-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A57sRjt/NIYwZkCUUP7QNqo3iD3367B/qAo3M4UC9qYi4ClbzlYLicbz/mkpxeKc xSs8LQC5azxAGwvZMW10sQ== 0001104659-09-045190.txt : 20090728 0001104659-09-045190.hdr.sgml : 20090728 20090728133311 ACCESSION NUMBER: 0001104659-09-045190 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 23 CONFORMED PERIOD OF REPORT: 20090727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090728 DATE AS OF CHANGE: 20090728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SL GREEN REALTY CORP CENTRAL INDEX KEY: 0001040971 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 133956775 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13199 FILM NUMBER: 09966709 BUSINESS ADDRESS: STREET 1: 420 LEXINGTON AVENUE STREET 2: ATTN: STEVEN KAHN CITY: NEW YORK STATE: NY ZIP: 10170 BUSINESS PHONE: 2125942700 MAIL ADDRESS: STREET 1: 420 LEXINGTON AVENUE STREET 2: ATTN: STEVEN KAHN CITY: NEW YORK STATE: NY ZIP: 10170 8-K 1 a09-19864_18k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

July 27, 2009

 

SL GREEN REALTY CORP.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

 

MARYLAND

(STATE OF INCORPORATION)

 

1-13199

 

13-3956775

(COMMISSION FILE NUMBER)

 

(IRS EMPLOYER ID. NUMBER)

 

420 Lexington Avenue

 

10170

New York, New York

 

(ZIP CODE)

(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

 

(212) 594-2700

(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02.              Results of Operations and Financial Condition

 

The Company is re-affirming its earnings guidance for the year ending December 31, 2009 of funds from operations per share of $4.35 to $4.50.

 

Following the issuance of a press release on July 27, 2009 announcing SL Green Realty Corp’s, or the Company’s, results for the second quarter ended June 30, 2009, the Company intends to make available supplemental information regarding the Company’s operations that is too voluminous for a press release.  The Company is attaching the press release as Exhibit 99.1 and the supplemental package as Exhibit 99.2 to this Current Report on Form 8-K.

 

The information (including Exhibits 99.1 and 99.2) being furnished pursuant to this “Item 2.02 Results of Operations and Financial Condition” shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act regardless of any general incorporation language in such filing.

 

Item 7.01.              Regulation FD Disclosure

 

As discussed in Item 2.02 above, on July 27, 2009, the Company issued a press release announcing its results for the second quarter ended June 30, 2009.

 

The information being furnished pursuant to this “Item 7.01 Regulation FD Disclosure” shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.  This information will not be deemed an admission as to the materiality of such information that is required to be disclosed solely by Regulation FD.

 

Item 9.01.              Financial Statements and Exhibits

 

(d)           Exhibits

 

99.1                           Press Release regarding second quarter 2009 earnings.

99.2                           Supplemental package.

 

NON-GAAP Supplemental Financial Measures

 

Funds from Operations (FFO)

 

FFO is a widely recognized measure of REIT performance.  We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we do.  The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002 defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring and sales of properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.  We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITS, particularly those that own and operate commercial office properties.  We also use FFO as one of several criteria to determine performance-based bonuses for members of our senior management.  FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time.  Historically, however, real estate values have risen or fallen with market conditions.  Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year,

 

2



 

reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs, providing perspective not immediately apparent from net income.  FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions.

 

Funds Available for Distribution (FAD)

 

FAD is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP.  FAD is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company’s ability to fund its dividends.  Because all companies do not calculate FAD the same way, the presentation of FAD may not be comparable to similarly titled measures of other companies.   FAD does not represent cash flow from operating, investing and finance activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.

 

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

 

The Company presents earnings before interest, taxes, depreciation and amortization, or EBITDA, because the Company believes that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt.  EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity. Adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, is calculated by adding income taxes, loan loss reserves and our share of joint venture depreciation and amortization to EBITDA.

 

Same-Store Net Operating Income

 

The Company presents same-store net operating income on a cash and GAAP basis because the Company believes that it provides investors with useful information regarding the operating performance of properties that are comparable for the periods presented.  For properties owned since January 1, 2008 and still owned at the end of the current quarter, the Company determines GAAP net operating income by subtracting property operating expenses and ground rent from recurring rental and tenant reimbursement revenues. Cash net operating income, or Cash NOI, is derived by deducting straight line and free rent from, and adding tenant credit loss allowance to, GAAP net operating income. Same-store net operating income is not an alternative to net income (determined in accordance with GAAP) and same-store performance should not be considered an alternative to GAAP net income performance.

 

Debt to Market Capitalization Ratio

 

The Company presents the ratio of debt to market capitalization as a measure of the Company’s leverage position relative to the Company’s estimated market value.  The Company’s estimated market value is based upon the quarter-end trading price of the Company’s common stock multiplied by all common shares and operating partnership units outstanding plus the face value of the Company’s preferred equity. This ratio is presented on a consolidated basis and a combined basis.  The combined debt to market capitalization includes the Company’s pro-rata share of off-balance sheet (unconsolidated) joint venture debt.  The Company believes this ratio may provide investors with another measure of the Company’s current leverage position.  The debt to market capitalization ratio should be used as one measure of the Company’s leverage position, and this measure is commonly used in the REIT sector; however, this may not be comparable to other REITs that do not compute in the same manner.  The debt to market capitalization ratio does not represent the Company’s borrowing capacity and should not be considered an alternative measure to the Company’s current lending arrangements.

 

3



 

Coverage Ratios

 

The Company presents fixed charge and interest coverage ratios to provide a measure of the Company’s financial flexibility to service current debt amortization, interest expense and ground rent from current cash net operating income.  These coverage ratios are provided on both a consolidated and combined basis.  The combined coverage ratios include the Company’s pro-rata share of off-balance sheet (unconsolidated) joint venture fixed charges and cash net operating income.  These coverage ratios represent a common measure of the Company’s ability to service fixed cash payments; however, these ratios are not used as an alternative to cash flow from operating, financing and investing activities (determined in accordance with GAAP).

 

4



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

SL GREEN REALTY CORP.

 

 

 

 

 

/s/ Gregory F. Hughes

 

 

Gregory F. Hughes

 

Chief Financial Officer

 

 

Date:  July 28, 2009

 

5


EX-99.1 2 a09-19864_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

CONTACT

Gregory F. Hughes

Chief Operating Officer and

Chief Financial Officer

-Or-

Heidi Gillette

Investor Relations

(212) 594-2700

 

SL GREEN REALTY CORP. REPORTS

SECOND QUARTER 2009 FFO OF $1.20 PER SHARE AND

EPS OF $0.18 PER SHARE

 

Quarterly Highlights

 

·                  Second quarter FFO totaled $1.20 per share (diluted) compared to $1.92 per share (diluted) for the second quarter of 2008.  The results for the quarter ended June 30, 2008 include incentive distributions of approximately $31.6 million, or $0.52 per share (diluted).

 

·                  Net income per share for the second quarter of 2009 totaled $0.18 per share (diluted) compared to $2.29 per share (diluted) in the same period in the prior year.  The results for the quarter ended June 30, 2008 include a gain on sale of $1.53 per share (diluted) from the sale of 1250 Broadway and incentive distributions of approximately $31.6 million, or $0.52 per share (diluted).

 

·                  Raised gross proceeds of approximately $405.7 million from the issuance of 19,550,000 shares of the Company’s common stock and ended the quarter with approximately $676.8 million of cash on hand.

 

·                  Repurchased approximately $305.7 million of the Company’s unsecured notes and exchangeable bonds since April 1, 2009, realizing gains on early extinguishment of debt aggregating approximately $30.2 million.  Since October 2008, the Company has repurchased approximately $732.3 million of its debt for approximately $532.7 million, which resulted in gains on early extinguishment of approximately $155.2 million.

 

·                  Maintained Manhattan occupancy rate at 96.2% with increases in occupancy at 100 Park Avenue, 1350 Avenue of the Americas and 485 Lexington Avenue.

 

·                  Signed 29 Manhattan office leases totaling 328,780 square feet with average starting rents of $51.10 per rentable square foot during the second quarter.  Average Manhattan office starting rents increased by 27.3% on these leases over previously fully escalated rents.

 

·                  Recognized combined same-store GAAP NOI growth of 2.1% for the second quarter, including 2.3% from the consolidated same-store properties and 1.9% from the unconsolidated joint venture same-store properties.  For the

 

1



 

first six months of 2009, combined same-store GAAP NOI growth was 2.3%, including 2.1% from the consolidated same-store properties and 3.0% from the unconsolidated joint venture same-store properties.

 

·                  Closed on a $40.0 million upsize to our financing secured by 625 Madison Avenue.  The amortizing loan, which is co-terminus with the existing mortgage, resulted in a blended fixed interest rate of 7.22% on the combined $136.4 million loan.

 

·                  Purchased a sub-leasehold position at 420 Lexington Avenue for approximately $7.7 million.

 

·                  Generated $58.5 million in net proceeds from the sale of a structured finance investment, reducing total structured finance balances at June 30, 2009 to approximately $608.3 million.

 

·                  Sold the Company’s partnership interests in 55 Corporate Drive, NJ (pad IV) and the Mack-Green joint venture for approximately $5.0 million.  This sale resulted in a gain on sale of approximately $4.0 million, the recognition of a deferred incentive fee of approximately $4.8 million in connection with our original Bellemead investment, and the elimination of our share of the joint venture mortgage financing of $49.0 million.

 

·                  Acquired a $11.7 million controlling interest in a mortgage secured by a New York City property with an expected yield to maturity of 13.0%.

 

Summary

 

New York, NY, July 27, 2009 - SL Green Realty Corp. (NYSE:  SLG) today reported funds from operations, or FFO, of $83.5 million, or $1.20 per share (diluted), for the quarter ended June 30, 2009, a decrease of 28.7% compared to $117.1 million, or $1.92 per share (diluted), for the same quarter in 2008.  The results for the quarter ended June 30, 2008 include incentive distributions of approximately $31.6 million, or $0.52 per share (diluted).

 

Net income attributable to common stockholders totaled $12.6 million, or $0.18 per share (diluted), for the quarter ended June 30, 2009, compared to $134.2 million, or $2.29 per share (diluted), for the same quarter in 2008.  The results for the quarter ended June 30, 2008 include a gain on sale of $1.53 per share (diluted) from the sale of 1250 Broadway and incentive distributions of approximately $31.6 million, or $0.52 per share (diluted).

 

Operating and Leasing Activity

 

For the second quarter of 2009, the Company reported revenues and EBITDA of $253.0 million and $138.4 million, respectively, a decrease of $37.8 million, or 13.0%, and $44.4 million, or 24.3%, respectively, compared to the same period in 2008.  The decrease is primarily due to the recognition of approximately $31.6 million of incentive distributions in 2008.

 

Same-store GAAP NOI on a combined basis increased by 2.1% for the second quarter when compared to the same quarter in 2008, with the consolidated properties increasing 2.3% to $130.0 million and the unconsolidated joint venture properties increasing 1.9% to $53.0 million.  For the first six months of 2009, combined same-store GAAP NOI

 

2



 

growth was 2.3%, including 2.1% from the consolidated same-store properties and 3.0% from the unconsolidated joint venture same-store properties.

 

Occupancy for the Manhattan portfolio at June 30, 2009 was 96.2%, the same as at March 31, 2009.  During the quarter, the Company signed or commenced 34 leases in the Manhattan portfolio totaling 336,989 square feet, of which 29 leases and 328,780 square feet represented office leases.  Average starting Manhattan office rents of $51.10 per rentable square foot on the 328,780 square feet of leases signed or commenced during the second quarter represented a 27.3% increase over the previously fully escalated rents.  The average lease term was 10.9 years and average tenant concessions were 4.0 months of free rent with a tenant improvement allowance of $53.68 per rentable square foot.

 

Average starting Suburban office rents of $31.34 per rentable square foot for the second quarter represented a 0.8% increase over the previously fully escalated rents.  Occupancy for the Suburban portfolio was 90.3% at June 30, 2009 compared to 90.4% at March 31, 2009.  During the quarter, the Company signed 24 leases in the Suburban portfolio totaling 164,008 square feet, of which 22 leases and 160,975 square feet represented office leases.

 

During the quarter, the Company had solid leasing activity at 100 Park Avenue, 485 Lexington Avenue, 750 Third Avenue, all in New York City, and 360 Hamilton Avenue and 1 and 2 Jericho Plaza in the suburbs.

 

Significant leasing activities during the second quarter included:

 

·                  New lease with The Segal Company for approximately 144,296 square feet at 333 West 34th Street.

·                  New lease with Aetna Life Insurance Company for approximately 40,139 square feet at 100 Park Avenue.

·                  New lease with Fox Interactive Media Inc. for approximately 38,756 square feet at 485 Lexington Avenue.

·                  New lease with Eisner LLP for approximately 33,981 square feet at 750 Third Avenue.

·                  New lease with Wells Fargo Trade Capital Services for approximately 12,293 square feet at 100 Park Avenue.

·                  Early renewal with AboveNet.com for approximately 31,718 square feet at 360 Hamilton Avenue.

 

Marketing, general and administrative, or MG&A, expenses for the quarter ended June 30, 2009 was approximately $17.9 million, which is consistent with the first quarter’s results.  The Company is on pace to realize a 30.0% MG&A savings in 2009 when compared to 2008.

 

Real Estate Investment Activity

 

In April 2009, the Company sold its partnership interests in 55 Corporate Drive, NJ (pad IV) and the Mack-Green joint venture to Mack-Cali Realty Corporation (NYSE: CLI) for $5.0 million. This sale resulted in a gain on sale of approximately $4.0 million, the recognition of a deferred incentive fee of approximately $4.8 million in connection with our original Bellemead investment, and the elimination of our share of joint venture mortgage financing of $49.0 million.

 

3



 

Financing and Capital Activity

 

In May 2009, the Company completed a public offering of 19,550,000 shares of its common stock at $20.75 per share. Proceeds from this offering, net of underwriting discounts and commissions, (approximately $387.3 million) will be used for general corporate and/or working capital purposes which may include investment opportunities, purchases of the indebtedness of our subsidiaries in the open market from time to time, and the repayment of indebtedness at the applicable maturity or put date.

 

The Company repurchased approximately $305.7 million of its debt since April 1, 2009, including approximately $290.6 million of exchangeable bonds, realizing gains on early extinguishment of debt aggregating approximately $30.2 million.  Approximately $8.0 million face amount of these repurchases occurred during July 2009 and, accordingly, approximately $0.8 million of these gains will be recognized during the third quarter of 2009.

 

In July 2009, the Company closed on a $40.0 million upsize to our financing secured by 625 Madison Avenue.  The amortizing loan, which is co-terminus with the existing mortgage, resulted in a blended fixed interest rate of 7.22% on the combined $136.4 million loan.

 

Structured Finance Activity

 

The Company’s structured finance investments totaled approximately $534.5 million at June 30, 2009 (excluding approximately $73.8 million of structured finance investments which were classified as held for sale at June 30, 2009), a decrease of approximately $145.3 million from the balance at December 31, 2008.  During the second quarter, the Company acquired a $11.7 million controlling interest in a mortgage secured by a New York City property with an expected yield to maturity of approximately 13.0%.  During the second quarter, the Company sold approximately $96.8 million of structured finance investments, which generated approximately $58.5 million in net proceeds to the Company.  During the second quarter of 2009, the Company recorded approximately $45.6 million in additional loan loss reserves, inclusive of a $38.5 million charge off, against its structured finance investments.  The structured finance investments currently have a weighted average maturity of 4.0 years and a weighted average yield for the quarter ended June 30, 2009 of 9.7%, exclusive of loans totaling $96.1 million which are on non-accrual status.

 

Dividends

 

During the second quarter of 2009, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:

 

·                  $0.10 per share of common stock. Dividends were paid on July 15, 2009 to stockholders of record on the close of business on June 30, 2009.

·                  $0.4766 and $0.4922 per share on the Company’s Series C and D Preferred Stock, respectively, for the period April 15, 2009 through and including July 14, 2009.  Dividends were paid on July 15, 2009 to stockholders of record on the close of business on June 30, 2009, and reflect regular quarterly dividends, which are the equivalent of annualized dividend of $1.90625 and $1.96875, respectively.

 

4



 

Conference Call and Audio Webcast

 

The Company’s executive management team, led by Marc Holliday, Chief Executive Officer, will host a conference call and audio web cast on Tuesday, July 28, 2009 at 2:00 pm ET to discuss the financial results. The Supplemental Package will be available prior to the quarterly conference call on the Company’s website, www.slgreen.com, under “financial reports” in the investors section.

 

The live conference will be webcast in listen-only mode on the Company’s website under “event calendar & webcasts” in the investors’ section of the website and on Thomson’s StreetEvents Network. The conference call may also be accessed by dialing 866.383.8009 Domestic or 617.597.5342 International, using pass-code “SL Green.”

 

A replay of the call will be available through August 4, 2009 by dialing 888.286.8010 Domestic or 617.801.6888 International, using pass-code 61611632.

 

Supplemental Information

 

The Supplemental Package outlining the Company’s second quarter 2009 financial results will be available prior to the quarterly conference call on the Company’s website.

 

Company Profile

 

SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. The Company is the only publicly held REIT that specializes in this niche. As of June 30, 2009, the Company owned interests in 29 New York City office properties totaling approximately 23,211,200 square feet, making it New York’s largest office landlord. In addition, at June 30, 2009, SL Green held investment interests in, among other things, eight retail properties encompassing approximately 400,212 square feet, three development properties encompassing approximately 399,800 square feet and two land interests, along with ownership interests in 32 suburban assets totaling 6,949,700 square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.

 

To be added to the Company’s distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at 212-216-1601.

 

Disclaimers

 

Non-GAAP Financial Measures

 

During the quarterly conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found on page 9 of this release and in the Company’s Supplemental Package.

 

5



 

Forward-looking Statement

 

This press release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof.  All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the Manhattan, Westchester County, Connecticut, Long Island and New Jersey office markets, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate.

 

Forward-looking statements are not guarantees of future performance and actual results or developments may materially differ, and we caution you not to place undue reliance on such statements.  Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.

 

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us.  These risks and uncertainties include the effect of the credit crisis on general economic, business and financial conditions, and on the New York Metro real estate market in particular; dependence upon certain geographic markets; risks of real estate acquisitions, dispositions and developments, including the cost of construction delays and cost overruns; risks relating to structured finance investments; availability and creditworthiness of prospective tenants and borrowers; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; adverse changes in the real estate markets, including reduced demand for office space, increasing vacancy, and increasing availability of sublease space; availability of capital (debt and equity); unanticipated increases in financing and other costs, including a rise in interest rates; our ability to comply with financial covenants in our debt instruments; our ability to maintain our status as a REIT; risks of investing through joint venture structures, including the fulfillment by our partners of their financial obligations; the continuing threat of terrorist attacks, in particular in the New York Metro area and on our tenants; our ability to obtain adequate insurance coverage at a reasonable cost and the potential for losses in excess of our insurance coverage, including as a result of environmental contamination; and legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business, including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.

 

Other factors and risks to our business, many of which are beyond our control, are described in our filings with the Securities and Exchange Commission.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

 

6



 

SL GREEN REALTY CORP.

STATEMENTS OF OPERATIONS-UNAUDITED

(Amounts in thousands, except per share data)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2009

 

2008

 

2009

 

2008

 

Revenue:

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

192,735

 

$

192,575

 

$

389,203

 

$

386,416

 

Escalations & reimbursement revenues

 

31,534

 

30,007

 

65,292

 

59,966

 

Preferred equity and investment income

 

15,533

 

22,654

 

32,431

 

41,801

 

Other income

 

13,166

 

45,486

 

29,447

 

55,990

 

Total revenues

 

252,968

 

290,722

 

516,373

 

544,173

 

 

 

 

 

 

 

 

 

 

 

Equity in net income from unconsolidated joint ventures

 

16,828

 

17,822

 

29,901

 

37,247

 

Gain on early extinguishment of debt

 

29,321

 

 

77,033

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating expenses

 

52,441

 

54,744

 

107,923

 

108,415

 

Ground rent

 

8,046

 

7,826

 

16,092

 

16,075

 

Real estate taxes

 

36,751

 

32,760

 

73,700

 

65,284

 

Loan loss reserves

 

45,577

 

5,000

 

107,577

 

5,000

 

Marketing, general and administrative

 

17,946

 

25,434

 

35,868

 

49,893

 

Total expenses

 

160,761

 

125,764

 

341,160

 

244,667

 

 

 

 

 

 

 

 

 

 

 

Earnings Before Interest, Depreciation and Amortization (EBITDA)

 

138,356

 

182,780

 

282,147

 

336,753

 

Interest expense, net of interest income

 

57,012

 

73,604

 

117,276

 

149,650

 

Amortization of deferred financing costs

 

1,476

 

1,538

 

2,912

 

3,171

 

Depreciation and amortization

 

55,186

 

54,685

 

109,984

 

108,119

 

Loss (gain) on equity investment in marketable securities

 

(126

)

 

681

 

 

Net income from Continuing Operations

 

24,808

 

52,953

 

51,294

 

75,813

 

Income (loss) from Discontinued Operations

 

(538

)

1,566

 

(604

)

2,931

 

Gain on sale of Discontinued Operations

 

 

 

6,572

 

110,232

 

Net gain on sale of interest in unconsolidated joint venture/ real estate

 

(2,693

)

93,481

 

6,848

 

93,481

 

Net income

 

21,577

 

148,000

 

64,110

 

282,457

 

Net income attributable to noncontrolling interests

 

(4,065

)

(8,840

)

(8,862

)

(17,050

)

Net income attributable to SL Green Realty Corp.

