Press Release Details

SL Green Realty Corp. Reports Fourth Quarter FFO of $0.76 Per Share and 2001 FFO of $3.02 Per Share NEW YORK--(BUSINESS WIRE)--Feb. 5, 2002--SL Green Realty Corp. (NYSE:SLG - news)

Fourth Quarter Highlights

FFO increased to $0.76 per share (diluted) versus $0.70 in the prior year, a 9% increase after a $1.1 million ($0.03 per share) technology writeoff 6% same store portfolio cash NOI growth Completed 1250 Broadway joint venture with SITQ Immobilier Replaced and upsized a secured credit facility to $75 million Announced 14.2% increase in annual common dividend Annual 2001 Highlights

FFO increased to $3.02 per share (diluted) versus $2.67 in the prior year, a 13% increase 15% same store portfolio cash NOI growth Operating earnings increased to $1.79 per share (diluted) versus $1.46 in the prior year, a 23% increase Funds available for distribution (FAD) before 2GCT gain ($0.17 per share) increased to $2.33 per share (diluted) versus $1.88 in the prior year, a 24% increase. Financial Results

SL Green Realty Corp. (NYSE:SLG - news) reported a 9% increase in operating results for the three months ended December 31, 2001. During this period funds from operations (FFO) before minority interest totaled $26.3 million, or $0.76 per share (diluted), compared to $20.1 million, or $0.70 per share for the same quarter in 2000.

Full year results were also strong, reflecting a 13% FFO increase from 2000. FFO for the year ended December 31, 2001 totaled $94.8 million or $3.02 per share (diluted) compared to $75.6 million or $2.67 per share in the previous year. This growth was mainly attributable to strong full-year same store cash NOI growth of 15%.

Operating earnings for the fourth quarter 2001 totaled $13.8 million, or $0.45 per share (diluted), an increase of 15% as compared to the same quarter in 2000 as operating earnings totaled $9.7 million, or $0.39 per share (diluted). Operating earnings for the full year 2001 totaled $49.3 million, or $1.79 per share (diluted), an increase of 23% as compared to $36.1 million, or $1.46 per share (diluted) for the full year 2000.

Total quarterly revenues increased 7% in the fourth quarter to $62.3 million compared to $58.2 million last year. The $4.1 million growth in revenue resulted from the following items:

$1.2 million increase from 2001 same store portfolio $2.7 million increase from investment and other income $5.9 million increase from 2001 acquisitions $5.8 million decrease from properties sold Same store cash NOI increased $1.4 million, or 6%, to $25.7 million over the same period in the prior year. Cash NOI margins before ground rent improved year over year from 60.7% to 62.3%, driven primarily by a $1.8 million net increase in cash revenue due to:

$1.5 million increase from a 45% increase in replacement rents over previously fully-escalated rents $0.5 million increase from rent steps, reduced free and straight-line rent $0.8 million increase in escalation and reimbursement income primarily from increased electric recoveries $0.8 million decrease from increased reserves and vacancies $0.2 million decrease in signage and other income The increase in revenues were partially offset by higher operating expenses ($0.1 million) and an increase in real estate taxes due to higher assessed values at several properties ($0.2 million).

The Company's EBITDA increased $4.3 million, resulting in increased margins before ground rent of 72.1% compared to 66.0% for the same period last year and after ground rent margin improved to 66.5% from 60.2% in the corresponding period. Margin improvement was driven by each of the Company's real estate investment themes:

$2.4 million increase from GAAP NOI; $3.4 million increase from 2001 acquisitions $1.1 million increase from same store portfolio $1.7 million increase from income in unconsolidated joint ventures $3.7 million decrease from properties sold or contributed to a joint venture $1.7 million increase from investment and preferred income and, $1.0 million increase in other income from acquisition and asset management fees These increases in EBITDA were partially offset by increased MG&A ($1.0 million) primarily due to higher year end compensation and severance costs.

FFO improved $6.2 million primarily as a result of:

$4.3 million increase in EBITDA $1.2 million increase from unconsolidated joint ventures $0.8 million increase from reduced interest expense The $0.8 million decrease in interest expense is primarily associated with: (i) lower interest rates ($0.8 million), (ii) reduced debt levels from the Company's third quarter equity offering ($ 0.6 million) and (iii) reduced loan balances due to previous disposition activity ($1.1 million). These reductions were partially offset by 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).

During the year ended December 31, 2001, the Company recorded extraordinary losses of $0.4 million due to the early extinguishments of debt associated with refinancing activity.

