SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT ------------- Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: April 25, 2001 SL GREEN REALTY CORP. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Maryland (STATE OF INCORPORATION) 1-13199 13-3956775 (COMMISSION FILE NUMBER) (IRS EMPLOYER ID. NUMBER) 420 Lexington Avenue 10170 New York, New York (ZIP CODE) (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (212) 594-2700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) EXHIBITS 99.1 Supplemental Package ITEM 9. REGULATION FD DISCLOSURE Following the issuance of a press release on April 24, 2001 announcing the Company's results for the first quarter ended March 31, 2001, the Company is also making available supplemental information regarding the Company's operations that is too voluminous for a press release. The Company is attaching this supplemental package as Exhibit 99.1 to this Current Report on Form 8-K. The press release for the first quarter has been filed under a separate Form 8-K dated April 24, 2001. Note: the information in this report (including the exhibits) is furnished pursuant to Item 9 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. 2
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SL GREEN REALTY CORP. /s/ THOMAS E. WIRTH ----------------------------------------- Thomas E. Wirth Executive Vice President, Chief Financial Officer Date: April 25, 2001 3
Exhibit 99.1 SL GREEN REALTY CORP. FIRST QUARTER SUPPLEMENTAL DATA MARCH 31, 2001
SL Green Realty Corp. is a fully integrated, self-administered and self-managed Real Estate Investment Trust (REIT) that primarily owns, manages, leases, acquires and repositions office properties in emerging, high-growth submarkets of Manhattan. o SL Green's common stock and Preferred Income Equity Redeemable Shares ("PIERS" SM), are listed on the New York Stock Exchange, and trade under the symbols: SLG and SLG PrA respectively. o SL Green maintains an internet site at WWW.SLGREEN.COM at which most key investor relations data pertaining to dividend declaration, payout, current and historic share price, etc. can be found. Such information is not reiterated in this supplemental financial package. This supplemental financial package is available through the Company's Internet site until the Company's quarterly report on Form 10-Q is filed with the Securities and Exchange Commission. o This data is presented to supplement audited and unaudited regulatory filings of the Company and should be read in conjunction with those filings. The financial data herein is unaudited and is provided from the prospective of timeliness to assist readers of Quarterly and annual financial filings. As such, data otherwise contained in future regulatory filings covering the same period may be restated from the data presented herein. o Questions pertaining to the information contained herein should be referred to Michael W. Reid or Thomas E. Wirth at Michael W. Reid@slgreen.com or tom.wirth@slgreen.com or at 212-594-2700. This report includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this report that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), expansion and other development trends of the real estate industry, business strategies, expansion and growth of the Company's operations and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, general economic and business conditions, the business opportunities that may be presented to and pursued by the Company, changes in laws or regulations and other factors, many of which are beyond the control of the Company. Any such statements are not guarantees of future performance and actual results or developments may differ materially from those anticipated in the forward-looking statements. The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the quarterly period ended March 31, 2001 that will subsequently be released on Form 10-Q to be filed on or before May 15, 2001. 2
CONTENTS PAGE ---- HIGHLIGHTS OF CURRENT PERIOD FINANCIAL PERFORMANCE 4-9 UNAUDITED FINANCIAL STATEMENTS Balance Sheet 10 Statement of Operations 12 Joint Venture Statements 14 Statement of Stockholders' Equity 16 Funds From Operations 17 SELECTED FINANCIAL DATA 18-20 SUMMARY OF DEBT AND GROUND LEASE ARRANGEMENTS 21-22 PROPERTY DATA Composition of Property Portfolio 23 Top Tenants 24 Leasing Activity Summary 25-27 Lease Expiration Schedule 28-29 SUMMARY OF ACQUISITION ACTIVITY 30 3
SL GREEN REALTY CORP. FIRST QUARTER 2001 UNAUDITED ================================================================================ FINANCIAL HIGHLIGHTS EARNINGS PERFORMANCE o First quarter Funds From Operations (FFO) were $21.2 million or $0.73 per share (diluted), 18% better than one year ago, when FFO was $17.2 million or $0.62 per share (diluted). Quarterly FFO results exclude an extraordinary loss due to an early debt extinguishment of $0.1 million, the $1.5 million gain on the sale of 633 Third Avenue in 2001 and the $14.2 million gain of the sales of 36 West 44th Street and 29 West 33rd Street in 2000, and a 2001 cumulative effect of accounting change ($0.5 million) related to the implementation of SFAS 133. o The 18% growth in first quarter FFO reflects contributions from the following: o Consolidated GAAP NOI increased $7.5 million: -- $6.8 million from the 2001 acquisitions of One Park Avenue and 1370 Broadway -- $3.4 million increase from same store properties as GAAP revenue increased $4.4 million, net of the change in credit loss, (i) $3.9 million in rental revenue as GAAP replacement rents were 56% higher than the previously fully escalated rents and (ii) increased escalation and reimbursement income ($1.6 million) related to the increased recovery ($1.0 million) of higher electric expense resulting from the higher electric rates, and increased operating expense escalations ($0.5 million). The increased electric recovery represented an 82% recovery rate on the increased electric costs. Revenue gains were partially offset by $1.8 million of higher operating costs, which resulted from: higher utility costs ($1.4 million) primarily due to higher electric rates ($1.0 million) and higher fuel and gas costs ($0.4 million). -- $0.7 million increase from the Company's joint ventures. -- $3.0 million decrease from wholly owned properties sold (29 West 34th Street, Bar Building, 17 Battery South and 633 Third Avenue) or contributed to a joint venture (321 West 44th Street). o Investment income increased $2.3 million due to (i) increased investment in structured finance ($2.2 million) and interest income earned on proceeds from the sale of 17 Battery South ($0.1 million). 4
o The Company had higher interest costs ($4.4 million) associated with: higher average debt levels due to net acquisition and new structured finance activity ($4.3 million), and the higher average debt levels due to the funding of ongoing capital projects and working capital requirements ($0.4 million). The increase was partially offset by lower interest rates from floating rate debt ($0.3 million). o MG&A expense increased $0.8 million from higher personnel costs due to several executive management changes. o Non-real estate depreciation increased $0.1 million due to additional amortization of financing costs primarily associated with the company's new line of credit. o Equity in (loss) income in service corporation and subsidiaries decreased $0.4 million due to lower tenant-rep income ($0.2 million) and an increased loss from Emerge ($0.2 million) due to one-time start-up costs associated with the expansion of the e.Emerge operation. OPERATING MARGINS QUARTERLY o Cash NOI in the 2001 "same store" portfolio rose $4.2 million (17%) from $23.9 million to $28.1 million, and operating margins improved from 56.8% to 59.2%. GAAP NOI increased by $2.5 million to $21.6 million, or approximately 13% over a year ago, and GAAP operating margins after ground rent improved from 56.6% to 57.4%. One of the primary drivers increasing same store cash NOI is the $5.2 million (11%) increase in total revenue combined with a $0.8 million reduction in free rent and straight line rent, resulting in a $6.0 million (14%) increase in cash revenue. The $0.7 decrease in free rent is primarily due to 420 Lexington Avenue ($0.4 million), 440 Ninth Avenue ($0.1 million), and 290 Madison Avenue ($0.1 million). The decrease in free rent is due to reduced free rent in the 2001 lease concession packages and reduced leasing activity as compared to the 2000 first quarter. The $5.2 million increase in total revenue is due to: 1. An increase in rent revenue of $3.2 million resulting from higher replacement rents approximately on 554,000 square feet which were 47% greater than previously fully escalated rents primarily at 420 Lexington Avenue ($1.5 million), 711 Third Avenue ($0.5 million), 1372 Broadway ($0.4 million) and 440 Ninth Avenue ($0.3 million). 2. The balance of the increase is due to higher escalation and reimbursement income ($1.6 million), consisting of electric reimbursement ($1.0 million) and increased operating escalation income ($0.5 million). 5
