10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to                 .

Commission File Number: 1-13199

SL GREEN REALTY CORP.

(Exact name of registrant as specified in its charter)

Maryland	13-3956775
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

420 Lexington Avenue, New York, New York 10170

(Address of principal executive offices) (Zip Code)

(212) 594-2700

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES  x  NO  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YES  x  NO  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES  o  NO  x

The number of shares outstanding of the registrant’s common stock, $0.01 par value, was 90,152,710 as of July 31, 2012.

SL GREEN REALTY CORP.

INDEX

		PAGE
PART I.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS
	Consolidated Balance Sheets as of June 30, 2012 (unaudited) and December 31, 2011	3
	Consolidated Statements of Income for the three and six months ended June 30, 2012 and 2011 (unaudited)	4
	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2012 and 2011 (unaudited)	5
	Consolidated Statement of Equity for the six months ended June 30, 2012 (unaudited)	6
	Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	8
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	39
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	55
ITEM 4.	CONTROLS AND PROCEDURES	55
PART II.	OTHER INFORMATION	56
ITEM 1.	LEGAL PROCEEDINGS	56
ITEM 1A.	RISK FACTORS	56
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	56
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	56
ITEM 4.	MINE SAFETY DISCLOSURES	56
ITEM 5.	OTHER INFORMATION	56
ITEM 6.	EXHIBITS	57
SIGNATURES		58

2

PART I.FINANCIAL INFORMATION

ITEM 1.Financial Statements

SL Green Realty Corp.

Consolidated Balance Sheets

(Amounts in thousands, except per share data)

	June 30,2012			December 31, 2011
	(Unaudited)
Assets
Commercial real estate properties, at cost:
Land and land interests	$	2,872,822		$	2,684,626
Building and improvements	7,310,651			7,147,527
Building leasehold and improvements	1,316,523			1,302,790
Property under capital lease	12,208			12,208
	11,512,204			11,147,151
Less: accumulated depreciation	(1,269,979		)	(1,136,603		)
	10,242,225			10,010,548
Assets held for sale	91,574			76,562
Cash and cash equivalents	256,799			138,192
Restricted cash	138,493			86,584
Investment in marketable securities	23,502			25,323
Tenant and other receivables, net of allowance of $20,826 and $16,772 in 2012 and 2011, respectively	32,728			32,107
Related party receivables	7,793			4,001
Deferred rents receivable, net of allowance of $31,343 and $29,156 in 2012 and 2011, respectively	315,700			281,974
Debt and preferred equity investments, net of discount of $22,601 and $24,996 and allowance of $41,050 and $50,175 in 2012 and 2011, respectively	982,209			985,942
Investments in unconsolidated joint ventures	1,014,042			893,933
Deferred costs, net	249,147			210,786
Other assets	784,901			737,900
Total assets	$	14,139,113		$	13,483,852
Liabilities
Mortgages and other loans payable	$	4,861,463		$	4,314,741
Revolving credit facility	80,000			350,000
Senior unsecured notes	1,173,769			1,270,656
Accrued interest payable and other liabilities	114,003			126,135
Accounts payable and accrued expenses	140,910			142,428
Deferred revenue/gains	352,151			357,193
Capitalized lease obligation	17,148			17,112
Deferred land leases payable	18,721			18,495
Dividend and distributions payable	30,126			28,398
Security deposits	47,463			46,367
Liabilities related to assets held for sale	62,792			61,988
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities	100,000			100,000
Total liabilities	6,998,546			6,833,513
Commitments and contingencies	—			—
Noncontrolling interest in operating partnership	279,685			195,030
Series H Preferred Units, $25.00 liquidation preference, 80 issued and outstanding at June 30, 2012 and December 31, 2011, respectively	2,000			2,000
Series G Preferred Units, $25.00 liquidation preference, 1,902 issued and outstanding at June 30, 2012	47,550			—
Equity
SL Green stockholders’ equity:
Series C preferred stock, $0.01 par value, $25.00 liquidation preference, 11,700 issued and outstanding at both June 30, 2012 and December 31, 2011, respectively	274,022			274,022
Series D preferred stock, $0.01 par value, $25.00 liquidation preference, 4,000 issued and outstanding at both June 30, 2012 and December 31, 2011, respectively	96,321			96,321
Common stock, $0.01 par value 160,000 shares authorized and 93,543 and 89,210 issued and outstanding at June 30, 2012 and December 31, 2011, respectively (including 3,605 and 3,427 shares at June 30, 2012 and December 31, 2011, held in Treasury, respectively)	936			892
Additional paid-in-capital	4,557,652			4,236,959
Treasury stock at cost	(319,866		)	(308,708		)
Accumulated other comprehensive loss	(28,413		)	(28,445		)
Retained earnings	1,741,160			1,704,506
Total SL Green stockholders’ equity	6,321,812			5,975,547
Noncontrolling interests in other partnerships	489,520			477,762
Total equity	6,811,332			6,453,309
Total liabilities and equity	$	14,139,113		$	13,483,852

The accompanying notes are an integral part of these financial statements.

3

SL Green Realty Corp.

Consolidated Statements of Income

(Unaudited, and amounts in thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Revenues
Rental revenue, net	$	267,691		$	238,635		$	528,505		$	465,655
Escalation and reimbursement	41,584			34,994			83,247			65,269
Investment and preferred equity income	33,448			15,144			59,786			79,823
Other income	6,282			9,932			16,659			17,180
Total revenues	349,005			298,705			688,197			627,927
Expenses
Operating expenses (including approximately $4,729 and $8,188 (2012) and $3,498 and $6,613 (2011) paid to affiliates)	68,919			62,395			142,188			122,698
Real estate taxes	52,569			43,975			104,067			84,042
Ground rent	8,890			7,813			17,696			15,647
Interest expense, net of interest income	82,327			68,173			162,464			132,439
Amortization of deferred financing costs	3,553			2,684			7,133			6,483
Depreciation and amortization	77,812			65,539			154,895			129,036
Loan loss and other investment reserves, net of recoveries	—			1,280			564			(1,870		)
Transaction related costs	1,970			1,217			3,121			3,651
Marketing, general and administrative	20,721			22,454			40,917			42,475
Total expenses	316,761			275,530			633,045			534,601
Income from continuing operations before equity in net income of unconsolidated joint ventures, noncontrolling interests and discontinued operations	32,244			23,175			55,152			93,326
Equity in net income from unconsolidated joint ventures	70,890			2,184			69,330			10,390
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate	9,534			—			16,794			—
Purchase price fair value adjustment	—			475,102			—			488,890
Loss on investment in marketable securities	—			(6		)	—			(133		)
Depreciable real estate reserves, net of recoveries	5,789			—			5,789			—
Gain on early extinguishment of debt	—			971			—			971
Income from continuing operations	118,457			501,426			147,065			593,444
Net (loss) income from discontinued operations	—			1,676			(78		)	3,549
Gain on sale of discontinued operations	—			46,085			6,627			46,085
Net income	118,457			549,187			153,614			643,078
Net income attributable to noncontrolling interests in the operating partnership	(3,421		)	(11,925		)	(4,309		)	(13,776		)
Net income attributable to noncontrolling interests in other partnerships	(3,887		)	(3,259		)	(4,958		)	(6,869		)
Preferred units distributions	(565		)	—			(962		)	—
Net income attributable to SL Green	110,584			534,003			143,385			622,433
Preferred stock dividends	(7,544		)	(7,545		)	(15,089		)	(15,089		)
Net income attributable to SL Green common stockholders	$	103,040		$	526,458		$	128,296		$	607,344
Amounts attributable to SL Green common stockholders:
Income from continuing operations	$	93,833		$	15,324		$	105,718		$	80,803
Purchase price fair value adjustment	—			464,445			—			478,012
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	9,207			—			16,244			—
Net (loss) income from discontinued operations	—			1,638			(76		)	3,469
Gain on sale of discontinued operations	—			45,051			6,410			45,060
Net income	$	103,040		$	526,458		$	128,296		$	607,344
Basic earnings per share:
Net income from continuing operations before discontinued operations	$	1.05		$	5.74		$	1.20		$	6.85
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate	0.10			—			0.18			—
Net income from discontinued operations	—			0.02			—			0.04
Gain on sale of discontinued operations	—			0.54			0.07			0.55
Net income attributable to SL Green common stockholders	$	1.15		$	6.30		$	1.45		$	7.44
Diluted earnings per share:
Net income from continuing operations before discontinued operations	$	1.04		$	5.70		$	1.20		$	6.81
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate	0.10			—			0.18			—
Net income from discontinued operations	—			0.02			—			0.04
Gain on sale of discontinued operations	—			0.54			0.07			0.55
Net income attributable to SL Green common stockholders	$	1.14		$	6.26		$	1.45		$	7.40
Dividends per share	$	0.25		$	0.10		$	0.50		$	0.20
Basic weighted average common shares outstanding	89,789			83,578			88,265			81,632
Diluted weighted average common shares and common share equivalents outstanding	93,351			86,010			91,766			83,995

The accompanying notes are an integral part of these financial statements.

4

SL Green Realty Corp.

Consolidated Statements of Comprehensive Income

(Unaudited, and amounts in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Net income	$	118,457		$	549,187		$	153,614		$	643,078
Other comprehensive income (loss):
Net unrealized gain (loss) on derivative instruments	(11		)	(3,940		)	303			(2,991		)
SL Green’s share of joint venture net unrealized gain (loss) on derivative instruments	(3,637		)	888			(836		)	3,389
Unrealized gain (loss) on marketable securities	(542		)	(5,719		)	228			566
Other comprehensive income (loss)	(4,190		)	(8,771		)	(305		)	964
Comprehensive income	114,267			540,416			153,309			644,042
Comprehensive income attributable to noncontrolling interests	(7,720		)	(14,989		)	(9,892		)	(20,538		)
Comprehensive income attributable to SL Green common stockholders	$	106,547		$	525,427		$	143,417		$	623,504

The accompanying notes are an integral part of these financial statements.

5

SL Green Realty Corp.

Consolidated Statement of Equity

(Unaudited, and amounts in thousands, except per share data)

	SL Green Realty Corp. Stockholders
	Series C		Series D		Common Stock			Additional					Accumulated Other
	Preferred Stock		Preferred Stock		Shares	Par Value		Paid- In-Capital		Treasury Stock			Comprehensive Loss			Retained Earnings			NoncontrollingInterests			Total
Balance at December 31, 2011	$	274,022	$	96,321	85,783	$	892	$	4,236,959	$	(308,708	)	$	(28,445	)	$	1,704,506		$	477,762		$	6,453,309
Net income after allocation to noncontrolling interests in SLGOP																143,385			4,958			148,343
Comprehensive Income:													32									32
Preferred dividends																(15,089		)				(15,089		)
Redemption of units and DRIP proceeds					1,311	13		100,011														100,024
Reallocation of noncontrolling interest in the Operating Partnership																(46,810		)				(46,810		)
Deferred compensation plan & stock award, net					67	3		541		(11,158		)										(10,614		)
Amortization of deferred compensation plan								13,208														13,208
Proceeds from issuance of common stock					2,640	27		201,280														201,307
Proceeds from stock options exercised					137	1		5,653														5,654
Consolidation of joint venture interest																			18,799			18,799
Cash distributions to noncontrolling interests																			(11,999		)	(11,999		)
Cash distribution declared ($0.50 per common share, none of which represented a return of capital for federal income tax purposes)																(44,832		)				(44,832		)
Balance at June 30, 2012	$	274,022	$	96,321	89,938	$	936	$	4,557,652	$	(319,866	)	$	(28,413	)	$	1,741,160		$	489,520		$	6,811,332

The accompanying notes are an integral part of these financial statements.

6

SL Green Realty Corp.

Consolidated Statements of Cash Flows

(Unaudited, and amounts in thousands)

	Six Months Ended
	June 30,
	2012			2011
Operating Activities
Net income	$	153,614		$	643,078
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	162,028			136,355
Depreciable real estate reserves, net of recoveries	(5,789		)	—
Equity in net income from unconsolidated joint ventures	(69,330		)	(10,390		)
Equity in net gain on sale of interest in unconsolidated joint venture	(16,794		)	—
Gain on sale of discontinued operations	(6,627		)	(46,085		)
Distributions of cumulative earnings from unconsolidated joint ventures	77,981			7,866
Purchase price fair value adjustment	—			(488,890		)
Gain on sale of debt securities	—			(19,840		)
Loan loss and other investment reserves, net of recoveries	564			(1,870		)
Loss on investments in marketable securities	—			133
Gain on early extinguishment of debt	—			(971		)
Deferred rents receivable	(37,318		)	(44,343		)
Other non-cash adjustments	3,759			3,774
Changes in operating assets and liabilities:
Restricted cash — operations	(7,104		)	15,487
Tenant and other receivables	(5,006		)	(841		)
Related party receivables	(3,792		)	1,157
Deferred lease costs	(28,549		)	(14,534		)
Other assets	(27,176		)	5,169
Accounts payable, accrued expenses and other liabilities	9,609			(5,323		)
Deferred revenue and land leases payable	(2,135		)	(3,084		)
Net cash provided by operating activities	197,935			176,848
Investing Activities
Acquisitions of real estate property	(248,468		)	(331,972		)
Additions to land, buildings and improvements	(76,585		)	(57,442		)
Escrowed cash — capital improvements/acquisition deposits	(65,030		)	46,861
Investments in unconsolidated joint ventures	(131,820		)	(60,321		)
Distributions in excess of cumulative earnings from unconsolidated joint ventures	44,172			102,089
Net proceeds from disposition of real estate/joint venture interest	26,099			150,893
Other investments	(31,206		)	631
Debt and preferred equity and other investments, net of repayments/participations	(75,209		)	84,528
Net cash used in investing activities	(558,047		)	(64,733		)
Financing Activities
Proceeds from mortgages and other loans payable	1,113,500			690,000
Repayments of mortgages and other loans payable	(472,288		)	(744,873		)
Proceeds from revolving credit facility and senior unsecured notes	468,339			725,079
Repayments of revolving credit facility and senior unsecured notes	(840,793		)	(962,395		)
Proceeds from stock options exercised and DRIP issuance	105,195			7,097
Net proceeds from sale of common stock	201,307			419,463
Purchase of treasury stock	(11,158		)	(4,197		)
Distributions to noncontrolling interests in other partnerships	(11,999		)	(133,712		)
Contributions from noncontrolling interests in other partnerships	18,799			—
Distributions to noncontrolling interests in Operating Partnership	(1,561		)	(382		)
Dividends paid on common and preferred stock	(59,155		)	(31,662		)
Deferred loan costs and capitalized lease obligation	(31,467		)	(19,134		)
Net cash provided by (used in) financing activities	478,719			(54,716		)
Net increase in cash and cash equivalents	118,607			57,399
Cash and cash equivalents at beginning of period	138,192			332,830
Cash and cash equivalents at end of period	$	256,799		$	390,229

The accompanying notes are an integral part of these financial statements.

7

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

1.  Organization and Basis of Presentation

SL Green Realty Corp., which is referred to as the Company or SL Green, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities.  The Operating Partnership received a contribution of interest in the real estate properties, as well as 95% of the economic interest in the management, leasing and construction companies, which is referred to as the Service Corporation, a consolidated variable interest entity.  All of the management, leasing and construction services with respect to the properties which are wholly-owned by us are conducted through SL Green Management LLC which is 100% owned by our Operating Partnership.  The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT.  A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to minimize the payment of Federal income taxes at the corporate level.  Unless the context requires otherwise, all references to the “we,” “our” and “us” means the Company and all entities owned or controlled by the Company, including the Operating Partnership.

Substantially all of our assets are held by, and our operations are conducted through, the Operating Partnership.  The Company is the sole managing general partner of the Operating Partnership.  As of June 30, 2012, noncontrolling investors held, in the aggregate, a 3.7% limited partnership interest in the Operating Partnership.  We refer to these interests as the noncontrolling interests in the Operating Partnership.  See Note 13, “Noncontrolling Interests in Operating Partnership.”

Reckson Associates Realty Corp., or Reckson, and Reckson Operating Partnership, L.P., or ROP, are wholly-owned subsidiaries of the Operating Partnership.

As of June 30, 2012, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan, a borough of New York City, or Manhattan.  Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:

Location	Ownership	Number of Properties	Square Feet	Weighted Average Occupancy(1)
Manhattan	Consolidated properties	27	18,644,945	93.1	%
	Unconsolidated properties	7	5,326,815	95.7	%
Suburban	Consolidated properties	25	3,863,000	80.6	%
	Unconsolidated properties	6	2,941,700	93.1	%
		65	30,776,460	92.0	%

(1)The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

We also owned investments in 13 stand-alone retail properties encompassing approximately 398,686 square feet, eight development properties encompassing approximately 2,614,996 square feet, two residential properties encompassing 385 units (approximately 430,482 square feet) and two land interests as of June 30, 2012.  In addition, we manage three office properties owned by third parties and affiliated companies encompassing approximately 0.9 million rentable square feet. As of June 30, 2012, we also held $982.2 million in debt and preferred equity investments.

Partnership Agreement

In accordance with the partnership agreement of the Operating Partnership, or the Operating Partnership agreement, we allocate all distributions and profits and losses in proportion to the percentage ownership interests of the respective partners.  As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to minimize any Federal income or excise tax at the Company level. Under the Operating Partnership agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of our common stock on a one-for-one basis.

Basis of Quarterly Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.

8

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the financial position of the Company at June 30, 2012, and the results of operations for the periods presented have been included.  The 2012 operating results for the period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.  These financial statements should be read in conjunction with the financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2011.

The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

2.  Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as debt and preferred equity investments.  See Notes 5, “Debt and Preferred Equity Investments” and 6, “Investment in Unconsolidated Joint Ventures.”  All significant intercompany balances and transactions have been eliminated.

The Financial Accounting Standards Board, or FASB, guidance for determining whether an entity is a variable interest entity, or VIE, requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent.  Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and modified the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and noncontrolling interests.

We assess the accounting treatment for each joint venture and debt and preferred equity investment.  This assessment includes a review of each joint venture or limited liability company agreement to determine which party has what rights and whether those rights are protective or participating.  For all VIE’s, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance.  In situations where we or our partner approves, among other things, the annual budget, receives a detailed monthly reporting package from us, meets on a quarterly basis to review the results of the joint venture, reviews and approves the joint venture’s tax return before filing, and approves all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture.  Our joint venture agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

Investment in Commercial Real Estate Properties

On a periodic basis, we assess whether there are any indicators that the value of our real estate properties may be impaired or that their carrying value may not be recoverable.  A property’s value is considered impaired if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property is less than the carrying value of the property.  To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property.  In addition, we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value.  We evaluate our equity investments for impairment based on the joint venture’s projected discounted cash flows. In November 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of one of our equity investments. In June 2012, we reversed this entire impairment charge. See Note 6, “Investments in Unconsolidated Joint Ventures.” No impairment charge was recorded during the three or six months ended June 30, 2012 and 2011. We do not believe that the value of any of our consolidated properties or equity investments was impaired at June 30, 2012 and December 31, 2011.

We allocate the purchase price of real estate to land and building and, if determined to be material, intangibles, such as the value of

9

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

above-, below- and at-market leases and origination costs associated with the in-place leases.  We depreciate the amount allocated to building and other intangible assets over their estimated useful lives, which generally range from three to 40 years and from one to 14 years, respectively.  The values of the above- and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the associated lease, which generally range from one to 14 years.  The value associated with in-place leases is amortized over the expected term of the associated lease, which generally ranges from one to 14 years.  If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off.  The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date).  We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information.  Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below market and determined to be material, we amortized such below market lease value into rental income over the renewal period.

We recognized an increase of approximately $2.7 million, $4.9 million, $5.1 million, $12.3 million in rental revenue for the three and six months ended June 30, 2012 and 2011, respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties.  We recognized an increase/(reduction) in interest expense for the amortization of the above-market rate mortgages assumed of approximately $1.6 million, $0.6 million, $(1.7) million and $(3.0) million for the three and six months ended June 30, 2012 and 2011, respectively.

The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) (amounts in thousands):

	June 30, 2012			December 31, 2011
Identified intangible assets (included in other assets):
Gross amount	$	733,250		$	673,495
Accumulated amortization	(233,003		)	(193,442		)
Net	$	500,247		$	480,053
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	656,441		$	622,029
Accumulated amortization	(327,986		)	(290,893		)
Net	$	328,455		$	331,136

Fair Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy).

We determined the fair value of our current investments in marketable securities using Level 1, Level 2 and Level 3 inputs. Additionally, we determined the valuation allowance for loan losses based on Level 3 inputs. See Note 5, “Debt and Preferred Equity Investments.”

The estimated fair values of tangible and intangible assets and liabilities recorded in connection with business combinations are based on Level 3 inputs. We estimate fair values based on cash flow projections utilizing appropriate discount and/or capitalization rates and available market information.

We determine impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as Level 3 inputs.

We use the following methods and assumptions in estimating fair value disclosures for financial instruments.

·Cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and other assets and liabilities:  The carrying amount of cash and cash equivalents, restricted cash, accounts

10

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

receivable, accounts payable and accrued expenses, and other assets and liabilities reported in our consolidated balance sheets approximates fair value due to the short-term nature  of these instruments.

·Debt and preferred equity investments:  The fair value of debt and preferred equity investments is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. See “Reserve for Possible Credit Losses” below regarding valuation allowances for loan losses.

·Mortgage and other loans payable and other debt:  The fair value of borrowings is estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

The methodologies used for valuing financial instruments have been categorized into three broad levels as follows:

Level 1 — Quoted prices in active markets for identical instruments.

Level 2 — Valuations based principally on other observable market parameters, including

·         Quoted prices in active markets for similar instruments,

·         Quoted prices in less active or inactive markets for identical or similar instruments,

·Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and

·         Market corroborated inputs (derived principally from or corroborated by observable market data).

Level 3 — Valuations based significantly on unobservable inputs.

·Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.

·Valuations based on internal models with significant unobservable inputs.

These levels form a hierarchy. We follow this hierarchy for our financial instruments measured at fair value on a recurring and nonrecurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.

Investment in Marketable Securities

We invest in marketable securities. At the time of purchase, we are required to designate a security as held-to-maturity, available-for-sale, or trading depending on ability and intent. We do not have any securities designated as held-to-maturity or trading at this time. Securities available-for-sale are reported at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss.  Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. Included in accumulated other comprehensive loss at June 30, 2012 is approximately $7.1 million in net unrealized gains related to marketable securities.

The cost of bonds and marketable securities sold is determined using the specific identification method.

At June 30, 2012 and December 31, 2011, we held the following marketable securities (amounts in thousands):

	June 30,		December 31,
	2012		2011
Level 1 — Equity marketable securities	$	8,065	$	8,065
Level 2 — Commercial mortgage-backed securities	11,636		13,369
Level 3 — Rake bonds	3,801		3,889
Total marketable securities available-for-sale	$	23,502	$	25,323

The cost basis of the Level 3 securities was $3.8 million at June 30, 2012 and $3.9 million at December 31, 2011. There were no sales of Level 3 securities during the six months ended June 30, 2012. The Level 3 securities mature at various times through 2030.

Revenue Recognition

Interest income on debt and preferred equity investments is recognized over the life of the investment using the effective interest method and recognized on the accrual basis.  Fees received in connection with loan commitments are deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield.  Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield.  Fees on commitments that expire unused are recognized at expiration.

11

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

Income recognition is generally suspended for debt and preferred equity investments at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of income and principal becomes doubtful.  Income recognition is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. Several of the debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management’s determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount.

Reserve for Possible Credit Losses

The expense for possible credit losses in connection with debt and preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality.  Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions.  Based upon these factors, we establish the provision for possible credit losses on each individual investment.  When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired.

Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral.  Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense.  The write-off of the reserve balance is called a charge off.  We recorded loan loss reserves of zero, $3.0 million, $2.5 million and $2.5 million on investments being held to maturity during the three and six months ended June 30, 2012 and 2011, respectively.  We also recorded recoveries of approximately zero, $2.4 million, $1.2 million and $4.4 million during the three and six months ended June 30, 2012 and 2011, respectively, in connection with the sale of investments. This is included in Loan loss and other investment reserves, net of recoveries in the accompanying Consolidated Statements of Income.

Debt and preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale.  In such situations, the investment will be reclassified at its net carrying value to debt and preferred equity investments held to maturity.  For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment.

Income Taxes

We are taxed as a REIT under Section 856(c) of the Code. As a REIT, we generally are not subject to Federal income tax.  To maintain our qualification as a REIT, we must distribute at least 90% of our REIT taxable income to our stockholders and meet certain other requirements.  If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income tax on our taxable income at regular corporate rates.  We may also be subject to certain state, local and franchise taxes.  Under certain circumstances, Federal income and excise taxes may be due on our undistributed taxable income.

Pursuant to amendments to the Code that became effective January 1, 2001, we have elected, and may in the future elect, to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or a TRS.  In general, a TRS of ours may perform non-customary services for our tenants, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business.  Our TRSs generate income, resulting in Federal income tax liability for these entities.  Our TRSs did not record any Federal, state and local tax provision during either of the six months ended June 30, 2012 and 2011, respectively, and made estimated tax payments of zero and $0.1 million during the six months ended June 30, 2012 and 2011, respectively.

We follow a two-step approach for evaluating uncertain tax positions.  Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination.  Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement.  Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained.  The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Stock-Based Employee Compensation Plans

We have a stock-based employee compensation plan, described more fully in Note 12, “Equity”.

The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable.  In addition, option valuation models require the input of highly subjective assumptions

12

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

including the expected stock price volatility.  Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options.

Compensation cost for stock options, if any, is recognized ratably over the vesting period of the award.  Our policy is to grant options with an exercise price equal to the quoted closing market price of our stock on the grant date.  Awards of stock or restricted stock are expensed as compensation over the benefit period based on the fair value of the stock on the grant date.

For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date the Compensation Committee authorizes the award and adopts any relevant performance measures. For programs with performance or market measures, the total estimated compensation cost is based on the fair value of the award at the applicable reporting date estimated using a binomial model. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of Company common stock, at the current quoted market price, from certain key employee to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.

Awards can also be made in the form of a separate series of units of limited partnership interest in our Operating Partnership called long-term incentive plan units, or LTIP units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of our common stock at the time of grant, and are subject to such conditions and restrictions as our compensation committee may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.

Earnings per Share

We present both basic and diluted earnings per share, or EPS.  Basic EPS excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount.  This also includes units of limited partnership interest. The dilutive effect of the outstanding nonvested shares of common stock, or nonvested shares, and restricted stock units, or RSUs, that have not yet been granted but are contingently issuable under the share-based compensation programs is reflected in the weighted average diluted shares calculation by application of the treasury stock method at the beginning of the quarterly period in which all necessary conditions have been satisfied. The dilutive effect of stock options is reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior debentures as the conversion premium will be paid in cash.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable.  We place our cash investments in excess of insured amounts with high quality financial institutions.  The collateral securing our debt and preferred equity investments is primarily located in the New York Metropolitan area. See Note 5, “Debt and Preferred Equity Investments.” We perform ongoing credit evaluations of our tenants and require most tenants to provide security deposits or letters of credit.  Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space.  Although the properties in our real estate portfolio are primarily located in Manhattan, we also have properties located in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.  The tenants located in our buildings operate in various industries.  Other than three tenants who account for approximately 7.4%, 6.9% and 6.0% of our share of annualized cash rent, respectively, no other tenant in our portfolio accounted for more than 1.9% of our annualized cash rent, including our share of joint venture annualized cash rent at June 30, 2012. Approximately 9%, 5%, 6% and 6% of our annualized cash rent, including our share of joint venture annualized cash rent, was attributable to 1515 Broadway, 420 Lexington Avenue, 1185 Avenue of the Americas and One Madison Avenue, respectively, for the three months ended June 30, 2012.  In addition, two debt and preferred equity investments accounted for more than 10.0% of the

13

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

income earned on debt and preferred equity investments during the three months ended June 30, 2012.

14

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

Reclassification

Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations.

Accounting Standards Updates

In May 2011, the FASB issued updated guidance on fair value measurement which amends U.S. GAAP to conform to IFRS measurement and disclosure requirements.  The amendments change the wording used to describe the requirements in U.S. GAAP for measuring fair value, changes certain fair value measurement principles and enhances disclosure requirements.  This guidance was effective as of the first quarter of 2012 and its adoption did not have a material effect on our consolidated financial statements.

In June 2011, the FASB issued guidance to increase the prominence of other comprehensive income in the financial statements. The standard gives businesses two options for presenting other comprehensive income, or OCI, which previously had been included within the statement of equity. An OCI statement may be included with the statement of income, and together the two will make a statement of total comprehensive income. Alternatively, businesses may have an OCI statement separate from the statement of income, but the two statements will have to appear consecutively within a financial report. These requirements related to the presentation of OCI became effective for interim and annual reporting periods beginning after December 15, 2011. We adopted this guidance and presented a separate Statement of Comprehensive Income in our consolidated financial statements. In December 2011, the FASB temporarily delayed those requirements that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. During the deferral period, the FASB plans to re-evaluate the requirement, with a final decision expected in 2012.

In December 2011, the FASB issued guidance that concluded when a parent ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt, the reporting entity must apply the accounting guidance for sales of real estate to determine whether it should derecognize the in substance real estate. The reporting entity is precluded from derecognizing the real estate until legal ownership has been transferred to the lender to satisfy the debt. The guidance is effective for calendar year-end public and nonpublic companies in 2013 and is to be applied on a prospective basis. Early adoption of the guidance is permitted. Adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

3.  Property Acquisitions

2012 Acquisitions

In June 2012, we acquired a 215,000 square foot mixed-use office and retail building at 304 Park Avenue South for $135.0 million. The property was acquired with approximately $102.0 million in cash and $33.0 million in units of limited partnership interest in the Operating Partnership. We are currently in the process of analyzing the fair value of the in-place leases; and consequently, no value has yet been assigned to the leases. Therefore, the purchase price allocation is preliminary and subject to change.

In October 2011, we formed a joint venture with Stonehenge Partners and, in January 2012, we acquired five retail and two multifamily properties in Manhattan for $193.1 million, inclusive of the issuance of $47.6 million aggregate liquidation preference of 4.5% Series G preferred units of limited partnership interest in the Operating Partnership. Simultaneous with the closing, we financed the residential component, which encompasses 385 units and 488,000 square feet, with an aggregate 12-year $100.0 million fixed rate mortgage which bears interest at 4.125% and one of the retail properties was financed with a 5-year $8.5 million mortgage. We hold an 80% interest in this joint venture which we consolidate as it is a VIE and we have been designated as the primary beneficiary.

15

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these 2012 acquisitions (amounts in thousands):

	Stonehenge Properties
	(Preliminary)
Land	$	65,723
Building	122,049
Above market lease value	598
Acquired in-place leases	9,038
Other assets, net of other liabilities	2,278
Assets acquired	199,686
Fair value adjustment to mortgage note payable	—
Below market lease value	6,578
Liabilities assumed	6,578
Purchase price allocation	$	193,108
Net consideration funded by us at closing	$	78,121
Equity and/or debt investment held	$	—
Debt assumed	$	—

2011 Acquisitions

In November 2011, we acquired all of the interests in 51 East 42nd Street, a 142,000 square-foot office building for approximately $80.0 million, inclusive of the issuance of $2.0 million aggregate liquidation preference of 6.0% Series H preferred units of limited partnership interest in the Operating Partnership.

In November 2011, we, along with The Moinian Group, formed a joint venture to recapitalize 180 Maiden Lane, a fully-leased, 1.1 million-square-foot Class A office tower. The consideration for our 49.9 percent stake in the joint venture included $41.0 million in cash and Operating Partnership units valued at $31.7 million. In connection with the issuance of these Operating Partnership units, we recorded an $8.3 million fair value adjustment due to changes in our stock price. Simultaneous with the closing of the recapitalization, the joint venture refinanced the existing $344.2 million indebtedness with a five-year $280-million mortgage. We consolidate this joint venture due to the control we exert over leasing activities at the property. We consolidate this joint venture as it is a VIE and we have been designated as the primary beneficiary.

In May 2011, we acquired a substantial ownership interest in the 205,000-square-foot office condominium at 110 East 42nd Street, along with control of the asset. We had previously provided a $16.0 million senior mezzanine loan as part of our sale of the condominium unit in 2007. The May 2011 transaction included a consensual modification of that loan. In conjunction with the transaction, we successfully restructured the in-place mortgage financing, which had previously been in default.

In April 2011, we purchased SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ’s, 31.5% economic interest in 1515 Broadway, thereby consolidating full ownership of the 1,750,000 square foot building. The transaction valued the consolidated interests at $1.23 billion. This valuation was based on a negotiated sales agreement and took into consideration such factors as whether this was a distressed sale and whether a minority discount was warranted. We acquired the interest subject to the $458.8 million mortgage encumbering the property. We recognized a purchase price fair value adjustment of $475.1 million upon the closing of this transaction. This property, which we initially acquired in May 2002, was previously accounted for as an investment in unconsolidated joint ventures.

In January 2011, we purchased City Investment Fund, or CIF’s, 49.9% interest in 521 Fifth Avenue, thereby assuming full ownership of the 460,000 square foot building. The transaction valued the consolidated interests at approximately $245.7 million, excluding $4.5 million of cash and other assets acquired. We acquired the interest subject to the $140.0 million mortgage encumbering the property. We recognized a purchase price fair value adjustment of $13.8 million upon the closing of this transaction. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR.  In connection with that refinancing, we acquired the fee interest in the property for $15.0 million.

The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these 2011 acquisitions (amounts in thousands):

16

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

	51 East 42nd Street		180 Maiden Lane		110 East 42nd Street		1515 Broadway			521 Fifth Avenue
Land	$	44,095	$	191,523	$	34,000	$	462,700		$	110,100
Building	33,470		233,230		46,411		707,938			146,686
Above market lease value	5,616		7,944		823		18,298			3,318
Acquired in-place leases	4,333		29,948		5,396		98,661			23,016
Other assets, net of other liabilities	—		—		—		27,127			—
Assets acquired	87,514		462,645		86,630		1,314,724			283,120
Fair value adjustment to mortgage note payable	—		—		—		(3,693		)	—
Below market lease value	7,514		20,320		2,326		84,417			25,977
Liabilities assumed	7,514		20,320		2,326		80,724			25,977
Purchase price allocation	$	80,000	$	442,325	$	84,304	$	1,234,000		$	257,143
Net consideration funded by us at closing	$	81,632	$	81,835	$	2,744	$	259,228		$	70,000
Equity and /or debt investment held	—		—		$	16,000	$	40,942		$	41,432
Debt assumed	$	—	$	—	$	65,000	$	458,767		$	140,000

4.  Property Dispositions and Assets Held for Sale

An entity that holds the property which served as collateral for our loan position, which is collateralized by a property in London, was determined to be a VIE under a reconsideration event and we have been determined to be the primary beneficiary. As a result of this determination, we consolidated the entity and reclassified the investment to assets held for sale on the consolidated balance sheet at June 30, 2012.

In February 2012, we sold our leased fee interest at 292 Madison Avenue for $85.0 million. We recognized a gain of $6.6 million on the sale.

In May 2011, we sold our property located at 28 West 44th Street for $161.0 million. The property is approximately 359,000 square feet. We recognized a gain of $46.1 million on the sale.

Discontinued operations included the results of operations of real estate assets sold prior to June 30, 2012. This included 28 West 44th Street, which was sold in May 2011, and 292 Madison Avenue, which was sold in February 2012.

The following table summarizes income from discontinued operations for the three and six months ended June 30, 2012 and 2011, respectively (amounts in thousands).

	Three MonthsEnded		Three Months Ended		Six MonthsEnded			Six Months Ended
	June 30,		June 30,		June 30,			June 30,
	2012		2011		2012			2011
Revenues
Rental revenue	$	—	$	3,194	$	516		$	8,735
Escalation and reimbursement revenues	—		219		—			873
Other income	—		56		—			60
Total revenues	—		3,469		516			9,668
Operating expense	—		498		(3		)	1,645
Real estate taxes	—		188		—			1,034
Interest expense, net of interest income	—		1,101		597			2,604
Amortization of deferred financing costs	—		6		—			160
Depreciation and amortization	—		—		—			676
Total expenses	—		1,793		594			6,119
Net income (loss) from discontinued operations	$	—	$	1,676	$	(78	)	$	3,549

17

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

5.  Debt and Preferred Equity Investments

During the six months ended June 30, 2012 and 2011, our debt and preferred equity investments (net of discounts) increased approximately $159.1 million and $162.9 million, respectively, due to originations, purchases, accretion of discounts and paid-in-kind interest.  We recorded approximately $162.8 million and $544.3 million in repayments, participations, sales, foreclosures and loan loss reserves during those periods, respectively, which offset the increases in debt and preferred equity investments.

As of June 30, 2012 and December 31, 2011, we held the following debt investments with an aggregate weighted average current yield of approximately 9.53% (amounts in thousands):

Loan Type	June 30, 2012 Senior Financing		June 30, 2012 Carrying Value, Net of Discounts			December 31, 2011 Carrying Value, Net of Discounts			Initial Maturity Date
Other Loan	$	15,000	$	3,500		$	3,500		September 2021
Mortgage/Mezzanine Loan(1)	1,109,000		108,549			108,817			March 2017
Mezzanine Loan	165,000		70,864			40,375			November 2016
Junior Participation	133,000		49,000			49,000			June 2016
Mortgage/ Mezzanine Loan	170,397		46,452			46,416			May 2016
Mezzanine Loan	177,000		16,500			17,112			May 2016
Mezzanine Loan	205,000		65,095			64,973			February 2016
Junior Participation(2)(4)	—		—			8,725			—
Junior Participation(3)(4)	—		—			11,000			—
Total fixed rate	$	1,974,397	$	359,960		$	349,918
Mezzanine Loan(5)	$	81,000	$	34,940		$	34,940		October 2016
Mezzanine Loan	55,000		35,000			35,000			July 2016
Mortgage/ Mezzanine Loan	—		36,700			—			February 2015
Mezzanine Loan	45,000		10,000			10,000			January 2015
Mezzanine Loan	170,000		60,000			60,000			August 2014
Mezzanine Loan	62,500		37,500			—			July 2014
Mezzanine Loan(6)	75,000		7,650			7,650			July 2013
Junior Participation(4)	60,250		10,875			10,875			June 2013
Mortgage(7)	28,500		3,000			3,000			February 2013
Mezzanine Loan(8)	796,693		8,392			8,392			August 2012
Mezzanine Loan(9)	467,000		49,900			30,747			July 2012
Mortgage(10)	—		—			86,339			June 2012
Other Loan	—		—			3,196			—
Total floating rate	$	1,840,943	$	293,957		$	290,139
Total	3,815,340		653,917			640,057
Loan loss reserve(4)	—		(7,000		)	(19,125		)	—
	$	3,815,340	$	646,917		$	620,932

(1)Interest is added to the principal balance for this accrual only loan.

(2)This loan was in default and on non-accrual status.  We sold our interest in the loan in February 2012 and recovered $0.4 million against the reserve on this loan.

(3)In March 2012, we sold our interest in this loan and recovered $2.0 million against the reserve on this loan.

(4)Loan loss reserves are specifically allocated to investments.  Our reserves reflect management’s judgment of the probability and severity of losses based on Level 3 data.  We cannot be certain that our judgment will prove to be correct or that reserves will be adequate over time to protect against potential future losses.

(5)As of June 30, 2012, we were committed to fund an additional $15.0 million in connection with this loan.

(6)In November 2011, we entered into a loan participation agreement in the amount of $7.4 million on a $15.0 million mortgage. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

(7)In June 2011, we funded an additional $5.5 million and extended the maturity date of this loan to February 2013. In September 2011, we entered into a loan participation in the amount of $28.5 million on a $31.5 million mortgage. We have assigned our right as servicer to a third party. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

(8)In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 4 to the next table. In June 2012, we acquired an additional 38.6% participation interest in this mezzanine loan. As a result of this acquisition, we have complete control over this position and can, therefore, control any restructuring. This mezzanine loan is on non-accrual status as of January 2012.

(9)As a result of the acquisition of the remaining 50% interest in November 2011 in the joint venture which held an investment in a debt position on the property located at 450 West 33rd Street, we have reclassified our investment as a debt investment. See Note 6, “Investments in Unconsolidated Joint Ventures”. This investment was repaid in full at maturity.

(10)We hold an 88% interest in the consolidated joint venture that acquired this loan. This investment is denominated in British Pounds. This loan was not repaid on its maturity date and was placed in receivership. The entity that holds the property which served as collateral for our loan position was determined to be a VIE under a reconsideration event and we have been determined to be the primary beneficiary. As a result of this determination, we consolidated the entity and reclassified the investment to assets held for sale on the consolidated balance sheet at June 30, 2012.

18

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

Preferred Equity Investments

As of June 30, 2012 and December 31, 2011, we held the following preferred equity investments, with an aggregate weighted average current yield of approximately 11.14% (amounts in thousands):

Type	June 30,  2012 SeniorFinancing		June 30, 2012 Carrying Value, Net of Discounts			December 31, 2011 Carrying Value, Net of Discounts			InitialMandatory Redemption
Preferred equity(1)	$	926,260	$	206,931		$	203,080		July 2016
Preferred equity(1)(2)	56,935		16,042			—			April 2016
Preferred equity(1)(3)(4)	480,000		95,653			141,980			July 2014
Preferred equity(1)(5)	974,673		50,716			51,000			August 2012
Loan loss reserve(6)	—		(34,050		)	(31,050		)	—
	$	2,437,868	$	335,292		$	365,010

(1)The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

(2)We are committed to fund an additional $10.0 million on this loan. As of June 30, 2012, we had funded $0.8 million of this commitment.

(3)This is a fixed rate investment.

(4)This investment was classified as held for sale at June 30, 2009, but as held-to-maturity for all periods subsequent to June 30, 2009.  The reserve previously taken against this loan is being accreted up to the face amount through the maturity date. In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity in 2011. We also made an additional $50.0 million junior preferred equity loan.  This junior preferred equity loan was repaid at par in February 2012.

(5)This investment is on non-accrual status. In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity in 2011. See Note 7 to the prior table. In June 2012, we acquired 100% of the interests in the most senior preferred equity position.

(6)Loan loss reserves are specifically allocated to investments.  Our reserves reflect management’s judgment of the probability and severity of losses based on Level 3 data.  We cannot be certain that our judgment will prove to be correct and that reserves will be adequate over time to protect against potential future losses.

The following table is a rollforward of our total loan loss reserves at June 30, 2012 and December 31, 2011 (in thousands):

	June 30,2012			December 31, 2011
Balance at beginning of year	$	50,175		$	61,361
Expensed	3,000			10,875
Recoveries	(2,436		)	(4,370		)
Charge-offs	(9,689		)	(17,691		)
Balance at end of period	$	41,050		$	50,175

At June 30, 2012 and December 31, 2011, all debt and preferred equity investments, other than as noted above, were performing in accordance with the terms of the loan agreements.

We have determined that we have one portfolio segment of financing receivables at June 30, 2012 and December 31, 2011 comprising commercial real estate, which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling approximately $119.9 million at June 30, 2012 and $108.7 million at December 31, 2011. The nonaccrual balance of financing receivables at June 30, 2012 and December 31, 2011 was $25.1 million and $102.6 million, respectively. No financing receivables were 90 days past due at June 30, 2012. The recorded investment for financing receivables past due 90 days associated with two financing receivables was $17.3 million at December 31, 2011. All financing receivables are individually evaluated for impairment.

19

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

The following table presents impaired loans, which may include non-accrual loans, as of June 30, 2012 and December 31, 2011, respectively (amounts in thousands):

	June 30, 2012						December 31, 2011
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Commercial real estate	$	—	$	—	$	—	$	106,623	$	83,378	$	—
With an allowance recorded:
Commercial real estate	66,112		61,466		41,050		86,121		81,475		50,175
Total	$	66,112	$	61,466	$	41,050	$	192,744	$	164,853	$	50,175

The following table presents the average recorded investment in impaired loans, which may include non-accrual loans and the related investment and preferred equity income recognized during the three and six months ended June 30, 2012 and 2011, respectively (amounts in thousands):

	Three Months EndedJune 30,2012		Three Months EndedJune 30,2011		Six Months EndedJune 30,2012		Six Months EndedJune 30,2011
Average recorded investment in impaired loans	$	69,932	$	201,991	$	74,935	$	223,376
Investment and preferred equity income recognized	2,333		1,551		3,895		6,361

On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We assess credit quality indicators based on the underlying collateral.

