risks, trends and uncertainties are the general economic climate; the
supply of and demand for office and industrial properties in the New
York Tri-State area; interest rate levels; downturns in rental rate
levels in the company's markets; the availability of financing;
repayment of debt owed the Company; 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 information contained in this press
release.
Reckson Associates Realty Corp. (NYSE:RA)
Consolidated Statements of Income
(in thousands, except per share amounts)
Three Months Ended
March 31,
------------------------------
2001 2000
------------ ------------
Property Operating Revenues:
Base rents $ 107,494 $ 94,400
Tenant escalations and
reimbursements 15,945 12,847
------------ ------------
Total property operating
revenues 123,439 107,247
------------ ------------
Property Operating Expenses:
Operating expenses 23,770 21,940
Real estate taxes 17,224 16,349
------------ ------------
Total property operating
expenses 40,994 38,289
------------ ------------
Net Operating Income 82,445 68,958
------------ ------------
Gross Margin % 66.79% 64.30%
Other Income 7,447 10,412
------------ ------------
Other Expenses:
Interest expense 23,631 23,840
Marketing, general and
administrative 7,497 6,438
Depreciation and amortization 23,521 21,012
------------ ------------
Total other expenses 54,649 51,290
------------ ------------
Minority partners' interests
in consolidated partnerships 5,755 1,975
------------ ------------
Income before limited partners'
minority interest in the operating
partnership, distributions to preferred
unit holders and dividends to preferred
shareholders 29,488 26,105
Less:
Limited partners' minority interest
in the operating partnership 2,715 2,278
Preferred unit distributions and
preferred dividends 6,085 7,985
------------ ------------
Net income available to
common shareholders $ 20,688 $ 15,842
============ ============
Net Income available to:
Class A common shareholders $ 15,308 $ 11,446
Class B common shareholders 5,380 4,396
------------ ------------
Total net income $ 20,688 $ 15,842
============ ============
Basic weighted average common shares
outstanding:
Class A common shareholders 45,483,544 40,382,182
Class B common shareholders 10,283,513 10,283,598
Basic net income per weighted average
common share:
Class A common shareholders $ .34 $ .28
Class B common shareholders $ .52 $ .43
Diluted weighted average common shares
outstanding:
Class A common shareholders 45,949,816 40,709,045
Class B common shareholders 10,283,513 10,283,598
Diluted net income per weighted average
common share:
Class A common shareholders $ .33 $ .28
Class B common shareholders $ .37 $ .31
------------------------------
Selected Balance Sheet Data
(in thousands) March 31,
------------------------------
2001 2000
------------ ------------
Commercial real estate investments, at
cost, before depreciation $ 2,811,894 $ 2,372,150
============ ============
Total assets $ 3,063,644 $ 2,904,333
============ ============
Mortgage notes payable $ 727,088 $ 527,508
============ ============
Unsecured credit facility and term loan $ 304,600 $ 482,600
============ ============
Senior unsecured notes $ 449,404 $ 449,330
============ ============
Total liabilities $ 1,584,621 $ 1,565,981
============ ============
Stockholders' equity $ 1,112,363 $ 1,112,501
============ ============
Total debt to total market
capitalization 44.3% 47.2%
============ ============
Reckson Associates Realty Corp. (NYSE:RA)
Funds From Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
------------------------------
2001 2000
------------ ------------
Net income available to common
shareholders $ 20,688 $ 15,842
Adjustments for basic funds from
operations:
Add:
Limited partners' minority interest
in the operating partnership 2,715 2,278
Real estate depreciation and
amortization 22,988 20,616
Minority partners' interests in
consolidated partnerships 5,755 1,975
Less:
Amounts distributable to minority
partners in consolidated partnerships 5,701 2,381
------------ ------------
Basic Funds From Operations ("FFO") $ 46,445 $ 38,330
Add:
Dividends and distributions on
dilutive shares and units 7,679 9,579
------------ ------------
Diluted FFO $ 54,124 $ 47,909
============ ============
Basic FFO calculations:
Weighted average common shares
outstanding 55,767 50,666
Weighted average units of limited
partnership interest outstanding 7,693 7,700
------------ ------------
Basic weighted average common shares
and units outstanding 63,460 58,366
============ ============
Basic FFO per weighted average common
share or unit $ .73 $ .66
Basic weighted average dividends or
distributions per share or unit $ .42 $ .40
Basic FFO payout ratio 57.5% 61.6%
Diluted FFO calculations:
Basic weighted average common shares
and units outstanding 63,460 58,366
Adjustments for dilutive FFO weighted
average shares and units outstanding:
Add:
Weighted average common stock
equivalents 466 327
Weighted average shares of Series A
Preferred Stock 8,060 8,060
Weighted average shares of Series B
Preferred Stock 1,919 5,758
Weighted average shares of minority
partners' preferred interest 3,454 3,454
Weighted average units of preferred
limited partnership interest 1,367 1,367
------------ ------------
Dilutive FFO weighted average shares
and units outstanding 78,726 77,332
============ ============
Diluted FFO per weighted average share
or unit $ .69 $ .62
Diluted weighted average dividends or
distributions per share or unit $ .41 $ .40
Diluted FFO payout ratio 60.2% 64.0%
Reckson Associates Realty Corp. (NYSE:RA)
Cash Available for Distribution
(in thousands, except per share amounts)
Three Months Ended
March 31,
------------------------------
2001 2000
------------ ------------
Basic Funds From Operations $ 46,445 $ 38,330
Adjustments for basic cash available
for distribution:
Less:
Straight line rents (Note a) 11,159 4,538
Non-incremental capitalized tenant
improvements and leasing commissions 2,646 2,870
Non-incremental capitalized
improvements 635 1,251
------------ ------------
Basic Cash Available for Distribution
("CAD") 32,005 29,671
Add:
Dividends and distributions on
dilutive shares and units 1,866 9,579
------------ ------------
Diluted CAD $ 33,871 $ 39,250
============ ============
Basic CAD calculations:
Weighted average common shares
outstanding 55,767 50,666
Weighted average units of limited
partnership interest outstanding 7,693 7,700
------------ ------------
Basic weighted average common shares
and units outstanding 63,460 58,366
============ ============
Basic CAD per weighted average common
share or unit $ .50 $ .51
Basic weighted average dividends or
distributions per share or unit $ .42 $ .40
Basic CAD payout ratio 83.4% 79.6%
Diluted CAD calculations:
Basic weighted average common shares
and units outstanding 63,460 58,366
Adjustments for dilutive CAD weighted
average shares and units outstanding:
Add:
Weighted average common stock
equivalents 466 327
Weighted average shares of Series A
Preferred Stock --- 8,060
Weighted average shares of Series B
Preferred Stock --- 5,758
Weighted average shares of minority
partners' preferred interest 3,454 3,454
Weighted average units of preferred
limited partnership interest 598 1,367
------------ ------------
Dilutive CAD weighted average shares
and units outstanding 67,978 77,332
============ ============
Diluted CAD per weighted average share
or unit $ .50 $ .51
Diluted weighted average dividends or
distributions per share or unit $ .42 $ .40
Diluted CAD payout ratio 84.0% 78.1%
Notes:
(a) Includes straight line rental income attributable to the property located at 919 Third Avenue, New York, N. Y. of $7,504 and $1,075, respectively.
CONTACT:
Reckson Associates Realty Corp.
Scott Rechler, President and Co-CEO
or
Michael Maturo, CFO
631/694-6900 (Phone)
631/622-6790 (Facsimile)
