EX-99.1 2 a14-11082_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

CONTACT

James Mead

Chief Financial Officer

-and-

Heidi Gillette

Investor Relations

(212) 594-2700

 

SL GREEN REALTY CORP. REPORTS

FIRST QUARTER 2014 FFO OF $1.54 PER SHARE BEFORE TRANSACTION

COSTS; AND EPS OF $1.53 PER SHARE

 

RAISES 2014 EARNINGS GUIDANCE

 

Financial and Operating Highlights

 

·                  First quarter FFO of $1.54 per share before transaction related costs of $0.02 per share compared to $1.17 per share before transaction related costs of $0.01 per share in the prior year.

 

·                  Raising 2014 FFO guidance range by $0.26 per share, or 4.6 percent at the midpoint, to a range of $5.90 to $5.96 per share, reflecting additional earnings from real estate investment activity and debt and preferred equity originations.

 

·                  First quarter net income attributable to common stockholders of $1.53 per share, inclusive of $1.06 per share of gains recognized on the sale of real estate, compares with $0.21 per share in the prior year.

 

·                  Combined same-store cash NOI increased 1.0 percent for the first quarter compared to the prior year, in-line with expectations.  The Company is currently projecting combined same-store cash NOI to increase by 3 to 4 percent for the full year.

 

·                  Signed 75 Manhattan office leases covering 548,062 square feet during the first quarter.  The mark-to-market on replacement office leases was 15.1 percent higher in the first quarter than the previously fully escalated rents on the same spaces.  Based on the leasing achieved in the first quarter and the outlook for the remainder of the year, the Company is increasing its Manhattan mark-to-market expectations for 2014 to a range of 7 to 10 percent.

 

·                  Executed a new lease for 21,802 square feet with Infor, Inc. at 635 Sixth Avenue, with a starting rent in excess of $100 per square foot for the penthouse floor.  The new lease expands Infor’s commitment at 635-641 Sixth Avenue to 114,048 square feet.

 

·                  Signed 33 Suburban office leases covering 159,134 square feet during the first quarter. The mark-to-market on signed Suburban office leases was 0.8 percent higher in the first quarter than the previously fully escalated rents on the same spaces.

 



 

Investing Highlights

 

·                  Closed on the sale of the Company’s joint venture interest in 21-25 West 34th Street for a sales price of $114.9 million and recognized a gain on sale of $20.9 million.

 

·                  Entered into an agreement to acquire the Company’s joint venture partner’s interest in 388-390 Greenwich Street at a valuation for the consolidated investment of $1.585 billion.

 

·                  Closed on the sale of the Company’s joint venture interest in the West Coast Office portfolio for $100.0 million, reflecting a capitalization rate of 5.3 percent, and recognized a gain on sale of $85.5 million.

 

·                  Entered into two separate agreements to acquire prime retail condominiums at 115 Spring Street and 121 Greene Street, located along two of SoHo’s most popular shopping corridors.

 

·                  Entered into a contract to acquire the fee interest at 635 Madison Avenue for $145.0 million.  The improvements to the fee interest include a 19-story 176,530 square foot office tower.

 

·                  Announced an agreement to sell the Company’s leasehold interest in 673 First Avenue for $145.0 million, reflecting a capitalization rate based on in-place net operating income of 4.7 percent.

 

·                  Originated and retained debt and preferred equity investments totaling $160.4 million in the first quarter at a weighted average current yield of 9.0 percent.

 

Financing Highlights

 

·                  Expanded the term loan portion of the Company’s unsecured corporate credit facility by $383.0 million to $783.0 million while reducing the borrowing cost of the facility by 25 basis points and extending the maturity date to June 2019.

 

·                  Closed on a $360.0 million mortgage refinancing of 100 Park Avenue. The new seven-year, floating rate loan replaces the previous $209.4 million mortgage.

 

·                  Closed on a $275.0 million refinancing of 724 Fifth Avenue.  The new three-year, floating rate loan replaces the previous $119.8 million loan.