6.Investment in Unconsolidated Joint Ventures

We have investments in several real estate joint ventures with various partners, including The City Investment Fund, or CIF, SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ, Canada Pension Plan Investment Board, or CPPIB, a fund managed by JP Morgan Investment Management, or JP Morgan, Prudential Real Estate Investors, or Prudential, Onyx Equities, or Onyx, The Witkoff Group, or Witkoff, Credit Suisse Securities (USA) LLC, or Credit Suisse, Jeff Sutton, or Sutton, Harel Insurance and Finance, or Harel, Louis Cappelli, or Cappelli, The Moinian Group, or Moinian, Vornado Realty Trust (NYSE: VNO), or Vornado, as well as private investors. All the investments below are voting interest entities, except for 3 Columbus Circle and 180/182 Broadway which are VIEs in which we are not the primary beneficiary. Our net equity investment in these two VIEs was $167.2 million and, $161.9 million at June 30, 2012 and December 31, 2011, respectively. As we do not control the joint ventures listed below, we account for them under the equity method of accounting. We assess the accounting treatment for each joint venture on a stand-alone basis. This includes a review of each joint venture or LLC agreement to determine which party has what rights and whether those rights are protective or participating. In situations where we or our partner are involved in some or all of the following: approving the annual budget, receiving a detailed monthly reporting package from us, meeting with us on a quarterly basis to review the results of the joint venture, reviewing and approving the joint venture’s tax return before filing, and approving all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights. Our joint venture agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

20

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

The table below provides general information on each of our joint ventures as of June 30, 2012 (amounts in thousands):

Property	Partner	OwnershipInterest		EconomicInterest		SquareFeet	Acquired	AcquisitionPrice($)(1)
100 Park Avenue	Prudential	49.90	%	49.90	%	834	02/00	95,800
21 West 34th Street	Sutton	50.00	%	50.00	%	30	07/05	22,400
1604-1610 Broadway	Onyx/Sutton	45.00	%	63.00	%	30	11/05	4,400
27-29 West 34th Street	Sutton	50.00	%	50.00	%	41	01/06	30,000
717 Fifth Avenue(10)	Sutton/Nakash	10.92	%	10.92	%	120	09/06	251,900
800 Third Avenue	Private Investors	42.95	%	42.95	%	526	12/06	285,000
One Court Square(9)	JP Morgan	30.00	%	30.00	%	1,402	01/07	533,500
1745 Broadway	Witkoff/SITQ/Lehman Bros.	32.26	%	32.26	%	674	04/07	520,000
1 and 2 Jericho Plaza	Onyx/Credit Suisse	20.26	%	20.26	%	640	04/07	210,000
16 Court Street	CIF	35.00	%	35.00	%	318	07/07	107,500
The Meadows(2)	Onyx	50.00	%	50.00	%	582	09/07	111,500
388 and 390 Greenwich Street(3)	SITQ	50.60	%	50.60	%	2,600	12/07	1,575,000
180/182 Broadway(4)	Harel/Sutton	25.50	%	25.50	%	71	02/08	43,600
600 Lexington Avenue	CPPIB	55.00	%	55.00	%	304	05/10	193,000
11 West 34th Street(5)	Private Investor/Sutton	30.00	%	30.00	%	17	12/10	10,800
7 Renaissance	Cappelli	50.00	%	50.00	%	37	12/10	4,000
3 Columbus Circle(6)	Moinian	48.90	%	48.90	%	769	01/11	500,000
280 Park Avenue(7)	Vornado	50.00	%	50.00	%	1,237	03/11	400,000
1552-1560 Broadway(8)	Sutton	50.00	%	50.00	%	49	08/11	136,550
747 Madison Avenue	Harel/Sutton	33.33	%	33.33	%	10	09/11	66,250
724 Fifth Avenue	Sutton	50.00	%	50.00	%	65	01/12	223,000
10 East 53rd Street	CPPIB	55.00	%	55.00	%	390	02/12	252,500

(1)Acquisition price represents the actual or implied purchase price for the joint venture.

(2)We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009. We recorded a $2.8 million depreciable real estate reserve in 2010 against this joint venture investment.

(3)The property is subject to a 13-year triple-net lease arrangement with a single tenant.  The lease commenced in 2007.

(4)In December 2010, our 180-182 Broadway joint venture with Jeff Sutton announced an agreement with Pace University to convey a long-term ground lease condominium interest to Pace University for 20 floors of student housing.  The joint venture also admitted Harel, which contributed $28.1 million to the joint venture, for a 49% partnership interest. In August 2011, the joint venture sold the property located at 63 Nassau Street for $2.8 million.

(5)In December 2010, our $12.0 million first mortgage collateralized by 11 West 34th Street was repaid at par, resulting in our recognition of additional income of approximately $1.1 million.  Simultaneous with the repayment, the joint venture was recapitalized with the Company having a 30 percent interest. The property is subject to a long-term net lease arrangement.

(6)We issued 306,296 operating partnership units in connection with this investment. We have committed to fund an additional $47.5 million to the joint venture, of which $33.0 million has been funded as of June 30, 2012. This liability is recorded in accrued interest payable and other liabilities. In addition, we made a $125.0 million bridge loan to this joint venture which was bearing interest at a rate of 7.5%. This loan was repaid when the joint venture refinanced its debt in April 2011.

(7)In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30 million of related floating rate financing which matures in June 2016.  In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction which valued the investment at approximately $1.1 billion. We hold an effective 49.5% ownership interest in the joint venture.

(8)In connection with this acquisition, the joint venture also acquired a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. The purchase price relates only to the purchase of the 1552 Broadway interest which comprises 13,045 square feet. In May 2012, we, along with Sutton, acquired the property at 155 West 46th Street for $8.4 million. This property is adjacent to 1552 and 1560 Broadway.

(9)In November 2011, we, along with our joint venture partner, reached an agreement to sell One Court Square to a private investor group for approximately $475.6 million.  The transaction included $315.0 million of existing debt, which will be assumed by the purchaser. In November 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of this investment. This entire impairment charge was reversed in June 2012. On subsequent dates in 2012, the closing date was extended and the purchase price was increased to $481.1 million. This transaction closed on July 18, 2012.

(10)In June 2012, this retail condominium was recapitalized. The recapitalization triggered a promote which resulted in a reduction of our economic interest. In addition, we sold 50% of our remaining interest at a property valuation of $617.6 million. We recognized $67.9 million of additional cash income, equivalent to profit, due to the distribution of refinancing proceeds and a gain on sale of $3.0 million.

In April 2012, we, along with our joint venture partner, Jeff Sutton, sold the property located at 379 Broadway for $48.5 million, inclusive of the fee position which was acquired for $13.5 million. We recognized a gain on sale of this investment of $6.5 million.

21

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

In March 2012, we, along with our joint venture partner, Jeff Sutton, sold the property located at 141 Fifth Avenue for $46.0 million. We recognized a gain on sale of this investment of $7.3 million.

In November 2011, we acquired the remaining 50% interest in the joint venture which held an investment in a debt position on the property located at 450 West 33rd Street. As we own 100% of this investment, we have reclassified it and recorded it as a debt investment. See Note 5, “Debt and Preferred Equity Investments.”

In August 2011, we sold our 10% interest in the joint venture that held 1551-1555 Broadway for approximately $9.7 million. We recognized a gain of $4.0 million on the sale.

We generally finance our joint ventures with non-recourse debt. However, in certain cases we have provided guarantees or master leases for tenant space. These guarantees and master leases terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The first mortgage notes and other loan payable collateralized by the respective joint venture properties and assignment of leases at June 30, 2012 and December 31, 2011, respectively, are as follows (amounts in thousands):

Property	Maturity Date	Interest Rate(1)		June 30, 2012		December 31, 2011
717 Fifth Avenue(9)	06/2024	9.00	%	$	290,000	$	—
717 Fifth Avenue(9)	07/2022	4.45	%	300,000		—
388 and 390 Greenwich Street(2)	12/2017	5.19	%	1,106,756		1,106,757
800 Third Avenue	08/2017	6.00	%	20,910		20,910
1 and 2 Jericho Plaza	05/2017	5.65	%	163,750		163,750
1745 Broadway	01/2017	5.68	%	340,000		340,000
21 West 34th Street	12/2016	5.76	%	100,000		100,000
280 Park Avenue	06/2016	6.57	%	710,000		710,000
11 West 34th Street	01/2016	4.82	%	17,628		17,761
One Court Square	09/2015	4.91	%	315,000		315,000
7 Renaissance	02/2015	10.00	%	856		—
100 Park Avenue	09/2014	6.64	%	213,476		214,625
1604-1610 Broadway(3)	04/2012	5.66	%	27,000		27,000
141 Fifth Avenue	—	—		—		25,000
Total fixed rate debt				$	3,605,376	$	3,040,803
388 and 390 Greenwich Street(2)	12/2017	1.41	%	$	31,622	$	31,622
600 Lexington Avenue	10/2017	2.48	%	125,000		125,000
10 East 53rd Street	02/2017	2.74	%	125,000		—
724 Fifth Avenue	01/2017	2.59	%	120,000		—
Other loan payable	06/2016	1.14	%	30,000		30,000
3 Columbus Circle(4)	04/2016	2.58	%	251,120		254,896
747 Madison Avenue	10/2014	3.00	%	33,125		33,125
180/182 Broadway(5)	12/2013	2.99	%	53,082		30,722
16 Court Street	10/2013	2.74	%	85,290		85,728
1552 Broadway(6)	08/2013	3.24	%	98,321		95,405
27-29 West 34th Street(7)	05/2013	2.24	%	53,650		53,900
The Meadows(8)	09/2012	1.61	%	83,517		84,698
717 Fifth Avenue(9)	—	—		—		245,000
379 West Broadway(10)	—	—		—		20,991
Total floating rate debt				$	1,089,727	$	1,091,087
Total mortgages and other loan payable				$	4,695,103	$	4,131,890

(1)Interest rate represents the effective weighted average interest rate for the quarter ended June 30, 2012.

(2)Comprised of a $576.0 million mortgage and a $562.4 million mezzanine loan, both of which are fixed rate loans, except for $16.0 million of the mortgage and $15.6 million of the mezzanine loan which are floating.  Up to $200.0 million of the mezzanine loan, secured indirectly by these properties, is recourse to us.  We believe it is unlikely that we will be required to perform under this guarantee.

(3)This loan went into default in November 2009 due to the non-payment of debt service.  The joint venture is in discussions with the special servicer to resolve this default.

(4)We provided 50% of a bridge loan to this joint venture. In April 2011, our joint venture with The Moinian Group which owns the property located at 3 Columbus Circle, New York, refinanced the bridge loan and replaced it with a $260.0 million 5-year mortgage with the Bank of China, which carries a floating rate of interest of 210 basis points over the 30-

22

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

day LIBOR, at which point SL Green and Deutsche Bank’s bridge loan was repaid. The joint venture has the ability to increase the mortgage by $40.0 million based on meeting certain performance hurdles. In connection with this obligation, we executed a master lease agreement. Our partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

(5)This loan has a committed amount of $90.0 million.

(6)This loan has a committed amount of $125.0 million.

(7)In April 2012, this loan was extended by 1-year.

(8)This loan has a committed amount of $91.2 million.

(9)This loan was repaid in June 2012 and was replaced with a $300 million mortgage and a $290 million mezzanine loan. See Note 10 to the prior table.

(10)This property was sold in April 2012 and the mortgage was repaid at a discount.

We act as the operating partner and day-to-day manager for all our joint ventures, except for 800 Third Avenue, 1 and 2 Jericho Plaza, 3 Columbus Circle and The Meadows. We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to our joint ventures. We earned approximately $2.4 million, $5.6 million, $2.3 million and $5.7 million from these services for the three and six months ended June 30, 2012 and 2011, respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.

The combined balance sheets for the unconsolidated joint ventures, at June 30, 2012 and December 31, 2011, are as follows (amounts in thousands):

	June 30, 2012		December 31, 2011
Assets
Commercial real estate property, net	$	6,153,652	$	5,699,113
Other assets	668,567		599,596
Total assets	$	6,822,219	$	6,298,709
Liabilities and members’ equity
Mortgages and other loan payable	$	4,695,103	$	4,131,890
Other liabilities	271,289		250,925
Members’ equity	1,855,827		1,915,894
Total liabilities and members’ equity	$	6,822,219	$	6,298,709
Company’s net investment in unconsolidated joint ventures	$	1,014,042	$	893,933

The combined statements of income for the unconsolidated joint ventures, from acquisition date through June 30, 2012 and 2011 are as follows (amounts in thousands):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012		2011			2012		2011
Total revenues	$	124,418	$	113,792		$	244,466	$	237,352
Operating expenses	16,949		16,080			34,633		36,681
Real estate taxes	12,483		12,290			25,857		25,740
Interest expense, net of interest income	53,506		53,587			110,141		101,224
Depreciation and amortization	35,724		33,865			72,507		65,589
Transaction related costs	90		752			358		817
Total expenses	118,752		116,574			243,496		230,051
Net income(loss)	$	5,666	$	(2,782	)	$	970	$	7,301
Company’s equity in net income of unconsolidated joint ventures	$	70,890	$	2,184		$	69,330	$	10,390

The 2012 equity in net income of unconsolidated joint ventures includes $67.9 million of additional income due to the distribution of refinancing proceeds from the recapitalization of 717 Fifth Avenue.

Gramercy Capital Corp.

In April 2004, we formed Gramercy as a commercial real estate finance business.  Gramercy qualified as a REIT for federal income tax purposes and expects to qualify for its current fiscal year.

At June 30, 2012, we held 3.2 million shares, or approximately 6.3% of Gramercy’s common stock.  Our total investment of

23

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

approximately $8.1 million is based on the market value of our common stock investment in Gramercy at June 30, 2012.  As we no longer have any significant influence over Gramercy, we account for our investment as available-for-sale securities.

Effective May 2005, June 2009 and October 2009, Gramercy entered into lease agreements with an affiliate of ours, for their corporate offices at 420 Lexington Avenue, New York, New York.  The first lease is for approximately 7,300 square feet and carries a term of ten years with rents of approximately $249,000 per annum for year one increasing to $315,000 per annum in year ten.  The second lease is for approximately 900 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $35,300 per annum for year one increasing to $42,800 per annum in year six.  The third lease is for approximately 1,400 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $67,300 per annum for year one increasing to $80,500 per annum in year six.

Marc Holliday, our chief executive officer, remains a board member of Gramercy.

7.  Deferred Costs

Deferred costs at June 30, 2012 and December 31, 2011 consisted of the following (amounts in thousands):

	June 30,2012			December 31,2011
Deferred financing	$	145,689		$	113,620
Deferred leasing	262,447			238,394
	408,136			352,014
Less accumulated amortization	(158,989		)	(141,228		)
Deferred costs, net	$	249,147		$	210,786

24

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

8.  Mortgages and Other Loans Payable

The first mortgages and other loans payable collateralized by the respective properties and assignment of leases at June 30, 2012 and December 31, 2011, respectively, were as follows (amounts in thousands):

Property(1)	Maturity Date	Interest Rate(2)		June 30, 2012		December 31, 2011
400 East 57th Street	02/2024	4.13	%	$	70,000	$	—
400 East 58th Street	02/2024	4.13	%	30,000		—
919 Third Avenue(3)	06/2023	5.12	%	500,000		500,000
100 Church	07/2022	4.68	%	230,000		—
One Madison Avenue	05/2020	5.91	%	617,353		626,740
Other loan payable(4)	09/2019	8.00	%	50,000		50,000
885 Third Avenue	07/2017	6.26	%	267,650		267,650
110 East 42nd Street(5)	07/2017	5.81	%	65,000		65,000
2 Herald Square	04/2017	5.36	%	191,250		191,250
485 Lexington Avenue	02/2017	5.61	%	450,000		450,000
120 West 45th Street	02/2017	6.12	%	170,000		170,000
300 Main Street	02/2017	5.75	%	11,500		11,500
762 Madison Avenue	02/2017	3.75	%	8,448		—
Landmark Square	12/2016	4.00	%	85,250		86,000
420 Lexington Avenue(6)	09/2016	7.15	%	186,107		187,182
500 West Putnam	01/2016	5.52	%	24,315		24,563
625 Madison Avenue	11/2015	7.22	%	127,462		129,098
711 Third Avenue	06/2015	4.99	%	120,000		120,000
125 Park Avenue	10/2014	5.75	%	146,250		146,250
609 Partners, LLC(7)	07/2014	5.00	%	23		31,721
220 East 42nd Street	11/2013	5.25	%	188,197		190,431
609 Fifth Avenue	10/2013	5.85	%	94,167		94,963
673 First Avenue	02/2013	5.67	%	29,451		29,906
292 Madison Avenue(8)				—		59,099
Total fixed rate debt				$	3,662,423	$	3,431,353
1515 Broadway(9)	04/2018	3.60	%	$	773,726	$	450,363
180 Maiden Lane(10)	11/2016	2.60	%	275,314		279,332
Other loan payable(11)	06/2013	3.51	%	62,792		62,792
521 Fifth Avenue(12)	04/2013	2.24	%	150,000		150,000
Total floating rate debt				$	1,261,832	$	942,487
Total mortgages and other loans payable				$	4,924,255	$	4,373,840

(1)Held in bankruptcy remote special purpose entity.

(2)Effective contractual interest rate for the quarter ended June 30, 2012.

(3)We own a 51% controlling interest in the joint venture that is the borrower on this loan.  This loan is non-recourse to us.  In June 2011, our joint venture replaced the $219.9 million 6.87% mortgage that was due to mature in August 2011 with a $500.0 million mortgage.

(4)This loan is secured by a portion of a preferred equity investment.

(5)We took control of this property in May 2011 and assumed the mortgage as part of the transaction. This loan consists of a $65.0 million A-tranche and an $18.1 million B-tranche. The B-tranche does not accrue interest and is due only under certain circumstances as described in the loan agreement.

(6)We increased this loan by $40.0 million in March 2011.

(7)As part of an acquisition, we issued 63.9 million units of our 5.0% Series E preferred units, or the Series E units, with a liquidation preference of $1.00 per unit. As of June 30, 2012, 63.8 million Series E units had been redeemed.

(8)This property was sold in February 2012 and the related mortgage, which was included in Liabilities related to assets held for sale, was assumed by the purchaser.

(9)We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011. In April 2012, we refinanced the $447.2 million mortgage that was due in December 2014 with a $775.0 million 7-year mortgage which carries interest at the rate equal to the greater of (a) 285 basis points over 90-day LIBOR or (b) 3.6% per annum.

(10)In connection with this consolidated joint venture obligation, we executed a master lease agreement. Our partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

(11)This loan bears interest at 250 basis points over the three month GBP LIBOR.  This loan is denominated in British Pounds. This loan was included in Liabilities related to assets held for sale on the consolidated balance sheet at June 30, 2012.

(12)We assumed a $140.0 million mortgage in connection with the acquisition of the remaining partnership interest in January 2011. As a result, we have consolidated this investment since January 2011. The mortgage was scheduled to mature in April 2011. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR.

25

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

At June 30, 2012 and December 31, 2011, the gross book value of the properties collateralizing the mortgages and other loans payable was approximately $7.7 billion and $7.4 billion, respectively.

9.  Corporate Indebtedness

2011 Revolving Credit Facility

In November 2011, we entered into a $1.5 billion revolving credit facility, or the 2011 revolving credit facility. The 2011 revolving credit facility bears interest at a spread over LIBOR ranging from 100 basis points to 185 basis points, based on the credit rating assigned to the senior unsecured long-term indebtedness of ROP.  At June 30, 2012, the applicable spread was 150 basis points.  The 2011 revolving credit facility matures in November 2015 and has a one-year as-of-right extension option, subject to certain conditions and the payment of an extension fee of 20 basis points.  We also have an option, subject to customary conditions, without the consent of existing lenders, to increase the capacity under the 2011 revolving credit facility to $1.75 billion at any time prior to the maturity date.  We are required to pay quarterly in arrears a 17.5 to 45 basis point facility fee on the total commitments under the 2011 revolving credit facility, which fee is based on the credit rating assigned to the senior unsecured long-term indebtedness of ROP. As of June 30, 2012, the facility fee was 35 basis points. At June 30, 2012, we had approximately $80.0 million of borrowings and $109.3 million of letters of credit outstanding under the 2011 revolving credit facility, with undrawn capacity of $1.3 billion.

The Company, ROP and the Operating Partnership are all borrowers jointly and severally obligated under the 2011 revolving credit facility.  No other subsidiary of ours is an obligor under the 2011 revolving credit facility.

The 2011 revolving credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

2007 Revolving Credit Facility

The 2011 revolving credit facility replaced our $1.5 billion revolving credit facility, or the 2007 revolving credit facility, which was terminated concurrently with the entering into the 2011 revolving credit facility.  The 2007 revolving credit facility bore interest at a spread over the 30-day LIBOR ranging from 70 basis points to 110 basis points, based on our leverage ratio, and required a 12.5 to 20 basis point fee, also based on our leverage ratio, on the unused balance payable annually in arrears.  The 2007 revolving credit facility included certain restrictions and covenants and, as of the time of the termination of the 2007 revolving credit facility and as of October 31, 2011, we were in compliance with all such restrictions and covenants.

Senior Unsecured Notes

The following table sets forth our senior unsecured notes and other related disclosures by scheduled maturity date as of June 30, 2012 and December 31, 2011, respectively (amounts in thousands):

Issuance	June 30, 2012 Unpaid Principal Balance		June 30, 2012 Accreted Balance		December 31, 2011 Accreted Balance		Coupon Rate(1)		Effective Rate		Term (in Years)	Maturity
March 26, 2007(2)	$	18,003	$	18,003	$	119,423	3.000	%	3.000	%	20	March 30, 2027
June 27, 2005(3)(4)	357		357		657		4.000	%	4.000	%	20	June 15, 2025
March 16, 2010(5)	250,000		250,000		250,000		7.750	%	7.750	%	10	March 15, 2020
August 5, 2011(5)	250,000		249,593		249,565		5.000	%	5.031	%	7	August 15, 2018
October 12, 2010(6)	345,000		282,414		277,629		3.000	%	7.125	%	7	October 15, 2017
March 31, 2006(3)	275,000		274,824		274,804		6.000	%	6.019	%	10	March 31, 2016
August 13, 2004(3)	98,578		98,578		98,578		5.875	%	5.875	%	10	August 15, 2014
	$	1,236,938	$	1,173,769	$	1,270,656

(1)Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

26

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

(2)In March 2007, the Operating Partnership issued $750.0 million of these exchangeable notes.  Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a 25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are currently redeemable at the Operating Partnership’s option.  The Operating Partnership may be required to repurchase the notes on March 30, 2017 and 2022, and upon the occurrence of certain designated events. On March 30, 2012, we repurchased $102.2 million of aggregate principal amount of the exchangeable notes pursuant to a mandatory offer to repurchase the notes. On the issuance date, $66.6 million was recorded in equity and was fully amortized as of March 31, 2012.

(3)Issued by ROP.

(4)Exchangeable senior debentures which are currently callable at  par.  In addition, the debentures can be put to ROP, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions.  As a result of the acquisition of all outstanding shares of common stock of Reckson, or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491.  During the six months ended June 30, 2012, we repurchased $300,000 of these bonds at par.

(5)Issued by us, the Operating Partnership and ROP, as co-obligors.

(6)In October 2010, the Operating Partnership issued $345.0 million of these exchangeable notes.  Interest on these notes is payable semi-annually on April 15 and October 15. The notes have an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. On the issuance date, $78.3 million was recorded in equity.  As of June 30, 2012, approximately $62.6 million remained unamortized.

Junior Subordinate Deferrable Interest Debentures

In June 2005, we issued $100.0 million in unsecured floating rate trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership.  The securities mature in 2035 and bear interest at a fixed rate of 5.61% for the first ten years ending July 2015.  Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments.  The trust preferred securities are redeemable, at the option of the Operating Partnership, in whole or in part, with no prepayment premium.  We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary.  Because the Trust is not consolidated, we have recorded the debt on our balance sheet and the related payments are classified as interest expense.

Restrictive Covenants

The terms of the 2011 revolving credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends (as discussed below), make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the minimum amount of tangible net worth, a maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges and a maximum ratio of unsecured indebtedness to unencumbered asset value.  The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable us to continue to qualify as a REIT for Federal income tax purposes. As of June 30, 2012 and December 31, 2011, we were in compliance with all such covenants.

Principal Maturities

Combined aggregate principal maturities of mortgages and other loans payable, 2011 revolving credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of June 30, 2012, including as-of-right extension options, were as follows (amounts in thousands):

	Scheduled Amortization		Principal Repayments		Revolving Credit Facility		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
2012	$	25,050	$	—	$	—	$	—	$	—	$	25,050	$	56,706
2013	50,910		516,179		—		—		—		567,089		127,516
2014	52,519		146,273		—		—		98,578		297,370		123,984
2015	55,815		229,537		—		—		357		285,709		102,478
2016	55,303		516,896		80,000		—		274,824		927,023		528,305
Thereafter	288,797		2,986,976		—		100,000		800,010		4,175,783		980,761
	$	528,394	$	4,395,861	$	80,000	$	100,000	$	1,173,769	$	6,278,024	$	1,919,750

27

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

Interest expense, excluding capitalized interest, was comprised of the following (amounts in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Interest expense	$	82,728		$	68,711		$	163,275		$	133,463
Interest income	(401		)	(538		)	(811		)	(1,024		)
Interest expense, net	$	82,327		$	68,173		$	162,464		$	132,439
Interest capitalized	$	2,996		$	922		$	5,532		$	2,217

10.  Fair Value of Financial Instruments

The following disclosures of estimated fair value were determined by management using available market information and appropriate valuation methodologies as discussed in Note 2, “Significant Accounting Policies.”  Considerable judgment is necessary to interpret market data and develop estimated fair value.  Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments.  The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and cash equivalents, restricted cash, accounts receivable and accounts payable balances reasonably approximate their fair values due to the short maturities of these items.  Mortgages and other loans payable, junior subordinate deferrable interest debentures and the senior unsecured notes had an estimated fair value based on discounted cash flow models, based on Level 3 inputs, of approximately $5.4 billion, compared to the book value of the related fixed rate debt of approximately $5.0 billion at June 30, 2012.  Our floating rate debt, inclusive of our 2011 revolving credit facility, but excluding $30.0 million of which was swapped, had an estimated fair value based on discounted cash flow models, based on Level 3 inputs, of approximately $1.3 billion, compared to the book value of the related floating rate debt of approximately $1.3 billion at June 30, 2012. Our debt and preferred equity investments had an estimated fair value ranging between $0.8 billion and $0.9 billion, compared to the book value of approximately $1.0 billion at June 30, 2012, based on Level 3 inputs.

Disclosure about fair value of financial instruments is based on pertinent information available to us as of June 30, 2012.  Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

11.  Related Party Transactions

Cleaning/ Security/ Messenger and Restoration Services

Through Alliance Building Services, or Alliance, First Quality Maintenance, L.P., or First Quality, provides cleaning, extermination and related services, Classic Security LLC provides security services, Bright Star Couriers LLC provides messenger services and Onyx Restoration Works provides restoration services with respect to certain properties owned by us.  Alliance is partially owned by Gary Green, a son of Stephen L. Green, the chairman of our board of directors.  In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services.  The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.  Alliance paid the Service Corporation approximately $0.8 million, $1.6 million, $1.0 million and $1.1 million for the three and six months ended June 30, 2012 and 2011, respectively.  We paid Alliance approximately $4.7 million, $8.2 million, $3.5 million and $6.6 million for the three and six months ended June 30, 2012 and 2011, respectively, for these services (excluding services provided directly to tenants).

Marketing Services

A-List Marketing, LLC, or A-List, provides marketing services to us.  Ms. Deena Wolff, a sister of Mr. Marc Holliday, is the owner of A-List. The aggregate amount of fees we paid to A-List for these marketing services was approximately $44,200, $55,900, $40,700 and $66,200 for the three and six months ended June 30, 2012 and 2011, respectively.

Leases

Nancy Peck and Company leases 1,003 square feet of space at 420 Lexington Avenue under a lease that ends in August 2015.  Nancy

28

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

Peck and Company is owned by Nancy Peck, the wife of Stephen L. Green.  The rent due pursuant to the lease was $35,516 per annum for year one increasing to $40,000 in year seven.

Management Fees

S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest.  The aggregate amount of fees paid to S.L. Green Management Corp. from such entity was approximately $110,000, $199,000, $111,000 and $221,000 for the three and six months ended June 30, 2012 and 2011, respectively.

Other

Amounts due from related parties at June 30, 2012 and December 31, 2011 consisted of the following (amounts in thousands):

	June 30, 2012		December 31, 2011
Due from joint ventures	$	515	$	477
Other	7,278		3,524
Related party receivables	$	7,793	$	4,001

Gramercy Capital Corp.

See Note 6, “Investment in Unconsolidated Joint Ventures_Gramercy Capital Corp.” for disclosure on related party transactions between Gramercy and us.

12.  Equity

Common Stock

Our authorized capital stock consists of 260,000,000 shares, $.01 par value, of which we have authorized the issuance of up to 160,000,000 shares of common stock, $.01 par value per share, 75,000,000 shares of excess stock, at $.01 par value per share, and 25,000,000 shares of preferred stock, par value $.01 per share.  As of June 30, 2012, 89,937,501 shares of common stock and no shares of excess stock were issued and outstanding.

In July 2011, we, along with the Operating Partnership, entered into an “at-the-market” equity offering program, or ATM Program, to sell an aggregate of $250.0 million of our common stock. During the six months ended June 30, 2012, we had sold 2.6 million shares of our common stock through the ATM Program for aggregate gross proceeds of approximately $204.6 million ($201.6 million of net proceeds after related expenses). The net proceeds were used to repay debt, fund new investments and for other corporate purposes. As of June 30, 2012, we had $45.4 million available to issue under the ATM Program.

Perpetual Preferred Stock

We have 11,700,000 shares of our 7.625% Series C cumulative redeemable preferred stock, or the Series C preferred stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series C preferred stockholders receive annual dividends of $1.90625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions.  We are entitled to redeem the Series C preferred stock at par for cash at our option.  The Series C preferred stock was recorded net of underwriters discount and issuance costs.

We also had 4,000,000 shares of our 7.875% Series D cumulative redeemable preferred stock, or the Series D preferred stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series D preferred stockholders receive annual dividends of $1.96875 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions.  We are entitled to redeem the Series D preferred stock at par for cash at our option.  The Series D preferred stock was recorded net of underwriters discount and issuance costs. The Series D preferred stock was redeemed in July 2012 in accordance with its terms. See Note 19, “Subsequent Events.”

Dividend Reinvestment and Stock Purchase Plan

In March 2012, we filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRIP, which automatically became effective upon filing. We registered 3,500,000 shares of our common stock under the DRIP. The DRIP commenced on September 24, 2001.

During the six months ended June 30, 2012 and 2011, we issued approximately 1.3 million shares and 87 shares and received approximately $99.5 million and $6,500 of proceeds, respectively, from dividend reinvestments and/or stock purchases under the

29

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

DRIP. DRIP shares may be issued at a discount to the market price.

Second Amended and Restated 2005 Stock Option and Incentive Plan

We have a stock option and incentive plan.  The second Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by our board of directors in April 2010 and our stockholders in June 2010 at our annual meeting of stockholders.  The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights and other equity-based awards.  Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 10,730,000 fungible units may be granted under the 2005 Plan.  Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 1.65 fungible units per share subject to such award (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five year from the date of grant counting as 0.79 fungible units per share subject to such award and (3) all other awards (e.g., ten-year stock options) counting as 1.0 fungible units per share subject to such award.  Awards granted under the 2005 Plan prior to the approval of the second amendment and restatement in June 2010 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios.  As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 10,730,000 shares.  If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards.  Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares.  Currently, unless the 2005 Plan has been previously terminated by the board of directors, new awards may be granted under the 2005 Plan until June 15, 2020, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by our stockholders. As of June 30, 2012, approximately 4.1 million fungible units were available for issuance under the 2005 Plan, or 5.2 million if all fungible units available under the 2005 Plan were issued as five-year stock options.

Options are granted under the plan at the fair market value on the date of grant and, subject to termination of employment, generally expire ten years from the date of grant, are not transferable other than on death, and generally vest in one to five years commencing one year from the date of grant.

The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information with the following weighted average assumptions for grants during the six months ended June 30, 2012 and the year ended December 31, 2011.

	June 30,2012		December 31,2011
Dividend yield	2.00	%	2.00	%
Expected life of option	5.0 years		4.2 years
Risk-free interest rate	0.99	%	1.00	%
Expected stock price volatility	44.00	%	47.98	%

A summary of the status of our stock options as of June 30, 2012 and December 31, 2011 and changes during the periods then ended are presented below:

	June 30, 2012					December 31, 2011
	Options Outstanding			Weighted Average ExercisePrice		Options Outstanding			Weighted Average Exercise Price
Balance at beginning of year	1,277,200			$	63.37	1,353,002			$	58.85
Granted	25,000			68.16		212,400			66.42
Exercised	(137,238		)	42.89		(243,901		)	40.48
Lapsed or cancelled	(25,919		)	66.42		(44,301		)	65.89
Balance at end of period	1,139,043			$	65.89	1,277,200			$	63.37
Options exercisable at end of period	739,287			$	69.32	644,429			$	72.31
Weighted average fair value of options granted during the period	$	557,944				$	4,647,554

All options were granted within a price range of $20.67 to $137.18.  The remaining weighted average contractual life of the options outstanding was 3.66 years and the remaining weighted average contractual life of the options exercisable was 3.74 years.

30

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

During the three and six months ended June 30, 2012 and 2011, we recognized approximately $1.1 million, $2.8 million, $1.0 million and $2.6 million of compensation expense, respectively, for these options. As of June 30, 2012, there was approximately $5.6 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of three years.

Stock-based Compensation

Effective January 1, 1999, we implemented a deferred compensation plan, or the Deferred Plan, covering certain of our employees, including our executives.  The shares issued under the Deferred Plan were granted to certain employees, including our executives, and vesting will occur annually upon the completion of a service period or our meeting established financial performance criteria.  Annual vesting occurs at rates ranging from 15% to 35% once performance criteria are reached.

A summary of our restricted stock as of June 30, 2012 and December 31, 2011 and charges during the respective periods is presented below:

	Six Months Ended June 30,			Year Ended December 31,
Restricted Stock Awards	2012			2011
Balance at beginning of year	2,912,456			2,728,290
Granted	1,694			185,333
Cancelled	(200,284		)	(1,167		)
Balance at end of period	2,713,866			2,912,456
Vested during the period	306,124			66,299
Compensation expense recorded	$	3,715,237		$	17,365,401
Weighted average fair value of restricted stock granted during the period	$	116,369		$	21,768,084

The fair value of restricted stock that vested during the six months ended June 30, 2012 was $16.2 million. As of June 30, 2012, there was $7.3 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of approximately 1.5 years.

For the three and six months ended June 30, 2012 and 2011, approximately $1.0 million, $2.0 million, $0.9 million and $1.9 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.

We granted LTIP units which had a fair value of $8.5 million as a component of 2011 bonus awards. The grant date fair value of the LTIP unit awards was calculated in accordance with ASC 718. A third party consultant determined the fair value of the LTIP units to have a discount from SL Green’s unrestricted common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP units will reach parity with other common partnership units and the illiquidity due to transfer restrictions.

2006 Long-Term Outperformance Compensation Program

In August 2006, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2006 Outperformance Plan.  The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan.

The cost of the 2006 Outperformance Plan (approximately $16.4 million, subject to adjustment for forfeitures) was amortized into earnings through July 31, 2011, the final vesting period.  We recorded compensation expense of approximately $30,000 and $60,000 for the three and six months ended June 30, 2011, respectively, in connection with the 2006 Outperformance Plan. The cost of the 2006 Outperformance Plan had been fully expensed as of the quarter ended September 30, 2011.

2010 Notional Unit Long-Term Compensation Plan

In December 2009, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Program, or the 2010 Long-Term Compensation Plan.  The 2010 Long-Term Compensation Plan is a long-term incentive compensation plan pursuant to which award recipients may earn, in the aggregate, from approximately $15 million up to approximately $75 million of LTIP Units in the Operating Partnership based on our stock price appreciation over three years beginning on December 1, 2009; provided that, if maximum performance has been achieved, approximately $25 million of awards may be earned at any time after the beginning of the second year and an additional

31

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

approximately $25 million of awards may be earned at any time after the beginning of the third year.  The amount of awards earned will range from approximately $15 million if our aggregate stock price appreciation during the performance period is 25% to the maximum amount of approximately $75 million if our aggregate stock price appreciation during the performance period is 50% or greater.  No awards will be earned if our aggregate stock price appreciation is less than 25%.  After the awards are earned, they will remain subject to vesting, with 50% of any LTIP Units earned vesting on January 1, 2013 and an additional 25% vesting on each of January 1, 2014 and 2015 based, in each case, on continued employment through the vesting date.  We will not pay distributions on any LTIP Units until they are earned, at which time we will pay all distributions that would have been paid on the earned LTIP Units since the beginning of the performance period.  In January 2011, the compensation committee determined that under the terms of the 2010 Long-Term Compensation Plan, as of December 5, 2010, maximum performance had been achieved and, accordingly, approximately 366,815 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In January 2012, the compensation committee determined that under the terms of the 2010 Long-Term Compensation Plan, as of December 1, 2011, maximum performance had been achieved and, accordingly, approximately 385,583 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In accordance with the terms of the program, 50% of these LTIP Units will vest on January 1, 2013 and the remainder is scheduled to vest ratably over the subsequent two years based on continued employment.

Overall, the 2010 Long-Term Compensation Plan contemplates maximum potential awards of 1,179,987 LTIP Units and a cap of approximately $75 million when earned.  However, sufficient shares were not available under the 2005 Plan to fund the entire 2010 Long-Term Compensation Plan in December 2009, and the awards granted at that time, in the aggregate, were limited to 744,128 LTIP Units, subject to performance-based and time-based vesting, unless and until additional shares became available under the 2005 Plan prior to the end of the performance period for the 2010 Long-Term Compensation Plan.  At our annual meeting of stockholders on June 15, 2010, our stockholders approved the adoption of the 2005 Plan which, among other things, increased the number of shares available under the plan. That increase allowed us to award the balance of the LTIP Units due under the 2010 Long-Term Compensation Plan. The remaining awards were granted in June 2010. The cost of the 2010 Long-Term Compensation Plan (approximately $31.7 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $1.9 million, $3.7 million, $2.2 million and $4.2 million for the three and six months ended June 30, 2012 and 2011, respectively, related to the 2010 Long-Term Compensation Plan.

2011 Outperformance Plan

In August 2011, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2011 Outperformance Plan, or the 2011 Outperformance Plan. Participants in the 2011 Outperformance Plan may earn, in the aggregate, up to $85 million of LTIP Units in the Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2011. Under the 2011 Outperformance Plan, participants will be entitled to share in a “performance pool” comprised of LTIP Units with a value equal to 10% of the amount, if any, by which our total return to stockholders during the three-year period exceeds a cumulative total return to stockholders of 25%, subject to the maximum of $85 million of LTIP Units; provided that if maximum performance has been achieved, approximately one-third of each award may be earned at any time after the beginning of the second year and an additional approximately one-third of each award may be earned at any time after the beginning of the third year. LTIP Units earned under the 2011 Outperformance Plan will be subject to continued vesting requirements, with 50% of any awards earned vesting on August 31, 2014 and the remaining 50% vesting on August 31, 2015, subject to continued employment with us through such dates. Participants will not be entitled to distributions with respect to LTIP Units granted under the 2011 Outperformance Plan unless and until they are earned. If LTIP Units are earned, each participant will also be entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of additional LTIP Units. Thereafter, distributions will be paid currently with respect to all earned LTIP Units, whether vested or unvested.

As of June 30, 2012, 96.8% of the 2011 Outperformance Plan had been granted. The cost of the 2011 Outperformance Plan for the 96.8% granted (approximately $26.1 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $1.4 million and $2.6 million during the three and six months ended June 30, 2012 related to this program.

Deferred Stock Compensation Plan for Directors

Under our Independent Director’s Deferral Program, which commenced July 2004, our non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees and meeting fees.  Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units.  The phantom stock units are convertible into an equal number of shares of common stock upon such directors’ termination of service from the Board of Directors or a change in control by us, as defined by the program.  Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the applicable dividend record date for the respective quarter.  Each participating non-employee director’s account

32

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

is also credited for an equivalent amount of phantom stock units based on the dividend rate for each quarter.

During the six months ended June 30, 2012, 6,351 phantom stock units were earned.  As of June 30, 2012, there were approximately 73,200 phantom stock units outstanding.

Employee Stock Purchase Plan

On September 18, 2007, our board of directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to increase their efforts to make our business more successful by providing equity-based incentives to eligible employees.  The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase our shares of common stock through payroll deductions.  The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change.  We filed a registration statement on Form S-8 with the SEC with respect to the ESPP.  The common stock is offered for purchase through a series of successive offering periods.  Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008.  The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders.  As of June 30, 2012, approximately 60,527 shares of our common stock had been issued under the ESPP.

Earnings per Share

Earnings per share for the three and six months ended June 30, 2012 and 2011 is computed as follows (amounts in thousands):

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2012		2011		2012		2011
Numerator (Income)
Basic Earnings:
Income attributable to SL Green common stockholders	$	103,040	$	526,458	$	128,296	$	607,344
Effect of Dilutive Securities:
Redemption of units to common shares	3,421		11,925		4,309		13,776
Stock options	—		—		—		—
Diluted Earnings:
Income attributable to SL Green common stockholders	$	106,461	$	538,383	$	132,605	$	621,120

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2012	2011	2012	2011
Denominator (Weighted Average Shares)
Basic Earnings:
Shares available to common stockholders	89,789	83,578	88,265	81,632
Effect of Dilutive Securities:
Redemption of units to common shares	3,193	1,912	3,121	1,858
3.0% exchangeable senior debentures due 2017	—	—	—	—
3.0% exchangeable senior debentures due 2027	—	—	—	—
4.0% exchangeable senior debentures due 2025	—	—	—	—
Stock-based compensation plans	369	520	380	505
Diluted Shares	93,351	86,010	91,766	83,995

We have excluded approximately 729,000, 768,000, 579,000 and 654,000 common stock equivalents from the diluted shares outstanding for the three and six months ended June 30, 2012 and 2011, respectively, as they were anti-dilutive.

13.  Noncontrolling Interests in Operating Partnership

The noncontrolling interest ownership in the Operating Partnership represents interests held by entities other than the Company.  As of June 30, 2012 and December 31, 2011, the noncontrolling interest unit holders owned 3.7% (3,486,389 units) and 3.12% (2,764,737 units) of the Operating Partnership, respectively.  At June 30, 2012, there were also 66,668 performance-based LTIP units outstanding. At June 30, 2012, 3,553,057 shares of our common stock were reserved for issuance upon redemption of units of limited partnership

33

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

interest in the Operating Partnership.

We record the carrying value of the noncontrolling interests in the operating partnership at fair market value based on the closing stock price of our common stock at the end of the reporting period. The carrying value of such noncontrolling interests will not be adjusted below its cost basis.

In January 2012, as part of an acquisition, the Operating Partnership issued 1,902,000 4.5% Series G preferred units of limited partnership interest, or the Series G preferred units, with a liquidation preference of $25.00 per unit. The Series G preferred unitholders receive annual dividends of $1.125 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series G preferred units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) $88.50.  The common units of limited partnership interest in the Operating Partnership may be redeemed in exchange for our common stock on a 1-to-1 basis.  The Series G preferred units also provide the holder with the right to require the Operating Partnership to repurchase the preferred units for cash before January 31, 2022.

In November 2011, as part of an acquisition, the Operating Partnership issued 80,000 6.0% Series H preferred units, or the Series H preferred units, with a mandatory liquidation preference of $25.00 per unit. The Series H preferred unitholders receive annual dividends of $1.50 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series H preferred units can be redeemed at any time at par for cash at the Operating Partnership’s option or the option of the unitholder.

We have included a rollforward analysis of the activity relating to the noncontrolling interests in the Operating Partnership below (amounts in thousands):

	Six Months Ended June 30,2012			Year Ended December 31, 2011
Balance at beginning of period	$	195,030		$	84,338
Distributions	(1,561		)	(1,264		)
Issuance of common units	35,917			60,443
Redemption of common units	(483		)	(865		)
Net income	4,309			14,629
Accumulated other comprehensive income allocation	(337		)	(291		)
Fair value adjustment	46,810			38,040
Balance at end of period	$	279,685		$	195,030

14.  Commitments and Contingencies

We and the Operating Partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business.  Management believes the costs, if any, incurred by us related to this litigation will not materially affect our financial position, operating results or liquidity.

The following is a schedule of future minimum lease payments under capital leases and noncancellable operating leases with initial terms in excess of one year as of June 30, 2012 (amounts in thousands):

June 30,	Capital lease			Non-cancellable operating leases
2012	$	777		$	16,820
2013	1,555			33,641
2014	1,555			33,641
2015	1,593			33,641
2016	1,707			33,745
Thereafter	42,351			630,503
Total minimum lease payments	49,538			$	781,991
Less amount representing interest	(32,390		)
Present value of net minimum lease payments	$	17,148

34

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

15.  Financial Instruments: Derivatives and Hedging

We recognize all derivatives on the balance sheet at fair value.  Derivatives that are not hedges must be adjusted to fair value through earnings.  If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings.  The ineffective portion of a derivative’s change in fair value will be immediately recognized in earnings.  Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows.

The following table summarizes the notional and fair value of our derivative financial instruments and foreign currency hedges at June 30, 2012 based on Level 2 information pursuant to ASC 810-10.  The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (amounts in thousands):

	Notional Value		Strike Rate		Effective Date	Expiration Date	Fair Value
Interest Rate Cap	$	775,000	3.650	%	04/2012	04/2013	$	—
Interest Rate Cap	$	280,000	6.000	%	11/2011	11/2012	$	—
Interest Rate Swap	$	30,000	2.295	%	7/2010	6/2016	$	(1,944	)
Interest Rate Swap	$	8,500	0.740	%	2/2012	2/2015	$	(68	)
Currency Hedge	$	20,748	1.55185	GBP-USD	9/2010	12/2012	$	(170	)

The currency hedge and certain interest rate caps are not designated as a hedging instrument and changes in the value are marked to market through earnings.

On June 30, 2012, the derivative instruments were reported as an obligation at their fair value of approximately $2.2 million.  This is included in Other Liabilities on the consolidated balance sheet at June 30, 2012.  Included in Accumulated Other Comprehensive Loss at June 30, 2012 was approximately $17.5 million from the settlement of hedges, which are being amortized over the remaining term of the related mortgage obligation, and active hedges and our share of joint venture accumulated other comprehensive loss of approximately $18.0 million.  Currently, all of our designated derivative instruments are effective hedging instruments.

In March 2010, we terminated forward swaps which resulted in a net loss of approximately $19.5 million from the settlement of the hedges.  This payment was included in financing activities in the consolidated statement of cash flows.  This loss will be amortized over the 10-year term of the related financing.  This loss is included in the $17.5 million balance noted above. The balance in Accumulated Other Comprehensive Loss relating to derivatives was $35.5 million and $35.4 million at June 30, 2012 and December 31, 2011, respectively.

Over time, the realized and unrealized gains and losses held in Accumulated Other Comprehensive Loss will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings.  We estimate that approximately $1.8 million of the current balance held in Accumulated Other Comprehensive Loss will be reclassified into earnings within the next 12 months.

We are hedging exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on existing debt.

