UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13199 (SL Green Realty Corp.) Commission File Number: 33-167793-02 (SL ...

Financial Data and Key Metrics Changes - The company reported a solid quarter with FFO above expectations, leasing another 410,000 square feet of office space, and a same-store NOI increase of 3.6% [34] - Same-store office occupancy at the quarter's end was slightly ahead of original projections, indicating resilience in demand despite negative media coverage about the office space market [34][39] Business Line Data and Key Metrics Changes - The finance sector accounted for about 38% of market leasing during the second quarter, with continued activity in business services, healthcare, and education sectors, helping to mitigate the pause in the tech sector [34] - The company has entered into year-to-date leases totaling 950,000 square feet, with a leasing pipeline of 1.1 million square feet, more than two-thirds of which represents new leasing activity [47] Market Data and Key Metrics Changes - Midtown continues to outperform with the lowest availability rate and the highest leasing volume among all Manhattan submarkets, affirming the company's core property strategy [39] - The overall leasing velocity in the market has been modest year-to-date, but there has been an increase in tenant tours and proposals for larger-sized tenants recently [61] Company Strategy and Development Direction - The company is focused on maintaining and potentially increasing occupancy rates, with a goal to reach around 92% by the end of the year [27] - The completion of the joint venture partnership with Mori Trust is highlighted as a significant strategic move, resetting ownership and capital stack for a prime asset on Park Avenue [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate cash flow and maintain dividends, despite challenges such as rising interest rates and a partially remote workforce [46][21] - The company aims to protect the dividend while executing its business plan, with a focus on debt repayment and increasing liquidity [89] Other Important Information - The company has a significant pipeline of leasing activity, with 16 active proposals ranging from 45,000 to 300,000 square feet, indicating growing demand [74] - The company is also working on enhancing amenities at One Madison, which is expected to exceed the amenity program at One Vanderbilt [77] Q&A Session Summary Question: Can you discuss the debt coverage ratio and its expectations? - The fixed charge coverage ratio fell to 1.7 times this quarter, above the covenant of 1.4 times, and is expected to improve as 245 Park rolls out of the calculation [24][25] Question: What is the current occupancy expectation for the year? - The company expects to reach around 92% occupancy by year-end, with current occupancy at 89.8% [26][28] Question: Can you provide updates on the 625 Madison situation? - There is ongoing litigation surrounding 625 Madison, with a foreclosure date scheduled for August 8, and management is awaiting the outcome [14][17] Question: What are the priorities for cash flow in the second half of the year? - The priority is debt repayment, with all proceeds from recent sales earmarked for this purpose, and share buybacks have been paused [89] Question: How is the leasing pipeline composed? - Two-thirds of the leasing pipeline is driven by financial services, with additional activity from law firms and professional services [100]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) [Filing Details and Registrant Information](index=1&type=section&id=Filing%20Details%20and%20Registrant%20Information) This is a Quarterly Report on Form 10-Q for the period ended March 31, 2023, filed by SL Green Realty Corp. and SL Green Operating Partnership, L.P. The registrants are based in New York, NY - The report is a Quarterly Report on Form 10-Q for the period ended March 31, 2023[2](index=2&type=chunk) - Registrants are SL Green Realty Corp. and SL Green Operating Partnership, L.P., with principal executive offices at One Vanderbilt Avenue, New York, NY 10017[3](index=3&type=chunk) [Registrant Status and Securities](index=1&type=section&id=Registrant%20Status%20and%20Securities) SL Green Realty Corp. is a large accelerated filer, while SL Green Operating Partnership, L.P. is a non-accelerated filer. Both registrants have filed all required reports and submitted Interactive Data Files. SL Green Realty Corp.'s common stock and preferred stock are listed on the New York Stock Exchange Registrant Filer Status | Registrant | Filer Status | | :----------------------------- | :------------- | | SL Green Realty Corp. | Large accelerated filer | | SL Green Operating Partnership, L.P. | Non-accelerated filer | Securities Registered | Registrant | Trading Symbol | Title of Each Class | Name of Each Exchange on Which Registered | | :-------------------- | :------------- | :------------------------------------------------ | :---------------------------------------- | | SL Green Realty Corp. | SLG | Common Stock, $0.01 par value | New York Stock Exchange | | SL Green Realty Corp. | SLG.PRI | 6.500% Series I Cumulative Redeemable Preferred Stock, $0.01 par value | New York Stock Exchange | - As of May 4, 2023, **64,375,527 shares** of SL Green Realty Corp.'s common stock were outstanding[7](index=7&type=chunk) [EXPLANATORY NOTE](index=3&type=section&id=EXPLANATORY%20NOTE) [Company Structure and Consolidation](index=3&type=section&id=Company%20Structure%20and%20Consolidation) SL Green Realty Corp. operates as a self-administered and self-managed real estate investment trust (REIT) and is the sole managing general partner of SL Green Operating Partnership, L.P. The Company owns 93.82% of the Operating Partnership, and their financial results are consolidated, as the Company has no significant assets other than its investment in the Operating Partnership - SL Green Realty Corp. is a Maryland REIT and the sole managing general partner of SL Green Operating Partnership, L.P[10](index=10&type=chunk) - As of March 31, 2023, the Company owns **93.82%** of the outstanding general and limited partnership interest in the Operating Partnership[11](index=11&type=chunk) - The financial results of the Operating Partnership are consolidated into the Company's financial statements, as substantially all assets and operations are held by the Operating Partnership[12](index=12&type=chunk) [Benefits of Combined Reporting](index=3&type=section&id=Benefits%20of%20Combined%20Reporting) Combining the quarterly reports of SL Green Realty Corp. and SL Green Operating Partnership, L.P. into a single report enhances investor understanding by presenting the business holistically, eliminates duplicative disclosure for a streamlined presentation, and creates time and cost efficiencies - Combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business - Combined reports eliminate duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company's disclosure applies to both the Company and the Operating Partnership - Combined reports create time and cost efficiencies through the preparation of one combined report instead of two separate reports[15](index=15&type=chunk) [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for SL Green Realty Corp. and SL Green Operating Partnership, L.P. for the three months ended March 31, 2023, and comparative periods, including balance sheets, statements of operations, comprehensive income, equity/capital, and cash flows, along with detailed notes [FINANCIAL STATEMENTS OF SL GREEN REALTY CORP.](index=5&type=section&id=FINANCIAL%20STATEMENTS%20OF%20SL%20GREEN%20REALTY%20CORP.) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) SL Green Realty Corp.'s consolidated balance sheets show a slight decrease in total assets and an increase in total liabilities from December 31, 2022, to March 31, 2023, leading to a reduction in total equity Consolidated Balance Sheet Highlights (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :-------------------- | :------------- | :---------------- | | Total Assets | $12,342,119 | $12,355,794 | | Total Liabilities | $7,361,827 | $7,260,936 | | Total Equity | $4,529,174 | $4,646,922 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2023, SL Green Realty Corp. reported a net loss of **$38.4 million**, a significant decline from a net income of **$13.5 million** in the prior year, primarily driven by increased expenses, particularly interest expense and depreciation Consolidated Statements of Operations Highlights (in thousands, except per share data) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $223,575 | $187,964 | | Total Expenses | $253,029 | $168,699 | | Net (Loss) Income | $(38,357) | $13,485 | | Net (Loss) Income Attributable to SL Green Common Stockholders | $(39,731) | $7,751 | | Basic (Loss) Earnings Per Share | $(0.63) | $0.12 | | Diluted (Loss) Earnings Per Share | $(0.63) | $0.11 | - Rental revenue, net, increased from **$156,031 thousand** in 2022 to **$195,042 thousand** in 2023 - Investment income decreased from **$19,888 thousand** in 2022 to **$9,057 thousand** in 2023 - Interest expense, net of interest income, significantly increased from **$15,070 thousand** in 2022 to **$41,653 thousand** in 2023 - Depreciation and amortization increased from **$46,983 thousand** in 2022 to **$78,548 thousand** in 2023[29](index=29&type=chunk) [Consolidated Statements of Comprehensive (Loss) Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) SL Green Realty Corp. reported a comprehensive loss of **$70.4 million** for the three months ended March 31, 2023, a substantial shift from a comprehensive income of **$55.3 million** in the prior year, primarily due to a decrease in the unrealized value of derivative instruments Consolidated Statements of Comprehensive (Loss) Income Highlights (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------------------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net (Loss) Income | $(38,357) | $13,485 | | (Decrease) Increase in Unrealized Value of Derivative Instruments (including JV share) | $(31,059) | $43,567 | | Decrease in Unrealized Value of Marketable Securities | $(968) | $(1,793) | | Other Comprehensive (Loss) Income | $(32,027) | $41,774 | | Comprehensive (Loss) Income | $(70,384) | $55,259 | | Comprehensive (Loss) Income Attributable to SL Green | $(66,169) | $50,986 | [Consolidated Statements of Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Equity) SL Green Realty Corp.'s total equity decreased from **$4.65 billion** at December 31, 2022, to **$4.53 billion** at March 31, 2023, primarily due to net loss, other comprehensive loss, and cash distributions Consolidated Statements of Equity Highlights (in thousands) | Item | Balance at December 31, 2022 | Balance at March 31, 2023 | | :------------------------------------ | :--------------------------- | :------------------------ | | Total SL Green Stockholders' Equity | $4,585,033 | $4,460,486 | | Noncontrolling Interests in Other Partnerships | $61,889 | $68,688 | | Total Equity | $4,646,922 | $4,529,174 | - Net loss attributable to SL Green common stockholders was **$(35,993) thousand** for the three months ended March 31, 2023 - Other comprehensive loss was **$(30,176) thousand** for the three months ended March 31, 2023 - Cash distributions declared totaled **$(52,236) thousand** for the three months ended March 31, 2023[35](index=35&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) SL Green Realty Corp. experienced a net decrease in cash, cash equivalents, and restricted cash of **$26.8 million** for the three months ended March 31, 2023. This was driven by net cash used in investing activities (**$66.4 million**) and financing activities (**$2.8 million**), partially offset by cash provided by operating activities (**$42.3 million**) Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Net Cash Provided by Operating Activities | $42,349 | $81,402 | | Net Cash (Used in) Provided by Investing Activities | $(66,369) | $13,496 | | Net Cash Used in Financing Activities | $(2,772) | $(124,564) | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | $(26,792) | $(29,666) | - Cash and cash equivalents at period end were **$158,937 thousand** in 2023, down from **$223,674 thousand** in 2022 - Restricted cash at period end increased to **$198,325 thousand** in 2023 from **$83,644 thousand** in 2022[42](index=42&type=chunk) [FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P.](index=12&type=section&id=FINANCIAL%20STATEMENTS%20OF%20SL%20GREEN%20OPERATING%20PARTNERSHIP,%20L.P.) [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets_SLGOP) SL Green Operating Partnership, L.P.'s consolidated balance sheets show a slight decrease in total assets and an increase in total liabilities from December 31, 2022, to March 31, 2023, mirroring the Company's consolidated figures due to their integrated operations SLGOP Consolidated Balance Sheet Highlights (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :-------------------- | :------------- | :---------------- | | Total Assets | $12,342,119 | $12,355,794 | | Total Liabilities | $7,361,827 | $7,260,936 | | Total Capital | $4,529,174 | $4,646,922 | [Consolidated Statements of Operations](index=15&type=section&id=Consolidated%20Statements%20of%20Operations_SLGOP) For the three months ended March 31, 2023, SL Green Operating Partnership, L.P. reported a net loss of **$38.4 million**, a significant shift from a net income of **$13.5 million** in the prior year, reflecting similar trends to the parent company due to increased expenses SLGOP Consolidated Statements of Operations Highlights (in thousands, except per unit data) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $223,575 | $187,964 | | Total Expenses | $253,029 | $168,699 | | Net (Loss) Income | $(38,357) | $13,485 | | Net (Loss) Income Attributable to SLGOP Common Unitholders | $(42,068) | $8,243 | | Basic (Loss) Earnings Per Unit | $(0.63) | $0.12 | | Diluted (Loss) Earnings Per Unit | $(0.63) | $0.11 | [Consolidated Statements of Comprehensive (Loss) Income](index=16&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income_SLGOP) SL Green Operating Partnership, L.P. reported a comprehensive loss of **$70.4 million** for the three months ended March 31, 2023, a significant change from a comprehensive income of **$55.3 million** in the prior year, primarily due to a decrease in the unrealized value of derivative instruments SLGOP Consolidated Statements of Comprehensive (Loss) Income Highlights (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------------------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net (Loss) Income | $(38,357) | $13,485 | | (Decrease) Increase in Unrealized Value of Derivative Instruments (including JV share) | $(31,059) | $43,567 | | Decrease in Unrealized Value of Marketable Securities | $(968) | $(1,793) | | Other Comprehensive (Loss) Income | $(32,027) | $41,774 | | Comprehensive (Loss) Income | $(70,384) | $55,259 | | Comprehensive (Loss) Income Attributable to SLGOP | $(66,908) | $53,125 | [Consolidated Statements of Capital](index=17&type=section&id=Consolidated%20Statements%20of%20Capital_SLGOP) SL Green Operating Partnership, L.P.'s total capital decreased from **$4.65 billion** at December 31, 2022, to **$4.53 billion** at March 31, 2023, primarily due to net loss, other comprehensive loss, and cash distributions, consistent with the parent company's equity changes SLGOP Consolidated Statements of Capital Highlights (in thousands) | Item | Balance at December 31, 2022 | Balance at March 31, 2023 | | :------------------------------------ | :--------------------------- | :------------------------ | | Total SLGOP Partners' Capital | $4,585,033 | $4,460,486 | | Noncontrolling Interests in Other Partnerships | $61,889 | $68,688 | | Total Capital | $4,646,922 | $4,529,174 | - Net loss was **$(35,993) thousand** for the three months ended March 31, 2023 - Other comprehensive loss was **$(30,176) thousand** for the three months ended March 31, 2023 - Cash distributions declared totaled **$(52,236) thousand** for the three months ended March 31, 2023[56](index=56&type=chunk) [Consolidated Statements of Cash Flows](index=18&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows_SLGOP) SL Green Operating Partnership, L.P. experienced a net decrease in cash, cash equivalents, and restricted cash of **$26.8 million** for the three months ended March 31, 2023, mirroring the parent company's cash flow trends, with investing and financing activities being net cash outflows SLGOP Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Net Cash Provided by Operating Activities | $42,349 | $81,402 | | Net Cash (Used in) Provided by Investing Activities | $(66,369) | $13,496 | | Net Cash Used in Financing Activities | $(2,772) | $(124,564) | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | $(26,792) | $(29,666) | [Notes to Consolidated Financial Statements (unaudited)](index=19&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) [1. Organization and Basis of Presentation](index=20&type=section&id=1.