SEC Filing | SL Green Realty Corp.

View:

Download DOC

Download PDF

Download XLS

QuickLinks -- Click here to rapidly navigate through this document

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(Date of earliest event reported): October 21, 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 10170 (Address of principal executive offices) (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

The information contained in this Item 9 of this Current Report is also being furnished pursuant to "Item 12. Results of Operations and Financial Condition" of Form 8-K in accordance with SEC Release No. 33-8216; 34-47583.

The information in this Current 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.

Following the issuance of a press release on October 21, 2003 announcing the Company's results for the third quarter ended September 30, 2003, 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.

NON-GAAP Supplemental Financial Measures

Funds from Operations (FFO)

FFO is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors. The Company computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (NAREIT), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company. The revised White Paper on FFO approved by the Board of Governors of NAREIT in October 1999 defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring and sales of properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. We believe that FFO is helpful to investors as a measure of the performance of an equity REIT because, along with cash flow from operating activities, financing activities and investing activities, it provides investors with an indication of our ability to incur and service debt, to make capital expenditures and to fund other cash needs. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions.

Funds Available for Distribution (FAD)

FAD, is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to fund its dividends. Because all companies do not calculate FAD the same way, the presentation of FAD may not be

comparable to similarly titled measures of other companies. FAD does not represent cash flow from operating, investing and finance activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

The Company presents earnings before interest, taxes, depreciation and amortization (EBITDA) because the Company believes that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company's ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.

Same-Store Net Operating Income

The Company presents same-store net operating income on a cash and GAAP basis because the Company believes that it provides investors with useful information regarding the operating performance of properties that are comparable for the periods presented. For properties owned since January 1, 2002, the Company determines net operating income by subtracting property operating expenses and ground rent from recurring rental and tenant reimbursement revenues. Same-store net operating income is not an alternative to net income (determined in accordance with GAAP) and same-store performance should not be considered an alternative to GAAP net income performance.

Debt to Market Capitalization Ratio

The Company presents the ratio of debt to market capitalization as a measure of the Company's leverage position relative to the Company's estimated market value. The Company's estimated market value is based upon the quarter-end trading price of the Company's common stock multiplied by all common shares and operating partnership units outstanding plus the face value of the Company's preferred equity. This ratio is presented on a consolidated basis and a combined basis. The combined debt to market capitalization includes the Company's pro-rata share of off-balance sheet (unconsolidated) joint venture debt. The Company believes this ratio may provide investors with another measure of the Company's current leverage position. The debt to market capitalization ratio should be used as one measure of the Company's leverage position, and this measure is commonly used in the REIT sector; however, this may not be comparable to other REITs that do not compute in the same manner. The debt to market capitalization ratio does not represent the Company's borrowing capacity and should not be considered an alternative measure to the Company's current lending arrangements.

Coverage Ratios

The Company presents fixed charge and interest coverage ratios to provide a measure of the Company's financial flexibility to service current debt amortization, interest expense and ground rent from current cash net operating income. These coverage ratios are provided on both a consolidated and combined basis. The combined coverage ratios include the Company's pro-rata share of off-balance sheet (unconsolidated) joint venture fixed charges and cash net operating income. These coverage ratios represent a common measure of the Company's ability to service fixed cash payments; however, these ratios are not used as an alternative to cash flow from operating, financing and investing activities (determined in accordance with GAAP).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SL GREEN REALTY CORP.
	/s/ THOMAS E. WIRTH Thomas E. Wirth Executive Vice President, Chief Financial Officer

Date: October 21, 2003

QuickLinks

Item 7. Financial Statements and Exhibits

Item 9. Regulation FD Disclosure

SIGNATURES

QuickLinks -- Click here to rapidly navigate through this document

Exhibit 99.1

420 Lexington Avenue, New York City, NY 10170

CONTACT
Michael W. Reid
Chief Operating Officer
- -or-
Thomas E. Wirth
Chief Financial Officer
(212) 594-2700

FOR IMMEDIATE RELEASE

SL GREEN REALTY CORP. REPORTS IMPROVED
THIRD QUARTER FFO RESULTS

Release Highlights

•: 1% FFO increase, $0.87 per share (diluted) versus $0.86 per share (diluted) for the same quarter in 2002
•: Sold 1370 Broadway for $58.5 million
•: Acquired a leasehold interest in 461 Fifth Avenue for $60.9 million
•: Contracted to sell 321 West 44^th Street for $35.0 million
•: Originated $70.0 million of structured finance investments
•: Converted 4.6 million shares of preferred stock into 4.7 million shares of common stock
•: Executed a $35.0 million 5-year forward serial swap contracts at an effective coupon rate of 4.99%

Financial Results

New York, NY, October 21, 2003—SL Green Realty Corp. (NYSE:SLG) reported a 1% increase in operating results for the three months ended September 30, 2003. During this period, funds from operations (FFO) before minority interests totaled $31.8 million, or $0.87 per share (diluted), compared to $30.3 million, or $0.86 per share (diluted), for the same quarter in 2002.

For the nine months ended September 30, 2003, operating results improved 6% as FFO before minority interest totaled $93.6 million, or $2.59 per share (diluted), compared to $85.6 million, or $2.45 per share (diluted), for the same period in 2002. The increase is primarily attributable to the acquisitions of 220 East 42^nd Street and condominium interests in 125 Broad Street in the first quarter of 2003.

Net income available to common shareholders for the third quarter of 2003 totaled $19.4 million, or $0.59 per share (diluted), a 9% increase as compared to the same quarter in 2002 when net income

totaled $17.0 million, or $0.54 per share (diluted). The increase in net income is primarily due to the $3.7 million ($0.10 per share) gain from the sale of 1370 Broadway, partially offset by increased depreciation expense from the first quarter 2003 acquisitions of 220 East 42^nd Street and condominium interests in 125 Broad Street.

Net income available to common shareholders for the nine months ended September 30, 2003 totaled $68.9 million, or $2.09 per share (diluted), an increase of 35% as compared to the same period in 2002 when net income totaled $47.9 million, or $1.55 per share (diluted). The increase is primarily due to $21.3 million in gains on the sales of 50 West 23^rd Street and 1370 Broadway.

The Company's third quarter weighted average diluted shares outstanding increased 1.4 million, or 4%, to 39.2 million in 2003 from 37.8 million in 2002. The increase is primarily attributable to (i) the issuance of units of limited partnership interests in the Company's operating partnership in connection with the acquisitions of 220 East 42^nd Street and condominium interests in 125 Broad Street in the first quarter of 2003, (ii) employee stock grants and stock option redemptions and (iii) additional dilution from outstanding stock options.

Consolidated Results

Total quarterly revenues increased 34% in the third quarter of 2003 to $81.3 million compared to $60.8 million in the same quarter in 2002. The $20.5 million growth in revenue resulted primarily from the following items:

•: $14.7 million increase from 2003 acquisitions
•: $6.4 million increase from the 2003 same-store portfolio
•: $1.4 million increase from affiliates that were previously unconsolidated entities
•: $2.0 million decrease in preferred and investment income

The Company's EBITDA increased $5.3 million to $42.7 million. The following items primarily drove the EBITDA increase:

•

$3.1 million increase from GAAP NOI

•: $7.4 million increase from 2003 property acquisitions
•: $0.8 million increase from same-store properties
•: $2.8 million decrease in income from unconsolidated joint ventures
•: $2.4 million decrease from reduced income from discontinued operations

•

$2.4 million increase from discontinued operations which reduced GAAP NOI

•

$1.3 million increase in other income primarily due to gain on sale of other assets

•

$0.2 million increase from reduced MG&A expense and

•

$2.0 million decrease in investment and preferred income

EBITDA margins (EBITDA divided by total revenue) before ground rent decreased to 62.7% compared to 75.1% for the same period last year. After ground rent, EBITDA margins decreased to 58.1% from 69.2% in the corresponding period. The reductions in margins were primarily due to (i) the reduction in investment income and preferred equity investment income, which decreased primarily due to lower outstanding balances, and (ii) increased operating costs.

FFO improved $1.4 million primarily as a result of:

•: $5.3 million increase in EBITDA

•: $0.4 million increase in FFO adjustment from unconsolidated joint ventures
•: $0.2 million increase from reduced preferred stock dividends
•: $0.2 million decrease from higher amortization of finance costs
•: $1.7 million decrease in FFO from discontinued operations
•: $2.7 million decrease from higher interest expense

The $2.7 million increase in interest expense was primarily associated with higher average debt levels associated with new investment activity ($3.8 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 ($1.3 million) and lower interest rates ($0.1 million).

The 2002 results have been restated to classify the operating results of 2003 sales as income from discontinued operations. The properties sold in 2003, which are included in this restatement, are 50 West 23^rd Street (March 2003), 875 Bridgeport Avenue, Shelton, Connecticut (May 2003), and 1370 Broadway (July 2003).

Same-Store Results

During the third quarter of 2003, same-store cash NOI increased $0.5 million to $26.1 million, as compared to $25.6 million over the same quarter in 2002. The increase in same-store cash NOI was driven by a $4.5 million (9%) increase in cash revenue. This increase in cash revenue was primarily due to:

•: $0.4 million increase from replacement rents, which were 9% higher than previously fully escalated rents, including early renewals and contractual rent steps and reduced free rent ($0.2 million)
•: $0.4 million increase from higher weighted average occupancy in 2003 (97.5%) compared to 2002 (96.7%)
•: $3.6 million increase in escalation and reimbursement revenue primarily due to real estate tax reimbursements ($2.3 million), higher operating expense escalations ($0.4 million) and increased electric reimbursements ($0.5 million)

However, cash NOI margins before ground rent decreased year over year from 53.2% to 50.6%. The decrease in operating margins was primarily due to the $4.0 million (16%) increase in operating expenses resulted from the following:

•: $2.1 million (29%) increase in real estate taxes
•: $0.9 million (322%) increase in insurance costs
•: $0.4 million (21%) increase in repairs, maintenance and security expenses
•: $0.2 million (16%) increase in management, professional and advertising costs
•: $0.2 million (4%) increase in utility costs

Approximately 90% of the quarterly electric expense was recovered through the utility clause in tenant leases and approximately 35% of the quarterly real estate tax expense was recovered through the escalation clause in tenant leases.

