SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
------------
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 23, 2002
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 Press Release
99.2 Supplemental Package
ITEM 9. REGULATION FD DISCLOSURE
Following the issuance of a press release on April 22, 2002 announcing the
Company's results for the first quarter ended March 31, 2002, the Company
intends to make available supplemental information regarding the Company's
operations that is too voluminous for a press release. The Company is attaching
the press release as Exhibit 99.1 and the supplemental package as Exhibit 99.2
to this Current Report on Form 8-K.
Note: the information in this report (including the exhibits) is furnished
pursuant to Item 9 and shall not be deemed to be "filed" for the purposes of
Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the
liabilities of that section. This report will not be deemed an admission as to
the materiality of any information in the report that is required to be
disclosed solely by Regulation FD.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SL GREEN REALTY CORP.
/s/ Thomas E. Wirth
-------------------------------------------------
Thomas E. Wirth
Executive Vice President, Chief Financial Officer
Date: April 23, 2002
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[LETTERHEAD OF SL GREEN REALTY CORP.]
420 Lexington Avenue New York City, NY 10170
CONTACT
Michael W. Reid
Chief Operating Officer
- -or-
Thomas E. Wirth
Chief Financial Officer
(212) 594-2700
FOR IMMEDIATE RELEASE
SL GREEN REALTY CORP. REPORTS 7% GAIN IN FIRST QUARTER FFO
FIRST QUARTER HIGHLIGHTS
- - 7% FFO increase, $0.78 per share (diluted) versus $0.73 (diluted) in the
prior year
- - Announced an agreement to acquire 1515 Broadway for $480 million through a
joint venture with SITQ
- - 19% increase in GAAP operating income per share (diluted), $0.50 per share
versus $0.42 in the prior year
- - 4.4% same store portfolio cash NOI growth
FINANCIAL RESULTS
NEW YORK, NY, APRIL 22, 2002 - SL Green Realty Corp. (NYSE:SLG) reported a 7%
increase in operating results for the three months ended March 31, 2002. During
this period, funds from operations (FFO) before minority interest totaled $27.0
million, or $0.78 per share diluted, compared to $21.2 million, or $0.73 per
share diluted for the same quarter in 2001. This growth was mainly attributable
to same store cash NOI growth of 4.4%, increased contributions from the
Company's joint venture and structured finance programs and lower interest
rates.
As a result of property dispositions and the joint venture of One Park Avenue in
the second quarter of 2001, total quarterly revenues decreased 8% in the first
quarter to $61.7 million compared to $67.0 million last year. The $5.3 million
decrease in revenue resulted from:
- - $12.5 million decrease from 2001 dispositions/contributions to a joint
venture
- - $4.3 million increase from 2001 acquisitions
- - $3.1 million increase from investment and other income
- - $0.2 million decrease from 2002 same store portfolio
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Same store cash NOI increased $1.1 million, or 4.4% to $25.9 million over the
same period in the prior year. Cash NOI margins before ground rent improved year
over year from 56.7% to 59.5%. The improvement in cash NOI was driven primarily
by a $0.8 million increase in cash revenue and a decrease in operating expenses.
The net increase in cash revenue is due to:
- $0.9 million increase from rent steps and reduced free rent
- $1.2 million increase as replacement rents were 37% over previously
fully-escalated rents
- $1.1 million decrease due to lower occupancy in 2002 (96.6%) compared to
2001 (98.5%) and additional reserves
- $0.1 million decrease in escalation and reimbursement income primarily from
decreased electric recoveries ($0.9 million) partially offset by higher
operating expense escalations ($0.8 million).
The overall decrease in operating expenses totaled $0.5 million (3%) and was
primarily due to:
- $0.8 million decrease in electric costs, primarily due to a decrease in
electric rates
- $0.5 million decrease in fuel and steam heating costs
- $0.2 million increase in security costs
- $0.3 million increase in real estate taxes
- $0.2 million increase in advertising and insurance
The 2002 first quarter electric recovery was 90% as compared to 84% in the prior
year and the improvement was based on more favorable recovery terms in new
tenant leases.
During the quarter, the Company signed 62 leases totaling approximately 169,000
square feet with starting cash rents averaging $38.42 per square foot, a 29.7%
increase on previously escalated cash rents averaging $29.63 per square foot.
Tenant concessions averaged one month of free rent and an allowance for tenant
improvements of $12.96 per square foot.
The Company's EBITDA was $37.5 million and was unchanged over the prior year.
However, margins before ground rent increased to 74.0% compared to 64.1% for the
same period last year and after ground rent margins improved to 68.2% from 59.3%
in the corresponding period. This improvement in margins was primarily due to
the increased net income from joint ventures and the increase in high-margin
structured finance income. While EBITDA remained flat, the components of EBITDA
changed as follows:
IMPROVEMENTS:
- $2.3 million increase from structured finance investments
- $0.8 million increase in other income, primarily due to on-going joint
venture asset management fees
- $0.3 million increase due to signage income and the service corporations
- $0.3 million increase due to reduced MG&A expense from lower personnel and
severance costs
2
The improvements were offset by a $3.7 million decrease in GAAP NOI primarily
due to a $7.9 million decrease from properties sold or contributed to joint
venture. This decrease was partially offset by the following improvements:
- - $0.4 million increase from same store portfolio
- - $1.8 million increase from joint venture net income
- - $2.2 million increase from properties acquired
Despite the reduction in GAAP NOI and EBITDA from property sales, FFO
improvement of $5.8 million resulted from the increased contribution from
unconsolidated joint ventures ($2.7 million), structured finance ($2.4 million)
and a decrease in interest expense ($4.8 million).
The lower interest costs were associated with: lower average debt levels due to
dispositions ($6.3 million) partially offset by acquisition and structured
finance debt ($2.3 million), the funding of ongoing capital projects and working
capital requirements ($0.2 million), and lower interest rates ($1.0 million).
At the end of the quarter, consolidated debt totaled $495.1 million, reflecting
a debt to market capitalization ratio of 29.2%.
During the quarter ended March 31, 2001, the Company recorded an extraordinary
loss of $0.1 million due to the early extinguishment of debt, which was excluded
from the Company's 2001 results. The results of the Company also excluded gains
on sales of properties which totaled $1.5 million.
NEW PROPERTY ACTIVITY
1515 BROADWAY
On March 27, 2002 the Company announced that it entered into a contribution
agreement to acquire 1515 Broadway, New York, New York in a transaction valued
at approximately $480 million, or $274 per square foot. The property is 98.2%
leased, with current market rents for office space at a 34% premium to fully
escalated in-place rents. The initial cash NOI yield of the transaction is
approximately 8.2%.
The property is currently owned by 1515 Broadway Associates, L.P., whose general
partner is an affiliate of The Equitable Life Assurance Society of the United
States. The transaction is anticipated to close during the second quarter 2002.
It will be accomplished through a prepackaged bankruptcy reorganization by the
1515 Broadway partnership, to which the parties have consented. The property is
being acquired in a joint venture with SITQ Immobilier, with SL Green retaining
an approximate 55% interest in the asset.
Located in the heart of New York's Times Square and within walking distance of
Manhattan's main transportation hubs, 1515 Broadway is a 1.75 million square
foot, 54-story office tower located on Broadway between 44th and 45th Streets.
It is the headquarters of Viacom, Inc., one of the world's leading media and
entertainment companies, whose holdings include franchise
3
brands CBS, MTV Networks (Nickelodeon, MTV and VH1), Paramount Pictures,
Showtime Networks and Infinity Broadcasting.
The property is being acquired with $335 million of financing committed by
Lehman Brothers and Bear Stearns. The balance of the proceeds are being funded
from the Company's unsecured line of credit and from the proceeds of the sale of
the joint venture interest to SITQ.
STRUCTURED FINANCE ACTIVITY
Subsequent to quarter-end, the Company sold a $15 million junior mortgage
participation to PRISA and a $5.3 million junior mortgage participation was
repaid. After this activity, the structured finance portfolio, including
preferred equity interests, totals $168.8 million.
OTHER
Today, SL Green's portfolio consists of interest in 25 properties, aggregating
10.0 million square feet.
SL Green Realty Corp. is a self-administered and self-managed real estate
investment trust ("REIT") that acquires, owns and manages commercial office
properties in Manhattan. The Company is the only publicly held REIT which
exclusively specializes in this niche.
Financial Tables attached
To receive SL Green's latest news release and other corporate documents,
including the First Quarter Supplemental Data, via FAX at no cost, please
contact the Investor Relations office at 212-216-1601. All releases and
supplemental data can also be downloaded directly from the SL Green website at:
www.slgreen.com.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING INFORMATION BASED UPON THE COMPANY'S
CURRENT BEST JUDGMENT AND EXPECTATIONS. ACTUAL RESULTS COULD VARY FROM THOSE
PRESENTED HEREIN. THE RISKS AND UNCERTAINTIES ASSOCIATED WITH FORWARD-LOOKING
INFORMATION IN THIS RELEASE INCLUDE THE STRENGTH OF THE COMMERCIAL OFFICE REAL
ESTATE MARKETS IN NEW YORK, COMPETITIVE MARKET CONDITIONS, UNANTICIPATED
ADMINISTRATIVE COSTS, TIMING OF LEASING INCOME, GENERAL AND LOCAL ECONOMIC
CONDITIONS, INTEREST RATES, CAPITAL MARKET CONDITIONS, TENANT BANKRUPTCIES AND
DEFAULTS, THE AVAILABILITY AND COST OF COMPREHENSIVE INSURANCE, INCLUDING
COVERAGE FOR TERRORIST ACTS, AND OTHER FACTORS, MANY OF WHICH ARE BEYOND THE
COMPANY'S CONTROL. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY
OF THE FORWARD-LOOKING INFORMATION. FOR FURTHER INFORMATION, PLEASE REFER TO THE
COMPANY'S FILING WITH THE SECURITIES AND EXCHANGE COMMISSION.
4
SL GREEN REALTY CORP.
STATEMENTS OF OPERATIONS-UNAUDITED
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
March 31,
2002 2001
----------- -----------
REVENUE:
Rental revenue, net $ 47,784 $ 55,003
Escalations & reimbursement revenues 6,726 8,057
Signage Rent 466 350
Preferred equity investment income 1,911 --
Investment income 3,720 3,274
Other income 1,076 310
----------- -----------
Total revenues 61,683 66,994
----------- -----------
EXPENSES:
Operating expenses 13,719 15,826
Ground rent 3,159 3,159
Interest 9,112 13,897
Depreciation and amortization 9,597 9,720
Real estate taxes 7,355 8,180
Marketing, general and administrative 3,202 3,547
----------- -----------
Total expenses 46,144 54,329
----------- -----------
Income before minority interests, preferred stock dividends,
gain on sales, extraordinary item, affiliates, joint
venture and change to accounting principle 15,539 12,665
Equity in net loss from affiliates (84) (269)
Equity in net income from unconsolidated joint ventures 3,333 1,513
Gain on sale of rental property -- 1,514
Minority interests (1,152) (1,081)
----------- -----------
17,636 14,342
Extraordinary loss, net of minority interest -- (98)
Cumulative effect of change in accounting principle -- (532)
Preferred stock dividends and accretion (2,423) (2,414)
----------- -----------
Net income available to common shareholders $ 15,213 $ 11,298
=========== ===========
Net income per share (Basic) $ 0.51 $ 0.46
Net income per share (Diluted) $ 0.50 $ 0.45
FUNDS FROM OPERATIONS (FFO)
FFO per share (Basic) $ 0.84 $ 0.79
FFO per share (Diluted) $ 0.78 $ 0.73
FFO CALCULATION:
Income before minority interests, preferred stock dividends
and accretion, extraordinary loss and gain on sales 18,788 $ 13,909
LESS:
Preferred stock dividend (2,300) (2,300)
Add:
Joint venture FFO adjustment 1,881 996
Depreciation and amortization 9,597 9,720
Amortization of deferred financing costs and depreciation of
non-real estate assets (987) (1,155)
----------- -----------
FFO - BASIC $ 26,979 $ 21,170
Add: Preferred stock dividends 2,300 2,300
----------- -----------
FFO - DILUTED $ 29,279 $ 23,470
Basic ownership interests
Weighted average REIT common shares 29,992 24,639
Weighted average partnership units held by minority interest 2,271 2,296
----------- -----------
Basic weighted average shares and units outstanding 32,263 26,935
=========== ===========
Diluted ownership interest
Weighted average REIT common and common share equivalent
shares 30,634 25,107
Weighted average partnership units held by minority
interests 2,271 2,296
Common share equivalents for preferred stock 4,699 4,699
----------- -----------
Diluted weighted average equivalent shares and
units outstanding 37,604 32,102
=========== ===========
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SL GREEN REALTY CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
March 31,
2002 December 31,
(unaudited) 2001
----------- ------------
ASSETS
Commercial real estate properties, at cost:
Land and land interests $ 138,337 $ 138,337
Buildings and improvements 699,610 689,094
Building leasehold 145,012 144,736
Property under capital lease 12,208 12,208
----------- ------------
995,167 984,375
Less accumulated depreciation (108,034) (100,776)
----------- ------------
887,133 883,599
Cash and cash equivalents 12,429 13,193
Restricted cash 37,126 38,424
Tenant and other receivables, net of allowance of
$4,229 and $3,629 in 2002 and 2001, respectively 7,754 8,793
Related party receivables 3,417 3,498
Deferred rents receivable, net of allowance of
$5,492 and $5,264 in 2002 and 2001, respectively 53,816 51,855
Investment in and advances to affiliates 2,811 8,211
Mortgage loans receivable, net of $593 and $3,321
discount in 2002 and 2001 respectively 127,669 127,166
Preferred equity investments 61,451 61,472
Investment in unconsolidated joint ventures 124,958 123,469
Deferred costs, net 34,416 34,901
Other assets 15,005 16,996
----------- ------------
Total assets $ 1,367,985 $ 1,371,577
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable $ 408,186 $ 409,900
Revolving credit 86,931 94,931
Derivative instruments at fair value 2,002 3,205
Accrued interest payable 1,617 1,875
Accounts payable and accrued expenses 24,386 22,819
Deferred compensation awards 671 1,838
Deferred revenue 1,676 1,381
Capitalized lease obligations 15,644 15,574
Deferred land lease payable 14,246 14,086
Dividend and distributions payable 16,596 16,570
Security deposits 19,019 18,829
----------- ------------
Total liabilities 590,974 601,008
----------- ------------
Commitments and contingencies
Minority interest in Operating Partnership 47,295 46,430
8% Preferred Income Equity Redeemable Shares $0.01 par value,
$25.00 mandatory liquidation preference, 25,000 authorized
and 4,600 outstanding in 2002 and 2001, respectively 111,353 111,231
STOCKCKHOLDERS' EQUITY
Common stock, $0.01 par value 100,000 shares authorized, 30,042
and 29,978 issued and outstanding in 2002 and 2001,
respectively 301 300
Additional paid - in capital 585,509 583,350
Deferred compensation plan (7,336) (7,515)
Accumulated and other comprehensive loss (1,709) (2,911)
Retained earnings 41,598 39,684
----------- ------------
Total stockholders' equity 618,363 612,908
----------- ------------
Total Liabilities and stockholders' equity $ 1,367,985 $ 1,371,577
=========== ============
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SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED
March 31,
2002 2001
---- ----
OPERATING DATA:
Net rentable area at end of period (in 000's)(1) 10,036 10,045
Portfolio occupancy percentage at end of period 97.0 98.1
Same Store occupancy percentage at end of period 96.6 98.5
Number of properties in operation 25 25
Rentable square feet leased during quarter 168,798 121,944
Average mark-to-market percentage 29.7 48.5
Average rent per rentable square foot $ 38.42 $ 41.63
(1) Includes wholly-owned and majority and minority owned properties.
