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: July 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 July 24, 2001 announcing the Company's results for the second quarter ended June 30, 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 July 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: July 25, 2001 3
EXHIBIT 99.1 [GRAPHIC]
================================================================================ [SL GREEN LOGO] ================================================================================ 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. 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.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 Quarter ended June 30, 2001 that will subsequently be released on Form 10-Q to be filed on or before August 15, 2001. 2
================================================================================ TABLE OF CONTENTS [SL GREEN LOGO] ================================================================================ Highlights of Current Period Financial Performance 4-9 Unaudited Financial Statements Financial Highlights 10 Balance Sheets 11-12 Statements of Operations 13-14 Joint Venture Statements 15-16 Statement of Stockholders' Equity 17 Funds From Operations 18 Selected Financial Data 19-21 Summary of Debt and Ground Lease Arrangements 22-23 Property Data Composition of Property Portfolio 24 Top Tenants 25 Leasing Activity Summary 26-29 Lease Expiration Schedule 30-31 Summary of Acquisition/Disposition Activity 32-33 Supplemental Definitions 34 Corporate Information 35 3
================================================================================ CORPORATE PROFILE [SL GREEN LOGO] ================================================================================ SL Green Realty Corporation (the "Company") was formed on August 20, 1997 to continue the commercial real estate business of SL Green Properties Inc. founded in 1980 by Stephen L. Green, our current Chairman and Chief Executive Officer. For more than 20 years SL Green Properties Inc. has been engaged in the business of owning, managing, leasing, acquiring and repositioning office properties in Manhattan. The Company's investment focus is to create value through the acquisition, redevelopment and repositioning of Manhattan office properties and releasing and managing these properties for maximum cash flow. Looking forward, SL Green Realty Corp. will continue its opportunistic investment philosophy through 3 established business lines: wholly owned property investments, co-ownership in properties with institutional partners, and structured finance investments. This three-legged investment strategy will allow SL Green to balance the components of its portfolio to take advantage of each stage in the business cycle. Today, the Company is the only fully integrated, self-managed, self-administered Real Estate Investment Trust (REIT) exclusively focused on owning and operating office buildings in Manhattan. SL Green is a pure play for investors to own a piece of New York. 4
================================================================================ FINANCIAL HIGHLIGHTS SECOND QUARTER 2001 UNAUDITED [SL GREEN LOGO] ================================================================================ EARNINGS PERFORMANCE Second quarter Funds From Operations (FFO) were $23.4 million or $0.80 per share (diluted), 23% better than one year ago, when FFO was $18.3 million or $0.65 per share (diluted). For the six months ended June 30, 2001, FFO was $44.6 million or $1.53 per share (diluted), a 20% improvement over 2000 when FFO was $35.5 million or $1.27 per share (diluted). The 23% ($5.1 million) growth in second quarter FFO reflects contributions from the following: (1) Consolidated GAAP NOI increased $8.2 million: o $6.2 million from 2001 acquisitions of One Park Avenue, 1370 Broadway and 317 Madison Avenue. o $2.3 million increase from same store properties as GAAP revenue increased $2.8 million, net of change in credit loss, (i) $1.8 million in rental revenue as GAAP replacement rents which were 55% higher than the previously fully escalated rents and (ii) increased escalation and reimbursement income ($1.4 million) related to the increased recovery ($0.4 million) of higher electric expense resulting from the higher electric rates, and increased passthroughs ($0.8 million). The electric recovery rate for the quarter was 90%. Revenue gains were partially offset by $0.5 million of higher operating costs that resulted primarily from higher utility costs ($0.3 million). o $1.4 million increase from the Company's joint ventures primarily due to the contribution of One Park Avenue to a joint venture and the purchase of 469 Seventh Avenue and 180 Madison Avenue, partially offset by the sale of 90 Broad Street. o $1.9 million decrease from wholly-owned properties sold (17 Battery South) or contributed to a joint venture (321 West 44th Street). (2) Investment income increased $1.5 million due to increased investment in structured finance ($1.1 million) and interest ($0.4 million). (3) Higher interest costs ($3.1 million) associated with: higher average debt levels due to net acquisition and new investment debt activity ($3.7 million), the higher average debt levels due to the funding of ongoing capital projects and working capital requirements ($0.2 million), partially off-set by lower interest rates from floating rate debt ($0.8 million). (4) MG&A increased $0.5 million from higher personnel costs due to several executive management changes. (5) Non-real estate depreciation increased $0.1 million due to additional amortization of financing costs associated with the company's new line of credit. (6) Equity in income from affiliates decreased from $0.4 million to a loss of $0.6 million. The loss is 5
================================================================================ FINANCIAL HIGHLIGHTS SECOND QUARTER 2001 UNAUDITED [SL GREEN LOGO] ================================================================================ primarily due to the operations of e.Emerge as licensing rates are currently lower than expected. For the quarter, net income available to common shareholders, adjusted for property sales, extraordinary items and the cumulative effect of accounting change increased 38% to $12.5 million, or $0.51 per share (diluted) as compared to $8.6 million, or $0.37 per share (diluted), for the same period in the previous year. For the six months ended June 30, 2001, adjusted net income increased 29% to $22.9 million, or $0.91 per share (diluted), as compared to $16.0 million, or $0.72 per share (diluted), for the same period in the previous year. QUARTERLY OPERATING MARGINS Cash NOI in the 2001 "same store" portfolio rose $4.0 million (17%) from $23.9 million in 2000 to $27.9 million in 2001, and operating margins before ground rent improved from 55.3% to 60.2%. GAAP NOI increased by $2.3 million, approximately 9% over a year ago, and GAAP operating margins after ground rent improved from 56.9% to 58.2%. One of the primary drivers increasing same store cash NOI is the $2.8 million (6%) increase in total revenue combined with a $1.8 million reduction in free and straight-line rent, resulting in a $4.6 million (10.4%) increase in cash revenue. The decrease in free rent ($1.3 million) is primarily due to 711 Third Avenue ($0.8 million), 420 Lexington Avenue ($0.4 million) and 440 Ninth Avenue ($0.3 million). The decrease in free rent is due to several new large tenants (Ketchum at 711 Third Avenue and New York Life at 420 Lexington Avenue) having had free rent in 2000 and now pay cash rents in 2001. The $2.8 million increase in same store revenue is due to: 1. An increase in rent revenue of $1.5 million resulting from higher replacement rents on approximately 425,000 square feet that were 55% greater than previously fully escalated rents. 2. Higher escalation and reimbursement income ($1.4 million), consisting of electric reimbursement ($0.4 million) and increased passthrough of operating costs ($0.8 million). Partially offsetting these revenue increases was a decrease in signage rent ($0.4 million). The Company's consolidated second quarter EBITDA margins before ground rent improved to 68.8% compared to 64.8% for 2000. The EBITDA margin after ground rent improved to 63.6% as compared to 58.8% in the same period of the prior year. These margin improvements are attributable to (i) GAAP NOI growth resulting from leasing due to average improvement in replacement rents over this 12 month period of 49% versus previously escalated rents, (ii) income from unconsolidated joint ventures, (iii) income from structured finance and investment 6
income and (iv) property acquisitions, net of property dispositions. QUARTERLY LEASING HIGHLIGHTS Vacancy at March 31, 2001 was 276,994 useable square feet net of holdover tenants. During the quarter, 79,975 additional useable office square feet became available at an average escalated cash rent of $30.87 per rentable square foot and the Company acquired 19,393 usable square feet through the 317 Madison Avenue acquisition. Space available before holdovers to lease during the quarter totaled 394,214 useable square feet, or 3.9% of the total portfolio. During the second quarter, 33 leases were signed totaling 48,930 useable office square feet with new cash rents averaging $42.52 per rentable square foot (exclusive of storage and retail space). Replacement rents were 47% greater than rents on previously occupied space, which had a fully escalated cash rent averaging $28.96 per rentable square foot. Average tenant concessions were one month of free rent and an allowance of $1.13 per rentable square foot. Including early renewals and excluding holdover tenants, the tenant renewal rate was 74%. 17 leases have expired comprising 28,644 useable square feet that are in a holdover status. In addition, the Company sold 19,625 useable square feet of vacancy at 1412 Broadway. This results in 316,397 useable square feet (net of holdovers) remaining available as of June 30, 2001. The Company signed 5 leases for 19,989 useable square feet that were for early renewals. The early renewals for space were not scheduled to become available until after the fourth quarter of 2001. The Company was able to renew the current office tenants at an average cash rent of $38.35, representing an increase of 13% over the previously fully escalated rents of $33.99. Excluding a set option on space at 1414 Avenue of the Americas, the average rent would have been $43.03 per square foot representing an increase of 16.0%. NEW ACTIVITY COMMON SHARE ISSUANCE On July 19th, the Company announced that it had sold 5 million primary common shares at a gross price of $30.66 per share. After the underwriter's discount, net proceeds to the Company totaled $149.0 million, or $29.80 per share. The immediate use of proceeds will be to pay down the Company's unsecured revolving credit facility. After giving effect to the issuance and the completed third quarter activity, the Company's pro-forma debt to market capitalization is 29.10% and the lines of credit availability is $267.3 million with an outstanding balance of $71.0 million on the unsecured line of credit and $21.7 million on the secured line of credit. Following the offering, the Company's outstanding basic common shares totaled 29.9 million and weighted-average fully diluted shares totaled 37.2 million. 7
REAL ESTATE ACTIVITY 317 MADISON AVENUE ACQUISITION In June 2001, the Company closed on the acquisition of 317 Madison Avenue for an aggregate purchase price of $105.6 million ($235 per square foot). The property was acquired from Richfield Investment Company. The 22-story building is located at the Northeast corner of Madison Avenue and 42nd Street with direct access to Grand Central Station. The acquisition was funded, in part, with proceeds from the sale of 1412 Broadway in a reverse 1031 tax-free exchange, thereby deferring the capital gain resulting from such sale. The balance of the acquisition was funded using the Company's line of credit. The Company expects to complete a $65-$70 million first mortgage financing during the third quarter with the proceeds repaying the unsecured line of credit. ONE PARK JOINT VENTURE In May 2001, the Company announced that it entered into a joint venture with respect to the ownership of the Company's interests in One Park Avenue with SITQ Immobilier, a subsidiary of Caisse de Depot et Placement du Quebec, the largest pension fund in Canada with over Cdn $125 billion in assets under management. Under the terms of the joint venture, SITQ Immobilier purchased a 45% interest in the Company's interests in the property based upon a gross aggregate price of $233.9 million and yielding proceeds of approximately $41.0 million, inclusive of closing costs and reimbursements. The transaction enables the Company to free up capital for additional high growth opportunities while enhancing the yield on its investment interests in One Park Avenue through various fee arrangements with respect to the investment. 1412 BROADWAY SALE In June 2001, the Company completed the previously announced sale of 1412 Broadway for $90.7 million, to an affiliate of JER Partners, a subsidiary of the J.E. Robert Companies of McLean, VA. As part of the transaction, the Company retained a participating preferred equity position of $8.0 million in the property. The Company realized a book gain on the sale in the amount of approximately $4.1 million (before the write off of a $1.0 million loss on the related initial financing arrangement). Proceeds from the sale of 1412 Broadway were used to fund the acquisition of 317 Madison Avenue in a reverse 1031 tax-free exchange allowing the Company to defer all of the taxable gain. STRUCTURED FINANCE ACTIVITY o Three separate transactions totaling $85.7 million were originated at a retained yield of 15.8% o $51.9 million repaid yielding a 25.3% unlevered IRR o $25.0 million participation to PREI under the investment program 8