3. Leasing of 50,000 square feet of previously vacant space ($0.7 million). Partially offsetting the total revenue increase were increased operating expenses ($1.8 million) primarily due to higher utility costs ($1.4 million) and higher payroll costs ($0.3 million). NOTE: See Page 9 for a list of the properties, which comprise the 2001 same store portfolio. o The Company's consolidated first quarter EBITDA margins before ground rent improved to 64.2% compared to 60.8% for 2000. The EBITDA margin after ground rent was 59.2% as compared to 54.8% in the same period of the prior year. These margin improvements are attributable to GAAP NOI growth resulting from (i) an average improvement in replacement rents over this 12-month period of 42% versus previously fully escalated rents, (ii) income from unconsolidated joint ventures, (iii) income from structured finance and (iv) property acquisitions net of property dispositions. QUARTERLY LEASING HIGHLIGHTS o Vacancy at December 31, 2000 was 204,879 useable square feet net of holdover tenants. During the quarter, 101,707 additional useable square feet became available at an average escalated cash rent of $32.37 per rentable square foot. The company also acquired 72,340 vacant useable square feet with the first quarter acquisitions of 469 Seventh Avenue 1370 Broadway and One Park Avenue. Space available to lease during the quarter totaled 378,926 useable square feet, or 3.8% of the total portfolio. o During the first quarter, 45 leases were signed totaling 101,932 useable office square feet with new cash rents averaging $40.05 per rentable square foot. Replacement rents were 42% greater than rents on previously occupied space, which had a fully escalated cash rent averaging $28.19 per rentable square foot. Average tenant concessions were one month of free rent and tenant build-out allowance of $9.01 per rentable square foot. Including early renewals and excluding holdover tenants, the tenant renewal rate was 48%. 7 leases have expired comprising 14,854 useable square feet that are in a holdover status. This results in 262,140 useable square feet remaining vacant at March 31, 2001. o The Company signed 2 leases for 8,482 useable square feet that was for the early renewal of a office tenants. The early renewals were for space that was not scheduled to become available until after 2001. The Company was able to renew the current tenants at an average cash rent of $47.98 representing an increase of 34.0% over the previously escalated rents of $35.81. 6
INVESTMENT ACTIVITY ACQUISITIONS ONE PARK AVENUE In January 2001, the Company acquired various ownership and mortgage interests in One Park Avenue for $233.9 million. This 913,00 square foot, 20-story office building occupies the entire block front on Park Avenue between 32nd and 33rd Street. The Company also acquired an option to purchase the ground lease position. The acquisition was financed with a $150 million mortgage loan from Lehman Brothers Holdings, Inc. and the Company's unsecured line of credit. This transaction closed on January 10, 2001. 1370 BROADWAY In January 2001 the Company acquired the property located at 1370 Broadway for $50.5 million. This 16-story, 255,000 square foot office building is located across the street from 1372 Broadway, an SL Green property in the Time Square submarket. In-place rents are approximately $27.72 per square foot, approximately 34% below current market levels. Proceeds from the sale of 17 Battery South funded the acquisition to complete a section 1031 tax-free exchange and defer a $10 million capital gain resulting from the sale. 469 7TH AVENUE In January 2001 the Company acquired 469 Seventh Avenue with a partner, Morgan Stanley Real Estate Fund III, L.P. ("MSREF") for $45.7 million. With a total of 253,000 sf, the building's purchase price represents approximately $180 psf. Located two blocks north of Penn Station, in-place rents are $28.50 psf, approximately 28% below current market levels. The Company holds an interest of 35% in the property. SL Green has assumed managing and leasing responsibilities for the property. STRUCTURED FINANCE In March 2001 the Company acquired an existing $39.2 million mezzanine loan position collateralized by a property located in midtown Manhattan. The property is a 770,000 square foot, 25-story Class B office building. The loan, which carries a rate of 900 basis points over the 30-day LIBOR, will mature in January 2003. In April 2001 the Company received $50.1 million in proceeds from the early redemption of an outstanding mezzanine loan position. The loan had an anticipated maturity date in September 2001. The loan had an original issue discount that has been accelerated and will result in an increase to second quarter investment income totaling $2.1 million. 7
SALES 1412 BROADWAY The Company announced today it has entered into a contract to sell 1412 Broadway for $91.5 million, to an affiliate of JER Partners, a subsidiary of JE Roberts Companies. As part of the transaction, SL Green will retain a preferred equity position of up to $13.0 million in the property. The purchase price is subject to adjustment based on the ultimate size of the preferred equity, but in no event shall the purchase price be reduced below $90.2 million. The Company will recognize a gain on sale in the amount of approximately $6.0 million resulting from this transaction. 633 THIRD AVENUE In January 2001, the Company also sold their retail condominium interests in 633 Third Avenue for $13.25 million resulting in a gain on sale totaling $1.5 million. This represented 40,623 sf of retail space leased to Chase Manhattan and an affiliate of New York Sports Club. REFINANCINGS On March 30, 2001, the company received approval from their bank group to increase the company's unsecured revolving credit facility by $50 million to $300 million. During January 2001, the company repaid the $26.95 million mortgage encumbering the Madison Avenue properties. The loan was scheduled to mature in May 2001. The company contributed two of the Madison Avenue properties to the company's unencumbered asset pool supporting the unsecured line of credit. o See Property Acquisition Schedule on page 30. CAPITALIZATION AND LIQUIDITY o The Company's dividend payout ratio was 53.0% of FFO and 72.6% of FAD before first cycle leasing costs. o On March 15, 2001 the Company declared a quarterly dividend distribution of $0.3875 per common share and $0.50 per share of Preferred Income Equity Redeemable Stock payable on April 13, 2001 for shareholders of record as of March 30, 2001. 8
OTHER o Starting January 1, the Company changed its definition of "Same Store" results to include all properties as of 1/1/01, which were owned 12 months or more. The same store group has been adjusted to remove properties sold or partially sold during 2000 and will include the following properties: 2001 SAME STORE 673 First Avenue 1140 Avenue of the Americas 1466 Broadway 470 Park Avenue South 50 West 23rd Street 440 Ninth Avenue 70 West 36th Street 555 West 57th Street 11 Third Avenue 1414 Avenue of the Americas 110 East 42nd Street 412 Broadway 1372 Broadway 290 Madison Avenue 292 Madison Avenue 286 Madison Avenue 420 Lexington Avenue 9
COMPARATIVE BALANCE STATEMENT UNAUDITED ($000's omitted) Standard GAAP Format 03/31/01 03/31/00 +/- % CHANGE -------- -------- --- -------- ASSETS Commercial real estate properties, at cost: Land & land interests 165,814 132,081 33,733 26% Buildings & improvements fee interest 785,280 637,168 148,112 23% Buildings & improvements leasehold 140,951 134,304 6,647 5% Buildings & improvements under capital lease 12,208 12,208 -- 0% ---------- ---------- ---------- 1,104,253 915,761 188,492 21% Less accumulated depreciation (81,409) (62,965) (18,444) 29% ---------- ---------- ---------- 1,022,844 852,796 170,048 20% Other Real Estate Investments: Investment in unconsolidated joint ventures 72,673 62,021 10,652 17% Mortgage loans and preferred equity investments 92,982 65,680 27,303 42% Properties held for sale 82,153 -- 82,153 0% Cash and cash equivalents 8,078 10,147 (2,069) -20% Restricted cash: Tenant security 20,603 17,555 3,048 17% Escrows & other 22,842 21,158 1,684 8% Tenant and other receivables, net of $2,141 reserve at 3/31/01 8,940 5,079 3,861 76% Related party receivables 1,046 446 600 134% Deferred rents receivable, net of reserve for -- tenant credit loss of $5,334 at 3/31/01 46,843 40,252 6,591 16% Investment in and advances to affiliates 6,919 5,695 1,224 22% Deferred costs, net 40,940 31,542 9,397 30% Other assets 16,650 11,563 5,087 44% ---------- ---------- ---------- TOTAL ASSETS 1,443,513 1,123,934 319,579 28% ====================================== LIABILITIES AND STOCKHOLDERS' EQUITY Mortgage notes payable 528,535 332,262 196,273 59% Revolving credit facilities 211,926 141,752 70,174 50% Derivative Instruments-Fair Value 2,814 -- 2,814 -- Accrued interest payable 3,676 3,158 518 16% Accounts payable and accrued expenses 22,122 15,753 6,369 40% Deferred Compensation Awards 1,838 -- 1,838 0% Deferred revenue 2,073 1,480 593 40% Capitalized lease obligations 15,369 15,090 279 2% Deferred land lease payable 13,512 12,052 1,460 12% Dividend and distributions payable 12,746 11,962 784 7% Security deposits 20,137 17,510 2,627 15% ---------- ---------- ---------- TOTAL LIABILITIES 834,748 551,019 283,728 51% Minority interest (2,283 units outstanding) 43,062 42,430 632 1% 8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, 4,600 outstanding 110,888 110,454 434 0% STOCKHOLDERS' EQUITY Common stock, $.01 par value 100,000 shares authorized, 24,705 issued and outstanding at 3/31/01 248 242 6 2% Additional paid - in capital 433,482 423,032 10,449 2% Deferred compensation plans & officer loans (9,400) (6,661) (2,739) 41% Accumulated Other Comprehensive Income (2,409) -- (2,409) 0% Retained earnings / (distributions in excess of earnings) 32,894 3,418 29,476 862% ---------- ---------- ---------- TOTAL STOCKHOLDERS' EQUITY 454,815 420,031 34,784 8% ---------- ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,443,513 1,123,934 319,579 28% ====================================== Standard GAAP Format 12/31/00 +/- % CHANGE -------- --- -------- ASSETS Commercial real estate properties, at cost: Land & land interests 125,572 40,242 132% Buildings & improvements fee interest 618,637 166,643 -2% Buildings & improvements leasehold 139,393 1,558 5% Buildings & improvements under capital lease 12,208 -- 0% ---------- ---------- 895,810 208,443 -1% Less accumulated depreciation (78,432) (2,977) 38% ---------- ---------- 817,378 205,466 -4% Other Real Estate Investments: Investment in unconsolidated joint ventures 65,031 7,642 177% Mortgage loans and preferred equity investments 51,293 41,689 156% Properties held for sale 10,895 71,258 -58% Cash and cash