MELVILLE, N.Y.--(BUSINESS WIRE)--June 29, 2005--Reckson Associates Realty Corp. (NYSE: RA) announced today that the underwriter of the Company's June 21, 2005 offering of $250 million in principal amount of 4.00% exchangeable senior debentures due June 15, 2025 exercised all of its over-allotment option. The underwriter has exercised its option to purchase an additional $37.5 million in principal amount of debentures from the Company. Combined with the earlier sale, the net proceeds from the offering, after the underwriter's discounts and expenses, are anticipated to be approximately $281.6 million.

Citigroup Global Markets Inc. (Citigroup) acted as the underwriter for this transaction. A copy of the prospectus supplement and related prospectus in connection with the offering may be obtained from the underwriter.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale or any offer to buy any securities in any jurisdiction in which such offer or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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 91 properties comprised of approximately 17.9 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; 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 / Michael Maturo, CFO, 631-694-6900
Facsimile, 631-622-6790
or
Media Contact:
Rubenstein Communications
Rick Matthews, 212-843-8267
SOURCE: Reckson Associates Realty Corp.