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: January 30, 2003

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 Press Release

99.2 Supplemental Package

Item 9. Regulation FD Disclosure

Following the issuance of a press release on January 28, 2003 announcing the Company's results for the fourth quarter ended December 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.

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: January 30, 2003

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Item 7. Financial Statements and Exhibits

Item 9. Regulation FD Disclosure

SIGNATURES

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Exhibit 99.1

420 Lexington Avenue New York City 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 FOURTH QUARTER
FFO OF $0.87 PER SHARE AND 2002 FFO OF $3.32 PER SHARE

Fourth Quarter Highlights

•: FFO increased to $0.87 per share (diluted) versus $0.76 in the prior year, a 14% increase
•: Announced acquisitions of The News Building and 125 Broad Street for approximately $355 million
•: Announced 5.1% increase to $1.86 per common share in annual common dividend
•: Completed $150 million 5-Year Unsecured Term Loan and fixed initial $100 million of borrowing at a blended rate of 5.06%
•: Obtained a $35 million 10-year first mortgage commitment on 673 First Avenue at a rate of 5.72%
•: Signed contract to sell 50 West 23^rd Street for $66 million in first quarter 2003
•: CEO/Chairman Stephen L. Green signed 5 year employment contract

Annual 2002 Highlights

•: FFO increased to $3.32 per share (diluted) versus $3.00 in the prior year, an 11% increase. The 2001 results have been restated to reduce FFO earnings by $0.02 per share (diluted) due to an increase in interest expense related to the early extinguishment of debt previously accounted for as an extraordinary item.
•: Net income increased to $2.09 per share (diluted) versus $1.95 in the prior year, an 8% increase.
•: FAD increased to $2.60 per share (diluted) versus $2.48 per share (diluted) in the prior year, a 5% increase. Excluding a gain in the prior year related to a structured finance investment (2GCT) totaling $0.17 per share (diluted), FAD would have increased 13%.

Financial Results

New York, NY, January 28, 2003—SL Green Realty Corp. (NYSE:SLG) reported a 14% increase in operating results for the three months ended December 31, 2002. During this period funds from operations (FFO) before minority interest totaled $30.6 million, or $0.87 per share (diluted), compared to $26.3 million, or $0.76 per share (diluted), for the same quarter in 2001. Full year results were also strong as FFO for the year ended December 31, 2002 totaled $116.2 million, or $3.32 per share (diluted), compared to $94.4 million, or $3.00 per share (diluted), in the previous year, an 11% increase.

Net income for the fourth quarter 2002 totaled $16.7 million, or $0.54 per share (diluted), an increase of 20% as compared to the same quarter in 2001 when net income totaled $13.6 million, or $0.45 per share (diluted). Net income for the full year 2002 totaled $64.6 million, or $2.09 per share (diluted), an increase of 8% as compared to $53.3 million, or $1.94 per share (diluted) for the full year 2001.

Consolidated Results

Total quarterly revenues increased 4% in the fourth quarter to $62.9 million compared to $60.4 million last year. The $2.6 million growth in revenue resulted from the following items:

•: $1.6 million increase from the 2002 same-store portfolio
•: $1.2 million increase from investment and other income
•: $0.4 million decrease in revenue from non same-store properties

The Company's EBITDA increased $3.5 million, resulting in increased margins before ground rent of 77.7% compared to 72.4% for the same period last year and after ground rent margins improved to 71.9% from 66.6% in the corresponding period. Margin improvement was driven by the following items:

•

$1.6 million increase from GAAP NOI;

•: $2.7 million increase in income from unconsolidated joint ventures
•: $0.8 million decrease from same-store portfolio
•: $0.3 million decrease from non same-store properties and increased corporate reserves

•: $0.8 million increase from investment and preferred income
•: $0.9 million increase in other income from an acquisition break-up fee ($0.3 million) and the sale of other assets (0.6 million)
•: $0.5 million decrease in MG&A primarily due to lower year end compensation and severance costs

FFO improved $4.3 million primarily as a result of:

•: $3.5 million increase in EBITDA
•: $1.4 million increase in FFO adjustment from unconsolidated joint ventures
•: $0.4 million decrease from higher interest expense

The $0.4 million increase in interest expense was primarily associated with higher average debt levels associated with new investment activity ($1.1 million), prepayment penalties for early extinguishment of debt ($0.3 million) and the funding of ongoing capital projects and working capital requirements ($0.1 million). These increases were partially offset by reduced loan balances due to previous disposition activity ($0.9 million) and lower interest rates ($0.3 million).

The 2001 results have been restated to classify the operating results of 50 West 23^rd Street as income from discontinued operations.

At the end of the quarter, consolidated debt totaled $562.4 million, reflecting a debt to market capitalization ratio of 32.9%.

Same-store Results

During the fourth quarter, same-store cash NOI increased $0.1 million to $25.8 million, as compared to $25.7 million over the same prior year period. Cash NOI margins before ground rent decreased year over year from 61.5% to 60.0%. The increase in cash NOI was driven primarily by a $2.1 million (4.6%) increase in cash revenue due to:

•: $2.0 million increase from replacement rents which were 30% higher than previously fully-escalated rents, including early renewals and contractual rent steps
•: $0.6 million increase in escalation and reimbursement revenue
•: $0.4 million decrease from lower weighted-average occupancy in 2002 (97.2%) compared to 2001 (97.5%) and increased reserves

The increase in revenues were partially offset by a $2.0 million (4.6%) increase in operating costs primarily due to:

•: $0.7 million (331%) increase in insurance costs
•: $0.5 million (8.6%) increase in real estate taxes
•: $0.5 million (12.0%) increase in repairs, maintenance and cleaning expenses
•: $0.2 million (22.0%) increase in management, professional and advertising costs

Approximately 91.5% of the quarterly electric expense was recovered through the utility clause in the tenants' leases.

Leasing Activity

For the quarter, the Company signed 49 office leases totaling approximately 165,000 rentable square feet with starting office cash rents averaging $33.09 per square foot, a 23.2% increase over previously escalated cash rents averaging $26.85 per square foot. Tenant concessions averaged 1.1 months of free rent and an allowance for tenant improvements of $21.69 per square foot. This leasing activity includes early renewals for 3 office leases totaling approximately 14,072 rentable square feet.

Over the course of the year, the Company signed 231 office leases totaling approximately 949,000 rentable square feet with starting office cash rents averaging $34.75 per square foot, a 37.6% increase over previously escalated cash rents averaging $25.25 per square foot. Tenant concessions averaged 1.1 months of free rent and an allowance for tenant improvements of $15.70 per square foot. This leasing activity includes early renewals for 32 office leases totaling approximately 240,000 rentable square feet.

Property Activity

220 East 42^nd Street

Company will receive a prepayment of its preferred equity investment in the property. The property is being acquired from affiliates of The Witkoff Group in a transaction that is expected to close in the first quarter of 2003. The Company will assume the property's current $158 million first mortgage that matures in September 2004 and bears interest at LIBOR plus 1.76%.

125 Broad Street

Also on December 9, 2002, the Company announced that it entered into an agreement with affiliates of The Witkoff Group to acquire condominium interests in 125 Broad Street for approximately $90 million ($172 per square foot). The property is located in the New York Plaza Complex, the heart of the eastern financial district of downtown Manhattan. The Company will assume the property's current $76.6 million first mortgage that matures October 2007 and bears interest at 8.29%.

50 West 23^rd Street

On January 28, 2003 the Company announced that it entered into an agreement to sell 50 West 23^rd Street for $66.0 million or approximately $198 per square foot. The company acquired the building at the time of its IPO in August of 1997, at a purchase price of approximately $36.6 million. Since that time the building was upgraded and repositioned enabling the company to realize a gain of approximately $20 million. The proceeds of the sale will be used to pay off an existing $21.0 million first mortgage and the balance will be reinvested into the recently announced acquisitions of 220 East 42^ndStreet (The News Building) and 125 Broad Street to effectuate a partial 1031 tax-free exchange. The closing is anticipated to occur during the first quarter of 2003.

Structured Finance

The Company entered into a joint venture to acquire a $1.0 million junior mortgage with Steven Witkoff of the Witkoff Group in December 2002. The Company has 50% interest in this joint venture.

The Company received $49.6 million of structured finance redemptions at a weighted-average rate of 11.9% in December 2002.

As of December 31, 2002 the par value of the Company's structured finance and preferred equity investments totaled $145.6 million. The weighted balance outstanding over the quarter was $194.6 million. During the fourth quarter 2002 the weighted average yield was 12.51%. The quarter end run rate was 12.68%.

During January 2003, the Company originated a $15 million structured finance investment with an initial yield of 12.5%.

Other

Dividend Increase

On December 9, 2002 the Company declared a dividend distribution of $0.465 per common share for the quarter ended December 31, 2002, representing an annual increase of $0.09 per common share, or a 5.1% increase on an annualized basis. This distribution reflects the regular quarterly dividend, which is the equivalent of an annualized distribution of $1.86 per common share.

Unsecured Term Loan

all-in interest rate for years 2 through 5 will be 5.56%, resulting in a blended annual interest cost of 5.06% for five years. The Company expects to borrow and fix the balance of the facility during the next six months. The proceeds of the transaction were used to pay down a significant portion of the Company's outstanding lines of credit.

Stephen L. Green Employment Contract

Stephen L. Green has executed an employment agreement with the Company, as CEO and Chairman, through December 31, 2007. In addition to a base salary of $600,000 and a discretionary bonus, Mr. Green is eligible to participate in the Company's executive compensation programs and has received a grant of 175,000 shares of the Company's restricted stock including a partial tax gross-up payment. The shares have a five-year vesting period and are subject to certain vesting conditions, including continued employment and, with respect to half of the grant, performance hurdles.

Other

As of December 31, 2002, the Company's portfolio consists of interests in 25 properties, aggregating 11.5 million square feet. Upon completion of the announced 2003 purchases and sales, the Company's portfolio will consist of interests in 26 properties aggregating 12.8 million square feet.

SL Green Realty Corp. is a self-administered and self-managed real estate investment trust ("REIT") that acquires, owns, repositions and manages a portfolio of Manhattan office properties. The Company is the only publicly held REIT which specializes exclusively in this niche.

Financial Tables attached.

To receive SL Green's latest news release and other corporate documents, including the Fourth 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 growth, interest rates and capital market conditions. For further information, please refer to the Company's filings with the Securities and Exchange Commission.

