SEC Filing | SL Green Realty Corp.

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: October 23, 2002

SL GREEN REALTY CORP.
(Exact name of Registrant as specified in its Charter)

	Maryland (State of Incorporation)
1-13199 (Commission File Number)		13-3956775 (IRS Employer Id. Number)
420 Lexington Avenue New York, New York (Address of principal executive offices)		10170 (Zip Code)

(212) 594-2700
(Registrant's telephone number, including area code)

Item 7. Financial Statements and Exhibits

(c): Exhibits

99.1 Supplemental Package

Item 9. Regulation FD Disclosure

Following the issuance of a press release on October 21, 2002 announcing the Company's results for the third quarter ended September 30, 2002, the Company is also making available supplemental information regarding the Company's operations that is too voluminous for a press release. The Company is attaching this supplemental package as Exhibit 99.1 to this Current Report on Form 8-K. The press release for the third quarter was filed under a separate Form 8-K dated October 23, 2002.

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.

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.
		By:	/s/ THOMAS E. WIRTH Thomas E. Wirth Executive Vice President, Chief Financial Officer

Date: October 23, 2002

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Item 7. Financial Statements and Exhibits

Item 9. Regulation FD Disclosure

SIGNATURES

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SL Green Realty Corp.
Third Quarter 2002
Supplemental Data
September 30, 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 coering 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 and nine months ended September 30, 2002 that will subsequently be released on Form 10-Q to be filed on or before November 15, 2002.

TABLE OF CONTENTS

Highlights of Current Period Financial Performance
Unaudited Financial Statements
	Corporate Profile	4
	Financial Highlights	5-9
	Balance Sheets	11-12
	Statements of Operations	13-14
	Joint Venture Statements	15-16
	Statement of Stockholders' Equity	17
	Funds From Operations	18
Selected Financial Data		19-21
Summary of Debt and Ground Lease Arrangements		22-23
Mortgage Investments and Preferred Equity		24-25
Property Data
	Composition of Property Portfolio	26
	Top Tenants	27
	Leasing Activity Summary	28-31
	Lease Expiration Schedule	32-33
Summary of Acquisition/Disposition Activity		34-35
Supplemental Definitions		36
Corporate Information		37

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.

FINANCIAL HIGHLIGHTS
THIRD QUARTER 2002
UNAUDITED

EARNINGS PERFORMANCE

Third quarter Funds From Operations (FFO) were $30.2 million or $0.86 per share (diluted), 19.4% better than one year ago, when FFO was $23.6 million or $0.72 per share (diluted). The third quarter FFO per share results reflect the Company's five million common share issuance in July 2001 which primarily increased the weighted average dilutive shares outstanding from 36.1 million in 2001 to 37.8 million in 2002.

For the nine months ended September 30, 2002, results improved 11.6% as FFO before minority interest totaled $85.8 million, or $2.45 per share diluted, compared to $68.6 million, or $2.25 per share diluted for the same period in 2001.

The 2001 results include a $1.0 million charge, or $0.03 per share, for a one-time contribution to the Twin Towers Fund. In addition, in accordance with new accounting guidelines, the 2001 results were restated to reclassify a $0.3 million charge related to the early extinguishment of debt as an increase to interest expense.

The $6.6 million growth in third quarter FFO results from the following:

(1) $3.9 million increase to FFO from unconsolidated joint ventures primarily due to the acquisition of 1515 Broadway (May 2002) and the net acquisition of an incremental share in the interest in 1250 Broadway from 49.9% to 55.0% (November 2001).

(2) Consolidated GAAP NOI increased $2.3 million:

•: $0.3 million increase from the 2002 same store properties primarily due to an increase in GAAP revenue totaling $1.2 million, net of change in credit loss. The increase in revenue is attributable to (i) a $1.5 million increase from GAAP replacement rents, which were 48.0% higher than the previously fully escalated rents, were partially offset by higher tenant reserves and vacancies ($0.9 million) and (ii) increased escalation and reimbursement income ($0.1 million) primarily from operating expense recoveries. This increase was partially offset by a $1.1 million increase in operating costs.
•: $3.0 million increase from the equity in income from unconsolidated joint ventures (previously noted above, included in $3.9 million from unconsolidated joint ventures). The $3.0 million net income improvement excludes a $0.9 million improvement in FFO for increased depreciation.
•: $0.2 million decrease due to the partial sale of 110 East 42^nd Street.
•: $0.6 million decrease from non-same store property results, inclusive of 50 West 23^rd Street and e.Emerge.

(3) $1.9 million increase in investment and preferred equity income primarily due to the weighted-average asset balance increase from $114.2 million to $194.7 million due to increased net originations. The increase is partially offset by a decrease in the weighted average yield from 16.50% to 12.45% primarily due to lower LIBOR.

(4) MG&A decreased $1.0 million due to the contribution to the Twin Towers Fund in 2001.

(5) $0.6 million increase in other income primarily due to asset management fees earned on joint ventures ($0.7 million) and lease buy-out income ($0.2 million).

(6) $0.3 million decrease in interest expense associated with (i) reduced interest costs on floating rate debt ($0.9 million), (ii) reclassification if 2001 debt extinguishment ($0.3 million) and (iii) proceeds from the July 2001 common stock offering ($0.2 million). These reductions were partially offset by increased costs associated with new investment activity ($0.8 million), the costs associated with refinancings and amortization ($0.2 million), and increased costs for working capital reserves ($0.1 million).

QUARTERLY OPERATING RESULTS

Same Store

Same store cash NOI in the 2002 same store portfolio was unchanged at $24.6 million. Cash operating margins before ground rent decreased from 57.9% to 56.4%. GAAP NOI increased by $0.3 million over the prior year, and GAAP operating margins before ground rent decreased from 61.2% to 60.4%. Same store results were affected by a $1.1 million increase in operating costs and a $1.1 million increase in cash revenue.

The $1.1 million increase in same store operating expenses was due to:

1.: $0.5 million (8.1%) increase in real estate taxes due to higher assessed property values and an increase to the tax rate.
2.: $0.6 million (49.2%) increase in other operating expenses due primarily to (i) $0.4 million from management costs, professional fees primarily related to legal collection costs and (ii) advertising costs due to the increased vacancy.
3.: $0.1 million (2.7%) decrease in utility costs for electricity and reduced occupancy.

The $1.1 million increase in cash revenue was due to:

1.: An increase in cash rental revenue of $1.4 million resulting from higher replacement rents on approximately 460,000 square feet that were 39.0% greater than previously fully escalated rents. This increase was partially offset by increased vacancy and reserves ($0.4 million) as the same store portfolio occupancy decreased from 97.7% in 2001 to 96.9% in 2002.
2.: $0.1 million increase in escalation and reimbursement income due to passthrough of operating cost escalations.
3.: An increase of $0.2 million in cash revenue due to tenant rent steps partially offset by increased free rent.
4.: $0.2 million decrease in signage rent primarily due to 1666 Broadway.
5.: The electric recovery rate for the quarter was approximately 86.0%, which is slightly below the previous year.

Consolidated

The Company's consolidated third quarter EBITDA margins before ground rent improved to 74.9% compared to 65.9% for 2001. The EBITDA margins after ground rent improved to 69.3% as compared to 60.6% in the same period of the prior year.

These margin improvements are attributable to (i) $3.0 million increase in net income from joint ventures, (ii) $1.9 million increase in structured finance income, (iii) $0.6 million increase in other

income primarily due to management fees and lease buy-out income and (iv) $1.0 million decrease in MG&A expense.

QUARTERLY LEASING HIGHLIGHTS

Vacancy at June 30, 2002 was 337,022 useable square feet net of holdover tenants. During the quarter, 200,368 additional useable office square feet became available at an average escalated cash rent of $28.25 per rentable square foot. Space available before holdovers to lease during the quarter totaled 537,390 useable square feet, or 4.7% of the total portfolio.

During the third quarter, 47 leases were signed totaling 160,358 useable square feet. New office cash rents averaged $34.27 per rentable square foot. Replacement rents were 33.9% greater than rents on previously occupied space, which had a fully escalated cash rent averaging $25.60 per rentable square foot. The average office lease term was 8.6 years. Average office tenant concessions were 1.6 months of free rent and an allowance of $17.75 per rentable square foot. Including early renewals and excluding holdover tenants, the tenant renewal rate was 72.0% based on square feet expiring. 16 leases have expired comprising 29,825 useable square feet that are in a holdover status. This results in 347,207 useable square feet (net of holdovers) remaining available as of September 30, 2002.

The average lease term on the quarterly leasing activity was 8.6 years.

The Company signed 10 office leases for 107,935 useable square feet that were for early renewals. The early renewals for space were not scheduled to become available until after the fourth quarter of 2002. The Company was able to renew the current office tenants at an average cash rent of $31.69, representing an increase of 65.3% over the previously fully escalated rents of $19.17. The future fully-escalated rents for the early renewals at the time the current leases will roll are estimated to be $21.72 representing a 45.9% mark-to-market. The average lease term on the office early renewals was 9.4 years.

For the trailing twelve months, cash replacement rents were 38.1% above the previously escalated rents.

NEW ACTIVITY

50 West 23^rd Street

Due to the Company's intent to sell the property located at 50 West 23^rd Street, the property's assets and liabilities have been classified to assets and liabilities held for sale on the balance sheet at September 30, 2002. As a result, the Company's operating results have been restated to classify all of the property's income to discontinued operations for all periods presented.

Structured Finance Activity

After this activity, the structured finance portfolio, including preferred equity interests, totaled $194.7 million with a current yield of 12.40%, after seller financing.

At September 30, 2002, $102.0 million of structured finance assets had effective fixed LIBOR floors. The weighted average LIBOR floor was 4.05%.