7
[GRAPHIC]
SL Green Realty Corp.
First Quarter 2002
Supplemental Data
March 31, 2002
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.
- - 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.
- - 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.
- - 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.
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
three months ended March 31, 2002 that will subsequently be released on Form
10-Q to be filed on or before May 15, 2002.
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[SL GREEN REALTY CORP. LOGO]
TABLE OF CONTENTS
Highlights of Current Period Financial Performance
Unaudited Financial Statements
Corporate Profile 4
Financial Highlights 5-10
1515 Broadway Acquisition 11
Balance Sheets 12-13
Statements of Operations 14-15
Joint Venture Statements 16-17
Statement of Stockholders' Equity 18
Funds From Operations 19
Selected Financial Data 20-22
Summary of Debt and Ground Lease Arrangements 23-24
Mortgage Investments and Preferred Equity 25-26
Property Data
Composition of Property Portfolio 27
Top Tenants 28
Leasing Activity Summary 29-32
Lease Expiration Schedule 33-34
Summary of Acquisition/Disposition Activity 35-36
Supplemental Definitions 37
Corporate Information 38
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[SL GREEN REALTY CORP. LOGO]
CORPORATE PROFILE
SL Green Realty Corp. (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. 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 three 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.
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[SL GREEN REALTY CORP. LOGO]
FINANCIAL HIGHLIGHTS
1ST QUARTER 2002
UNAUDITED
EARNINGS PERFORMANCE
First quarter Funds From Operations (FFO) were $27.0 million or $0.78 per share
(diluted), 7% better than one year ago, when FFO was $21.2 million or $0.73 per
share (diluted). The first quarter FFO per share results reflect the Company's
five million common share issuance in July 2001 which increased the weighted
average dilutive shares outstanding from 32.1 million in 2001 to 37.6 million in
2002.
The $5.8 million growth in first quarter FFO results from the following:
(1) $2.7 million increase to FFO from unconsolidated joint venture primarily due
to the contribution of One Park Avenue to a joint venture, the net acquisition
of an incremental share in the interest in 1250 Broadway (from 49.9% to 55.0%),
and the purchase of 469 Seventh Avenue.
(2) Investment and preferred equity income increased $2.3 million primarily due
to (i) the $53.5 million preferred equity investment in The News Building ($1.9
million) in September 2001 and (ii) the $30.0 million structured finance
investment ($1.0 million) in October 2001. The increase is partially offset by a
$50 million structured finance redemption that was reinvested and subsequently
joint ventured with PRISA.
(3) Lower interest costs ($4.8 million) associated with (i) reduced loan
balances due to previous disposition activity ($6.3 million) and (ii) reduced
interest costs on floating rate debt ($1.0 million). These reductions were
partially offset by increased costs associated with new investment activity
($2.4 million) and increased costs for working capital reserves ($0.2 million).
(4) $0.8 million increase in other income primarily due to asset management fees
earned on joint ventures ($0.6 million).
(5) Consolidated GAAP NOI decreased $3.7 million:
- $7.9 million decrease from wholly-owned properties sold, partially sold or
contributed to a joint venture: One Park Avenue, 17 Battery South, condo
unit at 110 East 42nd Street, 1412 Broadway, and 633 Third Ave.
- $2.2 million increase from 2001 acquisitions of 1370 Broadway (acquired
January 2001) and 317 Madison Avenue (acquired June 2001).
- $0.4 million increase from the 2002 same store properties primarily due to
a decrease in operating expenses ($0.5 million) partially offset by a
decrease in GAAP revenue totaling $0.2 million, net of change in credit
loss. The decrease in revenue is attributable to (i) a $1.1 million
increase from GAAP replacement rents, which were 47% higher than the
previously fully escalated rents, were partially offset by higher tenant
reserves and vacancies ($1.0 million) and (ii) decreased escalation and
reimbursement income ($0.1 million) related to the decreased energy
recoveries ($0.9 million) resulting from
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[SL GREEN REALTY CORP. LOGO]
FINANCIAL HIGHLIGHTS
1ST QUARTER 2002
UNAUDITED
reduced electric costs partially offset by higher operating escalations and
percentage rent escalations ($0.8 million).
- Operating cost reductions of $0.5 million (7%) were primarily due to lower
electric rates ($0.8 million) and heating ($0.5 million) costs partially
offset by a $0.3 million (5%) increase in real estate taxes due to higher
property value assessments.
- The electric recovery rate for the quarter was approximately 90% as
compared to 84% the previous year.
- $1.8 million increase from the equity in income from unconsolidated joint
ventures (previously noted above, inclusive in $2.7 million from
unconsolidated joint ventures)
(6) MG&A decreased $0.3 million due to higher 2001 personnel costs from several
executive management changes.
(7) The net loss from affiliates improved to $0.2 million primarily due to the
consolidation of e.Emerge into the Company's financial statements.
Operating earnings per share increased 19% by $16.4 million, or $0.50 per share
(diluted) as compared to $11.5 million, or $0.42 per share (diluted), for the
same period in the previous year.
QUARTERLY OPERATING RESULTS
SAME STORE
Same store cash NOI in the 2002 same store portfolio rose $1.1 million (4.4%)
from $24.8 million in 2001 to $25.9 million in 2002, and operating margins
before ground rent improved from 56.7% to 59.5%. GAAP NOI increased by $0.4
million over the prior year, and GAAP operating margins before ground rent
improved from 63.0% to 64.0%.
One of the primary drivers increasing same store cash NOI is the $0.8 million
increase in cash revenue. The increase in same store revenue is due to:
1. An increase in cash rental revenue of $1.2 million resulting from higher
replacement rents on approximately 418,000 square feet that were 37% greater
than previously fully escalated rents. This increase was partially offset by
increased vacancy and reserves ($1.1 million) as the same store portfolio
occupancy decreased from 98.5% in 2001 to 96.6% in 2002.
2. $0.1 million decrease in escalation and reimbursement income consisting of a
decrease in electric reimbursement ($0.9 million) partially offset by
increased passthrough of operating cost escalations including porter wage
($0.8 million).
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[SL GREEN REALTY CORP. LOGO]
FINANCIAL HIGHLIGHTS
1ST QUARTER 2002
UNAUDITED
3. An increase of $0.9 million in cash revenue due to tenant rent steps and
reductions in free rent primarily due to 17 Battery Place North, 711 Third
Avenue and 420 Lexington Avenue
CONSOLIDATED
The Company's consolidated first quarter EBITDA margins before ground rent
improved to 74.0% compared to 64.2% for 2001. The EBITDA margins after ground
rent improved to 68.2% as compared to 59.2% in the same period of the prior
year.
These margin improvements are attributable to (i) $1.8 million increase in net
income from joint ventures, (ii) $2.3 million increase in structured finance
income and (iii) $0.3 million decrease in MG&A expense.
QUARTERLY LEASING HIGHLIGHTS
Vacancy at December 31, 2001 was 250,438 useable square feet net of holdover
tenants. During the quarter, 190,987 additional useable office square feet
became available at an average escalated cash rent of $34.34 per rentable square
foot. Space available before holdovers to lease during the quarter totaled
441,425 useable square feet, or 4.4% of the total portfolio.
During the first quarter, 62 leases were signed totaling 128,439 useable square
feet with new cash rents averaging $38.42 per rentable square foot. Replacement
rents were 29.7% greater than rents on previously occupied space, which had a
fully escalated cash rent averaging $29.63 per rentable square foot. Average
tenant concessions were one month of free rent and an allowance of $12.96 per
rentable square foot. Including early renewals and excluding holdover tenants,
the tenant renewal rate was 51% based on square feet expiring. Eleven leases
have expired comprising 10,499 useable square feet that are in a holdover
status. This results in 312,986 useable square feet (net of holdovers) remaining
available as of March 31, 2002.
The Company signed 12 leases for 33,950 useable square feet that were for early
renewals. The early renewals for space were not scheduled to become available
until after the first quarter of 2002. The Company was able to renew the current
office tenants at an average cash rent of $31.92, representing an increase of
64.4% over the previously fully escalated rents of $19.41.
For the trailing twelve months, cash replacement rents were 38% above the
previously escalated rents.
NEW ACTIVITY
NEW PROPERTY ACTIVITY
1515 BROADWAY
On March 27, 2002 the Company announced that it entered into a contribution
agreement to acquire 1515 Broadway, New York, New York in a transaction valued
at approximately $480 million, or $274 per square foot. The property is 98.2%
leased,
-7-
[SL GREEN REALTY CORP. LOGO]
FINANCIAL HIGHLIGHTS
1ST QUARTER 2002
UNAUDITED
with current market rents for office space at a 34% premium to fully
escalated in-place rents. The initial cash NOI yield of the transaction is
approximately 8.2%.
The property is currently owned by 1515 Broadway Associates, L.P., whose general
partner is an affiliate of The Equitable Life Assurance Society of the United
States. The transaction is anticipated to close at the end of the 2nd quarter
2002. It will be accomplished through a prepackaged bankruptcy reorganization by
the 1515 Broadway partnership, to which the parties have consented. The property
is being acquired in a joint venture with SITQ Immobilier, with SL Green
retaining an approximate 55% interest in the asset.
Located in the heart of New York's Times Square and within walking distance of
Manhattan's main transportation hubs, 1515 Broadway is a 1.75 million square
foot, 54-story office tower located on Broadway between 44th and 45th Streets.
It is the headquarters of Viacom, Inc., one of the world's leading media and
entertainment companies, whose holdings include franchise brands CBS, MTV
Networks (Nickelodeon, MTV and VH1), Paramount Pictures, Showtime Networks and
Infinity Broadcasting.
The property is being acquired with $335 million of financing committed by
Lehman Brothers and Bear Stearns. The balance of the proceeds are being funded
from the Company's unsecured line of credit and from the proceeds of the sale of
the joint venture interest to SITQ.
STRUCTURED FINANCE ACTIVITY
As of March 31, 2002 the Company's mortgage and preferred equity balances
totaled $188.4 million. The weighted balance outstanding over the quarter was
$188.4 million. The quarter-end weighted average run rate was 12.82%.
Subsequent to quarter-end, the Company sold a $15.0 million junior mortgage
participation to PRISA and a $5.3 million junior mortgage participation was
repaid. After this activity, the structured finance portfolio, including
preferred equity interests, totaled $168.8 million.
CAPITALIZATION AND LIQUIDITY
FAD before first cycle leasing costs improved 17% from $0.53 per share (diluted)
to $0.62 per share (diluted). In addition to the 7% growth from FFO, FAD
increased from (i) lower straight line and free rents ($1.1 million), (ii) lower
mortgage investment discount income and (iii) lower recurring capex ($0.2
million). These were partially offset by higher tenant improvements and leasing
commissions ($0.9 million).
The Company's dividend payout ratio was 56.8% of FFO and 71.7% of FAD before
first cycle leasing costs.
During March, the Company declared a dividend distribution of $0.4425 per common
share for the quarter ending March 31, 2002. This reflects the regular quarterly
dividend, which is the equivalent of an annualized dividend of $1.77 per common
share. At the close of the first quarter 2002, the common share
-8-
[SL GREEN REALTY CORP. LOGO]
FINANCIAL HIGHLIGHTS
1ST QUARTER 2002
UNAUDITED
annualized dividend yield was 5.3%. The Company also declared a dividend of
$0.50 per share of Preferred Income Equity Redeemable Stock for shareholders of
record as of March 31, 2002. Both dividends were paid on April 15, 2002.
OTHER
Annually, the Company adjusts the same store pool to include all properties
owned for a minimum of twelve months (since January 1, 2001). The 2002 same
store pool will include the following properties:
2002 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
17 Battery Place North
-9-
[SL GREEN REALTY CORP. LOGO]
FINANCIAL HIGHLIGHTS
FIRST QUARTER
UNAUDITED
THREE MONTHS ENDED MARCH 31
2002 2001
OPERATIONAL INFORMATION
------------------------------------------------------------------------------------------------
Total Revenues (000's) $ 61,683 $ 66,994
FUNDS FROM OPERATIONS
FFO per share-diluted $ 0.78 $ 0.73
FFO Payout 57% 53%
FUNDS AVAILABLE FOR DISTRIBUTION
FAD per share-diluted $ 0.62 $ 0.53
FAD Payout 72% 73%
OPERATING EARNINGS PER SHARE - DILUTED $ 0.50 $ 0.42
DIVIDENDS PER SHARE $ 0.4425 $ 0.3875
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,992 24,639
SAME-STORE CASH NOI INCREASE 4% 17%
CAPITALIZATION DATA (000'S)
Total Assets $ 1,367,985 $ 1,443,513
Total Consolidated Debt $ 495,117 $ 740,461
Minority Interest $ 47,295 $ 43,062
Preferred Stock $ 111,353 $ 110,888
Quarter End Closing Price - SLG Common Stock $ 33.60 $ 27.45
Total Market Capitalization $ 1,920,995 $ 1,724,690
RATIOS
------------------------------------------------------------------------------------------------
Consolidated Debt to Total Market Capitalization 29.20% 46.39%
Combined Debt Allocated 37.49% 50.38%
Consolidated Fixed Charge 2.47 1.94
Combined Fixed Charge 2.16 1.75
PORTFOLIO
------------------------------------------------------------------------------------------------
TOTAL BUILDINGS
Directly Owned 19 19
Joint Ventures 6 5
--------------- ---------------
25 24
Total SF 10,036,000 10,045,000
End of Quarter Occupancy - Total 97.0% 97.7%
End of Quarter Occupancy - 2002 Same Store 96.6% 98.5%
[SL GREEN REALTY CORP. LOGO]
FINANCIAL HIGHLIGHTS
1515 BROADWAY ACQUISITION PROFORMA
UNAUDITED
THREE MONTHS ENDED MARCH 31
1Q02 PROFORMA
OPERATIONAL INFORMATION
------------------------------------------------------------------------------------------------
CAPITALIZATION DATA (000'S)
Total Assets $ 1,367,985 $ 1,454,985
Total Consolidated Debt $ 495,117 $ 582,117
Total Combined Debt $ 720,250 $ 991,500
Total Market Capitalization $ 1,920,995 $ 2,192,245
RATIOS
------------------------------------------------------------------------------------------------
Consolidated Debt to Total Market Capitalization 29.20% 32.65%
Combined Debt to Total Market Capitalization 37.49% 45.23%
Consolidated Fixed Charge* 2.47 2.47
Combined Fixed Charge* 2.16 2.08
Consolidated Interest Coverage* 4.37 4.23
Combined Interest Coverage* 3.38 3.01
PORTFOLIO
------------------------------------------------------------------------------------------------
TOTAL BUILDINGS
Directly Owned 19 19
Joint Ventures 6 7
--------------- ---------------
25 26
Total SF 10,036,000 11,786,000
*Proforma ratios calculated using SLG's share of interest for the mortgage
and the estimated line of credit expense using the current quarter's
weighted interest rate.