 

17,512

 

139,160

 

55,248

 

265,407

 

Preferred stock dividends

 

(4,969

)

(4,969

)

(9,938

)

(9,938

)

Net income attributable to common stockholders

 

$

12,543

 

$

134,191

 

$

45,310

 

$

255,469

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share (EPS)

 

 

 

 

 

 

 

 

 

Net income per share (Basic)

 

$

0.19

 

$

2.30

 

$

0.73

 

$

4.37

 

Net income per share (Diluted)

 

$

0.18

 

$

2.29

 

$

0.73

 

$

4.35

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations (FFO)

 

 

 

 

 

 

 

 

 

FFO per share (Basic)

 

$

1.20

 

$

1.93

 

$

2.66

 

$

3.30

 

FFO per share (Diluted)

 

$

1.20

 

$

1.92

 

$

2.65

 

$

3.28

 

 

 

 

 

 

 

 

 

 

 

Basic ownership interest

 

 

 

 

 

 

 

 

 

Weighted average REIT common shares for net income per share

 

67,363

 

58,329

 

62,298

 

58,406

 

Weighted average partnership units held by noncontrolling interests

 

2,336

 

2,340

 

2,338

 

2,340

 

Basic weighted average shares and units outstanding for FFO per share

 

69,699

 

60,669

 

64,636

 

60,746

 

Diluted ownership interest

 

 

 

 

 

 

 

 

 

Weighted average REIT common share and common share equivalents

 

67,406

 

58,674

 

62,341

 

58,780

 

Weighted average partnership units held by noncontrolling interests

 

2,336

 

2,340

 

2,338

 

2,340

 

Diluted weighted average shares and units outstanding

 

69,742

 

61,014

 

64,679

 

61,120

 

 

7



 

SL GREEN REALTY CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except per share data)

 

 

 

June 30,
2009

 

December 31,
2008

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Commercial real estate properties, at cost:

 

 

 

 

 

Land and land interests

 

$

1,385,182

 

$

1,386,090

 

Buildings and improvements

 

5,560,966

 

5,544,019

 

Building leasehold and improvements

 

1,268,022

 

1,259,472

 

Property under capital lease

 

12,208

 

12,208

 

 

 

8,226,378

 

8,201,789

 

Less accumulated depreciation

 

(635,415

)

(546,545

)

 

 

7,590,963

 

7,655,244

 

Assets held for sale, net

 

76,657

 

184,035

 

Cash and cash equivalents

 

676,768

 

726,889

 

Restricted cash

 

87,154

 

105,954

 

Tenant and other receivables, net of allowance of $14,508 and $16,898 in 2009 and 2008, respectively

 

31,666

 

30,882

 

Related party receivables

 

9,519

 

7,676

 

Deferred rents receivable, net of allowance of $22,382 and $19,648 in 2009 and 2008, respectively

 

156,685

 

145,561

 

Structured finance investments, net of discount of $14,308 and $18,764 and allowance of $71,666 and none in 2009 and 2008, respectively

 

534,518

 

679,814

 

Investments in unconsolidated joint ventures

 

978,340

 

975,483

 

Deferred costs, net

 

135,520

 

133,052

 

Other assets

 

317,260

 

339,763

 

Total assets

 

$

10,595,050

 

$

10,984,353

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Mortgage notes payable

 

$

2,570,085

 

$

2,591,358

 

Revolving credit facility

 

1,419,500

 

1,389,067

 

Senior unsecured notes

 

873,046

 

1,501,134

 

Accrued interest and other liabilities

 

38,177

 

70,692

 

Accounts payable and accrued expenses

 

125,267

 

133,100

 

Deferred revenue/gain

 

376,143

 

427,936

 

Capitalized lease obligation

 

16,791

 

16,704

 

Deferred land lease payable

 

17,831

 

17,650

 

Dividend and distributions payable

 

12,014

 

26,327

 

Security deposits

 

36,737

 

34,561

 

Liabilities related to assets held for sale

 

 

106,534

 

Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities

 

100,000

 

100,000

 

Total liabilities

 

5,585,591

 

6,415,063

 

Commitments and contingencies

 

 

 

Noncontrolling interest in operating partnership

 

89,035

 

87,330

 

Equity

 

 

 

 

 

SL Green Realty Corp. stockholders’ equity

 

 

 

 

 

7.625% Series C perpetual preferred shares, $0.01 par value, $25.00 liquidation preference, 6,300 issued and outstanding at June 30, 2009 and December 31, 2008, respectively

 

151,981

 

151,981

 

7.875% Series D perpetual preferred shares, $0.01 par value, $25.00 liquidation preference, 4,000 issued and outstanding at June 30, 2009 and December 31, 2008, respectively

 

96,321

 

96,321

 

Common stock, $0.01 par value 160,000 shares authorized, 80,180 and 60,404 issued and outstanding at June 30, 2009 and December 31, 2008, respectively (inclusive of 3,360 shares held in Treasury at both June 30, 2009 and December 31, 2008)

 

802

 

604

 

Additional paid-in capital

 

3,481,518

 

3,079,159

 

Treasury stock-at cost

 

(302,705

)

(302,705

)

Accumulated other comprehensive loss

 

(32,285

)

(54,747

)

Retained earnings

 

996,051

 

979,939

 

Total SL Green Realty Corp. stockholders’ equity

 

4,391,683

 

3,950,552

 

Noncontrolling interests in other partnerships

 

528,741

 

531,408

 

Total equity

 

4,920,424

 

4,481,960

 

Total liabilities and equity

 

$

10,595,050

 

$

10,984,353

 

 

8



 

SL GREEN REALTY CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2009

 

2008

 

2009

 

2008

 

FFO Reconciliation:

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

$

12,543

 

$

134,191

 

$

45,310

 

$

255,469

 

Add:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

55,186

 

54,685

 

109,984

 

108,119

 

Discontinued operations depreciation adjustments

 

 

1,715

 

 

4,219

 

Joint venture depreciation and noncontrolling interest adjustments

 

9,322

 

11,381

 

20,587

 

19,556

 

Net income attributable to noncontrolling interests

 

4,065

 

8,840

 

8,862

 

17,050

 

Loss (gain) on equity investment in marketable securities

 

(126

)

 

681

 

 

Less:

 

 

 

 

 

 

 

 

 

Gain on sale of discontinued operations

 

 

 

6,572

 

110,232

 

Equity in net gain (loss) on sale of joint venture property/real estate

 

(2,693

)

93,481

 

6,848

 

93,481

 

Depreciation on non-rental real estate assets

 

170

 

234

 

374

 

456

 

Funds from Operations

 

$

83,513

 

$

117,097

 

$

171,630

 

$

200,244

 

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2009

 

2008

 

2009

 

2008

 

Earnings before interest, depreciation and amortization (EBITDA):

 

 

 

 

 

 

 

 

 

Add:

 

$

138,356

 

$

182,780

 

$

282,147

 

$

336,753

 

Marketing, general & administrative expense

 

17,946

 

25,434

 

35,868

 

49,893

 

Operating income from discontinued operations

 

(43

)

2,675

 

530

 

5,845

 

Loan loss reserves

 

45,577

 

5,000

 

107,577

 

5,000

 

Less:

 

 

 

 

 

 

 

 

 

Non-building revenue

 

(24,644

)

(60,376

)

(50,366

)

(82,960

)

Gain on early extinguishment of debt

 

(29,321

)

 

(77,033

)

 

Equity in net income from joint ventures

 

(16,828

)

(17,822

)

(29,901

)

(37,247

)

GAAP net operating income (GAAP NOI)

 

131,043

 

137,691

 

268,822

 

277,284

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

Operating income from discontinued operations

 

43

 

(2,675

)

(530

)

(5,845

)

GAAP NOI from other properties/affiliates

 

(1,132

)

(7,946

)

(10,736

)

(19,091

)

Same-Store GAAP NOI

 

$

129,954

 

$

127,070

 

$

257,556

 

$

252,348

 

 

SL GREEN REALTY CORP.

SELECTED OPERATING DATA-UNAUDITED

 

 

 

June 30,

 

 

 

2009

 

2008

 

Manhattan Operating Data: (1)

 

 

 

 

 

Net rentable area at end of period (in 000’s)

 

23,211

 

23,719

 

Portfolio percentage leased at end of period

 

96.2

%

96.7

%

Same-Store percentage leased at end of period

 

96.2

%

95.7

%

Number of properties in operation

 

29

 

30

 

 

 

 

 

 

 

Office square feet leased during quarter (rentable)

 

328,780

 

431,345

 

Average mark-to-market percentage-office

 

27.3

%

53.5

%

Average starting cash rent per rentable square foot-office

 

$

51.10

 

$

65.89

 

 


(1)  Includes wholly owned and joint venture properties.

 

9


EX-99.2 3 a09-19864_1ex99d2.htm EX-99.2

Exhibit 99.2

 

SL Green Realty Corp.

Second Quarter

Supplemental Data

June 30, 2009

 

 

 



 

 

 

 

SL Green Realty Corp. is a fully integrated, self-administered and self-managed Real Estate Investment Trust, or REIT, that primarily acquires, owns, manages, leases and repositions office properties in emerging, high-growth submarkets of Manhattan.

 

·                  SL Green’s common stock is listed on the New York Stock Exchange, and trades under the symbol SLG.

·                  SL Green maintains an internet site at www.slgreen.com at which most key investor relations data pertaining to dividend declaration, payout, current and historic share price, etc. can be found.  Such information is not incorporated into this supplemental financial package.  This supplemental financial package is available through the Company’s internet site.

·                  This data is furnished to supplement audited and unaudited regulatory filings of the Company and should be read in conjunction with those filings.  The financial data herein is unaudited and is provided from the perspective of timeliness to assist readers of quarterly and annual financial filings.  As such, data otherwise contained in future regulatory filings covering the same period may restate the data presented herein.

 

Questions pertaining to the information contained herein should be referred to Investor Relations at investor.relations@slgreen.com or at 212-216-1601.

 

Forward-looking Statement

This report includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof.  All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the Manhattan, Westchester County, Connecticut, Long Island and New Jersey office markets, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate.

 

Forward-looking statements are not guarantees of future performance and actual results or developments may materially differ, and we caution you not to place undue reliance on such statements.  Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.

 

Forward-looking statements contained in this report are subject to a number of risks and uncertainties which may cause our actual results, performance or achievements to be materially different from future results, performance or

 

2



 

 

 

 

achievements expressed or implied by forward-looking statements made by us.  These risks and uncertainties include the effect of the credit crisis on general economic, business and financial conditions, and on the New York Metro real estate market in particular; dependence upon certain geographic markets; risks of real estate acquisitions, dispositions and developments, including the cost of construction delays and cost overruns; risks relating to structured finance investments; availability and creditworthiness of prospective tenants and borrowers; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; adverse changes in the real estate markets, including reduced demand for office space, increasing vacancy, and increasing availability of sublease space; availability of capital (debt and equity); unanticipated increases in financing and other costs, including a rise in interest rates; our ability to comply with financial covenants in our debt instruments; our ability to maintain our status as a REIT; risks of investing through joint venture structures, including the fulfillment by our partners of their financial obligations; the continuing threat of terrorist attacks, in particular in the New York Metro area and on our tenants; our ability to obtain adequate insurance coverage at a reasonable cost and the potential for losses in excess of our insurance coverage, including as a result of environmental contamination; and legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business, including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.

 

Other factors and risks to our business, many of which are beyond our control, are described in our filings with the Securities and Exchange Commission.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

 

The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the quarter ended June 30, 2009 that will be released on Form 10-Q to be filed on or before August 10, 2009.

 

3



 

 

 

TABLE OF CONTENTS

 

 

Highlights of Current Period Financial Performance

 

 

 

 

 

Unaudited Financial Statements

 

 

Corporate Profile

 

5

Financial Highlights

 

6-13

Balance Sheets

 

14-15

Statements of Operations

 

16

Funds From Operations

 

17

Statement of Stockholders’ Equity

 

18

Taxable Income

 

19

Joint Venture Statements

 

20-22

 

 

 

Selected Financial Data

 

23-26

 

 

 

Summary of Debt and Ground Lease Arrangements

 

27-29

 

 

 

Structured Finance

 

30-32

 

 

 

Property Data

 

 

Composition of Property Portfolio

 

33-34

Top Tenants

 

35

Tenant Diversification

 

36

Leasing Activity Summary

 

37-40

Lease Expiration Schedule

 

41-42

 

 

 

Summary of Acquisition/Disposition Activity

 

43-45

Supplemental Definitions

 

46

Corporate Information

 

47

 

4



 

 

 

CORPORATE PROFILE

 

 

SL Green Realty Corp., or the Company, is New York City’s largest commercial office landlord and is the only fully integrated, self-managed, self-administered Real Estate Investment Trust, or REIT, primarily focused on owning and operating office buildings in Manhattan.

 

The Company was formed on August 20, 1997 to continue the commercial real estate business of S.L. Green Properties Inc., a company that was founded in 1980 by Stephen L. Green, our current Chairman.  For more than 25 years SL Green has been engaged in the business of owning, managing, leasing, acquiring and repositioning office properties in Manhattan.  The Company’s investment focus is to create value through strategically acquiring, redeveloping and repositioning office properties primarily located in Manhattan, and re-leasing and managing these properties for maximum cash flow.

 

In 2008, SL Green acquired Reckson Associates Realty Corp. and added over 9 million square feet to its portfolio. Included in this total is over 3 million square feet of Class A office space located in Westchester, New York and Stamford, Connecticut.  These suburban portfolios serve as natural extensions of SL Green’s core ownership in the Grand Central submarket of Midtown Manhattan. The Company has since made selective additions to the holdings in these areas.

 

Looking forward, SL Green will continue its opportunistic investment philosophy through three established business lines: investment in long-term core properties, investment in opportunistic assets, and structured finance investments. Structured finance investments include SL Green’s interest in Gramercy Capital Corp., or Gramercy (NYSE: GKK), since 2004. As of June 30, 2009, SL Green owned approximately 12.48% of Gramercy. This three-legged investment strategy allows SL Green to balance the components of its portfolio to take advantage of each stage in the business cycle.

 

5



 

FINANCIAL HIGHLIGHTS


SECOND QUARTER 2009
UNAUDITED

 

FINANCIAL RESULTS

 

Funds From Operations, or FFO, totaled $83.5 million, or $1.20 per share (diluted) for the second quarter ended June 30, 2009, a 28.7% decrease over the same quarter in 2008 when FFO totaled $117.1 million, or $1.92 per share (diluted).  The results for the quarter ended June 30, 2008 include incentive distributions of approximately $31.6 million, or $0.52 per share (diluted).

 

Net income available to common stockholders totaled $12.6 million, or $0.18 per share (diluted) for the second quarter ended June 30, 2009, compared to $134.2 million, or $2.29 per share (diluted) for the respective period in 2008.  The results for the three months ended June 30, 2008 include a gain on sale of $1.53 per share (diluted) from the sale of 1250 Broadway and incentive distributions of approximately $31.6 million, or $0.52 per share (diluted).

 

Funds available for distribution, or FAD, for the second quarter of 2009 was $0.96 per share (diluted) compared to $1.55 per share (diluted) in the prior year, a 38.1% decrease.

 

The Company’s dividend payout ratio for the second quarter of 2009 was 8.4% of FFO and 10.5% of FAD before first cycle leasing costs.

 

All per share amounts are presented on a diluted basis.

 

CONSOLIDATED RESULTS

 

Total quarterly revenues totaled $253.0 million in the second quarter compared to $290.7 million in the prior year.  The $37.8 million decrease in revenue resulted primarily from the following items:

 

·                  $5.8 million increase from same-store properties,

·                  $7.1 million decrease in preferred equity and investment income,

·                  $32.3 million decrease in other income, and

·                  $4.2 million decrease from properties that were deconsolidated and other non-same-store properties.

 

The Company’s earnings before interest, taxes, depreciation and amortization, or EBITDA, totaled $138.4 million compared to $182.8 million in the prior year.  The following items drove the $44.4 million decrease in EBITDA:

 

·                  $3.5 million increase from same-store properties,

·                  $6.3 million decrease from properties that were deconsolidated and other non same-store-properties,

·                  $7.1 million decrease in preferred equity and investment income primarily due to structured finance sales subsequent to June 30, 2008 as well as certain loans being placed on non-accrual status.  The weighted-average structured finance investment balance for the quarter decreased to $665.6 million from $823.2 million in the prior year second quarter.  The weighted-average yield for the quarter was 8.31% compared to 9.71% in the prior year,

 

6



 

FINANCIAL HIGHLIGHTS


SECOND QUARTER 2009
UNAUDITED

 

·                  $1.0 million decrease from reductions in contributions to equity in net income from unconsolidated joint ventures primarily from 388 Greenwich Street ($1.3 million), 1250 Broadway ($0.9 million), 717 Fifth Avenue ($0.9 million), 1221 Avenue of the Americas ($0.6 million) and Gramercy ($1.6 million).  This was partially offset by increased contributions to equity in net income primarily from 1515 Broadway ($2.4 million), Mack-Green ($0.7 million), the Meadows ($0.5 million) and 16 Court Street ($0.2 million),

·                  $40.6 million decrease from loan loss reserves and other write-offs,

·                  $7.5 million increase from lower MG&A expense, and

·                  $0.4 million decrease in non-real estate revenues, net of expenses, inclusive of net gains on early extinguishment of debt ($29.3 million) in 2009, and incentive distributions ($31.6 million) in 2008.

 

SAME-STORE RESULTS

 

Consolidated Properties

 

Same-store second quarter 2009 GAAP NOI increased $2.9 million (2.3%) to $130.0 million compared to the prior year.  Operating margins before ground rent decreased from 61.98% to 61.53%.

 

The $2.9 million increase in GAAP NOI was primarily due to:

 

·                  $7.1 million (3.9%) increase in rental revenue primarily due to increased rental rates,

·                  $1.5 million (5.1%) increase in escalation and reimbursement revenue,

·                  $3.4 million (80.2%) decrease in investment and other income primarily due to lower lease buy-out income,

·                  $2.0 million (4.0%) decrease in operating expenses, primarily driven by reductions in utilities and repairs and maintenance, which was offset by increases in payroll costs,

·                  $0.3 million (4.6%) increase in ground rent expense, and

·                  $4.0 million (12.4%) increase in real estate taxes.

 

Joint Venture Properties

 

The Joint Venture same-store properties second quarter 2009 GAAP NOI increased $1.0 million (1.9%) to $53.0 million compared to the prior year.  Operating margins before ground rent decreased slightly from 69.96% to 69.76%.

 

The $1.0 million increase in GAAP NOI was primarily due to:

 

·                  $2.0 million (3.1%) increase in rental revenue primarily due to improved leasing,

·                  $0.7 million (6.5%) decrease in escalation and reimbursement revenues,

·                  $1.1 million (7.8%) decrease in operating expenses primarily driven by reductions in utilities and repairs and maintenance, which was offset by increases in payroll costs, and

·                  $1.4 million (15.9%) increase in real estate taxes.

 

7



 

FINANCIAL HIGHLIGHTS


SECOND QUARTER 2009
UNAUDITED

 

STRUCTURED FINANCE ACTIVITY

 

The Company’s structured finance investments totaled approximately $534.5 million at June 30, 2009 (excluding approximately $73.8 million of structured finance investments which were classified as held for sale at June 30, 2009), a decrease of approximately $145.3 million from the balance at December 31, 2008.  During the second quarter, the Company acquired a $11.7 million controlling interest in a mortgage secured by a New York City property with an expected yield to maturity of approximately 13.0%.  During the second quarter, the Company sold approximately $96.8 million of structured finance investments, which generated approximately $58.5 million in net proceeds to the Company.  During the second quarter of 2009, the Company recorded approximately $45.6 million in additional loan loss reserves, inclusive of a $38.5 million charge off, against its structured finance investments.  The structured finance investments currently have a weighted average maturity of 4.0 years and a weighted average yield for the quarter ended June 30, 2009 of 9.7%, exclusive of loans totaling $96.1 million which are on non-accrual status.

 

QUARTERLY LEASING HIGHLIGHTS

 

Manhattan vacancy at March 31, 2009 was 887,707 useable square feet net of holdover tenants.  During the quarter, 304,800 additional useable office, retail and storage square feet became available at an average escalated cash rent of $42.51 per rentable square foot.  Space available to lease during the quarter totaled 1,192,507 useable square feet, or 5.1% of the total Manhattan portfolio.

 

During the second quarter, 29 Manhattan office leases, including early renewals, were signed totaling 328,780 rentable square feet.  New cash rents averaged $51.10 per rentable square foot.  Replacement rents were 27.3% higher than rents on previously occupied space, which had fully escalated cash rents averaging $40.15 per rentable square foot.  The average lease term was 10.9 years and average tenant concessions were 4.0 months of free rent with a tenant improvement allowance of $53.68 per rentable square foot.

 

Suburban vacancy at March 31, 2009 was 697,962 usable square feet net of holdover tenants.  During the quarter, 57,938 additional useable office and storage square feet became available at an average escalated cash rent of $29.82 per rentable square foot.  Space available to lease during the quarter totaled 755,900 useable square feet, or 10.9% of the total Suburban portfolio.

 

During the second quarter, 22 Suburban office leases, including early renewals, were signed totaling 160,975 rentable square feet.  New cash rents averaged $31.34 per rentable square foot.  Replacement rents were 0.8% higher than rents on previously occupied space, which had fully escalated cash rents averaging $31.16 per rentable square foot.  The average lease term was 7.2 years and average tenant concessions were 3.1 months of free rent with a tenant improvement allowance of $8.15 per rentable square foot.

 

The Company also signed a total of 7 retail and storage leases, including early renewals, for 11,242 rentable square feet.  The average lease term was 10.7 years and average tenant

 

8



 

FINANCIAL HIGHLIGHTS


SECOND QUARTER 2009
UNAUDITED

 

concessions were 1.2 months of free rent with no tenant improvement allowance.

 

REAL ESTATE ACTIVITY

 

In April 2009, the Company sold its partnership interests in 55 Corporate Drive, NJ (pad IV) and the Mack-Green joint venture to Mack-Cali Realty Corporation (NYSE: CLI) for $5.0 million. This sale resulted in a gain on sale of approximately $4.0 million, the recognition of a deferred incentive fee of approximately $4.8 million in connection with our original Bellemead investment, and the elimination of our share of joint venture mortgage financing of $49.0 million.

 

FINANCING/ CAPITAL ACTIVITY

 

In May 2009, the Company completed a public offering of 19,550,000 shares of its common stock at $20.75 per share. Proceeds from this offering, net of underwriting discounts and commissions, (approximately $387.3 million) will be used for general corporate and/or working capital purposes which may include investment opportunities, purchases of the indebtedness of our subsidiaries in the open market from time to time, and the repayment of indebtedness at the applicable maturity or put date.

 

The Company repurchased approximately $305.7 million of its bonds since April 1, 2009, including approximately $290.6 million of exchangeable bonds, realizing gains on early extinguishment of debt aggregating approximately $30.2 million.  Approximately $8.0 million face amount of these repurchases occurred during July 2009 and, accordingly, approximately $0.8 million of these gains will be recognized during the third quarter of 2009.

 

In July 2009, the Company closed on a $40.0 million upsize to our financing secured by 625 Madison Avenue.  The amortizing loan, which is co-terminus with the existing mortgage, resulted in a blended fixed interest rate of 7.22% on the combined $136.4 million loan.

 

Dividends

 

In June 2009, the Company declared a dividend of $0.10 per common share for the second quarter of 2009.  The dividend was payable July 15, 2009 to stockholders of record on the close of business on June 30, 2009.  This distribution reflects the regular quarterly dividend, which is the equivalent of an annualized distribution of $0.40 per common share.

 

In June 2009, the Company also approved a dividend on its Series C preferred stock for the period April 15, 2009 through and including July 14, 2009, of $0.4766 per share, payable July 15, 2009 to stockholders of record on the close of business on June 30, 2009. The dividend reflects the regular quarterly dividend, which is the equivalent of an annualized dividend of $1.90625 per share of Series C preferred stock.

 

In June 2009, the Company also approved a dividend on its Series D preferred stock for the period April 15, 2009 through and including July 14, 2009, of $0.4922 per share, payable July 15, 2009 to stockholders of record on the close of business on June 30, 2009. The dividend reflects the regular quarterly

 

9



 

FINANCIAL HIGHLIGHTS


SECOND QUARTER 2009
UNAUDITED

 

dividend, which is the equivalent of an annualized dividend of $1.96875 per share of Series D preferred stock.

 

10


 


 

 

SL Green Realty Corp.

 

Key Financial Data

 

June 30, 2009

 

(Dollars in Thousands Except Per Share and Sq. Ft.)