equivalents 10,793 (2,715) -50% Restricted cash: Tenant security 19,479 1,124 10% Escrows & other 67,344 (44,502) 309% Tenant and other receivables, net of $2,141 reserve at 3/31/01 7,580 1,360 32% Related party receivables 917 129 98% Deferred rents receivable, net of reserve for tenant credit loss of $5,334 at 3/31/01 45,816 1,027 24% Investment in and advances to affiliates 6,373 546 28% Deferred costs, net 40,113 827 31% Other assets 18,142 (1,492) 16% ---------- ---------- TOTAL ASSETS 1,161,154 282,359 8% ======================== LIABILITIES AND STOCKHOLDERS' EQUITY Mortgage notes payable 414,342 114,193 17% Revolving credit facilities 46,374 165,552 -44% Derivative Instruments-Fair Value -- -- 0% Accrued interest payable 2,349 1,327 -11% Accounts payable and accrued expenses 24,818 (2,696) 45% Deferred Compensation Awards 2,833 (995) -35% Deferred revenue 1,112 962 263% Capitalized lease obligations 15,303 66 2% Deferred land lease payable 13,158 354 13% Dividend and distributions payable 12,678 68 6% Security deposits 19,014 1,123 1% ---------- ---------- TOTAL LIABILITIES 551,981 282,767 8% Minority interest (2,283 units outstanding) 43,326 (264) 4% 8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, 4,600 outstanding 110,774 114 0% STOCKHOLDERS' EQUITY Common stock, $.01 par value 100,000 shares authorized, 24,705 issued and outstanding at 3/31/01 246 2 2% Additional paid - in capital 428,698 4,784 2% Deferred compensation plans & officer loans (5,037) (4,363) -25% Accumulated Other Comprehensive Income -- (2,409) 0% Retained earnings / (distributions in excess of earnings) 31,166 1,728 -431% ---------- ---------- TOTAL STOCKHOLDERS' EQUITY 455,073 (258) 12% ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,161,154 282,359 8% ======================== Standard GAAP Format 09/30/00 +/- % CHANGE -------- --- -------- ASSETS Commercial real estate properties, at cost: Land & land interests 125,572 40,242 32% Buildings & improvements fee interest 609,089 176,191 29% Buildings & improvements leasehold 137,441 3,510 3% Buildings & improvements under capital lease 12,208 -- 0% ---------- ---------- 884,310 219,943 25% Less accumulated depreciation (72,179) (9,230) 13% ---------- ---------- 812,131 210,713 26% Other Real Estate Investments: Investment in unconsolidated joint ventures 59,632 13,041 22% Mortgage loans and preferred equity investments 49,903 43,079 86% Properties held for sale 49,890 32,263 65% Cash and cash equivalents 14,064 (5,986) -43% Restricted cash: Tenant security 18,979 1,624 9% Escrows & other 15,604 7,238 46% Tenant and other receivables, net of $2,141 reserve at 3/31/01 9,132 (192) -2% Related party receivables 964 82 9% Deferred rents receivable, net of reserve for tenant credit loss of $5,334 at 3/31/01 43,452 3,391 8% Investment in and advances to affiliates 7,943 (1,024) -13% Deferred costs, net 37,924 3,016 8% Other assets 34,100 (17,450) -51% ---------- ---------- TOTAL ASSETS 1,153,718 289,795 25% ======================== LIABILITIES AND STOCKHOLDERS' EQUITY Mortgage notes payable 345,351 183,184 53% Revolving credit facilities 126,752 85,174 67% Derivative Instruments-Fair Value -- -- Accrued interest payable 3,069 607 20% Accounts payable and accrued expenses 25,212 (3,090) -12% Deferred Compensation Awards 2,833 (995) -35% Deferred revenue 1,444 629 44% Capitalized lease obligations 15,242 127 1% Deferred land lease payable 12,805 707 6% Dividend and distributions payable 12,065 681 6% Security deposits 18,951 1,186 6% ---------- ---------- TOTAL LIABILITIES 563,725 271,023 48% Minority interest (2,283 units outstanding) 41,753 1,309 3% 8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, 4,600 outstanding 110,667 221 0% STOCKHOLDERS' EQUITY Common stock, $.01 par value 100,000 shares authorized, 24,705 issued and outstanding at 3/31/01 245 3 1% Additional paid - in capital 428,635 4,847 1% Deferred compensation plans & officer loans (5,939) (3,461) 58% Accumulated Other Comprehensive Income -- (2,409) 0% Retained earnings / (distributions in excess of earnings) 14,633 18,261 125% ---------- ---------- TOTAL STOCKHOLDERS' EQUITY 437,574 17,241 4% ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,153,718 289,795 25% ======================== 10 & 11
COMPARATIVE STATEMENT OF OPERATIONS UNAUDITED ($000's omitted - except per share data) MAR-01 MAR-00 +/- % DEC-00 SEP-00 ------ ------ --- -- ------ ------ REVENUES Rental revenue, net 51,991 43,670 8,321 19% 46,037 44,482 Free rent 1,948 1,990 (42) -2% 781 1,978 Amortization of free rent (838) (796) (42) 5% (756) (851) ------- ------- ------- ------- ------- Net free rent 1,110 1,194 (84) -7% 25 1,127 Straight-line rent 2,551 2,310 241 10% 2,171 2,237 Allowance for S/L tenant credit loss (649) (233) (416) 178% (182) (199) Escalation and reimbursement revenues 8,057 5,981 2,076 35% 5,791 7,593 Signage rent 350 500 (150) -30% 544 496 Investment income 3,274 1,013 2,261 223% 3,367 4,968 Other income 310 324 (14) -4% 442 170 ------- ------- ------- ------- ------- TOTAL REVENUES, NET 66,994 54,759 12,235 22% 58,195 60,874 Equity in income/(loss) from affiliates (269) 170 (439) -259% (231) 71 Equity in income from unconsolidated joint ventures 1,513 841 672 80% 899 586 EXPENSES Operating expenses 15,826 13,190 2,636 20% 12,751 15,260 Ground rent 3,159 3,183 (24) -1% 3,155 3,164 Real estate taxes 8,180 7,335 845 12% 7,163 7,299 Marketing, general and administrative 3,547 2,788 759 27% 3,043 2,540 ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 30,712 26,496 4,216 16% 26,112 28,263 EBITDA 37,526 29,274 8,252 28% 32,751 33,268 Interest 13,897 9,492 4,405 46% 10,188 10,698 Depreciation and amortization 9,720 7,816 1,904 24% 7,992 8,300 ------- ------- ------- ------- ------- INCOME BEFORE MINORITY INTEREST 13,909 11,966 1,943 16% 14,571 14,270 Extraordinary loss- early debt extinguishment (98) -- (98) 0% (491) -- Gain on sale of properties 1,514 14,225 (12,711) -89% 16,770 -- Gain on redemption of preferred equity inv -- -- 0% -- 5,624 Cumulative effect of accounting change (532) -- (532) 0% -- -- Minority interest - OP (1,081) (2,151) 1,070 -50% (2,467) (1,496) ------- ------- ------- ------- ------- NET INCOME 13,712 24,040 (10,328) -43% 28,383 18,398 Dividends on preferred shares 2,300 2,300 -- 0% 2,300 2,300 Preferred stock accretion 114 107 7 7% 107 107 ------- ------- ------- ------- ------- INCOME AVAILABLE FOR COMMON SHARES 11,298 21,633 (10,335) -48% 25,976 15,991 =============================== ======= ======= MG&A to Real Estate Revenue, net 5.59% 5.22% 5.60% 4.56% MG&A to Total Revenue, net 5.29% 5.09% 5.23% 4.17% Operating Expense to Real Estate Revenue, net 24.96% 24.69% 23.45% 27.38% EBITDA to Real Estate Revenue, net 59.18% 54.80% 60.22% 59.69% EBITDA before Ground Rent to Real Estate Revenue, net 64.16% 60.75% 66.02% 65.36% 12
($000's omitted - except per share data) MAR-01 MAR-00 DEC-00 SEP-00 ------ ------ ------ ------ PER SHARE DATA: Income available for common shares 11,298 21,633 25,976 15,991 Net income per share (basic) 0.46 0.89 1.06 0.65 Dividend per share 0.3875 0.3625 0.3875 0.3625 Estimated payout of taxable income 101% 99% 51% 78% Basic weighted average common shares 24,639 24,220 24,505 24,458 Diluted weighted average common shares and common share equivalents outstanding 27,403 31,531 27,299 27,300 PAYOUT OF TAXABLE INCOME ANALYSIS: Estimated taxable income is derived from net income less straightline rent, free rent net of amortization of free rent, plus tax gain on sale of properties, credit loss, straightline ground rent between tax and GAAP depreciation. The Company has deferred the taxable gain on the sales 29 West 35th Street and 17 Battery South through 1031 exchanges. 13
JOINT VENTURE STATEMENTS BALANCE SHEET FOR UNCONSOLIDATED JOINT VENTURES UNAUDITED ($000's omitted) March 31, 2001 March 31, 2000 ------------------------ ------------------------ Total SLG Property Total SLG Property Property Interest Property Interest -------- -------- -------- -------- Land & land interests 107,832 47,477 63,682 30,749 Buildings & improvements 305,899 147,641 262,314 126,509 -------- -------- -------- -------- 413,731 195,118 325,996 157,258 Less accumulated depreciation (8,847) (4,310) (2,314) (1,081) -------- -------- -------- -------- Net Real Estate 404,884 190,808 323,682 156,177 Cash and cash equivalents 5,147 2,265 5,586 2,662 Restricted cash 13,477 6,438 8,173 3,917 Tenant receivables, net of $1,179 reserve 1,783 846 2,937 1,437 Deferred rents receivable, net of reserve for tenant credit loss of $624 at 3/31/01 4,185 2,016 1,479 699 Deferred costs, net 4,472 2,124 3,457 1,565 Other assets 3,362 1,610 2,471 1,528 -------- -------- -------- -------- Total Assets 437,310 206,107 347,785 167,985 ======== ======== ======== ======== Mortgage loan payable 274,650 128,408 references page 19 208,650 99,348 Accrued interest payable 1,838 868 1,486 709 Accounts payable and accrued expenses 6,049 2,861 7,545 3,716 Security deposits 6,262 2,991 4,714 2,191 Contributed Capital (1) 148,511 70,979 references page 8 125,390 62,021 -------- -------- -------- -------- Total Liabilities and Equity 437,310 206,107 347,785 167,985 ======== ======== ======== ======== As of March 31, 2001 the Company has five joint venture interests representing a 50% interest in 180 Madison Avenue, acquired in December 2000, a 50% interest in 1250 Broadway, acquired in August 1999, a 50% interest in 100 Park Avenue, acquired in February 2000, a 35% interest in 321 West 44th Street, contributed May 2000, and a 35% interest in 469 Seventh Avenue contributed in January 2001. These interests are accounted for on the equity method of accounting and, therefore, are not consolidated into the company's financial statements. (1) This analysis excludes certain residual interests in the entity that held 90 Broad Street (sold November 2000). 14
