-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RBsuAvQ6sTUTBJJ2CTSbKDAZMtq/rbcY1y0rf4kXyP5dH4zYAvy8g+zg0EhJ7ENh yBvYIE4Q6i3ZORaRKAJlfg== 0000930548-98-000001.txt : 19980212 0000930548-98-000001.hdr.sgml : 19980212 ACCESSION NUMBER: 0000930548-98-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970930 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980211 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RECKSON ASSOCIATES REALTY CORP CENTRAL INDEX KEY: 0000930548 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 113233650 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13762 FILM NUMBER: 98531535 BUSINESS ADDRESS: STREET 1: 225 BROADHOLLOW RD CITY: MELVILLE STATE: NY ZIP: 11747 BUSINESS PHONE: 5166946900 MAIL ADDRESS: STREET 1: 225 BROADHOLLOW RD CITY: MELVILLE STATE: NY ZIP: 11747 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Date of Report (Date of earliest event reported): February 10, 1998 Commission file number: 1-13762 RECKSON ASSOCIATES REALTY CORP. (Exact name of registrant as specified in its charter) Maryland 11-3233650 (State other jurisdiction of incorporation (IRS. Employer of organization) Identification Number) 225 Broadhollow Road, Melville, NY 11747 (Address of principal executive office) (zip code) (516) 694-6900 (Registrant's telephone number including area code) ITEM 2. ACQUISITON OR DISPOSITION OF ASSETS On December 19, 1997, the Company acquired Royal Executive Office Park ("Royal") a 541,884 square foot, class A office complex for $81 million. The Royal consists of 6 buildings and is currently 98% occupied and is located in Rye, New York. The asset acquisition was financed with proceeds from the credit facility. On December 19, 1997, the Company acquired Christiania office building, a 197,785 square foot, class A office complex for $27.1 million. The building is currently 99% occupied and is located in Tarrytown, New York. The asset acquisition was financed with proceeds from the credit facility. ITEM 7. FINANCIAL STATEMENTS Financial statements of properties acquired and pro forma financial information. RECKSON ASSOCIATES REALTY CORP. ITEM 7 FINANCIAL STATEMENTS OF PROPERITIES ACQUIRED AND PRO FORMA FINANCIAL INFORMATION TABLE OF CONTENTS DESCRIPTION Pro Forma Condensed Combining Balance Sheet as of September 30, 1997 ................................................... Pro Forma Condensed Combining Statement of Operations for the Nine Months ended September 30, 1997 ................... Pro Forma Condensed Combining Statement of Operations for the Year ended December 31, 1996 ........................... Notes to Pro Forma Financial Statements .................... Statement of Revenue and Certain Expenses of Royal Executive Park for the Nine Months Ended September 30, 1997 and 1996 (unaudited) and for the Year Ended December 31, 1996 ....... Notes to Statement of Revenue and Certain Expenses of Royal Executive Park ............................................. Statement of Revenue and Certain Expenses of Christiania Office Property for the Year Ended June 30, 1997 and for the Three Months Ended September 30, 1997 (unaudited) ................. Notes to Statement of Revenue and Certain Expenses of Christiania Office Property.................................. Reckson Associates Realty Corp. Pro Forma Condensed Combining Balance Sheet As of September 30, 1997 (Unaudited) The following unaudited pro forma condensed combining balance sheet is presented as if the The Company had acquired Royal Executive Park and Christiania Office Property on September 30, 1997. This pro forma condensed combining balance sheet should be read in conjunction with the pro forma condensed combining statement of operations of the Company and the historical financial statements and notes thereto of the Company as filed on Form 10-K for the year ended December 31, 1996 and on Form 10-Q for the nine months ended September 30, 1997. The pro forma condensed combining balance sheet is unaudited and is not necessarily indicative of what the actual financial position would have been had the Company acquired Royal Executive Park and Christiania Office Property on September 30, 1997, nor does it purport to represent the future financial position of the Company. Reckson Associates Realty Corp. Pro Forma Condensed Combining Balance Sheet As of September 30, 1997 (Unaudited)