Leasing Activity

For the third quarter of 2003, the Company signed 69 office leases totaling approximately 275,000 rentable square feet with starting office cash rents averaging $33.90 per square foot, a 3.2% increase

over previously fully-escalated cash rents averaging $32.86 per square foot. Tenant concessions averaged 1.1 months of free rent with an allowance for tenant improvements of $16.49 per rentable square foot. This leasing activity includes early renewals for 11 office leases totaling approximately 103,000 rentable square feet. Including retail and storage, the Company's quarterly leasing activity totaled 75 signed leases for approximately 289,000 rentable square feet.

For the nine months ended September 30, 2003, the Company signed 194 office leases totaling approximately 904,000 rentable square feet with starting office cash rents averaging $33.99 per square foot, a 5.9% increase over previously fully-escalated cash rents averaging $32.10 per square foot. Tenant concessions averaged 2.1 months of free rent with an allowance for tenant improvements of $18.64 per rentable square foot. This leasing activity includes early renewals for 24 office leases totaling approximately 157,000 rentable square feet.

Real Estate Activity

1370 Broadway
New York, New York

On July 31, 2003 the Company sold 1370 Broadway for total consideration of $58.5 million, or $234 per square foot. This sale resulted in a gain of approximately $4.0 million. The $18.5 million taxable gain, inclusive of the deferred gain from the prior sale of 17 Battery South, was deferred into the acquisition of 461 Fifth Avenue.

461 Fifth Avenue
New York, New York

On October 1, 2003, the Company acquired the long-term leasehold interest in 461 Fifth Avenue for $60.9 million, or $305 per square foot. The Company's initially announced purchase price of $62.3 million was subsequently reduced by $1.4 million of purchase price adjustments received at closing. The going-in unlevered cash NOI yield on investment is 7.92%. The leasehold acquisition was funded, in part, with the proceeds from the sale of 1370 Broadway. As a 1031 tax-free exchange, the transaction enabled the Company to defer gains from the sale of 1370 Broadway and from the sale of 17 Battery Place South, which gain was initially re-invested in 1370 Broadway. The balance of the acquisition was funded using the Company's unsecured line of credit.

125 Broad Street
New York, New York

During the quarter, the Company exercised an option to acquire its portion of the underlying fee interest in 125 Broad Street for approximately $5.9 million. This transaction is scheduled to close in the third quarter of 2004.

321 West 44^th Street
New York, New York

The joint venture, comprised of the Company and Morgan Stanley Real Estate Fund III, L.P. ("MSREF") has entered into an agreement to sell 321 West 44^th Street to Thor Equities LLC. The sale price is $35.0 million, or approximately $172 per square foot. 321 West 44^th Street is a ten- story office building located mid-block between Eighth and Ninth Avenues on 44^th Street. The Company purchased 321 West 44^thin March 1998 for $17.0 million. In May 2000, the Company contributed the property into a joint venture with MSREF and retained a 35% ownership interest.

Structured Finance Activity

During the third quarter of 2003, the Company originated $70.0 million of structured finance investments with an initial yield of 10.1%. In July 2003, the Company received proceeds from a redemption totaling $27.6 million.

As of September 30, 2003, the par value of the Company's structured finance and preferred equity investments totaled $168.0 million. The weighted average balance outstanding for the third quarter was $128.0 million. During the third quarter 2003, the weighted average yield was 11.3% and the third quarter end run rate is 11.4%.

Financing Activity

180 Madison Mortgage Financing

In July 2003, the Company completed a $45.0 million first mortgage refinancing of the property located at 180 Madison Avenue, owned through a joint venture with Morgan Stanley Real Estate Fund. The mortgage bears interest at a fixed rate of 4.57% per annum and matures in July 2008. The financing proceeds were used to pay off the existing $31.6 million first mortgage. The Company's share of proceeds totaled $6.0 million and was used to reduce the outstanding balance on the Company's unsecured line of credit.

Conversion of Preferred Income
Equity Redeemable Shares

On September 30, 2003, the Company converted all 4.6 million of the outstanding shares of its 8.0% Series A Preferred Income Equity Redeemable Shares ("PIERS" (SM)). Each share of the PIERS was converted into common stock at the rate of 1.0215 resulting in a 4.7 million common share issuance. Dividends were paid on the PIERS through the conversion date. The Company did not recognize an earnings charge on the conversion because the transaction did not involve either a redemption or an induced conversion.

Forward Swap Contract

During October 2003, the Company entered into a $35.0 million five-year forward serial swap in connection with the anticipated final December 2003 draw from the $200 million unsecured term loan. The forward swap is stepped with a one-year rate of 2.95% that will increase to 5.61% in December 2004 through the term loan maturity date in June 2008.

Other

Today, the Company's portfolio consists 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 commercial office properties in Manhattan. The Company is the only publicly traded REIT which exclusively specializes in this niche.

Conference Call

The Company will host a conference call and audio web cast on Wednesday, October 22, 2003 at 2 PM ET to discuss the financial results. The conference call can be accessed by dialing (913) 981-5559. A replay of the call will be available through October 30, 2003 by dialing (719) 457-0820 or (888) 203-1112, pass-code 799921. The call will be simultaneously broadcast via the Internet and

individuals who wish to access the conference call should go to www.slgreen.com to log onto the call or to listen to a replay following the call.

Non-GAAP Financial Measures

During the October 22, 2003 conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure (net income) can be found on pages seven and nine of this release and in our third quarter supplemental data package.

* Financial Tables attached

To receive the Company's latest news release and other corporate documents, including the third 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

Forward-looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include the strength of the commercial office real estate markets in New York, competitive market conditions, unanticipated administrative costs, timing of leasing income, general and local economic conditions, interest rates, capital market conditions, tenant bankruptcies and defaults, the availability and cost of comprehensive insurance, including coverage for terrorist acts, and other factors, many of which are beyond the Company's control. We undertake no obligation to publicly update or revise any of the forward-looking information. For further information, please refer to the Company's filing with the Securities and Exchange Commission.

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

		Three Months Ended September 30,						Nine Months Ended September 30,
		2003			2002			2003			2002
Revenue:
Rental revenue, net		$	59,908		$	45,199		$	170,830		$	134,089
SFAS 141 Revenue Adjustment			(42	)		—			(97	)		—
Escalations & reimbursement revenues			13,387			8,489			31,586			20,801
Signage rent			99			191			831			924
Preferred equity investment income			658			1,960			2,945			5,805
Investment income			3,201			3,871			9,280			11,420
Other income			4,113			1,093			6,976			3,267

	Total revenues		81,324			60,803			222,351			176,306
Equity in net (loss) income from affiliates			—			21			(196	)		244
Equity in net income from unconsolidated joint ventures			3,036			5,784			10,863			13,115
Expenses:
Operating expenses			23,534			15,594			59,532			42,031
Ground rent			3,366			3,159			9,796			9,478
Real estate taxes			11,814			7,383			32,397			20,938
Marketing, general and administrative			2,994			3,160			8,984			9,719

	Total expenses		41,708			29,296			110,709			82,166

Earnings Before Interest, Depreciation and Amortization (EBITDA)			42,652			37,312			122,309			107,499
Interest			11,584			9,069			32,809			26,308
Depreciation and amortization			12,682			9,421			34,844			27,560

Net income from Continuing Operations			18,386			18,822			54,656			53,631

Income from Discontinued Operations, net of minority interests			482			1,785			3,173			4,795
Gain on sale of Discontinued Operations, net of minority interests			3,745			—			21,269			—
Minority interests			(972	)		(1,171	)		(3,137	)		(3,252	)
Preferred stock dividends and accretion			(2,224	)		(2,423	)		(7,087	)		(7,268	)

Net income available to common shareholders		$	19,417		$	17,013		$	68,874		$	47,906

Net income per share (Basic)		$	0.62		$	0.56		$	2.22		$	1.59
Net income per share (Diluted)		$	0.59		$	0.54		$	2.09		$	1.55
Funds From Operations (FFO)
FFO per share (Basic)		$	0.95		$	0.93		$	2.81		$	2.64
FFO per share (Diluted)		$	0.87		$	0.86		$	2.59		$	2.45
FFO Calculation:
Income before minority interests, preferred stock dividends and accretion and discontinued operations		$	18,386		$	18,822		$	54,656		$	53,631
Less:
Preferred stock dividend			(2,093	)		(2,300	)		(6,693	)		(6,900	)
Add:
Depreciation and amortization			12,682			9,421			34,844			27,560
FFO from Discontinued Operations			617			2,293			4,134			6,724
Joint venture FFO adjustment			3,477			3,072			10,302			7,666
Amortization of deferred financing costs and depreciation of non-real estate assets			(1,237	)		(1,046	)		(3,608	)		(3,079	)

FFO before minority interests—BASIC			31,832			30,262			93,635			85,602
Add: Preferred stock dividends			2,093			2,300			6,693			6,900