SL GREEN REALTY CORP.
STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)

		Three Months Ended December 31,						Twelve Months Ended December 31,
		2002			2001			2002			2001
Revenue:
Rental revenue, net		$	47,434		$	46,544		$	187,458		$	197,661
Escalations & reimbursement revenues			6,694			6,705			28,324			30,361
Signage rent			564			568			1,488			1,522
Investment income			3,977			3,182			15,396			14,808
Preferred equity income			1,975			1,931			7,780			2,561
Other income			2,305			1,448			5,709			2,770

	Total revenues		62,949			60,378			246,155			249,683

Expenses:
Operating expenses including $1,677 and $6,745 (2002) and $1,682 and $5,805 (2001) to affiliates			14,529			12,789			57,703			56,718
Real estate taxes			7,653			7,078			29,451			29,826
Ground rent			3,159			3,159			12,637			12,579
Interest			9,421			8,991			36,656			45,107
Depreciation and amortization			10,414			9,925			39,063			37,117
Marketing, general and administrative			3,563			4,044			13,282			15,374

	Total expenses		48,739			45,986			188,792			196,721

Income from continuing operations before equity in net income (loss) from affiliates, equity in net income of unconsolidated joint ventures, gain on sale, minority interest and a cumulative effect adjustment			14,210			14,392			57,363			52,962
Equity in net income (loss) from affiliates			47			(71	)		292			(1,054	)
Equity in net income from unconsolidated joint ventures			5,270			2,587			18,383			8,607

	Operating earnings		19,527			16,908			76,038			60,515
Gain on sale of rental properties/equity investments			—			(207	)		—			4,956
Minority interests in operating partnership attributable to continuing operations			(1,164	)		(1,073	)		(4,545	)		(4,419	)
Cumulative effect of change in accounting principle			—			—			—			(532	)

Income from continuing operations			18,363			15,628			71,493			60,520
Income from discontinued operations, net of minority interest			803			369			2,838			2,479

	Net income		19,166			15,997			74,331			62,999
Preferred stock dividends			(2,300	)		(2,300	)		(9,200	)		(9,200	)
Preferred stock accretion			(123	)		(114	)		(490	)		(458	)

	Net income available to common shareholders		16,743		$	13,583		$	64,641		$	53,341

Net income per share (basic)		$	0.55		$	0.45		$	2.14		$	1.98
Net income per share (diluted)		$	0.54		$	0.45		$	2.09		$	1.94
Funds From Operations (FFO)
FFO per share (basic)		$	0.94		$	0.82		$	3.58		$	3.24
FFO per share (diluted)		$	0.87		$	0.76		$	3.32		$	3.00

FFO Calculation:
Income before minority interests, preferred stock dividends, property sales and cumulative effect adjustment		$	19,527		$	16,908		$	76,038		$	60,515
Less:
Preferred stock dividend			(2,300	)		(2,300	)		(9,200	)		(9,200	)
Add:
FFO from discontinued operations			861			850			3,622			3,863
Joint venture FFO adjustment			3,359			1,996			11,025			6,575
Depreciation and amortization			10,414			9,925			39,062			37,117
Amortization of deferred financing costs and depreciation of non-real estate assets			(1,235	)		(1,096	)		(4,318	)		(4,456	)

FFO — BASIC			30,626			26,283			116,229			94,414
Add: Preferred stock dividends			2,300			2,300			9,200			9,200

FFO — DILUTED		$	32,926		$	28,583		$	125,429		$	103,614

Basic ownership interests
	Weighted average REIT common shares		30,387			29,971			30,236			26,993
	Weighted average partnership units held by minority interest		2,161			2,273			2,208			2,283

Basic weighted average shares and units outstanding			32,548			32,244			32,444			29,276

Diluted ownership interest
	Weighted average REIT common and common share equivalent share		30,904			30,540			30,879			27,525
	Weighted average partnership units held by minority interests		2,161			2,273			2,208			2,283
	Common share equivalents for preferred stock		4,699			4,699			4,699			4,699

Diluted weighted average equivalent shares and units outstanding			37,764			37,512			37,786			34,507

SL GREEN REALTY CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)

	December 31,
	2002			2001
Assets
Commercial real estate properties, at cost:
Land and land interests	$	131,078		$	138,337
Buildings and improvements		683,165			689,094
Building leasehold		149,326			144,736
Property under capital lease		12,208			12,208

		975,777			984,375
Less accumulated depreciation		(126,669	)		(100,776	)

		849,108			883,599
Assets held for sale		41,536			—
Cash and cash equivalents		58,020			13,193
Restricted cash		29,082			38,424
Tenant and other receivables, net of allowance of $5,927 and $3,629 reserve in 2002 and 2001, respectively		6,587			8,793
Related party receivables		4,868			3,498
Deferred rents receivable net of allowance of $6,575 and $5,264 in 2002 and 2001, respectively		55,731			51,855
Investment in and advances to affiliates		3,979			8,211
Structured finance investments, net of discount of $205 and $593 in 2002 and 2001, respectively		145,640			188,638
Investments in unconsolidated joint ventures		214,644			123,469
Deferred costs, net		35,511			34,901
Other assets		28,464			16,996

Total assets	$	1,473,170		$	1,371,577

Liabilities and Stockholders' Equity
Mortgage notes payable	$	367,503		$	409,900
Revolving credit facilities		74,000			94,931
Unsecured term loan		100,000			—
Derivative instruments at fair value		10,962			3,205
Accrued interest payable		1,806			1,875
Accounts payable and accrued expenses		41,043			22,819
Deferred compensation awards		1,329			1,838
Deferred revenue/gain		3,096			1,381
Capitalized lease obligations		16,016			15,574
Deferred land lease payable		14,626			14,086
Dividend and distributions payable		17,436			16,570
Security deposits		20,948			18,829
Liabilities related to assets held for sale		21,321			—

Total liabilities		690,086			601,008

Minority interests (2,145 units outstanding) at December 31, 2002		44,718			46,430
Commitments and contingencies
8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, 4,600 outstanding at December 31, 2002 and 2001		111,721			111,231
Stockholders' Equity
Common stock, $0.01 par value 100,000 shares authorized, 30,422 and 29,978 issued and outstanding at December 31, 2002 and 2001, respectively		304			300
Additional paid—in capital		592,585			583,350
Deferred compensation plan		(5,562	)		(7,515	)
Accumulated other comprehensive loss		(10,740	)		(2,911	)
Retained earnings		50,058			39,684

Total stockholders' equity		626,645			612,908

Total liabilities and stockholders' equity	$	1,473,170		$	1,371,577

SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED

	December 31
	2002			2001
Operating Data:
Net rentable area at end of period (in 000's)(1)		11,533			10,036
Portfolio occupancy percentage at end of period		96.9	%		97.7	%
Same-store occupancy percentage at end of period		97.1	%		97.4	%
Number of properties in operation		25			25
Office square feet leased in fourth quarter		165,000			208,000
Average mark-to-market percentage-office		23.2	%		49.2	%
Average rent per rentable square feet	$	33.09		$	36.87

(1): Includes wholly-owned and minority owned properties.

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Exhibit 99.1

SL GREEN REALTY CORP. STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data)
SL GREEN REALTY CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in Thousands)
SL GREEN REALTY CORP. SELECTED OPERATING DATA-UNAUDITED

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Exhibit 99.2

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 and twelve months ended December 31, 2002 that will subsequently be released on Form 10-K to be filed on or before March 31, 2003.

TABLE OF CONTENTS

Highlights of Current Period Financial Performance
Unaudited Financial Statements
	Corporate Profile	4
	Financial Highlights	5-12
	Balance Sheets	13-14
	Statements of Operations	15-16
	Joint Venture Statements	17-18
	Statement of Stockholders' Equity	19
	Funds From Operations	20
Selected Financial Data		21-23
Summary of Debt and Ground Lease Arrangements		24-25
Mortgage Investments and Preferred Equity		26-27
Property Data
	Composition of Property Portfolio	28
	Top Tenants	29
	Leasing Activity Summary	30-33
	Lease Expiration Schedule	34-35
Summary of Acquisition/Disposition Activity		36-37
Supplemental Definitions		38
Corporate Information		39

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: investment in long term core properties, investment in opportunistic assets 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
FOURTH QUARTER 2002
UNAUDITED

FINANCIAL RESULTS

Funds From Operations (FFO) for the fourth quarter 2002 totaled $30.6 million, or $0.87 per share (diluted), a 14% increase compared to the same quarter in 2001 when FFO totaled $26.3 million, or $0.76 per share (diluted). FFO for the full year 2002 totaled $116.2 million, or $3.32 per share (diluted), an 11% increase compared to $94.4 million, or $3.00 per share (diluted), for the same period in 2001. The 2001 results have been restated to reduce FFO earnings by $0.02 per share (diluted) due to an increase in interest expense related to the early extinguishment of debt previously accounted for as an extraordinary item.

Net income for the fourth quarter 2002 totaled $16.7 million, or $0.54 per share (diluted), an increase of 20% as compared to the same quarter in 2001 when net income totaled $13.6 million, or $0.45 per share (diluted). Net income for the full year 2002 totaled $64.4 million, or $2.09 per share (diluted), an increase of 8% as compared to $53.3 million, or $1.94 per share (diluted) for the full year 2001.

Funds available for distribution (FAD) for the 12 months ended December 31, 2002, increased to $2.60 per share (diluted) versus $2.48 per share (diluted) in the prior year, a 5% increase. Excluding a gain in the prior year related to a structured finance investment (2GCT) totaling $0.17 per share (diluted), FAD would have increased 13%.

CONSOLIDATED RESULTS

Total quarterly revenues increased 4% in the fourth quarter to $62.9 million compared to $60.4 million last year. The $2.5 million growth in revenue resulted from the following items:

•: $1.6 million increase from the 2002 same-store portfolio
•: $1.2 million increase from investment and other income
•: $0.4 million decrease in revenue from properties not in the same-store portfolio

The Company's EBITDA increased $3.5 million, resulting in increased margins before ground rent of 77.7% compared to 72.4% for the same period last year. After ground rent margins improved in 2002 to 71.9% from 66.6% in the corresponding period 2001. Margin improvements were driven by the following items:

(1)

Consolidated GAAP NOI increased $1.6 million:

•: $2.7 million increase from the equity in income from unconsolidated joint ventures (primarily due to acquisitions of 1515 Broadway (May 2002) and 1250 Broadway (November 2001) partially offset by the sale of 469 Seventh Avenue (June 2002).
•: $0.8 million decrease from the 2002 same-store properties mainly due to $2.0 million of increased operating costs resulting from (i) increased insurance costs ($0.7 million) due to higher premiums on the annual policy which commenced October 2002, (ii) increased real estate taxes ($0.5 million) due to higher assessed values and tax rates and (iii) increased cleaning and repair and maintenance costs ($0.5 million) by and large due to a 420 Lexington Avenue cleaning contract adjustment and various repair projects.

The increased operating costs were partially offset by a $1.3 million increase in GAAP revenues brought about by (i) higher reimbursement revenues ($0.6 million) largely due to higher real estate and operating expense escalations and (ii) rental revenue increases of $1.3 million as GAAP replacement rents were 35% higher than previous rents. These increases were partially offset by decreased occupancy and increased reserves ($0.4 million).

•: $0.3 million decrease from non same-store property results, inclusive of 50 West 23^rd Street and e.Emerge.

