MELVILLE, N.Y.--(BUSINESS WIRE)--March 1, 2006--Reckson Associates
Realty Corp. (NYSE: RA) today reported diluted funds from operations
(FFO) of $27.4 million, or $0.32 per share for the fourth quarter of
2005 including a $23.4 million, or $0.28 per share charge recognized
in connection with Reckson's long-term incentive compensation plan.
When adjusted for this charge the Company reported diluted FFO of
$50.8 million, or $0.60 per share for the fourth quarter of 2005. This
compares to diluted FFO of $35.3 million, or $0.44 per share for the
fourth quarter of 2004 including a $9.1 million, or $0.11 per share
accounting charge recognized in connection with the redemption of
Reckson's preferred stock. When adjusted for this accounting charge
the Company reported diluted FFO of $44.4 million, or $0.55 per share
for the fourth quarter of 2004.
The Company also reported diluted FFO of $175.2 million, or $2.06
per share for the year ended December 31, 2005 including a $23.4
million, or $0.28 per share charge recognized in connection with
Reckson's long-term incentive compensation plan. When adjusted for
this charge the Company reported diluted FFO of $198.6 million, or
$2.34 per share for the year ended December 31, 2005. This compares to
diluted FFO of $145.6 million, or $1.99 per share for the year ended
December 31, 2004 including a $15.8 million, or $0.21 per share
accounting charge recognized in connection with the redemption of
Reckson's preferred stock. When adjusted for this accounting charge
the Company reported diluted FFO of $161.4 million, or $2.20 per share
for the year ended December 31, 2004.
Reckson reported net income allocable to common shareholders of
$49.0 million, or diluted earnings per share (EPS) of $0.59 for the
fourth quarter of 2005 including $54.1 million related to gains on
sales of real estate and a $22.8 million charge for the aforementioned
compensation plan, as compared to $4.5 million, or diluted EPS of
$0.06 for the fourth quarter of 2004 including $0.7 million related to
gains on sales of real estate and the aforementioned $9.1 million
redemption charges.
The Company also reported net income allocable to common
shareholders of $197.6 million, or diluted EPS of $2.40 for the year
ended December 31, 2005 including $150.5 million related to gains on
sales of real estate and a $22.7 million charge for the aforementioned
compensation plan, as compared to $42.4 million, or diluted EPS of
$0.61 for the year ended December 31, 2004 including $11.8 million
related to gains on sales of real estate and the aforementioned $15.8
million redemption charges.
Fourth Quarter Highlights Include:
-- Reported FFO growth of 9% per share before non-recurring
charges
-- Completed record leasing activity totaling 916,518 square feet
including a renewal rate of 79%
-- Reported overall same property office occupancy of 94.6%
-- Increased office same property NOI by 4.2% (on a straight-line
rent basis)
-- Increased consolidated office rent performance on renewal and
replacement space 15.4% (on a straight-line rent basis)
-- Completed approximately $569 million of investments and
approximately $470 million of dispositions in the quarter -
capping off a year in which the Company completed
approximately $1.3 billion of investments and approximately
$900 million of joint ventures and non-core asset dispositions
Commenting on the Company's performance, Scott Rechler, Reckson's
President and Chief Executive Officer, stated, "2005 was an
exceptional year for Reckson, not only for what we accomplished but
also for how we positioned the Company for future growth. We continued
to generate sector leading portfolio performance, record investment
activity and execute on our value creation activities. In addition,
during 2005, we executed a series of strategic initiatives that we
believe will position Reckson for continued outperformance. We
enhanced our capital recycling capabilities by becoming the first U.S.
REIT to independently launch an Australian LPT, we 'match funded'
almost $2 billion of transactions that will enhance the internal
growth prospects and quality profile of our core portfolio, and we
accelerated the execution of our value creation pipeline that will
provide us with almost 2 million square feet of prime inventory to
lease in this strong market environment."