The following table presents the effect of our derivative financial instruments and our share of our joint venture’s derivative financial instruments on the Consolidated Statements of Income for the three months ended June 30, 2012 and 2011, respectively (amounts in thousands):

35

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Three Months Ended						Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Three Months Ended						Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) For the Three Months Ended
Designation\Cash Flow	Derivative	June 30, 2012			June 30, 2011			June 30,2012			June 30, 2011			June 30, 2012			June 30, 2011
Qualifying	Interest Rate Swaps/Caps	$	(6,844	)	$	(6,186	)	$	(3,215	)	$	(3,145	)	$	(1	)	$	(18	)
Non-qualifying	Interest Rate Caps/Currency Hedges	—			—			—			—			380			(127		)

The following table presents the effect of our derivative financial instruments and our share of our joint venture’s derivative financial instruments on the Consolidated Statements of Income for the six months ended June 30, 2012 and 2011, respectively (amounts in thousands):

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Six Months Ended						Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Six Months Ended						Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) For the Six Months Ended
Designation\Cash Flow	Derivative	June 30, 2012			June 30, 2011			June 30,2012			June 30, 2011			June 30, 2012			June 30, 2011
Qualifying	Interest Rate Swaps/Caps	$	(6,923	)	$	(6,304	)	$	(6,416	)	$	(6,216	)	$	(1	)	$	(18	)
Non-qualifying	Interest Rate Caps/Currency Hedges	—			—			—			—			(331		)	(657		)

16.  Environmental Matters

Our management believes that the properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues.  Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows.  Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold.

17.  Segment Information

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

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

Selected results of operations for the three and six months ended June 30, 2012 and 2011, and selected asset information as of June 30,

36

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

2012 and December 31, 2011, regarding our operating segments are as follows (amounts in thousands):

	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues:
Three months ended:
June 30, 2012	$	315,557	$	33,448	$	349,005
June 30, 2011	283,561		15,144		298,705
Six months ended:
June 30, 2012	$	628,411	$	59,786	$	688,197
June 30, 2011	548,104		79,823		627,927
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments:
Three months ended:
June 30, 2012	$	81,910	$	27,013	$	108,923
June 30, 2011	14,358		11,966		26,324
Six months ended:
June 30, 2012	$	82,343	$	47,928	$	130,271
June 30, 2011	28,226		76,328		104,554
Total assets:
As of:
June 30, 2012	$	13,141,444	$	997,669	$	14,139,113
December 31, 2011	12,490,502		993,350		13,483,852

Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income less allocated interest expense for the debt and preferred equity segment.  Interest costs for the debt and preferred equity segment are imputed assuming 100% leverage at our 2011 revolving credit facility borrowing cost.  We also allocated loan loss reserves, net of recoveries to the debt and preferred equity segment.  We do not allocate marketing, general and administrative expenses and transaction related costs (approximately $22.7 million, $44.0 million, $23.7 million and $46.1 million for the three and six months ended June 30, 2012 and 2011, respectively) to the debt and preferred equity segment, since we base performance on the individual segments prior to allocating marketing, general and administrative expenses.  All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.

37

SL Green Realty Corp.

Notes to Consolidated Financial Statements

June 30, 2012

(Unaudited)

The table below reconciles income from continuing operations to net income attributable to SL Green common stockholders for the three and six months ended June 30, 2012 and 2011 (amounts in thousands):

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2012			2011			2012			2011
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments	$	108,923		$	26,324		$	130,271		$	104,554
Purchase price fair value adjustment	—			475,102			—			488,890
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	9,534			—			16,794			—
Income from continuing operations	118,457			501,426			147,065			593,444
Net income (loss) from discontinued operations	—			1,676			(78		)	3,549
Gain on sale of discontinued operations	—			46,085			6,627			46,085
Net income	118,457			549,187			153,614			643,078
Net income attributable to noncontrolling interests in the operating partnership	(3,421		)	(11,925		)	(4,309		)	(13,776		)
Net income attributable to noncontrolling interests in other partnerships	(3,887		)	(3,259		)	(4,958		)	(6,869		)
Preferred units distributions	(565		)	—			(962		)	—
Net income attributable to SL Green	110,584			534,003			143,385			622,433
Preferred stock dividends	(7,544		)	(7,545		)	(15,089		)	(15,089		)
Net income attributable to SL Green common stockholders	$	103,040		$	526,458		$	128,296		$	607,344

18.  Supplemental Disclosure of Non-Cash Investing and Financing Activities

A summary of our non-cash investing and financing activities for the six months ended June 30, 2012 and 2011 is presented below (amounts in thousands):

	Six Months Ended June 30,
	2012		2011
Issuance of common stock as deferred compensation	$	544	$	545
Issuance of units in the operating partnership	35,917		20,222
Redemption of units in the operating partnership	483		725
Derivative instruments at fair value	314		1,071
Assignment of debt investment to joint venture	—		286,571
Mortgage assigned upon asset sale	59,099		30,000
Tenant improvements and capital expenditures payable	12,294		8,389
Assumption of mortgage loans	—		663,767
Fair value adjustment to noncontrolling interest in operating partnership	46,810		42,296
Accrued acquisition liabilities	—		44,500
Consolidation of real estate investments	—		557,314
Transfer to net assets held for sale	86,339		—
Transfer to liabilities related to net assets held for sale	62,792		—
Repayment of mezzanine loan	3,750		—
Redemption of Series E units	31,698		—
Repayment of financing receivable	28,195		—

19.  Subsequent Events

On July13, 2012, we redeemed all 4,000,000 shares of our Series D preferred stock at a redemption price of $25.00 per share plus $0.4922 in accumulated and unpaid dividends on such preferred stock through July 14, 2012.

On July 19, 2012, we, along with our joint venture partner, sold the property located at One Court Square, Long Island City, NY, for $481.1 million. The transaction included the assumption by the purchaser of $315.0 million of existing debt.

38

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

SL Green Realty Corp., which is referred to as SL Green or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities.  We are a self-managed real estate investment trust, or REIT, with in-house capabilities in property management, acquisitions, financing, development, construction and leasing.  Unless the context requires otherwise, all references to “we,” “our” and “us” means the Company and all entities owned or controlled by the Company, including the Operating Partnership.

Reckson Associates Realty Corp., or Reckson, and Reckson Operating Partnership, L.P. or ROP, are wholly-owned subsidiaries of the Operating Partnership.

The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements appearing in this Quarterly Report on Form 10-Q and in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2011.

As of June 30, 2012, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan, a borough of New York City, or Manhattan.  Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:

Location	Ownership	Number of Properties	Square Feet	Weighted Average Occupancy(1)
Manhattan	Consolidated properties	27	18,644,945	93.1	%
	Unconsolidated properties	7	5,326,815	95.7	%
Suburban	Consolidated properties	25	3,863,000	80.6	%
	Unconsolidated properties	6	2,941,700	93.1	%
		65	30,776,460	92.0	%

(1) The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

We also owned investments in 13 stand-alone retail properties encompassing approximately 398,686 square feet, eight development properties encompassing approximately 2,614,996 square feet, two residential properties encompassing approximately 385 units (approximately 430,482 square feet) and two land interests as of June 30, 2012.  In addition, we manage three office properties owned by third parties and affiliated companies encompassing approximately 0.9 million rentable square feet. As of June 30, 2012, we also held $982.2 million in debt and preferred equity investments.

Critical Accounting Policies

Refer to our 2011 Annual Report on Form 10-K for a discussion of our critical accounting policies, which include investment in commercial real estate properties, investment in unconsolidated joint ventures, revenue recognition, allowance for doubtful accounts, reserve for possible credit losses and derivative instruments.  There have been no changes to these policies during the six months ended June 30, 2012.

Results of Operations

Comparison of the three months ended June 30, 2012 to the three months ended June 30, 2011

The following comparison for the three months ended June 30, 2012, or 2012, to the three months ended June 30, 2011, or 2011, makes reference to the following:  (i) the effect of the “Same-Store Properties,” which represents all operating properties owned by us in the same manner at January 1, 2011 and at June 30, 2012 and totaled 46 of our 52 consolidated properties, representing approximately 71% of our share of annualized cash rent, (ii) the effect of the “Acquisitions,” which represents all properties or interests in properties acquired in 2012 and 2011 and all non-Same-Store Properties, including properties deconsolidated during the period, and (iii) “Other,” which represents corporate level items not allocable to specific properties, the Service Corporation and eEmerge.  Assets classified as held for sale, are excluded from the following discussion.

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Rental Revenues (in millions)	2012		2011		$ Change		% Change
Rental revenue	$	267.7	$	238.6	$	29.1	12.2	%
Escalation and reimbursement revenue	41.6		35.0		6.6		18.9
Total	$	309.3	$	273.6	$	35.7	13.0	%
Same-Store Properties	$	245.0	$	242.7	$	2.3	0.9	%
Acquisitions	62.5		30.7		31.8		103.6
Other	1.8		0.2		1.6		800.0
Total	$	309.3	$	273.6	$	35.7	13.0	%

Occupancy for our consolidated same-store Manhattan portfolio at June 30, 2012 was 92.3% compared to 92.5% at June 30, 2011.

During the quarter, we signed 50 office leases in our Manhattan portfolio totaling 2,251,230 square feet.  Eleven leases comprising 42,174 square feet represented office leases that replaced previous vacancy, while 39 office leases comprising 2,209,056 square feet had average starting rents of $52.63 per rentable square foot, representing a 1.3% increase over the previously fully escalated rents on the same office spaces.  The average lease term on the Manhattan office leases signed in the second quarter was 15.1 years and average tenant concessions were 8.2 months of free rent with a tenant improvement allowance and lease commissions of $68.62 per rentable square foot.  Of the 1,955,729 square feet of office leases which commenced during 2012, 70,537 square feet represented office leases that replaced previous vacancy, while 1,885,192 square feet represented office leases that had average starting rents of $50.18 per rentable square foot, representing a 0.1% increase over the previously fully escalated rents on the same office spaces.

Occupancy for our consolidated Suburban portfolio was 80.6% at June 30, 2012 compared to 81.0% at June 30, 2011.

During the quarter, we signed 23 office leases in the Suburban portfolio totaling 239,110 square feet.  Six leases comprising 22,388 square feet represented office leases that replaced previous vacancy, while 17 office leases comprising 216,722 square feet had average starting rents of $25.69 per rentable square foot, representing an 18.9% decrease over the previously fully escalated rents on the same office spaces.  The average lease term on the Suburban office leases signed in the second quarter was 5.1 years and average tenant concessions were 8.4 months of free rent with a tenant improvement allowance and lease commissions of $18.06 per rentable square foot.  Of the 216,559 square feet of office leases which commenced during the second quarter, 7,450 square feet represented office leases that replaced previous vacancy, while 209,109 square feet represented office leases that had average starting rents of $25.25 per rentable square foot, representing a 20.1% decrease over the previously fully escalated rents on the same office spaces.

At June 30, 2012, approximately 2.3% and 8.8% of the space leased at our consolidated Manhattan and Suburban properties, respectively, is expected to expire during the remainder of 2012. We estimated that the current market asking rents on these expected 2012 lease expirations at our consolidated Manhattan and Suburban properties would be approximately 13.8% and 4.5% higher, respectively, than then existing in-place fully escalated rents. We estimated that the current market asking rents on all our consolidated Manhattan and Suburban properties were approximately 10.4% and 1.1% higher, respectively, than the existing in-place fully escalated rents on leases that are scheduled to expire in all future years.

The increase in escalation and reimbursement revenue was due to higher recoveries at both the Acquisitions ($5.3 million) and Same-Store Properties ($1.3 million). The increase in recoveries at the Same-Store Properties was primarily due to higher operating expense escalations ($0.5 million), real estate tax recoveries ($0.4 million) and electric reimbursements ($0.4 million).

Same-Store net operating income, which is Same-Store revenues plus Same-Store other income less Same-Store operating expenses, increased $0.9 million, or 0.6%, from $145.1 million for the three months ended June 30, 2011 to $146.0 million for the three months ended June 30, 2012.

Investment and Other Income (in millions)	2012		2011		$ Change			%Change
Equity in net income of unconsolidated joint ventures	$	70.9	$	2.2	$	68.7		3,122.7	%
Investment and preferred equity income	33.4		15.1		18.3			121.2
Other income	6.3		9.9		(3.6		)	(36.4	)
Total	$	110.6	$	27.2	$	83.4		306.6	%

The increase in equity in net income of unconsolidated joint ventures was primarily due to higher net income contributions primarily from our investments in 717 Fifth Avenue ($69.1 million), which was primarily due to the receipt of the refinancing proceeds in excess of our basis, 280 Park Avenue ($1.5 million), 100 Park Avenue ($0.9 million), 3 Columbus Circle ($1.1 million) and One

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Court Square (0.5 million). This was partially offset by lower net income contributions from 1552 Broadway ($2.6 million) and 1515 Broadway, which we consolidated in April 2011, ($1.7 million). Occupancy at our joint venture properties was 94.8% at June 30, 2012 and 95.1% at June 30, 2011.  At June 30, 2012, approximately 1.6% and 9.7% of the space leased at our Manhattan and Suburban joint venture properties are expected to expire during the remainder of 2012. We estimated that current market asking rents on these expected 2012 lease expirations at our Manhattan and Suburban joint venture properties were approximately 6.4% higher and 4.3% lower, respectively, than then existing in-place fully escalated rents.

Investment and preferred equity income increased during the current quarter primarily due to higher invested balance in 2012. During the quarter, we originated or purchased $71.3 million of new debt investments at an average current yield of 8.2%. In addition, an entity that holds the property which served as collateral for our loan position, which is collateralized by an office property in London,  was determined to be a VIE under a reconsideration event and we have been determined to be the primary beneficiary. As a result of this determination, we consolidated the entity and reclassified the investment to assets held for sale on the consolidated balance sheet at June 30, 2012. We recognized our share of additional income of $4.7 million in 2012 as a result of this reclassification. The weighted average investment balance outstanding and weighted average yield were $1.0 billion and 9.4%, respectively, for 2012 compared to $579.4 million and 6.1%, respectively, for 2011. As of June 30, 2012, the debt and preferred equity investments had a weighted average term to maturity of approximately 2.8 years.

The decrease in other income was primarily due to a reduction in fees received upon the completion of a special servicing assignment ($3.1 million), lower lease buy-out income ($0.3 million) and lower contribution from Service Corporation ($0.1 million).

Other income included Same-Store other income of $2.3 million for the three months ended June 30, 2012 compared to $1.4 million for the three months ended June 30, 2011.

Property Operating Expenses (in millions)	2012		2011		$ Change			% Change
Operating expenses	$	68.9	$	62.4	$	6.5		10.4	%
Real estate taxes	52.6		44.0		8.6			19.5
Ground rent	8.9		7.8		1.1			14.1
Total	$	130.4	$	114.2	$	16.2		14.2	%
Same-Store Properties	$	101.3	$	99.0	$	2.3		2.3	%
Acquisitions	26.4		12.3		14.1			114.6
Other	2.7		2.9		(0.2		)	(6.9	)
Total	$	130.4	$	114.2	$	16.2		14.2	%

The increase in operating expenses at the Same-Store Properties was due to higher real estate taxes ($1.7 million), ground rent ($1.0 million), payroll costs ($0.3 million), repairs and maintenance ($0.4 million) and insurance expense ($0.1 million).  This was partially offset by lower utility costs ($1.3 million).

Other Expenses (in millions)	2012		2011		$ Change			%Change
Interest expense, net of interest income	$	85.9	$	70.9	$	15.0		21.2	%
Depreciation and amortization expense	77.8		65.5		12.3			18.8
Loan loss and other investment reserves, net of recoveries	—		1.3		(1.3		)	(100.0	)
Transaction related costs	2.0		1.2		0.8			66.7
Marketing, general and administrative expense	20.7		22.5		(1.8		)	(8.0	)
Total	$	186.4	$	161.4	$	25.0		15.5	%

The increase in interest expense was primarily attributable to the higher average consolidated debt balances outstanding during the period due to increased investment activity inclusive of the acquisitions of 1515 Broadway ($6.2 million),180 Maiden Lane ($1.8 million) 110 East 42nd Street ($0.7 million) and Stonehenge properties ($1.1 million) and refinancing of 919 Third Avenue in August 2011 ($2.7 million). The weighted average debt balance outstanding was $6.3 billion during the quarter ended June 30, 2012 compared to $5.6 billion during the quarter ended June 30, 2011.  The weighted average interest rate increased from 5.01% for the quarter ended June 30, 2011 to 5.02% for the quarter ended June 30, 2012.

Loan loss and other investment reserves decreased. We recorded no reserves or recoveries during the quarter ended June 30, 2012 compared to $2.5 million in reserves and $1.2 million in recoveries during the quarter ended June 30, 2011.

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Marketing, general and administrative, or MG&A, expenses for the quarter ended June 30, 2012 were $20.7 million, or 5.1% of total revenues including our share of joint venture revenue compared to $22.5 million, or 6.4% for the quarter ended June 30, 2011.

Comparison of the six months ended June 30, 2012 to the six months ended June 30, 2011

The following comparison for the six months ended June 30, 2012, or 2012, to the six months ended June 30, 2011, or 2011, makes reference to the following:  (i) the effect of the “Same-Store Properties,” which represents all operating properties owned by us in the same manner at January 1, 2011 and at June 30, 2012 and totaled 46 of our 52 consolidated properties, representing approximately 71% of our share of annualized cash rent, (ii) the effect of the “Acquisitions,” which represents all properties or interests in properties acquired in 2012 and 2011 and all non-Same-Store Properties, including properties deconsolidated during the period, and (iii) “Other,” which represents corporate level items not allocable to specific properties, the Service Corporation and eEmerge.  Assets classified as held for sale, are excluded from the following discussion.

Rental Revenues (in millions)	2012		2011		$ Change			% Change
Rental revenue	$	528.5	$	465.7	$	62.8		13.5	%
Escalation and reimbursement revenue	83.2		65.3		17.9			27.4
Total	$	611.7	$	531.0	$	80.7		15.2	%
Same-Store Properties	$	491.9	$	492.0	$	(0.1	)	—	%
Acquisitions	119.4		38.2		81.2			212.6
Other	0.4		0.8		(0.4		)	(50.0	)
Total	$	611.7	$	531.0	$	80.7		15.2	%

Occupancy for our consolidated same-store Manhattan portfolio at June 30, 2012 was 92.3% compared to 92.5% at June 30, 2011.

During the six months ended June 30, 2012, we signed 114 office leases in our Manhattan portfolio totaling 2,926,213 square feet.  Thirty-two leases comprising 199,607 square feet represented office leases that replaced previous vacancy, while 82 office leases comprising 2,726,606 square feet had average starting rents of $55.87 per rentable square foot, representing a 7.3% increase over the previously fully escalated rents on the same office spaces.  The average lease term on the Manhattan office leases signed during the six months ended June 30, 2012 was 13.0 years and average tenant concessions were 6.6 months of free rent with a tenant improvement allowance and lease commissions of $60.13 per rentable square foot.  Of the 2,689,947 square feet of office leases which commenced during 2012, 265,268 square feet represented office leases that replaced previous vacancy, while 2,424,679 square feet represented office leases that had average starting rents of $54.54 per rentable square foot, representing a 7.4% increase over the previously fully escalated rents on the same office spaces.

Occupancy for our consolidated Suburban portfolio was 80.6% percent at June 30, 2012 as compared to 81.0% at June 30, 2011.

During the six months ended June 30, 2012, we signed 55 office leases in the Suburban portfolio comprising 367,346 square feet.  Fifteen leases and 44,965 square feet represented office leases that replaced previous vacancy, while 40 office leases comprising 322,381 square feet had average starting rents of $28.32 per rentable square foot, representing a 13.8% decrease over the previously fully escalated rents on the same office spaces.  The average lease term on the Suburban office leases signed during the six months ended June 30, 2012 was 4.4 years and average tenant concessions were 5.9 months of free rent with a tenant improvement allowance and lease commissions of $14.65 per rentable square foot.  Of the 362,537 square feet of office leases which commenced during 2012, 47,091 square feet represented office leases that replaced previous vacancy, while 315,446 square feet represented office leases that had average starting rents of $28.11 per rentable square foot, representing a 14.5% decrease over the previously fully escalated rents on the same office spaces.

At June 30, 2012, approximately 2.3% and 8.8% of the space leased at our consolidated Manhattan and Suburban properties, respectively, is expected to expire during the remainder of 2012. We estimated that the current market asking rents on these expected 2012 lease expirations at our consolidated Manhattan and Suburban properties would be approximately 13.8% and 4.5% higher, respectively, than then existing in-place fully escalated rents. We estimated that the current market asking rents on all our consolidated Manhattan and Suburban properties were approximately 10.4% and 1.1% higher, respectively, than the existing in-place fully escalated rents on leases that are scheduled to expire in all future years.

The increase in escalation and reimbursement revenue was due to higher recoveries at the Acquisitions ($15.4 million) and at the Same-Store Properties ($2.6 million).  The increase in recoveries at the Same-Store Properties was primarily due to higher operating expense escalations ($1.0 million), electric reimbursements ($0.9 million) and real estate tax recoveries ($0.8 million).

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Same-Store net operating income decreased $3.8 million, or 1.3%, from $295.6 million for the six months ended June 30, 2011 to $291.8 million for the six months ended June 30, 2012.

Investment and Other Income (in millions)	2012		2011		$ Change			%Change
Equity in net income of unconsolidated joint ventures	$	69.3	$	10.4	$	58.9		566.3	%
Investment and preferred equity income	59.8		79.8		(20.0		)	(25.1	)
Other income	16.7		17.2		(0.5		)	(2.9	)
Total	$	145.8	$	107.4	$	38.4		35.8	%

The increase in equity in net income of unconsolidated joint ventures was primarily due to higher net income contributions primarily from our investments in 717 Fifth Avenue ($70.5 million), which was primarily due to the receipt of refinancing proceeds in excess of our basis, 100 Park Avenue ($1.6 million), 1552 Broadway ($1.3 million), 388 Greenwich Street ($0.7 million) and One Court Square ($0.5 million). This was partially offset by lower net income contributions from 280 Park Avenue ($4.9 million), 1515 Broadway, which we consolidated in April 2011 ($6.2 million), 1551 Broadway, due to a refinancing ($2.9 million), 141 Fifth Avenue ($0.6 million), which was sold in February 2012, and 29 West 34th Street ($0.4 million). Occupancy at our joint venture properties was 94.8% at June 30, 2012 and 95.1% at June 30, 2011.  At June 30, 2012, approximately 1.6% and 9.7% of the space leased at our Manhattan and Suburban joint venture properties are expected to expire during the remainder of 2012. We estimated that current market asking rents on these expected 2012 lease expirations at our Manhattan and Suburban joint venture properties were approximately 6.4% higher and 4.3% lower, respectively, than then existing in-place fully escalated rents.

Investment and preferred equity income decreased during 2012 primarily due to the sale or repayment of debt investments totaling $352.8 million (inclusive of the 280 Park Avenue transaction) resulting in the recognition of additional income of $43.0 million during the first quarter of 2011. During 2012, we originated or purchased $142.1 million of new debt investments at an average current yield of 8.4%. In addition, an entity that holds the property which served as collateral for our loan position, which is collateralized by a property in London, was determined to be a VIE under a reconsideration event and we have been determined to be the primary beneficiary. As a result of this determination, we consolidated the entity and reclassified the investment to assets held for sale on the consolidated balance sheet at June 30, 2012.  We recognized our share of additional income of $4.7 million in 2012 as a result of this reclassification.  The weighted average investment balance outstanding and weighted average yield were $1.0 billion and 9.6%, respectively, for 2012 compared to $730.6 million and 7.2%, respectively, for 2011. As of June 30, 2012, the debt and preferred equity investments had a weighted average term to maturity of approximately 2.8 years.

The decrease in other income was primarily due to a reduction in fees received upon the completion of a special servicing assignment ($3.2 million) and lower lease buy-out income ($0.4 million) which was partially offset by higher contribution from Service Corporation ($1.4 million) and higher fee and other income ($1.6 million).

Other income included Same-Store other income of $5.6 million for the six months ended June 30, 2012 compared to $4.6 million for the six months ended June 30, 2011.

Property Operating Expenses (in millions)	2012		2011		$ Change			% Change
Operating expenses	$	142.2	$	122.7	$	19.5		15.9	%
Real estate taxes	104.1		84.0		20.1			23.9
Ground rent	17.7		15.6		2.1			13.5
Total	$	264.0	$	222.3	$	41.7		18.8	%
Same-Store Properties	$	205.7	$	201.0	$	4.7		2.3	%
Acquisitions	53.5		16.0		37.5			234.4
Other	4.8		5.3		(0.5		)	(9.4	)
Total	$	264.0	$	222.3	$	41.7		18.8	%

The increase in operating expenses at the Same-Store Properties was primarily due to higher real estate taxes ($3.0 million), ground rent ($2.1 million), payroll costs ($1.1 million), repairs and maintenance ($0.8 million) and insurance expense ($0.4 million).  This was partially offset by lower utility costs ($2.9 million).

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Other Expenses (in millions)	2012		2011			$ Change			% Change
Interest expense, net of interest income	$	169.6	$	138.9		$	30.7		22.1	%
Depreciation and amortization expense	154.9		129.0			25.9			20.1
Loan loss and other investment reserves, net of recoveries	0.6		(1.9		)	2.5			131.6
Transaction related costs	3.1		3.7			(0.6		)	(16.2	)
Marketing, general and administrative expense	40.9		42.5			(1.6		)	(3.8	)
Total	$	369.1	$	312.2		$	56.9		18.2	%

The increase in interest expense was primarily attributable to the higher average consolidated debt balances outstanding during the period due to the increase in investment activity inclusive of the acquisitions of 1515 Broadway ($10.9 million), 180 Maiden Lane ($3.6 million), 110 East 42nd Street ($2.4 million) and Stonehenge properties ($1.9 million) subject to mortgages encumbering these properties and refinancing of 919 Third Avenue in August 2011 ($6.1 million). The weighted average debt balance outstanding increased from $5.2 billion during the six months ended June 30, 2011 to $6.4 billion during the six months ended June 30, 2012.  The weighted average interest rate increased from 4.89% for the six months ended June 30, 2011 to 4.95% for the six months ended June 30, 2012.

Loan loss and other investment reserves increased year over year. We recorded $3.0 million in reserves and $2.4 million in recoveries in 2012 compared to $2.5 million in reserves and $4.4 million in recoveries in 2011.

Marketing, general and administrative, or MG&A, expenses for the six months ended June 30, 2012 were $40.9 million, or 5.2% of total revenues including our share of joint venture revenue compared to $42.5 million, or 5.8% for the six months ended June 30, 2011.

Liquidity and Capital Resources

We currently expect that our principal sources of funds to meet our short-term and long-term liquidity requirements for working capital and funds for acquisition and redevelopment of properties, tenant improvements, leasing costs, repurchases or repayments of outstanding indebtedness (which may include exchangeable debt) and for debt and preferred equity investments will include:

(1)	Cash flow from operations;
(2)	Cash on hand;
(3)	Borrowings under our 2011 revolving credit facility;
(4)	Other forms of secured or unsecured financing;
(5)	Net proceeds from divestitures of properties and redemptions, participations and dispositions of debt and preferred equity investments; and
(6)	Proceeds from common or preferred equity or debt offerings by us, the Operating Partnership (including issuances of limited partnership units in the Operating Partnership and trust preferred securities) or ROP.

Cash flow from operations is primarily dependent upon the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent and operating escalations and recoveries from our tenants and the level of operating and other costs. Additionally, we believe that our joint venture investment programs will also continue to serve as a source of capital.

Our combined aggregate principal maturities of our property mortgages and other loans payable, corporate obligations and our share of joint venture debt, including as-of-right extension options, as of June 30, 2012 are as follows (amounts in thousands):

	2012		2013		2014		2015		2016		Thereafter		Total
Property mortgages and other loans	$	25,050	$	567,089	$	198,792	$	285,352	$	572,199	$	3,275,773	$	4,924,255
Corporate obligations	—		—		98,578		357		354,824		900,010		1,353,769
Joint venture debt-our share	56,706		127,516		123,984		102,478		528,305		980,761		1,919,750
Total	$	81,756	$	694,605	$	421,354	$	388,187	$	1,455,328	$	5,156,544	$	8,197,774

As of June 30, 2012, we had approximately $280.3 million of cash on hand, inclusive of approximately $23.5 million of marketable securities.  We expect to generate positive cash flow from operations for the foreseeable future. We may seek to access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all.  Management believes that these sources of liquidity, if we are able to access them, alongwith potential refinancing opportunities for secured debt, will allow us to satisfy our debt obligations, as described above, upon maturity, if not before.

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We also have investments in several real estate joint ventures with various partners who we consider to be financially stable and who have the ability to fund a capital call when needed. Most of our joint ventures are financed with non-recourse debt. We believe that property level cash flows along with unfunded committed indebtedness and proceeds from the refinancing of outstanding secured indebtedness will be sufficient to fund the capital needs of our joint venture properties.

Cash Flows

The following summary discussion of our cash flows is based on our consolidated statements of cash flows in “Item 1. Financial Statements” and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

Cash and cash equivalents were $256.8 million and $390.2 million at June 30, 2012 and 2011, respectively, representing a decrease of $133.4 million.  The increase was a result of the following increases and decreases in cash flows (amounts in thousands):

	Six Months Ended June 30,
	2012			2011			Increase (Decrease)
Net cash provided by operating activities	$	197,935		$	176,848		$	21,087
Net cash used in investing activities	$	(558,047	)	$	(64,733	)	$	(493,314	)
Net cash provided by (used in) financing activities	$	478,719		$	(54,716	)	$	533,435

Our principal source of operating cash flow is related to the leasing and operating of the properties in our portfolio. Our properties provide a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, service debt and fund quarterly dividend and distribution payment requirements. At June 30, 2012, our portfolio was 92.0% occupied.  Our debt and preferred equity and joint venture investments also provide a steady stream of operating cash flow to us.

Cash is used in investing activities to fund acquisitions, redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria.  During the six months ended June 30, 2012, when compared to the six months ended June 30, 2011, we used cash primarily for the following investing activities (amounts in thousands):

Acquisitions of and additions to real estate	$	64,361
Escrow cash-capital improvements/acquisition deposits	(111,891		)
Joint venture investments	(71,499		)
Distributions from joint ventures	(57,917		)
Net proceeds from sale of real estate	(124,794		)
Other investments	(31,837		)
Debt and preferred equity and other investments	(159,737		)
Decrease in net cash provided by investing activities	$	(493,314	)

Funds spent on capital expenditures, which comprise building and tenant improvements, increased from $57.4 million for the six months ended June 30, 2011 compared to $76.6 million for the six months ended June 30, 2012. The increased capital expenditures relate primarily to costs incurred in connection with the redevelopment of properties and the build-out of space for tenants resulting from new leasing activity.

We generally fund our investment activity through property-level financing, our 2011 revolving credit facility, senior unsecured notes, convertible or exchangeable securities, construction loans, sales of real estate and from time to time we issue common or preferred stock, or the Operating Partnership may issue common or preferred units of limited partnership interest. During the six months ended June 30, 2012, when compared to the six months ended June 30, 2011, we used cash for the following financing activities (amounts in thousands):

Proceeds from our debt obligations	$	166,760
Repayments under our debt obligations	394,187
Noncontrolling interests, contributions in excess of distributions	139,333
Other financing activities	78,804
Proceeds from sale of common stock	(218,156		)
Dividends paid	(27,493		)
Decrease in cash used in financing activities	$	533,435

Capitalization

As of June 30, 2012, we had 89,937,501 shares of common stock, 3,486,389 units of limited partnership interest in the Operating Partnership held by persons other than the Company, 66,668 performance-based LTIP units, 11,700,000 shares of our 7.625% Series C

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cumulative redeemable preferred stock, or Series C preferred stock, and 4,000,000 shares of our 7.875% Series D cumulative redeemable preferred stock, or Series D preferred stock, outstanding. In addition, we also had preferred units of limited partnership interest in the Operating Partnership having an aggregate liquidation preference of $49.6 million held by persons other than the Company.

In July 2011, we, along with the Operating Partnership, entered into an “at-the-market” equity offering Program, or ATM Program, to sell an aggregate of $250.0 million of our common stock. During the six months ended June 30, 2012, we had sold 2.6 million shares of our common stock through the ATM Program for aggregate gross proceeds of approximately $204.6 million ($201.6 million of net proceeds after related expenses). The net proceeds were used to repay debt, fund new investments and for other corporate purposes. As of June 30, 2012, we had $45.4 million available to issue shares under the ATM Program.

Dividend Reinvestment and Stock Purchase Plan

In March 2012, we filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRIP, which automatically became effective upon filing. We registered 3,500,000 shares of our common stock under the DRIP. The DRIP commenced on September 24, 2001.

During the six months ended June 30, 2012 and 2011, we issued approximately 1.3 million shares and 87 shares of our common stock and received approximately $99.5 million and $6,500 of proceeds, respectively, from dividend reinvestments and/or stock purchases under the DRIP. DRIP shares may be issued at a discount to the market price.

Second Amended and Restated 2005 Stock Option and Incentive Plan

Subject to adjustments upon certain corporate transactions or events, up to a maximum of 10,730,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the Second Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan.  As of June 30, 2012, approximately 4.1 million fungible units, calculated on a weighted basis, were available for issuance under the 2005 Plan, or 5.2 million shares of common stock if all shares available under the 2005 Plan were issued as five-year stock options.

2006 Long-Term Outperformance Compensation Program

In August 2006, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2006 Outperformance Plan.  The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan.

The cost of the 2006 Outperformance Plan (approximately $16.4 million, subject to adjustment for forfeitures) was amortized into earnings through July 31, 2011, the final vesting period.  We recorded compensation expense of approximately $30,000 and $60,000 for the three and six months ended June 30, 2011, respectively, in connection with the 2006 Outperformance Plan. The cost of the 2006 Outperformance Plan had been fully expensed as of the quarter ended September 30, 2011.

2010 Notional Unit Long-Term Compensation Plan

In December 2009, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Program, or the 2010 Long-Term Compensation Plan.  The 2010 Long-Term Compensation Plan is a long-term incentive compensation plan pursuant to which award recipients may earn, in the aggregate, from approximately $15 million up to approximately $75 million of LTIP Units in the Operating Partnership based on our stock price appreciation over three years beginning on December 1, 2009; provided that, if maximum performance has been achieved, approximately $25 million of awards may be earned at any time after the beginning of the second year and an additional approximately $25 million of awards may be earned at any time after the beginning of the third year.  The amount of awards earned will range from approximately $15 million if our aggregate stock price appreciation during the performance period is 25% to the maximum amount of approximately $75 million if our aggregate stock price appreciation during the performance period is 50% or greater.  No awards will be earned if our aggregate stock price appreciation is less than 25%.  After the awards are earned, they will remain subject to vesting, with 50% of any LTIP Units earned vesting on January 1, 2013 and an additional 25% vesting on each of January 1, 2014 and 2015 based, in each case, on continued employment through the vesting date.  We will not pay distributions on any LTIP Units until they are earned, at which time we will pay all distributions that would have been paid on the earned LTIP Units since the beginning of the performance period.  In January 2011, the compensation committee determined that under the terms of the 2010 Long-Term Compensation Plan, as of December 5, 2010, maximum performance had been achieved and, accordingly, approximately 366,815 LTIP Units had been earned under the 2010 Long-Term Compensation Plan.  In January 2012, the compensation committee determined that under the terms of the 2010 Long-Term Compensation Plan, as of December 1, 2011, maximum performance had been achieved and, accordingly, approximately 385,583 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In accordance with the terms of the program, 50% of these LTIP Units will vest on January 1, 2013 and the remainder is scheduled to vest ratably over the subsequent two years based on continued employment.

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Overall, the 2010 Long-Term Compensation Plan contemplates maximum potential awards of 1,179,987 LTIP Units and a cap of approximately $75 million when earned.  However, sufficient shares were not available under the 2005 Plan to fund the entire 2010 Long-Term Compensation Plan in December 2009, and the awards granted at that time, in the aggregate, were limited to 744,128 LTIP Units, subject to performance-based and time-based vesting, unless and until additional shares became available under the 2005 Plan prior to the end of the performance period for the 2010 Long-Term Compensation Plan.  At our annual meeting of stockholders on June 15, 2010, our stockholders approved the adoption of the 2005 Plan which, among other things, increased the number of shares available under the plan. That increase allowed us to award the balance of the LTIP Units due under the 2010 Long-Term Compensation Plan. The remaining awards were granted in June 2010. The cost of the 2010 Long-Term Compensation Plan (approximately $31.7 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $1.9 million, $3.7 million, $2.2 million and $4.2 million for the three and six months ended June 30, 2012 and 2011, respectively, related to the 2010 Long-Term Compensation Plan.

2011 Outperformance Plan

In August 2011, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2011 Outperformance Plan, or the 2011 Outperformance Plan. Participants in the 2011 Outperformance Plan may earn, in the aggregate, up to $85 million of LTIP Units in the Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2011. Under the 2011 Outperformance Plan, participants will be entitled to share in a “performance pool” comprised of LTIP Units with a value equal to 10% of the amount, if any, by which our total return to stockholders during the three-year period exceeds a cumulative total return to stockholders of 25%, subject to the maximum of $85 million of LTIP Units; provided that if maximum performance has been achieved, approximately one-third of each award may be earned at any time after the beginning of the second year and an additional approximately one-third of each award may be earned at any time after the beginning of the third year. LTIP Units earned under the 2011 Outperformance Plan will be subject to continued vesting requirements, with 50% of any awards earned vesting on August 31, 2014 and the remaining 50% vesting on August 31, 2015, subject to continued employment with us through such dates. Participants will not be entitled to distributions with respect to LTIP Units granted under the 2011 Outperformance Plan unless and until they are earned. If LTIP Units are earned, each participant will also be entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of additional LTIP Units. Thereafter, distributions will be paid currently with respect to all earned LTIP Units, whether vested or unvested.

As of June 30, 2012, 96.8% of the 2011 Outperformance Plan had been granted. The cost of the 2011 Outperformance Plan for the 96.8% granted (approximately $26.1 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $1.4 million and $2.6 million during the three and six months ended June 30, 2012, respectively, related to this program.

Deferred Stock Compensation Plan for Directors

Under our Independent Director’s Deferral Program, which commenced July 2004, our non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees and meeting fees.  Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units.  The phantom stock units are convertible into an equal number of shares of common stock upon such directors’ termination of service from the Board of Directors or a change in control by us, as defined by the program.  Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the applicable dividend record date for the respective quarter.  Each participating non-employee director’s account is also credited for an equivalent amount of phantom stock units based on the dividend rate for each quarter.

During the six months ended June 30, 2012, 6,351 phantom stock units were earned.  As of June 30, 2012, there were approximately 73,200 phantom stock units outstanding.

Employee Stock Purchase Plan

On September 18, 2007, our board of directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to increase their efforts to make our business more successful by providing equity-based incentives to eligible employees.  The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase our shares of common stock through payroll deductions.  The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change.  We filed a registration statement on Form S-8 with the Securities Exchange Commission with respect to the ESPP.  The common stock is offered for purchase through a series of successive offering periods.  Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008.  The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our

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2008 annual meeting of stockholders.  As of June 30, 2012, approximately 60,527 shares of our common stock had been issued under the ESPP.

Market Capitalization

At June 30, 2012, borrowings under our mortgages and other loans payable, our 2011 revolving credit facility, senior unsecured notes and trust preferred securities and share of joint venture debt represented 50.8% of our combined market capitalization of approximately $16.1 billion (based on a common stock price of $80.24 per share, the closing price of our common stock on the New York Stock Exchange on June 30, 2012).  Market capitalization includes our consolidated debt, common and preferred stock and the conversion of all units of limited partnership interest in our Operating Partnership, and our share of joint venture debt.

Indebtedness

The table below summarizes our consolidated mortgages and other loans payable, our 2011 revolving credit facility, senior unsecured notes and trust preferred securities outstanding at June 30, 2012 and December 31, 2011, respectively (amounts in thousands):

Debt Summary:	June 30, 2012			December 31, 2011
Balance
Fixed rate	$	4,927,706		$	4,802,009
Variable rate — hedged	38,486			30,000
Total fixed rate	4,966,192			4,832,009
Variable rate	958,317			911,162
Variable rate—supporting variable rate assets	353,515			351,325
Total variable rate	1,311,832			1,262,487
Total	$	6,278,024		$	6,094,496
Percent of Total Debt:
Total fixed rate	79.1		%	79.3		%
Variable rate	20.9		%	20.7		%
Total	100.0		%	100.0		%
Effective Interest Rate for the Quarter:
Fixed rate	5.61		%	5.99		%
Variable rate	2.95		%	2.16		%
Effective interest rate	5.02		%	4.87		%

The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (0.25% and 0.19% at June 30, 2012 and 2011, respectively).  Our consolidated debt at June 30, 2012 had a weighted average term to maturity of approximately 6.02 years.

Certain of our debt and preferred equity investments, with a face amount of approximately $353.5 million at June 30, 2012, are variable rate investments which mitigate our exposure to interest rate changes on our unhedged variable rate debt.

Mortgage Financing

As of June 30, 2012, our total mortgage debt (excluding our share of joint venture debt of approximately $1.9 billion) consisted of approximately $3.7 billion of fixed rate debt, including hedged variable rate debt, with an effective weighted average interest rate of approximately 5.65% and $1.2 billion of variable rate debt with an effective weighted average interest rate of approximately 3.22%.

Corporate Indebtedness

2011 Revolving Credit Facility

In November 2011, we entered into a $1.5 billion revolving credit facility, or the 2011 revolving credit facility. The 2011 revolving credit facility bears interest at a spread over LIBOR ranging from 100 basis points to 185 basis points, based on the credit rating assigned to the senior unsecured long-term indebtedness of ROP.  As of June 30, 2012, the applicable spread was 150 basis points.  The 2011 revolving credit facility matures in November 2015 and has a one-year as-of-right extension option, subject to certain conditions and the payment of an extension fee of 20 basis points.  We also have an option, subject to customary conditions, without the consent of existing lenders, to increase the capacity under the 2011 revolving credit facility to $1.75 billion at any time prior to the maturity date.  We are required to pay quarterly in arrears a 17.5 to 45 basis point facility fee on the total commitments under the 2011 revolving credit facility, which fee is based on the credit rating assigned to the senior unsecured long-term indebtedness of ROP. As of June 30, 2012, the facility fee was 35 basis points. At June 30, 2012, we had approximately $80.0 million of borrowings and $109.3

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million of letters of credit outstanding under the 2011 revolving credit facility, with undrawn capacity of $1.3 billion.

The Company, ROP and the Operating Partnership are all borrowers jointly and severally obligated under the 2011 revolving credit facility.  No other subsidiary of ours is an obligor under the 2011 revolving credit facility.

The 2011 revolving credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

2007 Revolving Credit Facility

The 2011 revolving credit facility replaced our $1.5 billion revolving credit facility, or the 2007 revolving credit facility, which was terminated concurrently with the entering into the 2011 revolving credit facility.  The 2007 revolving credit facility bore interest at a spread over the 30-day LIBOR ranging from 70 basis points to 110 basis points, based on our leverage ratio, and required a 12.5 to 20 basis point fee, also based on our leverage ratio, on the unused balance payable annually in arrears.  The 2007 revolving credit facility included certain restrictions and covenants and, as of the time of the termination of the 2007 revolving credit facility and as of October 31, 2011, we were in compliance with all such restrictions and covenants.

Senior Unsecured Notes

The following table sets forth our senior unsecured notes and other related disclosures by scheduled maturity date as of June 30, 2012 and December 31, 2011, respectively (amounts in thousands):

Issuance	June 30, 2012 Unpaid Principal Balance		June 30, 2012 Accreted Balance		December 31, 2011 Accreted Balance		Coupon Rate(1)		Effective Rate		Term (in Years)	Maturity
March 26, 2007(2)	$	18,003	$	18,003	$	119,423	3.000	%	3.000	%	20	March 30, 2027
June 27, 2005(3)(4)	357		357		657		4.000	%	4.000	%	20	June 15, 2025
March 16, 2010(5)	250,000		250,000		250,000		7.750	%	7.750	%	10	March 15, 2020
August 5, 2011(5)	250,000		249,593		249,565		5.000	%	5.031	%	7	August 15, 2018
October 12, 2010(6)	345,000		282,414		277,629		3.000	%	7.125	%	7	October 15, 2017
March 31, 2006(3)	275,000		274,824		274,804		6.000	%	6.019	%	10	March 31, 2016
August 13, 2004(3)	98,578		98,578		98,578		5.875	%	5.875	%	10	August 15, 2014
	$	1,236,938	$	1,173,769	$	1,270,656

(1)	Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.
(2)	In March 2007, the Operating Partnership issued $750.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a 25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are currently redeemable at the Operating Partnership’s option. The Operating Partnership may be required to repurchase the notes on March 30, 2017 and 2022 and upon the occurrence of certain designated events. On March 30, 2012, we repurchased $102.2 million of aggregate principal amount of the exchangeable notes pursuant to a mandatory offer to repurchase the notes. On the issuance date, $66.6 million was recorded in equity and was fully amortized as of March 31, 2012.
(3)	Issued by ROP.
(4)	Exchangeable senior debentures which are currently callable at par. In addition, the debentures can be put to ROP, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions. As a result of the acquisition of all outstanding shares of common stock of Reckson, or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. During the six months ended June 30, 2012, we repurchased $300,000 of these bonds at par.
(5)	Issued by us, the Operating Partnership and ROP, as co-obligors.
(6)	In October 2010, the Operating Partnership issued $345.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on April 15 and October 15. The notes have an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. On the issuance date, $78.3 million was recorded in equity. As of June 30, 2012, approximately $62.6 million remained unamortized.

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Junior Subordinate Deferrable Interest Debentures

In June 2005, we issued $100.0 million of Trust Preferred Securities, which are reflected on the balance sheet as Junior Subordinate Deferrable Interest Debentures. The proceeds were used to repay our revolving credit facility.  The $100.0 million of junior subordinate deferrable interest debentures have a 30-year term ending July 2035.  They bear interest at a fixed rate of 5.61% for the first 10 years ending July 2015. Thereafter, the rate will float at three month LIBOR plus 1.25%. The securities are currently redeemable at par.

