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: October 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 October 23, 2001
announcing the Company's results for the third quarter ended September 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 third quarter has been filed under a
separate Form 8-k dated October 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: October 25, 2001
3
[BACKGROUND PICTURE OF BUILDINGS]
SL Green Realty Corp.
Third Quarter 2001
Supplemental Data
September 30, 2001
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[SL GREEN REALTY CORP. LOGO]
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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 September 30, 2001 that will subsequently be released on Form 10-Q
to be filed on or before November 15, 2001.
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TABLE OF CONTENTS [SL GREEN REALTY CORP. LOGO]
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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
Mortgage Investments and Preferred Equity 24
Property Data
Composition of Property Portfolio 25
Top Tenants 26
Leasing Activity Summary 27-30
Lease Expiration Schedule 31-32
Summary of Acquisition/Disposition Activity 33-34
Supplemental Definitions 35
Corporate Information 36
[SL GREEN REALTY CORP. LOGO]
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CORPORATE PROFILE [SL GREEN REALTY CORP. LOGO]
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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
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FINANCIAL HIGHLIGHTS
THIRD QUARTER 2001 [SL GREEN REALTY CORP. LOGO]
UNAUDITED
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EARNINGS PERFORMANCE
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Third quarter Funds From Operations (FFO) were $24.0 million or $0.73 per share
(diluted), 4% better than one year ago, when FFO was $20.1 million or $0.70 per
share (diluted). For the nine months ended September 30, 2001, FFO was $68.6
million or $2.25 per share (diluted), a 14% improvement over 2000 when FFO was
$55.6 million or $1.97 per share (diluted). All 2001 FFO per share results
reflect the Company's five million common share issuance in the third quarter of
2001 which increased the weighted average dilutive shares outstanding to 36.1
million, a 13% increase over the prior year.
The $3.9 million growth in third quarter FFO reflects contributions from the
following:
(1) Consolidated GAAP NOI increased $4.4 million:
o $3.4 million from 2001 acquisitions of 1370 Broadway and 317 Madison
Avenue.
o $1.8 million increase from same store properties as GAAP revenue increased
$1.7 million, net of change in credit loss. The increase in revenue is
attributable to (i) $1.0 million in rental revenue as GAAP replacement
rents which were 52% higher than the previously fully escalated rents ($1.5
million) was partially offset by higher tenant reserves ($0.6 million) and
(ii) increased escalation and reimbursement income ($0.9 million) related
to the increased energy recovery through operating escalations and
percentage rent escalations. The electric recovery rate for the quarter was
approximately 90% as compared to 80% the previous year. Revenue gains were
partially offset by $0.2 million of higher real estate taxes due to higher
assessments, while operating expenses remained flat.
o $2.2 million increase from the equity in income from unconsolidated 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 $3.3 million decrease from wholly-owned properties sold or partially sold;
17 Battery South, 110 East 42nd Street and 1412 Broadway.
(2) Investment and preferred equity income decreased $1.0 million due to (i)
$0.7 million investment income acceleration in 2000 related to redemption of a
preferred equity investment in 1370 Avenue of the Americas and (ii) lower yields
primarily from reduced interest rates ($0.5 million) and investment spreads
($0.9 million). The decrease is partially offset by
5
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FINANCIAL HIGHLIGHTS CONTINUED
THIRD QUARTER 2001 [SL GREEN REALTY CORP. LOGO]
UNAUDITED
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higher weighted average structured finance investment balance outstanding ($1.3
million).
(3) Lower interest costs ($0.9 million) associated with: higher average debt
levels due to net acquisition and new investment debt activity ($1.5 million),
the higher average debt levels due to the funding of ongoing capital projects
and working capital requirements ($0.2 million), offset by lower interest rates
from floating rate debt ($0.9 million) and the proceeds from the Company's July
common stock offering ($1.6 million).
(4) MG&A increased $1.6 million from a $1.0 million donation to the Twin Towers
Fund and higher personnel costs due to several executive management changes.
(5) Equity in income from affiliates decreased from $0.1 million to a slight
loss of $57,000. The loss is 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 14% to $13.6 million, or $0.43 per share (diluted) as compared
to $11.9 million, or $0.43 per share (diluted), for the same period in the
previous year. For the nine months ended September 30, 2001, adjusted net income
increased 25% to $39.1 million, or $1.36 per share (diluted), as compared to
$31.4 million, or $1.16 per share (diluted), for the same period in the previous
year.
The preferred shares are anti-dilutive based upon adjusted net income described
above for the periods presented.
QUARTERLY OPERATING MARGINS
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Cash NOI in the 2001 SAME STORE portfolio rose $3.3 million (15%) from $22.3
million in 2000 to $25.6 million in 2001, and operating margins before ground
rent improved from 55.2% to 60.2%. GAAP NOI increased by $1.8 million,
approximately 7% over a year ago, and GAAP operating margins after ground rent
improved from 61.48% to 62.6 %.
One of the primary drivers increasing same store cash NOI is the $1.7 million
(4%) increase in total revenue combined with a $1.7 million reduction in free
and straight-line rent, resulting in a $3.4 million (8%) increase in cash
revenue. The decrease in free rent ($1.2 million) is primarily due to 711 Third
Avenue ($0.5 million), 1372 Broadway ($0.2 million) and 292 Madison Avenue ($0.3
million). The decrease in free rent is due to several new large tenants (Ketchum
at 711 Third Avenue and Young & Rubicam at 292 Madison Avenue) having had free
rent in 2000 and now pay cash rents in 2001. The $1.7 million increase in same
store revenue is due to:
1. An increase in cash rental revenue of $1.3 million resulting from higher
replacement rents on approximately 419,000 square feet that were 45%
greater than previously fully escalated rents.
6
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FINANCIAL HIGHLIGHTS CONTINUED
THIRD QUARTER 2001 [SL GREEN REALTY CORP. LOGO]
UNAUDITED
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2. Increased escalation and reimbursement income ($0.9 million), consisting of
(i) electric reimbursement ($0.4 million), (ii) increased passthrough of
operating costs ($0.2 million) and (iii) higher percentage rent escalations
($0.3 million).
CONSOLIDATED
The Company's consolidated third quarter EBITDA margins before ground rent
improved to 66.0% compared to 65.4% for 2000. The EBITDA margin after ground
rent improved to 60.6% as compared to 59.7% 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 cash replacement rents over this 12 month
period of 46% versus previously escalated rents, (ii) income from unconsolidated
joint ventures and (iii) property acquisitions, net of property dispositions.
QUARTERLY LEASING HIGHLIGHTS
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Vacancy at June 30, 2001 was 316,397 useable square feet net of holdover
tenants. During the quarter, 281,997 additional useable office square feet
became available at an average escalated cash rent of $29.00 per rentable square
foot. Space available before holdovers to lease during the quarter totaled
594,575 useable square feet, or 5.9% of the total portfolio.
During the third quarter, 60 office leases were signed totaling 185,935 useable
square feet with new cash rents averaging $40.65 per rentable square foot
(exclusive of storage and retail space). Replacement rents were 40% greater than
rents on previously occupied space, which had a fully escalated cash rent
averaging $29.17 per rentable square foot. Average tenant concessions were one
month of free rent and an allowance of $10.57 per rentable square foot.
Including early renewals and excluding holdover tenants, the tenant renewal rate
was 19%. 13 leases have expired comprising 45,031 useable square feet that are
in a holdover status. This results in 345,645 useable square feet (net of
holdovers) remaining available as of September 30, 2001.
The Company signed 10 leases for 14,102 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 $33.41, representing an
increase of 57% over the previously fully escalated rents of $21.26.
NEW ACTIVITY
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NEW PROPERTY ACTIVITY
1250 BROADWAY ACQUISITION
On September 24, 2001 the Company acquired a 49.9% interest in 1250 Broadway
from its joint venture partner, The Carlyle Group, for approximately $29.5
million. In
7
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FINANCIAL HIGHLIGHTS CONTINUED
THIRD QUARTER 2001 [SL GREEN REALTY CORP. LOGO]
UNAUDITED
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conjunction with this transaction, Salomon Smith Barney provided $85 million of
first mortgage financing. 1250 Broadway is a 39-story building with
approximately 670,000 square feet, and occupies the block front between 31st and
32nd Streets on Broadway. It is currently 99.6% leased. The going-in cash NOI
yield on the investment is approximately 9.5% per annum. The Company is
currently implementing a $5 million capital improvement program to significantly
renovate and upgrade the property.
110 EAST 42ND STREET SALE
The Company sold a 69,700 square foot condominium interest in its property
located at 110 East 42nd Street for $14.5 million, or approximately $208 per
square foot.
NEW STRUCTURED FINANCE ACTIVITY
NEWS BUILDING PREFERRED EQUITY INVESTMENT
On September 10, 2001 the Company announced that it has made a $53.5 million
preferred equity investment in The News Building, a 1.1 million square foot
office building located at 220 East 42nd Street, New York. The interest was
acquired from affiliates of The Witkoff Group and DRA Advisors, Inc. who
continue to own a majority interest in the property. In connection with the
transaction, SL Green will assume leasing responsibilities at the property.
MEZZANINE DEBT ACTIVITY
The Company has completed the following transactions:
o Originated $57.7 million of structured finance assets at a retained yield
after seller financing of 14.6% including $30 million in October.
o Contributed $25 million to PREI under the established investment program.
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.
8
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FINANCIAL HIGHLIGHTS CONTINUED
THIRD QUARTER 2001 [SL GREEN REALTY CORP. LOGO]
UNAUDITED
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CAPITALIZATION AND LIQUIDITY
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During the quarter, the Company obtained a $65 million mortgage secured by 317
Madison Avenue. The $65 million mortgage has a term of three years with two
renewal options and bears interest at LIBOR plus 180 base points.
The Company's dividend payout ratio was 53.2% of FFO and 69.2% of FAD before
first cycle leasing costs. These dividend payout ratios have increased due to
the July common share issuance.
The Company's annual dividend distribution rate is $1.55. The Company declared a
quarterly dividend distribution to shareholders of record on September 28, 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 September 28, 2001. Both dividends were paid on October 15, 2001.
OTHER
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COMMON SHARE ISSUANCE
On July 25th, the Company 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 was to pay down the Company's unsecured revolving credit facility.
DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
The Company filed a registration statement with the SEC to register a dividend
reinvestment and stock purchase plan ("DRIP") which was declared effective on
September 24, 2001. The Company registered 3 million shares of common stock
under the DRIP.