A reconciliation of net income allocable to common shareholders to
FFO is in the financial statements accompanying this press release.
Net income allocable to common shareholders is the GAAP measure the
Company believes to be the most directly comparable to FFO.
Summary Portfolio Performance
The Company reported overall same property office occupancy at
December 31, 2005 of 94.6%, as compared to 94.2% at September 30,
2005. The Company reported overall same property portfolio occupancy
of 93.7% at December 31, 2005, as compared to 93.1% at September 30,
2005.
The Company also reported overall office occupancy at December 31,
2005 of 92.3%, as compared to 94.1% at September 30, 2005. The Company
reported overall portfolio occupancy of 91.5% at December 31, 2005, as
compared to 93.0% at September 30, 2005. Overall office and portfolio
occupancy at December 31, 2005 includes the 1.6 million square foot,
Westchester office portfolio the Company acquired on December 29, 2005
which was approximately 70% occupied.
Office same property net operating income (property operating
revenues less property operating expenses) (NOI), on a pro rata
ownership basis, before termination fees, for the fourth quarter of
2005 increased 4.2% (on a straight-line rent basis) and 2.3% (on a
cash basis) compared to the fourth quarter of 2004. Portfolio same
property NOI, on a pro rata ownership basis, before termination fees,
for the fourth quarter of 2005 increased 3.7% (on a straight-line rent
basis) and 2.2% (on a cash basis) compared to the fourth quarter of
2004.
Office same property NOI, on a pro rata ownership basis, before
termination fees, for the year ended December 31, 2005 increased 6.7%
(on a straight-line rent basis) and 3.7% (on a cash basis) compared to
the year ended December 31, 2004. Portfolio same property NOI, on a
pro rata ownership basis, before termination fees, for the year ended
December 31, 2005 increased 6.3% (on a straight-line rent basis) and
3.5% (on a cash basis) compared to the year end December 31, 2004.
Other Highlights
Leasing Activity
-- Executed 61 lease transactions encompassing 916,518 square
feet during the fourth quarter of 2005
-- Office leasing transactions executed during the fourth quarter
of 2005 included a 79% renewal rate
-- Rent performance on renewal and replacement space, on a
consolidated basis, during the fourth quarter of 2005
increased 15.4% (on a straight-line rent basis) and 4.0% (on a
cash basis) in the office portfolio. Excluding the 175,737
square foot Verizon renewal, rent performance on renewal and
replacement space, on a consolidated basis, during the fourth
quarter of 2005 increased 18.4% (on a straight-line rent
basis) and 6.3% (on a cash basis) in the office portfolio.
-- Signed a long-term lease with Citibank 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
base building construction of 68 South Service Road, an
approximate 300,000 square foot Class A office building, ahead
of schedule during the fourth quarter of 2005. Reckson
anticipates a total investment at 68 South Service Road of
approximately $64 million and a stabilized net operating
income (NOI) yield of approximately 10%. The building is
situated adjacent to 58 South Service Road which was developed
by the Company in 2001 and is 95% occupied. 68 South Service
Road completes the three building, 707,000 square foot,
Reckson Executive Office Park.
Strategic Initiatives
-- Closed tranche II of the Australian listed property trust
transaction with Reckson New York Property Trust (the Trust)
(ASX: RNYCA), a Reckson-sponsored Australian listed property
trust. In the tranche II closing, Reckson sold three suburban
core plus office properties containing 760,986 square feet for
approximately $84.6 million, including the assignment of
approximately $20.1 million of mortgage debt. The tranche II
closing is part of a broader transaction in which Reckson has
agreed to sell a 75% interest in 25 suburban core plus office
properties located in the New York Tri-State area for a total
sales price of $563 million. Reckson will retain a 25%
indirect interest in the joint venture that will own these
properties. In September 2005, Reckson closed on tranche I of
the transaction when the Company sold 17 core plus office
properties for approximately $367 million. The final tranche
of the transaction is scheduled to be completed in October
2006 when the Company will sell the remaining five properties
to the joint venture. Subsequent to the closing of tranche II,
approximately $25.1 million of the proceeds are being held by
a qualified intermediary in anticipation of the acquisition of
a replacement property, thereby allowing Reckson to defer the
gain on some of the property sales under Section 1031 of the
Internal Revenue Code.