Restrictive Covenants

The terms of our 2011 revolving credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends (as discussed below), make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the minimum amount of tangible net worth, a maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable us to continue to qualify as a REIT for Federal income tax purposes. As of June 30, 2012 and December 31, 2011, we were in compliance with all such covenants.

Market Rate Risk

We are exposed to changes in interest rates primarily from our floating rate borrowing arrangements.  We use interest rate derivative instruments to manage exposure to interest rate changes.  A hypothetical 100 basis point increase in interest rates along the entire interest rate curve for 2012 would increase our annual interest cost by approximately $12.7 million and would increase our share of joint venture annual interest cost by approximately $5.1 million, respectively.

We recognize all derivatives on the balance sheet at fair value.  Derivatives that are not hedges must be adjusted to fair value through income.  If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings.  The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings.

Approximately $5.0 billion of our long-term debt bears interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates.  The interest rate on our variable rate debt and joint venture debt as of June 30, 2012 ranged from LIBOR plus 90 basis points to LIBOR plus 301 basis points.

Contractual Obligations

Refer to our 2011 Annual Report on Form 10-K for a discussion of our contractual obligations. There have been no material changes, outside the ordinary course of business, to these contractual obligations in 2012.

Off-Balance Sheet Arrangements

We have a number of off-balance sheet investments, including joint ventures and debt and preferred equity investments.  These investments all have varying ownership structures.  Substantially all of our joint venture arrangements are accounted for under the equity method of accounting as we have the ability to exercise significant influence, but not control over the operating and financial decisions of these joint venture arrangements.  Our off-balance sheet arrangements are discussed in Note 5, “Debt and Preferred Equity Investments” and Note 6, “Investment in Unconsolidated Joint Ventures” in the accompanying consolidated financial statements.

Capital Expenditures

We estimate that for the six months ending December 31, 2012, we will incur approximately $71.2 million of capital expenditures,  which are net of loan reserves, (including tenant improvements and leasing commissions) on existing wholly-owned properties and our share of capital expenditures at our joint venture properties, net of loan reserves, will be approximately $20.8 million. We expect to fund these capital expenditures with operating cash flow, additional property level mortgage financings and cash on hand.  Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.  We expect that these financing requirements will be met in a similar fashion.  We believe that we will have sufficient resources to satisfy our capital needs during the next 12-month period.  Thereafter, we expect our capital needs will be met through a combination of cash on hand, net cash provided by operations, borrowings, potential asset sales or additional equity or debt issuances.

Dividends

We expect to pay dividends to our stockholders based on the distributions we receive from the Operating Partnership primarily from property revenues net of operating expenses or, if necessary, from working capital or borrowings.

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To maintain our qualification as a REIT, we must pay annual dividends to our stockholders of at least 90% of our REIT taxable income, determined before taking into consideration the dividends paid deduction and net capital gains.  We intend to continue to pay regular quarterly dividends to our stockholders.  Based on our current annual dividend rate of $1.00 per share, we would pay approximately $90.2 million in dividends.  Before we pay any dividend, whether for Federal income tax purposes or otherwise, which would only be paid out of available cash to the extent permitted under our revolving credit facility, and our senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.

Related Party Transactions

Cleaning/ Security/ Messenger and Restoration Services

Through Alliance Building Services, or Alliance, First Quality Maintenance, L.P., or First Quality, provides cleaning, extermination and related services, Classic Security LLC provides security services, Bright Star Couriers LLC provides messenger services and Onyx Restoration Works provides restoration services with respect to certain properties owned by us.  Alliance is partially owned by Gary Green, a son of Stephen L. Green, the chairman of our board of directors.  In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services.  The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.  Alliance paid the Service Corporation approximately $0.8 million, $1.6 million, $1.0 million and $1.1 million for the three and six months ended June 30, 2012 and 2011, respectively.  We paid Alliance approximately $4.7 million, $8.2 million, $3.5 million and $6.6 million for the three and six months ended June 30, 2012 and 2011, respectively, for these services (excluding services provided directly to tenants).

Marketing Services

A-List Marketing, LLC, or A-List, provides marketing services to us.  Ms. Deena Wolff, a sister of Mr. Marc Holliday, is the owner of A-List. The aggregate amount of fees we paid to A-List for these marketing services was approximately $44,200, $55,900, $40,700 and $66,200 for the three and six months ended June 30, 2012 and 2011, respectively.

Leases

Nancy Peck and Company leases 1,003 square feet of space at 420 Lexington Avenue under a lease that ends in August 2015.  Nancy Peck and Company is owned by Nancy Peck, the wife of Stephen L. Green.  The rent due under the lease is $35,516 per annum for year one increasing to $40,000 in year seven.

Management Fees

S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest.  The aggregate amount of fees paid to S.L. Green Management Corp. from such entity was approximately $110,000, $199,000, $111,000 and $221,000 for the three and six months ended June 30, 2012 and 2011, respectively.

Gramercy Capital Corp.

Our related party transactions with Gramercy are discussed in Note 11, “Related Party Transactions” in the accompanying financial statements.

Insurance

We maintain “all-risk” property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism) within two property insurance portfolios and liability insurance. The first property portfolio maintains a blanket limit of $750.0 million per occurrence, including terrorism, for the majority of the New York City properties in our portfolio. The second portfolio maintains a limit of $700.0 million per occurrence, including terrorism, for some New York City properties and the majority of the Suburban properties.  Both policies expire on December 31, 2012.  Additional coverage may be purchased on a stand-alone basis for certain assets.  We maintain liability policies which cover all our properties and provide limits of $201.0 million per occurrence and in the aggregate per location.  The liability policies expire on October 31, 2012.

In October 2006, we formed a wholly-owned taxable REIT subsidiary, Belmont Insurance Company, or Belmont, to act as a captive insurance company and be one of the elements of our overall insurance program. Belmont is a subsidiary of ours. Belmont was formed in an effort to, among other reasons, stabilize to some extent the fluctuations of insurance market conditions. Belmont is licensed in New York to write Terrorism, NBCR (nuclear, biological, chemical, and radiological), General Liability, Environmental Liability and D&O coverage.

·Terrorism: Belmont acts as a direct property insurer with respect to a portion of our terrorism coverage for the New York

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City properties.  Belmont has a terrorism coverage limit of $650 million in a layer in excess of $100.0 million.  In addition Belmont purchased reinsurance to reinsure the retained insurable risk not otherwise covered under Terrorism Risk Insurance Program Reauthorization and Extension Act of 2007, or TRIPRA, as detailed below.

·NBCR: Belmont has acted as a direct insurer of NBCR coverage and since December 31, 2011, has provided coverage up to $750 million on our entire property portfolio for certified acts of terrorism above a program trigger of $100.0 million.  Belmont is responsible for a small deductible and 15% of a loss, with the remaining 85% covered by the Federal government.

·General Liability: For the period commencing October 31, 2010, Belmont insures a retention on the general liability insurance of $150,000 per occurrence and a $2.1 million annual aggregate stop loss limit. We have secured excess insurance to protect against catastrophic liability losses above the $150,000 retention.  Prior policy years carried a higher per occurrence deductible and/or higher aggregate stop loss.  Belmont has retained a third-party administrator to manage all claims within the retention and we anticipate that direct management of liability claims will improve loss experience and ultimately lower the cost of liability insurance in future years. In addition, we have an umbrella liability policy of $200.0 million per occurrence and in the aggregate on a per location basis.

·Environmental Liability: Belmont insures a deductible of $975,000 per occurrence in excess of $25,000 on a $25 million per occurrence/$30 million aggregate environmental liability policy covering our entire portfolio.

As long as we own Belmont, we are responsible for its liquidity and capital resources, and the accounts of Belmont are part of our consolidated financial statements. If we experience a loss and Belmont is required to pay under its insurance policy, we would ultimately record the loss to the extent of Belmont’s required payment. Therefore, insurance coverage provided by Belmont should not be considered as the equivalent of third-party insurance, but rather as a modified form of self-insurance.

The Terrorism Risk Insurance Act, or TRIA, which was enacted in November 2002, was renewed on December 31, 2007. Congress extended TRIA, now called TRIPRA (Terrorism Risk Insurance Program Reauthorization and Extension Act of 2007) until December 31, 2014. The law extends the federal Terrorism Insurance Program that requires insurance companies to offer terrorism coverage and provides for compensation for insured losses resulting from acts of certified terrorism, subject to the current program trigger of $100.0 million. There is no assurance that TRIPRA will be extended. Our debt instruments, consisting of mortgage loans secured by our properties (which are generally non-recourse to us), mezzanine loans, ground leases, our 2011 revolving credit facility, senior unsecured notes and other corporate obligations, contain customary covenants requiring us to maintain insurance. Although we believe that we currently maintain sufficient insurance coverage to satisfy these obligations, there is no assurance that in the future we will be able to procure coverage at a reasonable cost.  In such instances, there can be no assurance that the lenders or ground lessors under these instruments will not take the position that a total or partial exclusion from “all-risk” insurance coverage for losses due to terrorist acts is a breach of these debt and ground lease instruments allowing the lenders or ground lessors to declare an event of default and accelerate repayment of debt or recapture of ground lease positions. In addition, if lenders prevail in asserting that we are required to maintain full coverage for these risks, it could result in substantially higher insurance premiums.

We monitor all properties that are subject to triple net leases to ensure that tenants are providing adequate coverage.  Certain joint ventures may be covered under policies separate from our policies, at coverage limits which we deem to be adequate.  We continually monitor these policies.  Although we consider our insurance coverage to be appropriate, in the event of a major catastrophe, such as an act of terrorism, we may not have sufficient coverage to replace certain properties.

Funds from Operations

Funds from Operations, or 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, and subsequently amended, defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), excluding gains (or losses) from debt restructuring, sales of properties and real estate related impairment charges, 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.

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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, 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.

FFO for the three and six months ended June 30, 2012 and 2011 is as follows (amounts in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Net income attributable to SL Green common stockholders	$	103,040		$	526,458		$	128,296		$	607,344
Add:
Depreciation and amortization	77,812			65,539			154,895			129,036
Discontinued operations depreciation adjustments	—			—			—			676
Unconsolidated joint ventures depreciation and noncontrolling interest adjustments	6,366			7,074			15,507			13,308
Net income attributable to noncontrolling interests	7,308			15,184			9,267			20,645
Loss on equity investment in marketable securities	—			—			—			—
Less:
Gain on sale of discontinued operations	—			46,085			6,627			46,085
Equity in net gain on sale of interest in unconsolidated joint venture	9,534			—			16,794			—
Purchase price fair value adjustment	—			475,102			—			488,890
Depreciable real estate reserves	5,789			—			5,789			—
Depreciation on non-rental real estate assets	209			212			476			425
Funds from Operations	$	178,994		$	92,856		$	278,279		$	235,609
Cash flows provided by operating activities	$	141,104		$	97,039		$	197,935		$	176,848
Cash flows used in investing activities	$	(263,855	)	$	(95,732	)	$	(558,047	)	$	(64,733	)
Cash flows provided by (used in) financing activities	$	245,885		$	154,913		$	478,719		$	(54,716	)

Inflation

Substantially all of the office leases provide for separate real estate tax and operating expense escalations as well as operating expense recoveries based on increases in the Consumer Price Index or other measures such as porters’ wage.  In addition, many of the leases provide for fixed base rent increases.  We believe that inflationary increases may be at least partially offset by the contractual rent increases and expense escalations described above.

Accounting Standards Updates

The Accounting Standards Updates are discussed in Note 2, “Significant Accounting Policies_Accounting Standards Updates” in the accompanying consolidated financial statements.

53

Forward-Looking Information

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 report 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, Brooklyn, Queens, 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 differ materially, 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 that 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 metropolitan 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 debt and preferred equity 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 Metropolitan 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 other sections of this report and in our other filings with the Securities and Exchange Commission, or the SEC.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

54

ITEM 3.  Quantitative and Qualitative Disclosure About Market Risk

For quantitative and qualitative disclosures about market risk, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended December 31, 2011.  Our exposures to market risk have not changed materially since December 31, 2011.

ITEM 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of “disclosure controls and procedures” in Rule 13a-15(e) of the Exchange Act.  Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports.  Also, we have investments in certain unconsolidated entities.  As we do not control these entities, our disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those we maintain with respect to our consolidated subsidiaries.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures.  Based upon that evaluation as of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to give reasonable assurance to the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.

Changes in Internal Control over Financial Reporting

There have been no significant changes in our internal control over financial reporting during the quarter ended June 30, 2012, that have materially affected, or are reasonably likely to material affect, our internal control over financial reporting.

55

PART II                OTHER INFORMATION

ITEM 1.                LEGAL PROCEEDINGS

As of June 30, 2012, we were not involved in any material litigation nor, to management’s knowledge, is any material litigation threatened against us or our portfolio other than routine litigation arising in the ordinary course of business or litigation that is adequately covered by insurance.

ITEM 1A.             RISK FACTORS

There have been no material changes to the risk factors disclosed in “Item 1A.-Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011.

ITEM 2.                UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the three months ended June 30, 2012, our Operating Partnership issued 438,517 units of limited partnership interest in connection with an acquisition. The Operating Partnership may satisfy redemption requests for the units issued in the transaction described above with shares of our common stock, on a one-for-one basis, pursuant to the Operating Partnership agreement.  The units were issued in reliance on the exemption from registration provided by Section 4(2) of the Act.

ITEM 3.                DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4.                MINE SAFETY DISCLOSURES

Not Applicable

ITEM 5.                OTHER INFORMATION

None

56

ITEM 6.                EXHIBITS

(a)Exhibits:

31.1	Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2	Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.1	Certification by the Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.2	Certification by the Chief Financial Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
101.1	The following financial statements from SL Green Realty Corp.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Income (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statement of Equity (unaudited), (v) Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to Consolidated Financial Statements (unaudited), detail tagged and filed herewith.**

** In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101.1 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

57

SIGNATURES

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

	SL GREEN REALTY CORP.
	By:	/s/ James Mead
		James Mead
		Chief Financial Officer
Date:    August 9, 2012

58

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Marc Holliday, certify that:

1.I have reviewed this quarterly report on Form 10-Q of SL Green Realty Corp. (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2012
	/s/ Marc Holliday
Name:	Marc Holliday
Title:	Chief Executive Officer

1

EX-31.2

Exhibit 31.2

CERTIFICATION

I, James Mead, certify that:

1.I have reviewed this quarterly report on Form 10-Q of SL Green Realty Corp. (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2012
	/s/ James Mead
Name:	James Mead
Title:	Chief Financial Officer

1

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SL Green Realty Corp. (the “Company”) on Form 10-Q as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc Holliday, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ Marc Holliday
Name:	Marc Holliday
Title:	Chief Executive Officer
August 9, 2012

1

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SL Green Realty Corp. (the “Company”) on Form 10-Q as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James Mead, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ James Mead
Name:	James Mead
Title:	Chief Financial Officer
August 9, 2012

1

XML

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Related Party Transactions

Schedule of amounts due from related parties

	June 30, 2012		December 31, 2011
Due from joint ventures	$	515	$	477
Other	7,278		3,524
Related party receivables	$	7,793	$	4,001

XML

Debt and Preferred Equity Investments (Details) (USD $)	6 Months Ended				6 Months Ended																	1 Months Ended		1 Months Ended																		1 Months Ended				1 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Jun. 30, 2012 Debt investment	Dec. 31, 2011 Debt investment	Jun. 30, 2012 Total fixed rate	Jun. 30, 2012 Other loan with an initial maturity of September 2021	Dec. 31, 2011 Other loan with an initial maturity of September 2021	Jun. 30, 2012 Mortgage/Mezzanine loan with an initial maturity date of March 2017	Dec. 31, 2011 Mortgage/Mezzanine loan with an initial maturity date of March 2017	Jun. 30, 2012 Mezzanine loan with an initial maturity date of November 2016	Dec. 31, 2011 Mezzanine loan with an initial maturity date of November 2016	Jun. 30, 2012 Junior participation with an initial maturity date of June 2016	Dec. 31, 2011 Junior participation with an initial maturity date of June 2016	Jun. 30, 2012 Mortgage/Mezzanine loan with an initial maturity date of May 2016	Dec. 31, 2011 Mortgage/Mezzanine loan with an initial maturity date of May 2016	Jun. 30, 2012 Mezzanine loan with an initial maturity date of May 2016	Dec. 31, 2011 Mezzanine loan with an initial maturity date of May 2016	Jun. 30, 2012 Mezzanine loan with an initial maturity date of February 2016	Dec. 31, 2011 Mezzanine loan with an initial maturity date of February 2016	Feb. 29, 2012 Junior Participation	Dec. 31, 2011 Junior Participation	Mar. 30, 2012 Junior Participation	Dec. 31, 2011 Junior Participation	Jun. 30, 2012 Mezzanine Loan with initial maturity date of October 2016	Dec. 31, 2011 Mezzanine Loan with initial maturity date of October 2016	Jun. 30, 2012 Mezzanine loan with an initial maturity date of July 2016	Dec. 31, 2011 Mezzanine loan with an initial maturity date of July 2016	Jun. 30, 2012 Mortgage/Mezzanine loan with an initial maturity date of February 2015	Jun. 30, 2012 Mezzanine Loan with initial maturity date of January 2015	Dec. 31, 2011 Mezzanine Loan with initial maturity date of January 2015	Jun. 30, 2012 Mezzanine loan with an initial maturity date of August 2014	Dec. 31, 2011 Mezzanine loan with an initial maturity date of August 2014	Jun. 30, 2012 Mezzanine loan with an initial maturity date of July 2014	Jun. 30, 2012 Mezzanine loan with an initial maturity date of July 2013	Dec. 31, 2011 Mezzanine loan with an initial maturity date of July 2013	Nov. 30, 2011 Mezzanine loan with an initial maturity date of July 2013	Jun. 30, 2012 Junior participation with an initial maturity date of June 2013	Dec. 31, 2011 Junior participation with an initial maturity date of June 2013	Jun. 30, 2012 Total floating rate	Jun. 30, 2011 Mortgage with an initial maturity date of February 2013	Jun. 30, 2012 Mortgage with an initial maturity date of February 2013	Dec. 31, 2011 Mortgage with an initial maturity date of February 2013	Sep. 30, 2011 Mortgage with an initial maturity date of February 2013	Jun. 30, 2012 Mezzanine loan with an initial maturity date of August 2012	Dec. 31, 2011 Mezzanine loan with an initial maturity date of August 2012	Jun. 30, 2012 Mezzanine Loan with initial maturity date of July 2012	Dec. 31, 2011 Mezzanine Loan with initial maturity date of July 2012	Nov. 30, 2011 Mezzanine Loan with initial maturity date of July 2012	Jun. 30, 2012 Mortgage with an initial maturity date of June 2012	Dec. 31, 2011 Mortgage with an initial maturity date of June 2012	Dec. 31, 2011 Other Loan
Debt and Preferred Equity Investments
Increase in debt and preferred equity investments (net of discounts), including investments classified as held-for-sale	$ 159,100,000	$ 162,900,000
Decrease in debt and preferred equity investments (net of discounts), including investments classified as held-for-sale	162,800,000	544,300,000
Debt investment
Aggregate weighted average current yield (as a percent)					9.53%
Senior Financing	3,815,340,000						1,974,397,000	15,000,000		1,109,000,000		165,000,000		133,000,000		170,397,000		177,000,000		205,000,000						81,000,000		55,000,000			45,000,000		170,000,000		62,500,000	75,000,000			60,250,000		1,840,943,000		28,500,000			796,693,000		467,000,000
Carrying Value, Net of Discounts, at fixed rate					359,960,000	349,918,000		3,500,000	3,500,000	108,549,000	108,817,000	70,864,000	40,375,000	49,000,000	49,000,000	46,452,000	46,416,000	16,500,000	17,112,000	65,095,000	64,973,000		8,725,000		11,000,000
Carrying Value, Net of Discounts, at floating rate	982,209,000		985,942,000		293,957,000	290,139,000																				34,940,000	34,940,000	35,000,000	35,000,000	36,700,000	10,000,000	10,000,000	60,000,000	60,000,000	37,500,000	7,650,000	7,650,000		10,875,000	10,875,000			3,000,000	3,000,000		8,392,000	8,392,000	49,900,000	30,747,000			86,339,000	3,196,000
Loan Participation Amount included in Other assets & Other liabilities																																						7,400,000							28,500,000
Carrying value, net of discounts					653,917,000	640,057,000
Loan loss reserve	(41,050,000)		(50,175,000)	(61,361,000)	(7,000,000)	(19,125,000)
Total, net of reserve					646,917,000	620,932,000
Amount recovered from sale of loan																						400,000		2,000,000
Ownership interest in consolidated joint venture holding the debt investment (as a percent)																																																			88.00%
Interest in property (as a percent)																																																		50.00%
Additional funding provided																																										5,500,000
Value of mortgage																																						15,000,000							31,500,000
Additional participation interest acquired (as a percent)																																														38.60%
Additional commitments to fund in connection with loan																										$ 15,000,000

XML

Significant Accounting Policies (Details) (USD $)	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2011 investments	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Investment in Commercial Real Estate Properties
Impairment charges recorded	$ 5,800,000
Impairment charges recorded, number of investments	1
Increase in rental revenue from amortization of acquired leases		2,700,000	5,100,000	4,900,000	12,300,000
Increase (Reduction) in interest expense from amortization of above-market rate mortgages		1,600,000	(1,700,000)	600,000	(3,000,000)
Identified intangible assets (included in other assets):
Gross amount		733,250,000		733,250,000		673,495,000
Accumulated amortization		(233,003,000)		(233,003,000)		(193,442,000)
Net		500,247,000		500,247,000		480,053,000
Identified intangible liabilities (included in deferred revenue):
Gross amount		656,441,000		656,441,000		622,029,000
Accumulated amortization		(327,986,000)		(327,986,000)		(290,893,000)
Net		$ 328,455,000		$ 328,455,000		$ 331,136,000
Buildings
Investment in Commercial Real Estate Properties
Estimated useful life, low end of range (in years)				3
Estimated useful life, high end of range (in years)				40
Other intangible assets
Investment in Commercial Real Estate Properties
Estimated useful life of other intangible assets, low end of range (in years)				1
Estimated useful life of other intangible assets, high end of range (in years)				14
Above-market leases
Investment in Commercial Real Estate Properties
Estimated useful life of other intangible assets, low end of range (in years)				1
Estimated useful life of other intangible assets, high end of range (in years)				14
Below-market leases
Investment in Commercial Real Estate Properties
Estimated useful life of other intangible assets, low end of range (in years)				1
Estimated useful life of other intangible assets, high end of range (in years)				14
In-place leases
Investment in Commercial Real Estate Properties
Estimated useful life of other intangible assets, low end of range (in years)				1
Estimated useful life of other intangible assets, high end of range (in years)				14

XML

Equity (Details 4) (USD $)	3 Months Ended	6 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended					3 Months Ended	6 Months Ended			6 Months Ended
	Jun. 30, 2011 2006 Long-Term Outperformance Compensation Program	Jun. 30, 2012 2006 Long-Term Outperformance Compensation Program	Jun. 30, 2011 2006 Long-Term Outperformance Compensation Program	Jun. 30, 2012 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan y	Jun. 30, 2011 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Jun. 30, 2012 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan y	Jun. 30, 2011 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Dec. 31, 2009 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Jan. 31, 2012 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Jan. 31, 2011 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Jun. 30, 2012 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan Minimum	Jun. 30, 2012 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan Maximum	Jun. 30, 2012 SL Green Realty Corp. 2011 Outperformance Plan	Jun. 30, 2012 SL Green Realty Corp. 2011 Outperformance Plan	Jun. 30, 2011 SL Green Realty Corp. 2011 Outperformance Plan	Aug. 31, 2011 SL Green Realty Corp. 2011 Outperformance Plan y	Jun. 30, 2012 Deferred Stock Compensation Plan for Directors	Jun. 30, 2012 Employee Stock Purchase Plan m	Jan. 31, 2008 Employee Stock Purchase Plan
Stock based compensation
Term of long-term compensation program (in years)																3
Cost of the plan, subject to adjustment for forfeitures		$ 16,400,000				$ 31,700,000								$ 26,100,000
Compensation expense	30,000		60,000	1,900,000	2,200,000	3,700,000	4,200,000						1,400,000	2,600,000
Approximate amount of LTIP units that may be earned by the recipients based on stock price appreciation											15,000,000	75,000,000				85,000,000
Period for appreciation of stock price (in years)				3		3
Approximate amount of awards that may be earned by recipients after beginning of the second year if maximum performance achieved				25,000,000		25,000,000
Approximate amount of awards that may be earned by recipients after beginning of the third year if maximum performance achieved				25,000,000		25,000,000
Stock price appreciation to earn minimum amount of awards (as a percent)				25.00%		25.00%
Minimum stock price appreciation to earn maximum amount of awards (as a percent)				50.00%		50.00%
Percentage of aggregate stock price appreciation below which no awards will be earned				25.00%		25.00%
Percentage of LTIP Units earned, vesting on January 1, 2013				50.00%		50.00%
Percentage of LTIP Units earned, vesting on January 1, 2014				25.00%		25.00%
Percentage of LTIP Units earned, vesting on January 1, 2015				25.00%		25.00%
Percentage of LTIP Units earned, vesting on August 31, 2014													50.00%	50.00%
Percentage of LTIP Units earned, vesting on August 31, 2015													50.00%	50.00%
LTIP units earned (in shares)									385,583	366,815
Portion of earned LTIP Units vested															one-third
Period over which remainder of awards is scheduled to vest ratably (in years)						2 years
Maximum potential awards of LTIP units (in shares)				1,179,987		1,179,987
Awards granted (in shares)								744,128									6,351
Value of LTIP Units that could be earned expressed as percentage of outperformance amount in excess of the 30% benchmark																10.00%
Maximum performance pool established, net of forfeitures																$ 85,000,000
Percentage of awards granted													96.80%	96.80%
Maximum percentage of the annual retainer fee, chairman fees and meeting fees that may be deferred by non-employee directors																	100.00%
Phantom stock units outstanding (in shares)																	73,200
Shares of common stock available for issuance																			500,000
Duration of each offering period starting the first day of each calendar quarter (in months)																		3
Purchase price as a percentage of market value of the common stock																		85.00%
Shares of common stock issued																		60,527

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Debt and Preferred Equity Investments (Details 2) (USD $)				6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Jun. 30, 2012 Preferred equity investments	Dec. 31, 2011 Preferred equity investments	Jun. 30, 2012 Preferred equity with initial mandatory redemption on July, 2016	Dec. 31, 2011 Preferred equity with initial mandatory redemption on July, 2016	Jun. 30, 2012 Preferred equity with initial mandatory redemption on April, 2016	Jun. 30, 2012 Preferred equity with initial mandatory redemption on July, 2014	Dec. 31, 2011 Preferred equity with initial mandatory redemption on July, 2014	Jun. 30, 2012 Preferred equity with initial mandatory redemption on August, 2012	Dec. 31, 2011 Preferred equity with initial mandatory redemption on August, 2012
Preferred equity investment
Aggregate weighted average current yield (as a percent)				11.14%
Senior Financing	$ 3,815,340,000			$ 2,437,868,000		$ 926,260,000		$ 56,935,000	$ 480,000,000		$ 974,673,000
Carrying Value, Net of Discounts, at fixed rate						206,931,000	203,080,000	16,042,000	95,653,000	141,980,000	50,716,000	51,000,000
Loan loss reserve	(41,050,000)	(50,175,000)	(61,361,000)	(34,050,000)	(31,050,000)
Carrying Value, Net of Discounts, at floating rate	982,209,000	985,942,000
Additional commitments to fund in connection with loan								10,000,000
Junior preferred equity loan									$ 50,000,000
Interest in property (as a percent)											100.00%

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Subsequent Events (Details) (USD $)	1 Months Ended
	Jul. 31, 2012 One Court Square	Nov. 30, 2011 One Court Square	Jul. 31, 2012 Joint venture One Court Square Sale of property	Jul. 31, 2012 Series D Preferred Stock Redemption of preferred stock	Jul. 13, 2012 Series D Preferred Stock Redemption of preferred stock
Subsequent Events
Preferred stock redeemed (in shares)					4,000,000
Preferred stock Redemption (in dollars per share)					$ 25.00
Accumulated and unpaid dividends on preferred stock (in dollars per share)				$ 0.4922
Sales price	$ 481,100,000	$ 475,600,000	$ 481,100,000
Existing debt assumed by purchaser			$ 315,000,000

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Organization and Basis of Presentation (Details) (SL Green Operating Partnership)	6 Months Ended		1 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 1997 Service Corporation
Organization
Economic interest in variable interest entity (as a percent)			95.00%
Percentage of ownership in SL Green Management LLC owned by operating partnership	100.00%
Noncontrolling interest in the operating partnership (as a percent)	3.70%	3.12%

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Property Dispositions and Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2012

Property Dispositions and Assets Held for Sale

Summary of income from discontinued operations

	Three MonthsEnded		Three Months Ended		Six MonthsEnded			Six Months Ended
	June 30,		June 30,		June 30,			June 30,
	2012		2011		2012			2011
Revenues
Rental revenue	$	—	$	3,194	$	516		$	8,735
Escalation and reimbursement revenues	—		219		—			873
Other income	—		56		—			60
Total revenues	—		3,469		516			9,668
Operating expense	—		498		(3		)	1,645
Real estate taxes	—		188		—			1,034
Interest expense, net of interest income	—		1,101		597			2,604
Amortization of deferred financing costs	—		6		—			160
Depreciation and amortization	—		—		—			676
Total expenses	—		1,793		594			6,119
Net income (loss) from discontinued operations	$	—	$	1,676	$	(78	)	$	3,549

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Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012 y
Commitments and Contingencies
Initial term of noncancellable operating leases, minimum (in years)	1
Capital lease
2012	$ 777
2013	1,555
2014	1,555
2015	1,593
2016	1,707
Thereafter	42,351
Total minimum lease payments	49,538
Less amount representing interest	(32,390)
Present value of net minimum lease payments	17,148
Non-cancellable operating leases
2012	16,820
2013	33,641
2014	33,641
2015	33,641
2016	33,745
Thereafter	630,503
Total minimum lease payments	$ 781,991

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Debt and Preferred Equity Investments (Details 4) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 segment	Jun. 30, 2011	Dec. 31, 2011 segment receivables
Debt and Preferred Equity Investments
Number of portfolio segments of financial receivables			1		1
Additional amount of financing receivables included in other assets	$ 119,900,000		$ 119,900,000		$ 108,700,000
Nonaccrual balance of financing receivables	25,100,000		25,100,000		102,600,000
Recorded investment for financing receivables past due 90 days					17,300,000
Number of financing receivables past due 90 days					2
Impaired loans, including non-accrual loans
Unpaid Principal Balance	66,112,000		66,112,000		192,744,000
Recorded Investment	61,466,000		61,466,000		164,853,000
Allowance Allocated	41,050,000		41,050,000		50,175,000
Average recorded investment in impaired loans	69,932,000	201,991,000	74,935,000	223,376,000
Investment and preferred equity income recognized	2,333,000	1,551,000	3,895,000	6,361,000
With no related allowance recorded
Impaired loans, including non-accrual loans
Unpaid Principal Balance					106,623,000
Recorded Investment					83,378,000
With an allowance recorded
Impaired loans, including non-accrual loans
Unpaid Principal Balance	66,112,000		66,112,000		86,121,000
Recorded Investment	61,466,000		61,466,000		81,475,000
Allowance Allocated	$ 41,050,000		$ 41,050,000		$ 50,175,000

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Segment Information (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Reconciliation of income from continuing operations to net income attributable to SL Green common stockholders
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture / partial interest and purchase price fair value adjustments	$ 108,923	$ 26,324	$ 130,271	$ 104,554
Purchase price fair value adjustment		475,102		488,890
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate	9,534		16,794
Income from continuing operations	118,457	501,426	147,065	593,444
Net income (loss) from discontinued operations		1,676	(78)	3,549
Gain on sale of discontinued operations		46,085	6,627	46,085
Net income	118,457	549,187	153,614	643,078
Net income attributable to noncontrolling interests in the operating partnership	(3,421)	(11,925)	(4,309)	(13,776)
Net income attributable to noncontrolling interests in other partnerships	(3,887)	(3,259)	(4,958)	(6,869)
Preferred units distributions	(565)		(962)
Net income attributable to SL Green	110,584	534,003	143,385	622,433
Preferred stock dividends	(7,544)	(7,545)	(15,089)	(15,089)
Net income attributable to SL Green common stockholders	$ 103,040	$ 526,458	$ 128,296	$ 607,344

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Supplemental Disclosure of Non-Cash Investing and Financing Activities (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Issuance of common stock as deferred compensation	$ 544	$ 545
Issuance of units in the operating partnership	35,917	20,222
Redemption of units in the operating partnership	483	725
Derivative instruments at fair value	314	1,071
Assignment of debt investment to joint venture		286,571
Mortgage assigned upon asset sale	59,099	30,000
Tenant improvements and capital expenditures payable	12,294	8,389
Assumption of mortgage loans		663,767
Fair value adjustment to noncontrolling interest in operating partnership	46,810	42,296
Accrued acquisition liabilities		44,500
Consolidation of real estate investments		557,314
Transfer to net assets held for sale	86,339
Transfer to liabilities related to net assets held for sale	62,792
Repayment of mezzanine loan	3,750
Redemption of Series E units	31,968
Repayment of financing receivables	$ 28,195

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Equity (Details 5) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Basic Earnings:
Net income attributable to SL Green common stockholders	$ 103,040	$ 526,458	$ 128,296	$ 607,344
Basic weighted average common shares outstanding (in shares)	89,789,000	83,578,000	88,265,000	81,632,000
Effect of Dilutive Securities:
Redemption of units to common shares	3,421	11,925	4,309	13,776
Diluted Earnings:
Income attributable to SL Green common stockholders	$ 106,461	$ 538,383	$ 132,605	$ 621,120
Effect of Dilutive Securities
Redemption of units to common shares	3,193,000	1,912,000	3,121,000	1,858,000
Stock-based compensation plans (in shares)	369,000	520,000	380,000	505,000
Diluted Shares	93,351,000	86,010,000	91,766,000	83,995,000
Common stock shares excluded from the diluted shares outstanding	729,000	579,000	768,000	654,000
3.0% exchangeable senior debentures due 2017
Effect of Dilutive Securities
Interest rate (as a percent)	3.00%		3.00%
3.0% exchangeable senior debentures due 2027
Effect of Dilutive Securities
Interest rate (as a percent)	3.00%		3.00%
4.0% exchangeable senior debentures due 2025
Effect of Dilutive Securities
Interest rate (as a percent)	4.00%		4.00%

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Environmental Matters

6 Months Ended

Jun. 30, 2012

Environmental Matters

Environmental Matters

16.  Environmental Matters

Our management believes that the properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues.  Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows.  Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold.

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Significant Accounting Policies (Details 3) (USD $)	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2011	Jun. 30, 2012 day	Jun. 30, 2011	Dec. 31, 2011
Significant Accounting Policies
Days past due for income recognition on debt and preferred equity investments to be suspended		90
Loan loss reserves or charge-offs on investments being held to maturity	$ 2,500,000	$ 3,000,000	$ 2,500,000	$ 10,875,000
Recoveries recorded	1,200,000	2,436,000	4,400,000	4,370,000
Income taxes
Minimum annual taxable income distributed to stockholders to maintain REIT qualification (as a percent)		90.00%
Estimated tax payments			$ 100,000

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies

Schedule of future minimum lease payments under capital leases and noncancellable operating leases

June 30,	Capital lease			Non-cancellable operating leases
2012	$	777		$	16,820
2013	1,555			33,641
2014	1,555			33,641
2015	1,593			33,641
2016	1,707			33,745
Thereafter	42,351			630,503
Total minimum lease payments	49,538			$	781,991
Less amount representing interest	(32,390		)
Present value of net minimum lease payments	$	17,148

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Segment Information (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 segment	Jun. 30, 2011	Dec. 31, 2011
Segment Information
Number of reportable segments			2
Segment information
Total revenues:	$ 349,005,000	$ 298,705,000	$ 688,197,000	$ 627,927,000
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments	108,923,000	26,324,000	130,271,000	104,554,000
Total assets:	14,139,113,000		14,139,113,000		13,483,852,000
Leverage rate assumption (as a percent)	100.00%
Marketing, general and administrative expenses and transaction related costs	22,700,000	23,700,000	44,000,000	46,100,000
Real Estate Segment
Segment information
Total revenues:	315,557,000	283,561,000	628,411,000	548,104,000
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments	81,910,000	14,358,000	82,343,000	28,226,000
Total assets:	13,141,444,000		13,141,444,000		12,490,502,000
Debt and Preferred Equity Segment
Segment information
Total revenues:	33,448,000	15,144,000	59,786,000	79,823,000
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments	27,013,000	11,966,000	47,928,000	76,328,000
Total assets:	$ 997,669,000		$ 997,669,000		$ 993,350,000

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Mortgages and Other Loans Payable (Tables)

6 Months Ended

Jun. 30, 2012

Mortgages and Other Loans Payable

Schedule of first mortgages and other loans payable collateralized by the respective properties and assignment of leases

Property(1)	Maturity Date	Interest Rate(2)		June 30, 2012		December 31, 2011
400 East 57th Street	02/2024	4.13	%	$	70,000	$	—
400 East 58th Street	02/2024	4.13	%	30,000		—
919 Third Avenue(3)	06/2023	5.12	%	500,000		500,000
100 Church	07/2022	4.68	%	230,000		—
One Madison Avenue	05/2020	5.91	%	617,353		626,740
Other loan payable(4)	09/2019	8.00	%	50,000		50,000
885 Third Avenue	07/2017	6.26	%	267,650		267,650
110 East 42nd Street(5)	07/2017	5.81	%	65,000		65,000
2 Herald Square	04/2017	5.36	%	191,250		191,250
485 Lexington Avenue	02/2017	5.61	%	450,000		450,000
120 West 45th Street	02/2017	6.12	%	170,000		170,000
300 Main Street	02/2017	5.75	%	11,500		11,500
762 Madison Avenue	02/2017	3.75	%	8,448		—
Landmark Square	12/2016	4.00	%	85,250		86,000
420 Lexington Avenue(6)	09/2016	7.15	%	186,107		187,182
500 West Putnam	01/2016	5.52	%	24,315		24,563
625 Madison Avenue	11/2015	7.22	%	127,462		129,098
711 Third Avenue	06/2015	4.99	%	120,000		120,000
125 Park Avenue	10/2014	5.75	%	146,250		146,250
609 Partners, LLC(7)	07/2014	5.00	%	23		31,721
220 East 42nd Street	11/2013	5.25	%	188,197		190,431
609 Fifth Avenue	10/2013	5.85	%	94,167		94,963
673 First Avenue	02/2013	5.67	%	29,451		29,906
292 Madison Avenue(8)				—		59,099
Total fixed rate debt				$	3,662,423	$	3,431,353
1515 Broadway(9)	04/2018	3.60	%	$	773,726	$	450,363
180 Maiden Lane(10)	11/2016	2.60	%	275,314		279,332
Other loan payable(11)	06/2013	3.51	%	62,792		62,792
521 Fifth Avenue(12)	04/2013	2.24	%	150,000		150,000
Total floating rate debt				$	1,261,832	$	942,487
Total mortgages and other loans payable				$	4,924,255	$	4,373,840

(1)Held in bankruptcy remote special purpose entity.

(2)Effective contractual interest rate for the quarter ended June 30, 2012.

(3)We own a 51% controlling interest in the joint venture that is the borrower on this loan.  This loan is non-recourse to us.  In June 2011, our joint venture replaced the $219.9 million 6.87% mortgage that was due to mature in August 2011 with a $500.0 million mortgage.

(4)This loan is secured by a portion of a preferred equity investment.

(5)We took control of this property in May 2011 and assumed the mortgage as part of the transaction. This loan consists of a $65.0 million A-tranche and an $18.1 million B-tranche. The B-tranche does not accrue interest and is due only under certain circumstances as described in the loan agreement.

(6)We increased this loan by $40.0 million in March 2011.

(7)As part of an acquisition, we issued 63.9 million units of our 5.0% Series E preferred units, or the Series E units, with a liquidation preference of $1.00 per unit. As of June 30, 2012, 63.8 million Series E units had been redeemed.

(8)This property was sold in February 2012 and the related mortgage, which was included in Liabilities related to assets held for sale, was assumed by the purchaser.

(9)We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011. In April 2012, we refinanced the $447.2 million mortgage that was due in December 2014 with a $775.0 million 7-year mortgage which carries interest at the rate equal to the greater of (a) 285 basis points over 90-day LIBOR or (b) 3.6% per annum.

(10)In connection with this consolidated joint venture obligation, we executed a master lease agreement. Our partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

(11)This loan bears interest at 250 basis points over the three month GBP LIBOR.  This loan is denominated in British Pounds. This loan was included in Liabilities related to assets held for sale on the consolidated balance sheet at June 30, 2012.

(12)We assumed a $140.0 million mortgage in connection with the acquisition of the remaining partnership interest in January 2011. As a result, we have consolidated this investment since January 2011. The mortgage was scheduled to mature in April 2011. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR.