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 1372 Broadway
292 Madison Avenue 286 Madison Avenue 290 Madison Avenue
9
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FINANCIAL HIGHLIGHTS
Third Quarter
Unaudited [SL GREEN REALTY CORP. LOGO]
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THREE MONTHS ENDED SEPTEMBER 30
2001 2000
OPERATIONAL INFORMATION
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Total Revenues (000's) $ 61,924 $ 60,874
FUNDS FROM OPERATIONS
FFO per share- diluted $ 0.73 $ 0.70
FFO Payout 53.2% 51.9%
FUNDS AVAILABLE FOR DISTRIBUTION
FAD per share- diluted $ 0.56 $ 0.47
FAD Payout 69.2% 76.5%
ADJUSTED NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
per share - diluted $ 0.44 $ 0.62
DIVIDENDS PER SHARE $ 0.3875 $ 0.3625
SAME-STORE CASH NOI INCREASE 15% 14%
CAPITALIZATION DATA (000'S)
Total Assets $ 1,346,171 $ 1,153,718
Total Debt $ 484,131 $ 472,103
Minority Interest $ 46,474 $ 41,753
Preferred Stock $ 111,117 $ 110,667
Quarter End Closing Price - SLG Common Stock $ 31.52 $ 28.06
Total Market Capitalization $ 1,878,278 $ 1,450,883
RATIOS
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Consolidated Debt to Total Market Capitalization 29.98% 35.24%
Joint Venture Debt Allocated 39.80% 40.19%
PORTFOLIO
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TOTAL BUILDINGS
DIRECTLY OWNED 19 19
JOINT VENTURES 6 4
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25 23
TOTAL SF 10,035,800 9,130,800
END OF QUARTER OCCUPANCY 98% 98%
SUPPLEMENTAL PACKAGE INFORMATION 10 THIRD QUARTER 2001
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COMPARATIVE BALANCE SHEETS
Unaudited
(000's omitted) [SL GREEN REALTY COPR. LOGO]
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9/30/2001 9/30/2000 +/- 6/30/2001 +/-
--------- --------- --- --------- ---
Assets
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Commercial real estate properties, at cost:
Land & land interests 138,337 125,572 12,765 140,657 (2,320)
Buildings & improvements fee interest 679,821 609,089 70,732 683,889 (4,068)
Buildings & improvements leasehold 143,198 137,441 5,757 141,670 1,528
Buildings & improvements under capital lease 12,208 12,208 -- 12,208 --
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973,564 884,310 89,254 978,424 (4,860)
Less accumulated depreciation (93,339) (72,179) (21,160) (86,585) (6,754)
---------- ---------- ----------
880,225 812,131 68,094 891,839 (11,614)
Other Real Estate Investments:
Investment in unconsolidated joint ventures 143,049 59,632 83,417 124,495 18,554
Mortgage loans and preferred equity investments 157,901 49,903 107,998 97,832 60,069
Properties held for sale -- 49,890 (49,890) -- --
Cash and cash equivalents 5,991 14,064 (8,073) 43,742 (37,751)
Restricted cash:
Tenant security 19,394 18,979 415 26,408 (7,014)
Escrows & other 17,710 15,604 2,106 11,108 6,602
Tenant and other receivables, net of $3,905 reserve at 9/30/01 12,229 9,132 3,097 7,008 5,221
Related party receivables 1,883 964 919 955 928
Deferred rents receivable, net of reserve for
tenant credit loss of $4,813 at 9/30/01 50,060 43,452 6,608 49,354 706
Investment in and advances to affiliates 8,570 7,943 627 7,932 638
Deferred costs, net 36,066 37,924 (1,858) 37,446 (1,380)
Other assets 13,093 34,100 (21,007) 21,546 (8,452)
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TOTAL ASSETS 1,346,171 1,153,718 192,453 1,319,665 26,506
======================== ==========
3/31/2001 +/-
--------- ---
Assets
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Commercial real estate properties, at cost:
Land & land interests 165,814 (27,477)
Buildings & improvements fee interest 785,280 (105,459)
Buildings & improvements leasehold 140,951 2,248
Buildings & improvements under capital lease 12,208 --
----------
1,104,253 (130,689)
Less accumulated depreciation (81,409) (11,929)
----------
1,022,844 (142,618)
Other Real Estate Investments:
Investment in unconsolidated joint ventures 72,673 70,376
Mortgage loans and preferred equity investments 92,982 64,919
Properties held for sale 82,153 (82,153)
Cash and cash equivalents 8,078 (2,087)
Restricted cash:
Tenant security 20,603 (1,209)
Escrows & other 22,842 (5,132)
Tenant and other receivables, net of $3,905 reserve at 9/30/01 8,940 3,289
Related party receivables 1,046 837
Deferred rents receivable, net of reserve for
tenant credit loss of $4,813 at 9/30/01 46,843 3,217
Investment in and advances to affiliates 6,919 1,651
Deferred costs, net 40,940 (4,873)
Other assets 16,650 (3,557)
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TOTAL ASSETS 1,443,513 (97,342)
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COMPARATIVE BALANCE SHEETS
Unaudited
(000's omitted) [SL GREEN REALTY COPR. LOGO]
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9/30/2001 9/30/2000 +/- 6/30/2001 +/- 3/31/2001
--------- --------- --- --------- --- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
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Mortgage notes payable 411,393 345,351 66,042 325,411 85,982 528,535
Revolving credit facilities 72,738 126,752 (54,014) 283,238 (210,500) 211,926
Derivative Instruments-fair value 4,987 -- 4,987 2,383 2,604 2,814
Accrued interest payable 1,935 3,069 (1,134) 2,533 (598) 3,676
Accounts payable and accrued expenses 20,827 28,045 (7,218) 20,922 (95) 22,122
Deferred compensation awards 1,838 -- 1,838 1,838 -- 1,838
Deferred revenue 1,363 1,444 (81) 1,587 (224) 2,073
Capitalized lease obligations 15,505 15,242 263 15,437 68 15,369
Deferred land lease payable 13,926 12,805 1,121 13,866 60 13,512
+/-
---
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------------------------------
Mortgage notes payable (117,142)
Revolving credit facilities (139,188)
Derivative Instruments-fair value 2,173
Accrued interest payable (1,741)
Accounts payable and accrued expenses (1,295)
Deferred compensation awards --
Deferred revenue (711)
Capitalized lease obligations 136
Deferred land lease payable 414
SUPPLEMENTAL PACKAGE INFORMATION 11 THIRD QUARTER 2001
Dividend and distributions payable 14,775 12,065 2,710 12,796 1,979 12,746
Security deposits 18,903 18,951 (48) 20,776 (1,873) 20,137
---------- ---------- ---------- ----------
Total Liabilities 578,190 563,724 14,466 700,787 (122,596) 834,748
Minority interest (2,278 units outstanding) 46,474 41,753 4,721 43,546 2,928 43,062
8% Preferred Income Equity Redeemable Shares
$0.01 par value, $25.00 mandatory liquidation
preference, 4,600 outstanding 111,117 110,667 450 111,002 114 110,888
STOCKHOLDERS' EQUITY
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Common stock, $.01 par value 100,000
shares authorized, 29,945 issued and
outstanding at 9/30/01 300 245 55 249 51 248
Additional paid - in capital 582,874 428,635 154,239 436,262 146,612 433,482
Deferred compensation plans & officer loans (8,400) (5,939) (2,461) (9,072) 671 (9,400)
Accumulated Other Comprehensive Income (loss) (4,500) -- (4,500) (1,896) (2,604) (2,409)
Retained earnings 40,116 14,633 25,483 38,787 1,329 32,894
---------- ---------- ---------- ----------
Total Stockholders' Equity 610,390 437,574 172,816 464,330 146,060 454,815
---------- ---------- ---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,346,171 1,153,718 192,453 1,319,665 26,506 1,443,513
======================== ========== =========
Dividend and distributions payable 2,030
Security deposits (1,234)
Total Liabilities (256,558)
Minority interest (2,278 units outstanding) 3,411
8% Preferred Income Equity Redeemable Shares
$0.01 par value, $25.00 mandatory liquidation
preference, 4,600 outstanding 229
STOCKHOLDERS' EQUITY
-------------------------------------------------------------
Common stock, $.01 par value 100,000
shares authorized, 29,945 issued and
outstanding at 9/30/01 52
Additional paid - in capital 149,392
Deferred compensation plans & officer loans 1,000
Accumulated Other Comprehensive Income (loss) (2,091)
Retained earnings 7,221
Total Stockholders' Equity 155,575
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (97,342)
SUPPLEMENTAL PACKAGE INFORMATION 12 THIRD QUARTER 2001
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COMPARATIVE STATEMENTS OF OPERATIONS
Unaudited
($000'S OMITTED) [SL GREEN REALTY CORP. LOGO]
===================================================================================================================================
Three Months Ended
SEP-01 SEP-00 +/- %
------ ------ --- -
REVENUES
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Rental revenue, net 46,426 44,482 1,944 4%
Free rent 877 1,978 (1,101) -56%
Amortization of free rent (739) (851) 112 -13%
---------- ---------- ---------
Net free rent 138 1,127 (989) -88%
-
Straight-line rent 1,783 2,237 (453) -20%
Allowance for S/L tenant credit loss (377) (199) (178) 90%
Escalation and reimbursement revenues 9,114 7,593 1,521 20%
Signage rent 424 496 (72) -14%
Preferred Equity Investment 630 1,272 (642) -50%
Investment income 3,306 3,696 (391) -11%
Other income 479 170 309 182%
---------- ---------- ---------
TOTAL REVENUES, NET 61,924 60,874 1,050 2%
Equity in income/(loss) from affiliates (57) 71 (128) -181%
Equity in income from unconsolidated joint ventures 2,752 586 2,166 370%
EXPENSES
-----------------------------------------------------------------------------------------------------------------------------
Operating expenses 15,076 15,260 (184) -1%
Ground rent 3,101 3,164 (63) -2%
Real estate taxes 7,452 7,299 152 2%
Marketing, general and administrative 4,116 2,540 1,576 62%
---------- ---------- ---------
TOTAL OPERATING EXPENSES 29,745 28,263 1,481 5%
EBITDA 34,874 33,268 1,608 5%
-
Interest 9,785 10,698 (913) -9%
Depreciation and amortization 9,047 8,300 747 9%
---------- ---------- ---------
INCOME BEFORE MINORITY INTEREST 16,042 14,270 1,772 12%
Extraordinary loss- early debt extinguishment (332) (332) 0%
Gain on sale of properties 647 - 647 0%
Gain on redemption of preferred equity inv. - 5,624 (5,624) -100%
Cumulative effect of accounting change - - - 0%
Minority interest - OP (1,010) (1,496) 486 -32%
---------- ---------- ---------
NET INCOME 15,347 18,398 (3,051) -17%
Dividends on preferred shares 2,300 2,300 - 0%
Preferred stock accretion 114 107 7 6%
---------- ---------- ---------
INCOME AVAILABLE FOR COMMON SHARES 12,933 15,991 (3,058) -19%
========== ========== =========
Three Months Ended Nine Months Ended
JUN-01 SEP-01
------ ------
REVENUES
---------------------------------------------------------------------------------------------------------
Rental revenue, net 51,208 149,625
Free rent 1,136 3,961
Amortization of free rent (816) (2,393)
------------------ -----------------
Net free rent 320 1,568
Straight-line rent 2,335 6,669
Allowance for S/L tenant credit loss (458) (1,484)
Escalation and reimbursement revenues 7,296 24,467
Signage rent 179 953
Preferred Equity Investment - 630
Investment income 5,046 11,626
Other income 550 1,339
------------------ -----------------
TOTAL REVENUES, NET 66,476 195,394
Equity in income/(loss) from affiliates (658) (984)
Equity in income from unconsolidated joint ventures 1,756 6,021
EXPENSES
---------------------------------------------------------------------------------------------------------
Operating expenses 14,081 44,983
Ground rent 3,159 9,419
Real estate taxes 7,958 23,590
Marketing, general and administrative 3,668 11,331
------------------ -----------------
TOTAL OPERATING EXPENSES 28,866 89,323
EBITDA 38,708 111,108
Interest 13,171 36,853
Depreciation and amortization 9,189 27,956
------------------ -----------------
INCOME BEFORE MINORITY INTEREST 16,348 46,299
Extraordinary loss- early debt extinguishment - (430)
Gain on sale of properties 3,002 5,163
Gain on redemption of preferred equity inv. - -
Cumulative effect of accounting change - (532)
Minority interest - OP (1,405) (3,496)
------------------ -----------------
NET INCOME 17,945 47,004
Dividends on preferred shares 2,300 6,900
Preferred stock accretion 115 343
------------------ -----------------
INCOME AVAILABLE FOR COMMON SHARES 15,530 39,761
================== =================
SUPPLEMENTAL PACKAGE INFORMATION 13 THIRD QUARTER 2001
===================================================================================================================================
COMPARATIVE STATEMENTS OF OPERATIONS
Unaudited
($000'S OMITTED) [SL GREEN REALTY CORP. CORP.]