 



 

Summary

 

New York, NY, April 23, 2014 — SL Green Realty Corp. (NYSE:  SLG) today reported funds from operations, or FFO, of $150.0 million, or $1.52 per share, after giving consideration to transaction costs of $2.5 million, or $0.02 per share, for the quarter ended March 31, 2014, compared to $109.2 million, or $1.16 per share, after giving consideration to transaction costs of $1.4 million, or $0.01 per share for the same quarter in 2013.

 

Net income attributable to common stockholders totaled $146.1 million, or $1.53 per share, for the quarter ended March 31, 2014, inclusive of $106.4 million, or $1.08 per share, of gains recognized on the sale of the Company’s interest in a large, West Coast Office portfolio and 21-25 West 34th Street, compared to $18.9 million, or $0.21 per share, for the same quarter in 2013.

 

All per share amounts in this press release are presented on a diluted basis.

 

Operating and Leasing Activity

 

For the first quarter of 2014, the Company reported consolidated revenues and operating income of $381.1 million and $224.7 million, respectively, compared to $360.0 million and $192.3 million, respectively, for the same period in 2013.

 

Consistent with the Company’s expectations, same-store cash NOI on a combined basis increased by 1.0 percent to $186.2 million for the quarter ended March 31, 2014 as compared to the same period in 2013.    The Company is currently projecting combined same-store cash NOI to increase by 3 to 4 percent for the full year.  Consolidated property same-store cash NOI decreased by 1.1 percent to $154.1 million and unconsolidated joint venture property same-store cash NOI increased 12.5 percent to $32.1 million.

 

Manhattan same-store occupancy was 95.6 percent as of March 31, 2014, inclusive of 357,109 square feet of leases signed but not yet commenced, including expected vacancies during the first quarter at 711 Third Avenue and 810 Seventh Avenue, as compared to 95.9 percent at December 31, 2013 and 94.8 percent at March 31, 2013.

 

During the first quarter, the Company signed 75 office leases in its Manhattan portfolio totaling 548,062 square feet.  Twenty-one leases comprising 160,614 square feet represented office leases that replaced previous vacancy. Fifty-four leases comprising 387,448 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $61.84 per rentable square foot, representing a 15.1 percent increase over the previously fully escalated rents on the same office spaces.  The average lease term on the Manhattan office leases signed in the first quarter was 5.9 years and average tenant concessions were 2.0 months of free rent with a tenant improvement allowance of $29.73 per rentable square foot.

 

Same-store occupancy for the Company’s Suburban portfolio increased to 81.2 percent at March 31, 2014, inclusive of 44,337 square feet of leases signed but not yet commenced, as compared to 80.9 percent at December 31, 2013 and 78.9 percent at March 31, 2013.

 



 

During the first quarter, the Company signed 33 office leases in the Suburban portfolio totaling 159,134 square feet.  Sixteen leases comprising 71,130 square feet represented office leases that replaced previous vacancy. Seventeen leases comprising the remaining 88,004 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $32.35 per rentable square foot, representing a 0.8 percent increase over the previously fully escalated rents on the same office spaces.  The average lease term on the Suburban office leases signed in the first quarter was 8.0 years and average tenant concessions were 3.3 months of free rent with a tenant improvement allowance of $24.90 per rentable square foot.

 

Significant leases that were signed during the first quarter included:

 

·                  Renewal and expansion on 47,162 square feet with The City University of New York for 10.3 years at 16 Court Street, Brooklyn;

 

·                  Early renewal and expansion on 43,148 square feet with ABN AMRO Holdings USA LLC at 100 Park Avenue with an average remaining lease term of 10.6 years;

 

·                  New lease on 25,224 square feet with Napier Park Global Capital LLC for 10.6 years at 280 Park Avenue; and

 

·                  New lease on 21,802 square feet with Infor, Inc. for 10.6 years at 635 Sixth Avenue increasing its commitment at 635-641 Sixth Avenue to 114,048 square feet.