At the end of the quarter, consolidated debt totaled $504.8 million, reflecting a debt to market capitalization ratio of 31.4%.

New Real Estate Activity

1250 Broadway Joint Venture

On November 1, 2001 the Company entered into a joint venture on 1250 Broadway with SITQ Immobilier.

Under the terms of the joint venture, SITQ Immobilier purchased a 45% interest in the property, yielding proceeds of approximately $22.0 million, inclusive of closing costs and reimbursements and subject to $85.0 million of first mortgage financing from Salomon Brothers. The transaction enabled the Company to bring in a long-term partner in a core asset while freeing up capital for additional high growth opportunities and enhancing its yield on investment through fees earned in management, leasing and redevelopment of the asset.

New Structured Finance Activity

The Company originated $30.0 million of structured finance investments at an initial yield of 13.4% in October 2001.

As of December 31, 2001 the par value of the Company's mortgage and preferred equity balances totaled $188.4 million. The weighted balance outstanding over the quarter is $177.2 million. During the fourth quarter 2001 the weighted average yield was 12.86%. The quarter end run rate is 12.72%.

Other

Dividend Increase

During December, the Company declared a dividend distribution of $0.4425 per common share for the quarter ending December 31, 2001, an increase of $0.22 or 14.2% per common share on an annualized basis. This distribution reflects the regular quarterly dividend, which is the equivalent of an annualized distribution of $1.77 per common share.

As of December 31, 2001, the Company's portfolio consists of interests in 25 properties, aggregating 10.0 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 Manhattan office properties. The Company is the only publicly held REIT which specializes exclusively in this niche.

Financial Tables attached.

To receive SL Green's latest news release and other corporate documents, including the Fourth 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 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 growth, interest rates and capital market conditions. For further information, please refer to the Company's filings with the Securities and Exchange Commission.

SL GREEN REALTY CORP. STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data)

Three Months Ended Twelve Months Ended December 31, December 31, 2001 2000 2001 2000 ---------------------- ---------------------- Revenue: Rental revenue, net $ 48,284 $ 48,051 $ 204,662 $ 189,048 Escalations & reimbursement revenues 6,872 5,791 31,339 24,732 Signage rent 568 544 1,522 2,137 Investment income 5,113 3,367 17,369 13,271 Other income 1,455 442 2,793 1,135 ---------------------- ---------------------- Total revenues 62,292 58,195 257,685 230,323 ---------------------- ---------------------- Expenses: Operating expenses 13,159 12,751 58,141 54,644 Ground rent 3,159 3,155 12,579 12,660 Interest 9,384 10,188 46,238 40,431 Depreciation and amortization 10,380 7,992 38,336 32,511 Real estate taxes 7,373 7,163 30,963 28,850 Marketing, general and administrative 4,044 3,043 15,374 11,561 ---------------------- ---------------------- Total expenses 47,499 44,292 201,631 180,657 ---------------------- ---------------------- Income before minority interests, preferred stock dividends, gain on sales, extraordinary item, service corporation and joint venture income 14,793 13,903 56,054 49,666 Equity in net income (loss) from affiliates (71) (231) (1,054) 378 Equity in net income from unconsolidated joint ventures 2,587 899 8,607 3,108 ---------------------- ---------------------- 17,309 14,571 63,607 53,152

Minority interests (1,104) (2,467) (4,600) (7,430) Extraordinary losses from early extinguishment of debt - (491) (430) (921) Cumulative effect of accounting change - - (532) - Gain on sale of rental properties/equity investments (207) 16,770 4,956 41,416 Preferred stock dividends and accretion (2,414) (2,407) (9,658) (9,626) ---------------------- ---------------------- Net income available to common shareholders $ 13,584 $ 25,976 $ 53,343 $ 76,591 ====================== ====================== Basic earnings per share $ 0.45 $ 1.06 $ 1.98 $ 3.14 Diluted earnings per share $ 0.45 $ 0.96 $ 1.94 $ 2.93

Funds From Operations (FFO) FFO per share (Basic) $ 0.82 $ 0.75 $ 3.24 $ 2.83 FFO per share (Diluted) $ 0.76 $ 0.70 $ 3.02 $ 2.67 FFO Calculation: Income before minority interests, extraordinary items, preferred stock dividends and gains on sales $ 17,309 $ 14,571 $ 63,607 $ 53,152