%20Organization%20and%20Basis%20of%20Presentation) SL Green Realty Corp. is a self-administered, self-managed REIT primarily engaged in commercial real estate in the New York metropolitan area, with most assets and operations conducted through its Operating Partnership. As of March 31, 2023, the portfolio included **28** consolidated and **23** unconsolidated properties, totaling over **29.7 million square feet** - SL Green Realty Corp. operates as a REIT, primarily focused on commercial real estate in the New York metropolitan area, mainly Manhattan[64](index=64&type=chunk) - As of March 31, 2023, the Company owns **93.82%** of the Operating Partnership, which is considered a variable interest entity (VIE) where the Company is the primary beneficiary[65](index=65&type=chunk) Property Portfolio as of March 31, 2023 (Approximate Square Feet) | Property Type | Consolidated (SF) | Unconsolidated (SF) | Total (SF) | | :-------------- | :------------------ | :-------------------- | :----------- | | Manhattan Office | 10,181,934 | 13,629,381 | 23,811,315 | | Manhattan Retail | 17,888 | 294,865 | 312,753 | | Development/Redevelopment | 1,466,419 | 3,115,241 | 4,581,660 | | Suburban Office | 862,800 | — | 862,800 | | Manhattan Residential | 140,382 | — | 140,382 | | **Total Portfolio** | **12,669,423** | **17,039,487** | **29,708,910** | [2. Significant Accounting Policies](index=21&type=section&id=2.%20Significant%20Accounting%20Policies) This note details the significant accounting policies, including principles of consolidation, investment in commercial real estate properties (depreciation, impairment, lease accounting), cash and restricted cash, fair value measurements, marketable securities, unconsolidated joint ventures, deferred lease costs, revenue recognition, debt and preferred equity investments (loan loss reserves, risk ratings), income taxes, use of estimates, concentrations of credit risk, and recent accounting standards updates - The Company consolidates entities it controls or is the primary beneficiary of VIEs, accounting for non-controlled entities under the equity method[73](index=73&type=chunk)[74](index=74&type=chunk) - Real estate purchase prices are allocated to land, building, and intangibles (above/below-market leases), with depreciation and amortization over estimated useful lives[76](index=76&type=chunk) - Rental revenue for operating leases is recognized on a straight-line basis, with collectability assessed as probable. Debt and preferred equity investments are presented at the net amount expected to be collected, with an allowance for loan losses[92](index=92&type=chunk)[105](index=105&type=chunk) Identified Intangible Assets and Liabilities (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Identified intangible assets (net) | $200,477 | $213,486 | | Identified intangible liabilities (net) | $139,302 | $149,147 | - One tenant, Paramount Global, accounted for **5.5%** of annualized cash rent as of March 31, 2023, indicating a concentration of credit risk[120](index=120&type=chunk) [3. Property Acquisitions](index=27&type=section&id=3.%20Property%20Acquisitions) During the three months ended March 31, 2023, SL Green Realty Corp. did not acquire any properties from a third party - No properties were acquired from a third party during the three months ended March 31, 2023[123](index=123&type=chunk) [4. Properties Held for Sale and Property Dispositions](index=27&type=section&id=4.%20Properties%20Held%20for%20Sale%20and%20Property%20Dispositions) As of March 31, 2023, SL Green Realty Corp. had no properties classified as held for sale and did not dispose of any properties during the three months ended March 31, 2023 - As of March 31, 2023, no properties were classified as held for sale[124](index=124&type=chunk) - No properties were disposed of during the three months ended March 31, 2023[125](index=125&type=chunk) [5. Debt and Preferred Equity Investments](index=28&type=section&id=5.%20Debt%20and%20Preferred%20Equity%20Investments) SL Green's debt and preferred equity investments totaled **$626.8 million** as of March 31, 2023, with a net increase of **$3.5 million** from December 31, 2022. The allowance for loan losses increased to **$13.5 million**, and a significant portion of the portfolio is classified as 'Watch List Assets' (higher potential for loss) Debt and Preferred Equity Investments Activity (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Balance at beginning of year | $623,280 | $1,088,723 | | Debt investment originations/fundings/accretion | $8,455 | $62,992 | | Preferred equity investment originations/accretion | $1,958 | $37,505 | | Net change in loan loss reserves | $(6,890) | — | | Balance at end of period | $626,803 | $623,280 | Debt and Preferred Equity Investments by Risk Rating (in thousands) | Risk Rating | March 31, 2023 | December 31, 2022 | | :---------------------------------------- | :------------- | :---------------- | | 1 - Low Risk Assets | $232,642 | $264,069 | | 2 - Watch List Assets | $394,161 | $352,321 | | 3 - High Risk Assets | — | $6,890 | - As of March 31, 2023, the total allowance for loan losses was **$13,520 thousand**, up from **$6,630 thousand** at December 31, 2022, with a current period provision of **$6,890 thousand**[129](index=129&type=chunk) - Two debt investments with carrying values of **$225.4 million** and **$50.0 million** were on non-accrual status as of March 31, 2023[139](index=139&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) [6. Investments in Unconsolidated Joint Ventures](index=30&type=section&id=6.%20Investments%20in%20Unconsolidated%20Joint%20Ventures) SL Green holds **$3.2 billion** in unconsolidated joint venture investments, primarily in Manhattan commercial properties. The joint ventures reported a combined net loss of **$7.2 million** for the three months ended March 31, 2023, with increased interest expense being a significant factor. One joint venture interest (121 Greene Street) was disposed of, resulting in a **$0.3 million** loss - As of March 31, 2023, the book value of investments in unconsolidated joint ventures was **$3.2 billion**[145](index=145&type=chunk) Combined Statements of Operations for Unconsolidated Joint Ventures (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $389,452 | $335,266 | | Total Expenses | $396,677 | $341,287 | | Net Loss before Loss on Sale | $(7,225) | $(6,021) | | Company's Equity in Net Loss from Unconsolidated Joint Ventures | $(7,412) | $(4,715) | - The joint venture that owns 919 Third Avenue closed on a **$500.0 million** refinancing in April 2023, with a fixed interest rate of **6.11%** through February 2026[72](index=72&type=chunk)[160](index=160&type=chunk) - A **50.0%** ownership interest in 121 Greene Street was disposed of in February 2023, resulting in a **$0.3 million** loss[154](index=154&type=chunk) [7. Deferred Costs](index=34&type=section&id=7.