SUPPLEMENTAL PACKAGE INFORMATION 11 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
COMPARATIVE BALANCE SHEETS
UNAUDITED
(000'S OMITTED)
3/31/2002 3/31/2001 +/- 12/31/2001
--------- --------- --- ----------
ASSETS
- --------------------------------------------------------------------------------------------------------------------
Commercial real estate properties, at cost:
Land & land interests 138,337 165,814 (27,477) 138,337
Buildings & improvements fee interest 699,610 785,280 (85,670) 689,094
Buildings & improvements leasehold 145,012 140,951 4,061 144,736
Buildings & improvements under capital lease 12,208 12,208 - 12,208
----------- ----------- ----------- -----------
995,167 1,104,253 (109,086) 984,375
Less accumulated depreciation (108,034) (81,409) (26,625) (100,776)
----------- ----------- ----------- -----------
887,133 1,022,844 (135,711) 883,599
Other Real Estate Investments:
Investment in unconsolidated joint ventures 124,958 72,673 52,285 123,469
Mortgage loans receivable 127,669 92,982 34,687 127,166
Preferred equity investments 61,451 - 61,451 61,472
Properties held for sale - 82,153 (82,153) -
Cash and cash equivalents 12,429 8,078 4,351 13,193
Restricted cash:
Tenant security 18,714 20,603 (1,889) 19,016
Escrows & other 18,412 22,842 (4,430) 19,408
Tenant and other receivables, net of $4,229 reserve at 3/31/02 7,754 8,940 (1,186) 8,793
Related party receivables 3,417 1,046 2,371 3,498
Deferred rents receivable, net of reserve for
tenant credit loss of $5,492 at 3/31/02 53,816 46,843 6,973 51,855
Investment in and advances to affiliates 2,811 6,919 (4,108) 8,211
Deferred costs, net 34,416 40,940 (6,523) 34,901
Other assets 15,005 16,650 (1,645) 16,996
----------- ----------- ----------- -----------
TOTAL ASSETS 1,367,985 1,443,513 (75,528) 1,371,577
====================================================================================================================
+/- 9/30/2001 +/-
--- --------- ---
ASSETS
- -------------------------------------------------------------------------------------------------------
Commercial real estate properties, at cost:
Land & land interests - 138,337 -
Buildings & improvements fee interest 10,516 679,821 19,789
Buildings & improvements leasehold 275 143,198 1,813
Buildings & improvements under capital lease - 12,208 -
----------- ----------- -----------
10,792 973,564 21,603
Less accumulated depreciation (7,258) (93,339) (14,695)
----------- ----------- -----------
3,534 880,225 6,908
Other Real Estate Investments:
Investment in unconsolidated joint ventures 1,489 143,049 (18,091)
Mortgage loans receivable 503 96,411 31,258
Preferred equity investments (21) 61,491 (40)
Properties held for sale - - -
Cash and cash equivalents (764) 5,991 6,438
Restricted cash:
Tenant security (302) 19,394 (881)
Escrows & other (997) 17,710 702
Tenant and other receivables, net of $4,229 reserve at 3/31/02 (1,038) 12,229 (4,475)
Related party receivables (82) 1,883 1,533
Deferred rents receivable, net of reserve for
tenant credit loss of $5,492 at 3/31/02 1,960 50,060 3,755
Investment in and advances to affiliates (5,401) 8,570 (5,759)
Deferred costs, net (484) 36,066 (1,650)
Other assets (1,990) 13,093 1,912
----------- ----------- -----------
TOTAL ASSETS (3,592) 1,346,171 21,814
=======================================================================================================
SUPPLEMENTAL PACKAGE INFORMATION 12 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
COMPARATIVE BALANCE SHEETS
UNAUDITED
(000'S OMITTED)
3/31/2002 3/31/2001 +/- 12/31/2001
--------- --------- --- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
- --------------------------------------------------------------------------------------------------------------------
Mortgage notes payable 408,186 528,535 (120,348) 409,900
Revolving credit facilities 86,931 211,926 (124,995) 94,931
Derivative Instruments-fair value 2,002 2,814 (812) 3,205
Accrued interest payable 1,617 3,676 (2,059) 1,875
Accounts payable and accrued expenses 24,386 22,122 2,264 22,819
Deferred compensation awards 671 1,838 (1,167) 1,838
Deferred revenue 1,676 2,073 (397) 1,381
Capitalized lease obligations 15,644 15,369 275 15,574
Deferred land lease payable 14,246 13,512 734 14,086
Dividend and distributions payable 16,596 12,746 3,850 16,570
Security deposits 19,019 20,137 (1,119) 18,829
----------- ----------- ----------- -----------
Total Liabilities 590,974 834,748 (243,774) 601,008
Minority interest (2,271 units outstanding) at 3/31/02 47,295 43,062 4,233 46,430
8% Preferred Income Equity Redeemable Shares
$0.01 par value, $25.00 mandatory liquidation
preference, 4,600 outstanding 111,353 110,888 465 111,231
STOCKHOLDERS' EQUITY
- --------------------------------------------------------------------------------------------------------------------
Common stock, $.01 par value 100,000
shares authorized, 30,042 issued and
outstanding at 3/31/02 301 248 53 300
Additional paid - in capital 585,509 433,482 152,027 583,350
Deferred compensation plans & officer loans (7,336) (9,400) 2,064 (7,515)
Accumulated other comprehensive loss (1,709) (2,409) 699 (2,911)
Retained earnings 41,598 32,894 8,704 39,684
----------- ----------- ----------- -----------
Total Stockholders' Equity 618,363 454,815 163,548 612,908
----------- ----------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,367,985 1,443,513 (75,528) 1,371,577
====================================================================================================================
+/- 9/30/2001 +/-
--- --------- ---
LIABILITIES AND STOCKHOLDERS' EQUITY
- -------------------------------------------------------------------------------------------------------
Mortgage notes payable (1,713) 411,393 (3,207)
Revolving credit facilities (8,000) 72,738 14,193
Derivative Instruments-fair value (1,203) 4,987 (2,984)
Accrued interest payable (258) 1,935 (318)
Accounts payable and accrued expenses 1,567 20,828 3,558
Deferred compensation awards (1,167) 1,838 (1,167)
Deferred revenue 294 1,363 313
Capitalized lease obligations 70 15,505 140
Deferred land lease payable 160 13,926 320
Dividend and distributions payable 26 14,775 1,821
Security deposits 190 18,903 116
----------- ----------- -----------
Total Liabilities (10,034) 578,190 12,784
Minority interest (2,271 units outstanding) at 3/31/02 865 46,474 821
8% Preferred Income Equity Redeemable Shares
$0.01 par value, $25.00 mandatory liquidation
preference, 4,600 outstanding 122 111,117 236
STOCKHOLDERS' EQUITY
- -------------------------------------------------------------------------------------------------------
Common stock, $.01 par value 100,000
shares authorized, 30,042 issued and
outstanding at 3/31/02 1 300 1
Additional paid - in capital 2,159 582,874 2,635
Deferred compensation plans & officer loans 178 (8,400) 1,064
Accumulated other comprehensive loss 1,202 (4,500) 2,791
Retained earnings 1,914 40,116 1,482
----------- ----------- -----------
Total Stockholders' Equity 5,456 610,390 7,973
----------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (3,592) 1,346,171 21,814
=======================================================================================================
SUPPLEMENTAL PACKAGE INFORMATION 13 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
COMPARATIVE STATEMENTS OF OPERATIONS
UNAUDITED
($000'S OMITTED)
THREE MONTHS ENDED
---------------------------------------
MAR-02 MAR-01 +/- %
------ ------ --- -
REVENUES
- ---------------------------------------------------------------------------------------------------
Rental revenue, net 45,764 51,991 (6,227) -12%
Free rent 1,564 1,948 (384) -20%
Amortization of free rent (849) (838) (11) 1%
--------- --------- --------- -----
Net free rent 715 1,110 (395) -36%
Straight-line rent 1,821 2,551 (730) -29%
Allowance for S/L tenant credit loss (516) (649) 133 -21%
Escalation and reimbursement revenues 6,726 8,057 (1,331) -17%
Signage rent 466 350 116 33%
Preferred equity investment income 1,911 - 1,911 0%
Investment income 3,720 3,274 446 14%
Other income 1,076 310 766 248%
--------- --------- --------- -----
TOTAL REVENUES, NET 61,683 66,994 (5,311) -8%
Equity in income/(loss) from affiliates (84) (269) 185 -69%
Equity in income from unconsolidated joint ventures 3,333 1,513 1,820 120%
EXPENSES
- ---------------------------------------------------------------------------------------------------
Operating expenses 13,719 15,826 (2,107) -13%
Ground rent 3,159 3,159 0 0%
Real estate taxes 7,355 8,180 (825) -10%
Marketing, general and administrative 3,202 3,547 (345) -10%
--------- --------- --------- -----
TOTAL OPERATING EXPENSES 27,435 30,712 (3,277) -11%
EBITDA 37,497 37,526 (29) 0%
Interest 9,112 13,897 (4,785) -34%
Depreciation and amortization 9,597 9,720 (123) -1%
--------- --------- --------- -----
INCOME BEFORE MINORITY INTEREST AND ITEMS 18,788 13,909 4,879 35%
Extraordinary loss-early debt extinguishment - (98) 98 -100%
Gain/(Loss)on sale of properties - 1,514 (1,514) -100%
Cumulative effect of accounting change - (532) 532 -100%
Minority interest - OP (1,152) (1,081) (72) 7%
--------- --------- --------- -----
NET INCOME 17,636 13,712 3,924 29%
Dividends on preferred shares 2,300 2,300 0 0%
Preferred stock accretion 123 114 8 7%
--------- --------- --------- -----
NET INCOME AVAILABLE FOR COMMON SHARES 15,213 11,298 3,915 35%
========= ========= ========= =====
RATIOS
- ---------------------------------------------------------------------------------------------------
MG&A to Real Estate Revenue, net 5.82% 5.59%
MG&A to Total Revenue, net 5.19% 5.29%
Operating Expense to Real Estate Revenue, net 24.96% 24.96%
EBITDA to Real Estate Revenue, net 68.21% 59.18%
EBITDA before Ground Rent to Real Estate Revenue, net 73.95% 64.16%
THREE MONTHS ENDED THREE MONTHS ENDED
------------------ ------------------
DEC-01 SEP-01
------ ------
REVENUES
- ---------------------------------------------------------------------------------------------------
Rental revenue, net 46,859 46,426
Free rent 693 877
Amortization of free rent (781) (739)
------------------ ------------------
Net free rent (88) 138
Straight-line rent 1,956 1,783
Allowance for S/L tenant credit loss (443) (377)
Escalation and reimbursement revenues 6,872 9,114
Signage rent 568 424
Preferred equity investment income 1,931 630
Investment income 3,182 3,306
Other income 1,455 479
------------------ ------------------
TOTAL REVENUES, NET 62,292 61,924
Equity in income/(loss) from affiliates (71) (57)
Equity in income from unconsolidated joint ventures 2,587 2,752
EXPENSES
- --------------------------------------------------------------------------------------------------
Operating expenses 13,159 15,076
Ground rent 3,159 3,101
Real estate taxes 7,373 7,452
Marketing, general and administrative 4,044 4,116
------------------ ------------------
TOTAL OPERATING EXPENSES 27,735 29,745
EBITDA 37,074 34,874
Interest 9,384 9,785
Depreciation and amortization 10,380 9,047
------------------ ------------------
INCOME BEFORE MINORITY INTEREST AND ITEMS 17,309 16,042
Extraordinary loss-early debt extinguishment - (332)
Gain/(Loss)on sale of properties (207) 647
Cumulative effect of accounting change - -
Minority interest - OP (1,104) (1,010)
------------------ ------------------
NET INCOME 15,998 15,347
Dividends on preferred shares 2,300 2,300
Preferred stock accretion 114 114
------------------ ------------------
NET INCOME AVAILABLE FOR COMMON SHARES 13,584 12,933
================== ==================
RATIOS
- --------------------------------------------------------------------------------------------------
MG&A to Real Estate Revenue, net 7.26% 7.16%
MG&A to Total Revenue, net 6.49% 6.65%
Operating Expense to Real Estate Revenue, net 23.61% 26.21%
EBITDA to Real Estate Revenue, net 66.53% 60.64%
EBITDA before Ground Rent to Real Estate Revenue, net 72.20% 66.03%
SUPPLEMENTAL PACKAGE INFORMATION 14 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
COMPARATIVE STATEMENTS OF OPERATIONS
UNAUDITED
($000'S OMITTED)
THREE MONTHS ENDED
-------------------------------
MAR-02 MAR-01
------ ------
PER SHARE DATA:
- ------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Net income per share (basic) 0.51 0.46
Net income per share (diluted) 0.50 0.45
OPERATING EARNINGS
Net Income Available For Common Shares 15,213 11,298 35%
Extraordinary item - 98 -100%
Cumulative effect of accounting change - 532 -100%
Gain on Sale - (1,514) -100%
--------- --------- ---------
OPERATING EARNINGS 15,213 10,414 46%
OPERATING EARNINGS PER SHARE - BASIC 0.51 0.42 20%
OPERATING EARNINGS PER SHARE - DILUTED 0.50 0.42 19%
TAXABLE INCOME
Net Income Available For Common Shares 15,213 11,346 34%
Book/Tax Depreciation Adjustment 1,803 (97) -1959%
Book/Tax Gain Recognition Adjustment - 686 -100%
Other Operating Adjustments (3,572) (3,320) 8%
C-corp Earnings 85 270 -69%
--------- --------- ---------
TAXABLE INCOME 13,529 8,885 52%
Dividend per share 0.4425 0.3875 14%
Estimated payout of taxable income 98% 107% -8%
Basic weighted average common shares 29,992 24,639 22%
Diluted weighted average common shares and
common share equivalents outstanding 32,905 27,403 20%
THREE MONTHS ENDED THREE MONTHS ENDED
------------------ -------------------
DEC-01 SEP-01
------ ------
PER SHARE DATA:
- --------------------------------------------------------------------------------------------------
EARNINGS PER SHARE
Net income per share (basic) 0.45 0.45
Net income per share (diluted) 0.45 0.44
OPERATING EARNINGS
Net Income Available For Common Shares 13,584 12,933
Extraordinary item - 332
Cumulative effect of accounting change - -
Gain on Sale 207 (647)
------------------ -------------------
OPERATING EARNINGS 13,791 12,618
OPERATING EARNINGS PER SHARE - BASIC 0.46 0.44
OPERATING EARNINGS PER SHARE - DILUTED 0.45 0.43
TAXABLE INCOME
Net Income Available For Common Shares 13,584 12,933
Book/Tax Depreciation Adjustment 7,255 (251)
Book/Tax Gain Recognition Adjustment 321 1,393
Other Operating Adjustments (2,317) (2,584)
C-corp Earnings 195 57
------------------ -------------------
TAXABLE INCOME 19,038 11,548
Dividend per share 0.4425 0.3875
Estimated payout of taxable income 68% 70%
Basic weighted average common shares 29,971 28,511
Diluted weighted average common shares and
common share equivalents outstanding 32,813 31,373
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, 90 Broad
Street, and 1412 Broadway through 1031 exchanges.