Christiania Royal September Historical(a) Office Executive 30, 1997 (Unaudited) Property (b) Park (c) Pro Forma ___________ ____________ _________ _________ Assets Real estate, net $ 690,053 $ 27,100 $ 81,000 $ 798,153 Cash and cash equivalents 10,211 - - 10,211 Tenant receivables 2,371 - - 2,371 Affiliate receivables 5,686 - - 5,686 Deferred rent receivable 15,358 - - 15,358 Investment in mortgage notes and note receivable 85,853 - - 85,853 Contract and land deposits and other pre-acquisition costs 7,172 - - 7,172 Prepaid expenses and other assets 14,565 - - 14,565 Investments in real estate joint ventures 7,048 - - 7,048 Deferred lease and loan costs, net 15,440 - - 15,440 _________ ________ ________ _________ Total Assets $ 853,757 $ 27,100 $ 81,000 $ 961,857 ========= ======== ======== =========
Liabilities and Stockholders' Equity Mortgage notes payable $ 180,593 $ - $ - $ 180,593 Senior unsecured notes 150,000 - - 150,000 Credit facility 33,000 27,100 81,000 141,100 Accrued expenses and other liabilities 20,124 - - 20,124 Affiliate payables 718 - - 718 Dividends and distributions payable 13,046 - - 13,046 _________ ________ ________ _________ Total Liabilities 397,481 27,100 81,000 505,581 _________ ________ ________ _________ Minority interest in consolidated partnership 6,765 - - 6,765 Limited partners' interest in operating partnership 75,608 - - 75,608 _________ ________ ________ _________ 82,373 - - 82,373 _________ ________ ________ _________ Stockholders' Equity Common stock 345 - - 345 Additional paid-in capital 373,558 - - 373,558 _________ ________ ________ _________ Total Stockholders' Equity 373,903 - - 373,903 _________ ________ ________ _________ Total Liabilities and Stockholders' Equity $ 853,757 $ 27,100 $ 81,000 $ 961,857 ========= ======== ======== ========= See accompanying notes to pro forma financial statements.
Reckson Associates Realty Corp. Pro Forma Condensed Combining Statement of Operations For the Nine Months Ended September 30, 1997 (Unaudited) The following unaudited pro forma condensed combining Statement of Operations is presented as if the Company had acquired Royal Executive Park and Christiania Office Property as of January 1, 1997 and the Company qualified as a REIT, distributed all its taxable income and, therefore, incurred no income tax expense during the period. This pro forma condensed combining Statement of Operations should be read in conjunction with the pro forma condensed combining balance sheet of the Company and the historical financial statements and notes thereto of the Company as filed on Form 10-Q for the nine months ended September 30, 1997. The pro forma condensed combining Statement of Operations is unaudited and is not necessarily indicative of what the actual financial position would have been had the Company acquired Royal Executive Park and Christiania Office Property as of January 1, 1997, nor does it purport to represent the operations of the Company for future periods. (Amounts below are in thousands, except per share data.) Reckson Associates Realty Corp. Pro Forma Condensed Combining Statement of Operations As of September 30, 1997 (Unaudited) (Dollars in thousands)
Christiania Royal Pro September Historical(d) Office Executive Forma (g) 30, 1997 (Unaudited) Property (e) Park (f) Adjustments Pro Forma ___________ ____________ _________ _________ _________ Revenues: Base Rents $ 91,179 $ 3,361 $ 6,540 $ - $ 101,080 Tenant escalations and reimbursements 10,737 317 1,460 - 12,514 Equity in earnings of real estate joint ventures 326 - - - 326 Equity in earnings of service companies 208 - - - 208 Interest income on mortgage notes and notes receivable 3,675 - - - 3,675 Other 2,104 - - - 2,104 _________ ________ ________ _________ _________ Total Revenues 108,229 3,678 8,000 - 119,907 _________ ________ ________ _________ _________ Expenses: Operating Expenses: Property operating expenses 20,857 1,323 2,491 - 24,671 Real Estate Taxes 14,569 631 1,133 - 16,333 Ground Rents 918 - - - 918 Marketing, general and administrative 6,158 - - - 6,158 ________ ________ ________ _________ _________ Total Operating Expenses 42,502 1,954 3,624 - 48,080 Interest 14,471 - - 3,844 18,315 Depreciation and amortization 18,991 576 1,551 - 21,118 ________ ________ ________ _________ _________ Total Expenses 75,964 2,530 5,175 3,844 87,513 ________ ________ ________ _________ _________ Income before minority interest and extraordinary items 32,265 1,148 2,825 (3,844) 32,394 Minority Partners' Interest in Consolidated partnership (income) (645) - - - (645) ________ ________ ________ _________ _________ Income before limited partners' minority interest in Operating Partnership income and extraordinary items $ 31,620 $ 1,148 $ 2,825 $ (3,844) 31,749 ======== ======== ======== ========= Limited Partners' minority interest in operating partnership income (5,655)(h) _________ Net income before extraordinary item $ 26,094 ========= Net income per share before extraordinary item $ 0.82 (i) ========= Weighted average common shares outstanding 31,810 ========= See accompanying notes to pro forma financial statements.