(2): $0.8 million increase in investment and preferred equity income primarily due to the weighted-average asset balance increase from $178.2 million to $194.7 million which resulted from increases in net originations during 2002. The increase is partially offset by a decrease in the weighted average yield from 12.86% to 12.51% due mainly to lower LIBOR.
(3): $0.9 million increase in other income primarily due to asset management fees earned on joint ventures ($0.3 million), receipt of an acquisition break-up fee ($0.3 million) and a gain on sale of mortgage recording tax credits ($0.6 million). The increase was partially offset by a $0.6 million acquisition fee earned in 2001.
(4): MG&A decreased $0.5 million because of lower severance and year-end compensation costs.

FFO improved $4.3 million primarily as a result of:

•: $3.5 million increase in EBITDA
•: $1.4 million increase in FFO adjustment from unconsolidated joint ventures
•: $0.4 million decrease from higher interest expense

SAME-STORE RESULTS

Same-store cash NOI improved $0.1 million due to a $2.1 million improvement in cash revenue partially offset by a $2.0 million increase in operating costs.

Cash operating margins before ground rent decreased from 61.5% to 60.0%. GAAP NOI decreased by $0.8 million over the prior year, and GAAP operating margins before ground rent decreased from 64.9% to 61.6%.

The $2.1 million increase in cash revenue was due to:

1.: $2.0 million increase in cash rental revenue due to (i) a $1.2 million increase resulting from higher replacement rents on approximately 640,000 square feet that were 30% greater than previously fully escalated rents and (ii) $0.8 million from increased cash revenue from rent-steps and reduced free rent.
2.: The increase in cash rental revenue was partially offset by increased vacancy and reserves ($0.4 million) because the same-store portfolio weighted average occupancy decreased from 97.4% in 2001 to 97.1% in 2002.
3.: $0.6 million increase in escalation and reimbursement income due to a passthrough of higher operating cost escalations.
4.: The electric recovery rate for the quarter was approximately 91.5%.

The $2.0 million increase in same-store operating expenses resulted from:

1.: $0.7 million (331%) increase in insurance costs due to higher premiums from the Company's insurance policy that was renewed in October 2002.
2.: $0.5 million (8.6%) increase in real estate taxes due to higher property value assessments and an increase to the tax rate.
3.: $0.5 million (12.0%) increase in cleaning, repairs and maintenance expense attributable to a cleaning contract adjustment at 420 Lexington Avenue and various repair projects throughout the portfolio.
4.: $0.2 million (22.0%) increase in management, professional and advertising costs.

QUARTERLY LEASING HIGHLIGHTS

Vacancy at September 30, 2002 was 349,286 useable square feet net of holdover tenants. During the quarter, 166,701 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 515,987 useable square feet, or 4.5% of the total portfolio.

During the fourth quarter, 52 leases were signed totaling 163,089 useable square feet. New office cash rents averaged $33.49 per rentable square foot. Replacement rents were 23.5% greater than rents on previously occupied space, which had fully escalated cash rents averaging $27.11 per rentable square foot. The average office lease term was 7.9 years and average office tenant concessions were 1.2 months of free rent with an allowance of $23.15 per rentable square foot. Including early renewals and excluding holdover tenants, the tenant renewal rate was 28.8% based on square feet expiring. Seventeen leases have expired comprising 38,863 useable square feet that are in a holdover status. This results in 358,910 useable square feet (net of holdovers) remaining available as of December 31, 2002.

The overall average lease term on the quarterly leasing activity was 7.8 years.

The Company signed 3 office leases for 10,001 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 2003. The Company was able to renew the current office tenants at an average cash rent of $28.82, representing an increase of 19.7% over the previously fully escalated rents of $24.07. The average lease term on the office early renewals was 7.2 years.

For the year 2002, portfolio-wide cash replacement rents were 31% above the previously escalated rents.

PROPERTY ACTIVITY

220 East 42nd Street

On December 9, 2002, the Company announced that it entered into an agreement to acquire The News Building located at 220 East 42nd Street for $265 million ($242 per square foot). The News Building is a cornerstone property in the Grand Central and United Nations market place. In this transaction, the Company will receive a prepayment of its preferred equity investment in the property. The property is being acquired from affiliates of The Witkoff Group in a transaction that is expected to close in the first quarter of 2003. The Company will assume the property's current $158 million first mortgage that matures in September 2004 and bears interest at LIBOR plus 1.76%.

The landmark 1.1 million square foot News Building is 100% leased, inclusive of a 100,000 square foot masterlease from the seller, with 18% of the leases expiring over the next 3 years. The going-in NOI

yield is 8.0% based on fully escalated in-place rents averaging $32.85 per square foot in the News Building, 17%-22% below current market rents. The building's high-quality tenancy includes Omnicom Group, which leases 40% of the building and other notable companies such as Tribune Company, WPIX-TV, Verizon, Value Line, Neuberger Berman, and United Nations Population Fund.

125 Broad Street

On December 9, 2002, the Company announced that it entered into an agreement with affiliates of The Witkoff Group to acquire condominium interests in 125 Broad Street for approximately $90 million ($172 per square foot). The property is located in the New York Plaza Complex, the heart of the eastern financial district of downtown Manhattan. The Company will assume the property's current $76.6 million first mortgage that matures October 2007 and bears interest at 8.29%.

The condominium interests in 125 Broad Street consist of 524,500 square feet of office space contained on 15 contiguous floors in a 40-story building. The interests being acquired are 100% leased to tenants such as Salomon Smith Barney (63%) and Fahnestock & Co. (13%). Less than 10% of the leased square footage expires prior to 2010. The property is subject to a long-term ground lease, which provides SL Green the ability to acquire the fee interest for an allocated purchase price of $6 million, or $11.33 per square foot. The property's going-in NOI yield is 9.4% and is based on fully escalated in-place rents of $29.77 per square foot. The property transaction is also expected to close in the first quarter of 2003.

50 West 23^rd Street

OTHER ACTIVITY

Structured Finance Activity

The Company entered into a joint venture to acquire a $1.0 million junior mortgage with Steven Witkoff of the Witkoff Group in December 2002. The Company has 50% interest in this joint venture. In December 2002 the Company received $49.6 million of structured finance redemptions at a weighted-average rate of 11.9%. The par value of the Company's structured finance and preferred equity investments as of December 31, 2002 totaled $145.6 million. The weighted balance outstanding over the quarter was $194.6 million. During the fourth quarter 2002 the weighted average yield was 12.51% and the quarter end run rate was 12.68%.

During January 2003, the Company originated a $15 million structured finance investment with an initial yield of 12.5%.

At December 31, 2002, $102 million of structured finance assets had effective fixed LIBOR floors. The weighted average LIBOR floor was 4.05%.

Unsecured Term Loan

The Company closed a $150 million unsecured 5-year term facility with Wells Fargo Bank. At closing, SL Green drew down $100 million of the facility and fixed the rate through two separate interest rate swap agreements. The first year all-in interest rate on the $100 million borrowed will be 3.14% and the all-in interest rate for years 2 through 5 will be 5.56%, resulting in a blended annual interest cost of 5.06% for five years. The Company expects to borrow and fix the balance of the facility during the next six months. The proceeds of the transaction were used to pay down a significant portion of the Company's outstanding lines of credit.

Stephen L. Green Employment Contract

FUNDS AVAILABLE FOR DISTRIBUTION

FAD before first cycle leasing costs increased 32.0% from $0.54 per share (diluted) to $0.72 per share (diluted). The increase in FAD was due to (i) the higher FFO results ($4.3 million), (ii) reduced FAD adjustment from joint ventures ($0.6 million) primarily due to 1250 Broadway and One Park Avenue, (iii) reduced straight-line and free rent ($0.9 million) and (iv) lower TI's and leasing commissions ($1.5 million). The reduction in TI's and leasing commissions is primarily due to lower leasing volume and the lease-up of pre-built space, previously included in FAD.

The Company's dividend payout ratio was 53.1% of FFO and 64.2% of FAD before first cycle leasing costs.

COMMON AND PREFERRED DIVIDENDS

The Company also declared a dividend of $0.50 per share of Preferred Income Equity Redeemable Stock for shareholders of record as of December 31, 2002. Both dividends were paid on January 15, 2003.

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

2003 SAME-STORE

The 2003 same-store pool will include the properties currently in the 2002 same-store pool and will have the following additional properties:

2003 SAME-STORE ADDITIONS

1370 Broadway
110 East 42^nd Street
317 Madison Avenue

FINANCIAL HIGHLIGHTS
Fourth Quarter
Unaudited

		December 31,
		2002		2001
Operational Information
Total Revenues (000's)		$62,949		$60,378
Funds from Operations
	FFO per share — diluted	$0.87		$0.76
	FFO Payout	53.05	%	58.07	%
Funds Available for Distribution
	FAD per share — diluted	$0.72		$0.54
	FAD Payout	64.67	%	81.99	%
Operating Earnings per share — diluted		$0.55		$0.45
Dividends per share		$0.4650		$0.4425
Weighted Average Shares Outstanding — Diluted		37,764		32,813
Same-store Cash NOI		0	%	5	%
Capitalization Data (000's)
Total Assets		$1,473,170		$1,371,577
Total Consolidated Debt		$562,404		$504,831
Minority Interest		$44,718		$46,430
Preferred Stock		$111,721		$111,231
Quarter End Closing Price — SLG Common Stock		$31.60		$30.71
Total Market Capitalization		$2,102,866		$1,835,500
Ratios

Consolidated Debt to Total Market Capitalization		32.96	%	31.35	%
Combined Debt Allocated		45.59	%	39.78	%
Consolidated Fixed Charge		2.78		2.47
Combined Fixed Charge		2.51		2.31
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	96.9	%	97.7	%
	End of Quarter Occupancy — 2002 Same Store	97.1	%	97.4	%

COMPARATIVE BALANCE SHEETS
Unaudited
(000's omitted)

Assets		12/31/02		12/31/01		+/-		9/30/02		+/-		6/30/02		+/-
Commercial real estate properties, at cost:
	Land & land interests	131,078		138,337		(7,259	)	131,078		—		138,337		(7,259	)
	Buildings & improvements fee interest	683,165		689,094		(5,929	)	675,499		7,666		701,721		(18,556	)
	Buildings & improvements leasehold	149,326		144,736		4,590		147,911		1,415		145,264		4,062
	Buildings & improvements under capital lease	12,208		12,208		—		12,208		—		12,208		—

		975,777		984,375		(8,598	)	966,696		9,081		997,530		(21,753	)
Less accumulated depreciation		(126,669	)	(100,776	)	(25,893	)	(119,056	)	(7,613	)	(115,555	)	(11,114	)

