Reckson's Office Occupancies Rise

Reckson reported office occupancy at Dec. 31, 2004 of 94.1%. This compares to 91.5% at Dec. 31, 2003 and 93.9% at Sept. 30, 2004. The company reported portfolio occupancy of 93.1% at Dec. 31, 2004, as compared to 90.2% at Dec. 31, 2003 and 93.1% at Sept. 30, 2004.

During a conference call, Rechler said he's seeing early renewals all over and tenants actively looking for expansion space. One cause for concern is the telecom mergers, which he feels could lead to some consolidation. "We're monitoring it carefully."

On the acquisition front, he said Reckson and a partner are still interested in the Verizon Building at 1095 Ave. of the Americas. "It's competitive. We're participating in it." He also said the firm might also consider being in the running for the MetLife property at 200 Park Ave. with a partner. Reckson completed approximately $488 million of investments in total during 2004, including two investments during the fourth quarter of 2004 totaling approximately $75 million.

The company closed on the acquisition of a 150,000-sf , class A office building located at One Giralda Farms in Madison, NJ for approximately $24.3 million and on the acquisition of the 203,000-sf, class A office building at Seven Giralda Farms for approximately $53.7 million. This marks Reckson's third acquisition since July 2004 in Giralda Farms.

Reckson reported diluted funds from operations of $35.3 million or $0.44 per share for the fourth quarter of 2004, as compared to diluted FFO of $24.2 million or $0.38 per share for the fourth quarter of 2003. "2004 was a milestone year for Reckson," said Rechler. "We integrated a new management team without losing focus on our core business. In short, we exceeded all expectations and positioned Reckson to continue to execute on its long-term growth plan."

Rent performance on renewal and replacement space during the year ended Dec. 31, 2004 increased 2.5% on a cash basis and increased 15.6% on a straight-line rent basis in the office portfolio. Rent performance on renewal and replacement space during the fourth quarter decreased 2.2% on a cash basis and increased 25.9% on a straight-line rent basis in the office portfolio.