PREI INVESTMENT PROGRAM The Company has entered into a non-exclusive investment program with Prudential Real Estate Investors (PREI) that will invest up to $250 million in structured finance investments collateralized by New York City commercial real estate. Under the terms of the program, the Company and PREI will co-invest by purchasing 50% participation interests in structured finance investments originated, managed and serviced by the Company. The investment program will target mezzanine loans, first mortgage bridge loans, preferred equity, and junior mortgage participations in prime, well-located commercial real estate primarily in Midtown Manhattan. The Company will enhance its total return on investment through fees charged to the venture for origination, asset management and servicing as well as incentive returns based upon the overall performance of the investments. CAPITALIZATION AND LIQUIDITY The Company's dividend payout ratio was 48.4% of FFO and 46.2% of FAD before first cycle leasing costs. Excluding the 2 Grand Central Terminal original issue discount acceleration of $5.6 million, or $0.17 per share, FAD would have increased 63% and resulted in a normalized payout ratio of 61.5%. The Company's annual dividend distribution rate is $1.55. The Company declared a quarterly dividend distribution on June 29, 2001 of $0.3875 per common share. The Company also declared a dividend of $0.50 per share of Preferred Income Equity Redeemable Stock for shareholders of record as of June 29, 2001. Both dividends were paid on July 13, 2001. OTHER The Company has changed "Same Store" results to include all properties as of 1/1/01 that were owned 12 months or more. Subsequently, the same store group has been adjusted to remove properties sold during the year and will include the following properties: 2001 SAME STORE 673 First Avenue 1140 Avenue of the Americas 420 Lexington Avenue 470 Park Avenue South 50 West 23rd Street 1466 Broadway 70 West 36th Street 555 West 57th Street 440 Ninth Avenue 1414 Avenue of the Americas 711 Third Avenue 1412 Broadway 1372 Broadway 110 East 42nd Street 292 Madison Avenue 286 Madison Avenue 290 Madison Avenue 9
=============================================================================== FINANCIAL HIGHLIGHTS [SL Green Logo] Second Quarter Unaudited =============================================================================== THREE MONTHS ENDED JUNE 30 2001 2000 OPERATIONAL INFORMATION - ------------------------------------------------------------------------------------------------------------- Total Revenues (000's) $66,476 $56,494 FUNDS FROM OPERATIONS FFO per share- diluted $0.80 $0.65 FFO Payout 48.4% 55.8% FUNDS AVAILABLE FOR DISTRIBUTION FAD per share- diluted $0.84 $0.41 FAD Payout 46.2% 88.4% NET INCOME AVAILABLE TO COMMON SHAREHOLDERS per share - diluted $0.60 $0.53 DIVIDENDS PER SHARE $0.3875 $0.3625 SAME-STORE CASH NOI INCREASE 17% 22% CAPITALIZATION DATA (000'S) Total Assets $1,319,665 $1,160,842 Total Debt $608,649 $492,046 Minority Interest $43,546 $42,544 Preferred Stock $111,002 $110,561 Quarter End Closing Price - SLG Common Stock $30.31 $26.73 Total Market Capitalization $1,759,723 $1,429,570 RATIOS - ------------------------------------------------------------------------------------------------------------- Consolidated Debt to Total Market Capitalization 39.36% 37.21% Joint Venture Debt Allocated 46.72% 41.91% PORTFOLIO - ------------------------------------------------------------------------------------------------------------- TOTAL BUILDINGS DIRECTLY OWNED 19 19 JOINT VENTURES 6 4 - - 25 23 TOTAL SF 10,105,800 9,130,800 END OF QUARTER OCCUPANCY 98% 98% 10
=============================================================================== COMPARATIVE BALANCE SHEETS [SL Green Logo] Unaudited (000's omitted) =============================================================================== 6/30/2001 6/30/2000 +/- 3/31/2001 --------- --------- --- --------- Assets - ---------------------------------------------------------------------------------------------------------------------------------- Commercial real estate properties, at cost: Land & land interests 140,657 131,991 8,666 165,814 Buildings & improvements fee interest 683,889 646,150 37,739 785,280 Buildings & improvements leasehold 141,670 135,886 5,784 140,951 Buildings & improvements under capital lease 12,208 12,208 - 12,208 ----------- ----------- ----------- 978,424 926,235 52,189 1,104,253 Less accumulated depreciation (86,585) (68,653) (17,932) (81,409) ----------- ----------- ----------- 891,839 857,582 34,257 1,022,844 Other Real Estate Investments: Investment in unconsolidated joint ventures 124,495 63,850 60,645 72,673 Mortgage loans and preferred equity investments 97,832 76,962 20,870 92,982 Properties held for sale - - - 82,153 Cash and cash equivalents 43,742 15,317 28,425 8,078 Restricted cash: Tenant security 26,408 18,081 8,327 20,603 Escrows & other 11,108 13,045 (1,937) 22,842 Tenant and other receivables, net of $3,049 reserve at 6/30/01 7,008 6,851 157 8,940 Related party receivables 955 781 174 1,046 Deferred rents receivable, net of reserve for tenant credit loss of $5,441 at 6/30/01 49,354 42,867 6,487 46,843 Investment in and advances to affiliates 7,932 7,527 405 6,919 Deferred costs, net 37,446 37,922 (476) 40,940 Other assets 21,546 20,057 1,489 16,650 ----------- ----------- ----------- TOTAL ASSETS 1,319,665 1,160,842 158,823 1,443,513 ========================== =========== +/- 12/31/2000 +/- --- ---------- --- Assets - --------------------------------------------------------------------------------------------------------------------- Commercial real estate properties, at cost: Land & land interests (25,157) 125,572 15,085 Buildings & improvements fee interest (101,391) 618,637 65,252 Buildings & improvements leasehold 719 139,393 2,277 Buildings & improvements under capital lease - 12,208 - ----------- (125,829) 895,810 82,614 Less accumulated depreciation (5,176) (78,432) (8,153) ----------- (131,005) 817,378 74,461 Other Real Estate Investments: Investment in unconsolidated joint ventures 51,822 65,031 59,464 Mortgage loans and preferred equity investments 4,850 51,293 46,539 Properties held for sale (82,153) 10,895 (10,895) Cash and cash equivalents 35,664 10,793 32,949 Restricted cash: Tenant security 5,805 19,479 6,929 Escrows & other (11,734) 67,344 (56,236) Tenant and other receivables, net of $3,049 reserve at 6/30/01 (1,932) 7,580 (572) Related party receivables (91) 917 38 Deferred rents receivable, net of reserve for tenant credit loss of $5,441 at 6/30/01 2,511 45,816 3,538 Investment in and advances to affiliates 1,013 6,373 1,559 Deferred costs, net (3,493) 40,113 (2,667) Other assets 4,896 18,142 3,404 ----------- TOTAL ASSETS (123,848) 1,161,154 158,511 =========== ================================================================================ COMPARATIVE BALANCE SHEETS [SL Green Logo] Unaudited (000's omitted) ================================================================================ 6/30/2001 6/30/2000 +/- 3/31/2001 +/- --------- --------- --- --------- --- LIABILITIES AND STOCKHOLDERS' EQUITY - ---------------------------------------------------------------------------------------------------------------------------------- Mortgage notes payable 325,411 346,294 (20,883) 528,535 (203,124) Revolving credit facilities 283,238 145,752 137,486 211,926 71,312 Derivative Instruments-fair value 2,383 - 2,383 2,814 (431) Accrued interest payable 2,533 1,823 710 3,676 (1,143) Accounts payable and accrued expenses 20,922 26,851 (5,929) 22,122 (1,200) 11
Deferred compensation awards 1,838 - 1,838 1,838 - Deferred revenue 1,587 1,838 (251) 2,073 (486) Capitalized lease obligations 15,437 15,165 272 15,369 68 Deferred land lease payable 13,866 12,493 1,373 13,512 354 Dividend and distributions payable 12,796 12,010 786 12,746 50 Security deposits 20,776 18,104 2,672 20,137 639 ------------ ------------ ------------ Total Liabilities 700,787 580,330 120,457 834,748 (133,961) Minority interest (2,281 units outstanding) 43,546 42,544 1,002 43,062 484 8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, 4,600 outstanding 111,002 110,561 441 110,888 114 STOCKHOLDERS' EQUITY - ----------------------------------------------------------------------------------------------------------------------------------- Common stock, $.01 par value 100,000 shares authorized, 24,859 issued and outstanding at 6/30/01 249 244 5 248 1 Additional paid - in capital 436,262 425,837 10,425 433,482 2,780 Deferred compensation plans & officer loans (9,072) (6,239) (2,833) (9,400) 328 Accumulated Other Comprehensive Income (loss) (1,896) - (1,896) (2,409) 513 Retained earnings 38,787 7,565 31,222 32,894 5,893 ------------ ------------ ------------ Total Stockholders' Equity 464,330 427,407 36,923 454,815 9,515 ------------ ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,319,665 1,160,842 158,823 1,443,513 (123,848) ============================ ============= 12/31/2000 +/- ---------- --- LIABILITIES AND STOCKHOLDERS' EQUITY - ---------------------------------------------------------------------------------- Mortgage notes payable 414,342 (88,931) Revolving credit facilities 46,374 236,864 Derivative Instruments-fair value - 2,383 Accrued interest payable 2,349 184 Accounts payable and accrued expenses 24,818 (3,896) Deferred compensation awards 2,833 (995) Deferred revenue 1,112 475 Capitalized lease obligations 15,303 134 Deferred land lease payable 13,158 708 Dividend and distributions payable 12,678 118 Security deposits 19,014 1,762 ------------ Total Liabilities 551,981 148,806 Minority interest (2,281 units outstanding) 43,326 220 8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, 4,600 outstanding 110,774 228 STOCKHOLDERS' EQUITY - ---------------------------------------------------------------------------------- Common stock, $.01 par value 100,000 shares authorized, 24,859 issued and outstanding at 6/30/01 246 3 Additional paid - in capital 428,698 7,564 Deferred compensation plans & officer loans (5,037) (4,035) Accumulated Other Comprehensive Income (loss) - (1,896) Retained earnings 31,166 7,621 ------------ Total Stockholders' Equity 455,073 9,257 ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,161,154 158,511 ============ 12