 

 

 

As of or for the three months ended

 

 

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders - diluted

 

$

0.18

 

$

0.57

 

$

1.34

 

$

0.49

 

$

2.29

 

Funds from operations available to common stockholders - diluted

 

$

1.20

 

$

1.48

 

$

1.03

 

$

1.37

 

$

1.92

 

Funds available for distribution to common stockholders - diluted

 

$

0.96

 

$

0.92

 

$

0.78

 

$

0.92

 

$

1.55

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Price & Dividends

 

 

 

 

 

 

 

 

 

 

 

At the end of the period

 

$

22.94

 

$

10.80

 

$

25.90

 

$

64.80

 

$

82.72

 

High during period

 

$

26.70

 

$

25.83

 

$

62.74

 

$

92.23

 

$

100.74

 

Low during period

 

$

10.68

 

$

8.69

 

$

11.36

 

$

63.65

 

$

82.55

 

Common dividends per share

 

$

0.100

 

$

0.375

 

$

0.375

 

$

0.7875

 

$

0.7875

 

FFO Payout Ratio

 

8.35

%

25.34

%

36.24

%

57.55

%

41.03

%

FAD Payout Ratio

 

10.46

%

40.66

%

47.92

%

85.46

%

50.68

%

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares & Units

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

76,820

 

57,259

 

57,044

 

57,606

 

58,283

 

Units outstanding

 

2,336

 

2,336

 

2,340

 

2,340

 

2,340

 

Total shares and units outstanding

 

79,156

 

59,595

 

59,384

 

59,946

 

60,623

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and units outstanding - basic

 

69,699

 

59,517

 

59,411

 

60,453

 

60,669

 

Weighted average common shares and units outstanding - diluted

 

69,742

 

59,555

 

59,460

 

60,716

 

61,014

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization

 

 

 

 

 

 

 

 

 

 

 

Market value of common equity

 

$

1,815,839

 

$

643,626

 

$

1,538,046

 

$

3,884,501

 

$

5,014,735

 

Liquidation value of preferred equity

 

257,500

 

257,500

 

257,500

 

257,500

 

257,500

 

Consolidated debt

 

4,962,631

 

5,226,215

 

5,676,559

 

5,825,636

 

5,350,205

 

Consolidated market capitalization

 

$

7,035,970

 

$

6,127,341

 

$

7,472,105

 

$

9,967,637

 

$

10,622,440

 

SLG portion of JV debt

 

1,888,898

 

1,935,460

 

1,933,633

 

1,931,923

 

1,840,071

 

Combined market capitalization

 

$

8,924,868

 

$

8,062,801

 

$

9,405,738

 

$

11,899,560

 

$

12,462,511

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated debt to market capitalization

 

70.53

%

85.29

%

75.97

%

58.45

%

50.37

%

Combined debt to market capitalization

 

76.77

%

88.82

%

80.91

%

65.19

%

57.70

%

Debt to total assets - unsecured credit facility covenant

 

42.20

%

46.09

%

47.26

%

49.04

%

48.68

%

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated debt service coverage

 

3.27

 

3.41

 

3.25

 

2.28

 

2.67

 

Consolidated fixed charge coverage

 

2.70

 

2.85

 

2.81

 

1.95

 

2.29

 

Combined fixed charge coverage

 

2.34

 

2.49

 

2.44

 

1.75

 

2.04

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Statistics (Manhattan)

 

 

 

 

 

 

 

 

 

 

 

Consolidated office buildings

 

21

 

21

 

21

 

22

 

22

 

Unconsolidated office buildings

 

8

 

8

 

8

 

8

 

8

 

 

 

29

 

29

 

29

 

30

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated office buildings square footage

 

13,782,200

 

13,782,200

 

13,782,200

 

14,290,200

 

14,290,200

 

Unconsolidated office buildings square footage

 

9,429,000

 

9,429,000

 

9,429,000

 

9,429,000

 

9,429,000

 

 

 

23,211,200

 

23,211,200

 

23,211,200

 

23,719,200

 

23,719,200

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter end occupancy - Manhattan portfolio

 

96.2

%

96.2

%

96.7

%

96.5

%

96.7

%

Quarter end occupancy- same store - wholly owned

 

97.0

%

97.1

%

97.5

%

97.9

%

97.8

%

Quarter end occupancy- same store - combined (wholly owned + joint venture)

 

96.2

%

96.1

%

96.6

%

96.5

%

96.6

%

 

11



 

 

SL Green Realty Corp.

 

Key Financial Data

 

June 30, 2009

 

(Dollars in Thousands Except Per Share and Sq. Ft.)

 

 

 

As of or for the three months ended

 

 

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

Real estate assets before depreciation

 

$

8,226,378

 

$

8,200,404

 

$

8,298,857

 

$

8,379,608

 

$

8,751,414

 

Investments in unconsolidated joint ventures

 

$

978,340

 

$

976,572

 

$

975,483

 

$

1,139,918

 

$

1,132,329

 

Structured finance investments

 

$

534,518

 

$

589,267

 

$

679,814

 

$

926,931

 

$

839,826

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

10,595,050

 

$

10,501,133

 

$

10,984,353

 

$

11,491,229

 

$

11,149,587

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed rate & hedged debt

 

$

3,337,388

 

$

3,622,356

 

$

3,978,454

 

$

4,422,619

 

$

4,423,640

 

Variable rate debt

 

1,625,243

 

1,603,859

 

1,603,105

 

1,403,017

 

926,565

 

Total consolidated debt

 

$

4,962,631

 

$

5,226,215

 

$

5,581,559

 

$

5,825,636

 

$

5,350,205

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

$

5,585,591

 

$

5,912,250

 

$

6,415,063

 

$

6,904,656

 

$

6,430,980

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed rate & hedged debt-including SLG portion of JV debt

 

$

4,582,716

 

$

4,872,633

 

$

5,229,097

 

$

5,674,083

 

$

5,674,995

 

Variable rate debt - including SLG portion of JV debt

 

2,268,813

 

2,289,042

 

2,286,095

 

2,083,476

 

1,515,281

 

Total combined debt

 

$

6,851,529

 

$

7,161,675

 

$

7,515,192

 

$

7,757,559

 

$

7,190,276

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Data

 

 

 

 

 

 

 

 

 

 

 

Property operating revenues

 

$

224,269

 

$

230,226

 

$

224,610

 

$

229,889

 

$

222,582

 

Property operating expenses

 

97,238

 

100,476

 

98,177

 

100,383

 

95,330

 

Property operating NOI

 

$

127,031

 

$

129,750

 

$

126,433

 

$

129,506

 

$

127,252

 

NOI from discontinued operations

 

(43

)

573

 

2,010

 

2,912

 

2,675

 

Total property operating NOI

 

$

126,988

 

$

130,323

 

$

128,443

 

$

132,418

 

$

129,927

 

 

 

 

 

 

 

 

 

 

 

 

 

SLG share of Property NOI from JVs

 

$

54,808

 

$

53,190

 

$

51,949

 

$

52,355

 

$

55,284

 

SLG share of FFO from Gramercy Capital

 

$

 

$

 

$

5,710

 

$

4,866

 

$

5,144

 

Structured finance income

 

$

15,533

 

$

16,898

 

$

37,292

 

$

31,825

 

$

22,654

 

Other income

 

$

13,166

 

$

16,281

 

$

8,033

 

$

7,566

 

$

45,486

 

Gain on early extinguishment of debt

 

$

29,321

 

$

47,712

 

$

77,465

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan loss and other investment reserves

 

$

45,577

 

$

62,000

 

$

101,732

 

$

9,150

 

$

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing general & administrative expenses

 

$

17,946

 

$

17,922

 

$

33,770

 

$

20,920

 

$

25,434

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest

 

$

57,012

 

$

60,593

 

$

72,720

 

$

73,656

 

$

75,442

 

Combined interest

 

$

76,716

 

$

80,133

 

$

97,102

 

$

97,596

 

$

97,522

 

Preferred Dividend

 

$

4,969

 

$

4,969

 

$

4,969

 

$

4,969

 

$

4,969

 

 

 

 

 

 

 

 

 

 

 

 

 

Office Leasing Statistics (Manhattan)

 

 

 

 

 

 

 

 

 

 

 

Total office leases signed

 

29

 

32

 

42

 

39

 

42

 

Total office square footage leased

 

328,780

 

296,840

 

1,521,146

 

359,067

 

431,345

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rent psf - new leases

 

$

51.10

 

$

52.71

 

$

56.34

 

$

66.78

 

$

65.89

 

Previously escalated rents psf

 

$

40.15

 

$

42.53

 

$

48.30

 

$

43.09

 

$

42.92

 

Percentage of new rent over previously escalated rents

 

27.3

%

23.9

%

16.6

%

55.0

%

53.5

%

Tenant concession packages psf

 

$

53.68

 

$

18.60

 

$

8.20

 

$

32.30

 

$

17.70

 

Free rent months

 

4.0

 

2.9

 

3.7

 

6.0

 

2.0

 

 

12



 

 

SL Green Realty Corp.

 

Key Financial Data

 

June 30, 2009

 

(Dollars in Thousands Except Per Share and Sq. Ft.)

 

Suburban Properties

 

 

 

As of or for the three months ended

 

 

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Data (Suburban)

 

 

 

 

 

 

 

 

 

 

 

Property operating revenues

 

$

29,639

 

$

29,831

 

$

29,062

 

$

31,149

 

$

28,956

 

Property operating expenses

 

13,161

 

14,323

 

15,159

 

14,746

 

12,958

 

Property operating NOI

 

$

16,478

 

$

15,508

 

$

13,903

 

$

16,403

 

$

15,998

 

NOI from discontinued operations

 

(43

)

573

 

1,857

 

2,414

 

2,067

 

Total property operating NOI

 

$

16,435

 

$

16,081

 

$

15,760

 

$

18,817

 

$

18,065

 

 

 

 

 

 

 

 

 

 

 

 

 

SLG share of Property NOI from JV

 

$

4,251

 

$

4,164

 

$

3,962

 

$

4,020

 

$

3,765

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest

 

$

1,504

 

$

1,921

 

$

3,742

 

$

3,535

 

$

3,624

 

Combined interest

 

$

3,480

 

$

3,933

 

$

6,067

 

$

5,765

 

$

5,866

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Statistics (Suburban)

 

 

 

 

 

 

 

 

 

 

 

Consolidated office buildings

 

26

 

26

 

27

 

29

 

29

 

Unconsolidated office buildings

 

6

 

6

 

6

 

6

 

6

 

 

 

32

 

32

 

33

 

35

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated office buildings square footage

 

4,008,000

 

4,008,000

 

4,678,000

 

4,889,000

 

4,889,000

 

Unconsolidated office buildings square footage

 

2,941,700

 

2,941,700

 

2,941,700

 

2,941,700

 

2,941,700

 

 

 

6,949,700

 

6,949,700

 

7,619,700

 

7,830,700

 

7,830,700

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter end occupancy- suburban portfolio

 

90.3

%

90.4

%

90.4

%

91.4

%

91.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Office Leasing Statistics (Suburban)

 

 

 

 

 

 

 

 

 

 

 

Total office leases signed

 

22

 

29

 

18

 

17

 

24

 

Total office square footage leased

 

160,975

 

123,110

 

153,819

 

76,519

 

75,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rent psf - new leases

 

$

31.59

 

$

30.89

 

$

29.35

 

$

38.48

 

$

38.64

 

Previously escalated rents psf

 

$

31.34

 

$

31.36

 

$

28.85

 

$

31.39

 

$

31.24

 

Percentage of new rent over previously escalated rents

 

0.8

%

-1.5

%

1.7

%

22.6

%

23.7

%

Tenant concession packages psf

 

$

8.15

 

$

19.82

 

$

14.98

 

$

16.25

 

$

12.28

 

Free rent months

 

3.1

 

2.3

 

2.1

 

1.2

 

0.6

 

 

13



 

COMPARATIVE BALANCE SHEETS

 

Unaudited

($000’s omitted)

 

 

 

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate properties, at cost:

 

 

 

 

 

 

 

 

 

 

 

Land & land interests

 

$

1,385,182

 

$

1,385,101

 

$

1,386,090

 

$

1,400,042

 

$

1,483,798

 

Buildings & improvements fee interest

 

5,560,966

 

5,547,522

 

5,544,019

 

5,590,822

 

6,005,030

 

Buildings & improvements leasehold

 

1,268,022

 

1,255,573

 

1,259,472

 

1,251,626

 

1,250,378

 

Buildings & improvements under capital lease

 

12,208

 

12,208

 

12,208

 

12,208

 

12,208

 

 

 

$

8,226,378

 

$

8,200,404

 

$

8,201,789

 

$

8,254,698

 

$

8,751,414

 

Less accumulated depreciation

 

(635,415

)

(586,029

)

(546,545

)

(498,885

)

(484,087

)

 

 

$

7,590,963

 

$

7,614,375

 

$

7,655,244

 

$

7,755,813

 

$

8,267,327

 

Other Real Estate Investments:

 

 

 

 

 

 

 

 

 

 

 

Investment in unconsolidated joint ventures

 

978,340

 

976,572

 

975,483

 

1,139,918

 

1,132,329

 

Structured finance investments, net

 

534,518

 

589,267

 

679,814

 

926,931

 

839,826

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets held for sale, net

 

76,657

 

106,543

 

184,035

 

120,120

 

 

Cash and cash equivalents

 

676,768

 

433,654

 

726,889

 

711,147

 

53,567

 

Restricted cash

 

87,154

 

97,401

 

105,954

 

105,834

 

101,788

 

Tenant and other receivables, net of $14,508 reserve at 6/30/09

 

31,666

 

33,459

 

30,882

 

39,054

 

39,351

 

Related party receivables

 

9,519

 

14,119

 

7,676

 

10,556

 

11,682

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred rents receivable, net of reserve for tenant credit loss of $22,382 at 6/30/09

 

156,685

 

152,126

 

145,561

 

152,718

 

158,049

 

Deferred costs, net

 

135,520

 

134,297

 

133,052

 

135,949

 

141,285

 

Other assets

 

317,260

 

349,320

 

339,763

 

393,189

 

404,383

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

10,595,050

 

$

10,501,133

 

$

10,984,353

 

$

11,491,229

 

$

11,149,587

 

 

14



 

COMPARATIVE BALANCE SHEETS

 

Unaudited

($000’s omitted)

 

 

 

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

Mortgage notes payable

 

$

2,570,085

 

$

2,585,592

 

$

2,591,358

 

$

2,693,275

 

$

2,867,305

 

Term loans and unsecured notes

 

873,046

 

1,151,556

 

1,501,134

 

1,743,528

 

1,738,399

 

Revolving credit facilities

 

1,419,500

 

1,389,067

 

1,389,067

 

1,288,833

 

644,500

 

Accrued interest and other liabilities

 

38,177

 

54,478

 

70,692

 

33,367

 

40,867

 

Accounts payable and accrued expenses

 

125,267

 

133,937

 

133,100

 

154,159

 

130,897

 

Deferred revenue

 

376,143

 

401,848

 

427,936

 

462,734

 

789,525

 

Capitalized lease obligations

 

16,791

 

16,747

 

16,704

 

16,662

 

16,621

 

Deferred land lease payable

 

17,831

 

17,740

 

17,650

 

17,559

 

17,468

 

Dividends and distributions payable

 

12,014

 

26,420

 

26,327

 

51,268

 

51,803

 

Security deposits

 

36,737

 

34,865

 

34,561

 

34,105

 

33,595

 

Liabilities related to assets held for sale

 

 

 

106,534

 

309,166

 

 

Junior subordinated deferrable interest debentures

 

100,000

 

100,000

 

100,000

 

100,000

 

100,000

 

Total Liabilities

 

$

5,585,591

 

$

5,912,250

 

$

6,415,063

 

$

6,904,656

 

$

6,430,980

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest in operating partnership (2,336 units outstanding) at 6/30/09

 

89,035

 

89,600

 

87,330

 

87,929

 

88,639

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

SL Green Realty Corp. Stockholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

7.625% Series C Perpetual Preferred Shares

 

151,981

 

151,981

 

151,981

 

151,981

 

151,981

 

7.875% Series D Perpetual Preferred Shares

 

96,321

 

96,321

 

96,321

 

96,321

 

96,321

 

Common stock, $.01 par value, 160,000 shares authorized, 80,180 issued and outstanding at 6/30/09

 

802

 

606

 

604

 

604

 

604

 

Additional paid – in capital

 

3,481,518

 

3,087,123

 

3,079,159

 

3,050,461

 

3,039,949

 

Treasury stock (3,360 shares) at 6/30/09

 

(302,705

)

(302,705

)

(302,705

)

(267,327

)

(218,775

)

Accumulated other comprehensive income

 

(32,285

)

(53,089

)

(54,747

)

(13,197

)

(7,284

)

Retained earnings

 

996,051

 

989,476

 

979,939

 

923,539

 

940,269

 

Total SL Green Realty Corp. stockholders’ equity

 

4,391,683

 

3,969,713

 

3,950,552

 

3,942,382

 

4,003,065

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest in other partnerships

 

528,741

 

529,570

 

531,408

 

556,262

 

626,903

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

$

4,920,424

 

$

4,499,283

 

$

4,481,960

 

$

4,498,644

 

$

4,629,968

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

10,595,050

 

$

10,501,133

 

$

10,984,353

 

$

11,491,229

 

$

11,149,587

 

 

15



 

COMPARATIVE STATEMENTS OF OPERATIONS

 

Unaudited

($000’s omitted)

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

 

 

2009

 

2008

 

2009

 

2009

 

2008

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

192,735

 

$

192,575

 

$

196,468

 

$

389,203

 

$

386,416

 

Escalation and reimbursement revenues

 

31,534

 

30,007

 

33,758

 

65,292

 

59,966

 

Investment income

 

15,533

 

22,654

 

16,898

 

32,431

 

41,801

 

Other income

 

13,166

 

45,486

 

16,281

 

29,447

 

55,990

 

Total Revenues, net

 

252,968

 

290,722

 

263,405

 

516,373

 

544,173

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net income from unconsolidated joint ventures

 

16,828

 

17,822

 

13,073

 

29,901

 

37,247

 

Gain on early extinguishment of debt

 

29,321

 

 

47,712

 

77,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

52,441

 

54,744

 

55,481

 

107,923

 

108,415

 

Ground rent

 

8,046

 

7,826

 

8,046

 

16,092

 

16,075

 

Real estate taxes

 

36,751

 

32,760

 

36,949

 

73,700

 

65,284

 

Loan loss and other investment reserves

 

45,577

 

5,000

 

62,000

 

107,577

 

5,000

 

Marketing, general and administrative

 

17,946

 

25,434

 

17,922

 

35,868

 

49,893

 

Total Operating Expenses

 

160,761

 

125,764

 

180,398

 

341,160

 

244,667

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

138,356

 

182,780

 

143,792

 

282,147

 

336,753

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of interest income

 

57,012

 

73,604

 

60,264

 

117,276

 

149,650

 

Amortization of deferred financing costs

 

1,476

 

1,538

 

1,436

 

2,912

 

3,171

 

Depreciation and amortization

 

55,186

 

54,685

 

54,798

 

109,984

 

108,119

 

Loss (gain) on equity investment in marketable securities

 

(126

)

 

807

 

681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations

 

24,808

 

52,953

 

26,487

 

51,294

 

75,813

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(538

)

1,566

 

(66

)

(604

)

2,931

 

Gain (loss) on sale of discontinued operations

 

 

 

6,572

 

6,572

 

110,232

 

Equity in net gain (loss) on sale of joint venture property / real estate

 

(2,693

)

93,481

 

9,541

 

6,848

 

93,481

 

Net Income

 

21,577

 

148,000

 

42,534

 

64,110

 

282,457

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

(4,065

)

(8,840

)

(4,797

)

(8,862

)

(17,050

)

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to SL Green Realty Corp

 

17,512

 

139,160

 

37,737

 

55,248

 

265,407

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends on perpetual preferred shares

 

4,969

 

4,969

 

4,969

 

9,938

 

9,938

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to Common Stockholders

 

$

12,543

 

$

134,191

 

$

32,768

 

$

45,310

 

$

255,469

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share

 

 

 

 

 

 

 

 

 

 

 

Net income per share (basic)

 

$

0.19

 

$

2.30

 

$

0.57

 

$

0.73

 

$

4.37

 

Net income per share (diluted)

 

$

0.18

 

$

2.29

 

$

0.57

 

$

0.73

 

$

4.35

 

 

16



 

COMPARATIVE COMPUTATION OF FFO AND FAD

 

Unaudited

($000’s omitted - except per share data)

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

 

 

2009

 

2008

 

2009

 

2009

 

2008

 

Funds from operations

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to Common Stockholders

 

$

12,543

 

$

134,191

 

$

32,768

 

$

45,310

 

$

255,469

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

Depreciation and amortization

 

55,186

 

54,685

 

54,798

 

109,984

 

108,119

 

 

Discontinued operations depreciation adjustments

 

 

1,715

 

 

 

4,219

 

 

Joint ventures depreciation and noncontrolling interests adjustments

 

9,322

 

11,381

 

11,265

 

20,587

 

19,556

 

 

Net income attributable to noncontrolling interests

 

4,065

 

8,840

 

4,797

 

8,862

 

17,050

 

 

Loss (gain) on equity investment in marketable securities

 

(126

)

 

807

 

681

 

 

Less:

Gain on sale of discontinued operations

 

 

 

6,572

 

6,572

 

110,232

 

 

Equity in net gain (loss) on sale of joint venture property / real estate

 

(2,693

)

93,481

 

9,541

 

6,848

 

93,481

 

 

Non real estate depreciation and amortization

 

170

 

234

 

204

 

374

 

456

 

 

Funds From Operations

 

$

83,513

 

$

117,097

 

$

88,118

 

$

171,630

 

$

200,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations - Basic per Share

 

$

1.20

 

$

1.93

 

$

1.48

 

$

2.66

 

$

3.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations - Diluted per Share

 

$

1.20

 

$

1.92

 

$

1.48

 

$

2.65

 

$

3.28

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Available for Distribution

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

83,513

 

$

117,097

 

$

88,118

 

171,630

 

200,244

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

Non real estate depreciation and amortization

 

170

 

234

 

204

 

374

 

456

 

 

Amortization of deferred financing costs

 

1,476

 

1,538

 

1,436

 

2,912

 

3,171

 

 

Non-cash deferred compensation

 

7,207

 

4,351

 

7,593

 

14,800

 

9,723

 

Less:

FAD adjustment for Joint Ventures

 

8,800

 

6,503

 

26,204

 

35,004

 

13,298

 

 

FAD adjustment for discontinued operations

 

 

424

 

 

 

465

 

 

Straight-line rental income and other non cash adjustments

 

9,724

 

10,605

 

12,254

 

21,978

 

26,274

 

 

Second cycle tenant improvements

 

1,238

 

6,223

 

937

 

2,175

 

10,824

 

 

Second cycle leasing commissions

 

3,000

 

3,540

 

2,422

 

5,422

 

5,064

 

 

Revenue enhancing recurring CAPEX

 

93

 

481

 

185

 

278

 

607

 

 

Non- revenue enhancing recurring CAPEX

 

2,857

 

633

 

424

 

3,281

 

868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Available for Distribution

 

$

66,654

 

$

94,811

 

$

54,925

 

$

121,578

 

$

156,195

 

 

Diluted per Share

 

$

0.96

 

$

1.55

 

$

0.92

 

$

1.88

 

$

2.56

 

 

 

 

 

 

 

 

 

 

 

 

 

First Cycle Leasing Costs

 

 

 

 

 

 

 

 

 

 

 

 

Tenant improvements

 

3,919

 

11,753

 

5,394

 

9,313

 

14,007

 

 

Leasing commissions

 

43

 

5,904

 

322

 

365

 

8,483

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Available for Distribution after First Cycle Leasing Costs

 

$

62,692

 

$

77,154

 

$

49,209

 

$

111,900

 

$

133,705

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Available for Distribution per Diluted Weighted Average Unit and Common Share

 

$

0.90

 

$

1.26

 

$

0.83

 

$

1.73

 

$

2.19

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment Costs

 

$

6,996

 

$

13,965

 

$

8,583

 

$

15,579

 

$

20,155

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Ratio of Funds From Operations

 

8.35

%

41.03

%

25.34

%

17.90

%

48.07

%

Payout Ratio of Funds Available for Distribution Before First Cycle Leasing Costs

 

10.46

%

50.68

%

40.66

%

25.27

%

61.63

%

 

17



 

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 

Unaudited

($000’s omitted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Series C

 

Series D

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

Preferred

 

Preferred

 

Common

 

Additional

 

Treasury

 

Retained

 

Noncontrolling

 

Comprehensive

 

 

 

 

 

Stock

 

Stock

 

Stock

 

Paid-In Capital

 

Stock

 

Earnings

 

Interests

 

Income

 

TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2008

 

$

151,981

 

$

96,321

 

$

604

 

$

3,079,159

 

$

(302,705

)

$

979,939

 

$

531,408

 

$

(54,747

)

$

4,481,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income attributable to SL Green

 

 

 

 

 

 

 

 

 

 

 

55,248

 

7,160

 

 

 

62,408

 

Preferred Dividend

 

 

 

 

 

 

 

 

 

 

 

(9,938

)

 

 

 

 

(9,938

)

Cash distributions declared ($0.475 per common share)

 

 

 

 

 

 

 

 

 

 

 

(29,198

)

 

 

 

 

(29,198

)

Cash distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,827

)

 

 

(9,827

)

Comprehensive Income - Unrealized loss on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,165

 

20,165

 

Comprehensive Income - SLG share unrealized loss on derivative instruments of JV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,700

 

1,700

 

Comprehensive Income - Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

597

 

597

 

Net proceeds from common stock offering

 

 

 

 

 

196

 

387,128

 

 

 

 

 

 

 

 

 

387,324

 

Redemption of units and dividend reinvestment proceeds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation plan

 

 

 

 

 

2

 

431

 

 

 

 

 

 

 

 

 

433

 

Amortization of deferred compensation

 

 

 

 

 

 

 

14,800

 

 

 

 

 

 

 

 

 

14,800

 

Balance at June 30, 2009

 

$

151,981

 

$

96,321

 

$

802

 

$

3,481,518

 

$

(302,705

)

$

996,051

 

$

528,741

 

$

(32,285

)

$

4,920,424

 

 

 

RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION

 

 

 

 

Common Stock

 

OP Units

 

Stock-Based
Compensation

 

Sub-total

 

Preferred Stock

 

Diluted Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Count at December 31, 2008

 

57,043,835

 

2,339,853

 

 

 

59,383,688

 

 

59,383,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD share activity

 

19,776,019

 

(3,376

)

 

 

19,772,643

 

 

 

19,772,643

 

Share Count at June 30, 2009 - Basic

 

76,819,854

 

2,336,477

 

 

79,156,331

 

 

79,156,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighting Factor

 

(14,521,434

)

1,306

 

42,947

 

(14,477,181

)

 

 

(14,477,181

)

Weighted Average Share Count at June 30, 2009 - Diluted

 

62,298,420

 

2,337,783

 

42,947

 

64,679,150

 

 

64,679,150

 

 

18



 

TAXABLE INCOME

Unaudited

($000’s omitted)

 

 

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Net Income Available to Common Stockholders

 

$

45,310

 

$

255,469

 

Book/Tax Depreciation Adjustment

 

28,576

 

(8,729

)

Book/Tax Gain Recognition Adjustment

 

(29,283

)

(212,451

)

Book/Tax JV Net equity adjustment

 

(2,937

)

44,274

 

Other Operating Adjustments

 

7,687

 

14,392

 

C-corp Earnings

 

(2,251

)

(1,437

)

Taxable Income (Projected)

 

$

47,102

 

$

91,518

 

 

 

 

 

 

 

Deemed dividend per share

 

$

0.85

 

$

1.58

 

Estimated payout of taxable income

 

139

%

100

%

 

 

 

 

 

 

Shares outstanding - basic

 

76,820

 

58,283

 

 

 

 

 

 

 

 

Payout of Taxable Income Analysis:

 

Estimated taxable income is derived from net income less straightline rent, free rent net of amortization, plus tax gain on sale of properties, credit loss, straightline ground rent and the difference between tax and GAAP depreciation.  The Company has deferred the taxable gain on the sales of 286, 290 & 292 Madison Avenue, 1140 Avenue of the Americas, One Park Avenue, 70 West 36th Street, 110 East 42nd Street, 125 Broad Street and 440 Ninth Avenue through 1031 exchanges. In addition, the Company has deferred substantially all of the taxable gain resulting from the sale of interests in 1372 Broadway and 470 Park Avenue South.

