SL Green(SLG) - 2024 Q1 - Quarterly Results

Introduction and Company Overview Company Profile and Report Scope SL Green Realty Corp, a self-managed REIT specializing in Manhattan properties, held interests in 57 buildings totaling 32.4 million square feet as of March 31, 2024 - SL Green Realty Corp is a self-managed REIT with in-house capabilities in property management, acquisitions, dispositions, financing, development, redevelopment, construction, and leasing[23] - As of March 31, 2024, the Company held interests in 57 buildings totaling 32.4 million square feet, including 28.7 million square feet in Manhattan buildings[23] - The financial data presented in this supplemental reporting package is unaudited and should be read in conjunction with the Company's official regulatory filings[23] Forward-looking Statements Disclaimer This section provides a standard disclaimer that forward-looking statements are not guarantees of future performance and actual results may differ materially - The supplemental reporting package includes 'forward-looking statements' subject to risks and uncertainties that may cause actual results to differ materially from expectations[24] - Forward-looking statements are generally identifiable by words such as 'may,' 'will,' 'should,' 'expect,' 'anticipate,' 'estimate,' 'believe,' 'intend,' 'project,' or 'continue'[24] - The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[24] Definitions of Key Financial Terms Key Financial Metrics Definitions This section defines critical non-GAAP financial measures and real estate specific terms used in the report, such as FFO, FAD, EBITDAre, and NOI - Funds from Operations (FFO) is a non-GAAP measure defined by NAREIT as net income excluding property sales gains/losses, impairment charges, plus real estate depreciation[29] - Funds Available for Distribution (FAD) is a non-GAAP measure calculated from FFO with adjustments for non-cash items, leasing costs, and capital expenditures[28] - Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) is a non-GAAP measure defined by NAREIT to show performance before leverage and certain non-cash items[28] - Net Operating Income (NOI) is a non-GAAP measure calculated as operating income before transaction costs, G&A expenses, and non-real estate revenue[29] First Quarter 2024 Highlights Financial Performance Highlights SL Green Realty Corp reported a significant turnaround in net income and FFO for Q1 2024, driven by a substantial gain on discounted debt extinguishment Q1 2024 vs Q1 2023 Financial Performance (in Millions) | Metric | Q1 2024 ($) | Q1 2023 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Common Stockholders | 13.1 | (39.7) | 52.8 | N/A | | EPS (diluted) | 0.20 | (0.63) | 0.83 | N/A | | FFO | 215.4 | 105.5 | 109.9 | 104.2% | | FFO per share | 3.07 | 1.53 | 1.54 | 100.7% | | Gain on discounted debt extinguishment | 141.7 | N/A | | | | Non-cash fair value adjustments | 5.1 | N/A | | | | Net share of holdover rent (Q1 2023) | N/A | 20.3 | | | - Same-store cash NOI, including the share from unconsolidated joint ventures, increased by 1.2% for Q1 2024 compared to Q1 2023, outperforming company projections[38] Operating and Leasing Activity The company demonstrated strong leasing activity in its Manhattan office portfolio during Q1 2024, signing 60 leases totaling over 633,000 square feet - During the first quarter of 2024, the Company signed 60 office leases in its Manhattan office portfolio totaling 633,660 square feet[38] - The average rent on Manhattan office leases signed in Q1 2024 was $72.38 per rentable square foot, with an average lease term of 6.4 years[38] - Replacement leases saw average starting rents of $77.90 per rentable square foot, representing a 5.5% decrease over previous fully escalated rents[38] - Occupancy in the Manhattan same-store office portfolio was 89.2% as of March 31, 2024, and is expected to increase to more than 91.5% by year-end[39] Investment Activity Q1 2024 saw strategic investment activities including acquiring a partner's interest in 10 East 53rd Street and selling a retail condominium at 717 Fifth Avenue - Entered into a contract to acquire a partner's 45% interest in 10 East 53rd Street for $7.2 million net of debt[40] - Entered into a contract to sell the Palisades Premier Conference Center for $26.3 million, expected to generate $20.0 million in net proceeds[40] - Closed on the sale of the retail condominium at 717 Fifth Avenue for $963.0 million, generating $27.0 million in net proceeds for corporate debt repayment[40] - Launched fundraising for