=============================================================================== COMPARATIVE STATEMENTS OF OPERATIONS [SL Green Logo] Unaudited ($000'S OMITTED) =============================================================================== Three Months Ended Three Months Ended Six Months Ended JUN-01 JUN-00 +/- % MAR-01 JUN-01 ------ ------ --- - ------ ------ REVENUES - ----------------------------------------------------------------------------------------------------------------------------------- Rental revenue, net 51,208 42,740 8,468 20% 51,991 103,199 Free rent 1,136 2,394 (1,258) -53% 1,948 3,084 Amortization of free rent (816) (840) 24 -3% (838) (1,654) --------- --------- --------- --------- Net free rent 320 1,554 (1,234) -79% 1,110 1,430 - Straight-line rent 2,335 2,356 (21) -1% 2,551 4,886 Allowance for S/L tenant credit loss (458) (240) (218) 91% (649) (1,107) Escalation and reimbursement revenues 7,296 5,367 1,929 36% 8,057 15,353 Signage rent 179 597 (418) -70% 350 529 Investment income 5,046 3,923 1,123 29% 3,274 8,320 Other income 550 197 353 179% 310 860 --------- --------- --------- --------- TOTAL REVENUES, NET 66,476 56,494 9,982 18% 66,994 133,470 Equity in income/(loss) from affiliates (658) 369 (1,027) -279% (269) (927) Equity in income from unconsolidated joint ventures 1,756 782 974 125% 1,513 3,269 EXPENSES - ----------------------------------------------------------------------------------------------------------------------------------- Operating expenses 14,081 13,443 638 5% 15,826 29,907 Ground rent 3,159 3,159 - 0% 3,159 6,318 Real estate taxes 7,958 7,053 905 13% 8,180 16,138 Marketing, general and administrative 3,668 3,190 478 15% 3,547 7,215 --------- --------- --------- --------- TOTAL OPERATING EXPENSES 28,866 26,845 2,021 8% 30,712 59,578 EBITDA 38,708 30,800 7,908 26% 37,526 76,234 - Interest 13,171 10,053 3,118 31% 13,897 27,068 Depreciation and amortization 9,189 8,403 786 9% 9,720 18,909 --------- --------- --------- --------- INCOME BEFORE MINORITY INTEREST 16,348 12,344 4,004 32% 13,909 30,257 Extraordinary loss- early debt extinguishment - (430) 430 -100% (98) (98) Gain on sale of properties 3,002 4,797 (1,795) -37% 1,514 4,516 Gain on redemption of preferred equity inv. - - - 0% - - Cumulative effect of accounting change - - - 0% (532) (532) Minority interest - OP (1,405) (1,316) (89) 7% (1,081) (2,486) --------- --------- --------- --------- NET INCOME 17,945 15,395 2,550 17% 13,712 31,657 Dividends on preferred shares 2,300 2,300 - 0% 2,300 4,600 Preferred stock accretion 115 107 8 8% 114 229 --------- --------- --------- --------- INCOME AVAILABLE FOR COMMON SHARES 15,530 12,988 2,542 20% 11,298 26,828 ========= ========= ========= ========= =============================================================================== COMPARATIVE STATEMENTS OF OPERATIONS 13
[SL Green Logo] Unaudited ($000'S OMITTED) ================================================================================ Three Months Ended Three Months Ended Six Months Ended JUN-01 JUN-00 MAR-01 JUN-01 ------ ------ ------ ------ RATIOS - ----------------------------------------------------------------------------------------------------------------------------------- MG&A to Real Estate Revenue, net 6.02% 6.09% 5.59% 5.81% MG&A to Total Revenue, net 5.52% 5.65% 5.29% 5.41% Operating Expense to Real Estate Revenue, net 23.13% 25.67% 24.96% 24.06% EBITDA to Real Estate Revenue, net 63.58% 58.81% 59.18% 61.34% EBITDA before Ground Rent to Real Estate Revenue, net 68.77% 64.84% 64.16% 66.42% ($000's omitted - except per share data) PER SHARE DATA: - ----------------------------------------------------------------------------------------------------------------------------------- Income available for common shares 15,530 12,988 11,298 26,828 Net income per share (basic) 0.63 0.53 0.46 1.09 Net income per share (diluted) 0.60 0.53 0.46 1.06 Book/Tax Depreciation Adjustment 1,985 336 1,815 3,800 Book/Tax Gain Recognition Adjustment 998 (1,269) 686 1,684 Other Operating Adjustments (3,809) (4,117) (3,483) (7,292) C-corp Earnings 658 - 270 928 ---------- ---------- ---------- ---------- TAXABLE INCOME 15,362 7,938 10,586 25,948 Dividend per share 0.3875 0.3625 0.3875 0.3875 Estimated payout of taxable income 62% 126% 101% 76% Basic weighted average common shares 24,706 24,309 24,639 24,706 Diluted weighted average common shares and common share equivalents outstanding 32,183 31,744 27,403 32,170 - -------------------------------------------------------------------------------- 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 and the difference between tax and GAAP depreciation. The Company has deferred the taxable gain on the sales 29 West 35th Street, 17 Battery Place South, and 1412 Broadway through 1031 exchanges. - -------------------------------------------------------------------------------- 14
=============================================================================== JOINT VENTURE STATEMENTS BALANCE SHEET FOR UNCONSOLIDATED JOINT VENTURES [SL Green Logo] UNAUDITED (000'S OMITTED) =============================================================================== JUNE 30, 2001 ------------------------------------------------------------------------------- TOTAL PROPERTY SLG PROPERTY INTEREST Land & land interests 127,058 63,582 Buildings & improvements 530,647 267,291 ---------------------- ---------------------- 657,705 330,873 Less accumulated depreciation (10,886) (5,261) ---------------------- ---------------------- Net Real Estate 646,819 325,612 Cash and cash equivalents 7,227 3,627 Restricted cash 22,793 11,097 Tenant receivables, net of $165 reserve 2,809 1,360 Deferred rents receivable, net of reserve for tenant credit loss of $327 at 6/30/01 4,961 2,378 Deferred costs, net 6,507 3,257 Other assets 5,040 2,554 ---------------------- ---------------------- TOTAL ASSETS 696,156 349,886 ====================== ====================== Mortgage loan payable 429,748 213,452 references page 22 Accrued interest payable 2,183 1,065 Accounts payable and accrued expenses 13,283 8,646 Security deposits 6,282 2,984 Contributed Capital (1) 244,660 123,739 references page 11 -------- -------- TOTAL LIABILITIES AND EQUITY 696,156 349,886 ====================== ====================== JUNE 30, 2000 ----------------------------------------------------------- TOTAL PROPERTY SLG PROPERTY INTEREST Land & land interests 69,468 32,774 Buildings & improvements 287,017 135,186 ---------------------- ---------------------- 356,485 167,960 Less accumulated depreciation (4,199) (1,973) ---------------------- ---------------------- Net Real Estate 352,286 165,988 Cash and cash equivalents 7,071 3,287 Restricted cash 8,043 3,706 Tenant receivables, net of $165 reserve 1,342 638 Deferred rents receivable, net of reserve for tenant credit loss of $327 at 6/30/01 2,569 1,192 Deferred costs, net 6,344 2,898 Other assets 2,652 2,442 ---------------------- ---------------------- 380,307 180,151 ====================== ====================== Mortgage loan payable 230,650 107,048 Accrued interest payable 1,557 744 Accounts payable and accrued expenses 7,212 3,370 Security deposits 5,087 2,317 Contributed Capital (1) 135,801 66,672 ---------------------- ---------------------- 380,307 180,151 ====================== ====================== - ------------------------------------------------------------------------------- As of June 30, 2001 the Company has six 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, a 35% interest in 469 Seventh Avenue acquired in January 2001, and a 55% interest in 1 Park Avenue contributed in June 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). - -------------------------------------------------------------------------------- 15
=============================================================================== JOINT VENTURE STATEMENTS STATEMENTS OF OPERATIONS FOR UNCONSOLIDATED JOINT VENTURES [SL Green Logo] UNAUDITED (000'S OMITTED) =============================================================================== THREE MONTHS ENDED JUNE 30, 2001 ---------------------------------------------------------------- TOTAL PROPERTY SLG PROPERTY INTEREST SLG SUBSIDIARY -------------- --------------------- -------------- Revenues - --------------------------------------------------------------------------------------------------------------------------------- Rental Revenue, net 16,931 8,327 Free rent 95 41 Amortization of free rent (75) (35) ------------- ------------- Net free rent 20 6 Straight-line rent 803 374 Allowance for S/L tenant credit loss (157) (74) Escalation and reimbursement revenues 2,911 1,387 Investment income 177 83 Other income 27 13 ------------- ------------- TOTAL REVENUES, NET 20,712 10,116 EXPENSES - --------------------------------------------------------------------------------------------------------------------------------- Operating expenses 5,015 2,441 Real estate taxes 3,320 1,618 ------------- ------------- TOTAL OPERATING EXPENSES 8,335 4,059 - GAAP NOI 12,532 6,131 Cash NOI 11,710 5,751 Interest 6,040 2,892 Depreciation and amortization 2,920 1,409 ------------- ------------- NET INCOME (1) 3,415 1,756 references page 13 Plus: Real Estate Depreciation 2,658 1,358 references page 18 Plus: Extraordinary Loss - - Plus: Management & Leasing Fees - - 25 ------------- ------------- ------------- FUNDS FROM OPERATIONS 6,073 3,114 FAD ADJUSTMENTS: - --------------------------------------------------------------------------------------------------------------------------------- Plus: Non Real Estate Depreciation 262 120 Plus: 2% Allowance for S/L Tenant Credit Loss 157 74 Less: Free and S/L Rent (822) (381) Less: Second Cycle Tenant Improvement, Leasing Commissions & Recurring Capex (2,989) (1,576) ------------- ------------- (3,393) (1,763) ============= ============= - ------------------------------------------------------------------------------------------------------------- Operating Expense to Real Estate Revenue, net 24.27% 24.18% GAAP NOI to Real Estate Revenue, net 60.65% 60.73% Cash NOI to Real Estate Revenue, net 56.67% 56.96% - ------------------------------------------------------------------------------------------------------------- THREE MONTHS ENDED JUNE 30, 2000 -------------------------------------------------------- TOTAL PROPERTY SLG PROPERTY INTEREST SLG SUBSIDIARY -------------- --------------------- -------------- Revenues - --------------------------------------------------------------------------------------------------------------- Rental Revenue, net 12,542 5,943 Free rent 657 285 Amortization of free rent (65) (29) ------------- ------------- Net free rent 592 256 Straight-line rent 690 324 Allowance for S/L tenant credit loss (192) (87) Escalation and reimbursement revenues 1,442 639 Investment income 91 44 Other income 2 2 ------------- ------------- TOTAL REVENUES, NET 15,167 7,121 EXPENSES - --------------------------------------------------------------------------------------------------------------- Operating expenses 3,816 1,760 Real estate taxes 2,653 1,286 ------------- ------------- TOTAL OPERATING EXPENSES 6,469 3,046 GAAP NOI 8,890 4,161 Cash NOI 7,608 3,582 Interest 4,874 2,287 Depreciation and amortization 2,149 1,006 ------------- ------------- NET INCOME (1) 1,675 782 Plus: Real Estate Depreciation 1,943 917 Plus: Extraordinary Loss - - Plus: Management & Leasing Fees - - 44 ------------- ------------- ------------- FUNDS FROM OPERATIONS 3,618 1,699 FAD ADJUSTMENTS: - --------------------------------------------------------------------------------------------------------------- Plus: Non Real Estate Depreciation 206 88 Plus: 2% Allowance for S/L Tenant Credit Loss 192 87 Less: Free and S/L Rent (1,282) (580) Less: Second Cycle Tenant Improvement, Leasing Commissions & Recurring Capex (255) (89) ------------- ------------- (1,139) (494) ============= ============= - -------------------------------------------------------------------------------------------- Operating Expense to Real Estate Revenue, net 25.00% 24.57% GAAP NOI to Real Estate Revenue, net 58.24% 58.11% Cash NOI to Real Estate Revenue, net 49.84% 50.01% - -------------------------------------------------------------------------------------------- 16