Reckson Associates Realty Corp. Pro Forma Condensed Combining Statement of Operations For the Year Ended December 31, 1996 (Unaudited) The following unaudited pro forma condensed combining Statement of Operations is presented as if the Company had acquired Royal Executive Park and Christiania Office Property as of January 1, 1996 and the Company qualified as a REIT, distributed all its taxable income and, therefore, incurred no income tax expense during the period. This pro forma condensed combining Statement of Operations should be read in conjunction with the pro forma condensed combining balance sheet of the Company and the historical financial statements and notes thereto of the Company as filed on Form 10-K for the year ended December 31, 1996. The pro forma condensed combining Statement of Operations is unaudited and is not necessarily indicative of what the actual financial position would have been had the Company acquired Royal Executive Park and Christiania Office Property on January 1, 1996, nor does it purport to represent the operations of the Company for future periods. (Amounts below are in thousands, except per share data.) Reckson Associates Realty Corp. Pro Forma Condensed Combining Statement of Operations As of December 31, 1996 (Unaudited) (Dollars in thousands)
Christiania Royal Pro December Historical(j) Office Executive Forma (m) 31, 1996 (Unaudited) Property (k) Park (l) Adjustments Pro Forma ___________ ____________ _________ _________ _________ Revenues: Base Rents $ 82,150 $ 4,440 $ 8,368 $ - $ 94,958 Tenant escalations and reimbursements 10,628 614 1,914 - 13,156 Equity in earnings of real estate joint ventures 266 - - - 266 Equity in earnings of service companies 1,031 - - - 1,031 Investment and other income 2,066 - - - 2,066 ________ ________ ________ _________ _________ Total Revenues 96,141 5,054 10,282 - 111,477 ________ ________ ________ _________ _________ Expenses: Operating Expenses: Property operating expenses 18,959 1,935 3,068 - 23,962 Real Estate Taxes 13,935 806 1,849 - 16,590 Ground Rents 1,107 - - - 1,107 Marketing, general and administrative 5,949 - - - 5,949 ________ ________ ________ _________ _________ Total Operating Expenses 39,950 2,741 4,917 - 47,608 ________ ________ ________ _________ _________ Interest 13,331 - - 7,686 21,017 Depreciation and amortization 17,670 768 2,068 - 20,506 ________ ________ ________ _________ _________ Total Expenses 70,951 3,509 6,985 7,686 89,131 ________ ________ ________ _________ _________ Income before minority interest and extraordinary items 25,190 1,545 3,297 (7,686) 22,346 Minority Partners' Interest in Consolidated partnership income (808) - - - (808) ________ ________ ________ _________ _________ Income before limited partners' minority interest in Operating Partnership income and extraordinary items $ 24,382 $ 1,545 $ 3,297 $ (7,686) 21,538 ======== ======== ======== ========= Limited Partners' minority interest in operating partnership income (5,265) (n) _________ Net income before extraordinary item $ 16,273 ========= Net income per share before extraordinary item $ 0.82 (o) ========= Weighted average common shares outstanding 19,928 ========= See accompanying notes to pro forma financial statements.
Reckson Associates Realty Corp. Notes to Pro Forma Financial Statements (Unaudited) (in thousands, except shares and units) Pro Forma Condensed Combining Balance Sheet A. Reflects the Company's historical balance sheet as of September 30, 1997 (unaudited). B. Reflects the acquisition of the Christiania Office Property with borrowings under the Credit Facility. C. Reflects the acquisition of the Royal Executive Park with borrowings under the Credit Facility. Pro Forma Condensed Combining Statements of Operations For the Year Ended December 31, 1996 and Nine Months Ended September 30, 1997 D. Reflects the historical operations of the Company for the nine months ended September 30, 1997 (unaudited). E. Reflects the revenues and certain expenses of the Chrisitiania Office Property for the nine months ended September 30, 1997. F. Reflects the revenues and certain expenses of the Royal Executive Park for the nine months ended September 30, 1997. G. Reflects the increase in interest costs associated with additional borrowings under the Credit Facility. H. Represents the minority interest of the Limited Partners in the Operating Partnership at an effective pro forma rate of approximately 17.8%. I. Pro forma net income per share of common stock before extraordinary item is based upon the weighted average number of shares outstanding during the nine months ended September 30, 1997 of 31,810,000. This reflects a two-for-one stock split which was distributable on April 15, 1997. J. Reflects the historical operations of the Company for the year ended December 31, 1996. K. Reflects the revenues and certain expenses of the Chrisitiania Office Property for the year ended December 31, 1996. L. Reflects the revenues and certain expenses of the Royal Executive Park for the year ended December 31, 1996. M. Reflects the increase in interest costs associated with additional borrowings under the Credit Facility. N. Represents the minority interest of the Limited Partners in the Operating Partnership at an effective pro forma rate of approximately 24.4%. O. Pro forma net income per