JOINT VENTURE STATEMENTS STATEMENT OF INCOME & EXPENSE FOR UNCONSOLIDATED JOINT VENTURES UNAUDITED ($000's omitted) Three Months Ended March 31, 2001 Three Months Ended March 31, 2000 --------------------------------- --------------------------------- Total SLG Property Total SLG Property SLG Property Interest SLG Subsidiary Property Interest Subsidiary -------- ------------ -------------- -------- ------------ ---------- Rental Revenue, net 13,983 6,711 9,373 4,424 Free rent 327 158 598 289 Amortization of free rent (70) (33) (43) (20) ------- ------- ------- ------- Net free rent 257 125 555 269 Straight-line rent 616 283 540 257 Allowance for S/L tenant credit loss (150) (71) (165) (78) Escalation and reimbursement revenues 3,382 1,619 1,403 653 Investment income 98 47 40 20 Other income 92 48 267 133 ------- ------- ------- ------- TOTAL REVENUES, NET 18,278 8,763 12,013 5,678 EXPENSES Operating expenses 4,590 2,306 2,966 1,398 Real estate taxes 2,856 1,376 1,873 965 ------- ------- ------- ------- TOTAL OPERATING EXPENSES 7,446 3,682 4,839 2,363 GAAP NOI 10,983 5,151 7,339 3,393 CASH NOI 10,110 4,744 6,244 2,867 Interest 5,370 2,541 3,475 1,665 Depreciation and amortization 2,289 1,085 1,644 771 ------- ------- ------- ------- NET INCOME (1) 3,174 1,455 references page 3 1,947 841 Plus: Real Estate Depreciation 2,090 996 1,407 670 Plus: Extraordinary Loss -- -- 108 39 Plus: Management & Leasing Fees -- -- 64 -- -- 27 ------- ------- ----------------- ------- ------- ------- FUNDS FROM OPERATIONS 5,264 2,451 3,462 1,550 FAD ADJUSTMENTS: Plus: Non Real Estate Depreciation 198 89 237 99 Plus: 2% Allowance for S/L Tenant Credit Loss 150 71 165 78 Less: Free and S/L Rent (873) (408) (1,096) (527) Less: Second Cycle Tenant Improvement, -- -- Leasing Commissions & Recurring Capex (1,141) (490) (1,032) (514) ------- ------- ------- ------- (1,666) (738) (1,726) (864) ======= ======= ======= Operating Expense to Real Estate Revenue, net 25.17% 26.39% 24.98% 24.95% GAAP NOI to Real Estate Revenue, net 60.22% 58.95% 61.82% 60.55% Cash NOI to Real Estate Revenue, net 55.44% 54.29% 52.60% 51.16% As of March 31, 2001 the Company has five joint venture interests representing a 50% interest in 180 Madison Avenue, acquired in December 2000, a 50% interest in 1250 Broadway, acquired in August 1999, a 50% interest in 100 Park Avenue, acquired in February 2000, a 35% interest in 321 West 44th Street, contributed May 2000, and a 35% interest in 460 Seventh Avenue contributed in January 2001. These interests are accounted for on the equity method of accounting and, therefore, are not consolidated into the company's financial statements. (1) Excludes the cumulative effect of an accounting change totaling $98,000 on 1250 Broadway ($49,000 is SL Green's share.) 15
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Deferred Retained Earnings / Compensation ($000's omitted) Additional (Distributions) In Plan / Officers' Common Stock Paid-in Capital Excess of Earnings Loan ------------ --------------- ------------------ ---------------- Balance at December 31, 1998 240 416,939 (8,559) (3,794) Net Income 42,856 Preferred dividend and accretion requirement (9,598) Deferred compensation plan 2 5,019 (4,771) Cash distributions declared ($1.41 per common share) (34,121) Amortization of officers' loan and deferred compensation 1,891 ----- ------- ------- ------ Balance at December 31, 1999 242 421,958 (9,422) (6,674) Net Income 86,217 Preferred dividend and accretion requirement (9,626) Deferred compensation plan 253 6 Exercise of employee stock options 3 4,359 Cash distributions declared ($1.475 per common share) (36,003) Redemption of operating partnership units 1 2,128 Amortization of officers' loan and deferred compensation 1,631 ----- ------- ------- ------ Balance at December 31, 2000 246 428,698 31,166 (5,037) Net Income 13,712 Cumulative Effect of Accounting Change Preferred dividend and accretion requirement (2,414) Deferred compensation plan 1 3,704 (4,712) Exercise of employee stock options 1 620 Cash distributions declared ($0.03875 per common share) (9,570) Redemption of operating partnership units 460 Comprehensive Income - Unrealized loss of derivative instruments Amortization of officers' loan and deferred compensation 349 ----- ------- ------- ------ Balance at March 30, 2001 248 433,482 32,894 (9,400) ===== ======= ====== ====== Accumulated Other ($000's omitted) Comprehensive Loss Total ------------- ----- Balance at December 31, 1998 404,826 Net Income 42,856 Preferred dividend and accretion requirement (9,598) Deferred compensation plan 250 Cash distributions declared ($1.41 per common share) (34,121) Amortization of officers' loan and deferred compensation 1,891 ------------- ------- Balance at December 31, 1999 -- 406,104 Net Income 86,217 Preferred dividend and accretion requirement (9,626) Deferred compensation plan 259 Exercise of employee stock options 4,362 Cash distributions declared ($1.475 per common share) (36,003) Redemption of operating partnership units 2,129 Amortization of officers' loan and deferred compensation 1,631 ------------- ------- Balance at December 31, 2000 -- 455,073 Net Income 13,712 Cumulative Effect of Accounting Change (811) (811) Preferred dividend and accretion requirement (2,414) Deferred compensation plan (1,007) Exercise of employee stock options 621 Cash distributions declared ($0.03875 per common share) (9,570) Redemption of operating partnership units 460 Comprehensive Income - Unrealized loss of derivative instruments (1,598) (1,598) Amortization of officers' loan and deferred compensation 349 ------------- ------- Balance at March 30, 2001 (2,409) 454,815 ====== ======= RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION UNAUDITED Common Stock OP Units Basic Shares Dilution Factor Diluted Shares ------------ -------- ------------ --------------- -------------- Balance at December 31, 1998 23,951,826 2,428,056 26,379,882 26,379,882 Deferred Compensation Programs 232,391 232,391 232,391 ------------ -------- ------------ --------------- -------------- Balance at December 31, 1999 24,184,217 2,428,056 26,612,273 26,612,273 Option/OP Units Converted 326,576 (120,541) 206,035 (97,506) 108,529 Compensation Program 5,201 5,201 12,354 17,555 Unexercised Option Share Equivalents 381,095 381,095 Preferred Stock "If Converted" Method to common stock 4,699,000 4,699,000 ------------ --------- ----------- -------------- -------------- Balance at December 31, 2000 24,515,994 2,307,515 26,823,509 4,994,943 31,818,452 Option/OP Units Converted 189,160 (24,492) 164,668 (122,949) 41,719 Deferred Compensation Program -- -- Unexercised Option Share Equivalents 241,562 241,562 Preferred Stock "If Converted" Method to common stock -- ------------ -------- ------------ --------------- -------------- Balance at March 30, 2001 24,705,154 2,283,023 26,988,177 5,113,556 32,101,733 ============ ========= =========== ============== ============= 16
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited ($000's omitted - except per share data) Three Months Three Months Three Months Ended Mar 31 Ended Dec 31 Ended Sept 30 2001 2000 % Change 2000 % Change 2000 % Change ------- ------- -------- ------- ------- ------ -------- FUNDS FROM OPERATIONS: Net Income before Minority Interests 13,909 11,966 16% 14,571 -5% 14,270 -3% Add: Depreciation and Amortization 9,720 7,816 24% 7,992 22% 8,300 17% FFO adjustment for Joint Ventures 996 709 40% 788 26% 842 18% Less: Dividends on Preferred Shares 2,300 2,300 0% 2,300 0% 2,300 0% Non Real Estate Depreciation/Amortization of 0% Finance Costs 1,155 1,023 13% 998 16% 1,042 11% ------- ------- ------- ------- ------- ----- FUNDS FROM OPERATIONS - BASIC 21,170 17,168 23% 20,053 6% 20,070 5% Add: Dividends on Preferred Shares 2,300 2,300 2,300 0% 2,300 0% ------- ------- ------- ------- ------- ----- FUNDS FROM OPERATIONS - DILUTED 23,470 19,468 22,353 5% 22,370 5% Funds From Operations per Diluted Weighted Average Unit, Common Share and Common Share Equivalent Outstanding 0.73 0.62 18% 0.70 5% 0.70 5% FUNDS AVAILABLE FOR DISTRIBUTION: FFO 21,170 17,168 23% 20,053 6% 20,070 5% Add: Non Real Estate Depreciation (1) 1,155 1,023 13% 998 16% 1,042 11% 2% Allowance for S/L Tenant Credit Loss (1) 649 233 178% 182 257% 199 226% Straight-line Ground Rent 354 441 -20% 354 0% 312 13% Non-cash Deferred Compensation 349 305 14% 903 -61% 422 -17% FAD adjustment for Emerge (1) 0 0% 0 0% -- 0% FAD adjustment for Joint Ventures (738) (864) -15% (371) 99% (631) 17% Less: Straight-line Rental Income (1) 2,551 2,310 10% 2,171 17% 2,237 14% Free Rent - Occupied (Net of Amortization, incl. First Cycle) (1) 1,110 1,194 -7% 25 4378% 1,127 -1% Amortization of Mortgage Investment Discount 759 -- 1,119 -32% 1,119 -32% Second Cycle Tenant Improvement & Leasing Commission on Existing Space (1) 3,558 2,811 27% 3,315 7% 3,118 14% Recurring Building Improvements (1) 327 80 309% 905 -64% 871 -62% ------- ------- ------- ------- ------- ----- FUNDS AVAILABLE FOR DISTRIBUTION BEFORE REDEVELOPMENT & FIRST CYCLE LEASING COSTS 14,633 11,911 23% 14,584 0% 12,942 13% Funds Available for Distribution per Diluted Weighted Average Unit and Common Share 0.53 0.44 22% 0.53 0% 0.47 13% Dividend per Common Share 0.3875 0.3625 7% 0.3875 0% 0.3625 7% FIRST CYCLE LEASING COSTS Tenant Improvement & Leasing Commissions (1) 539 8,700 -94% 439 23% 680 -21% FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST CYCLE LEASING COSTS 14,094 3,211 339% 14,145 0% 12,262 15% Funds Available for Distribution per Diluted Weighted Average Unit and Common Share 0.52 0.12 342% 0.52 0% 0.45 16% REDEVELOPMENT COSTS (1) 2,789 3,233 -14% 6,995 -60% 3,778 -26% - ------------------------------------------------------------------------------------------------------------------------------------ Payout Ratio of Funds From Operations 53.00% 58.47% -9% 55.47% -4% 51.85% 2% Payout Ratio of Funds Available for Distribution before First Cycle 72.57% 83.08% -13% 72.53% 0% 76.47% -5% - ------------------------------------------------------------------------------------------------------------------------------------ (1) Adjusted for Minority Interest in Properties less than 100% owned 17