SUPPLEMENTAL PACKAGE INFORMATION 15 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
JOINT VENTURE STATEMENTS
BALANCE SHEET FOR UNCONSOLIDATED JOINT VENTURES
UNAUDITED
(000'S OMITTED)
MARCH 31, 2002
----------------- ---------------------
TOTAL PROPERTY SLG PROPERTY INTEREST
----------------- ---------------------
Land & land interests 129,471 65,858
Buildings & improvements 547,525 278,197
----------------- ---------------------
676,996 344,055
Less accumulated depreciation (22,668) (11,480)
----------------- ---------------------
Net Real Estate 654,328 332,575
Cash and cash equivalents 19,678 9,747
Restricted cash 19,122 9,880
Tenant receivables, net of $117 reserve 2,045 1,072
Deferred rents receivable, net of reserve for
tenant credit loss of $422 at 3/31/02 8,358 4,200
Deferred costs, net 9,731 4,917
Other assets 4,008 2,005
----------------- ---------------------
TOTAL ASSETS 717,270 364,396
================= =====================
Mortgage loan payable 444,469 225,133 references page 20 & 23
Derivative Instruments-fair value (549) (302)
Accrued interest payable (1) 1,767 878
Accounts payable and accrued expenses 11,106 5,756
Security deposits 5,718 2,769
Contributed Capital (2) 254,759 130,161 references page 12
----------------- ---------------------
TOTAL LIABILITIES AND EQUITY 717,270 364,396
================= =====================
MARCH 31, 2001
----------------------------------------
TOTAL PROPERTY SLG PROPERTY INTEREST
-------------- ---------------------
Land & land interests 107,832 47,477
Buildings & improvements 305,899 147,641
----------------- ---------------------
413,731 195,118
Less accumulated depreciation (8,847) (4,310)
----------------- ---------------------
Net Real Estate 404,884 190,808
Cash and cash equivalents 5,147 2,265
Restricted cash 13,477 6,438
Tenant receivables, net of $117 reserve 1,783 846
Deferred rents receivable, net of reserve for
tenant credit loss of $422 at 3/31/02 4,185 2,016
Deferred costs, net 4,472 2,124
Other assets 3,362 1,610
----------------- ---------------------
TOTAL ASSETS 437,310 206,107
================= =====================
Mortgage loan payable 274,650 128,408
Derivative Instruments-fair value
Accrued interest payable (1) 1,838 868
Accounts payable and accrued expenses 6,049 2,861
Security deposits 6,262 2,991
Contributed Capital (2) 148,511 70,979
----------------- ---------------------
TOTAL LIABILITIES AND EQUITY 437,310 206,107
================= =====================
As of March 31, 2002 the Company has six joint venture interests representing a
50% interest in 180 Madison Avenue acquired in December 2000, a 55% 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 includes a hedge instrument at fair value of $442K placed on
the existing mortgage on 1250 Broadway.
(2) This analysis excludes certain residual interests in the entity that held 90
Broad Street (sold November 2000).
SUPPLEMENTAL PACKAGE INFORMATION 16 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
JOINT VENTURE STATEMENTS
STATEMENTS OF OPERATIONS FOR UNCONSOLIDATED JOINT VENTURES
UNAUDITED
(000'S OMITTED)
THREE MONTHS ENDED MARCH 31, 2002
----------------------------------------------------------------------
SLG SLG
TOTAL PROPERTY PROPERTY INTEREST SUBSIDIARY
-------------- ----------------- ----------
REVENUES
- --------------------------------------------------------------------------------------------------------------------------------
Rental Revenue, net 22,053 11,223
Free rent 689 358
Amortization of free rent (113) (56)
---------------------- ----------------------
Net free rent 575 302
Straight-line rent 1,074 545
Allowance for S/L tenant credit loss (262) (135)
Escalation and reimbursement revenues 4,509 2,302
Investment income 116 58
Other income 229 119
---------------------- ----------------------
TOTAL REVENUES, NET 28,295 14,414
EXPENSES
- --------------------------------------------------------------------------------------------------------------------------------
Operating expenses 7,126 3,605
Real estate taxes 4,253 2,161
---------------------- ----------------------
TOTAL OPERATING EXPENSES 11,379 5,766
GAAP NOI 17,177 8,783
CASH NOI 15,528 7,936
Interest 6,376 3,226
Depreciation and amortization 4,120 2,089
---------------------- ----------------------
NET INCOME 6,419 3,333 references page 14
Plus: Real Estate Depreciation 3,701 1,881 references page 19
Plus: Extraordinary Loss - -
Plus: Management & Leasing Fees - - 74
---------------------- ---------------------- ----------------------
FUNDS FROM OPERATIONS 10,120 5,214
FAD ADJUSTMENTS:
- --------------------------------------------------------------------------------------------------------------------------------
Plus: Non Real Estate Depreciation 419 211
Plus: 2% Allowance for S/L Tenant Credit Loss 262 135
Less: Free and S/L Rent (1,649) (847)
Less: Second Cycle Tenant Improvement, (637) (310)
Leasing Commissions & Recurring Capex (76) (39)
---------------------- ----------------------
FAD ADJUSTMENT (1,681) (850)
====================== ======================
Operating Expense to Real Estate Revenue, net 25.26% 25.08%
GAAP NOI to Real Estate Revenue, net 60.89% 61.12%
Cash NOI to Real Estate Revenue, net 55.04% 55.22%
THREE MONTHS ENDED MARCH 31, 2001
----------------------------------------------------------------------
SLG SLG
TOTAL PROPERTY PROPERTY INTEREST SUBSIDIARY
-------------- ----------------- ----------
REVENUES
- --------------------------------------------------------------------------------------------------------------------------------
Rental Revenue, net 13,983 6,711
Free rent 327 158
Amortization of free rent (70) (33)
---------------------- ----------------------
Net free rent 257 125
Straight-line rent 616 283
Allowance for S/L tenant credit loss (150) (71)
Escalation and reimbursement revenues 3,382 1,619
Investment income 98 47
Other income 92 48
---------------------- ----------------------
TOTAL REVENUES, NET 18,278 8,763
EXPENSES
- --------------------------------------------------------------------------------------------------------------------------------
Operating expenses 4,590 2,306
Real estate taxes 2,856 1,376
---------------------- ----------------------
TOTAL OPERATING EXPENSES 7,446 3,682
GAAP NOI 10,983 5,151
CASH NOI 10,110 4,744
Interest 5,370 2,541
Depreciation and amortization 2,289 1,085
---------------------- ----------------------
NET INCOME 3,174 1,455
Plus: Real Estate Depreciation 2,090 996
Plus: Extraordinary Loss - -
Plus: Management & Leasing Fees - - 64
---------------------- ---------------------- ----------------------
FUNDS FROM OPERATIONS 5,264 2,451
FAD ADJUSTMENTS:
- --------------------------------------------------------------------------------------------------------------------------------
Plus: Non Real Estate Depreciation 198 89
Plus: 2% Allowance for S/L Tenant Credit Loss 150 71
Less: Free and S/L Rent (873) (408)
Less: Second Cycle Tenant Improvement, - -
Leasing Commissions & Recurring Capex (1,141) (490)
---------------------- ----------------------
FAD ADJUSTMENT (1,666) (738)
====================== ======================
Operating Expense to Real Estate Revenue, net 25.17% 26.39%
GAAP NOI to Real Estate Revenue, net 60.22% 58.95%
Cash NOI to Real Estate Revenue, net 55.44% 54.29%
SUPPLEMENTAL PACKAGE INFORMATION 17 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
($000'S OMITTED)
RETAINED EARNINGS /
ADDITIONAL (DISTRIBUTIONS IN
COMMON STOCK PAID-IN CAPITAL EXCESS OF EARNINGS)
---------------- ---------------- --------------------
BALANCE AT DECEMBER 31, 2000 246 428,698 31,166
Net Income 63,001
Cumulative Effect of Accounting Change
Preferred Dividend and Accretion (9,657)
Proceeds from common stock offering & revaluation of 50 144,558
minority interest ($2,927)
Deferred compensation plan 1 4,122
Exercise of employee stock options 3 5,283
Cash distributions declared ($1.605 per common share) (44,826)
Redemption of operating partnership units 689
Comprehensive Income - Unrealized loss of derivative instruments
Amortization of officers' loan and deferred compensation
---------------- ---------------- --------------------
BALANCE AT DECEMBER 31, 2001 300 583,350 39,684
Net Income 17,636
Preferred Dividend and Accretion (2,423)
Exercise of employee stock options 1 2,159
Cash distributions declared ($0.4425 per common share) (13,299)
Comprehensive Income - Unrealized loss of derivative instruments
Amortization of deferred compensation
---------------- ---------------- --------------------
BALANCE AT MARCH 31, 2002 (UNAUDITED) 301 585,509 41,598
DEFERRED ACCUMULATED
COMPENSATION OTHER
PLAN / OFFICERS' COMPREHENSIVE
LOAN LOSS TOTAL
---------------- ---------------- --------------------
BALANCE AT DECEMBER 31, 2000 (5,037) - 455,073
Net Income 63,001
Cumulative Effect of Accounting Change (811) (811)
Preferred Dividend and Accretion (9,657)
Proceeds from common stock offering & revaluation of 144,608
minority interest ($2,927) -
Deferred compensation plan (4,105) 18
Exercise of employee stock options 5,286
Cash distributions declared ($1.605 per common share) (44,826)
Redemption of operating partnership units 689
Comprehensive Income - Unrealized loss of derivative instruments (2,100) (2,100)
Amortization of officers' loan and deferred compensation 1,627 1,627
---------------- ---------------- --------------------
BALANCE AT DECEMBER 31, 2001 (7,515) (2,911) 612,908
Net Income 17,636
Preferred Dividend and Accretion (2,423)
Exercise of employee stock options 2,160
Cash distributions declared ($0.4425 per common share) (13,299)
Comprehensive Income - Unrealized loss of derivative instruments 1,202 1,202
Amortization of deferred compensation 179 179
---------------- ---------------- --------------------
BALANCE AT MARCH 31, 2002 (UNAUDITED) (7,336) (1,709) 618,363
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION
COMMON STOCK OP UNITS STOCK OPTIONS
---------------- ---------------- --------------------
BALANCE AT DECEMBER 31, 2001 29,978,304 2,271,404 -
Quarterly share activity 64,134 -
---------------- ---------------- --------------------
BALANCE AT MARCH 31, 2002 - BASIC 30,042,438 2,271,404 -
Dilution Factor (50,408) 641,415
---------------- ---------------- --------------------
BALANCE AT MARCH 31, 2002 - DILUTED 29,992,030 2,271,404 641,415
SUB-TOTAL PREFERRED STOCK DILUTED SHARES
---------------- ---------------- --------------------
BALANCE AT DECEMBER 31, 2001 32,249,708 - 32,249,708
Quarterly share activity 64,134 64,134
---------------- ---------------- --------------------
BALANCE AT MARCH 31, 2002 - BASIC 32,313,842 - 32,313,842
Dilution Factor 591,007 4,698,900 5,289,907
---------------- ---------------- --------------------
BALANCE AT MARCH 31, 2002 - DILUTED 32,904,849 4,698,900 37,603,749
SUPPLEMENTAL PACKAGE INFORMATION 18 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
COMPARATIVE COMPUTATION OF FFO AND FAD
UNAUDITED
($000'S OMITTED - EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31,
------------------------------------------------
2002 2001 % CHANGE
---- ---- --------
FUNDS FROM OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------------------
Net Income before Minority Interests 18,788 13,909 35%
Add: Depreciation and Amortization 9,597 9,720 -1%
FFO adjustment for Joint Ventures 1,881 996 89%
Less: Dividends on Preferred Shares 2,300 2,300 0%
Non Real Estate Depreciation/Amortization of
Finance Costs 987 1,155 -15%
--------------- -------------- ---------------
FUNDS FROM OPERATIONS - BASIC 26,979 21,170 27%
FUNDS FROM OPERATIONS - BASIC PER SHARE 0.84 0.79 6%
Add: Dividends on Preferred Shares 2,300 2,300 0%
--------------- -------------- ---------------
FUNDS FROM OPERATIONS - DILUTED 29,279 23,470 25%
FUNDS FROM OPERATIONS - DILUTED PER SHARE 0.78 0.73 7%
FUNDS AVAILABLE FOR DISTRIBUTION
- ---------------------------------------------------------------------------------------------------------------------------------
FFO (1) 29,279 23,470 25%
Add: Non Real Estate Depreciation 987 1,155 -15%
2% Allowance for S/L Tenant Credit Loss 516 649 -21%
Straight-line Ground Rent 160 354 -55%
Non-cash Deferred Compensation 179 349 -49%
FAD adjustment for Joint Ventures (850) (739) 15%
Less: Straight-line Rental Income 1,821 2,551 -29%
Free Rent - Occupied (Net of Amortization, incl. First Cycle) 715 1,110 -36%
Amortization of Mortgage Investment Discount 95 759 -87%
Second Cycle Tenant Improvement & Leasing
Commission on Existing Space 4,451 3,558 25%
Recurring Building Improvements 88 327 -73%
--------------- -------------- ---------------
FUNDS AVAILABLE FOR DISTRIBUTION 23,100 16,932 36%
Diluted per Share 0.62 0.53 17%
First Cycle Leasing Costs
Tenant Improvement & Leasing Commissions 357 539 -34%
--------------- -------------- ---------------
FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST CYCLE LEASING COSTS 22,743 16,393 39%
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.60 0.51 19%
Redevelopment Costs 2,329 2,789 -17.0%
PAYOUT RATIO OF FUNDS FROM OPERATIONS 56.83% 53.00%