a $1.0 billion opportunistic debt fund to capitalize on capital markets dislocations[40] Debt and Preferred Equity Investment Activity The company's debt and preferred equity (DPE) portfolio maintained a carrying value of $352.3 million with a strong weighted average current yield - The carrying value of the Company's debt and preferred equity (DPE) portfolio was $352.3 million at March 31, 2024[41] - The DPE portfolio had a weighted average current yield of 8.0%, or 9.6% excluding a $50.0 million investment on non-accrual[41] - No DPE investments were sold, repaid, originated, or acquired during the first quarter[41] Financing Activity SL Green successfully modified and extended mortgages on several key properties, improving maturity profiles and maintaining favorable interest rates - Closed on a modification and extension of the mortgage on 10 East 53rd Street, extending it three years to May 2028 with the interest rate fixed at 5.36% from May 2025[42] - Closed on a modification and extension of the $360.0 million mortgage on 100 Park Avenue, extending the maturity date by two years to December 2025[42] - Closed on a modification and extension of the mortgage on 15 Beekman Street, extending it four years to January 2028 with the interest rate fixed at 5.99% through January 2026[42] Earnings Guidance and ESG Recognition The company increased its 2024 FFO guidance due to gains on debt extinguishments and received multiple prestigious ESG awards - Increased 2024 FFO guidance range to $7.35 to $7.65 per share (previously $5.90 to $6.20), reflecting gains on discounted debt extinguishments[43] - Maintained 2024 net income guidance range of $2.73 to $3.03 per share[43] - Received ENERGY STAR Partner of the Year Sustained Excellence Award in 2024 for the seventh consecutive year[43] - Featured on the Sustainalytics 2024 ESG Top-Rated Companies List for the second consecutive year[43] Dividends Declared In Q1 2024, the company declared ordinary monthly dividends for common stock and a quarterly dividend for its Series I Preferred Stock - Declared three monthly ordinary dividends on common stock of $0.25 per share, equating to an annualized dividend of $3.00 per share[44] - Declared a quarterly dividend on 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share, equivalent to an annualized dividend of $1.625 per share[44] Key Financial Data Summary This section provides a snapshot of key financial metrics, including earnings per share, market capitalization, debt, and operating data for recent quarters Key Financial Data (in Thousands, Except Per Share) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income (loss) available to common stockholders (EPS) - diluted | $0.20 | $(2.45) | $(0.38) | $(5.63) | $(0.63) | | Closing price at the end of the period | $55.13 | $45.17 | $37.30 | $30.05 | $23.52 | | Total common shares and units outstanding | 69,223 | 68,675 | 68,537 | 68,625 | 68,612 | | Market value of common equity | $3,816,264 | $3,102,050 | $2,556,430 | $2,062,181 | $1,613,754 | | Total consolidated debt, net | $3,785,503 | $3,490,747 | $3,350,532 | $3,804,919 | $5,577,214 | | Total debt, including SLG share of unconsolidated JV debt | $10,888,726 | $10,859,661 | $10,714,612 | $10,938,594 | $11,795,663 | | Property operating revenues | $141,504 | $151,357 | $150,991 | $185,945 | $195,042 | | Same-Store office occupancy inclusive of leases signed not yet commenced | 89.2% | 89.8% | 89.9% | 89.8% | 90.2% | Comparative Balance Sheets Balance Sheet Overview The balance sheets show a slight increase in total assets quarter-over-quarter but a significant decrease year-over-year, with a substantial reduction in debt Comparative Balance Sheet Data (in Thousands) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | $9,764,292 | $9,531,181 | $9,690,582 | $10,041,288 | $12,342,119 | | Mortgages and other loans payable | $1,701,378 | $1,497,386 | $1,518,872 | $1,520,313 | $3,234,489 | | Total Liabilities | $5,960,644 | $5,675,256 | $5,583,296 | $5,881,455 | $7,812,945 | | SL Green stockholders' equity | $3,803,648 | $3,855,925 | $4,107,243 | $4,159,833 | $4,529,174 | Comparative Statements of Operations Statement of Operations Overview The company reported a net income of $13.1 million in Q1 2024, a significant improvement from a $39.7 million net loss in Q1 2023 Comparative Statement of Operations (in Thousands, Except Per Share) | Metric | Q1 2024 ($) | Q1 2023 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 187,882 | 245,764 | (57,882) | (23.6%) | | Total Operating Expenses | 124,806 | 151,495 | (26,689) | (17.6%) | | Equity in net income (loss) from unconsolidated joint ventures | 111,160 | (7,412) | 118,572 | N/A | | Operating Income | 174,236 | 86,857 | 87,379 | 100.6% | | Interest expense, net of interest income | 31,173 | 41,653 | (10,480) | (25.2%) | | Depreciation and amortization | 48,584 | 78,782 | (30,198) | (38.3%) | | Net Income (Loss) | 18,389 | (38,357) | 56,746 | N/A | | Net Income (Loss) attributable to SL Green common stockholders | 13,141 | (39,731) | 52,872 | N/A | | Diluted earnings (loss) per share | 0.20 | (0.63) | 0.83 | N/A | Comparative Computation of FFO and FAD FFO and FAD Performance The company reported a substantial increase in Funds From Operations (FFO) and Funds Available for Distribution (FAD) for Q1 2024 compared to Q1 2023 Comparative FFO and FAD (in Thousands, Except Per Share) | Metric | Q1 2024 ($) | Q1 2023 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) attributable to SL Green common stockholders | 13,141 | (39,731) | 52,872 | N/A | | Depreciation and amortization | 48,584 | 78,782 | (30,198) | (38.3%) | | Funds From Operations (FFO) | 215,443 | 105,485 | 109,958 | 104.2% | | Funds From Operations - Diluted per Share | 3.07 | 1.53 | 1.54 | 100.7% | | Reported Funds Available for Distribution (FAD) | 189,947 | 73,561 | 116,386 | 158.2% | Consolidated Statement of Equity Equity Changes and Share Count The consolidated statement of equity shows a decrease in total equity from the previous quarter, primarily influenced by cash distributions declared Key Equity Data (in Thousands) | Metric | 3/31/2024 | 12/31/2023 | | :--- | :--- | :--- | | Total Equity | $3,803,648 | $3,855,925 | | Cash distributions declared | $(48,356) | N/A | | Weighted Average Share Count at March 31, 2024 - Diluted | 70,094,571 | 68,675,701 | Joint Venture Statements Balance Sheet for Unconsolidated Joint Ventures The balance sheet for unconsolidated joint ventures shows SL Green's share of total assets at $11.16 billion and total liabilities at $7.04 billion Unconsolidated JV Balance Sheet (SLG Share, in Thousands) | Metric | 3/31/2024 ($) | 12/31/2023 ($) | 9/30/2023 ($) | | :--- | :--- | :--- | :--- | | Total Assets | 11,161,011 | 11,149,052 | 11,321,591 | | Total Liabilities | 7,036,750 | 7,297,410 | 7,286,949 | Statement of Operations for Unconsolidated Joint Ventures The statement of operations for unconsolidated joint ventures indicates a significant increase in rental revenue and FFO contribution for Q1 2024 Unconsolidated JV Statement of Operations (SLG Share, in Thousands) | Metric | Q1 2024 ($) | Q1 2023 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Rental revenue, net | 300,675 | 159,279 | 141,396 | 88.8% | | FFO Contribution | 231,519 | 118,035 | 113,484 | 96.1% | Selected Financial Data Net Operating Income (NOI) The company's share of Net Operating Income (NOI) and Cash NOI decreased year-over-year, with Manhattan Office contributing the largest portion NOI and Cash NOI - SLG Share (in Thousands) | Metric | Q1 2024 ($) | Q1 2023 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | NOI - SLG share | 181,416 | 235,572 | (54,156) | (23.0%) | | Cash NOI - SLG share | 172,116 | 205,498 | (33,382) | (16.2%) | NOI and Cash NOI by Property Type (Q1 2024, in Thousands) | Property Type | NOI ($) | Cash NOI ($) | | :--- | :--- | :--- | | Manhattan Office | 163,435 | 151,417 | | Development / Redevelopment | 2,256 | 2,027 | | High Street Retail | 240 | 174 | | Suburban & Residential | 3,315 | 3,590 | | Alternative Strategy Portfolio | 11,432 | 13,811 | | Property Dispositions | 223 | 223 | | Other | 515 | 874 | | Total | 181,416 | 172,116 | Same Store Net Operating Income - Wholly Owned and Consolidated JVs For wholly-owned and consolidated joint ventures, same-store rental revenue, NOI, and Cash NOI all experienced year-over-year decreases in Q1 2024 Same Store NOI - Wholly Owned and Consolidated JVs (in Thousands) | Metric | Q1 2024 ($) | Q1 2023 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Rental revenue, net | 121,303 | 125,880 | (4,577) | (3.6%) | | NOI | 65,336 | 71,109 | (5,773) | (8.1%) | | Cash NOI | 62,402 | 66,292 | (3,890) | (5.9%) | | Cash NOI excluding lease termination income | 61,239 | 65,781 | (4,542) | (6.9%) | Same Store Net Operating Income - Unconsolidated JVs SL Green's share of same-store cash NOI from unconsolidated joint ventures increased by 7.1% year-over-year in Q1 2024 Same Store NOI - Unconsolidated JVs (SLG Share, in Thousands) | Metric | Q1 2024 ($) | Q1 2023 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Rental revenue, net | 