===================================================================================================================================
Three Months Ended
SEP-01 SEP-00
------ ------
RATIOS
--------------------------------------------------------------------------------------------------------------------
MG&A to Real Estate Revenue, net 7.16% 4.56%
MG&A to Total Revenue, net 6.65% 4.17%
Operating Expense to Real Estate Revenue, net 26.21% 27.38%
EBITDA to Real Estate Revenue, net 60.64% 59.69%
EBITDA before Ground Rent to Real Estate Revenue, net 66.03% 65.36%
($000's omitted - except per share data)
PER SHARE DATA:
--------------------------------------------------------------------------------------------------------------------
Income available for common shares 12,933 15,991
Net income per share (basic) 0.45 0.65
Net income per share (diluted) 0.44 0.62
Book/Tax Depreciation Adjustment 1,843 332
Book/Tax Gain Recognition Adjustment 1,393 -
Other Operating Adjustments (2,803) (3,541)
C-corp Earnings 743 61
------------------ -------------
TAXABLE INCOME 14,109 12,843
Dividend per share 0.3875 0.3625
Estimated payout of taxable income 70% 78%
Basic weighted average common shares 28,511 24,458
Diluted weighted average common shares and
common share equivalents outstanding 31,373 31,999
Three Months Ended Nine Months Ended
JUN-01 SEP-01
------ ------
RATIOS
------------------------------------------------------------------------------------------------------------------
MG&A to Real Estate Revenue, net 6.02% 6.23%
MG&A to Total Revenue, net 5.52% 5.80%
Operating Expense to Real Estate Revenue, net 23.13% 24.74%
EBITDA to Real Estate Revenue, net 63.58% 61.12%
EBITDA before Ground Rent to Real Estate Revenue, net 68.77% 66.30%
($000's omitted - except per share data)
PER SHARE DATA:
------------------------------------------------------------------------------------------------------------------
Income available for common shares 15,530 39,761
Net income per share (basic) 0.63 1.53
Net income per share (diluted) 0.60 1.51
Book/Tax Depreciation Adjustment 1,985 5,643
Book/Tax Gain Recognition Adjustment 998 3,077
Other Operating Adjustments (3,809) (10,095)
C-corp Earnings 658 1,671
----------------- ----------------
TAXABLE INCOME 15,362 40,057
Dividend per share 0.3875 1.1625
Estimated payout of taxable income 62% 76%
Basic weighted average common shares 24,706 25,988
Diluted weighted average common shares and
common share equivalents outstanding 32,183 28,792
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
SUPPLEMENTAL PACKAGE INFORMATION 14 THIRD QUARTER 2001
===================================================================================================================================
JOINT VENTURE STATEMENTS
BALANCE SHEET FOR UNCONSOLIDATED JOINT VENTURES
UNAUDITED
(000'S OMITTED) [SL GREEN REALTY CORP. LOGO]
===================================================================================================================================
SEPTEMBER 30, 2001
-------------------------------------------------------
TOTAL PROPERTY SLG PROPERTY INTEREST
-------------- ---------------------
Land & land interests 129,751 75,552
Buildings & improvements 547,460 321,570
------------------------- -------------------------
677,211 397,122
Less accumulated depreciation (15,532) (10,072)
-------- --------
Net Real Estate 661,679 387,050
Cash and cash equivalents 10,638 6,578
Restricted cash 23,433 15,775
Tenant receivables, net of $95 reserve 5,585 3,963
Deferred rents receivable, net of reserve for
tenant credit loss of $308 at 9/30/01 5,600 3,556
Deferred costs, net 9,095 6,464
Other assets 4,681 2,786
------ ------
TOTAL ASSETS 720,712 426,172
========================== ==========================
Mortgage loan payable 445,000 263,478 references page 19 & 22
Accrued interest payable 1,642 885
Accounts payable and accrued expenses 18,266 14,362
Security deposits 6,340 4,375
Contributed Capital (1) 249,464 143,072 references page 11
-------- --------
TOTAL LIABILITIES AND EQUITY 720,712 426,172
========================== ==========================
SEPTEMBER 30, 2000
-----------------------------------------------------------
TOTAL PROPERTY SLG PROPERTY INTEREST
-------------- ---------------------
Land & land interests 69,468 32,774
Buildings & improvements 288,625 135,781
---------------------------- ----------------------------
358,093 168,555
Less accumulated depreciation (5,948) (2,786)
------- -------
Net Real Estate 352,145 165,769
Cash and cash equivalents 5,857 2,969
Restricted cash 9,937 4,632
Tenant receivables, net of $95 reserve 1,611 742
Deferred rents receivable, net of reserve for
tenant credit loss of $308 at 9/30/01 3,680 1,669
Deferred costs, net 4,874 2,168
Other assets 2,977 2,028
------ -----
TOTAL ASSETS 381,081 179,977
============================= ============================
Mortgage loan payable 238,650 111,040
Accrued interest payable 1,559 745
Accounts payable and accrued expenses 6,382 3,013
Security deposits 5,915 2,726
Contributed Capital (1) 128,575 62,453
-------- ------
TOTAL LIABILITIES AND EQUITY 381,081 179,977
============================= ============================
--------------------------------------------------------------------------------
As of September 30, 2001 the Company has six joint venture interests
representing a 50% interest in 180 Madison Avenue acquired in December 2000, a
49.9% interest in 1250 Broadway acquired in September 2001, 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.
Additional detail is available on page 33.
(1) This analysis excludes certain residual interests in the entity that held 90
Broad Street (sold November 2000).
--------------------------------------------------------------------------------
SUPPLEMENTAL PACKAGE INFORMATION 15 THIRD QURTER 2001
===================================================================================================================================
JOINT VENTURE STATEMENTS
STATEMENTS OF OPERATIONS FOR UNCONSOLIDATED JOINT VENTURES
UNAUDITED
(000'S OMITTED) [SL GREEN REALTY CORP. LOGO]
===================================================================================================================================
THREE MONTHS ENDED SEPTEMBER 30, 2001
-----------------------------------------------------------------------------
TOTAL PROPERTY SLG PROPERTY INTEREST SLG SUBSIDIARY
-------------- --------------------- --------------
Revenues
-----------------------------------------------------------------------------------------------------------------------------------
Rental Revenue, net 21,628 11,463
Free rent 192 140
Amortization of free rent (71) (37)
-------------- ---------------------
Net free rent 121 103
Straight-line rent 1,008 516
Allowance for S/L tenant credit loss (185) (105)
Escalation and reimbursement revenues 4,999 2,657
Investment income 174 93
Other income 24 12
-------------- ---------------------
TOTAL REVENUES, NET 27,770 14,738
EXPENSES
-----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 6,827 3,577
Real estate taxes 4,264 2,269
-------------- ---------------------
TOTAL OPERATING EXPENSES 11,091 5,846
GAAP NOI 16,863 8,997
CASH NOI 9,123 8,378
Interest 7,159 3,733
Depreciation and amortization 4,279 2,408
-------------- ---------------------
NET INCOME (1) 5,240 2,752 references page 13
Plus: Real Estate Depreciation 3,903 2,225 references page 18
Plus: Extraordinary Loss - -
Plus: Management & Leasing Fees - - 192
-------------- --------------------- -----------------------
FUNDS FROM OPERATIONS 9,143 4,977
FAD ADJUSTMENTS:
-----------------------------------------------------------------------------------------------------------------------------------
Plus: Non Real Estate Depreciation 376 183
Plus: 2% Allowance for S/L Tenant Credit Loss 185 91
Less: Free and S/L Rent (1,129) (556)
Less: Second Cycle Tenant Improvement, -
Leasing Commissions & Recurring Capex (3,656) (2,692)
-------------- ---------------------
(4,224) (2,973)
============== =====================
-----------------------------------------------------------------------------------------------------------------------------------
Operating Expense to Real Estate Revenue, net 24.60% 24.27%
GAAP NOI to Real Estate Revenue, net 60.75% 61.05%
Cash NOI to Real Estate Revenue, net 32.87% 56.85%
-----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED SEPTEMBER 30, 2000
-------------------------------------------------------------------------
TOTAL PROPERTY SLG PROPERTY INTEREST SLG SUBSIDIARY
-------------- --------------------- --------------
Revenues
-------------------------------------------------------
Rental Revenue, net 13,141 6,202
Free rent 670 270
Amortization of free rent (82) (36)
-------------------- -----------------------
Net free rent 588 234
Straight-line rent 712 324
Allowance for S/L tenant credit loss (189) (82)
Escalation and reimbursement revenues 2,171 978
Investment income 190 93
Other income 15 6
-------------------- -----------------------
TOTAL REVENUES, NET 16,628 7,755
EXPENSES
-----------------------------------------------------------------------------------------------------------------------------------
Operating expenses 5,595 2,530
Real estate taxes 2,695 1,297
-------------------- -----------------------
TOTAL OPERATING EXPENSES 8,290 3,827
GAAP NOI 8,527 4,010
CASH NOI 7,227 3,452
Interest 5,166 2,400
Depreciation and amortization 2,047 942
-------------------- -----------------------
NET INCOME (1) 1,125 586
Plus: Real Estate Depreciation 1,813 842
Plus: Extraordinary Loss - -
Plus: Management & Leasing Fees - - 65
-------------------- ----------------------- ---------------
FUNDS FROM OPERATIONS 2,938 1,428
FAD ADJUSTMENTS:
-----------------------------------------------------------------------------------------------------------------------------------
Plus: Non Real Estate Depreciation 233 100
Plus: 2% Allowance for S/L Tenant Credit Loss 189 82
Less: Free and S/L Rent (1,300) (558)
Less: Second Cycle Tenant Improvement, -
Leasing Commissions & Recurring Capex (595) (255)
-------------------- -----------------------
(1,473) (631)
==================== ======================
-----------------------------------------------------------------------------------------------------------------------------------
Operating Expense to Real Estate Revenue, net 33.68% 32.69%
GAAP NOI to Real Estate Revenue, net 51.33% 51.82%
Cash NOI to Real Estate Revenue, net 43.50% 44.62%
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL PACKAGE INFORMATION 16 THIRD QUARTER 2001
====================================================================================================================================
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
($000'S OMITTED)
[SL GREEN REALTY CORP. LOGO]
====================================================================================================================================
DEFERRED ACCUMULATED
RETAINED EARNINGS / COMPENSATION OTHER
COMMON ADDITIONAL (DISTRIBUTIONS IN PLAN / OFFICERS' COMPREHENSIVE
STOCK AID-IN CAPITAL EXCESS OF EARNINGS) LOAN LOSS TOTAL
-------- -------------- --------------------- --------------- ------------- -----
BALANCE AT DECEMBER 31, 1998 240 416,939 (8,559) (3,794) 404,826
BALANCE AT DECEMBER 31, 1999 242 421,958 (9,422) (6,674) -- 406,104
Net Income 86,217 86,217
Preferred dividend and accretion (9,626) (9,626)
Deferred compensation plan 253 6 259
Exercise of employee stock options 3 4,359 4,362
Cash distributions declared ($1.475 per
common share) (36,003) (36,003)
Redemption of operating partnership units 1 2,128 2,129
Amortization of officers' loan and
deferred compensation 1,631 1,631
------- --------- ---------- --------- -------- ---------
BALANCE AT DECEMBER 31, 2000 246 428,698 31,166 (5,037) -- 455,073
Net Income 47,004 47,004
Cumulative Effect of Accounting Change (811) (811)
Preferred Dividend and Accretion (7,243) (7,243)
Proceeds from common stock offering &
revaluation of minority interest ($2,927) 50 144,874 144,924
Deferred compensation plan 1 3,704 (4,410) (705)
Exercise of employee stock options 3 5,051 5,054
Cash distributions declared ($1.1625 per
common share) (30,811) (30,811)
Redemption of operating partnership units 547 547
Comprehensive Income - Unrealized loss of