PAYOUT RATIO OF FUNDS AVAILABLE FOR DISTRIBUTION
BEFORE FIRST CYCLE 71.86% 72.57%
THREE MONTHS ENDED DEC 31
-------------------------------
2001 % CHANGE
---- --------
FUNDS FROM OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
Net Income before Minority Interests 17,309 9%
Add: Depreciation and Amortization 10,380 -8%
FFO adjustment for Joint Ventures 1,996 -6%
Less: Dividends on Preferred Shares 2,300 0%
Non Real Estate Depreciation/Amortization of
Finance Costs 1,102 -10%
--------------- --------------
FUNDS FROM OPERATIONS - BASIC 26,283 3%
FUNDS FROM OPERATIONS - BASIC PER SHARE 0.82 0%
Add: Dividends on Preferred Shares 2,300 0%
--------------- --------------
FUNDS FROM OPERATIONS - DILUTED 28,583 2%
FUNDS FROM OPERATIONS - DILUTED PER SHARE 0.76 3%
FUNDS AVAILABLE FOR DISTRIBUTION
- ----------------------------------------------------------------------------------------------------------------
FFO (1) 28,583 2%
Add: Non Real Estate Depreciation 1,102 -10%
2% Allowance for S/L Tenant Credit Loss 443 17%
Straight-line Ground Rent 160 0%
Non-cash Deferred Compensation 349 -49%
FAD adjustment for Joint Ventures (1,540) -45%
Less: Straight-line Rental Income 1,956 -7%
Free Rent - Occupied (Net of Amortization, incl. First Cycle) (88) -911%
Amortization of Mortgage Investment Discount 175 -46%
Second Cycle Tenant Improvement & Leasing
Commission on Existing Space 5,397 -18%
Recurring Building Improvements 1,411 -94%
--------------- --------------
FUNDS AVAILABLE FOR DISTRIBUTION 20,246 14%
Diluted per Share 0.54 14%
First Cycle Leasing Costs
Tenant Improvement & Leasing Commissions 74 383%
--------------- --------------
FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST CYCLE LEASING COSTS 20,172 13%
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.54 12%
Redevelopment Costs 4,708 -51%
PAYOUT RATIO OF FUNDS FROM OPERATIONS 58.07%
PAYOUT RATIO OF FUNDS AVAILABLE FOR DISTRIBUTION
BEFORE FIRST CYCLE 81.99%
THREE MONTHS ENDED SEPT 30
-------------------------------
2001 % CHANGE
---- --------
FUNDS FROM OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
Net Income before Minority Interests 16,042 17%
Add: Depreciation and Amortization 9,047 6%
FFO adjustment for Joint Ventures 2,225 -15%
Less: Dividends on Preferred Shares 2,300 0%
Non Real Estate Depreciation/Amortization of
Finance Costs 1,059 -7%
--------------- --------------
FUNDS FROM OPERATIONS - BASIC 23,955 13%
FUNDS FROM OPERATIONS - BASIC PER SHARE 0.78 8%
Add: Dividends on Preferred Shares 2,300 0%
--------------- --------------
FUNDS FROM OPERATIONS - DILUTED 26,255 12%
FUNDS FROM OPERATIONS - DILUTED PER SHARE 0.73 7%
FUNDS AVAILABLE FOR DISTRIBUTION
- ----------------------------------------------------------------------------------------------------------------
FFO (1) 26,255 12%
Add: Non Real Estate Depreciation 1,059 -7%
2% Allowance for S/L Tenant Credit Loss 377 37%
Straight-line Ground Rent 60 167%
Non-cash Deferred Compensation 349 -49%
FAD adjustment for Joint Ventures (2,922) -71%
Less: Straight-line Rental Income 1,783 2%
Free Rent - Occupied (Net of Amortization, incl. First Cycle) 138 418%
Amortization of Mortgage Investment Discount 177 -46%
Second Cycle Tenant Improvement & Leasing
Commission on Existing Space 2,449 82%
Recurring Building Improvements 431 -80%
--------------- --------------
FUNDS AVAILABLE FOR DISTRIBUTION 20,201 14%
Diluted per Share 0.56 11%
First Cycle Leasing Costs
Tenant Improvement & Leasing Commissions 7 5000%
--------------- --------------
FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST CYCLE LEASING COSTS 20,194 13%
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.56 9%
Redevelopment Costs 4,147 -44%
PAYOUT RATIO OF FUNDS FROM OPERATIONS 53.24%
PAYOUT RATIO OF FUNDS AVAILABLE FOR DISTRIBUTION
BEFORE FIRST CYCLE 69.20%
SUPPLEMENTAL PACKAGE INFORMATION 19 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
SELECTED FINANCIAL DATA
CAPITALIZATION ANALYSIS
UNAUDITED
($000'S OMITTED)
MARCH 31, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2002 2001 2001 2001
---- ---- ---- ----
MARKET CAPITALIZATION
- ------------------------------------------------------------------------------------------------------------------------------------
Common Equity:
Common Shares Outstanding 30,042 24,705 29,978 29,945
OP Units Outstanding 2,271 2,283 2,271 2,278
=========== ========== =========== ===========
TOTAL COMMON EQUITY (SHARES AND UNITS) 32,314 26,988 32,249 32,223
Share Price (End of Period) 33.60 27.45 30.71 31.52
----------- ---------- ----------- -----------
Equity Market Value 1,085,745 740,821 990,379 1,015,669
Preferred Equity at Liquidation Value: 115,000 115,000 115,000 115,000
REAL ESTATE DEBT
- -----------------------------------------------------------------------------------------------------------------------------------
Property Level Mortgage Debt 408,186 528,535 409,900 411,393
Company's portion of Joint Venture Mortgages 225,133 128,408 225,290 263,478
Outstanding Balance on - Secured Credit Line 34,931 44,926 34,931 19,738
Outstanding Balance on - Unsecured Credit Line 52,000 167,000 60,000 53,000
----------- ---------- ----------- -----------
TOTAL COMBINED DEBT 720,250 868,869 730,120 747,609
TOTAL MARKET CAP (DEBT & EQUITY) 1,920,995 1,724,690 1,835,499 1,878,278
LINES OF CREDIT AVAILABILITY
- ------------------------------------------------------------------------------------------------------------------------------------
Senior Unsecured Line of Credit
Maximum Line Available 300,000 300,000 300,000 300,000
Letters of Credit issued 30,000 5,000 5,000 5,000
Outstanding Balance 52,000 167,000 60,000 53,000
----------- ---------- ----------- -----------
Net Line Availability 218,000 128,000 235,000 242,000
----------- ---------- ----------- -----------
Secured Line of Credit
Maximum Line Available 75,000 60,000 75,000 60,000
Outstanding Balance 34,931 44,926 34,931 19,738
----------- ---------- ----------- -----------
Net Line Availability 40,069 15,074 40,069 40,262
----------- ---------- ----------- -----------
TOTAL AVAILABILITY UNDER LINES OF CREDIT 258,069 143,074 275,069 282,262
=========== ========== =========== ===========
RATIO ANALYSIS
- ------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED BASIS
Debt to Market Cap Ratio 29.20% 46.39% 31.35% 29.98%
Debt to Gross Real Estate Book Ratio (1) 46.82% 59.23% 48.34% 48.31%
Secured Real Estate Debt to Secured Assets Gross Book (1) 66.04% 75.98% 77.68% 67.51%
Unsecured Debt to Unencumbered
Assets-Gross Book Value (1) 14.03% 46.18% 15.92% 15.67%
Secured Line of Credit to Structured Finance Assets (1) 27.36% 48.32% 18.52% 12.50%
JOINT VENTURES ALLOCATED
Combined Debt to Market Cap Ratio 37.49% 50.38% 39.78% 39.80%
Debt to Gross Real Estate Book Ratio (1) 51.71% 60.23% 53.24% 53.77%
Secured Debt to Secured Assets Gross Book (1) 47.58% 73.87% 51.31% 67.38%
(1) Excludes property under capital lease
SUPPLEMENTAL PACKAGE INFORMATION 20 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
SELECTED FINANCIAL DATA
PROPERTY NOI AND COVERAGE RATIOS
UNAUDITED
($000'S OMITTED)
THREE MONTHS ENDED MARCH 31
----------------------------------------------
2002 2001 +/- % CHANGE
---- ---- --- --------
FUNDS FROM OPERATIONS 26,979 21,170 5,809 27%
- --------------------------------------------------------------------------------------------------------------
Less: Non - Building Revenue 8,294 4,262 4,032 95%
Plus: 2% Reserve for Tenant Credit Loss 516 649 (133) -21%
Interest Expense (incl. Capital Lease Int.) 9,112 13,897 (4,785) -34%
Non Real Estate Depreciation 987 1,155 (168) -15%
MG&A Expense 3,202 3,547 (345) -10%
Preferred Dividend 2,300 2,300 0 0%
-------- -------- --------
GAAP NOI 34,802 38,456 (3,654) -10%
CASH ADJUSTMENTS
- --------------------------------------------------------------------------------------------------------------
Less: Free Rent (Net of Amortization) 1,017 1,110 (93) -8%
Straightline Revenue Adjustment 2,366 2,551 (185) -7%
Plus: Ground Lease Straight-line Adjustment 160 160 - 0%
-------- -------- --------
CASH NOI 31,579 34,955 (3,376) -10%
Real Estate Revenue, net 55,491 64,060 (8,568) -13%
OPERATING MARGINS
- --------------------------------------------------------------------------------------------------------------
GAAP NOI/Real Estate Revenue, net 62.72% 60.03%
Cash NOI/Real Estate Revenue, net 56.91% 54.57%
GAAP NOI before Ground Rent/Real Estate Revenue, net 68.41% 65.00%
Cash NOI before Ground Rent/Real Estate Revenue, net 62.31% 59.28%
COMPONENTS OF DEBT AND FIXED CHARGES
- --------------------------------------------------------------------------------------------------------------
Interest on Fixed Rate Loans 5,628 6,762 (1,134) -17%
Interest on Floating Rate Loans 3,484 7,135 (3,651) -51%
Fixed Amortization Principal Payments 1,713 1,087 626 58%
-------- -------- --------
TOTAL DEBT SERVICE 10,825 14,984 (4,159) -28%
Payments under Ground Lease Arrangements 2,999 2,999 - 0%
Preferred Stock Dividend 2,300 2,300 - 0%
-------- -------- --------
TOTAL FIXED CHARGES 16,124 20,283 (4,159) -21%
Adjusted EBITDA 39,849 39,018
Interest Coverage Ratio 4.37 2.81
Debt Service Coverage ratio 3.68 2.60
Fixed Charge Coverage ratio 2.47 1.94
THREE MONTHS ENDED DECEMBER 31
------------------------------
2001 +/- %CHANGE
---- --- -------
FUNDS FROM OPERATIONS 26,283 696 3%
- -------------------------------------------------------------------------------------------
Less: Non - Building Revenue 8,458 (164) -2%
Plus: 2% Reserve for Tenant Credit Loss 443 73 16%
Interest Expense (incl. Capital Lease Int.) 9,384 (272) -3%
Non Real Estate Depreciation 1,102 (116) -10%
MG&A Expense 4,044 (842) -21%
Preferred Dividend 2,300 0 0%
------- ------ ------
GAAP NOI 35,098 (296) -1%
CASH ADJUSTMENTS
- -------------------------------------------------------------------------------------------
Less: Free Rent (Net of Amortization) 295 722 244%
Straightline Revenue Adjustment 2,470 (104) -4%
Plus: Ground Lease Straight-line Adjustment 160 - 0%
------- ------ ------
CASH NOI 32,493 (913) -3%
Real Estate Revenue, net 56,167 (676) -1%
OPERATING MARGINS
- -------------------------------------------------------------------------------------------
GAAP NOI/Real Estate Revenue, net 62.49%
Cash NOI/Real Estate Revenue, net 57.85%
GAAP NOI before Ground Rent/Real Estate Revenue, net 68.11%
Cash NOI before Ground Rent/Real Estate Revenue, net 63.19%
COMPONENTS OF DEBT AND FIXED CHARGES
- -------------------------------------------------------------------------------------------
Interest on Fixed Rate Loans 5,762 (134) -2%
Interest on Floating Rate Loans 3,622 (138) -4%
Fixed Amortization Principal Payments 1,493 220 15%
------- ------ ------
TOTAL DEBT SERVICE 10,877 (52) 0%
Payments under Ground Lease Arrangements 2,999 - 0%
Preferred Stock Dividend 2,300 - 0%
------- ------ ------
TOTAL FIXED CHARGES 16,176 (52) 0%
Adjusted EBITDA 39,906
Interest Coverage Ratio 4.25
Debt Service Coverage ratio 3.67
Fixed Charge Coverage ratio 2.47
SUPPLEMENTAL PACKAGE INFORMATION 21 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
SELECTED FINANCIAL DATA
2002 SAME STORE UNAUDITED
($000'S OMITTED)
THREE MONTHS ENDED MARCH 31
--------------------------------------------
2002 2001 +/- % CHANGE
---- ---- --- --------
REVENUES
- ----------------------------------------------------------------------------------------------------------
Rental Revenue 42,092 42,232 (140) 0%
Credit Loss (466) (470) 4 -1%
Signage Rent 416 350 66 19%
Escalation & Reimbursement Revenues 5,911 6,057 (146) -2%
Investment & Other Income 395 688 (293) -43%
-------- -------- -------
TOTAL REVENUES 48,348 48,857 (509) -1%
EXPENSES
- ----------------------------------------------------------------------------------------------------------
Operating Expense 11,111 11,965 (854) -7%
Ground Rent 3,159 3,159 - 0%
Real Estate Taxes 6,357 6,032 325 5%
-------- -------- -------
TOTAL OPERATING EXPENSES 20,627 21,156 (529) -3%
EBITDA 27,721 27,701 20 0%
Interest 6,683 6,938 (255) -4%
Depreciation & Amortization 7,307 6,475 832 13%
Income Before Minority Interest 13,731 14,288 (558) -4%
Plus: Real Estate Depreciation & Amortization 7,102 6,216 886 14%
-------- -------- -------
FFO 20,833 20,504 329 2%
Less: Non - Building Revenue 295 640 (345) -54%
Plus: 2% Reserve for Tenant Credit Loss 466 470 (4) -1%
Interest Expense 6,683 6,938 (255) -4%
Non Real Estate Depreciation 205 259 (54) -21%
-------- -------- -------
GAAP NOI 27,892 27,532 360 1%
CASH ADJUSTMENTS
- ----------------------------------------------------------------------------------------------------------
Less: Free Rent (Net of Amortization) 613 1,122 (509) -45%
Straightline Revenue Adjustment 1,564 1,973 (409) -21%
Plus: Ground Lease Straight-line Adjustment 160 354 (194) -55%
-------- -------- -------
CASH NOI 25,875 24,791 1,084 4%
OPERATING MARGINS
- ----------------------------------------------------------------------------------------------------------
GAAP NOI to Real Estate Revenue, net 57.49% 56.55%