%20Deferred%20Costs) Net deferred costs, primarily deferred leasing costs, decreased from **$121.2 million** at December 31, 2022, to **$117.6 million** at March 31, 2023, due to accumulated amortization Deferred Costs (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :------------------------ | :------------- | :---------------- | | Deferred leasing costs | $406,407 | $407,188 | | Less: accumulated amortization | $(288,805) | $(286,031) | | Deferred costs, net | $117,602 | $121,157 | [8. Mortgages and Other Loans Payable](index=35&type=section&id=8.%20Mortgages%20and%20Other%20Loans%20Payable) Total mortgages and other loans payable, net, remained stable at **$3.23 billion** as of March 31, 2023, compared to December 31, 2022. The majority of this debt is fixed-rate, with a significant portion maturing in 2027 Mortgages and Other Loans Payable (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Total mortgages and other loans payable | $3,234,489 | $3,235,962 | | Deferred financing costs, net | $(7,708) | $(8,399) | | Total mortgages and other loans payable, net | $3,226,781 | $3,227,563 | - Fixed rate debt constitutes **$3.16 billion** of the total, with a large portion (**$1.71 billion**) related to 245 Park Avenue maturing in June 2027[169](index=169&type=chunk) - The gross book value of properties collateralizing these loans was approximately **$3.8 billion** as of March 31, 2023[172](index=172&type=chunk) [9. Corporate Indebtedness](index=35&type=section&id=9.%20Corporate%20Indebtedness) SL Green's corporate indebtedness includes a **$1.25 billion** revolving credit facility, **$1.25 billion** in term loans, and **$100.0 million** in senior unsecured notes. The Company was in compliance with all debt covenants as of March 31, 2023. Interest expense, net, significantly increased to **$41.7 million** for the three months ended March 31, 2023, from **$15.1 million** in the prior year, driven by higher interest rates and increased debt balances - The 2021 credit facility includes a **$1.25 billion** revolving credit facility and **$1.25 billion** in term loans, with maturity dates ranging from May 2026 to May 2027[173](index=173&type=chunk) - As of March 31, 2023, **$490.0 million** was drawn under the revolving credit facility, and **$1.25 billion** was outstanding under term loan facilities, with **$760.0 million** undrawn capacity[177](index=177&type=chunk) - A **$425.0 million** 2022 term loan matures in October 2023, with a six-month extension option[179](index=179&type=chunk) - The Company was in compliance with all restrictive covenants related to its credit facilities and senior unsecured notes as of March 31, 2023[185](index=185&type=chunk) Consolidated Interest Expense, Net (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Interest expense before capitalized interest | $64,843 | $32,052 | | Interest capitalized | $(25,464) | $(17,941) | | Interest expense, net | $41,653 | $15,070 | [10. Related Party Transactions](index=38&type=section&id=10.%20Related%20Party%20Transactions) Related party transactions include services from Alliance Building Services (partially owned by a director's son prior to 2023), an investment by executives in the One Vanderbilt project, and lease agreements for corporate headquarters and Summit One Vanderbilt. Related party receivables totaled **$26.8 million** as of March 31, 2023 - Income from profit participation with Alliance Building Services (a related party) was **$0.7 million** for the three months ended March 31, 2022[190](index=190&type=chunk) - Executives Marc Holliday and Andrew Mathias invested in the One Vanderbilt project, with their entities receiving a percentage of profits above the Company's capital contributions[191](index=191&type=chunk) - Messrs. Holliday and Mathias tendered **50%** of their interests in the One Vanderbilt property (excluding Summit) for **$17.9 million** and **$11.9 million**, respectively, in July 2022, following stabilization[192](index=192&type=chunk) Related Party Receivables (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :---------------------- | :------------- | :---------------- | | Due from joint ventures | $25,976 | $26,812 | | Other | $818 | $540 | | Related party receivables | $26,794 | $27,352 | [11. Noncontrolling Interests on the Company's Consolidated Financial Statements](index=39&type=section&id=11.%20Noncontrolling%20Interests%20on%20the%20Company's%20Consolidated%20Financial%20Statements) Noncontrolling interests in the Operating Partnership, representing **6.18%** of outstanding units as of March 31, 2023, are recorded at the greater of cost basis or fair market value. Total noncontrolling interests in the Operating Partnership increased to **$273.2 million** from **$270.0 million** at December 31, 2022 - Noncontrolling interests in the Operating Partnership represent **6.18%** (**4,239,335 units**) of outstanding units as of March 31, 2023[197](index=197&type=chunk) Noncontrolling Interests in Operating Partnership Activity (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :-------------------------------------- | :------------- | :---------------- | | Balance at beginning of period | $269,993 | $344,252 | | Distributions | $(3,822) | $(16,272) | | Issuance of common units | $6,265 | $22,855 | | Redemption and conversion of common units | $(5,220) | $(40,901) | | Net loss | $(2,337) | $(5,794) | | Fair value adjustment | $10,147 | $(39,974) | | Balance at end of period | $273,175 | $269,993 | [12. Stockholders' Equity of the Company](index=40&type=section&id=12.%20Stockholders'%20Equity%20of%20the%20Company) SL Green's common stock outstanding was **64.37 million shares** as of March 31, 2023. The Company has a **$3.5 billion** share repurchase program, under which no shares were repurchased in Q1 2023. The Dividend Reinvestment and Stock Purchase Plan (DRSPP) issued **5,280 shares** in Q1 2023. Basic and diluted loss per share were **$(0.63)** for the three months ended March 31, 2023 - As of March 31, 2023, **64,373,485 shares** of common stock were issued and outstanding[205](index=205&type=chunk) - The Company has a **$3.5 billion** share repurchase program, with no shares repurchased during the three months ended March 31, 2023[207](index=207&type=chunk)[208](index=208&type=chunk) Common Stock Issued via DRSPP (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Shares of common stock issued | 5,280 | 1,132 | | Dividend reinvestments/stock purchases under the DRSPP | $184 | $89 | Basic and Diluted Earnings Per Share (in thousands, except per share data) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net (Loss) Income Attributable to SL Green Common Stockholders (Basic) | $(40,137) | $7,416 | | Basic (Loss) Earnings Per Share | $(0.63) | $0.12 | | Diluted (Loss) Earnings Per Share | $(0.63) | $0.11 | [13. Partners' Capital of the Operating Partnership](index=42&type=section&id=13.%20Partners'%20Capital%20of%20the%20Operating%20Partnership) As of March 31, 2023, SL Green owned **64.37 million partnership interests** and **9.2 million Series I Preferred Units** in the Operating Partnership. Non-SL Green limited partners owned **6.18%** of common units. Basic and diluted loss per unit were **$(0.63)** for the three months ended March 31, 2023 - As of March 31, 2023, SL Green owned **64,373,485** general and limited partnership interests and **9,200,000** Series I Preferred Units in the Operating Partnership[215](index=215&type=chunk) - Limited partners other than SL Green owned **6.18%** (**4,239,335 common units**) of the Operating Partnership as of March 31, 2023[219](index=219&type=chunk) Basic and Diluted Earnings Per Unit (in thousands, except per unit data) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net (Loss) Income Attributable to SLGOP Common Unitholders (Basic) | $(42,974) | $7,908 | | Basic (Loss) Earnings Per Unit | $(0.63) | $0.12 | | Diluted (Loss) Earnings Per Unit | $(0.63) | $0.11 | [14. Share-based Compensation](index=44&type=section&id=14.