While Nation Casts Votes, Scott Rechler Seeks Support for Holding

NEW YORK CITY-Scott Rechler, president and CEO of FrontLine Capital Group, held a conference call broadcast on the company’s Web site yesterday to outline its ownership of HQ Global Workplaces and highlight its financial reporting for the third quarter. CEO Gary Kushin of HQ presented a report on the company’s business economics, summarizing the status and plans of the company. Rechler called HQ’s performance, “better than expected.”

Rechler announced last month HQ would be pushed forward as an individual company, standing out of the shadow, so to speak, of FrontLine. In breaking down FrontLine’s ownership of the company yesterday, Rechler explained control amounted to 59.8% or 8,607,076 shares. While FrontLine actually still owns 100% of the company, it is by shifting the way it focuses on control that Rechler hopes to strengthen HQ’s position in the marketplace.

HQ, as of Sept. 30, has $571 million in debt. FrontLine had $157 million in debt for the same period, $106 million of which is listed as debt to parent company, Reckson Strategic Venture Partners. It is in HQ’s $35 million in EBITDA in the third quarter that Rechler wished to focus the most attention during the call. There was approximately $160 million in total revenue and $81 million in gross profit.