		849,108		883,599		(34,491	)	847,640		1,468		881,975		(32,867	)
Other Real Estate Investments:
	Investment in unconsolidated joint ventures	214,644		123,469		91,175		217,108		(2,464	)	223,354		(8,710	)
	Mortgage loans receivable	78,245		127,166		(48,921	)	127,293		(49,048	)	127,814		(49,569	)
	Preferred equity investments	67,395		61,472		5,923		67,416		(21	)	67,434		(39	)
Assets held for sale		41,536		—		41,536		41,185		351		—		41,536
Cash and cash equivalents		58,020		13,193		44,827		13,450		44,570		20,486		37,534
Restricted cash:
	Tenant security	20,656		19,016		1,640		19,115		1,541		18,974		1,682
	Escrows & other	8,426		19,408		(10,982	)	13,423		(4,997	)	15,517		(7,091	)
Tenant and other receivables, net of $5,927 reserve at 12/31/02		6,587		8,793		(2,206	)	8,066		(1,479	)	8,619		(2,032	)
Related party receivables		4,868		3,498		1,370		4,832		36		3,515		1,353
Deferred rents receivable, net of reserve for tenant credit loss of $6,575 at 12/31/02		55,731		51,855		3,876		54,992		739		55,975		(244	)
Investment in and advances to affiliates		3,979		8,211		(4,232	)	3,146		833		2,949		1,030
Deferred costs, net		35,511		34,901		610		34,957		554		34,571		940
Other assets		28,464		16,996		11,468		14,569		13,895		18,691		9,773

Total Assets		1,473,170		1,371,577		101,593		1,467,192		5,978		1,479,874		(6,704	)

COMPARATIVE BALANCE SHEETS
Unaudited
(000's omitted)

	12/31/02		12/31/01		+/-		9/30/02		+/-		6/30/02		+/-
Liabilities and Stockholders' Equity

Mortgage notes payable	367,503		409,900		(42,397	)	374,800		(7,297	)	397,371		(29,868	)
Unsecured term loan	100,000		—		100,000		—		100,000		—		100,000
Revolving credit facilities	74,000		94,931		(20,931	)	173,931		(99,931	)	197,931		(123,931	)
Derivative Instruments-fair value	10,962		3,205		7,757		8,540		2,422		4,991		5,971
Accrued interest payable	1,806		1,875		(69	)	1,945		(139	)	1,951		(145	)
Accounts payable and accrued expenses	41,043		22,819		18,224		33,935		7,108		27,259		13,784
Deferred compensation awards	1,329		1,838		(509	)	671		658		671		658
Deferred revenue	3,096		1,381		1,715		3,777		(681	)	2,920		176
Capitalized lease obligations	16,016		15,574		442		15,895		121		15,802		214
Deferred land lease payable	14,626		14,086		540		14,466		160		14,406		220
Dividend and distributions payable	17,436		16,570		866		16,693		743		16,706		730
Liabilities related to assets held for sale	21,321		—		21,321		21,414		(93	)	—		21,321
Security deposits	20,948		18,829		2,119		19,420		1,528		19,261		1,687

Total Liabilities	690,086		601,008		89,078		685,487		4,599		699,269		(9,183	)
Minority interest (2,145 units outstanding) at 12/31/02	44,718		46,430		(1,712	)	44,941		(223	)	45,644		(926	)
8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, 4,600 outstanding	111,721		111,231		490		111,599		122		111,474		247
Stockholders' Equity

Common stock, $.01 par value 100,000 shares authorized, 30,422 issued and outstanding at 12/31/02	304		300		4		303		1		303		1
Additional paid — in capital	592,585		583,350		9,235		591,668		917		590,197		2,388
Deferred compensation plans & officer loans	(5,562	)	(7,515	)	1,953		(5,987	)	425		(6,165	)	603
Accumulated other comprehensive loss	(10,740	)	(2,911	)	(7,829	)	(8,279	)	(2,461	)	(4,709	)	(6,031	)
Retained earnings	50,058		39,684		10,374		47,460		2,598		43,861		6,197

Total Stockholders' Equity	626,645		612,908		13,737		625,165		1,480		623,487		3,158

Total Liabilities and Stockholders' Equity	1,473,170		1,371,577		101,593		1,467,192		5,978		1,479,874		(6,704	)

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

			Three Months Ended								Three Months Ended				Twelve Months Ended
			Dec-02		Dec-01		+/-		%		Sep-02		%		Dec-02		Dec-01
Revenues

Rental revenue, net			47,142		45,132		2,010		4	%	46,055		2	%	182,180		189,528
	Free rent		853		693		160		23	%	1,483		- -42	%	5,567		4,633
	Amortization of free rent		(1,118	)	(760	)	(358	)	47	%	(793	)	41	%	(3,663	)	(3,087	)

Net free rent			(265	)	(67	)	(198	)	294	%	690		-138	%	1,904		1,546
Straight-line rent			1,191		1,916		(725	)	- -38	%	1,473		- -19	%	6,024		8,485
Allowance for S/L tenant credit loss			(634	)	(437	)	(197	)	45	%	(974	)	-35	%	(2,650	)	(1,898	)
Escalation and reimbursement revenues			6,694		6,705		(11	)	0	%	8,824		-24	%	28,324		30,361
Signage rent			564		568		(4	)	-1	%	191		194	%	1,488		1,522
Preferred equity investment income			1,975		1,931		44		2	%	1,960		1	%	7,780		2,561
Investment income			3,977		3,182		795		25	%	3,871		3	%	15,396		14,808
Other income			2,305		1,448		857		59	%	1,095		110	%	5,709		2,770

		Total Revenues, net	62,949		60,378		2,571		4	%	63,186		0	%	246,155		249,683
Equity in income/(loss) from affiliates			47		(71	)	118		-167	%	21		124	%	292		(1,054	)
Equity in income from unconsolidated joint ventures			5,270		2,587		2,683		104	%	5,784		-9	%	18,383		8,607


Operating expenses			14,529		12,789		1,740		14	%	15,997		-9	%	57,703		56,718
Ground rent			3,159		3,159		(0	)	0	%	3,159		0	%	12,637		12,579
Real estate taxes			7,653		7,078		575		8	%	7,688		0	%	29,451		29,826
Marketing, general and administrative			3,563		4,044		(481	)	-12	%	3,160		13	%	13,282		15,374

		Total Operating Expenses	28,904		27,070		1,834		7	%	30,004		-4	%	113,073		114,497
EBITDA			39,362		35,824		3,539		10	%	38,987		1	%	151,757		142,739
Interest			9,421		8,991		430		5	%	9,378		0	%	36,656		45,107
Depreciation and amortization			10,414		9,925		489		5	%	9,795		6	%	39,063		37,117

Income Before Minority Interest and Items			19,527		16,908		2,619		15	%	19,814		-1	%	76,038		60,515
Income from Discontinued Operations			803		369		434		118	%	789		2	%	2,838		2,479
Gain on sale of properties			—		(207	)	207		-100	%	—		0	%	—		4,956
Cumulative effect of accounting change			—		—		—		0	%	—		0	%	—		(532	)
Minority interest — OP			(1,164	)	(1,073	)	(91	)	9	%	(1,167	)	0	%	(4,545	)	(4,419	)

Net Income			19,166		15,997		3,169		20	%	19,436		-1	%	74,331		62,999
Dividends on preferred shares			2,300		2,300		0		0	%	2,300		0	%	9,200		9,200
Preferred stock accretion			123		114		9		8	%	123		0	%	490		458

Net Income Available For Common Shares			16,743		13,583		3,160		23	%	17,013		-2	%	64,641		53,341

Ratios

MG&A to Real Estate Revenue, net			6.51	%	7.51	%					5.62	%			6.11	%	6.70	%
MG&A to Total Revenue, net			5.66	%	6.70	%					5.00	%			5.40	%	6.16	%
Operating Expense to Real Estate Revenue, net			26.57	%	23.76	%					28.43	%			26.56	%	24.71	%
EBITDA to Real Estate Revenue, net			71.97	%	66.56	%					69.30	%			69.85	%	62.18	%
EBITDA before Ground Rent to Real Estate Revenue, net			77.75	%	72.44	%					74.91	%			75.66	%	67.66	%

COMPARATIVE STATEMENTS OF OPERATIONS

Unaudited
($000's omitted)

	Three Months Ended						Three Months Ended				Twelve Months Ended
	Dec-02		Dec-01		%		Sep-02		%		Dec-02		Dec-01
Per share data:

Earnings per Share
Net income per share (basic)	0.55		0.45		22	%	0.56		-2	%	2.14		1.98
Net income per share (diluted)	0.54		0.45		20	%	0.54		0	%	2.09		1.94
Operating Earnings
Net Income Available For Common Shares	16,743		13,583		23	%	17,013		-2	%	64,641		53,341
Income from Discontinued Operations	(803	)	(369	)	0	%	(789	)	2	%	(2,838	)	(2,479	)
Cumulative effect of accounting change	—		—		—		—		0	%	—		532
Gain on Sale	—		207		-100	%	—		0	%	—		(4,956	)

Operating Earnings-Basic	15,940		13,421		19	%	16,224		-2	%	61,803		46,438
Operating Earnings Per Share—Basic	0.53		0.46		15	%	0.53		0	%	2.03		1.72
Operating Earnings Per Share—Diluted	0.52		0.44		17	%	0.52		-1	%	2.01		1.71
Taxable Income
Net Income Available For Common Shares	16,743		13,583		23	%	17,013		-2	%	64,641		53,394
Book/Tax Depreciation Adjustment	2,349		7,255		-68	%	2,045		15	%	7,991		7,111
Book/Tax Gain Recognition Adjustment	0		321		-100	%	0		0	%	2,124		(602	)
Other Operating Adjustments	(1,058	)	(2,316	)	-54	%	(1,736	)	-39	%	(10,738	)	(11,544	)
C-corp Earnings	(49	)	195		-125	%	(21	)	133	%	(292	)	1,180

Taxable Income	17,985		19,038		-6	%	17,301		4	%	63,726		49,539
Dividend per share	0.465		0.4425		5	%	0.4425		5	%	1.793		1.605
Estimated payout of taxable income	91	%	82	%	11	%	91	%			100	%	106	%
Basic weighted average common shares	30,236		29,971		1	%	30,357		0	%	30,376		26,993
Diluted weighted average common shares and common share equivalents outstanding	37,764		32,813		15	%	37,811		0	%	37,786		29,808

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)

	December 31, 2002					December 31, 2001
	Total Property		SLG Property Interest			Total Property		SLG Property Interest
Land & land interests	217,312		115,980			129,471		65,858
Buildings & improvements	909,023		486,047			545,894		277,335

	1,126,335		602,027			675,365		343,193
Less accumulated depreciation	(38,937	)	(20,328	)		(19,683	)	(9,989	)

Net Real Estate	1,087,398		581,699			655,682		333,204
Cash and cash equivalents	26,168		13,597			14,415		7,281
Restricted cash	24,514		13,186			24,388		12,404
Tenant receivables, net of $237 reserve	4,039		2,163			2,958		1,540
Deferred rents receivable, net of reserve for tenant credit loss of $637 at 12/31/02	13,346		6,921			6,865		3,434
Deferred costs, net	13,146		7,035			9,598		4,848
Other assets	20,030		11,083			2,696		1,422

Total Assets	1,188,641		635,684			716,602		364,133

Mortgage loan payable	742,621		396,361		references pages 21 & 24	444,784		225,290
Derivative Instruments-fair value (1)	(47	)	(26	)		(782	)	(430	)
Accrued interest payable	2,243		1,167			1,696		838
Accounts payable and accrued expenses	20,653		12,690			12,730		6,543
Security deposits	5,167		2,566			5,495		2,658
Contributed Capital	418,004		222,926		references page 13	252,678		129,234

Total Liabilities and Equity	1,188,641		635,684			716,602		364,133

As of December 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 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.