 

Marketing, general and administrative, or MG&A, expenses for the quarter ended March 31, 2014 were $23.3 million, or 5.2 percent of total revenues and an annualized 50 basis points of total assets including the Company’s share of joint venture revenues and assets.

 

Real Estate Investment Activity

 

In January, the Company closed on the sale of its joint venture interest in a 30,100 square foot property located at 21-25 West 34th Street for an allocated sales price of $114.9 million and recognized a gain of $20.9 million.  The Company retained its 50 percent interest in 91,311 square feet of development rights.

 

In March, the Company entered into an agreement to acquire Ivanhoe Cambridge’s stake in 388-390 Greenwich Street, thereby assuming full ownership of the 2.6 million square foot property located in Tribeca. The transaction values the consolidated investment interest at $1.585 billion, reflecting a going-in capitalization rate based on in-place net operating income of 7.0 percent and a fully stabilized capitalization rate of 6.4 percent.  The combined property is triple-net leased to an affiliate of Citigroup Inc. through 2035, under an extension that was announced in December 2013, which was one of the largest lease transactions ever executed in New York. The sale is expected to close during the second quarter of 2014, subject to the satisfaction of customary closing conditions.

 

In March, the Company sold its 43.74 percent interest in a southern California office portfolio for $100.0 million, reflecting a capitalization rate of 5.3 percent, and recognized a gain of $85.5 million. The portfolio consisted of 28 properties totaling 3.7 million square feet, located in various submarkets including Los Angeles, Orange County and San Diego, which was originally part of a 31-property, 4.5 million-square-foot portfolio that the Company acquired through foreclosure.

 



 

In April, the Company announced two separate agreements to acquire prime retail condominiums located along two of SoHo’s most popular shopping corridors.  The Company entered into contracts to acquire the 7,200 square foot retail condominium at 121 Greene Street in Lower Manhattan and the 5,218 square foot retail condominium at 115 Spring Street, in between Mercer and Greene streets.  The acquisitions will add to the Company’s expanding prime retail property portfolio, which features substantial investment interests along several of New York City’s most heavily trafficked retail corridors.  The Company’s SoHo presence already includes retail assets at 131-137 Spring Street and a participating preferred investment at 530-536 Broadway.

 

In April, the Company entered into a contract to acquire the fee interest at 635 Madison Avenue for $145.0 million. The property is encumbered by a ground lease through April 2030 with one 21-year extension option and improvements include a 19-story 176,530 square foot office tower.  The acquisition increases the Company’s footprint in Manhattan’s prestigious Plaza District, where it also owns several office and retail properties, including 625 Madison Avenue, 724 Fifth Avenue, 1350 Avenue of the Americas, 10 E. 53rd Street and the recently acquired retail at 650 Fifth Avenue.  The off-market transaction, which is subject to the satisfaction of customary closing conditions, is expected to be completed during the third quarter of 2014.

 

In April, the Company announced an agreement to sell its leasehold interest in 673 First Avenue for $145.0 million, reflecting a capitalization rate based on in-place net operating income of 4.7 percent.  The sale of the 422,000 square foot office building is expected to close during the second quarter 2014, subject to the satisfaction of customary closing conditions.

 

Debt and Preferred Equity Investment Activity

 

The carrying value of the Company’s debt and preferred equity investment portfolio totaled $1.5 billion at March 31, 2014.  During the first quarter, the Company originated and retained new debt and preferred equity investments totaling $160.4 million, at a weighted average current yield of 9.0 percent. The debt and preferred equity investment portfolio had a weighted average maturity of 2.0 years as of March 31, 2014, excluding any extension options, and had a weighted average yield during the first quarter of 10.6 percent.

 

Financing and Capital Activity

 

In March, the Company amended and expanded the term loan portion of its unsecured corporate credit facility by $383.0 million to $783.0 million. The maturity date of the term loan was extended to June 2019 and the cost of the term loan was reduced to 140 basis points over LIBOR.  The facility also includes a $1.2 billion revolving line of credit that matures in March 2018, inclusive of the Company’s aggregate one-year, as-of-right extension option.