%20Share-based%20Compensation) SL Green's share-based compensation plans include the 2005 Stock Option and Incentive Plan, which had **6.1 million fungible units** available for issuance as of March 31, 2023. No compensation expense was recognized for stock options in Q1 2023. Restricted stock compensation expense was **$2.1 million**, and LTIP Unit compensation expense was **$10.0 million** for the three months ended March 31, 2023 - The 2005 Stock Option and Incentive Plan authorizes various equity-based awards, with **6.1 million fungible units** available for issuance as of March 31, 2023[224](index=224&type=chunk) - No compensation expense was recognized for stock options during the three months ended March 31, 2023[230](index=230&type=chunk) Restricted Stock Compensation (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :---------------------------------- | :------------- | :---------------- | | Balance at beginning of period | 3,758,174 | 3,459,363 | | Granted | 13,000 | 314,995 | | Canceled | (950) | (16,184) | | Balance at end of period | 3,770,224 | 3,758,174 | | Vested during the period | 143,115 | 118,255 | | Compensation expense recorded | $2,064 | $10,134 | | Total fair value of restricted stock granted during the period | $484 | $16,805 | - Compensation expense for bonus, time-based, and performance-based LTIP Unit awards was **$10.0 million** for the three months ended March 31, 2023[233](index=233&type=chunk) [15. Accumulated Other Comprehensive Income](index=46&type=section&id=15.%20Accumulated%20Other%20Comprehensive%20Income) Accumulated other comprehensive income decreased significantly from **$49.6 million** at December 31, 2022, to **$19.4 million** at March 31, 2023, primarily due to other comprehensive loss before reclassifications and amounts reclassified from accumulated other comprehensive income Changes in Accumulated Other Comprehensive Income (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :---------------------------------------------------------------- | :------------- | :---------------- | | Balance at beginning of period | $49,604 | $49,604 | | Other comprehensive loss before reclassifications | $(19,200) | — | | Amounts reclassified from accumulated other comprehensive income | $(10,976) | — | | Balance at end of period | $19,428 | $49,604 | - The decrease was driven by a net unrealized loss on derivative instruments and marketable securities[239](index=239&type=chunk) [16. Fair Value Measurements](index=47&type=section&id=16.%20Fair%20Value%20Measurements) SL Green measures certain financial assets and liabilities at fair value using a three-level hierarchy. Marketable securities and derivative instruments are primarily valued using Level 2 inputs. Debt and preferred equity investments and borrowings are valued using Level 3 inputs, with estimated fair values for debt and preferred equity investments ranging between **$0.5 billion** and **$0.6 billion** as of March 31, 2023 - Fair value measurements are categorized into Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[242](index=242&type=chunk) Assets and Liabilities Measured at Fair Value (in thousands) | Item | March 31, 2023 (Total) | March 31, 2023 (Level 2) | December 31, 2022 (Total) | December 31, 2022 (Level 2) | | :-------------------------------------------- | :--------------------- | :----------------------- | :------------------------ | :------------------------ | | Marketable securities available-for-sale | $10,273 | $10,273 | $11,240 | $11,240 | | Interest rate cap and swap agreements (Assets) | $37,082 | $37,082 | $57,660 | $57,660 | | Interest rate cap and swap agreements (Liabilities) | $15,759 | $15,759 | $10,142 | $10,142 | - Debt and preferred equity investments had an estimated fair value ranging between **$0.5 billion** and **$0.6 billion** as of March 31, 2023, and are classified as Level 3[249](index=249&type=chunk) [17. Financial Instruments: Derivatives and Hedging](index=49&type=section&id=17.%20Financial%20Instruments:%20Derivatives%20and%20Hedging) SL Green uses derivative instruments like interest rate swaps and caps to manage interest rate risk, recognizing them at fair value on the balance sheet. For the three months ended March 31, 2023, the Company recorded a **$0.2 million** gain from changes in the fair value of an interest rate cap sold. Gains and losses on terminated hedges are reclassified into earnings as an adjustment to interest expense over the related mortgage obligation term - The Company uses interest rate swaps, caps, collars, and floors to manage interest rate risk, recognizing all derivatives at fair value on the balance sheet[253](index=253&type=chunk) Consolidated Derivative Financial Instruments Fair Value (in thousands) | Instrument Type | Notional Value (Inception) | Fair Value (March 31, 2023) | | :---------------- | :------------------------- | :-------------------------- | | Interest Rate Cap | $1,786,717 | $5,615 | | Interest Rate Swap | $1,600,000 | $15,708 | | **Total** | **$3,386,717** | **$21,323** | - A gain of **$0.2 million** was recorded from changes in the fair value of an interest rate cap sold during Q1 2023[255](index=255&type=chunk) - An estimated **$(38.5) million** of accumulated other comprehensive income will be reclassified into interest expense within the next **12 months**[258](index=258&type=chunk) [18. Lease Income](index=51&type=section&id=18.%20Lease%20Income) Total rental revenue increased to **$195.0 million** for the three months ended March 31, 2023, from **$156.0 million** in the prior year. This increase was primarily driven by higher fixed lease payments and a positive amortization of acquired below-market leases Components of Lease Income from Operating Leases (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Fixed lease payments | $166,353 | $136,581 | | Variable lease payments | $20,450 | $19,555 | | Total lease payments | $186,803 | $156,136 | | Amortization of acquired above and below-market leases | $8,239 | $(105) | | Total rental revenue | $195,042 | $156,031 | - Sublease income was **$48.9 million** for Q1 2023, down from **$56.2 million** in Q1 2022[263](index=263&type=chunk) [19. Commitments and Contingencies](index=51&type=section&id=19.%20Commitments%20and%20Contingencies) As of March 31, 2023, SL Green Realty Corp. and its Operating Partnership were not involved in any material litigation and management believes properties are in compliance with environmental regulations, with no material adverse impact expected from environmental liabilities - No material litigation was ongoing or threatened against the Company or its portfolio as of March 31, 2023[265](index=265&type=chunk) - Management believes properties comply with environmental regulations, and no material adverse environmental liability is anticipated[266](index=266&type=chunk) [20. Segment Information](index=52&type=section&id=20.