derivative instruments (3,689) (3,689)
Amortization of officers' loan and
deferred compensation 1,047 1,047
------- --------- ---------- --------- -------- ---------
BALANCE AT SEPTEMBER 30, 2001 (UNAUDITED) 300 582,874 40,116 (8,400) (4,500) 610,390
====================================================================================================================================
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION
====================================================================================================================================
COMMON
STOCK OP UNITS BASIC SHARES DILUTION FACTOR DILUTED SHARES
------- -------- ------------ --------------- --------------
BALANCE AT DECEMBER 31, 1998 23,951,826 2,428,056 26,379,882 26,379,882
BALANCE AT DECEMBER 31, 1999 24,184,217 2,428,056 26,612,273 26,612,273
BALANCE AT DECEMBER 31, 2000 24,515,994 2,307,515 26,823,509 26,823,509
Option/OP Units Converted 277,879 (29,111) 248,768 (152,981) 95,787
Deferred Compensation Program 150,500 150,500 (22,445) 128,055
Common Stock Offering 5,000,000 5,000,000 (3,772,894) 1,227,106
Unexercised Option Share Equivalents -- 517,948 517,948
Preferred Stock "If Converted" Method
to common stock -- 4,698,900 4,698,900
------------ ----------- --------------- --------------- ------------
BALANCE AT SEPTEMBER 30, 2001(UNAUDITED) 29,944,373 2,278,404 32,222,777 1,268,528 33,491,305
SUPPLEMENTAL PACKAGE INFORMATION 17 THIRD QUARTER 2001
====================================================================================================================================
COMPARATIVE COMPUTATION OF FFO AND FAD
UNAUDITED
($000'S OMITTED - EXCEPT PER SHARE DATA)
====================================================================================================================================
THREE MONTHS ENDED SEPT 30 THREE MONTHS ENDED JUNE 30
-------------------------- --------------------------
2001 2000 % CHANGE 2001 % CHANGE
---- ---- -------- ---- --------
FUNDS FROM OPERATIONS
---------------------------------------------------------------------------------------------------- --------------------
Net Income before Minority Interests 16,042 14,270 12% 16,348 -2%
Add: Depreciation and Amortization 9,047 8,300 9% 9,189 -2%
FFO adjustment for Joint Ventures 2,225 842 164% 1,358 64%
Less: Dividends on Preferred Shares 2,300 2,300 0% 2,300 0%
Non Real Estate Depreciation/Amortization of
Finance Costs 1,059 1,042 2% 1,157 -9%
------- ------- -------
FUNDS FROM OPERATIONS - BASIC 23,955 20,070 19% 23,438 2%
FUNDS FROM OPERATIONS - BASIC PER SHARE 0.78 0.75 4% 0.87 -10%
Add: Dividends on Preferred Shares 2,300 2,300 0% 2,300 0%
------- ------- -------
FUNDS FROM OPERATIONS - DILUTED 26,255 22,370 17% 25,738 2%
FUNDS FROM OPERATIONS - DILUTED PER SHARE 0.73 0.70 4% 0.80 -9%
FUNDS AVAILABLE FOR DISTRIBUTION
-----------------------------------------------------------------------------------------------------------------------------------
FFO (1) 26,255 20,070 31% 25,738 2%
Add: Non Real Estate Depreciation 1,059 1,042 2% 1,157 -9%
2% Allowance for S/L Tenant Credit Loss 377 199 90% 458 -18%
Straight-line Ground Rent 60 312 -81% 354 -83%
Non-cash Deferred Compensation 349 422 -17% 350 0%
FAD adjustment for Joint Ventures & Emerge (2,922) (631) 363% (2,940) -1%
Less: Straight-line Rental Income 1,783 2,237 -20% 2,335 -24%
Free Rent - Occupied (Net of Amortization, incl. First Cycle) 138 1,127 -88% 320 -57%
Amortization of Mortgage Investment Discount 177 1,119 -84% (5,608) -103%
Second Cycle Tenant Improvement & Leasing
Commission on Existing Space 2,449 3,118 -21% 1,799 36%
Recurring Building Improvements 431 871 -51% 481 -10%
------- ------- -------
FUNDS AVAILABLE FOR DISTRIBUTION 20,200 12,942 56% 25,790 -22%
Diluted per Share 0.56 0.47 19% 0.80 -30%
First Cycle Leasing Costs
Tenant Improvement & Leasing Commissions 7 680 -99% 14 -50%
------- ------- -------
FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST CYCLE LEASING COSTS 20,193 12,262 65% 25,776 -22%
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.64 0.45 43% 0.94 -31%
Redevelopment Costs 4,147 3,778 10% 2,225 86%
-----------------------------------------------------------------------------------------------------------------------------------
PAYOUT RATIO OF FUNDS FROM OPERATIONS 53.24% 51.85% 3% 48.43% 10%
PAYOUT RATIO OF FUNDS AVAILABLE FOR DISTRIBUTION
BEFORE FIRST CYCLE 69.20% 76.47% -10% 48.34% 43%
-----------------------------------------------------------------------------------------------------------------------------------
===================================================================================================
[SL GREEN REALTY CORP. LOGO]
===================================================================================================
THREE MONTHS ENDED MAR 31
-------------------------
2001 % CHANGE
---- --------
FUNDS FROM OPERATIONS
--------------------------------------------------------------------------------------------------
Net Income before Minority Interests 13,909 15%
Add: Depreciation and Amortization 9,720 -7%
FFO adjustment for Joint Ventures 996 123%
Less: Dividends on Preferred Shares 2,300 0%
Non Real Estate Depreciation/Amortization of
Finance Costs 1,155 -8%
-------
FUNDS FROM OPERATIONS - BASIC 21,170 13%
FUNDS FROM OPERATIONS - BASIC PER SHARE 0.79 -1%
Add: Dividends on Preferred Shares 2,300 0%
-------
FUNDS FROM OPERATIONS - DILUTED 23,470 12%
FUNDS FROM OPERATIONS - DILUTED PER SHARE 0.73 0%
FUNDS AVAILABLE FOR DISTRIBUTION
------------------------------------------------------------------------------------------------
FFO (1) 23,470 12%
Add: Non Real Estate Depreciation 1,155 -8%
2% Allowance for S/L Tenant Credit Loss 649 -42%
Straight-line Ground Rent 354 -83%
Non-cash Deferred Compensation 349 0%
FAD adjustment for Joint Ventures & Emerge (739) 295%
Less: Straight-line Rental Income 2,551 -30%
Free Rent - Occupied (Net of Amortization, incl. First Cycle) 1,110 -88%
Amortization of Mortgage Investment Discount 759 -77%
Second Cycle Tenant Improvement & Leasing
Commission on Existing Space 3,558 -31%
Recurring Building Improvements 327 32%
-------
FUNDS AVAILABLE FOR DISTRIBUTION 16,932 19%
Diluted per Share 0.53 6%
First Cycle Leasing Costs
Tenant Improvement & Leasing Commissions 539 -99%
-------
FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST CYCLE LEASING COSTS 16,393 23%
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.51 26%
Redevelopment Costs 2,789 49%
------------------------------------------------------------------------------------------------
PAYOUT RATIO OF FUNDS FROM OPERATIONS 53.00% 0%
PAYOUT RATIO OF FUNDS AVAILABLE FOR DISTRIBUTION
BEFORE FIRST CYCLE 72.57% -5%
------------------------------------------------------------------------------------------------
(1) For the calculation of funds available for distribution, the FFO Diluted was used for 2Q01 and 3Q01.
SUPPLEMENTAL PACKAGE INFORMATION 18 THIRD QUARTER 2001
==================================================================================================================================
SELECTED FINANCIAL DATA
CAPITALIZATION ANALYSIS
UNAUDITED
($000'S OMITTED) [SL GREEN REALTY CORP. LOGO]
==================================================================================================================================
SEPTEMBER 30, JUNE 30, MARCH 31,
2001 2000 2001 2001
---- ---- ---- ----
MARKET CAPITALIZATION
----------------------------------------------------------------------------------------------------------------------------------
Common Equity:
Common Shares Outstanding 29,945 24,516 24,859 24,705
OP Units Outstanding 2,278 2,308 2,281 2,283
--------- --------- --------- ---------
TOTAL COMMON EQUITY (SHARES AND UNITS) 32,223 26,824 27,140 26,988
Share Price at (End of Period) 31.52 28.06 30.31 27.45
--------- ------- --------- ---------
Equity Market Value 1,015,669 752,740 822,621 740,821
Preferred Equity at Liquidation Value: 115,000 115,000 115,000 115,000
REAL ESTATE DEBT
-----------------------------------------------------------------------------------------------------------------------------------
Property Level Mortgage Debt 411,393 345,351 325,411 528,535
Company's portion of Joint Venture Mortgages 263,478 111,040 213,452 128,408
Outstanding Balance on - Secured Credit Line 19,738 27,752 45,238 44,926
Outstanding Balance on - Unsecured Credit Line 53,000 99,000 238,000 167,000
--------- --------- --------- ---------
TOTAL COMBINED DEBT 747,609 583,143 822,102 868,869
TOTAL MARKET CAP (DEBT & EQUITY) 1,878,278 1,450,883 1,759,723 1,724,690
LINES OF CREDIT AVAILABILITY
-----------------------------------------------------------------------------------------------------------------------------------
Senior Unsecured Line of Credit
Maximum Line Available 300,000 250,000 300,000 300,000
Letters of Credit issued 5,000 -- 5,000 5,000
Outstanding Balance 53,000 99,000 238,000 167,000
--------- --------- --------- ---------
Net Line Availability 242,000 151,000 57,000 128,000
--------- --------- --------- ---------
Secured Line of Credit
Maximum Line Available 60,000 50,000 60,000 60,000
Outstanding Balance 19,738 27,752 45,238 44,926
--------- --------- --------- ---------
Prudential Line Availability 40,262 22,248 14,762 15,074
--------- --------- --------- ---------
Total Availability under Lines of Credit 282,262 173,248 71,762 143,074
--------- --------- --------- ---------
RATIO ANALYSIS
----------------------------------------------------------------------------------------------------------------------------------
Consolidated Basis
Debt to Market Cap Ratio 29.98% 35.24% 39.36% 46.39%
Debt to Gross Real Estate Book Ratio (1) 48.31% 48.23% 58.31% 59.23%
Secured Real Estate Debt to Secured Assets Gross Book (1) 67.51% 55.77% 68.37% 75.98%
Unsecured Debt to Unencumbered
Assets-Gross Book Value (1) 15.67% 32.86% 62.74% 46.18%
Secured Line of Credit to Structured Finance Assets (1) 12.50% 46.33% 41.95% 48.32%
Joint Ventures Allocated
Combined Debt to Market Cap Ratio 39.80% 40.19% 46.72% 50.38%
Debt to Gross Real Estate Book Ratio (1) 53.77% 50.96% 60.10% 60.23%
Secured Debt to Secured Assets Gross Book (1) 67.38% 57.99% 67.15% 73.87%
Unsecured Debt to Unencumbered
Assets-Gross Book Value (1) 15.67% 32.86% 62.74% 46.18%
Secured Line of Credit to Structured Finance Assets (1) 12.50% 46.33% 41.95% 48.32%
(1) Excludes property under capital lease
SUPPLEMENTAL PACKAGE INFORMATION 19 THIRD QUARTER 2001
===========================================================================================================================
SELECTED FINANCIAL DATA
PROPERTY NOI AND COVERAGE RATIOS
UNAUDITED
($000'S OMITTED)
===========================================================================================================================
THREE MONTHS ENDED SEPTEMBER 30
----------------------------------------------
2001 2000 +/- % CHANGE
---- ---- --- --------
FUNDS FROM OPERATIONS 23,955 20,070 3,885 19%
----------------------------------------------------------------------------------------------------------------------------
Less: Non - Building Revenue 6,354 6,023 331 5%
Plus: 2% Reserve for Tenant Credit Loss 377 199 178 90%
Interest Expense (incl. Capital Lease Int.) 9,785 10,698 (913) -9%
Non Real Estate Depreciation 1,059 1,042 17 2%
MG&A Expense 4,116 2,540 1,576 62%
Preferred Dividend 2,300 2,300 -- 0%
------ ------ --
GAAP NOI 35,237 30,826 4,411 14%
CASH ADJUSTMENTS
----------------------------------------------------------------------------------------------------------------------------
Less: Free Rent (Net of Amortization) 138 1,127 (989) -88%
Straightline Revenue Adjustment 1,783 2,237 (454) -20%
Plus: Ground Lease Straight-line Adjustment 60 312 (252) -81%
--- ---- -----
CASH NOI 33,376 27,774 5,602 20%
Real Estate Revenue, net 57,886 55,936 1,950 3%
OPERATING MARGINS
----------------------------------------------------------------------------------------------------------------------------
GAAP NOI/Real Estate Revenue, net 60.87% 55.11%
Cash NOI/Real Estate Revenue, net 57.66% 49.65%
GAAP NOI before Ground Rent/Real Estate Revenue, net 60.87% 60.77%
Cash NOI before Ground Rent/Real Estate Revenue, net 57.55% 54.75%
COMPONENTS OF DEBT AND FIXED CHARGES