FFO before minority interests—DILUTED		$	33,925		$	32,562		$	100,328		$	92,502

Basic ownership interest
	Weighted average REIT common shares		31,269			30,357			31,021			30,185
	Weighted average partnership units held by minority interests		2,306			2,180			2,304			2,224

Basic weighted average shares and units outstanding			33,575			32,537			33,325			32,409

Diluted ownership interest
	Weighted average REIT common share and common share equivalents		32,273			30,932			31,776			30,850
	Weighted average partnership units held by minority interests		2,306			2,180			2,304			2,224
	Common share equivalents for preferred stock		4,607			4,699			4,668			4,699

Diluted weighted average shares and units outstanding			39,186			37,811			38,748			37,773

SL GREEN REALTY CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)

	September 30, 2003			December 31, 2002
	(Unaudited)
Assets
Commercial real estate properties, at cost:
Land and land interests	$	167,816		$	131,078
Buildings and improvements		841,716			683,165
Building leasehold and improvements		251,866			149,326
Property under capital lease		12,208			12,208

		1,273,606			975,777
Less accumulated depreciation		(147,083	)		(126,669	)

		1,126,523			849,108
Assets held for sale		—			41,536
Cash and cash equivalents		14,171			58,020
Restricted cash		110,639			29,082
Tenant and other receivables, net of allowance of $7,599 and $5,927 in 2003 and 2002, respectively		14,022			6,587
Related party receivables		7,068			4,868
Deferred rents receivable, net of allowance of $7,029 and $6,575 in 2003 and 2002, respectively		61,361			55,731
Investment in and advances to affiliates		—			3,979
Structured finance investments, net of discount of $85 and $205 in 2003 and 2002, respectively		167,954			145,640
Investments in unconsolidated joint ventures		205,821			214,644
Deferred costs, net		36,969			35,511
Other assets		20,619			28,464

Total assets	$	1,765,147		$	1,473,170

Liabilities and Stockholders' Equity
Mortgage notes payable	$	532,426		$	367,503
Revolving credit facilities		95,000			74,000
Unsecured term loan		165,000			100,000
Derivative instruments at fair value		5,390			10,962
Accrued interest payable		2,553			1,806
Accounts payable and accrued expenses		46,935			41,197
Deferred compensation awards		—			1,329
Deferred revenue/gain		9,267			3,096
Capitalized lease obligations		16,090			15,862
Deferred land lease payable		15,106			14,626
Dividend and distributions payable		17,914			17,436
Security deposits		21,110			20,948
Liabilities related to assets held for sale		—			21,321

Total liabilities		926,791			690,086
Commitments and contingencies
Minority interests		53,947			44,039
Minority interest in partially owned assets		525			679
8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference, none and 4,600 outstanding at September 30, 2003 and December 31, 2002		—			111,721
Stockholders' Equity
Common stock, $0.01 par value 100,000 shares authorized, 35,876 and 30,422 issued and outstanding at September 30, 2003 and December 30, 2002, respectively		358			304
Additional paid—in capital		722,565			592,585
Deferred compensation plan		(9,062	)		(5,562	)
Accumulated other comprehensive loss		(5,382	)		(10,740	)
Retained earnings		75,405			50,058

Total stockholders' equity		783,884			626,645

Total liabilities and stockholders' equity	$	1,765,147		$	1,473,170

SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED

	September 30,
	2003			2002
Operating Data:
Net rentable area at end of period (in 000's)(1)		12,605			11,533
Portfolio percentage leased at end of period		95.5	%		97.0	%
Same-Store percentage leased at end of period		97.5	%		96.9	%
Number of properties in operation		25			25
Office square feet leased during quarter (rentable)		275,000			358,000
Average mark-to-market percentage-office		3	%		44	%
Average starting cash rent per rentable square foot-office	$	33.90		$	33.24

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

SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES*

(Amounts in thousands, except per share data)

	Three Months Ended September 30,
	2003		2002
Earnings before interest, depreciation and amortization (EBITDA):	$	42,652	$	37,312
Add:
Marketing, general & administrative expense		2,994		3,160
Operating income from discontinued operations		3,652		6,072
Less:
Non-building revenue		9,598		9,986

GAAP net operating income (GAAP NOI)	$	39,700	$	36,558
Less:
Operating income from discontinued operations		3,652		6,072
GAAP NOI from other consolidated properties		7,582		2,844

2003 Same-Store GAAP NOI	$	28,466	$	27,642
Less:
Free Rent		1,301		1,472
Straight-line rent		1,314		1,386
Add:
Ground lease straight-line rent expense		160		160
Credit loss		132		705

2003 Same-Store cash NOI	$	26,143	$	24,649

*: See page 7 for a reconciliation of FFO and EBITDA to net income.

QuickLinks

Exhibit 99.1

SL GREEN REALTY CORP. REPORTS IMPROVED THIRD QUARTER FFO RESULTS
SL GREEN REALTY CORP. STATEMENTS OF OPERATIONS-UNAUDITED (Amounts in thousands, except share and per share data)
SL GREEN REALTY CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS)
SL GREEN REALTY CORP. SELECTED OPERATING DATA-UNAUDITED
SL GREEN REALTY CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES* (Amounts in thousands, except per share data)

QuickLinks -- Click here to rapidly navigate through this document

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 is listed on the New York Stock Exchange, and trades under the symbol SLG.
•: 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 nine months ended September 30, 2003 that will subsequently be released on Form 10-Q to be filed on or before November 15, 2003.

TABLE OF CONTENTS

Highlights of Current Period Financial Performance
Unaudited Financial Statements
	Corporate Profile	4
	Financial Highlights	4-9
	Balance Sheets	10-11
	Statements of Operations	12
	Joint Venture Statements	13-14
	Statement of Stockholders' Equity	15
	Funds From Operations	16
Selected Financial Data		17-19
Summary of Debt and Ground Lease Arrangements		20-21
Mortgage Investments and Preferred Equity		22-23
Property Data
	Composition of Property Portfolio	24
	Top Tenants	25
	Leasing Activity Summary	26-28
	Lease Expiration Schedule	29-30
Summary of Acquisition/Disposition Activity		31-32
Supplemental Definitions		33
Corporate Information		35

CORPORATE PROFILE

SL Green Realty Corp. (the "Company") was formed on August 20, 1997 to continue the commercial real estate business of S.L. 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
THIRD QUARTER 2003
UNAUDITED

FINANCIAL RESULTS

Funds From Operations (FFO) before minority interests, for the third quarter 2003 totaled $31.8 million, or $0.87 per share (diluted), a 1% increase compared to the same quarter in 2002 when FFO totaled $30.3 million, or $0.86 per share (diluted).

Net income available for common shareholders for the third quarter 2003 totaled $19.4 million, or $0.59 per share (diluted), an increase of 9% as compared to the same quarter in 2002 when net income totaled $17.0 million, or $0.54 per share (diluted). The increase is primarily due to the $3.7 million ($0.10 per share) gain from the sale of 1370 Broadway partially offset by increased depreciation from the first quarter acquisitions of 220 East 42^nd Street and 125 Broad Street.

Funds available for distribution (FAD) for the third quarter 2003 increased to $0.68 share per share (diluted) versus $0.58 per share (diluted) in the prior year, a 17% increase. The increase is primarily due to the $5.5 million decrease in tenant improvements and leasing commissions due to lower leasing volume.

The Company's dividend payout ratio was 54% of FFO and 69% of FAD before first cycle leasing costs.

CONSOLIDATED RESULTS

Total quarterly revenues increased 34% in the third quarter to $81.3 million, compared to $60.8 million last year. The $20.5 million growth in revenue resulted from the following items:

•: $14.7 million increase from 2003 acquisitions
•: $6.4 million increase from the 2003 same-store portfolio
•: $1.4 million increase from affiliate revenue that was previously unconsolidated
•: $2.0 million decrease in preferred equity and investment income

The Company's EBITDA increased $5.3 million to $42.7 million; however, margins before ground rent decreased to 62.7% compared to 75.1% for the same period last year. The decrease in margins is primarily due to a reduction in investment and preferred income and increased operating costs. After ground rent, margins decreased in 2003 to 58.1% from 69.2% in the corresponding period in 2002. The following items drove EBITDA improvements:

(1)

Consolidated GAAP NOI increased $3.1 million:

•: $7.4 million increase from 2003 property acquisitions of 220 East 42^nd Street (February 2003) and 125 Broad Street (March 2003).
•: $0.8 million increase from the 2003 same-store properties mainly due to (i) rental revenue increases of $0.5 million as GAAP replacement rents were 15% higher than previously fully-escalated rents, (ii) higher reimbursement revenues ($3.6 million) largely due to higher real estate tax escalation income ($2.3 million), electric reimbursement ($0.5 million) and operating expense escalations ($0.4 million), and (iii) $0.4 million increase from higher weighted-average occupancy in 2003 (97.5%) compared to 2002 (96.7%).

The increased revenues were partially offset by a $4.0 million of increased operating costs resulting from (i) increased real estate taxes ($2.1 million) due to higher assessed values and tax rates, (ii) increased insurance costs ($0.9 million) due to higher premiums on the annual policy which commenced October, 2002, (iii) increased repairs, maintenance and insurance costs ($0.4 million), (iv) higher advertising, professional fees and management costs ($0.2 million) and (v) increased utility expense due to higher oil prices ($0.2 million).