Acquisition Activity
-- Acquired a 1.6 million square foot office portfolio,
consisting of 14 buildings, concentrated within five business
parks, located in Westchester County, for approximately $255
million, or $163 per square foot, representing a discount to
replacement cost in excess of 35%. The portfolio is
approximately 70% occupied, compared to an approximate 91%
occupancy rate for the balance of Reckson's Westchester office
portfolio. This acquisition reflects Reckson's focus on
acquiring properties that offer the opportunity to apply the
Company's expertise to create value. Reckson is uniquely
equipped to increase the portfolio's value by effectively
addressing its vacancies, increasing rents, leveraging the
Company's scale to generate significant operating expense
efficiencies and to capitalize on the value-added nature of
the transaction based on its mix of properties in need of
redevelopment and repositioning. Reckson anticipates that
these operating initiatives will increase the portfolio's
initial GAAP net operating income (NOI) yield of approximately
5% to approximately 9% upon stabilization.
Shortly after closing, Reckson executed a contract to sell one of
the properties in this portfolio, 3 Gannett Drive, White Plains, a
161,000 square foot building, for approximately $35.3 million, or $219
per square foot. Giving effect to this sale, the purchase price on
this office portfolio is approximately $220 million, or $156 per
square foot. It is anticipated the closing will take place during the
first quarter of 2006.
Disposition Activity
-- Entered into a contract to sell One Orlando Center, a 355,000
square foot office building, located at 800 North Magnolia
Avenue, Orlando, Florida, for $70 million, or approximately
$197 per square foot, representing a cap rate of approximately
5.3%. This non-strategic operating asset is located outside of
Reckson's core New York Tri-State area markets. Reckson
estimates the Company will report a GAAP gain of approximately
$9.8 million on the sale. It is anticipated the closing will
take place during the first quarter of 2006.
Previously Announced Activity Completed During Fourth Quarter
-- Completed the recapitalization of One Court Square, a 1.4
million square foot, 50-story, Class A trophy office tower
located in Long Island City, with the sale of a 70% joint
venture interest in the property to a group of institutional
investors led by JPMorgan Investment Management, for
approximately $329.7 million, including the assignment of
$220.5 million of debt. Reckson acquired this office tower in
May 2005, for a total investment of $471 million, at a 6.5%
initial unleveraged cash flow yield and a 6.8% unleveraged
GAAP NOI yield. Based on the promoted structure and the sale
of the 70% interest, Reckson anticipates an unleveraged GAAP
NOI yield of approximately 8% and a leveraged GAAP return on
equity of approximately 13%.
-- Completed the disposition of 100 Wall Street, a 462,200 square
foot office building located in New York City, for
approximately $134 million, or $290 per square foot. 100 Wall
Street, an operating asset held outside Reckson's core midtown
Manhattan holdings, has substantial near-term rollover with
approximately 85,000 square feet, net of space already
committed, expiring over the next 12 months. Reckson provided
the purchaser with a mezzanine loan in the amount of $30.0
million that bears interest at 15% per annum, has a term of
two years and an approximate 85% loan-to-cost. Reckson has
recognized a GAAP gain of approximately $46.1 million on the
sale. In conjunction with this transaction, Reckson obtained a
release of the existing mortgage on 100 Wall Street and
provided two of the Company's suburban office properties as
replacement collateral.
-- Acquired a 1.1 million square foot, Class A trophy office
complex consisting of two 15-story office towers located in
Uniondale, Long Island, for approximately $240 million.