Cash NOI to Real Estate Revenue, net 53.33% 50.92%
GAAP NOI before Ground Rent/Real Estate Revenue, net 64.00% 63.04%
Cash NOI before Ground Rent/Real Estate Revenue, net 59.51% 56.68%
THREE MONTHS ENDED DECEMBER 31
------------------------------
2001 +/- %CHANGE
---- --- -------
REVENUES
- --------------------------------------------------------------------------------------------
Rental Revenue 42,600 (508) -1%
Credit Loss (408) (58) 14%
Signage Rent 433 (17) -4%
Escalation & Reimbursement Revenues 4,821 1,090 23%
Investment & Other Income 159 236 148%
-------- -------
TOTAL REVENUES 47,604 744 2%
EXPENSES
- --------------------------------------------------------------------------------------------
Operating Expense 10,688 423 4%
Ground Rent 3,159 (0) 0%
Real Estate Taxes 6,377 (20) 0%
-------- -------
TOTAL OPERATING EXPENSES 20,224 403 2%
EBITDA 27,380 341 1%
Interest 6,837 (154) -2%
Depreciation & Amortization 7,920 (613) -8%
Income Before Minority Interest 12,623 1,108 9%
Plus: Real Estate Depreciation & Amortization 7,699 (597) -8%
-------- -------
FFO 20,322 511 3%
Less: Non - Building Revenue 144 152 106%
Plus: 2% Reserve for Tenant Credit Loss 408 58 14%
Interest Expense 6,837 (153) -2%
Non Real Estate Depreciation 221 (17) -8%
-------- -------
GAAP NOI 27,644 246 1%
CASH ADJUSTMENTS
- --------------------------------------------------------------------------------------------
Less: Free Rent (Net of Amortization) (81) 694 -854%
Straightline Revenue Adjustment 1,691 (127) -7%
Plus: Ground Lease Straight-line Adjustment 160 - 0%
-------- -------
CASH NOI 26,194 (319) -1%
OPERATING MARGINS
- --------------------------------------------------------------------------------------------
GAAP NOI to Real Estate Revenue, net 57.75%
Cash NOI to Real Estate Revenue, net 54.72%
GAAP NOI before Ground Rent/Real Estate Revenue, net 64.35%
Cash NOI before Ground Rent/Real Estate Revenue, net 60.99%
SUPPLEMENTAL PACKAGE INFORMATION 22 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
DEBT SUMMARY SCHEDULE
UNAUDITED
($000'S OMITTED)
PRINCIPAL FIXED 2002
OUTSTANDING ANNUAL PRINCIPAL
3/31/02 COUPON PAYMENT REPAYMENT
------- ------ ------- ---------
FIXED RATE SECURED DEBT
- ---------------------------------------------------------------------------------------------------------------------------
Property
673 First Avenue 8,177 9.00% 5,459 3,301
470 Park Avenue South 9,246 8.25% 1,203 452
50 West 23rd Street 21,000 7.33% 1,539 -
CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) 25,934 7.90% 2,402 336
711 Third Avenue 48,719 8.13% 4,383 373
555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) 68,761 8.10% 5,645 676
420 Lexington Avenue 124,313 8.44% 12,385 1,693
317 Madison (Libor Swap of 4.01% + 180bps) 65,000 5.81% 3,829 -
875 Bridgeport Avenue, CT (1031 exchange asset) 14,858 8.32% 1,273 37
-------- ---- -------- ---------
TOTAL FIXED RATE SECURED DEBT 386,008 7.80% WTD AVG 38,118 6,867
FLOATING RATE DEBT
- ---------------------------------------------------------------------------------------------------------------------------
SECURED FLOATING RATE DEBT
Structured Finance Loan (Libor + 100bp) 22,178 2.86% -
Secured Line of Credit (Libor + 150bps) 34,931 3.39% -
--------
TOTAL FLOATING RATE SECURED DEBT 57,109 3.19% WTD AVG
UNSECURED FLOATING RATE DEBT
Senior Unsecured Line of Credit (Libor + 150 bps) 52,000 3.39% -
--------
TOTAL FLOATING RATE UNSECURED DEBT 52,000 3.39% WTD AVG
TOTAL FLOATING RATE DEBT OUTSTANDING 109,109 3.28% WTD AVG
TOTAL DEBT 495,117 6.81% WTD AVG
WEIGHTED AVERAGE BALANCE & INTEREST RATE 509,312 6.71%
SUMMARY OF JOINT VENTURE DEBT
PRINCIPAL O/S
--------------------------
GROSS PRINCIPAL SLG SHARE
--------------- ---------
JOINT VENTURE DEBT
- ---------------------------------------------------------------------------------------------------------------------------
180 Madison JV 31,933 15,934 7.81% 2,765 278
1250 Broadway (Libor Swap of 4.03% + 250bp (1) 85,000 46,750 6.53% 5,551 -
469 Seventh Avenue (Libor + 210bp) 36,000 12,600 3.95% - -
321 W 44th JV (Libor + 250bps) 22,000 7,700 4.36% - -
1 Park Avenue (Libor + 150 bps) 150,000 82,500 3.35% - -
100 Park Avenue JV 119,537 59,649 8.00% 10,617 883
------------- -------- ---- -------- ---------
TOTAL JOINT VENTURE DEBT 444,470 225,133 5.63% 18,932 1,161
WEIGHTED AVERAGE BALANCE & INTEREST RATE WITH SLG JV DEBT 734,563 6.38%
MATURITY DUE AT EARLIEST CONTRACTUAL
DATE MATURITY PREPAYMENT DATE
---- -------- ---------------
FIXED RATE SECURED DEBT
- ---------------------------------------------------------------------------------------------------------
Property
673 First Avenue 12/13/03 2,000 Open
470 Park Avenue South 4/1/04 8,285 Open
50 West 23rd Street 8/1/07 19,234 Aug-01
CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) 5/1/09 12,196 Apr-03
711 Third Avenue 9/10/05 22,825 Jun-04
555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) 11/4/04 66,959 Open
420 Lexington Avenue 11/1/10 104,406 Open
317 Madison (Libor Swap of 4.01% + 180bps) 8/20/04 65,000 Open
875 Bridgeport Avenue, CT (1031 exchange asset) 5/10/25 5,466 Open
TOTAL FIXED RATE SECURED DEBT
FLOATING RATE DEBT
- ---------------------------------------------------------------------------------------------------------
SECURED FLOATING RATE DEBT
Structured Finance Loan (Libor + 100bp) 11/1/02 22,178 Nov-02
Secured Line of Credit (Libor + 150bps) 12/22/04 34,931 Open
TOTAL FLOATING RATE SECURED DEBT
UNSECURED FLOATING RATE DEBT
Senior Unsecured Line of Credit (Libor + 150 bps) 6/27/03 52,000 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 12/1/05 30,778 Open
1250 Broadway (Libor Swap of 4.03% + 250bp (1) 10/1/04 85,000 Open
469 Seventh Avenue (Libor + 210bp) 2/1/03 12,600 Open
321 W 44th JV (Libor + 250bps) 4/30/03 7,700 Open
1 Park Avenue (Libor + 150 bps) 1/10/04 82,500 Open
100 Park Avenue JV 9/1/10 107,488 Open
(1) Swap on 1250 mortgage executed on SLG portion only through January 11, 2005.
SUPPLEMENTAL PACKAGE INFORMATION 23 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
SUMMARY OF GROUND LEASE ARRANGEMENTS
CONSOLIDATED STATEMENT (REIT)
($000'S OMITTED)
2002 SCHEDULED 2003 SCHEDULED 2004 SCHEDULED 2005 SCHEDULED DEFERRED LAND YEAR OF
PROPERTY CASH PAYMENT CASH PAYMENT CASH PAYMENT CASH PAYMENT LEASE OBLIGATIONS (1) MATURITY
-------- ------------ ------------ ------------ ------------ --------------------- --------
OPERATING LEASES
- -------------------------------------------------------------------------------------------------------------------------------
673 First Avenue 3,010 3,010 3,010 3,108 12,592 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 Third Avenue (2) (5) 1,550 1,550 1,550 1,550 1,654 2032
-------------- -------------- -------------- -------------- ---------------------
TOTAL 11,982 11,982 11,982 12,080 14,246
============== ============== ============== ============== =====================
CAPITALIZED LEASE
- -------------------------------------------------------------------------------------------------------------------------------
673 First Avenue 1,290 1,290 1,290 1,322 15,644 2037
============== ============== ============== ============== ======================
(1) Per the balance sheet at March 31, 2002.
(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 24 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
STRUCTURED FINANCE
($000'S OMITTED)
ASSETS WTD AVERAGE WTD AVERAGE CURRENT LIBOR
OUTSTANDING ASSETS DURING QUARTER YIELD DURING QUARTER YIELD RATE
----------- --------------------- -------------------- ----- ----
3/31/01 92,982 56,527 19.92% 15.87% 5.75%
Originations/Accretion* 60,651
Redemptions/Amortization (55,802)
---------------
6/30/01 97,832 70,607 15.04% 13.65% 4.52%
Originations/Accretion* 28,457
Preferred Equity 53,500
Redemptions/Amortization (21,888)
---------------
9/30/01 157,901 114,248 16.50% 14.88% 3.73%
Originations/Accretion* 30,468
Preferred Equity -
Redemptions/Amortization -
---------------
12/31/01 188,370 178,248 12.86% 12.72% 1.89%
Originations/Accretion* 860
Preferred Equity
Redemptions/Amortization (110)
---------------
3/31/2002** 189,120 188,644 12.63% 12.82%*** 1.88%
* Accretion includes original issue discounts and compounding investment
income.
** At quarter end $116mm of assets have fixed libor floors. The weighted
average floor libor is 4.19%.
*** Current yield is net of seller financing. Yield before seller financing
on the balance outstanding as of March 31, 2002 is 11.32%.
SUPPLEMENTAL PACKAGE INFORMATION 25 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
STRUCTURED FINANCE
($000'S OMITTED)
WTD AVERAGE CURRENT
TYPE OF INVESTMENT QUARTER END BALANCE SENIOR FINANCING EXPOSURE PSF YIELD DURING QUARTER YIELD
- ------------------ ------------------- ---------------- ------------ -------------------- -----
JUNIOR MORTGAGE PARTICIPATION $ 62,900 $253,277 $147 13.93% 14.21%
MEZZANINE DEBT $ 64,769 $237,000 $229 12.57% 13.02%
PREFERRED EQUITY $ 61,451 $251,500 $214 12.26% 12.26%
BALANCE AS OF 3/31/02 $ 189,120 $741,777 $197 12.63% 12.82%*
CURRENT MATURITY PROFILE
[CHART OF STRUCTURED FINANCE MATURITY PROFILE]
2002 2003 2004 2005 2006
---- ---- ---- ---- ----
Maturity 32,184 40,039 54,337 - 61,472
* Current yield is net of seller financing. Yield before seller financing on
the balance outstanding as of March 31, 2002 is 11.32%.
** Most investments are indexed to Libor and are prepayable at dates prior to
maturities subject in certain instances to look-outs, prepayment penalties,
or fees.
SUPPLEMENTAL PACKAGE INFORMATION 26 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
SELECTED PROPERTY DATA
RENTABLE % OF TOTAL
PROPERTIES SUBMARKET OWNERSHIP SQ. FEET SQ. FEET
- ---------- --------- --------- -------- --------
PROPERTIES 100% OWNED
"SAME STORE"
- -----------------------------------------------------------------------------------------------------------
673 First Avenue Grand Central South Leasehold Interest 422,000 4
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 37,000 1
292 Madison Avenue Grand Central South Fee Interest 187,000 2
17 Battery Place - North World Trade/Battery Fee Interest 419,000 4
---------- --------
SUBTOTAL / WEIGHTED
AVERAGE 6,012,000 60
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
---------- --------
SUBTOTAL / WEIGHTED AVERAGE 181,000 2
TOTAL/WEIGHTED AVERAGE PROPERTIES 100% OWNED 6,898,000 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 - 55% Penn Station Fee Interest 670,000 7
469 Seventh Avenue - 35% Penn Station Fee Interest 253,000 3
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 10,036,000 100
GRAND TOTAL - SLG SHARE OF ANNUALIZED RENT
OCCUPANCY ANNUALIZED RENT
------------------------------------------------------- ANNUALIZED --------------- TOTAL
PROPERTIES MAR-02 DEC-01 SEP-01 JUN-01 MAR-01 RENT ($'S) 100% SLG TENANTS
- ---------- ------ ------ ------ ------ ------ ---------- -------
PROPERTIES 100% OWNED
"SAME STORE"
- -----------------------------------------------------------------------------------------------------------------------------------
673 First Avenue 99.8 99.8 99.9 99.8 100.0 12,441,314 6 5 14
470 Park Avenue South 98.8 99.4 99.4 99.4 99.0 7,181,828 4 3 25
70 W. 36th Street 99.2 98.5 96.3 96.3 96.0 3,848,160 2 2 30
1414 Avenue of the Americas 97.6 96.2 97.6 97.6 97.0 3,931,066 2 2 27
1372 Broadway 97.2 99.3 100.0 99.3 99.0 13,576,496 7 6 23
1140 A of A 95.5 95.5 100.0 100.0 100.0 6,928,454 4 3 24
50 W. 23rd Street 97.2 99.2 99.2 99.2 99.0 7,162,215 4 3 15
1466 Broadway 84.9 88.9 81.2 80.9 83.0 9,550,996 5 4 93
420 Lexington Ave (Graybar) 94.0 94.8 97.1 99.4 99.0 42,141,224 22 17 236
440 Ninth Avenue 86.7 91.1 91.1 98.8 98.0 8,132,201 4 3 13
711 Third Avenue 100.0 100.0 100.0 100.0 100.0 18,303,485 9 8 21
555 West 57th 100.0 100.0 99.9 100.0 100.0 18,850,414 10 8 23
286 Madison Avenue 97.9 100.0 98.7 100.0 98.0 3,204,886 2 1 40
290 Madison Avenue 100.0 100.0 100.0 100.0 100.0 1,309,932 1 1 4
292 Madison Avenue 98.3 100.0 100.0 100.0 100.0 6,079,289 3 2 16
17 Battery Place - North 100.0 100.0 100.0 100.0 100.0 8,054,724 4 3 7
----- ----- ----- ----- ----- ---------- ----- ----- -----
SUBTOTAL / WEIGHTED
AVERAGE 96.6 97.5 97.8 98.6 98.5 170,696,684 87 70 611
2001 ACQUISITIONS
- -----------------------------------------------------------------------------------------------------------------------------------
317 Madison 94.0 94.6 95.7 95.7 n/a 11,998,076 6 5 103
1370 Broadway 98.0 97.3 99.0 99.4 99.0 6,645,725 3 3 28
----- ----- ----- ----- ----- ---------- ----- ----- -----
SUBTOTAL / WEIGHTED
AVERAGE 95.4 95.6 96.9 97.0 99.0 18,643,801 10 8 131
2001 ADJUSTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
110 East 42nd Street 99.8 99.9 99.9 99.9 100.0 5,873,272 3 2 28
----- ----- ----- ----- ----- ---------- ----- ----- -----
SUBTOTAL / WEIGHTED
AVERAGE 99.8 99.9 99.9 99.9 100.0 5,873,272 3 2 35
TOTAL/WEIGHTED AVERAGE
PROPERTIES 100% OWNED 96.6 97.4 97.7 98.5 98.0 195,213,757 100 80 777
PROPERTIES 100% OWNED
UNCONSOLIDATED