•: $2.8 million decrease from the equity in income from unconsolidated joint ventures primarily due to (i) reduced rental revenue as occupancy decreased to 92.6% at September 30, 2003 as compared to 97.5% in 2002, (ii) increased real estate tax expense ($1.0 million) and (iii) higher operating costs ($0.4 million). These decreases were partially offset by higher escalation income ($0.6 million) primarily from higher Real Estate tax reimbursement income.
•: $2.4 million decrease from reduced income from discontinued operations from the sales of 50 West 23^rd Street, (March 2003) 875 Bridgeport Avenue, Shelton, Connecticut (April 2003) and 1370 Broadway (July 2003).

(2): $1.3 million increase in other income primarily due to miscellaneous asset sales ($1.1 million) and lease buy-out income ($0.3 million).
(3): $0.2 million increase from lower MG&A expense. The increase is primarily due to higher compensation expense partially offset by increased cost allocation to the properties due to the increased size of the wholly-owned portfolio.
(4): $2.0 million decrease in investment and preferred equity income primarily due to a decrease in the weighted-average asset balance from $194.7 million to $128.0 million. The weighted-average yield decreased from 12.45% to 11.27% due mainly to lower LIBOR.

FFO improved $1.5 million primarily as a result of:

•: $5.3 million increase in EBITDA
•: $0.4 million increase in FFO adjustment from unconsolidated joint ventures primarily due to increased depreciation expense
•: $0.2 million increase from lower preferred stock dividends
•: $0.2 million decrease from higher amortization of finance costs
•: $1.7 million decrease in FFO from discontinued operations

•: $2.7 million decrease from higher interest expense.

The $2.7 million increase in interest expense was primarily due to higher average debt levels associated with new investment activity ($3.8 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 ($1.3 million) and lower interest rates ($0.1 million).

SAME-STORE RESULTS

Same-store third quarter cash NOI increased $0.5 million to $26.1 million in 2003 due to a $4.5 million increase in cash revenue partially offset by a $4.0 million increase in operating costs. Cash operating margins before ground rent decreased from 53.2% to 50.4%.

The $4.5 million increase in cash revenue was due to:

1.: $0.3 million increase in cash rental revenue due to (i) a $0.2 million increase resulting from higher replacement rents, including early renewals, on approximately 466,000 rentable square feet that were 9% higher than previously fully escalated rents and (ii) $0.2 million from increased cash revenue from rent-steps and reduced free rent
2.: $3.6 million increase in escalation and reimbursement revenue due to (i) the increased escalation revenue from real estate taxes ($2.3 million), (ii) higher operating expense escalations ($0.4 million) and (iii) increased electric reimbursement ($0.5 million).
3.: $0.4 million from higher weighted-average occupancy in 2003 (97.5%) compared to 2002 (96.7%).

The $4.0 million increase in same-store operating expenses resulted from:

•: $2.1 million (29%) increase in real estate taxes due to higher property value assessments (9%) and an increase in the New York City tax rate (18%)
•: $0.9 million (322%) increase in insurance costs due to higher premiums from the Company's insurance policy that was renewed in October 2002
•: $0.4 million (21%) increase in repairs, maintenance and security expenses
•: $0.2 million (16%) increase in management, professional and advertising costs
•: $0.2 million (4%) increase in utility costs primarily due to higher oil prices

GAAP NOI increased by $0.8 million over the prior year, and GAAP operating margins before ground rent decreased from 57.5% to 54.9%.

The electric recovery rate for the quarter was approximately 90%.

QUARTERLY LEASING HIGHLIGHTS

Vacancy at June 30, 2003 was 574,383 useable square feet net of holdover tenants. During the quarter, 172,731 additional useable office square feet became available at an average escalated cash rent of $37.13 per rentable square foot. The company sold 1370 Broadway, which included 16,790 usable square feet. Space available before holdovers to lease during the quarter totaled 730,324 useable square feet, or 5.8% of the total portfolio.

During the third quarter, 64 leases were signed totaling 138,802 useable square feet. New cash rents averaged $35.52 per rentable square foot. Replacement rents were 10% greater than rents on previously occupied space, which had fully escalated cash rents averaging $32.45 per rentable square foot. The average lease term was 6.5 years and average tenant concessions were 1.4 months of free rent with an allowance of $20.05 per rentable square foot. Including early renewals and excluding holdover tenants, the tenant renewal rate was 59% based on square feet expiring. Twenty-five leases have expired

comprising 32,375 useable square feet that are in a holdover status. This results in 559,147 useable square feet (net of holdovers) remaining available as of September 30, 2003.

The Company signed 11 office leases for 77,990 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 2004. The Company was able to renew current office tenants at an average cash rent of $35.53 per rentable square foot, representing a decrease of 3% over the previously fully escalated rents of $36.61. The average lease term extention on the office early renewals was 3.2 years.

PROPERTY ACTIVITY

1370 Broadway
New York, New York

The Company sold 1370 Broadway for total consideration of $58.5 million, or $234 per square foot. This sale resulted in a gain of approximately $4.0 million. The transaction closed during the third quarter of 2003. The taxable gain, inclusive of the deferred gain from the prior sale of 17 Battery South, totaling $18.5 million, was deferred into the acquisition of 461 Fifth Avenue.

461 Fifth Avenue
New York, New York

On October 1, 2003, the Company acquired the long-term leasehold interest in 461 Fifth Avenue for $60.9 million, or $305 per square foot. The Company's initially announced purchase price of $62.3 million was subsequently reduced by $1.4 million of purchase price adjustments received at closing. The going-in unlevered cash NOI yield on investment is 7.92%. The leasehold acquisition was funded, in part, with the proceeds from the sale of 1370 Broadway. As a 1031 tax-free exchange, the transaction will enable the Company to defer gains from this sale of 1370 Broadway and from the sale of 17 Battery Place South, which gain was initially re-invested in 1370 Broadway. The balance of the acquisition was funded using the Company's unsecured line of credit.

125 Broad Street
New York, New York

321 West 44^th Street
New York, New York

The joint venture comprised of the Company and Morgan Stanley Real Estate Fund III, L.P. ("MSREF") has entered into an agreement to sell 321 West 44th Street to Thor Equities LLC. The sale price is $35.0 million, or approximately $172 per square foot. 321 West 44th Street is a 10 story office building located mid-block between Eighth and Ninth Avenues on 44th Street. SL Green purchased 321 West 44th in March 1998 for $17.0 million. In May 2000 the Company contributed the property into a joint venture with MSREF and retained a 35% ownership interest.

180 Madison Mortgage Financing

of proceeds totaled $6.0 million and was used to reduce the outstanding balance on the Company's unsecured line of credit.

Conversion of Preferred Income
Equity Redeemable Shares

On September 30, 2003, the Company converted all 4.6 million of the outstanding shares of its 8.0% Series A Preferred Income Equity Redeemable Shares ("PIERS" (SM)). The PIERS were converted at the rate of 1.0215 shares of our common stock (4.7 million shares) for each share of preferred stock. Dividends were paid on the PIERS through the conversion date. The Company did not recognize an earnings charge on the conversion because the transaction did not involve either a redemption or an induced conversion.

Forward Swap Contract

During October 2003, the Company entered into a $35.0 million five-year forward serial swap in connection with the anticipated final December 2003 draw from the unsecured term loan. The forward swap is stepped with a one-year rate of 2.95% that will increase to 5.61% in December 2004 through the $200 million term loans maturity date in June 2008.

Consolidation of Affiliate

In connection with recently enacted accounting pronouncements (FIN 46) the Company has consolidated the results of its previously unconsolidated affiliate. The consolidation is effective July 1, 2003 and is not retroactive for the three months ended September 30, 2003 the consolidated affiliate revenue totaled $1.4 million and $1.5 million in consolidated expenses.

COMMON AND PREFERRED DIVIDENDS

On September 15, 2003 the Company declared a dividend of $0.465 per common share for the quarter ended September 30, 2003. This dividend reflects the regular quarterly dividend, which is the equivalent of an annualized dividend of $1.86 per common share.

The Company also declared a dividend of $0.50 per share of Preferred Income Equity Redeemable Stock for shareholders of record as of September 30, 2003. Both dividends were paid on October 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, 2002). The 2003 same-store pool includes the following wholly owned properties:

2003 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
110 East 42^nd Street	317 Madison Avenue

FINANCIAL HIGHLIGHTS
Third Quarter
Unaudited

		September 30,
		2003			2002
Operational Information
Total Revenues ($000's)		$	81,324		$	60,803
Funds from Operations
	FFO per share—diluted	$	0.87		$	0.86
	FFO Payout		53.71	%		51.38	%
Funds Available for Distribution
	FAD per share—diluted	$	0.68		$	0.58
	FAD Payout		68.61	%		75.81	%
Net Income Available to Common Shareholders—Basic		$	0.62		$	0.56
Net Income Available to Common Shareholders—Diluted		$	0.59		$	0.54
Dividends per Common share		$	0.4650		$	0.4425
Weighted Average Shares Outstanding—Diluted			39,186			37,811
Same-store Cash NOI		$	26,143		$	25,649
Equity Capitalization Data		$	1,378,753		$	1,000,329
Total Assets		$	1,765,147		$	1,467,192
Total Consolidated Debt		$	792,426		$	548,731
Minority Interest		$	54,472		$	44,941
Preferred Stock		$	0		$	111,599
Quarter End Closing Price—SLG Common Stock		$	36.11		$	30.74
Total Market Capitalization		$	2,573,814		$	2,081,573
Ratios
Consolidated Debt to Total Market Capitalization			36.50	%		33.81	%
Combined Debt to Total Market Capitalization			46.43	%		46.41	%
Consolidated Fixed Charge			2.57			2.68
Combined Fixed Charge			2.44			2.43
Portfolio
Total Buildings
	Directly Owned		19			19
	Joint Ventures		6			6