Reckson Plaza, formerly known as EAB Plaza, is the largest and
most recognizable office complex on Long Island and is
approximately 90% occupied and is leased to high credit
quality tenants. Reckson expects to generate an initial GAAP
NOI yield of approximately 6.5% and anticipates that its
property operating initiatives will result in cumulative
annual NOI growth in excess of 5.0%.
-- Acquired a 118,000 square foot, four-story, Class A office
building, located at 711 Westchester Avenue, White Plains,
Westchester, for approximately $24.8 million, or $210 per
square foot. Built in 1978, and fully renovated in 1997, the
building is a high quality asset situated on 10 acres and
offers a superior quality amenity package. The property is
well-located off I-287, at the intersection of I-684 and the
Hutchinson River Parkway, along the I-287 Platinum Mile
Corridor, in one of the five business parks which are part of
the Company's newly acquired 1.6 million square foot office
portfolio in Westchester County. The property is currently 94%
occupied and after the rollover of leases totaling
approximately 50,000 square feet in 2007, Reckson expects to
generate a stabilized NOI yield of approximately 8.2%.
-- Sold a single story flex-use office building, totaling 35,000
square feet, located at 48 Harbor Park Drive, Port Washington,
Long Island, to a user, for approximately $6.4 million, or
$182 per square foot. Reckson has recognized a GAAP gain of
approximately $2.8 million on the sale.
Earnings Guidance
During the Company's quarterly earnings conference call on March
2, 2006 management will discuss earnings guidance for 2006 diluted FFO
in the range of $2.45 to $2.53 per share. This guidance does not
include contingent and undetermined impact of the special
outperformance long-term incentive plan which vests on March 13, 2007
subject to achieving certain performance criteria.
Reconciliation of Earnings Guidance
The Company's guidance for diluted FFO is reconciled from GAAP net
income below:
Full-Year 2006
------------------
Low End High End
-------- --------
Net income allocable to common shareholders $ 2.16 $ 2.24
Add: Real estate depreciation and amortization 1.43 1.43
Less: Gain on sales of depreciable real estate 1.14 1.14
-------- --------
Diluted FFO Per Share $ 2.45 $ 2.53
======== ========
This guidance is based upon management's current estimates. Actual
results may differ materially. This information involves
forward-looking statements which are subject to uncertainties noted
below in the section titled Forward-Looking Statements.
Non-GAAP Financial Measures
Funds from Operations (FFO)
The Company believes that FFO is a widely recognized and
appropriate measure of performance of an equity REIT. The Company
presents FFO because it considers it an important supplemental measure
of the Company's operating performance and believes it is frequently
used by securities analysts, investors and other interested parties in
the evaluation of REITs, many of which present FFO when reporting
their results. FFO is intended to exclude GAAP historical cost
depreciation and amortization of real estate and related assets, which
assumes that the value of real estate diminishes ratably over time.
Historically, however, real estate values have risen or fallen with
market conditions. As a result, FFO provides a performance measure
that, when compared year over year, reflects the impact to operations
from trends in occupancy rates, rental rates, operating costs,
development activities, interest costs and other matters without the
inclusion of depreciation and amortization, providing perspective that
may not necessarily be apparent from net income. The Company computes
FFO in accordance with standards established by the National
Association of Real Estate Investment Trusts (NAREIT). FFO is defined
by NAREIT as net income or loss, excluding gains or losses from sales
of depreciable properties plus real estate depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures. FFO does not represent cash generated from
operating activities in accordance with GAAP and is not indicative of
cash available to fund cash needs. FFO should not be considered as an
alternative to net income as an indicator of the Company's operating
performance or as an alternative to cash flow as a measure of
liquidity. Since all companies and analysts do not calculate FFO in a
similar fashion, the Company's calculation of FFO presented herein may
not be comparable to similarly titled measures as reported by other
companies.