120,279 | 123,512 | (3,233) | (2.6%) | | NOI | 92,280 | 93,585 | (1,305) | (1.4%) | | Cash NOI | 86,136 | 80,453 | 5,683 | 7.1% | | Cash NOI excluding lease termination income | 82,850 | 80,010 | 2,840 | 3.5% | - Overall Same-Store Cash NOI, including SLG share of unconsolidated JVs, increased by 1.2% year-over-year to $148,538 thousand[79] Debt Summary Schedule Consolidated Debt The consolidated debt schedule details the company's secured, unsecured, and floating rate debt, totaling $3.69 billion with a weighted average interest rate of 5.18% Consolidated Debt (March 31, 2024, in Thousands) | Type of Debt | Amount ($) | Interest Rate | | :--- | :--- | :--- | | Secured fixed rate debt | 2,930,392 | 4.99% | | Unsecured fixed rate debt | 100,000 | 5.27% | | Floating rate debt | 760,493 | 6.74% | | Total Consolidated Debt | 3,690,885 | 5.18% | - Total Debt - Consolidated, net was $3,785,503 thousand with a 5.21% interest rate[75] Unconsolidated JVs Debt SL Green's share of unconsolidated joint venture debt totaled $7.04 billion with a weighted average interest rate of 4.64% Unconsolidated JV Debt (SLG Share, March 31, 2024, in Thousands) | Type of Debt | Amount ($) | Interest Rate | | :--- | :--- | :--- | | Fixed rate debt | 4,905,871 | 3.69% | | Floating rate debt | 1,182,168 | 8.07% | | Total Unconsolidated JV Debt | 6,157,039 | 4.29% | - Total Debt - Unconsolidated JV, net was $7,036,750 thousand with a 4.64% interest rate[88] - A modification and extension of the $1.075 billion loan for One Vanderbilt Avenue was closed in April, extending maturity to September 2026[88] Debt Composition and Corporate Debt Covenants The company's total debt was $10.89 billion, with 82.2% being fixed rate, and it maintains strong compliance with its corporate debt covenants Total Debt Composition (March 31, 2024, in Thousands) | Debt Type | Consolidated ($) | SLG Share of JV ($) | Total ($) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Fixed Rate Debt | 3,040,885 | 5,277,399 | 8,318,284 | 76.4% | | Floating Rate Debt | 760,493 | 1,182,168 | 1,942,661 | 17.8% | | Total Debt | 3,801,378 | 6,459,567 | 10,260,945 | 94.2% | Corporate Debt Covenants (March 31, 2024) | Covenant | Actual | Required | | :--- | :--- | :--- | | Revolving Credit Facility: | | | | Total Debt / Total Assets | 37.0% | Less than 60% | | Consolidated Fixed Charge Coverage | 1.46x | Greater than 1.40x | | Maximum Secured Indebtedness | 18.4% | Less than 50% | | Maximum Unencumbered Leverage Ratio | 39.4% | Less than 60% | | Unsecured Notes: | | | | Total Debt / Total Assets | 36.6% | Less than 60% | | Secured Debt / Total Assets | 20.8% | Less than 40% | | Debt Service Coverage | 2.04x | Greater than 1.50x | | Unencumbered Assets / Unsecured Debt | 327.7% | Greater than 150% | Derivative Summary Schedule Interest Rate Derivatives This schedule outlines the company's interest rate derivatives, including caps and swaps, for both consolidated and unconsolidated joint venture debt Consolidated Interest Rate Derivatives (March 31, 2024, in Thousands) | Debt Type | Instrument | Notional Value ($) | Fair Value ($) | Strike Rate/Swap Rate | Maturity Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Secured | Cap | 220,000 | 1,789 | 4.00% | Feb 2025 | | Unsecured | Swap | 150,000 | 4,915 | 2.62% | Jan 2026 | | Forward-starting (Unsecured) | Swap | 300,000 | (5,113) | 4.49% | Nov 2027 | Unconsolidated JV Interest Rate Derivatives (SLG Share, March 31, 2024, in Thousands) | Debt Type | Instrument | Notional Value ($) | Fair Value ($) | Strike Rate | Maturity Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Forward-starting | Cap | 278,161 | 1,624 | 4.00% | Nov 2024 | Lease Liability Schedule Operating and Financing Lease Liabilities This schedule details the company's operating and financing lease liabilities for various properties, including annual payments and maturity dates Operating Lease Liabilities (in Thousands) | Property | Annual Payment (2024) ($) | Maturity | | :--- | :--- | :--- | | 1185 Avenue of the Americas | 5,182 | 2043 | | Equinox Studio City (SLG Share) | 460 | 2029 | | 650 Fifth Avenue (Floors 4-6, SLG Share) | 1,343 | 2053 | Financing Lease Liabilities (in Thousands) | Property | Annual Payment (2024) ($) | Maturity | | :--- | :--- | :--- | | 15 Beekman | 2,388 | 2119 | | One Vanderbilt Avenue Garage (SLG Share) | 157 | 2069 | | 650 Fifth Avenue (Floors b-3, SLG Share) | 5,523 | 2062 | - The Company has an option to purchase the ground lease for 15 Beekman for a fixed price on a specific date, which is not reflected in the scheduled cash