			25			25
	Total SF		12,605,000			11,533,000
	End of Quarter Occupancy—Total		95.5	%		97.0	%
	End of Quarter Occupancy—2003 Same-Store		97.5	%		96.7	%

COMPARATIVE BALANCE SHEETS
Unaudited
(000's omitted)

		9/30/2003		9/30/2002		+/-		6/30/2003		+/-		3/31/2003		+/-
Assets
Commercial real estate properties, at cost:
	Land & land interests	167,816		131,078		36,738		167,793		23		182,510		(14,694	)
	Buildings & improvements fee interest	841,716		675,499		166,217		839,139		2,577		981,971		(140,255	)
	Buildings & improvements leasehold	251,866		147,911		103,955		247,336		4,530		150,375		101,491
	Buildings & improvements under capital lease	12,208		12,208		—		12,208		—		12,208		—

		1,273,606		966,696		306,910		1,266,476		7,130		1,327,064		(53,458	)
Less accumulated depreciation		(147,083	)	(119,056	)	(28,027	)	(136,836	)	(10,246	)	(130,675	)	(16,408	)

		1,126,523		847,640		278,883		1,129,640		(3,117	)	1,196,389		(69,866	)
Other Real Estate Investments:
	Investment in unconsolidated joint ventures	205,821		217,108		(11,287	)	216,620		(10,799	)	213,802		(7,979	)
	Mortgage loans receivable	146,642		127,293		19,349		104,185		42,457		93,145		53,497
	Preferred equity investments	21,312		67,416		(46,104	)	21,332		(20	)	21,351		(39	)
Assets held for sale		0		41,185		(41,185	)	50,088		(50,088	)	16,226		(16,226	)
Cash and cash equivalents		14,171		13,450		721		16,810		(2,639	)	24,619		(10,448	)
Restricted cash:
	Tenant security	20,643		19,115		1,528		20,654		(9	)	20,709		(66	)
	Escrows & other	89,996		13,423		76,573		41,181		48,815		38,326		51,670
Tenant and other receivables, net of $7,599 reserve at 9/30/03		14,022		8,066		5,955		10,448		3,573		8,921		5,101
Related party receivables		7,068		4,832		2,236		3,945		3,123		5,213		1,855
Deferred rents receivable, net of reserve for tenant credit loss of $7,029 at 9/30/03		61,361		54,992		6,369		58,834		2,527		57,223		4,138
Investment in and advances to affiliates		0		3,146		(3,146	)	3,133		(3,133	)	3,733		(3,733	)
Deferred costs, net		36,969		34,957		2,012		37,694		(725	)	37,251		(282	)
Other assets		20,619		14,569		6,050		11,019		9,600		18,911		1,708

Total Assets		1,765,147		1,467,192		297,955		1,725,583		39,564		1,755,819		9,328

COMPARATIVE BALANCE SHEETS
Unaudited
(000's omitted)

	9/30/2003		9/30/2002		+/-		6/30/2003		+/-		3/31/2003		+/-
Liabilities and Stockholders' Equity
Mortgage notes payable	532,426		374,800		157,626		620,530		(88,104	)	621,469		(89,043	)
Unsecured term loan	165,000		—		165,000		100,000		65,000		100,000		65,000
Revolving credit facilities	95,000		173,931		(78,931	)	42,000		53,000		51,000		44,000
Derivative Instruments-fair value	5,390		8,540		(3,150	)	12,829		(7,439	)	11,553		(6,163	)
Accrued interest payable	2,553		1,945		608		3,158		(605	)	2,917		(364	)
Accounts payable and accrued expenses	46,935		33,935		13,000		44,951		1,984		36,906		10,029
Deferred compensation awards	—		671		(671	)	—		—		—		—
Deferred revenue	9,267		3,777		5,490		6,464		2,803		27,337		(18,070	)
Capitalized lease obligations	16,090		15,895		195		16,012		78		15,937		153
Deferred land lease payable	15,106		14,466		640		14,946		160		14,786		320
Dividend and distributions payable	17,914		16,693		1,221		17,923		(9	)	17,859		55
Liabilities related to assets held for sale	—		21,414		(21,414	)	748		(748	)	14,821		(14,821	)
Security deposits	21,110		19,420		1,690		20,872		238		20,928		182

Total Liabilities	926,791		685,487		241,304		900,433		26,358		935,513		(8,722	)
Minority interest (2,306 units outstanding) at 9/30/03	54,472		44,941		9,531		54,164		308		55,309		(837	)
8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference	0		111,599		(111,599	)	111,984		(111,984	)	111,852		(111,852	)
Stockholders' Equity
Common stock, $.01 par value 100,000 shares authorized, 35,876 issued and outstanding at 9/30/03	358		303		55		311		47		309		49
Additional paid-in capital	722,565		591,668		130,897		609,321		113,245		603,907		118,658
Deferred compensation plans & officer loans	(9,062	)	(5,987	)	(3,075	)	(8,608	)	(454	)	(9,224	)	162
Accumulated other comprehensive loss	(5,382	)	(8,279	)	2,897		(12,702	)	7,320		(11,375	)	5,993
Retained earnings	75,405		47,460		27,945		70,680		4,725		69,528		5,877

Total Stockholders' Equity	783,884		625,165		158,719		659,002		124,882		653,145		130,739

Total Liabilities and Stockholders' Equity	1,765,147		1,467,192		297,955		1,725,583		39,564		1,755,819		9,328

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

			Three Months Ended								Three Months Ended		Nine Months Ended
			Sep-03		Sep-02		+/-		%		Jun-03		Sep-03		Sep-02
Revenues
Rental revenue, net			57,537		44,055		13,482		31	%	57,021		164,565		129,459
	Free rent		1,676		1,472		204		14	%	1,695		4,697		4,559
	Amortization of free rent		(1,103	)	(781	)	(322	)	41	%	(1,165	)	(3,010	)	(2,525	)

Net free rent			573		691		(118	)	-17	%	530		1,687		2,033
Straight-line rent			2,066		1,419		647		46	%	2,180		5,622		4,560
FAS 141 Revenue Adjustment			(42	)	—		(42	)	0	%	(55	)	(97	)	—
Allowance for S/L tenant credit loss			(268	)	(966	)	698		-72	%	(367	)	(1,044	)	(1,964	)
Escalation and reimbursement revenues			13,387		8,489		4,898		58	%	10,022		31,586		20,801
Signage rent			99		191		(92	)	-48	%	407		831		924
Preferred equity investment income			658		1,960		(1,302	)	-66	%	731		2,945		5,805
Investment income			3,201		3,871		(670	)	-17	%	2,718		9,280		11,420
Other income			4,113		1,093		3,020		276	%	1,164		6,976		3,267

		Total Revenues, net	81,324		60,803		20,521		34	%	74,351		222,351		176,306
Equity in income/(loss) from affiliates			—		21		(21	)	- -100	%	(99	)	(196	)	244
Equity in income from unconsolidated joint ventures			3,036		5,784		(2,748	)	-48	%	3,651		10,863		13,115
Operating expenses			23,534		15,594		7,940		51	%	19,313		59,532		42,031
Ground rent			3,366		3,159		206		7	%	3,266		9,796		9,478
Real estate taxes			11,814		7,383		4,431		60	%	10,955		32,397		20,938
Marketing, general and administrative			2,994		3,160		(166	)	-5	%	2,804		8,984		9,719

		Total Operating Expenses	41,708		29,296		12,412		42	%	36,338		110,709		82,166
EBITDA			42,652		37,312		5,340		14	%	41,565		122,309		107,499
Interest			11,736		9,069		2,667		29	%	11,723		33,110		26,308
FAS 141 Interest Adjustment			(152	)	—		(152	)	0	%	(149	)	(301	)	—
Depreciation and amortization			12,682		9,421		3,261		35	%	11,573		34,844		27,560

Income Before Minority Interest and Items			18,386		18,822		(436	)	-2	%	18,418		54,656		53,631
Income from Discontinued Operations			482		1,785		(1,303	)	- -73	%	958		3,173		4,795
Gain/(Loss) on sale of Discontinued Operations			3,745		—		3,745		0	%	(300	)	21,269		—
Minority interest—OP			(972	)	(1,171	)	199		-17	%	(1,103	)	(3,137	)	(3,252	)

Net Income			21,641		19,436		2,205		11	%	17,973		75,961		55,174
Dividends on preferred shares			2,093		2,300		(208	)	- -9	%	2,300		6,693		6,900
Preferred stock accretion			131		123		9		7	%	131		394		368

Net Income Available For Common Shareholders			19,417		17,013		2,404		14	%	15,542		68,874		47,906

Ratios
MG&A to Real Estate Revenue, net			4.08	%	5.86	%					4.02	%	4.42	%	6.24	%
MG&A to Total Revenue, net			3.68	%	5.20	%					3.77	%	4.04	%	5.51	%
Operating Expense to Real Estate Revenue, net			32.07	%	28.94	%					27.67	%	29.29	%	26.98	%
EBITDA to Real Estate Revenue, net			58.11	%	69.25	%					59.55	%	60.18	%	68.99	%
EBITDA before Ground Rent to Real Estate Revenue, net			62.70	%	75.11	%					64.23	%	65.00	%	75.07	%
Per share data:
*Earnings per Share*
Net income per share (basic)			0.62		0.56		0.06		11	%	0.50		2.22		1.59
Net income per share (diluted)			0.59		0.54		0.05		9	%	0.49		2.09		1.55
*Taxable Income*
Net Income Available For Common Shareholders			19,417		17,013		2,404		14	%	15,542		68,874		47,906
Book/Tax Depreciation Adjustment			1,756		2,045		(289	)	-14	%	2,047		6,349		5,642
Book/Tax Gain Recognition Adjustment			(622	)	0		(622	)	0	%	—		(13,449	)	1,680
Other Operating Adjustments			(234	)	(1,736	)	1,502		-87	%	(2,455	)	(6,789	)	(9,659	)
C-corp Earnings			131		(21	)	152		-724	%	99		327		(243	)

Taxable Income			20,448		17,301		3,147		18	%	15,233		55,312		45,326
Dividend per share			0.465		0.4425		0.02		5	%	0.465		1.40		1.33
Estimated payout of taxable income			92	%	91	%	0		20	%	110	%	91	%	104	%
Basic weighted average common shares			31,269		30,357		882		3	%	31,082		31,021		30,185
Diluted weighted average common shares and common share equivalents outstanding			39,186		37,811		1,375		4	%	38,819		38,748		37,773

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, 50 West 23rd Street, and 1412 Broadway through 1031 exchanges.