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 102
properties comprised of approximately 20.2 million square feet. 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 President and
Chief Executive Officer Scott Rechler, will host a conference call
outlining fourth quarter results on March 2, 2006 at 11:00 a.m. EST.
The conference call may be accessed by dialing (800) 230-1092
(internationally (612) 332-0530). No passcode is required. The live
conference call will also be webcast in a listen-only mode on 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 2, 2006 at 5:00 p.m. EST through March 10, 2006 at 11:59
p.m. EST. The telephone number for the replay is (800) 475-6701,
passcode 816519. A replay of the webcast of the conference call will
also be available via the Company's web site.
Financial Statements Attached
The Supplemental Package and Slide Show Presentation outlining the
Company's fourth quarter 2005 results will be available prior to the
Company's quarterly conference call on the Company's web site at
www.reckson.com in the Investor Relations section, by e-mail to those
on the Company's distribution list, as well as by mail or fax, upon
request. To be added to the Company's e-mail distribution list or to
receive a copy of the quarterly materials by mail or fax, please
contact Susan McGuire, Senior Vice President Investor Relations,
Reckson Associates Realty Corp., 225 Broadhollow Road, Melville, New
York 11747-4883, investorrelations@reckson.com or (631) 622-6746.
Forward-Looking Statements
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.
Reckson Associates Realty Corp. (NYSE: RA)
Consolidated Balance Sheets
(in thousands, except share amounts)
Year Ended December 31,
-----------------------
2005 2004
----------- -----------
Assets:
Commercial real estate properties, at cost:
Land $ 430,064 $ 353,408
Buildings and improvements 2,823,020 2,273,419
Developments in progress:
Land 123,761 90,976
Development costs 99,570 42,169
Furniture, fixtures, and equipment 12,738 11,609
----------- -----------
3,489,153 2,771,581
Less: accumulated depreciation (532,512) (434,112)
----------- -----------
Investment in real estate, net of accumulated
depreciation 2,956,641 2,337,469
Properties and related assets held for sale,
net of accumulated depreciation 195,056 405,353
Investments in real estate joint ventures 61,526 6,657
Investments in notes receivable 174,612 85,855
Investments in affiliate loans and joint
ventures 59,324 60,951
Cash and cash equivalents 17,468 25,137
Tenant receivables 20,196 9,427
Deferred rents receivable 138,990 108,791
Prepaid expenses and other assets 108,798 59,125
Contract and land deposits and
pre-acquisition costs 184 121
Deferred leasing and loan costs (net of
accumulated amortization) 78,411 68,722
----------- -----------
Total Assets $3,811,206 $3,167,608
----------- -----------
Liabilities:
Mortgage notes payable $ 541,382 $ 576,719
Unsecured credit facility 419,000 235,500
Senior unsecured notes 980,085 697,974
Mortgage notes payable and other liabilities
associated with properties held for sale 83,748 35,638
Accrued expenses and other liabilities 120,994 72,059
Deferred revenues and tenant security
deposits 76,727 47,535
Dividends and distributions payable 36,398 35,924
----------- -----------
Total Liabilities 2,258,334 1,701,349
----------- -----------
Minority partners' interests in consolidated
partnerships 217,705 211,178
Preferred unit interest in the operating
partnership 1,200 1,200
Limited partners' minority interest in the
operating partnership 33,498 53,231
----------- -----------
252,403 265,609
----------- -----------
Commitments and contingencies - -
Stockholders' Equity:
Preferred Stock, $.01 par value, 25,000,000
shares authorized - -
Common Stock, $.01 par value, 200,000,000
shares authorized 82,995,931 and 80,618,339
shares issued and outstanding, respectively 830 806
Accumulated other comprehensive income 1,819 1,789
Treasury Stock, 3,318,600 shares (68,492) (68,492)
Retained earnings 56,868 -
Additional paid in capital 1,309,444 1,266,547
----------- -----------
Total Stockholders' Equity 1,300,469 1,200,650
----------- -----------
Total Liabilities and
Stockholders' Equity $3,811,206 $3,167,608
----------- -----------
Total debt to market capitalization (a): 40.1% 33.8%
=========== ===========
(a) Total debt includes the Company's pro rata share of consolidated
and unconsolidated joint venture debt.
