MELVILLE, N.Y.--(BUSINESS WIRE)--Dec. 16, 2003--

                Also Announces Series A Preferred Stock
                     Dividends for Fourth Quarter

Reckson Associates Realty Corp. (NYSE: RA) announced today that the Company has elected to exercise its Stock Redemption Right to redeem all of its 2,000,000 outstanding shares of 8.85% Series B convertible cumulative preferred stock on January 5, 2004 (the "Redemption Date"), at a redemption price of $25.50 per share of Series B preferred stock. The shares of Series B preferred stock will be redeemed for shares of Class A common stock, par value $.01 per share, valued at a price equal to $26.05 per share of Class A common stock, or a redemption rate equal to 0.9789 of a share of Class A common stock for each share of Series B preferred stock outstanding.

Accumulated and unpaid dividends on the Series B preferred stock to the Redemption Date, in an amount equal to $0.393333 per share, will be payable in cash on the Redemption Date to the holders of record on the Redemption Date, upon and subject to the surrender of the certificates representing the Series B preferred stock. On the Redemption Date, the accumulation of dividends on the Series B preferred stock will cease.

The Company will not recognize an earnings charge on this transaction because it did not involve either a cash redemption or an induced conversion.

The Company's Board of Directors has declared a quarterly cash dividend on the Company's Series A preferred stock in the amount of $.4766 per share payable on February 2, 2004 to its stockholders of record as of January 15, 2004.

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 87 properties comprised of approximately 15.6 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 and industrial/R&D 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, 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, CEO
             Michael Maturo, CFO
             631-694-6900 (Phone)
             631-622-6790 (Facsimile)

    SOURCE: Reckson Associates Realty Corp.