----------------------------------------------------------------------------------------------------------------------------
Interest on Fixed Rate Loans 5,705 4,376 1,329 30%
Interest on Floating Rate Loans 4,080 6,322 (2,242) -35%
Fixed Amortization Principal Payments 1,196 943 253 27%
------ ---- ----
TOTAL DEBT SERVICE 10,981 11,641 (660) -6%
Payments under Ground Lease Arrangements 3,041 2,852 189 7%
Preferred Stock Dividend 2,300 2,300 -- 0%
------ ------ --
TOTAL FIXED CHARGES 16,322 16,793 (471) -3%
----------------------------------------------------------------------------------------------------------------------------
Adjusted EBITDA 39,005 34,531
Interest Coverage Ratio 3.99 3.23
Debt Service Coverage ratio 3.55 2.97
Fixed Charge Coverage ratio 2.39 2.06
----------------------------------------------------------------------------------------------------------------------------
==============================================================================================================
[SL GREEN REALTY CORP. LOGO]
==============================================================================================================
THREE MONTHS ENDED JUNE 30
--------------------------------
2001 +/- % CHANGE
---- --- --------
FUNDS FROM OPERATIONS 23,438 517 2%
-------------------------------------------------------------------------------------------------------------
Less: Non - Building Revenue 6,195 159 3%
Plus: 2% Reserve for Tenant Credit Loss 458 (81) -18%
Interest Expense (incl. Capital Lease Int.) 13,171 (3,386) -26%
Non Real Estate Depreciation 1,157 (98) -8%
MG&A Expense 3,668 448 12%
Preferred Dividend 2,300 -- 0%
------ --
GAAP NOI 37,997 (2,760) -7%
CASH ADJUSTMENTS
-------------------------------------------------------------------------------------------------------------
Less: Free Rent (Net of Amortization) 320 (182) -57%
Straightline Revenue Adjustment 2,335 (552) -24%
Plus: Ground Lease Straight-line Adjustment 354 (294) -83%
---- -----
CASH NOI 35,696 (2,320) -6%
Real Estate Revenue, net 61,338 (3,452) -6%
OPERATING MARGINS
-------------------------------------------------------------------------------------------------------------
GAAP NOI/Real Estate Revenue, net 61.95%
Cash NOI/Real Estate Revenue, net 58.20%
GAAP NOI before Ground Rent/Real Estate Revenue, net 72.25%
Cash NOI before Ground Rent/Real Estate Revenue, net 67.92%
COMPONENTS OF DEBT AND FIXED CHARGES
-------------------------------------------------------------------------------------------------------------
Interest on Fixed Rate Loans 6,876 (1,171) -17%
Interest on Floating Rate Loans 6,295 (2,215) -35%
Fixed Amortization Principal Payments 1,004 192 19%
------ ----
TOTAL DEBT SERVICE 14,175 (3,194) -23%
Payments under Ground Lease Arrangements 2,806 235 8%
Preferred Stock Dividend 2,300 -- 0%
------ --
TOTAL FIXED CHARGES 19,280 (2,957) -15%
-------------------------------------------------------------------------------------------------------------
Adjusted EBITDA 41,379
Interest Coverage Ratio 3.14
Debt Service Coverage ratio 2.92
Fixed Charge Coverage ratio 2.15
-------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL PACKAGE INFORMATION 20 THIRD QUARTER 2001
====================================================================================================================================
SELECTED FINANCIAL DATA
2001 SAME STORE
UNAUDITED
($000'S OMITTED) [SL GREEN REALTY CORP. LOGO]
====================================================================================================================================
THREE MONTHS ENDED SEPTEMBER 30 THREE MONTHS ENDED JUNE 30
----------------------------------- --------------------------
2001 2000 +/- % CHANGE 2001 +/- % CHANGE
---- ---- --- -------- ---- --- --------
REVENUES
------------------------------------------------------------------------------------------------------------------------------------
Rental Revenue 39,760 38,745 1,015 3% 39,789 (29) 0%
Credit Loss (279) (132) (147) 111% (283) 4 -1%
Signage Rent 372 496 (124) -25% 141 231 164%
Escalation & Reimbursement Revenues 7,170 6,304 866 14% 6,155 1,015 16%
Investment & Other Income 388 281 107 38% 324 64 20%
------ ------ ----- ------ ------
TOTAL REVENUES 47,411 45,694 1,717 4% 46,125 1,286 3%
EXPENSES
------------------------------------------------------------------------------------------------------------------------------------
Operating Expense 11,667 11,665 2 0% 10,146 1,521 15%
Ground Rent 3,101 3,164 (63) -2% 3,159 (58) 0%
Real Estate Taxes 6,111 5,934 177 3% 5,738 373 7%
------ ------ ---- ------ ------
TOTAL OPERATING EXPENSES 20,879 20,763 116 1% 19,043 1,836 10%
EBITDA 26,532 24,931 1,601 6% 27,083 (551) -2%
Interest 6,862 6,065 797 13% 6,977 (115) -2%
Depreciation & Amortization 6,622 6,127 495 8% 6,249 373 6%
Income Before Minority Interest 13,048 12,739 309 2% 13,856 (808) -6%
Plus: Real Estate Depreciation & Amortization 6,403 5,738 665 12% 6,031 372 6%
------ ------ ----- ------ ------
FFO 19,451 18,477 974 5% 19,887 (436) -2%
Less: Non - Building Revenue 175 252 (77) -31% 223 (48) -21%
Plus: 2% Reserve for Tenant Credit Loss 279 132 147 111% 283 (4) -1%
Interest Expense 6,862 6,065 797 13% 6,977 (115) -2%
Non Real Estate Depreciation 220 389 (169) -43% 219 1 1%
------ ------ ----- ------ ------
GAAP NOI 26,637 24,811 1,826 7% 27,143 (506) -2%
CASH ADJUSTMENTS
------------------------------------------------------------------------------------------------------------------------------------
Less: Free Rent (Net of Amortization) (127) 1,026 (1,153) -112% 281 (408) -145%
Straightline Revenue Adjustment 1,250 1,784 (534) -30% 1,622 (372) -23%
Plus: Ground Lease Straight-line Adjustment 121 312 (191) -61% 354 - 0%
------ ------ ----- ------ ------
CASH NOI 25,635 22,313 3,322 15% 25,594 41 0%
OPERATING MARGINS
------------------------------------------------------------------------------------------------------------------------------------
GAAP NOI to Real Estate Revenue, net 56.06% 54.44% 58.77%
Cash NOI to Real Estate Revenue, net 53.95% 48.96% 55.42%
GAAP NOI before Ground Rent/Real Estate Revenue, net 62.59% 61.38% 65.61%
Cash NOI before Ground Rent/Real Estate Revenue, net 60.22% 55.22% 61.49%
SUPPLEMENTAL PACKAGE INFORMATION 21 THIRD QUARTER 2001
================================================================================================================================
DEBT SUMMARY SCHEDULE
UNAUDITED
($000'S OMITTED) [SL GREEN REALTY CORP. LOGO]
================================================================================================================================
2001
PRINCIPAL O/S ANNUAL
9/30/2001 COUPON PAYMENT
--------- ------ -------
FIXED RATE SECURED DEBT
--------------------------------------------------------------------------------------------------------------------------------
Property
673 First Avenue 9,757 9.00% 3,985
470 Park Avenue South 9,463 8.25% 1,207
50 West 23rd Street 21,000 7.33% 1,539
CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) 26,104 7.90% 2,223
711 Third Avenue 48,916 8.13% 4,388
555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) 69,099 8.10% -
420 Lexington Avenue 125,000 8.44% 10,694
875 Bridgeport Avenue, CT (1031 exchange asset) 14,876 8.32% 1,272
------- ----- ------
TOTAL FIXED RATE SECURED DEBT 324,215 8.21% WTD AVG 25,308
FLOATING RATE DEBT
--------------------------------------------------------------------------------------------------------------------------------
SECURED FLOATING RATE DEBT
317 Madison (Libor + 180bp) 65,000 5.38%
Structured Finance Loan (Libor + 100bp) 22,178 4.64%
Prudential Line of Credit (Libor + 125bps) 19,738 4.98%
------- -----
TOTAL FLOATING RATE SECURED DEBT 106,916 5.15% WTD AVG
UNSECURED FLOATING RATE DEBT
Senior Unsecured Line of Credit (Libor + 150 bps) 53,000 5.64%
------- -----
TOTAL FLOATING RATE UNSECURED DEBT 53,000 5.64% WTD AVG
TOTAL FLOATING RATE DEBT OUTSTANDING 159,916 5.31% WTD AVG
TOTAL DEBT 484,131 7.25% WTD AVG
----------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE BALANCE & INTEREST RATE 431,863 7.29%
----------------------------------------------------------------------------------------------------------
================================================================================================================================
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
1250 Broadway (Libor + 250bp) 85,000 84,830 5.29% -
469 Seventh Avenue (Libor + 225 bp) 36,000 12,600 5.68% -
321 W 44th JV (Libor + 250bps) 22,000 7,700 6.08% -
1 Park Avenue (Libor + 150 bps) 150,000 82,500 5.35% -
100 Park Avenue JV 120,000 59,880 8.00% 9,733
-------- ------- ----- ------
TOTAL JOINT VENTURE DEBT 445,000 263,478 6.12% 12,232
----------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE BALANCE & INTEREST RATE WITH SLG JV DEBT 647,931 6.99%
----------------------------------------------------------------------------------------------------------
===================================================================================================================================
[SL GREEN REALTY CORP. LOGO]
===================================================================================================================================
2001
PRINCIPAL MATURITY DUE AT EARLIEST CONTRACTUAL
REPAYMENT DATE MATURITY PREPAYMENT DATE
--------- ---- -------- ---------------
FIXED RATE SECURED DEBT
-----------------------------------------------------------------------------------------------------------------------------------
Property
673 First Avenue 3,014 12/13/2003 2,000 Open
470 Park Avenue South 416 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.) 178 5/1/2009 12,196 Apr-03
711 Third Avenue 406 9/10/2005 22,825 Jun-04
555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) 676 11/1/2004 66,959 Open
420 Lexington Avenue 255 11/1/2010 104,406 Open
875 Bridgeport Avenue, CT (1031 exchange asset) 34 5/10/2025 5,466 Open
-----
TOTAL FIXED RATE SECURED DEBT 4,979
FLOATING RATE DEBT
------------------------------------------------------------------------------------------------------------------------------------
SECURED FLOATING RATE DEBT
317 Madison (Libor + 180bp) - 8/1/2004 65,000 Open
Structured Finance Loan (Libor + 100bp) - 11/1/2002 22,178 Nov-02
Prudential Line of Credit (Libor + 125bps) - 12/22/2001 19,738 Open
TOTAL FLOATING RATE SECURED DEBT
UNSECURED FLOATING RATE DEBT
Senior Unsecured Line of Credit (Libor + 150 bps) - 6/27/2003 53,000 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
1250 Broadway (Libor + 250bp) - 10/1/2004 85,000 Open
469 Seventh Avenue (Libor + 225 bp) - 2/1/2003 12,600 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 187 9/1/2010 107,488 Open
----
TOTAL JOINT VENTURE DEBT 187
-------------------------------------------------------------------
WEIGHTED AVERAGE BALANCE & INTEREST RATE WITH SLG JV DEBT
-------------------------------------------------------------------
SUPPLEMENTAL PACKAGE INFORMATION 22 THIRD QUARTER 2001
====================================================================================================================================
SUMMARY OF GROUND LEASE ARRANGEMENTS
Consolidated Statement (REIT)
($000's omitted) [SL GREEN REALTY CORP. LOGO]
====================================================================================================================================
DEFERRED
2001 SCHEDULED 2002 SCHEDULED 2003 SCHEDULED 2004 SCHEDULED LAND LEASE
CASH PAYMENT CASH PAYMENT CASH PAYMENT CASH PAYMENT OBLIGATIONS YEAR OF
PROPERTY (000'S) (000'S) (000'S) (000'S) (1) MATURITY
-------- ------- ------- ------- ------- ----------- --------
Operating Leases
------------------------------------------------------------------------------------------------------------------------------------
673 1st Avenue 3,010 3,010 3,010 3,010 12,182 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 1,744 2032
------ ------ ------ ------ ------
TOTAL 11,595 11,982 11,982 11,982 13,926
====== ====== ====== ====== ======
Capitalized Lease
------------------------------------------------------------------------------------------------------------------------------------
673 1st Avenue 1,290 1,290 1,290 1,290 15,505 2037
===== ======= ====== ====== ======
(1) Per the balance sheet at September 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.
