Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Segment Information

19. Segment Information

        We are a REIT engaged in owning, managing, leasing, acquiring and repositioning commercial properties in the New York Metropolitan area and have two reportable segments, real estate and debt and preferred equity investments. We evaluate real estate performance and allocate resources based on earnings contribution to income from continuing operations.

        Our real estate portfolio is primarily located in the geographical markets of the New York Metropolitan area. The primary sources of revenue are generated from tenant rents and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, real estate taxes and ground rent expense (at certain applicable properties). See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments.

        Selected results of operations for the years ended December 31, 2012, 2011 and 2010, and selected asset information as of December 31, 2012 and 2011, regarding our operating segments are as follows (amounts in thousands):

	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues
Year ended:
December 31, 2012	$	1,281,100	$	119,155	$	1,400,255
December 31, 2011		1,143,010		120,418		1,263,428
December 31, 2010		936,460		147,926		1,084,386
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments:
Year ended:
December 31, 2012	$	63,958	$	92,946	$	156,904
December 31, 2011		23,107		101,037		124,144
December 31, 2010		27,101		120,585		147,686
Total assets
As of:
December 31, 2012	$	13,021,095	$	1,366,659	$	14,387,754
December 31, 2011		12,490,502		993,350		13,483,852

        Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income less allocated interest expense for the debt and preferred equity segment. Interest costs for the debt and preferred equity segment are imputed assuming 100% leverage at our 2012 revolving credit facility borrowing cost. We also allocate loan loss reserves, net of recoveries, to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses and transaction related costs (totaling approximately $88.5 million, $85.7 million and $87.8 million for the years ended December 31, 2012, 2011 and 2010, respectively) to the debt and preferred equity segment since we base performance on the individual segments prior to allocating marketing, general and administrative expenses. All other expenses, except interest, relate entirely to the real estate assets.

        There were no transactions between the above two segments.

        The table below reconciles income from continuing operations to net income attributable to SL Green common stockholders for the years ended December 31, 2012, 2011 and 2010 (amounts in thousands):

	Years ended December 31,
	2012			2011			2010
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments	$	156,904		$	124,144		$	147,686
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		37,053			2,918			128,921
Purchase price fair value adjustment		—			498,195			—
Income from continuing operations		193,957			625,257			276,607
Net income from discontinued operations		9,116			5,780			7,064
Gain on sale of discontinued operations		6,627			46,085			35,485
Net income		209,700			677,122			319,156
Net income attributable to noncontrolling interests in operating partnership		(5,597	)		(14,629	)		(4,574	)
Net income attributable to noncontrolling interests in other partnerships		(5,591	)		(15,083	)		(14,007	)
Preferred units distribution		(2,107	)		—			—
Net income attributable to SL Green		196,405			647,410			300,575
Preferred stock redemption costs		(10,010	)		—			—
Preferred stock dividends		(30,411	)		(30,178	)		(29,749	)
Net income attributable to SL Green common stockholders	$	155,984		$	617,232		$	270,826