Reckson Associates Realty Corp. (NYSE: RA)
Consolidated Statements of Income
(in thousands, except share amounts)
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
2005 2004 2005 2004
---------------------- ----------------------
Property Operating
Revenues:
Base rents $114,883 $108,348 $468,034 $422,012
Tenant escalations
and reimbursements 21,957 18,339 78,114 71,369
---------------------- ----------------------
Total property
operating revenues 136,840 126,687 546,148 493,381
---------------------- ----------------------
Property Operating
Expenses:
Operating expenses 34,486 29,619 131,289 118,278
Real estate taxes 22,259 21,785 87,752 80,855
---------------------- ----------------------
Total property
operating expenses 56,745 51,404 219,041 199,133
---------------------- ----------------------
Net Operating Income 80,095 75,283 327,107 294,248
---------------------- ----------------------
Gross Margin
percentage 58.5% 59.4% 59.9% 59.6%
---------------------- ----------------------
Investment income and
other 16,137 3,034 119,406 19,646
---------------------- ----------------------
Other Expenses
Interest
Expense 28,084 23,449 110,891 95,920
Amortization of deferred
financing costs 1,086 965 4,166 3,721
Depreciation and
amortization 32,152 30,202 126,662 111,765
Marketing, general
and administrative 8,066 8,597 32,438 29,967
Long term incentive
compensation expense 23,534 - 23,534 -
---------------------- ----------------------
Total other expenses 92,922 63,213 297,691 241,373
---------------------- ----------------------
Income before minority
interests, preferred
dividends and
distributions and
discontinued operations 3,310 15,104 148,822 72,521
Minority partners'
interests in consolidated
partnerships (4,381) (3,769) (15,749) (18,507)
Distributions to preferred
unit holders - - - (541)
Limited partners' minority
interest in the operating
partnership 351 (84) (4,264) (1,314)
---------------------- ----------------------
Income (loss) before
discontinued operations
and preferred dividends (720) 11,251 128,809 52,159
Discontinued operations
(net of minority interests)
Gains on sales of
real estate 47,669 706 61,459 11,776
Income from
discontinued
operations 2,015 2,038 7,373 6,493
---------------------- ----------------------
Net income 48,964 13,995 197,641 70,428
Redemption charges on
series a preferred stock - (9,095) - (15,812)
Dividends to preferred
shareholders - (367) - (12,236)
---------------------- ----------------------
Net income allocable to
common shareholders $ 48,964 $ 4,533 $197,641 $ 42,380
====================== ======================
Basic net income per
weighted average
common share:
Common stock -
income (loss) from
continuing operations ($0.09) $0.02 $0.49 $0.35
Gains on sales of
real estate 0.08 - 1.08 -
Discontinued operations 0.60 0.04 0.84 0.27
---------------------- ----------------------
Basic net income
per common share $0.59 $0.06 $2.41 $0.62
====================== ======================
Basic weighted average
common shares
outstanding 82,777,000 76,887,000 82,082,000 68,871,000
====================== ======================
Diluted net income per
weighted average
common share $0.59 $0.06 $2.40 $0.61
====================== ======================
Diluted weighted
average common shares
outstanding 83,198,000 77,281,000 82,515,000 69,235,000
====================== ======================
Reckson Associates Realty Corp. (NYSE: RA)
Funds From Operations
(in thousands, except per share amounts)
Three Months
Ended Year Ended
December 31, December 31,
---------------- ------------------
2005 2004 2005 2004
---------------- ------------------
Net income allocable to common
shareholders $48,964 $ 4,533 $197,641 $ 42,380
Add: Real estate depreciation