SUPPLEMENTAL PACKAGE INFORMATION 23 THIRD QUARTER 2001
========================================================================================================
MORTGAGE INVESTMENTS AND PREFERRED EQUITY
($000'S OMITTED) [SL GREEN REALTY CORP. LOGO]
========================================================================================================
ASSETS WTD AVERAGE WTD AVERAGE RUN RATE LIBOR
OUTSTANDING ASSETS DURING QUARTER YIELD DURING QUARTER YIELD** RATE
----------- --------------------- -------------------- -------- -----
9/30/2000 49,903 22.12% 6.63%
Originations/Accretion* 1,390
Redemptions -
-------
12/31/2000 51,293 50,598 22.10% 22.30% 6.82%
Originations/Accretion* 41,689
Redemptions -
-------
3/31/2001 92,982 56,527 19.92% 15.87% 5.75%
Originations/Accretion* 60,651
Redemptions (55,802)
-------
6/30/2001 97,832 70,607 15.04% 13.65% 4.52%
Originations/Accretion* 28,457
Preferred Equity 53,500
Redemptions (21,888)
-------
9/30/2001 157,901 114,248 16.50% 14.88% 3.73%
* Accretion includes original issue discounts and compounding investment
income.
** Run rate yield, net of seller financing, based on current outstanding balance
at September 30, 2001 is 12.14%.
CURRENT MATURITY PROFILE
[STRUCTURED FINANCE MATURITY PROFILE CHART]
SUPPLEMENTAL PACKAGE INFORMATION 24 THIRD QUARTER 2001
================================================================================
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 2
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
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 1
292 Madison Avenue Grand Central South Fee Interest 187,000 2
---------- ---
SUBTOTAL/WEIGHTED AVERAGE 5,592,800 56
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
-------------------------------------------------------------------------------------------------------------------
110 East 42nd Street Grand Central Fee Interest 181,000 2
17 Battery Place - North World Trade/ Battery Fee Interest 419,000 4
---------- ---
SUBTOTAL/WEIGHTED AVERAGE 600,000 6
TOTAL/WEIGHTED AVERAGE
PROPERTIES 100% OWNED 6,897,800 69
PROPERTIES < 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
1250 Broadway - 99.8% Penn Station Fee Interest 670,000 7
469 Seventh Avenue - 35% Penn Station Fee Interest 253,000 2
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 10,035,800 100
GRAND TOTAL - SLG SHARE OF
ANNUALIZED RENT
-------------------------------------------------------------------------------------------------------------------
PERCENT OCCUPIED ANNUALIZED ANNUALIZED
------------------------------------------- ANNUALIZED RENT AS % OF RENT AS % OF NUMBER OF
PROPERTIES 9/30/2001 6/30/2001 3/31/2001 12/31/2000 RENT ($'S) WHOLLY OWNED SLG INTERESTS TENANTS
---------- --------- --------- --------- ---------- ----------- ------------- ------------- ---------
PROPERTIES 100% OWNED
"SAME STORE"
-----------------------------------------------------------------------------------------------------------------------------------
673 First Avenue 100 100 100 100 12,798,564 7 5 14
470 Park Avenue South 99 99 99 99 7,036,011 4 3 26
70 W. 36th Street 96 96 98 96 3,478,496 2 1 28
1414 Avenue of the Americas 98 98 97 99 4,103,704 2 2 27
1372 Broadway 100 99 99 99 13,118,419 7 5 26
1140 A of A 100 100 100 100 6,908,066 4 3 26
50 W. 23rd Street 99 99 99 99 7,547,360 4 3 17
1466 Broadway 81 81 83 84 8,746,137 5 4 96
420 Lexington Ave (Graybar) 97 99 99 100 38,295,210 20 16 245
440 Ninth Avenue 91 99 98 94 7,336,672 4 3 16
711 Third Avenue 100 100 100 100 18,774,013 10 8 21
555 West 57th 100 100 100 100 18,515,524 10 8 24
286 Madison Avenue 99 100 98 98 3,316,917 2 1 40
290 Madison Avenue 100 100 100 100 1,309,932 1 1 4
292 Madison Avenue 100 100 100 100 6,143,699 3 3 18
--- --- --- --- ---------- --- --- ---
SUBTOTAL/WEIGHTED AVERAGE 98 99 98 98 157,428,724 82 66 628
2001 ACQUISITIONS
-----------------------------------------------------------------------------------------------------------------------------------
317 Madison 96 96 0 0 12,178,444 6 5 103
1370 Broadway 99 99 99 0 6,822,310 4 3 29
--- --- --- ---------- --- --- ---
SUBTOTAL/WEIGHTED AVERAGE 97 97 99 0 19,000,754 10 8 132
2001 ADJUSTMENTS
-----------------------------------------------------------------------------------------------------------------------------------
110 East 42nd Street 100 100 100 100 5,696,156 3 2 28
17 Battery Place - North 100 100 100 100 8,434,440 4 4 7
--- --- --- --- ---------- --- --- --
SUBTOTAL/WEIGHTED AVERAGE 100 100 100 100 14,130,596 7 6 35
TOTAL/WEIGHTED AVERAGE
PROPERTIES 100% OWNED 98 98 99 99 190,560,074 100 80 795
PROPERTIES < 100% OWNED >
UNCONSOLIDATED
-----------------------------------------------------------------------------------------------------------------------------------
180 Madison Avenue - 50% 90 90 89 87 5,466,756 1 54
1 Park Avenue - 55% 98 97 97 32,315,648 7 16
1250 Broadway - 99.8% 100 100 100 100 16,321,890 4 27
469 Seventh Avenue - 35% 96 90 90 90 5,975,913 1 19
100 Park Avenue - 50% 97 100 100 100 28,619,173 6 37
321 West 44th Street -35% 98 96 96 97 3,865,280 1 26
--- --- --- --- ---------- --- ---
SUBTOTAL/WEIGHTED AVERAGE 97 97 97 97 92,564,660 20 179
-----------------------------------------------------------------------------------------------------------------------------------
GRAND TOTAL/WEIGHTED AVERAGE 98 98 98 98 283,124,734 974
GRAND TOTAL - SLG SHARE OF
ANNUALIZED RENT 245,076,223 100
-----------------------------------------------------------------------------------------------------------------------------------
(1) Including Ownership of 50% in Building Fee
SUPPLEMENTAL PACKAGE INFORMATION 25 THIRD QUARTER 2001
===============================================================================
LARGEST TENANTS BY SQUARE FEET LEASED [SL GREEN REALTY CORP. LOGO]
===============================================================================
WHOLLY OWNED PORTFOLIO + ALLOCATED JV PROPERTIES % OF
% OF SLG SHARE
TOTAL OWNED SLG SHARE OF
LEASE LEASED ANNUALIZED PSF ANNUALIZE ANNUALIZED ANNUALIZED
TENANT PROPERTY EXPIRATION SQUARE FEET RENT ($) ANNUALIZED RENT RENT($) RENT
------------------------------------------------------------------------------------------------------------------------------------
The City of New York 17 Battery Place 2007 317,867 $ 5,988,480 $18.84 2.1% $ 5,441,791 2.2%
& 1250 Broadway & 2012
BMW of Manhattan, Inc. 555 West 57th Street 2012 227,782 $ 2,806,224 $12.32 1.0% $ 2,806,224 1.1%
Philip Morris 100 Park Avenue 2007 175,887 $ 6,445,140 $36.64 2.3% $ 3,216,125 1.3%
Managament Corp
Visting Nurse Services 1250 Broadway 2006 171,078 $ 3,630,468 $21.22 1.3% $ 3,623,207 1.5%
J&W Seligman & Co., Inc. 100 Park Avenue 2009 168,390 $ 5,133,144 $30.48 1.8% $ 2,561,439 1.0%
Segal Company 1 Park Avenue 2009 157,944 $ 5,508,612 $34.88 1.9% $ 3,029,737 1.2%
Loews Corp 1 Park Avenue 2002 155,765 $ 6,910,344 $44.36 2.4% $ 3,800,689 1.6%
City University of 555 West 57th Street 2010, 2011, 168,014 $ 3,961,522 $23.58 1.4% $ 3,961,522 1.6%
New York--CUNY & 2015
Metro North Commuter 420 Lexington Avenue 2008 & 2016 134,687 $ 3,838,836 $28.50 1.4% $ 3,838,836 1.6%
Railroad Co
St. Luke's Roosevelt 555 West 57th Street 2014 133,700 $ 2,993,196 $22.39 1.1% $ 2,993,196 1.2%
Hospital
C.B.S., Inc. 555 West 57th Street 2003 & 2010 127,320 $ 2,402,580 $18.87 0.8% $ 2,402,580 1.0%
Ross Stores 1372 Broadway 2010 101,741 $ 2,605,176 $25.61 0.9% $ 2,605,176 1.1%
CHF Industries 1 Park Avenue 2005 100,000 $ 3,370,272 $33.70 1.2% $ 1,853,650 0.8%
Coty Inc. 1 Park Avenue 2015 100,000 $ 3,542,028 $35.42 1.3% $ 1,948,115 0.8%
New York Presbyterian 555 West 57th Street 2006 & 2009 99,650 $ 2,484,504 $24.93 0.9% $ 2,484,504 1.0%
Hospital & 673 First Avenue
Ketchum, Inc. 711 Third Avenue 2015 98,551 $ 3,987,384 $40.46 1.4% $ 3,987,384 1.6%
Ann Taylor Inc. 1372 Broadway 2010 93,020 $ 2,357,496 $25.34 0.8% $ 2,357,496 1.0%
Crain Communications 711 Third Avenue 2009 90,531 $ 3,265,956 $36.08 1.2% $ 3,265,956 1.3%
Inc.