SELECTED FINANCIAL DATA CAPITALIZATION ANALYSIS HISTORICAL UNAUDITED ($000's omitted) MAR-01 MAR-00 % CHANGE DEC-00 ---------- ---------- ---------- ---------- MARKET CAPITALIZATION Components of Market Capitalization: COMMON EQUITY: Common Shares Outstanding 24,705 24,239 2% 24,516 OP Units Outstanding 2,283 2,408 -5% 2,308 ---------- ---------- ---------- ---------- TOTAL COMMON EQUITY (SHARES AND UNITS) 26,988 26,647 1% 26,824 Share Price at (End of Period) 27.45 23.75 16% 28.00 ---------- ---------- ---------- ---------- Equity Market Value 740,821 632,866 17% 751,058 PREFERRED EQUITY AT LIQUIDATION VALUE: 115,000 115,000 0% 115,000 REAL ESTATE DEBT Property Level Mortgage Debt 528,535 332,262 59% 414,342 Company's portion of Joint Venture Mortgages 128,408 99,348 29% 115,808 Outstanding Balance on - Secured Credit Line 44,926 37,752 19% 23,374 Outstanding Balance on - Unsecured Credit Line 167,000 104,000 61% 23,000 ---------- ---------- ---------- ---------- Total Combined Debt 868,869 573,362 52% 576,524 Total Market Cap (Debt & Equity) 1,724,690 1,321,228 31% 1,442,582 ========== ========== ========== LINES OF CREDIT AVAILABILITY Senior Unsecured Line of Credit Maximum Line Available 300,000 140,000 250,000 Letters of Credit issued 5,000 -- 21,000 Outstanding Balance 167,000 104,000 23,000 ---------- ---------- ---------- Net Line Availability 128,000 36,000 206,000 ---------- ---------- ---------- Secured Line of Credit Maximum Line Available 60,000 50,000 60,000 Outstanding Balance 44,926 37,752 23,374 ---------- ---------- ---------- Prudential Line Availability 15,074 12,248 36,626 ---------- ---------- ---------- Total Availability under Lines of Credit 143,074 48,248 242,626 ---------- ---------- ---------- RATIO ANALYSIS- CONSOLIDATED BASIS Debt to Market Cap Ratio 46.39% 38.79% 34.72% Debt to Gross Real Estate Book Ratio (1) 59.23% 48.28% 48.89% Secured Real Estate Debt to Secured Assets Gross Book (1) 75.98% 56.44% 66.06% Unsecured Debt to Unencumbered Assets-Gross Book Value (1) 46.18% 33.04% 8.65% Secured Non Real Estate Debt to Secured Assets Book (1) 48.32% 49.88% 45.57% RATIO ANALYSIS- JOINT VENTURES ALLOCATED Combined Debt to Market Cap Ratio 50.38% 43.40% 39.96% Debt to Gross Real Estate Book Ratio (1) 60.23% 50.49% 51.58% Secured Debt to Secured Assets Gross Book (1) 73.87% 57.86% 65.85% Unsecured Debt to Unencumbered Assets-Gross Book Value (1) 46.18% 33.04% 8.65% Secured Line of Credit to Structured Finance Assets (1) 48.32% 49.88% 45.57% ---------- ---------- ---------- ($000's omitted) % CHANGE SEP-00 % CHANGE ---------- ---------- ---------- MARKET CAPITALIZATION Components of Market Capitalization: COMMON EQUITY: Common Shares Outstanding 1% 24,516 1% OP Units Outstanding -1% 2,308 -1% ---------- ---------- ---------- TOTAL COMMON EQUITY (SHARES AND UNITS) 1% 26,824 1% Share Price at (End of Period) -2% 28.06 -2% ---------- ---------- ---------- Equity Market Value -1% 752,740 -2% PREFERRED EQUITY AT LIQUIDATION VALUE: 0% 115,000 0% REAL ESTATE DEBT Property Level Mortgage Debt 28% 345,351 53% Company's portion of Joint Venture Mortgages 11% 111,040 16% Outstanding Balance on - Secured Credit Line 92% 27,752 62% Outstanding Balance on - Unsecured Credit Line 626% 99,000 69% ---------- ---------- ---------- Total Combined Debt 51% 583,143 49% Total Market Cap (Debt & Equity) 20% 1,450,883 19% ========== LINES OF CREDIT AVAILABILITY Senior Unsecured Line of Credit Maximum Line Available 250,000 Letters of Credit issued -- Outstanding Balance 99,000 ---------- Net Line Availability 151,000 ---------- Secured Line of Credit Maximum Line Available 50,000 Outstanding Balance 27,752 ---------- Prudential Line Availability 22,248 ---------- Total Availability under Lines of Credit 173,248 ---------- RATIO ANALYSIS- CONSOLIDATED BASIS Debt to Market Cap Ratio 35.24% Debt to Gross Real Estate Book Ratio (1) 48.23% Secured Real Estate Debt to Secured Assets Gross Book (1) 55.77% Unsecured Debt to Unencumbered Assets-Gross Book Value (1) 32.86% Secured Non Real Estate Debt to Secured Assets Book (1) 46.33% RATIO ANALYSIS- JOINT VENTURES ALLOCATED Combined Debt to Market Cap Ratio 40.19% Debt to Gross Real Estate Book Ratio (1) 50.96% Secured Debt to Secured Assets Gross Book (1) 57.99% Unsecured Debt to Unencumbered Assets-Gross Book Value (1) 32.86% Secured Line of Credit to Structured Finance Assets (1) 46.33% (1) Excludes property under capital lease 18
SELECTED FINANCIAL DATA PROPERTY NOI AND COVERAGE RATIOS UNAUDITED ($000's omitted) Three Months Three Months Ends March 31 Ended December 31 2001 2000 +/- % CHANGE 2000 +/- % CHANGE ------- ------- ------- ------ ------- ------- ----- FUNDS FROM OPERATIONS: 21,170 17,168 4,002 23% 20,053 1,117 6% Less: Non - Building Revenue 4,262 2,048 2,214 108% 4,062 200 5% Plus: 2% Reserve for Tenant Credit Loss 649 233 416 178% 182 467 257% Interest Expense (incl. Capital Lease Int.) 13,897 9,492 4,405 46% 10,188 3,709 36% Non Real Estate Depreciation 1,155 1,023 132 13% 998 157 16% MG&A Expense 3,547 2,788 759 27% 3,043 504 17% Preferred Dividend 2,300 2,300 -- 0% 2,300 -- 0% ------- ------- ------- ------- ------- GAAP NOI 38,456 30,956 7,500 24% 32,701 5,755 18% CASH ADJUSTMENTS Less: Free Rent (Net of Amortization) 1,110 1,194 (84) -7% 25 1,086 4378% Straightline Revenue Adjustment 2,551 2,310 241 10% 2,171 380 17% Plus: Ground Lease Straight-line Adjustment 354 441 (87) -20% 354 0 0% ------- ------- ------- ------- ------- CASH NOI 35,149 27,893 7,256 26% 30,859 4,290 14% OPERATING MARGINS Real Estate Revenue, net 64,060 53,655 10,405 19% 54,568 9,492 17% GAAP NOI/Real Estate Revenue, net 60.03% 57.69% 59.93% Cash NOI/Real Estate Revenue, net 54.87% 51.99% 56.55% GAAP NOI before Ground Rent/Real Estate Revenue, net 65.00% 63.63% 65.71% Cash NOI before Ground Rent/Real Estate Revenue, net 59.28% 57.10% 61.68% COMPONENTS OF DEBT AND FIXED CHARGES Interest on Fixed Rate Loans 6,762 4,449 2,313 52% 7,010 (248) -4% Interest on Floating Rate Loans 7,135 5,043 2,093 41% 3,178 3,957 125% Fixed Amortization Principal Payments 1,087 759 328 43% 1,009 78 8% ------- ------- ------- ------- ------- TOTAL DEBT SERVICE 14,985 10,251 4,734 46% 11,197 3,788 34% Payments under Ground Lease Arrangements 2,805 2,769 36 1% 2,802 3 0% Preferred Stock Dividend 2,300 2,300 -- 0% 2,300 -- 0% ------- ------- ------- ------- ------- TOTAL FIXED CHARGES 20,090 15,320 4,770 31% 16,299 3,791 23% Interest Coverage Ratio 2.81 3.19 3.49 Debt Service Coverage ratio 2.60 2.96 3.18 Fixed Charge Coverage ratio 1.94 1.98 2.18 19
2001 SAME STORE SELECTED FINANCIAL DATA ($000's omitted) Three Months Ended March 31 Three Months Ended December 31 2001 2000 +/- % CHANGE 2000 +/- % CHANGE ---- ---- --- -------- ---- --- -------- Rental Revenue 44,885 40,968 3,917 10% 44,092 793 2% Credit Loss (390) (218) (172) 79% (182) (208) 114% Signage Rent 350 500 (150) -30% 544 (194) -36% Escalation & Reimbursement Revenues 6,784 5,152 1,632 32% 5,448 1,336 25% Investment & Other Income 281 345 (64) -19% 591 (310) -52% ------- ------- ------- ------- Total Revenues 51,910 46,747 5,164 11% 50,492 1,418 3% Operating Expense 12,488 10,663 1,825 17% 11,248 1,240 11% Ground Rent 3,159 3,159 (0) 0% 3,155 4 0% Real Estate Taxes 6,545 6,503 42 1% 6,616 (71) -1% ------- ------- ------- ------- Total Operating Expenses 22,192 20,325 1,867 9% 21,019 1,173 6% EBITDA 29,718 26,422 3,296 12% 29,473 245 1% Interest 7,929 6,914 1,015 15% 8,513 (584) -7% Depreciation & Amortization 6,772 6,340 432 7% 6,737 36 1% Income Before Minority Interest 15,017 13,168 1,849 14% 14,222 795 6% Plus: Real Estate Depreciation & Amortization 6,533 5,874 659 11% 6,442 91 1% ------- ------- ------- ------- FUNDS FROM OPERATIONS: 21,550 19,042 2,508 13% 20,664 886 4% Less: Non - Building Revenue 186 124 62 50% 287 (101) -35% Plus: 2% Reserve for Tenant Credit Loss 390 218 172 79% 182 208 114% Interest Expense 7,929 6,914 1,015 15% 8,513 (584) -7% Non Real Estate Depreciation 239 466 (227) -49% 295 (56) -19% ------- ------- ------- ------- GAAP NOI 29,922 26,516 3,406 13% 29,369 553 2% CASH ADJUSTMENTS Less: Free Rent (Net of Amortization) 326 1,066 (740) -69% 45 281 630% Straightline Revenue Adjustment 1,884 1,987 (103) -5% 2,046 (162) -8% Plus: Ground Lease Straight-line Adjustment 354 441 (87) -20% 354 0 0% ------- ------- ------- ------- CASH NOI 28,066 23,904 4,161 17% 27,632 433 2% OPERATING MARGINS GAAP NOI to Real Estate Revenue, net 57.42% 56.61% 58.29% Cash NOI to Real Estate Revenue, net 53.85% 51.03% 54.84% GAAP NOI before Ground Rent/Real Estate Revenue, net 63.48% 63.35% 64.55% Cash NOI before Ground Rent/Real Estate Revenue, net 59.24% 56.84% 60.40% 20