 

19



 

JOINT VENTURE STATEMENTS
Balance Sheet for Unconsolidated Property Joint Ventures
Unaudited
($000’s omitted)

 

 

 

June 30, 2009

 

June 30, 2008

 

 

 

Total Property

 

SLG Property Interest

 

Total Property

 

SLG Property Interest

 

Land & land interests

 

$

1,528,141

 

$

727,623

 

$

1,442,620

 

$

701,958

 

Buildings & improvements fee interest

 

4,756,496

 

1,988,440

 

4,494,399

 

1,950,878

 

Buildings & improvements leasehold

 

262,478

 

129,996

 

261,084

 

129,301

 

 

 

6,547,115

 

2,846,059

 

6,198,103

 

2,782,137

 

Less accumulated depreciation

 

(427,598

)

(189,875

)

(294,794

)

(135,753

)

 

 

 

 

 

 

 

 

 

 

Net Real Estate

 

6,119,517

 

2,656,184

 

5,903,309

 

2,646,384

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

105,758

 

45,025

 

114,005

 

52,107

 

Restricted cash

 

38,991

 

16,810

 

32,262

 

15,208

 

Tenant receivables, net of $2,415 reserve at 6/30/09

 

13,093

 

5,030

 

11,901

 

5,082

 

Deferred rents receivable, net of reserve for tenant credit loss of $3,344 at 6/30/09

 

166,453

 

82,763

 

103,782

 

51,543

 

Deferred costs, net

 

118,796

 

49,705

 

90,858

 

41,555

 

Other assets

 

170,941

 

62,960

 

123,568

 

42,356

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

6,733,549

 

$

2,918,477

 

$

6,379,685

 

$

2,854,235

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans payable

 

$

4,273,697

 

$

1,888,898

 

$

3,995,380

 

$

1,840,071

 

Derivative Instruments-fair value

 

33,612

 

17,009

 

1,107

 

562

 

Accrued interest payable

 

10,303

 

4,552

 

11,445

 

5,318

 

Accounts payable and accrued expenses

 

87,258

 

36,690

 

49,817

 

23,338

 

Deferred revenue

 

145,009

 

49,422

 

156,450

 

53,807

 

Security deposits

 

7,464

 

3,417

 

9,766

 

4,538

 

Contributed Capital (1)

 

2,176,206

 

918,489

 

2,155,720

 

926,601

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

6,733,549

 

$

2,918,477

 

$

6,379,685

 

$

2,854,235

 

 

As of June 30, 2009 the Company had nineteen unconsolidated joint venture interests including a 50% interest in 100 Park Avenue, a 68.5% economic interest in 1515 Broadway (increased from 55% in December 2005), a 45% interest in 1221 Avenue of the Americas, a 45% interest in 379 West Broadway, a 50% interest in 21-25 West 34th Street, a 42.95% interest in 800 Third Avenue, a 50% interest in 521 Fifth Avenue, a 30% interest in One Court Square, a 63% economic interest in 1604-1610 Broadway, a 20.26% interest in 1&2 Jericho Plaza, a 55% interest in 2 Herald Square, a 32.25% interest in 1745 Broadway, a 55% interest in 885 Third Avenue, a 35% interest in 16 Court Street, a 25% interest in The Meadows, a 50.6% interest in 388/390 Greenwich Street, a 50% interest in 27-29 West 34th Street, a 10% interest in 1551/1555 Broadway (decreased from 50% in August 2008) and a 32.75% interest in 717 Fifth Avenue. These interests are accounted for on the equity method of accounting and, therefore, are not consolidated into the company’s financial statements.

 

As we have been designated as the primary beneficiary under FIN 46(R), we have consolidated the accounts of the following five joint ventures: a 50% interest in 141 Fifth Avenue, a 50% interest in 180-182 Broadway and a 51% interest in each of 919 Third Avenue, 680 Washington Avenue and 750 Washington Avenue.

 


(1) Contributed capital includes adjustments to capital to reflect our share of capital based on implied sales prices of partially sold or contributed properties. Our investment in an unconsolidated joint venture reflects our actual contributed capital base.

 

20



 

JOINT VENTURE STATEMENTS

Statements of Operations for Unconsolidated Property Joint Ventures

Unaudited

($000’s omitted)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

Three Months Ended June 30, 2009

 

March 31, 2009

 

Three Months Ended June 30, 2008

 

 

 

 

 

SLG

 

SLG

 

 

 

SLG

 

 

 

Total Property

 

Property Interest

 

Property Interest

 

Total Property

 

Property Interest

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Rental Revenue, net

 

$

152,435

 

$

68,362

 

$

67,437

 

$

142,891

 

$

69,392

 

Escalation and reimbursement revenues

 

20,134

 

9,506

 

9,849

 

21,312

 

10,821

 

Other income

 

449

 

262

 

509

 

556

 

294

 

Total Revenues, net

 

$

173,018

 

$

78,130

 

$

77,795

 

$

164,759

 

$

80,507

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

28,454

 

$

12,716

 

$

14,048

 

$

31,131

 

$

15,028

 

Ground rent

 

1,025

 

171

 

171

 

1,002

 

575

 

Real estate taxes

 

22,072

 

10,435

 

10,386

 

19,494

 

9,620

 

Total Operating Expenses

 

$

51,551

 

$

23,322

 

$

24,605

 

$

51,627

 

$

25,223

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP NOI

 

$

121,467

 

$

54,808

 

$

53,190

 

$

113,132

 

$

55,284

 

Cash NOI

 

$

105,121

 

$

46,983

 

$

38,164

 

$

101,278

 

$

49,301

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of interest income

 

47,299

 

19,704

 

19,540

 

46,747

 

22,080

 

Amortization of deferred financing costs

 

3,177

 

1,263

 

1,387

 

3,467

 

1,521

 

Depreciation and amortization

 

40,484

 

17,006

 

16,238

 

34,586

 

15,423

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

30,507

 

$

16,835

 

$

16,025

 

$

28,332

 

$

16,260

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Real estate depreciation

 

40,444

 

16,998

 

16,231

 

34,535

 

15,413

 

Funds From Operations

 

$

70,951

 

$

33,833

 

$

32,256

 

$

62,867

 

$

31,673

 

 

 

 

 

 

 

 

 

 

 

 

 

FAD Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Plus:

 Non real estate depreciation and amortization

 

$

3,217

 

$

1,271

 

$

1,394

 

$

3,518

 

$

1,531

 

Less:

Straight-line rental income and other non-cash adjustments

 

(16,344

)

(7,824

)

(14,918

)

(11,504

)

(5,878

)

Less:

Second cycle tenant improvement

 

(898

)

(387

)

(6,785

)

(4,054

)

(1,560

)

Less:

Second cycle leasing commissions

 

(3,369

)

(1,591

)

(5,391

)

(1,289

)

(538

)

Less:

Recurring CAPEX

 

(618

)

(269

)

(504

)

(92

)

(58

)

FAD Adjustment

 

$

(18,012

)

$

(8,800

)

$

(26,204

)

$

(13,421

)

$

(6,503

)

 

21



 

JOINT VENTURE STATEMENTS

Statements of Operations for Unconsolidated Property Joint Ventures

Unaudited

($000’s omitted)

 

 

 

Six Months Ended June 30, 2009

 

Six Months Ended June 30, 2008

 

 

 

 

 

SLG

 

 

 

SLG

 

 

 

Total Property

 

Property Interest

 

Total Property

 

Property Interest

 

Revenues

 

 

 

 

 

 

 

 

 

Rental Revenue, net

 

$

303,522

 

$

135,799

 

$

286,493

 

$

139,065

 

Escalation and reimbursement revenues

 

40,972

 

19,355

 

41,801

 

21,206

 

Other income

 

1,393

 

771

 

1,625

 

749

 

Total Revenues, net

 

$

345,887

 

$

155,925

 

$

329,919

 

$

161,020

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

60,258

 

$

26,764

 

$

63,874

 

$

31,057

 

Ground rent

 

2,050

 

342

 

2,004

 

1,150

 

Real estate taxes

 

44,064

 

20,821

 

39,613

 

19,644

 

Total Operating Expenses

 

$

106,372

 

$

47,927

 

$

105,491

 

$

51,851

 

 

 

 

 

 

 

 

 

 

 

GAAP NOI

 

$

239,515

 

$

107,998

 

$

224,428

 

$

109,169

 

Cash NOI

 

$

196,908

 

$

85,147

 

$

201,768

 

$

97,633

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of interest income

 

94,062

 

39,244

 

94,383

 

44,525

 

Amortization of deferred financing costs

 

7,782

 

2,650

 

6,522

 

2,861

 

Depreciation and amortization

 

80,312

 

33,244

 

68,526

 

31,188

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

57,359

 

$

32,860

 

$

54,997

 

$

30,595

 

 

 

 

 

 

 

 

 

 

 

Plus: Real estate depreciation

 

80,240

 

33,229

 

68,425

 

31,168

 

Funds From Operations

 

$

137,599

 

$

66,089

 

$

123,422

 

$

61,763

 

 

 

 

 

 

 

 

 

 

 

FAD Adjustments:

 

 

 

 

 

 

 

 

 

Plus:

Non real estate depreciation and amortization

 

$

7,854

 

$

2,665

 

$

6,622

 

$

2,881

 

Less:

Straight-line rental income and other non-cash adjustments

 

(42,241

)

(22,742

)

(22,308

)

(11,432

)

Less:

Second cycle tenant improvement

 

(17,292

)

(7,172

)

(6,996

)

(2,998

)

Less:

Second cycle leasing commissions

 

(12,398

)

(6,982

)

(3,209

)

(1,440

)

Less:

Recurring CAPEX

 

(1,755

)

(773

)

(470

)

(309

)

FAD Adjustment

 

$

(65,832

)

$

(35,004

)

$

(26,361

)

$

(13,298

)

 

22



 

SELECTED FINANCIAL DATA
Capitalization Analysis
Unaudited
($000’s omitted)

 

 

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

Market Capitalization

 

 

 

 

 

 

 

 

 

 

 

Common Equity:

 

 

 

 

 

 

 

 

 

 

 

Common Shares Outstanding

 

76,820

 

57,259

 

57,044

 

57,606

 

58,283

 

OP Units Outstanding

 

2,336

 

2,336

 

2,340

 

2,340

 

2,340

 

Total Common Equity (Shares and Units)

 

79,156

 

59,595

 

59,384

 

59,946

 

60,623

 

Share Price (End of Period)

 

$

22.94

 

$

10.80

 

$

25.90

 

$

64.80

 

$

82.72

 

Equity Market Value

 

$

1,815,839

 

$

643,626

 

$

1,538,046

 

$

3,884,501

 

$

5,014,735

 

Preferred Equity at Liquidation Value:

 

257,500

 

257,500

 

257,500

 

257,500

 

257,500

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Debt

 

 

 

 

 

 

 

 

 

 

 

Property Level Mortgage Debt

 

2,570,085

 

2,585,592

 

2,591,358

 

2,693,275

 

2,867,305

 

Outstanding Balance on – Unsecured Credit Line

 

1,419,500

 

1,389,067

 

1,389,067

 

1,288,833

 

644,500

 

Junior Subordinated Deferrable Interest Debentures

 

100,000

 

100,000

 

100,000

 

100,000

 

100,000

 

Unsecured Notes

 

548,317

 

563,456

 

774,693

 

774,684

 

774,676

 

Convertible Bonds

 

324,729

 

588,100

 

726,441

 

968,844

 

963,724

 

Liability Held for Sale

 

 

 

95,000

 

 

 

Total Consolidated Debt

 

4,962,631

 

5,226,215

 

5,676,559

 

5,825,636

 

5,350,205

 

Company’s Portion of Joint Venture Debt

 

1,888,898

 

1,935,460

 

1,933,633

 

1,931,923

 

1,840,071

 

Total Combined Debt

 

6,851,529

 

7,161,675

 

7,610,192

 

7,757,559

 

7,190,276

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Cap (Debt & Equity)

 

$

8,924,868

 

$

8,062,801

 

$

9,405,738

 

$

11,899,560

 

$

12,462,511

 

 

 

 

 

 

 

 

 

 

 

 

 

Availability under Lines of Credit

 

 

 

 

 

 

 

 

 

 

 

Senior Unsecured Line of Credit

 

58,903

(A)

56,490

 

55,541

 

182,111

 

818,483

 

Term Loans

 

 

 

 

 

 

Total Availability

 

$

58,903

 

$

56,490

 

$

55,541

 

$

182,111

 

$

818,483

 

 

 

 

 

 

 

 

 

 

 

 

 


 

(A) As reduced by $21,597 letters of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined Capitalized Interest

 

$

127

 

$

136

 

$

534

 

$

595

 

$

790

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio Analysis

 

 

 

 

 

 

 

 

 

 

 

Consolidated Basis

 

 

 

 

 

 

 

 

 

 

 

Debt to Market Cap Ratio

 

70.53

%

85.29

%

75.97

%

58.45

%

50.37

%

Debt to Gross Real Estate Book Ratio

 

60.42

%

63.83

%

68.50

%

69.61

%

61.21

%

Secured Real Estate Debt to Secured Assets Gross Book

 

57.32

%

57.85

%

58.76

%

59.20

%

59.49

%

Unsecured Debt to Unencumbered Assets-Gross Book Value

 

65.14

%

72.10

%

81.78

%

84.84

%

65.35

%

Joint Ventures Allocated

 

 

 

 

 

 

 

 

 

 

 

Combined Debt to Market Cap Ratio

 

76.77

%

88.82

%

80.91

%

65.19

%

57.70

%

Debt to Gross Real Estate Book Ratio

 

61.95

%

64.60

%

68.01

%

68.89

%

62.40

%

Secured Real Estate Debt to Secured Assets Gross Book

 

60.84

%

61.37

%

61.80

%

62.16

%

61.92

%

 

23



 

SELECTED FINANCIAL DATA
Property NOI and Coverage Ratios
Unaudited
($000’s omitted)

 

 

 

Three Months Ended

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

 

 

2009

 

2008

 

2009

 

2009

 

2008

 

Property NOI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Operating NOI

 

$

127,031

 

$

127,252

 

$

129,750

 

$

256,781

 

$

256,607

 

NOI from Discontinued Operations

 

(43

)

2,675

 

573

 

530

 

5,845

 

Total Property Operating NOI - Consolidated

 

126,988

 

129,927

 

130,323

 

257,311

 

262,452

 

SLG share of Property NOI from JVs

 

54,808

 

55,284

 

53,190

 

107,998

 

109,169

 

GAAP NOI

 

$

181,796

 

$

185,211

 

$

183,513

 

$

365,309

 

$

371,621

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Free Rent (Net of Amortization)

 

2,002

 

601

 

8,944

 

10,946

 

3,724

 

 

Net FAS 141 Adjustment

 

5,926

 

4,367

 

6,113

 

12,039

 

10,295

 

 

Straightline Revenue Adjustment

 

12,504

 

14,290

 

12,737

 

25,241

 

29,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:

Allowance for S/L tenant credit loss

 

2,856

 

1,057

 

2,114

 

4,970

 

2,115

 

 

Ground Lease Straight-line Adjustment

 

91

 

91

 

91

 

182

 

509

 

Cash NOI

 

$

164,311

 

$

167,101

 

$

157,924

 

$

322,235

 

$

330,721

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of Debt Service and Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

57,012

 

75,442

 

60,593

 

117,605

 

153,446

 

Fixed Amortization Principal Payments

 

6,799

 

6,052

 

7,145

 

13,944

 

11,965

 

Total Consolidated Debt Service

 

63,811

 

81,494

 

67,738

 

131,549

 

165,411

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments under Ground Lease Arrangements

 

8,137

 

7,917

 

8,137

 

16,274

 

16,584

 

Dividend on perpetual preferred shares

 

4,969

 

4,969

 

4,969

 

9,938

 

9,938

 

Total Consolidated Fixed Charges

 

76,917

 

94,380

 

80,844

 

157,761

 

191,933

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA - Consolidated

 

201,763

 

208,153

 

229,977

 

431,740

 

392,097

 

Adjusted EBITDA - Combined

 

221,467

 

230,548

 

249,517

 

470,984

 

437,280

 

Interest Coverage Ratio

 

3.68

 

2.89

 

3.81

 

3.75

 

2.64

 

Debt Service Coverage Ratio

 

3.27

 

2.67

 

3.41

 

3.34

 

2.44

 

Fixed Charge Coverage Ratio

 

2.70

 

2.29

 

2.85

 

2.78

 

2.10

 

 

24



 

SELECTED FINANCIAL DATA
2009 Same Store - Consolidated

Unaudited

($000’s omitted)

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Six Months Ended

 

 

 

 

June 30,

 

June 30,

 

 

 

March 31,

 

June 30,

 

June 30,

 

 

 

 

 

 

2009

 

2008

 

%

 

2009

 

2009

 

2008

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Revenue, net

 

190,391

 

183,267

 

3.9

%

191,006

 

381,396

 

368,019

 

3.6

%

 

Escalation & Reimbursement Revenues

 

31,048

 

29,554

 

5.1

%

33,007

 

64,055

 

59,052

 

8.5

%

 

Other Income

 

1,655

 

4,446

 

-62.8

%

663

 

2,318

 

6,706

 

-65.4

%

 

Total Revenues

 

223,094

 

217,267

 

2.7

%

224,676

 

447,769

 

433,777

 

3.2

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expense

 

47,797

 

49,783

 

-4.0

%

52,225

 

100,022

 

100,289

 

-0.3

%

 

Ground Rent

 

8,284

 

7,922

 

4.6

%

8,284

 

16,567

 

16,171

 

2.4

%

 

Real Estate Taxes

 

36,237

 

32,244

 

12.4

%

36,372

 

72,609

 

64,262

 

13.0

%

 

 

 

92,318

 

89,949

 

2.6

%

96,881

 

189,198

 

180,722

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

130,776

 

127,318

 

2.7

%

127,795

 

258,571

 

253,055

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense & Amortization of Financing costs

 

36,807

 

36,364

 

1.2

%

36,681

 

73,488

 

73,202

 

0.4

%

 

Depreciation & Amortization

 

52,443

 

50,547

 

3.8

%

52,239

 

104,682

 

98,975

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Noncontrolling Interest

 

41,526

 

40,407

 

2.8

%

38,875

 

80,401

 

80,878

 

-0.6

%

Plus:

Real Estate Depreciation & Amortization

 

52,434

 

50,537

 

3.8

%

52,224

 

104,658

 

98,958

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

93,960

 

90,944

 

3.3

%

91,099

 

185,059

 

179,836

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Non – Building Revenue

 

822

 

248

 

231.5

%

192

 

1,015

 

707

 

43.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:

Interest Expense & Amortization of Financing costs

 

36,807

 

36,364

 

1.2

%

36,681

 

73,488

 

73,202

 

0.4

%

 

Non Real Estate Depreciation

 

9

 

10

 

-10.0

%

15

 

24

 

17

 

41.2

%

 

GAAP NOI

 

129,954

 

127,070

 

2.3

%

127,603

 

257,556

 

252,348

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Free Rent (Net of Amortization)

 

737

 

791

 

-6.8

%

579

 

1,316

 

1,582

 

-16.8

%

 

Straightline Revenue Adjustment

 

6,292

 

7,016

 

-10.3

%

6,623

 

12,915

 

14,955

 

-13.6

%

 

Rental Income - FAS 141

 

5,104

 

3,861

 

32.2

%

5,404

 

10,509

 

9,440

 

11.3

%

 

Ground Lease Straight-line Adjustment

 

304

 

666

 

-54.4

%

304

 

609

 

1,005

 

-39.4

%

Plus:

Allowance for S/L tenant credit loss

 

2,405

 

775

 

210.3

%

1,872

 

4,277

 

1,608

 

166.0

%

 

Cash NOI

 

119,922

 

115,511

 

3.8

%

116,565

 

236,484

 

226,974

 

4.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP NOI to Real Estate Revenue, net

 

57.84

%

58.34

%

 

 

56.37

%

57.10

%

58.05

%

 

 

 

Cash NOI to Real Estate Revenue, net

 

53.38

%

53.04

%

 

 

51.50

%

52.43

%

52.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP NOI before Ground Rent/Real Estate Revenue, net

 

61.53

%

61.98

%

 

 

60.03

%

60.78

%

61.77

%

 

 

 

Cash NOI before Ground Rent/Real Estate Revenue, net

 

56.93

%

56.37

%

 

 

55.02

%

55.97

%

55.71

%

 

 

 

25



 

SELECTED FINANCIAL DATA
2009 Same Store - Joint Venture

Unaudited

($000’s omitted)

 

 

 

 

Three Months Ended

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

March 31,

 

June 30,

 

June 30,

 

 

 

 

 

 

2009

 

2008

 

%

 

2009

 

2009

 

2008

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Revenue, net

 

66,418

 

64,420

 

3.1

%

65,435

 

131,853

 

126,728

 

4.0

%

 

Escalation & Reimbursement Revenues

 

9,431

 

10,086

 

-6.5

%

9,729

 

19,160

 

19,527

 

-1.9

%

 

Other Income

 

101

 

53

 

90.6

%

356

 

457

 

104

 