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Property Acquisitions (Details) (USD $)	6 Months Ended		1 Months Ended				1 Months Ended
	Jun. 30, 2012 sqft	Dec. 31, 2011	Jun. 30, 2012 304 Park Avenue sqft	Oct. 31, 2011 Stonehenge Properties	Jan. 31, 2012 Manhattan	Oct. 31, 2011 Manhattan	Jan. 31, 2012 Manhattan Series G Preferred Units	Jan. 31, 2012 Retail properties property y	Jan. 31, 2012 Multifamily properties property sqft y	Nov. 30, 2011 51 East 42nd Street sqft	Nov. 30, 2011 51 East 42nd Street Series H Preferred Units	Nov. 30, 2011 180 Maiden Lane sqft y	May 31, 2012 110 East 42nd Street	May 31, 2011 110 East 42nd Street sqft	Apr. 30, 2012 1515 Broadway	Apr. 30, 2011 1515 Broadway sqft	Apr. 30, 2011 521 Fifth Avenue y	Jan. 31, 2011 521 Fifth Avenue sqft
Property Acquisitions
Number of properties acquired								5	2
Number of properties with new mortgage								1	2
Area of property (in square feet)	30,776,460		215,000						488,000	142,000		1,100,000		205,000		1,750,000		460,000
Stated interest rate of preferred partnership units issued (as a percent)							4.50%				6.00%
Value of preferred operating partnership units issued			$ 33,000,000				$ 47,600,000				$ 2,000,000	$ 31,700,000
Number of units									385
Fixed rate debt	3,662,423,000	3,431,353,000							100,000,000
Term (in years)								5	12			5					2
Interest rate, fixed rate debt (as a percent)									4.125%
Ownership interest in consolidated joint venture (as a percent)				80.00%		80.00%
Stake in the joint venture (as a percent)												49.90%
Consideration in cash			102,000,000									41,000,000
Refinanced mortgage loan												344,200,000		16,000,000			150,000,000
Economic Interest (as a percent)																31.50%
Term of refinanced mortgage (in years)								5	12			5					2
Mortgage on properties assumed								8,500,000				280,000,000
Senior mezzanine loan												344,200,000		16,000,000			150,000,000
Purchase price fair value adjustment recognized												8,300,000				475,100,000		13,800,000
Remaining ownership interest acquired (as a percent)																		49.90%
Consolidated interests in acquiree															1,230,000,000			245,700,000
Interest rate, description																	30-day LIBOR
Interest rate added to base rate (as a percent)																	2.00%
Fee interest in the property acquired																	15,000,000
Allocation of the purchase price of the assets acquired and liabilities assumed
Land					65,723,000					44,095,000		191,523,000	34,000,000		462,700,000			110,100,000
Building					122,049,000					33,470,000		233,230,000	46,411,000		707,938,000			146,686,000
Above market lease value					598,000					5,616,000		7,944,000	823,000		18,298,000			3,318,000
Acquired in-place leases					9,038,000					4,333,000		29,948,000	5,396,000		98,661,000			23,016,000
Other assets, net of other liabilities					2,278,000										27,127,000
Assets acquired					199,686,000					87,514,000		462,645,000	86,630,000		1,314,724,000			283,120,000
Fair value adjustment to mortgage note payable															(3,693,000)
Below market lease value					6,578,000					7,514,000		20,320,000	2,326,000		84,417,000			25,977,000
Liabilities assumed					6,578,000					7,514,000		20,320,000	2,326,000		80,724,000			25,977,000
Purchase price allocation			135,000,000		193,108,000					80,000,000		442,325,000	84,304,000		1,234,000,000	1,230,000,000		257,143,000
Net consideration funded by us at closing			102,000,000		78,121,000					81,632,000		81,835,000	2,744,000		259,228,000			70,000,000
Equity and/or debt investment held	1,014,042,000	893,933,000											16,000,000		40,942,000			41,432,000
Debt assumed													65,000,000		458,767,000			140,000,000
Net assets acquired, including previous investments in unconsolidated joint ventures																1,234,000,000
Cash and other assets acquired																		$ 4,500,000

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Equity (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Equity
Authorized capital stock (in shares)	260,000,000
Authorized shares, par value (in dollars per share)	$ 0.01
Common stock, shares authorized	160,000,000	160,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Excess stock, shares authorized	75,000,000
Excess stock, par value (in dollars per share)	$ 0.01
Preferred stock, shares authorized	25,000,000
Preferred stock, par value (in dollars per share)	$ 0.01
Common stock, shares issued	93,543,000	89,210,000
Common stock, shares outstanding net of treasury shares	89,937,501

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Investment in Unconsolidated Joint Ventures (Details 4) (Gramercy Capital Corp., USD $) Share data in Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012 y sqft
Related Party Transactions
Shares held of Gramercy's common stock	3.2
Percentage of Gramercy's common stock owned	6.30%
Total investment in Gramercy based on market value of common stock	$ 8,100,000
First Gramercy lease
Related Party Transactions
Space leased (in square feet)	7,300
Term of lease (in years)	10
Annual lease rent for year one	249,000
Annual lease rent for year ten	315,000
Second Gramercy lease
Related Party Transactions
Space leased (in square feet)	900
Annual lease rent for year one	35,300
Annual lease rent for year six	42,800
Third Gramercy lease
Related Party Transactions
Space leased (in square feet)	1,400
Annual lease rent for year one	67,300
Annual lease rent for year six	$ 80,500

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Organization and Basis of Presentation (Details 2) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012 sqft property	Dec. 31, 2011
Real estate properties
Square Feet	30,776,460
Percent leased	92.00%
Number of Properties	65
Number of office properties managed	3
Rentable square feet of office properties	900,000
Debt and preferred equity investments	$ 982,209	$ 985,942
Number of shares to be received on redemption of one unit of limited partnership interests	1
DEVELOPMENT
Real estate properties
Square Feet	2,614,996
Number of Properties	8
LAND
Real estate properties
Number of Properties	2
Stand-alone retail properties
Real estate properties
Square Feet	398,686
Number of Properties	13
Residential properties
Real estate properties
Square Feet	430,482
Number of office properties managed	2
Number of units	385
Manhattan | CONSOLIDATED PROPERTIES
Real estate properties
Square Feet	18,644,945
Percent leased	93.10%
Number of Properties	27
Manhattan | UNCONSOLIDATED PROPERTIES
Real estate properties
Square Feet	5,326,815
Percent leased	95.70%
Number of Properties	7
Suburban | CONSOLIDATED PROPERTIES
Real estate properties
Square Feet	3,863,000
Percent leased	80.60%
Number of Properties	25
Suburban | UNCONSOLIDATED PROPERTIES
Real estate properties
Square Feet	2,941,700
Percent leased	93.10%
Number of Properties	6

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating Activities
Net income	$ 153,614	$ 643,078
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	162,028	136,355
Depreciable real estate reserves, net of recoveries	(5,789)
Equity in net income from unconsolidated joint ventures	(69,330)	(10,390)
Equity in net gain on sale of interest in unconsolidated joint venture	(16,794)
Gain on sale of discontinued operations	(6,627)	(46,085)
Distributions of cumulative earnings from unconsolidated joint ventures	77,981	7,866
Purchase price fair value adjustment		(488,890)
Gain on sale of debt securities		(19,840)
Loan loss and other investment reserves, net of recoveries	564	(1,870)
Loss on investments in marketable securities		133
Gain on early extinguishment of debt		(971)
Deferred rents receivable	(37,318)	(44,343)
Other non-cash adjustments	3,759	3,774
Changes in operating assets and liabilities:
Restricted cash - operations	(7,104)	15,487
Tenant and other receivables	(5,006)	(841)
Related party receivables	(3,792)	1,157
Deferred lease costs	(28,549)	(14,534)
Other assets	(27,176)	5,169
Accounts payable, accrued expenses and other liabilities	9,609	(5,323)
Deferred revenue and land leases payable	(2,135)	(3,084)
Net cash provided by operating activities	197,935	176,848
Investing Activities
Acquisitions of real estate property	(248,468)	(331,972)
Additions to land, buildings and improvements	(76,585)	(57,442)
Escrowed cash - capital improvements/acquisition deposits	(65,030)	46,861
Investments in unconsolidated joint ventures	(131,820)	(60,321)
Distributions in excess of cumulative earnings from unconsolidated joint ventures	44,172	102,089
Net proceeds from disposition of real estate/joint venture interest	26,099	150,893
Other investments	(31,206)	631
Debt and preferred equity and other investments, net of repayments/participations	(75,209)	84,528
Net cash used in investing activities	(558,047)	(64,733)
Financing Activities
Proceeds from mortgages and other loans payable	1,113,500	690,000
Repayments of mortgages and other loans payable	(472,288)	(744,873)
Proceeds from revolving credit facility and senior unsecured notes	468,339	725,079
Repayments of revolving credit facility and senior unsecured notes	(840,793)	(962,395)
Proceeds from stock options exercised and DRIP issuance	105,195	7,097
Net proceeds from sale of common stock	201,307	419,463
Purchase of treasury stock	(11,158)	(4,197)
Distributions to noncontrolling interests in other partnerships	(11,999)	(133,712)
Contributions from noncontrolling interests in other partnerships	18,799
Distributions to noncontrolling interests in Operating Partnership	(1,561)	(382)
Dividends paid on common and preferred stock	(59,155)	(31,662)
Deferred loan costs and capitalized lease obligation	(31,467)	(19,134)
Net cash provided by (used in) financing activities	478,719	(54,716)
Net increase in cash and cash equivalents	118,607	57,399
Cash and cash equivalents at beginning of period	138,192	332,830
Cash and cash equivalents at end of period	$ 256,799	$ 390,229

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Deferred Costs (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Deferred Costs
Deferred financing	$ 145,689	$ 113,620
Deferred leasing	262,447	238,394
Deferred costs, gross	408,136	352,014
Less accumulated amortization	(158,989)	(141,228)
Deferred costs, net	$ 249,147	$ 210,786

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Financial Instruments: Derivatives and Hedging (Tables)

6 Months Ended

Jun. 30, 2012

Financial Instruments: Derivatives and Hedging

Schedule of notional and fair value of derivative financial instruments and foreign currency hedges

	Notional Value		Strike Rate		Effective Date	Expiration Date	Fair Value
Interest Rate Cap	$	775,000	3.650	%	04/2012	04/2013	$	—
Interest Rate Cap	$	280,000	6.000	%	11/2011	11/2012	$	—
Interest Rate Swap	$	30,000	2.295	%	7/2010	6/2016	$	(1,944	)
Interest Rate Swap	$	8,500	0.740	%	2/2012	2/2015	$	(68	)
Currency Hedge	$	20,748	1.55185	GBP-USD	9/2010	12/2012	$	(170	)

Schedule of effect of derivative financial instruments on Consolidated Statements of Income

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Three Months Ended						Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Three Months Ended						Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) For the Three Months Ended
Designation\Cash Flow	Derivative	June 30, 2012			June 30, 2011			June 30,2012			June 30, 2011			June 30, 2012			June 30, 2011
Qualifying	Interest Rate Swaps/Caps	$	(6,844	)	$	(6,186	)	$	(3,215	)	$	(3,145	)	$	(1	)	$	(18	)
Non-qualifying	Interest Rate Caps/Currency Hedges	—			—			—			—			380			(127		)

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Six Months Ended						Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Six Months Ended						Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) For the Six Months Ended
Designation\Cash Flow	Derivative	June 30, 2012			June 30, 2011			June 30,2012			June 30, 2011			June 30, 2012			June 30, 2011
Qualifying	Interest Rate Swaps/Caps	$	(6,923	)	$	(6,304	)	$	(6,416	)	$	(6,216	)	$	(1	)	$	(18	)
Non-qualifying	Interest Rate Caps/Currency Hedges	—			—			—			—			(331		)	(657		)

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Significant Accounting Policies

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as debt and preferred equity investments.  See Notes 5, “Debt and Preferred Equity Investments” and 6, “Investment in Unconsolidated Joint Ventures.”  All significant intercompany balances and transactions have been eliminated.

The Financial Accounting Standards Board, or FASB, guidance for determining whether an entity is a variable interest entity, or VIE, requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent.  Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and modified the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and noncontrolling interests.

We assess the accounting treatment for each joint venture and debt and preferred equity investment.  This assessment includes a review of each joint venture or limited liability company agreement to determine which party has what rights and whether those rights are protective or participating.  For all VIE’s, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance.  In situations where we or our partner approves, among other things, the annual budget, receives a detailed monthly reporting package from us, meets on a quarterly basis to review the results of the joint venture, reviews and approves the joint venture’s tax return before filing, and approves all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture.  Our joint venture agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

Investment in Commercial Real Estate Properties

Investment in Commercial Real Estate Properties

On a periodic basis, we assess whether there are any indicators that the value of our real estate properties may be impaired or that their carrying value may not be recoverable.  A property’s value is considered impaired if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property is less than the carrying value of the property.  To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property.  In addition, we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value.  We evaluate our equity investments for impairment based on the joint venture’s projected discounted cash flows. In November 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of one of our equity investments. In June 2012, we reversed this entire impairment charge. See Note 6, “Investments in Unconsolidated Joint Ventures.” No impairment charge was recorded during the three or six months ended June 30, 2012 and 2011. We do not believe that the value of any of our consolidated properties or equity investments was impaired at June 30, 2012 and December 31, 2011.

We allocate the purchase price of real estate to land and building and, if determined to be material, intangibles, such as the value of above-, below- and at-market leases and origination costs associated with the in-place leases.  We depreciate the amount allocated to building and other intangible assets over their estimated useful lives, which generally range from three to 40 years and from one to 14 years, respectively.  The values of the above- and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the associated lease, which generally range from one to 14 years.  The value associated with in-place leases is amortized over the expected term of the associated lease, which generally ranges from one to 14 years.  If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off.  The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date).  We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information.  Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below market and determined to be material, we amortized such below market lease value into rental income over the renewal period.

We recognized an increase of approximately $2.7 million, $4.9 million, $5.1 million, $12.3 million in rental revenue for the three and six months ended June 30, 2012 and 2011, respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties.  We recognized an increase/(reduction) in interest expense for the amortization of the above-market rate mortgages assumed of approximately $1.6 million, $0.6 million, $(1.7) million and $(3.0) million for the three and six months ended June 30, 2012 and 2011, respectively.

The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) (amounts in thousands):

	June 30, 2012			December 31, 2011
Identified intangible assets (included in other assets):
Gross amount	$	733,250		$	673,495
Accumulated amortization	(233,003		)	(193,442		)
Net	$	500,247		$	480,053
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	656,441		$	622,029
Accumulated amortization	(327,986		)	(290,893		)
Net	$	328,455		$	331,136

Fair Value Measurements

Fair Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy).

We determined the fair value of our current investments in marketable securities using Level 1, Level 2 and Level 3 inputs. Additionally, we determined the valuation allowance for loan losses based on Level 3 inputs. See Note 5, “Debt and Preferred Equity Investments.”

The estimated fair values of tangible and intangible assets and liabilities recorded in connection with business combinations are based on Level 3 inputs. We estimate fair values based on cash flow projections utilizing appropriate discount and/or capitalization rates and available market information.

We determine impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as Level 3 inputs.

We use the following methods and assumptions in estimating fair value disclosures for financial instruments.

·Cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and other assets and liabilities:  The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and other assets and liabilities reported in our consolidated balance sheets approximates fair value due to the short-term nature  of these instruments.

·Debt and preferred equity investments:  The fair value of debt and preferred equity investments is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. See “Reserve for Possible Credit Losses” below regarding valuation allowances for loan losses.

·Mortgage and other loans payable and other debt:  The fair value of borrowings is estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

The methodologies used for valuing financial instruments have been categorized into three broad levels as follows:

Level 1 — Quoted prices in active markets for identical instruments.

Level 2 — Valuations based principally on other observable market parameters, including

·         Quoted prices in active markets for similar instruments,

·         Quoted prices in less active or inactive markets for identical or similar instruments,

·Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and

·         Market corroborated inputs (derived principally from or corroborated by observable market data).

Level 3 — Valuations based significantly on unobservable inputs.

·Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.

·Valuations based on internal models with significant unobservable inputs.

These levels form a hierarchy. We follow this hierarchy for our financial instruments measured at fair value on a recurring and nonrecurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.

Investment in Marketable Securities

Investment in Marketable Securities

We invest in marketable securities. At the time of purchase, we are required to designate a security as held-to-maturity, available-for-sale, or trading depending on ability and intent. We do not have any securities designated as held-to-maturity or trading at this time. Securities available-for-sale are reported at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss.  Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. Included in accumulated other comprehensive loss at June 30, 2012 is approximately $7.1 million in net unrealized gains related to marketable securities.

The cost of bonds and marketable securities sold is determined using the specific identification method.

At June 30, 2012 and December 31, 2011, we held the following marketable securities (amounts in thousands):

	June 30,		December 31,
	2012		2011
Level 1 — Equity marketable securities	$	8,065	$	8,065
Level 2 — Commercial mortgage-backed securities	11,636		13,369
Level 3 — Rake bonds	3,801		3,889
Total marketable securities available-for-sale	$	23,502	$	25,323

The cost basis of the Level 3 securities was $3.8 million at June 30, 2012 and $3.9 million at December 31, 2011. There were no sales of Level 3 securities during the six months ended June 30, 2012. The Level 3 securities mature at various times through 2030.

Revenue Recognition

Revenue Recognition

Interest income on debt and preferred equity investments is recognized over the life of the investment using the effective interest method and recognized on the accrual basis.  Fees received in connection with loan commitments are deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield.  Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield.  Fees on commitments that expire unused are recognized at expiration.

Income recognition is generally suspended for debt and preferred equity investments at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of income and principal becomes doubtful.  Income recognition is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. Several of the debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management’s determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount.

Reserve for Possible Credit Losses

Reserve for Possible Credit Losses

The expense for possible credit losses in connection with debt and preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality.  Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions.  Based upon these factors, we establish the provision for possible credit losses on each individual investment.  When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired.

Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral.  Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense.  The write-off of the reserve balance is called a charge off.  We recorded loan loss reserves of zero, $3.0 million, $2.5 million and $2.5 million on investments being held to maturity during the three and six months ended June 30, 2012 and 2011, respectively.  We also recorded recoveries of approximately zero, $2.4 million, $1.2 million and $4.4 million during the three and six months ended June 30, 2012 and 2011, respectively, in connection with the sale of investments. This is included in Loan loss and other investment reserves, net of recoveries in the accompanying Consolidated Statements of Income.

Debt and preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale.  In such situations, the investment will be reclassified at its net carrying value to debt and preferred equity investments held to maturity.  For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment.

Income Taxes

Income Taxes

We are taxed as a REIT under Section 856(c) of the Code. As a REIT, we generally are not subject to Federal income tax.  To maintain our qualification as a REIT, we must distribute at least 90% of our REIT taxable income to our stockholders and meet certain other requirements.  If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income tax on our taxable income at regular corporate rates.  We may also be subject to certain state, local and franchise taxes.  Under certain circumstances, Federal income and excise taxes may be due on our undistributed taxable income.

Pursuant to amendments to the Code that became effective January 1, 2001, we have elected, and may in the future elect, to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or a TRS.  In general, a TRS of ours may perform non-customary services for our tenants, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business.  Our TRSs generate income, resulting in Federal income tax liability for these entities.  Our TRSs did not record any Federal, state and local tax provision during either of the six months ended June 30, 2012 and 2011, respectively, and made estimated tax payments of zero and $0.1 million during the six months ended June 30, 2012 and 2011, respectively.

We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Stock-Based Employee Compensation Plans

Stock-Based Employee Compensation Plans

We have a stock-based employee compensation plan, described more fully in Note 12, “Equity”.

The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable.  In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility.  Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options.

Compensation cost for stock options, if any, is recognized ratably over the vesting period of the award.  Our policy is to grant options with an exercise price equal to the quoted closing market price of our stock on the grant date.  Awards of stock or restricted stock are expensed as compensation over the benefit period based on the fair value of the stock on the grant date.

For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date the Compensation Committee authorizes the award and adopts any relevant performance measures. For programs with performance or market measures, the total estimated compensation cost is based on the fair value of the award at the applicable reporting date estimated using a binomial model. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of Company common stock, at the current quoted market price, from certain key employee to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.

Awards can also be made in the form of a separate series of units of limited partnership interest in our Operating Partnership called long-term incentive plan units, or LTIP units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of our common stock at the time of grant, and are subject to such conditions and restrictions as our compensation committee may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.

Earnings per Share

Earnings per Share

We present both basic and diluted earnings per share, or EPS.  Basic EPS excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount.  This also includes units of limited partnership interest. The dilutive effect of the outstanding nonvested shares of common stock, or nonvested shares, and restricted stock units, or RSUs, that have not yet been granted but are contingently issuable under the share-based compensation programs is reflected in the weighted average diluted shares calculation by application of the treasury stock method at the beginning of the quarterly period in which all necessary conditions have been satisfied. The dilutive effect of stock options is reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior debentures as the conversion premium will be paid in cash.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Concentration of Credit Risk

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable.  We place our cash investments in excess of insured amounts with high quality financial institutions.  The collateral securing our debt and preferred equity investments is primarily located in the New York Metropolitan area. See Note 5, “Debt and Preferred Equity Investments.” We perform ongoing credit evaluations of our tenants and require most tenants to provide security deposits or letters of credit.  Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space.  Although the properties in our real estate portfolio are primarily located in Manhattan, we also have properties located in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.  The tenants located in our buildings operate in various industries.  Other than three tenants who account for approximately 7.4%, 6.9% and 6.0% of our share of annualized cash rent, respectively, no other tenant in our portfolio accounted for more than 1.9% of our annualized cash rent, including our share of joint venture annualized cash rent at June 30, 2012. Approximately 9%, 5%, 6% and 6% of our annualized cash rent, including our share of joint venture annualized cash rent, was attributable to 1515 Broadway, 420 Lexington Avenue, 1185 Avenue of the Americas and One Madison Avenue, respectively, for the three months ended June 30, 2012.  In addition, two debt and preferred equity investments accounted for more than 10.0% of the income earned on debt and preferred equity investments during the three months ended June 30, 2012.

Reclassification

Reclassification

Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations.

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Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events

Subsequent Events

19.  Subsequent Events

On July13, 2012, we redeemed all 4,000,000 shares of our Series D preferred stock at a redemption price of $25.00 per share plus $0.4922 in accumulated and unpaid dividends on such preferred stock through July 14, 2012.

On July 19, 2012, we, along with our joint venture partner, sold the property located at One Court Square, Long Island City, NY, for $481.1 million. The transaction included the assumption by the purchaser of $315.0 million of existing debt.

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Debt and Preferred Equity Investments (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Loan loss reserve activity
Balance at beginning of year		$ 50,175	$ 61,361	$ 61,361
Expensed	2,500	3,000	2,500	10,875
Recoveries	(1,200)	(2,436)	(4,400)	(4,370)
Charge-offs		(9,689)		(17,691)
Balance at end of period		$ 41,050		$ 50,175

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Information

Schedule of selected results of operations and selected asset information

	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues:
Three months ended:
June 30, 2012	$	315,557	$	33,448	$	349,005
June 30, 2011	283,561		15,144		298,705
Six months ended:
June 30, 2012	$	628,411	$	59,786	$	688,197
June 30, 2011	548,104		79,823		627,927
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments:
Three months ended:
June 30, 2012	$	81,910	$	27,013	$	108,923
June 30, 2011	14,358		11,966		26,324
Six months ended:
June 30, 2012	$	82,343	$	47,928	$	130,271
June 30, 2011	28,226		76,328		104,554
Total assets:
As of:
June 30, 2012	$	13,141,444	$	997,669	$	14,139,113
December 31, 2011	12,490,502		993,350		13,483,852

Schedule of reconciliation of income from continuing operations to net income attributable to SL Green common stockholders

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2012			2011			2012			2011
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments	$	108,923		$	26,324		$	130,271		$	104,554
Purchase price fair value adjustment	—			475,102			—			488,890
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	9,534			—			16,794			—
Income from continuing operations	118,457			501,426			147,065			593,444
Net income (loss) from discontinued operations	—			1,676			(78		)	3,549
Gain on sale of discontinued operations	—			46,085			6,627			46,085
Net income	118,457			549,187			153,614			643,078
Net income attributable to noncontrolling interests in the operating partnership	(3,421		)	(11,925		)	(4,309		)	(13,776		)
Net income attributable to noncontrolling interests in other partnerships	(3,887		)	(3,259		)	(4,958		)	(6,869		)
Preferred units distributions	(565		)	—			(962		)	—
Net income attributable to SL Green	110,584			534,003			143,385			622,433
Preferred stock dividends	(7,544		)	(7,545		)	(15,089		)	(15,089		)
Net income attributable to SL Green common stockholders	$	103,040		$	526,458		$	128,296		$	607,344

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Organization and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2012

Organization and Basis of Presentation

Schedule of commercial office properties

Location	Ownership	Number of Properties	Square Feet	Weighted Average Occupancy(1)
Manhattan	Consolidated properties	27	18,644,945	93.1	%
	Unconsolidated properties	7	5,326,815	95.7	%
Suburban	Consolidated properties	25	3,863,000	80.6	%
	Unconsolidated properties	6	2,941,700	93.1	%
		65	30,776,460	92.0	%

(1)The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

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Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Significant Accounting Policies

Summary of identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases)

	June 30, 2012			December 31, 2011
Identified intangible assets (included in other assets):
Gross amount	$	733,250		$	673,495
Accumulated amortization	(233,003		)	(193,442		)
Net	$	500,247		$	480,053
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	656,441		$	622,029
Accumulated amortization	(327,986		)	(290,893		)
Net	$	328,455		$	331,136

Schedule of marketable securities

	June 30,		December 31,
	2012		2011
Level 1 — Equity marketable securities	$	8,065	$	8,065
Level 2 — Commercial mortgage-backed securities	11,636		13,369
Level 3 — Rake bonds	3,801		3,889
Total marketable securities available-for-sale	$	23,502	$	25,323

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Consolidated Statement of Equity (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statement of Equity
Cash distribution declared, per common share (in dollars per share)	$ 0.25	$ 0.10	$ 0.50	$ 0.20

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Property Acquisitions (Tables)

6 Months Ended

Jun. 30, 2012

Stonehenge Properties

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

	Stonehenge Properties
	(Preliminary)
Land	$	65,723
Building	122,049
Above market lease value	598
Acquired in-place leases	9,038
Other assets, net of other liabilities	2,278
Assets acquired	199,686
Fair value adjustment to mortgage note payable	—
Below market lease value	6,578
Liabilities assumed	6,578
Purchase price allocation	$	193,108
Net consideration funded by us at closing	$	78,121
Equity and/or debt investment held	$	—
Debt assumed	$	—

2011 Acquisitions

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

	51 East 42nd Street		180 Maiden Lane		110 East 42nd Street		1515 Broadway			521 Fifth Avenue
Land	$	44,095	$	191,523	$	34,000	$	462,700		$	110,100
Building	33,470		233,230		46,411		707,938			146,686
Above market lease value	5,616		7,944		823		18,298			3,318
Acquired in-place leases	4,333		29,948		5,396		98,661			23,016
Other assets, net of other liabilities	—		—		—		27,127			—
Assets acquired	87,514		462,645		86,630		1,314,724			283,120
Fair value adjustment to mortgage note payable	—		—		—		(3,693		)	—
Below market lease value	7,514		20,320		2,326		84,417			25,977
Liabilities assumed	7,514		20,320		2,326		80,724			25,977
Purchase price allocation	$	80,000	$	442,325	$	84,304	$	1,234,000		$	257,143
Net consideration funded by us at closing	$	81,632	$	81,835	$	2,744	$	259,228		$	70,000
Equity and /or debt investment held	—		—		$	16,000	$	40,942		$	41,432
Debt assumed	$	—	$	—	$	65,000	$	458,767		$	140,000

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Equity (Tables)

6 Months Ended

Jun. 30, 2012

Equity

Schedule of weighted average assumptions used to estimate the grant date fair value of options granted

	June 30,2012		December 31,2011
Dividend yield	2.00	%	2.00	%
Expected life of option	5.0 years		4.2 years
Risk-free interest rate	0.99	%	1.00	%
Expected stock price volatility	44.00	%	47.98	%

Summary of the status of stock options and changes during the period

	June 30, 2012					December 31, 2011
	Options Outstanding			Weighted Average ExercisePrice		Options Outstanding			Weighted Average Exercise Price
Balance at beginning of year	1,277,200			$	63.37	1,353,002			$	58.85
Granted	25,000			68.16		212,400			66.42
Exercised	(137,238		)	42.89		(243,901		)	40.48
Lapsed or cancelled	(25,919		)	66.42		(44,301		)	65.89
Balance at end of period	1,139,043			$	65.89	1,277,200			$	63.37
Options exercisable at end of period	739,287			$	69.32	644,429			$	72.31
Weighted average fair value of options granted during the period	$	557,944				$	4,647,554

Summary of restricted stock and charges during the period

	Six Months Ended June 30,			Year Ended December 31,
Restricted Stock Awards	2012			2011
Balance at beginning of year	2,912,456			2,728,290
Granted	1,694			185,333
Cancelled	(200,284		)	(1,167		)
Balance at end of period	2,713,866			2,912,456
Vested during the period	306,124			66,299
Compensation expense recorded	$	3,715,237		$	17,365,401
Weighted average fair value of restricted stock granted during the period	$	116,369		$	21,768,084

Schedule of earnings per share calculation

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2012		2011		2012		2011
Numerator (Income)
Basic Earnings:
Income attributable to SL Green common stockholders	$	103,040	$	526,458	$	128,296	$	607,344
Effect of Dilutive Securities:
Redemption of units to common shares	3,421		11,925		4,309		13,776
Stock options	—		—		—		—
Diluted Earnings:
Income attributable to SL Green common stockholders	$	106,461	$	538,383	$	132,605	$	621,120

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2012	2011	2012	2011
Denominator (Weighted Average Shares)
Basic Earnings:
Shares available to common stockholders	89,789	83,578	88,265	81,632
Effect of Dilutive Securities:
Redemption of units to common shares	3,193	1,912	3,121	1,858
3.0% exchangeable senior debentures due 2017	—	—	—	—
3.0% exchangeable senior debentures due 2027	—	—	—	—
4.0% exchangeable senior debentures due 2025	—	—	—	—
Stock-based compensation plans	369	520	380	505
Diluted Shares	93,351	86,010	91,766	83,995

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Property Dispositions and Assets Held for Sale (Details) (USD $)	3 Months Ended	6 Months Ended		1 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2012 sqft	Jun. 30, 2011	May 31, 2011 Property at 28 West 44th Street sqft	Feb. 29, 2012 292 Madison Avenue	Jun. 30, 2012 292 Madison Avenue
Property Dispositions and Assets Held for Sale
Consideration for sale of property				$ 161,000,000	$ 85,000,000
Square footage of property		30,776,460		359,000
Gain on sale of property	46,085,000	6,627,000	46,085,000	46,100,000		6,600,000
Revenues
Rental revenue	3,194,000	516,000	8,735,000
Escalation and reimbursement revenues	219,000		873,000
Other income	56,000		60,000
Total revenues	3,469,000	516,000	9,668,000
Operating expense	498,000	(3,000)	1,645,000
Real estate taxes	188,000		1,034,000
Interest expense, net of interest income	1,101,000	597,000	2,604,000
Amortization of deferred financing costs	6,000		160,000
Depreciation and amortization			676,000
Total expenses	1,793,000	594,000	6,119,000
Net income (loss) from discontinued operations	$ 1,676,000	$ (78,000)	$ 3,549,000

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Noncontrolling Interests in Operating Partnership (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended		1 Months Ended		1 Months Ended				6 Months Ended	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jan. 31, 2012 Series G Preferred Units	Jun. 30, 2012 Series G Preferred Units	Nov. 30, 2011 Series H Preferred Units	Jun. 30, 2012 Series H Preferred Units	Dec. 31, 2011 Series H Preferred Units	Jun. 30, 2012 Performance-based LTIP units	Jun. 30, 2012 SL Green Operating Partnership unit	Dec. 31, 2011 SL Green Operating Partnership unit
Organization
Noncontrolling interest in the operating partnership (as a percent)											3.70%	3.12%
Number of units of operating partnership owned by the noncontrolling interest unit holders											3,486,389	2,764,737
Phantom stock units outstanding (in shares)										66,668
Shares of common stock reserved for issuance upon redemption of units of limited partnership interest in operating partnership											3,553,057
Number of preferred units issued (in shares)					1,902,000	1,902,000		80,000	80,000
Dividend rate preferred units (as a percent)					4.50%		6.00%
Liquidation preference of preferred units (in dollars per share)					$ 25.00	$ 25.00		$ 25.00	$ 25.00
Annual dividends on preferred units (in dollars per share)					$ 1.125		$ 1.50
Operating partnership common stock value use for conversion of preferred units (in dollars per share)					$ 88.5
Number of company common stock issue on redemption of operation partnership common units					1
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership
Balance at the beginning of period			$ 195,030								$ 195,030	$ 84,338
Distributions			(11,999)								(1,561)	(1,264)
Issuance of common units											35,917	60,443
Redemption of common units											(483)	(865)
Net income	3,421	11,925	4,309	13,776							4,309	14,629
Accumulated other comprehensive income allocation											(337)	(291)
Fair value adjustment											46,810	38,040
Balance at the end of period	$ 279,685		$ 279,685								$ 279,685	$ 195,030

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Commercial real estate properties, at cost:
Land and land interests	$ 2,872,822	$ 2,684,626
Building and improvements	7,310,651	7,147,527
Building leasehold and improvements	1,316,523	1,302,790
Property under capital lease	12,208	12,208
Total commercial real estate properties, at cost	11,512,204	11,147,151
Less: accumulated depreciation	(1,269,979)	(1,136,603)
Total commercial real estate properties, net	10,242,225	10,010,548
Assets held for sale	91,574	76,562
Cash and cash equivalents	256,799	138,192
Restricted cash	138,493	86,584
Investment in marketable securities	23,502	25,323
Tenant and other receivables, net of allowance of $20,826 and $16,772 in 2012 and 2011, respectively	32,728	32,107
Related party receivables	7,793	4,001
Deferred rents receivable, net of allowance of $31,343 and $29,156 in 2012 and 2011, respectively	315,700	281,974
Debt and preferred equity investments, net of discount of $22,601 and $24,996 and allowance of $41,050 and $50,175 in 2012 and 2011, respectively	982,209	985,942
Investments in unconsolidated joint ventures	1,014,042	893,933
Deferred costs, net	249,147	210,786
Other assets	784,901	737,900
Total assets	14,139,113	13,483,852
Liabilities
Mortgages and other loans payable	4,861,463	4,314,741
Revolving credit facility	80,000	350,000
Senior unsecured notes	1,173,769	1,270,656
Accrued interest payable and other liabilities	114,003	126,135
Accounts payable and accrued expenses	140,910	142,428
Deferred revenue/gains	352,151	357,193
Capitalized lease obligation	17,148	17,112
Deferred land leases payable	18,721	18,495
Dividend and distributions payable	30,126	28,398
Security deposits	47,463	46,367
Liabilities related to assets held for sale	62,792	61,988
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities	100,000	100,000
Total liabilities	6,998,546	6,833,513
Commitments and contingencies
Noncontrolling interest in operating partnership	279,685	195,030
SL Green stockholders' equity:
Common stock, $0.01 par value 160,000 shares authorized and 93,543 and 89,210 issued and outstanding at June 30, 2012 and December 31, 2011, respectively (including 3,605 and 3,427 shares at June 30, 2012 and December 31, 2011, held in Treasury, respectively)	936	892
Additional paid-in-capital	4,557,652	4,236,959
Treasury stock at cost	(319,866)	(308,708)
Accumulated other comprehensive loss	(28,413)	(28,445)
Retained earnings	1,741,160	1,704,506
Total SL Green stockholders' equity	6,321,812	5,975,547
Noncontrolling interests in other partnerships	489,520	477,762
Total equity	6,811,332	6,453,309
Total liabilities and equity	14,139,113	13,483,852
Series C Preferred Stock
SL Green stockholders' equity:
Preferred stock	274,022	274,022
Total equity	274,022	274,022
Series D Preferred Stock
SL Green stockholders' equity:
Preferred stock	96,321	96,321
Total equity	96,321	96,321
Series H Preferred Units
Liabilities
Preferred Units	2,000	2,000
Series G Preferred Units
Liabilities
Preferred Units	$ 47,550

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Supplemental Disclosure of Non-Cash Investing and Financing Activities (Tables)

6 Months Ended

Jun. 30, 2012

Supplemental Disclosure of Non-Cash Investing and Financing Activities

Summary of non-cash investing and financing activities

	Six Months Ended June 30,
	2012		2011
Issuance of common stock as deferred compensation	$	544	$	545
Issuance of units in the operating partnership	35,917		20,222
Redemption of units in the operating partnership	483		725
Derivative instruments at fair value	314		1,071
Assignment of debt investment to joint venture	—		286,571
Mortgage assigned upon asset sale	59,099		30,000
Tenant improvements and capital expenditures payable	12,294		8,389
Assumption of mortgage loans	—		663,767
Fair value adjustment to noncontrolling interest in operating partnership	46,810		42,296
Accrued acquisition liabilities	—		44,500
Consolidation of real estate investments	—		557,314
Transfer to net assets held for sale	86,339		—
Transfer to liabilities related to net assets held for sale	62,792		—
Repayment of mezzanine loan	3,750		—
Redemption of Series E units	31,698		—
Repayment of financing receivable	28,195		—

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net income	$ 118,457	$ 549,187	$ 153,614	$ 643,078
Other comprehensive income (loss):
Net unrealized gain (loss) on derivative instruments	(11)	(3,940)	303	(2,991)
SL Green's share of joint venture net unrealized gain (loss) on derivative instruments	(3,637)	888	(836)	3,389
Unrealized gain (loss) on marketable securities	(542)	(5,719)	228	566
Other comprehensive income (loss)	(4,190)	(8,771)	(305)	964
Comprehensive income	114,267	540,416	153,309	644,042
Comprehensive income attributable to noncontrolling interests	(7,720)	(14,989)	(9,892)	(20,538)
Comprehensive income attributable to SL Green common stockholders	$ 106,547	$ 525,427	$ 143,417	$ 623,504

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Investment in Unconsolidated Joint Ventures (Details 2) (USD $)					3 Months Ended		6 Months Ended																																1 Months Ended	6 Months Ended										1 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 717 Fifth Avenue Mortgage loan	Jun. 30, 2012 717 Fifth Avenue Mezzanine loans	Jun. 30, 2012 Joint venture	Jun. 30, 2011 Joint venture	Jun. 30, 2012 Joint venture	Jun. 30, 2011 Joint venture	Dec. 31, 2011 Joint venture	Jun. 30, 2012 Joint venture 388 and 390 Greenwich Street	Dec. 31, 2011 Joint venture 388 and 390 Greenwich Street	Jun. 30, 2012 Joint venture 388 and 390 Greenwich Street Mortgage loan	Jun. 30, 2012 Joint venture 388 and 390 Greenwich Street Mezzanine loans	Jun. 30, 2012 Joint venture 800 Third Avenue	Dec. 31, 2011 Joint venture 800 Third Avenue	Jun. 30, 2012 Joint venture 1 and 2 Jericho Plaza	Dec. 31, 2011 Joint venture 1 and 2 Jericho Plaza	Jun. 30, 2012 Joint venture 1745 Broadway	Dec. 31, 2011 Joint venture 1745 Broadway	Jun. 30, 2012 Joint venture 21 West 34th Street	Dec. 31, 2011 Joint venture 21 West 34th Street	Jun. 30, 2012 Joint venture 280 Park Avenue	Dec. 31, 2011 Joint venture 280 Park Avenue	Jun. 30, 2012 Joint venture 11 West 34th Street	Dec. 31, 2011 Joint venture 11 West 34th Street	Jun. 30, 2012 Joint venture One Court Square	Dec. 31, 2011 Joint venture One Court Square	Nov. 30, 2011 Joint venture One Court Square	Jun. 30, 2012 Joint venture 7 Renaissance	Jun. 30, 2012 Joint venture 100 Park Avenue	Dec. 31, 2011 Joint venture 100 Park Avenue	Jun. 30, 2012 Joint venture 1604-1610 Broadway	Dec. 31, 2011 Joint venture 1604-1610 Broadway	Dec. 31, 2011 Joint venture 141 Fifth Avenue	Jun. 30, 2012 Joint venture 600 Lexington Avenue	Dec. 31, 2011 Joint venture 600 Lexington Avenue	Jun. 30, 2012 Joint venture 10 East 53rd Street	Jun. 30, 2012 Joint venture 724 Fifth Avenue	Apr. 30, 2011 Joint venture 3 Columbus Circle y	Jun. 30, 2012 Joint venture 3 Columbus Circle	Dec. 31, 2011 Joint venture 3 Columbus Circle	Jun. 30, 2012 Joint venture 747 Madison Avenue	Dec. 31, 2011 Joint venture 747 Madison Avenue	Jun. 30, 2012 Joint venture 180/182 Broadway and 63 Nassu Street	Dec. 31, 2011 Joint venture 180/182 Broadway and 63 Nassu Street	Jun. 30, 2012 Joint venture 16 Court Street	Dec. 31, 2011 Joint venture 16 Court Street	Jun. 30, 2012 Joint venture 1552 Broadway	Dec. 31, 2011 Joint venture 1552 Broadway	Apr. 30, 2012 Joint venture 27-29 West 34th Street y	Jun. 30, 2012 Joint venture 27-29 West 34th Street	Dec. 31, 2011 Joint venture 27-29 West 34th Street	Jun. 30, 2012 Joint venture The Meadows	Dec. 31, 2011 Joint venture The Meadows	Dec. 31, 2011 Joint venture 717 Fifth Avenue	Dec. 31, 2011 Joint venture 379 West Broadway	Jun. 30, 2012 Joint venture Other loan payable	Dec. 31, 2011 Joint venture Other loan payable
First mortgage notes and other loan payable
Interest rate, fixed rate debt (as a percent)			4.45%	9.00%						5.19%				6.00%		5.65%		5.68%		5.76%		6.57%		4.82%		4.91%			10.00%	6.64%		5.66%
Interest rate, floating rate debt (as a percent)										1.41%	1.14%																								2.48%		2.74%	2.59%		2.58%		3.00%		2.99%		2.74%		3.24%			2.24%		1.61%				1.14%
Total fixed rate debt	$ 3,662,423,000	$ 3,431,353,000	$ 300,000,000	$ 290,000,000	$ 3,605,376,000		$ 3,605,376,000		$ 3,040,803,000	$ 1,106,756,000	$ 1,106,757,000			$ 20,910,000	$ 20,910,000	$ 163,750,000	$ 163,750,000	$ 340,000,000	$ 340,000,000	$ 100,000,000	$ 100,000,000	$ 710,000,000	$ 710,000,000	$ 17,628,000	$ 17,761,000	$ 315,000,000	$ 315,000,000	$ 315,000,000	$ 856,000	$ 213,476,000	$ 214,625,000	$ 27,000,000	$ 27,000,000	$ 25,000,000
Total floating rate debt	1,261,832,000	942,487,000			1,089,727,000		1,089,727,000		1,091,087,000	31,622,000	31,622,000	16,000,000	15,600,000																						125,000,000	125,000,000	125,000,000	120,000,000		251,120,000	254,896,000	33,125,000	33,125,000	53,082,000	30,722,000	85,290,000	85,728,000	98,321,000	95,405,000		53,650,000	53,900,000	83,517,000	84,698,000	245,000,000	20,991,000	30,000,000	30,000,000
Total mortgages and other loans payable	4,861,463,000	4,314,741,000			4,695,103,000		4,695,103,000		4,131,890,000			576,000,000	562,400,000
Committed amount																																												90,000,000				125,000,000					91,200,000
Maximum amount of loan recourse to entity													200,000,000
Refinanced mortgage loan																																							260,000,000
Portion of bridge loan provided to joint venture (as a percent)																																							50.00%
Term of refinanced mortgage (in years)																																							5
Interest rate added to base rate (as a percent)																																								2.10%
Interest rate, description																																								30-day LIBOR
Possible increase in mortgage based on meeting certain performance hurdles																																								40,000,000
Management, leasing, construction supervision and asset management services revenue					$ 2,400,000	$ 2,300,000	$ 5,600,000	$ 5,700,000
Period for which the loan is extended (in years)																																																		1

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Investment in Unconsolidated Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2012

Investment in Unconsolidated Joint Ventures

Schedule of general information on joint ventures

Property	Partner	OwnershipInterest		EconomicInterest		SquareFeet	Acquired	AcquisitionPrice($)(1)
100 Park Avenue	Prudential	49.90	%	49.90	%	834	02/00	95,800
21 West 34th Street	Sutton	50.00	%	50.00	%	30	07/05	22,400
1604-1610 Broadway	Onyx/Sutton	45.00	%	63.00	%	30	11/05	4,400
27-29 West 34th Street	Sutton	50.00	%	50.00	%	41	01/06	30,000
717 Fifth Avenue(10)	Sutton/Nakash	10.92	%	10.92	%	120	09/06	251,900
800 Third Avenue	Private Investors	42.95	%	42.95	%	526	12/06	285,000
One Court Square(9)	JP Morgan	30.00	%	30.00	%	1,402	01/07	533,500
1745 Broadway	Witkoff/SITQ/Lehman Bros.	32.26	%	32.26	%	674	04/07	520,000
1 and 2 Jericho Plaza	Onyx/Credit Suisse	20.26	%	20.26	%	640	04/07	210,000
16 Court Street	CIF	35.00	%	35.00	%	318	07/07	107,500
The Meadows(2)	Onyx	50.00	%	50.00	%	582	09/07	111,500
388 and 390 Greenwich Street(3)	SITQ	50.60	%	50.60	%	2,600	12/07	1,575,000
180/182 Broadway(4)	Harel/Sutton	25.50	%	25.50	%	71	02/08	43,600
600 Lexington Avenue	CPPIB	55.00	%	55.00	%	304	05/10	193,000
11 West 34th Street(5)	Private Investor/Sutton	30.00	%	30.00	%	17	12/10	10,800
7 Renaissance	Cappelli	50.00	%	50.00	%	37	12/10	4,000
3 Columbus Circle(6)	Moinian	48.90	%	48.90	%	769	01/11	500,000
280 Park Avenue(7)	Vornado	50.00	%	50.00	%	1,237	03/11	400,000
1552-1560 Broadway(8)	Sutton	50.00	%	50.00	%	49	08/11	136,550
747 Madison Avenue	Harel/Sutton	33.33	%	33.33	%	10	09/11	66,250
724 Fifth Avenue	Sutton	50.00	%	50.00	%	65	01/12	223,000
10 East 53rd Street	CPPIB	55.00	%	55.00	%	390	02/12	252,500

(1)Acquisition price represents the actual or implied purchase price for the joint venture.

(2)We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009. We recorded a $2.8 million depreciable real estate reserve in 2010 against this joint venture investment.

(3)The property is subject to a 13-year triple-net lease arrangement with a single tenant.  The lease commenced in 2007.

(4)In December 2010, our 180-182 Broadway joint venture with Jeff Sutton announced an agreement with Pace University to convey a long-term ground lease condominium interest to Pace University for 20 floors of student housing.  The joint venture also admitted Harel, which contributed $28.1 million to the joint venture, for a 49% partnership interest. In August 2011, the joint venture sold the property located at 63 Nassau Street for $2.8 million.

(5)In December 2010, our $12.0 million first mortgage collateralized by 11 West 34th Street was repaid at par, resulting in our recognition of additional income of approximately $1.1 million.  Simultaneous with the repayment, the joint venture was recapitalized with the Company having a 30 percent interest. The property is subject to a long-term net lease arrangement.

(6)We issued 306,296 operating partnership units in connection with this investment. We have committed to fund an additional $47.5 million to the joint venture, of which $33.0 million has been funded as of June 30, 2012. This liability is recorded in accrued interest payable and other liabilities. In addition, we made a $125.0 million bridge loan to this joint venture which was bearing interest at a rate of 7.5%. This loan was repaid when the joint venture refinanced its debt in April 2011.

(7)In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30 million of related floating rate financing which matures in June 2016.  In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction which valued the investment at approximately $1.1 billion. We hold an effective 49.5% ownership interest in the joint venture.

(8)In connection with this acquisition, the joint venture also acquired a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. The purchase price relates only to the purchase of the 1552 Broadway interest which comprises 13,045 square feet. In May 2012, we, along with Sutton, acquired the property at 155 West 46th Street for $8.4 million. This property is adjacent to 1552 and 1560 Broadway.

(9)In November 2011, we, along with our joint venture partner, reached an agreement to sell One Court Square to a private investor group for approximately $475.6 million.  The transaction included $315.0 million of existing debt, which will be assumed by the purchaser. In November 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of this investment. This entire impairment charge was reversed in June 2012. On subsequent dates in 2012, the closing date was extended and the purchase price was increased to $481.1 million. This transaction closed on July 18, 2012.

(10)In June 2012, this retail condominium was recapitalized. The recapitalization triggered a promote which resulted in a reduction of our economic interest. In addition, we sold 50% of our remaining interest at a property valuation of $617.6 million. We recognized $67.9 million of additional cash income, equivalent to profit, due to the distribution of refinancing proceeds and a gain on sale of $3.0 million.

Schedule of first mortgage notes payable collateralized by the respective joint venture properties and assignment of leases

Property	Maturity Date	Interest Rate(1)		June 30, 2012		December 31, 2011
717 Fifth Avenue(9)	06/2024	9.00	%	$	290,000	$	—
717 Fifth Avenue(9)	07/2022	4.45	%	300,000		—
388 and 390 Greenwich Street(2)	12/2017	5.19	%	1,106,756		1,106,757
800 Third Avenue	08/2017	6.00	%	20,910		20,910
1 and 2 Jericho Plaza	05/2017	5.65	%	163,750		163,750
1745 Broadway	01/2017	5.68	%	340,000		340,000
21 West 34th Street	12/2016	5.76	%	100,000		100,000
280 Park Avenue	06/2016	6.57	%	710,000		710,000
11 West 34th Street	01/2016	4.82	%	17,628		17,761
One Court Square	09/2015	4.91	%	315,000		315,000
7 Renaissance	02/2015	10.00	%	856		—
100 Park Avenue	09/2014	6.64	%	213,476		214,625
1604-1610 Broadway(3)	04/2012	5.66	%	27,000		27,000
141 Fifth Avenue	—	—		—		25,000
Total fixed rate debt				$	3,605,376	$	3,040,803
388 and 390 Greenwich Street(2)	12/2017	1.41	%	$	31,622	$	31,622
600 Lexington Avenue	10/2017	2.48	%	125,000		125,000
10 East 53rd Street	02/2017	2.74	%	125,000		—
724 Fifth Avenue	01/2017	2.59	%	120,000		—
Other loan payable	06/2016	1.14	%	30,000		30,000
3 Columbus Circle(4)	04/2016	2.58	%	251,120		254,896
747 Madison Avenue	10/2014	3.00	%	33,125		33,125
180/182 Broadway(5)	12/2013	2.99	%	53,082		30,722
16 Court Street	10/2013	2.74	%	85,290		85,728
1552 Broadway(6)	08/2013	3.24	%	98,321		95,405
27-29 West 34th Street(7)	05/2013	2.24	%	53,650		53,900
The Meadows(8)	09/2012	1.61	%	83,517		84,698
717 Fifth Avenue(9)	—	—		—		245,000
379 West Broadway(10)	—	—		—		20,991
Total floating rate debt				$	1,089,727	$	1,091,087
Total mortgages and other loan payable				$	4,695,103	$	4,131,890

(1)Interest rate represents the effective weighted average interest rate for the quarter ended June 30, 2012.

