Corporate Indebtedness (Tables)

6 Months Ended

Jun. 30, 2012

Corporate Indebtedness

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

Issuance	June 30, 2012 Unpaid Principal Balance		June 30, 2012 Accreted Balance		December 31, 2011 Accreted Balance		Coupon Rate(1)		Effective Rate		Term (in Years)	Maturity
March 26, 2007(2)	$	18,003	$	18,003	$	119,423	3.000	%	3.000	%	20	March 30, 2027
June 27, 2005(3)(4)	357		357		657		4.000	%	4.000	%	20	June 15, 2025
March 16, 2010(5)	250,000		250,000		250,000		7.750	%	7.750	%	10	March 15, 2020
August 5, 2011(5)	250,000		249,593		249,565		5.000	%	5.031	%	7	August 15, 2018
October 12, 2010(6)	345,000		282,414		277,629		3.000	%	7.125	%	7	October 15, 2017
March 31, 2006(3)	275,000		274,824		274,804		6.000	%	6.019	%	10	March 31, 2016
August 13, 2004(3)	98,578		98,578		98,578		5.875	%	5.875	%	10	August 15, 2014
	$	1,236,938	$	1,173,769	$	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 six months ended June 30, 2012, we repurchased $300,000 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 have 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 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 June 30, 2012, approximately $62.6 million remained unamortized.

Schedule of combined aggregate principal maturities

	Scheduled Amortization		Principal Repayments		Revolving Credit Facility		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
2012	$	25,050	$	—	$	—	$	—	$	—	$	25,050	$	56,706
2013	50,910		516,179		—		—		—		567,089		127,516
2014	52,519		146,273		—		—		98,578		297,370		123,984
2015	55,815		229,537		—		—		357		285,709		102,478
2016	55,303		516,896		80,000		—		274,824		927,023		528,305
Thereafter	288,797		2,986,976		—		100,000		800,010		4,175,783		980,761
	$	528,394	$	4,395,861	$	80,000	$	100,000	$	1,173,769	$	6,278,024	$	1,919,750

Schedule of interest expense, excluding capitalized interest

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Interest expense	$	82,728		$	68,711		$	163,275		$	133,463
Interest income	(401		)	(538		)	(811		)	(1,024		)
Interest expense, net	$	82,327		$	68,173		$	162,464		$	132,439
Interest capitalized	$	2,996		$	922		$	5,532		$	2,217