CAPITALIZATION AND LIQUIDITY

FAD before first cycle leasing costs increased 5.2% from $0.55 per share (diluted) to $0.58 per share (diluted). The increase in FAD was due to the (i) higher FFO results ($6.6 million), (ii) reduced FAD adjustment from joint ventures ($2.1 million) primarily due to 1250 Broadway and One Park Avenue and (iii) increased straight-line credit loss reserve ($0.6 million). These were partially offset by (i) an increase in tenant improvement and leasing commissions ($6.9 million) primarily associated with higher

tenant concession packages, (ii) increased free and straight-line rent ($0.2 million) and (iii) lower recurring capex ($0.2 million).

The Company's dividend payout ratio was 51.5% of FFO and 58.3% of FAD before first cycle leasing costs.

During September, the Company declared a dividend distribution of $0.4425 per common share for the quarter ended September 30, 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 third quarter 2002, the common share annualized dividend yield was 5.8%. The Company also declared a dividend of $0.50 per share of Preferred Income Equity Redeemable Stock for shareholders of record as of September 30, 2002. Both dividends were paid on October 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). 50 West 23^rd Street has been classified as held for sale and has been removed from the 2002 same store pool. The 2002 same store pool includes the following wholly-owned properties:

2002 SAME STORE

673 First Avenue	1140 Avenue of the Americas	420 Lexington Avenue
470 Park Avenue South	1466 Broadway	70 West 36^th Street
555 West 57^th 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

FINANCIAL HIGHLIGHTS
Third Quarter
Unaudited

		September 30,
		2002		2001
Operational Information
Total Revenues (000's)		$63,186		$59,795
Funds from Operations
	FFO per share — diluted	$0.86		$0.72
	FFO Payout	51	%	54	%
Funds Available for Distribution
	FAD per share — diluted	$0.58		$0.55
	FAD Payout	76	%	70	%
Operating Earnings per share — diluted		$0.52		$0.39
Dividends per share		$0.4425		$0.3875
Weighted Average Shares Outstanding — Diluted (FFO)		37,811		36,072
Same-store Cash NOI		0	%	20	%
Capitalization Data (000's)
Total Assets		$1,467,202		$1,346,171
Total Consolidated Debt		$548,731		$484,131
Minority Interest		$44,941		$46,474
Preferred Stock		$111,599		$111,117
Quarter End Closing Price — SLG Common Stock		$30.74		$31.52
Total Market Capitalization		$2,081,572		$1,878,278
Ratios

Consolidated Debt to Total Market Capitalization		33.81	%	29.98	%
Combined Debt Allocated		46.42	%	39.80	%
Consolidated Fixed Charge		2.68		2.34
Combined Fixed Charge		2.21		2.02
Portfolio

Total Buildings
	Directly Owned	19		19
	Joint Ventures	6		6
		25		25
	Total SF	11,533,000		10,035,800
	End of Quarter Occupancy — Total	97.0	%	97.5	%
	End of Quarter Occupancy — 2002 Same Store	96.9	%	97.7	%

COMPARATIVE BALANCE SHEETS
Unaudited
(000's omitted)

Assets		9/30/02		9/30/01		+/-		6/30/02		+/-		3/31/02		+/-
Commercial real estate properties, at cost:
	Land & land interests	131,078		138,337		(7,259	)	138,337		(7,259	)	138,337		(7,259	)
	Buildings & improvements fee interest	675,499		679,821		(4,322	)	701,721		(26,222	)	699,610		(24,111	)
	Buildings & improvements leasehold	147,911		143,198		4,713		145,264		2,647		145,012		2,899
	Buildings & improvements under capital lease	12,208		12,208		—		12,208		—		12,208		—

		966,696		973,564		(6,868	)	997,530		(30,834	)	995,167		(28,471	)
Less accumulated depreciation		(119,056	)	(93,339	)	(25,717	)	(115,555	)	(3,501	)	(108,034	)	(11,022	)

		847,640		880,225		(32,585	)	881,975		(34,335	)	887,133		(39,493	)
Other Real Estate Investments:
	Investment in unconsolidated joint ventures	217,108		143,049		74,059		223,354		(6,246	)	124,958		92,150
	Mortgage loans receivable	127,293		96,411		30,882		127,814		(521	)	127,669		(376	)
	Preferred equity investments	67,416		61,491		5,925		67,434		(18	)	61,451		5,965
Assets held for sale		29,060		—		29,060		—		29,060		—		29,060
Cash and cash equivalents		25,555		5,991		19,564		20,486		5,069		12,429		13,126
Restricted cash:
	Tenant security	19,115		19,394		(279	)	18,974		141		18,714		401
	Escrows & other	13,423		17,710		(4,287	)	15,517		(2,094	)	18,412		(4,989	)
Tenant and other receivables, net of $5,860 reserve at 9/30/02		8,102		12,229		(4,127	)	8,619		(517	)	7,754		348
Related party receivables		4,832		1,883		2,949		3,515		1,317		3,417		1,415
Deferred rents receivable, net of reserve for tenant credit loss of $6,321 at 9/30/02		54,992		50,060		4,932		55,975		(983	)	53,816		1,176
Investment in and advances to affiliates		3,140		8,570		(5,430	)	2,949		191		2,811		329
Deferred costs, net		34,957		36,066		(1,109	)	34,571		386		34,416		541
Other assets		14,569		13,093		1,476		18,691		(4,122	)	15,005		(436	)

Total Assets		1,467,202		1,346,171		121,030		1,479,874		(12,672	)	1,367,985		99,217

COMPARATIVE BALANCE SHEETS
Unaudited
(000's omitted)

	9/30/02		9/30/01		+/-		6/30/02		+/-		3/31/02		+/-
Liabilities and Stockholders' Equity

Mortgage notes payable	374,800		411,393		(36,593	)	397,371		(22,571	)	408,186		(33,386	)
Revolving credit facilities	173,931		72,738		101,193		197,931		(24,000	)	86,931		87,000
Derivative Instruments-fair value	8,540		4,987		3,553		4,991		3,549		2,002		6,538
Accrued interest payable	1,801		1,935		(134	)	1,951		(150	)	1,617		184
Accounts payable and accrued expenses	32,893		20,827		1,206		27,259		5,634		24,386		8,507
Deferred compensation awards	671		1,838		(1,167	)	671		—		671		—
Deferred revenue	3,842		1,363		2,479		2,920		922		1,676		2,166
Capitalized lease obligations	15,895		15,505		390		15,802		93		15,644		251
Deferred land lease payable	14,466		13,926		540		14,406		60		14,246		220
Dividend and distributions payable	16,693		14,775		1,918		16,706		(13	)	16,596		97
Liabilities related to assets held for sale	22,545		—		22,545		—		22,545		—		22,545
Security deposits	19,420		18,903		517		19,261		160		19,019		401

Total Liabilities	685,497		578,190		107,307		699,269		(13,772	)	590,974		94,523
Minority interest (2,166 units outstanding) at 9/30/02	44,941		46,474		(1,533	)	45,644		(703	)	47,295		(2,354	)
8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, 4,600 outstanding	111,599		111,117		482		111,474		125		111,353		246
Stockholders' Equity

Common stock, $.01 par value 100,000 shares authorized, 30,376 issued and outstanding at 9/30/02	303		300		3		303		(0	)	301		2
Additional paid — in capital	591,668		582,874		8,794		590,197		1,471		585,509		6,159
Deferred compensation plans & officer loans	(5,987	)	(8,400	)	2,413		(6,165	)	178		(7,336	)	1,349
Accumulated other comprehensive loss	(8,279	)	(4,500	)	(3,779	)	(4,709	)	(3,570	)	(1,709	)	(6,570	)
Retained earnings	47,460		40,116		7,344		43,861		3,599		41,598		5,862

Total Stockholders' Equity	625,165		610,390		14,775		623,487		1,678		618,363		6,802

Total Liabilities and Stockholders' Equity	1,467,202		1,346,171		121,031		1,479,874		(12,672	)	1,367,985		99,217

COMPARATIVE STATEMENTS OF OPERATIONS
Unaudited
($000's omitted)

			Three Months Ended								Three Months Ended		Nine Months Ended
			Sep-02		Sep-01		+/-		%		Jun-02		Sep-02
Revenues

Rental revenue, net			46,055		44,704		1,351		3	%	44,903		135,038
	Free rent		1,483		877		606		69	%	1,695		4,714
	Amortization of free rent		(793	)	(718	)	(75	)	10	%	(925	)	(2,546	)

Net free rent			690		159		531		334	%	770		2,168
Straight-line rent			1,473		1,734		(261	)	- -15	%	1,566		4,833
Allowance for S/L tenant credit loss			(974	)	(361	)	(613	)	170	%	(529	)	(2,016	)
Escalation and reimbursement revenues			8,824		8,727		96		1	%	6,318		21,630
Signage rent			191		424		(233	)	-55	%	267		924
Preferred equity investment income			1,960		632		1,328		210	%	1,934		5,805
Investment income			3,871		3,304		567		17	%	3,828		11,420
Other income			1,095		472		623		132	%	1,334		3,402

		Total Revenues, net	63,186		59,795		3,391		6	%	60,391		183,204
Equity in income/(loss) from affiliates			21		(57	)	78		-137	%	307		245
Equity in income from unconsolidated joint ventures			5,784		2,751		3,033		110	%	3,998		13,113


Operating expenses			15,997		14,740		1,257		9	%	13,945		43,174
Ground rent			3,159		3,101		58		2	%	3,159		9,478
Real estate taxes			7,688		7,153		535		7	%	7,052		21,798
Marketing, general and administrative			3,160		4,115		(955	)	-23	%	3,357		9,719