(2)Comprised of a $576.0 million mortgage and a $562.4 million mezzanine loan, both of which are fixed rate loans, except for $16.0 million of the mortgage and $15.6 million of the mezzanine loan which are floating.  Up to $200.0 million of the mezzanine loan, secured indirectly by these properties, is recourse to us.  We believe it is unlikely that we will be required to perform under this guarantee.

(3)This loan went into default in November 2009 due to the non-payment of debt service.  The joint venture is in discussions with the special servicer to resolve this default.

(4)We provided 50% of a bridge loan to this joint venture. In April 2011, our joint venture with The Moinian Group which owns the property located at 3 Columbus Circle, New York, refinanced the bridge loan and replaced it with a $260.0 million 5-year mortgage with the Bank of China, which carries a floating rate of interest of 210 basis points over the 30-day LIBOR, at which point SL Green and Deutsche Bank’s bridge loan was repaid. The joint venture has the ability to increase the mortgage by $40.0 million based on meeting certain performance hurdles. In connection with this obligation, we executed a master lease agreement. Our partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

(5)This loan has a committed amount of $90.0 million.

(6)This loan has a committed amount of $125.0 million.

(7)In April 2012, this loan was extended by 1-year.

(8)This loan has a committed amount of $91.2 million.

(9)This loan was repaid in June 2012 and was replaced with a $300 million mortgage and a $290 million mezzanine loan. See Note 10 to the prior table.

(10)This property was sold in April 2012 and the mortgage was repaid at a discount.

Schedule of combined balance sheets for the unconsolidated joint ventures

	June 30, 2012		December 31, 2011
Assets
Commercial real estate property, net	$	6,153,652	$	5,699,113
Other assets	668,567		599,596
Total assets	$	6,822,219	$	6,298,709
Liabilities and members’ equity
Mortgages and other loan payable	$	4,695,103	$	4,131,890
Other liabilities	271,289		250,925
Members’ equity	1,855,827		1,915,894
Total liabilities and members’ equity	$	6,822,219	$	6,298,709
Company’s net investment in unconsolidated joint ventures	$	1,014,042	$	893,933

Schedule of combined statements of income for the unconsolidated joint ventures

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012		2011			2012		2011
Total revenues	$	124,418	$	113,792		$	244,466	$	237,352
Operating expenses	16,949		16,080			34,633		36,681
Real estate taxes	12,483		12,290			25,857		25,740
Interest expense, net of interest income	53,506		53,587			110,141		101,224
Depreciation and amortization	35,724		33,865			72,507		65,589
Transaction related costs	90		752			358		817
Total expenses	118,752		116,574			243,496		230,051
Net income(loss)	$	5,666	$	(2,782	)	$	970	$	7,301
Company’s equity in net income of unconsolidated joint ventures	$	70,890	$	2,184		$	69,330	$	10,390

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Fair Value of Financial Instruments (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Fair Value of Financial Instruments
Fixed rate debt	$ 5,000,000,000
Floating rate debt	1,300,000,000
Debt and preferred equity investments	982,209,000	985,942,000
Interest Rate Swap
Fair Value of Financial Instruments
Notional Value	30,000,000
Level 3
Fair Value of Financial Instruments
Fixed rate debt	5,400,000,000
Floating rate debt	1,300,000,000
Estimated fair value of debt and preferred equity investments, low end of range	800,000,000
Estimated fair value of debt and preferred equity investments, high end of range	900,000,000
Debt and preferred equity investments	$ 1,000,000,000

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Noncontrolling Interests in Operating Partnership

6 Months Ended

Jun. 30, 2012

Noncontrolling Interests in Operating Partnership

Noncontrolling Interests in Operating Partnership

13.  Noncontrolling Interests in Operating Partnership

The noncontrolling interest ownership in the Operating Partnership represents interests held by entities other than the Company.  As of June 30, 2012 and December 31, 2011, the noncontrolling interest unit holders owned 3.7% (3,486,389 units) and 3.12% (2,764,737 units) of the Operating Partnership, respectively.  At June 30, 2012, there were also 66,668 performance-based LTIP units outstanding. At June 30, 2012, 3,553,057 shares of our common stock were reserved for issuance upon redemption of units of limited partnership interest in the Operating Partnership.

We record the carrying value of the noncontrolling interests in the operating partnership at fair market value based on the closing stock price of our common stock at the end of the reporting period. The carrying value of such noncontrolling interests will not be adjusted below its cost basis.

In January 2012, as part of an acquisition, the Operating Partnership issued 1,902,000 4.5% Series G preferred units of limited partnership interest, or the Series G preferred units, with a liquidation preference of $25.00 per unit. The Series G preferred unitholders receive annual dividends of $1.125 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series G preferred units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) $88.50.  The common units of limited partnership interest in the Operating Partnership may be redeemed in exchange for our common stock on a 1-to-1 basis.  The Series G preferred units also provide the holder with the right to require the Operating Partnership to repurchase the preferred units for cash before January 31, 2022.

In November 2011, as part of an acquisition, the Operating Partnership issued 80,000 6.0% Series H preferred units, or the Series H preferred units, with a mandatory liquidation preference of $25.00 per unit. The Series H preferred unitholders receive annual dividends of $1.50 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series H preferred units can be redeemed at any time at par for cash at the Operating Partnership’s option or the option of the unitholder.

We have included a rollforward analysis of the activity relating to the noncontrolling interests in the Operating Partnership below (amounts in thousands):

	Six Months Ended June 30,2012			Year Ended December 31, 2011
Balance at beginning of period	$	195,030		$	84,338
Distributions	(1,561		)	(1,264		)
Issuance of common units	35,917			60,443
Redemption of common units	(483		)	(865		)
Net income	4,309			14,629
Accumulated other comprehensive income allocation	(337		)	(291		)
Fair value adjustment	46,810			38,040
Balance at end of period	$	279,685		$	195,030

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Deferred Costs (Tables)

6 Months Ended

Jun. 30, 2012

Deferred Costs

Schedule of components of deferred costs

	June 30,2012			December 31,2011
Deferred financing	$	145,689		$	113,620
Deferred leasing	262,447			238,394
	408,136			352,014
Less accumulated amortization	(158,989		)	(141,228		)
Deferred costs, net	$	249,147		$	210,786

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Financial Instruments: Derivatives and Hedging

6 Months Ended

Jun. 30, 2012

Financial Instruments: Derivatives and Hedging

Financial Instruments: Derivatives and Hedging

15.  Financial Instruments: Derivatives and Hedging

We recognize all derivatives on the balance sheet at fair value.  Derivatives that are not hedges must be adjusted to fair value through earnings.  If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings.  The ineffective portion of a derivative’s change in fair value will be immediately recognized in earnings.  Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows.

The following table summarizes the notional and fair value of our derivative financial instruments and foreign currency hedges at June 30, 2012 based on Level 2 information pursuant to ASC 810-10.  The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (amounts in thousands):

	Notional Value		Strike Rate		Effective Date	Expiration Date	Fair Value
Interest Rate Cap	$	775,000	3.650	%	04/2012	04/2013	$	—
Interest Rate Cap	$	280,000	6.000	%	11/2011	11/2012	$	—
Interest Rate Swap	$	30,000	2.295	%	7/2010	6/2016	$	(1,944	)
Interest Rate Swap	$	8,500	0.740	%	2/2012	2/2015	$	(68	)
Currency Hedge	$	20,748	1.55185	GBP-USD	9/2010	12/2012	$	(170	)

The currency hedge and certain interest rate caps are not designated as a hedging instrument and changes in the value are marked to market through earnings.

On June 30, 2012, the derivative instruments were reported as an obligation at their fair value of approximately $2.2 million.  This is included in Other Liabilities on the consolidated balance sheet at June 30, 2012.  Included in Accumulated Other Comprehensive Loss at June 30, 2012 was approximately $17.5 million from the settlement of hedges, which are being amortized over the remaining term of the related mortgage obligation, and active hedges and our share of joint venture accumulated other comprehensive loss of approximately $18.0 million.  Currently, all of our designated derivative instruments are effective hedging instruments.

In March 2010, we terminated forward swaps which resulted in a net loss of approximately $19.5 million from the settlement of the hedges.  This payment was included in financing activities in the consolidated statement of cash flows.  This loss will be amortized over the 10-year term of the related financing.  This loss is included in the $17.5 million balance noted above. The balance in Accumulated Other Comprehensive Loss relating to derivatives was $35.5 million and $35.4 million at June 30, 2012 and December 31, 2011, respectively.

Over time, the realized and unrealized gains and losses held in Accumulated Other Comprehensive Loss will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings.  We estimate that approximately $1.8 million of the current balance held in Accumulated Other Comprehensive Loss will be reclassified into earnings within the next 12 months.

We are hedging exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on existing debt.

The following table presents the effect of our derivative financial instruments and our share of our joint venture’s derivative financial instruments on the Consolidated Statements of Income for the three months ended June 30, 2012 and 2011, respectively (amounts in thousands):

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Three Months Ended						Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Three Months Ended						Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) For the Three Months Ended
Designation\Cash Flow	Derivative	June 30, 2012			June 30, 2011			June 30,2012			June 30, 2011			June 30, 2012			June 30, 2011
Qualifying	Interest Rate Swaps/Caps	$	(6,844	)	$	(6,186	)	$	(3,215	)	$	(3,145	)	$	(1	)	$	(18	)
Non-qualifying	Interest Rate Caps/Currency Hedges	—			—			—			—			380			(127		)

The following table presents the effect of our derivative financial instruments and our share of our joint venture’s derivative financial instruments on the Consolidated Statements of Income for the six months ended June 30, 2012 and 2011, respectively (amounts in thousands):

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Six Months Ended						Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Six Months Ended						Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) For the Six Months Ended
Designation\Cash Flow	Derivative	June 30, 2012			June 30, 2011			June 30,2012			June 30, 2011			June 30, 2012			June 30, 2011
Qualifying	Interest Rate Swaps/Caps	$	(6,923	)	$	(6,304	)	$	(6,416	)	$	(6,216	)	$	(1	)	$	(18	)
Non-qualifying	Interest Rate Caps/Currency Hedges	—			—			—			—			(331		)	(657		)

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Equity (Details 2) (USD $)	6 Months Ended					6 Months Ended				6 Months Ended		6 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 Second Amended and Restated 2005 Stock Option and Incentive Plan	Jun. 30, 2012 Full-value awards fungibleunits	Jun. 30, 2012 Stock options, stock appreciation rights and other awards fungibleunits	Jun. 30, 2012 All other awards fungibleunits	Jun. 30, 2012 Series C Preferred Stock	Dec. 31, 2011 Series C Preferred Stock	Jun. 30, 2012 Series D Preferred Stock	Dec. 31, 2011 Series D Preferred Stock	Jun. 30, 2012 At-the-market equity offering programs	Jul. 31, 2011 At-the-market equity offering programs	Jun. 30, 2012 Dividend Reinvestment and Stock Purchase Plan (DRIP)	Jun. 30, 2011 Dividend Reinvestment and Stock Purchase Plan (DRIP)	Mar. 31, 2012 Dividend Reinvestment and Stock Purchase Plan (DRIP)
Stockholders' Equity
Aggregate value of the shares of common stock to be sold													$ 250,000,000
Common stock, shares issued												2,600,000		1,300,000	87
Aggregate gross proceeds from shares sold												204,600,000
Net proceeds from sale of common stock	201,307,000	419,463,000										201,600,000		99,500,000	6,500
Aggregate value of shares available for issuance												$ 45,400,000
Perpetual Preferred stock, shares outstanding								11,700,000	11,700,000	4,000,000	4,000,000
Perpetual Preferred Units (as a percent)								7.625%		7.875%
Perpetual Preferred stock, liquidation preference (in dollars per share)								$ 25.00	$ 25.00	$ 25.00	$ 25.00
Perpetual Preferred stock, annual dividends per share (in dollars per share)								$ 1.90625		$ 1.96875
Common stock, shares authorized	160,000,000		160,000,000													3,500,000
Maximum fungible units that may be granted (in shares)						10,730,000
Fungible units per share					1.65	0.79	1.0
Award expiration period (in years)						P5Y	P10Y
Shares that may be issued if equal to fungible units				10,730,000
Fungible units available for issuance (in shares)				4,100,000
Fungible units available for issuance if issued as five year stock options (in shares)				5,200,000
Preferred stock, par value (in dollars per share)	$ 0.01							$ 0.01	$ 0.01	$ 0.01	$ 0.01

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Consolidated Statement of Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Additional Paid-In-Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Noncontrolling Interests	Series C Preferred Stock	Series D Preferred Stock
Balance at Dec. 31, 2011	$ 6,453,309	$ 892	$ 4,236,959	$ (308,708)	$ (28,445)	$ 1,704,506	$ 477,762	$ 274,022	$ 96,321
Balance (in shares) at Dec. 31, 2011		85,783,000
Increase (Decrease) in Stockholders' Equity
Net income after allocation to noncontrolling interests in SLGOP	148,343					143,385	4,958
Comprehensive Income:	32				32
Preferred dividends	(15,089)					(15,089)
Redemption of units and DRIP proceeds	100,024	13	100,011
Redemption of units and DRIP proceeds (in shares)		1,311,000
Reallocation of noncontrolling interest in the Operating Partnership	(46,810)					(46,810)
Deferred compensation plan & stock award, net	(10,614)	3	541	(11,158)
Deferred compensation plan & stock award, net (in shares)		67,000
Amortization of deferred compensation plan	13,208		13,208
Proceeds from issuance of common stock	201,307	27	201,280
Proceeds from issuance of common stock (in shares)		2,640,000
Proceeds from stock options exercised	5,654	1	5,653
Proceeds from stock options exercised (in shares)		137,000
Consolidation of joint venture interest	18,799						18,799
Cash distributions to noncontrolling interests	(11,999)						(11,999)
Cash distribution declared ($0.50 per common share, none of which represented a return of capital for federal income tax purposes)	(44,832)					(44,832)
Balance at Jun. 30, 2012	$ 6,811,332	$ 936	$ 4,557,652	$ (319,866)	$ (28,413)	$ 1,741,160	$ 489,520	$ 274,022	$ 96,321
Balance (in shares) at Jun. 30, 2012	89,937,501	89,938,000

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Series C Preferred Stock	Dec. 31, 2011 Series C Preferred Stock	Nov. 30, 2011 Series C Preferred Stock	Jun. 30, 2012 Series D Preferred Stock	Dec. 31, 2011 Series D Preferred Stock	Jun. 30, 2012 Series H Preferred Units	Dec. 31, 2011 Series H Preferred Units	Jun. 30, 2012 Series G Preferred Units
Tenant and other receivables, allowance (in dollars)	$ 20,826	$ 16,772
Deferred rents receivable, allowance (in dollars)	31,343	29,156
Debt and preferred equity investments, discount (in dollars)	22,601	24,996
Debt and preferred equity investments, allowance (in dollars)	$ 41,050	$ 50,175
Preferred units, liquidation preference (in dollars per share)					$ 25.00			$ 25.00	$ 25.00	$ 25.00
Preferred units, shares issued					80,000			80,000	80,000	1,902,000
Preferred Units, shares outstanding								80,000	80,000	1,902,000
Preferred stock, par value (in dollars per share)	$ 0.01		$ 0.01	$ 0.01		$ 0.01	$ 0.01
Preferred stock, liquidation preference (in dollars per share)			$ 25.00	$ 25.00		$ 25.00	$ 25.00
Preferred stock, shares issued			11,700,000	11,700,000		4,000,000	4,000,000
Preferred stock, shares outstanding			11,700,000	11,700,000		4,000,000	4,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	160,000,000	160,000,000
Common stock, shares issued	93,543,000	89,210,000
Common stock, shares outstanding	93,543,000	89,210,000
Treasury stock, shares	3,605,000	3,427,000

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Mortgages and Other Loans Payable

6 Months Ended

Jun. 30, 2012

Mortgages and Other Loans Payable

Mortgages and Other Loans Payable

8.  Mortgages and Other Loans Payable

The first mortgages and other loans payable collateralized by the respective properties and assignment of leases at June 30, 2012 and December 31, 2011, respectively, were as follows (amounts in thousands):

Property(1)	Maturity Date	Interest Rate(2)		June 30, 2012		December 31, 2011
400 East 57th Street	02/2024	4.13	%	$	70,000	$	—
400 East 58th Street	02/2024	4.13	%	30,000		—
919 Third Avenue(3)	06/2023	5.12	%	500,000		500,000
100 Church	07/2022	4.68	%	230,000		—
One Madison Avenue	05/2020	5.91	%	617,353		626,740
Other loan payable(4)	09/2019	8.00	%	50,000		50,000
885 Third Avenue	07/2017	6.26	%	267,650		267,650
110 East 42nd Street(5)	07/2017	5.81	%	65,000		65,000
2 Herald Square	04/2017	5.36	%	191,250		191,250
485 Lexington Avenue	02/2017	5.61	%	450,000		450,000
120 West 45th Street	02/2017	6.12	%	170,000		170,000
300 Main Street	02/2017	5.75	%	11,500		11,500
762 Madison Avenue	02/2017	3.75	%	8,448		—
Landmark Square	12/2016	4.00	%	85,250		86,000
420 Lexington Avenue(6)	09/2016	7.15	%	186,107		187,182
500 West Putnam	01/2016	5.52	%	24,315		24,563
625 Madison Avenue	11/2015	7.22	%	127,462		129,098
711 Third Avenue	06/2015	4.99	%	120,000		120,000
125 Park Avenue	10/2014	5.75	%	146,250		146,250
609 Partners, LLC(7)	07/2014	5.00	%	23		31,721
220 East 42nd Street	11/2013	5.25	%	188,197		190,431
609 Fifth Avenue	10/2013	5.85	%	94,167		94,963
673 First Avenue	02/2013	5.67	%	29,451		29,906
292 Madison Avenue(8)				—		59,099
Total fixed rate debt				$	3,662,423	$	3,431,353
1515 Broadway(9)	04/2018	3.60	%	$	773,726	$	450,363
180 Maiden Lane(10)	11/2016	2.60	%	275,314		279,332
Other loan payable(11)	06/2013	3.51	%	62,792		62,792
521 Fifth Avenue(12)	04/2013	2.24	%	150,000		150,000
Total floating rate debt				$	1,261,832	$	942,487
Total mortgages and other loans payable				$	4,924,255	$	4,373,840

(1)Held in bankruptcy remote special purpose entity.

(2)Effective contractual interest rate for the quarter ended June 30, 2012.

(3)We own a 51% controlling interest in the joint venture that is the borrower on this loan.  This loan is non-recourse to us.  In June 2011, our joint venture replaced the $219.9 million 6.87% mortgage that was due to mature in August 2011 with a $500.0 million mortgage.

(4)This loan is secured by a portion of a preferred equity investment.

(5)We took control of this property in May 2011 and assumed the mortgage as part of the transaction. This loan consists of a $65.0 million A-tranche and an $18.1 million B-tranche. The B-tranche does not accrue interest and is due only under certain circumstances as described in the loan agreement.

(6)We increased this loan by $40.0 million in March 2011.

(7)As part of an acquisition, we issued 63.9 million units of our 5.0% Series E preferred units, or the Series E units, with a liquidation preference of $1.00 per unit. As of June 30, 2012, 63.8 million Series E units had been redeemed.

(8)This property was sold in February 2012 and the related mortgage, which was included in Liabilities related to assets held for sale, was assumed by the purchaser.

(9)We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011. In April 2012, we refinanced the $447.2 million mortgage that was due in December 2014 with a $775.0 million 7-year mortgage which carries interest at the rate equal to the greater of (a) 285 basis points over 90-day LIBOR or (b) 3.6% per annum.

(10)In connection with this consolidated joint venture obligation, we executed a master lease agreement. Our partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

(11)This loan bears interest at 250 basis points over the three month GBP LIBOR.  This loan is denominated in British Pounds. This loan was included in Liabilities related to assets held for sale on the consolidated balance sheet at June 30, 2012.

(12)We assumed a $140.0 million mortgage in connection with the acquisition of the remaining partnership interest in January 2011. As a result, we have consolidated this investment since January 2011. The mortgage was scheduled to mature in April 2011. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR.

At June 30, 2012 and December 31, 2011, the gross book value of the properties collateralizing the mortgages and other loans payable was approximately $7.7 billion and $7.4 billion, respectively.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Jul. 31, 2012
Document and Entity Information
Entity Registrant Name	SL GREEN REALTY CORP
Entity Central Index Key	0001040971
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		90,152,710
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

XML

Corporate Indebtedness

6 Months Ended

Jun. 30, 2012

Corporate Indebtedness

Corporate Indebtedness

9.  Corporate Indebtedness

2011 Revolving Credit Facility

In November 2011, we entered into a $1.5 billion revolving credit facility, or the 2011 revolving credit facility. The 2011 revolving credit facility bears interest at a spread over LIBOR ranging from 100 basis points to 185 basis points, based on the credit rating assigned to the senior unsecured long-term indebtedness of ROP.  At June 30, 2012, the applicable spread was 150 basis points.  The 2011 revolving credit facility matures in November 2015 and has a one-year as-of-right extension option, subject to certain conditions and the payment of an extension fee of 20 basis points.  We also have an option, subject to customary conditions, without the consent of existing lenders, to increase the capacity under the 2011 revolving credit facility to $1.75 billion at any time prior to the maturity date.  We are required to pay quarterly in arrears a 17.5 to 45 basis point facility fee on the total commitments under the 2011 revolving credit facility, which fee is based on the credit rating assigned to the senior unsecured long-term indebtedness of ROP. As of June 30, 2012, the facility fee was 35 basis points. At June 30, 2012, we had approximately $80.0 million of borrowings and $109.3 million of letters of credit outstanding under the 2011 revolving credit facility, with undrawn capacity of $1.3 billion.

The Company, ROP and the Operating Partnership are all borrowers jointly and severally obligated under the 2011 revolving credit facility.  No other subsidiary of ours is an obligor under the 2011 revolving credit facility.

The 2011 revolving credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

2007 Revolving Credit Facility

The 2011 revolving credit facility replaced our $1.5 billion revolving credit facility, or the 2007 revolving credit facility, which was terminated concurrently with the entering into the 2011 revolving credit facility.  The 2007 revolving credit facility bore interest at a spread over the 30-day LIBOR ranging from 70 basis points to 110 basis points, based on our leverage ratio, and required a 12.5 to 20 basis point fee, also based on our leverage ratio, on the unused balance payable annually in arrears.  The 2007 revolving credit facility included certain restrictions and covenants and, as of the time of the termination of the 2007 revolving credit facility and as of October 31, 2011, we were in compliance with all such restrictions and covenants.

Senior Unsecured Notes

The following table sets forth our senior unsecured notes and other related disclosures by scheduled maturity date as of June 30, 2012 and December 31, 2011, respectively (amounts in thousands):

Issuance	June 30, 2012 Unpaid Principal Balance		June 30, 2012 Accreted Balance		December 31, 2011 Accreted Balance		Coupon Rate(1)		Effective Rate		Term (in Years)	Maturity
March 26, 2007(2)	$	18,003	$	18,003	$	119,423	3.000	%	3.000	%	20	March 30, 2027
June 27, 2005(3)(4)	357		357		657		4.000	%	4.000	%	20	June 15, 2025
March 16, 2010(5)	250,000		250,000		250,000		7.750	%	7.750	%	10	March 15, 2020
August 5, 2011(5)	250,000		249,593		249,565		5.000	%	5.031	%	7	August 15, 2018
October 12, 2010(6)	345,000		282,414		277,629		3.000	%	7.125	%	7	October 15, 2017
March 31, 2006(3)	275,000		274,824		274,804		6.000	%	6.019	%	10	March 31, 2016
August 13, 2004(3)	98,578		98,578		98,578		5.875	%	5.875	%	10	August 15, 2014
	$	1,236,938	$	1,173,769	$	1,270,656

(1)Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

(2)In March 2007, the Operating Partnership issued $750.0 million of these exchangeable notes.  Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a 25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are currently redeemable at the Operating Partnership’s option.  The Operating Partnership may be required to repurchase the notes on March 30, 2017 and 2022, and upon the occurrence of certain designated events. On March 30, 2012, we repurchased $102.2 million of aggregate principal amount of the exchangeable notes pursuant to a mandatory offer to repurchase the notes. On the issuance date, $66.6 million was recorded in equity and was fully amortized as of March 31, 2012.

(3)Issued by ROP.

(4)Exchangeable senior debentures which are currently callable at  par.  In addition, the debentures can be put to ROP, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions.  As a result of the acquisition of all outstanding shares of common stock of Reckson, or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491.  During the six months ended June 30, 2012, we repurchased $300,000 of these bonds at par.

(5)Issued by us, the Operating Partnership and ROP, as co-obligors.

(6)In October 2010, the Operating Partnership issued $345.0 million of these exchangeable notes.  Interest on these notes is payable semi-annually on April 15 and October 15. The notes have an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. On the issuance date, $78.3 million was recorded in equity.  As of June 30, 2012, approximately $62.6 million remained unamortized.

Junior Subordinate Deferrable Interest Debentures

In June 2005, we issued $100.0 million in unsecured floating rate trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership.  The securities mature in 2035 and bear interest at a fixed rate of 5.61% for the first ten years ending July 2015.  Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments.  The trust preferred securities are redeemable, at the option of the Operating Partnership, in whole or in part, with no prepayment premium.  We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary.  Because the Trust is not consolidated, we have recorded the debt on our balance sheet and the related payments are classified as interest expense.

Restrictive Covenants

The terms of the 2011 revolving credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends (as discussed below), make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the minimum amount of tangible net worth, a maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges and a maximum ratio of unsecured indebtedness to unencumbered asset value.  The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable us to continue to qualify as a REIT for Federal income tax purposes. As of June 30, 2012 and December 31, 2011, we were in compliance with all such covenants.

Principal Maturities

Combined aggregate principal maturities of mortgages and other loans payable, 2011 revolving credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of June 30, 2012, including as-of-right extension options, were as follows (amounts in thousands):

	Scheduled Amortization		Principal Repayments		Revolving Credit Facility		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
2012	$	25,050	$	—	$	—	$	—	$	—	$	25,050	$	56,706
2013	50,910		516,179		—		—		—		567,089		127,516
2014	52,519		146,273		—		—		98,578		297,370		123,984
2015	55,815		229,537		—		—		357		285,709		102,478
2016	55,303		516,896		80,000		—		274,824		927,023		528,305
Thereafter	288,797		2,986,976		—		100,000		800,010		4,175,783		980,761
	$	528,394	$	4,395,861	$	80,000	$	100,000	$	1,173,769	$	6,278,024	$	1,919,750

Interest expense, excluding capitalized interest, was comprised of the following (amounts in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Interest expense	$	82,728		$	68,711		$	163,275		$	133,463
Interest income	(401		)	(538		)	(811		)	(1,024		)
Interest expense, net	$	82,327		$	68,173		$	162,464		$	132,439
Interest capitalized	$	2,996		$	922		$	5,532		$	2,217

XML

Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues
Rental revenue, net	$ 267,691	$ 238,635	$ 528,505	$ 465,655
Escalation and reimbursement	41,584	34,994	83,247	65,269
Investment and preferred equity income	33,448	15,144	59,786	79,823
Other income	6,282	9,932	16,659	17,180
Total revenues	349,005	298,705	688,197	627,927
Expenses
Operating expenses (including approximately $4,729 and $8,188 (2012) and $3,498 and $6,613 (2011) paid to affiliates)	68,919	62,395	142,188	122,698
Real estate taxes	52,569	43,975	104,067	84,042
Ground rent	8,890	7,813	17,696	15,647
Interest expense, net of interest income	82,327	68,173	162,464	132,439
Amortization of deferred financing costs	3,553	2,684	7,133	6,483
Depreciation and amortization	77,812	65,539	154,895	129,036
Loan loss and other investment reserves, net of recoveries		1,280	564	(1,870)
Transaction related costs	1,970	1,217	3,121	3,651
Marketing, general and administrative	20,721	22,454	40,917	42,475
Total expenses	316,761	275,530	633,045	534,601
Income from continuing operations before equity in net income of unconsolidated joint ventures, noncontrolling interests and discontinued operations	32,244	23,175	55,152	93,326
Equity in net income from unconsolidated joint ventures	70,890	2,184	69,330	10,390
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate	9,534		16,794
Purchase price fair value adjustment		475,102		488,890
Loss on investment in marketable securities		(6)		(133)
Depreciable real estate reserves, net of recoveries	5,789		5,789
Gain on early extinguishment of debt		971		971
Income from continuing operations	118,457	501,426	147,065	593,444
Net (loss) income from discontinued operations		1,676	(78)	3,549
Gain on sale of discontinued operations		46,085	6,627	46,085
Net income	118,457	549,187	153,614	643,078
Net income attributable to noncontrolling interests in the operating partnership	(3,421)	(11,925)	(4,309)	(13,776)
Net income attributable to noncontrolling interests in other partnerships	(3,887)	(3,259)	(4,958)	(6,869)
Preferred units distributions	(565)		(962)
Net income attributable to SL Green	110,584	534,003	143,385	622,433
Preferred stock dividends	(7,544)	(7,545)	(15,089)	(15,089)
Net income attributable to SL Green common stockholders	103,040	526,458	128,296	607,344
Amounts attributable to SL Green common stockholders:
Income from continuing operations	93,833	15,324	105,718	80,803
Purchase price fair value adjustment		464,445		478,012
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	9,207		16,244
Net (loss) income from discontinued operations		1,638	(76)	3,469
Gain on sale of discontinued operations		45,051	6,410	45,060
Net income	$ 103,040	$ 526,458	$ 128,296	$ 607,344
Basic earnings per share:
Net income from continuing operations before discontinued operations (in dollars per share)	$ 1.05	$ 5.74	$ 1.2	$ 6.85
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate (in dollars per share)	$ 0.10		$ 0.18
Net income from discontinued operations (in dollars per share)		$ 0.02		$ 0.04
Gain on sale of discontinued operations (in dollars per share)		$ 0.54	$ 0.07	$ 0.55
Net income attributable to SL Green common stockholders (in dollars per share)	$ 1.15	$ 6.3	$ 1.45	$ 7.44
Diluted earnings per share:
Net income from continuing operations before discontinued operations (in dollars per share)	$ 1.04	$ 5.7	$ 1.20	$ 6.81
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate (in dollars per share)	$ 0.10		$ 0.18
Net income from discontinued operations (in dollars per share)		$ 0.02		$ 0.04
Gain on sale of discontinued operations (in dollars per share)		$ 0.54	$ 0.07	$ 0.55
Net income attributable to SL Green common stockholders (in dollars per share)	$ 1.14	$ 6.26	$ 1.45	$ 7.4
Dividends per share (in dollars per share)	$ 0.25	$ 0.10	$ 0.50	$ 0.20
Basic weighted average common shares outstanding (in shares)	89,789	83,578	88,265	81,632
Diluted weighted average common shares and common share equivalents outstanding (in shares)	93,351	86,010	91,766	83,995

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Property Acquisitions

6 Months Ended

Jun. 30, 2012

Property Acquisitions

Property Acquisitions

3.  Property Acquisitions

2012 Acquisitions

In June 2012, we acquired a 215,000 square foot mixed-use office and retail building at 304 Park Avenue South for $135.0 million. The property was acquired with approximately $102.0 million in cash and $33.0 million in units of limited partnership interest in the Operating Partnership. We are currently in the process of analyzing the fair value of the in-place leases; and consequently, no value has yet been assigned to the leases. Therefore, the purchase price allocation is preliminary and subject to change.

In October 2011, we formed a joint venture with Stonehenge Partners and, in January 2012, we acquired five retail and two multifamily properties in Manhattan for $193.1 million, inclusive of the issuance of $47.6 million aggregate liquidation preference of 4.5% Series G preferred units of limited partnership interest in the Operating Partnership. Simultaneous with the closing, we financed the residential component, which encompasses 385 units and 488,000 square feet, with an aggregate 12-year $100.0 million fixed rate mortgage which bears interest at 4.125% and one of the retail properties was financed with a 5-year $8.5 million mortgage. We hold an 80% interest in this joint venture which we consolidate as it is a VIE and we have been designated as the primary beneficiary.

The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these 2012 acquisitions (amounts in thousands):

	Stonehenge Properties
	(Preliminary)
Land	$	65,723
Building	122,049
Above market lease value	598
Acquired in-place leases	9,038
Other assets, net of other liabilities	2,278
Assets acquired	199,686
Fair value adjustment to mortgage note payable	—
Below market lease value	6,578
Liabilities assumed	6,578
Purchase price allocation	$	193,108
Net consideration funded by us at closing	$	78,121
Equity and/or debt investment held	$	—
Debt assumed	$	—

2011 Acquisitions

In November 2011, we acquired all of the interests in 51 East 42nd Street, a 142,000 square-foot office building for approximately $80.0 million, inclusive of the issuance of $2.0 million aggregate liquidation preference of 6.0% Series H preferred units of limited partnership interest in the Operating Partnership.

In November 2011, we, along with The Moinian Group, formed a joint venture to recapitalize 180 Maiden Lane, a fully-leased, 1.1 million-square-foot Class A office tower. The consideration for our 49.9 percent stake in the joint venture included $41.0 million in cash and Operating Partnership units valued at $31.7 million. In connection with the issuance of these Operating Partnership units, we recorded an $8.3 million fair value adjustment due to changes in our stock price. Simultaneous with the closing of the recapitalization, the joint venture refinanced the existing $344.2 million indebtedness with a five-year $280-million mortgage. We consolidate this joint venture due to the control we exert over leasing activities at the property. We consolidate this joint venture as it is a VIE and we have been designated as the primary beneficiary.

In May 2011, we acquired a substantial ownership interest in the 205,000-square-foot office condominium at 110 East 42nd Street, along with control of the asset. We had previously provided a $16.0 million senior mezzanine loan as part of our sale of the condominium unit in 2007. The May 2011 transaction included a consensual modification of that loan. In conjunction with the transaction, we successfully restructured the in-place mortgage financing, which had previously been in default.

In April 2011, we purchased SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ’s, 31.5% economic interest in 1515 Broadway, thereby consolidating full ownership of the 1,750,000 square foot building. The transaction valued the consolidated interests at $1.23 billion. This valuation was based on a negotiated sales agreement and took into consideration such factors as whether this was a distressed sale and whether a minority discount was warranted. We acquired the interest subject to the $458.8 million mortgage encumbering the property. We recognized a purchase price fair value adjustment of $475.1 million upon the closing of this transaction. This property, which we initially acquired in May 2002, was previously accounted for as an investment in unconsolidated joint ventures.

In January 2011, we purchased City Investment Fund, or CIF’s, 49.9% interest in 521 Fifth Avenue, thereby assuming full ownership of the 460,000 square foot building. The transaction valued the consolidated interests at approximately $245.7 million, excluding $4.5 million of cash and other assets acquired. We acquired the interest subject to the $140.0 million mortgage encumbering the property. We recognized a purchase price fair value adjustment of $13.8 million upon the closing of this transaction. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR.  In connection with that refinancing, we acquired the fee interest in the property for $15.0 million.

The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these 2011 acquisitions (amounts in thousands):

	51 East 42nd Street		180 Maiden Lane		110 East 42nd Street		1515 Broadway			521 Fifth Avenue
Land	$	44,095	$	191,523	$	34,000	$	462,700		$	110,100
Building	33,470		233,230		46,411		707,938			146,686
Above market lease value	5,616		7,944		823		18,298			3,318
Acquired in-place leases	4,333		29,948		5,396		98,661			23,016
Other assets, net of other liabilities	—		—		—		27,127			—
Assets acquired	87,514		462,645		86,630		1,314,724			283,120
Fair value adjustment to mortgage note payable	—		—		—		(3,693		)	—
Below market lease value	7,514		20,320		2,326		84,417			25,977
Liabilities assumed	7,514		20,320		2,326		80,724			25,977
Purchase price allocation	$	80,000	$	442,325	$	84,304	$	1,234,000		$	257,143
Net consideration funded by us at closing	$	81,632	$	81,835	$	2,744	$	259,228		$	70,000
Equity and /or debt investment held	—		—		$	16,000	$	40,942		$	41,432
Debt assumed	$	—	$	—	$	65,000	$	458,767		$	140,000

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Significant Accounting Policies

Significant Accounting Policies

2.  Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as debt and preferred equity investments.  See Notes 5, “Debt and Preferred Equity Investments” and 6, “Investment in Unconsolidated Joint Ventures.”  All significant intercompany balances and transactions have been eliminated.

The Financial Accounting Standards Board, or FASB, guidance for determining whether an entity is a variable interest entity, or VIE, requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent.  Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and modified the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and noncontrolling interests.

We assess the accounting treatment for each joint venture and debt and preferred equity investment.  This assessment includes a review of each joint venture or limited liability company agreement to determine which party has what rights and whether those rights are protective or participating.  For all VIE’s, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance.  In situations where we or our partner approves, among other things, the annual budget, receives a detailed monthly reporting package from us, meets on a quarterly basis to review the results of the joint venture, reviews and approves the joint venture’s tax return before filing, and approves all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture.  Our joint venture agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

Investment in Commercial Real Estate Properties

On a periodic basis, we assess whether there are any indicators that the value of our real estate properties may be impaired or that their carrying value may not be recoverable.  A property’s value is considered impaired if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property is less than the carrying value of the property.  To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property.  In addition, we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value.  We evaluate our equity investments for impairment based on the joint venture’s projected discounted cash flows. In November 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of one of our equity investments. In June 2012, we reversed this entire impairment charge. See Note 6, “Investments in Unconsolidated Joint Ventures.” No impairment charge was recorded during the three or six months ended June 30, 2012 and 2011. We do not believe that the value of any of our consolidated properties or equity investments was impaired at June 30, 2012 and December 31, 2011.

We allocate the purchase price of real estate to land and building and, if determined to be material, intangibles, such as the value of above-, below- and at-market leases and origination costs associated with the in-place leases.  We depreciate the amount allocated to building and other intangible assets over their estimated useful lives, which generally range from three to 40 years and from one to 14 years, respectively.  The values of the above- and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the associated lease, which generally range from one to 14 years.  The value associated with in-place leases is amortized over the expected term of the associated lease, which generally ranges from one to 14 years.  If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off.  The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date).  We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information.  Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below market and determined to be material, we amortized such below market lease value into rental income over the renewal period.

We recognized an increase of approximately $2.7 million, $4.9 million, $5.1 million, $12.3 million in rental revenue for the three and six months ended June 30, 2012 and 2011, respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties.  We recognized an increase/(reduction) in interest expense for the amortization of the above-market rate mortgages assumed of approximately $1.6 million, $0.6 million, $(1.7) million and $(3.0) million for the three and six months ended June 30, 2012 and 2011, respectively.

The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) (amounts in thousands):

	June 30, 2012			December 31, 2011
Identified intangible assets (included in other assets):
Gross amount	$	733,250		$	673,495
Accumulated amortization	(233,003		)	(193,442		)
Net	$	500,247		$	480,053
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	656,441		$	622,029
Accumulated amortization	(327,986		)	(290,893		)
Net	$	328,455		$	331,136

Fair Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy).

We determined the fair value of our current investments in marketable securities using Level 1, Level 2 and Level 3 inputs. Additionally, we determined the valuation allowance for loan losses based on Level 3 inputs. See Note 5, “Debt and Preferred Equity Investments.”

The estimated fair values of tangible and intangible assets and liabilities recorded in connection with business combinations are based on Level 3 inputs. We estimate fair values based on cash flow projections utilizing appropriate discount and/or capitalization rates and available market information.

We determine impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as Level 3 inputs.

We use the following methods and assumptions in estimating fair value disclosures for financial instruments.

·Cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and other assets and liabilities:  The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and other assets and liabilities reported in our consolidated balance sheets approximates fair value due to the short-term nature  of these instruments.

·Debt and preferred equity investments:  The fair value of debt and preferred equity investments is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. See “Reserve for Possible Credit Losses” below regarding valuation allowances for loan losses.

·Mortgage and other loans payable and other debt:  The fair value of borrowings is estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

The methodologies used for valuing financial instruments have been categorized into three broad levels as follows:

Level 1 — Quoted prices in active markets for identical instruments.

Level 2 — Valuations based principally on other observable market parameters, including

·         Quoted prices in active markets for similar instruments,

·         Quoted prices in less active or inactive markets for identical or similar instruments,

·Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and

·         Market corroborated inputs (derived principally from or corroborated by observable market data).

Level 3 — Valuations based significantly on unobservable inputs.

·Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.

·Valuations based on internal models with significant unobservable inputs.

These levels form a hierarchy. We follow this hierarchy for our financial instruments measured at fair value on a recurring and nonrecurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.

Investment in Marketable Securities

We invest in marketable securities. At the time of purchase, we are required to designate a security as held-to-maturity, available-for-sale, or trading depending on ability and intent. We do not have any securities designated as held-to-maturity or trading at this time. Securities available-for-sale are reported at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss.  Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. Included in accumulated other comprehensive loss at June 30, 2012 is approximately $7.1 million in net unrealized gains related to marketable securities.

The cost of bonds and marketable securities sold is determined using the specific identification method.

At June 30, 2012 and December 31, 2011, we held the following marketable securities (amounts in thousands):

	June 30,		December 31,
	2012		2011
Level 1 — Equity marketable securities	$	8,065	$	8,065
Level 2 — Commercial mortgage-backed securities	11,636		13,369
Level 3 — Rake bonds	3,801		3,889
Total marketable securities available-for-sale	$	23,502	$	25,323

The cost basis of the Level 3 securities was $3.8 million at June 30, 2012 and $3.9 million at December 31, 2011. There were no sales of Level 3 securities during the six months ended June 30, 2012. The Level 3 securities mature at various times through 2030.

Revenue Recognition

Interest income on debt and preferred equity investments is recognized over the life of the investment using the effective interest method and recognized on the accrual basis.  Fees received in connection with loan commitments are deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield.  Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield.  Fees on commitments that expire unused are recognized at expiration.

Income recognition is generally suspended for debt and preferred equity investments at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of income and principal becomes doubtful.  Income recognition is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. Several of the debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management’s determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount.

Reserve for Possible Credit Losses

The expense for possible credit losses in connection with debt and preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality.  Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions.  Based upon these factors, we establish the provision for possible credit losses on each individual investment.  When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired.

Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral.  Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense.  The write-off of the reserve balance is called a charge off.  We recorded loan loss reserves of zero, $3.0 million, $2.5 million and $2.5 million on investments being held to maturity during the three and six months ended June 30, 2012 and 2011, respectively.  We also recorded recoveries of approximately zero, $2.4 million, $1.2 million and $4.4 million during the three and six months ended June 30, 2012 and 2011, respectively, in connection with the sale of investments. This is included in Loan loss and other investment reserves, net of recoveries in the accompanying Consolidated Statements of Income.

Debt and preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale.  In such situations, the investment will be reclassified at its net carrying value to debt and preferred equity investments held to maturity.  For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment.

Income Taxes

We are taxed as a REIT under Section 856(c) of the Code. As a REIT, we generally are not subject to Federal income tax.  To maintain our qualification as a REIT, we must distribute at least 90% of our REIT taxable income to our stockholders and meet certain other requirements.  If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income tax on our taxable income at regular corporate rates.  We may also be subject to certain state, local and franchise taxes.  Under certain circumstances, Federal income and excise taxes may be due on our undistributed taxable income.

Pursuant to amendments to the Code that became effective January 1, 2001, we have elected, and may in the future elect, to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or a TRS.  In general, a TRS of ours may perform non-customary services for our tenants, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business.  Our TRSs generate income, resulting in Federal income tax liability for these entities.  Our TRSs did not record any Federal, state and local tax provision during either of the six months ended June 30, 2012 and 2011, respectively, and made estimated tax payments of zero and $0.1 million during the six months ended June 30, 2012 and 2011, respectively.

We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Stock-Based Employee Compensation Plans

We have a stock-based employee compensation plan, described more fully in Note 12, “Equity”.

The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable.  In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility.  Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options.

Compensation cost for stock options, if any, is recognized ratably over the vesting period of the award.  Our policy is to grant options with an exercise price equal to the quoted closing market price of our stock on the grant date.  Awards of stock or restricted stock are expensed as compensation over the benefit period based on the fair value of the stock on the grant date.

For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date the Compensation Committee authorizes the award and adopts any relevant performance measures. For programs with performance or market measures, the total estimated compensation cost is based on the fair value of the award at the applicable reporting date estimated using a binomial model. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of Company common stock, at the current quoted market price, from certain key employee to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.

Awards can also be made in the form of a separate series of units of limited partnership interest in our Operating Partnership called long-term incentive plan units, or LTIP units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of our common stock at the time of grant, and are subject to such conditions and restrictions as our compensation committee may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.

