Press Release Details

Financial Results

New York, NY, October 21, 2002 - SL Green Realty Corp. (NYSE:SLG) reported improved operating results for the three months ended September 30, 2002. During the period, funds from operations (FFO) before minority interests totaled $30.2 million, or $0.86 per share (diluted), compared to $23.6 million, or $0.72 per share (diluted), for the same quarter in 2001, a 19.4% increase over the prior year. The 2001 quarterly results included a $1.0 million charge, or $0.03 per share, for a one-time contribution to the Twin Towers Fund. Additionally, in accordance with new accounting guidelines, the 2001 results have been reduced by $0.01 per share due to an increase in interest expense related to the reclassification of a $0.3 million charge from the early extinguishment of debt. Excluding these charges, 2001 third quarter earnings would have been $0.76 per share (diluted), reducing the 2002 FFO increase to 13.1%. The 2002 growth was primarily attributable to increased contributions from the Company's 1515 Broadway joint venture, structured finance programs and lower interest rates.

Nine month results were also strong, reflecting an 8.9% FFO increase over 2001 as FFO before minority interests totaled $85.6 million or $2.45 per share (diluted), compared to $68.6 million or $2.25 per share (diluted) for the same period in the previous year. The growth is also attributable to increased contributions from the Company's joint venture and structured finance programs and lower interest rates.

For the quarter, net income available to common shareholders, adjusted for discontinued operations, property sales and the cumulative effect of an accounting change, increased 33.3% to $19.8 million, or $0.52 per share (diluted), compared to $14.9 million, or $0.39 per share (diluted), for the same period in the previous year. For the nine months ended September 30, 2002, adjusted net income increased 29.6% to $56.5 million, or $1.49 per share (diluted), as compared to $43.6 million, or $1.27 per share (diluted), for the same period in the previous year.

Consolidated Results

Total quarterly revenues increased in the third quarter to $63.2 million (5.7%) during 2002 compared to $59.8 million during 2001. The $3.4 million growth in revenue resulted primarily from:

• Investment and preferred equity income ($1.9 million)
• 2002 same store rental income ($0.8 million)
• Other income, primarily asset management fees ($0.6 million)

The Company's third quarter EBITDA increased $5.6 million resulting in increased margins before ground rent of 74.9% in 2002 compared to 65.9% for the same period last year. After ground rent, margins improved to 69.3% in 2002 from 60.3% in the corresponding prior period. This improvement in EBITDA margins were primarily due to the increased net income from joint ventures and the increase in structured finance income. The components of EBITDA changed as follows:

• $2.3 million increase in GAAP net operating income (NOI)
• $1.9 million increase in structured finance investment income
• $1.0 million decrease in MG&A expenses, primarily due to the $1.0 million contribution to the Twin Towers Fund in 2001
• $0.6 million increase in non-operating other income primarily due to on-going joint venture asset management fees
• $0.2 million decrease in lease buyout income

The $2.3 million improvement in GAAP NOI is comprised of the following:

• $3.0 million increase from joint venture net income
• $0.3 million increase from same store portfolio
• $0.2 million decrease to the partial sale of 110 East 42nd Street
• $0.6 million decrease from non-same store property results, including 50 West 23rd Street and e.Emerge

FFO for the quarter ended September 30, 2002 improved $6.6 million primarily as a result of an increase in EBITDA ($5.6 million), increased FFO adjustment from joint ventures and discontinued operations ($0.7 million) and lower interest costs ($0.3 million).

Lower interest costs ($0.3 million) were associated with: lower interest rates on floating rate debt ($0.9 million), reclassification of 2001 debt extinguishment ($0.3 million) and the proceeds from the Company's July 2001 common stock offering ($0.2 million) partially offset by higher average debt levels due to net acquisition and new structured finance investment activity ($0.8 million), annual loan amortizations and refinancings ($0.2 million) and increased costs for capital ($0.1 million).

The Company's 2001 results exclude gains on the sale of properties that totaled $0.6 million and $5.2 million for the three and nine months, respectively.