339.4

%

 

Total Revenues

 

75,950

 

74,559

 

1.9

%

75,520

 

151,470

 

146,359

 

3.5

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expense

 

12,376

 

13,423

 

-7.8

%

13,879

 

26,255

 

27,262

 

-3.7

%

 

Ground Rent

 

171

 

161

 

6.2

%

171

 

342

 

321

 

6.5

%

 

Real Estate Taxes

 

10,295

 

8,881

 

15.9

%

10,243

 

20,537

 

17,796

 

15.4

%

 

 

 

22,842

 

22,465

 

1.7

%

24,293

 

47,134

 

45,379

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

53,108

 

52,094

 

1.9

%

51,227

 

104,336

 

100,980

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense & Amortization of Financing costs

 

19,550

 

21,593

 

-9.5

%

19,470

 

39,021

 

42,654

 

-8.5

%

 

Depreciation & Amortization

 

16,354

 

14,318

 

14.2

%

15,512

 

31,866

 

28,381

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Noncontrolling Interest

 

17,204

 

16,183

 

6.3

%

16,245

 

33,449

 

29,945

 

11.7

%

Plus:

Real Estate Depreciation & Amortization

 

16,345

 

14,307

 

14.2

%

15,506

 

31,851

 

28,361

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

33,549

 

30,490

 

10.0

%

31,751

 

65,300

 

58,306

 

12.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Non – Building Revenue

 

77

 

27

 

185.2

%

333

 

410

 

32

 

1181.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:

Interest Expense & Amortization of Financing costs

 

19,550

 

21,593

 

-9.5

%

19,470

 

39,021

 

42,654

 

-8.5

%

 

Non Real Estate Depreciation

 

9

 

11

 

-18.2

%

6

 

15

 

20

 

-25.0

%

 

GAAP NOI

 

53,031

 

52,067

 

1.9

%

50,894

 

103,926

 

100,948

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Free Rent (Net of Amortization)

 

1,023

 

(27

)

3888.9

%

8,380

 

9,403

 

(201

)

4778.1

%

 

Straightline Revenue Adjustment

 

5,950

 

5,652

 

5.3

%

5,806

 

11,756

 

11,279

 

4.2

%

 

FAS 141

 

786

 

415

 

89.4

%

783

 

1,569

 

974

 

61.1

%

Plus:

Allowance for S/L tenant credit loss

 

395

 

125

 

216.0

%

232

 

627

 

209

 

200.0

%

 

Ground Lease Straight-line Adjustment

 

2

 

4

 

-50.0

%

11

 

13

 

17

 

-23.5

%

 

Cash NOI

 

45,669

 

46,156

 

-1.1

%

36,168

 

81,838

 

89,122

 

-8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP NOI to Real Estate Revenue, net

 

69.53

%

69.74

%

 

 

67.48

%

68.51

%

68.89

%

 

 

 

Cash NOI to Real Estate Revenue, net

 

59.88

%

61.82

%

 

 

47.96

%

53.95

%

60.82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP NOI before Ground Rent/Real Estate Revenue, net

 

69.76

%

69.96

%

 

 

67.71

%

68.74

%

69.11

%

 

 

 

Cash NOI before Ground Rent/Real Estate Revenue, net

 

60.10

%

62.03

%

 

 

48.17

%

54.17

%

61.03

%

 

 

 

26



 

DEBT SUMMARY SCHEDULE - Consolidated

Unaudited
($000’s omitted)

 

 

 

Principal

 

 

 

2009 Annual

 

 

 

 

 

As-Of

 

 

 

 

 

Outstanding

 

 

 

Principal

 

Maturity

 

Due at

 

Right

 

Earliest

 

 

 

6/30/2009

 

Coupon

 

Repayment

 

Date

 

Maturity

 

Extension

 

Prepayment

 

Fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300 Main Street

 

11,500

 

5.75

%

 

Feb-17

 

11,500

 

 

Feb-10

 

399 Knollwood

 

18,570

 

5.75

%

317

 

Mar-14

 

16,877

 

 

Open

 

141 Fifth Avenue

 

25,000

 

5.70

%

 

Jun-17

 

25,000

 

 

Jun-10

 

500 West Putnam Avenue

 

25,000

 

5.52

%

 

Jan-16

 

21,877

 

 

Open

 

673 First Avenue

 

32,001

 

5.67

%

781

 

Feb-13

 

28,984

 

 

Open

 

625 Madison Avenue

 

96,435

 

6.27

%

2,333

 

Nov-15

 

78,595

 

 

Open

 

609 Fifth Avenue

 

98,638

 

5.85

%

1,367

 

Oct-13

 

92,062

 

 

Open

 

420 Lexington Avenue

 

108,558

 

8.44

%

2,947

 

Nov-10

 

104,691

 

 

Open

 

711 Third Avenue

 

120,000

 

4.99

%

 

Jun-15

 

120,000

 

 

Open

 

120 W 45th Street

 

170,000

 

6.12

%

 

Feb-17

 

170,000

 

 

Jan-10

 

220 E 42nd Street

 

200,835

 

5.23

%

3,909

 

Nov-13

 

182,342

 

 

Open

 

919 Third Avenue

 

226,390

 

6.87

%

3,942

 

Jul-11

 

216,656

 

 

Open

 

485 Lexington Avenue

 

450,000

 

5.61

%

 

Feb-17

 

450,000

 

 

Jan-10

 

1 Madison Avenue - South Building

 

657,524

 

5.91

%

11,154

 

May-20

 

404,531

 

 

Open

 

 

 

2,240,451

 

5.98

%

26,750

 

 

 

1,923,115

 

 

 

 

 

Secured fixed rate debt - Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

609 Partners, LLC

 

63,891

 

5.00

%

 

Jul-14

 

63,891

 

 

Open

 

 

 

63,891

 

5.00

%

 

 

 

63,891

 

 

 

 

 

Unsecured fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Unsecured Line of Credit

 

60,000

 

5.26

%

 

Jun-11

 

60,000

 

Jun-12

 

Open

 

Junior Subordinated Deferrable Interest Debentures

 

100,000

 

5.61

%

 

Jun-15

 

100,000

 

 

 

Unsecured Note

 

123,607

 

5.15

%

 

Jan-11

 

123,607

 

 

Open

 

Unsecured Note

 

150,000

 

5.88

%

 

Aug-14

 

150,000

 

 

Open

 

Unsecured Note

 

274,710

 

6.00

%

 

Mar-16

 

275,000

 

 

Open

 

Convertible Note

 

135,336

 

4.00

%

 

Jun-25

(1)

138,148

 

 

Jun-10

 

Convertible Note (net)

 

189,393

 

3.00

%

 

Mar-27

(2)

202,105

 

 

Apr-12

 

 

 

1,033,046

 

4.99

%

 

 

 

1,048,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Rate Debt/Wtd Avg

 

3,337,388

 

5.65

%

26,750

 

 

 

3,035,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured floating rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

180-182 Broadway (Libor + 225 bps)

 

22,436

 

2.66

%

 

Feb-11

 

22,436

 

 

Open

 

28 W 44th St (Libor + 201 bps)

 

124,179

 

3.17

%

1,374

 

Aug-13

 

116,922

 

 

Open

 

1 Landmark Square (Libor + 185bps)

 

119,128

 

2.18

%

 

Feb-10

 

119,128

 

Feb-12

 

Open

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

265,743

 

2.68

%

1,374

 

 

 

258,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured floating rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Unsecured Line of Credit (Libor + 90 bps)

 

1,359,500

 

1.32

%

 

Jun-11

 

1,359,500

 

Jun-12

 

Open

 

 

 

1,359,500

 

1.32

%

 

 

 

1,359,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Floating Rate Debt/Wtd Avg

 

1,625,243

 

1.54

%

1,374

 

 

 

1,617,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt/Wtd Avg - Consolidated

 

4,962,631

 

4.31

%

28,124

 

 

 

4,653,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt/Wtd Avg - Joint Venture

 

1,888,898

 

4.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Balance & Interest Rate with SLG JV Debt

 

7,005,468

 

4.28

%

 

 

 

 

 

 

 

 

 

 

 


(1) Notes can be put to SLG, at the option of the holder, on June 15, 2010.

(2) Notes can be put to SLG, at the option of the holder, on March 30, 2012.

 

Senior Unsecured Line of Credit Covenant Ratios

 

 

 

Actual

 

Required

 

Total Debt / Total Assets

 

42.2

%

Less than 60%

 

Secured Debt / Total Assets

 

21.5

%

Less than 50%

 

Line Fixed Charge Coverage

 

2.68

 

Greater than 1.50

 

Unsecured Debt / Unencumbered Assets

 

42.1

%

Less than 60%

 

Unencumbered Interest Coverage

 

3.07

 

Greater than 1.75

 

Maximum FFO Payout

 

42.3

%

Less than 95%

 

 

27



 

DEBT SUMMARY SCHEDULE - Joint Venture

 

Unaudited

($000’s omitted)

 

 

 

 

 

 

 

 

 

2009

 

 

 

 

 

As-Of

 

 

 

 

 

Principal Outstanding - 6/30/09

 

 

 

Principal

 

Maturity

 

Due at

 

Right

 

Earliest

 

 

 

Gross Principal

 

SLG Share

 

Coupon

 

Repayment

 

Date

 

Maturity

 

Extension

 

Prepayment

 

Fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

800 Third Avenue

 

20,910

 

8,981

 

6.00

%

 

Jul-17

 

8,981

 

 

Open

 

1604-1610 Broadway

 

27,000

 

12,150

 

5.66

%

 

Apr-12

 

11,723

 

 

Open

 

1221 Avenue of the Americas

 

65,000

 

29,250

 

5.51

%

 

Dec-10

 

29,250

 

 

Open

 

Jericho Plaza

 

163,750

 

33,176

 

5.65

%

 

May-17

 

33,176

 

 

Open

 

21-25 West 34th Street

 

100,000

 

50,000

 

5.75

%

 

Dec-16

 

50,000

 

 

Open

 

100 Park Avenue

 

175,000

 

87,325

 

6.52

%

 

Nov-15

 

81,873

 

 

Open

 

One Court Square

 

315,000

 

94,500

 

4.91

%

 

Jun-15

 

94,500

 

 

Open

 

2 Herald Square

 

191,250

 

105,188

 

5.36

%

 

Apr-17

 

105,188

 

 

Open

 

1745 Broadway

 

340,000

 

109,650

 

5.68

%

 

Jan-17

 

109,650

 

 

Dec-09

 

885 Third Avenue

 

267,650

 

147,208

 

6.26

%

 

Jul-17

 

147,208

 

 

Oct-09

 

388/390 Greenwich Street

 

1,122,379

 

567,901

 

5.19

%

 

Dec-17

 

567,901

 

 

Dec-09

 

Total Fixed Rate Debt/Wtd Avg

 

2,787,939

 

1,245,328

 

5.50

%

 

 

 

1,239,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

388/390 Greenwich Street (Libor + 115bps)

 

16,000

 

8,096

 

1.54

%

 

Dec-17

 

8,096

 

 

Dec-09

 

379 West Broadway (Libor + 165bps)

 

20,991

 

9,446

 

2.06

%

 

Jan-10

 

9,446

 

 

Open

 

1551/1555 Broadway (Libor + 200 bps)

 

120,271

 

12,027

 

2.42

%

 

Oct-09

 

12,027

 

 

Open

 

29 West 34th Street (Libor + 200bps)

 

42,354

 

21,177

 

2.41

%

200

 

May-11

 

20,808

 

 

Open

 

Meadows (Libor + 135bps)

 

84,527

 

21,131

 

1.72

%

 

Sep-12

 

20,710

 

 

Open

 

16 Court St (Libor + 160 bps)

 

86,615

 

30,315

 

2.01

%

 

Oct-10

 

30,315

 

 

Open

 

1221 Avenue of the Americas (Libor + 75bps)

 

105,000

 

47,250

 

1.12

%

 

Dec-10

 

47,250

 

 

Open

 

521 Fifth Avenue (Libor + 100bps)

 

140,000

 

70,140

 

1.44

%

 

Apr-11

 

70,140

 

 

Open

 

717 Fifth Avenue (Libor + 275 bps)

 

245,000

 

80,238

 

5.25

%

 

Sep-11

 

80,238

 

 

 

Open

 

1515 Broadway (Libor + 90 bps)

 

625,000

 

343,750

 

1.27

%

 

Nov-09

 

343,750

 

Nov-10

 

Open

 

Total Floating Rate Debt/Wtd Avg

 

1,485,758

 

643,570

 

1.90

%

200

 

 

 

642,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Joint Venture Debt/Wtd Avg

 

4,273,697

 

1,888,898

 

4.27

%

200

 

 

 

1,882,229

 

 

 

 

 

 

28



 

SUMMARY OF GROUND LEASE ARRANGEMENTS

 

Consolidated Statement (REIT)

($000’s omitted)

 

 

 

2009 Scheduled

 

2010 Scheduled

 

2011 Scheduled

 

2012 Scheduled

 

Deferred Land

 

Year of

 

Property

 

Cash Payment

 

Cash Payment

 

Cash Payment

 

Cash Payment

 

Lease Obligations (1)

 

Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

673 First Avenue

 

3,010

 

3,010

 

3,010

 

3,010

 

17,473

 

2037

 

420 Lexington Avenue (2)

 

11,740

 

11,473

 

11,473

 

11,473

 

 

2029

(3)

711 Third Avenue (2) (4)

 

1,550

 

1,550

 

750

 

 

358

 

2032

 

461 Fifth Avenue (2)

 

2,100

 

2,100

 

2,100

 

2,100

 

 

2027

(5)

625 Madison Avenue (2)

 

4,613

 

4,613

 

4,613

 

4,613

 

 

2022

(6)

1185 Avenue of the Americas (2)

 

8,674

 

8,233

 

6,909

 

6,909

 

 

2043

 

1055 Washing Blvd, Stamford (2)

 

615

 

615

 

615

 

615

 

 

2090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

32,302

 

31,594

 

29,470

 

28,720

 

17,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Lease

 

 

 

 

 

 

 

 

 

 

 

 

 

673 First Avenue

 

1,416

 

1,451

 

1,555

 

1,555

 

16,791

 

2037

 

 


(1) Per the balance sheet at June 30, 2009.

(2) These ground leases are classified as operating leases and, therefore, do not appear on the balance sheet as an obligation.

(3) Subject to renewal at the Company’s option through 2080.

(4) Excludes portion payable to SL Green as owner of 50% leasehold.

(5) The Company has an option to purchase the ground lease for a fixed price on a specific date.

(6) Subject to renewal at the Company’s option through 2054.

 

29



 

STRUCTURED FINANCE

 

($000’s omitted) 

 

 

 

 

Assets

 

Weighted Average

 

Weighted Average

 

Current

 

LIBOR

 

 

 

Outstanding

 

Assets During Quarter

 

Yield During Quarter

 

Yield

 

Rate (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

3/31/2008

 

$

776,488

 

$

766,598

 

10.15

%

10.63

%

2.70

%

 

 

 

 

 

 

 

 

 

 

 

 

Originations/Accretion (1)

 

$

72,193

 

 

 

 

 

 

 

 

 

Preferred Equity

 

$

0

 

 

 

 

 

 

 

 

 

Redemptions/Sales/Amortization/Reserves

 

$

(8,855

)

 

 

 

 

 

 

 

 

6/30/2008

 

$

839,826

 

$

823,223

 

9.71

%

9.92

%

2.46

%

 

 

 

 

 

 

 

 

 

 

 

 

Originations/Accretion (1)

 

$

107,690

 

 

 

 

 

 

 

 

 

Preferred Equity

 

$

542

 

 

 

 

 

 

 

 

 

Redemptions/Sales/Amortization/Reserves

 

$

(21,127

)

 

 

 

 

 

 

 

 

9/30/2008

 

$

926,931

 

$

921,658

 

10.58

%

10.28

%

3.93

%

 

 

 

 

 

 

 

 

 

 

 

 

Originations/Accretion (1)

 

$

7,296

 

 

 

 

 

 

 

 

 

Preferred Equity

 

$

1,028

 

 

 

 

 

 

 

 

 

Redemptions/Sales/Amortization/Reserves

 

$

(187,372

)

 

 

 

 

 

 

 

 

12/31/2008

 

$

747,883

 

$

755,516

 

10.34

%

10.14

%

0.44

%

 

 

 

 

 

 

 

 

 

 

 

 

Originations/Accretion (1)

 

$

6,151

 

 

 

 

 

 

 

 

 

Preferred Equity

 

$

910

 

 

 

 

 

 

 

 

 

Redemptions/Sales/Amortization/Reserves

 

$

(63,561

)

 

 

 

 

 

 

 

 

3/31/2009

 

$

691,383

 

$

688,985

 

8.48

%

8.74

%

0.50

%

 

 

 

 

 

 

 

 

 

 

 

 

Originations/Accretion (1)

 

$

29,468

 

 

 

 

 

 

 

 

 

Preferred Equity

 

$

0

 

 

 

 

 

 

 

 

 

Redemptions/Sales/Amortization/Reserves

 

$

(112,541

)

 

 

 

 

 

 

 

 

6/30/2009 (2)

 

$

608,310

 

$

665,578

 

8.31

%

8.28

%

0.31

%

 


(1) Accretion includes original issue discounts and compounding investment income.

(2) Includes approximately $73.8 million of structured finance investments which are classified as held for sale.

(3) LIBOR rate is as of quarter end.

 

30



 

STRUCTURED FINANCE

 

($000’s omitted)

 

 

 

 

 

 

 

 

Weighted Average

 

Weighted Average

 

Current

 

Type of Investment

 

Quarter End Balance (1)

 

Senior Financing

 

Exposure PSF

 

Yield During Quarter

 

Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

New York City

 

 

 

 

 

 

 

 

 

 

 

Senior Mortgage Debt

 

$

18,807

 

$

 

$

220

 

7.29

%

7.21

%

 

 

 

 

 

 

 

 

 

 

 

 

Junior Mortgage Participation

 

$

51,024

 

$

544,250

 

$

321

 

9.43

%

9.30

%

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Debt

 

$

394,981

 

$

7,072,712

 

$

2,082

(3)

9.87

%

9.88

%

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

$

37,750

 

$

212,150

 

$

108

 

0.00

%

0.00

%

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Senior Mortgage Debt

 

$

37,092

 

$

 

$

96

 

5.46

%

5.35

%

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Debt

 

$

40,478

 

$

3,149,029

 

$

174

 

4.84

%

4.73

%

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

$

28,178

 

$

2,438,000

 

$

159

 

4.91

%

4.87

%

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of 6/30/09

 

$

608,310

 

$

13,416,141

 

$

1,445

(3)

8.31

%

8.28

%

 

Current Maturity Profile (2)

 

 


(1) Most investments are indexed to LIBOR and are prepayable at dates prior to maturity subject to certain prepayment penalties or fees.

(2) The weighted maturity is 4.0 years.

(3) Excluding the mezzanine loan on the retail portion of a New York City property, the weighted average exposure for New York City Mezzanine Debt and the total structured finance portfolio are $767 psf and $535 psf, respectively.

 

31



 

STRUCTURED FINANCE

 

10 Largest Investments

 

($000’s omitted) 

 

 

 

 

 

 

 

 

 

 

Senior

 

 

 

Current

 

Investment Type

 

Book Value (1)

 

Location

 

Collateral Type

 

Financing

 

Last $ PSF

 

Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Loan

 

$

100,957

 

New York City

 

Retail

 

$

325,000

 

$

5,864

 

15.07

%

Mezzanine Loan

 

80,099

 

New York City

 

Office

 

1,139,000

 

$

1,106

 

10.76

%

Mezzanine Loan

 

58,439

 

New York City

 

Office

 

205,000

 

$

382

 

8.44

%

Mortgage and Mezzanine

 

48,060

 

Various

 

Office

 

2,217,170

 

$

87

 

5.74

%

Mezzanine Loan

 

40,800

 

New York City

 

Office

 

221,549

 

$

229

 

7.76

%

Mezzanine Loan

 

38,769

 

New York City

 

Office / Retail

 

165,000

 

$

1,709

 

9.56

%

Preferred Equity

 

37,750

 

New York City

 

Office

 

212,150

 

$

108

 

0.00

%

Mezzanine Loan

 

25,472

 

Los Angeles

 

Office

 

931,860

 

$

220

 

3.99

%

Mezzanine Loan

 

25,000

 

New York City

 

Office

 

200,000

 

$

440

 

8.98

%

Mezzanine Loans

 

24,001

 

New York City

 

Office

 

315,218

 

$

678

 

0.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Total

 

$

479,347

 

 

 

 

 

$

5,931,946

 

 

 

8.69

%

 


(1) Net of unamortized fees, discounts, and reserves

 

32



 

SELECTED PROPERTY DATA


Manhattan Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# of

 

Usable

 

% of Total

 

Occupancy (%)

 

Annualized

 

Annualized Rent

 

Total

 

Properties

 

SubMarket

 

Ownership

 

Bldgs

 

Sq. Feet

 

Sq. Feet

 

Jun-09

 

Mar-09

 

Dec-08

 

Sep-08

 

Jun-08

 

Rent ($’s)

 

100%

 

SLG

 

Tenants

 

 

 

 

 

 

 

 

 

 

 

%

 

%

 

%

 

%

 

%

 

%

 

$

 

%

 

%

 

 

 

CONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19 West 44th Street

 

Midtown

 

Fee Interest

 

1

 

292,000

 

1

 

98.0

 

97.2

 

97.9

 

99.5

 

100.0

 

13,310,268

 

2

 

1

 

60

 

120 West 45th Street

 

Midtown

 

Fee Interest

 

1

 

440,000

 

1

 

99.0

 

99.0

 

99.0

 

99.0

 

98.6

 

25,437,624

 

4

 

2

 

26

 

220 East 42nd Street

 

Grand Central

 

Fee Interest

 

1

 

1,135,000

 

4

 

99.6

 

99.4

 

99.7

 

99.7

 

99.3

 

47,555,136

 

7

 

5

 

32

 

28 West 44th Street

 

Midtown

 

Fee Interest

 

1

 

359,000

 

1

 

97.3

 

98.6

 

99.6

 

99.4

 

98.1

 

15,747,684

 

2

 

2

 

67

 

317 Madison Avenue

 

Grand Central

 

Fee Interest

 

1

 

450,000

 

1

 

90.5

 

91.8

 

92.0

 

89.6

 

89.6

 

20,521,560

 

3

 

2

 

84

 

420 Lexington Ave (Graybar)

 

Grand Central North

 

Operating Sublease

 

1

 

1,188,000

 

4

 

96.8

 

96.7

 

96.8

 

97.0

 

96.6

 

64,981,891

 

9

 

6

 

219

 

461 Fifth Avenue(3)

 

Midtown

 

Leasehold Interest

 

1

 

200,000

 

1

 

98.8

 

95.4

 

95.4

 

95.4

 

93.6

 

14,826,108

 

2

 

1

 

19

 

485 Lexington Avenue

 

Grand Central North

 

Fee Interest

 

1

 

921,000

 

3

 

96.8

 

92.6

 

98.5

 

100.0

 

99.9

 

48,097,596

 

7

 

5

 

21

 

555 West 57th Street

 

Midtown West

 

Fee Interest

 

1

 

941,000

 

3

 

99.1

 

99.1

 

99.1

 

99.3

 

99.6

 

30,545,652

 

4

 

3

 

14

 

609 Fifth Avenue

 

Rockefeller Center

 

Fee Interest

 

1

 

160,000

 

1

 

99.1

 

99.1

 

100.0

 

100.0

 

100.0

 

13,040,616

 

2

 

1

 

18

 

625 Madison Avenue

 

Plaza District

 

Leasehold Interest

 

1

 

563,000

 

2

 

97.3

 

97.6

 

97.6

 

97.6

 

97.6

 

40,147,608

 

6

 

4

 

27

 

673 First Avenue

 

Grand Central South

 

Leasehold Interest

 

1

 

422,000

 

1

 

99.7

 

99.7

 

99.7

 

99.7

 

99.8

 

16,749,168

 

2

 

2

 

9

 