- -----------------------------------------------------------------------------------------------------------------------------------
180 Madison Avenue - 50% 89.7 92.8 89.5 89.5 89.0 6,138,345 1 51
1 Park Avenue - 55% 98.3 98.3 97.7 97.0 97.0 31,517,457 7 17
1250 Broadway - 55% 99.5 99.5 99.5 99.5 99.6 17,688,525 4 27
469 Seventh Avenue - 35% 96.8 96.8 96.1 90.0 90.0 6,558,510 1 21
100 Park Avenue - 50% 100.0 100.0 97.2 100.0 100.0 28,580,492 6 37
321 West 44th Street - 35% 97.4 97.2 97.5 95.5 96.0 4,263,448 1 25
----- ----- ----- ----- ----- ---------- ----- ----- -----
SUBTOTAL / WEIGHTED AVERAGE 98.1 98.4 97.1 97.0 97.0 94,746,777 20 178
GRAND TOTAL/WEIGHTED AVERAGE 97.0 97.7 97.5 98.0 97.7 289,960,534 955
GRAND TOTAL - SLG SHARE OF
ANNUALIZED RENT 243,389,432 100
(1) Including Ownership of 50% in Building Fee
SUPPLEMENTAL PACKAGE INFORMATION 27 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
LARGEST TENANTS BY SQUARE FEET LEASED
WHOLLY OWNED PORTFOLIO + ALLOCATED JV PROPERTIES
TOTAL
LEASE LEASED
TENANT PROPERTY EXPIRATION SQUARE FEET
- ------ -------- ---------- -----------
- ------------------------------------------------------------------------------------------------------------------------
The City of New York 17 Battery Place 2007 & 2012 325,664
BMW of Manhattan, Inc. 555 West 57th Street 2012 227,782
Visting Nurse Services 1250 Broadway 2002, 2006 & 2011 216,192
Philip Morris Managament Corp 100 Park Avenue 2007 175,887
J&W Seligman & Co., Inc. 100 Park Avenue 2009 168,390
City University of New York - CUNY 555 West 57th Street 2010, 2011, & 2015 171,732
Segal Company 1 Park Avenue 2009 157,944
Loews Corp 1 Park Avenue 2002 155,765
Metro North Commuter Railroad Co. 420 Lexington Avenue 2008 & 2016 134,687
St. Luke's Roosevelt Hospital 555 West 57th Street 2014 133,700
C.B.S., Inc. 555 West 57th Street 2003 & 2010 127,320
Ross Stores 1372 Broadway 2010 101,741
Ketchum, Inc. 711 Third Avenue 2015 100,876
CHF Industries 1 Park Avenue 2005 100,000
Coty Inc. 1 Park Avenue 2015 100,000
New York Presbyterian Hospital 555 West 57th Street & 2006 & 2009 99,650
673 First Avenue
Ann Taylor Inc. 1372 Broadway 2010 93,020
Crain Communications Inc. 711 Third Avenue 2009 90,531
Information Builders Inc 1250 Broadway 2003 88,571
Advanstar Communications 1 Park Avenue 2010 85,284
MCI INTERNATIONAL 17 Battery Place 2004 & 2006 83,751
& 100 Park Avenue
Parade Publications, Inc. 711 Third Avenue 2010 82,444
UNICEF 673 First Avenue 2003 & 2012 81,100
Kallir, Phillips, Ross Inc. 673 First Avenue 2004 80,000
Mt. Sinai Hospital 1 Park Avenue 2010 80,000
-------------
TOTAL 3,262,031
WHOLLY OWNED PORTFOLIO + ALLOCATED JV
PROPERTIES 10,036,000
% OF % OF
OWNED SLG SHARE OF SLG SHARE OF
ANNUALIZED PSF ANNUALIZED ANNUALIZED ANNUALIZED
TENANT RENT ($) ANNUALIZED RENT RENT($) RENT
- ------ -------- ---------- ---- ------- ----
- ---------------------------------------------------------------------------------------------------------------------------------
The City of New York $ 5,701,620 $17.51 2.0% $ 5,256,327 2.2%
BMW of Manhattan, Inc. $ 2,806,224 $12.32 1.0% $ 2,806,224 1.2%
Visting Nurse Services $ 5,442,900 $25.18 1.9% $ 2,993,595 1.2%
Philip Morris Managament Corp $ 6,213,236 $35.33 2.1% $ 3,100,405 1.3%
J&W Seligman & Co., Inc. $ 5,125,044 $30.44 1.8% $ 2,557,397 1.1%
City University of New York - CUNY $ 4,576,860 $26.65 1.6% $ 4,576,860 1.9%
Segal Company $ 5,508,612 $34.88 1.9% $ 3,029,737 1.2%
Loews Corp $ 6,910,344 $44.36 2.4% $ 3,800,689 1.6%
Metro North Commuter Railroad Co. $ 3,838,836 $28.50 1.3% $ 3,838,836 1.6%
St. Luke's Roosevelt Hospital $ 2,993,196 $22.39 1.0% $ 2,993,196 1.2%
C.B.S., Inc. $ 2,402,580 $18.87 0.8% $ 2,402,580 1.0%
Ross Stores $ 2,585,952 $25.42 0.9% $ 2,585,952 1.1%
Ketchum, Inc. $ 4,089,408 $40.54 1.4% $ 4,089,408 1.7%
CHF Industries $ 3,370,272 $33.70 1.2% $ 1,853,650 0.8%
Coty Inc. $ 3,542,028 $35.42 1.2% $ 1,948,115 0.8%
New York Presbyterian Hospital $ 2,570,928 $25.80 0.9% $ 2,570,928 1.1%
Ann Taylor Inc. $ 2,448,708 $26.32 0.8% $ 2,448,708 1.0%
Crain Communications Inc. $ 3,263,172 $36.04 1.1% $ 3,263,172 1.3%
Information Builders Inc $ 2,115,708 $23.89 0.7% $ 1,163,639 0.5%
Advanstar Communications $ 2,893,488 $33.93 1.0% $ 1,591,418 0.7%
MCI INTERNATIONAL $ 3,055,224 $36.48 1.1% $ 2,137,883 0.9%
Parade Publications, Inc. $ 1,978,656 $24.00 0.7% $ 1,978,656 0.8%
UNICEF $ 2,530,932 $31.21 0.9% $ 2,530,932 1.0%
Kallir, Phillips, Ross Inc. $ 2,351,364 $29.39 0.8% $ 2,351,364 1.0%
Mt. Sinai Hospital $ 2,904,960 $36.31 1.0% $ 1,597,728 0.7%
------------ -------- ------- ------------- -----
TOTAL $ 91,220,252 $27.96 31.5% $ 69,467,399 28.5%
WHOLLY OWNED PORTFOLIO + ALLOCATED JV
PROPERTIES $289,960,534 $28.89 $243,389,432
SUPPLEMENTAL PACKAGE INFORMATION 28 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
FIRST QUARTER 2002 - LEASING ACTIVITY
AVAILABLE SPACE
ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF RENTABLE SF RENT/RENTABLE SF*($'S)
- ------------- ---------------- ----------- --------- ----------- ----------------------
VACANCY AT 12/31/01 240,431
ACQUIRED VACANCIES
- ----------------------------------------------------------------------------------------------------------------------------
EXPIRING SPACE
- ----------------------------------------------------------------------------------------------------------------------------
Office
317 Madison Avenue 4 7,205 7,495 28.66
1370 Broadway 4 18,591 19,218 29.53
180 Madison Avenue 4 13,644 13,644 26.65
286 Madison Avenue 5 9,460 10,916 26.36
1414 6th Avenue 3 6,301 6,301 39.11
470 Park Ave South 3 16,096 21,570 28.78
110 East 42nd Street 1 2,335 3,354 36.00
1466 Broadway 6 5,572 6,592 37.35
420 Lexington Avenue 7 8,809 10,908 32.97
----------- -------------- -------------- -------------
TOTAL/WEIGHTED AVERAGE 37 88,013 99,998 30.27
Retail
420 Lexington Avenue 1 1,594 1,594 130.80
----------- -------------- -------------- -------------
TOTAL/WEIGHTED AVERAGE 1 1,594 1,594 130.80
MOVE OUTS
- ----------------------------------------------------------------------------------------------------------------------------
Office
317 Madison Avenue 1 9,100 9,100 28.84
180 Madiosn Avenue 1 4,711 4,711 45.00
1140 Sixth Avenue 1 3,229 4,686 31.65
1372 Broadway 1 8,749 10,959 27.36
50 West 23rd Street 1 8,306 11,865 32.96
440 Ninth Avenue 2 19,350 22,350 31.00
1466 Broadway 3 4,156 5,087 37.40
420 Lexington Avenue 7 16,915 20,236 39.88
----------- -------------- -------------- -------------
TOTAL/WEIGHTED AVERAGE 17 74,516 88,994 33.75
Retail
440 Ninth Avenue 2 3,713 4,285 36.97
----------- -------------- -------------- -------------
TOTAL/WEIGHTED AVERAGE 2 3,713 4,285 57.53
EVICTED TENANTS
- ----------------------------------------------------------------------------------------------------------------------------
Office
1466 Broadway 1 1,138 1,540 40.00
420 Lexington Avenue 1 2,807 2,807 50.74
----------- -------------- -------------- -------------
TOTAL/WEIGHTED AVERAGE 2 3,945 4,347 46.94
Retail
292 Madison Avenue 1 3,180 3,180 36.49
1372 Broadway 2 2,500 2,500 90.02
----------- -------------- -------------- -------------
TOTAL/WEIGHTED AVERAGE 3 5,680 5,680 60.05
RELOCATING TENANTS
- ----------------------------------------------------------------------------------------------------------------------------
Office
1466 Broadway 5 5,812 6,306 35.11
420 Lexington Avenue 4 7,714 9,586 43.44
----------- -------------- -------------- -------------
TOTAL/WEIGHTED AVERAGE 9 13,526 15,892 40.13
AVAILABLE SPACE
- ----------------------------------------------------------------------------------------------------------------------------
Office 65 180,000 209,231 32.14
Retail 6 10,987 11,559 61.25
----------- -------------- -------------- -------------
TOTAL 71 190,987 220,790 34.34
AVAILABLE SPACE 431,418
* Escalated Rent is calculated as Total Annual Income less Electric Charges.
SUPPLEMENTAL PACKAGE INFORMATION 29 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
FIRST QUARTER - 2002 LEASING ACTIVITY
LEASED SPACE
NEW CASH RENT / PREV. ESCALATED RENT/
ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF RENTABLE SF RENTABLE SF RENTABLE SF
- -------------- ---------------- ----------- --------- ----------- ----------- -----------
AVAILABLE SPACE AS 431,418
3/31/02
RENEWING TENANTS
- ------------------------------------------------------------------------------------------------------------------------------
Office
317 Madison Avenue 3 6,423 7,499 35.95 27.26
1370 Broadway 2 2,752 3,554 36.00 23.16
286 Madison Avenue 2 5,328 7,230 30.92 95.61
1414 6th Avenue 1 2,351 2,351 40.00 38.46
1466 Broadway 1 195 217 49.77 49.77
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 9 17,049 20,851 34.81 25.33
Storage
286 Madison Avenue 1 350 505 25.00 25.00
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 1 350 505 25.00 17.33
RELOCATING TENANTS
- ------------------------------------------------------------------------------------------------------------------------------
Office
1466 Broadway 4 4,184 5,789 39.06 29.92
420 Lexington Avenue 4 6,698 9,265 46.06 36.41
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 8 10,882 15,054 43.37 33.91
EXPANSION TENANTS
- ------------------------------------------------------------------------------------------------------------------------------
Office 0 - - - -
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 0 - - - -
NEW TENANTS REPLACING OLD TENANTS
- ------------------------------------------------------------------------------------------------------------------------------
Office
317 Madison Avenue 1 1,791 2,558 41.00 22.50
1370 Broadway 2 15,744 20,907 30.48 18.09
180 Madison Avenue 1 3,641 5,354 37.00 40.00
286 Madison Avenue 1 1,200 1,714 40.94 23.00
1414 6th Avenue 1 5,488 7,149 35.00 35.00
70 West 36th Street 1 1,095 1,560 33.00 22.61
470 Park Ave South 2 14,608 19,470 42.50 29.31
1140 Sixth Avenue 1 3,229 4,686 38.00 31.65
110 East 42nd Street 1 2,335 3,354 42.00 36.00
440 Ninth Avenue 1 8,040 8,040 32.00 31.00
1466 Broadway 7 5,780 7,394 39.18 34.28
420 Lexington Avenue 11 19,551 26,963 39.12 40.12
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 30 82,502 109,149 37.20 31.14
Retail
50 West 23rd Street 1 1,551 1,551 88.97 15.45
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 1 1,551 1,551 88.97 15.45
TOTAL/WEIGHTED AVERAGE 49 112,334 147,110 38.00 30.39
T.I / FREE RENT
ACTIVITY TYPE BUILDING ADDRESS RENTABLE SF # OF MONTHS
- ------------- ---------------- ----------- -----------
AVAILABLE SPACE AS
3/31/02
RENEWING TENANTS
- ------------------------------------------------------------------------
Office
317 Madison Avenue - -
1370 Broadway - -
286 Madison Avenue 1.58 2.0
1414 6th Avenue - -
1466 Broadway - -
----------- -----------
TOTAL/WEIGHTED AVERAGE - 0.3
Storage
286 Madison Avenue - -
----------- -----------
TOTAL/WEIGHTED AVERAGE - -
RELOCATING TENANTS
- ------------------------------------------------------------------------
Office
1466 Broadway 5.06 4.0
420 Lexington Avenue 6.24 2.0
----------- -----------
TOTAL/WEIGHTED AVERAGE 5.78 0.7
EXPANSION TENANTS
- ------------------------------------------------------------------------
Office - -
----------- -----------
TOTAL/WEIGHTED AVERAGE - -
NEW TENANTS REPLACING OLD TENANTS
- ------------------------------------------------------------------------
Office
317 Madison Avenue 17.17 2.0
1370 Broadway 23.18 6.0
180 Madison Avenue 6.50 4.0
286 Madison Avenue 10.35 -
1414 6th Avenue 25.00 -
70 West 36th Street 40.00 2.0
470 Park Ave South 35.00 -
1140 Sixth Avenue - -
110 East 42nd Street 4.32 -
440 Ninth Avenue - -
1466 Broadway 3.33 4.0
420 Lexington Avenue 6.53 3.5
----------- -----------
TOTAL/WEIGHTED AVERAGE 15.75 0.7
Retail
50 West 23rd Street - 4
----------- -----------
TOTAL/WEIGHTED AVERAGE - 4
TOTAL/WEIGHTED AVERAGE 12.28 0.6
SUPPLEMENTAL PACKAGE INFORMATION 30 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
FIRST QUARTER - 2002 LEASING ACTIVITY
LEASED SPACE
NEW CASH RENT / PREV. ESCALATED RENT/
ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF RENTABLE SF RENTABLE SF RENTABLE SF
- -------------- ---------------- ----------- --------- ----------- -------------- --------------------
NEW TENANTS REPLACING
VACANCIES
- ---------------------------------------------------------------------------------------------------------------------------
Office
317 Madison Avenue 2 5,264 7,895 42.00 -
180 Madison Avenue 1 1,779 2,616 37.00 -
321 West 44th Street 1 557 799 32.00 -
1466 Broadway 4 5,217 6,617 40.70 -
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 8 12,817 17,927 40.35 -
Retail
180 Madison Avenue 1 2,304 2,322 58.65 -
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 1 2,304 2,322 58.65 -
Storage
317 Madison 1 41 64 20.00
1 Park Avenue 1 422 631 24.00
420 Lexington Avenue 2 521 744 25.20 -
----------- --------- ----------- --------------- ---------------------
TOTAL/WEIGHTED AVERAGE 4 984 1,439 24.44 -
LEASED SPACE
- -----------------------------------------------------------------------------------------------------------------------------