share of common stock before extraordinary item is based upon the weighted average number of shares outstanding during the year ended December 31, 1996 of 19,928,000. This reflects a two-for-one stock split which was distributable on April 15, 1997. Report of Independent Auditors Board of Directors and Stockholders Reckson Associates Realty Corp. We have audited the statement of revenues and certain expenses of the property ("Christiania Office Property") to be acquired from the System Realty Eighteen, Inc. ("System Realty") by Reckson Associates Realty Corp., as described in Note 1, for the year ended June 30, 1997. The financial statement is the responsibility of the Christiania Office Property management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying statement of revenues and certain expenses was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission for inclusion in a Form 8-K of Reckson Associates Realty Corp. and is not intended to be a complete presentation of the Christiania Office Property's revenues and expenses. In our opinion, the financial statement referred to above presents fairly, in all material respects, the revenues and certain expenses of the Christiania Office Property as described in Note 1 for the year ended June 30, 1997, in conformity with generally accepted accounting principles. ERNST & YOUNG LLP New York, New York December 17, 1997 Christiania Office Property Statement of Revenues and Certain Expenses (in thousands) (Note 1) Three Months Ended September Year Ended 30, 1997 June 30, (Unaudited) 1997 __________ __________ Revenues: (Notes 2 and 5) Base rents $ 1,131 $ 4,489 Tenant escalations 94 473 ________ ________ Total revenues 1,225 4,962 ________ ________ Certain expenses: Real estate taxes 207 851 Management fees (Note 3) 29 116 Property operating expenses (Note 4) 412 1,684 ________ ________ Total certain expenses 648 2,651 ________ ________ Revenues in excess of certain expenses $ 577 $ 2,311 ======== ======== See accompanying notes to financial statement. Christiania Office Property Notes to Statement of Revenues and Certain Expenses For the Year Ended June 30, 1997 1. Basis of Presentation Presented herein is the statement of revenues and certain expenses related to the operation of an office building, the Christiania Office Property, owned by System Realty Eighteen, Inc.("System Realty"). The property is located in Tarrytown, New York. The Christiania Office Property is not a legal entity but rather certain real estate subject to a purchase contract by Reckson Associates Realty Corp. (the "Company"). The accompanying statement of revenues and certain expenses includes the accounts of the Christiania Office Property. The accompanying financial statement has been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission for the acquisition of real estate property. Accordingly, the financial statement excludes certain expenses that may not be comparable to those expected to be incurred by Reckson Associates Realty Corp. in the proposed future operations of the aforementioned property. Items excluded consist of interest, depreciation and general and administrative expenses not directly related to the future operations. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statement and accompanying notes. Actual results could differ from those estimates. 2. Lease and Revenue Recognition The Christiania Office Property is being leased to tenants under operating leases. Minimum rental income is generally recognized on a straight-line basis over the term of the lease. The excess of amounts so recognized over amounts due pursuant to the underlying leases amounted to approximately $222,000 and $15,000 for the year ended June 30, 1997 and the three months ended September 30, 1997 (unaudited), respectively. The lease agreements generally contain provisions for reimbursement of real estate taxes and operating expenses over base year amounts, as well as fixed increases in rent. The Christiania Office Property is a multi-tenant office building whose leases expire at various dates over the next twelve years. 3. Management and Leasing Agreements The Christiania Office Property is managed and leased by Newmark & Company Real Estate, Inc. ("Newmark"). Newmark provides property management services to the Christiania Office Property at the rate of 2.5% of gross cash receipts. 4. Property Operating Expenses Property operating expenses for the year ended June 30, 1997 include approximately $710,000 in utilities, $34,000 for insurance, $225,000 in payroll costs, $156,000 in cleaning costs, $444,000 in repair and maintenance costs, $90,000 of bad debt expense and $25,000 of cafeteria subsidy costs. For the three months ended September 30, 1997 (unaudited) property operating expenses include approximately $212,000 in utilities, $8,000 for insurance, $42,000 in payroll costs, $37,000 in cleaning costs, $84,000 in repair and maintenance costs, $23,000 of bad debt expense and $6,000 of cafeteria subsidy costs. 5. Significant Tenants Three tenants, Christiania General Insurance Company, the Dannon Company, Inc. and First UNUM Life Insurance Company accounted for approximately 11%, 24% and 33% of the fiscal year 1997 rents on a straight line basis, respectively. 