Reports Same Property NOI Growth of 10.6% and Same Space Average Rent Growth of 24.0% in its Office Properties and 17.9% in its Industrial/R&D Properties for the Fourth Quarter of 2000
MELVILLE, N.Y.--(BUSINESS WIRE)--March 5, 2001--
Reckson Associates Realty Corp. (NYSE:RA) today reported fourth
quarter diluted Funds from Operations ("FFO") of $.67 per share, as
compared to FFO of $.59 per share for the fourth quarter of 1999,
representing a per share increase of 13.6%.
The Company also reported results for the year ended December 31,
2000. Diluted FFO for the year was $2.59 per share on total revenues
of $509,938,000. This compares to diluted FFO for the year ended
December 31, 1999 of $2.31 per share resulting in an FFO per share
increase of 12.1%.
Commenting on the fourth quarter and year end results, Scott
Rechler, Reckson's Co-Chief Executive Officer and President, stated,
"2000 was an extremely strong year for Reckson. We capitalized on the
strong market conditions by leasing a record 4 million square feet
including same space leases that averaged 17.6% higher than the
expiring leases and stabilized over $500 million of value creation
projects generating yields in excess of 12%."
During the fourth quarter of 2000, Reckson:
-
Generated a 10.6% increase (cash) and 10.2% increase (GAAP) in
same property NOI for the fourth quarter of 2000. Generated a
-
5.2% increase (cash) and 6.7% increase (GAAP) in same property
NOI for the 12 months ended December 31, 2000.
-
Generated same space average rent growth of 24.0% for Office
and 17.9% for Industrial/R&D for the fourth quarter of 2000.
Generated same space average rent growth of 17.5% for Office
and 18.7% for Industrial/R&D for the 12 months ended December
31, 2000.
-
Executed 295 leases totaling 3,980,168 square feet during
2000.
-
Placed in operation 2.9 million square feet of value creation
projects for a total investment of $528 million that are
estimated to generate an average NOI return of 12.2%.
-
Withdrew offer to purchase the tract of land which is part of
the Pilgrim State property from New York State.
Commenting on this quarter's reporting, Michael Maturo, Reckson's
Chief Financial Officer, said, "2000 was another year of significant
accomplishments for Reckson. We continued to meet our year over year
long-term FFO growth target of 8% to 12%, while maintaining a strong
and flexible balance sheet to fund our future value creation
initiatives."
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 WEB CAST
The Company's executive management team led by Co-CEO and
President Scott Rechler, will host a conference call outlining fourth
quarter results on Monday, March 5, 2001 at 3:00 p.m. EST. The
conference call can be accessed by dialing (800) 230-1096
(internationally (612) 288-0340). 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 fourth quarter results.
A replay of the conference call will be available telephonically
from March 5, 2001 at 7:00 p.m. EST through March 12, 2001 at 11:59
p.m. EST. The telephone number for the replay is (800) 475-6701,
passcode 570410. A replay of the conference call via the Company's web
site will also be available through March 12, 2001 at 11:59 p.m. EST.
(FINANCIAL STATEMENTS ATTACHED)
A copy of the supplemental materials on the Company's fourth
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; 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 Year Ended
December 31, December 31,
2000 1999 2000 1999
Property Operating Revenues:
Base rents $105,974 $89,388 $397,327 $324,146
Tenant escalations
and reimbursements 14,020 12,465 54,750 44,989
Total property
operating revenues 119,994 101,853 452,077 369,135
Property Operating expenses:
Operating expenses 23,805 19,420 91,265 72,023
Real estate taxes 17,465 15,448 66,191 53,971
Total property
operating expenses 41,270 34,868 157,456 125,994
Net Operating Income 78,724 66,985 294,621 243,141
Gross Margin % 65.61% 65.77% 65.17% 65.87%
Other Income:
Gain (loss) on dispositions
of real estate (3,200) - 18,669 10,052
Other 9,728 8,608 39,192 23,966
Total other income 6,528 8,608 57,861 34,018
Other Expenses:
Interest expense 23,670 20,700 96,337 74,320
Marketing, general and
administrative 7,626 8,052 27,371 24,293
Depreciation and amortization 25,028 18,418 92,547 74,504
Total other expenses 56,324 47,170 216,255 173,117
Minority partners' interests in
consolidated partnerships 3,348 1,869 9,120 6,802
Income before extraordinary loss,
limited partners' minority
interest in the operating
partnership, distributions to
preferred unit holders and
dividends to preferred
shareholders 25,580 26,554 127,107 97,240
Less:
Extraordinary loss - - 1,396 555
Limited partners' minority
interest in the operating
partnership 2,256 2,326 11,669 9,407
Preferred unit distributions
and preferred dividends 6,085 7,986 28,012 27,001
Net income available to
common shareholders $17,239 $16,242 $86,030 $60,277
Net Income available to:
Class A common shareholders $12,745 $11,675 $62,989 $47,529
Class B common shareholders 4,494 4,567 23,041 12,748
Total net income $17,239 $16,242 $86,030 $60,277
Basic weighted average common
shares outstanding:
Class A common shareholders 45,326 40,375 43,070 40,270
Class B common shareholders 10,284 10,469 10,284 6,744
Basic net income per weighted
average common share before
extraordinary loss:
Class A common shareholders $.28 $.29 $1.49 $1.19
Extraordinary loss per Class A
common share - - (.03) (.01)
Basic net income per
weighted average Class A