(1): This analysis includes hedge instruments at fair value of $314K on 1250 Broadway and $205K on 1515 Broadway.

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

			Three Months Ended December 31, 2002					Three Months Ended December 31, 2001
			Total Property		SLG Property Interest		SLG Subsidiary	Total Property		SLG Property Interest		SLG Subsidiary
Revenues

Rental Revenue, net			35,115		18,894			21,646		11,591
	Free rent		125		46			717		439
	Amortization of free rent		19		20			(103	)	(56	)

Net free rent			144		66			614		383
Straight-line rent			2,054		1,096			947		514
Allowance for S/L tenant credit loss			(65	)	(28	)		(268	)	(152	)
Escalation and reimbursement revenues			7,077		3,766			3,257		1,750
Investment income			182		97			193		104
Other income			182		95			16		11

		Total Revenues, net	44,691		23,986			26,405		14,201
Expenses

Operating expenses			11,842		6,278			6,790		3,567
Real estate taxes			6,834		3,630			4,251		2,292

		Total Operating Expenses	18,676		9,908			11,041		5,859
GAAP NOI			26,080		14,106			15,632		8,494
Cash NOI			23,882		12,944			14,071		7,597
Interest			9,332		4,930			6,506		3,505
Depreciation and amortization			7,296		3,877			4,190		2,252

Net Income			9,386		5,270		references page 15	4,668		2,585
Plus: Real Estate Depreciation			6,343		3,359		references page 20	3,753		1,996
Plus: Extraordinary Loss			—		—		—	—		—
Plus: Management & Leasing Fees			—		—		4	—		—		234

Funds From Operations			15,729		8,629			8,421		4,581
FAD Adjustments:

Plus: Non Real Estate Depreciation			953		518			437		253
Plus: 2% Allowance for S/L Tenant Credit Loss			65		28			268		152
Less: Free and S/L Rent			(2,199	)	(1,162	)		(1,560	)	(897	)
Less: Second Cycle Tenant Improvement,			(416	)	(214	)		(1,162	)	(600	)
Less: Second Cycle Leasing Commissions			(179	)	(88	)		(550	)	(278	)
Less: Recurring Capex			(268	)	(136	)		(433	)	(220	)


FAD Adjustment			(2,043	)	(1,054	)		(3,000	)	(1,591	)


Operating Expense to Real Estate Revenue, net			26.68	%	26.35	%		25.66	%	25.05	%
GAAP NOI to Real Estate Revenue, net			58.75	%	59.21	%		59.07	%	59.66	%
Cash NOI to Real Estate Revenue, net			53.80	%	54.34	%		53.17	%	53.35	%

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

	Common Stock	Additional Paid-In Capital		Retained 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				74,331						74,331
Preferred Dividend and Accretion				(9,690	)					(9,690	)
Exercise of employee stock options	3	6,644								6,647
Cash distributions declared ($1.7925 per common share)				(54,267	)					(54,267	)
Comprehensive Income—Unrealized loss of derivative instruments								(7,829	)	(7,829	)
Redemption of operating partnership units	1	3,128								3,129
Deferred compensation plan		(537	)			534				(3	)
Amortization of deferred compensation						1,419				1,419

Balance at December 31, 2002	304	592,585		50,058		(5,562	)	(10,740	)	626,645

RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION

	Common Stock		OP Units		Stock Options	Sub-total	Preferred Stock	Twelve Months Diluted Shares
Balance at December 31, 2001	29,978,304		2,271,404		—	32,249,708	—	32,249,708
YTD share activity	443,389		(126,214	)		317,175		317,175

Balance at December 31, 2002—Basic	30,421,693		2,145,190		—	32,566,883	—	32,566,883
Dilution Factor	(186,195	)	63,138		642,909	519,852	4,698,900	5,218,752

Balance at December 31, 2002—Diluted	30,235,498		2,208,328		642,909	33,086,735	4,698,900	37,785,635

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

		Three Months Ended Dec 31,						Three Months Ended Sept 30,				Twelve Months Ended Dec 31,
		2002		2001		% Change		2002		% Change		2002		2001		% Change
Funds from operations
Net Income before Minority Interests		19,527		16,908		15	%	19,814		-1	%	76,038		60,515		26	%
Add:	Depreciation and Amortization	10,414		9,925		5	%	9,795		6	%	39,062		37,117		5	%
	FFO from Discontinued Operations	861		850		1	%	927		-7	%	3,622		3,863		-6	%
	FFO adjustment for Joint Ventures	3,359		1,996		68	%	3,072		9	%	11,025		6,575		68	%
Less:	Dividends on Preferred Shares	2,300		2,300		0	%	2,300		0	%	9,200		9,200		0	%
	Non Real Estate Depreciation/Amortization of Finance Costs	1,235		1,096		13	%	1,046		18	%	4,318		4,456		-3	%

	Funds From Operations—Basic	30,626		26,283		17	%	30,262		1	%	116,229		94,414		23	%
	Funds From Operations—Basic per Share	0.94		0.82		15	%	0.93		1	%	3.58		3.22		11	%
Add:	Dividends on Preferred Shares	2,300		2,300		0	%	2,300		0	%	9,200		9,200		0	%

	Funds From Operations—Diluted	32,926		28,583		15	%	32,562		1	%	125,429		103,614		21	%
	Funds From Operations—Diluted per Share	0.87		0.76		14	%	0.86		1	%	3.32		3.00		11	%
Funds Available for Distribution

FFO		32,926		28,583		15	%	32,562		1	%	125,429		103,614		21	%
Add:	Non Real Estate Depreciation	1,235		1,102		12	%	1,046		18	%	4,325		4,474		- -3	%
	2% Allowance for S/L Tenant Credit Loss	634		443		43	%	974		-35	%	2,666		1,928		38	%
	Straight-line Ground Rent	60		160		-63	%	60		0	%	440		928		-53	%
	Non-cash Deferred Compensation	425		349		22	%	178		138	%	1,419		1,396		2	%
Less:	FAD adjustment for Joint Ventures	1,054		1,540		-32	%	856		23	%	4,994		8,141		-39	%
	Straight-line Rental Income	1,191		1,956		-39	%	1,473		-19	%	6,086		8,625		-29	%
	Free Rent—Occupied (Net of Amortization, incl. First Cycle)	(265	)	(88	)	201	%	690		-138	%	1,924		1,480		30	%
	Amortization of Mortgage Investment Discount	98		175		-44	%	97		1	%	388		(4,497	)	-109	%
	Second Cycle Tenant Improvements	3,134		4,393		-29	%	6,691		-53	%	14,857		4,364		240	%
	Second Cycle Leasing Commissions	730		1,004		-27	%	2,711		-73	%	5,046		5,554		-9	%
	Recurring Building Improvements	2,329		1,411		65	%	232		903	%	2,750		2,956		-7	%

Funds Available for Distribution		27,009		20,246		33	%	22,070		22	%	98,234		85,717		15	%
	Diluted per Share	0.72		0.54		33	%	0.58		23	%	2.60		2.48		5	%
First Cycle Leasing Costs
	Tenant Improvement	—		74		-100	%	—		0	%	92		95		-4	%
	Leasing Commissions	—		—		0	%	—		0	%	279		159		75	%

Funds Available for Distribution after First Cycle Leasing Costs		27,009		20,172		34	%	22,070		22	%	97,864		85,463		15	%
Funds Available for Distribution per Diluted Weighted Average Unit and Common Share		0.72		0.54		33	%	0.58		23	%	2.59		2.48		5	%
Redevelopment Costs		3,318		4,708		- -30	%	2,245		48	%	9,099		13,869		- -34	%

Payout Ratio of Funds From Operations		53.05	%	58.07	%			51.38	%			54.00	%	53.44	%
Payout Ratio of Funds Available for Distribution Before First Cycle		64.67	%	81.99	%			75.81	%			68.95	%	64.61	%

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

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

Common Equity:
	Common Shares Outstanding	30,422		29,978		30,376		30,307
	OP Units Outstanding	2,145		2,271		2,166		2,213

	Total Common Equity (Shares and Units)	32,567		32,249		32,542		32,520
	Share Price (End of Period)	31.60		30.71		30.74		35.65

	Equity Market Value	1,029,101		990,379		1,000,329		1,159,338
Preferred Equity at Liquidation Value:		115,000		115,000		115,000		115,000
Real Estate Debt

	Property Level Mortgage Debt	388,404		409,900		395,800		397,371
	Company's portion of Joint Venture Mortgages	396,361		225,290		396,513		396,650
	Outstanding Balance on—Term Loan	100,000		—		—		—
	Outstanding Balance on—Secured Credit Line	—		34,931		30,931		33,931
	Outstanding Balance on—Unsecured Credit Line	74,000		60,000		143,000		164,000

	Total Combined Debt	958,765		730,121		966,244		991,952
	Total Market Cap (Debt & Equity)	2,102,866		1,835,500		2,081,572		2,266,290
Availability

Senior Unsecured Line of Credit
	Maximum Line Available	300,000		300,000		300,000		300,000
	Letters of Credit issued	15,000		5,000		5,000		5,000
	Outstanding Balance	74,000		60,000		143,000		164,000

	Net Line Availability	211,000		235,000		152,000		131,000

Wells Fargo Term Loan
	Maximum Available	150,000		—		—		—
	Outstanding Balance	100,000		—		—		—

	Net Availability	50,000		—		—		—

Secured Line of Credit
	Maximum Line Available	75,000		75,000		75,000		75,000
	Outstanding Balance	—		34,931		30,931		33,931

	Net Line Availability	75,000		40,069		44,069		41,069

	Total Availability under Lines of Credit	336,000		275,069		196,069		172,069

Ratio Analysis

Consolidated Basis
	Debt to Market Cap Ratio	32.96	%	31.35	%	33.81	%	31.84	%
	Debt to Gross Real Estate Book Ratio (1)	58.37	%	48.34	%	56.45	%	56.97	%
	Secured Real Estate Debt to Secured Assets Gross Book (1)	66.18	%	77.68	%	67.68	%	68.48	%
	Unsecured Debt to Unencumbered Assets-Gross Book Value (1)	20.30	%	15.92	%	39.29	%	42.44	%
	Secured Line of Credit to Structured Finance Assets (1)	0.00	%	18.52	%	15.89	%	26.58	%
Joint Ventures Allocated
	Combined Debt to Market Cap Ratio	45.59	%	39.78	%	46.42	%	43.77	%
	Debt to Gross Real Estate Book Ratio (1)	61.41	%	53.24	%	60.34	%	60.58	%
	Secured Debt to Secured Assets Gross Book (1)	66.24	%	51.31	%	67.13	%	67.50	%
Supplemental Package Information

(1): Excludes property level capital obligations.