%20Segment%20Information) SL Green operates in two reportable segments: real estate and debt and preferred equity investments. For Q1 2023, the real estate segment generated **$214.5 million** in revenue and a net loss of **$45.3 million**, while the debt and preferred equity segment generated **$9.1 million** in revenue and a net income of **$6.9 million** - The Company has two reportable segments: real estate and debt and preferred equity investments[269](index=269&type=chunk) Selected Consolidated Results of Operations by Segment (in thousands) | Segment | Total Revenues (Q1 2023) | Total Revenues (Q1 2022) | Net (Loss) Income (Q1 2023) | Net (Loss) Income (Q1 2022) | | :---------------------------- | :----------------------- | :----------------------- | :-------------------------- | :-------------------------- | | Real Estate Segment | $214,518 | $168,076 | $(45,301) | $(3,482) | | Debt and Preferred Equity Segment | $9,057 | $19,888 | $6,944 | $16,967 | | Total Company | $223,575 | $187,964 | $(38,357) | $13,485 | Selected Total Assets by Segment (in thousands) | Segment | March 31, 2023 | December 31, 2022 | | :---------------------------- | :------------- | :---------------- | | Real Estate Segment | $11,710,030 | $11,727,418 | | Debt and Preferred Equity Segment | $632,089 | $628,376 | | Total Company | $12,342,119 | $12,355,794 | [PART II. OTHER INFORMATION](index=52&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=52&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on SL Green's financial condition and results of operations for the three months ended March 31, 2023, highlighting key drivers of revenue and expense changes, liquidity, capital resources, and risk management strategies [Overview](index=53&type=section&id=Overview) SL Green Realty Corp. is a self-managed REIT focused on acquiring, developing, and managing commercial real estate, primarily office properties in the New York metropolitan area. As of March 31, 2023, the portfolio included **28** consolidated and **23** unconsolidated properties, totaling over **29.7 million square feet**, and **$626.8 million** in debt and preferred equity investments - SL Green is a REIT primarily engaged in commercial real estate, mainly office properties, in the New York metropolitan area[274](index=274&type=chunk) Property Portfolio as of March 31, 2023 (Approximate Square Feet) | Property Type | Consolidated (SF) | Unconsolidated (SF) | Total (SF) | | :-------------- | :------------------ | :-------------------- | :----------- | | Manhattan Office | 10,181,934 | 13,629,381 | 23,811,315 | | Manhattan Retail | 17,888 | 294,865 | 312,753 | | Development/Redevelopment | 1,466,419 | 3,115,241 | 4,581,660 | | Suburban Office | 862,800 | — | 862,800 | | Manhattan Residential | 140,382 | — | 140,382 | | **Total Portfolio** | **12,669,423** | **17,039,487** | **29,708,910** | - The Company held debt and preferred equity investments with a book value of **$626.8 million** as of March 31, 2023[277](index=277&type=chunk) [Critical Accounting Policies and Estimates](index=53&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) SL Green's critical accounting policies and estimates, including those for real estate investments, joint ventures, lease classification, revenue recognition, and debt/preferred equity investments, remained materially unchanged during the three months ended March 31, 2023 - No material changes occurred to critical accounting policies and estimates during the three months ended March 31, 2023[278](index=278&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) For the three months ended March 31, 2023, total revenues increased by **19.0%** to **$223.6 million**, primarily due to the acquisition of 245 Park Avenue and higher other income. However, total expenses increased by **49.9%** to **$253.0 million**, leading to a net loss of **$38.4 million**, a significant decline from a net income of **$13.5 million** in the prior year. This was mainly driven by substantial increases in interest expense and depreciation Consolidated Results of Operations (in millions) | Item | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------------------------- | :------ | :------ | :--------- | :--------- | | Rental revenue | $195.0 | $156.0 | $39.0 | 25.0% | | Investment income | $9.1 | $19.9 | $(10.8) | (54.3)% | | Other income | $19.5 | $12.0 | $7.5 | 62.5% | | **Total revenues** | **$223.6** | **$187.9** | **$35.7** | **19.0%** | | Property operating expenses | $99.7 | $79.8 | $19.9 | 24.9% | | Interest expense and amortization of deferred financing costs, net of interest income | $(43.7) | $(17.0) | $(26.7) | 157.1% | | Depreciation and amortization | $(78.5) | $(47.0) | $(31.5) | 67.0% | | Loan loss and other investment reserves, net of recoveries | $(6.9) | — | $(6.9) | 100.0% | | **Net (loss) income** | **$(38.4)** | **$13.5** | **$(51.9)** | **(384.4)%** | - Rental revenues increased primarily due to the acquisition of 245 Park Avenue (**$40.8 million**) - Investment income decreased due to a lower weighted average debt and preferred equity investment balance - Other income increased due to Summit One Vanderbilt operations (**$5.8 million**) and higher lease termination income (**$6.4 million** vs. **$5.4 million**) - Property operating expenses increased due to the acquisition of 245 Park Avenue (**$14.5 million**) and increased variable expenses and real estate taxes at Same-Store Properties - Equity in net loss from unconsolidated joint ventures increased due to higher interest expense across the joint venture portfolio (**$15.2 million**)[283](index=283&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk)[292](index=292&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) SL Green had **$0.9 billion** in liquidity as of March 31, 2023, comprising **$760.0 million** in revolving credit facility availability and **$169.2 million** in cash. The Company anticipates significant debt maturities and capital expenditures in the coming years, with **$1.64 billion** due in the remainder of 2023. Funding is expected from operations, existing liquidity, and potential refinancing or divestitures - As of March 31, 2023, liquidity totaled **$0.9 billion**, including **$760.0 million** available under the revolving credit facility and **$169.2 million** consolidated cash on hand[299](index=299&type=chunk) Combined Aggregate Principal Maturities (in thousands) | Year | Property Mortgages and Other Loans | Revolving Credit Facility | Unsecured Term Loans | Senior Unsecured Notes | Trust Preferred Securities | Financing Leases | Operating Leases | Estimated Interest Expense | Joint Venture Debt | Total | | :------------ | :--------------------------------- | :------------------------ | :------------------- | :--------------------- | :------------------------- | :--------------- | :--------------- | :------------------------- | :----------------- | :---------- | | Remaining 2023 | $264,502 | — | — | — | — | $2,353 | $39,951 | $189,204 | $1,146,281 | $1,642,291 | | 2024 | $337,237 | — | $625,000 | — | — | $3,180 | $58,068 | $215,423 | $927,320 | $2,166,228 | | 2025 | $370,000 | — | — | $100,000 | — | $3,228 | $58,207 | $181,523 | $1,585,610 | $2,298,568 | | 2026 | — | — | — | — | — | $3,276 | $58,347 | $154,671 | $107,137 | $323,431 | | 2027 | $2,262,750 | $490,000 | $1,000,000 | — | — | $3,325 | $58,358 | $53,961 | $299,417 | $4,167,811 | | Thereafter | — | — | $50,000 | — | $100,000 | $200,169 | $1,334,570 | $34,879 | $2,130,404 | $3,850,022 | | **Total** | **$3,234,489** | **$490,000** | **$1,675,000** | **$100,000** | **$100,000** | **$215,531** | **$1,607,501** | **$829,661** | **$6,196,169** | **$14,448,351** | - Expected recurring capital expenditures on consolidated properties for the remainder of 2023: **$63.7 million** - Expected development/redevelopment expenditures on consolidated properties for the remainder of 2023: **$94.5 million** - Expected share of capital expenditures at joint venture properties for the remainder of 2023: **$204.5 million**[298](index=298&type=chunk) [Capitalization](index=59&type=section&id=Capitalization) As of March 31, 2023, SL Green had **64.37 million common shares** outstanding. The Company's **$3.5 billion** share repurchase program had no repurchases in Q1 2023. The Dividend Reinvestment and Stock Purchase Plan (DRSPP) issued **5,280 shares**, and the 2005 Stock Option and Incentive Plan had **6.1 million fungible units** available - As of March 31, 2023, **64,373,485 shares** of common stock were issued and outstanding[307](index=307&type=chunk) - The **$3.5 billion** share repurchase program had no share repurchases during the three months ended March 31, 2023[308](index=308&type=chunk)[309](index=309&type=chunk) DRSPP Activity (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Shares of common stock issued | 5,280 | 1,132 | | Dividend reinvestments/stock purchases under the DRSPP | $184 | $89 | - The 2005 Stock Option and Incentive Plan had **6.1 million fungible units** available for issuance as of March 31, 2023[312](index=312&type=chunk) [Indebtedness](index=61&type=section&id=Indebtedness) SL Green's total debt increased to **$5.6 