		Total Operating Expenses	30,004		29,110		894		3	%	27,513		84,169
EBITDA			38,987		33,380		5,607		17	%	37,183		112,393
Interest			9,378		9,724		(346	)	- -4	%	9,130		27,235
Depreciation and amortization			9,795		8,792		1,003		11	%	9,502		28,648

Income Before Minority Interest and Items			19,814		14,864		4,950		33	%	18,551		56,510
Extraordinary loss—early debt extinguishment			—		—		—		0	%	—		—
Income from Discontinued Operations			789		786		3		0	%	700		2,034
Gain on sale of properties			—		647		(647	)	-100	%	—		—
Cumulative effect of accounting change			—		—		—		0	%	—		—
Minority interest—OP			(1,167	)	(950	)	(217	)	23	%	(1,153	)	(3,380	)

Net Income			19,436		15,347		4,089		27	%	18,098		55,164
Dividends on preferred shares			2,300		2,300		0		0	%	2,300		6,900
Preferred stock accretion			123		114		9		8	%	123		368

Net Income Available For Common Shares			17,013		12,933		4,080		32	%	15,675		47,896

Ratios

MG&A to Real Estate Revenue, net			5.62	%	7.43	%					6.30	%	5.98	%
MG&A to Total Revenue, net			5.00	%	6.88	%					5.56	%	5.31	%
Operating Expense to Real Estate Revenue, net			28.43	%	26.61	%					26.17	%	26.56	%
EBITDA to Real Estate Revenue, net			69.30	%	60.27	%					69.77	%	69.13	%
EBITDA before Ground Rent to Real Estate Revenue, net			74.91	%	65.86	%					75.70	%	74.96	%

COMPARATIVE STATEMENTS OF OPERATIONS

Unaudited
($000's omitted)

	Three Months Ended						Three Months Ended		Nine Months Ended
	Sep-02		Sep-01				Jun-02		Sep-02
Per share data:

Earnings per Share
Net income per share (basic)	0.56		0.45				0.52		1.53
Net income per share (diluted)	0.54		0.44				0.51		1.50
Operating Earnings
Net Income Available For Common Shares	17,013		12,933		32	%	15,675		47,896
Income from Discontinued Operations	(789	)	(786	)	0	%	(700	)	(2,034	)
Cumulative effect of accounting change	—		—		0	%	—		—
Gain on Sale	—		(647	)	-100	%	—		—

Operating Earnings-Basic	16,225		11,499		41	%	14,975		46,407
Operating Earnings Per Share—Basic	0.53		0.40		33	%	0.50		1.54
Operating Earnings Per Share—Diluted	0.52		0.39		33	%	0.49		1.51
Taxable Income
Net Income Available For Common Shares	17,013		12,933		32	%	15,675		47,896
Book/Tax Depreciation Adjustment	2,045		(251	)	-915	%	1,794		5,642
Book/Tax Gain Recognition Adjustment	0		1,393		-100	%	1,680		1,680
Other Operating Adjustments	(1,736	)	(2,584	)	-33	%	(4,351	)	(9,659	)
C-corp Earnings	(21	)	57		-137	%	(307	)	(243	)

Taxable Income	17,301		11,548		50	%	14,491		45,316
Dividend per share	0.4425		0.3875		14	%	0.4425		1.33
Estimated payout of taxable income	78	%	70	%	11	%	92	%	89	%
Basic weighted average common shares	30,357		28,511		6	%	30,200		30,185
Diluted weighted average common shares and common share equivalents outstanding	37,811		31,373		21	%	33,183		33,074

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.

JOINT VENTURE STATEMENTS
Balance sheet for unconsolidated joint ventures
Unaudited
(000's omitted)

	September 30, 2002					September 30, 2001
	Total Property		SLG Property Interest			Total Property		SLG Property Interest
Land & land interests	217,266		115,955			129,751		75,594
Buildings & improvements	901,573		480,104			547,460		321,754

	1,118,839		596,059			677,211		397,348
Less accumulated depreciation	(32,407	)	(16,859	)		(15,532	)	(10,082	)

Net Real Estate	1,086,432		579,200			661,679		387,266
Cash and cash equivalents	34,931		18,507			10,638		6,584
Restricted cash	28,934		15,500			23,433		15,792
Tenant receivables, net of $177 reserve	2,442		1,308			5,585		3,968
Deferred rents receivable, net of reserve for tenant credit loss of $662 at 9/30/02	11,144		5,751			5,600		3,559
Deferred costs, net	13,814		7,400			9,095		6,472
Other assets	8,760		4,674			4,681		2,788

Total Assets	1,186,456		632,340			720,712		426,429

Mortgage loan payable	742,926		396,513		references pages 18 & 21	445,000		263,648
Derivative Instruments—fair value	(258	)	(142	)		0		0
Accrued interest payable (1)	2,268		1,181			1,642		885
Accounts payable and accrued expenses	11,948		6,253			18,266		14,375
Security deposits	21,923		11,788			6,340		4,380
Contributed Capital (2)	407,649		216,747		references page 10	249,464		143,141

Total Liabilities and Equity	1,186,456		632,340			720,712		426,429

As of September 30, 2002 the Company has six joint venture interests representing a 50% interest in 180 Madison Avenue acquired in December 2000, a 55% interest in1250 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 55% interest in 1 Park Avenue contributed in June 2001, and a 55% interest in 1515 Broadway acquired in May 2002. 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 32.

(1): This analysis includes hedge instruments at fair value of $193K on 1250 Broadway and $57K on 1515 Broadway.
(2): This analysis excludes certain residual interests in the entity that held 90 Broad Street (sold November 2000).

JOINT VENTURE STATEMENTS
Statements of operations for unconsolidated joint ventures
Unaudited
(000's omitted)

			Three Months Ended September 30, 2002					Three Months Ended September 30, 2001
			Total Property		SLG Property Interest		SLG Subsidiary	Total Property		SLG Property Interest		SLG Subsidiary
Revenues

Rental Revenue, net			35,141		18,647			21,628		11,463
	Free rent		247		124			192		140
	Amortization of free rent		(85	)	(42	)		(71	)	(37	)

Net free rent			162		82			121		103
Straight-line rent			1,926		1,033			1,008		516
Allowance for S/L tenant credit loss			(365	)	(195	)		(185	)	(105	)
Escalation and reimbursement revenues			8,667		4,630			4,999		2,657
Investment income			147		78			174		93
Other income			394		216			24		12

		Total Revenues, net	46,072		24,491			27,585		14,738
Expenses

Operating expenses			12,326		6,553			6,827		3,577
Real estate taxes			6,835		3,630			4,264		2,269

		Total Operating Expenses	19,161		10,183			11,092		5,846
GAAP NOI			27,276		14,503			16,678		8,997
Cash NOI			25,188		13,388			15,548		8,378
Interest			9,341		4,789			7,159		3,733
Depreciation and amortization			7,005		3,735			4,279		2,408

Net Income			10,565		5,784		references page 12	5,054		2,752
Plus: Real Estate Depreciation			6,047		3,072		references page 17	3,903		2,225
Plus: Extraordinary Loss			—		—			—		—
Plus: Management & Leasing Fees			—		—		8	—		—		192

Funds From Operations			16,612		8,856			8,957		4,977
FAD Adjustments:

Plus: Non Real Estate Depreciation			958		519			376		183
Plus: 2% Allowance for S/L Tenant Credit Loss			365		195			185		91
Less: Free and S/L Rent			(2,088	)	(1,115	)		(1,129	)	(556	)
Less: Second Cycle Tenant Improvement,			(310	)	(117	)		(2,734	)	(2,092	)
Less: Second Cycle Leasing Commissions			(484	)	(256	)		(597	)	(442	)
Less: Recurring Capex			(175	)	(83	)		(322	)	(158	)


FAD Adjustment			(1,734	)	(856	)		(4,221	)	(2,973	)


Operating Expense to Real Estate Revenue, net			26.86	%	26.86	%		24.60	%	24.27	%
GAAP NOI to Real Estate Revenue, net			59.43	%	59.46	%		60.09	%	61.05	%
Cash NOI to Real Estate Revenue, net			54.88	%	54.89	%		56.02	%	56.85	%

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
($000's omitted)

	Common Stock	Additional Paid-In Capital		Retained Earnings / (Distributions In Excess of Earnings)		Deferred Compensation Plan / Officers' Loan		Accumulated Other Comprehensive Loss		TOTAL
Balance at December 31, 2000	246	428,698		31,166		(5,037	)	—		455,073
Net Income				63,001						63,001
Cumulative Effect of Accounting Change								(811	)	(811	)
Preferred Dividend and Accretion				(9,657	)					(9,657	)
Proceeds from common stock offering & revaluation of minority interest ($2,927)	50	144,558								144,608
Deferred compensation plan	1	4,122				(4,105	)			18
Exercise of employee stock options	3	5,283								5,286
Cash distributions declared ($1.605 per common share)				(44,826	)					(44,826	)
Redemption of operating partnership units		689								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	300	583,350		39,684		(7,515	)	(2,911	)	612,908
Net Income				55,164						55,164
Preferred Dividend and Accretion				(7,268	)					(7,268	)
Exercise of employee stock options	3	6,147								6,150
Cash distributions declared ($1.3275 per common share)				(40,120	)					(40,120	)
Comprehensive Income—Unrealized loss of derivative instruments								(5,368	)	(5,368	)
Redemption of operating partnership units		2,686								2,686
Deferred compensation plan		(515	)			534				19
Amortization of deferred compensation						994				994

Balance at September 30, 2002 (Unaudited)	303	591,668		47,460		(5,987	)	(8,279	)	625,165

RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION

	Common Stock		OP Units		Stock Options	Sub-total	Preferred Stock	Nine Months Diluted Shares
Balance at December 31, 2001	29,978,304		2,271,404		—	32,249,708	—	32,249,708
YTD share activity	397,830		(104,964	)		292,866		292,866