=============================================================================== CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ($000'S OMITTED) [SL Green Logo] =============================================================================== RETAINED EARNINGS / ADDITIONAL (DISTRIBUTIONS IN COMMON STOCK PAID-IN CAPITAL EXCESS OF EARNINGS) -------------- --------------- -------------------- BALANCE AT DECEMBER 31, 1998 240 416,939 (8,559) Balance at December 31, 1999 242 421,958 (9,422) Net Income 86,217 Preferred dividend and accretion (9,626) Deferred compensation plan 253 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 ---------- ---------- ---------- BALANCE AT DECEMBER 31, 2000 246 428,698 31,166 Net Income 31,657 Cumulative Effect of Accounting Change Preferred dividend and accretion (4,829) Deferred compensation plan 1 3,704 Exercise of employee stock options 2 3,363 Cash distributions declared ($0.775 per common share) (19,207) Redemption of operating partnership units 497 Comprehensive Income - Unrealized loss of derivative instruments Amortization of officers' loan and deferred compensation ---------- ---------- ---------- BALANCE AT JUNE 30, 2001 (UNAUDITED) 249 436,262 38,787 DEFERRED ACCUMULATED COMPENSATION OTHER PLAN / OFFICERS' COMPREHENSIVE LOAN LOSS TOTAL ----------------- --------------- ---------- BALANCE AT DECEMBER 31, 1998 (3,794) 404,826 Balance at December 31, 1999 (6,674) - 406,104 Net Income 86,217 Preferred dividend and accretion (9,626) Deferred compensation plan 6 259 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 1,631 ---------- ---------- ---------- BALANCE AT DECEMBER 31, 2000 (5,037) - 455,073 Net Income 31,657 Cumulative Effect of Accounting Change (811) (811) Preferred dividend and accretion (4,829) Deferred compensation plan (4,733) (1,028) Exercise of employee stock options 3,365 Cash distributions declared ($0.775 per common share) (19,207) Redemption of operating partnership units 497 Comprehensive Income - Unrealized loss of derivative instruments (1,085) (1,085) Amortization of officers' loan and deferred compensation 698 698 ---------- ---------- ---------- BALANCE AT JUNE 30, 2001 (UNAUDITED) (9,072) (1,896) 464,330 =============================================================================== RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION ================================================================================ COMMON STOCK OP UNITS BASIC SHARES DILUTION FACTOR ------------ -------- ------------ --------------- BALANCE AT DECEMBER 31, 1998 23,951,826 2,428,056 26,379,882 BALANCE AT DECEMBER 31, 1999 24,184,217 2,428,056 26,612,273 BALANCE AT DECEMBER 31, 2000 24,515,994 2,307,515 26,823,509 4,994,943 Option/OP Units Converted 192,739 (26,492) 166,247 (28,473) Deferred Compensation Program 150,500 150,500 (116,648) Unexercised Option Share Equivalents 475,806 Preferred Stock "If Converted" Method to common stock 4,698,900 --------------- --------------- --------------- --------------- BALANCE AT JUNE 30, 2001(UNAUDITED) 24,859,233 2,281,023 27,140,256 5,029,585 DILUTED SHARES --------------- BALANCE AT DECEMBER 31, 1998 26,379,882 BALANCE AT DECEMBER 31, 1999 26,612,273 BALANCE AT DECEMBER 31, 2000 - 31,818,452 Option/OP Units Converted 137,774 Deferred Compensation Program 33,852 Unexercised Option Share Equivalents 475,806 Preferred Stock "If Converted" Method to common stock 4,698,900 --------------- --------------- BALANCE AT JUNE 30, 2001(UNAUDITED) - 32,169,841 17
=============================================================================== COMPARATIVE COMPUTATION OF FFO AND FAD UNAUDITED [SL Green Logo] ($000'S OMITTED - EXCEPT PER SHARE DATA) =============================================================================== THREE MONTHS ENDED JUNE 30 ----------------------------------------------- 2001 2000 % CHANGE ---- ---- -------- Funds from operations - ---------------------------------------------------------------------------------------------------------------------------------- Net Income before Minority Interests 16,348 12,344 32% Add: Depreciation and Amortization 9,189 8,403 9% FFO adjustment for Joint Ventures 1,358 917 48% Less: Dividends on Preferred Shares 2,300 2,300 0% Non Real Estate Depreciation/Amortization of Finance Costs 1,157 1,040 11% ---------- ---------- FUNDS FROM OPERATIONS - BASIC 23,438 18,324 28% FUNDS FROM OPERATIONS - BASIC PER SHARE 0.87 0.69 26% Add: Dividends on Preferred Shares 2,300 2,300 0% ---------- ---------- FUNDS FROM OPERATIONS - DILUTED 25,738 20,624 25% FUNDS FROM OPERATIONS - DILUTED PER SHARE 0.80 0.65 23% FUNDS AVAILABLE FOR DISTRIBUTION - ---------------------------------------------------------------------------------------------------------------------------------- FFO (1) 25,738 18,324 40% Add: Non Real Estate Depreciation 1,157 1,040 11% 2% Allowance for S/L Tenant Credit Loss 458 240 91% Straight-line Ground Rent 354 441 -20% Non-cash Deferred Compensation 350 386 -9% FAD adjustment for Joint Ventures & Emerge (1,731) (494) 250% Less: Straight-line Rental Income 2,335 2,356 -1% Free Rent - Occupied (Net of Amortization, incl. First Cycle) 320 1,554 -79% Amortization of Mortgage Investment Discount (5,608) 1,107 -607% Second Cycle Tenant Improvement & Leasing Commission on Existing Space 1,799 3,289 -45% Recurring Building Improvements 481 546 -12% ---------- ---------- FUNDS AVAILABLE FOR DISTRIBUTION 26,999 11,085 144% Diluted per Share 0.84 0.41 107% First Cycle Leasing Costs Tenant Improvement & Leasing Commissions 14 4,206 -100% ---------- ---------- FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST CYCLE LEASING COSTS 26,985 6,880 292% Funds Available for Distribution per Diluted Weighted Average Unit and Common Share 0.98 0.25 290% Redevelopment Costs 2,225 3,254 -32% - ---------------------------------------------------------------------------------------------------------------------------------- PAYOUT RATIO OF FUNDS FROM OPERATIONS 48.43% 55.80% -13% Payout Ratio of Funds Available for Distribution Before First Cycle 46.17% 88.44% -48% - ---------------------------------------------------------------------------------------------------------------------------------- THREE MONTHS ENDED MAR 31 THREE MONTHS ENDED DEC 31 ------------------------------ ------------------------- 2001 % CHANGE 2000 % CHANGE ---- -------- ---- -------- Funds from operations - ---------------------------------------------------------------------------------------------------------------------------------- Net Income before Minority Interests 13,909 18% 14,571 12% Add: Depreciation and Amortization 9,720 -5% 7,992 15% FFO adjustment for Joint Ventures 996 36% 788 72% Less: Dividends on Preferred Shares 2,300 0% 2,300 0% Non Real Estate Depreciation/Amortization of Finance Costs 1,155 0% 998 16% ---------- ---------- FUNDS FROM OPERATIONS - BASIC 21,170 11% 20,053 17% FUNDS FROM OPERATIONS - BASIC PER SHARE 0.79 10% 0.73 19% Add: Dividends on Preferred Shares 2,300 2,300 0% ---------- ---------- FUNDS FROM OPERATIONS - DILUTED 23,470 22,353 5% FUNDS FROM OPERATIONS - DILUTED PER SHARE 0.73 9% 0.70 14% FUNDS AVAILABLE FOR DISTRIBUTION - ----------------------------------------------------------------------------------------------------------------------------------- FFO (1) 21,170 22% 20,053 28% Add: Non Real Estate Depreciation 1,155 0% 998 16% 2% Allowance for S/L Tenant Credit Loss 649 -29% 182 152% Straight-line Ground Rent 354 0% 354 0% Non-cash Deferred Compensation 349 0% 903 -61% FAD adjustment for Joint Ventures & Emerge (739) 134% (371) 366% Less: Straight-line Rental Income 2,551 -8% 2,171 8% Free Rent - Occupied (Net of Amortization, incl. First Cycle) 1,110 -71% 25 1180% Amortization of Mortgage Investment Discount 759 -839% 1,119 -601% Second Cycle Tenant Improvement & Leasing Commission on Existing Space 3,558 -49% 3,315 -46% Recurring Building Improvements 327 47% 905 -47% ---------- ---------- FUNDS AVAILABLE FOR DISTRIBUTION 14,632 85% 14,584 85% Diluted per Share 0.53 58% 0.53 57% First Cycle Leasing Costs Tenant Improvement & Leasing Commissions 539 -97% 439 -97% ---------- ---------- FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST CYCLE LEASING COSTS 14,093 91% 14,145 91% Funds Available for Distribution per Diluted Weighted Average Unit and Common Share 0.52 89% 0.52 90% Redevelopment Costs 2,789 -20% 6,995 -68% - ----------------------------------------------------------------------------------------------------------------------------------- PAYOUT RATIO OF FUNDS FROM OPERATIONS 53.00% -9% 55.47% -13% Payout Ratio of Funds Available for Distribution Before First Cycle 72.57% -36% 72.53% -36% - ----------------------------------------------------------------------------------------------------------------------------------- 18
=============================================================================== SELECTED FINANCIAL DATA CAPITALIZATION ANALYSIS UNAUDITED [SL Green Logo] ($000'S OMITTED) =============================================================================== JUNE 30, 2001 2000 ---- ---- Market Capitalization - --------------------------------------------------------------------------------------------------------------------- Common Equity: Common Shares Outstanding 24,859 24,373 OP Units Outstanding 2,281 2,389 ----------- ----------- TOTAL COMMON EQUITY (SHARES AND UNITS) 27,140 26,762 Share Price at (End of Period) 30.31 26.73 ----------- ----------- Equity Market Value 822,621 715,476 Preferred Equity at Liquidation Value: 115,000 115,000 REAL ESTATE DEBT - --------------------------------------------------------------------------------------------------------------------- Property Level Mortgage Debt 325,411 346,294 Company's portion of Joint Venture Mortgages 213,452 107,048 Outstanding Balance on - Secured Credit Line 45,238 42,752 Outstanding Balance on - Unsecured Credit Line 238,000 103,000 ----------- ----------- TOTAL COMBINED DEBT 822,102 599,094 TOTAL MARKET CAP (DEBT & EQUITY) 1,759,723 1,429,570 LINES OF CREDIT AVAILABILITY - --------------------------------------------------------------------------------------------------------------------- Senior Unsecured Line of Credit Maximum Line Available 300,000 250,000 Letters of Credit issued 5,000 - Outstanding Balance 238,000 103,000 ----------- ----------- Net Line Availability 57,000 147,000 ----------- ----------- Secured Line of Credit Maximum Line Available 60,000 50,000 Outstanding Balance 45,238 42,752 ----------- ----------- Prudential Line Availability 14,762 7,248 ----------- ----------- Total Availability under Lines of Credit 71,762 154,248 ----------- ----------- RATIO ANALYSIS - --------------------------------------------------------------------------------------------------------------------- Consolidated Basis Debt to Market Cap Ratio 39.36% 37.21% Debt to Gross Real Estate Book Ratio (1) 58.31% 49.16% Secured Real Estate Debt to Secured Assets Gross Book (1) 68.37% 57.90% Unsecured Debt to Unencumbered Assets-Gross Book Value (1) 62.74% 34.40% Secured Non Real Estate Debt to Secured Assets Book (1) 41.95% 49.16% Joint Ventures Allocated Combined Debt to Market Cap Ratio 46.72% 41.91% Debt to Gross Real Estate Book Ratio (1) 60.10% 51.42% Secured Debt to Secured Assets Gross Book (1) 67.15% 59.18% Unsecured Debt to Unencumbered Assets-Gross Book Value (1) 62.74% 34.40% Secured Line of Credit to Structured Finance Assets (1) 41.95% 49.16% (1) Excludes property under capital lease MARCH 31, DECEMBER 31, 2001 2000 ---- ---- - ----------------------------------------------------------------------------------------------------------------------- Common Equity: Common Shares Outstanding 24,705 24,516 OP Units Outstanding 2,283 2,308 ----------- ----------- TOTAL COMMON EQUITY (SHARES AND UNITS) 26,988 26,824 Share Price at (End of Period) 27.45 28.00 ----------- ----------- Equity Market Value 740,821 751,058 Preferred Equity at Liquidation Value: 115,000 115,000 REAL ESTATE DEBT - --------------------------------------------------------------------------------------------------------------------- Property Level Mortgage Debt 528,535 414,342 Company's portion of Joint Venture Mortgages 128,408 115,808 Outstanding Balance on - Secured Credit Line 44,926 23,374 Outstanding Balance on - Unsecured Credit Line 167,000 23,000 ----------- ----------- TOTAL COMBINED DEBT 868,869 576,524 TOTAL MARKET CAP (DEBT & EQUITY) 1,724,690 1,442,582 LINES OF CREDIT AVAILABILITY - --------------------------------------------------------------------------------------------------------------------- Senior Unsecured Line of Credit Maximum Line Available 300,000 250,000 Letters of Credit issued 5,000 21,000 Outstanding Balance 167,000 23,000 ----------- ----------- Net Line Availability 128,000 206,000 ----------- ----------- Secured Line of Credit Maximum Line Available 60,000 60,000 Outstanding Balance 44,926 23,374 ----------- ----------- Prudential Line Availability 15,074 36,626 ----------- ----------- Total Availability under Lines of Credit 143,074 242,626 ----------- ----------- RATIO ANALYSIS - --------------------------------------------------------------------------------------------------------------------- Consolidated Basis Debt to Market Cap Ratio 46.39% 34.72% Debt to Gross Real Estate Book Ratio (1) 59.23% 48.89% Secured Real Estate Debt to Secured Assets Gross Book (1) 75.98% 66.06% Unsecured Debt to Unencumbered Assets-Gross Book Value (1) 46.18% 8.65% Secured Non Real Estate Debt to Secured Assets Book (1) 48.32% 45.57% Joint Ventures Allocated Combined Debt to Market Cap Ratio 50.38% 39.96% Debt to Gross Real Estate Book Ratio (1) 60.23% 51.58% Secured Debt to Secured Assets Gross Book (1) 73.87% 65.85% Unsecured Debt to Unencumbered Assets-Gross Book Value (1) 46.18% 8.65% Secured Line of Credit to Structured Finance Assets (1) 48.32% 45.57% (1) Excludes property under capital lease 19