Earnings per Share

We present both basic and diluted earnings per share, or EPS.  Basic EPS excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount.  This also includes units of limited partnership interest. The dilutive effect of the outstanding nonvested shares of common stock, or nonvested shares, and restricted stock units, or RSUs, that have not yet been granted but are contingently issuable under the share-based compensation programs is reflected in the weighted average diluted shares calculation by application of the treasury stock method at the beginning of the quarterly period in which all necessary conditions have been satisfied. The dilutive effect of stock options is reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior debentures as the conversion premium will be paid in cash.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable.  We place our cash investments in excess of insured amounts with high quality financial institutions.  The collateral securing our debt and preferred equity investments is primarily located in the New York Metropolitan area. See Note 5, “Debt and Preferred Equity Investments.” We perform ongoing credit evaluations of our tenants and require most tenants to provide security deposits or letters of credit.  Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space.  Although the properties in our real estate portfolio are primarily located in Manhattan, we also have properties located in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.  The tenants located in our buildings operate in various industries.  Other than three tenants who account for approximately 7.4%, 6.9% and 6.0% of our share of annualized cash rent, respectively, no other tenant in our portfolio accounted for more than 1.9% of our annualized cash rent, including our share of joint venture annualized cash rent at June 30, 2012. Approximately 9%, 5%, 6% and 6% of our annualized cash rent, including our share of joint venture annualized cash rent, was attributable to 1515 Broadway, 420 Lexington Avenue, 1185 Avenue of the Americas and One Madison Avenue, respectively, for the three months ended June 30, 2012.  In addition, two debt and preferred equity investments accounted for more than 10.0% of the income earned on debt and preferred equity investments during the three months ended June 30, 2012.

Reclassification

Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations.

Accounting Standards Updates

In May 2011, the FASB issued updated guidance on fair value measurement which amends U.S. GAAP to conform to IFRS measurement and disclosure requirements.  The amendments change the wording used to describe the requirements in U.S. GAAP for measuring fair value, changes certain fair value measurement principles and enhances disclosure requirements.  This guidance was effective as of the first quarter of 2012 and its adoption did not have a material effect on our consolidated financial statements.

In June 2011, the FASB issued guidance to increase the prominence of other comprehensive income in the financial statements. The standard gives businesses two options for presenting other comprehensive income, or OCI, which previously had been included within the statement of equity. An OCI statement may be included with the statement of income, and together the two will make a statement of total comprehensive income. Alternatively, businesses may have an OCI statement separate from the statement of income, but the two statements will have to appear consecutively within a financial report. These requirements related to the presentation of OCI became effective for interim and annual reporting periods beginning after December 15, 2011. We adopted this guidance and presented a separate Statement of Comprehensive Income in our consolidated financial statements. In December 2011, the FASB temporarily delayed those requirements that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. During the deferral period, the FASB plans to re-evaluate the requirement, with a final decision expected in 2012.

In December 2011, the FASB issued guidance that concluded when a parent ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt, the reporting entity must apply the accounting guidance for sales of real estate to determine whether it should derecognize the in substance real estate. The reporting entity is precluded from derecognizing the real estate until legal ownership has been transferred to the lender to satisfy the debt. The guidance is effective for calendar year-end public and nonpublic companies in 2013 and is to be applied on a prospective basis. Early adoption of the guidance is permitted. Adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies

Commitments and Contingencies

14.  Commitments and Contingencies

We and the Operating Partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business.  Management believes the costs, if any, incurred by us related to this litigation will not materially affect our financial position, operating results or liquidity.

The following is a schedule of future minimum lease payments under capital leases and noncancellable operating leases with initial terms in excess of one year as of June 30, 2012 (amounts in thousands):

June 30,	Capital lease			Non-cancellable operating leases
2012	$	777		$	16,820
2013	1,555			33,641
2014	1,555			33,641
2015	1,593			33,641
2016	1,707			33,745
Thereafter	42,351			630,503
Total minimum lease payments	49,538			$	781,991
Less amount representing interest	(32,390		)
Present value of net minimum lease payments	$	17,148

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2012

Fair Value of Financial Instruments

Fair Value of Financial Instruments

10.  Fair Value of Financial Instruments

The following disclosures of estimated fair value were determined by management using available market information and appropriate valuation methodologies as discussed in Note 2, “Significant Accounting Policies.”  Considerable judgment is necessary to interpret market data and develop estimated fair value.  Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments.  The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and cash equivalents, restricted cash, accounts receivable and accounts payable balances reasonably approximate their fair values due to the short maturities of these items.  Mortgages and other loans payable, junior subordinate deferrable interest debentures and the senior unsecured notes had an estimated fair value based on discounted cash flow models, based on Level 3 inputs, of approximately $5.4 billion, compared to the book value of the related fixed rate debt of approximately $5.0 billion at June 30, 2012.  Our floating rate debt, inclusive of our 2011 revolving credit facility, but excluding $30.0 million of which was swapped, had an estimated fair value based on discounted cash flow models, based on Level 3 inputs, of approximately $1.3 billion, compared to the book value of the related floating rate debt of approximately $1.3 billion at June 30, 2012. Our debt and preferred equity investments had an estimated fair value ranging between $0.8 billion and $0.9 billion, compared to the book value of approximately $1.0 billion at June 30, 2012, based on Level 3 inputs.

Disclosure about fair value of financial instruments is based on pertinent information available to us as of June 30, 2012.  Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

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Investment in Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2012

Investment in Unconsolidated Joint Ventures

Investment in Unconsolidated Joint Ventures

6.Investment in Unconsolidated Joint Ventures

We have investments in several real estate joint ventures with various partners, including The City Investment Fund, or CIF, SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ, Canada Pension Plan Investment Board, or CPPIB, a fund managed by JP Morgan Investment Management, or JP Morgan, Prudential Real Estate Investors, or Prudential, Onyx Equities, or Onyx, The Witkoff Group, or Witkoff, Credit Suisse Securities (USA) LLC, or Credit Suisse, Jeff Sutton, or Sutton, Harel Insurance and Finance, or Harel, Louis Cappelli, or Cappelli, The Moinian Group, or Moinian, Vornado Realty Trust (NYSE: VNO), or Vornado, as well as private investors. All the investments below are voting interest entities, except for 3 Columbus Circle and 180/182 Broadway which are VIEs in which we are not the primary beneficiary. Our net equity investment in these two VIEs was $167.2 million and, $161.9 million at June 30, 2012 and December 31, 2011, respectively. As we do not control the joint ventures listed below, we account for them under the equity method of accounting. We assess the accounting treatment for each joint venture on a stand-alone basis. This includes a review of each joint venture or LLC agreement to determine which party has what rights and whether those rights are protective or participating. In situations where we or our partner are involved in some or all of the following: approving the annual budget, receiving a detailed monthly reporting package from us, meeting with us on a quarterly basis to review the results of the joint venture, reviewing and approving the joint venture’s tax return before filing, and approving all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights. Our joint venture agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

The table below provides general information on each of our joint ventures as of June 30, 2012 (amounts in thousands):

Property	Partner	OwnershipInterest		EconomicInterest		SquareFeet	Acquired	AcquisitionPrice($)(1)
100 Park Avenue	Prudential	49.90	%	49.90	%	834	02/00	95,800
21 West 34th Street	Sutton	50.00	%	50.00	%	30	07/05	22,400
1604-1610 Broadway	Onyx/Sutton	45.00	%	63.00	%	30	11/05	4,400
27-29 West 34th Street	Sutton	50.00	%	50.00	%	41	01/06	30,000
717 Fifth Avenue(10)	Sutton/Nakash	10.92	%	10.92	%	120	09/06	251,900
800 Third Avenue	Private Investors	42.95	%	42.95	%	526	12/06	285,000
One Court Square(9)	JP Morgan	30.00	%	30.00	%	1,402	01/07	533,500
1745 Broadway	Witkoff/SITQ/Lehman Bros.	32.26	%	32.26	%	674	04/07	520,000
1 and 2 Jericho Plaza	Onyx/Credit Suisse	20.26	%	20.26	%	640	04/07	210,000
16 Court Street	CIF	35.00	%	35.00	%	318	07/07	107,500
The Meadows(2)	Onyx	50.00	%	50.00	%	582	09/07	111,500
388 and 390 Greenwich Street(3)	SITQ	50.60	%	50.60	%	2,600	12/07	1,575,000
180/182 Broadway(4)	Harel/Sutton	25.50	%	25.50	%	71	02/08	43,600
600 Lexington Avenue	CPPIB	55.00	%	55.00	%	304	05/10	193,000
11 West 34th Street(5)	Private Investor/Sutton	30.00	%	30.00	%	17	12/10	10,800
7 Renaissance	Cappelli	50.00	%	50.00	%	37	12/10	4,000
3 Columbus Circle(6)	Moinian	48.90	%	48.90	%	769	01/11	500,000
280 Park Avenue(7)	Vornado	50.00	%	50.00	%	1,237	03/11	400,000
1552-1560 Broadway(8)	Sutton	50.00	%	50.00	%	49	08/11	136,550
747 Madison Avenue	Harel/Sutton	33.33	%	33.33	%	10	09/11	66,250
724 Fifth Avenue	Sutton	50.00	%	50.00	%	65	01/12	223,000
10 East 53rd Street	CPPIB	55.00	%	55.00	%	390	02/12	252,500

(1)Acquisition price represents the actual or implied purchase price for the joint venture.

(2)We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009. We recorded a $2.8 million depreciable real estate reserve in 2010 against this joint venture investment.

(3)The property is subject to a 13-year triple-net lease arrangement with a single tenant.  The lease commenced in 2007.

(4)In December 2010, our 180-182 Broadway joint venture with Jeff Sutton announced an agreement with Pace University to convey a long-term ground lease condominium interest to Pace University for 20 floors of student housing.  The joint venture also admitted Harel, which contributed $28.1 million to the joint venture, for a 49% partnership interest. In August 2011, the joint venture sold the property located at 63 Nassau Street for $2.8 million.

(5)In December 2010, our $12.0 million first mortgage collateralized by 11 West 34th Street was repaid at par, resulting in our recognition of additional income of approximately $1.1 million.  Simultaneous with the repayment, the joint venture was recapitalized with the Company having a 30 percent interest. The property is subject to a long-term net lease arrangement.

(6)We issued 306,296 operating partnership units in connection with this investment. We have committed to fund an additional $47.5 million to the joint venture, of which $33.0 million has been funded as of June 30, 2012. This liability is recorded in accrued interest payable and other liabilities. In addition, we made a $125.0 million bridge loan to this joint venture which was bearing interest at a rate of 7.5%. This loan was repaid when the joint venture refinanced its debt in April 2011.

(7)In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30 million of related floating rate financing which matures in June 2016.  In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction which valued the investment at approximately $1.1 billion. We hold an effective 49.5% ownership interest in the joint venture.

(8)In connection with this acquisition, the joint venture also acquired a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. The purchase price relates only to the purchase of the 1552 Broadway interest which comprises 13,045 square feet. In May 2012, we, along with Sutton, acquired the property at 155 West 46th Street for $8.4 million. This property is adjacent to 1552 and 1560 Broadway.

(9)In November 2011, we, along with our joint venture partner, reached an agreement to sell One Court Square to a private investor group for approximately $475.6 million.  The transaction included $315.0 million of existing debt, which will be assumed by the purchaser. In November 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of this investment. This entire impairment charge was reversed in June 2012. On subsequent dates in 2012, the closing date was extended and the purchase price was increased to $481.1 million. This transaction closed on July 18, 2012.

(10)In June 2012, this retail condominium was recapitalized. The recapitalization triggered a promote which resulted in a reduction of our economic interest. In addition, we sold 50% of our remaining interest at a property valuation of $617.6 million. We recognized $67.9 million of additional cash income, equivalent to profit, due to the distribution of refinancing proceeds and a gain on sale of $3.0 million.

In April 2012, we, along with our joint venture partner, Jeff Sutton, sold the property located at 379 Broadway for $48.5 million, inclusive of the fee position which was acquired for $13.5 million. We recognized a gain on sale of this investment of $6.5 million.

In March 2012, we, along with our joint venture partner, Jeff Sutton, sold the property located at 141 Fifth Avenue for $46.0 million. We recognized a gain on sale of this investment of $7.3 million.

In November 2011, we acquired the remaining 50% interest in the joint venture which held an investment in a debt position on the property located at 450 West 33rd Street. As we own 100% of this investment, we have reclassified it and recorded it as a debt investment. See Note 5, “Debt and Preferred Equity Investments.”

In August 2011, we sold our 10% interest in the joint venture that held 1551-1555 Broadway for approximately $9.7 million. We recognized a gain of $4.0 million on the sale.

We generally finance our joint ventures with non-recourse debt. However, in certain cases we have provided guarantees or master leases for tenant space. These guarantees and master leases terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The first mortgage notes and other loan payable collateralized by the respective joint venture properties and assignment of leases at June 30, 2012 and December 31, 2011, respectively, are as follows (amounts in thousands):

Property	Maturity Date	Interest Rate(1)		June 30, 2012		December 31, 2011
717 Fifth Avenue(9)	06/2024	9.00	%	$	290,000	$	—
717 Fifth Avenue(9)	07/2022	4.45	%	300,000		—
388 and 390 Greenwich Street(2)	12/2017	5.19	%	1,106,756		1,106,757
800 Third Avenue	08/2017	6.00	%	20,910		20,910
1 and 2 Jericho Plaza	05/2017	5.65	%	163,750		163,750
1745 Broadway	01/2017	5.68	%	340,000		340,000
21 West 34th Street	12/2016	5.76	%	100,000		100,000
280 Park Avenue	06/2016	6.57	%	710,000		710,000
11 West 34th Street	01/2016	4.82	%	17,628		17,761
One Court Square	09/2015	4.91	%	315,000		315,000
7 Renaissance	02/2015	10.00	%	856		—
100 Park Avenue	09/2014	6.64	%	213,476		214,625
1604-1610 Broadway(3)	04/2012	5.66	%	27,000		27,000
141 Fifth Avenue	—	—		—		25,000
Total fixed rate debt				$	3,605,376	$	3,040,803
388 and 390 Greenwich Street(2)	12/2017	1.41	%	$	31,622	$	31,622
600 Lexington Avenue	10/2017	2.48	%	125,000		125,000
10 East 53rd Street	02/2017	2.74	%	125,000		—
724 Fifth Avenue	01/2017	2.59	%	120,000		—
Other loan payable	06/2016	1.14	%	30,000		30,000
3 Columbus Circle(4)	04/2016	2.58	%	251,120		254,896
747 Madison Avenue	10/2014	3.00	%	33,125		33,125
180/182 Broadway(5)	12/2013	2.99	%	53,082		30,722
16 Court Street	10/2013	2.74	%	85,290		85,728
1552 Broadway(6)	08/2013	3.24	%	98,321		95,405
27-29 West 34th Street(7)	05/2013	2.24	%	53,650		53,900
The Meadows(8)	09/2012	1.61	%	83,517		84,698
717 Fifth Avenue(9)	—	—		—		245,000
379 West Broadway(10)	—	—		—		20,991
Total floating rate debt				$	1,089,727	$	1,091,087
Total mortgages and other loan payable				$	4,695,103	$	4,131,890

(1)Interest rate represents the effective weighted average interest rate for the quarter ended June 30, 2012.

(2)Comprised of a $576.0 million mortgage and a $562.4 million mezzanine loan, both of which are fixed rate loans, except for $16.0 million of the mortgage and $15.6 million of the mezzanine loan which are floating.  Up to $200.0 million of the mezzanine loan, secured indirectly by these properties, is recourse to us.  We believe it is unlikely that we will be required to perform under this guarantee.

(3)This loan went into default in November 2009 due to the non-payment of debt service.  The joint venture is in discussions with the special servicer to resolve this default.

(4)We provided 50% of a bridge loan to this joint venture. In April 2011, our joint venture with The Moinian Group which owns the property located at 3 Columbus Circle, New York, refinanced the bridge loan and replaced it with a $260.0 million 5-year mortgage with the Bank of China, which carries a floating rate of interest of 210 basis points over the 30-day LIBOR, at which point SL Green and Deutsche Bank’s bridge loan was repaid. The joint venture has the ability to increase the mortgage by $40.0 million based on meeting certain performance hurdles. In connection with this obligation, we executed a master lease agreement. Our partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

(5)This loan has a committed amount of $90.0 million.

(6)This loan has a committed amount of $125.0 million.

(7)In April 2012, this loan was extended by 1-year.

(8)This loan has a committed amount of $91.2 million.

(9)This loan was repaid in June 2012 and was replaced with a $300 million mortgage and a $290 million mezzanine loan. See Note 10 to the prior table.

(10)This property was sold in April 2012 and the mortgage was repaid at a discount.

We act as the operating partner and day-to-day manager for all our joint ventures, except for 800 Third Avenue, 1 and 2 Jericho Plaza, 3 Columbus Circle and The Meadows. We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to our joint ventures. We earned approximately $2.4 million, $5.6 million, $2.3 million and $5.7 million from these services for the three and six months ended June 30, 2012 and 2011, respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.

The combined balance sheets for the unconsolidated joint ventures, at June 30, 2012 and December 31, 2011, are as follows (amounts in thousands):

	June 30, 2012		December 31, 2011
Assets
Commercial real estate property, net	$	6,153,652	$	5,699,113
Other assets	668,567		599,596
Total assets	$	6,822,219	$	6,298,709
Liabilities and members’ equity
Mortgages and other loan payable	$	4,695,103	$	4,131,890
Other liabilities	271,289		250,925
Members’ equity	1,855,827		1,915,894
Total liabilities and members’ equity	$	6,822,219	$	6,298,709
Company’s net investment in unconsolidated joint ventures	$	1,014,042	$	893,933

The combined statements of income for the unconsolidated joint ventures, from acquisition date through June 30, 2012 and 2011 are as follows (amounts in thousands):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012		2011			2012		2011
Total revenues	$	124,418	$	113,792		$	244,466	$	237,352
Operating expenses	16,949		16,080			34,633		36,681
Real estate taxes	12,483		12,290			25,857		25,740
Interest expense, net of interest income	53,506		53,587			110,141		101,224
Depreciation and amortization	35,724		33,865			72,507		65,589
Transaction related costs	90		752			358		817
Total expenses	118,752		116,574			243,496		230,051
Net income(loss)	$	5,666	$	(2,782	)	$	970	$	7,301
Company’s equity in net income of unconsolidated joint ventures	$	70,890	$	2,184		$	69,330	$	10,390

The 2012 equity in net income of unconsolidated joint ventures includes $67.9 million of additional income due to the distribution of refinancing proceeds from the recapitalization of 717 Fifth Avenue.

Gramercy Capital Corp.

In April 2004, we formed Gramercy as a commercial real estate finance business.  Gramercy qualified as a REIT for federal income tax purposes and expects to qualify for its current fiscal year.

At June 30, 2012, we held 3.2 million shares, or approximately 6.3% of Gramercy’s common stock.  Our total investment of approximately $8.1 million is based on the market value of our common stock investment in Gramercy at June 30, 2012.  As we no longer have any significant influence over Gramercy, we account for our investment as available-for-sale securities.

Effective May 2005, June 2009 and October 2009, Gramercy entered into lease agreements with an affiliate of ours, for their corporate offices at 420 Lexington Avenue, New York, New York.  The first lease is for approximately 7,300 square feet and carries a term of ten years with rents of approximately $249,000 per annum for year one increasing to $315,000 per annum in year ten.  The second lease is for approximately 900 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $35,300 per annum for year one increasing to $42,800 per annum in year six.  The third lease is for approximately 1,400 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $67,300 per annum for year one increasing to $80,500 per annum in year six.

Marc Holliday, our chief executive officer, remains a board member of Gramercy.

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Investment in Unconsolidated Joint Ventures (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Assets
Commercial real estate property, net	$ 10,242,225		$ 10,242,225		$ 10,010,548
Other assets	784,901		784,901		737,900
Liabilities and members' equity
Mortgages and other loans payable	4,861,463		4,861,463		4,314,741
Company's net investment in unconsolidated joint ventures	1,014,042		1,014,042		893,933
Combined statements of income for the unconsolidated joint ventures
Operating expense	68,919	62,395	142,188	122,698
Real estate taxes	52,569	43,975	104,067	84,042
Interest expense, net of interest income	82,327	68,173	162,464	132,439
Depreciation and amortization			162,028	136,355
Transaction related costs	1,970	1,217	3,121	3,651
Total expenses	316,761	275,530	633,045	534,601
Company's equity in net (loss) income of unconsolidated joint ventures	70,890	2,184	69,330	10,390
Joint venture
Assets
Commercial real estate property, net	6,153,652		6,153,652		5,699,113
Other assets	668,567		668,567		599,596
Total assets	6,822,219		6,822,219		6,298,709
Liabilities and members' equity
Mortgages and other loans payable	4,695,103		4,695,103		4,131,890
Other liabilities	271,289		271,289		250,925
Members' equity	1,855,827		1,855,827		1,915,894
Total liabilities and members equity	6,822,219		6,822,219		6,298,709
Company's net investment in unconsolidated joint ventures	1,014,042		1,014,042		893,933
Combined statements of income for the unconsolidated joint ventures
Total revenues	124,418	113,792	244,466	237,352
Operating expense	16,949	16,080	34,633	36,681
Real estate taxes	12,483	12,290	25,857	25,740
Interest expense, net of interest income	53,506	53,587	110,141	101,224
Depreciation and amortization	35,724	33,865	72,507	65,589
Transaction related costs	90	752	358	817
Total expenses	118,752	116,574	243,496	230,051
Net income (loss)	5,666	(2,782)	970	7,301
Company's equity in net (loss) income of unconsolidated joint ventures	$ 70,890	$ 2,184	$ 69,330	$ 10,390

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Property Dispositions and Assets Held for Sale

6 Months Ended

Jun. 30, 2012

Property Dispositions and Assets Held for Sale

Property Dispositions and Assets Held for Sale

4.  Property Dispositions and Assets Held for Sale

An entity that holds the property which served as collateral for our loan position, which is collateralized by a property in London, was determined to be a VIE under a reconsideration event and we have been determined to be the primary beneficiary. As a result of this determination, we consolidated the entity and reclassified the investment to assets held for sale on the consolidated balance sheet at June 30, 2012.

In February 2012, we sold our leased fee interest at 292 Madison Avenue for $85.0 million. We recognized a gain of $6.6 million on the sale.

In May 2011, we sold our property located at 28 West 44th Street for $161.0 million. The property is approximately 359,000 square feet. We recognized a gain of $46.1 million on the sale.

Discontinued operations included the results of operations of real estate assets sold prior to June 30, 2012. This included 28 West 44th Street, which was sold in May 2011, and 292 Madison Avenue, which was sold in February 2012.

The following table summarizes income from discontinued operations for the three and six months ended June 30, 2012 and 2011, respectively (amounts in thousands).

	Three MonthsEnded		Three Months Ended		Six MonthsEnded			Six Months Ended
	June 30,		June 30,		June 30,			June 30,
	2012		2011		2012			2011
Revenues
Rental revenue	$	—	$	3,194	$	516		$	8,735
Escalation and reimbursement revenues	—		219		—			873
Other income	—		56		—			60
Total revenues	—		3,469		516			9,668
Operating expense	—		498		(3		)	1,645
Real estate taxes	—		188		—			1,034
Interest expense, net of interest income	—		1,101		597			2,604
Amortization of deferred financing costs	—		6		—			160
Depreciation and amortization	—		—		—			676
Total expenses	—		1,793		594			6,119
Net income (loss) from discontinued operations	$	—	$	1,676	$	(78	)	$	3,549

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Debt and Preferred Equity Investments

6 Months Ended

Jun. 30, 2012

Debt and Preferred Equity Investments

Debt and Preferred Equity Investments

5.  Debt and Preferred Equity Investments

During the six months ended June 30, 2012 and 2011, our debt and preferred equity investments (net of discounts) increased approximately $159.1 million and $162.9 million, respectively, due to originations, purchases, accretion of discounts and paid-in-kind interest.  We recorded approximately $162.8 million and $544.3 million in repayments, participations, sales, foreclosures and loan loss reserves during those periods, respectively, which offset the increases in debt and preferred equity investments.

As of June 30, 2012 and December 31, 2011, we held the following debt investments with an aggregate weighted average current yield of approximately 9.53% (amounts in thousands):

Loan Type	June 30, 2012 Senior Financing		June 30, 2012 Carrying Value, Net of Discounts			December 31, 2011 Carrying Value, Net of Discounts			Initial Maturity Date
Other Loan	$	15,000	$	3,500		$	3,500		September 2021
Mortgage/Mezzanine Loan(1)	1,109,000		108,549			108,817			March 2017
Mezzanine Loan	165,000		70,864			40,375			November 2016
Junior Participation	133,000		49,000			49,000			June 2016
Mortgage/ Mezzanine Loan	170,397		46,452			46,416			May 2016
Mezzanine Loan	177,000		16,500			17,112			May 2016
Mezzanine Loan	205,000		65,095			64,973			February 2016
Junior Participation(2)(4)	—		—			8,725			—
Junior Participation(3)(4)	—		—			11,000			—
Total fixed rate	$	1,974,397	$	359,960		$	349,918
Mezzanine Loan(5)	$	81,000	$	34,940		$	34,940		October 2016
Mezzanine Loan	55,000		35,000			35,000			July 2016
Mortgage/ Mezzanine Loan	—		36,700			—			February 2015
Mezzanine Loan	45,000		10,000			10,000			January 2015
Mezzanine Loan	170,000		60,000			60,000			August 2014
Mezzanine Loan	62,500		37,500			—			July 2014
Mezzanine Loan(6)	75,000		7,650			7,650			July 2013
Junior Participation(4)	60,250		10,875			10,875			June 2013
Mortgage(7)	28,500		3,000			3,000			February 2013
Mezzanine Loan(8)	796,693		8,392			8,392			August 2012
Mezzanine Loan(9)	467,000		49,900			30,747			July 2012
Mortgage(10)	—		—			86,339			June 2012
Other Loan	—		—			3,196			—
Total floating rate	$	1,840,943	$	293,957		$	290,139
Total	3,815,340		653,917			640,057
Loan loss reserve(4)	—		(7,000		)	(19,125		)	—
	$	3,815,340	$	646,917		$	620,932

(1)Interest is added to the principal balance for this accrual only loan.

(2)This loan was in default and on non-accrual status.  We sold our interest in the loan in February 2012 and recovered $0.4 million against the reserve on this loan.

(3)In March 2012, we sold our interest in this loan and recovered $2.0 million against the reserve on this loan.

(4)Loan loss reserves are specifically allocated to investments.  Our reserves reflect management’s judgment of the probability and severity of losses based on Level 3 data.  We cannot be certain that our judgment will prove to be correct or that reserves will be adequate over time to protect against potential future losses.

(5)As of June 30, 2012, we were committed to fund an additional $15.0 million in connection with this loan.

(6)In November 2011, we entered into a loan participation agreement in the amount of $7.4 million on a $15.0 million mortgage. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

(7)In June 2011, we funded an additional $5.5 million and extended the maturity date of this loan to February 2013. In September 2011, we entered into a loan participation in the amount of $28.5 million on a $31.5 million mortgage. We have assigned our right as servicer to a third party. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

(8)In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 4 to the next table. In June 2012, we acquired an additional 38.6% participation interest in this mezzanine loan. As a result of this acquisition, we have complete control over this position and can, therefore, control any restructuring. This mezzanine loan is on non-accrual status as of January 2012.

(9)As a result of the acquisition of the remaining 50% interest in November 2011 in the joint venture which held an investment in a debt position on the property located at 450 West 33rd Street, we have reclassified our investment as a debt investment. See Note 6, “Investments in Unconsolidated Joint Ventures”. This investment was repaid in full at maturity.

(10)We hold an 88% interest in the consolidated joint venture that acquired this loan. This investment is denominated in British Pounds. This loan was not repaid on its maturity date and was placed in receivership. The entity that holds the property which served as collateral for our loan position was determined to be a VIE under a reconsideration event and we have been determined to be the primary beneficiary. As a result of this determination, we consolidated the entity and reclassified the investment to assets held for sale on the consolidated balance sheet at June 30, 2012.

Preferred Equity Investments

As of June 30, 2012 and December 31, 2011, we held the following preferred equity investments, with an aggregate weighted average current yield of approximately 11.14% (amounts in thousands):

Type	June 30,  2012 SeniorFinancing		June 30, 2012 Carrying Value, Net of Discounts			December 31, 2011 Carrying Value, Net of Discounts			InitialMandatory Redemption
Preferred equity(1)	$	926,260	$	206,931		$	203,080		July 2016
Preferred equity(1)(2)	56,935		16,042			—			April 2016
Preferred equity(1)(3)(4)	480,000		95,653			141,980			July 2014
Preferred equity(1)(5)	974,673		50,716			51,000			August 2012
Loan loss reserve(6)	—		(34,050		)	(31,050		)	—
	$	2,437,868	$	335,292		$	365,010

(1)The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

(2)We are committed to fund an additional $10.0 million on this loan. As of June 30, 2012, we had funded $0.8 million of this commitment.

(3)This is a fixed rate investment.

(4)This investment was classified as held for sale at June 30, 2009, but as held-to-maturity for all periods subsequent to June 30, 2009.  The reserve previously taken against this loan is being accreted up to the face amount through the maturity date. In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity in 2011. We also made an additional $50.0 million junior preferred equity loan.  This junior preferred equity loan was repaid at par in February 2012.

(5)This investment is on non-accrual status. In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity in 2011. See Note 7 to the prior table. In June 2012, we acquired 100% of the interests in the most senior preferred equity position.

(6)Loan loss reserves are specifically allocated to investments.  Our reserves reflect management’s judgment of the probability and severity of losses based on Level 3 data.  We cannot be certain that our judgment will prove to be correct and that reserves will be adequate over time to protect against potential future losses.

The following table is a rollforward of our total loan loss reserves at June 30, 2012 and December 31, 2011 (in thousands):

	June 30,2012			December 31, 2011
Balance at beginning of year	$	50,175		$	61,361
Expensed	3,000			10,875
Recoveries	(2,436		)	(4,370		)
Charge-offs	(9,689		)	(17,691		)
Balance at end of period	$	41,050		$	50,175

At June 30, 2012 and December 31, 2011, all debt and preferred equity investments, other than as noted above, were performing in accordance with the terms of the loan agreements.

We have determined that we have one portfolio segment of financing receivables at June 30, 2012 and December 31, 2011 comprising commercial real estate, which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling approximately $119.9 million at June 30, 2012 and $108.7 million at December 31, 2011. The nonaccrual balance of financing receivables at June 30, 2012 and December 31, 2011 was $25.1 million and $102.6 million, respectively. No financing receivables were 90 days past due at June 30, 2012. The recorded investment for financing receivables past due 90 days associated with two financing receivables was $17.3 million at December 31, 2011. All financing receivables are individually evaluated for impairment.

The following table presents impaired loans, which may include non-accrual loans, as of June 30, 2012 and December 31, 2011, respectively (amounts in thousands):

	June 30, 2012						December 31, 2011
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Commercial real estate	$	—	$	—	$	—	$	106,623	$	83,378	$	—
With an allowance recorded:
Commercial real estate	66,112		61,466		41,050		86,121		81,475		50,175
Total	$	66,112	$	61,466	$	41,050	$	192,744	$	164,853	$	50,175

The following table presents the average recorded investment in impaired loans, which may include non-accrual loans and the related investment and preferred equity income recognized during the three and six months ended June 30, 2012 and 2011, respectively (amounts in thousands):

	Three Months EndedJune 30,2012		Three Months EndedJune 30,2011		Six Months EndedJune 30,2012		Six Months EndedJune 30,2011
Average recorded investment in impaired loans	$	69,932	$	201,991	$	74,935	$	223,376
Investment and preferred equity income recognized	2,333		1,551		3,895		6,361

On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We assess credit quality indicators based on the underlying collateral.

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Deferred Costs

6 Months Ended

Jun. 30, 2012

Deferred Costs

Deferred Costs

7.  Deferred Costs

Deferred costs at June 30, 2012 and December 31, 2011 consisted of the following (amounts in thousands):

	June 30,2012			December 31,2011
Deferred financing	$	145,689		$	113,620
Deferred leasing	262,447			238,394
	408,136			352,014
Less accumulated amortization	(158,989		)	(141,228		)
Deferred costs, net	$	249,147		$	210,786

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Corporate Indebtedness (Details) (USD $)	3 Months Ended		6 Months Ended				1 Months Ended	6 Months Ended			6 Months Ended		6 Months Ended					1 Months Ended				6 Months Ended						1 Months Ended							1 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 Joint venture	Nov. 30, 2011 2011 Revolving Credit Facility	Jun. 30, 2012 2011 Revolving Credit Facility y	Jun. 30, 2012 2011 Revolving Credit Facility Maximum	Nov. 30, 2011 2011 Revolving Credit Facility Maximum	Jun. 30, 2012 2011 Revolving Credit Facility Minimum	Nov. 30, 2011 2011 Revolving Credit Facility Minimum	Jun. 30, 2012 2007 Revolving Credit Facility	Jun. 30, 2012 2007 Revolving Credit Facility Maximum	Jun. 30, 2012 2007 Revolving Credit Facility Minimum	Jun. 30, 2012 Senior Unsecured Notes	Dec. 31, 2011 Senior Unsecured Notes	Mar. 31, 2012 3.00% Senior unsecured notes maturing on March 30, 2027	Mar. 31, 2007 3.00% Senior unsecured notes maturing on March 30, 2027	Jun. 30, 2012 3.00% Senior unsecured notes maturing on March 30, 2027 y	Dec. 31, 2011 3.00% Senior unsecured notes maturing on March 30, 2027	Jun. 30, 2012 4.00% Senior unsecured notes maturing on June 15, 2025 y	Dec. 31, 2011 4.00% Senior unsecured notes maturing on June 15, 2025	Jun. 30, 2012 7.75% Senior unsecured notes maturing on March 15, 2020 y	Dec. 31, 2011 7.75% Senior unsecured notes maturing on March 15, 2020	Jun. 30, 2012 5.00% senior unsecured notes maturing on August 15, 2018 y	Dec. 31, 2011 5.00% senior unsecured notes maturing on August 15, 2018	Oct. 31, 2010 3.00% Senior unsecured notes maturing on October 15, 2017	Jun. 30, 2012 3.00% Senior unsecured notes maturing on October 15, 2017 y	Dec. 31, 2011 3.00% Senior unsecured notes maturing on October 15, 2017	Jun. 30, 2012 6.00% Senior unsecured notes maturing on March 31, 2016 y	Dec. 31, 2011 6.00% Senior unsecured notes maturing on March 31, 2016	Jun. 30, 2012 5.875% Senior unsecured notes maturing on August 15, 2014 y	Dec. 31, 2011 5.875% Senior unsecured notes maturing on August 15, 2014	Jun. 30, 2005 Trust preferred securities	Jun. 30, 2012 Trust preferred securities quarter y	Jun. 30, 2012 Mortgages and other loans payable
Corporate Indebtedness
Revolving credit facility, maximum borrowing capacity							$ 1,500,000,000						$ 1,500,000,000
Interest rate, description							LIBOR	LIBOR					30-day LIBOR
Interest rate added to base rate (as a percent)								1.50%		1.85%		1.00%		1.10%	0.70%
Extension option available (in years)								1
Extension fee required to be paid (as a percent)								0.20%
Maximum borrowing capacity, optional expansion								1,750,000,000
Fee on the unused balance, payable quarterly in arrears (as a percent)								0.20%						0.20%	0.125%
Facility fee on total commitments, payable quarterly in arrears (as a percent)								0.35%	0.45%		0.175%
Outstanding under line of credit facility	80,000,000		80,000,000		350,000,000			80,000,000
Letters of credit								109,300,000
Ability to borrow under line of credit facility								1,300,000,000
Debt disclosures by scheduled maturity date
Unpaid Principal Balance																1,236,938,000				18,003,000		357,000		250,000,000		250,000,000			345,000,000		275,000,000		98,578,000
Accreted Balance	1,173,769,000		1,173,769,000		1,270,656,000											1,173,769,000	1,270,656,000			18,003,000	119,423,000	357,000	657,000	250,000,000	250,000,000	249,593,000	249,565,000		282,414,000	277,629,000	274,824,000	274,804,000	98,578,000	98,578,000
Coupon Rate (as a percent)																				3.00%		4.00%		7.75%		5.00%			3.00%		6.00%		5.875%			5.61%
Effective Rate (as a percent)																				3.00%		4.00%		7.75%		5.031%			7.125%		6.019%		5.875%
Term (in years)																				20		20		10		7			7		10		10
Debt instrument issued, value																			750,000,000									345,000,000							100,000,000
Premium on sale price to calculate exchange price of notes (as a percent)																				25.00%									30.00%
Exchange price (in dollars per share)																				$ 173.30									$ 85.81
Repayment of debt																		102,200,000				300,000
Amount of convertible debt recorded in equity																			66,600,000									78,300,000
Adjusted exchange rate for the debentures (in shares)																						7.7461
Principal amount of debentures, basis for conversion																						1,000
Adjusted reference dividend for debentures																						1.3491
Equity portion of convertible debt, remained unamortized as of the balance sheet date																													62,600,000
Maximum consecutive quarters up to which interest payment can be deferred																																				8
Number of years for which securities will bear fixed rate of interest (in years)																																				10
Scheduled Amortization
2012																																					25,050,000
2013																																					50,910,000
2014																																					52,519,000
2015																																					55,815,000
2016																																					55,303,000
Thereafter																																					288,797,000
Total amortization of debt																																					528,394,000
Principal Repayments
2012						56,706,000
2013						127,516,000																															516,179,000
2014						123,984,000																															146,273,000
2015						102,478,000																															229,537,000
2016						528,305,000		80,000,000																													516,896,000
Thereafter						980,761,000																														100,000,000	2,986,976,000
Total principal repayments						1,919,750,000		80,000,000																												100,000,000	4,395,861,000
Scheduled Amortization and Principal Repayments
2012	25,050,000		25,050,000
2013	567,089,000		567,089,000
2014	297,370,000		297,370,000													98,578,000
2015	285,709,000		285,709,000													357,000
2016	927,023,000		927,023,000													274,824,000
Thereafter	4,175,783,000		4,175,783,000													800,010,000
Total amortization of debt and principal repayments	6,278,024,000		6,278,024,000													1,173,769,000
Interest expense
Interest expense	82,728,000	68,711,000	163,275,000	133,463,000
Interest income	(401,000)	(538,000)	(811,000)	(1,024,000)
Interest expense, net	82,327,000	68,173,000	162,464,000	132,439,000
Interest capitalized	$ 2,996,000	$ 922,000	$ 5,532,000	$ 2,217,000

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Related Party Transactions (Details) (USD $)			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Alliance Building Services	Jun. 30, 2011 Alliance Building Services	Jun. 30, 2012 Alliance Building Services	Jun. 30, 2011 Alliance Building Services	Jun. 30, 2012 A-List Marketing, LLC	Jun. 30, 2011 A-List Marketing, LLC	Jun. 30, 2012 A-List Marketing, LLC	Jun. 30, 2011 A-List Marketing, LLC	Jun. 30, 2012 Nancy Peck and Company sqft	Jun. 30, 2012 Entity with Stephen L Green ownership interest	Jun. 30, 2011 Entity with Stephen L Green ownership interest	Jun. 30, 2012 Entity with Stephen L Green ownership interest	Jun. 30, 2011 Entity with Stephen L Green ownership interest
Related Party Transactions
Profit participation from related party			$ 800,000	$ 1,000,000	$ 1,600,000	$ 1,100,000
Payments made for services			4,700,000	3,500,000	8,200,000	6,600,000	44,200	40,700	55,900	66,200
Space at 420 Lexington Avenue leased (in square feet)											1,003
Lease rent due per year											35,516
Increased lease rent due per year beginning in year seven											40,000
Property management fees from related party												110,000	111,000	199,000	221,000
Amounts due from related parties
Due from joint ventures	515,000	477,000
Other	7,278,000	3,524,000
Related party receivables	$ 7,793,000	$ 4,001,000

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Mortgages and Other Loans Payable (Details) (USD $)			3 Months Ended				1 Months Ended																							1 Months Ended													6 Months Ended								1 Months Ended	3 Months Ended				1 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Other loan payable due June 2013	Dec. 31, 2011 Other loan payable due June 2013	Jun. 30, 2012 400 East 57th Street	Jun. 30, 2012 400 East 58th Street	Jun. 30, 2011 919 Third Avenue	Jun. 30, 2012 919 Third Avenue	Dec. 31, 2011 919 Third Avenue	Jun. 30, 2012 100 Church Street	Jun. 30, 2012 One Madison Avenue	Dec. 31, 2011 One Madison Avenue	Jun. 30, 2012 Other loan payable due in September, 2019	Dec. 31, 2011 Other loan payable due in September, 2019	Jun. 30, 2012 885 Third Avenue	Dec. 31, 2011 885 Third Avenue	Jun. 30, 2012 110 East 42nd Street	Dec. 31, 2011 110 East 42nd Street	Jun. 30, 2012 2 Herald Square	Dec. 31, 2011 2 Herald Square	Jun. 30, 2012 485 Lexington Avenue	Dec. 31, 2011 485 Lexington Avenue	Jun. 30, 2012 120 West 45th Street	Dec. 31, 2011 120 West 45th Street	Jun. 30, 2012 300 Main Street	Dec. 31, 2011 300 Main Street	Jun. 30, 2012 762 Madison Avenue	Jun. 30, 2012 Landmark Square	Dec. 31, 2011 Landmark Square	Mar. 31, 2011 420 Lexington Avenue	Jun. 30, 2012 420 Lexington Avenue	Dec. 31, 2011 420 Lexington Avenue	Jun. 30, 2012 500 West Putnam	Dec. 31, 2011 500 West Putnam	Jun. 30, 2012 625 Madison Avenue	Dec. 31, 2011 625 Madison Avenue	Jun. 30, 2012 711 Third Avenue	Dec. 31, 2011 711 Third Avenue	Jun. 30, 2012 125 Park Avenue	Dec. 31, 2011 125 Park Avenue	Jun. 30, 2012 609 Partners, LLC	Dec. 31, 2011 609 Partners, LLC	Jun. 30, 2012 609 Partners, LLC SL Green Operating Partnership Series E preferred units	Jun. 30, 2012 220 East 42nd Street	Dec. 31, 2011 220 East 42nd Street	Jun. 30, 2012 609 Fifth Avenue	Dec. 31, 2011 609 Fifth Avenue	Jun. 30, 2012 673 First Avenue	Dec. 31, 2011 673 First Avenue	Dec. 31, 2011 292 Madison Avenue	Apr. 30, 2012 1515 Broadway y	Jun. 30, 2012 1515 Broadway	Dec. 31, 2011 1515 Broadway	Jun. 30, 2012 180 Maiden Lane	Dec. 31, 2011 180 Maiden Lane	Apr. 30, 2011 521 Fifth Avenue y	Jun. 30, 2012 521 Fifth Avenue	Dec. 31, 2011 521 Fifth Avenue	Jan. 31, 2011 521 Fifth Avenue
Mortgages and Other Loans Payable
Interest rate, fixed rate debt (as a percent)					4.13%	4.13%	6.87%	5.12%		4.68%	5.91%		8.00%		6.26%		5.81%		5.36%		5.61%		6.12%		5.75%		3.75%	4.00%			7.15%		5.52%		7.22%		4.99%		5.75%		5.00%			5.25%		5.85%		5.67%			3.60%
Interest rate, floating rate debt (as a percent)			3.51%																																																	3.60%		2.60%			2.24%
Total fixed rate debt																		$ 18,100,000
Total fixed rate debt	3,662,423,000	3,431,353,000			70,000,000	30,000,000		500,000,000	500,000,000	230,000,000	617,353,000	626,740,000	50,000,000	50,000,000	267,650,000	267,650,000	65,000,000	65,000,000	191,250,000	191,250,000	450,000,000	450,000,000	170,000,000	170,000,000	11,500,000	11,500,000	8,448,000	85,250,000	86,000,000		186,107,000	187,182,000	24,315,000	24,563,000	127,462,000	129,098,000	120,000,000	120,000,000	146,250,000	146,250,000	23,000	31,721,000		188,197,000	190,431,000	94,167,000	94,963,000	29,451,000	29,906,000	59,099,000
Total floating rate debt	1,261,832,000	942,487,000	62,792,000	62,792,000																																																773,726,000	450,363,000	275,314,000	279,332,000		150,000,000	150,000,000
Total mortgages and other loans payable	4,924,255,000	4,373,840,000
Controlling interest in the joint venture (as a percent)									51.00%
Repaid loan							219,900,000																																												447,200,000					140,000,000
Increase in loan amount																														40,000,000
Preferred units, shares issued																																											63,900,000
Preferred Units (as a percent)																																											5.00%
Preferred units, liquidation preference (in dollars per share)																																											$ 1.00
Preferred units, shares redeemed																																											63,800,000
Interest rate added to base rate (as a percent)			2.50%																																																2.85%					2.00%
Interest rate, description			three month GBP LIBOR																																																90-Day LIBOR	90-Day LIBOR				30-Day LIBOR
Refinanced mortgage loan							500,000,000																																												775,000,000					150,000,000
Mortgage on properties assumed																																																											140,000,000
Gross book value of the properties collateralizing the mortgages and other loans payable	$ 7,700,000,000	$ 7,400,000,000
Term (in years)																																																			7					2

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Debt and Preferred Equity Investments (Tables)

6 Months Ended

Jun. 30, 2012

Debt and Preferred Equity Investments

Summary of debt investments

Loan Type	June 30, 2012 Senior Financing		June 30, 2012 Carrying Value, Net of Discounts			December 31, 2011 Carrying Value, Net of Discounts			Initial Maturity Date
Other Loan	$	15,000	$	3,500		$	3,500		September 2021
Mortgage/Mezzanine Loan(1)	1,109,000		108,549			108,817			March 2017
Mezzanine Loan	165,000		70,864			40,375			November 2016
Junior Participation	133,000		49,000			49,000			June 2016
Mortgage/ Mezzanine Loan	170,397		46,452			46,416			May 2016
Mezzanine Loan	177,000		16,500			17,112			May 2016
Mezzanine Loan	205,000		65,095			64,973			February 2016
Junior Participation(2)(4)	—		—			8,725			—
Junior Participation(3)(4)	—		—			11,000			—
Total fixed rate	$	1,974,397	$	359,960		$	349,918
Mezzanine Loan(5)	$	81,000	$	34,940		$	34,940		October 2016
Mezzanine Loan	55,000		35,000			35,000			July 2016
Mortgage/ Mezzanine Loan	—		36,700			—			February 2015
Mezzanine Loan	45,000		10,000			10,000			January 2015
Mezzanine Loan	170,000		60,000			60,000			August 2014
Mezzanine Loan	62,500		37,500			—			July 2014
Mezzanine Loan(6)	75,000		7,650			7,650			July 2013
Junior Participation(4)	60,250		10,875			10,875			June 2013
Mortgage(7)	28,500		3,000			3,000			February 2013
Mezzanine Loan(8)	796,693		8,392			8,392			August 2012
Mezzanine Loan(9)	467,000		49,900			30,747			July 2012
Mortgage(10)	—		—			86,339			June 2012
Other Loan	—		—			3,196			—
Total floating rate	$	1,840,943	$	293,957		$	290,139
Total	3,815,340		653,917			640,057
Loan loss reserve(4)	—		(7,000		)	(19,125		)	—
	$	3,815,340	$	646,917		$	620,932

(1)Interest is added to the principal balance for this accrual only loan.