Balance at September 30, 2002—Basic	30,376,134		2,166,440		—	32,542,574	—	32,542,574
Dilution Factor	(191,799	)	57,748		665,197	531,146	4,698,900	5,230,046

Balance at September 30, 2002—Diluted	30,184,335		2,224,188		665,197	33,073,720	4,698,900	37,772,620

COMPARATIVE COMPUTATION OF FFO AND FAD
Unaudited
($000's omitted—except per share data)

		Three Months Ended Sept 30						Three Months Ended June 30,				Three Months Ended March 31,
		2002		2001		% Change		2002		% Change		2002		% Change
Funds from operations

Net Income before Minority Interests		19,814		14,864		33	%	18,551		7	%	18,144		9	%
Add:	Depreciation and Amortization	9,795		8,791		11	%	9,502		3	%	9,351		5	%
	FFO from Discontinued Operations	927		1,096		-15	%	947		-2	%	887		5	%
	FFO adjustment for Joint Ventures	3,072		2,225		38	%	2,713		13	%	1,881		63	%
Less:	Dividends on Preferred Shares	2,300		2,300		0	%	2,300		0	%	2,300		0	%
	Non Real Estate Depreciation/Amortization of Finance Costs	1,046		1,055		-1	%	1,056		-1	%	981		7	%

	Funds From Operations—Basic	30,262		23,621		28	%	28,357		7	%	26,982		12	%
	Funds From Operations—Basic per Share	0.93		0.77		21	%	0.87		6	%	0.84		11	%
Add:	Dividends on Preferred Shares	2,300		2,300		0	%	2,300		0	%	2,300		0	%

	Funds From Operations—Diluted	32,562		25,921		26	%	30,657		6	%	29,282		11	%
	Funds From Operations—Diluted per Share	0.86		0.72		19	%	0.81		6	%	0.78		11	%
Funds Available for Distribution

FFO (1)		32,562		25,921		26	%	30,657		6	%	29,282		11	%
Add:	Non Real Estate Depreciation	1,046		1,059		- -1	%	1,057		- -1	%	987		6	%
	2% Allowance for S/L Tenant Credit Loss	974		377		158	%	542		80	%	516		89	%
	Straight-line Ground Rent	60		60		0	%	160		-63	%	160		-63	%
	Non-cash Deferred Compensation	178		349		-49	%	637		-72	%	179		0	%
	FAD adjustment for Joint Ventures	(856	)	(2,922	)	-71	%	(2,234	)	-62	%	(850	)	1	%
Less:	Straight-line Rental Income	1,473		1,783		-17	%	1,601		-8	%	1,821		-19	%
	Free Rent—Occupied (Net of Amortization, incl. First Cycle)	690		138		400	%	784		-12	%	715		-3	%
	Amortization of Mortgage Investment Discount	97		177		-45	%	97		0	%	95		2	%
	Second Cycle Tenant Improvements	6,691		591		1032	%	1,429		368	%	3,603		86	%
	Second Cycle Leasing Commissions	2,711		1,858		46	%	757		258	%	848		220	%
	Recurring Building Improvements	232		431		-46	%	101		130	%	88		164	%

Funds Available for Distribution		22,070		19,866		11	%	26,050		-15	%	23,103		-4	%
	Diluted per Share	0.58		0.55		6	%	0.69		-15	%	0.62		-5	%
First Cycle Leasing Costs
	Tenant Improvement	—		7		-100	%	13		-100	%	78		-100	%
	Leasing Commissions	—		—		0	%	—		0	%	279		-100	%

Funds Available for Distribution after First Cycle Leasing Costs		22,070		19,859		11	%	26,037		-15	%	22,746		-3	%
Funds Available for Distribution per Diluted Weighted Average Unit and Common Share		0.58		0.55		5	%	0.69		- -15	%	0.60		- -4	%
Redevelopment Costs		2,245		4,147		- -46	%	1,207		86	%	2,329		- -4	%

Payout Ratio of Funds From Operations		51.38	%	53.92	%			54.68	%			56.82	%
Payout Ratio of Funds Available for Distribution Before First Cycle		75.81	%	70.36	%			64.35	%			71.85	%

(1): For the calculation of funds available for distribution, the FFO Diluted was used for 3Q01.

SELECTED FINANCIAL DATA
Capitalization Analysis
Unaudited
($000's omitted)

		September 30,
		2002		2001		June 30, 2002		March 31, 2002
Market Capitalization

Common Equity:
	Common Shares Outstanding	30,376		29,945		30,307		30,042
	OP Units Outstanding	2,166		2,278		2,213		2,271

	Total Common Equity (Shares and Units)	32,542		32,223		32,520		32,314
	Share Price (End of Period)	30.74		31.52		35.65		33.60

	Equity Market Value	1,000,329		1,015,669		1,159,338		1,085,745
Preferred Equity at Liquidation Value:		115,000		115,000		115,000		115,000
Real Estate Debt

	Property Level Mortgage Debt	395,800		411,393		397,371		408,186
	Company's portion of Joint Venture Mortgages	396,513		263,478		396,650		225,133
	Outstanding Balance on—Secured Credit Line	30,931		19,738		33,931		34,931
	Outstanding Balance on—Unsecured Credit Line	143,000		53,000		164,000		52,000

	Total Combined Debt	966,244		747,609		991,952		720,250
	Total Market Cap (Debt & Equity)	2,081,572		1,878,278		2,266,290		1,920,995
Lines of Credit Availability

Senior Unsecured Line of Credit Maximum Line Available		300,000		300,000		300,000		300,000
	Letters of Credit issued	5,000		5,000		5,000		30,000
	Outstanding Balance	143,000		53,000		164,000		52,000

	Net Line Availability	152,000		242,000		131,000		218,000

Secured Line of Credit
	Maximum Line Available	75,000		60,000		75,000		75,000
	Outstanding Balance	30,931		19,738		33,931		34,931

	Net Line Availability	44,069		40,262		41,069		40,069

	Total Availability under Lines of Credit	196,069		282,262		172,069		258,069

Ratio Analysis

Consolidated Basis
	Debt to Market Cap Ratio	33.81	%	29.98	%	31.84	%	29.20	%
	Debt to Gross Real Estate Book Ratio (1)	56.45	%	48.31	%	56.97	%	46.82	%
	Secured Real Estate Debt to Secured Assets Gross Book (1)	67.68	%	67.51	%	68.48	%	66.04	%
	Unsecured Debt to Unencumbered Assets-Gross Book Value (1)	39.29	%	15.67	%	42.44	%	14.03	%
	Secured Line of Credit to Structured Finance Assets (1)	15.89	%	12.50	%	26.58	%	27.36	%
Joint Ventures Allocated
	Combined Debt to Market Cap Ratio	46.42	%	39.80	%	43.77	%	37.49	%
	Debt to Gross Real Estate Book Ratio (1)	60.34	%	53.77	%	60.58	%	51.71	%
	Secured Debt to Secured Assets Gross Book (1)	67.13	%	67.38	%	67.50	%	47.58	%

(1): Excludes property under capital lease

SELECTED FINANCIAL DATA
Property NOI and Coverage Ratios
Unaudited
($000's omitted)

		Three Months Ended September 30,								Three Months Ended June 30,
		2002		2001		+/-		% Change		2002		+/-		% Change
Funds from operations		30,262		23,621		6,641		28	%	30,504		(242	)	1	%

Less:	Non - Building Revenue	9,986		6,354		3,632		57	%	12,084		(2,098	)	17	%
Plus:	2% Reserve for Tenant Credit Loss	975		377		598		159	%	542		433		- -80	%
	Interest Expense (incl. Capital Lease Int.)	9,776		10,117		(341	)	-3	%	9,519		257		-3	%
	Non Real Estate Depreciation	1,046		1,059		(13	)	-1	%	1,057		(11	)	1	%
	MG&A Expense	3,160		4,116		(956	)	-23	%	3,357		(197	)	6	%
	Preferred Dividend	2,300		2,300		0		0	%	2,300		(0	)	0	%

	GAAP NOI	37,533		35,236		2,297		7	%	35,196		2,337		-7	%
Cash adjustments

Less:	Free Rent (Net of Amortization)	765		138		627		454	%	880		(115	)	13	%
	Straightline Revenue Adjustment	2,495		1,783		712		40	%	2,409		86		-4	%
Plus:	Ground Lease Straight-line Adjustment	60		60		—		0	%	160		(100	)	63	%

	Cash NOI	34,333		33,374		959		3	%	32,069		2,264		-7	%
	Real Estate Revenue, net	58,996		57,886		1,110		2	%	55,528		3,468		-6	%
Operating margins

	GAAP NOI/Real Estate Revenue, net	63.62	%	60.87	%					63.38	%
	Cash NOI/Real Estate Revenue, net	58.20	%	57.66	%					57.37	%
	GAAP NOI before Ground Rent/Real Estate Revenue, net	68.97	%	66.23	%					69.07	%
	Cash NOI before Ground Rent/Real Estate Revenue, net	63.45	%	62.91	%					62.77	%
Components of debt and fixed charges

	Interest on Fixed Rate Loans	5,509		6,037		(528	)	-9	%	5,718		(209	)	4	%
	Interest on Floating Rate Loans	4,266		4,080		187		5	%	3,800		466		-12	%
	Fixed Amortization Principal Payments	1,402		1,196		206		17	%	1,643		(241	)	15	%

	Total Debt Service	11,177		11,313		(136	)	-1	%	11,161		16		0	%
	Payments under Ground Lease Arrangements	3,099		3,041		58		2	%	2,999		100		-3	%
	Preferred Stock Dividend	2,300		2,300		0		0	%	2,300		(0	)	0	%