 



 

In February, the Company closed on a $360.0 million mortgage refinancing of 100 Park Avenue. The new loan, which replaces the previous $209.4 million mortgage, matures in February 2021 and bears interest at 175 basis points over LIBOR.

 

In April, the Company and its joint venture partner closed on a $275.0 million refinancing of 724 Fifth Avenue, resulting in proceeds in excess of our original basis in the building.  The new loan matures in April 2017 with two one-year extension options and bears interest at a blended rate of 242 basis points over LIBOR.

 

Guidance

 

Based primarily on the Company’s real estate investment activity, most significantly the acquisition of our partner’s interest in 388-390 Greenwich Street, and the performance of the debt and preferred equity platform for the first three months of 2014 as well as the outlook for that portfolio for the remainder of 2014, the Company is raising its FFO guidance range for 2014 by $0.26 per share, or 4.6 percent at the midpoint, to a range of $5.90 to $5.96 per share from its previously announced guidance range of $5.62 to $5.72 per share.

 

Dividends

 

During the first quarter of 2014, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:

 

·                  $0.50 per share of common stock, which was paid on April 15, 2014 to stockholders of record on the close of business on March 31, 2014; and

 

·                  $0.40625 per share on the Company’s 6.50% Series I Cumulative Redeemable Preferred Stock for the period January 14, 2014 through and including April 14, 2014, which was paid on April 15, 2014 to stockholders of record on the close of business on March 31, 2014, and reflects the regular quarterly dividend which is the equivalent of an annualized dividend of $1.625 per share.

 

Conference Call and Audio Webcast

 

The Company’s executive management team, led by Marc Holliday, Chief Executive Officer, will host a conference call and audio webcast on Thursday, April 24, 2014 at 2:00 pm ET to discuss the financial results.

 

The supplemental package will be available prior to the quarterly conference call on the Company’s website, www.slgreen.com, under “Financial Reports” in the Investors section.

 

The live conference will be webcast in listen-only mode on the Company’s website under “Event Calendar & Webcasts” in the Investors section and on Thomson’s StreetEvents Network. The conference may also be accessed by dialing 866.318.8620 using pass-code “SL Green.”

 

A replay of the call will be available through May 1, 2014 by dialing 888.286.8010 Domestic or 617.801.6888 International, using pass-code 35660442.

 



 

Company Profile

 

SL Green Realty Corp., New York City’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of March 31, 2014, SL Green held interests in 95 Manhattan buildings totaling 45.1 million square feet. This included ownership interests in 28.4 million square feet of commercial buildings and debt and preferred equity investments secured by 16.7 million square feet of buildings. In addition to its Manhattan investments, SL Green held ownership interests in 35 suburban buildings totaling 5.9 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.

 

To be added to the Company’s distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at 212.594.2700.

 



 

Disclaimers

 

Non-GAAP Financial Measures

 

During the quarterly conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found on pages 11 through 12 of this release and in the Company’s Supplemental Package.

 

Forward-looking Statement

 

This press release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. Forward-looking statements are not guarantees of future performance and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.

 

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, 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. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements are described in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

 

8



 

SL GREEN REALTY CORP.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share data)

 

 

 

Three Months Ended
March 31,

 

 

 

2014

 

2013

 

Revenues:

 

 

 

 

 

Rental revenue, net

 

$

272,079

 

$

261,675

 

Escalation and reimbursement

 

40,383

 

39,804

 

Investment and preferred equity income

 

54,084

 

52,708

 

Other income

 

14,582

 

5,766

 

Total revenues

 

381,128

 

359,953

 

Expenses:

 

 

 

 

 

Operating expenses (including approximately $3,411 (2014) and $3,889 (2013) of related party expenses)

 

73,486

 

71,170

 

Real estate taxes

 

55,316

 

52,444

 

Ground rent

 

8,033

 

8,128

 

Interest expense, net of interest income

 

80,180

 

80,775

 

Amortization of deferred financing costs

 

3,868

 

4,463

 