and amortization 31,258 29,707 121,649 107,945
Minority partners'
interests in consolidated
partnerships 7,519 6,627 27,763 30,427
Limited partners' minority
interest in the operating
partnership 1,254 221 5,451 2,303
Less: Amounts distributable to
minority partners in
consolidated partnerships 6,240 5,758 23,044 26,743
Gains on sales of
depreciable real estate 55,355 - 154,216 11,322
---------------- ------------------
Basic Funds From Operations
("FFO") 27,400 35,330 175,244 144,990
Add: Dividends and distributions
on dilutive shares and
units - - - 590
---------------- ------------------
Diluted FFO $27,400 $35,330 $175,244 $145,580
================ ==================
Diluted FFO calculations:
Weighted average common
shares outstanding 82,777 76,887 82,082 68,871
Weighted average units of
limited partnership
interest outstanding 2,075 3,583 2,484 3,559
---------------- ------------------
Basic weighted average
common shares and units
outstanding 84,852 80,470 84,566 72,430
Adjustments for dilutive FFO
weighted average shares and
units outstanding:
Common stock equivalents 421 394 433 364
Series B preferred stock - - - 28
Limited partners'
preferred interest 41 41 41 341
---------------- ------------------
Total diluted weighted average
shares and units outstanding 85,314 80,905 85,040 73,163
================ ==================
Diluted FFO per weighted average
share or unit $ 0.32 $ 0.44 $ 2.06 $ 1.99
Diluted weighted average
dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.70
Diluted FFO payout ratio 132.3% 97.3% 82.5% 85.4%
FFO Data excluding non recurring
and other charges:
Diluted FFO per weighted average
share or unit $ 0.60 $ 0.55 $ 2.34 $ 2.20
Diluted weighted average
dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.70
Diluted FFO payout ratio 71.4% 77.4% 72.8% 77.2%
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,
---------------- ------------------
2005 2004 2005 2004
---------------- ------------------
Basic Funds From Operations $27,400 $35,330 $175,244 $144,990
Adjustments for basic cash
available for distribution:
Less: Straight line rents and
other FAS 141 non-cash
rent adjustments 7,833 6,503 37,771 24,944
Committed non-incremental
capitalized tenant
improvements and
leasing costs 12,438 10,017 38,132 35,378
Actual non-incremental
capitalized
improvements 2,975 3,188 10,448 9,172
Add: Non recurring and
other charges 23,534 9,095 23,534 15,812
---------------- ------------------
Basic Cash Available for
Distribution ("CAD") 27,688 24,717 112,427 91,308
Add: Dividends and
distributions on dilutive
shares and units - - - -
---------------- ------------------
Diluted CAD $27,688 $24,717 $112,427 $ 91,308
================ ==================
Diluted CAD calculations:
Weighted average common
shares outstanding 82,777 76,887 82,082 68,871
Weighted average units of
limited partnership
interest outstanding 2,075 3,583 2,484 3,559
---------------- ------------------
Basic weighted average
common shares and units
outstanding 84,852 80,470 84,566 72,430
Adjustments for dilutive
CAD weighted average
shares and units
outstanding:
Common stock
equivalents 421 394 433 364
Limited partners'
preferred interest 41 41 41 -
---------------- ------------------
Total diluted weighted average
shares and units outstanding 85,314 80,905 85,040 72,794
================ ==================
Diluted CAD per weighted average
share or unit $ 0.32 $ 0.31 $ 1.32 $ 1.25
Diluted weighted average
dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.70
Diluted CAD payout ratio 130.9% 139.1% 128.5% 135.5%
CONTACT: Reckson Associates Realty Corp.
Scott Rechler, CEO, 631-694-6900
Michael Maturo, CFO, 631-694-6900
Fax: 631-622-6790
SOURCE: Reckson Associates Realty Corp.