711 Third Avenue(1)

 

Grand Central North

 

Operating Sublease

 

1

 

524,000

 

2

 

92.1

 

93.3

 

93.3

 

93.3

 

93.3

 

25,240,368

 

4

 

2

 

16

 

750 Third Avenue

 

Grand Central North

 

Fee Interest

 

1

 

780,000

 

3

 

89.2

 

97.2

 

97.2

 

95.8

 

99.0

 

35,670,708

 

5

 

3

 

26

 

810 Seventh Avenue

 

Times Square

 

Fee Interest

 

1

 

692,000

 

2

 

87.9

 

87.6

 

84.3

 

93.0

 

92.1

 

37,417,056

 

5

 

4

 

36

 

919 Third Avenue(2)

 

Grand Central North

 

Fee Interest

 

1

 

1,454,000

 

5

 

99.9

 

99.9

 

99.9

 

99.9

 

99.9

 

81,091,884

 

 

 

4

 

15

 

1185 Avenue of the Americas

 

Rockefeller Center

 

Leasehold Interest

 

1

 

1,062,000

 

4

 

98.9

 

98.9

 

98.9

 

98.9

 

97.9

 

71,165,412

 

10

 

6

 

20

 

1350 Avenue of the Americas

 

Rockefeller Center

 

Fee Interest

 

1

 

562,000

 

2

 

97.2

 

94.6

 

96.0

 

95.1

 

93.9

 

32,278,152

 

4

 

3

 

41

 

1 Madison Avenue

 

Park Avenue South

 

Fee Interest

 

1

 

1,176,900

 

4

 

99.8

 

99.8

 

99.8

 

99.8

 

99.8

 

61,673,856

 

9

 

6

 

3

 

331 Madison Avenue

 

Grand Central

 

Fee Interest

 

1

 

114,900

 

0

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

4,853,052

 

1

 

0

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted Average

 

 

 

20

 

13,436,800

 

45

 

97.0

 

97.1

 

97.5

 

97.9

 

97.8

 

$

700,351,399

 

86

 

64

 

772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

333 West 34th Street

 

Penn Station

 

Fee Interest

 

1

 

345,400

 

1

 

95.5

 

100.0

 

100.0

 

100.0

 

100.0

 

8,419,674

 

1

 

1

 

1

 

Subtotal / Weighted Average

 

1

 

345,400

 

1

 

95.5

 

100.0

 

100.0

 

100.0

 

100.0

 

$

8,419,674

 

1

 

1

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average Manhattan Consolidated Properties

 

21

 

13,782,200

 

46

 

97.0

 

97.2

 

97.5

 

97.9

 

97.9

 

$

708,771,073

 

87

 

64

 

773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNCONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100 Park Avenue - 50%

 

Grand Central South

 

Fee Interest

 

1

 

834,000

 

3

 

81.5

 

75.7

 

81.1

 

80.4

 

67.0

 

40,546,237

 

 

 

2

 

32

 

521 Fifth Avenue - 50.1%(3)

 

Grand Central

 

Leasehold Interest

 

1

 

460,000

 

2

 

88.3

 

89.6

 

94.4

 

93.1

 

97.9

 

19,581,648

 

 

 

1

 

43

 

800 Third Avenue - 42.95%

 

Grand Central North

 

Fee Interest

 

1

 

526,000

 

2

 

98.7

 

98.7

 

98.7

 

98.7

 

98.5

 

31,148,832

 

 

 

1

 

25

 

1221 Avenue of the Americas - 45%

 

Rockefeller Center

 

Fee Interest

 

1

 

2,550,000

 

8

 

93.7

 

93.7

 

93.5

 

92.9

 

93.0

 

151,958,244

 

 

 

7

 

21

 

1515 Broadway - 68.45%

 

Times Square

 

Fee Interest

 

1

 

1,750,000

 

6

 

94.5

 

95.4

 

95.4

 

91.8

 

99.0

 

88,550,256

 

 

 

6

 

9

 

388 & 390 Greenwich Street - 50.6%

 

Downtown

 

Fee Interest

 

2

 

2,635,000

 

9

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

102,945,936

 

 

 

5

 

1

 

1745 Broadway - 32.3%

 

Midtown

 

Fee Interest

 

1

 

674,000

 

2

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

36,558,780

 

 

 

1

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average Unconsolidated Properties

 

8

 

9,429,000

 

31

 

95.0

 

94.7

 

95.4

 

94.4

 

94.8

 

$

471,289,933

 

 

 

23

 

132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manhattan Grand Total / Weighted Average

 

29

 

23,211,200

 

77

 

96.2

 

96.2

 

96.7

 

96.5

 

96.7

 

$

 1,180,061,006

 

 

 

 

 

905

 

Manhattan Grand Total - SLG share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

905,376,364

 

 

 

87

 

 

 

Manhattan Same Store Occupancy % - Combined

 

 

 

22,865,800

 

99

 

96.2

 

96.1

 

96.6

 

96.5

 

96.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61

 

30,160,900

 

100

 

94.8

 

94.8

 

95.2

 

95.3

 

95.4

 

$

 1,375,659,558

 

 

 

 

 

1,383

 

Portfolio Grand Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Grand Total - SLG Share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 1,027,962,170

 

 

 

100

 

 

 

 


(1) Including Ownership of 50% in Building Fee.

(2) SL Green holds a 51% interest in this consolidated joint venture asset.

(3) SL Green holds an option to acquire the fee interest on this building.

 

33



 

SELECTED PROPERTY DATA


Suburban Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# of

 

Usable

 

% of Total

 

Occupancy (%)

 

Annualized

 

Annualized Rent

 

Total

 

Properties

 

SubMarket

 

Ownership

 

Bldgs

 

Sq. Feet

 

Sq. Feet

 

Jun-09

 

Mar-09

 

Dec-08

 

Sep-08

 

Jun-08

 

Rent ($’s)

 

100%

 

SLG

 

Tenants

 

 

 

 

 

 

 

 

 

 

 

%

 

%

 

%

 

%

 

%

 

%

 

$

 

%

 

%

 

 

 

CONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store” Westchester, NY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1100 King Street

 

Rye Brook, Westchester

 

Fee Interest

 

6

 

540,000

 

9

 

89.3

 

89.3

 

89.3

 

90.4

 

90.7

 

14,021,172

 

2

 

2

 

31

 

520 White Plains Road

 

Tarrytown, Westchester

 

Fee Interest

 

1

 

180,000

 

3

 

93.2

 

92.4

 

92.4

 

92.4

 

87.1

 

4,225,032

 

1

 

0

 

9

 

115-117 Stevens Avenue

 

Valhalla, Westchester

 

Fee Interest

 

1

 

178,000

 

3

 

67.0

 

67.5

 

67.5

 

65.9

 

65.9

 

2,361,948

 

0

 

0

 

13

 

100 Summit Lake Drive

 

Valhalla, Westchester

 

Fee Interest

 

1

 

250,000

 

4

 

78.4

 

78.4

 

78.4

 

78.4

 

78.4

 

5,792,172

 

1

 

1

 

7

 

200 Summit Lake Drive

 

Valhalla, Westchester

 

Fee Interest

 

1

 

245,000

 

4

 

94.6

 

95.7

 

95.7

 

95.7

 

95.7

 

6,835,920

 

1

 

1

 

9

 

500 Summit Lake Drive

 

Valhalla, Westchester

 

Fee Interest

 

1

 

228,000

 

3

 

82.1

 

82.1

 

81.0

 

81.0

 

78.4

 

4,836,384

 

1

 

1

 

4

 

140 Grand Street

 

White Plains, Westchester

 

Fee Interest

 

1

 

130,100

 

2

 

92.7

 

92.7

 

91.0

 

85.2

 

80.0

 

4,066,920

 

1

 

1

 

10

 

360 Hamilton Avenue

 

White Plains, Westchester

 

Fee Interest

 

1

 

384,000

 

6

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

13,261,008

 

2

 

2

 

14

 

399 Knollwood Road

 

White Plains, Westchester

 

Fee Interest

 

1

 

145,000

 

2

 

92.8

 

93.5

 

97.3

 

96.3

 

96.3

 

3,416,448

 

0

 

0

 

42

 

Westchester, NY Subtotal/Weighted Average

 

14

 

2,280,100

 

33

 

88.7

 

88.9

 

88.9

 

88.7

 

87.8

 

58,817,004

 

8

 

7

 

139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store” Connecticut

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

6

 

826,000

 

12

 

83.9

 

83.3

 

84.4

 

86.2

 

86.6

 

19,256,640

 

3

 

2

 

102

 

680 Washington Boulevard (1)

 

Stamford, Connecticut

 

Fee Interest

 

1

 

133,000

 

2

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

3,558,552

 

 

 

0

 

4

 

750 Washington Boulevard (1)

 

Stamford, Connecticut

 

Fee Interest

 

1

 

192,000

 

3

 

97.4

 

97.4

 

98.5

 

98.5

 

95.8

 

6,504,264

 

 

 

0

 

8

 

1055 Washington Boulevard

 

Stamford, Connecticut

 

Leasehold Interest

 

1

 

182,000

 

4

 

84.4

 

84.9

 

84.9

 

88.3

 

91.1

 

5,295,048

 

1

 

1

 

19

 

300 Main Street

 

Stamford, Connecticut

 

Fee Interest

 

1

 

130,000

 

2

 

95.3

 

95.3

 

94.6

 

95.3

 

95.3

 

2,070,744

 

0

 

0

 

21

 

1010 Washington Boulevard

 

Stamford, Connecticut

 

Fee Interest

 

1

 

143,400

 

2

 

65.6

 

71.3

 

67.3

 

95.1

 

94.5

 

2,234,316

 

0

 

0

 

18

 

500 West Putnam Avenue

 

Greenwich, Connecticut

 

Fee Interest

 

1

 

121,500

 

2

 

83.2

 

83.2

 

83.2

 

88.7

 

88.7

 

3,828,000

 

1

 

0

 

10

 

Connecticut Subtotal/Weighted Average

 

12

 

1,727,900

 

25

 

86.0

 

86.2

 

86.5

 

90.4

 

90.6

 

42,747,564

 

5

 

3

 

182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average Consolidated Properties

 

26

 

4,008,000

 

58

 

87.5

 

87.8

 

87.9

 

89.4

 

89.0

 

$

101,564,568

 

13

 

10

 

321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNCONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One Court Square - 30%

 

Long Island City, New York

 

Fee Interest

 

1

 

1,402,000

 

20

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

51,363,840

 

 

 

1

 

1

 

The Meadows - 25%

 

Rutherford, New Jersey

 

Fee Interest

 

2

 

582,100

 

8

 

82.6

 

83.0

 

83.3

 

85.3

 

85.2

 

12,292,624

 

 

 

0

 

58

 

16 Court Street - 35%

 

Brooklyn, NY

 

Fee Interest

 

1

 

317,600

 

5

 

81.5

 

81.1

 

77.8

 

79.2

 

82.3

 

8,922,828

 

 

 

0

 

62

 

Jericho Plaza - 20.26%

 

Jericho, New York

 

Fee Interest

 

2

 

640,000

 

9

 

97.7

 

97.6

 

97.6

 

96.3

 

96.3

 

21,454,692

 

 

 

0

 

36

 

Total / Weighted Average Unconsolidated Properties

 

6

 

2,941,700

 

42

 

94.1

 

94.1

 

93.8

 

94.1

 

94.4

 

$

94,033,984

 

 

 

3

 

157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suburban Grand Total / Weighted Average

 

32

 

6,949,700

 

23

 

90.3

 

90.4

 

90.4

 

91.4

 

91.3

 

$

195,598,552

 

 

 

 

 

478

 

Suburban Grand Total - SLG share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

122,585,807

 

 

 

13

 

 

 

Suburban Same Store Occupancy % - Combined

 

 

 

6,949,700

 

100

 

90.3

 

90.4

 

90.4

 

91.4

 

91.3

 

 

 

 

 

 

 

 

 

 


(1) SL Green holds a 51% interest in this consolidated joint venture asset.

(2) SL Green holds an option to acquire the fee interest on this property.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Total

 

 

 

 

 

RETAIL, DEVELOPMENT & LAND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value

 

 

 

 

 

125 Chubb Way

 

Lyndhurst, NJ

 

Fee Interest

 

1

 

278,000

 

35

 

 

 

 

 

 

$

 

$

37,844,813

 

0

 

0

 

150 Grand Street

 

White Plains, NY

 

Fee Interest

 

1

 

85,000

 

11

 

17.5

 

17.5

 

17.5

 

17.5

 

20.1

 

387,720

 

13,756,522

 

1

 

3

 

141 Fifth Avenue - 50%

 

Flat Iron

 

Fee Interest

 

1

 

21,500

 

3

 

68.5

 

100.0

 

100.0

 

100.0

 

100.0

 

1,656,456

 

17,601,303

 

3

 

2

 

1551-1555 Broadway - 10%

 

Times Square

 

Fee Interest

 

1

 

25,600

 

3

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

15,000,000

 

137,097,842

 

6

 

1

 

1604 Broadway - 63%

 

Times Square

 

Leasehold Interest

 

1

 

29,876

 

4

 

23.7

 

23.7

 

100.0

 

100.0

 

100.0

 

2,292,336

 

7,495,600

 

5

 

2

 

180-182 Broadway - 50%

 

Cast Iron/Soho

 

Fee Interest

 

2

 

70,580

 

9

 

51.0

 

54.8

 

66.8

 

82.5

 

83.8

 

1,110,108

 

46,368,112

 

2

 

13

 

21-25 West 34th Street - 50%

 

Herald Square/Penn Station

 

Fee Interest

 

1

 

30,100

 

4

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

5,875,128

 

22,832,265

 

11

 

1

 

27-29 West 34th Street - 50%

 

Herald Square/Penn Station

 

Fee Interest

 

1

 

41,000

 

5

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

N/A

 

42,689,350

 

N/A

 

N/A

 

379 West Broadway - 45% (2)

 

Cast Iron/Soho

 

Leasehold Interest

 

1

 

62,006

 

8

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

3,773,736

 

22,027,120

 

6

 

5

 

717 Fifth Avenue - 32.75%

 

Midtown/Plaza District

 

Fee Interest

 

1

 

119,550

 

15

 

75.8

 

77.7

 

79.1

 

79.1

 

87.6

 

19,284,396

 

278,616,378

 

23

 

7

 

7 Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

1

 

36,800

 

5

 

10.8

 

10.8

 

10.8

 

10.8

 

10.8

 

258,696

 

9,960,722

 

1

 

1

 

2 Herald Square - 55%

 

Herald Square/Penn Station

 

Fee Interest

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

9,000,000

 

225,597,988

 

18

 

1

 

885 Third Avenue - 55%

 

Midtown/Plaza District

 

Fee Interest

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

11,095,000

 

317,313,391

 

23

 

1

 

Total / Weighted Average Retail/Development Properties

 

12

 

800,012

 

100

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

$

69,733,576

 

$

1,179,201,406

 

100

 

37

 

 

34



 

LARGEST TENANTS BY SQUARE FEET LEASED

 

Manhattan and Suburban Properties

 

Wholly Owned Portfolio + Allocated JV Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

% of

 

SLG Share of

 

SLG Share of

 

 

 

 

 

 

 

Lease

 

Leased

 

Annualized

 

PSF

 

Annualized

 

Annualized

 

Annualized

 

Credit

 

Tenant Name

 

Property

 

Expiration

 

Square Feet

 

Rent ($)

 

Annualized

 

Rent

 

Rent($)

 

Rent

 

Rating (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citigroup, N.A.

 

388 & 390 Greenwich Street, 485 Lexington Avenue, 750 Third Avenue, 800 Third Avenue, 333 West 34th Street, 750 Washington Blvd & Court Square

 

Various

 

4,637,773

 

$

182,104,758

(1)

$

39.27

 

13.2

%

93,073,752

 

9.1

%

A-1

 

Viacom International, Inc.

 

1515 Broadway

 

2009, 2015 & 2020

 

1,287,610

 

70,638,132

 

$

54.86

 

5.1

%

48,351,801

 

4.7

%

BBB

 

Credit Suisse Securities (USA), Inc.

 

1 Madison Avenue

 

2020

 

1,138,143

 

60,004,128

 

$

52.72

 

4.4

%

60,004,128

 

5.8

%

A+

 

Morgan Stanley & Co. Inc.

 

1221 Ave.of the Americas, 2 Jericho Plaza & 4 Landmark Square

 

Various

 

661,644

 

46,359,252

 

$

70.07

 

3.4

%

20,763,116

 

2.0

%

A-1

 

Random House, Inc.

 

1745 Broadway

 

2018

 

644,598

 

36,558,780

 

$

56.72

 

2.7

%

11,793,862

 

1.1

%

BBB

 

Debevoise & Plimpton, LLP

 

919 Third Avenue

 

2021

 

586,528

 

35,930,784

 

$

61.26

 

2.6

%

18,324,700

 

1.8

%

 

 

Omnicom Group, Inc.

 

220 East 42nd Street & 420 Lexington Avenue

 

2009, 2010, 2011 & 2017

 

506,578

 

19,624,620

 

$

38.74

 

1.4

%

19,624,620

 

1.9

%

A-

 

Societe Generale

 

1221 Ave.of the Americas

 

Various

 

486,663

 

28,950,936

 

$

59.49

 

2.1

%

13,027,921

 

1.3

%

A+

 

The McGraw Hill Companies, Inc.

 

1221 Ave.of the Americas

 

Various

 

420,329

 

22,745,664

 

$

54.11

 

1.7

%

10,235,549

 

1.0

%

A

 

Advance Magazine Group, Fairchild Publications

 

750 Third Avenue & 485 Lexington Avenue

 

2021

 

342,720

 

13,340,172

 

$

38.92

 

1.0

%

13,340,172

 

1.3

%

 

 

Verizon

 

120 West 45th Street, 1100 King Street Bldgs 1& 2, 1 Landmark Square, 2 Landmark Square & 500 Summit Lake Drive

 

Various

 

315,618

 

8,946,624

 

$

28.35

 

0.7

%

8,946,624

 

0.9

%

A

 

C.B.S. Broadcasting, Inc.

 

555 West 57th Street

 

2013 & 2017

 

286,037

 

10,382,496

 

$

36.30

 

0.8

%

10,382,496

 

1.0

%

BBB-

 

Polo Ralph Lauren Corporation

 

625 Madison Avenue

 

2019

 

269,269

 

15,462,000

 

$

57.42

 

1.1

%

15,462,000

 

1.5

%

BBB+

 

Schulte, Roth & Zabel LLP

 

919 Third Avenue

 

2011 & 2021

 

263,186

 

14,419,068

 

$

54.79

 

1.0

%

7,353,725

 

0.7

%

 

 

New York Presbyterian Hospital

 

555 West 57th Street & 673 First Avenue

 

2009 & 2021

 

262,448

 

9,489,396

 

$

36.16

 

0.7

%

9,489,396

 

0.9

%

 

 

The Travelers Indemnity Company

 

485 Lexington Avenue & 2 Jericho Plaza

 

2010, 2012 & 2016

 

250,857

 

11,913,456

 

$

47.49

 

0.9

%

10,984,839

 

1.1

%

AA-

 

The City University of New York - CUNY

 

555 West 57th Street & 28 West 44th Street

 

2010, 2011, 2015 & 2016

 

229,044

 

8,398,812

 

$

36.67

 

0.6

%

8,398,812

 

0.8

%

 

 

BMW of Manhattan

 

555 West 57th Street

 

2012

 

227,782

 

4,916,652

 

$

21.58

 

0.4

%

4,916,652

 

0.5

%

 

 

Vivendi Universal US Holdings

 

800 Third Avenue

 

2010

 

226,105

 

11,567,964

 

$

51.16

 

0.8

%

4,968,441

 

0.5

%

BBB

 

Sonnenschein, Nath & Rosenthal

 

1221 Ave.of the Americas

 

Various

 

191,825

 

12,592,692

 

$

65.65

 

0.9

%

5,666,711

 

0.6

%

 

 

D.E. Shaw and Company L.P.

 

120 West 45th Street

 

2011, 2013, 2015 & 2017

 

187,484

 

11,503,344

 

$

61.36

 

0.8

%

11,503,344

 

1.1

%

 

 

Amerada Hess Corp.

 

1185 Ave.of the Americas

 

2027

 

182,529

 

11,049,060

 

$

60.53

 

0.8

%

11,049,060

 

1.1

%

BBB-

 

Fuji Color Processing Inc.

 

200 Summit Lake Drive

 

2013

 

165,880

 

4,999,512

 

$

30.14

 

0.4

%

4,999,512

 

0.5

%

AA-

 

King & Spalding

 

1185 Ave.of the Americas

 

2025

 

159,858

 

9,417,600

 

$

58.91

 

0.7

%

9,417,600

 

0.9

%

 

 

National Hockey League

 

1185 Ave.of the Americas

 

2022

 

148,216

 

11,158,572

 

$

75.29

 

0.8

%

11,158,572

 

1.1

%

 

 

New York Hospitals Center/Mount Sinai

 

625 Madison Avenue & 673 First Avenue

 

2016, 2021 & 2026

 

146,917

 

5,971,608

 

$

40.65

 

0.4

%

5,971,608

 

0.6

%

 

 

Banque National De Paris

 

919 Third Avenue

 

2016

 

145,834

 

8,216,052

 

$

56.34

 

0.6

%

4,190,187

 

0.4

%

 

 

News America Incorporated

 

1185 Ave.of the Americas

 

2020

 

144,567

 

11,650,284

 

$

80.59

 

0.8

%

11,650,284

 

1.1

%

BBB+

 

Draft Worldwide

 

919 Third Avenue

 

2013

 

141,260

 

7,990,344

 

$

56.56

 

0.6

%

4,075,075

 

0.4

%

B+

 

Allen & Overy, LLP

 

1221 Ave.of the Americas

 

Various

 

136,945

 

12,236,460

 

$

89.35

 

0.9

%

5,506,407

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Total

 

 

 

 

 

14,794,247

 

$

718,539,222

(1)

$

48.57

 

52.2

%

$

474,630,966

 

46.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned Portfolio + Allocated JV Properties

 

 

 

30,160,900

 

$

1,375,659,558

(1)

$

45.61

 

 

 

$

1,027,962,170

 

 

 

 

 

 

 


(1) - Reflects the net rent of $39.07 PSF for the 388-390 Greenwich Street lease. If this lease were included on a gross basis, Citigroup’s total PSF Annualized rent would be $48.91.

Total PSF Annualized rent for the Largest Tenants would be $51.59 and Total PSF Annualized rent for the Wholly Owned Portfolio + Allocated JV properties would be $47.09.

(2) - 57% of Portfolio’s Largest Tenants have investment grade credit ratings. 35% of SLG Share of Annualized Rent is derived from these Tenants.