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

	September 30, 2003					September 30, 2002
	Total Property		SLG Property Interest			Total Property		SLG Property Interest
Land & land interests	216,995		115,806			217,266		115,955
Buildings & improvements	912,940		486,604			901,573		480,104

	1,129,935		602,410			1,118,839		596,059
Less accumulated depreciation	(56,790	)	(29,782	)		(32,407	)	(16,859	)

Net Real Estate	1,073,145		572,628			1,086,432		579,200
Cash and cash equivalents	32,772		17,232			34,931		18,507
Restricted cash	32,850		17,638			28,934		15,500
Tenant receivables, net of $1,572 reserve	6,434		3,400			2,442		1,308
Deferred rents receivable, net of reserve for tenant credit loss of $961 at 9/30/03	20,708		10,888			11,144		5,751
Deferred costs, net	12,102		6,429			13,813		7,400
Other assets	10,016		5,336			8,760		4,674

Total Assets	1,188,027		633,551			1,186,456		632,340

Mortgage loan payable	755,196		402,635		references pages 20 & 23	742,926		396,513
Derivative Instruments-fair value (1)	(0	)	(0	)		(258	)	(142	)
Accrued interest payable	1,981		1,027			2,268		1,181
Accounts payable and accrued expenses	20,393		10,644			11,948		6,253
Security deposits	5,650		2,850			21,923		11,788
Contributed Capital	404,807		216,395		references page 12	407,649		216,747

Total Liabilities and Equity	1,188,027		633,551			1,186,456		632,340

As of September 30, 2003 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. Additional detail is available on page 32.

(1): This analysis includes hedge instruments at fair value of $193K on 1250 Broadway and $57K on 1515 Broadway during 3Q02.

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

				Three Months Ended September 30, 2003					Three Months Ended September 30, 2002
				Total Property		SLG Property Interest		SLG Subsidiary	Total Property		SLG Property Interest		SLG Subsidiary
Revenues
Rental Revenue, net				32,523		17,200			35,141		18,647
	Free rent			998		532			247		124
	Amortization of free rent			(296	)	(152	)		(85	)	(42	)

Net free rent				702		380			162		82
Straight-line rent				1,799		962			1,926		1,033
Allowance for S/L tenant credit loss				(228	)	(122	)		(365	)	(195	)
Escalation and reimbursement revenues				9,858		5,249			8,667		4,630
Investment income				120		64			147		78
Other income				8		4			394		216

			Total Revenues, net	44,782		23,737			46,072		24,491
Expenses
Operating expenses				13,146		6,991			12,326		6,553
Real estate taxes				8,760		4,652			6,835		3,630

		Total Operating Expenses		21,906		11,643			19,161		10,183
GAAP NOI				22,876		12,094			26,911		14,308
Cash NOI				20,603		10,874			25,188		13,388
Interest				9,480		4,987			9,341		4,789
Depreciation and amortization				7,678		4,073			7,005		3,735

Net Income				5,718		3,034		references page 14	10,565		5,589
Plus: Real Estate Depreciation				6,570		3,477		references page 19	6,047		3,072
Plus: Extraordinary Loss				—		—			—		—
Plus: Management & Leasing Fees				—		—		38	—		—		8

Funds From Operations				12,288		6,511			16,612		8,661
FAD Adjustments:
Plus: Non Real Estate Depreciation				1,108		596			958		519
Plus: 2% Allowance for S/L Tenant Credit Loss				228		122			365		195
Less: Free and S/L Rent				(2,501	)	(1,296	)		(2,088	)	(1,115	)
Less: Second Cycle Tenant Improvement,				(1,612	)	(809	)		(310	)	(117	)
Less: Second Cycle Leasing Commissions				(406	)	(211	)		(484	)	(256	)
Less: Recurring Capex				(77	)	(42	)		(175	)	(83	)

FAD Adjustment				(3,260	)	(1,640	)		(1,734	)	(856	)

Operating Expense to Real Estate Revenue, net				29.29	%	29.39	%		26.86	%	26.86	%
GAAP NOI to Real Estate Revenue, net				50.97	%	50.83	%		58.63	%	58.66	%
Cash NOI to Real Estate Revenue, net				45.90	%	45.71	%		54.88	%	54.89	%

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

	Common Stock	Additional Paid-In Capital		Retained Earnings		Deferred Compensation Plan		Accumulated Other Comprehensive Loss		TOTAL
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
Net Income				75,961						75,961
Preferred Dividend and Accretion				(7,087	)					(7,087	)
Exercise of employee stock options	3	6,865								6,868
Cash distributions declared ($1.395 per common share)				(43,527	)					(43,527	)
Comprehensive Income—Unrealized gain of derivative instruments								5,358		5,358
Dividend reinvestment plan		16								16
Redemption of operating partnership units	3	5,688								5,691
Conversion of preferred stock	46	112,066								112,112
Deferred compensation plan	2	5,345				(5,347	)			—
Amortization of deferred compensation						1,847				1,847

Balance at September 30, 2003	358	722,565		75,405		(9,062	)	(5,382	)	783,884

RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION

	Common Stock		OP Units		Stock Options	Sub-total		Preferred Stock		Diluted Shares
Balance at December 31, 2002	30,421,693		2,145,190		—	32,566,883		4,698,900		37,265,783
YTD share activity	5,454,419		161,257			5,615,676		(4,698,900	)	916,776

Balance at September 30, 2003—Basic	35,876,112		2,306,447		—	38,182,559		—		38,182,559
Dilution Factor	(4,795,179	)	(2,391	)	695,251	(4,102,319	)	4,668,000		565,681

Balance at September 30, 2003—Diluted	31,080,933		2,304,056		695,251	34,080,240		4,668,000		38,748,240

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

		Three Months Ended						Three Months Ended				Nine Months Ended September 30,
		Sep-03		Sep-02		% Change		Jun-03		% Change		2003		2002		% Change
Funds from operations
Net Income before Minority Interests and Items		18,386		18,822		-2	%	18,418		0	%	54,656		53,631		2	%
Add:	Depreciation and Amortization	12,682		9,421		35	%	11,573		10	%	34,844		27,560		26	%
	FFO from Discontinued Operations	617		2,293		-73	%	1,333		-54	%	4,134		6,724		-39	%
	FFO adjustment for Joint Ventures	3,477		3,072		13	%	3,438		1	%	10,302		7,666		34	%
Less:	Dividends on Preferred Shares	2,093		2,300		-9	%	2,300		-9	%	6,693		6,900		-3	%
	Non Real Estate Depreciation/Amortization of Finance Costs	1,237		1,046		18	%	886		40	%	3,608		3,079		17	%

	Funds From Operations—Basic	31,832		30,262		5	%	31,576		1	%	93,635		85,602		9	%
	Funds From Operations—Basic per Share	0.95		0.93		5	%	0.94		4	%	2.81		2.64		6	%
Add:	Dividends on Preferred Shares	2,093		2,300		- -9	%	2,300		- -9	%	6,693		6,900		- -3	%

	Funds From Operations—Diluted	33,925		32,562		4	%	33,876		0	%	100,328		92,502		8	%
	Funds From Operations—Diluted per Share	0.87		0.86		1	%	0.87		-1	%	2.59		2.45		6	%
Funds Available for Distribution
FFO		33,925		32,562		4	%	33,876		0	%	100,328		92,502		8	%
Add:	Non Real Estate Depreciation	1,237		1,046		18	%	886		40	%	3,608		3,079		17	%
	2% Allowance for S/L Tenant Credit Loss	268		966		-72	%	367		-27	%	1,044		1,964		-47	%
	Straight-line Ground Rent	160		60		167	%	160		0	%	480		380		26	%
	Non-cash Deferred Compensation	454		178		154	%	616		-26	%	1,686		994		70	%
Less:	FAD adjustment for Joint Ventures	1,640		856		92	%	1,245		32	%	6,326		3,940		61	%
	FAD adjustment for Discontinued Operations	21		46		-53	%	130		-84	%	301		377		-20	%
	Straight-line Rental Income	2,066		1,419		46	%	2,180		-5	%	5,622		4,560		23	%
	Net FAS 141 Adjustment	111		—		0	%	93		19	%	203		—		0	%
	Free Rent—Occupied (Net of Amortization, incl. First Cycle)	573		690		-17	%	530		8	%	1,687		2,032		-17	%
	Amortization of Mortgage Investment Discount	41		97		-58	%	40		2	%	163		289		-44	%
	Second Cycle Tenant Improvements	2,877		6,691		-57	%	5,704		-50	%	10,041		11,723		-14	%
	Second Cycle Leasing Commissions	1,025		2,711		-62	%	1,697		-40	%	4,178		4,316		-3	%
	Revenue Enhancing Recurring CAPEX	352		—		0	%	137		156	%	665		—		0	%
	Non- Revenue Enhancing Recurring CAPEX	779		232		236	%	886		-12	%	2,028		421		382	%