================================================================================ SELECTED FINANCIAL DATA PROPERTY NOI AND COVERAGE RATIOS UNAUDITED ($000'S OMITTED) [SL GREEN LOGO] ================================================================================ THREE MONTHS ENDED JUNE 30 ------------------------------------------------------- 2001 2000 +/- %CHANGE ---- ---- --- ------- FUNDS FROM OPERATIONS 23,438 18,324 5,114 28% - -------------------------------------------------------------------------------------------------------------------- Less: Non - Building Revenue 6,195 5,346 849 16% Plus: 2% Reserve for Tenant Credit Loss 458 240 218 91% Interest Expense (incl. Capital Lease Int.) 13,171 10,053 3,118 31% Non Real Estate Depreciation 1,157 1,040 117 11% MG&A Expense 3,668 3,190 478 15% Preferred Dividend 2,300 2,300 - 0% ------------ ------------ GAAP NOI 37,997 29,801 8,196 28% CASH ADJUSTMENTS - -------------------------------------------------------------------------------------------------------------------- Less: Free Rent (Net of Amortization) 320 1,554 (1,234) -79% Straightline Revenue Adjustment 2,335 2,356 (21) -1% Plus: Ground Lease Straight-line Adjustment 354 441 (87) -20% ------------ ------------ CASH NOI 35,696 26,332 9,364 36% Real Estate Revenue, net 61,338 52,614 8,725 17% OPERATING MARGINS - -------------------------------------------------------------------------------------------------------------------- GAAP NOI/Real Estate Revenue, net 61.95% 56.64% Cash NOI/Real Estate Revenue, net 58.20% 50.05% GAAP NOI before Ground Rent/Real Estate Revenue, net 72.25% 68.65% Cash NOI before Ground Rent/Real Estate 67.92% 61.22% Revenue, net COMPONENTS OF DEBT AND FIXED CHARGES - -------------------------------------------------------------------------------------------------------------------- Interest on Fixed Rate Loans 6,876 4,063 2,813 69% Interest on Floating Rate Loans 6,295 5,990 305 5% Fixed Amortization Principal Payments 1,004 885 119 13% ------------ ------------ TOTAL DEBT SERVICE 14,175 10,938 3,237 30% Payments under Ground Lease Arrangements 2,805 2,769 36 1% Preferred Stock Dividend 2,300 2,300 - 0% ------------ ------------ TOTAL FIXED CHARGES 19,280 16,007 3,273 20% - -------------------------------------------------------------------------------------------------------------------- Adjusted EBITDA 41,379 31,692 Interest Coverage Ratio 3.14 3.16 Debt Service Coverage ratio 2.92 2.90 Fixed Charge Coverage ratio 2.15 1.98 - -------------------------------------------------------------------------------------------------------------------- THREE MONTHS ENDED MARCH 31 ------------------------------------------ 2001 +/- %CHANGE ---- --- ------- FUNDS FROM OPERATIONS 21,170 2,268 11% - ------------------------------------------------------------------------------------------------------- Less: Non - Building Revenue 4,262 1,933 45% Plus: 2% Reserve for Tenant Credit Loss 649 (191) -29% Interest Expense (incl. Capital Lease Int.) 13,897 (726) -5% Non Real Estate Depreciation 1,155 2 0% MG&A Expense 3,547 121 3% Preferred Dividend 2,300 - 0% ------------ GAAP NOI 38,456 (459) -1% CASH ADJUSTMENTS - ------------------------------------------------------------------------------------------------------- Less: Free Rent (Net of Amortization) 1,110 (790) -71% Straightline Revenue Adjustment 2,551 (216) -8% Plus: Ground Lease Straight-line Adjustment 354 - 0% ------------ CASH NOI 35,149 547 2% Real Estate Revenue, net 64,060 (2,722) -4% OPERATING MARGINS - ------------------------------------------------------------------------------------------------------- GAAP NOI/Real Estate Revenue, net 60.03% Cash NOI/Real Estate Revenue, net 54.87% GAAP NOI before Ground Rent/Real Estate Revenue, net 65.00% Cash NOI before Ground Rent/Real Estate 59.28% Revenue, net COMPONENTS OF DEBT AND FIXED CHARGES - ------------------------------------------------------------------------------------------------------- Interest on Fixed Rate Loans 6,762 114 2% Interest on Floating Rate Loans 7,135 (841) -12% Fixed Amortization Principal Payments 1,087 (83) -8% ------------ TOTAL DEBT SERVICE 14,985 (810) -5% Payments under Ground Lease Arrangements 2,805 - 0% Preferred Stock Dividend 2,300 - 0% ------------ TOTAL FIXED CHARGES 20,090 (810) -4% - ------------------------------------------------------------------------------------------------------- Adjusted EBITDA Interest Coverage Ratio 2.81 Debt Service Coverage ratio 2.60 Fixed Charge Coverage ratio 1.94 - ------------------------------------------------------------------------------------------------------- 20
================================================================================ SELECTED FINANCIAL DATA 2001 SAME STORE UNAUDITED ($000'S OMITTED) [SL GREEN LOGO] ================================================================================ THREE MONTHS ENDED JUNE 30 ------------------------------------------------------ 2001 2000 +/- % CHANGE ---- ---- --- -------- REVENUES - ------------------------------------------------------------------------------------------------------------------- Rental Revenue 44,483 42,662 1,821 4% Credit Loss (290) (232) (58) 25% Signage Rent 179 597 (418) -70% Escalation & Reimbursement Revenues 6,327 4,877 1,450 30% Investment & Other Income 384 333 51 15% ------------ ------------ TOTAL REVENUES 51,083 48,237 2,846 6% EXPENSES - ------------------------------------------------------------------------------------------------------------------- Operating Expense 11,639 11,129 510 5% Ground Rent 3,159 3,159 - 0% Real Estate Taxes 6,536 6,507 29 0% ------------ ------------ TOTAL OPERATING EXPENSES 21,334 20,795 539 3% EBITDA 29,749 27,442 2,307 8% Interest 7,945 7,017 928 13% Depreciation & Amortization 6,516 7,022 (506) -7% Income Before Minority Interest 15,288 13,403 1,885 14% Plus: Real Estate Depreciation & Amortization 6,295 6,575 (280) -4% ------------ ------------ FFO 21,583 19,978 1,605 8% Less: Non - Building Revenue 300 273 27 10% Plus: 2% Reserve for Tenant Credit Loss 290 232 58 25% Interest Expense 7,945 7,017 928 13% Non Real Estate Depreciation 220 448 (228) -51% ------------ ------------ GAAP NOI 29,738 27,402 2,336 9% CASH ADJUSTMENTS - ------------------------------------------------------------------------------------------------------------------- Less: Free Rent (Net of Amortization) 437 1,737 (1,300) -75% Straightline Revenue Adjustment 1,702 2,166 (464) -21% Plus: Ground Lease Straight-line Adjustment 354 441 (87) -20% ------------ ------------ CASH NOI 27,953 23,940 4,013 17% OPERATING MARGINS - ------------------------------------------------------------------------------------------------------------------- GAAP NOI to Real Estate Revenue, net 58.23% 56.86% Cash NOI to Real Estate Revenue, net 54.73% 49.67% GAAP NOI before Ground Rent/Real Estate Revenue, net 64.41% 63.41% Cash NOI before Ground Rent/Real Estate Revenue, net 60.22% 55.31% THREE MONTHS ENDED MARCH 31 ---------------------------------------- 2001 +/- % CHANGE ---- --- -------- REVENUES - ----------------------------------------------------------------------------------------------------- Rental Revenue 44,885 (402) -1% Credit Loss (390) 100 -26% Signage Rent 350 (171) -49% Escalation & Reimbursement Revenues 6,784 (457) -7% Investment & Other Income 281 103 37% ------------ TOTAL REVENUES 51,910 (827) -2% EXPENSES - ----------------------------------------------------------------------------------------------------- Operating Expense 12,488 (849) -7% Ground Rent 3,159 - 0% Real Estate Taxes 6,545 (9) 0% ------------ TOTAL OPERATING EXPENSES 22,192 (858) -4% EBITDA 29,718 31 0% Interest 7,929 16 0% Depreciation & Amortization 6,772 (256) -4% Income Before Minority Interest 15,017 271 2% Plus: Real Estate Depreciation & Amortization 6,533 (238) -4% ------------ FFO 21,550 33 0% Less: Non - Building Revenue 186 114 61% Plus: 2% Reserve for Tenant Credit Loss 390 (100) -26% Interest Expense 7,929 16 0% Non Real Estate Depreciation 239 (19) -8% ------------ GAAP NOI 29,922 (184) -1% CASH ADJUSTMENTS - ----------------------------------------------------------------------------------------------------- Less: Free Rent (Net of Amortization) 326 111 34% Straightline Revenue Adjustment 1,884 (182) -10% Plus: Ground Lease Straight-line Adjustment 354 - 0% ------------ CASH NOI 28,066 (113) 0% OPERATING MARGINS - ----------------------------------------------------------------------------------------------------- GAAP NOI to Real Estate Revenue, net 57.42% Cash NOI to Real Estate Revenue, net 53.86% GAAP NOI before Ground Rent/Real Estate Revenue, net 63.48% Cash NOI before Ground Rent/Real Estate Revenue, net 59.24% 21
================================================================================ DEBT SUMMARY SCHEDULE UNAUDITED ($000'S OMITTED) [SL GREEN LOGO] ================================================================================ 2001 2001 PRINCIPAL O/S ANNUAL PRINCIPAL 6/30/2001 COUPON PAYMENT REPAYMENT --------- ------ ------- --------- FIXED RATE SECURED DEBT - ------------------------------------------------------------------------------------------------------------------------------------ Property 673 First Avenue 10,517 9.00% 3,985 3,014 470 Park Avenue South 9,568 8.25% 1,207 416 50 West 23rd Street 21,000 7.33% 1,539 - CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) 26,177 7.90% 2,223 178 711 Third Avenue 48,996 8.13% 4,388 406 555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) 69,268 8.10% - 676 420 Lexington Avenue 125,000 8.44% 10,694 255 875 Bridgeport Avenue, CT (1031 exchange asset) 14,885 8.32% 1,272 34 ------------ ---- ----------- ----------- TOTAL FIXED RATE SECURED DEBT 325,411 8.21% WTD AVG 25,307 4,979 FLOATING RATE SECURED DEBT - ------------------------------------------------------------------------------------------------------------------------------------ Prudential Line of Credit (Libor + 125bps) 45,238 5.77% - ------------ ---- TOTAL FLOATING RATE SECURED DEBT 45,238 5.77% WTD AVG UNSECURED FLOATING RATE DEBT - ------------------------------------------------------------------------------------------------------------------------------------ Senior Unsecured Line of Credit (Libor + 150 bps) 238,000 6.09% - ------------ ---- TOTAL FLOATING RATE UNSECURED DEBT 238,000 6.09% WTD AVG TOTAL FLOATING RATE DEBT OUTSTANDING 283,238 6.04% WTD AVG TOTAL DEBT 608,649 7.20% WTD AVG - -------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE BALANCE & INTEREST RATE 687,141 7.19% - -------------------------------------------------------------------------------------------------- ==================================================================================================================================== SUMMARY OF JOINT VENTURE DEBT ==================================================================================================================================== PRINCIPAL O/S -------------------------------- GROSS PRINCIPAL SLG SHARE --------------- --------- JOINT VENTURE DEBT - ------------------------------------------------------------------------------------------------------------------------------------ 180 Madison JV 32,000 15,968 7.81% 2,499 - 469 Seventh Avenue (Libor + 225 bp) 36,000 12,600 6.11% - - 1250 Broadway JV (Libor + 300bps) 69,748 34,804 7.43% - - 321 W 44th JV (Libor + 250bps) 22,000 7,700 6.56% - - 1 Park Avenue (Libor + 150 bps) 150,000 82,500 5.11% - - 100 Park Avenue JV 120,000 59,880 8.00% 9,733 187 ------------ ------------ --------- ----------- ----------- TOTAL JOINT VENTURE DEBT 429,748 213,452 6.61% 12,232 187 - -------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE BALANCE & INTEREST RATE WITH SLG JV DEBT 843,401 7.21% - -------------------------------------------------------------------------------------------------- MATURITY DUE AT EARLIEST CONTRACTUAL DATE MATURITY PREPAYMENT DATE ---- -------- --------------- FIXED RATE SECURED DEBT - -------------------------------------------------------------------------------------------------------------------------- Property 673 First Avenue 12/13/2003 2,000 Open 470 Park Avenue South 4/1/2004 8,285 Open 50 West 23rd Street 8/1/2007 19,234 Aug-01 CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) 5/1/2009 12,196 Apr-03 711 Third Avenue 9/10/2005 22,825 Jun-04 555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) 11/1/2004 66,959 Open 420 Lexington Avenue 11/1/2010 104,406 Open 875 Bridgeport Avenue, CT (1031 exchange asset) 5/10/2025 5,466 Open TOTAL FIXED RATE SECURED DEBT FLOATING RATE SECURED DEBT - -------------------------------------------------------------------------------------------------------------------------- Prudential Line of Credit (Libor + 125bps) 12/22/2001 45,238 Open TOTAL FLOATING RATE SECURED DEBT UNSECURED FLOATING RATE DEBT - -------------------------------------------------------------------------------------------------------------------------- Senior Unsecured Line of Credit (Libor + 150 bps) 6/27/2003 238,000 Open TOTAL FLOATING RATE UNSECURED DEBT TOTAL FLOATING RATE DEBT OUTSTANDING TOTAL DEBT - ------------------------------------------------------------------------- WEIGHTED AVERAGE BALANCE & INTEREST RATE - ------------------------------------------------------------------------- ========================================================================================================================== SUMMARY OF JOINT VENTURE DEBT ========================================================================================================================== JOINT VENTURE DEBT - ------------------------------------------------------------------------------------------------------------- 180 Madison JV 12/1/2005 30,778 Open 469 Seventh Avenue (Libor + 225 bp) 2/1/2003 12,600 Open 1250 Broadway JV (Libor + 300bps) 8/30/2002 34,804 Open 321 W 44th JV (Libor + 250bps) 4/30/2003 7,700 Open 1 Park Avenue (Libor + 150 bps) 1/10/2004 82,500 Open 100 Park Avenue JV 9/1/2010 107,488 Open TOTAL JOINT VENTURE DEBT - ------------------------------------------------------------------------- WEIGHTED AVERAGE BALANCE & INTEREST RATE WITH SLG JV DEBT - ------------------------------------------------------------------------- 22