DEBT SUMMARY SCHEDULE UNAUDITED ($000's omitted) FIXED RATE SECURED DEBT Principal O/S 03/31/01 COUPON -------- ------ PROPERTY 673 First Avenue 11,260 9.00% 470 Park Avenue South 9,671 8.25% 50 West 23rd Street 21,000 7.33% CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) 26,200 7.90% 711 Third Avenue 49,074 8.13% 555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) 69,437 7.31% 420 Lexington Avenue 125,000 8.44% 875 Bridgeport Avenue, CT (1031 exchange asset) 14,893 8.32% 1412 Broadway 52,000 7.62% ------- ----- TOTAL FIXED RATE SECURED DEBT 378,535 7.99% wtd avg FLOATING RATE SECURED DEBT 1 Park Avenue (Libor + 150 bps) 150,000 6.73% Prudential Line of Credit (Libor + 125bps) 44,926 7.00% ------- ----- TOTAL FLOATING RATE SECURED DEBT 194,926 6.80% wtd avg UNSECURED FLOATING RATE DEBT Senior Unsecured Line of Credit 167,000 7.19% wtd avg Total Floating Rate Debt Outstanding 361,926 6.98% wtd avg -------- ----- TOTAL DEBT 740,461 7.49% wtd avg WEIGHTED AVERAGE BALANCE OUTSTANDING 701,517 WEIGHTED AVERAGE INTEREST RATE 7.65% SUMMARY OF JOINT VENTURE DEBT Principal O/S ------------------------------ Gross Principal Slg Share --------------- --------- JOINT VENTURE DEBT 180 Madison JV 32,000 15,968 7.81% 469 Seventh Avenue (Libor + 225 bp) 36,000 12,600 7.67% 1250 Broadway JV (Libor + 300bps) 64,650 32,260 8.28% 321 W 44th JV (Libor + 250bps) 22,000 7,700 7.78% 100 Park Avenue JV 120,000 59,880 8.00% -------- ------- ----- TOTAL JOINT VENTURE DEBT 274,650 128,408 8.06% WEIGHTED AVERAGE BALANCE OUTSTANDING WITH SLG JV DEBT ALLOCATED 829,925 WEIGHTED AVERAGE INTEREST RATE WITH SLG JV DEBT ALLOCATED 7.73% TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC) 65% TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC AND FLOATING ASSETS) 69% FIXED RATE SECURED DEBT 2001 2001 Annual Principal Maturity Due at Payment Repayment Date Maturity ------- --------- ---- -------- PROPERTY 673 First Avenue 3,985 3,014 12/13/03 2,000 470 Park Avenue South 1,207 416 04/01/04 8,285 50 West 23rd Street 1,539 - 08/01/07 19,234 CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) 2,223 178 05/01/09 12,196 711 Third Avenue 4,388 406 09/10/05 22,825 555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) - 676 11/01/04 66,959 420 Lexington Avenue 10,694 255 11/01/10 104,406 875 Bridgeport Avenue, CT (1031 exchange asset) 1,272 34 05/10/25 5,466 1412 Broadway 3,962 415 05/01/06 47,854 ------ ---- TOTAL FIXED RATE SECURED DEBT 29,270 5,394 FLOATING RATE SECURED DEBT 1 Park Avenue (Libor + 150 bps) 01/10/04 150,000 Prudential Line of Credit (Libor + 125bps) - 12/22/01 44,926 TOTAL FLOATING RATE SECURED DEBT UNSECURED FLOATING RATE DEBT Senior Unsecured Line of Credit - 06/27/03 167,000 Total Floating Rate Debt Outstanding TOTAL DEBT WEIGHTED AVERAGE BALANCE OUTSTANDING WEIGHTED AVERAGE INTEREST RATE SUMMARY OF JOINT VENTURE DEBT JOINT VENTURE DEBT 180 Madison JV 2,499 - 12/01/05 30,778 469 Seventh Avenue (Libor + 225 bp) 02/01/03 12,600 1250 Broadway JV (Libor + 300bps) - 08/30/02 32,260 321 W 44th JV (Libor + 250bps) - 04/30/03 7,700 100 Park Avenue JV 9,733 187 09/01/10 107,488 ------ ---- TOTAL JOINT VENTURE DEBT 12,232 187 WEIGHTED AVERAGE BALANCE OUTSTANDING WITH SLG JV DEBT ALLOCATED WEIGHTED AVERAGE INTEREST RATE WITH SLG JV DEBT ALLOCATED TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC) TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC AND FLOATING ASSETS) FIXED RATE SECURED DEBT Earliest Contractual Partner Prepayment Date Lockouts Thru --------------- ------------- PROPERTY 673 First Avenue Open Aug-09 470 Park Avenue South Open Aug-09 50 West 23rd Street Aug-01 N/A CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) Apr-03 N/A 711 Third Avenue Jun-04 N/A 555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) Open N/A 420 Lexington Avenue Open N/A 875 Bridgeport Avenue, CT (1031 exchange asset) Open N/A 1412 Broadway Apr-00 N/A TOTAL FIXED RATE SECURED DEBT FLOATING RATE SECURED DEBT 1 Park Avenue (Libor + 150 bps) Open Prudential Line of Credit (Libor + 125bps) Open TOTAL FLOATING RATE SECURED DEBT UNSECURED FLOATING RATE DEBT Senior Unsecured Line of Credit Total Floating Rate Debt Outstanding TOTAL DEBT WEIGHTED AVERAGE BALANCE OUTSTANDING WEIGHTED AVERAGE INTEREST RATE SUMMARY OF JOINT VENTURE DEBT JOINT VENTURE DEBT 180 Madison JV Open 469 Seventh Avenue (Libor + 225 bp) Open 1250 Broadway JV (Libor + 300bps) Open 321 W 44th JV (Libor + 250bps) Open 100 Park Avenue JV Open TOTAL JOINT VENTURE DEBT WEIGHTED AVERAGE BALANCE OUTSTANDING WITH SLG JV DEBT ALLOCATED WEIGHTED AVERAGE INTEREST RATE WITH SLG JV DEBT ALLOCATED TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC) TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC AND FLOATING ASSETS) 21
SUMMARY OF GROUND LEASE ARRANGEMENTS CONSOLIDATED STATEMENT (REIT) ($000's omitted) 2000 CASH 2001 CASH 2002 CASH DEFERRED LAND YEAR OF PROPERTY PAYMENT (000S) PAYMENT (000S) PAYMENT (000S) LEASE OBLIGATIONS (1) MATURITY -------- -------------- -------------- -------------- --------------------- -------- OPERATING LEASES 673 1st Avenue 2,789 3,010 3,010 11,873 2037 1140 Avenue of Americas (2) 348 348 348 2016 (3) 420 Lexington (2) 7,074 7,074 7,074 2008 (4) 711 3rd Avenue (2) (5) 775 1,163 1,550 1,639 2032 ------ ------ ------ ------ 10,986 11,595 11,983 13,512 ====== ====== ====== ====== 2000 CASH 2001 CASH 2001 CASH CAPITALIZED YEAR OF PROPERTY PAYMENT (000S) PAYMENT (000S) PAYMENT (000S) LEASE OBLIGATIONS (1) MATURITY -------- -------------- -------------- -------------- --------------------- -------- CAPITALIZED LEASE 673 1st Avenue 1,177 1,290 1,290 15,369 2037 ====== ====== ====== ====== (1) Per the balance sheet at March 31, 2001. (2) These ground leases are classified as operating leases and, therefore, do not appear on the balance sheet as an obligation. (3) The Company has a unilateral option to extend the ground lease for an additional 50 years, to 2066. (4) Subject to renewal at the Company's option through 2029. (5) Excludes portion payable to SL Green as owner of 50% leasehold. 22
SELECTED PROPERTY DATA Rentable % of Total PROPERTIES Submarket Ownership Sq. Feet Sq. Feet - ---------- --------- --------- -------- -------- PROPERTIES 100% OWNED "SAME STORE" 673 First Avenue Grand Central South Leasehold Interest 422,000 4.2 470 Park Avenue South Park Avenue South/ Flatiron Fee Interest 260,000 2.6 70 W. 36th Street Garment Fee Interest 151,000 1.5 1414 Avenue of the Americas Rockefeller Center Fee Interest 111,000 1.1 1372 Broadway Garment Fee Interest 508,000 5.1 1140 A of A Rockefeller Center Leasehold Interest 191,000 1.9 50 W. 23rd Street Chelsea Fee Interest 333,000 3.3 110 East 42nd Street Grand Central Fee Interest 251,000 2.5 1466 Broadway Times Square Fee Interest 289,000 2.9 420 Lexington Ave (Graybar) Grand Central North Operating Sublease 1,188,000 11.8 440 Ninth Avenue Garment Fee Interest 339,000 3.4 711 Third Avenue Grand Central North Operating Sublease (1) 524,000 5.2 1412 Broadway Times Square South Fee Interest 389,000 3.9 555 West 57th Midtown West Fee Interest 941,000 9.4 286 Madison Avenue Grand Central South Fee Interest 112,000 1.1 290 Madison Avenue Grand Central South Fee Interest 36,800 0.4 292 Madison Avenue Grand Central South Fee Interest 187,000 1.9 ------- ---- SUBTOTAL / WEIGHTED AVERAGE 6,232,800 62.1 2001 Acquisitions 1 Park Avenue Grand Central South Various Interests 913,000 9.1 1370 Broadway Gatment Fee Interest 255,000 2.5 ------- ---- 1,168,000 11.6 2001 ADJUSTMENTS 17 Battery Place - North World Trade/ Battery Fee Interest 419,000 4.2 Total/ Weighted Average Properties 100% Owned 7,819,800 77.8 PROPERTIES LESS THAN 100% OWNED UNCONSOLIDATED 180 Madison Avenue - 50% Grand Central South Fee Interest 265,000 2.6 469 Seventh Avenue - 35% Penn Station Fee Interest 253,000 2.5 1250 Broadway - 50% Penn Station Fee Interest 670,000 6.7 100 Park Avenue - 50% Grand Central South Fee Interest 834,000 8.3 321 West 44th Street -35% Times Square Fee Interest 203,000 2.0 ------- ---- SUBTOTAL / WEIGHTED AVERAGE 2,225,000 22.2 GRAND TOTAL/ WEIGHTED AVERAGE 10,044,800 100.0 Grand Total - SLG share of Annualized Rent Percent Occupied Annualized ----------------------------------------------- Annualized Rent as % of PROPERTIES 03/31/01 12/31/00 09/30/00 06/30/00 Rent ($'s) Wholly Owned - ---------- -------- -------- -------- -------- ---------- ------------ PROPERTIES 100% OWNED "SAME STORE" 673 First Avenue 100 100 100 100 12,448,372 5.8 470 Park Avenue South 99 99 99 99 6,997,231 3.2 70 W. 36th Street 98 96 98 99 3,280,798 1.5 1414 Avenue of the Americas 97 99 100 100 3,557,547 1.6 1372 Broadway 99 99 99 100 13,585,405 6.3 1140 A of A 100 100 100 100 6,453,658 3.0 50 W. 23rd Street 99 99 99 100 7,489,589 3.5 110 East 42nd Street 100 100 99 99 8,302,151 3.8 1466 Broadway 83 84 92 93 8,798,550 4.1 420 Lexington Ave (Graybar) 99 100 99 98 39,188,949 18.1 440 Ninth Avenue 98 94 94 99 8,447,214 3.9 711 Third Avenue 100 100 100 100 16,324,062 7.6 1412 Broadway 97 97 98 97 10,986,271 5.1 555 West 57th 100 100 100 100 18,218,572 8.4 286 Madison Avenue 98 98 99 99 2,871,108 1.3 290 Madison Avenue 100 100 100 100 1,270,341 0.6 292 Madison Avenue 100 100 95 100 6,425,242 3.0 ---- ---- --- ---- ---------- ---- SUBTOTAL / WEIGHTED AVERAGE 98 98 99 99 174,645,060 80.8 2001 Acquisitions 1 Park Avenue 97 30,059,652 13.9 1370 Broadway 99 6,528,829 3.0 --- ---------- ---- 97 36,588,481 16.9 2001 ADJUSTMENTS 17 Battery Place - North 100 100 97 97 4,973,521 2.3 Total/ Weighted Average Properties 100% Owned 99 99 98 99 216,207,062 100 PROPERTIES LESS THAN 100% OWNED UNCONSOLIDATED 180 Madison Avenue - 50% 89 87 5,276,271 469 Seventh Avenue - 35% 90 90 5,821,136 1250 Broadway - 50% 100 100 99 100 17,962,159 100 Park Avenue - 50% 100 100 99 99 29,009,256 321 West 44th Street -35% 96 97 98 98 3,540,760 --- --- --- --- ---------- SUBTOTAL / WEIGHTED AVERAGE 97 97 99 99 61,609,582 GRAND TOTAL/ WEIGHTED AVERAGE 98 98 99 99 271,995,508 Grand Total - SLG share of Annualized Rent 245,555,321 Annualized Rent as % of Number of PROPERTIES Slg Interests Tenants - ---------- ------------- ------- PROPERTIES 100% OWNED "SAME STORE" 673 First Avenue 5.1 14 470 Park Avenue South 2.8 27 70 W. 36th Street 1.3 33 1414 Avenue of the Americas 1.4 27 1372 Broadway 5.5 25 1140 A of A 2.6 25 50 W. 23rd Street 3.1 17 110 East 42nd Street 3.4 31 1466 Broadway 3.6 99 420 Lexington Ave (Graybar) 16.0 245 440 Ninth Avenue 3.4 15 711 Third Avenue 6.6 22 1412 Broadway 4.5 115 555 West 57th 7.4 24 286 Madison Avenue 1.2 38 290 Madison Avenue 0.5 4 292 Madison Avenue 2.6 19 ---- -- SUBTOTAL / WEIGHTED AVERAGE 71.1 780 2001 Acquisitions 1 Park Avenue 12.2 15 1370 Broadway 2.7 29 ---- -- 14.9 44 2001 ADJUSTMENTS 17 Battery Place - North 2.0 7 Total/ Weighted Average Properties 100% Owned 88 831 PROPERTIES LESS THAN 100% OWNED UNCONSOLIDATED 180 Madison Avenue - 50% 1.1 55 469 Seventh Avenue - 35% 1.2 17 1250 Broadway - 50% 3.7 29 100 Park Avenue - 50% 5.9 37 321 West 44th Street -35% 0.5 25 ---- -- SUBTOTAL / WEIGHTED AVERAGE 12.0 163 GRAND TOTAL/ WEIGHTED AVERAGE 994 Grand Total - SLG share of Annualized Rent 100.0 (1) Including Ownership of 50% in Building Fee 23