Less: ----- Preferred stock dividend (2,300) (2,300) (9,200) (9,200) Amortization of deferred financing costs and depreciation of non-real estate assets (1,102) (998) (4,474) (4,102)

Add: ---- Joint venture FFO adjustment 1,996 788 6,575 3,258 Depreciation and amortization 10,380 7,992 38,336 32,511 ---------------------- ---------------------- FFO - BASIC 26,283 20,053 94,844 75,619 Add: Preferred stock dividends 2,300 2,300 9,200 9,200 ---------------------- ---------------------- FFO - DILUTED $ 28,583 $ 22,353 $ 104,044 $ 84,819 ====================== ======================

Basic ownership interests Weighted average REIT common shares 29,971 24,505 26,993 24,373 Weighted average partnership units held by minority interest 2,273 2,308 2,283 2,365 ---------------------- ---------------------- Basic weighted average shares and units outstanding 32,244 26,813 29,276 26,738 ====================== ====================== Diluted ownership interest Weighted average REIT common and common share equivalent share 30,540 24,992 27,525 24,754 Weighted average partnership units held by minority interests 2,273 2,308 2,283 2,365 Common share equivalents for preferred stock 4,699 4,699 4,699 4,699 ---------------------- ---------------------- Diluted weighted average equivalent shares and units outstanding 37,512 31,999 34,507 31,818 ====================== ======================

SL Green Realty Corp. Consolidated Balance Sheets (Amounts in thousands, except per share data)

December 31, December 31, 2001 2000 ---------------- ---------------- Assets Commercial real estate properties, at cost: Land and land interests $ 138,337 $ 125,572 Buildings and improvements 689,094 618,637 Building leasehold 144,736 139,393 Property under capital lease 12,208 12,208 ---------------- ---------------- 984,375 895,810

Less accumulated depreciation (100,776) (78,432) ---------------- ---------------- 883,599 817,378

Properties held for sale - 10,895 Cash and cash equivalents 13,193 10,793 Restricted cash 38,424 86,823 Tenant and other receivables, net of allowance for doubtful accounts of $3,629 and $1,723 reserve in 2001 and 2000, 8,793 7,580 respectively Related party receivables 3,498 917 Deferred rents receivable net of allowance for doubtful accounts of $5,264 and $4,860 in 2001 and 2000, respectively 51,855 45,816

Investment in and advances to affiliates 8,211 6,373 Investment in unconsolidated joint ventures 123,469 65,031 Mortgage loans and preferred investments 186,511 51,293 Derivative instruments-fair value 3,576 - Deferred costs, net 34,901 40,113

Other assets 16,996 18,142 ---------- -------------

Total assets $ 1,373,026 $ 1,161,154 ================ ================

Liabilities and Stockholders' Equity Mortgage notes payable $ 409,900 $ 414,342 Revolving credit facility 94,931 46,374 Derivative instruments-fair value 3,205 - Accrued interest payable 1,875 2,349 Accounts payable and accrued expenses 24,657 27,651 Deferred revenue 1,381 1,112 Capitalized lease obligations 15,574 15,303 Deferred land lease payable 14,086 13,158 Dividend and distributions payable 16,570 12,678 Security deposits 18,829 19,014 ---------------- ---------------- Total liabilities 601,008 551,981 ---------------- ----------------

Minority interests 46,430 43,326

8%Preferred Income Equity Redeemable Stock $0.01 par value, $25.00 mandatory liquidation preference 25,000 shares authorized, 4,600 outstanding in 2001 and 2000 111,231 110,774

Stockholders' Equity Common stock, $.01 par value 100,000 shares authorized, 29,978 and 24,516 issued and outstanding in 2001 and 2000, respectively 300 246 Additional paid - in capital 583,350 428,698 Deferred compensation plan (7,515) (5,037) Accumulated other comprehensive loss (1,462) - Distributions in excess of earnings 39,684 31,166 ---------------- ---------------- Total stockholders' equity 614,357 455,073 ---------------- ----------------

Total liabilities and stockholders' equity $ 1,373,026 $ 1,161,154 ================ ================

SL GREEN REALTY CORP. SELECTED OPERATING DATA-UNAUDITED

December 31, 2001 December 31, 2000

Operating Data:

Net rentable area at end of period (in 000's)(1) 10,036 8,655 Portfolio occupancy percentage at end of period 97.7% 98.1% Same Store occupancy percentage at end of period 97.4% 98.4% Number of properties in operation 25 23

(1) Includes wholly-owned and minority owned properties.