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

		Three Months Ended December 31,								Three Months Ended September 30,
		2002		2001		+/-		% Change		2002		+/-		% Change
Funds from operations		30,626		26,283		4,343		17	%	30,262		364		1	%

Less:	Non - Building Revenue	11,452		8,458		2,994		35	%	9,986		1,466		15	%
Plus:	2% Reserve for Tenant Credit Loss	634		443		191		43	%	975		(341	)	- -35	%
	Interest Expense (incl. Capital Lease Int.)	9,809		9,384		425		5	%	9,776		33		0	%
	Non Real Estate Depreciation	1,235		1,102		133		12	%	1,046		189		18	%
	MG&A Expense	3,563		4,044		(481	)	-12	%	3,160		403		13	%
	Preferred Dividend	2,300		2,300		—		0	%	2,300		0		0	%

	GAAP NOI	36,715		35,098		1,617		5	%	37,533		(818	)	-2	%
Cash adjustments

Less:	Free Rent (Net of Amortization)	66		295		(229	)	-78	%	765		(699	)	-91	%
	Straightline Revenue Adjustment	1,096		2,470		(1,374	)	-56	%	2,495		(1,399	)	-56	%
Plus:	Ground Lease Straight-line Adjustment	160		160		—		0	%	60		100		167	%

	Cash NOI	35,713		32,493		3,220		10	%	34,333		1,380		4	%
	Real Estate Revenue, net	57,136		56,167		969		2	%	58,996		(1,860	)	-3	%
Operating margins

	GAAP NOI/Real Estate Revenue, net	64.26	%	62.49	%					63.62	%
	Cash NOI/Real Estate Revenue, net	62.50	%	57.85	%					58.20	%
	GAAP NOI before Ground Rent/Real Estate Revenue, net	69.79	%	68.11	%					68.97	%
	Cash NOI before Ground Rent/Real Estate Revenue, net	67.75	%	63.19	%					63.45	%
Components of debt and fixed charges

	Interest on Fixed Rate Loans	5,921		5,762		159		3	%	5,509		412		7	%
	Interest on Floating Rate Loans	3,888		3,622		266		7	%	4,266		(378	)	-9	%
	Fixed Amortization Principal Payments	1,659		1,493		166		11	%	1,402		257		18	%

	Total Debt Service	11,468		10,877		591		5	%	11,177		291		3	%
	Payments under Ground Lease Arrangements	2,999		2,999		—		0	%	3,099		(100	)	-3	%
	Preferred Stock Dividend	2,300		2,300		—		0	%	2,300		—		0	%

	Total Fixed Charges	16,767		16,176		591		4	%	16,576		191		1	%

Adjusted EBITDA		46,601		39,907						44,437
Interest Coverage Ratio		4.75		4.25						4.55
Debt Service Coverage ratio		4.06		3.67						3.98
Fixed Charge Coverage ratio		2.78		2.47						2.68

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

		Three Months Ended December 31,							Three Months Ended September 30,
		2002		2001		+/-		% Change	2002		+/-		% Change
Revenues

	Rental Revenue	41,401		40,852		549		1%	41,728		(327	)	-1%
	Credit Loss	(411	)	(402	)	(9	)	2%	(686	)	275		-40%
	Signage Rent	448		433		15		3%	191		257		134%
	Escalation & Reimbursement Revenues	5,966		5,354		612		11%	7,045		(1,079	)	-15%
	Investment & Other Income	897		434		463		107%	412		485		118%

	Total Revenues	48,301		46,671		1,630		3%	48,690		(389	)	-1%
Expenses

	Operating Expense	11,788		10,317		1,471		14%	12,875		(1,087	)	-8%
	Ground Rent	3,159		3,159		0		0%	3,159		0		0%
	Real Estate Taxes	6,606		6,082		524		9%	6,610		(4	)	0%

	Total Operating Expenses	21,553		19,558		1,995		10%	22,644		(1,091	)	-5%
	EBITDA	26,748		27,113		(365	)	- -1%	26,046		702		3%
	Interest	6,309		6,443		(134	)	- -2%	6,129		180		3%
	Depreciation & Amortization	7,866		7,465		401		5%	7,364		503		7%

	Income Before Minority Interest	12,573		13,205		(632	)	-5%	12,553		20		0%
Plus:	Real Estate Depreciation & Amortization	7,517		7,247		270		4%	7,125		392		5%

	FFO	20,090		20,452		(362	)	-2%	19,678		412		2%
Less:	Non—Building Revenue	816		401		415		103%	383		433		113%
Plus:	Reserve for Tenant Credit Loss	411		402		9		2%	686		(275	)	- -40%
	Interest Expense	6,309		6,443		(134	)	-2%	6,129		180		3%
	Non Real Estate Depreciation	350		217		133		61%	239		111		46%

	GAAP NOI	26,344		27,113		(769	)	- -3%	26,349		(5	)	0%
Cash Adjustments

Less:	Free Rent (Net of Amortization)	(272	)	(60	)	(212	)	350%	671		(943	)	-140%
	Straightline Revenue Adjustment	1,016		1,650		(634	)	-38%	1,284		(267	)	-21%
Plus:	Ground Lease Straight-line Adjustment	160		160		—		0%	60		100		167%

	Cash NOI	25,760		25,683		77		0%	24,454		1,306		5%
Operating Margins

	GAAP NOI to Real Estate Revenue, net	55.00	%	58.09	%				53.78	%
	Cash NOI to Real Estate Revenue, net	53.78	%	55.03	%				49.91	%
	GAAP NOI before Ground Rent/Real Estate Revenue, net	61.60	%	64.86	%				60.23	%
	Cash NOI before Ground Rent/Real Estate Revenue, net	60.04	%	61.46	%				56.24	%

DEBT SUMMARY SCHEDULE
Unaudited
($000's ommitted)

			Principal O/S Outstanding 12/31/02	Coupon		Fixed Annual Payment	2003 Principal Repayment	Maturity Date	Due at Maturity	Earliest Contractual Prepayment Date
Fixed rate debt

Secured fixed Rate Debt
	50 West 23rd Street		20,901	7.33	%	1,539	286	8/1/07	19,234	Aug-01
	CIBC (against 1414 Ave. of Americas and 70 W. 36th St.)		25,687	7.90	%	2,429	363	5/1/09	12,196	Apr-03
	711 Third Avenue		48,446	8.13	%	4,420	410	9/10/05	47,247	Jun-04
	555 West 57th Street (Libor collar of 6.10% — 6.58% + 200bps)		68,254	8.10	%	5,604	—	11/4/04	66,959	Open
	420 Lexington Avenue		123,107	8.44	%	12,463	1,771	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)		14,831	8.32	%	1,299	63	5/10/25	5,466	Open

			366,226	7.76	%	31,583	2,893
Unsecured fixed rate debt
	Wells Fargo Unsecured Term Loan (Libor swap of 1.64% + 150bps) (1)		100,000	3.14	%	3,140	—	11/5/07	100,000	Nov-05
		Total Fixed Rate Debt/Wtd Avg	466,226	6.77	%	34,723	2,893
Floating rate Debt

Secured floating rate debt
	Structured Finance Loan (Libor + 100bp)		22,178	2.54	%		—	11/1/03	22,178	Nov-03	(4)
	Secured Line of Credit (Libor + 150bps)		—	3.35	%		—	12/22/04	0	Open

		Total Floating Rate Secured Debt/Wtd Avg	22,178	2.54	%
Unsecured floating rate debt
	Senior Unsecured Line of Credit (Libor + 150 bps)		74,000	3.14	%		—	6/27/03	74,000	Open

		Total Floating Rate Unsecured Debt/Wtd Avg	74,000	3.14	%
Total Floating Rate Debt Outstanding			96,178	3.00	%
		Total Debt/Wtd Avg	562,404	6.13	%

Weighted Average Balance & Interest Rate			571,627	6.17	%

Summary of Joint Venture Debt

			Principal O/S
			Principal O/S				Fixed Annual Payment	2003 Principal Repayment	Maturity Date	Due at Maturity	Earliest Contractual Prepayment Date
			Gross Principal	SLG Share	Coupon		Fixed Annual Payment	2003 Principal Repayment	Maturity Date	Due at Maturity	Earliest Contractual Prepayment Date
	180 Madison JV		31,721	15,830	7.81	%	2,788	300	12/1/05	30,778	Open
	1250 Broadway (Libor Swap of 4.03% + 250bp) (2)		85,000	46,750	6.53	%	5,551	—	10/1/04	85,000	Open
	1515 Broadway (Libor + 191 bps) (3)		335,000	184,250	4.28	%	—	—	5/14/04	184,250	Open
	321 W 44th JV (Libor + 250bps)		22,000	7,700	4.15	%	—	—	4/30/03	7,700	Open
	1 Park Avenue (Libor + 150 bps)		150,000	82,500	3.04	%	—	—	1/10/04	82,500	Open
	100 Park Avenue JV		118,900	59,331	8.00	%	9,733		9/1/10	107,488	Open

		Total Joint Venture Debt/Wtd Avg	742,621	396,361	4.98	%	18,071	300

Weighted Average Balance & Interest Rate with SLG JV debt				968,039	5.68	%

(1): Libor swap on debt is stepped. In Janary 4, 2004 base swap increased to 4.06% for balance of the term. The weighted libor base is 3.56%.
(2): Swap on 1250 mortgage executed on SLG portion only through January 11, 2005.
(3): 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.
(4): Extension option exercised November 2002.

STRUCTURED FINANCE
($000's omitted)

	Assets Outstanding		Wtd Average Assets during quarter	Wtd Average Yield during quarter		Current Yield		Libor Rate
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	%	12.40	%	1.82	%
Originations/Accretion(1)	500
Preferred Equity	—
Redemptions	(49,569	)

12/31/02	145,640		194,693	12.51	%(2)	12.68	%(3)	1.35	%(4)

(1): Accretion includes original issue discounts and compounding investment income.
(2): As of December 31, 2002, net of seller financing, the weighted yield is 12.35%.
(3): As of December 31, 2002, net of seller financing, the current yield is 12.52%.
(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(2)		Current Yield(3)
Junior Mortgage Participation		$	43,150	$	250,777	$	130	13.58	%	13.82	%
Mezzanine Debt		$	35,095	$	140,600	$	198	12.07	%	13.01	%
Preferred Equity		$	67,395	$	289,500	$	208	12.33	%	12.34	%
	Balance as of 12/31/02	$	145,640	$	680,877	$	183	12.51	%	12.68	%

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 December 31, 2002, net of seller financing, the weighted yield is 12.35%.
(3): As of December 31, 2002, net of seller financing, the current yield is 12.52%.