payments[98] Debt and Preferred Equity Investments DPE Portfolio Summary The company's Debt and Preferred Equity (DPE) investment portfolio had a book value of $352.3 million with a weighted average yield of 7.95% at quarter-end DPE Portfolio Book Value and Yield (in Thousands) | Metric | 3/31/2024 ($) | 12/31/2023 ($) | 9/30/2023 ($) | | :--- | :--- | :--- | :--- | | Book Value | 352,347 | 346,745 | 334,327 | | Weighted Average Yield During Quarter | 7.82% | 7.79% | 6.15% | | Weighted Average Yield At End Of Quarter | 7.95% | 7.92% | 8.21% | DPE Investment Type Breakdown (March 31, 2024, in Thousands) | Investment Type | Book Value ($) | Weighted Average Yield At End Of Quarter | | :--- | :--- | :--- | | Mezzanine Debt | 222,232 | 8.72% | | Preferred Equity | 130,115 | 6.55% | | Total | 352,347 | 7.95% | DPE Maturity Profile (in Thousands) | Year | Floating Rate ($) | Fixed Rate ($) | | :--- | :--- | :--- | | 2024 | 122,713 | — | | 2025 | — | 30,000 | | 2026 | 49,519 | — | | 2027 | — | 130,115 | | 2028 & Thereafter | — | 20,000 | Detailed DPE Investments This section provides a detailed breakdown of individual mezzanine loan and preferred equity investments, with one mezzanine loan remaining on non-accrual Selected DPE Investments (March 31, 2024, in Thousands) | Investment Type | Book Value ($) | Property Type | Location | Senior Financing ($) | Yield At End Of Quarter | | :--- | :--- | :--- | :--- | :--- | :--- | | Preferred Equity | 130,115 | Multi-Family Rental | Manhattan | 250,000 | 6.55% | | Mezzanine Loan | 64,624 | Multi-Family Rental | Brooklyn | 284,173 | 15.05% | | Mezzanine Loan | 49,846 | Office | Manhattan | 275,000 | (Non-accrual) | | Mezzanine Loan | 49,519 | Office | Manhattan | 186,084 | 10.42% | | Mezzanine Loan | 30,000 | Office | Manhattan | 95,000 | 8.52% | - One mezzanine loan of $49,846 thousand was put on non-accrual in Q1 2023 and remains on non-accrual as of March 31, 2024[103] Selected Property Data Manhattan Operating Properties This section provides an overview of Manhattan operating properties, detailing ownership, square footage, occupancy rates, and annualized contractual cash rent Manhattan Operating Properties - Consolidated 'Same Store' (March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 8,753,441 | | % of Total Sq. Feet | 40.2% | | % Occupied | 85.3% | | % Leased (incl. signed but not commenced) | 87.5% | | Annualized Contractual Cash Rent (SLG Share) | $533,683 | Manhattan Operating Properties - Unconsolidated 'Same Store' (March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 11,226,356 | | % of Total Sq. Feet | 51.6% | | % Occupied | 88.5% | | % Leased (incl. signed but not commenced) | 90.6% | | Annualized Contractual Cash Rent (SLG Share) | $555,419 | Retail, Residential and Suburban Operating Properties This section details the performance of the company's retail, residential, and suburban operating properties, providing key metrics for each category Retail Properties (Total, March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 35,596 | | % Occupied | 100.0% | | % Leased | 100.0% | | Annualized Contractual Cash Rent (SLG Share) | $19,269 | Residential Properties (Total, March 31, 2024) | Metric | Value | | :--- | :--- | | Total Units | 682 | | % Occupied | 99.2% | | % Leased | 90.6% | | Annualized Contractual Cash Rent (SLG Share) | $14,557 | Suburban Properties (Total, March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 862,800 | | % Occupied | 72.0% | | % Leased | 72.8% | | Annualized Contractual Cash Rent (SLG Share) | $10,582 | Development / Redevelopment, Alternative Strategy Portfolio & Construction in Progress Properties This section provides data on properties under development, those within the alternative strategy portfolio, and lists properties under construction Development / Redevelopment Properties (Total, March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 1,407,845 | | % Occupied | 9.2% | | % Leased | 9.2% | | Annualized Contractual Cash Rent (SLG Share) | $14,239 | | Real Estate Book Value, Net | $980,239 | Alternative Strategy Portfolio Properties (Total, March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 3,712,844 | | % Occupied | 66.1% | | % Leased | 66.1% | | Annualized Contractual Cash Rent (SLG Share) | $104,744 | | Carrying Value, Net | $264,324 | Retail Leases Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties This section provides detailed data on retail leases across various property categories, highlighting ownership, occupancy, and annualized cash rent High Street Retail - Consolidated