billion** as of March 31, 2023, from **$5.5 billion** at December 31, 2022. The weighted average interest rate rose to **4.41%** from **3.55%**. Fixed-rate debt constituted **89.5%** of the total, with a net exposure to variable rate debt of **8.0%** after mitigating effects of variable rate investments. The Company was in compliance with all debt covenants Debt Summary (in thousands) | Item | March 31, 2023 | December 31, 2022 | | :-------------------------------------- | :------------- | :---------------- | | Total debt | $5,599,489 | $5,535,962 | | Debt, preferred equity, and other investments subject to variable rate | $149,754 | $144,056 | | Net exposure to variable rate debt | $435,394 | $376,092 | Debt Composition and Effective Interest Rate | Item | March 31, 2023 | December 31, 2022 | | :-------------------------------------- | :------------- | :---------------- | | Fixed rate debt (% of total) | 89.5% | 90.6% | | Variable rate debt (% of total) | 10.5% | 9.4% | | Effective interest rate | 4.41% | 3.55% | - The net ratio of variable rate debt to total debt was **8.0%** as of March 31, 2023, inclusive of mitigating investments[318](index=318&type=chunk) - A hypothetical **100 basis point** increase in floating rates would increase consolidated annual interest cost by **$4.1 million** and joint venture annual interest cost by **$6.7 million**[328](index=328&type=chunk) [Off-Balance Sheet Arrangements](index=63&type=section&id=Off-Balance%20Sheet%20Arrangements) SL Green has off-balance sheet investments, primarily joint ventures and debt/preferred equity investments, which are generally accounted for under the equity method due to significant influence but not control. These arrangements are detailed in Notes 5 and 6 of the financial statements - Off-balance sheet investments include joint ventures and debt and preferred equity investments, mostly accounted for under the equity method[331](index=331&type=chunk) [Dividends/Distributions](index=63&type=section&id=Dividends/Distributions) To maintain REIT qualification, SL Green must distribute at least **90%** of its REIT taxable income annually. Dividends can be paid in cash, stock, or a combination, subject to IRS limitations and available cash after meeting operating requirements and debt service - To maintain REIT qualification, SL Green must pay annual dividends of at least **90%** of its REIT taxable income[332](index=332&type=chunk) - Dividends may be paid in cash, stock, or a combination, and are subject to available cash after meeting operating requirements and debt service[333](index=333&type=chunk)[334](index=334&type=chunk) [Insurance](index=63&type=section&id=Insurance) SL Green maintains 'all-risk' property and rental value coverage, including terrorism, through two property insurance programs and liability insurance. It also uses captive insurance companies (Belmont and Ticonderoga) for NBCR terrorist acts. The Company monitors third-party insurance for joint ventures and triple net leases - SL Green maintains 'all-risk' property and rental value coverage, including flood, earthquake, and terrorism (excluding NBCR)[335](index=335&type=chunk) - Captive insurance companies, Belmont Insurance Company and Ticonderoga Insurance Company, provide coverage for NBCR terrorist acts[335](index=335&type=chunk) - The Company monitors insurance coverage for properties held by joint ventures or subject to triple net leases, though it does not control these policies[336](index=336&type=chunk) [Funds from Operations](index=63&type=section&id=Funds%20from%20Operations) Funds from Operations (FFO) attributable to SL Green common stockholders and unitholders decreased to **$105.5 million** for the three months ended March 31, 2023, from **$115.8 million** in the prior year. FFO is a non-GAAP measure used to evaluate REIT performance, excluding real estate depreciation, amortization, and property disposition gains/losses - FFO is a non-GAAP financial measure used to evaluate REIT performance, excluding real estate depreciation, amortization, and property disposition gains/losses[337](index=337&type=chunk)[338](index=338&type=chunk) Funds from Operations (FFO) (in thousands) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net (Loss) Income Attributable to SL Green Common Stockholders | $(39,731) | $7,751 | | Funds from Operations Attributable to SL Green Common Stockholders and Unit Holders | $105,485 | $115,796 | [Inflation](index=64&type=section&id=Inflation) SL Green expects inflationary increases to be partially offset by contractual rent increases and expense escalations in its office leases, which typically include provisions for real estate tax and operating expense adjustments based on CPI or other measures - Office leases generally include provisions for real estate tax and operating expense escalations, as well as fixed base rent increases, which are expected to partially offset inflationary increases[340](index=340&type=chunk) [Accounting Standards Updates](index=64&type=section&id=Accounting%20Standards%20Updates) The Accounting Standards Updates are discussed in Note 2, 'Significant Accounting Policies-Accounting Standards Updates' in the accompanying consolidated financial statements - Accounting Standards Updates are detailed in Note 2 of the consolidated financial statements[341](index=341&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=65&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) SL Green's exposures to market risk, primarily interest rate risk, have not materially changed since December 31, 2022. Further details are provided in Item 2 of this report and the Annual Report on Form 10-K - Market risk exposures have not materially changed since December 31, 2022[346](index=346&type=chunk) - Quantitative and qualitative disclosures about market risk are referenced to Item 2 of this Quarterly Report and Item 7 of the Annual Report on Form 10-K[346](index=346&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=67&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Both SL Green Realty Corp. and SL Green Operating Partnership, L.P. concluded that their disclosure controls and procedures were effective as of March 31, 2023, providing reasonable assurance for timely information disclosure. There were no significant changes in internal control over financial reporting during the quarter - SL Green Realty Corp.'s Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of March 31, 2023[349](index=349&type=chunk) - SL Green Operating Partnership, L.P.'s Chief Executive Officer and Chief Financial Officer also concluded that its disclosure controls and procedures were effective as of March 31, 2023[352](index=352&type=chunk) - No significant changes in internal control over financial reporting occurred for either registrant during the quarter ended March 31, 2023[350](index=350&type=chunk)[353](index=353&type=chunk) [ITEM 1. LEGAL PROCEEDINGS](index=68&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) As of March 31, 2023, SL Green Realty Corp. and SL Green Operating Partnership, L.P. were not involved in any material litigation, nor was any material litigation threatened that could have a material adverse impact - No material litigation was ongoing or threatened against the Company or its portfolio as of March 31, 2023[354](index=354&type=chunk) [ITEM 1A. RISK FACTORS](index=68&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the Risk Factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to the Risk Factors were disclosed as of March 31, 2023, compared to the Annual Report on Form 10-K for 2022[355](index=355&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=69&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) SL Green has a **$3.5 billion** share repurchase program, which saw no share repurchases during the three months ended March 31, 2023. The program has cumulatively repurchased over **36.1 million shares** through 2022 - The Company has a **$3.5 billion** share repurchase program, authorized by the