Depreciation and amortization

 

89,379

 

78,623

 

Transaction related costs, net of recoveries

 

2,474

 

1,358

 

Marketing, general and administrative

 

23,257

 

21,067

 

Total expenses

 

335,993

 

318,028

 

Income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, loss on sale of investment in marketable securities and gain (loss) on early extinguishment of debt

 

45,135

 

41,925

 

Equity in net income from unconsolidated joint ventures

 

6,128

 

5,073

 

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

 

104,640

 

 

Loss on sale of investment in marketable securities

 

 

(57

)

Gain (loss) on early extinguishment of debt

 

3

 

(18,513

)

Income from continuing operations

 

155,906

 

28,428

 

Net income from discontinued operations

 

706

 

796

 

Gain on sale of discontinued operations

 

 

1,113

 

Net income

 

156,612

 

30,337

 

Net income attributable to noncontrolling interests in the Operating Partnership

 

(4,729

)

(555

)

Net income attributable to noncontrolling interests in other partnerships

 

(1,490

)

(2,901

)

Preferred unit distributions

 

(565

)

(565

)

Net income attributable to SL Green

 

149,828

 

26,316

 

Perpetual preferred stock dividends

 

(3,738

)

(7,407

)

Net income attributable to SL Green common stockholders

 

$

146,090

 

$

18,909

 

 

 

 

 

 

 

Earnings Per Share (EPS)

 

 

 

 

 

Net income per share (Basic)

 

$

1.54

 

$

0.21

 

Net income per share (Diluted)

 

$

1.53

 

$

0.21

 

 

 

 

 

 

 

Funds From Operations (FFO)

 

 

 

 

 

FFO per share (Basic)

 

$

1.53

 

$

1.16

 

FFO per share (Diluted)

 

$

1.52

 

$

1.16

 

 

 

 

 

 

 

Basic ownership interest

 

 

 

 

 

Weighted average REIT common shares for net income per share

 

95,117

 

91,399

 

Weighted average partnership units held by noncontrolling interests

 

3,079

 

2,687

 

Basic weighted average shares and units outstanding

 

98,196

 

94,086

 

 

 

 

 

 

 

Diluted ownership interest

 

 

 

 

 

Weighted average REIT common share and common share equivalents

 

95,637

 

91,615

 

Weighted average partnership units held by noncontrolling interests

 

3,079

 

2,687

 

Diluted weighted average shares and units outstanding

 

98,716

 

94,302

 

 

9



 

SL GREEN REALTY CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

 

March 31,
2014

 

December 31,
2013

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Commercial real estate properties, at cost:

 

 

 

 

 

Land and land interests

 

$

3,112,013

 

$

3,032,526

 

Building and improvements

 

7,767,616

 

7,884,663

 

Building leasehold and improvements

 

1,375,007

 

1,366,281

 

Properties under capital lease

 

27,445

 

50,310

 

 

 

12,282,081

 

12,333,780

 

Less accumulated depreciation

 

(1,695,568

)

(1,646,240

)

 

 

10,586,513

 

10,687,540

 

Assets held for sale

 

63,925

 

 

Cash and cash equivalents

 

447,162

 

206,692

 

Restricted cash

 

154,492

 

142,051

 

Investment in marketable securities

 

32,130

 

32,049

 

Tenant and other receivables, net of allowance of $18,627 and $17,325 in 2014 and 2013, respectively

 

47,296

 

60,393

 

Related party receivables

 

19,947

 

8,530

 

Deferred rents receivable, net of allowance of $27,939 and $30,333 in 2014 and 2013, respectively

 

378,980

 

386,508

 

Debt and preferred equity investments, net of discounts and deferred origination fees of $17,751 and $18,593 in 2014 and 2013, respectively, and allowance of $1,000 in 2013

 

1,493,725

 

1,304,839

 

Investments in unconsolidated joint ventures

 

1,061,704

 

1,113,218

 

Deferred costs, net

 

261,542

 

267,058

 

Other assets

 

815,873

 

750,123

 

