SL Green(SLG) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Financial Statements This section presents the unaudited consolidated financial statements for SL Green Realty Corp. and SL Green Operating Partnership, L.P., including Balance Sheets, Statements of Operations, and Cash Flows for periods ended June 30, 2025 and 2024 SL Green Realty Corp. Financial Statements SL Green Realty Corp. reported total assets of $11.25 billion as of June 30, 2025, with a net loss of $32.17 million for the six months ended June 30, 2025 Consolidated Balance Sheet Highlights (SL Green Realty Corp.) | Account | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Total commercial real estate properties, net | $4,511.09 | $4,481.66 | | Total assets | $11,252.33 | $10,470.10 | | Total liabilities | $6,889.93 | $5,915.14 | | Total SL Green stockholders' equity | $3,791.50 | $3,951.30 | | Total liabilities and equity | $11,252.33 | $10,470.10 | Consolidated Statement of Operations Highlights (SL Green Realty Corp.) | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $241.92 | $222.82 | $481.76 | $410.70 | | Total expenses | $225.06 | $219.64 | $468.98 | $424.44 | | Net (loss) income | $(6.82) | $1.96 | $(28.36) | $20.35 | | Net (loss) income attributable to SL Green common stockholders | $(11.09) | $(2.16) | $(32.17) | $10.98 | | Diluted (loss) earnings per share | $(0.16) | $(0.04) | $(0.47) | $0.16 | Consolidated Statement of Cash Flows Highlights (SL Green Realty Corp.) | Cash Flow Activity | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $61.20 | $54.70 | | Net cash (used in) provided by investing activities | $(44.49) | $121.80 | | Net cash used in financing activities | $(5.53) | $(196.21) | | Net decrease in cash, cash equivalents, and restricted cash | $11.18 | $(19.71) | SL Green Operating Partnership, L.P. Financial Statements SL Green Operating Partnership, L.P. financial statements are largely consistent with SL Green Realty Corp., reporting $11.25 billion in total assets and a $34.41 million net loss for the six months ended June 30, 2025 - The assets and liabilities of the Operating Partnership are substantially the same as those of SL Green Realty Corp. The primary differences are in the equity section, with the Operating Partnership reporting Partners' Capital instead of Stockholders' Equity[14][15] Consolidated Statement of Operations Highlights (SLGOP) | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $241.92 | $222.82 | $481.76 | $410.70 | | Net (loss) income | $(6.82) | $1.96 | $(28.36) | $20.35 | | Net (loss) income attributable to SLGOP common unitholders | $(11.87) | $(2.31) | $(34.41) | $11.73 | | Diluted (loss) earnings per unit | $(0.18) | $(0.04) | $(0.50) | $0.16 | Notes to Consolidated Financial Statements Notes detail the company's organization, accounting policies, property portfolio of 25.4 million square feet, debt structure, and segment performance across Real Estate, Debt and Preferred Equity Investments, and SUMMIT Property Portfolio Summary (as of June 30, 2025) | Property Type | Number of Buildings | Approximate Square Feet | Weighted Average Leased Occupancy | | :--- | :--- | :--- | :--- | | Manhattan Commercial | 30 | 24,224,826 | 90.4% | | Suburban Office | 7 | 862,800 | 71.4% | | Manhattan Residential | 2 | 362,266 | 99.8% | | Total Core Portfolio | 39 | 25,449,892 | 89.9% | - In January 2025, the company acquired the fee interest in 500 Park Avenue, a 201,411 square foot property, for a gross asset valuation of $127.0 million[139] - During the first quarter of 2025, the company sold 6 condominium units at the Giorgio Armani Residences at 760 Madison Avenue for a total of $99.3 million, recognizing a gain of $0.2 million[144] - The company operates through three reportable segments: Real Estate, Debt and Preferred Equity Investments (DPE), and SUMMIT, with performance evaluated by Net Operating Income (NOI) for Real Estate and Net Income for SUMMIT and DPE segments[293][295] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, highlighting a $1.1 billion liquidity position and a decrease in Funds from Operations (FFO) to $231.1 million for the six months ended June 30, 2025 Comparison of Results (Six Months Ended June 30) | Metric (in millions) | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $481.8 | $410.7 | $71.1 | 17.3% | | Net (loss) income | $(28.4) | $20.3 | $(48.7) | (239.9)% | - The increase in rental revenue for H1 2025 was primarily due to the consolidation of 100 Park Avenue ($20.1 million) and 10 East 53rd Street ($7.6 million), and the acquisition of 500 Park Avenue ($8.1 million)[336] - Equity in net income from unconsolidated joint ventures decreased significantly due to non-recurring large gains on discounted debt extinguishments in the prior year at 2 Herald Square ($126.6 million) and 280 Park Avenue ($22.9 million)[351] - As of June 30, 2025, the company had total liquidity of $1.1 billion, comprising $882.5 million available under its revolving credit facility and $200.1 million of consolidated cash and marketable securities[361] Funds from Operations (FFO) Reconciliation | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) income attributable to SL Green common stockholders | $(32.17) | $10.98 | | Adjustments (Depreciation, JVs, etc.) | $263.23 | $348.40 | | FFO attributable to SL Green common stockholders and unit holders | $231.06 | $359.39 | Quantitative and Qualitative Disclosures about Market Risk The company's primary market risk is interest rate exposure on variable rate debt, with a 100 basis point increase potentially raising annual interest costs by $2.4 million - The company's net exposure to variable rate debt was 7.1% of total consolidated debt as of June 30, 2025, inclusive of the mitigating effect of variable rate investments[377][379] - A hypothetical 100 basis point increase in the applicable floating interest rate would increase the company's share of consolidated annual interest cost by $2.4 million and its share of joint venture annual interest cost by $1.9 million[387] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the disclosure controls and procedures for both SL Green Realty Corp. and SL Green Operating Partnership, L.P. were effective as of June 30, 2025[406][409] - No material changes occurred in internal control over financial reporting during the quarter ended June 30, 2025[407][410] PART II. OTHER INFORMATION Legal Proceedings As of June 30, 2025, neither the Company nor the Operating Partnership was involved in any material litigation or threatened litigation - The company reports no material litigation as of June 30, 2025[411] Risk Factors No material changes to the previously disclosed risk factors were reported for the period ended June 30, 2025 - No material changes to risk factors were reported for the period ended June 30, 2025[412] Unregistered Sales of Equity Securities and Use of Proceeds No shares were repurchased under the company's $3.5 billion share repurchase program during the three months ended June 30, 2025 - No shares were repurchased under the company's $3.5 billion share repurchase program during the second quarter of 2025[414] Defaults Upon Senior Securities The company reported no defaults upon senior securities during the period - None[415] Other Information The company reported no other information for the period - None[417] Exhibits This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial statements