Press Release Details

Fourth Quarter Highlights

• Increased full year 2006 FFO to $4.61 per share (diluted), an increase of 10.8% over the prior year.
• Increased fourth quarter FFO to $1.18 per share (diluted) from $1.02 during the fourth quarter of 2005, an increase of 15.7%.
• Net income available to common stockholders in the fourth quarter of 2006 totaled $0.62 per share (diluted) and $4.38 per share for the full year 2006.
• Increased quarterly common stock dividend by 16.7% to $0.70 per share.
• Obtained stockholder approval to acquire Reckson Associates Realty Corp. (NYSE: RA) for approximately $6.0 billion and closed on January 25, 2007. Simultaneously sold approximately $2.0 billion of Reckson assets. In connection with this transaction, we issued approximately 9.0 million common shares, closed on a three-year $500.0 million term loan, $298.0 million of new mortgage financing and assumed $1.3 billion of Reckson's unsecured notes.
• Increased the capacity on our unsecured line of credit by $300.0 million to $800.0 million.
• Increased average office starting rents by 28.7% over previously fully escalated rents reflecting continued growth in rents for office leases signed during the fourth quarter.
• Signed 38 office leases totaling 452,497 square feet during the fourth quarter.
• Finished the quarter at 97.0% occupancy, up from 96.1% at the end of the third quarter.
• Recognized combined same-store GAAP NOI growth of 16.4% during the fourth quarter.
• Recognized approximately $8.8 million of incentive fees in connection with the resolution of the joint ventures with Morgan Stanley, including the venture that owned 485 Lexington Avenue.
• Issued 3,998,100 shares of common stock in November 2006 raising net proceeds of approximately $532.1 million.
• Sold a 49.9% partnership interest in 521 Fifth Avenue, valuing the property at approximately $240.0 million and recognized gain of approximately $3.5 million.
• Invested $109.5 million in 800 Third Avenue through loans secured by up to 47% of the interests in the property's ownership, with an option to convert the loan to an equity interest.
• Originated $97.1 million of structured finance investments with an initial yield of 9.23%.
• Received $11.5 million in dividends and fees from our investment in, and management arrangements with, Gramercy Capital Corp. (NYSE: GKK), or Gramercy, including a $3.0 million incentive fee earned during the quarter.

Summary
New York, NY, January 29, 2007 - SL Green Realty Corp. (NYSE: SLG) today reported funds from operations available to common stockholders, or FFO, of $60.5 million, or $1.18 per share, for the fourth quarter ended December 31, 2006, a 15.7% increase over the same quarter in 2005. The Company also reported FFO of $4.61 per share for the year ended December 31, 2006, a 10.8% increase over the same period in 2005, which was $4.16 per share.

Net income available to common stockholders totaled $29.4 million, or $0.62 per share, for the fourth quarter and $200.8 million, or $4.38 per share, for the year ended December 31, 2006, an increase of $8.5 million and $63.3 million over the respective periods in 2005. Full-year 2006 results include gains on sale of $2.12 per share compared to gains on sale of $1.04 per share in 2005.

All per share amounts are presented on a diluted basis.

Operating and Leasing Activity
For the fourth quarter of 2006, the Company reported revenues and EBITDA of $159.5 million and $88.1 million, respectively, increases of $49.4 million, or 44.9%, and $25.8 million, or 41.4%, respectively, over the same period in 2005, largely due to strong leasing activity at 461 Fifth Avenue, 673 First Avenue and 521 Fifth Avenue as well as 2006 acquisitions, including 521 Fifth Avenue (March 2006), 609 Fifth Avenue (June 2006) and an investment in 717 Fifth Avenue (September 2006). Same-store GAAP NOI on a combined basis increased by 16.4% for the fourth quarter when compared to the same quarter in 2005, with the wholly-owned properties increasing 22.3% to $52.1 million during the fourth quarter and the joint venture properties increasing 5.5% to $24.7 million.

Average starting office rents of $61.99 per rentable square foot for the fourth quarter represented a 28.7% increase over the previously fully escalated rents.

Occupancy for the portfolio increased from 96.1% at September 30, 2006 to 97.0% at December 31, 2006. During the quarter, the Company signed 47 leases totaling 458,376 square feet, with 38 leases and 452,497 square feet representing office leases. For the year, the Company leased approximately 2.1 million square feet.

Significant leasing activities during the fourth quarter included:

• Additional expansion with Morgan Stanley and Co., Inc. for approximately 110,948 square feet at 1221 Avenue of the Americas.
• Expansion with New York Presbyterian Hospital for approximately 65,096 square feet at 673 First Avenue.
• New lease with Novantas, LLC for approximately 41,147 square feet at 485 Lexington Avenue.
• New lease with Clarins USA, Inc. for approximately 37,925 square feet at One Park Avenue.

Real Estate Investment Activity
During the fourth quarter of 2006, the Company announced new investments totaling approximately $6.9 billion.

Investment activity announced during the fourth quarter included:

• In January 2007, the Company acquired Reckson Associates Realty Corp. for approximately $6.0 billion. The transaction includes the acquisition of thirty properties encompassing approximately 9.2 million square feet, of which 5 properties encompassing approximately 4.2 million square feet are located in Manhattan. Simultaneously, the Company also sold approximately $2.0 billion of the Reckson assets to an asset purchasing venture which includes certain members of Reckson's senior management.
  