Funds Available for Distribution		26,559		22,070		20	%	23,263		14	%	75,932		71,261		7	%
	Diluted per Share	0.68		0.58		17	%	0.60		13	%	1.96		1.89		4	%
First Cycle Leasing Costs
	Tenant Improvement	106		—		0	%	2,304		-95	%	2,410		92		2531	%
	Leasing Commissions	25		—		0	%	261		-90	%	286		279		3	%

Funds Available for Distribution after First Cycle Leasing Costs		26,428		22,070		20	%	20,698		28	%	73,236		70,890		3	%
Funds Available for Distribution per Diluted Weighted Average Unit and Common Share		0.67		0.58		16	%	0.53		26	%	1.89		1.88		0	%
Redevelopment Costs		2,850		2,245		27	%	3,712		-23	%	7,197		5,781		24	%
Payout Ratio of Funds From Operations		53.71	%	51.38	%			53.29	%			53.88	%	54.21	%
Payout Ratio of Funds Available for Distribution Before First Cycle		68.61	%	75.81	%			77.59	%			71.19	%	70.37	%

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

		September 30,
		September 30,				June 30, 2003		March 31, 2003
		2003		2002		June 30, 2003		March 31, 2003
Market Capitalization
Common Equity:
	Common Shares Outstanding	35,876		30,376		31,173		30,939
	OP Units Outstanding	2,306		2,166		2,306		2,404

	Total Common Equity (Shares and Units)	38,182		32,542		33,479		33,343
	Share Price (End of Period)	36.11		30.74		34.89		30.56

	Equity Market Value	1,378,753		1,000,329		1,168,094		1,018,972
Preferred Equity at Liquidation Value:		—		115,000		115,000		115,000
Real Estate Debt
	Property Level Mortgage Debt	532,426		395,800		620,530		636,290
	Company's portion of Joint Venture Mortgages	402,635		396,513		396,047		396,194
	Outstanding Balance on—Term Loan	165,000		—		100,000		100,000
	Outstanding Balance on—Secured Credit Line	14,000		30,931		7,000		—
	Outstanding Balance on—Unsecured Credit Line	81,000		143,000		35,000		51,000

	Total Combined Debt	1,195,061		966,244		1,158,577		1,183,484
	Total Market Cap (Debt & Equity)	2,573,814		2,081,573		2,441,671		2,317,456
Availability
Senior Unsecured Line of Credit
	Maximum Line Available	300,000		300,000		300,000		300,000
	Letters of Credit issued	11,500		5,000		5,000		5,000
	Outstanding Balance	81,000		143,000		35,000		51,000

	Net Line Availability	207,500		152,000		260,000		244,000

Wells Fargo Term Loan
	Maximum Available	200,000		—		200,000		150,000
	Outstanding Balance	165,000		—		100,000		100,000

	Net Availability	35,000		—		100,000		50,000

Secured Line of Credit
	Maximum Line Available	75,000		75,000		75,000		75,000
	Outstanding Balance	14,000		30,931		7,000		—

	Net Line Availability	61,000		44,069		68,000		75,000

	Total Availability under Lines of Credit & Term Loan	303,500		196,069		428,000		369,000

Ratio Analysis
Consolidated Basis
	Debt to Market Cap Ratio	36.50	%	33.81	%	37.28	%	40.98	%
	Debt to Gross Real Estate Book Ratio(1)	61.71	%	56.45	%	57.92	%	59.88	%
	Secured Real Estate Debt to Secured Assets Gross Book(1)	70.56	%	67.68	%	69.89	%	70.87	%
	Unsecured Debt to Unencumbered Assets-Gross Book Value(1)	16.63	%	39.29	%	8.26	%	12.12	%
	Secured Line of Credit to Structured Finance Assets(1, 2)	8.34	%	15.89	%	5.58	%	0.00	%
Joint Ventures Allocated
	Combined Debt to Market Cap Ratio	46.43	%	46.42	%	47.45	%	51.07	%
Debt to Gross Real Estate Book Ratio(1)		63.41	%	60.34	%	60.48	%	61.81	%
	Secured Debt to Secured Assets Gross Book(1, 2)	68.97	%	67.13	%	68.34	%	68.94	%

(1): Excludes property level capital obligations.
(2): Secured debt ratio includes only property level secured debt.

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

		Three Months Ended September 30,								Three Months Ended June 30,				Nine Months Ended September 30,
		2003		2002		+/-		% Change		2003		% Change		2003		2002
Funds from operations		31,832		30,262		1,570		5	%	31,576		1	%	93,636		85,607
Less:	Non-Building Revenue	9,598		9,986		(388	)	-4	%	7,723		24	%	26,918		28,219
Plus:	Interest Expense (incl. Capital Lease Int.)	11,143		9,776		1,367		14	%	11,966		- -7	%	33,413		28,406
	Non Real Estate Depreciation	1,237		1,046		191		18	%	886		40	%	3,586		3,090
	MG&A Expense	2,994		3,160		(166	)	-5	%	2,804		7	%	8,984		9,719
	Preferred Dividend	2,093		2,300		(207	)	-9	%	2,300		-9	%	6,693		6,900

	GAAP NOI	39,700		36,558		3,142		9	%	41,809		-5	%	119,394		105,503
Cash adjustments
Less:	Free Rent (Net of Amortization)	948		765		183		24	%	438		116	%	2,610		2,869
	Net FAS 141 Adjustment	111		—		111		0	%	93		19	%	203		—
	Straightline Revenue Adjustment	3,047		2,495		552		22	%	3,205		-5	%	8,794		7,445
Plus:	2% Reserve for Tenant Credit Loss	270		975		(705	)	- -72	%	367		- -26	%	1,046		2,033
	Ground Lease Straight-line Adjustment	160		60		100		167	%	160		0	%	480		380

	Cash NOI	36,024		34,333		1,691		5	%	38,600		-7	%	109,313		97,602
	Real Estate Revenue, net	74,249		58,996		15,253		26	%	72,157		3	%	210,921		170,015
Operating margins
	GAAP NOI/Real Estate Revenue, net	53.47	%	61.97	%					57.94	%			56.61	%	62.06	%
	Cash NOI/Real Estate Revenue, net	48.52	%	58.20	%					53.49	%			51.83	%	57.41	%
	GAAP NOI before Ground Rent/Real Estate Revenue, net	58.00	%	68.97	%					62.47	%			61.25	%	67.63	%
	Cash NOI before Ground Rent/Real Estate Revenue, net	52.84	%	63.45	%					57.80	%			56.24	%	62.76	%
Components of debt and fixed charges
	Interest on Fixed Rate Loans	7,372		5,509		1,863		34	%	7,663		-4	%	21,266		16,855
	Interest on Floating Rate Loans	3,771		4,266		(495	)	-12	%	4,303		-12	%	12,148		11,550
	Fixed Amortization Principal Payments	927		1,402		(475	)	-34	%	1,005		-8	%	2,862		4,758

	Total Debt Service	12,070		11,177		893		8	%	12,971		-7	%	36,276		33,163

	Payments under Ground Lease Arrangements	3,206		3,099		107		3	%	3,106		3	%	9,316		9,097
	Preferred Stock Dividend	2,093		2,300		(208	)	-9	%	2,300		-9	%	6,693		6,900

	Total Fixed Charges	17,369		16,576		793		5	%	18,377		-5	%	52,285		49,160
Adjusted EBITDA		46,288		44,437						47,241				137,224		127,108
Interest Coverage Ratio		4.15		4.55						3.95				4.11		4.47
Debt Service Coverage ratio		3.83		3.98						3.64				3.78		3.83
Fixed Charge Coverage ratio		2.66		2.68						2.57				2.62		2.59

SELECTED FINANCIAL DATA
2003 Same Store
Unaudited
($000's omitted)

			Three Months Ended September 30,								Three Months Ended June 30,
			2003		2002		+/-		% Change		2003		+/-		% Change
Revenues
	Rental Revenue		47,172		46,352		820		2	%	46,535		637		1	%
	Credit Loss		(132	)	(705	)	573		-81	%	(408	)	276		-68	%
	Signage Rent		51		192		(141	)	-74	%	387		(336	)	-87	%
	Escalation & Reimbursement Revenues		10,567		6,952		3,615		52	%	8,504		2,063		24	%
	Investment & Other Income		1,754		271		1,483		548	%	295		1,459		495	%

	Total Revenues		59,412		53,062		6,350		12	%	55,313		4,099		7	%
Expenses
	Operating Expense		16,479		14,669		1,810		12	%	14,426		2,053		14	%
	Ground Rent		3,259		3,159		100		3	%	3,159		—		0	%
	Real Estate Taxes		9,470		7,352		2,118		29	%	8,815		655		7	%

			29,208		25,180		4,028		16	%	26,400		2,808		11	%
	EBITDA		30,204		27,882		2,322		8	%	28,913		1,291		4	%
	Interest		6,661		7,094		(433	)	-6	%	7,283		(621	)	-9	%
	Depreciation & Amortization		9,707		8,324		1,383		17	%	8,472		1,235		15	%