 

35



 

TENANT DIVERSIFICATION

 

Manhattan and Suburban Properties

 

Based on SLG Share of Base Rental Revenue

 

 

Based on SLG Share of Square Feet Leased

 

 

36



 

Leasing Activity - Manhattan Properties

Available Space

 

Activity

 

Building Address

 

# of Leases

 

Usable SF

 

Rentable SF

 

Rent/Rentable SF ($’s)(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Vacancy at 3/31/09

 

 

 

 

 

887,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space which became available during the Quarter (A):

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

317 Madison Avenue

 

3

 

9,798

 

10,964

 

$

53.73

 

 

 

750 Third Avenue

 

3

 

93,310

 

93,310

 

$

43.64

 

 

 

1515 Broadway

 

1

 

15,249

 

15,249

 

$

43.73

 

 

 

19 West 44th Street

 

2

 

1,479

 

1,523

 

$

38.16

 

 

 

28 West 44th Street

 

2

 

4,646

 

4,808

 

$

45.00

 

 

 

521 Fifth Avenue

 

1

 

5,822

 

5,822

 

$

69.55

 

 

 

711 Third Avenue

 

1

 

6,500

 

6,500

 

$

49.17

 

 

 

800 Third Avenue

 

1

 

1,783

 

1,783

 

$

61.03

 

 

 

810 Seventh Avenue

 

1

 

3,766

 

3,766

 

$

45.72

 

 

 

420 Lexington Avenue

 

6

 

7,796

 

8,783

 

$

50.27

 

 

 

333 West 34th Street

 

1

 

151,873

 

151,873

 

$

37.54

 

 

 

Total/Weighted Average

 

22

 

302,022

 

304,381

 

$

41.89

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

1221 Sixth Avenue

 

1

 

765

 

765

 

$

48.53

 

 

 

625 Madison Avenue

 

1

 

1,950

 

1,950

 

$

137.36

 

 

 

Total/Weighted Average

 

2

 

2,715

 

2,715

 

$

112.33

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

317 Madison Avenue

 

1

 

63

 

63

 

$

26.39

 

 

 

Total/Weighted Average

 

1

 

63

 

63

 

$

26.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Space became Available during the Quarter

 

 

 

 

 

 

 

 

 

 

 

Office

 

22

 

302,022

 

304,381

 

$

41.89

 

 

 

Retail

 

2

 

2,715

 

2,715

 

$

112.33

 

 

 

Storage

 

1

 

63

 

63

 

$

26.39

 

 

 

 

 

25

 

304,800

 

307,159

 

$

42.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Available Space

 

 

 

1,192,507

 

 

 

 

 

 


(1)  Escalated Rent is calculated as Total Annual Income less Electric Charges

(A) - Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants heldover.

 

37



 

Leasing Activity - Manhattan Properties

Leased Space

 

Activity

 

Building Address

 

# of Leases

 

Term
(Yrs)

 

Usable SF

 

Rentable SF

 

New Cash Rent
/ Rentable SF(1)

 

Prev. Escalated
Rent/ Rentable
SF(2)

 

TI / Rentable
SF

 

Free Rent #
of Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available Space as of 6/30/09

 

 

 

 

 

1,192,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

317 Madison Avenue

 

2

 

4.6

 

4,179

 

5,134

 

$

43.98

 

$

39.52

 

$

25.67

 

 

 

 

485 Lexington Avenue

 

1

 

10.5

 

38,756

 

38,756

 

$

58.00

 

$

42.59

 

$

37.50

 

6.0

 

 

 

750 Third Avenue

 

1

 

8.3

 

30,888

 

33,981

 

$

53.00

 

$

39.67

 

$

36.80

 

11.0

 

 

 

220 East 42nd Street

 

1

 

0.8

 

3,082

 

3,082

 

$

40.00

 

$

42.48

 

$

 

 

 

 

461 Fifth Avenue

 

1

 

4.3

 

6,516

 

6,933

 

$

61.50

 

$

100.17

 

$

106.74

 

2.0

 

 

 

100 Park Avenue

 

2

 

11.0

 

47,804

 

52,119

 

$

51.53

 

$

34.51

 

$

59.03

 

12.0

 

 

 

19 West 44th Street

 

4

 

2.2

 

3,981

 

4,431

 

$

39.57

 

$

44.29

 

$

6.28

 

0.3

 

 

 

800 Third Avenue

 

1

 

8.3

 

1,783

 

1,783

 

$

52.02

 

$

61.03

 

$

45.00

 

5.0

 

 

 

810 Seventh Avenue

 

1

 

5.0

 

5,716

 

5,908

 

$

50.00

 

$

 

$

15.91

 

2.0

 

 

 

1350 Avenue of the Americas

 

2

 

5.1

 

14,603

 

14,679

 

$

68.42

 

$

 

$

93.72

 

2.9

 

 

 

420 Lexington Avenue

 

6

 

4.8

 

7,345

 

9,117

 

$

44.04

 

$

44.28

 

$

9.94

 

1.6

 

 

 

333 West 34th Street

 

1

 

15.0

 

130,939

 

138,462

 

$

49.00

 

$

35.50

 

$

67.38

 

 

 

 

Total/Weighted Average

 

23

 

11.3

 

295,592

 

314,385

 

$

51.73

 

$

39.68

 

$

56.14

 

4.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

420 Lexington Avenue

 

1

 

10.0

 

1,467

 

1,562

 

$

150.00

 

$

213.27

 

$

 

6.0

 

 

 

Total/Weighted Average

 

1

 

10.0

 

1,467

 

1,562

 

$

150.00

 

$

213.27

 

$

 

6.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

461 Fifth Avenue

 

1

 

4.3

 

420

 

416

 

$

30.00

 

$

27.85

 

$

 

 

 

 

100 Park Avenue

 

1

 

10.9

 

313

 

313

 

$

20.00

 

$

 

$

 

12.0

 

 

 

420 Lexington Avenue

 

1

 

1.8

 

74

 

84

 

$

25.00

 

$

20.00

 

$

 

 

 

 

333 West 34th Street

 

1

 

15.0

 

5,539

 

5,834

 

$

35.00

 

$

29.00

 

$

 

 

 

 

Total/Weighted Average

 

4

 

14.0

 

6,346

 

6,647

 

$

33.85

 

$

28.80

 

$

 

0.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leased Space

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office (3)

 

23

 

11.3

 

295,592

 

314,385

 

$

51.73

 

$

39.68

 

$

56.14

 

4.2

 

 

 

Retail

 

1

 

10.0

 

1,467

 

1,562

 

$

150.00

 

$

213.27

 

$

 

6.0

 

 

 

Storage

 

4

 

14.0

 

6,346

 

6,647

 

$

33.85

 

$

28.80

 

$

 

0.6

 

 

 

Total

 

28

 

11.4

 

303,405

 

322,594

 

$

51.84

 

$

40.47

 

$

54.71

 

4.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Available Space @ 6/30/09

 

 

 

 

 

889,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early Renewals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

317 Madison Avenue

 

1

 

2.5

 

2,355

 

2,405

 

$

40.00

 

$

35.56

 

$

 

 

 

 

19 West 44th Street

 

2

 

1.1

 

3,266

 

3,709

 

$

39.66

 

$

41.20

 

$

 

 

 

 

625 Madison Avenue

 

1

 

3.0

 

3,500

 

3,500

 

$

68.53

 

$

63.59

 

$

 

 

 

 

1350 Avenue of the Americas

 

1

 

0.6

 

2,518

 

2,796

 

$

60.00

 

$

45.34

 

$

 

 

 

 

420 Lexington Avenue

 

1

 

5.0

 

1,523

 

1,985

 

$

40.37

 

$

54.04

 

$

 

 

 

 

Total/Weighted Average

 

6

 

2.2

 

13,162

 

14,395

 

$

50.79

 

$

48.28

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early Renewals Office

 

6

 

2.2

 

13,162

 

14,395

 

$

50.79

 

$

48.28

 

$

 

 

 

 

Total

 

6

 

2.2

 

13,162

 

14,395

 

$

50.79

 

$

48.28

 

$

 

 

 


(1) Annual Base Rent

(2) Escalated Rent is calculated as Total Annual Income less Electric Charges.

(3) Average starting office rent excluding new tenants replacing vacancies is $51.11/rsf for 249,270 rentable SF.

      Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $51.10/rsf for 263,665 rentable SF.

 

38



 

Leasing Activity - Suburban Properties

Available Space

 

Activity

 

Building Address

 

# of Leases

 

Usable SF

 

Rentable SF

 

Rent/Rentable SF ($’s)(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Vacancy at 3/31/09

 

 

 

 

 

697,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space which became available during the Quarter (A):

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

115-117 Stevens Avenue

 

2

 

3,977

 

3,977

 

$

 24.76

 

 

 

200 Summit Lake Drive

 

1

 

2,486

 

2,486

 

$

 26.20

 

 

 

399 Knollwood Road

 

1

 

2,287

 

2,287

 

$

 24.27

 

 

 

1 Landmark Square

 

2

 

10,350

 

10,350

 

$

 39.56

 

 

 

4 Landmark Square

 

2

 

4,550

 

4,550

 

$

 27.50

 

 

 

1010 Washington Boulevard

 

1

 

8,200

 

8,200

 

$

 26.58

 

 

 

1055 Washington Boulevard

 

1

 

985

 

985

 

$

 35.00

 

 

 

The Meadows

 

3

 

4,857

 

4,857

 

$

 34.80

 

 

 

16 Court Street

 

2

 

11,973

 

11,973

 

$

 27.87

 

 

 

Total/Weighted Average

 

15

 

49,665

 

49,665

 

$

 30.38

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

The Meadows

 

1

 

7,993

 

7,993

 

$

 27.00

 

 

 

Total/Weighted Average

 

1

 

7,993

 

7,993

 

$

 27.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

200 Summit Lake Drive

 

1

 

280

 

280

 

$

 10.00

 

 

 

Total/Weighted Average

 

1

 

280

 

280

 

$

 10.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Space became Available during the Quarter

 

 

 

 

 

 

 

 

 

 

 

Office

 

15

 

49,665

 

49,665

 

$

30.38

 

 

 

Retail

 

1

 

7,993

 

7,993

 

$

27.00

 

 

 

Storage

 

1

 

280

 

280

 

$

10.00

 

 

 

 

 

17

 

57,938

 

57,938

 

$

 29.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Available Space

 

 

 

755,900

 

 

 

 

 

 


(1)  Escalated Rent is calculated as Total Annual Income less Electric Charges.

(A) - Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants heldover.

 

39



 

Leasing Activity - Suburban Properties

Leased Space

 

Activity

 

Building Address

 

# of Leases

 

Term
(Yrs)

 

Usable SF

 

Rentable SF

 

New Cash Rent
/ Rentable SF(1)

 

Prev. Escalated
Rent/ Rentable
SF(2)

 

TI / Rentable
SF

 

Free Rent #
of Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available Space as of 6/30/09

 

 

 

 

 

755,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

520 White Plains Road

 

1

 

4.1

 

1,285

 

2,348

 

$

26.25

 

$

 

$

29.91

 

1.0

 

 

 

115-117 Stevens Avenue

 

2

 

2.3

 

3,077

 

3,088

 

$

21.89

 

$

24.56

 

$

 

0.7

 

 

 

399 Knollwood Road

 

1

 

4.8

 

1,163

 

1,163

 

$

26.00

 

$

28.00

 

$

30.05

 

 

 

 

1 Landmark Square

 

1

 

8.4

 

5,750

 

5,750

 

$

42.00

 

$

44.22

 

$

 

 

 

 

4 Landmark Square

 

1

 

5.3

 

3,385

 

3,385

 

$

33.00

 

$

27.50

 

$

 

4.0

 

 

 

6 Landmark Square

 

1

 

7.3

 

10,074

 

10,074

 

$

38.00

 

$

33.74

 

$

50.00

 

3.0

 

 

 

The Meadows

 

4

 

3.6

 

10,175

 

10,175

 

$

25.31

 

$

25.72

 

$

8.82

 

1.0

 

 

 

Jericho Plaza

 

1

 

6.0

 

1,201

 

1,201

 

$

35.44

 

$

 

$

50.79

 

 

 

 

16 Court Street

 

3

 

4.6

 

13,223

 

13,483

 

$

39.89

 

$

27.87

 

$

9.47

 

0.1

 

 

 

Total/Weighted Average

 

15

 

5.3

 

49,333

 

50,667

 

$

34.21

 

$

31.49

 

$

17.51

 

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leased Space

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office (3)

 

15

 

5.3

 

49,333

 

50,667

 

$

34.21

 

$

31.49

 

$

17.51

 

1.2

 

 

 

Total

 

15

 

5.3

 

49,333

 

50,667

 

$

34.21

 

$

31.49

 

$

17.51

 

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Available Space @ 6/30/09

 

 

 

 

 

706,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early Renewals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

360 Hamilton Avenue

 

1

 

10.0

 

31,718

 

31,718

 

$

30.50

 

$

34.33

 

$

 

4.0

 

 

 

The Meadows

 

2

 

5.3

 

30,125

 

30,125

 

$

23.06

 

$

26.18

 

$

0.82

 

5.8

 

 

 

Jericho Plaza

 

3

 

9.2

 

40,553

 

40,553

 

$

36.04

 

$

32.93

 

$

8.72

 

3.2

 

 

 

16 Court Street

 

1

 

5.0

 

6,335

 

7,912

 

$

21.22

 

$

30.10

 

$

5.88

 

 

 

 

Total/Weighted Average

 

7

 

8.1

 

108,731

 

110,308

 

$

29.84

 

$

31.29

 

$

3.85

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Landmark Square

 

1

 

3.5

 

2,583

 

2,583

 

$

25.72

 

40.09

 

$

 

 

 

 

Total/Weighted Average

 

1

 

3.5

 

2,583

 

2,583

 

$

25.72

 

$

40.09

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jericho Plaza

 

1

 

6.0

 

450

 

450

 

$

10.50

 

10.50

 

$

 

 

 

 

Total/Weighted Average

 

1

 

6.0

 

450

 

450

 

$

10.50

 

$

10.50

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early Renewals Office

 

7

 

8.1

 

108,731

 

110,308

 

$

29.84

 

$

31.29

 

$

3.85

 

3.9

 

 

 

Early Renewals Retail

 

1

 

3.5

 

2,583

 

2,583

 

$

25.72

 

$

40.09

 

$

 

 

 

 

Early Renewals Storage

 

1

 

6.0

 

450

 

450

 

$

10.50

 

$

10.50

 

$

 

 

 

 

Total

 

9

 

8.0

 

111,764

 

113,341

 

$

29.67

 

$

31.40

 

$

3.75

 

3.8

 

 


(1) Annual Base Rent.

(2) Escalated Rent is calculated as Total Annual Income less Electric Charges.

(3) Average starting office rent excluding new tenants replacing vacancies is $36.67/rsf for 37,969 rentable SF.
Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $31.59/rsf for 148,277 rentable SF.

 

40



 

ANNUAL LEASE EXPIRATIONS - Manhattan Properties

 

 

 

 

Consolidated Properties

 

Joint Venture Properties

 

Year of Lease Expiration

 

Number
of
Expiring
Leases (2)

 

Rentable
Square
Footage of
Expiring
Leases

 

Percentage
of Total
Leased
Sq. Ft.

 

Annualized
Rent of Expiring Leases

 

Annualized Rent
Per Leased
Square Foot of
Expiring Leases
$/psf (3)

 

Year 2009
Weighted
Average
Asking
Rent
$/psf

 

Number
of
Expiring
Leases (2)

 

Rentable
Square
Footage of
Expiring
Leases

 

Percentage of
Total
Leased
Sq. Ft.

 

Annualized
Rent of
Expiring
Leases

 

Annualized Rent
Per Leased
Square Foot of
Expiring Leases
$/psf (3)

 

Year 2009
Weighted
Average
Asking
Rent
$/psf

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 1st Quarter 2009 (1)

 

15

 

38,003

 

0.28

%

$

1,854,864

 

$

48.81

 

$

56.71

 

2

 

531

 

0.01

%

$

13,308

 

$

25.06

 

$

28.30

 

In 2nd Quarter 2009 (1)

 

7

 

9,024

 

0.07

%

$

418,932

 

$

46.42

 

$

50.81

 

1

 

2,800

 

0.03

%

$

138,408

 

$

49.43

 

$

70.00

 

In 3rd Quarter 2009

 

18

 

259,012

 

1.91

%

$

12,095,514

 

$

46.70

 

$

51.77

 

4

 

19,271

 

0.22

%

$

875,268

 

$

45.42

 

$

49.03

 

In 4th Quarter 2009

 

30

 

228,763

 

1.68

%

$

11,289,756

 

$

49.35

 

$

54.32

 

5

 

33,223

 

0.38

%

$

2,210,664

 

$

66.54

 

$

93.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 2009

 

70

 

534,802

 

3.93

%

$

25,659,066

 

$

47.98

 

$

53.19

 

12

 

55,825

 

0.63

%

$

3,237,648

 

$

58.00

 

$

76.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 1st Quarter 2010

 

28

 

151,979

 

1.12

%

$

7,024,224

 

$

46.22

 

$

52.84

 

7

 

301,027

 

3.40

%

$

15,388,392

 

$

51.12

 

$

52.16

 

In 2nd Quarter 2010

 

29

 

250,383

 

1.84

%

$

11,422,572

 

$

45.62

 

$

56.28

 

7

 

74,254

 

0.84

%

$

4,368,936

 

$

58.84

 

$

53.54

 

In 3rd Quarter 2010

 

35

 

110,884

 

0.82

%

$

5,694,492

 

$

51.36

 

$

62.36

 

3

 

22,732

 

0.26

%

$

1,230,012

 

$

54.11

 

$

59.08

 

In 4th Quarter 2010

 

31

 

273,272

 

2.01

%

$

14,166,072

 

$

51.84

 

$

51.90

 

2

 

4,867

 

0.05

%

$

195,084

 

$

40.08

 

$

57.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 2010

 

123

 

786,518

 

5.79

%

$

38,307,360

 

$

48.71

 

$

54.95

 

19

 

402,880

 

4.55

%

$

21,182,424

 

$

52.58

 

$

52.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

113

 

856,636

 

6.30

%

$

45,001,620

 

$

52.53

 

$

53.70

 

10

 

159,162

 

1.80

%

$

7,676,820

 

$

48.23

 

$

60.05

 

2012

 

110

 

968,416

 

7.13

%

$

42,872,880

 

$

44.27

 

$

49.40

 

17

 

113,194

 

1.28

%

$

6,097,056

 

$

53.86

 

$

58.02

 

2013

 

98

 

1,221,563

 

8.99

%

$

62,373,084

 

$

51.06

 

$

53.90

 

11

 

881,822

 

9.96

%

$

53,205,876

 

$

60.34

 

$

68.09

 

2014

 

56

 

830,147

 

6.11

%

$

41,883,012

 

$

50.45

 

$

55.46

 

15

 

231,009

 

2.61

%

$

20,071,032

 

$

86.88

 

$

95.96

 

2015

 

49

 

614,583

 

4.52

%

$

29,802,108

 

$

48.49

 

$

52.89

 

16

 

1,512,694

 

17.08

%

$

79,228,332

 

$

52.38

 

$

55.64

 

2016

 

40

 

964,962

 

7.10

%

$

51,111,324

 

$

52.97

 

$

63.44

 

7

 

209,736

 

2.37

%

$

16,215,288

 

$

77.31

 

$

67.38

 

2017

 

58

 

1,770,266

 

13.03

%

$

90,020,976

 

$

50.85

 

$

55.39

 

5

 

156,629

 

1.77

%

$

10,338,288

 

$

66.00

 

$

52.37

 

2018

 

27

 

517,468

 

3.81

%

$

39,628,680

 

$

76.58

 

$

75.60

 

16

 

1,297,910

 

14.66

%

$

84,529,176

 

$

65.13

 

$

76.40

 

Thereafter

 

69

 

4,525,704

 

33.30

%

$

242,110,963

 

$

53.50

 

$

60.17

 

17

 

1,200,520

 

13.56

%

$

66,562,057

 

$

55.44

 

$

69.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

813

 

13,591,065

 

100.00

%

$

708,771,073

 

$

52.15

 

$

57.44

 

145

 

6,221,381

 

70.25

%

$

368,343,997

 

$

59.21

 

$

66.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4)

2

 

2,634,670

 

29.75

%

$

102,945,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

147

 

8,856,051

 

100.00

%

$

471,289,933

 

 

 

 

 

 


(1) Includes month to month holdover tenants that expired prior to 6/30/09.

(2) Tenants may have multiple leases.

(3) Represents in place annualized rent allocated by year of maturity.

(4) Citigroup’s net lease at 388-390 Greenwich Street which expires in 2020, current net rent is $39.07/psf with annual CPI escalation.

 

41



 

 ANNUAL LEASE EXPIRATIONS - Suburban Properties

 

 

 

 

 

 

 

 

 

Consolidated Properties

 

 

 

 

 

 

 

 

 

Joint Venture Properties

 

 

 

 

 

Year of Lease Expiration

 

Number of Expiring Leases (2)

 

Rentable Square Footage of Expiring Leases

 

Percentage of Total Leased
Sq. Ft.

 

Annualized
Rent of
Expiring Leases

 

Annualized Rent Per Leased Square Foot of Expiring Leases
$/psf (3)

 

Year 2009 Weighted Average Asking Rent $/psf

 

Number of Expiring Leases (2)

 

Rentable Square Footage of Expiring Leases

 

Percentage of Total Leased Sq. Ft.

 

Annualized
Rent of
Expiring
Leases

 

Annualized Rent Per Leased Square Foot of Expiring Leases
$/psf (3)

 

Year 2009 Weighted Average Asking Rent $/psf

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 1st Quarter 2009 (1)

 

14

 

67,776

 

2.02

%

$

889,656

 

$

13.13

 

$

11.40

 

3

 

3,273

 

0.12

%

$

112,248

 

$

34.30

 

$

31.69

 

In 2nd Quarter 2009 (1)

 

7

 

16,097

 

0.48

%

$

458,748

 

$

28.50

 

$

32.76

 

3

 

9,047

 

0.34

%

$

320,356

 

$

35.41

 

$

32.19

 

In 3rd Quarter 2009

 

10

 

68,117

 

2.03

%

$

2,345,604

 

$

34.43

 

$

34.92

 

6

 

13,552

 

0.50

%

$

410,244

 

$

30.27

 

$

29.81

 

In 4th Quarter 2009

 

17

 

106,177

 

3.16

%

$

3,001,980

 

$

28.27

 

$

34.08

 

6

 

39,158

 

1.45

%

$

1,037,676

 

$

26.50

 

$

26.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 2009

 

48

 

258,167

 

7.69

%

$

6,695,988

 

$

25.94

 

$

28.27

 

18

 

65,030

 

2.41

%

$

1,880,524

 

$

28.92

 

$

28.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 1st Quarter 2010

 

11

 

113,007

 

3.37

%

$

3,521,244

 

$

31.16

 

$

29.59

 

7

 

51,964

 

1.93

%

$

1,468,392

 

$

28.26

 

$

29.17

 

In 2nd Quarter 2010

 

16

 

73,626

 

2.19

%

$

2,014,116

 

$

27.36

 

$

28.09

 

9

 

98,821

 

3.66

%

$

2,894,616

 

$

29.29

 

$

31.54

 

In 3rd Quarter 2010

 

21

 

150,244

 

4.48

%

$

4,553,076

 

$

30.30

 

$

36.49

 

5

 

24,171

 

0.90

%

$

835,248

 

$

34.56

 

$

33.22

 

In 4th Quarter 2010

 

14

 

144,339

 

4.30

%

$

4,752,036

 

$

32.92

 

$

30.09

 

3

 

8,635

 

0.32

%

$

298,968

 

$

34.62

 

$

30.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 2010

 

62

 

481,216

 

14.34

%

$

14,840,472

 

$

30.84

 

$

31.67

 

24

 

183,591

 

6.81

%

$

5,497,224

 

$

29.94

 

$

31.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

72

 

773,258

 

23.04

%

$

22,664,712

 

$

29.31

 

$

32.02

 

23

 

113,820

 

4.22

%

$

3,644,304

 

$

32.02

 

$

29.41

 

2012

 

37

 

256,706

 

7.65

%

$

8,222,880

 

$

32.03

 

$

34.10

 

22

 

240,500

 

8.92

%

$

8,443,500

 

$

35.11

 

$

33.58

 

2013

 

35

 

428,144

 

12.76

%

$

14,223,000

 

$

33.22

 

$

32.65

 

20

 

96,023

 

3.56

%

$

2,885,892

 

$

30.05

 

$

35.89

 

2014

 

25

 

259,872

 

7.74

%

$

7,602,504

 

$

29.25

 

$

30.69

 

18

 

257,285

 

9.54

%

$

9,045,240

 

$

35.16

 

$

33.68

 

2015

 

17

 

250,042

 

7.45

%

$

7,993,932

 

$

31.97

 

$

32.09

 

9

 

43,431

 

1.61

%

$

1,329,900

 

$

30.62

 

$

32.29

 

2016

 

17

 

353,693

 

10.54

%

$

10,000,152

 

$

28.27

 

$

32.87

 

5

 

64,112

 

2.38

%

$

2,109,732

 

$

32.91

 

$

35.27

 

2017

 

8

 

54,165

 

1.61

%

$

1,675,116

 

$

30.93

 

$

31.99

 

6

 

55,793

 

2.07

%

$

2,281,344

 

$

40.89

 

$

32.18

 

2018

 

8

 

132,595

 

3.95

%

$

4,162,428

 

$

31.39

 

$

32.12

 

5

 

61,523

 

2.28

%

$

2,115,096

 

$

34.38

 

$

32.93

 

Thereafter

 

8

 

108,497

 

3.23

%

$

3,483,384

 

$

32.11

 

$

41.21

 

13

 

1,516,398

 

56.21

%

$

54,801,228

 

$

36.14

 

$

38.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

337

 

3,356,355

 

100.00

%

$

101,564,568

 

$

30.26

 

$

32.21

 

163

 

2,697,506

 

100.00

%

$

94,033,984

 

$

34.86

 

$

36.10

 

 


(1) Includes month to month holdover tenants that expired prior to 6/30/09.