Total assets

 

$

15,363,289

 

$

14,959,001

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Mortgages and other loans payable

 

$

4,971,022

 

$

4,860,578

 

Revolving credit facility

 

 

220,000

 

Term loan and senior unsecured notes

 

2,124,397

 

1,739,330

 

Accrued interest payable and other liabilities

 

112,852

 

114,622

 

Accounts payable and accrued expenses

 

140,346

 

145,889

 

Deferred revenue

 

259,929

 

263,261

 

Capitalized lease obligations

 

20,541

 

47,671

 

Deferred land leases payable

 

958

 

22,185

 

Dividend and distributions payable

 

52,471

 

52,255

 

Security deposits

 

65,077

 

61,308

 

Liabilities related to assets held for sale

 

49,704

 

 

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

 

100,000

 

100,000

 

Total liabilities

 

7,897,297

 

7,627,099

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

Noncontrolling interest in the Operating Partnership

 

298,858

 

265,476

 

Series G Preferred Units, $25.00 liquidation preference, 1,902 issued and outstanding at both March 31, 2014 and December 31, 2013

 

47,550

 

47,550

 

Series H Preferred Units, $25.00 liquidation preference, 80 issued and outstanding at both March 31, 2014 and December 31, 2013

 

2,000

 

2,000

 

 

 

 

 

 

 

Equity

 

 

 

 

 

SL Green Realty Corp. stockholders’ equity:

 

 

 

 

 

Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2014 and December 31, 2013

 

221,932

 

221,932

 

Common stock, $0.01 par value 160,000 shares authorized, 98,919 and 98,563 issued and outstanding at March 31, 2014 and December 31, 2013, respectively (inclusive of 3,600 and 3,570 shares held in Treasury at March 31, 2014 and December 31, 2013, respectively)

 

990

 

986

 

Additional paid-in capital

 

5,049,507

 

5,015,904

 

Treasury stock at cost

 

(320,076

)

(317,356

)

Accumulated other comprehensive loss

 

(14,872

)

(15,211

)

Retained earnings

 

1,688,211

 

1,619,150

 

Total SL Green Realty Corp. stockholders’ equity

 

6,625,692

 

6,525,405

 

Noncontrolling interests in other partnerships

 

491,892

 

491,471

 

Total equity

 

7,117,584

 

7,016,876

 

Total liabilities and equity

 

$

15,363,289

 

$

14,959,001

 

 

10



 

SL GREEN REALTY CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

 

 

 

Three Months Ended
March 31,

 

 

 

2014

 

2013

 

FFO Reconciliation:

 

 

 

 

 

Net income attributable to SL Green common stockholders

 

$

146,090

 

$

18,909

 

Add:

 

 

 

 

 

Depreciation and amortization

 

89,379

 

78,623

 

Discontinued operations depreciation adjustments

 

433

 

2,067

 

Joint venture depreciation and noncontrolling interest adjustments

 

12,988

 

7,527

 

Net income attributable to noncontrolling interests

 

6,219

 

3,456

 

Less:

 

 

 

 

 

Gain on sale of discontinued operations

 

 

1,113

 

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

 

104,640

 

 

Depreciation on non-rental real estate assets

 

514

 

245

 

Funds From Operations

 

$

149,955

 

$

109,224

 

 

 

 

Consolidated Properties

 

SL Green’s share of
Unconsolidated Joint Ventures

 

Combined

 

 

 

Three Months Ended
March 31,

 

Three Months Ended
March 31,

 

Three Months Ended
March 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

Operating income and Same-store NOI Reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before equity in net income (loss) from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, gain (loss) on sale of investment in marketable securities, purchase price fair value adjustment and gain (loss) on early extinguishment of debt

 

$

45,135

 

$

41,925

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net income (loss) from unconsolidated joint ventures

 

6,128

 

5,073

 

6,128

 

5,073

 

 

 

 

 

Depreciation and amortization

 

89,379

 

78,623

 

20,157

 

16,011

 

 

 

 

 

Interest expense, net of interest income

 