  
• In December 2006, the Company invested approximately $109.5 million in 800 Third Avenue through the origination of a loan secured by up to 47% of the interests in the property's ownership, with an option to convert the loan to an equity interest. Certain existing members have the right to re-acquire approximately 4% of the property's equity. The investment values the midtown Manhattan office property at $285.0 million. SL Green will control a minority interest in the property in a joint venture with the remaining existing owners. 800 Third Avenue is a 40-story Class A office building located in the Grand Central submarket. Joseph P. Day Realty Corp. will continue to operate and lease the property in partnership with SL Green.
  
  
• In December 2006, the Company purchased interests in 485 Lexington Avenue from its partners, The City Investment Fund (CIF) and The Witkoff Group, resulting in majority ownership and control of the property. As a result of the acquisition of interests from CIF and The Witkoff Group, SL Green's ownership interest in 485 Lexington Avenue is 87%. The transaction values the property at $578 million compared to $225 million or $244 per square foot when first acquired in 2004. In addition, SL Green originated a loan secured by CIF's remaining ownership stake. SL Green also acquired an option from CIF to purchase its remaining equity interest.
  
  
• During the fourth quarter of 2006, SL Green sold to CIF a 49.9% interest in the entity that owns the leasehold interest in 521 Fifth Avenue. The sale of the interest in the property, which encompasses approximately 460,000 square feet, valued the property at $240.0 million. This sale generated a gain of approximately $3.5 million, or $0.07 per share.

Financing and Capital Activity
In November 2006, the Company sold 3,998,100 shares of its common stock for net proceeds, after deducting underwriting discounts, commissions and transaction expenses, of approximately $532.1 million.

In January 2007, the Company exercised the accordian feature in their unsecured revolving line of credit. As a result, the capacity under the unsecured revolver increased by $300.0 million to $800.0 million.

In January 2007, the Company issued approximately 9.0 million common shares, closed on $298.0 million of new mortgage financing, assumed approximately $238.6 million of mortgage debt, approximately $967.8 million of unsecured notes and approximately $287.5 million of convertible debt in connection with the acquisition of Reckson.

Structured Finance Activity
The Company's structured finance investments totaled $445.0 million on December 31, 2006, an increase of approximately $97.5 million over the balance at September 30, 2006. The structured finance investments currently have a weighted average maturity of 7.4 years. The weighted average yield for the quarter ended December 31, 2006 was 10.45%, compared to a yield of 10.32% for the quarter ended September 30, 2006.

During the fourth quarter 2006, the Company originated $97.1 million of structured finance investments with an initial yield of 9.23%. There were no redemptions during the quarter.

Investment In Gramercy Capital Corp.
At December 31, 2006, the book value of the Company's investment in Gramercy totaled $118.6 million. Fees earned from various arrangements between the Company and Gramercy totaled approximately $7.9 million for the quarter ended December 31, 2006, including an incentive fee of $3.0 million earned as a result of Gramercy's FFO (as defined in Gramercy's management agreement) exceeding the 9.5% annual return on equity performance threshold. For the year ended December 31, 2006, the Company earned $24.3 million in fees from Gramercy. The Company's share of FFO generated from its investment in Gramercy totaled approximately $5.1 million and $16.0 million for the quarter and year ended December 31, 2006, respectively, compared to $3.2 million and $9.1 million for the same periods in the prior year.

The Company's marketing, general and administrative, or MG&A, expenses include the consolidation of the expenses of its subsidiary GKK Manager LLC, the entity which manages and advises Gramercy. For the quarter ended December 31, 2006, the Company's MG&A includes approximately $1.9 million of costs associated with Gramercy as well as approximately $10.0 million of additional incentive compensation expense. The Company's board of directors elected to convey this additional incentive compensation to various senior executives in recognition of their extraordinary efforts in 2006, including the approval of the Reckson merger, as well as, the Company's sector leading performance.

Dividends
During the fourth quarter of 2006, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:

• $0.70 per share of common stock. Dividends were paid on January 12, 2007 to stockholders of record on the close of business on December 29, 2006.
• $0.4766 and $0.4922 per share on the Company's Series C and D Preferred Stock, respectively, for the period October 15, 2006 through and including January 14, 2007. Distributions were made on January 12, 2007 to stockholders of record on the close of business on December 29, 2006. Distributions reflect regular quarterly distributions, which are the equivalent of an annualized distribution of $1.90625 and $1.96875, respectively.

Conference Call and Audio Webcast
The Company's executive management team, led by Marc Holliday, President and Chief Executive Officer, will host a conference call and audio web cast on Tuesday, January 30, 2007 at 2:00 p.m. ET to discuss fourth quarter and full year 2006 financial results. The Supplemental Package will be available prior to the quarterly conference call on the Company's web site.

The live conference will be webast in listen-only mode on the Company's web site at www.slgreen.com and on Thomson's StreetEvents Network. The conference may also be accessed by dialing (866) 203-3436 Domestic or (617) 213-8849 International, using pass code SL Green.

A replay of the call will be available through Tuesday, February 06, 2007 by dialing (888) 286-8010 Domestic or (617) 801-6888 International, using pass code 44713455.

Supplemental Information
The Supplemental Package outlining fourth quarter 2006 financial results will be available prior to the quarterly conference call on the Company's website.

Company Profile
SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages a portfolio of Manhattan office properties. The Company is the only publicly held REIT that specializes exclusively in this niche. As of December 31, 2006, the Company owned 28 office properties totaling 19.0 million square feet. The Company's retail space ownership totals 296,000 square feet at eight properties.

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 212-216-1601.

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 (net income) can be found on pages 7 and 9 of this release and in the Company's Supplemental Package.

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, 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.