6. Lease Agreements Future minimum lease payments to be received by the Christiana Office Property as of June 30, 1997 under non-cancellable operating leases, which expire on various dates through October 2009, are as follows: 1998 $ 4,538,000 1999 4,641,000 2000 4,627,000 2001 4,541,000 2002 4,417,000 Thereafter 18,331,000 _____________ $ 41,095,000 ============= Report of Independent Auditors To the Board of Directors of Reckson Associates Realty Corp. We have audited the statement of revenues and certain expenses of the property ("Royal Executive Park") to be acquired from entities controlled by London & Leeds by Reckson Associates Realty Corp., as described in Note 1, for the year ended December 31, 1996. The financial statement is the responsibility of London & Leeds management. Our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the basis of accounting used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying statement of revenues and certain expenses was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission for inclusion in a Form 8-K of Reckson Associates Realty Corp. and is not intended to be a complete presentation of Royal Executive Park's revenues and expenses. In our opinion, the financial statement referred to above presents fairly, in all material respects, the revenues and certain expenses of Royal Executive Park as described in Note 1 for the year ended December 31, 1996, in conformity with generally accepted accounting principles. KINSEY, BECK & COMPANY New York, New York December 22, 1997 Royal Executive Park Statement of Revenues and Certain Expenses Nine Months Ended Year Ended September 30, 1997 December 31, ____________________________ 1997 1996 1996 (Unaudited) (Unaudited) ___________ ___________ ___________ Revenues: Rental income $ 6,539,917 $ 6,314,869 $ 8,367,927 Other income 1,459,978 1,435,256 1,914,002 ___________ ___________ ___________ Total revenues 7,999,895 7,750,125 10,281,929 Certain operating expenses: Real estate taxes 1,133,121 1,349,615 1,848,837 Utilities 438,263 388,038 522,740 Repairs and maintenance 1,033,529 1,044,486 1,315,102 Cleaning 451,919 373,477 486,606 Administrative 354,618 376,286 479,629 Insurance 71,314 59,762 80,389 Management fee 141,774 134,796 183,388 ___________ ___________ ___________ Total certain operating expenses 3,624,538 3,726,460 4,916,691 ___________ ___________ ___________ Revenues in excess of certain operating expenses $ 4,375,357 $ 4,023,665 $ 5,365,238 =========== =========== =========== The accompanying notes are an integral part of these statements of revenues and certain operating expenses. Royal Executive Park Notes to Statement of Revenues and Certain Operating Expenses 1. Organization and Significant Accounting Policies The accompanying statements of revenues and certain operating expenses of Royal Executive Park have been presented on a historical cost basis because the assets and liabilities are expected to be the subject of a combination with Reckson Associates Realty Corp. (the "Company"). In management's opinion, these statements of revenues and certain operating expenses include the revenues and expenses associated with the operations of the property intended to be sold to the Company. The accompanying historical statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and are not representative of the actual operations of the property for the periods presented. The statements exclude certain expenses, such as interest, depreciation and amortization and other costs not directly related to the future operations of the property that may not be comparable to the expenses expected to be incurred in the proposed future operations of the property. 2. Revenue Recognition Royal Executive park, as a lessor, has retained substantially all the risks and benefits of ownership of the rental property and accounts for its leases as operating leases. Space is leased to tenants under leases ranging from 4 to 25 years. Rental income is recognized over the terms of the leases as it is earned. 3. Future Rental Revenue The future minimum lease payments to be received by Royal Executive Park as of December 31, 1996 under noncancelable operating leases, which expire on various dates through April 30, 2008, are as follows: 1997 $ 8,796,292 1998 9,104,336 1999 8,351,851 2000 7,632,923 2001 4,892,888 Thereafter 12,433,831 _____________ $ 51,212,121 ============= There was one major tenant which represented 59% and 58% of Royal Executive Park's total revenue for the year ended December 31, 1996 and the nine months ended September 30, 1997, respectively. 4. Use of Estimates in the Preparation of Financial Statements The preparation of statements of revenues and certain operating expenses in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of revenues and certain expenses during the reporting period. Actual results could differ from those estimates. 5. Unaudited Interim Statements The revenues in excess of certain operating expenses for the nine months ended September 30, 1997 and 1996 are unaudited. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of such statements have been included. The revenues in excess of certain operating expenses for the nine months ended September 30, 1997 are not necessarily indicative of Royal Executive Park's future operations for the full year ending December 31, 1997. -----END PRIVACY-ENHANCED MESSAGE-----