Press Release Details

• 9% FFO increase, $0.85 per share (diluted) versus $0.78 (diluted) in the prior year
• Completed acquisitions of The News Building and condominium interests in 125 Broad Street for $357.0 million
• Sold 50 West 23rd Street for $66.0 million, realizing a gain of $19.2 million
• Originated $23.0 million of structured finance investments
• Renewed $300.0 million unsecured revolving credit facility
• Financed 673 First Avenue with a $35.0 million ten-year fixed rate mortgage at 5.67%

Financial Results

New York, NY, April 22, 2003 – SL Green Realty Corp. (NYSE:SLG) reported a 9% increase in operating results for the three months ended March 31, 2003. During this period, funds from operations (FFO) before minority interest totaled $30.2 million, or $0.85 per share diluted, compared to $27.0 million, or $0.78 per share (diluted), for the same quarter in 2002. This growth was mainly attributable to property acquisitions and increased contributions from the Company’s unconsolidated joint ventures.

Net income available for common shareholders for the first quarter 2003 totaled $33.9 million, or $1.01 per share (diluted), an increase of 102% as compared to the same quarter in 2002 when net income totaled $15.2 million, or $0.50 per share (diluted). The 2003 results include a $0.50 per share gain on sale of 50 West 23rd Street, which had been previously classified as a discontinued operation. Excluding the gain, net income available to common shareholders increased 2% to $0.51 per share.

Consolidated Results

Total quarterly revenues increased 16% in the first quarter to $68.7 million compared to $59.4 million last year. The $9.3 million growth in revenue primarily resulted from the following items:

• $5.1 million increase from 2003 acquisitions
• $3.3 million increase from the 2003 same-store portfolio
• $0.7 million increase in other income
• $0.5 million increase in non-same-store revenue
• $0.7 million decrease in preferred and investment income

The Company’s EBITDA increased $3.4 million to $39.3 million; however margins before ground rent decreased to 68.5% compared to 74.0% for the same period last year and after ground rent, margins decreased to 63.4% from 68.0% in the corresponding period. The reductions in margins are due to higher operating costs, primarily from insurance and seasonal fuel and steam costs, which have lower recovery rates. The following items primarily drove EBITDA improvement:

• $3.6 million increase from GAAP NOI;
  • $3.0 million increase from 2003 property acquisitions
  • $0.8 million increase in income from unconsolidated joint ventures
  • $0.4 million increase in non-same-store revenue
  • $0.9 million decrease from same-store portfolio

• $3.4 million increase in EBITDA
• $1.5 million increase in FFO adjustment from unconsolidated joint ventures
• $1.2 million decrease from higher interest expense
• $0.5 million decrease from increased amortization of finance costs written-off from the renewal of the unsecured line of credit

The $1.2 million increase in interest expense was primarily associated with higher average debt levels associated with new investment activity ($1.6 million) and the funding of ongoing capital projects and working capital requirements ($0.1 million). These increases were partially offset by reduced loan balances due to previous disposition activity ($0.5 million) and lower interest rates ($0.1 million).

The 2002 results have been restated to classify the operating results of 50 West 23rd Street and the Shelton, Connecticut property as income from discontinued operations. The Company has a contract of sale for the Shelton, Connecticut property which is scheduled to close during the second quarter 2003.

Same-Store Results

During the first quarter, same-store cash NOI decreased $0.2 million to $27.7 million, as compared to $27.9 million over the same prior year period. Cash NOI margins before ground rent decreased year over year from 62.3% to 57.0%. The decrease in cash NOI was driven by a $4.4 million (19%) increase in expenses. This increase was primarily due to:

• $2.1 million (30%) increase in real estate taxes
• $1.0 million (110%) increase in steam, heating and fuel costs
• $0.7 million (267%) increase in insurance costs
• $0.2 million (5%) increase in repairs, maintenance and cleaning expenses
• $0.3 million (33%) increase in management, professional and advertising costs

The increase in expenses was partially offset by a $4.3 million (8%) increase in cash revenue due to:

Approximately 93% of the quarterly electric expense was recovered through the utility clause in the tenants’ leases.