Properties (March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 22,648 | | % Occupied | 100.0% | | % Leased | 100.0% | | Annualized Contractual Cash Rent (SLG Share) | $18,362 | Other Retail - Consolidated Properties (March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 509,296 | | % Occupied | 90.7% | | % Leased | 91.3% | | Annualized Contractual Cash Rent (SLG Share) | $53,451 | Alternative Strategy Portfolio - Unconsolidated Properties (March 31, 2024) | Metric | Value | | :--- | :--- | | Total Square Feet | 297,357 | | % Occupied | 72.1% | | % Leased | 72.1% | | Annualized Contractual Cash Rent (SLG Share) | $50,084 | Largest Tenants by SLG Share of Annualized Cash Rent Top Tenants Overview This section identifies the largest tenants based on SL Green's share of annualized contractual cash rent, providing details on their property and lease terms Largest Tenants by SLG Share of Annualized Contractual Cash Rent (March 31, 2024, in Thousands) | Tenant Name | Property | SLG Share of Annualized Contractual Cash Rent ($) | % of SLG Share of Annualized Contractual Cash Rent | Investment Grade Credit Rating | | :--- | :--- | :--- | :--- | :--- | | Sony Corporation | 11 Madison Avenue | 30,721 | 2.3% | A | | AABloomberg L.P. | 919 Third Avenue | 25,753 | 1.9% | | | Societe Generale | 245 Park Avenue | 25,300 | 1.9% | A | | Carlyle Investment Management LLC | One Vanderbilt Avenue | 23,407 | 1.8% | | | The City of New York | 100 Church Street | 21,127 | 1.6% | Aa2 | | King & Spalding | 1185 Avenue of the Americas | 21,111 | 1.6% | | | Nike Retail Services, Inc. | 650 Fifth Avenue | 20,596 | 1.6% | | | Metro-North Commuter Railroad Company | 420 Lexington Avenue | 20,349 | 1.5% | A3 | | WME IMG, LLC | 304 Park Avenue | 19,903 | 1.5% | | | Giorgio Armani Corporation | 760 Madison Avenue | 18,362 | 1.4% | | | McDermott Will & Emery LLP | One Vanderbilt Avenue | 18,273 | 1.4% | | | The Toronto Dominion Bank | One Vanderbilt Avenue | 18,110 | 1.4% | | | Cravath, Swaine & Moore LLP | Worldwide Plaza | 17,481 | 1.3% | | | Stone Ridge Holdings Group LP | One Vanderbilt Avenue | 15,632 | 1.2% | | | Hess Corp | 1185 Avenue of the Americas | 15,524 | 1.2% | | | BBBBMW of Manhattan, Inc. | 555 West 57th Street | 12,841 | 1.0% | A | Manhattan Tenant Diversification Industry Diversification SL Green's Manhattan tenant base is diversified across various industries, with Financial Services and TAMI sectors representing the largest portions of rent - Financial Services accounts for 39% of SLG's share of annualized contractual cash rent, a slight decrease from 40%[2] - TAMI (Technology, Advertising, Media, Information) accounts for 16% of SLG's share of annualized contractual cash rent, a decrease from 22%[2] - Legal services represent 11% of the annualized contractual cash rent, remaining stable[2] - Other significant sectors include Professional Services (6%), Arts, Entertainment & Recreation (5%), Retail (3%), and Government/Non Profit (3%)[2] Leasing Activity - Manhattan Operating Properties Commenced Leasing Activity In Q1 2024, the company commenced 32 leases across its Manhattan operating properties, totaling 543,550 square feet Commenced Leasing Activity (Q1 2024) | Type | of Leases | Square Feet | Rentable SF | Escalated Rent/Rentable SF ($/SF) | | :--- | :--- | :--- | :--- | :--- | | Office | 28 | 541,719 | 596,777 | $91.69 | | Storage | 4 | 1,831 | 1,677 | $21.38 | | Total | 32 | 543,550 | 598,454 | $91.49 | Leased Space and Renewals The company executed new leases and renewals for office, retail, and storage spaces in Q1 2024 with varying terms, rents, and concessions Leased Space Activity (Q1 2024) | Activity Type | of Leases | Term (Yrs) | Rentable SF | New Cash Rent / Rentable SF ($/SF) | Prev. Escalated Rent / Rentable SF ($/SF) | TI / Rentable SF ($/SF) | Free Rent of Months | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Leased Office | 35 | 9.2 | 198,310 | $59.22 | $66.56 | $90.38 | 9.4 | | Leased Retail | 1 | 15.7 | 1,751 | $188.46 | $491.97 | $199.89 | 8.0 | | Leased Storage | 1 | 1.0 | 994 | $15.00 | $15.00 | $— | — | | Early Renewals Office | 16 | 4.7 | 192,403 | $79.81 | $80.33 | $13.34 | 5.1 | - Average starting office rent for office space (leased and early renewals) was $75.11/rsf for 280,879 rentable SF[124] Lease Expirations - Manhattan Operating Properties Wholly-Owned and Consolidated JV Lease Expirations For wholly-owned and consolidated JVs, 59 leases are set to expire in 2024, covering 470,705 square feet with an annualized cash rent of $28.16 million Office, Retail and Storage