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

Property		2003 Scheduled Cash Payment	2004 Scheduled Cash Payment	2005 Scheduled Cash Payment	2006 Scheduled Cash Payment	Deferred Land Lease Obligations(1)	Year of Maturity
Operating Leases

673 First Avenue		3,010	3,010	3,108	3,304	13,106	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	1,520	2032

	Total	11,982	11,982	12,080	12,276	14,626

Capitalized Lease

673 First Avenue		1,290	1,290	1,322	1,416	16,016	2037

(1): Per the balance sheet at December 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.

SELECTED PROPERTY DATA

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

1140 Avenue of the Americas		Rockefeller Center	Leasehold Interest	191,000	2	97.8	95.5	95.5	95.5	95.5	7,466,239	4	3	25
1372 Broadway		Garment	Fee Interest	508,000	4	97.9	97.8	97.2	97.2	99.3	14,728,918	7	5	26
1414 Avenue of the Americas		Rockefeller Center	Fee Interest	111,000	1	94.3	96.5	97.6	97.6	96.2	4,015,170	2	1	23
1466 Broadway		Times Square	Fee Interest	289,000	3	88.6	86.2	84.4	84.9	88.9	9,584,754	5	3	96
17 Battery Place — North		World Trade/ Battery	Fee Interest	419,000	4	100.0	100.0	100.0	100.0	100.0	9,342,932	4	3	7
286 Madison Avenue		Grand Central South	Fee Interest	112,000	1	93.0	92.6	94.7	97.9	100.0	3,423,402	2	1	36
290 Madison Avenue		Grand Central South	Fee Interest	37,000	1	100.0	100.0	100.0	100.0	100.0	1,418,067	1	0	4
292 Madison Avenue		Grand Central South	Fee Interest	187,000	2	99.7	99.7	99.7	98.3	100.0	6,510,761	3	2	19
420 Lexington Ave (Graybar)		Grand Central North	Operating Sublease	1,188,000	10	95.0	93.2	95.8	94.0	94.8	44,836,837	22	15	241
440 Ninth Avenue		Garment	Fee Interest	339,000	3	92.3	97.1	86.7	86.7	91.1	7,436,062	4	3	12
470 Park Avenue South		Park Avenue South/ Flatiron	Fee Interest	260,000	2	99.7	99.3	99.3	98.8	99.4	7,681,610	4	3	25
555 West 57th		Midtown West	Fee Interest	941,000	8	100.0	100.0	100.0	100.0	100.0	20,303,719	10	7	21
673 First Avenue		Grand Central South	Leasehold Interest	422,000	4	99.8	99.8	99.8	99.8	99.8	13,286,134	6	5	15
70 West 36th Street		Garment	Fee Interest	151,000	1	92.3	93.1	94.3	99.2	98.5	3,560,395	2	1	31
711 Third Avenue		Grand Central North	Operating Sublease (1)	524,000	4	99.1	100.0	100.0	100.0	100.0	19,918,348	10	7	19

	Subtotal / Weighted Average			5,679,000	50	97.1	96.9	96.8	96.5	97.4	173,513,349	83	58	600
Adjustments

110 East 42nd Street		Grand Central	Fee Interest	181,000	1	98.6	97.9	97.8	99.8	99.9	6,083,404	3	2	27
50 West 23rd Street		Chelsea	Fee Interest	333,000	3	97.2	97.2	97.2	97.2	99.2	8,055,542	4	3	16
317 Madison Avenue		Grand Central	Fee Interest	450,000	4	93.4	94.3	94.5	94.0	94.6	13,318,569	6	5	100
1370 Broadway		Garment	Fee Interest	255,000	2	89.5	92.3	92.3	98.0	97.3	6,991,993	3	2	28

	Subtotal / Weighted Average			1,219,000	10	94.4	95.2	95.3	96.6	97.2	34,449,508	17	12	171
Total/ Weighted Average Properties 100% Owned				6,898,000	60	96.6	96.6	96.5	96.6	97.4	207,962,857	100	70	771
PROPERTIES <100% OWNED Unconsolidated

180 Madison Avenue—50%		Grand Central South	Fee Interest	265,000	2	82.0	82.1	87.3	89.7	92.8	6,845,687	1	50
1 Park Avenue—55%		Grand Central South	Various Interests	913,000	8	98.6	98.6	98.4	98.3	98.3	34,116,955		7	18
1250 Broadway—55%		Penn Station	Fee Interest	670,000	6	98.5	99.3	99.3	99.5	99.5	19,503,925		4	26
100 Park Avenue—50%		Grand Central South	Fee Interest	834,000	7	99.0	100.0	100.0	100.0	100.0	30,273,546		5	36
1515 Broadway—55%		Times Square	Fee Interest	1,750,000	15	98.5	98.3	98.5			62,947,201		12	17
321 West 44th Street—35%		Times Square	Fee Interest	203,000	2	90.6	90.2	97.7	97.4	97.2	4,427,571		1	27

	Subtotal/Weighted Average			4,635,000	40	97.3	97.5	98.2	98.1	98.4	158,114,885		30	174

Grand Total/Weighted Average				11,533,000	100	96.9	97.0	97.2	97.0	97.7	366,077,742			945
Grand Total—SLG share of Annualized Rent											292,147,449		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	2004, 2006, 2008, 2009, 2013	1,280,108	$	53,267,448	$	41.61	14.6	%	$	29,297,096	10.0	%
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	2005, 2006 & 2011	254,323	$	7,093,788	$	27.89	1.9	%	$	3,901,583	1.3	%
BMW of Manhattan, Inc.	555 West 57th Street	2012	227,782	$	3,072,360	$	13.49	0.8	%	$	3,072,360	1.1	%
Philip Morris Managament Corp	100 Park Avenue	2007	175,887	$	6,771,024	$	38.50	1.8	%	$	3,378,741	1.2	%
City University of New York-CUNY	555 West 57th Street	2010, 2011, & 2015	171,732	$	4,703,976	$	27.39	1.3	%	$	4,703,976	1.6	%
J&W Seligman & Co., Inc.	100 Park Avenue	2009	168,390	$	5,306,280	$	31.51	1.4	%	$	2,647,834	0.9	%
C.B.S., Inc.	555 West 57th Street	2003 & 2010	165,214	$	3,756,864	$	22.74	1.0	%	$	3,756,864	1.3	%
Segal Company	1 Park Avenue	2009	157,944	$	5,722,068	$	36.23	1.6	%	$	3,147,137	1.1	%
Loews Corp	1 Park Avenue	2002	155,765	$	6,720,864	$	43.15	1.8	%	$	3,696,475	1.3	%
Metro North Commuter Railroad Co.	420 Lexington Avenue	2008 & 2016	134,687	$	3,928,716	$	29.17	1.1	%	$	3,928,716	1.3	%
St. Luke's Roosevelt Hospital	555 West 57th Street	2014	133,700	$	3,205,656	$	23.98	0.9	%	$	3,205,656	1.1	%
Coty Inc.	1 Park Avenue	2015	102,654	$	3,842,592	$	37.43	1.0	%	$	2,113,426	0.7	%
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	$	2,761,752	$	27.14	0.8	%	$	2,761,752	0.9	%
Ketchum, Inc.	711 Third Avenue	2015	100,876	$	4,343,568	$	43.06	1.2	%	$	4,343,568	1.5	%
CHF Industries	1 Park Avenue	2005	100,000	$	3,512,460	$	35.12	1.0	%	$	1,931,853	0.7	%
New York Presbyterian Hospital	555 West 57th Street & 673 First Avenue	2006 & 2009	99,650	$	2,734,932	$	27.45	0.7	%	$	2,734,932	0.9	%
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	$	2,703,552	$	29.06	0.7	%	$	2,703,552	0.9	%
Crain Communications Inc.	711 Third Avenue	2009	90,531	$	3,455,772	$	38.17	0.9	%	$	3,455,772	1.2	%
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	$	3,011,532	$	35.31	0.8	%	$	1,656,343	0.6	%
Parade Publications, Inc.	711 Third Avenue	2010	82,444	$	2,491,908	$	30.23	0.7	%	$	2,491,908	0.9	%
UNICEF	673 First Avenue	2003 & 2013	81,100	$	2,695,632	$	33.24	0.7	%	$	2,695,632	0.9	%

TOTAL			4,572,544		146,377,764	$	32.01	40.0	%	$	100,940,366	34.6	%
Wholly Owned Portfolio + Allocated JV Properties			11,533,000	$	366,077,742	$	31.74			$	292,147,449

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

FOURTH QUARTER 2002—LEASING ACTIVITY
Available Space

Activity Type	Building Address	# of Leases	Usable SF	Rentable SF	*Rent/Rentable SF ($'s)**
Vacancy at 9/30/02			349,286
Expiring Space

Office
	317 Madison Avenue	5	5,455	5,884	28.92
	1515 Broadway	1	640	640	20.00
	1370 Broadway	2	11,712	11,712	34.18
	180 Madison Avenue	8	10,289	11,626	28.65
	1250 Broadway	2	8,136	8,136	53.00
	100 Park Avenue	2	7,693	8,674	28.44
	286 Madison Avenue	2	5,005	5,973	27.51
	292 Madison	2	17,488	20,226	21.50
	1414 Ave of Americas	1	2,521	3,300	27.01
	70 West 36th Street	1	2,354	2,354	23.00
	50 West 23rd Street	1	14,407	21,200	22.85
	321 W. 44th Street	2	2,259	2,259	14.04
	711 Third Avenue	1	4,683	4,683	33.00
	440 Ninth Avenue	1	16,000	16,000	16.51
	1466 Broadway	14	12,140	14,982	37.19
	420 Lexington Avenue	11	27,866	32,280	30.79

	Total/Weighted Average	56	148,648	169,929	28.38
Retail
	1515 Broadway	1	375	375	131.03

	Total/Weighted Average	1	375	375	131.03
Storage
	317 Madison	1	51	51	12.00

	Total/Weighted Average	1	51	51	12.00
Move Outs

Office
	1466 Broadway	3	3,534	4,830	31.67
	420 Lexington Avenue	3	9,262	13,229	49.07

	Total/Weighted Average	6	12,796	18,059	44.42
Retail
	1370 Broadway	1	400	400	33.00

	Total/Weighted Average	1	400	400	33.00
Storage
	70 West 36th Street	1	4,431	5,922	12.45

	Total/Weighted Average	1	4,431	5,922	12.45
Evicted Tenants

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

Office
	Total/Weighted Average	—	—	—	—
Available Space

	Office	62	161,444	187,988	26.20
	Retail	2	775	775
	Storage	2	4,482	5,973	118.38

	Total	66	166,701	194,736	28.25
Available Space			515,987
* Escalated Rent is calculated as Total Annual Income less Electric Charges.