	Total Fixed Charges	16,576		16,654		(78	)	0	%	16,460		116		-1	%

Adjusted EBITDA		44,436		39,003						42,822
Interest Coverage Ratio		4.55		3.86						4.50
Debt Service Coverage ratio		3.98		3.45						3.84
Fixed Charge Coverage ratio		2.68		2.34						2.60

SELECTED FINANCIAL DATA
2002 Same Store
Unaudited
($000's omitted)

		Three Months Ended September 30,								Three Months Ended June 30
		2002		2001		+/-		% Change		2002		+/-		% Change
Revenues

	Rental Revenue	41,728		40,105		1,623		4	%	40,857		871		2	%
	Credit Loss	(686	)	(326	)	(360	)	111	%	(482	)	(204	)	42	%
	Signage Rent	191		372		(181	)	-49	%	191		0		0	%
	Escalation & Reimbursement Revenues	7,195		7,053		142		2	%	5,191		2,004		39	%
	Investment & Other Income	262		665		(403	)	-61	%	574		(312	)	-54	%

	Total Revenues	48,690		47,869		821		2	%	46,331		2,359		5	%
Expenses

	Operating Expense	12,875		12,375		500		4	%	10,981		1,894		17	%
	Ground Rent	3,159		3,101		58		2	%	3,159		(0	)	0	%
	Real Estate Taxes	6,610		6,114		496		8	%	6,055		555		9	%

	Total Operating Expenses	22,644		21,589		1,055		5	%	20,195		2,449		12	%
	EBITDA	26,046		26,280		(234	)	- -1	%	26,136		(90	)	0	%
	Interest	6,129		6,469		(340	)	- -5	%	6,364		(235	)	- -4	%
	Depreciation & Amortization	7,364		6,684		680		10	%	7,147		217		3	%

	Income Before Minority Interest	12,553		13,127		(574	)	- -4	%	12,625		(72	)	- -1	%
Plus:	Real Estate Depreciation & Amortization	7,125		6,469		656		10	%	6,909		216		3	%

	FFO	19,678		19,596		82		0	%	19,534		144		1	%
Less:	Non-Building Revenue	233		444		(211	)	- -48	%	336		(103	)	- -31	%
Plus:	Reserve for Tenant Credit Loss	686		326		360		111	%	482		204		42	%
	Interest Expense	6,129		6,469		(340	)	-5	%	6,364		(235	)	-4	%
	Non Real Estate Depreciation	239		215		24		11	%	237		2		1	%

	GAAP NOI	26,499		26,162		337		1	%	26,281		218		1	%
Cash Adjustments

Less:	Free Rent (Net of Amortization)	671		178		493		276	%	612		59		10	%
	Straightline Revenue Adjustment	1,284		1,459		(175	)	-12	%	1,384		(100	)	-7	%
Plus:	Ground Lease Straight-line Adjustment	60		60		—		0	%	160		(100	)	- -63	%

	Cash NOI	24,604		24,585		19		0	%	24,445		159		1	%
Operating Margins

	GAAP NOI to Real Estate Revenue, net	53.92	%	54.79	%					56.54	%
	Cash NOI to Real Estate Revenue, net	50.07	%	51.49	%					52.59	%
	GAAP NOI before Ground Rent/Real Estate Revenue, net	60.35	%	61.28	%					63.34	%
	Cash NOI before Ground Rent/Real Estate Revenue, net	56.37	%	57.85	%					59.05	%

DEBT SUMMARY SCHEDULE
Unaudited
($000's ommitted)

			Principal O/S Outstanding 9/30/02	Coupon		Fixed Annual Payment	2002 Principal Repayment	Maturity Date	Due at Maturity	Earliest Contractual Prepayment Date
Fixed rate secured debt

Property
	673 First Avenue		6,529	9.00	%	5,459	3,301	12/13/03	2,000	Open
	50 West 23rd Street		21,000	7.33	%	1,539	—	8/1/07	19,234	Aug-01
	CIBC (against 1414 Ave. of Americas and 70 W. 36th St.)		25,776	7.90	%	2,402	336	5/1/09	12,196	Apr-03
	711 Third Avenue		48,546	8.13	%	4,383	373	9/10/05	47,247	Jun-04
	555 West 57th Street (Libor collar of 6.10% — 6.58% + 200bps)		68,423	8.10	%	5,618	676	11/4/04	66,959	Open
	420 Lexington Avenue		123,508	8.44	%	12,385	1,693	11/1/10	104,406	Open
	317 Madison (Libor Swap of 4.01% + 180bps)		65,000	5.81	%	3,829	—	8/20/04	65,000	Open
	875 Bridgeport Avenue, CT (1031 exchange asset)		14,840	8.32	%	1,273	37	5/10/25	5,466	Open

		Total Fixed Rate Secured Debt/Wtd Avg	373,622	7.78	%	36,887	6,416
Floating rate Debt

Secured floating rate debt
	Structured Finance Loan (Libor + 100bp)		22,178	2.81	%		—	11/1/02	22,178	Nov-02
	Secured Line of Credit (Libor + 150bps)		30,931	3.37	%		—	12/22/04	30,931	Open

		Total Floating Rate Secured Debt/Wtd Avg	53,109	3.14	%
Unsecured floating rate debt
	Senior Unsecured Line of Credit (Libor + 150 bps)		143,000	3.35	%		—	6/27/03	143,000	Open
		Total Floating Rate Unsecured Debt/Wtd Avg	143,000	3.35	%
Total Floating Rate Debt Outstanding			196,109	3.29	%
		Total Debt/Wtd Avg	569,731	6.24	%

Weighted Average Balance & Interest Rate			588,853	6.15	%

Summary of Joint Venture Debt

			Principal O/S
			Principal O/S					Fixed Annual Payment	2002 Principal Repayment
			Gross Principal	SLG Share		Coupon		Fixed Annual Payment	2002 Principal Repayment	Maturity Date	Due at Maturity	Earliest Contractual Prepayment Date
	180 Madison JV		31,793	15,865		7.81	%	2,765	278	12/1/05	30,778	Open
	1250 Broadway (Libor Swap of 4.03% + 250bp) (1)		85,000	46,750		6.53	%	5,551	—	10/1/04	85,000	Open
	1515 Broadway (Libor + 191 bps) (2)		335,000	184,250		4.05	%	—	—	5/14/04	184,250	Open
	321 W 44th JV (Libor + 250bps)		22,000	7,700		4.33	%	—	—	4/30/03	7,700	Open
	1 Park Avenue (Libor + 150 bps)		150,000	82,500		3.31	%	—	—	1/10/04	82,500	Open
	100 Park Avenue JV		119,134	59,448		8.00	%	10,617	883	9/1/10	107,488	Open

		Total Joint Venture Debt/Wtd Avg	742,928	396,513		4.94	%	18,932	1,161

Weighted Average Balance & Interest Rate with SLG JV debt			985,408	5.74	%

(1): Swap on 1250 mortgage executed on SLG portion only through January 11, 2005.
(2): Spread on 1515 is weighted for first mortgage and mezzanine pieces. In August 2002 a swap at a Libor of 2.29% was placed on $100mm of SL Green's share of debt.

SUMMARY OF GROUND LEASE ARRANGEMENTS
Consolidated Statement (REIT)
($000's omitted)

Property		2002 Scheduled Cash Payment	2003 Scheduled Cash Payment	2004 Scheduled Cash Payment	2005 Scheduled Cash Payment	Deferred Land Lease Obligations (1)	Year of Maturity
Operating Leases

673 First Avenue		3,010	3,010	3,010	3,108	12,901	2037
1140 Avenue of Americas (2)		348	348	348	348	—	2016	(3)
420 Lexington Avenue (2)		7,074	7,074	7,074	7,074	—	2008	(4)
711 Third Avenue (2) (5)		1,550	1,550	1,550	1,550	1,565	2032

	Total	11,982	11,982	11,982	12,080	14,466

Capitalized Lease

673 First Avenue		1,290	1,290	1,290	1,322	15,895	2037

(1): Per the balance sheet at September 30, 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.

STRUCTURED FINANCE
($000's omitted)

	Assets Outstanding		Wtd Average Assets during quarter	Wtd Average Yield during quarter		Current Yield		Libor Rate
9/30/01	157,901		114,248	16.50	%	14.88	%	3.73	%
Originations/Accretion (1)	30,468
Preferred Equity	—
Redemptions	—

12/31/01	188,370		178,248	12.86	%	12.72	%	2.09	%
Originations/Accretion (1)	860
Preferred Equity
Redemptions	(110	)

3/31/02	189,120		188,644	12.63	%	12.82	%	1.88	%
Originations/Accretion (1)	20,300
Preferred Equity	6,000
Redemptions	(20,172	)

6/30/02	195,248		175,907	12.65	%	12.67	%	1.86	%
Originations/Accretion (1)
Preferred Equity	—
Redemptions	(539	)

9/30/02	194,709		194,709	12.45	%²	12.40	%³	1.82	%⁴

(1): Accretion includes original issue discounts and compounding investment income.
(2): As of September 30, 2002, net of seller financing, the weighted yield is 11.36%.
(3): As of September 30, 2002, net of seller financing, the current yield is 11.31%.
(4): At quarter end $102mm of assets have fixed index rates. The weighted average base rate is 4.05%.

STRUCTURED FINANCE
($000's omitted)

Type of Investment		Quarter End Balance⁽¹⁾	Senior Financing	Exposure Psf	Wtd Average Yield during quarter		Current Yield
Junior Mortgage Participation		$42,649	$245,277	$126	13.88	%	13.50	%
Mezzanine Debt		$74,644	$267,600	$206	12.50	%	12.78	%
Preferred Equity		$77,416	$369,500	$181	13.08	%	13.09	%
	Balance as of 9/30/02	$194,709	$882,377	$179	12.45	%⁽²⁾	12.40	%⁽³⁾

Structured Finance Maturity Profile

(1): Most investments are indexed to Libor and are prepayable at dates prior to maturity subject to certain prepayment penalties or fees.
(2): As of September 30, 2002, net of seller financing, the weighted yield is 11.36%.
(3): As of September 30, 2002, net of seller financing, the current yield is 11.31%.

