SL Green(US:SLG)2026-02-17 22:27Tenant and Lease Information - Approximately 46.3% of rentable square feet at consolidated properties and 9.3% at unconsolidated joint venture properties are scheduled to expire by December 31, 2030, with annualized escalated rent totaling $316.3 million and $206.3 million respectively[83]. - Five properties accounted for 36.6% of the portfolio's annualized cash rent as of December 31, 2025[87]. - The five largest tenants represented 15.2% of the portfolio's annualized cash rent, with Paramount Global alone accounting for 5.3%[89]. - Annualized cash rents from properties held through long-term leases or operating sublease interests totaled $225.2 million, representing 15.9% of total portfolio annualized cash rent as of December 31, 2025[86]. - Only 2.2% of the portfolio's annualized cash rent was generated by retail properties as of December 31, 2025, indicating limited exposure to retail market risks[91]. - The occupancy rate for Manhattan consolidated office properties was 87.8%, with an economic occupancy rate of 82.5%[163]. - The company has a total of 23.3 million rentable square feet in Manhattan office properties, with a combined occupancy rate of 93.0%[163]. - The total annualized cash rent for expiring leases in 2026 is projected to be $55.69 million, accounting for 9.5% of total annualized cash rent[173]. - The total square footage of expiring leases in 2026 is 810,056 square feet, which is 9.7% of the total square footage[173]. - The total annualized cash rent for the retail properties is $40.82 million, with an occupancy rate of 84.8%[165]. - The total annualized contractual cash rent for residential properties is $45.34 million, with an occupancy rate of 98.7%[165]. - The total square footage for suburban consolidated office properties is 732,800 square feet, with a leasing rate of 79.4%[164]. - The total square footage for the alternative strategy portfolio properties is 2,509,307 square feet, with a leasing rate of 59.3%[165]. - The total annualized cash rent for development/redevelopment properties is $13.05 million, with an occupancy rate of 14.1%[164]. - As of December 31, 2025, the company had 966 tenants across various sectors, contributing to a diversified tenant base[177]. - The total annualized cash rent from expiring leases is $1,311,710,716, with a weighted average rent per square foot of $99.71[175]. - The largest tenant, Paramount Global, contributes 4.4% of the company's annualized cash rent, with a total of $62,335 from 1,604,544 square feet[178]. Financial Performance - Rental revenue increased to $601.3 million in 2025, up 6.8% from $563.2 million in 2024, with a $38.1 million increase[208]. - Total revenues reached $1,003.0 million in 2025, reflecting a 13.2% increase from $886.3 million in 2024, with a $116.7 million increase[208]. - Property operating expenses rose to $405.6 million in 2025, a 18.5% increase from $342.4 million in 2024, with a $63.2 million increase[208]. - Operating income before equity in net income from unconsolidated joint ventures was $374.5 million in 2025, an 8.3% increase from $345.9 million in 2024[208]. - The company reported a net loss of $96.9 million in 2025, compared to a net income of $30.2 million in 2024, representing a 420.9% decrease[208]. - Investment income rose to $29.4 million in 2025, a 20.5% increase from $24.4 million in 2024[208]. - The company experienced a significant increase in transaction-related costs, which rose to $13.9 million in 2025, compared to $0.4 million in 2024, marking a 3,375.0% increase[208]. - Equity in net loss from unconsolidated joint ventures improved to a loss of $56.1 million in 2025, a 68.8% decrease from a loss of $179.7 million in 2024[208]. - Cash provided by operating activities decreased from $129.6 million in 2024 to $82.9 million in 2025, a decline of 35.9%[240]. - Funds from Operations (FFO) attributable to SL Green common stockholders for the year ended December 31, 2025, was $437.7 million, compared to $569.8 million in 2024 and $341.3 million in 2023[273]. Debt and Liquidity - The total principal amount of consolidated indebtedness was $4.0 billion as of December 31, 2025, including $1.2 billion in unsecured bank term loans and $2.1 billion in non-recourse mortgages[107]. - As of December 31, 2025, the total principal amount of indebtedness outstanding at joint venture properties was $12.5 billion, with the company's proportionate share being $5.9 billion[107]. - Scheduled debt payments could adversely affect cash flow, with $555.1 million of consolidated mortgage debt maturing in 2026[110]. - The company has a total mortgage debt, excluding joint venture debt, consisting of $2.1 billion in fixed rate debt with an effective weighted average interest rate of 5.40% as of December 31, 2025[250]. - As of December 31, 2025, the company had liquidity of $781.9 million, consisting of $602.5 million available under the revolving credit facility and $179.4 million in consolidated cash on hand[237]. - The total debt as of December 31, 2025, was $4.04 billion, with fixed rate debt comprising 90.9% and variable rate debt 9.1%[247]. - A hypothetical 100 basis point increase in interest rates would increase net annual interest costs by $2.3 million and joint venture annual interest costs