Board of Directors[357](index=357&type=chunk) - No share repurchases were executed under the program during the three months ended March 31, 2023[358](index=358&type=chunk) Cumulative Share Repurchases (excluding OP units) | Period | Shares Repurchased | Average Price Paid per Share | | :------------ | :----------------- | :--------------------------- | | Year ended 2017 | 7,865,206 | $107.81 | | Year ended 2018 | 9,187,480 | $102.06 | | Year ended 2019 | 4,333,260 | $88.69 | | Year ended 2020 | 8,276,032 | $64.30 | | Year ended 2021 | 4,474,649 | $75.44 | | Year ended 2022 | 1,971,092 | $76.69 | [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=70&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) There were no defaults upon senior securities reported for the period - No defaults upon senior securities were reported[360](index=360&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=71&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to SL Green Realty Corp. or SL Green Operating Partnership, L.P - Mine Safety Disclosures are not applicable[361](index=361&type=chunk) [ITEM 5. OTHER INFORMATION](index=72&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No other information was reported under this item - No other information was reported[362](index=362&type=chunk) [ITEM 6. EXHIBITS](index=73&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including amendments to the partnership agreement, certifications under the Sarbanes-Oxley Act, and financial statements formatted in Inline XBRL - Exhibit 3.1: Thirtieth Amendment to the first Amended and Restated Agreement of Limited Partnership of SL Green Operating Partnership, dated as of April 20, 2023 - Exhibits 31.1-31.4: Certifications by CEO and CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for both the Company and the Operating Partnership - Exhibits 32.1-32.4: Certifications by CEO and CFO pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for both the Company and the Operating Partnership - Exhibit 101: Financial statements formatted in Inline XBRL[364](index=364&type=chunk) [SIGNATURES](index=74&type=section&id=SIGNATURES) The report is duly signed on behalf of SL Green Realty Corp. and SL Green Operating Partnership, L.P. by Matthew J. DiLiberto, Chief Financial Officer, on May 5, 2023 - The report was signed by Matthew J. DiLiberto, Chief Financial Officer of SL Green Realty Corp. and the sole general partner of SL Green Operating Partnership, L.P., on May 5, 2023[368](index=368&type=chunk)[370](index=370&type=chunk)

Financial Data and Key Metrics Changes - The company reported a significant outperformance in same-store cash NOI, with mark-to-market rents and same-store NOI both exceeding 5% [21][22] - The same-store office occupancy was slightly above internal forecasts at just over 90%, and leasing volume reached 504,000 square feet, outperforming expectations [21][22] - The quarter's results were ahead of expectations in several key areas, with a notable contribution from lower operating expenses and utility costs [10][21] Business Line Data and Key Metrics Changes - The company is focusing on high-quality commercial assets in Midtown, with expectations for transactions in the coming quarters [22] - The leasing pipeline now stands at 1.2 million square feet, up 70% from the previous earnings call, with 80% of this pipeline in financial services [58] - The company is seeing increased activity in the user buyer market, with recent sales totaling over $725 million to users like Hyundai and Dyson [59] Market Data and Key Metrics Changes - The commercial real estate sector is experiencing a recovery, with signs of demand forming for high-quality assets in Midtown [22] - New York City is projected to welcome 63 million visitors in 2023, nearing pre-pandemic levels, indicating a strong recovery in tourism [31] - The labor market in New York City is showing signs of improvement, with office utilization exceeding 60% on many workdays [56] Company Strategy and Development Direction - The company plans to sell certain assets while looking to joint venture with premier partners for core holdings [6] - The management emphasizes the importance of rethinking office needs and transforming central business districts into vibrant destinations [55] - The company is focused on executing a series of sales, joint ventures, and financings as part of its 2023 business plan [59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to work trend, with many companies mandating employees to return to the office [30] - The company believes that the negative sentiment in the market is overblown, citing strong results and a growing pipeline [106] - Management highlighted the resilience of New York City and its ability to attract talent and adapt to changing economic conditions [18][19] Other Important Information - The company has hedged most of its interest rate exposure through strategic debt repayment and the use of derivative instruments [19] - The completion of East Side Access, now known as Grand Central Madison, is expected to enhance accessibility for commuters [21] Q&A Session Summary Question: Update on the $2 billion of dispositions planned for this year - The company is working on completing joint venture sales and financings as part of its 2023 business plan, feeling positive about the current status [60] Question: Commentary on secured debt that recently expired - The company is in discussions with lenders regarding secured debt and has executed extensions for some maturing loans [40][42] Question: Thoughts on Credit Suisse and UBS merger - The management views the merger as a credit upgrade for the lease, expecting the merged entity to be stronger [92] Question: Update on the redevelopment of 2 Herald - The company is evaluating redevelopment opportunities following WeWork's departure from the space [97] Question: Insights on the leasing pipeline and tenant activity - The leasing pipeline includes a mix of tenants, with many expanding, some staying the same, and others shrinking, indicating a diverse demand [63][64]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13199 (SL Green Realty Corp.) Commission File Number: 33-167793-02 (SL Gre ...

SL Green Realty Corp (NYSE:SLG) Q4 2022 Earnings Conference Call January 26, 2023 2:00 PM ET Company Participants Marc Holliday - Chairman & CEO Andrew Mathias - President & Director Matthew DiLiberto - CFO Steven Durels - EVP & Director, Leasing & Real Property Conference Call Participants Alexander Goldfarb - Piper Sandler & Co. John Kim - BMO Capital Markets Michael Lewis - Truist Securities Stephen Sakwa - Evercore ISI Anthony Paolone - JPMorgan Chase & Co. Blaine Heck - Wells Fargo Securities Ronald Ka ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR Commission File Number: 1-13199 (SL Green Realty Corp.) Commission File Number: 33-167793-0 ...

SL Green Realty Corp. (NYSE:SLG) Q3 2022 Earnings Conference Call October 20, 2022 2:00 PM ET Company Participants Marc Holliday – Chairman and Chief Executive Officer Matt DiLiberto – Chief Financial Officer Steve Durels – Executive Vice President, Director-Leasing and Real Property Andrew Mathias – President Conference Call Participants Alexander Goldfarb – Piper Sandler Steve Sakwa – Evercore ISI Michael Griffin – Citi Anthony Paolone – JPMorgan John Kim – BMO Tom Catherwood – BTIG Michael Lewis – Truist ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13199 (SL Green Realty Corp.) Commission File Number: 33-167793-02 (SL ...

SL Green Realty Corp. (NYSE:SLG) Q2 2022 Results Conference Call July 21, 2022 2:00 PM ET Company Participants Marc Holliday - CEO Matt DiLiberto - CFO Andrew Mathias - President Steve Durels - EVP, Director-Leasing Conference Call Participants Alexander Goldfarb - Piper Sandler Jamie Feldman - Bank of America Michael Bilerman - Citi Steve Sakwa - Evercore ISI Tom Catherwood - BTIG John Kim - BMO Capital Markets Vikram Malhotra - Mizuho Group Michael Lewis - Truist Securities Anthony Powell - Barclays Ronal ...