Corporate Indebtedness (Tables)

12 Months Ended

Dec. 31, 2012

Corporate Indebtedness

Schedule of senior unsecured notes and other related disclosures by scheduled maturity date

The following table sets forth our senior unsecured notes and other related disclosures as of December 31, 2012 and 2011, respectively by scheduled maturity date (amounts in thousands):

Issuance	December 31, 2012 Unpaid Principal Balance		December 31, 2012 Accreted Balance		December 31, 2011 Accreted Balance		Coupon Rate(1)			Effective Rate			Term (in Years)		Maturity
March 26, 2007(2)	$	16,893	$	16,893	$	119,423		3.00	%		3.00	%		20		March 30, 2027
June 27, 2005(3)(4)		7		7		657		4.00	%		4.00	%		20		June 15, 2025
November 15, 2012(5)		200,000		200,000		—		4.50	%		4.50	%		10		December 1, 2022
March 16, 2010(5)		250,000		250,000		250,000		7.75	%		7.75	%		10		March 15, 2020
August 5, 2011(5)		250,000		249,620		249,565		5.00	%		5.03	%		7		August 15, 2018
October 12, 2010(6)		345,000		287,373		277,629		3.00	%		7.13	%		7		October 15, 2017
March 31, 2006(3)(7)		255,308		255,165		274,804		6.00	%		6.02	%		10		March 31, 2016
August 13, 2004(3)(7)		75,898		75,898		98,578		5.88	%		5.88	%		10		August 15, 2014
	$	1,393,106	$	1,334,956	$	1,270,656

⁽¹⁾

Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

⁽²⁾

In March 2007, the Operating Partnership issued $750.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a 25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are currently redeemable at the Operating Partnership's option. The Operating Partnership may be required to repurchase the notes on March 30, 2017 and 2022, and upon the occurrence of certain designated events. On March 30, 2012, we repurchased $102.2 million of aggregate principal amount of the exchangeable notes pursuant to a mandatory offer to repurchase the notes. On the issuance date, $66.6 million was recorded in equity and was fully amortized as of March 31, 2012.

⁽³⁾

Issued by ROP.

⁽⁴⁾

Exchangeable senior debentures which are currently callable at par. In addition, the debentures can be put to ROP, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions. As a result of the acquisition of all outstanding shares of common stock of Reckson, or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. During the year ended December 31, 2012, we repurchased $650,000 of these bonds at par.

⁽⁵⁾

Issued by us, the Operating Partnership and ROP, as co-obligors.

⁽⁶⁾

In October 2010, the Operating Partnership issued $345.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on April 15 and October 15. The notes had an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The current exchange rate is 11.6800 shares of our common stock per $1,000 principal amount of these notes. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. On the issuance date, $78.3 million was recorded in equity. As of December 31, 2012, approximately $57.6 million remained unamortized.

⁽⁷⁾

On December 27, 2012, we repurchased $42.4 million aggregate principal amount of notes, consisting of $22.7 million of the 5.875% Notes and $19.7 million of the 6.0% Notes, for a total consideration of $46.4 million and realized a net loss on early extinguishment of debt of approximately $3.8 million.

Schedule of combined aggregate principal maturities

Combined aggregate principal maturities of mortgages and other loans payable, 2012 revolving credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of December 31, 2012, including as-of-right extension options, were as follows (amounts in thousands):

	Scheduled Amortization		Principal Repayments		Revolving Credit Facility		Term Loans and Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
2013	$	49,496	$	299,009	$	—	$	—	$	—	$	348,505	$	176,511
2014		52,515		146,273		—		—		75,898		274,686		309,090
2015		55,810		229,537		—		—		7		285,354		36,457
2016		55,299		516,754		—		—		255,165		827,218		528,278
2017		55,461		1,098,064		—		—		304,266		1,457,791		933,634
Thereafter		235,004		1,822,242		70,000		500,000		699,620		3,326,866		151,393
	$	503,585	$	4,111,879	$	70,000	$	500,000	$	1,334,956	$	6,520,420	$	2,135,363

Schedule of consolidated interest expense, excluding capitalized interest

Consolidated interest expense, excluding capitalized interest, was comprised of the following (amounts in thousands):

	Years Ended December 31,
	2012			2011			2010
Interest expense	$	332,188		$	287,921		$	232,794
Interest income		(1,619	)		(2,004	)		(2,146	)
Interest expense, net	$	330,569		$	285,917		$	230,648
Interest capitalized	$	12,218		$	5,123		$	—