================================================================================ SUMMARY OF GROUND LEASE ARRANGEMENTS CONSOLIDATED STATEMENT (REIT) ($000'S OMITTED) [SL GREEN LOGO] ================================================================================ 2001 SCHEDULED 2002 SCHEDULED 2003 SCHEDULED 2004 SCHEDULED CASH PAYMENT CASH PAYMENT CASH PAYMENT CASH PAYMENT DEFERRED LAND YEAR OF PROPERTY (000'S) (000'S) (000'S) (000'S) LEASE OBLIGATIONS (1) MATURITY -------- ------- ------- ------- ------- --------------------- -------- Operating Leases - ------------------------------------------------------------------------------------------------------------------------------- 673 1st Avenue 3,010 3,010 3,010 3,010 11,873 2037 1140 Avenue of Americas (2) 348 348 348 348 2016 (3) 420 Lexington (2) 7,074 7,074 7,074 7,074 2008 (4) 711 3rd Avenue (2) (5) 1,163 1,550 1,550 1,550 1,639 2032 -------------- -------------- -------------- -------------- -------------- TOTAL 11,595 11,982 11,982 11,982 13,512 ============== ============== ============== ============== ============== Capitalized Lease - ------------------------------------------------------------------------------------------------------------------------------- 673 1st Avenue 1,290 1,290 1,290 1,290 15,369 2037 ============== ============== ============== ============== ============== - -------------------------------------------------------------------------------- (1) Per the balance sheet at June 30, 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. - -------------------------------------------------------------------------------- 23
================================================================================ SELECTED PROPERTY DATA [SL GREEN LOGO] ================================================================================ 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 4 470 Park Avenue South Park Avenue South/ Flatiron Fee Interest 260,000 3 70 W. 36th Street Garment Fee Interest 151,000 1 1414 Avenue of the Americas Rockefeller Center Fee Interest 111,000 1 1372 Broadway Garment Fee Interest 508,000 5 1140 A of A Rockefeller Center Leasehold Interest 191,000 2 50 W. 23rd Street Chelsea Fee Interest 333,000 3 110 East 42nd Street Grand Central Fee Interest 251,000 2 1466 Broadway Times Square Fee Interest 289,000 3 420 Lexington Ave (Graybar) Grand Central North Operating Sublease 1,188,000 12 440 Ninth Avenue Garment Fee Interest 339,000 3 711 Third Avenue Grand Central North Operating Sublease (1) 524,000 5 555 West 57th Midtown West Fee Interest 941,000 9 286 Madison Avenue Grand Central South Fee Interest 112,000 1 290 Madison Avenue Grand Central South Fee Interest 36,800 0 292 Madison Avenue Grand Central South Fee Interest 187,000 2 ---------- --- SUBTOTAL / WEIGHTED AVERAGE 5,843,800 58 2001 ACQUISITIONS - ------------------------------------------------------------------------------------------------------------ 317 Madison Grand Central Fee Interest 450,000 4 1370 Broadway Garment Fee Interest 255,000 3 ---------- --- SUBTOTAL / WEIGHTED AVERAGE 705,000 7 2001 ADJUSTMENTS - ------------------------------------------------------------------------------------------------------------ 17 Battery Place - North World Trade/ Battery Fee Interest 419,000 4 ---------- --- TOTAL/ WEIGHTED AVERAGE PROPERTIES 100% OWNED 6,967,800 69 PROPERTIES LESS THAN 100% OWNED UNCONSOLIDATED - ------------------------------------------------------------------------------------------------------------ 180 Madison Avenue - 50% Grand Central South Fee Interest 265,000 3 1 Park Avenue - 55% Grand Central South Various Interests 913,000 9 469 Seventh Avenue - 35% Penn Station Fee Interest 253,000 3 1250 Broadway - 50% Penn Station Fee Interest 670,000 7 100 Park Avenue - 50% Grand Central South Fee Interest 834,000 8 321 West 44th Street -35% Times Square Fee Interest 203,000 2 ---------- --- SUBTOTAL / WEIGHTED AVERAGE 3,138,000 31 - ------------------------------------------------------------------------------------------------------------ GRAND TOTAL/ WEIGHTED AVERAGE 10,105,800 100 GRAND TOTAL - SLG SHARE OF ANNUALIZED RENT - ------------------------------------------------------------------------------------------------------------ PERCENT OCCUPIED ------------------------------------------- ANNUALIZED ANNUALIZED ANNUALIZED RENT AS % OF RENT AS % OF NUMBER OF PROPERTIES 6/30/2001 3/31/2001 12/31/2000 9/30/2000 RENT ($'S) WHOLLY OWNED SLG INTERESTS TENANTS - ---------- --------- --------- ---------- --------- ---------- ------------ ------------- ------- PROPERTIES 100% OWNED "SAME STORE" - ------------------------------------------------------------------------------------------------------------------------------------ 673 First Avenue 100 100 100 100 12,757,440 7 5 14 470 Park Avenue South 99 99 99 99 7,020,522 4 3 27 70 W. 36th Street 96 98 96 98 3,466,069 2 1 33 1414 Avenue of the Americas 98 97 99 100 4,026,719 2 2 27 1372 Broadway 99 99 99 99 13,731,033 7 6 27 1140 A of A 100 100 100 100 6,836,352 4 3 26 50 W. 23rd Street 99 99 99 99 7,486,318 4 3 17 110 East 42nd Street 100 100 100 99 8,006,856 4 3 31 1466 Broadway 81 83 84 92 8,338,968 4 4 90 420 Lexington Ave (Graybar) 99 99 100 99 38,638,701 20 16 240 440 Ninth Avenue 99 98 94 94 8,495,221 4 4 15 711 Third Avenue 100 100 100 100 17,793,985 9 8 22 555 West 57th 100 100 100 100 19,554,580 10 8 24 286 Madison Avenue 100 98 98 99 2,965,914 2 1 39 290 Madison Avenue 100 100 100 100 1,270,341 1 1 4 292 Madison Avenue 100 100 100 95 6,619,488 3 3 19 --- --- --- --- ----------- --- --- --- SUBTOTAL / WEIGHTED AVERAGE 99 98 98 99 167,008,507 87 71 655 2001 ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------------------------ 317 Madison 96 - 11,884,576 6 5 103 1370 Broadway 99 99 6,766,014 4 3 30 --- --- ----------- --- --- --- SUBTOTAL / WEIGHTED AVERAGE 97 99 18,650,590 10 8 133 2001 ADJUSTMENTS - ------------------------------------------------------------------------------------------------------------------------------------ 17 Battery Place - North 100 100 100 97 4,969,659 3 2 7 --- --- --- --- ----------- --- --- --- TOTAL/ WEIGHTED AVERAGE PROPERTIES 100% OWNED 99 99 99 98 190,628,756 100 81 795 PROPERTIES LESS THAN 100% OWNED UNCONSOLIDATED - ------------------------------------------------------------------------------------------------------------------------------------ 180 Madison Avenue - 50% 90 89 87 5,573,910 1 57 1 Park Avenue - 55% 97 97 32,169,436 7 15 469 Seventh Avenue - 35% 90 90 90 5,795,145 1 17 1250 Broadway - 50% 100 100 100 99 16,232,655 3 28 100 Park Avenue - 50% 100 100 100 99 28,432,322 6 37 321 West 44th Street -35% 96 96 97 98 3,531,826 1 27 --- --- --- --- ----------- --- --- SUBTOTAL / WEIGHTED AVERAGE 97 97 69 65 91,735,294 19 181 - ------------------------------------------------------------------------------------------------------------------------------------ GRAND TOTAL/ WEIGHTED AVERAGE 98 98 89 88 282,364,050 976 GRAND TOTAL - SLG SHARE OF ANNUALIZED RENT 236,655,590 100 - ------------------------------------------------------------------------------------------------------------------------------------ (1) Including Ownership of 50% in Building Fee 24
================================================================================ LARGEST TENANTS BY SQUARE FEET LEASED [SL GREEN LOGO] ================================================================================ % OF % OF WHOLLY WHOLLY TOTAL OWNED OWNED LEASE LEASED LEASED ANNUALIZED TENANT PROPERTY EXPIRATION SQUARE FEET SQUARE FEET RENT - ------ -------- ---------- ------------ ----------- ----- WHOLLY OWNED - ------------------------------------------------------------------------------------------------------------------------------------ The City of New York 17 Battery Place 2012 269,867 3.90 2.76 BMW of Manhattan, Inc. 555 West 57th Street 2012 227,782 3.29 1.47 City University of New York-CUNY 555 West 57th Street 2010 & 2015 147,261 2.13 1.88 Metro North Commuter Railroad Co. 420 Lexington Avenue 2008 & 2016 134,687 1.94 2.00 St. Luke's Roosevelt Hospital 555 West 57th Street 2014 133,700 1.93 1.57 C.B.S., Inc. 555 West 57th Street 2003 & 2010 127,320 1.84 1.26 Ross Stores 1372 Broadway 2010 101,741 1.47 1.36 New York Presbyterian Hospital 555 West 57th Street & 2006 & 2009 99,650 1.44 1.30 673 First Avenue Ann Taylor Inc. 1372 Broadway 2010 93,020 1.34 1.23 Crain Communications Inc. 711 Third Avenue 2009 90,531 1.31 1.60 Parade Publications, Inc. 711 Third Avenue 2010 82,444 1.19 1.06 Ketchum, Inc. 711 Third Avenue 2015 81,248 1.17 1.71 UNICEF 673 First Avenue 2003 & 2012 81,100 1.17 1.39 Kallir, Phillips, Ross Inc. 673 First Avenue 2004 80,000 1.16 1.28 New York Life Insurance Company 420 Lexington Avenue 2010 75,373 1.09 1.34 Greater New York Hospital 555 West 57th Street 2014 74,937 1.08 1.18 Gibbs & Cox Inc. 50 West 23rd Street 2005 69,782 1.01 0.97 Cipriani 42nd Street, LLC 110 East 42nd Street 2008 69,703 1.01 1.44 Young & Rubicam, Inc. 290 & 292 Madison Avenue 2015 67,097 0.97 1.25 Capital Mercury 1372 Broadway 2005 64,122 0.93 0.74 Secretary of Board of Education 50 W. 23rd Street 2010 6,400 0.09 0.46 Newport News 711 Third Avenue 2011 61,327 0.89 0.97 Vollmer 50 W. 23rd Street 2005 53,577 0.77 0.81 Rosenthal & Rosenthal 1370 Broadway 2012 52,938 0.76 0.83 ------- ----- ----- TOTAL 2,345,607 34 32 WHOLLY OWNED PORTFOLIO - LEASED 6,925,118 Joint Venture Properties (1) - ------------------------------------------------------------------------------------------------------------------------------------ The City of New York (if combined) 1250 Broadway & 17 Battery Place 2012 317,867 Loews Corp. 1 Park Avenue 2002 155,765 Philip Morris Management Corporation 100 Park Avenue 2007 175,645 Visiting Nurse Service of NY 1250 Broadway 2006 171,078 J&W Seligman & Co., Inc. 100 Park Avenue 2009 168,390 The Segal Company (Eastern States) Inc. 1 Park Avenue 2009 150,000 CHF Industries 1 Park Avenue 2005 100,000 Coty Inc, 1 Park Avenue 2015 100,000 Information Builders Inc 1250 Broadway 2003 88,571 MCI International ( if combined) 100 Park Avenue & 17 Battery Place 2001 & 2004 83,751 Advanstar Communications 1 Park Avenue 2010 83,000 Mt. Sinai Hospital/NYU Hospital Center 1 Park Avenue 2010 80,000 Interep National Radio Sales 100 Park Avenue 2005 66,866 ------- TOTAL 1,740,933 % OF AGGREGATE SLG SHARE OF SLG SHARE OF ANNUALIZED ANNUALIZED ANNUALIZED TENANT PROPERTY RENT ($) RENT($) RENT - ------ -------- --------- -------- ---- WHOLLY OWNED - ---------------------------------------------------------------------------------------------------------------------- The City of New York 17 Battery Place 5,252,052 5,252,052 2.22 BMW of Manhattan, Inc. 555 West 57th Street 2,806,224 2,806,224 1.19 City University of New York-CUNY 555 West 57th Street 3,584,496 3,584,496 1.51 Metro North Commuter Railroad Co. 420 Lexington Avenue 3,805,932 3,805,932 1.61 St. Luke's Roosevelt Hospital 555 West 57th Street 2,993,196 2,993,196 1.26 C.B.S., Inc. 555 West 57th Street 2,396,016 2,396,016 1.01 Ross Stores 1372 Broadway 2,586,420 2,477,412 1.05 New York Presbyterian Hospital 555 West 57th Street & 2,483,376 2,455,577 1.04 673 First Avenue Ann Taylor Inc. 1372 Broadway 2,348,340 2,348,340 0.99 Crain Communications Inc. 711 Third Avenue 3,044,724 3,044,724 1.29 Parade Publications, Inc. 711 Third Avenue 2,011,872 2,011,872 0.85 Ketchum, Inc. 711 Third Avenue 3,259,488 3,259,488 1.38 UNICEF 673 First Avenue 2,649,132 2,649,132 1.12 Kallir, Phillips, Ross Inc. 673 First Avenue 2,442,228 2,442,228 1.03 New York Life Insurance Company 420 Lexington Avenue 2,549,232 2,549,232 1.08 Greater New York Hospital 555 West 57th Street 2,249,304 2,249,304 0.95 Gibbs & Cox Inc. 50 West 23rd Street 1,853,148 1,853,148 0.78 Cipriani 42nd Street, LLC 110 East 42nd Street 2,744,712 2,744,712 1.16 Young & Rubicam, Inc. 290 & 292 Madison Avenue 2,378,760 2,378,760 1.01 Capital Mercury 1372 Broadway 1,410,684 1,410,684 0.60 Secretary of Board of Education 50 W. 23rd Street 869,148 869,148 0.37 Newport News 711 Third Avenue 1,852,692 1,852,692 0.78 Vollmer 50 W. 23rd Street 1,544,688 1,544,688 0.65 Rosenthal & Rosenthal 1370 Broadway 1,591,080 1,591,080 0.67 ---------- TOTAL WHOLLY OWNED PORTFOLIO - LEASED 190,628,756 Joint Venture Properties (1) - ---------------------------------------------------------------------------------------------------------------------- The City of New York (if combined) 1250 Broadway & 17 Battery Place 6,343,248 5,792,966 2.99 Loews Corp. 1 Park Avenue 6,868,862 3,777,874 1.60 Philip Morris Management Corporation 100 Park Avenue 6,412,488 3,199,832 1.37 Visiting Nurse Service of NY 1250 Broadway 3,630,468 1,811,604 0.79 J&W Seligman & Co., Inc. 100 Park Avenue 5,117,604 2,553,684 1.23 The Segal Company (Eastern States) Inc. 1 Park Avenue 5,466,792 3,006,736 1.27 CHF Industries 1 Park Avenue 3,342,422 1,838,332 0.78 Coty Inc, 1 Park Avenue 3,514,170 1,932,794 0.82 Information Builders Inc 1250 Broadway 2,115,708 1,055,738 0.45 MCI International ( if combined) 100 Park Avenue & 17 Battery Place 2,523,456 3,777,112 0.76 Advanstar Communications 1 Park Avenue 2,870,365 1,578,701 0.67 Mt. Sinai Hospital/NYU Hospital Center 1 Park Avenue 2,802,676 1,541,472 0.65 Interep National Radio Sales 100 Park Avenue 2,144,280 1,069,996 0.51 ---------- TOTAL 93,506,976 WHOLLY OWNED PORTFOLIO + ALLOCATED JV PROPERTIES 236,655,590 (1) Consolidates SLG's pro-rata 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. 25