Leases - Wholly-Owned and Consolidated (Total 2024) | Metric | Value | | :--- | :--- | | Number of Expiring Leases | 59 | | Rentable Square Footage of Expiring Leases | 470,705 | | SLG Share Rentable Square Footage | 458,046 | | Percentage of Total Sq. Ft. | 5.9% | | Annualized Contractual Cash Rent | $28,158,773 | | SLG Share Annualized Contractual Cash Rent | $26,944,725 | | Annualized Contractual Cash Rent Per Square Foot | $59.82 | | Current Weighted Average Asking Rent | $55.25 | Other Retail Leases - Wholly-Owned and Consolidated JVs (Total 2024) | Metric | Value | | :--- | :--- | | Number of Expiring Leases | 2 | | Rentable Square Footage of Expiring Leases | 4,660 | | SLG Share Rentable Square Footage | 4,660 | | Percentage of Total Sq. Ft. | 1.0% | | Annualized Contractual Cash Rent | $1,180,288 | | SLG Share Annualized Contractual Cash Rent | $1,180,288 | | Annualized Contractual Cash Rent Per Square Foot | $253.28 | | Current Weighted Average Asking Rent | $119.00 | Unconsolidated JV Lease Expirations For unconsolidated JVs, 12 leases are set to expire in 2024, covering 70,034 square feet with an annualized cash rent of $7.38 million Office, Retail and Storage Leases - Unconsolidated JVs (Total 2024) | Metric | Value | | :--- | :--- | | Number of Expiring Leases | 12 | | Rentable Square Footage of Expiring Leases | 70,034 | | SLG Share Rentable Square Footage | 30,906 | | Percentage of Total Sq. Ft. | 0.6% | | Annualized Contractual Cash Rent | $7,380,789 | | SLG Share Annualized Contractual Cash Rent | $2,988,126 | | Annualized Contractual Cash Rent Per Square Foot | $105.39 | | Current Weighted Average Asking Rent | $87.55 | Alternative Strategy Portfolio Retail Leases - Unconsolidated JVs (Total 2024) | Metric | Value | | :--- | :--- | | Number of Expiring Leases | 3 | | Rentable Square Footage of Expiring Leases | 25,551 | | SLG Share Rentable Square Footage | 9,415 | | Percentage of Total Sq. Ft. | 12.4% | | Annualized Contractual Cash Rent | $7,769,406 | | SLG Share Annualized Contractual Cash Rent | $3,511,580 | | Annualized Contractual Cash Rent Per Square Foot | $304.07 | | Current Weighted Average Asking Rent | $416.53 | Summary of Real Estate Acquisition/Disposition Activity Manhattan Office Acquisitions This section summarizes Manhattan office acquisitions from 2001 to 2024, highlighting key properties, ownership interests, and total acquisition costs Manhattan Office Acquisitions (2001-2024, in Thousands) | Date | Property | Ownership % | Interest Type | Square Feet | Total Cost ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jun-01 | 317 Madison Avenue | 100.0% | Fee Interest | 450,000 | $105,600 | | Sep-22 | 245 Park Avenue | 100.0% | Fee Interest | 1,782,793 | $1,960,000 | Retail, Residential, Development / Redevelopment and Land Acquisitions This section details acquisitions of retail, residential, development, and land properties from 2005 to 2024, including recent Q1 2024 transactions Retail, Residential, Development/Redevelopment and Land Acquisitions (2005-2024, in Thousands) | Date | Property | Property Type | Ownership % | Interest Type | Total Cost ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jul-05 | 1551-1555 Broadway | Retail | 10.0% | Fee Interest | $85,000 | | Sep-23 | 625 Madison Avenue | Land | 90.4% | Fee Interest | $620,245 | | Jan-24 | 2 Herald Square | Redevelopment | 44.0% | Leasehold Interest | $120,000 | | Mar-24 | 719 Seventh Avenue | Retail | 25.0% | Fee Interest | $76,500 | Manhattan Office Dispositions This section summarizes Manhattan office dispositions from 2001 to 2024, including key properties, ownership interests, and total sales prices Manhattan Office Dispositions (2001-2024, in Thousands) | Date | Property | Ownership % | Interest Type | Square Feet | Total Sales Price ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jan-01 | 633 Third Ave | 100.0% | Fee Interest | 40,623 | $13,250 | | Jun-23 | 245 Park Avenue | 49.9% | Fee Interest | 1,782,793 | $1,995,000 | Retail, Residential, Development / Redevelopment, Land and Alternative Strategy Portfolio Dispositions This section details dispositions of various property types from 2011 to 2024, including the recent Q1 2024 sale of 717 Fifth Avenue Retail, Residential, Development/Redevelopment, Land and Alternative Strategy Portfolio Dispositions (2011-2024, in Thousands) | Date | Property | Property Type | Ownership % | Interest Type | Square Feet | Total Sales Price ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sep-11 | 1551-1555 Broadway | Retail | 10.0% | Fee Interest | 