(2) Tenants may have multiple leases.

(3) Represents in place annualized rent allocated by year of maturity.

 

42



 

SUMMARY OF REAL ESTATE ACQUISITION
ACTIVITY POST 1997 - Manhattan

 

 

 

 

 

 

 

 

 

 

 

 

% Leased

 

Acquisition

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable sf

 

at acquisition

 

6/30/2009

 

Price ($’s) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1998 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-98

 

420 Lexington

 

Operating Sublease

 

Grand Central

 

1,188,000

 

83.0

 

96.8

 

$

78,000,000

 

May-98

 

711 3rd Avenue

 

Operating Sublease

 

Grand Central

 

524,000

 

79.0

 

92.1

 

$

65,600,000

 

Jun-98

 

440 9th Avenue

 

Fee Interest

 

Penn Station

 

339,000

 

76.0

 

N/A

 

$

32,000,000

 

1999 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-99

 

420 Lexington Leasehold

 

Sub-leasehold

 

Grand Central

 

 

 

 

$

27,300,000

 

Jan-99

 

555 West 57th - 65% JV

 

Fee Interest

 

Midtown West

 

941,000

 

100.0

 

99.1

 

$

66,700,000

 

Aug-99

 

1250 Broadway - 50% JV

 

Fee Interest

 

Penn Station

 

670,000

 

96.5

 

N/A

 

$

93,000,000

 

Nov-99

 

555 West 57th - remaining 35%

 

Fee Interest

 

Midtown West

 

 

 

 

99.1

 

$

34,100,000

 

2000 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-00

 

100 Park Avenue - 50% JV

 

Fee Interest

 

Grand Central

 

834,000

 

96.5

 

81.5

 

$

192,000,000

 

2001 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun-01

 

317 Madison

 

Fee Interest

 

Grand Central

 

450,000

 

95.0

 

90.5

 

$

105,600,000

 

Acquisition of JV Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep-01

 

1250 Broadway - 49.9% JV (2)

 

Fee Interest

 

Penn Station

 

670,000

 

97.7

 

N/A

 

$

126,500,000

 

2002 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

May-02

 

1515 Broadway - 55% JV

 

Fee Interest

 

Times Square

 

1,750,000

 

98.0

 

94.5

 

$

483,500,000

 

2003 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-03

 

220 East 42nd Street

 

Fee Interest

 

Grand Central

 

1,135,000

 

91.9

 

99.6

 

$

265,000,000

 

Mar-03

 

125 Broad Street

 

Fee Interest

 

Downtown

 

525,000

 

100.0

 

N/A

 

$

92,000,000

 

Oct-03

 

461 Fifth Avenue

 

Leasehold Interest

 

Midtown

 

200,000

 

93.9

 

98.8

 

$

60,900,000

 

Dec-03

 

1221 Ave of Americas - 45% JV

 

Fee Interest

 

Rockefeller Center

 

2,550,000

 

98.8

 

93.7

 

$

1,000,000,000

 

2004 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-04

 

19 West 44th Street - 35% JV

 

Fee Interest

 

Midtown

 

292,000

 

86.0

 

98.0

 

$

67,000,000

 

Jul-04

 

750 Third Avenue

 

Fee Interest

 

Grand Central

 

779,000

 

100.0

 

89.2

 

$

255,000,000

 

Jul-04

 

485 Lexington Avenue - 30% JV

 

Fee Interest

 

Grand Central

 

921,000

 

100.0

 

96.8

 

$

225,000,000

 

Oct-04

 

625 Madison Avenue

 

Leasehold Interest

 

Plaza District

 

563,000

 

68.0

 

97.3

 

$

231,500,000

 

2005 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-05

 

28 West 44th Street

 

Fee Interest

 

Midtown

 

359,000

 

87.0

 

97.3

 

$

105,000,000

 

Apr-05

 

1 Madison Ave - 55% JV

 

Fee Interest

 

Park Avenue South

 

1,177,000

 

96.0

 

99.8

 

$

803,000,000

 

Apr-05

 

5 Madison Ave Clock Tower

 

Fee Interest

 

Park Avenue South

 

267,000

 

N/A

 

N/A

 

$

115,000,000

 

Jun-05

 

19 West 44th Street - remaining 65%

 

Fee Interest

 

Midtown

 

 

 

 

98.0

 

$

91,200,000

 

2006 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-06

 

521 Fifth Avenue (3)

 

Leasehold Interest

 

Midtown

 

460,000

 

97.0

 

88.3

 

$

210,000,000

 

Jun-06

 

609 Fifth Avenue

 

Fee Interest

 

Midtown

 

160,000

 

98.5

 

99.1

 

$

182,000,000

 

Dec-06

 

485 Lexington Avenue - remaining 70%

 

Fee Interest

 

Grand Central

 

 

 

 

96.8

 

$

578,000,000

 

Dec-06

 

800 Third Avenue - 42.95% JV

 

Fee Interest

 

Grand Central North

 

526,000

 

96.9

 

98.7

 

$

285,000,000

 

2007 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-07

 

Reckson - NYC Portfolio

 

Fee Interests / Leasehold Interest

 

Various

 

5,612,000

 

98.3

 

97.9

 

$

3,679,530,000

 

Apr-07

 

331 Madison Avenue

 

Fee Interest

 

Grand Central

 

114,900

 

97.6

 

100.0

 

$

73,000,000

 

Apr-07

 

1745 Broadway - 32.3% JV

 

Fee Interest

 

Midtown

 

674,000

 

100.0

 

100.0

 

$

520,000,000

 

Jun-07

 

333 West 34th Street

 

Fee Interest

 

Penn Station

 

345,400

 

100.0

 

95.5

 

$

183,000,000

 

Aug-07

 

1 Madison Avenue - remaining 45%

 

Fee Interest

 

Park Avenue South

 

1,177,000

 

99.8

 

99.8

 

$

1,000,000,000

 

Dec-07

 

388 & 390 Greenwich Street - 50.6% JV

 

Fee Interest

 

Downtown

 

2,635,000

 

100.0

 

100.0

 

$

1,575,000,000

 

 

 

 

 

 

 

 

 

10,558,300

 

 

 

 

 

$

7,030,530,000

 

 


(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties.

(2) Current ownership interest is 55%. (From 9/1/01-10/31/01the company owned 99.8% of this property.)

(3) Current ownership interest is 50.1%. (From 3/17/06 - 12/14/06 the company owned 100% of the Leasehold Interest of this property.)

 

43



 

SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999 - Manhattan

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

Sales

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable sf

 

Price ($’s)

 

Price ($’s/SF)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2000 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-00

 

29 West 35th Street

 

Fee Interest

 

Penn Station

 

78,000

 

$

11,700,000

 

$

150

 

Mar-00

 

36 West 44th Street

 

Fee Interest

 

Grand Central

 

178,000

 

$

31,500,000

 

$

177

 

May-00

 

321 West 44th Street - 35% JV

 

Fee Interest

 

Times Square

 

203,000

 

$

28,400,000

 

$

140

 

Nov-00

 

90 Broad Street

 

Fee Interest

 

Financial

 

339,000

 

$

60,000,000

 

$

177

 

Dec-00

 

17 Battery South

 

Fee Interest

 

Financial

 

392,000

 

$

53,000,000

 

$

135

 

 

 

 

 

 

 

 

 

1,190,000

 

$

184,600,000

 

$

156

 

2001 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-01

 

633 Third Ave

 

Fee Interest

 

Grand Central North

 

40,623

 

$

13,250,000

 

$

326

 

May-01

 

1 Park Ave - 45% JV

 

Fee Interest

 

Grand Central South

 

913,000

 

$

233,900,000

 

$

256

 

Jun-01

 

1412 Broadway

 

Fee Interest

 

Times Square South

 

389,000

 

$

90,700,000

 

$

233

 

Jul-01

 

110 E. 42nd Street

 

Fee Interest

 

Grand Central

 

69,700

 

$

14,500,000

 

$

208

 

Sep-01

 

1250 Broadway (1)

 

Fee Interest

 

Penn Station

 

670,000

 

$

126,500,000

 

$

189

 

 

 

 

 

 

 

 

 

2,082,323

 

$

478,850,000

 

$

242

 

2002 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun-02

 

469 Seventh Avenue

 

Fee Interest

 

Penn Station

 

253,000

 

$

53,100,000

 

$

210

 

 

 

 

 

 

 

 

 

253,000

 

$

53,100,000

 

$

210

 

2003 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-03

 

50 West 23rd Street

 

Fee Interest

 

Chelsea

 

333,000

 

$

66,000,000

 

$

198

 

Jul-03

 

1370 Broadway

 

Fee Interest

 

Times Square South

 

255,000

 

$

58,500,000

 

$

229

 

Dec-03

 

321 W 44th Street

 

Fee Interest

 

Times Square

 

203,000

 

$

35,000,000

 

$

172

 

 

 

 

 

 

 

 

 

791,000

 

$

159,500,000

 

$

202

 

2004 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

May-04

 

1 Park Avenue (2)

 

Fee Interest

 

Grand Central South

 

913,000

 

$

318,500,000

 

$

349

 

Oct-04

 

17 Battery Place North

 

Fee Interest

 

Financial

 

419,000

 

$

70,000,000

 

$

167

 

Nov-04

 

1466 Broadway

 

Fee Interest

 

Times Square

 

289,000

 

$

160,000,000

 

$

554

 

 

 

 

 

 

 

 

 

1,621,000

 

$

548,500,000

 

$

338

 

2005 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Apr-05

 

1414 Avenue of the Americas

 

Fee Interest

 

Plaza District

 

111,000

 

$

60,500,000

 

$

545

 

Aug-05

 

180 Madison Avenue

 

Fee Interest

 

Grand Central

 

265,000

 

$

92,700,000

 

$

350

 

 

 

 

 

 

 

 

 

376,000

 

153,200,000

 

$

407

 

2006 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul-06

 

286 & 290 Madison Avenue

 

Fee Interest

 

Grand Central

 

149,000

 

$

63,000,000

 

$

423

 

Aug-06

 

1140 Avenue of the Americas

 

Leasehold Interest

 

Rockefeller Center

 

191,000

 

$

97,500,000

 

$

510

 

Dec-06

 

521 Fifth Avenue (3)

 

Leasehold Interest

 

Midtown

 

460,000

 

$

240,000,000

 

$

522

 

 

 

 

 

 

 

 

 

800,000

 

400,500,000

 

$

501

 

2007 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-07

 

1 Park Avenue

 

Fee Interest

 

Grand Central South

 

913,000

 

$

550,000,000

 

$

602

 

Mar-07

 

70 West 36th Street

 

Fee Interest

 

Garment

 

151,000

 

$

61,500,000

 

$

407

 

Jun-07

 

110 East 42nd Street

 

Fee Interest

 

Grand Central North

 

181,000

 

$

111,500,000

 

$

616

 

Jun-07

 

125 Broad Street

 

Fee Interest

 

Downtown

 

525,000

 

$

273,000,000

 

$

520

 

Jun-07

 

5 Madison Clock Tower

 

Fee Interest

 

Park Avenue South

 

267,000

 

$

200,000,000

 

$

749

 

Jul-07

 

292 Madison

 

Fee Interest

 

Grand Central South

 

187,000

 

$

140,000,000

 

$

749

 

Jul-07

 

1372 Broadway (4)

 

Fee Interest

 

Penn Station/Garment

 

508,000

 

$

335,000,000

 

$

659

 

Nov-07

 

470 Park Ave South

 

Fee Interest

 

Park Avenue South/Flatiron

 

260,000

 

$

157,000,000

 

$

604

 

 

 

 

 

 

 

 

 

2,992,000

 

$

1,828,000,000

 

$

611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-08

 

440 Ninth Avenue

 

Fee Interest

 

Penn Station

 

339,000

 

$

160,000,000

 

$

472

 

May-08

 

1250 Broadway

 

Fee Interest

 

Penn Station

 

670,000

 

$

310,000,000

 

$

463

 

Oct-08

 

1372 Broadway (5)

 

Fee Interest

 

Penn Station/Garment

 

508,000

 

$

274,000,000

 

$

539

 

 

 

 

 

 

 

 

 

1,517,000

 

$

744,000,000

 

$

490

 


(1) Company sold a 45% JV interest in the property at an implied $126.5mm sales price.

(2) Company sold a 75% JV interest in the property at an implied $318.5mm sales price.

(3) Company sold a 50% JV interest in the property at an implied $240.0mm sales price

(4) Company sold a 85% JV interest in the property at an implied $335.0mm sales price.

(5) Company sold a 15% JV interest in the property at an implied $274.0mm sales price.

 

44



 

SUMMARY OF REAL ESTATE ACQUISITION
ACTIVITY POST 1997 - Suburban

 

 

 

 

 

 

 

 

 

 

 

 

% Leased

 

Acquisition

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable sf

 

at acquisition

 

6/30/2009

 

Price ($’s) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2007 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-07

 

300 Main Street

 

Fee Interest

 

Stamford, Connecticut

 

130,000

 

92.5

 

95.3

 

$

15,000,000

 

Jan-07

 

399 Knollwood Road

 

Fee Interest

 

White Plains, Westchester

 

145,000

 

96.6

 

92.8

 

$

31,600,000

 

Jan-07

 

Reckson - Connecticut Portfolio

 

Fee Interests / Leasehold Interest

 

Stamford, Connecticut

 

1,369,800

 

88.9

 

87.5

 

$

490,750,000

 

Jan-07

 

Reckson - Westchester Portfolio

 

Fee Interests / Leasehold Interest

 

Westchester

 

2,346,100

 

90.6

 

88.5

 

$

570,190,000

 

Apr-07

 

Jericho Plazas - 20.26% JV

 

Fee Interest

 

Jericho, New York

 

640,000

 

98.4

 

97.7

 

$

210,000,000

 

Jun-07

 

1010 Washington Boulevard

 

Fee Interest

 

Stamford, Connecticut

 

143,400

 

95.6

 

65.6

 

$

38,000,000

 

Jun-07

 

500 West Putnam Avenue

 

Fee Interest

 

Greenwich, Connecticut

 

121,500

 

94.4

 

83.2

 

$

56,000,000

 

Jul-07

 

16 Court Street - 35% JV

 

Fee Interest

 

Brooklyn, New York

 

317,600

 

80.6

 

81.5

 

$

107,500,000

 

Aug-07

 

150 Grand Street

 

Fee Interest

 

White Plains, Westchester

 

85,000

 

52.9

 

17.5

 

$

6,700,000

 

Sep-07

 

The Meadows - 25% JV

 

Fee Interest

 

Rutherford, New Jersey

 

582,100

 

81.3

 

82.6

 

$

111,500,000

 

 

 

 

 

 

 

 

 

5,880,500

 

 

 

 

 

$

1,637,240,000

 

 

SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1997 - Suburban

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

Sales

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable sf

 

 

 

Price ($’s)

 

Price ($’s/SF)

 

2008 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oct-08

 

100 & 120 White Plains Road

 

Fee Interest

 

Tarrytown, Westchester

 

311,000

 

 

 

$

48,000,000

 

$

 154

 

 

SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997 - Retail, Development & Land

 

 

 

 

 

 

 

 

 

 

 

% Leased

 

Acquisition

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable sf

 

at acquisition

 

6/30/2009

 

Price ($’s) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul-05

 

1551-1555 Broadway - 10% JV

 

Fee Interest

 

Times Square

 

25,600

 

N/A

 

100.0

 

$

85,000,000

 

Jul-05

 

21 West 34th Street - 50% JV

 

Fee Interest

 

Herald Square

 

30,100

 

N/A

 

100.0

 

$

17,500,000

 

Sep-05

 

141 Fifth Avenue - 50% JV

 

Fee Interest

 

Fllat Iron

 

21,500

 

90.0

 

68.5

 

$

13,250,000

 

Nov-05

 

1604 Broadway - 63% JV

 

Leasehold Interest

 

Times Square

 

29,876

 

17.2

 

23.7

 

$

4,400,000

 

Dec-05

 

379 West Broadway - 45% JV

 

Leasehold Interest

 

Cast Iron/Soho

 

62,006

 

100.0

 

100.0

 

$

19,750,000

 

 

 

 

 

 

 

 

 

169,082

 

 

 

 

 

$

139,900,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-06

 

25-29 West 34th Street - 50% JV

 

Fee Interest

 

Herald Square/Penn Station

 

41,000

 

55.8

 

100.0

 

$

30,000,000

 

Sep-06

 

717 Fifth Avenue - 32.75% JV

 

Fee Interest

 

Midtown/Plaza District

 

119,550

 

63.1

 

75.8

 

$

251,900,000

 

 

 

 

 

 

 

 

 

160,550

 

 

 

 

 

$

281,900,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2007 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aug-07

 

180 Broadway - 50% JV

 

Fee Interest

 

Cast Iron / Soho

 

24,300

 

85.2

 

51.0

 

$

13,600,000

 

Apr-07

 

Two Herald Square - 55% JV

 

Fee Interest

 

Herald Square

 

N/A

 

N/A

 

N/A

 

$

225,000,000

 

Jul-07

 

885 Third Avenue - 55% JV

 

Fee Interest

 

Midtown / Plaza District

 

N/A

 

N/A

 

N/A

 

$

317,000,000

 

 

 

 

 

 

 

 

 

24,300

 

 

 

 

 

$

555,600,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-08

 

182 Broadway - 50% JV

 

Fee Interest

 

Cast Iron / Soho

 

46,280

 

83.8

 

51.0

 

$

30,000,000

 

 

 

 

 

 

 

 

 

46,280

 

 

 

 

 

$

30,000,000

 


(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties.

 

45



 

SUPPLEMENTAL DEFINITIONS




 

Adjusted EBITDA is calculated by adding income taxes, loan loss reserves and our share of joint venture depreciation and amortization to EBITDA.

 

Annualized rent is calculated as monthly base rent and escalations per the lease, as of a certain date, multiplied by 12.

 

Debt service coverage is adjusted EBITDA divided by total interest and principal payments.

 

Equity income / (loss) from affiliates are generally accounted for on a cost basis and realized gains and losses are included in current earnings. For investments in private companies, the Company periodically reviews its investments and management determines if the value of such investments have been permanently impaired. Permanent impairment losses for investments in public and private companies are included in current earnings.

 

Fixed charge is the total payments for interest, principal amortization, ground leases and preferred stock dividend.

 

Fixed charge coverage is adjusted EBITDA divided by fixed charge.

 

Funds available for distribution (FAD) is defined as FFO plus non-real estate depreciation, 2% allowance for straight line credit loss, adjustment for straight line ground rent, non-cash deferred compensation, a pro-rata adjustment for FAD for SLG’s unconsolidated JV, less straight line rental income, free rent net of amortization, second cycle tenant improvement and leasing cost, and recurring building improvements.

 

Funds from operations (FFO) is defined under the White Paper approved by the Board of Governors of NAREIT in April 2002 as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring and sales of properties, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

 

Interest coverage is adjusted EBITDA divided by total interest expense.

 

Junior Mortgage Participations are subordinate interests in first mortgages.

 

Mezzanine Debt Loans are loans secured by ownership interests.

 

Percentage leased represents the percentage of leased square feet, including month-to-month leases, to total rentable square feet owned, as of the date reported. Space is considered leased when the tenant has either taken physical or economic occupancy.

 

Preferred Equity Investments are equity investments entitled to preferential returns that are senior to common equity.

 

Recurring capital expenditures represents non-incremental building improvements and leasing costs required to maintain current revenues.  Recurring capital expenditures do not include immediate building improvements that were taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to “operating standard.”

 

Redevelopment costs are non-recurring capital expenditures incurred in order to improve buildings to SLG’s “operating standards.” These building costs are taken into consideration during the underwriting for a given property’s acquisition.

 

Same-store NOI growth is the change in the NOI (excluding straight-line rents) of the same-store properties from the prior year reporting period to the current year reporting period.

 

Same-store properties include all properties that were owned during both the current and prior year reporting periods and excludes development properties prior to being stabilized for both the current and prior reporting period.

 

Second generation TIs and LCs are tenant improvements, lease commissions, and other leasing costs incurred during leasing of second generation space. Costs incurred prior to leasing available square feet are not included until such space is leased. Second generation space excludes square footage vacant at acquisition.

 

SLG’s share of total debt to market capitalization is calculated as SLG’s share of total debt divided by the sum of total debt plus market equity and preferred stock at liquidation value. SLG’s share of total debt includes total consolidated debt plus SLG’s pro rata share of the debt of unconsolidated joint ventures less JV partners’ share of debt.  Market equity assumes conversion of all OP units into common stock.

 

Total square feet owned represents 100% of the square footage of properties either owned directly by SLG or in which SLG has an interest (e.g. joint ventures). 

 

46



 

CORPORATE GOVERNANCE




 

Stephen L. Green

Chairman of the Board

Marc Holliday

Chief Executive Officer

Gregory F. Hughes

Chief Operating Officer and Chief Financial Officer

Andrew Mathias

President and Chief Investment Officer

Andrew S. Levine

Chief Legal Officer

 

ANALYST COVERAGE

 

Firm

 

Analyst

 

Phone

 

Email

Bank of America - Merrill Lynch

 

James C. Feldman

 

(212) 449-6339

 

james_feldman@ml.com

Barclays Capital

 

Ross Smotrich

 

(212) 526-2306

 

Ross.smotrich@barcap.com

Citigroup Smith Barney, Inc.

 

Michael Bilerman

 

(212) 816-1383

 

michael.bilerman@citigroup.com

Credit-Suisse

 

Steve Benyik

 

(212) 538-0239

 

steve.benyik@credit-suisse.com

Deutsche Bank

 

John Perry

 

(212) 250-4912

 

john.perry@db.com

Goldman Sachs & Co.

 

Jonathan Habermann

 

(917) 343-4260

 

jonathan.habermann@gs.com

Green Street Advisors

 

Michael Knott

 

(949) 640-8780

 

mknott@greenstreetadvisors.com

ISI Group

 

Steve Sakwa

 

(212) 446-9462

 

ssakwa@isigrp.com

JP Morgan Securities, Inc.

 

Anthony Paolone

 

(212) 622-6682

 

anthony.paolone@jpmorgan.com

KeyBanc Capital Markets

 

Jordan Sadler

 

(917) 368-2280

 

jsadler@keybanccm.com

Macquarie Research Equities (USA)

 

Nick Pirsos

 

(212) 231-2457

 

nick.pirsos@macquarie.com

Raymond James Financial, Inc.

 

Paul D. Puryear

 

(727) 567-2253

 

paul.puryear@raymondjames.com

RBC Capital Markets

 

David B. Rodgers

 

(440) 715-2647

 

dave.rodgers@rbccm.com

Stifel Nicolaus

 

John Guinee

 

(443) 224-1307

 

jwguinee@stifel.com

UBS Securities LLC

 

Ross T. Nussbaum

 

(212) 713-2484

 

ross.nussbaum@ubs.com

Wells Fargo Securities, LLC

 

Brendan Maiorana

 

(443) 263-6516

 

brendan.maiorana@wachovia.com

 

SL Green Realty Corp. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding SL Green Realty Corp.’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of SL Green Realty Corp. or its management. SL Green Realty Corp. does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

 

47


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