by $4.5 million[112]. - The effective interest rate for total debt increased from 5.17% in 2024 to 5.34% in 2025[247]. - The company’s consolidated long-term debt as of December 31, 2025, was $3.7 billion, with variable rate debt indexed to SOFR accounting for 76.0% of the total debt portfolio[263][261]. Regulatory and Compliance Risks - The company is subject to significant costs to comply with climate change-related regulatory initiatives, particularly in New York City, which could lead to material fines if emissions reductions are not met[105]. - The company expects to be compliant with New York City's Local Law 97 through 2029, with no material financial impact anticipated for the properties[105]. - New York City enacted Local Law 97, setting carbon caps for large buildings starting in 2024, aiming for a 40% reduction in greenhouse gas emissions by 2030 and 80% by 2050[276]. - The company is subject to risks related to compliance with evolving laws and regulations, which may increase general and administrative expenses[143]. - Changes in U.S. federal income tax laws could materially and adversely affect the company and its stockholders[148]. - The company may incur significant costs to comply with various federal, state, and local environmental and health and safety laws[140]. Cybersecurity and Operational Risks - The cybersecurity program is designed to protect the company's information assets and operations from external and internal threats, with a risk-based approach implemented across all levels[155]. - The company has experienced cyber incidents in the past, but they were not material and are not expected to affect the business strategy or financial condition[158]. - The company maintains a cybersecurity incident response plan and monitoring program to support senior leadership and the Board[156]. - The company has implemented various measures to manage cybersecurity risks, including external testing and assessments of its cybersecurity program[155]. - The Audit Committee of the Board provides compliance oversight to the company's risk assessment and management policies[159]. Shareholder and Stock Information - The company has a stock ownership limit where no single stockholder can own more than 9.0% of the common stock to maintain REIT qualification[124]. - The trading price of the company's common stock ranged from $41.53 to $68.38 per share between January 1, 2025, and December 31, 2025[145]. - Future issuances of common stock or preferred stock could dilute existing stockholders' interests without requiring stockholder approval[146]. - The company has a share repurchase program of $3.5 billion, with 36,107,719 shares repurchased as of December 31, 2025[188]. - The company must distribute at least 90% of its taxable income to maintain REIT status, and it has consistently paid dividends since its IPO[186]. - The company expects to pay dividends to stockholders based on distributions received from its Operating Partnership, maintaining a minimum of 90% of REIT taxable income to qualify as a REIT[265]. Property and Development Insights - The company owned or held interests in 16 consolidated commercial office buildings totaling approximately 9.5 million rentable square feet as of December 31, 2025[161]. - The company categorizes properties into Same-Store, Acquisition, and Disposed categories to analyze performance effectively[207]. - SL Green Realty Corp. capitalizes costs related to property development and redevelopment, including construction and interest costs, until projects are substantially complete[199]. - The company assesses its investments for recoverability and writes down any investment to fair value if a loss is determined to be other than temporary[203]. - The company evaluates its real estate properties for impairment quarterly, considering factors such as market conditions and occupancy rates[200]. - The company may originate loans for real estate acquisition and development, accounting for them as real estate investments under the equity method when applicable[204]. - The company has developed a revised TCFD report in 2024, expanding on physical and transition risks and opportunities[277]. - The active development pipeline is set to establish standards for sustainable new construction and responsible community engagement[278]. - The company aims to manage and mitigate climate-related risks to increase the financial value of its buildings[278]. - The company leverages operational excellence to incorporate innovative design and technological solutions[278]. Market and Economic Conditions - Economic volatility and higher interest rates could adversely affect the company's liquidity and financial condition, impacting access to credit and property values[92]. - The company faces significant competition for tenants, with competitive factors including rent, location, and lease terms[84]. - The company may face challenges in acquiring properties due to competition from other investors, which could limit growth opportunities[95]. - Construction projects are subject to delays and increased costs, which could materially affect results of operations[90]. - The company relies on major properties and tenants for revenue, making it vulnerable to their financial stability and potential defaults[88][89].