================================================================================ SECOND QUARTER - 2001 LEASING ACTIVITY [SL GREEN LOGO] AVAILABLE SPACE ================================================================================ PREV. ESCALATED RENT/RENTABLE ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF RENTABLE SF SF* ($'S) - ------------- ---------------- ----------- --------- ----------- -------------- VACANCY AT 3/31/01 276,994 ACQUIRED VACANCIES - ------------------------------------------------------------------------------------------------------------------------------------ 317 Madison 19,393 Roll-forward Adjustment (Holdover) 35,704 EXPIRING SPACE - ------------------------------------------------------------------------------------------------------------------------------------ Office 180 Madison Avenue 3 4,506 4,506 21.36 1414 6th Avenue 0 - - - 286 Madison Avenue 4 5,967 5,967 24.59 292 Madison Avenue 1 10,113 10,113 29.44 70 W. 36th Street 3 5,496 5,886 27.45 470 Park Avenue South 1 1,136 1,136 26.84 1412 Broadway 4 5,682 8,207 32.65 1466 Broadway 5 9,347 13,070 31.38 420 Lexington 8 14,089 16,026 30.80 -- ------ ------- ----- TOTAL/WEIGHTED AVERAGE 29 56,336 64,911 29.34 Retail 1372 Broadway 1 768 935 50.47 -- ---- ---- ----- TOTAL/WEIGHTED AVERAGE 1 768 935 50.47 MOVE OUTS - ------------------------------------------------------------------------------------------------------------------------------------ Office 1372 Broadway 1 370 525 40.00 1412 Broadway 1 756 1,256 37.89 1466 Broadway 3 3373 5,125 36.10 420 Lexington Avenue 4 3,771 4,884 31.91 -- ------ ------ ----- 9 8,270 11,790 34.73 Retail 1250 Broadway 1 2,000 2,000 25.88 -- ------ ------ ------ 1 2,000 2,000 25.88 EVICTED TENANTS - ------------------------------------------------------------------------------------------------------------------------------------ Office 286 Madison Avenue 1 4,122 5,222 34.42 1466 Broadway 2 2,609 3,562 36.23 420 Lexington Avenue 1 364 520 53.00 -- ---- ---- ------ 4 7,094 9,304 36.15 Retail 440 Ninth Avenue 1 846 1,200 15.45 -- ---- ------ ------ 1 846 1,200 15.45 RELOCATING TENANTS - ------------------------------------------------------------------------------------------------------------------------------------ 1466 Broadway 4 4,660 6,180 33.21 -- ------ ------ ------ 4 4,660 6,180 33.21 AVAILABLE SPACE - ------------------------------------------------------------------------------------------------------------------------------------ OFFICE 46 76,361 92,185 30.98 RETAIL 3 3,614 4,135 28.41 -- ------ ------ ----- TOTAL 49 79,975 96,320 30.87 AVAILABLE SPACE 394,214 * Escalated Rent is calculated as Total Annual Income less Electric Charges. 26
================================================================================ SECOND QUARTER - 2001 LEASING ACTIVITY [SL GREEN LOGO] LEASED SPACE ================================================================================ PREV. ESCALATED RENT / RENT / T.I / FREE RENT # OF USABLE RENTABLE RENTABLE RENTABLE RENTABLE # OF ACTIVITY TYPE BUILDING ADDRESS LEASES SF SF SF SF SF MONTHS ------------- ---------------- ------ -------- -------- -------- --------- -------- --------- AVAILABLE SPACE AS OF 3/31/01 394,214 RENEWING TENANTS - ------------------------------------------------------------------------------------------------------------------------------ Office 292 Madison 1 10,113 10,269 45.00 28.99 - - 70 West 36th Street 1 1,671 1,835 30.00 22.16 - - 1466 Broadway 1 1,554 2,475 37.00 31.40 - 1.00 420 Lexington 4 1,838 1,994 50.91 36.71 - - -- ------- ------ ----- ----- ---- ---- TOTAL/WEIGHTED AVERAGE 7 15,176 16,573 42.86 29.52 - 0.10 RELOCATING TENANTS - ------------------------------------------------------------------------------------------------------------------------------ Office 1466 Broadway 4 5,789 7,651 36.55 27.67 0.54 1.00 -- ------- ------ ----- ----- ---- ---- TOTAL/WEIGHTED AVERAGE 4 5,789 7,651 36.55 27.67 0.54 0.30 less 1466 Broadway 4 5,789 7,651 36.55 27.67 - - EXPANSION TENANTS - ------------------------------------------------------------------------------------------------------------------------------ Office 420 Lexington 3 4,755 6,793 38.45 21.10 - - -- ------- ------ ----- ----- ---- ---- TOTAL/WEIGHTED AVERAGE 3 4,755 6,793 38.45 21.10 - - NEW TENANTS REPLACING OLD TENANTS - ------------------------------------------------------------------------------------------------------------------------------ Office 180 Madison Avenue 2 1,987 1,987 41.70 35.74 - 2.00 286 Madison Avenue 2 6,223 7,186 43.02 32.34 1.94 1.00 1414 Sixth Avenue 1 573 980 56.00 22.09 - - 1372 Broadway 3 1,321 1,843 41.58 27.88 - - 420 Lexington Avenue 3 3,776 5,478 50.73 33.53 3.99 2.00 -- ------- ------ ----- ----- ---- ---- TOTAL/WEIGHTED AVERAGE 11 13,880 17,474 45.86 32.05 2.05 0.45 Retail 440 Ninth Avenue 1 886 900 73.33 58.28 - 2.00 -- ------- ------ ----- ----- ---- ---- TOTAL/WEIGHTED AVERAGE 1 886 900 73.33 58.28 - 2.00 TOTAL/WEIGHTED AVERAGE 25 39,600 48,491 42.33 28.96 0.82 - 27
================================================================================ SECOND QUARTER - 2001 LEASING ACTIVITY LEASED SPACE ================================================================================ PREV. ESCALATED RENT / RENT / T.I / FREE RENT # OF USABLE RENTABLE RENTABLE RENTABLE RENTABLE # OF ACTIVITY TYPE BUILDING ADDRESS LEASES SF SF SF SF SF MONTHS ------------- ---------------- ------ -------- -------- -------- --------- -------- --------- NEW TENANTS REPLACING VACANCIES - ------------------------------------------------------------------------------------------------------------------------------ Office 1370 Broadway 1 676 978 42.00 - - - 1250 Broadway 1 1,118 1,638 47.00 - 6.00 1.00 1412 Broadway 1 107 107 39.43 - - - 420 Lexington Avenue 2 891 951 45.48 - 19.74 3.00 -- ------- ------ ----- ----- ---- ---- TOTAL/WEIGHTED AVERAGE 5 2,792 3,674 45.05 - 5.11 1.00 Storage 440 Ninth Avenue 1 1,552 2,219 20.00 - - - 1466 Broadway 1 4,100 4,100 20.00 - - - -- ------- ------ ----- ----- ---- ---- TOTAL/WEIGHTED AVERAGE 2 5,652 6,319 20.00 - - - LEASED SPACE - ------------------------------------------------------------------------------------------------------------------------------ OFFICE 30 42,392 52,165 42.52 28.96 1.13 - RETAIL 1 886 900 73.33 58.28 - - STORAGE 2 5,652 6,319 20.00 - - - -- ------- ------ ----- ----- ---- ---- TOTAL 33 48,930 59,384 40.59 29.51 0.99 - - TOTAL MINUS RELOS 29 43,141 51,733 41.19 29.27 1.13 - SOLD VACANCIES 1412 Broadway 19,625 SUB-TOTAL AVAILABLE SPACE @ 6/30/01 343,511 HOLDOVER TENANTS - ------------------------------------------------------------------------------------------------------------------------------ 180 Madison Avenue 3 4,506 4,506 21.36 21.36 - - 286 Madison Avenue 4 5,967 5,967 24.59 24.58 - - 70 West 36th Street 1 1,581 1,581 23.21 23.21 - - 470 Park Avenue South 1 1,136 1,136 26.84 26.84 - - 1372 Broadway 1 768 935 50.47 50.47 - - 1466 Broadway 2 2,161 3,005 36.33 36.33 - - 420 Lexington 3 10,995 11,422 29.14 29.14 - - -- ------- ------ ----- ----- ---- ---- 17 27,114 30,727 27.90 27.90 - - TOTAL AVAILABLE SPACE @ 6/30/01 316,397 28
================================================================================ SECOND QUARTER - 2001 LEASING ACTIVITY [SL GREEN LOGO] LEASED SPACE ================================================================================ PREV. ESCALATED RENT / RENT / T.I / FREE RENT # OF USABLE RENTABLE RENTABLE RENTABLE RENTABLE # OF ACTIVITY TYPE BUILDING ADDRESS LEASES SF SF SF SF SF MONTHS ------------- ---------------- ------ -------- -------- -------- --------- -------- --------- EARLY RENEWALS - ------------------------------------------------------------------------------------------------------------------------------ Office 1250 Broadway 1 4,820 6,712 49.00 47.00 3.25 1.00 292 Madison Avenue 1 3,615 4,480 35.00 24.56 - - 1414 Avenue of Americas 1 5,514 6,300 29.04 27.95 - - 1140 Sixth Avenue 1 926 1,336 40.00 28.70 - - -- ------- ------ ----- ----- ---- ---- 4 14,875 18,828 38.35 33.99 1.16 - Retail 1250 Broadway 1 5,115 5,682 115.00 84.86 - - -- ------- ------ ----- ----- ---- ---- 1 5,115 5,682 115.00 84.86 0 0 RENEWALS - ------------------------------------------------------------------------------------------------------------------------------ Expired/Renewed 7 15,176 16,573 42.86 29.52 - - Early Renewals Office 4 14,875 18,828 38.35 33.99 - - Early Renewals Retail 1 5,115 5,682 115.00 84.86 - - -- ------- ------ ----- ----- ---- ---- TOTAL 12 35,166 41,083 50.77 39.22 - - * Annual Base Rent ** Escalated Rent is calculated as Total Annual Income less Electric Charges. 29
==================================================================================================================================== ANNUAL LEASE EXPIRATIONS CONSOLIDATED PROPERTIES ==================================================================================================================================== SQUARE ANNUALIZED RENT PER YEAR 2001 NUMBER OF FOOTAGE OF PERCENTAGE OF ANNUALIZED RENT LEASED SQUARE FOOT WEIGHTED YEAR OF LEASE EXPIRING EXPIRING TOTAL LEASED OF EXPIRING OF EXPIRING LEASES AVERAGE ASKING EXPIRATION TENANTS* LEASES SQ. FT. LEASES ($'S) $/PSF** RENT $/PSF ------------------------------------------------------------------------------------------------------ In 1st Quarter 2001* 15 13,028 0.19% 353,724 32.69 42.00 In 2nd Quarter 2001* 15 24,436 1.41% 665,964 31.19 41.76 In 3rd Quarter 2001 40 193,008 1.73% 5,364,294 28.58 44.29 In 4th Quarter 2001 36 119,409 1.72% 2,949,927 26.72 40.52 ------------------------------------------------------------------------------------------------------ TOTAL 2001 106 349,881 5.05% 9,333,909 28.28 42.01 2002 165 401,148 5.79% 12,009,437 29.94 42.76 2003 149 564,807 8.16% 20,015,019 35.44 42.64 2004 130 589,713 8.52% 12,987,446 22.02 42.72 2005 117 633,905 9.15% 19,963,748 31.49 42.38 2006 75 411,615 5.94% 9,579,627 23.27 42.63 2007 51 276,928 4.00% 8,401,722 30.34 43.77 2008 52 459,517 6.64% 14,558,281 31.68 41.85 2009 53 565,769 8.17% 14,431,934 25.51 42.44 2010 60 1,063,169 15.35% 30,386,056 28.58 42.80 THEREAFTER 56 1,608,666 23.23% 38,961,577 23.87 41.53 ------------------------------------------------------------------------------------------------------ 1,014 6,925,118 100.00% 190,628,756 27.45 42.34 ====================================================================================================== ------------------------------------------------------------------------- * Includes month to month holdover tenants that expired prior to 6/30/01. *Tenants may have multiple leases. **Represents in place annualized rent allocated by year of maturity. ------------------------------------------------------------------------- 30