LARGEST TENANTS BY SQUARE FEET LEASED Wholly Owned Lease Tenant Property Expiration ------ -------- ---------- The City of New York 17 Battery Place 12/31/07 BMW of Manhattan, Inc. 555 West 57th Street 07/31/12 Loews Corp. 1 Park Avenue 12/31/02 The Segal Company (Eastern States) Inc. 1 Park Avenue 12/31/09 City University of New York-CUNY 555 West 57th Street 5/31/10 & 1/29/15 Metro North Commuter Railroad Co. 420 Lexington Avenue 5/14/08 & 1/31/16 St. Luke's Roosevelt Hospital 555 West 57th Street 06/30/14 C.B.S., Inc. 555 West 57th Street 12/31/03 & 6/30/10 CHF Industries 1 Park Avenue 01/31/05 Coty Inc, 1 Park Avenue 06/30/15 New York Presbyterian Hospital 555 West 57th Street & 673 First Avenue 8/31/06 & 12/14/09 Ross Stores 1372 Broadway 05/31/10 Ann Taylor Inc. 1372 Broadway 07/31/10 Crain Communications Inc. 711 Third Avenue 01/31/09 Advanstar Communications 1 Park Avenue 04/30/10 Parade Publications, Inc. 711 Third Avenue 08/31/10 Ketchum, Inc. 711 Third Avenue 11/30/15 Kallir, Phillips, Ross Inc. 673 First Avenue 06/30/04 UNICEF 673 First Avenue 12/31/03 & 12/31/12 Mt. Sinai Hospital/NYU Hospital Center 1 Park Avenue 02/28/10 New York Life Insurance Company 420 Lexington Avenue 06/30/10 Greater New York Hospital 555 West 57th Street 03/31/14 Gibbs & Cox Inc. 50 West 23rd Street 08/31/05 Cipriani 42nd Street, LLC 110 East 42nd Street 12/31/08 Young & Rubicam, Inc. 290 & 292 Madison Avenue 8/31/15 & 9/30/15 TOTAL Wholly Owned Portfolio - leased JOINT VENTURE PROPERTIES (1) The City of New York (if combined) 1250 Broadway & 17 Battery Place 9/30/07 & 12/31/07 Philip Morris Management Corporation 100 Park Avenue 12/07 & 3/7/01 J&W Seligman & Co., Inc. 100 Park Avenue 01/31/09 Visiting Nurse Service of NY 1250 Broadway 08/31/06 Information Builders Inc 1250 Broadway 03/31/03 Interep National Radio Sales 100 Park Avenue 03/31/05 MCI International ( if combined) 100 Park Avenue & 17 Battery Place 10/31/01 & 8/31/04 TOTAL WHOLLY OWNED PORTFOLIO + ALLOCATED JV PROPERTIES % of % of % of Wholly Owned Wholly Wholly Aggregate Total Owned Owned SLG Share of SLG Share of Leased Leased Annualized Annualized Annualized Annualized Tenant Square Feet Square Feet Rent Rent ($) Rent($) Rent ------ ------------ ----------- ----- --------- -------- ----- The City of New York 236,753 3.04 2.47 5,340,670 5,340,670 2.17 BMW of Manhattan, Inc. 227,782 2.93 1.28 2,771,952 2,771,952 1.13 Loews Corp. 162,024 2.08 2.20 4,748,013 4,748,013 1.93 The Segal Company (Eastern States) Inc. 150,000 1.93 2.39 5,170,000 5,170,000 2.11 City University of New York-CUNY 143,061 1.84 1.56 3,373,812 3,373,812 1.37 Metro North Commuter Railroad Co. 134,687 1.73 1.50 3,251,712 3,251,712 1.32 St. Luke's Roosevelt Hospital 133,700 1.72 1.38 2,993,196 2,993,196 1.22 C.B.S., Inc. 127,320 1.64 1.11 2,396,016 2,396,016 0.98 CHF Industries 100,000 1.28 1.40 3,025,000 3,025,000 1.23 Coty Inc, 100,000 1.28 1.62 3,500,000 3,500,000 1.43 New York Presbyterian Hospital 99,650 1.28 1.13 2,447,534 2,455,577 1.00 Ross Stores 98,830 1.27 1.13 2,445,048 2,477,412 1.01 Ann Taylor Inc. 93,020 1.19 1.17 2,526,792 2,526,792 1.03 Crain Communications Inc. 90,531 1.16 1.38 2,978,840 2,978,840 1.21 Advanstar Communications 83,000 1.07 1.32 2,858,600 2,858,600 1.16 Parade Publications, Inc. 82,444 1.06 0.92 1,978,656 1,978,656 0.81 Ketchum, Inc. 80,971 1.04 1.43 3,091,480 3,091,480 1.26 Kallir, Phillips, Ross Inc. 80,000 1.03 1.22 2,635,292 2,635,292 1.07 UNICEF 80,000 1.03 1.20 2,592,750 2,592,750 1.06 Mt. Sinai Hospital/NYU Hospital Center 80,000 1.03 1.29 2,780,000 2,780,000 1.13 New York Life Insurance Company 75,373 0.97 1.17 2,523,438 2,523,438 1.03 Greater New York Hospital 74,937 0.96 1.01 2,187,019 2,187,019 0.89 Gibbs & Cox Inc. 69,782 0.90 0.87 1,871,052 1,871,052 0.76 Cipriani 42nd Street, LLC 69,703 0.90 1.16 2,500,000 2,500,000 1.02 Young & Rubicam, Inc. 67,097 0.86 1.07 2,322,886 2,322,886 0.95 - - - - TOTAL 2,740,665 35.20 34.37 Wholly Owned Portfolio - leased 7,785,929 216,207,062 JOINT VENTURE PROPERTIES (1) The City of New York (if combined) 284,753 6,424,666 5,881,584 2.99 Philip Morris Management Corporation 175,645 6,083,448 3,035,641 1.37 J&W Seligman & Co., Inc. 175,346 5,343,960 2,666,636 1.23 Visiting Nurse Service of NY 168,000 3,360,000 1,676,640 0.79 Information Builders Inc 88,571 1,957,956 977,020 0.45 Interep National Radio Sales 66,866 2,240,460 1,117,990 0.51 MCI International ( if combined) 123,584 4,732,777 3,754,436 0.76 -------- ---------- ---------- ----- TOTAL 1,082,765 30,143,267 93,460,111 33.93 WHOLLY OWNED PORTFOLIO + ALLOCATED JV PROPERTIES 245,555,321 (1) Consolidates SLG's prorata interest in the Annualized Rent of all joint ventures with wholly owned Annualized Rent. The prorata tenant exposure is then calculated as a percentage of this new total. 24
FIRST QUARTER - 2001 LEASING ACTIVITY AVAILABLE SPACE ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF ------------- ---------------- ----------- --------- VACANCY AT 12/31/00 204,879 ACQUIRED VACANCIES 469 Seventh Avenue 37,300 1370 Broadway 7,650 1 Park Avenue 27,390 ------ 72,340 EXPIRING SPACE OFFICE 180 Madison Avenue 5 8,992 70 West 36th Street 1 1,142 470 Park Ave South 1 7,722 1140 Sixth Avenue 1 2,057 110 East 42nd Street 1 1,115 1412 Broadway 4 7,308 321 West 44th Street 2 4,822 1466 Broadway 4 8,487 420 Lexington Avenue 5 4,743 - ------ TOTAL/WEIGHTED AVERAGE 24 46,388 MOVE OUTS OFFICE 1250 Broadway 1 4,820 1414 6th Avenue 1 2,653 1372 Broadway 1 1,050 1466 Broadway 7 6,409 420 Lexington Avenue 7 15,405 - ------- 18 32,297 RETAIL 1414 6th Avenue 1 2,772 440 Ninth Avenue 1 2,610 - ------ 2 5,382 EVICTED TENANTS OFFICE 420 Lexington Avenue 2 1,668 - 2 1,668 RELOCATING TENANTS 1466 Broadway 7 13,110 420 Lexington Avenue 4 2,862 - ------ 11 15,972 AVAILABLE SPACE OFFICE 55 96,325 RETAIL 2 5,382 - ------ TOTAL 57 101,707 AVAILABLE SPACE 378,926 PREV. ESCALATED ACTIVITY TYPE BUILDING ADDRESS RENTABLE SF RENT/RENTABLE SF*($'s) ------------- ---------------- ----------- ---------------------- VACANCY AT 12/31/00 ACQUIRED VACANCIES 469 Seventh Avenue 1370 Broadway 1 Park Avenue EXPIRING SPACE OFFICE 180 Madison Avenue 8,992 28.63 70 West 36th Street 1,500 28.66 470 Park Ave South 8,400 36.00 1140 Sixth Avenue 2,725 25.04 110 East 42nd Street 1,409 25.00 1412 Broadway 8,581 34.37 321 West 44th Street 5,535 13.50 1466 Broadway 9,590 38.07 420 Lexington Avenue 5,728 34.53 ------ ----- TOTAL/WEIGHTED AVERAGE 52,460 31.24 MOVE OUTS OFFICE 1250 Broadway 6,712 33.00 1414 6th Avenue 2,653 10.00 1372 Broadway 1,286 25.27 1466 Broadway 9,510 35.97 420 Lexington Avenue 19,541 34.82 ------- ----- 42,387 32.85 RETAIL 1414 6th Avenue 3,108 59.39 440 Ninth Avenue 3,050 9.20 ------ ---- 6,158 34.53 EVICTED TENANTS OFFICE 420 Lexington Avenue 2,062 41.49 2,062 41.49 RELOCATING TENANTS 1466 Broadway 17,586 32.60 420 Lexington Avenue 3,887 33.17 ------ ----- 21,473 32.70 AVAILABLE SPACE OFFICE 118,382 32.26 RETAIL 6,158 34.53 ------ ----- TOTAL 124,540 32.37 AVAILABLE SPACE * Escalated Rent is calculated as Total Annual Income less Electric Charges. 25
FIRST QUARTER - 2001 LEASING ACTIVITY LEASED SPACE RENT/ ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF RENTABLE SF RENTABLE SF*($'s) ------------- ---------------- ----------- --------- ----------- ----------------- AVAILABLE SPACE AS OF 12/31/00 378,926 RENEWING TENANTS OFFICE 180 Madison Avenue 2 3,214 3,214 40.00 1372 Broadway 1 768 935 49.74 1412 Broadway 1 1,057 1,400 40.00 420 Lexington Avenue 2 323 461 51.99 - ---- ---- -------------- TOTAL/WEIGHTED AVERAGE 6 5,362 6,010 42.43 RELOCATING TENANTS OFFICE 1466 Broadway 5 7,954 11,691 28.87 420 Lexington Avenue 2 7,276 10,451 45.59 - ------ ------- ------------- TOTAL/WEIGHTED AVERAGE 7 15,230 22,142 36.76 LESS 1466 BROADWAY 5 7,954 11,691 28.87 EXPANSION TENANTS OFFICE 555 West 57th Street 1 1,209 3,670 50.00 470 Park Ave South 1 7,722 8,824 36.00 110 East 42nd Street 1 1,115 1,660 38.00 440 Ninth Avenue 1 17,631 22,500 32.00 420 Lexington Avenue 2 2,520 3,600 49.58 - ------ ------ ------------- TOTAL/WEIGHTED AVERAGE 6 30,197 40,254 36.34 NEW TENANTS REPLACING OLD TENANTS OFFICE 180 Madison Avenue 2 4,730 4,730 39.68 1250 Broadway 1 4,820 6,712 47.00 70 West 36th Street 2 4,267 6,390 33.67 1140 Sixth Avenue 1 2,057 3,131 48.00 1412 Broadway 2 2,261 3,324 41.41 1466 Broadway 7 3,344 4,786 40.65 420 Lexington Avenue 5 9,271 13,045 49.71 - ------ ------- -------------- TOTAL/WEIGHTED AVERAGE 20 30,750 42,118 43.91 RETAIL 1414 6th Avenue 1 2,772 3,108 68.68 - ------ ------ ------------- TOTAL/WEIGHTED AVERAGE 1 2,772 3,108 68.68 TOTAL/WEIGHTED AVERAGE 39 81,539 110,524 39.64 PREV. ESCALATED T.I/SF ($'s) FREE RENT ACTIVITY TYPE BUILDING ADDRESS RENT/RENTABLE SF*($'s) RENTABLE SF**($'s) # OF MONTHS ------------- ---------------- ---------------------- ------------------ ----------- AVAILABLE SPACE AS OF 12/31/00 RENEWING TENANTS OFFICE 180 Madison Avenue 34.58 - 2 1372 Broadway 49.74 - 0 1412 Broadway 34.02 - 0 420 Lexington Avenue 37.27 6.54 0 ------------ ----- - TOTAL/WEIGHTED AVERAGE 37.01 0.50 0 RELOCATING TENANTS OFFICE 1466 Broadway 29.58 - 1 420 Lexington Avenue 32.85 7.01 0 ------------ ----- - TOTAL/WEIGHTED AVERAGE 31.12 3.31 0 LESS 1466 BROADWAY 29.58 - 0 EXPANSION TENANTS OFFICE 555 West 57th Street 17.26 - 0 470 Park Ave South 34.27 - 2 110 East 42nd Street 21.22 - 0 440 Ninth Avenue 16.78 35.00 0 420 Lexington Avenue 27.58 8.56 2 ------------ ----- - TOTAL/WEIGHTED AVERAGE 21.81 20.33 1 NEW TENANTS REPLACING OLD TENANTS OFFICE 180 Madison Avenue 26.07 4.84 1 1250 Broadway 33.00 4.75 0 70 West 36th Street 22.15 7.82 11 1140 Sixth Avenue 25.04 - 0 1412 Broadway 34.78 - 2 1466 Broadway 34.86 - 0 420 Lexington Avenue 29.30 6.28 5 ------------ ----- - TOTAL/WEIGHTED AVERAGE 29.19 4.43 1 RETAIL 1414 6th Avenue 59.39 9.21 0 ------------ ----- - TOTAL/WEIGHTED AVERAGE 59.39 9.21 0 TOTAL/WEIGHTED AVERAGE 27.31 9.78 1 26