OFFICE 55 123,250 162,981 37.81 30.59
RETAIL 2 3,855 3,873 70.79 15.45
STORAGE 5 1,334 1,944 24.59 17.33
----------- --------- ----------- --------------- ---------------------
TOTAL 62 128,439 168,798 38.42 29.63
SOLD VACANCIES
SUB-TOTAL AVAILABLE SPACE @ 3/31/02 302,979
HOLDOVER TENANTS
- ---------------------------------------------------------------------------------------------------------------------------
1370 Broadway 1 1,839 1,839 28.71 28.71
180 Madison Avenue 2 2,317 2,317 28.94 28.94
1466 Broadway 5 4,840 5,502 36.62 36.62
420 Lexington Avenue 3 1,503 1,532 30.66 30.66
--------- ----------- --------------- ---------------------
11 10,499 11,190 32.92 32.92
TOTAL AVAILABLE SPACE @ 3/31/02 292,480
T.I / FREE RENT
ACTIVITY TYPE BUILDING ADDRESS RENTABLE SF # OF MONTHS
- ------------- ---------------- ----------- -----------
NEW TENANTS REPLACING
VACANCIES
- -------------------------------------------------------------------------
Office
317 Madison Avenue 26.74 5.0
180 Madison Avenue 0.20 2.0
321 West 44th Street 42.00 -
1466 Broadway 20.72 5.0
----------- -----------
TOTAL/WEIGHTED AVERAGE 21.33 1.5
Retail
180 Madison Avenue - 4.0
----------- -----------
TOTAL/WEIGHTED AVERAGE - 4.0
Storage
317 Madison - -
1 Park Avenue - -
420 Lexington Avenue - -
----------- -----------
TOTAL/WEIGHTED AVERAGE - -
LEASED SPACE
- -------------------------------------------------------------------------
OFFICE 13.43 1.0
RETAIL - 4.0
STORAGE - -
----------- -----------
TOTAL 12.96 0.8
SOLD VACANCIES
SUB-TOTAL AVAILABLE SPACE @ 3/31/02
HOLDOVER TENANTS
- -------------------------------------------------------------------------
1370 Broadway - -
180 Madison Avenue - -
1466 Broadway - -
420 Lexington Avenue - -
----------- -----------
- -
TOTAL AVAILABLE SPACE @ 3/31/02
SUPPLEMENTAL PACKAGE INFORMATION 31 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
FIRST QUARTER - 2002 LEASING ACTIVITY
LEASED SPACE
NEW CASH RENT / PREV. ESCALATED RENT/
ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF RENTABLE SF RENTABLE SF RENTABLE SF
- -------------- ---------------- ----------- --------- ----------- -------------- -----------------------
EARLY RENEWALS
- ----------------------------------------------------------------------------------------------------------------------------
Office 317 Madison Avenue 1 894 1,310 38.00 24.83
286 Madison Avenue 1 1,241 1,773 35.00 30.75
292 Madison Avenue 1 2,649 3,440 32.35 31.50
70 West 36th Street 1 1,105 1,616 19.00 19.00
110 East 42nd Street 1 757 1,000 40.00 35.00
321 West 44th Street 2 22,130 29,796 30.00 15.81
420 Lexington Avenue 5 5,174 6,403 40.49 24.35
----------- --------- ----------- --------------- ---------------------
12 33,950 45,338 31.92 19.41
Storage
321 West 44th Street 1 955 1,009 15.00 5.51
----------- --------- ----------- --------------- ---------------------
1 955 1,009 15.00 5.51
RENEWALS
- -----------------------------------------------------------------------------------------------------------------------------
Expired/Renewed Office 9 17,049 20,851 34.81 25.33
Expired/Renewed Storage 1 955 1,009 15.00 5.51
Early Renewals Office 12 33,950 45,338 31.92 19.41
----------- --------- ----------- --------------- ---------------------
TOTAL 22 51,954 67,198 32.56 21.04
T.I / FREE RENT
ACTIVITY TYPE BUILDING ADDRESS RENTABLE SF # OF MONTHS
- ------------- ---------------- ----------- -----------
EARLY RENEWALS
- -------------------------------------------------------------------------
Office 317 Madison Avenue - -
286 Madison Avenue - -
292 Madison Avenue - -
70 West 36th Street - -
110 East 42nd Street - 1.0
321 West 44th Street 38.00 12.0
420 Lexington Avenue 0.66 -
----------- -----------
25.07 1.1
Storage
321 West 44th Street - -
----------- -----------
- -
RENEWALS
- -------------------------------------------------------------------------
Expired/Renewed Office - 0.3
Expired/Renewed Storage - -
Early Renewals Office 25.07 1.10
----------- -----------
TOTAL 16.91 -
* Annual Base Rent
** Escalated Rent is calculated as Total Annual Income less Electric Charges.
SUPPLEMENTAL PACKAGE INFORMATION 32 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
ANNUAL LEASE EXPIRATIONS
CONSOLIDATED PROPERTIES
YEAR OF LEASE NUMBER OF SQUARE FOOTAGE OF PERCENTAGE OF TOTAL ANNUALIZED RENT OF
EXPIRATION EXPIRING LEASES** EXPIRING LEASES LEASED SQ. FT. EXPIRING LEASES ($'S)
-----------------------------------------------------------------------------------------
In 1st Quarter 2002 * 17 30,566 0.45% $ 1,182,304
In 2nd Quarter 2002 30 114,577 1.70% $ 2,879,442
In 3rd Quarter 2002 29 79,936 1.19% $ 2,141,652
In 4th Quarter 2002 31 104,664 1.56% $ 4,483,377
-----------------------------------------------------------------------------------------
TOTAL 2002 107 329,743 4.91% $ 10,686,775
2003 125 568,192 8.45% $ 15,961,404
2004 134 621,382 9.24% $ 19,360,476
2005 108 596,101 8.87% $ 18,375,228
2006 71 513,234 7.64% $ 14,933,216
2007 52 269,136 4.00% $ 8,129,054
2008 42 393,929 5.86% $ 12,416,340
2009 38 571,152 8.50% $ 16,719,861
2010 44 1,067,812 15.89% $ 31,356,291
2011 23 296,394 4.41% $ 12,088,080
THEREAFTER 33 1,494,709 22.24% $ 35,187,032
-----------------------------------------------------------------------------------------
777 6,721,784 100.00% $ 195,213,757
=========================================================================================
ANNUALIZED RENT PER LEASED YEAR 2002 WEIGHTED
YEAR OF LEASE SQUARE FOOT OF EXPIRING AVERAGE ASKING RENT
EXPIRATION LEASES $/PSF *** $/PSF
---------------------------------------------------------
In 1st Quarter 2002 * $ 38.68 $ 37.26
In 2nd Quarter 2002 $ 25.13 $ 38.13
In 3rd Quarter 2002 $ 26.79 $ 42.03
In 4th Quarter 2002 $ 42.84 $ 40.56
---------------------------------------------------------
TOTAL 2002 $ 32.41 $ 39.77
2003 $ 28.09 $ 38.68
2004 $ 31.16 $ 36.69
2005 $ 30.83 $ 37.57
2006 $ 29.10 $ 37.34
2007 $ 30.20 $ 40.53
2008 $ 31.52 $ 37.28
2009 $ 29.27 $ 37.95
2010 $ 29.36 $ 38.38
2011 $ 40.78 $ 41.67
THEREAFTER $ 23.41 $ 35.48
---------------------------------------------------------
$ 29.04 $ 37.65
=========================================================
* Includes month to month holdover tenants that expired prior to 3/31/02
** Tenants may have multiple leases.
** Represents current in place annualized rent allocated by year of maturity.
SUPPLEMENTAL PACKAGE INFORMATION 33 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
ANNUAL LEASE EXPIRATIONS
JOINT VENTURE PROPERTIES
YEAR OF LEASE NUMBER OF EXPIRING SQUARE FOOTAGE OF PERCENTAGE OF TOTAL ANNUALIZED RENT OF
EXPIRATION LEASES** EXPIRING LEASES LEASED SQ. FT. EXPIRING LEASES ($'S)
------------------------------------------------------------------------------------------------
In 1st Quarter 2002 * 4 12,058 0.75% $ 97,440
In 2nd Quarter 2002 11 28,541 1.02% $ 742,452
In 3rd Quarter 2002 11 77,026 2.62% $ 1,687,356
In 4th Quarter 2002 7 231,274 7.77% $ 9,434,448
------------------------------------------------------------------------------------------------
TOTAL 2002 33 348,899 12.16% $ 11,961,696
2003 18 225,541 7.58% $ 5,670,612
2004 23 176,440 5.81% $ 5,548,651
2005 18 293,831 9.49% $ 8,900,928
2006 29 319,215 10.51% $ 8,876,604
2007 14 325,651 9.83% $ 10,108,848
2008 14 170,690 5.62% $ 4,918,044
2009 18 570,327 18.77% $ 18,095,196
2010 14 299,746 9.86% $ 10,662,948
2011 7 77,805 2.24% $ 2,605,512
THEREAFTER 12 243,392 8.13% $ 7,397,738
------------------------------------------------------------------------------------------------
200 3,051,537 100.00% $ 94,746,777
================================================================================================
ANNUALIZED RENT PER LEASED YEAR 2002 WEIGHTED
YEAR OF LEASE SQUARE FOOT OF EXPIRING AVERAGE ASKING RENT
EXPIRATION LEASES $/PSF *** $/PSF
------------------------------------------------
In 1st Quarter 2002 * $ 8.08 $ 40.00
In 2nd Quarter 2002 $ 26.01 $ 39.61
In 3rd Quarter 2002 $ 21.91 $ 35.34
In 4th Quarter 2002 $ 40.79 $ 43.67
------------------------------------------------
TOTAL 2002 $ 34.28 $ 41.37
2003 $ 25.14 $ 38.09
2004 $ 31.45 $ 42.16
2005 $ 30.29 $ 44.01
2006 $ 27.81 $ 39.86
2007 $ 31.04 $ 45.75
2008 $ 28.81 $ 42.13
2009 $ 31.73 $ 43.91
2010 $ 35.57 $ 44.70
2011 $ 33.49 $ 36.78
THEREAFTER $ 30.12 $ 41.57
------------------------------------------------
$ 31.05 $ 42.48
================================================
* Includes month to month holdover tenants that expired prior to 3/31/02
** Tenants may have multiple leases.
*** Represents in place annualized rent allocated by year of maturity.
SUPPLEMENTAL PACKAGE INFORMATION 34 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997
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 670,000
------------
2,541,000
% LEASED % LEASED ACQUISITION
AT ACQUISITION 3/31/2002 PRICE ($'S)
-------------- --------- -----------
1998 ACQUISITIONS
- ----------------------------------------------------------------------------
Mar-98 83 94 $ 78,000,000
Mar-98 87 90 $ 64,000,000
Mar-98 96 97 $ 17,000,000
May-98 79 100 $ 65,600,000
Jun-98 76 87 $ 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 $ 15,000,000
99 98
86 100
97 98
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 98 $ 50,500,000
Jan-01 97 98 $ 233,900,000
Jan-01 98 97 $ 45,700,000
Jun-01 95 94 $ 105,600,000
ACQUISITION OF JV INTEREST
Sep-01 98 100 $ 126,500,000
-------------
$ 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 $44mm).
(3) Current ownership interest is 55%. (From 9/1/01-10/31/01the company owned
99.8% of this property.)
SUPPLEMENTAL PACKAGE INFORMATION 35 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999
NET RENTABLE
PROPERTY TYPE OF OWNERSHIP SUBMARKET S.F.
-------- ----------------- --------- ----
2000 SALES
- -----------------------------------------------------------------------------------------------------------------------------------
Feb-00 29 West 35th Street Fee Structure Garment 78,000
Mar-00 36 West 44th Street Fee Structure Grand Central 178,000
May-00 321 West 44th Street - 35% JV Fee Structure Times Square 203,000
Nov-00 90 Broad Street Fee Structure Financial 339,000
Dec-00 17 Battery South Fee Structure Financial 392,000
---------
1,190,000
2001 SALES
- -----------------------------------------------------------------------------------------------------------------------------------
Jan-01 633 Third Ave Fee Structure Grand Central North 40,623
May-01 1 Park Ave - 45% JV Fee Structure Times Square 913,000
Jun-01 1412 Broadway Fee Structure Times Square South 389,000
Jul-01 110 E. 42nd Street Fee Structure Grand Central North 69,700
Sep-01 1250 Broadway (1) Fee Structure Penn Station 670,000
---------
2,082,323
SALES SALES
PRICE ($'S) PRICE ($'S/SF)
----------- --------------
2000 SALES
- ---------------------------------------------------------------
Feb-00 $ 11,700,000 $ 150
Mar-00 $ 31,500,000 $ 177
May-00 $ 28,400,000 $ 140
Nov-00 $ 60,000,000 $ 177
Dec-00 $ 53,000,000 $ 135
------------- -------
$ 184,600,000 $ 156
2001 SALES
- ---------------------------------------------------------------
Jan-01 $ 13,250,000 $ 326
May-01 $ 233,900,000 $ 256
Jun-01 $ 90,700,000 $ 233
Jul-01 $ 14,500,000 $ 208
Sep-01 $ 126,500,000 $ 189
------------- -------
$ 478,850,000 $ 242
(1) Company sold a 45% JV interest in the property at an implied $126.5mm sales
price.
SUPPLEMENTAL PACKAGE INFORMATION 36 FIRST QUARTER 2002
[SL GREEN REALTY CORP. LOGO]
SUPPLEMENTAL DEFINITIONS
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.
JUNIOR MORTGAGE PARTICIPATIONS are subordinate interests in first mortgages.
MEZZANINE DEBT LOANS are loans secured by ownership interests.
OPERATING EARNINGS PER SHARE reflects income before minority interests and gains
(losses) from dispositions of real estate and impairment reserves on assets held
for sale and operating properties less minority interests' share of income and
preferred stock dividends if anti-dilutive.
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.
PREFERRED EQUITY INVESTMENTS are equity investments entitled to preferential
returns that are senior to common equity.
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 in which SLG has a controlling interest (e.g.
consolidated joint ventures).
-37-
[SL GREEN REALTY CORP. LOGO]
CORPORATE GOVERNANCE
STEPHEN L. GREEN
Chairman of the Board and CEO
MARC HOLLIDAY
President and Chief Investment Officer
MICHAEL REID
Chief Operating Officer
TOM WIRTH
Chief Financial Officer
GERARD NOCERA
Director of Real Estate Operations
ANDREW S. LEVINE
General Counsel and Secretary
================================================================================
ANALYST COVERAGE
================================================================================
FIRM ANALYST PHONE EMAIL
- ---- ------- ----- -----
AG Edwards Dave Aubuchon (314) 955-5452 aubuchond@agedwards.com
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
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
ENDORSEMENT OF OR CONCURRENCE WITH SUCH INFORMATION, CONCLUSIONS OR
RECOMMENDATIONS.
-38-