==================================================================================================================================== ANNUAL LEASE EXPIRATIONS JOINT VENTURE PROPERTIES ==================================================================================================================================== ANNUALIZED RENT YEAR 2001 PER LEASED WEIGHTED YEAR OF LEASE NUMBER OF SQUARE FOOTAGE PERCENTAGE OF ANNUALIZED RENT OF SQUARE FOOT OF AVERAGE EXPIRATION EXPIRING OF EXPIRING TOTAL LEASED EXPIRING LEASES EXPIRING LEASES ASKING RENT TENANTS* LEASES SQ. FT. ($'S) $/PSF** $/PSF ----------------------------------------------------------------------------------------------------------- In 1st Quarter 2001* 3 2,664 0.90% 72,168 27.09 43.12 In 2nd Quarter 2001* 3 4,506 0.15% 96,240 21.36 43.00 In 3rd Quarter 2001 4 10,372 0.35% 151,110 14.57 49.73 In 4th Quarter 2001 4 10,670 0.36% 240,324 22.52 41.31 ----------------------------------------------------------------------------------------------------------- TOTAL 2001 14 28,212 0.94% 559,842 19.84 44.85 2002 35 405,158 13.55% 13,639,780 33.67 47.40 2003 21 224,302 7.50% 4,884,180 21.78 43.50 2004 22 173,491 5.80% 5,375,676 30.99 47.72 2005 17 291,760 9.76% 8,934,704 30.62 49.96 2006 17 303,213 10.14% 7,313,064 24.12 45.56 2007 10 295,184 9.87% 9,906,184 33.56 52.27 2008 14 169,652 5.67% 4,636,872 27.33 47.15 2009 17 562,383 18.81% 17,935,644 31.89 49.72 2010 15 338,802 11.33% 12,139,581 35.83 49.73 THEREAFTER 6 239,151 6.60% 6,409,767 32.19 47.76 ----------------------------------------------------------------------------------------------------------- 188 3,031,308 100.00% 91,735,294 30.67 48.36 =========================================================================================================== ------------------------------------------------------------------------- * Includes month to month holdover tenants that expired prior to 6/30/01. *Tenants may have multiple leases. **Represents in place annualized rent allocated by year of maturity. ------------------------------------------------------------------------- 31
================================================================================ SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997 [LOGO] ================================================================================ PROPERTY TYPE OF OWNERSHIP SUBMARKET -------- ----------------- --------- 1998 ACQUISITIONS - --------------------------------------------------------------------------------------------------------------------------- Mar-98 420 Lexington Operating Sublease Grand Central North Mar-98 1466 Broadway Fee Interest Times Square Mar-98 321 West 44th Fee Interest Times Square May-98 711 3rd Avenue Operating Sublease Grand Central North Jun-98 440 9th Avenue Fee Interest Garment Aug-98 1412 Broadway Fee Interest Times Square South 1999 ACQUISITIONS - --------------------------------------------------------------------------------------------------------------------------- Jan-99 420 Lexington Leasehold Sub-leasehold Grand Central North Jan-99 555 West 57th - 65% JV Fee Interest Midtown West May-99 90 Broad Street - 35% JV Fee Interest Financial May-99 THE MADISON PROPERTIES: Fee Interest Grand Central South ----------------------- 286 Madison Avenue 290 Madison Avenue 292 Madison Avenue Aug-99 1250 Broadway - 50% JV Fee Interest Penn Station Nov-99 555 West 57th - remaining 35% Fee Interest Midtown West 2000 ACQUISITIONS - --------------------------------------------------------------------------------------------------------------------------- Feb-00 100 Park Avenue Fee Interest Grand Central South Dec-00 180 Madison Avenue Fee Interest Grand Central South CONTRIBUTION TO JV May-00 321 West 44th Fee Interest Times Square 2001 ACQUISITIONS - --------------------------------------------------------------------------------------------------------------------------- Jan-01 1370 Broadway Fee Interest Garment Jan-01 1 Park Avenue Various Interests Grand Central South Jan-01 469 7th Avenue - 35% JV Fee Interest Penn Station Jun-01 317 Madison Fee Interest Grand Central NET RENTABLE % LEASED % LEASED ACQUISITION S.F. AT ACQUISITION 6/30/2001 PRICE ($'S) ---- -------------- --------- ----------- 1998 ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------- Mar-98 1,188,000 83 99 78,000,000 Mar-98 289,000 87 81 64,000,000 Mar-98 203,000 96 96 17,000,000 May-98 524,000 79 100 65,600,000 Jun-98 339,000 76 99 32,000,000 Aug-98 389,000 90 N/A 82,000,000 -------- ----------- 2,932,000 338,600,000 1999 ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------- Jan-99 27,300,000 Jan-99 941,000 100 100 66,700,000 May-99 339,000 82 100 34,500,000 May-99 50,000,000 112,000 99 98 36,800 86 100 187,000 97 100 Aug-99 670,000 97 100 93,000,000 Nov-99 - 34,100,000 -------- ----------- 2,285,800 305,600,000 2000 ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------- Feb-00 834,000 97 100 192,000,000 Dec-00 265,000 90 90 41,250,000 CONTRIBUTION TO JV May-00 203,000 98 96 28,400,000 -------- ----------- 1,302,000 261,650,000 2001 ACQUISITIONS - ------------------------------------------------------------------------------------------------------------------- Jan-01 255,000 97 99 50,500,000 Jan-01 913,000 97 97 233,900,000 Jan-01 253,000 98 90 45,700,000 Jun-01 450,000 95 96 105,600,000 -------- ----------- 1,871,000 435,700,000 (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 $44mm). 32
================================================================================ SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999 [LOGO] ================================================================================ NET RENTABLE SALES SALES PROPERTY TYPE OF OWNERSHIP SUBMARKET S.F. PRICE ($'S) PRICE ($'S/SF) -------- ----------------- --------- ---- ----------- -------------- 2000 SALES - ------------------------------------------------------------------------------------------------------------------------------------ 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 $156 2001 SALES - ------------------------------------------------------------------------------------------------------------------------------------ Jan-01 633 Third Ave Fee Structure Grand Central North 40,623 $13,250,000 $326 May-01 1 Park Ave Fee Structure Times Square 913,000 $233,900,000 $256 Jun-01 1412 Broadway Fee Structure Times Square South 389,000 $90,700,000 $233 --------- ----------- ---- 1,342,623 337,850,000 $272 33
================================================================================ SUPPLEMENTAL DEFINITIONS [LOGO] ================================================================================ ANNUALIZED RENT is calculated as monthly base rent and escalations per the lease, as of a certain date, multiplied by 12. DEBT SERVICE COVERAGE is adjusted EBITDA divided by total interest and principal payments EQUITY INCOME/ (LOSS) FROM AFFILIATES are generally accounted for on a cost basis and realized gains and losses are included in current earnings. For its investments in private companies, the Company periodically reviews its investments and management determines if the value of such investments have been permanently impaired. Permanent impairment losses for investments in public and private companies are included in current earnings. FIXED CHARGE is adjusted EBITDA divided by the total payments for ground leases and preferred stock. FIXED CHARGE COVERAGE is adjusted EBITDA divided by total interest expense (including capitalized interest and debt premium amortization, but excluding finance cost amortization) plus preferred dividends and distributions. FUNDS AVAILABLE FOR DISTRIBUTION (FAD) is defined as FFO plus non-real estate depreciation, 2% allowance for straight line credit loss, adjustment for straight line ground rent, non-cash deferred compensation, a pro-rata adjustment for FAD for SLG's unconsolidated JV; less straight line rental income, free rent net of amortization, second cycle tenant improvement and leasing cost, and recurring building improvements. FUNDS FROM OPERATIONS (FFO) is defined as income from operations before minority interests, gains or losses from sales of real estate and extraordinary items plus real estate depreciation, an adjustment to derive SLG's pro rata share of the FFO of unconsolidated joint ventures, and perpetual preferred stock dividends. In accordance with NAREIT White Paper on FFO, SLG includes the effects of straight-line rents in FFO. INTEREST COVERAGE is adjusted EBITDA divided by total interest expense. PERCENTAGE LEASED represents the total percentage of total rentable square feet owned, which is leased, including month-to-month leases, as of the date reported. Space is considered leased when the tenant has either taken physical or economic occupancy. RECURRING CAPITAL EXPENDITURES represents non-incremental building improvements and leasing costs required to maintain current revenues. Recurring capital expenditures do not include immediate building improvements that were taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to "operating standard." REDEVELOPMENT COSTS are non-recurring capital expenditures incurred in order to improve buildings to SLG's "operating standards." These building costs are taken into consideration during the underwriting for a given property's acquisition. SAME STORE NOI GROWTH is the change in the NOI (excluding straight-line rents) of the same store properties from the prior year reporting period to the current year reporting period. SAME STORE PROPERTIES include all properties that were owned during both the current and prior year reporting periods and excludes development properties prior to being stabilized for both the current and prior reporting period. SECOND GENERATION TI'S AND LC'S are tenant improvements, lease commissions, and other leasing costs incurred during leasing of second generations space. Costs incurred prior to leasing available square feet are not included until such space is leased. Second generation space excludes square footage vacant at acquisition. SLG'S SHARE OF TOTAL DEBT TO MARKET CAPITALIZATION is calculated as SLG's share of total debt divided by the sum of total debt plus market equity and preferred stock equity income redeemable shares. SLG's share of total debt includes total consolidated debt plus SLG's pro rata share of the debt of unconsolidated joint ventures less than JV partners' share of debt. Market equity assumes conversion of all OP units into common stock. TOTAL SQUARE FEET OWNED represents 100% of the square footage of properties either owned directly by SLG or which SLG has a controlling interest in (e.g. consolidated joint ventures). 34
================================================================================ CORPORATE GOVERNANCE [LOGO] ================================================================================ STEPHEN L. GREEN Chairman of the Board and CEO MARC HOLLIDAY President and Chief Investment Officer MICHAEL REID Chief Operating Officer TOM WIRTH Chief Financial Officer GERARD NOCERA Executive Vice President, Leasing ANDREW S. LEVINE General Counsel and Secretary ================================================================================ ANALYST COVERAGE ================================================================================ FIRM ANALYST PHONE EMAIL CIBC Oppenheimer Corp. Anthony Paolone (212)-667-8116 anthony.paolone@us.cibc.com --------------------------- Corinthian Partners, LLC Claus Hirsch (212) 287-1565 cwhirsch@rcn.com ---------------- Credit Suisse First Boston Larry Raiman (212) 538-2380 lawrence.raiman@csfb.com ------------------------ Deutsche Banc Alex. Brown Louis W. Taylor (212) 469-4912 louis.taylor@db.com ------------------- Goldman Sachs James H. Kammert, CFA (212) 855-0670 james.kammert@gs.com -------------------- Matthew D. Lentz (212) 357-4225 matthew.lentz@gs.com -------------------- Legg Mason Wood Walker, Inc. David Fick (410) 454-5018 dmfick@leggmason.com -------------------- Lehman Brothers, Inc. David Shulman (212) 526-3413 dshulman@lehman.com ------------------- McDonald & Company Anatole Pevnev (216) 263-4783 apevnev@mcdinvest.com --------------------- Prudential Securities James W. Sullivan (212) 778-2515 jim_sullivan@prusec.com ----------------------- Raymond James & Associates Paul Puryear (727) 573-8607 ppuryear@ecm.rjf.com -------------------- Salomon Smith Barney Jonathan Litt (212) 816-0231 jonathan.litt@ssmb.com ---------------------- SL GREEN REALTY CORP. IS FOLLOWED BY THE ANALYST(S) LISTED ABOVE. PLEASE NOTE THAT ANY OPINIONS, ESTIMATES OR FORECASTS REGARDING SL GREEN REALTY CORP.'S PERFORMANCE MADE BY THESE ANALYSTS ARE THEIRS ALONE AND DO NOT REPRESENT OPINIONS, FORECASTS OR PREDICTIONS OF SL GREEN REALTY CORP. OR ITS MANAGEMENT. SL GREEN REALTY CORP. DOES NOT BY ITS REFERENCE ABOVE OR DISTRIBUTION IMPLY ITS ENDORSEMENT OF OR CONCURRENCE WITH SUCH INFORMATION, CONCLUSIONS OR RECOMMENDATIONS. 35