25,600 | $276,757 | | Oct-18 | 72nd Street Assemblage & 1231 Third Avenue | Residential | Various | Fee Interest | — | $143,800 | | Dec-23 | 21 East 66th Street | Retail | 32.3% | Fee Interest | 13,069 | $40,575 | | Jan-24 | 717 Fifth Avenue | Retail | 10.9% | Fee Interest | 119,550 | $963,000 | Suburban Office Acquisition/Disposition Activity This section provides a summary of suburban office acquisition and disposition activities from 2007 to 2024, detailing properties and transaction values Suburban Office Acquisitions (2007-2024, in Thousands) | Date | Property | Location | Ownership % | Interest Type | Square Feet | Total Cost ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jan-07 | 300 Main Street | Stamford, Connecticut | 100.0% | Fee Interest | 130,000 | $15,000 | | Apr-13 | 16 Court Street | Brooklyn, New York | 49.0% | Fee Interest | 317,600 | $96,200 | Suburban Office Dispositions (2008-2024, in Thousands) | Date | Property | Location | Ownership % | Interest Type | Square Feet | Total Sales Price ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Oct-08 | 100 & 120 White Plains Road | Tarrytown, New York | 100% | Fee Interest | 211,000 | $48,000 | | Jul-12 | One Court Square | Long Island City, New York | 100.0% | Fee Interest | 1,402,000 | $481,100 | | Dec-19 | 360 Hamilton Avenue | White Plains, New York | 100.0% | Fee Interest | 384,000 | $115,452 | Non-GAAP Disclosures and Reconciliations Non-GAAP Measures Explanation This section defines and explains the use of non-GAAP measures like FAD, EBITDAre, and NOI to provide additional insights into performance - FAD (Funds Available for Distribution) is presented as a supplemental disclosure for liquidity and the ability to fund dividends[15][143] - EBITDAre (Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate) is presented as an indicator of the Company's ability to incur and service debt[15][144] - NOI (Net Operating Income) and Cash NOI are presented to provide information regarding the operating performance of properties[144] - Fixed charge and debt service coverage ratios are presented to measure the Company's financial flexibility to service debt and lease obligations[144] Reconciliation of Non-GAAP Financial Measures This section provides detailed reconciliations of FFO, EBITDAre, NOI, and Same-Store Cash NOI to their most directly comparable GAAP measures Funds From Operations (FFO) Reconciliation (Q1 2024 vs Q1 2023, in Thousands) | Metric | Q1 2024 ($) | Q1 2023 ($) | | :--- | :--- | :--- | | Net Income (Loss) attributable to SL Green common stockholders | 13,141 | (39,731) | | Add: Depreciation and amortization | 48,584 | 78,782 | | Less: Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate | 26,764 | (79) | | FFO attributable to SL Green common stockholders and unit holders | 215,443 | 105,485 | Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) (in Thousands) | Date | Amount ($) | | :--- | :--- | | 3/31/2024 | 185,610 | | 12/31/2023 | 175,182 | | 9/30/2023 | 200,325 | | 6/30/2023 | 217,689 | | 3/31/2023 | 226,376 | Operating income and Same-store NOI Reconciliation (Q1 2024 vs Q1 2023, in Thousands) | Metric | Q1 2024 ($) | Q1 2023 ($) | | :--- | :--- | :--- | | Net income (loss) | 18,389 | (38,357) | | Operating income | 174,236 | 86,857 | | Net operating income (NOI) | 68,207 | 110,382 | | NOI including SLG share of unconsolidated JVs | 182,546 | 231,290 | | Same-Store NOI | 157,616 | 164,694 | | Same-store cash NOI | 148,538 | 146,745 | | Same-store cash NOI excluding lease termination income | 144,089 | 145,791 | Research Analyst Coverage Covering Analysts This section lists the research analysts and firms that provide coverage on SL Green Realty Corp, with a disclaimer that their opinions are independent - SL Green Realty Corp is covered by analysts from firms including B of A Securities, Barclays, BMO Capital Markets, Citi, Deutsche Bank, and Goldman Sachs[147] - The Company states that any opinions, estimates, or forecasts made by these analysts are theirs alone and do not represent the views of SL Green or its management[19] Executive Management Leadership Team This section lists the key members of SL Green Realty Corp's executive management team, including their names and titles - Marc Holliday serves as Chairman, Chief Executive Officer, and Interim President[148] - Matthew J. DiLiberto is the Chief Financial Officer[148] - Andrew S. Levine is the Chief Legal Officer - General Counsel, EVP[148] - Edward V. Piccinich is the Chief Operating Officer[148] - Harrison Sitomer is the Chief Investment Officer[148]