SELECTED PROPERTY DATA

							Leased						Annualized Rent
Properties					Rentable Sq. Feet	% of Total Sq. Feet	Leased					Annualized Rent ($'s)	Annualized Rent		Total Tenants
Properties		Submarket	Ownership		Rentable Sq. Feet	% of Total Sq. Feet	Sep-02	Jun-02	Mar-02	Dec-01	Sep-01	Annualized Rent ($'s)	100%	SLG	Total Tenants
PROPERTIES 100% OWNED
"Same Store"

673 First Avenue		Grand Central South	Leasehold Interest		422,000	4	99.8	99.8	99.8	99.8	99.9	13,186,509	6	5	15
470 Park Avenue South		Park Avenue South/ Flatiron	Fee Interest		260,000	2	99.3	99.3	98.8	99.4	99.4	7,710,093	4	3	25
70 W. 36th Street		Garment	Fee Interest		151,000	1	93.1	94.3	99.2	98.5	96.3	3,808,428	2	1	31
1414 Avenue of the Americas		Rockefeller Center	Fee Interest		111,000	1	96.5	97.6	97.6	96.2	97.6	4,231,343	2	1	26
1372 Broadway		Garment	Fee Interest		508,000	4	97.8	97.2	97.2	99.3	100.0	13,343,728	7	5	26
1140 Avenue of the Americas		Rockefeller Center	Leasehold Interest		191,000	2	95.5	95.5	95.5	95.5	100.0	7,183,965	4	3	24
1466 Broadway		Times Square	Fee Interest		289,000	3	86.2	84.4	84.9	88.9	81.2	9,231,236	5	3	96
420 Lexington Ave (Graybar)		Grand Central North	Operating Sublease		1,188,000	10	93.2	95.8	94.0	94.8	97.1	44,364,095	22	15	248
440 Ninth Avenue		Garment	Fee Interest		339,000	3	97.1	86.7	86.7	91.1	91.1	7,591,587	4	3	12
711 Third Avenue		Grand Central North	Operating Sublease	(1)	524,000	5	100.0	100.0	100.0	100.0	100.0	18,935,484	9	7	20
555 West 57th		Midtown West	Fee Interest		941,000	8	100.0	100.0	100.0	100.0	99.9	19,781,922	10	7	21
286 Madison Avenue		Grand Central South	Fee Interest		112,000	1	92.6	94.7	97.9	100.0	98.7	3,321,546	2	1	36
290 Madison Avenue		Grand Central South	Fee Interest		37,000	1	100.0	100.0	100.0	100.0	100.0	1,334,952	1	0	4
292 Madison Avenue		Grand Central South	Fee Interest		187,000	2	99.7	99.7	98.3	100.0	100.0	6,521,351	3	2	18
17 Battery Place—North		World Trade/ Battery	Fee Interest		419,000	4	100.0	100.0	100.0	100.0	100.0	9,607,437	5	3	7

	Subtotal/Weighted Average				5,679,000	50	96.9	96.8	96.5	97.4	97.7	170,153,676	83	58	609
2001 Acquisitions

317 Madison Avenue		Grand Central	Fee Interest		450,000	4	94.3	94.5	94.0	94.6	95.7	13,109,606	6	5	103
1370 Broadway		Garment	Fee Interest		255,000	2	92.3	92.3	98.0	97.3	99.0	7,238,265	4	3	27

	Subtotal/Weighted Average				705,000	6	93.6	93.7	95.4	95.6	96.9	20,347,871	10	8	130
Adjustments

50 W. 23rd Street		Chelsea	Fee Interest		333,000	3	97.2	97.2	97.2	99.2	99.2	7,863,541	4	3	16
110 East 42nd Street		Grand Central	Fee Interest		181,000	2	97.9	97.8	99.8	99.9	99.9	5,899,719	3	2	26

	Subtotal/Weighted Average				514,000	4	97.4	97.4	98.1	99.4	99.4	13,763,260	7	5	42
Total/Weighted Average Properties 100% Owned					6,898,000	60	96.6	96.5	96.6	97.4	97.7	204,264,807	100	71	781
PROPERTIES <100% OWNED Unconsolidated

180 Madison Avenue—50%		Grand Central South	Fee Interest		265,000	2	82.1	87.3	89.7	92.8	89.5	6,941,258	1	50
1 Park Avenue—55%		Grand Central South	Various Interests		913,000	8	98.6	98.4	98.3	98.3	97.7	32,919,493	6	18
1250 Broadway—55%		Penn Station	Fee Interest		670,000	6	99.3	99.3	99.5	99.5	99.5	19,245,914	4	27
100 Park Avenue—50%		Grand Central South	Fee Interest		834,000	7	100.0	100.0	100.0	100.0	97.2	29,787,247	5	38

1515 Broadway—55%		Times Square	Fee Interest	1,750,000	15	98.3	98.5				61,471,396	12	17
321 West 44th Street—35%		Times Square	Fee Interest	203,000	2	90.2	97.7	97.4	97.2	97.5	4,338,182	1	27

	Subtotal/Weighted Average			4,635,000	40	97.5	98.2	98.1	98.4	97.1	154,703,490	29	177

Grand Total/Weighted Average				11,533,000	100	97.0	97.2	97.0	97.7	97.5	358,968,297		958
Grand Total—SLG share of Annualized Rent											286,610,937	100

(1): Including Ownership of 50% in Building Fee

LARGEST TENANTS BY SQUARE FEET LEASED

Wholly Owned Portfolio + Allocated JV Properties

Tenant	Property	Lease Expiration	Total Leased Square Feet	Annualized Rent ($)		PSF Annualized		% of Annualized Rent		SLG Share of Annualized Rent($)		% of SLG Share of Annualized Rent
Viacom International, Inc.	1515 Broadway	2002, 2004, 2006, 2008, 2009, 2013	1,279,779	$	51,443,388	$	40.20	14.3	%	$	28,293,863	9.9	%
The City of New York	17 Battery Place	2012	325,664	$	5,701,920	$	17.51	1.6	%	$	5,701,920	2.0	%
Visting Nurse Services	1250 Broadway	2002, 2005, 2006 & 2011	254,323	$	7,019,184	$	27.60	2.0	%	$	3,860,551	1.3	%
BMW of Manhattan, Inc.	555 West 57th Street	2012	227,782	$	3,072,360	$	13.49	0.9	%	$	3,072,360	1.1	%
Philip Morris Managament Corp	100 Park Avenue	2007	175,887	$	6,553,824	$	37.26	1.8	%	$	3,270,358	1.1	%
City University of New York-CUNY	555 West 57th Street	2010, 2011, & 2015	171,732	$	4,681,716	$	27.26	1.3	%	$	4,681,716	1.6	%
J&W Seligman & Co., Inc.	100 Park Avenue	2009	168,390	$	5,306,280	$	31.51	1.5	%	$	2,647,834	0.9	%
C.B.S., Inc.	555 West 57th Street	2003 & 2010	165,214	$	3,341,724	$	20.23	0.9	%	$	3,341,724	1.2	%
Segal Company	1 Park Avenue	2009	157,944	$	5,548,140	$	35.13	1.5	%	$	3,051,477	1.1	%
Loews Corp	1 Park Avenue	2002	155,765	$	6,818,880	$	43.78	1.9	%	$	3,750,384	1.3	%
Metro North Commuter Railroad Co.	420 Lexington Avenue	2008 & 2016	134,687	$	3,928,716	$	29.17	1.1	%	$	3,928,716	1.4	%
St. Luke's Roosevelt Hospital	555 West 57th Street	2014	133,700	$	3,205,656	$	23.98	0.9	%	$	3,205,656	1.1	%
Minskoff/Nederlander JV (1)	1515 Broadway	2024	102,452	$	210,000	$	2.05	0.1	%	$	115,500	0.0	%
Ross Stores	1372 Broadway	2010	101,741	$	2,745,348	$	26.98	0.8	%	$	2,745,348	1.0	%
Ketchum, Inc.	711 Third Avenue	2015	100,876	$	4,218,456	$	41.82	1.2	%	$	4,218,456	1.5	%
CHF Industries	1 Park Avenue	2005	100,000	$	3,396,600	$	33.97	0.9	%	$	1,868,130	0.7	%
Coty Inc.	1 Park Avenue	2015	100,000	$	3,668,352	$	36.68	1.0	%	$	2,017,594	0.7	%
New York Presbyterian Hospital	555 West 57th Street & 673 First Avenue	2006 & 2009	99,650	$	2,723,268	$	27.33	0.8	%	$	2,723,268	1.0	%
MCI/Worldcom	17 Battery Place, 110 E 42nd St, & 100 Park Avenue	2004 & 2006	93,025	$	3,299,316	$	35.47	0.9	%	$	2,362,688	0.8	%
Ann Taylor Inc.	1372 Broadway	2010	93,020	$	2,672,472	$	28.73	0.7	%	$	2,672,472	0.9	%
Crain Communications Inc.	711 Third Avenue	2009	90,531	$	3,263,172	$	36.04	0.9	%	$	3,263,172	1.1	%
Information Builders Inc	1250 Broadway	2003	88,571	$	2,063,784	$	23.30	0.6	%	$	1,135,081	0.4	%
Advanstar Communications	1 Park Avenue	2010	85,284	$	2,915,352	$	34.18	0.8	%	$	1,603,444	0.6	%
Parade Publications, Inc.	711 Third Avenue	2010	82,444	$	1,978,656	$	24.00	0.6	%	$	1,978,656	0.7	%
UNICEF	673 First Avenue	2003, 2012, & 2013	81,100	$	2,666,268	$	32.88	0.7	%	$	2,666,268	0.9	%

TOTAL			4,569,561		142,442,832	$	31.17	39.7	%	$	98,176,636	34.3	%
Wholly Owned Portfolio + Allocated JV Properties			11,533,000	$	358,968,297	$	31.13			$	286,610,937

(1): Minskoff/Nederlander JV pays percentage rent.

