MELVILLE, N.Y.--(BUSINESS WIRE)--June 2, 2003--Reckson Associates Realty Corp. (NYSE: RA) announced today that the Company's Board of Directors has decided to maintain the Company's current Class A common stock dividend rate.

"Our Board of Directors has decided to maintain the current dividend rate based on its assessment with management of the strength of our balance sheet and operating capabilities. We presently anticipate being in a position to continue to support the dividend through this challenging part of the economic cycle," said Scott Rechler, Reckson's Co-Chief Executive Officer.

The Board of Directors has also elected Peter Quick, who currently serves as President of the American Stock Exchange and as a member of its Board of Governors, as lead director and as Chairman of the Nominating/Governance Committee. The Nominating/Governance Committee consists entirely of independent directors and is charged with the design and implementation of the Company's corporate governance polices and practices.

The Company's Board of Directors has also declared quarterly cash dividends on the Company's Class A common stock, its Class B common stock, its Series A preferred stock and its Series B preferred stock.

The Board has declared a quarterly cash dividend on the Company's Class A common stock (NYSE: RA) of $.4246 per share payable on July 18, 2003 to its stockholders of record as of July 7, 2003. The dividend is based on an annualized dividend rate of $1.6984 per share.

The Board has also declared a quarterly cash dividend on the Company's Class B common stock (NYSE: RA.B) of $.6471 per share payable on July 31, 2003 to its stockholders of record as of July 15, 2003. The dividend is based on an annualized dividend rate of $2.5884 per share. The cash dividend for the Class B common stock is based upon a formula established at the time of the issuance of the Class B common stock.

The Board has also declared a quarterly cash dividend on the Company's Series A preferred stock in the amount of $.4766 per share payable on July 31, 2003 to its stockholders of record as of July 15, 2003.

The Board has also declared a quarterly cash dividend on the Company's Series B preferred stock in the amount of $.553125 per share payable on July 31, 2003 to its stockholders of record as of July 15, 2003.

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 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 and industrial properties in the New York Tri-State area, with 178 properties comprised of approximately 20.3 million square feet either owned or controlled. For additional information on Reckson Associates Realty Corp., please visit the Company's web site at www.reckson.com.

Certain matters discussed herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations (including the Company's ability to maintain its current dividend level) 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 and industrial/R&D properties in the New York Tri-State area; changes in interest rate levels; 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, 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., Melville
Scott Rechler, Co-CEO
or
Michael Maturo, CFO
(631) 694-6900 (Phone)
(631) 622-6790 (Facsimile)

SOURCE: Reckson Associates Realty Corp.