Information Builders 1250 Broadway 2003 88,571 $ 2,115,708 $23.89 0.7% $ 2,111,477 0.9%
Inc
MCI INTERNATIONAL 17 Battery Place 2001 & 2004 83,751 $ 2,625,936 $31.35 0.9% $ 1,657,253 0.7%
& 100 Park Avenue
Advanstar 1 Park Avenue 2010 85,284 $ 2,893,488 $33.93 1.0% $ 1,591,418 0.6%
Communications
Parade Publications, 711 Third Avenue 2010 82,444 $ 2,011,872 $24.40 0.7% $ 2,011,872 0.8%
Inc.
Kallir, Phillips, Ross 673 First Avenue 2004 80,000 $ 2,443,572 $30.54 0.9% $ 2,443,572 1.0%
Inc.
UNICEF 673 First Avenue 2003 & 2012 81,100 $ 2,635,464 $32.50 0.9% $ 2,635,464 1.1%
Mt. Sinai Hospital 1 Park Avenue 80,000 $ 2,824,968 $35.31 1.0% $ 1,553,732 0.6%
--------- ------------ ------ ----- ------------ -----
TOTAL 3,203,077 $ 88,782,370 $27.72 31.4% $ 70,182,414 28.6%
WHOLLY OWNED PORTFOLIO
+ ALLOCATED JV PROPERTIES 10,035,800 $283,124,734 $28.21 $245,076,223
SUPPLEMENTAL PACKAGE INFORMATION 26 THIRD QUARTER 2001
====================================================================================================================================
HIRD QUARTER - 2001 LEASING ACTIVITY
AVAILABLE SPACE [SL GREEN REALTY CORP. LOGO]
====================================================================================================================================
RENT/RENTABLE
ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF RENTABLE SF SF* ($'S)
------------- ---------------- ----------- --------- ----------- -------------
Vacancy at 6/30/01 316,397
Acquired Vacancies
- - - -
Expiring Space
Office
317 Madison Avenue 4 12,518 14,053 21.71
1 Park Avenue 1 7,886 7,886 24.77
180 Madison Avenue 5 4,561 5,542 30.54
286 Madison Avenue 6 9,995 11,787 31.09
292 Madison Avenue 1 3,615 5,652 21.64
70 West 36th Street 3 3,473 4,236 19.91
110 East 42nd Street 1 1,616 2,058 34.73
711 Third Avenue 1 13,888 15,000 24.72
440 Ninth Avenue 3 36,814 42,219 25.04
1466 Broadway 3 5,621 5,740 24.34
420 Lexington 16 61,522 76,113 34.52
--- ------- ------- -----
TOTAL/WEIGHTED AVERAGE 44 161,509 190,286 28.60
Retail - - - -
-- ------- ------- ------
-
TOTAL/WEIGHTED AVERAGE - - - -
MOVE OUTS
Office
1250 Broadway 7 65,747 83,416 28.19
555 West 57th Street 1 14,524 19,753 26.50
70 West 36th Street 1 710 1,100 33.00
110 East 42nd Street 1 1,902 2,492 26.00
1466 Broadway 1 2,270 2,270 33.95
420 Lexington Avenue 5 16,493 22,212 46.03
-- ------- ------- -----
TOTAL/WEIGHTED AVERAGE 16 101,646 131,243 31.05
Retail - - - -
-- -- -- --
TOTAL/WEIGHTED AVERAGE - - - -
EVICTED TENANTS
Office
1370 Broadway 1 723 1,025 28.65
1466 Broadway 1 1,405 1,405 34.50
420 Lexington Avenue 1 652 806 27.53
-- ------- ------- -----
TOTAL/WEIGHTED AVERAGE 3 2,780 3,236 30.91
Retail - - -
-- ------- ------- -----
TOTAL/WEIGHTED AVERAGE - - - -
RELOCATING TENANTS
440 Ninth Avenue 1 16,062 16,000 16.51
------- ------- -----
TOTAL/WEIGHTED AVERAGE 1 16,062 16,000 16.51
AVAILABLE SPACE
OFFICE 64 281,997 340,765 29.00
RETAIL - - - -
-- ------- ------- ------
TOTAL 49 281,997 340,765 29.00
Available Space 598,394
* Escalated Rent is calculated as Total Annual Income less Electric Charges.
SUPPLEMENTAL PACKAGE INFORMATION 27 THIRD QUARTER 2001
====================================================================================================================================
THIRD QUARTER - 2001 LEASING ACTIVITY
LEASED SPACE [SL GREEN REALTY CORP. LOGO]
====================================================================================================================================
PREV.
ESCALATED FREE
RENT/ RENT/ T.I/ RENT
ACTIVITY BUILDING # OF USABLE RENTABLE RENTABLE RENTABLE RENTABLE # OF
TYPE ADDRESS LEASES SF SF SF SF SF MONTHS
--------- ---------- -------- ------ -------- -------- --------- -------- -----------
Available Space
as 9/30/01 598,394
RENEWING TENANTS
------------------------------------------------------------------------------------------------------------------------------------
Office
317 Madison 3 10,362 10,866 36.03 21.85 - -
180 Madison 1 1,607 1,829 38.50 25.59 -
286 Madison 4 5,137 6,849 29.14 26.31 - -
1466 Broadway 1 381 500 35.00 33.00 5.74 2.0
420 Lexington 2 1,951 3,027 48.00 42.58 - 1.0
--- ----- ----- -------- ------ ---- ---
TOTAL/WEIGHTED AVERAGE 11 19,438 23,071 38.70 26.43 0.12 0.2
RELOCATING TENANTS
------------------------------------------------------------------------------------------------------------------------------------
Office
440 Ninth Avenue 2 10,798 10,852 24.52 9.80 15.56 5.0
--- ------ ------ -------- ----- ----- ----
TOTAL/WEIGHTED AVERAGE 2 10,798 10,852 24.52 9.80 15.56 2.5
EXPANSION TENANTS
------------------------------------------------------------------------------------------------------------------------------------
Office
1250 Broadway 7 65,747 85,527 40.34 28.06 22.51 19.0
555 West 57th Street 1 14,524 20,753 39.00 25.22 -
420 Lexington 1 651 931 46.00 20.78 10.00 1.0
--- ---- ---- -------- ------ ----- ----
TOTAL/WEIGHTED AVERAGE 9 80,922 107,211 40.13 27.45 18.05 2.2
NEW TENANTS REPLACING OLD TENANTS
------------------------------------------------------------------------------------------------------------------------------------
Office
1370 Broadway 1 723 1,033 39.00 28.65 - 1.0
180 Madison Avenue 3 2,326 3,279 40.01 22.81 4.20 4.0
286 Madison Avenue 2 3,075 4,432 40.41 25.92 4.15 -
70 West 36th Street 1 710 1,100 37.00 33.00 - -
110 East 42nd Street 2 3,518 5,230 36.94 25.09 7.65 -
711 Third Avenue 1 13,888 15,000 40.00 34.73 - -
1466 Broadway 4 5,053 6,444 38.85 33.71 5.95 1.0
420 Lexington Avenue 20 41,308 59,112 46.52 35.92 5.92 15.0
--- ------ ------- -------- ------ ----- ----
TOTAL/WEIGHTED AVERAGE 34 70,601 95,630 43.76 33.97 4.82 0.6
Retail - - - - - - -
TOTAL/WEIGHTED AVERAGE - - - - - - -
TOTAL/WEIGHTED AVERAGE 56 181,759 236,764 40.74 29.17 10.84 0.7
SUPPLEMENTAL PACKAGE INFORMATION 28 THIRD QUARTER 2001
====================================================================================================================================
THIRD QUARTER - 2001 LEASING ACTIVITY
LEASED SPACE [SL GREEN REALTY CORP. LOGO]
====================================================================================================================================
PREV.
ESCALATED FREE
RENT/ RENT/ T.I/ RENT
ACTIVITY BUILDING # OF USABLE RENTABLE RENTABLE RENTABLE RENTABLE # OF
TYPE ADDRESS LEASES SF SF SF SF SF MONTHS
--------- ---------- -------- ------ -------- -------- --------- -------- -----------
NEW TENANTS REPLACING VACANCIES
------------------------------------------------------------------------------------------------------------------------------------
Office
321 West 44th Street 1 3,350 5,336 36.00 - - 1.0
1466 Broadway 3 826 901 43.01 - 2.10 -
--- ------ ------ -------- ----- ----- ----
TOTAL/WEIGHTED AVERAGE 4 4,176 6,237 37.01 - 0.30 0.1
Retail
469 Seventh Avenue 3 15,370 19,108 36.97 - 0.07 11
--- ------ ------ -------- ----- ----- ----
TOTAL/WEIGHTED AVERAGE 3 15,370 19,108 36.97 - 0.07 -
Storage
1 Park Avenue 2 6,413 7,570 54.88 - 3.12 -
--- ------ ------ -------- ----- ----- ----
TOTAL/WEIGHTED AVERAGE 2 6,413 7,570 23.49 - 3.12 -
LEASED SPACE
------------------------------------------------------------------------------------------------------------------------------------
OFFICE 60 185,935 243,001 40.65 29.17 10.57 1.0
Retail 3 15,370 19,108 36.97 - 0 -
Storage 2 6,413 7,570 23.49 - 3 -
--- ------ ------ -------- ----- ----- ----
TOTAL 65 207,718 269,679 39.90 29.17 9.62 0.9
TOTAL MINUS RELOS - - - - - - -
SOLD VACANCIES - -
Sub-Total Available Space @ 9/30/01 390,676
HOLDOVER TENANTS
------------------------------------------------------------------------------------------------------------------------------------
317 Madison Avenue 1 3,691 3,691 29.38 29.38 - -
1 Park Avenue 1 7,886 7,886 24.77 24.77 - -
180 Madison Avenue 1 628 628 27.99 27.99 - -
286 Madison Avenue 1 327 366 36.07 36.07 - -
292 Madison Avenue 1 3,615 5,652 24.64 24.64 - -
70 West 36th Street 1 1,416 1,416 24.55 24.56 - -
440 Ninth Avenue 1 16,062 16,000 16.51 16.51 - -
1466 Broadway 1 4,010 4,010 19.05 19.05 - -
420 Lexington 5 7,396 8,200 29.12 29.12 - -
--- ------ ------ -------- ----- ----- ----
13 45,031 47,849 22.37 22.38 - -
TOTAL AVAILABLE SPACE @9/30/01 345,645
SUPPLEMENTAL PACKAGE INFORMATION 29 THIRD QUARTER 2001
====================================================================================================================================
THIRD QUARTER - 2001 LEASING ACTIVITY
LEASED SPACE [SL GREEN REALTY CORP. LOGO]
====================================================================================================================================
PREV.