THIRD QUARTER—2002 LEASING ACTIVITY
Leased Space

Activity Type	Building Address	# of Leases	Usable SF	Rentable SF	*Rent/Rentable SF ($'s)**
Vacancy at 6/30/02			337,022
Expiring Space

Office	317 Madison Avenue	5	9,838	10,903	23.97
	1370 Broadway	3	7,951	8,736	24.91
	180 Madison Avenue	6	7,704	7,704	30.06
	100 Park Avenue	1	1,122	1,189	52.00
	286 Madison Avenue	2	3,174	3,960	35.26
	292 Madison	1	10,113	10,113	20.00
	1414 Ave of Americas	1	1,120	2,351	41.10
	110 East 42nd Street	1	1,358	1,941	38.80
	321 W. 44th Street	1	16,395	19,698	15.81
	1466 Broadway	6	7,232	8,368	33.38
	420 Lexington Avenue	12	46,067	50,113	27.99

	Total/Weighted Average	39	112,074	125,076	26.22
Retail
	1515 Broadway	1	4,000	4,000	121.00
	1372 Broadway	1	710	645	39.14

	Total/Weighted Average	2	4,710	4,645	109.63
Move Outs

Office
	1 Park Avenue	1	16,205	20,462	31.00
	180 Madison Avenue	2	5,186	5,186	29.46
	100 Park Avenue	1	7,745	9,776	25.00
	555 West 57th Street	1	5,043	5,400	20.00
	70 West 36th Street	1	7,879	10,000	32.89
	1372 Broadway	1	33,685	42,685	22.09
	1466 Broadway	3	590	759	48.68
	420 Lexington Avenue	2	6,509	6,729	28.48

	Total/Weighted Average	12	82,842	100,997	26.14
Retail
	217 Madison Avenue	1	500	500	199.65
	Total/Weighted Average	1	500	500	199.65
Evicted Tenants

Office
	Total/Weighted Average	—	—	—	29.34
Retail
	Total/Weighted Average	—	—	—	—
Relocating Tenants

Office
	1466 Broadway	1	242	242	44.63

	Total/Weighted Average	1	242	242	44.63
Available Space

	Office	52	195,158	226,315	26.20
	Retail	3	5,210	5,145	118.38

	Total	55	200,368	231,460	28.25
Available Space			537,390
* Escalated Rent is calculated as Total Annual Income less Electric Charges.

THIRD QUARTER—2002 LEASING ACTIVITY
Leased Space

Activity Type	Building Address	# of Leases	Lease Term (Yrs)	Usable SF	Rentable SF	New Cash Rent / Rentable SF*	Prev. Escalated Rent/ Rentable SF**	T.I / Rentable SF	Free Rent # of Months
Available Space as 9/30/02				537,390
Renewing Tenants

Office
	317 Madison Avenue	2	3.0	4,807	7,063	33.09	17.85	—	4.0
	1370 Broadway	2	2.2	1,730	2,515	31.35	29.06	0.80	—
	180 Madison Avenue	1	4.0	1,775	2,313	36.00	23.00	0.80	1.0
	100 Park Avenue	1	2.0	832	1,189	47.50	52.00	—	—
	1466 Broadway	1	3.0	965	1,398	36.00	29.79	2.00	1.0
	420 Lexington Avenue	3	1.0	9,234	13,191	34.41	24.95	0.04	1.5

	Total/Weighted Average	10	2.0	19,343	27,669	34.57	24.76	0.26	0.8
Storage
	Total/Weighted Average
Relocating Tenants

Office
	1466 Broadway	1	2.0	379	573	38.00	44.28	4.36	—

	Total/Weighted Average	1	2.0	379	573	38.00	44.28	4.36	—
Expansion Tenants

Retail
	1372 Broadway	1	15.0	1,651	1,800	90.00	100.00	—	4.0

	Total/Weighted Average	1	15.0	1,651	1,800	90.00	100.00	—	4.0
New Tenants Replacing Old Tenants

Office
	317 Madison Avenue	1	1.0	3,421	5,105	40.00	23.50	—	—
	1 Park Avenue	1	10.5	16,205	20,462	26.00	31.00	—	2.0
	180 Madison Avenue	2	3.0	1,886	2,675	37.58	28.10	1.64	4.0
	100 Park Avenue	1	8.0	7,745	10,058	37.30	24.30	20.00	2.0
	286 Madison Avenue	1	5.0	995	1,422	33.00	24.75	7.86	2.0
	555 West 57th Street	1	15.3	5,043	7,077	36.00	15.26	—	4.0
	70 West 36th Street	1	10.0	6,063	7,675	23.00	17.00	25.00	4.0
	1372 Broadway	2	14.6	34,705	45,208	46.25	31.76	24.60	4.0
	110 East 42nd Street	1	5.0	1,387	1,983	38.08	22.55	20.19	1.0
	440 Ninth Avenue	2	10.0	35,141	45,500	26.00	20.00	39.51	17.0
	1466 Broadway	2	2.3	884	1,217	39.32	31.68	7.05	1.0
	420 Lexington Avenue	5	4.1	7,686	11,335	38.97	34.07	4.12	6.0

	Total/Weighted Average	20	10.5	121,161	159,717	34.62	25.68	21.37	2.4
Retail
	317 Madison Avenue	1	2.4	501	501	150.00	199.65	—	1.0
	1372 Broadway	1	10.1	710	710	45.00	37.14	—	—

	Total/Weighted Average	2	6.9	1,211	1,211	88.40	100.40	—	0.5

THIRD QUARTER—2002 LEASING ACTIVITY
Leased Space

Activity Type	Building Address	# of Leases	Lease Term (Yrs)	Usable SF	Rentable SF	New Cash Rent / Rentable SF*	Prev. Escalated Rent/ Rentable SF**	T.I / Rentable SF	Free Rent # of Months
New Tenants Replacing Vacancies

Office
	1 Park Avenue	1	0.5	2079	2,654	22.00	—	—	—
	180 Madison Avenue	1	3.0	660	1,081	38.00	—	—	2.0
	321 West 44th Street	1	2.0	1,163	2,495	26.00	—	43.00	—
	1466 Broadway	3	3.7	7,451	10,949	30.35	—	1.87	1.7
	420 Lexington Avenue	3	5.3	4,124	6,216	38.67	—	32.31	7.0

	Total/Weighted Average	9	3.5	15,477	23,395	31.45	—	14.05	1.2
Retail
	1372 Broadway	1	10	758	800	70.63	—	—	4.0

	Total/Weighted Average	1	10	758	800	70.63	—	—	4.0
Storage
	555 West 57th Street	1	12.8	284	418	25.00	—	—	—
	420 Lexington Avenue	2	3	94	134	22.41	—	—	—

	Total/Weighted Average	3	10.4	378	552	24.37	—	—	—
Leased Space

Office		40	8.6	156,360	211,354	34.27	25.60	17.75	1.6
Retail		4	9.3	3,620	3,811	85.44	100.16	—	1.1
Storage		3	10.4	378	552	24.37	—	—	2.3

	Total	47	8.6	160,358	215,717	35.15	26.66	17.39	1.6
Sold Vacancies
Sub-Total Available Space @ 9/30/02				377,032
Holdover Tenants

	317 Madison	2	0	1,200	1,200	31.15	31.15	—	—
	1370 Broadway	1	0	6,221	6,221	24.34	24.34	—	—
	180 Madison Avenue	5	0	5,391	5,391	25.23	25.23	—	—
	292 Madison Avenue	1	0	10,113	10,113	20.00	20.00	—	—
	1466 Broadway	4	0	3,568	3,568	35.51	35.51	—	—
	420 Lexington Avenue	2	0	1,253	1,253	40.34	40.34	—	—

		15	0	27,746	27,746	25.09	25.09	—	—
Total Available Space @ 9/30/02				349,286

THIRD QUARTER—2002 LEASING ACTIVITY
Leased Space

Activity Type	Building Address	# of Leases	Lease Term (Yrs)	Usable SF	Rentable SF	New Cash Rent/ Rentable SF*	Prev. Escalated Rent/ Rentable SF**	T.I/ Rentable SF	Free Rent # of Months
Early Renewals

Office
	290 Madison Avenue	1	5.8	4,332	5,626	33.00	28.16	—	—
	50 West 23rd Street	1	7.0	33,940	44,117	32.50	20.77	15.00
	555 West 57th Street	2	9.4	29,685	40,322	33.31	18.47	13.10	4.0
	440 Ninth Avenue	2	5.6	35,606	46,242	29.15	15.60	15.75	3.0
	420 Lexington Avenue	4	0.9	4,372	5,963	33.15	31.18	—	—

		10	9.4	107,935	142,270	31.69	19.17	14.62	1.0
Retail
	1372 Broadway	1	9.3	2,894	3,478	104.19	90.00	—	—
	711 Third Avenue	1	9.1	10,388	10,388	29.84	13.00	—	—

		2	9.1	13,282	13,866	48.49	32.31	—	—
Storage
	286 Madison Avenue	1	2.0	325	505	25.00	25.00	—	—

		1	2.0	325	505	25.00	25.00	—	—
Renewals

	Expired/Renewed Office	10	2.0	19,343	27,669	34.57	24.76	0.26	0.8
	Early Renewals Office	10	9.4	107,935	142,270	31.69	19.17	14.62	1.0
	Early Renewals Retail	2	9.1	13,282	13,866	48.49	32.31	—	—
	Early Renewals Storage	1	2.0	325	505	25.00	25.00	—	—

	Total	23	8.2	140,885	184,310	33.37	21.01	11.32	0.3

*: Annual Base Rent
**: Escalated Rent is calculated as Total Annual Income less Electric Charges.