common share $.28 $.29 $1.46 $1.18
Class B common shareholders $.44 $.44 $2.28 $1.91
Extraordinary loss per Class B
common share - - (.04) (.02)
Basic net income per weighted
average Class B common share $.44 $.44 $2.24 $1.89
Diluted weighted average common
shares outstanding:
Class A common shareholders 45,954 40,748 43,545 40,676
Class B common shareholders 10,284 10,469 10,284 6,744
Diluted net income per weighted
average common share:
Class A common shareholders $.28 $.29 $1.45 $1.17
Class B common shareholders $.31 $.32 $1.59 $1.26
Selected Balance Sheet Data (in thousands) December 31,
2000 1999
Commercial real estate investments,
at cost, before depreciation $2,770,607 $2,208,399
Total assets $2,998,030 $2,733,878
Mortgage notes payable $728,971 $459,174
Unsecured credit facility and term loan $216,600 $372,600
Senior unsecured notes $449,385 $449,313
Total liabilities $1,519,150 $1,390,332
Stockholders' equity $1,112,659 $1,116,956
Total debt to total market capitalization 40.6% 42.3%
Reckson Associates Realty Corp. (NYSE:RA)
Funds From Operations
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
Net income available to common
shareholders $17,239 $16,242 $86,030 $60,277
Adjustments for basic funds
from operations:
Add:
Limited partners' minority
interest in the operating
partnership 2,256 2,326 11,669 9,407
Real estate depreciation
and amortization 24,368 17,719 90,552 72,124
Minority partners' interests
in consolidated partnerships 3,348 1,869 9,120 6,802
Extraordinary loss - - 1,396 555
Less:
Gain (loss) on dispostions
of real estate (3,200) - 18,669 10,052
Amounts distributable to
minority partners in
consolidated partnerships 5,552 2,262 12,316 8,293
Basic Funds From
Operations ("FFO") 44,859 35,894 167,782 130,820
Add:
Dividends and distributions
on dilutive shares and units 7,679 9,579 34,387 30,861
Diluted FFO $52,538 $45,473 $202,169 $161,681
Basic FFO calculations:
Weighted average common
shares outstanding 55,610 50,843 53,354 47,014
Weighted average units of
limited partnership interest
outstanding 7,695 7,701 7,696 7,705
Basic weighted average
common shares and units
outstanding 63,305 58,544 61,050 54,719
Basic FFO per weighted average
common share or unit $.71 $.61 $2.75 $2.39
Basic weighted average
dividends or distributions
per share or unit $.42 $.41 $1.67 $1.55
Basic FFO payout ratio 59.5% 66.1% 60.7% 64.8%
Diluted FFO calculations:
Basic weighted average common
shares and units outstanding 63,305 58,544 61,050 54,719
Adjustments for dilutive FFO
weighted average shares and
units outstanding:
Add:
Weighted average common stock
equivalents 628 373 475 406
Weighted average shares of
Series A Preferred Stock 8,060 8,060 8,060 8,060
Weighted average shares of
Series B Preferred Stock 1,919 5,758 3,713 3,360
Weighted average shares of
minority partners' preferred
interest 3,454 3,454 3,454 2,101
Weighted average units of
preferred limited partnership
interest 1,367 1,367 1,367 1,367
Dilutive FFO weighted average
shares and units outstanding 78,733 77,556 78,119 70,013
Diluted FFO per weighted
average share or unit $.67 $.59 $2.59 $2.31
Diluted weighted average
dividends or distributions
per share or unit $.41 $.40 $1.64 $1.53
Diluted FFO payout ratio 62.1% 67.7% 63.3% 66.1%
Reckson Associates Realty Corp. (NYSE:RA)
Cash Available for Distribution
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
Basic Funds From Operations $44,859 $35,894 $167,782 $130,820
Adjustments for basic cash
available for distribution:
Less:
Straight line rents (Note a) 13,893 3,963 38,884 10,563
Non-incremental capitalized
tenant improvements and
leasing commissions 2,221 2,404 11,203 6,077
Non-incremental capitalized
improvements 1,002 1,043 4,775 3,355
Basic Cash Available for
Distribution ("CAD") 27,743 28,484 112,920 110,825
Add:
Dividends and distributions
on dilutive shares and units - 9,579 1,088 30,861
Diluted CAD $27,743 $38,063 $114,008 $141,686
Basic CAD calculations:
Weighted average common
shares outstanding 55,610 50,843 53,354 47,014
Weighted average units of
limited partnership interest
outstanding 7,695 7,701 7,696 7,705
Basic weighted average common
shares and units outstanding 63,305 58,544 61,050 54,719
Basic CAD per weighted average
common share or unit $.44 $.49 $1.85 $2.03
Basic weighted average dividends
or distributions per share
or unit $.42 $.41 $1.67 $1.55
Basic CAD payout ratio 96.2% 83.2% 90.2% 76.5%
Diluted CAD calculations:
Basic weighted average common
shares and units outstanding 63,305 58,544 61,050 54,719
Adjustments for dilutive CAD
weighted average shares and
units outstanding:
Add:
Weighted average common
stock equivalents 628 373 475 406
Weighted average shares of
Series A Preferred Stock - 8,060 - 8,060
Weighted average shares of
Series B Preferred Stock - 5,758 - 3,360
Weighted average shares of
minority partners' preferred
interest - 3,454 - 2,101
Weighted average units of
preferred limited partnership
interest - 1,367 598 1,367
Dilutive CAD weighted average
shares and units outstanding 63,933 77,556 62,123 70,013
Diluted CAD per weighted
average share or unit $.43 $.49 $1.84 $2.02
Diluted weighted average
dividends or distributions
per share or unit $.42 $.40 $1.67 $1.53
Diluted CAD payout ratio 97.0% 80.8% 90.8% 75.5%
Notes:
(a) Includes straight line rental income attributable to the property
located at 919 Third Avenue, New York, N.Y. of $9,765, $755,
$23,324 and $1,750, respectively.
CONTACT:
Reckson Associates Realty Corp., Melville
Scott Rechler/Michael Maturo, 631/694-6900