(2)This loan was in default and on non-accrual status.  We sold our interest in the loan in February 2012 and recovered $0.4 million against the reserve on this loan.

(3)In March 2012, we sold our interest in this loan and recovered $2.0 million against the reserve on this loan.

(4)Loan loss reserves are specifically allocated to investments.  Our reserves reflect management’s judgment of the probability and severity of losses based on Level 3 data.  We cannot be certain that our judgment will prove to be correct or that reserves will be adequate over time to protect against potential future losses.

(5)As of June 30, 2012, we were committed to fund an additional $15.0 million in connection with this loan.

(6)In November 2011, we entered into a loan participation agreement in the amount of $7.4 million on a $15.0 million mortgage. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

(7)In June 2011, we funded an additional $5.5 million and extended the maturity date of this loan to February 2013. In September 2011, we entered into a loan participation in the amount of $28.5 million on a $31.5 million mortgage. We have assigned our right as servicer to a third party. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

(8)In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 4 to the next table. In June 2012, we acquired an additional 38.6% participation interest in this mezzanine loan. As a result of this acquisition, we have complete control over this position and can, therefore, control any restructuring. This mezzanine loan is on non-accrual status as of January 2012.

(9)As a result of the acquisition of the remaining 50% interest in November 2011 in the joint venture which held an investment in a debt position on the property located at 450 West 33rd Street, we have reclassified our investment as a debt investment. See Note 6, “Investments in Unconsolidated Joint Ventures”. This investment was repaid in full at maturity.

(10)We hold an 88% interest in the consolidated joint venture that acquired this loan. This investment is denominated in British Pounds. This loan was not repaid on its maturity date and was placed in receivership. The entity that holds the property which served as collateral for our loan position was determined to be a VIE under a reconsideration event and we have been determined to be the primary beneficiary. As a result of this determination, we consolidated the entity and reclassified the investment to assets held for sale on the consolidated balance sheet at June 30, 2012.

Summary of preferred equity investments

Type	June 30,  2012 SeniorFinancing		June 30, 2012 Carrying Value, Net of Discounts			December 31, 2011 Carrying Value, Net of Discounts			InitialMandatory Redemption
Preferred equity(1)	$	926,260	$	206,931		$	203,080		July 2016
Preferred equity(1)(2)	56,935		16,042			—			April 2016
Preferred equity(1)(3)(4)	480,000		95,653			141,980			July 2014
Preferred equity(1)(5)	974,673		50,716			51,000			August 2012
Loan loss reserve(6)	—		(34,050		)	(31,050		)	—
	$	2,437,868	$	335,292		$	365,010

(1)The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

(2)We are committed to fund an additional $10.0 million on this loan. As of June 30, 2012, we had funded $0.8 million of this commitment.

(3)This is a fixed rate investment.

(4)This investment was classified as held for sale at June 30, 2009, but as held-to-maturity for all periods subsequent to June 30, 2009.  The reserve previously taken against this loan is being accreted up to the face amount through the maturity date. In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity in 2011. We also made an additional $50.0 million junior preferred equity loan.  This junior preferred equity loan was repaid at par in February 2012.

(5)This investment is on non-accrual status. In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity in 2011. See Note 7 to the prior table. In June 2012, we acquired 100% of the interests in the most senior preferred equity position.

(6)Loan loss reserves are specifically allocated to investments.  Our reserves reflect management’s judgment of the probability and severity of losses based on Level 3 data.  We cannot be certain that our judgment will prove to be correct and that reserves will be adequate over time to protect against potential future losses.

Rollforward of total allowance for loan loss reserves

	June 30,2012			December 31, 2011
Balance at beginning of year	$	50,175		$	61,361
Expensed	3,000			10,875
Recoveries	(2,436		)	(4,370		)
Charge-offs	(9,689		)	(17,691		)
Balance at end of period	$	41,050		$	50,175

Summary of impaired loans, which may include non-accrual loans

	June 30, 2012						December 31, 2011
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Commercial real estate	$	—	$	—	$	—	$	106,623	$	83,378	$	—
With an allowance recorded:
Commercial real estate	66,112		61,466		41,050		86,121		81,475		50,175
Total	$	66,112	$	61,466	$	41,050	$	192,744	$	164,853	$	50,175

Summary of average recorded investment in impaired loans, including non-accrual loans and the related investment and preferred equity income recognized

	Three Months EndedJune 30,2012		Three Months EndedJune 30,2011		Six Months EndedJune 30,2012		Six Months EndedJune 30,2011
Average recorded investment in impaired loans	$	69,932	$	201,991	$	74,935	$	223,376
Investment and preferred equity income recognized	2,333		1,551		3,895		6,361

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Significant Accounting Policies (Details 4)	6 Months Ended		3 Months Ended
	Jun. 30, 2012 option statement	Jun. 30, 2012 Customer concentration tenant	Jun. 30, 2012 Credit concentration	Jun. 30, 2012 Annualized rent 1185 Avenue of the Americas. Customer concentration	Jun. 30, 2012 Annualized rent One Madison Avenue Customer concentration	Jun. 30, 2012 Annualized rent 420 Lexington Avenue Customer concentration	Jun. 30, 2012 Annualized rent 1515 Broadway Customer concentration	Jun. 30, 2012 Annualized rent Three tenant Customer concentration	Jun. 30, 2012 Annualized rent Tenant 1 Customer concentration	Jun. 30, 2012 Annualized rent Tenant 2 Customer concentration	Jun. 30, 2012 Annualized rent Tenant 3 Customer concentration
Concentration of Credit Risk
Number of tenants		3
Maximum percentage of annualized rent for any one tenant not individually disclosed								1.90%
Percentage of concentration				6.00%	6.00%	5.00%	9.00%		7.40%	6.90%	6.00%
Minimum revenue on debt and preferred equity investments (as a percent)			10.00%
Number of options for presenting other comprehensive income (OCI)	2
Number of statements in which statement of total comprehensive income can be presented	2

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Equity

6 Months Ended

Jun. 30, 2012

Equity

Equity

12.  Equity

Common Stock

Our authorized capital stock consists of 260,000,000 shares, $.01 par value, of which we have authorized the issuance of up to 160,000,000 shares of common stock, $.01 par value per share, 75,000,000 shares of excess stock, at $.01 par value per share, and 25,000,000 shares of preferred stock, par value $.01 per share.  As of June 30, 2012, 89,937,501 shares of common stock and no shares of excess stock were issued and outstanding.

In July 2011, we, along with the Operating Partnership, entered into an “at-the-market” equity offering program, or ATM Program, to sell an aggregate of $250.0 million of our common stock. During the six months ended June 30, 2012, we had sold 2.6 million shares of our common stock through the ATM Program for aggregate gross proceeds of approximately $204.6 million ($201.6 million of net proceeds after related expenses). The net proceeds were used to repay debt, fund new investments and for other corporate purposes. As of June 30, 2012, we had $45.4 million available to issue under the ATM Program.

Perpetual Preferred Stock

We have 11,700,000 shares of our 7.625% Series C cumulative redeemable preferred stock, or the Series C preferred stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series C preferred stockholders receive annual dividends of $1.90625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions.  We are entitled to redeem the Series C preferred stock at par for cash at our option.  The Series C preferred stock was recorded net of underwriters discount and issuance costs.

We also had 4,000,000 shares of our 7.875% Series D cumulative redeemable preferred stock, or the Series D preferred stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series D preferred stockholders receive annual dividends of $1.96875 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions.  We are entitled to redeem the Series D preferred stock at par for cash at our option.  The Series D preferred stock was recorded net of underwriters discount and issuance costs. The Series D preferred stock was redeemed in July 2012 in accordance with its terms. See Note 19, “Subsequent Events.”

Dividend Reinvestment and Stock Purchase Plan

In March 2012, we filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRIP, which automatically became effective upon filing. We registered 3,500,000 shares of our common stock under the DRIP. The DRIP commenced on September 24, 2001.

During the six months ended June 30, 2012 and 2011, we issued approximately 1.3 million shares and 87 shares and received approximately $99.5 million and $6,500 of proceeds, respectively, from dividend reinvestments and/or stock purchases under the DRIP. DRIP shares may be issued at a discount to the market price.

Second Amended and Restated 2005 Stock Option and Incentive Plan

We have a stock option and incentive plan.  The second Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by our board of directors in April 2010 and our stockholders in June 2010 at our annual meeting of stockholders.  The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights and other equity-based awards.  Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 10,730,000 fungible units may be granted under the 2005 Plan.  Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 1.65 fungible units per share subject to such award (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five year from the date of grant counting as 0.79 fungible units per share subject to such award and (3) all other awards (e.g., ten-year stock options) counting as 1.0 fungible units per share subject to such award.  Awards granted under the 2005 Plan prior to the approval of the second amendment and restatement in June 2010 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios.  As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 10,730,000 shares.  If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards.  Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares.  Currently, unless the 2005 Plan has been previously terminated by the board of directors, new awards may be granted under the 2005 Plan until June 15, 2020, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by our stockholders. As of June 30, 2012, approximately 4.1 million fungible units were available for issuance under the 2005 Plan, or 5.2 million if all fungible units available under the 2005 Plan were issued as five-year stock options.

Options are granted under the plan at the fair market value on the date of grant and, subject to termination of employment, generally expire ten years from the date of grant, are not transferable other than on death, and generally vest in one to five years commencing one year from the date of grant.

The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information with the following weighted average assumptions for grants during the six months ended June 30, 2012 and the year ended December 31, 2011.

	June 30,2012		December 31,2011
Dividend yield	2.00	%	2.00	%
Expected life of option	5.0 years		4.2 years
Risk-free interest rate	0.99	%	1.00	%
Expected stock price volatility	44.00	%	47.98	%

A summary of the status of our stock options as of June 30, 2012 and December 31, 2011 and changes during the periods then ended are presented below:

	June 30, 2012					December 31, 2011
	Options Outstanding			Weighted Average ExercisePrice		Options Outstanding			Weighted Average Exercise Price
Balance at beginning of year	1,277,200			$	63.37	1,353,002			$	58.85
Granted	25,000			68.16		212,400			66.42
Exercised	(137,238		)	42.89		(243,901		)	40.48
Lapsed or cancelled	(25,919		)	66.42		(44,301		)	65.89
Balance at end of period	1,139,043			$	65.89	1,277,200			$	63.37
Options exercisable at end of period	739,287			$	69.32	644,429			$	72.31
Weighted average fair value of options granted during the period	$	557,944				$	4,647,554

All options were granted within a price range of $20.67 to $137.18.  The remaining weighted average contractual life of the options outstanding was 3.66 years and the remaining weighted average contractual life of the options exercisable was 3.74 years.

During the three and six months ended June 30, 2012 and 2011, we recognized approximately $1.1 million, $2.8 million, $1.0 million and $2.6 million of compensation expense, respectively, for these options. As of June 30, 2012, there was approximately $5.6 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of three years.

Stock-based Compensation

Effective January 1, 1999, we implemented a deferred compensation plan, or the Deferred Plan, covering certain of our employees, including our executives.  The shares issued under the Deferred Plan were granted to certain employees, including our executives, and vesting will occur annually upon the completion of a service period or our meeting established financial performance criteria.  Annual vesting occurs at rates ranging from 15% to 35% once performance criteria are reached.

A summary of our restricted stock as of June 30, 2012 and December 31, 2011 and charges during the respective periods is presented below:

	Six Months Ended June 30,			Year Ended December 31,
Restricted Stock Awards	2012			2011
Balance at beginning of year	2,912,456			2,728,290
Granted	1,694			185,333
Cancelled	(200,284		)	(1,167		)
Balance at end of period	2,713,866			2,912,456
Vested during the period	306,124			66,299
Compensation expense recorded	$	3,715,237		$	17,365,401
Weighted average fair value of restricted stock granted during the period	$	116,369		$	21,768,084

The fair value of restricted stock that vested during the six months ended June 30, 2012 was $16.2 million. As of June 30, 2012, there was $7.3 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of approximately 1.5 years.

For the three and six months ended June 30, 2012 and 2011, approximately $1.0 million, $2.0 million, $0.9 million and $1.9 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.

We granted LTIP units which had a fair value of $8.5 million as a component of 2011 bonus awards. The grant date fair value of the LTIP unit awards was calculated in accordance with ASC 718. A third party consultant determined the fair value of the LTIP units to have a discount from SL Green’s unrestricted common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP units will reach parity with other common partnership units and the illiquidity due to transfer restrictions.

2006 Long-Term Outperformance Compensation Program

In August 2006, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2006 Outperformance Plan.  The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan.

The cost of the 2006 Outperformance Plan (approximately $16.4 million, subject to adjustment for forfeitures) was amortized into earnings through July 31, 2011, the final vesting period.  We recorded compensation expense of approximately $30,000 and $60,000 for the three and six months ended June 30, 2011, respectively, in connection with the 2006 Outperformance Plan. The cost of the 2006 Outperformance Plan had been fully expensed as of the quarter ended September 30, 2011.

2010 Notional Unit Long-Term Compensation Plan

In December 2009, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Program, or the 2010 Long-Term Compensation Plan.  The 2010 Long-Term Compensation Plan is a long-term incentive compensation plan pursuant to which award recipients may earn, in the aggregate, from approximately $15 million up to approximately $75 million of LTIP Units in the Operating Partnership based on our stock price appreciation over three years beginning on December 1, 2009; provided that, if maximum performance has been achieved, approximately $25 million of awards may be earned at any time after the beginning of the second year and an additional approximately $25 million of awards may be earned at any time after the beginning of the third year.  The amount of awards earned will range from approximately $15 million if our aggregate stock price appreciation during the performance period is 25% to the maximum amount of approximately $75 million if our aggregate stock price appreciation during the performance period is 50% or greater.  No awards will be earned if our aggregate stock price appreciation is less than 25%.  After the awards are earned, they will remain subject to vesting, with 50% of any LTIP Units earned vesting on January 1, 2013 and an additional 25% vesting on each of January 1, 2014 and 2015 based, in each case, on continued employment through the vesting date.  We will not pay distributions on any LTIP Units until they are earned, at which time we will pay all distributions that would have been paid on the earned LTIP Units since the beginning of the performance period.  In January 2011, the compensation committee determined that under the terms of the 2010 Long-Term Compensation Plan, as of December 5, 2010, maximum performance had been achieved and, accordingly, approximately 366,815 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In January 2012, the compensation committee determined that under the terms of the 2010 Long-Term Compensation Plan, as of December 1, 2011, maximum performance had been achieved and, accordingly, approximately 385,583 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In accordance with the terms of the program, 50% of these LTIP Units will vest on January 1, 2013 and the remainder is scheduled to vest ratably over the subsequent two years based on continued employment.

Overall, the 2010 Long-Term Compensation Plan contemplates maximum potential awards of 1,179,987 LTIP Units and a cap of approximately $75 million when earned.  However, sufficient shares were not available under the 2005 Plan to fund the entire 2010 Long-Term Compensation Plan in December 2009, and the awards granted at that time, in the aggregate, were limited to 744,128 LTIP Units, subject to performance-based and time-based vesting, unless and until additional shares became available under the 2005 Plan prior to the end of the performance period for the 2010 Long-Term Compensation Plan.  At our annual meeting of stockholders on June 15, 2010, our stockholders approved the adoption of the 2005 Plan which, among other things, increased the number of shares available under the plan. That increase allowed us to award the balance of the LTIP Units due under the 2010 Long-Term Compensation Plan. The remaining awards were granted in June 2010. The cost of the 2010 Long-Term Compensation Plan (approximately $31.7 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $1.9 million, $3.7 million, $2.2 million and $4.2 million for the three and six months ended June 30, 2012 and 2011, respectively, related to the 2010 Long-Term Compensation Plan.

2011 Outperformance Plan

In August 2011, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2011 Outperformance Plan, or the 2011 Outperformance Plan. Participants in the 2011 Outperformance Plan may earn, in the aggregate, up to $85 million of LTIP Units in the Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2011. Under the 2011 Outperformance Plan, participants will be entitled to share in a “performance pool” comprised of LTIP Units with a value equal to 10% of the amount, if any, by which our total return to stockholders during the three-year period exceeds a cumulative total return to stockholders of 25%, subject to the maximum of $85 million of LTIP Units; provided that if maximum performance has been achieved, approximately one-third of each award may be earned at any time after the beginning of the second year and an additional approximately one-third of each award may be earned at any time after the beginning of the third year. LTIP Units earned under the 2011 Outperformance Plan will be subject to continued vesting requirements, with 50% of any awards earned vesting on August 31, 2014 and the remaining 50% vesting on August 31, 2015, subject to continued employment with us through such dates. Participants will not be entitled to distributions with respect to LTIP Units granted under the 2011 Outperformance Plan unless and until they are earned. If LTIP Units are earned, each participant will also be entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of additional LTIP Units. Thereafter, distributions will be paid currently with respect to all earned LTIP Units, whether vested or unvested.

As of June 30, 2012, 96.8% of the 2011 Outperformance Plan had been granted. The cost of the 2011 Outperformance Plan for the 96.8% granted (approximately $26.1 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $1.4 million and $2.6 million during the three and six months ended June 30, 2012 related to this program.

Deferred Stock Compensation Plan for Directors

Under our Independent Director’s Deferral Program, which commenced July 2004, our non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees and meeting fees.  Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units.  The phantom stock units are convertible into an equal number of shares of common stock upon such directors’ termination of service from the Board of Directors or a change in control by us, as defined by the program.  Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the applicable dividend record date for the respective quarter.  Each participating non-employee director’s account is also credited for an equivalent amount of phantom stock units based on the dividend rate for each quarter.

During the six months ended June 30, 2012, 6,351 phantom stock units were earned.  As of June 30, 2012, there were approximately 73,200 phantom stock units outstanding.

Employee Stock Purchase Plan

On September 18, 2007, our board of directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to increase their efforts to make our business more successful by providing equity-based incentives to eligible employees.  The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase our shares of common stock through payroll deductions.  The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change.  We filed a registration statement on Form S-8 with the SEC with respect to the ESPP.  The common stock is offered for purchase through a series of successive offering periods.  Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008.  The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders.  As of June 30, 2012, approximately 60,527 shares of our common stock had been issued under the ESPP.

Earnings per Share

Earnings per share for the three and six months ended June 30, 2012 and 2011 is computed as follows (amounts in thousands):

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2012		2011		2012		2011
Numerator (Income)
Basic Earnings:
Income attributable to SL Green common stockholders	$	103,040	$	526,458	$	128,296	$	607,344
Effect of Dilutive Securities:
Redemption of units to common shares	3,421		11,925		4,309		13,776
Stock options	—		—		—		—
Diluted Earnings:
Income attributable to SL Green common stockholders	$	106,461	$	538,383	$	132,605	$	621,120

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2012	2011	2012	2011
Denominator (Weighted Average Shares)
Basic Earnings:
Shares available to common stockholders	89,789	83,578	88,265	81,632
Effect of Dilutive Securities:
Redemption of units to common shares	3,193	1,912	3,121	1,858
3.0% exchangeable senior debentures due 2017	—	—	—	—
3.0% exchangeable senior debentures due 2027	—	—	—	—
4.0% exchangeable senior debentures due 2025	—	—	—	—
Stock-based compensation plans	369	520	380	505
Diluted Shares	93,351	86,010	91,766	83,995

We have excluded approximately 729,000, 768,000, 579,000 and 654,000 common stock equivalents from the diluted shares outstanding for the three and six months ended June 30, 2012 and 2011, respectively, as they were anti-dilutive.

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Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

Segment Information

17.  Segment Information

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

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

Selected results of operations for the three and six months ended June 30, 2012 and 2011, and selected asset information as of June 30, 2012 and December 31, 2011, regarding our operating segments are as follows (amounts in thousands):

	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues:
Three months ended:
June 30, 2012	$	315,557	$	33,448	$	349,005
June 30, 2011	283,561		15,144		298,705
Six months ended:
June 30, 2012	$	628,411	$	59,786	$	688,197
June 30, 2011	548,104		79,823		627,927
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments:
Three months ended:
June 30, 2012	$	81,910	$	27,013	$	108,923
June 30, 2011	14,358		11,966		26,324
Six months ended:
June 30, 2012	$	82,343	$	47,928	$	130,271
June 30, 2011	28,226		76,328		104,554
Total assets:
As of:
June 30, 2012	$	13,141,444	$	997,669	$	14,139,113
December 31, 2011	12,490,502		993,350		13,483,852

Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income less allocated interest expense for the debt and preferred equity segment.  Interest costs for the debt and preferred equity segment are imputed assuming 100% leverage at our 2011 revolving credit facility borrowing cost.  We also allocated loan loss reserves, net of recoveries to the debt and preferred equity segment.  We do not allocate marketing, general and administrative expenses and transaction related costs (approximately $22.7 million, $44.0 million, $23.7 million and $46.1 million for the three and six months ended June 30, 2012 and 2011, respectively) to the debt and preferred equity segment, since we base performance on the individual segments prior to allocating marketing, general and administrative expenses.  All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.

The table below reconciles income from continuing operations to net income attributable to SL Green common stockholders for the three and six months ended June 30, 2012 and 2011 (amounts in thousands):

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2012			2011			2012			2011
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments	$	108,923		$	26,324		$	130,271		$	104,554
Purchase price fair value adjustment	—			475,102			—			488,890
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	9,534			—			16,794			—
Income from continuing operations	118,457			501,426			147,065			593,444
Net income (loss) from discontinued operations	—			1,676			(78		)	3,549
Gain on sale of discontinued operations	—			46,085			6,627			46,085
Net income	118,457			549,187			153,614			643,078
Net income attributable to noncontrolling interests in the operating partnership	(3,421		)	(11,925		)	(4,309		)	(13,776		)
Net income attributable to noncontrolling interests in other partnerships	(3,887		)	(3,259		)	(4,958		)	(6,869		)
Preferred units distributions	(565		)	—			(962		)	—
Net income attributable to SL Green	110,584			534,003			143,385			622,433
Preferred stock dividends	(7,544		)	(7,545		)	(15,089		)	(15,089		)
Net income attributable to SL Green common stockholders	$	103,040		$	526,458		$	128,296		$	607,344

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Significant Accounting Policies (Details 2) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Significant Accounting Policies
Net unrealized gains related to marketable securities included in accumulated other comprehensive loss	$ 7,100,000
Level 1 | Equity marketable securities
Investment in Marketable Securities
Total marketable securities available-for-sale	8,065,000	8,065,000
Level 2 | Commercial mortgage-backed securities
Investment in Marketable Securities
Total marketable securities available-for-sale	11,636,000	13,369,000
Level 3
Investment in Marketable Securities
Cost Basis	3,800,000	3,900,000
Level 3 | Rake bonds
Investment in Marketable Securities
Total marketable securities available-for-sale	3,801,000	3,889,000
Estimated fair value
Investment in Marketable Securities
Total marketable securities available-for-sale	$ 23,502,000	$ 25,323,000

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Noncontrolling Interests in Operating Partnership (Tables)

6 Months Ended

Jun. 30, 2012

Noncontrolling Interests in Operating Partnership

Schedule of activity relating to the noncontrolling interests in the operating partnership

	Six Months Ended June 30,2012			Year Ended December 31, 2011
Balance at beginning of period	$	195,030		$	84,338
Distributions	(1,561		)	(1,264		)
Issuance of common units	35,917			60,443
Redemption of common units	(483		)	(865		)
Net income	4,309			14,629
Accumulated other comprehensive income allocation	(337		)	(291		)
Fair value adjustment	46,810			38,040
Balance at end of period	$	279,685		$	195,030

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Consolidated Statements of Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statements of Income
Operating expenses, paid to affiliates	$ 4,729	$ 3,498	$ 8,188	$ 6,613

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Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2012

Organization and Basis of Presentation

Organization and Basis of Presentation

1.  Organization and Basis of Presentation

SL Green Realty Corp., which is referred to as the Company or SL Green, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities.  The Operating Partnership received a contribution of interest in the real estate properties, as well as 95% of the economic interest in the management, leasing and construction companies, which is referred to as the Service Corporation, a consolidated variable interest entity.  All of the management, leasing and construction services with respect to the properties which are wholly-owned by us are conducted through SL Green Management LLC which is 100% owned by our Operating Partnership.  The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT.  A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to minimize the payment of Federal income taxes at the corporate level.  Unless the context requires otherwise, all references to the “we,” “our” and “us” means the Company and all entities owned or controlled by the Company, including the Operating Partnership.

Substantially all of our assets are held by, and our operations are conducted through, the Operating Partnership.  The Company is the sole managing general partner of the Operating Partnership.  As of June 30, 2012, noncontrolling investors held, in the aggregate, a 3.7% limited partnership interest in the Operating Partnership.  We refer to these interests as the noncontrolling interests in the Operating Partnership.  See Note 13, “Noncontrolling Interests in Operating Partnership.”

Reckson Associates Realty Corp., or Reckson, and Reckson Operating Partnership, L.P., or ROP, are wholly-owned subsidiaries of the Operating Partnership.

As of June 30, 2012, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan, a borough of New York City, or Manhattan.  Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:

Location	Ownership	Number of Properties	Square Feet	Weighted Average Occupancy(1)
Manhattan	Consolidated properties	27	18,644,945	93.1	%
	Unconsolidated properties	7	5,326,815	95.7	%
Suburban	Consolidated properties	25	3,863,000	80.6	%
	Unconsolidated properties	6	2,941,700	93.1	%
		65	30,776,460	92.0	%

(1)The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

We also owned investments in 13 stand-alone retail properties encompassing approximately 398,686 square feet, eight development properties encompassing approximately 2,614,996 square feet, two residential properties encompassing 385 units (approximately 430,482 square feet) and two land interests as of June 30, 2012.  In addition, we manage three office properties owned by third parties and affiliated companies encompassing approximately 0.9 million rentable square feet. As of June 30, 2012, we also held $982.2 million in debt and preferred equity investments.

Partnership Agreement

In accordance with the partnership agreement of the Operating Partnership, or the Operating Partnership agreement, we allocate all distributions and profits and losses in proportion to the percentage ownership interests of the respective partners.  As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to minimize any Federal income or excise tax at the Company level. Under the Operating Partnership agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of our common stock on a one-for-one basis.

Basis of Quarterly Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.

Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the financial position of the Company at June 30, 2012, and the results of operations for the periods presented have been included.  The 2012 operating results for the period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.  These financial statements should be read in conjunction with the financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2011.

The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

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Investment in Unconsolidated Joint Ventures (Details) (USD $)	3 Months Ended		6 Months Ended			6 Months Ended				1 Months Ended	6 Months Ended		1 Months Ended		6 Months Ended				1 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	1 Months Ended		6 Months Ended		1 Months Ended	6 Months Ended		1 Months Ended	6 Months Ended	1 Months Ended		6 Months Ended			6 Months Ended			1 Months Ended			6 Months Ended	1 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 entity sqft	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 100 Park Avenue sqft	Jun. 30, 2012 21 West 34th Street sqft	Jun. 30, 2012 1604-1610 Broadway sqft	Jun. 30, 2012 27-29 West 34th Street sqft	Jun. 30, 2012 717 Fifth Avenue	Jun. 30, 2012 717 Fifth Avenue sqft	Jun. 30, 2012 800 Third Avenue sqft	Jul. 31, 2012 One Court Square	Nov. 30, 2011 One Court Square	Jun. 30, 2012 One Court Square sqft	Jun. 30, 2012 1745 Broadway sqft	Jun. 30, 2012 1 and 2 Jericho Plaza sqft	Jun. 30, 2012 16 Court Street sqft	Sep. 30, 2009 The Meadows	Jun. 30, 2012 The Meadows sqft	Dec. 31, 2010 The Meadows	Jun. 30, 2012 388 and 390 Greenwich Street sqft y	Aug. 31, 2011 180/182 Broadway and 63 Nassu Street	Dec. 31, 2010 180/182 Broadway and 63 Nassu Street floor	Jun. 30, 2012 180/182 Broadway and 63 Nassu Street sqft	Jun. 30, 2012 600 Lexington Avenue sqft	Dec. 31, 2010 11 West 34th Street	Jun. 30, 2012 11 West 34th Street sqft	Jun. 30, 2012 7 Renaissance sqft	Apr. 30, 2011 3 Columbus Circle	Jun. 30, 2012 3 Columbus Circle sqft	May 31, 2011 280 Park Avenue	Mar. 31, 2011 280 Park Avenue	Jun. 30, 2012 280 Park Avenue sqft	Jun. 30, 2012 1552-1560 Broadway sqft	May 31, 2012 155 West 46th Street	Jun. 30, 2012 747 Madison Avenue sqft	Jun. 30, 2012 724 Fifth Avenue sqft	Jun. 30, 2012 10 East 53rd Street sqft	Mar. 31, 2012 141 Fifth Avenue	Apr. 30, 2012 379 West Broadway	Aug. 31, 2011 1551-1555 Broadway	Jun. 30, 2012 1552 Broadway sqft	Nov. 30, 2011 450 West 33rd Street
General information on each joint venture
Number of VIEs in which the entity is not primary beneficiary			2
Net equity investment in VIEs in which the entity is not primary beneficiary	$ 167,200,000		$ 167,200,000		$ 161,900,000
Beneficial interest sold (as a percent)										50.00%																																10.00%
Consideration received for sale of beneficial interest																																										9,700,000
Ownership Interest (as a percent)						49.90%	50.00%	45.00%	50.00%	10.92%	10.92%	42.95%			30.00%	32.26%	20.26%	35.00%		50.00%		50.60%			25.50%	55.00%		30.00%	50.00%		48.90%			50.00%	50.00%		33.33%	50.00%	55.00%					100.00%
Economic Interest (as a percent)						49.90%	50.00%	63.00%	50.00%	10.92%	10.92%	42.95%			30.00%	32.26%	20.26%	35.00%		50.00%		50.60%			25.50%	55.00%		30.00%	50.00%		48.90%			50.00%	50.00%		33.33%	50.00%	55.00%
Square Feet			30,776,460			834,000	30,000	30,000	41,000		120,000	526,000			1,402,000	674,000	640,000	318,000		582,000		2,600,000			71,000	304,000		17,000	37,000		769,000			1,237,000	49,000		10,000	65,000	390				13,045
Acquisition Price						95,800,000	22,400,000	4,400,000	30,000,000	251,900,000	251,900,000	285,000,000			533,500,000	520,000,000	210,000,000	107,500,000		111,500,000		1,575,000,000			43,600,000	193,000,000		10,800,000	4,000,000		500,000,000			400,000,000	136,550,000	8,400,000	66,250,000	223,000,000	252,500,000
Depreciable real estate reserves, net of recoveries	5,789,000		5,789,000																		2,800,000
Fees position acquired																																									13,500,000
Remaining percentage of interest acquired in joint venture																			50.00%																									50.00%
Triple-net lease arrangement (in years)																						13
Number of floors of student housing																								20
Contribution made by Harel																								28,100,000
Partnership interest sold to Harel by joint venture (as a percent)																								49.00%
Sales price										617,600,000			481,100,000	475,600,000									2,800,000																	46,000,000	48,500,000
Repayment of debt			472,288,000	744,873,000																							12,000,000
Impairment charge in connection with expected sale														5,800,000
Additional cash income recognized due to distribution of refinancing proceeds											67,900,000
Additional income recognized on repayment of debt		971,000		971,000																							1,100,000
Operating partnership units issued (in shares)																															306,296
Committed additional contribution																															47,500,000
Committed additional capital contribution funded																															33,000,000
Bridge loan made																														125,000,000
Interest rate on bridge loan made (as a percent)																														7.50%
Debt investments contributed to joint venture				286,571,000																													286,600,000
Additional income upon the contribution of debt investment to joint venture	33,448,000	15,144,000	59,786,000	79,823,000																													38,700,000
Amount received from joint venture			26,099,000	150,893,000																													111,300,000
Floating rate financing assumed by joint venture			59,099,000	30,000,000																													30,000,000
Valuation of investment under the recapitalization transaction																																1,100,000,000
Effective ownership interest in underlying investment (as a percent)																																49.50%
Recognized gain (loss) on sale of interest in property	$ 9,534,000		$ 16,794,000							$ 3,000,000																														$ 7,300,000	$ 6,500,000	$ 4,000,000

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Equity (Details 3) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012 y	Jun. 30, 2011	Jun. 30, 2012 y	Jun. 30, 2011	Dec. 31, 2011 y
Summary of restricted stock
Compensation expense related to long-term compensation plans, restricted stock and stock options capitalized to assets	$ 1,000,000	$ 900,000	$ 2,000,000	$ 1,900,000
Stock options
Stock based compensation
Options expiration period (in years)			P10Y
Options vesting period, minimum (in years)			P1Y
Options vesting period, maximum (in years)			P5Y
Period of commencement of option vesting, from date of grant (in years)	1		1
Weighted average assumptions used for estimation of fair value of each stock option
Dividend yield (as a percent)			2.00%		2.00%
Expected life of option (in years)			5.0		4.2
Risk-free interest rate (as a percent)			0.99%		1.00%
Expected stock price volatility (as a percent)			44.00%		47.98%
Weighted average fair value of awards granted during the period			557,944		4,647,554
Options Outstanding
Balance at beginning of year (in shares)			1,277,200	1,353,002	1,353,002
Granted (in shares)			25,000		212,400
Exercised (in shares)			(137,238)		(243,901)
Lapsed or cancelled (in shares)			(25,919)		(44,301)
Balance at end of period (in shares)	1,139,043		1,139,043		1,277,200
Options exercisable at end of period (in shares)	739,287		739,287		644,429
Weighted Average Exercise Price
Balance at beginning of year (in dollars per share)			$ 63.37	$ 58.85	$ 58.85
Granted (in dollars per share)	$ 68.16		$ 68.16		$ 66.42
Exercised (in dollars per share)	$ 42.89		$ 42.89		$ 40.48
Lapsed or cancelled (in dollars per share)			$ 66.42		$ 65.89
Balance at end of period (in dollars per share)	$ 65.89		$ 65.89		$ 63.37
Options exercisable at end of period (in dollars per share)	$ 69.32		$ 69.32		$ 72.31
Exercise price of options granted, low end of the range (in dollars per share)			$ 20.67
Exercise price of options granted, high end of the range (in dollars per share)			$ 137.18
Remaining weighted average contractual life of the options outstanding (in years)	3.66		3.66
Remaining weighted average contractual life of the options exercisable (in years)			3.74
Share-based compensation, additional disclosures
Compensation expense	1,100,000	1,000,000	2,800,000	2,600,000
Total unrecognized compensation cost related to unvested stock awards	5,600,000		5,600,000
Weighted average period for recognition of compensation cost related to unvested stock awards (in years)			3
Restricted Stock Awards
Weighted average assumptions used for estimation of fair value of each stock option
Weighted average fair value of awards granted during the period			116,369		21,768,084
Share-based compensation, additional disclosures
Compensation expense			3,715,237		17,365,401
Total unrecognized compensation cost related to unvested stock awards	7,300,000		7,300,000
Weighted average period for recognition of compensation cost related to unvested stock awards (in years)			1.5
Annual award vesting rate, low end of range (as a percent)			15.00%
Annual award vesting rate, high end of range (as a percent)			35.00%
Summary of restricted stock
Balance at beginning of year (in shares)			2,912,456	2,728,290	2,728,290
Granted (in shares)			1,694		185,333
Cancelled (in shares)			(200,284)		(1,167)
Balance at end of period (in shares)	2,713,866		2,713,866		2,912,456
Vested during the period (in shares)			306,124		66,299
Fair value of restricted stock vested during the period			16,200,000
LTIP units
Weighted average assumptions used for estimation of fair value of each stock option
Weighted average fair value of awards granted during the period			$ 8,500,000

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Supplemental Disclosure of Non-Cash Investing and Financing Activities

6 Months Ended

Jun. 30, 2012

Supplemental Disclosure of Non-Cash Investing and Financing Activities

Supplemental Disclosure of Non-Cash Investing and Financing Activities

18.  Supplemental Disclosure of Non-Cash Investing and Financing Activities

A summary of our non-cash investing and financing activities for the six months ended June 30, 2012 and 2011 is presented below (amounts in thousands):

	Six Months Ended June 30,
	2012		2011
Issuance of common stock as deferred compensation	$	544	$	545
Issuance of units in the operating partnership	35,917		20,222
Redemption of units in the operating partnership	483		725
Derivative instruments at fair value	314		1,071
Assignment of debt investment to joint venture	—		286,571
Mortgage assigned upon asset sale	59,099		30,000
Tenant improvements and capital expenditures payable	12,294		8,389
Assumption of mortgage loans	—		663,767
Fair value adjustment to noncontrolling interest in operating partnership	46,810		42,296
Accrued acquisition liabilities	—		44,500
Consolidation of real estate investments	—		557,314
Transfer to net assets held for sale	86,339		—
Transfer to liabilities related to net assets held for sale	62,792		—
Repayment of mezzanine loan	3,750		—
Redemption of Series E units	31,698		—
Repayment of financing receivable	28,195		—

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Financial Instruments: Derivatives and Hedging (Details) (USD $)	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2010 y	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Financial Instruments: Derivatives and Hedging
Loss from settlement of hedges included in accumulated other comprehensive loss		$ (17,500,000)		$ (17,500,000)
Share of joint venture accumulated other comprehensive loss		(18,000,000)		(18,000,000)
Net loss on forward swaps	19,500,000
Amortization period of the loss from the settlement of the hedges (in years)	10
Accumulated Other Comprehensive Loss relating to derivatives		35,500,000		35,500,000		35,400,000
Estimated current balance held in accumulated other comprehensive loss to be reclassified into earnings within the next 12 months		1,800,000
Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) on derivatives qualifying as hedges		(6,844,000)	(6,186,000)	(6,923,000)	(6,304,000)
Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) on derivatives qualifying as hedges		(3,215,000)	(3,145,000)	(6,416,000)	(6,216,000)
Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) on derivatives not qualifying as hedges		380,000	(127,000)	(331,000)	(657,000)
Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) on derivatives qualifying as hedges		(1,000)	(18,000)	(1,000)	(18,000)
Interest Rate Cap expiring in April, 2013
Financial Instruments: Derivatives and Hedging
Notional Value		775,000,000		775,000,000
Strike Rate (as a percent)		3.65%		3.65%
Interest Rate Cap
Financial Instruments: Derivatives and Hedging
Notional Value		280,000,000		280,000,000
Strike Rate (as a percent)		6.00%		6.00%
Interest Rate Swap
Financial Instruments: Derivatives and Hedging
Notional Value		30,000,000		30,000,000
Strike Rate (as a percent)		2.295%		2.295%
Interest Rate Cap expiring in February, 2015
Financial Instruments: Derivatives and Hedging
Notional Value		8,500,000		8,500,000
Strike Rate (as a percent)		0.74%		0.74%
Currency Hedge
Financial Instruments: Derivatives and Hedging
Notional Value		20,748,000		20,748,000
Strike Rate		1.55185		1.55185
Level 2
Financial Instruments: Derivatives and Hedging
Fair Value		2,200,000		2,200,000
Level 2 | Interest Rate Swap
Financial Instruments: Derivatives and Hedging
Fair Value		(1,944,000)		(1,944,000)
Level 2 | Interest Rate Cap expiring in February, 2015
Financial Instruments: Derivatives and Hedging
Fair Value		(68,000)		(68,000)
Level 2 | Currency Hedge
Financial Instruments: Derivatives and Hedging
Fair Value		$ (170,000)		$ (170,000)

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Corporate Indebtedness (Tables)

6 Months Ended

Jun. 30, 2012

Corporate Indebtedness

Schedule of senior unsecured notes and other related disclosures by scheduled maturity date

Issuance	June 30, 2012 Unpaid Principal Balance		June 30, 2012 Accreted Balance		December 31, 2011 Accreted Balance		Coupon Rate(1)		Effective Rate		Term (in Years)	Maturity
March 26, 2007(2)	$	18,003	$	18,003	$	119,423	3.000	%	3.000	%	20	March 30, 2027
June 27, 2005(3)(4)	357		357		657		4.000	%	4.000	%	20	June 15, 2025
March 16, 2010(5)	250,000		250,000		250,000		7.750	%	7.750	%	10	March 15, 2020
August 5, 2011(5)	250,000		249,593		249,565		5.000	%	5.031	%	7	August 15, 2018
October 12, 2010(6)	345,000		282,414		277,629		3.000	%	7.125	%	7	October 15, 2017
March 31, 2006(3)	275,000		274,824		274,804		6.000	%	6.019	%	10	March 31, 2016
August 13, 2004(3)	98,578		98,578		98,578		5.875	%	5.875	%	10	August 15, 2014
	$	1,236,938	$	1,173,769	$	1,270,656

(1)Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

(2)In March 2007, the Operating Partnership issued $750.0 million of these exchangeable notes.  Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a 25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are currently redeemable at the Operating Partnership’s option.  The Operating Partnership may be required to repurchase the notes on March 30, 2017 and 2022, and upon the occurrence of certain designated events. On March 30, 2012, we repurchased $102.2 million of aggregate principal amount of the exchangeable notes pursuant to a mandatory offer to repurchase the notes. On the issuance date, $66.6 million was recorded in equity and was fully amortized as of March 31, 2012.

(3)Issued by ROP.

(4)Exchangeable senior debentures which are currently callable at  par.  In addition, the debentures can be put to ROP, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions.  As a result of the acquisition of all outstanding shares of common stock of Reckson, or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491.  During the six months ended June 30, 2012, we repurchased $300,000 of these bonds at par.

(5)Issued by us, the Operating Partnership and ROP, as co-obligors.

(6)In October 2010, the Operating Partnership issued $345.0 million of these exchangeable notes.  Interest on these notes is payable semi-annually on April 15 and October 15. The notes have an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of the Operating Partnership and are exchangeable upon the occurrence of specified events and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. On the issuance date, $78.3 million was recorded in equity.  As of June 30, 2012, approximately $62.6 million remained unamortized.

Schedule of combined aggregate principal maturities

	Scheduled Amortization		Principal Repayments		Revolving Credit Facility		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
2012	$	25,050	$	—	$	—	$	—	$	—	$	25,050	$	56,706
2013	50,910		516,179		—		—		—		567,089		127,516
2014	52,519		146,273		—		—		98,578		297,370		123,984
2015	55,815		229,537		—		—		357		285,709		102,478
2016	55,303		516,896		80,000		—		274,824		927,023		528,305
Thereafter	288,797		2,986,976		—		100,000		800,010		4,175,783		980,761
	$	528,394	$	4,395,861	$	80,000	$	100,000	$	1,173,769	$	6,278,024	$	1,919,750

Schedule of interest expense, excluding capitalized interest

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Interest expense	$	82,728		$	68,711		$	163,275		$	133,463
Interest income	(401		)	(538		)	(811		)	(1,024		)
Interest expense, net	$	82,327		$	68,173		$	162,464		$	132,439
Interest capitalized	$	2,996		$	922		$	5,532		$	2,217

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Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions

Related Party Transactions

11.  Related Party Transactions

Cleaning/ Security/ Messenger and Restoration Services

Through Alliance Building Services, or Alliance, First Quality Maintenance, L.P., or First Quality, provides cleaning, extermination and related services, Classic Security LLC provides security services, Bright Star Couriers LLC provides messenger services and Onyx Restoration Works provides restoration services with respect to certain properties owned by us.  Alliance is partially owned by Gary Green, a son of Stephen L. Green, the chairman of our board of directors.  In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services.  The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.  Alliance paid the Service Corporation approximately $0.8 million, $1.6 million, $1.0 million and $1.1 million for the three and six months ended June 30, 2012 and 2011, respectively.  We paid Alliance approximately $4.7 million, $8.2 million, $3.5 million and $6.6 million for the three and six months ended June 30, 2012 and 2011, respectively, for these services (excluding services provided directly to tenants).

Marketing Services

A-List Marketing, LLC, or A-List, provides marketing services to us.  Ms. Deena Wolff, a sister of Mr. Marc Holliday, is the owner of A-List. The aggregate amount of fees we paid to A-List for these marketing services was approximately $44,200, $55,900, $40,700 and $66,200 for the three and six months ended June 30, 2012 and 2011, respectively.

Leases

Nancy Peck and Company leases 1,003 square feet of space at 420 Lexington Avenue under a lease that ends in August 2015.  Nancy Peck and Company is owned by Nancy Peck, the wife of Stephen L. Green.  The rent due pursuant to the lease was $35,516 per annum for year one increasing to $40,000 in year seven.

Management Fees

S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest.  The aggregate amount of fees paid to S.L. Green Management Corp. from such entity was approximately $110,000, $199,000, $111,000 and $221,000 for the three and six months ended June 30, 2012 and 2011, respectively.

Other

Amounts due from related parties at June 30, 2012 and December 31, 2011 consisted of the following (amounts in thousands):

	June 30, 2012		December 31, 2011
Due from joint ventures	$	515	$	477
Other	7,278		3,524
Related party receivables	$	7,793	$	4,001

Gramercy Capital Corp.

See Note 6, “Investment in Unconsolidated Joint Ventures_Gramercy Capital Corp.” for disclosure on related party transactions between Gramercy and us.