RENT/ ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF RENTABLE SF RENTABLE SF*($'s) ------------- ---------------- ----------- --------- ----------- ----------------- NEW TENANTS REPLACING VACANCIES OFFICE 1370 Broadway 1 5,491 5,491 44.00 180 Madison Avenue 1 4,711 4,711 45.00 1372 Broadway 1 2,441 2,911 34.50 1466 Broadway 2 4,978 6,890 29.63 - ------ ------ --------- TOTAL/WEIGHTED AVERAGE 5 17,621 20,003 37.90 LEASED SPACE OFFICE 44 99,160 130,527 39.37 RETAIL 1 2,772 3,108 68.68 TOTAL 45 101,932 133,635 40.05 TOTAL MINUS RELOS 40 93,978 121,944 41.63 ----------------- SOLD VACANCIES SUB-TOTAL AVAILABLE SPACE @ 3/31/01 276,994 - ----------------------------------- HOLDOVER TENANTS 180 Madison Avenue 1 1,048 1,048 21.99 1412 Broadway 2 4,815 5,095 37.94 321 West 44th Street 1 848 1,100 20.36 1466 Broadway 3 8,143 9,015 38.35 - ------ ------ --------- 7 14,854 16,258 35.95 TOTAL AVAILABLE SPACE @ 3/31/01 262,140 - ------------------------------- EARLY RENEWALS OFFICE 1370 Broadway 1 6,200 6,200 50.65 1140 Sixth Avenue 1 2,282 3,697 43.50 - ------ ------ --------- 2 8,482 9,897 47.98 RETAIL 100 Park Avenue 1 8,696 8,696 129.50 - ------ ------ --------- 1 8,696 8,696 129.50 RENEWALS EXPIRED/RENEWED 6 5,362 6,010 42.43 EARLY RENEWALS OFFICE 2 8,482 9,897 47.98 EARLY RENEWALS RETAIL 1 8,696 8,696 129.50 - TOTAL 9 22,540 24,603 75.44 PREV. ESCALATED T.I/SF($'s) FREE RENT ACTIVITY TYPE BUILDING ADDRESS RENT/RENTABLE SF*($'s) RENTABLE SF**($'s) # OF MONTHS ------------- ---------------- ---------------------- ------------------ ----------- NEW TENANTS REPLACING VACANCIES OFFICE 1370 Broadway - - 0 180 Madison Avenue - 20.00 1 1372 Broadway - - 0 1466 Broadway - - 0 ---------------- -- - TOTAL/WEIGHTED AVERAGE - 4.71 0 LEASED SPACE OFFICE 27.31 9.01 1 RETAIL 59.39 9.21 1 TOTAL 28.19 9.01 1 TOTAL MINUS RELOS 28.03 9.87 ----------------- SOLD VACANCIES SUB-TOTAL AVAILABLE SPACE @ 3/31/01 HOLDOVER TENANTS 180 Madison Avenue 21.99 - 0 1412 Broadway 37.94 - 0 321 West 44th Street 20.36 - 0 1466 Broadway 38.35 - 0 ---------------- -- - 35.95 - 0 TOTAL AVAILABLE SPACE @ 3/31/01 EARLY RENEWALS OFFICE 1370 Broadway 34.12 - 3 1140 Sixth Avenue 38.64 - 0 ---------------- -- - 35.81 - 2 RETAIL 100 Park Avenue 44.08 - 0 ---------------- -- - 44.08 - 0 RENEWALS EXPIRED/RENEWED 37.01 0.50 0 EARLY RENEWALS OFFICE 35.81 - 2 EARLY RENEWALS RETAIL 44.08 - 0 TOTAL 39.03 0.12 0 * Annual Base Rent ** Escalated Rent is calculated as Total Annual Income less Electric Charges. 27
ANNUAL LEASE EXPIRATIONS CONSOLIDATED PROPERTIES NUMBER OF SQUARE PERCENTAGE OF ANNUALIZED RENT OF EXPIRING FOOTAGE OF TOTAL LEASED SQ. EXPIRING LEASES YEAR OF LEASE EXPIRATION TENTANTS* EXPIRING FT. ($'s) ------------------------ --------- ---------- ---------------- ------------------ In 1st Quarter 2001* 12 32,756 0.42% 1,210,534 In 2nd Quarter 2001 47 63,253 0.81% 1,402,953 In 3rd Quarter 2001 47 197,717 2.54% 5,381,681 In 4th Quarter 2001 30 112,315 1.44% 2,627,361 -------------------------------------------------------------------------------------- TOTAL 2001 136 406,041 5.22% 10,622,529 2002 136 662,128 8.50% 20,756,672 2003 136 565,171 7.26% 15,423,193 2004 92 535,187 6.87% 15,535,240 2005 99 750,262 9.64% 23,430,432 2006 45 402,521 5.17% 11,146,729 2007 36 208,739 2.68% 6,489,272 2008 33 575,851 7.40% 17,727,936 2009 35 700,251 8.99% 19,274,756 2010 47 1,245,860 16.00% 36,135,415 THEREAFTER 46 1,733,918 22.27% 39,664,880 -------------------------------------------------------------------------------------- 841 7,785,929 100.00% 216,207,054 ====================================================================================== ANNUALIZED RENT PER YEAR 2001 WEIGHTED LEASED SQUARE FOOT OF AVERAGE ASKING RENT YEAR OF LEASE EXPIRATION EXPIRING LEASES $/PSF** $/PSF ------------------------ ----------------------- ------------------ In 1st Quarter 2001* 36.96 40.03 In 2nd Quarter 2001 22.18 40.47 In 3rd Quarter 2001 27.22 42.73 In 4th Quarter 2001 23.39 40.07 ---------------------------------------------------- TOTAL 2001 26.16 41.42 2002 31.35 45.65 2003 27.29 41.57 2004 29.03 42.04 2005 31.23 43.44 2006 27.69 42.00 2007 31.09 43.80 2008 30.79 40.18 2009 27.53 44.10 2010 29.00 44.13 THEREAFTER 22.88 41.97 ---------------------------------------------------- 27.88 42.83 ==================================================== *Tenants may have multiple leases. **Represents in place annualized rent allocated by year of maturity. 28
ANNUAL LEASE EXPIRATIONS JOINT VENTURE PROPERTIES PERCENTAGE OF NUMBER OF SQUARE FOOTAGE OF TOTAL LEASED ANNUALIZED RENT OF YEAR OF LEASE EXPIRATION EXPIRING TENANTS* EXPIRING LEASES SQ. FT. EXPIRING LEASES($'s) ------------------------ ----------------- ----------------- ------------- -------------------- In 1st Quarter 2001* 3 2,148 0.10% 45,251 In 2nd Quarter 2001 3 4,506 0.21% 96,233 In 3rd Quarter 2001 4 8,487 0.40% 200,652 In 4th Quarter 2001 5 4,670 0.22% 120,172 ------------------------------------------------------------------------------- TOTAL 2001 15 19,811 0.94% 462,308 2002 32 161,589 7.65% 3,566,641 2003 21 242,602 11.48% 6,197,787 2004 20 165,781 7.85% 5,216,290 2005 14 174,761 8.27% 5,134,412 2006 16 274,913 13.01% 6,375,888 2007 9 279,088 13.21% 9,530,709 2008 12 159,110 7.53% 4,331,573 2009 16 412,383 19.51% 12,919,841 2010 12 153,596 7.27% 5,794,967 THEREAFTER 5 69,552 3.29% 2,079,582 ------------------------------------------------------------------------------- 172 2,113,186 100.00% 61,609,998 =============================================================================== ANNUALIZED RENT PER YEAR 2001 WEIGHTED LEASED SQUARE FOOT OF AVERAGE ASKING RENT YEAR OF LEASE EXPIRATION EXPIRING LEASES $/PSF** $/PSF ------------------------ ----------------------- ------------------- In 1st Quarter 2001* 21.07 41.46 In 2nd Quarter 2001 21.36 43.00 In 3rd Quarter 2001 23.64 42.60 In 4th Quarter 2001 25.73 43.00 ----------------------------------------------------------- TOTAL 2001 23.34 42.66 2002 22.07 43.48 2003 25.55 43.34 2004 31.46 47.50 2005 29.38 49.63 2006 23.19 45.00 2007 34.15 52.21 2008 27.22 46.78 2009 31.33 49.16 2010 37.73 49.21 THEREAFTER 29.89 46.31 ----------------------------------------------------------- 29.15 47.50 =========================================================== *Tenants may have multiple leases. **Represents in place annualized rent allocated by year of maturity. 29
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997 Net Rentable 1998 Acquisitions Property Type of Ownership Submarket s.f. - ----------------- -------- ----------------- --------- ---- Mar-98 420 Lexington Operating Sublease Grand Central North 1,188,000 Mar-98 1466 Broadway Fee Interest Times Square 289,000 Mar-98 321 West 44th Fee Interest Times Square 203,000 May-98 711 3rd Avenue Operating Sublease Grand Central North 524,000 Jun-98 440 9th Avenue Fee Interest Garment 339,000 Aug-98 1412 Broadway Fee Interest Times Square South 389,000 1999 ACQUISITIONS Jan-99 420 Lexington Leasehold Sub-leasehold Grand Central North Jan-99 555 West 57th - 65% JV Fee Interest Midtown West 941,000 May-99 90 Broad Street - 35% JV Fee Interest Financial 339,000 May-99 THE MADISON PROPERTIES: Fee Interest Grand Central South ----------------------- 286 Madison Avenue 112,000 290 Madison Avenue 36,800 292 Madison Avenue 187,000 Aug-99 1250 Broadway - 50% JV Fee Interest Penn Station 670,000 Nov-99 555 West 57th - remaining 35% Fee Interest Midtown West - 2000 ACQUISITIONS Feb-00 100 Park Avenue Fee Interest Grand Central South 834,000 Dec-00 180 Madison Avenue Fee Interest Grand Central South 265,000 CONTRIBUTION TO JV May-00 321 West 44th Fee Interest Times Square 203,000 2001 ACQUISITIONS Jan-01 1370 Broadway Fee Interest Garment 255,000 Jan-01 1 Park Avenue Various Interests Grand Central South 913,000 Jan-01 469 7th Avenue - 35% JV Fee Interest Penn Station 253,000 % Leased % Leased Acquisition 1998 Acquisitions Property at Acquisition 03/31/01 Price ($'s) - ----------------- -------- -------------- -------- ----------- Mar-98 420 Lexington 83 99 78,000,000 Mar-98 1466 Broadway 87 83 64,000,000 Mar-98 321 West 44th 96 96 17,000,000 May-98 711 3rd Avenue 79 100 65,600,000 Jun-98 440 9th Avenue 76 98 32,000,000 Aug-98 1412 Broadway 90 97 82,000,000 1999 ACQUISITIONS Jan-99 420 Lexington Leasehold 27,300,000 Jan-99 555 West 57th - 65% JV 100 100 66,700,000 May-99 90 Broad Street - 35% JV 82 100 34,500,000 May-99 THE MADISON PROPERTIES: 50,000,000 ----------------------- 286 Madison Avenue 99 98 290 Madison Avenue 86 100 292 Madison Avenue 97 100 Aug-99 1250 Broadway - 50% JV 97 100 93,000,000 Nov-99 555 West 57th - remaining 35% 34,100,000 2000 ACQUISITIONS Feb-00 100 Park Avenue 97 100 192,000,000 Dec-00 180 Madison Avenue 87 89 41,250,000 CONTRIBUTION TO JV May-00 321 West 44th 98 96 28,400,000 2001 ACQUISITIONS Jan-01 1370 Broadway 97 99 50,500,000 Jan-01 1 Park Avenue 97 97 233,900,000 Jan-01 469 7th Avenue - 35% JV 98 90 45,700,000 (1) This includes the issuance of 44,772 OP units (valued at $1mm) and $20mm for a 50% interest in the Building Fee (purchased 7/98). (2) This includes the assumption of mortgage debt for $28.6mm (65% of $44mm). 30
SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999 Net Rentable Sales Sales 2000 Sales Property Type of Ownership Submarket s.f. Price ($'s) Price ($'s/SF) - ---------- -------- ----------------- --------- ---- ----------- -------------- Feb-00 29 West 35th Street Fee Structure Garment 78,000 $11,700,000 $150 Mar-00 36 West 44th Street Fee Structure Grand Central 178,000 $31,500,000 $177 May-00 321 West 44th Street Fee Structure Times Square 203,000 $28,400,000 $140 Nov-00 90 Broad Street Fee Structure Financial 339,000 $60,000,000 $177 Dec-00 17 Battery South Fee Structure Financial 392,000 $53,000,000 $135 -------- ----------- 1,190,000 $184,600,000 2001 SALES Jan-01 633 Third Ave Fee Structure Grand Central North 40,623 $13,250,000 $326 31