80,180

 

80,775

 

18,703

 

19,542

 

 

 

 

 

Amortization of deferred financing costs

 

3,868

 

4,463

 

2,626

 

2,362

 

 

 

 

 

Gain (loss) on early extinguishment of debt

 

3

 

(18,513

)

 

 

 

 

 

 

Operating income

 

$

224,693

 

$

192,346

 

$

47,614

 

$

42,988

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, general & administrative expense

 

23,257

 

21,067

 

 

 

 

 

 

 

Net operating income from discontinued operations

 

1,798

 

3,422

 

 

 

 

 

 

 

Loan loss and other investment reserves, net of recoveries

 

 

 

 

 

 

 

 

 

Transaction related costs, net of recoveries

 

2,474

 

1,358

 

73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-building revenue

 

(64,503

)

(53,144

)

(3,806

)

(3,674

)

 

 

 

 

Equity in net (income) loss from unconsolidated joint ventures

 

(6,128

)

(5,073

)

 

 

 

 

 

 

(Gain) loss on early extinguishment of debt

 

(3

)

18,513

 

1,595

 

 

 

 

 

 

Net operating income (NOI)

 

181,588

 

178,489

 

45,476

 

39,314

 

$

227,064

 

$

217,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI from discontinued operations

 

(1,798

)

(3,422

)

 

 

(1,798

)

(3,422

)

NOI from other properties/affiliates

 

(9,481

)

(3,277

)

(9,340

)

(8,672

)

(18,821

)

(11,949

)

Same-Store NOI

 

$

170,309

 

$

171,790

 

$

36,136

 

$

30,642

 

$

206,445

 

$

202,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ground lease straight-line adjustment

 

1,433

 

1,910

 

 

 

1,433

 

1,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line and free rent

 

(13,341

)

(14,055

)

(3,670

)

(1,759

)

(17,011

)

(15,814

)

Rental income — FAS 141

 

(4,317

)

(3,863

)

(354

)

(336

)

(4,671

)

(4,199

)

Same-store cash NOI

 

$

154,084

 

$

155,782

 

$

32,112

 

$

28,547

 

$

186,196

 

$

184,329

 

 

11



 

SL GREEN REALTY CORP.

SELECTED OPERATING DATA-UNAUDITED

 

 

 

March 31,

 

 

 

2014

 

2013

 

Manhattan Operating Data: (1)

 

 

 

 

 

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

 

23,771

 

24,282

 

Portfolio percentage leased at end of period

 

94.3

%

93.7

%

Same-Store percentage leased at end of period

 

94.3

%

93.7

%

Number of properties in operation

 

33

 

36

 

 

 

 

 

 

 

Office square feet where leases commenced during quarter (rentable)

 

492,645

 

536,101

 

Average mark-to-market percentage-office

 

11.1

%

4.3

%

Average starting cash rent per rentable square foot-office

 

$

60.15

 

$

57.06

 

 


(1)  Includes wholly-owned and joint venture properties.

 

The following table reconciles estimated earnings per share (diluted) to FFO per share (diluted) for the year ending December 31, 2014.

 

 

 

Year Ended
December 31,

 

 

 

2014

 

2014

 

Net income per share attributable to SL Green stockholders

 

$

2.50

 

$

2.56

 

Add:

 

 

 

 

 

Depreciation and amortization

 

3.82

 

3.82

 

Unconsolidated joint ventures depreciation and noncontrolling interests adjustments

 

0.46

 

0.46

 

Net income attributable to noncontrolling interests

 

0.19

 

0.19

 

Less:

 

 

 

 

 

Gain (loss) on sale of discontinued operations

 

0.00

 

0.00

 

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

 

1.05

 

1.05

 

Purchase price fair value adjustment

 

0.00

 

0.00

 

Depreciable real estate, net of recoveries

 

0.00

 

0.00

 

Depreciation and amortization on non-real estate assets

 

0.02

 

0.02

 

Funds from Operations per share

 

$

5.90

 

$

5.96

 

 

12