ESCALATED FREE
RENT/ RENT/ T.I/ RENT
ACTIVITY BUILDING # OF USABLE RENTABLE RENTABLE RENTABLE RENTABLE # OF
TYPE ADDRESS LEASES SF SF SF SF SF MONTHS
--------- ---------- -------- ------ -------- -------- --------- -------- -----------
Early Renewals
------------------------------------------------------------------------------------------------------------------------------------
Office
180 Madison Avenue 2 1,468 2,158 40.64 22.19 - -
100 Park Avenue 1 902 1,189 55.00 36.00 - -
286 Madison Avenue 1 1,035 1,495 36.00 24.75 - -
70 West 36th Street 1 1,139 1,621 30.00 19.50 - -
440 Ninth Avenue 1 1,289 1,823 27.50 25.00 - -
1466 Broadway 1 4,634 6,494 30.00 16.50 - -
420 Lexington Avenue 3 3,635 5,045 32.07 21.68 - -
--- ------ ------ -------- ----- ----- ----
10 14,102 19,825 33.41 21.26 - -
Garge
1250 Broadway 1 49,642 49,642 18.13 11.87 - -
--- ------ ------ -------- ----- ----- ----
1 49,642 49,642 18.13 11.87 - -
RENEWALS
------------------------------------------------------------------------------------------------------------------------------------
Expired/Renewed 11 19,438 23,071 38.70 26.43 0.12 0.2
Early Renewals Office 10 14,102 19,825 33.41 21.26 - -
Early Renewals Garage 1 49,642 49,642 18.13 11.87 - -
--- ------ ------ -------- ----- ----- ----
TOTAL 22 83,182 92,538 26.53 17.51 - -
* Annual Base Rent
** Escalated Rent is calculated as Total Annual Income less Electric Charges.
SUPPLEMENTAL PACKAGE INFORMATION 30 THIRD QUARTER 2001
---------------------------------------------------------------------------------------------------------------------
ANNUAL LEASE EXPIRATIONS
CONSOLIDATED PROPERTIES [SL GREEN REALTY CORP. LOGO]
=====================================================================================================================
ANNUALIZED
SQUARE RENT PER
FOOTAGE PERCENTAGE ANNUALIZED LEASED
NUMBER OF OF OF TOTAL RENT OF SQUARE FOOT OF YEAR 2001
YEAR OF LEASE EXPIRING EXPIRING LEASED EXPIRING EXPIRING LEASES WEIGHTED AVERAGE
EXPIRATION LEASES** LEASES SQ. FT. LEASES ($'S) $/PSF *** ASKING RENT $/PSF
--------------------------------------------------------------------------------------------
In 1st Quarter 2001* 9 5,681 0.02% 136,068 23.95 42.28
In 2nd Quarter 2001* 6 15,250 0.22% 218,064 14.30 43.13
In 3rd Quarter 2001* 16 44,264 0.65% 1,069,176 24.15 42.26
In 4th Quarter 2001 31 124,706 1.84% 2,855,484 22.90 40.75
--------------------------------------------------------------------------------------------------------------------
TOTAL 2001 62 189,901 2.74% 4,278,792 22.53 41.32
2002 129 388,856 5.73% 10,690,464 27.49 42.75
2003 129 564,657 8.31% 15,871,740 28.11 42.63
2004 114 590,105 8.69% 17,994,720 30.50 42.71
2005 100 587,579 8.65% 18,301,632 31.15 42.02
2006 60 432,791 6.37% 12,412,836 28.68 42.71
2007 45 277,342 4.08% 8,805,816 31.75 43.74
2008 38 391,186 5.76% 12,166,776 31.10 41.84
2009 34 550,634 8.11% 15,109,356 27.44 42.48
2010 44 1,080,098 15.90% 30,098,384 27.87 42.85
THEREAFTER 54 1,742,429 25.66% 44,616,888 25.61 41.72
--------------------------------------------------------------------------------------------
809 6,795,578 100.00% 190,560,074 28.03 42.35
============================================================================================
* Includes month to month holdover tenants that expired prior to 9/30/01.
**Tenants may have multiple leases.
**Represents current in place annualized rent allocated by year of maturity.
SUPPLEMENTAL PACKAGE INFORMATION 31 THIRD QUARTER 2001
=========================================================================================================================
ANNUAL LEASE EXPIRATIONS
JOINT VENTURE PROPERTIES [SL GREEN REALTY CORP. LOGO]
==========================================================================================================================
ANNUALIZED ANNUALIZED YEAR 2001
SQUARE PERCENTAGE RENT OF RENT PER LEASED WEIGHTED
NUMBER OF FOOTAGE OF TOTAL EXPIRING LEASED SQUARE FOOT AVERAGE
YEAR OF LEASE EXPIRING OF EXPIRING LEASED LEASES OF EXPIRING LEASES ASKING
EXPIRATION LEASES** LEASES SQ. FT. ($'S) $/PSF *** RENT $/PSF
---------------------------------------------------------------------------------------------
In 1st Quarter 2001* 1 1,167 0.04% 24,036 20.60 46.10
In 2nd Quarter 2001* 1 1,598 0.05% 33,552 21.00 43.00
In 3rd Quarter 2001* 3 1,364 0.05% 38,184 27.99 43.00
In 4th Quarter 2001 2 8,236 0.28% 180,900 21.96 40.81
---------------------------------------------------------------------------------------------
TOTAL 2001 7 12,365 0.94% 276,672 22.38 41.84
2002 34 410,029 13.79% 13,899,720 33.90 47.39
2003 19 229,074 7.71% 5,287,200 23.08 43.36
2004 22 174,896 5.88% 5,502,228 31.46 47.78
2005 18 289,318 9.73% 9,030,576 31.21 49.89
2006 22 314,928 10.60% 7,630,296 24.23 45.56
2007 10 295,326 9.94% 10,057,140 34.05 52.27
2008 13 169,659 5.71% 4,655,004 27.44 47.15
2009 17 570,327 19.19% 18,241,452 31.98 49.72
2010 14 299,746 10.08% 10,671,264 35.60 50.66
THEREAFTER 11 229,811 6.95% 7,313,108 31.15 47.55
---------------------------------------------------------------------------------------------
187 2,995,479 100.00% 92,564,660 30.85 48.39
---------------------------------------------------------------------------------------------
* Includes month to month holdover tenants that expired prior to 9/30/01.
**Tenants may have multiple leases.
***Represents in place annualized rent allocated by year of maturity.
SUPPLEMENTAL PACKAGE INFORMATION 32 THIRD QUARTER 2001
===================================================================================================================
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997
[SL GREEN REALTY CORP. LOGO]
===================================================================================================================
NET RENTABLE
PROPERTY TYPE OF OWNERSHIP SUBMARKET S.F
-------- ----------------- --------- ----
1998 ACQUISITIONS
Mar-98 420 Lexington Operating Sublease Grand Central North 1,188,000
Mar-98 1466 Broadway Fee Interest Times Square 289,000
Mar-98 321 West 44th Fee Interest Times Square 203,000
May-98 711 3rd Avenue Operating Sublease Grand Central North 524,000
Jun-98 440 9th Avenue Fee Interest Garment 339,000
Aug-98 1412 Broadway Fee Interest Times Square South 389,000
----------
2,932,000
1999 ACQUISITIONS
Jan-99 420 Lexington Leasehold Sub-leasehold Grand Central North
Jan-99 555 West 57th - 65% JV Fee Interest Midtown West 941,000
May-99 90 Broad Street - 35% JV Fee Interest Financial 339,000
May-99 The Madison Properties: Fee Interest Grand Central South
-----------------------
286 Madison Avenue 112,000
290 Madison Avenue 36,800
292 Madison Avenue 187,000
Aug-99 1250 Broadway - 50% JV Fee Interest Penn Station 670,000
Nov-99 555 West 57th - remaining 35% Fee Interest Midtown West -
----------
2,285,800
2000 ACQUISITIONS
Feb-00 100 Park Avenue Fee Interest Grand Central South 834,000
Dec-00 180 Madison Avenue Fee Interest Grand Central South 265,000
CONTRIBUTION TO JV
May-00 321 West 44th Fee Interest Times Square 203,000
----------
1,302,000
2001 ACQUISITIONS
Jan-01 1370 Broadway Fee Interest Garment 255,000
Jan-01 1 Park Avenue Various Interests Grand Central South 913,000
Jan-01 469 7th Avenue - 35% JV Fee Interest Penn Station 253,000
Jun-01 317 Madison Fee Interest Grand Central 450,000
ACQUISITION OF JV INTEREST
Sep-01 1250 Broadway - 49.9% JV (3) Fee Interest Penn Station 253,000
----------
2,124,000
% LEASED % LEASED ACQUISITION
AT ACQUISITION 9/30/2001 PRICE ($'S)
-------------- --------- -----------
1998 ACQUISITIONS
Mar-98 83 97 78,000,000
Mar-98 87 81 64,000,000
Mar-98 96 97 17,000,000
May-98 79 100 65,600,000
Jun-98 76 91 32,000,000
Aug-98 90 N/A 82,000,000
------------
338,600,000
1999 ACQUISITIONS
Jan-99 27,300,000
Jan-99 100 100 66,700,000
May-99 82 N/A 34,500,000
May-99 50,000,000
99 99
86 100
97 100
Aug-99 97 100 93,000,000
Nov-99 34,100,000
-------------
305,600,000
2000 ACQUISITIONS
Feb-00 97 100 192,000,000
Dec-00 90 90 41,250,000
CONTRIBUTION TO JV
May-00 98 97 28,400,000
-------------
261,650,000
2001 ACQUISITIONS
Jan-01 97 99 50,500,000
Jan-01 97 98 233,900,000
Jan-01 98 90 45,700,000
Jun-01 95 96 105,600,000
ACQUISITION OF JV INTERE
Sep-01 98 100 45,700,000
------------
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 $44mm).
(3) Current ownership interest is 99.8%.
SUPPLEMENTAL PACKAGE INFORMATION 33 THIRD QUARTER 2001
====================================================================================================================================
SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999
[SL GREEN REALTY CORP. LOGO]
====================================================================================================================================
NET
TYPE OF RENTABLE SALES SALES
PROPERTY OWNERSHIP SUBMARKET S.F. PRICE ($'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 - 35% JV 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 - 45% JV 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
Jul-01 110 E. 42nd Street Fee Structure Grand Central North 69,700 $ 14,500,000 $208
--------- ------------ ----
1,412,323 $352,350,000 $256
SUPPLEMENTAL PACKAGE INFORMATION 34 THIRD QUARTER 2001
================================================================================
SUPPLEMENTAL DEFINITIONS
[SL GREEN REALTY CORP. 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).
35
================================================================================
CORPORATE GOVERNANCE
[SL GREEN REALTY CORP. LOGO]
================================================================================
STEPHEN L. GREEN TOM WIRTH
Chairman of the Board and CEO Chief Financial Officer
MARC HOLLIDAY GERARD NOCERA
President and Chief Investment Executive Vice President,
Officer Leasing
MICHAEL REID ANDREW S. LEVINE
Chief Operating Officer 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
Wachovia Securities Christopher Haley (443) 263-6773 christopher.haley@wachovia.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 OF OR CONCURRENCE WITH SUCH INFORMATION, CONCLUSIONS OR RECOMMENDATIONS.
36