FOURTH QUARTER—2002 LEASING ACTIVITY
Leased Space

Activity Type	Building Address	# of Leases	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 12/31/02				515,987
Renewing Tenants

Office
	317 Madison Avenue	1	2.6	876	1,272	33.00	28.91	—	—
	1370 Broadway	1	5.0	4,999	6,682	30.00	24.34	—	1.0
	180 Madison Avenue	3	0.9	3,115	3,964	39.53	27.30	—	1.0
	50 West 23rd Street	1	10.0	14,407	21,200	27.00	22.85	5.00	—
	1466 Broadway	2	3.0	1,163	1,709	37.23	37.00	4.11	1.0
	420 Lexington Avenue	2	0.7	2,840	4,093	39.11	24.01	0.63	—

	Total/Weighted Average	10	6.7	27,400	38,920	30.71	24.50	2.97	0.3
Storage
	Total/Weighted Average
Relocating Tenants

Office
	Total/Weighted Average	—	—	—	—	—	—	—	—
Expansion Tenants

Retail
	Total/Weighted Average	—	—	—	—	—	—	—	—
New Tenants Replacing Old Tenants

Office
	180 Madison Avenue	3	4.2	3,907	5,745	37.98	25.81	9.67	3.0
	286 Madison Avenue	3	5.6	5,455	7,792	34.11	36.71	14.74	9.5
	70 West 36th Street	1	6.0	1,143	1,633	28.00	21.00	32.56	2.0
	470 Park Avenue South	1	5.1	808	1,156	33.00	26.32	23.00	1.0
	1140 Sixth Avenue	1	10.0	4,275	6,488	37.00	27.00	45.30	1.0
	110 East 42nd Street	1	3.0	1,400	2,000	38.00	22.61	20.00	—
	321 West 44th Street	1	6.0	2,975	4,320	13.82	13.82	—	2.0
	1466 Broadway	3	2.0	1,916	2,535	37.11	29.93	3.81	2.0
	420 Lexington Avenue	12	11.1	41,763	56,671	35.32	28.96	38.71	20.2

	Total/Weighted Average	26	9.2	63,642	88,340	34.40	28.26	31.56	1.6
Retail
	1515 Broadway	1	1.1	4,000	4,000	217.50	121.00	—	—

	Total/Weighted Average	1	1.1	4,000	4,000	217.50	121.00	—	—
Storage
	70 West 36th Street	1	10.6	4,431	6,336	12.45	12.45	—	—
	420 Lexington Avenue	1	10.0	583	852	17.50	20.00	—	—

	Total/Weighted Average	2	10.5	5,014	7,188	19.79	13.34	—	—

FOURTH QUARTER—2002 LEASING ACTIVITY
Leased Space

Activity Type	Building Address	# of Leases	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
	180 Madison Avenue	2	2.4	2,138	2,138	31.49	—	6.9	1.0
	1466 Broadway	7	4.9	12,160	16,572	33.24	—	24.00	11.0
	420 Lexington Avenue	1	5.0	3,245	4,968	40.00	—	35.93	2.0

	Total/Weighted Average	10	4.7	17,543	23,678	34.65	—	24.96	1.4
Retail
	Total/Weighted Average	—	—	—	—	—	—	—	—
Storage
	555 West 57th Street	1	3.0	90	129	21.00	—	—	—
	1140 Sixth Avenue	1	10.0	210	328	10.50	—	—	—
	1372 Broadway	1	2.8	315	506	15.00	—	—	—

	Total/Weighted Average	3	5.3	615	963	14.27	—	—	—
Leased Space

Office		46	7.9	108,585	150,938	33.49	27.11	23.15	1.2
Retail		1	1.1	4,000	4,000	217.50	121.00	—	—
Storage		5	9.9	5,629	8,151	19.13	11.77	—	—

	Total	52	7.8	118,214	163,089	37.29	29.11	21.43	1.1
Sold Vacancies
Sub-Total Available Space @ 12/31/02				397,773
Holdover Tenants

	317 Madison	2	0	597	878	33.66	24.68	—	—
	1515 Broadway	1	0	640	640	20.00	20.00	—	—
	180 Madison Avenue	1	0	817	817	27.00	27.00	—	—
	1250 Broadway	1	0	2,091	3,072	42.00	42.00	—	—
	292 Madison Avenue	2	0	17,488	20,226	21.50	21.50	—	—
	1466 Broadway	7	0	7,301	8,704	30.28	30.28	—	—
	420 Lexington Avenue	3	0	9,929	9,929	28.52	28.52	—	—

		17	0	38,863	44,266	26.55	26.37	—	—
Total Available Space @ 12/31/02				358,910

FOURTH QUARTER—2002 LEASING ACTIVITY
Leased Space

Activity Type	Building Address	# of Leases	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
	317 Madison	1	0.8	1,534	2,325	21.77	20.13	—	—
	292 Madison	1	10.1	4,200	5,652	36.00	29.00	15.00	1.0
	70 West 36th Street	1	7.0	4,267	6,095	24.85	21.00	—	—

		3	7.2	10,001	14,072	28.82	24.07	6.02	0.3
Retail
		—	—	—	—	—	—	—	—
Storage
		—	—	—	—	—	—	—	—
Renewals

	Expired/Renewed Office	10	6.7	27,400	38,920	30.71	24.50	2.97	0.3
	Early Renewals Office	3	7.2	10,001	14,072	28.82	24.07	6.02	0.3
	Early Renewals Retail	0	0.0	—	—	—	—	—	—
	Early Renewals Storage	0	0.0	—	—	—	—	—	—

	Total	13	6.8	37,401	52,992	30.21	24.39	3.78	0.3

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

ANNUAL LEASE EXPIRATIONS
Consolidated 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 2003 Weighted Average Asking Rent $/psf
In 1st Quarter 2003	52	135,693	2.00	%	$4,047,420	$29.83	$35.73
In 2nd Quarter 2003	41	168,887	2.49	%	$5,128,800	$30.37	$35.97
In 3rd Quarter 2003	39	143,294	2.12	%	$4,980,876	$34.76	$34.15
In 4th Quarter 2003	34	241,669	3.57	%	$6,441,384	$26.65	$31.93

Total 2003	166	689,543	10.18	%	$20,598,480	$29.87	$34.13
2004	139	621,181	9.17	%	$20,140,104	$30.05	$32.56
2005	134	580,961	8.58	%	$19,012,176	$32.30	$33.30
2006	72	461,522	6.81	%	$14,399,268	$32.25	$32.54
2007	81	386,694	5.71	%	$12,982,068	$32.20	$34.19
2008	44	373,892	5.52	%	$12,672,539	$30.60	$32.94
2009	39	567,345	8.38	%	$17,913,996	$33.28	$32.71
2010	46	999,227	14.75	%	$31,145,904	$31.41	$33.39
2011	23	300,169	4.43	%	$12,415,944	$30.39	$35.88
2012	22	825,688	12.19	%	$16,729,404	$40.70	$28.27
Thereafter	32	967,953	14.29	%	$29,952,974	$25.26	$33.07

	798	6,774,175	100.00	%	$207,962,857	$30.70	$32.73

*: Includes month to month holdover tenants that expired prior to 12/31/02
**: Tenants may have multiple leases.
***: Represents current in place annualized rent allocated by year of maturity.

ANNUAL LEASE EXPIRATIONS
Joint Venture 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 2003			16	386,402	8.57	%	$15,035,424	$38.91	$38.79
In 2nd Quarter 2003			5	29,272	0.65	%	$1,046,064	$35.74	$43.85
In 3rd Quarter 2003			6	29,206	0.65	%	$875,736	$29.98	$38.16
In 4th Quarter 2003			9	45,389	1.01	%	$2,699,784	$59.48	$41.77

	Total 2003		36	490,269	10.88	%	$19,657,008	$40.09	$39.33

		2004	19	152,935	3.39	%	$5,177,844	$30.05	$41.02
		2005	27	401,390	8.90	%	$11,308,716	$32.30	$42.53
		2006	26	368,543	8.18	%	$10,560,744	$32.25	$38.53
		2007	15	286,432	6.35	%	$9,981,264	$32.20	$44.37
		2008	15	341,100	7.57	%	$10,881,612	$30.60	$41.80
		2009	16	524,865	11.64	%	$18,136,236	$33.28	$42.45
		2010	14	1,281,675	28.43	%	$51,404,448	$31.41	$45.71
		2011	5	101,393	2.25	%	$4,073,772	$30.39	$34.63
		2012	7	147,685	3.28	%	$3,720,636	$40.70	$39.52
	Thereafter		11	411,384	9.13	%	$13,212,605	$25.26	$41.28

			191	4,507,671	100.00	%	$158,114,885	$35.08	$42.37

*: Includes month to month holdover tenants that expired prior to 12/31/02
**: 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 12/31/02	Acquisition Price ($'s)
1998 Acquisitions

	Mar-98	420 Lexington	Operating Sublease	Grand Central North	1,188,000	83	95	$	78,000,000
	Mar-98	1466 Broadway	Fee Interest	Times Square	289,000	87	89	$	64,000,000
	Mar-98	321 West 44th	Fee Interest	Times Square	203,000	96	91	$	17,000,000
	May-98	711 3rd Avenue	Operating Sublease	Grand Central North	524,000	79	99	$	65,600,000
	Jun-98	440 9th Avenue	Fee Interest	Garment	339,000	76	99	$	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	$	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	93
		290 Madison Avenue			36,800	86	100
		292 Madison Avenue			187,000	97	100
	Aug-99	1250 Broadway — 50% JV	Fee Interest	Penn Station	670,000	97	N/A	$	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	99	$	192,000,000
	Dec-00	180 Madison Avenue	Fee Interest	Grand Central South	265,000	90	82	$	41,250,000
Contribution to JV
	May-00	321 West 44th	Fee Interest	Times Square	203,000	98	91	$	28,400,000

					1,302,000			$	261,650,000
2001 Acquisitions

	Jan-01	1370 Broadway	Fee Interest	Garment	255,000	97	90	$	50,500,000
	Jan-01	1 Park Avenue	Various Interests	Grand Central South	913,000	97	99	$	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	93	$	105,600,000
Acquisition of JV Interest
	Sep-01	1250 Broadway — 49.9% JV (3)	Fee Interest	Penn Station	670,000	98	99	$	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	99	$	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		Marc Holliday President
Michael W. Reid Chief Operating Officer		Thomas E. Wirth Chief Financial Officer
Gerard Nocera Executive VP, Director of Real Estate		Andrew S. Levine General Counsel and Secretary

ANALYST COVERAGE

Firm	Analyst	Phone	Email
AG Edwards	Dave Aubuchon	(314) 955-5452	aubuchond@agedwards.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	David J. Kostin	(212) 902-6781	david.kostin@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	jimsullivan@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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Exhibit 99.2

Structured Finance Maturity Profile