At the end of the quarter, consolidated debt totaled $548.7 million, reflecting a debt to market capitalization ratio of 33.8%.

Same Store Results

During the third quarter, same store cash NOI remained flat at $24.6 million. Cash NOI margins before ground rent decreased year over year from 57.9% to 56.4%. The lower cash NOI was driven primarily by a $1.1 million (4.9%) increase in operating costs due to:

• $0.5 million (8.1%) increase in real estate taxes
• $0.4 million (51.1%) increase in management, professional and advertising costs
• $0.2 million (24.7%) increase in security costs
• $0.1 million (2.7%) decrease in utility costs

The increase in operating costs were partially offset by $1.1 million (2.0%) increase in cash revenue primarily due to:

• $1.4 million increase from replacement rents which were 39% higher than previously fully-escalated rents, including early renewals and contractual rent steps
• $0.4 million decrease from lower occupancy in 2002 (96.9%) compared to 2001 (97.7%)

Approximately 86.0% of the quarterly electric expense was recovered through the utility clause in the tenants' leases.

Leasing Activity

During the quarter, the Company signed 50 office leases totaling approximately 354,000 rentable square feet with starting office cash rents averaging $33.23 per square foot, a 44.4% increase over previously escalated cash rents averaging $23.01 per square foot. Tenant concessions averaged 1.4 months of free rent and an allowance for tenant improvements of $16.49 per square foot. This leasing activity includes early renewals for 10 office leases totaling approximately 142,000 rentable square feet.

Property Activity

Due to the Company's intent to sell the property located at 50 West 23rd Street, the property's assets and liabilities have been classified to assets and liabilities held for sale on the balance sheet at September 30, 2002. As a result, the Company's operating results have been restated to classify all of the property's income to discontinued operations for all periods presented.

Structured Finance

At September 30, 2002, the structured finance portfolio, including preferred equity interests, remained substantially unchanged from the previous quarter totaling $194.7 million with a current yield of 12.40%, after seller financing.

Other

As of September 30, 2002, the Company's portfolio consists of interests in 25 properties, aggregating 11.5 million square feet.

SL Green Realty Corp. is a self-administered and self-managed real estate investment trust ("REIT") that acquires, owns and manages commercial office properties in Manhattan. The Company is the only publicly held REIT which exclusively specializes in this niche.

The company will host a conference call and audio web cast on Tuesday, October 22 at 2:00 p.m. ET to discuss the financial results. The conference call can be accessed by dialing (913) 981-4910. A replay of the call will be available through October 29, 2002, by dialing (719) 457-0820 or (888) 203-1112, confirmation code 163015. The call will be simultaneously broadcast via the Internet and individuals who wish to access the conference call should go to www.slgreen.com to log onto the call or to listen to a replay following the call.

Financial Tables attached

To receive SL Green's latest news release and other corporate documents, including the Third Quarter Supplemental Data, via FAX at no cost, please contact the Investor Relations office at 212-216-1601. All releases and supplemental data can also be downloaded directly from the SL Green website at: www.slgreen.com.

This press release contains certain" forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward looking statements are based on reasonable assumptions, actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking statements in this release include general economic and business (particularly real estate) conditions, the impact of terrorist attacks, the business opportunities that may be presented to and pursued by the Company, changes in laws or regulations (including changes to laws governing the taxation of REITs),risks of acquisitions, availability of capital (debt and equity), increases in financing and other costs, competition, supply and demand for properties in our current and any proposed market areas, tenants' ability to pay rent at current or increased levels, accounting principles, policies and guidelines applicable to REITs, environmental risks, tenant bankruptcies and defaults, the availability and cost of comprehensive insurance, including coverage for terrorist acts, and other factors, many of which are beyond the control of the Company. We undertake no obligation to publicly update or revise any of the information in this press release that becomes untrue. For further information on factors that could impact the Company, please refer to the Company's filings with the Securities and Exchange Commission.