ANNUAL LEASE EXPIRATIONS
Consolidated Properties

									Annualized Rent Per Leased Square Foot of Expiring Leases $/psf ***
			Number of Expiring Leases**	Square Footage of Expiring Leases	Percentage of Total Leased Sq. Ft.		Annualized Rent of Expiring Leases($'s)				Year 2002 Weighted Average Asking Rent $/psf
Year of Lease Expiration			Number of Expiring Leases**	Square Footage of Expiring Leases	Percentage of Total Leased Sq. Ft.		Annualized Rent of Expiring Leases($'s)				Year 2002 Weighted Average Asking Rent $/psf

In 1st Quarter 2002*			10	9,519	0.14	%	$	253,896	$	26.67	$	42.61
In 2nd Quarter 2002*			4	5,028	0.07	%	$	166,980	$	33.21	$	38.95
In 3rd Quarter 2002*			13	24,569	0.36	%	$	670,752	$	27.30	$	38.06
In 4th Quarter 2002			28	79,482	1.18	%	$	2,578,212	$	32.44	$	39.62

	Total 2002		55	118,598	1.76	%	$	3,669,840	$	30.94	$	39.51

		2003	133	557,205	8.25	%	$	16,741,392	$	30.05	$	37.37
		2004	138	618,011	9.15	%	$	19,960,536	$	32.30	$	35.94
		2005	128	595,696	8.82	%	$	19,212,036	$	32.25	$	36.43
		2006	73	513,343	7.60	%	$	16,529,604	$	32.20	$	36.29
		2007	79	376,972	5.58	%	$	11,535,084	$	30.60	$	38.09
		2008	43	370,799	5.49	%	$	12,340,248	$	33.28	$	36.13
		2009	38	564,141	8.35	%	$	17,721,060	$	31.41	$	36.71
		2010	44	991,862	14.68	%	$	30,141,864	$	30.39	$	37.87
		2011	23	300,169	4.44	%	$	12,217,032	$	40.70	$	40.15
	Thereafter		50	1,750,048	25.90	%	$	44,196,111	$	25.26	$	34.57

			804	6,756,844	100	%	$	204,264,807	$	30.23	$	36.50

*: Includes month to month holdover tenants that expired prior to 9/30/02
**: Tenants may have multiple leases.
**: Represents current in place annualized rent allocated by year of maturity.

ANNUAL LEASE EXPIRATIONS
Joint Venture Properties

Year of Lease Expiration			Number of Expiring Leases**	Square Footage of Expiring Leases	Percentage of Total Leased Sq. Ft.		Annualized Rent of Expiring Leases ($'s)		Annualized Rent Per Leased Square Foot of Expiring Leases $/psf ***		Year 2002 Weighted Average Asking Rent $/psf
In 1st Quarter 2002*			0	0	0.00	%	$	0	$	0.00	$	0.00
In 2nd Quarter 2002*			0	0	0.00	%	$	0	$	0.00	$	0.00
In 3rd Quarter 2002*			5	11,563	0.26	%	$	765,648	$	66.22	$	45.19
In 4th Quarter 2002			14	275,559	6.10	%	$	12,286,980	$	44.59	$	45.20

	Total 2002		19	287,122	6.36	%	$	13,052,628	$	45.46	$	45.46
		2003	22	200,632	4.44	%	$	5,970,348	$	29.76	$	44.49
		2004	21	173,071	3.83	%	$	6,752,916	$	39.02	$	46.07
		2005	23	402,063	8.90	%	$	10,785,780	$	26.83	$	48.22
		2006	25	375,021	8.30	%	$	10,337,196	$	27.56	$	44.14
		2007	14	282,223	6.25	%	$	9,755,652	$	34.57	$	48.58
		2008	14	336,780	7.46	%	$	10,540,848	$	31.30	$	48.04
		2009	16	524,865	11.62	%	$	18,077,184	$	34.44	$	47.65
		2010	14	1,279,175	28.32	%	$	49,358,808	$	38.59	$	53.14
		2011	5	101,393	2.24	%	$	3,947,232	$	38.93	$	39.92
	Thereafter		17	554,842	12.28	%	$	16,124,898	$	29.06	$	47.21

			190	4,517,187	100.00	%	$	154,703,490	$	34.25	$	48.47

*: Includes month to month holdover tenants that expired prior to 9/30/02
**: Tenants may have multiple leases.
***: Represents in place annualized rent allocated by year of maturity.

SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997

		Property	Type of Ownership	Submarket	Net Rentable s.f.	% Leased at acquisition	% Leased 9/30/02	Acquisition Price ($'s)
1998 Acquisitions

	Mar-98	420 Lexington	Operating Sublease	Grand Central North	1,188,000	83	93.2	$	78,000,000
	Mar-98	1466 Broadway	Fee Interest	Times Square	289,000	87	86.2	$	64,000,000
	Mar-98	321 West 44th	Fee Interest	Times Square	203,000	96	90.2	$	17,000,000
	May-98	711 3rd Avenue	Operating Sublease	Grand Central North	524,000	79	100.0	$	65,600,000
	Jun-98	440 9th Avenue	Fee Interest	Garment	339,000	76	97.1	$	32,000,000
	Aug-98	1412 Broadway	Fee Interest	Times Square South	389,000	90	N/A	$	82,000,000
					2,932,000			$	338,600,000

1999 Acquisitions

	Jan-99	420 Lexington Leasehold	Sub-leasehold	Grand Central North				$	27,300,000
	Jan-99	555 West 57th — 65% JV	Fee Interest	Midtown West	941,000	100	100.0	$	66,700,000
	May-99	90 Broad Street — 35% JV	Fee Interest	Financial	339,000	82	N/A	$	34,500,000
	May-99	The Madison Properties:	Fee Interest	Grand Central South				$	50,000,000
		286 Madison Avenue			112,000	99	92.6
		290 Madison Avenue			36,800	86	100.0
		292 Madison Avenue			187,000	97	99.7
	Aug-99	1250 Broadway — 50% JV	Fee Interest	Penn Station	670,000	97	99.3	$	93,000,000
	Nov-99	555 West 57th — remaining 35%	Fee Interest	Midtown West	—			$	34,100,000
					2,285,800			$	305,600,000

2000 Acquisitions

	Feb-00	100 Park Avenue	Fee Interest	Grand Central South	834,000	97	100.0	$	192,000,000
	Dec-00	180 Madison Avenue	Fee Interest	Grand Central South	265,000	90	82.1	$	41,250,000
Contribution to JV

	May-00	321 West 44th	Fee Interest	Times Square	203,000	98	90.2	$	28,400,000
					1,302,000			$	261,650,000
2001 Acquisitions

	Jan-01	1370 Broadway	Fee Interest	Garment	255,000	97	92.3	$	50,500,000
	Jan-01	1 Park Avenue	Various Interests	Grand Central South	913,000	97	98.6	$	233,900,000
	Jan-01	469 7th Avenue — 35% JV	Fee Interest	Penn Station	253,000	98	N/A	$	45,700,000
	Jun-01	317 Madison	Fee Interest	Grand Central	450,000	95	94.3	$	105,600,000
Acquisition of JV Interest

	Sep-01	1250 Broadway — 49.9% JV (3)	Fee Interest	Penn Station	670,000	98	99.3	$	126,500,000

					2,541,000			$	562,200,000
2002 Acquisitions

	May-02	1515 Broadway — 55% JV (4)	Fee Interest	Times Square	1,750,000	98	98.3	$	483,500,000
								$	483,500,000

(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.)
(4): Current ownership interest is 55%.]

SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999

	Property	Type of Ownership	Submarket	Net Rentable s.f.	Sales Price ($'s)		Sales Price ($'s/SF)
2000 Sales

Feb-00	29 West 35th Street	Fee Structure	Garment	78,000	$	11,700,000	$	150
Mar-00	36 West 44th Street	Fee Structure	Grand Central	178,000	$	31,500,000	$	177
May-00	321 West 44th Street—35% JV	Fee Structure	Times Square	203,000	$	28,400,000	$	140
Nov-00	90 Broad Street	Fee Structure	Financial	339,000	$	60,000,000	$	177
Dec-00	17 Battery South	Fee Structure	Financial	392,000	$	53,000,000	$	135

				1,190,000	$	184,600,000	$	156
2001 Sales

Jan-01	633 Third Ave	Fee Structure	Grand Central North	40,623	$	13,250,000	$	326
May-01	1 Park Ave—45% JV	Fee Structure	Times Square	913,000	$	233,900,000	$	256
Jun-01	1412 Broadway	Fee Structure	Times Square South	389,000	$	90,700,000	$	233
Jul-01	110 E. 42nd Street	Fee Structure	Grand Central North	69,700	$	14,500,000	$	208
Sep-01	1250 Broadway (1)	Fee Structure	Penn Station	670,000	$	126,500,000	$	189

				2,082,323	$	478,850,000	$	242
2002 Sales

Jun-02	469 Seventh Avenue	Fee Structure	Penn Station	253,000	$	53,100,000	$	210

(1): Company sold a 45% JV interest in the property at an implied $126.5mm sales price.

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).

CORPORATE GOVERNANCE


Stephen L. Green Chairman of the Board and CEO		Thomas E. Wirth Chief Financial Officer
Marc Holliday President		Gerard Nocera Executive VP, Director of Real Estate
Michael W. Reid Chief Operating Officer		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.

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