Leasing Activity

For the quarter, the Company signed 57 office leases totaling 316,733 rentable square feet with starting office cash rents averaging $36.87 per square foot, a 4.5% increase over previously escalated cash rents averaging $35.28 per square foot. Tenant concessions averaged 4.0 months of free rent with an allowance for tenant improvements of $19.62 per rentable square foot. This leasing activity includes early renewals for five office leases totaling 41,021 rentable square feet. Including retail and storage, the Company’s quarterly leasing activity totaled 63 signed leases for 331,304 rentable square feet.

New Property Activity

220 East 42nd Street

In February 2003, the Company completed the previously announced acquisition of the 1.1 million square foot office property located at 220 East 42nd Street known as The News Building, a property located in the Grand Central and United Nations marketplace, for a purchase price of $265.0 million. Prior to the acquisition, the Company held a $53.5 million preferred equity investment in the property that was redeemed in full at closing. In connection with the redemption, the Company earned a redemption premium totaling $4.4 million that is being accounted for as a reduction of basis adjusting the effective purchase price to $260.6 million. In connection with this acquisition, the Company assumed a $158.0 million mortgage, which matures in September 2004 and bears interest at LIBOR plus 1.76%, and issued approximately 376,000 units of limited partnership interest in the SL Green Operating Partnership having an aggregate value of approximately $11.3 million. The remaining $42.2 million of the purchase price was funded from borrowings under the Company’s unsecured credit facility. A portion of which was used to repay, at closing, a $28.5 million mezzanine loan on the property.

125 Broad Street

In March 2003, the Company acquired condominium interests in 125 Broad Street for approximately $92.0 million. The Company assumed the $76.6 million first mortgage currently encumbering this property. The mortgage matures in October 2007 and bears interest at 8.29%. In addition, the Company issued 52,000 units of limited partnership interests in the SL Green Operating Partnership having an aggregate value of approximately $1.6 million. The property is encumbered by a ground lease, which the condominium can acquire in the future at a fixed price.

50 West 23rd Street

In March 2003 the Company sold 50 West 23rd Street for $66.0 million or approximately $198 per square foot. The Company acquired the building at the time of its IPO in August of 1997, at a purchase price of approximately $36.6 million. Since that time, the building was upgraded and repositioned enabling the Company to realize a gain of approximately $19.2 million. The proceeds of the sale were used to pay off an existing $21.0 million first mortgage and substantially all of the balance was reinvested into the acquisitions of 220 East 42nd Street (The News Building) and 125 Broad Street to effectuate a partial 1031 tax-free exchange.

Structured Finance Activity

During January 2003, the Company originated a $15.0 million structured finance investment with an initial yield of 12.5%. Also in January 2003, the Company originated an $8.0 million preferred equity investment with an initial yield of 12.0%.

As of March 31, 2003, the par value of the Company’s structured finance and preferred equity investments totaled $114.5 million. The weighted balance outstanding over the quarter was $125.2 million. During the first quarter 2003 the weighted average yield was 12.4%. The quarter end run rate was 12.8%.

Financing Activity

Unsecured Line of Credit Renewal

In March 2003, the Company renewed its $300.0 million unsecured revolving credit facility with a group of 13 banks led by Fleet National Bank. The Company has an option to increase the capacity under this credit facility to $375.0 million. The unsecured revolving credit facility has a term of three years and bears interest at a spread ranging from 130 basis points to 170 basis points over LIBOR, based on the Company’s leverage ratio. As of the renewal date, the Company’s current borrowing rate decreased from 150 basis points over LIBOR to 140 basis points over LIBOR.

673 First Avenue Mortgage

In February 2003, the Company completed a $35.0 million first mortgage financing of the property located at 673 First Avenue. The mortgage bears interest at a fixed rate of 5.67% and matures in February 2013. The financing proceeds were used to reduce the Company’s outstanding balance on the Company’s unsecured line of credit.

Other

Today, SL Green’s portfolio consists of interests in 26 properties, aggregating 12.9 million square feet.

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

To receive SL Green’s latest news release and other corporate documents, including the First 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

During the April 23, 2003 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 (net income) can be found on pages six and eight of this release.

Forward-looking Information

This press release contains forward-looking information based upon the Company’s current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include the strength of the commercial office real estate markets in New York, competitive market conditions, unanticipated administrative costs, timing of leasing income, general and local economic conditions, interest rates, capital market conditions, 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 Company’s control. We undertake no obligation to publicly update or revise any of the forward-looking information. For further information, please refer to the Company’s filing with the Securities and Exchange Commission.