	Income Before Minority Interest		13,836		12,464		1,372		11	%	13,158		678		5	%
Plus: Real Estate Depreciation & Amortization			9,070		7,984		1,086		14	%	8,209		861		10	%
	FFO		22,906		20,448		2,458		12	%	21,367		1,539		7	%
Less: Non-Building Revenue			1,738		241		1,497		622	%	71		1,667		2345	%
Plus: Interest Expense			6,661		7,094		(433	)	-6	%	7,283		(622	)	-9	%
	Non Real Estate Depreciation		637		341		296		87	%	264		373		141	%

		GAAP NOI	28,466		27,642		824		3.0	%	28,843		(377	)	-1	%
Cash Adjustments
Less: Free Rent (Net of Amortization)			1,301		1,472		(171	)	-12	%	258		1,043		404	%
	Straightline Revenue Adjustment		1,314		1,386		(72	)	-5	%	1,391		(77	)	-6	%
Plus: Credit Loss			132		705		(573	)	-81	%	408		(276	)	-68	%
	Ground Lease Straight-line Adjustment		160		160		(0	)	0	%	160		(0	)	0	%

		Cash NOI	26,143		25,649		494		1.9	%	27,762		(1,621	)	-6	%
Operating Margins
	GAAP NOI to Real Estate Revenue, net		49.24	%	51.64	%					51.83	%
	Cash NOI to Real Estate Revenue, net		45.23	%	47.92	%					49.89	%
	GAAP NOI before Ground Rent/Real Estate Revenue, net		54.88	%	57.55	%					57.51	%
	Cash NOI before Ground Rent/Real Estate Revenue, net		50.59	%	53.52	%					55.28	%

DEBT SUMMARY SCHEDULE
Unaudited
($000's omitted)

			Principal O/S Outstanding 9/30/2003	Coupon		Fixed Annual Payment	2003 Principal Repayment	Maturity Date	Due at Maturity	As-Of Right Extension	Earliest Prepayment
			Unaudited ($000's omitted)
Fixed rate debt
Secured fixed Rate Debt
	125 Broad Street		76,354	8.29	%	7,058	799	10/11/2007	72,320	—	Oct-03
	673 First Avenue		35,000	5.67	%	1,985	—	2/20/2013	29,863	—	Feb-06
	CIBC (against 1414 Ave. of Americas and 70 W. 36th St.)		25,418	7.90	%	2,429	363	5/1/2009	12,196	—	Apr-03
	711 Third Avenue		48,144	8.13	%	4,420	410	9/10/2005	47,247	—	Jun-04
	555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps)		67,748	8.10	%	5,562	—	11/4/2004	66,959	—	Open
	420 Lexington Avenue		121,762	8.44	%	12,463	1,771	11/1/2010	104,406	—	Open

			374,426	8.01	%	33,917	3,343
Unsecured fixed rate debt
	Wells Fargo Unsecured Term Loan (Libor swap of 1.64% + 150bps)(1)		165,000	5.09	%	8,399	—	11/5/2007	165,000	—	Nov-05
		Total Fixed Rate Debt/Wtd Avg	539,426	7.12	%	42,316	3,343
Floating rate Debt
Secured floating rate debt
	220 E 42nd Street		158,000	2.87	%		—	9/1/2004	158,000	—	Sep-04
	Secured Line of Credit (Libor + 150bps)		14,000	2.67	%		—	12/22/2004	—	12/22/2005	Open

		Total Floating Rate Secured Debt/Wtd Avg	172,000	2.86	%		—
Unsecured floating rate debt
	Senior Unsecured Line of Credit (Libor + 150 bps)		81,000	2.56	%		—	3/20/2006	81,000	—	Open

		Total Floating Rate Unsecured Debt/Wtd Avg	81,000	2.56	%		—
Total Floating Rate Debt Outstanding			253,000	2.76	%
		Total Debt/Wtd Avg	792,426	5.73	%
Weighted Average Balance & Interest Rate			757,632	5.87	%

SUMMARY OF JOINT VENTURE DEBT

			Principal O/S
			Gross Principal	SLG Share
Joint Venture Debt
	180 Madison JV		45,000	22,455	4.57	%	—	—	7/9/2008	21,297	—	Open
	1250 Broadway (Libor Swap of 4.03% + 250bp)(2)		85,000	46,750	6.53	%	5,551	—	10/1/2004	85,000	10/1/2006	Open
	1515 Broadway (Libor + 191 bps)(3)		335,000	184,250	3.92	%	—	—	5/14/2004	184,250	5/14/2006	Open
	321 W 44th JV (Libor + 250bps)		22,000	7,700	3.65	%	—	—	4/30/2004	7,700	—	Open
	1 Park Avenue (Libor + 150 bps)		150,000	82,500	2.61	%	—	—	1/10/2004	82,500	—	Open
	100 Park Avenue JV		118,196	58,980	8.00	%	10,211	478	9/1/2010	53,637	—	Open

		Total Joint Venture Debt/Wtd Avg	755,196	402,635	4.58	%	15,762	478
Weighted Average Balance & Interest Rate with SLG JV debt				1,164,725	5.42	%

(1): Libor swap on $100mm is stepped. On Janary 4, 2004 base swap will increase to 4.06% for balance of the term. Libor swap on $65mm is 4.01% through August 2004.
(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.

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	13,720	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	1,386	2032
125 Broad Street(2)	1,075	1,075	1,075	1,075	—	2067	(6)

Total	13,057	13,057	13,155	13,351	15,106

Capitalized Lease
673 First Avenue	1,290	1,290	1,322	1,416	16,090	2037

(1): Per the balance sheet at September 30, 2003.
(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.
(6): The Company has an option to extend the ground lease for five years and six months starting January 1, 2068. The Condo Association can purchased the ground lease for $15million.

STRUCTURED FINANCE
($000's omitted)

	Assets Outstanding		Wtd Average Assets during quarter	Wtd Average Yield during quarter		Current Yield		Libor Rate
9/30/2002	194,709		194,709	12.45	%	12.40	%	1.82	%
Originations/Accretion	500
Preferred Equity	—
Redemptions	(49,570	)

12/31/2002	145,639		194,693	12.51	%	12.68	%	1.35	%
Originations/Accretion	23,040
Preferred Equity	(53,500	)
Redemptions	(683	)

3/31/2003	114,496		125,180	12.38	%	12.73	%	1.24	%
Originations/Accretion	11,022
Preferred Equity
Redemptions	—

6/30/2003	125,518		120,010	12.40	%	12.01	%	1.08	%
Originations/Accretion	70,021
Preferred Equity	—
Redemptions	(27,584	)

9/30/2003	167,954		128,030	11.27	%	11.35	%	1.05	%(2)

(1): Accretion includes original issue discounts and compounding investment income.
(2): At quarter end $79mm of assets have fixed index rates. The weighted average base rate is 3.04%.

STRUCTURED FINANCE
($000's omitted)

Type of Investment		Quarter End Balance(1)		Senior Financing		Exposure Psf		Wtd Average Yield during quarter		Current Yield
Junior Mortgage Participation		$	71,426	$	519,000	$	125	10.87	%	10.90	%
Mezzanine Debt		$	64,217	$	448,600	$	259	12.06	%	11.79	%
Preferred Equity		$	32,311	$	236,500	$	146	13.37	%	11.49	%
	Balance as of 9/30/03	$	167,954	$	1,204,100	$	180	11.27	%	11.35	%

(1): Most investments are indexed to Libor and are prepayable at dates prior to maturity subject to certain prepayment penalties or fees.

SELECTED PROPERTY DATA

											Annualized Rent
					Occupancy (%)
Properties			Rentable Sq. Feet	% of Total Sq. Feet	Occupancy (%)					Annualized Rent ($'s)			Total Tenants
Properties	Submarket	Ownership	Rentable Sq. Feet	% of Total Sq. Feet	Sep-03	Jun-03	Mar-03	Dec-02	Sep-02	Annualized Rent ($'s)	100%	SLG	Total Tenants
PROPERTIES 100% OWNED
"Same Store"
1140 Avenue of the Americas	Rockefeller Center	Leasehold Interest	191,000	2	96.0	97.8	97.1	97.8	95.5	7,789,380	3	2	24
110 East 42nd Street	Grand Central	Fee Interest	181,000	1	91.8	94.7	98.6	98.6	97.9	6,038,508	2	2	25
1372 Broadway	Times Square South	Fee Interest	508,000	4	99.6	99.6	99.6	97.9	97.8	15,386,496	6	4	28
1414 Avenue of the Americas	Rockefeller Center	Fee Interest	111,000	1	94.3	94.3	93.0	94.3	96.5	4,440,888	2	1	22
1466 Broadway	Times Square	Fee Interest	289,000	2	91.3	90.0	89.3	88.6	86.2	10,486,260	4	3	96
17 Battery Place—North	World Trade/Battery	Fee Interest	419,000	3	100.0	100.0	100.0	100.0	100.0	9,463,248	4	3	7
286 Madison Avenue	Grand Central South	Fee Interest	112,000	1	89.7	91.3	94.8	93.0	92.6	3,449,004	1	1	37
290 Madison Avenue	Grand Central South	Fee Interest	37,000	0	100.0	100.0	100.0	100.0	100.0	1,404,552	1	0	4
292 Madison Avenue	Grand Central South	Fee Interest	187,000	1	93.0	91.0	95.4	99.7	99.7	6,564,660	3	2	18
317 Madison Avenue	Grand Central	Fee Interest	450,000	4	94.9	94.9	96.1	93.4	94.3	14,250,384	5	4	101
420 Lexington Ave (Graybar)	Grand Central North	Operating Sublease	1,188,000	9	97.5	96.2	95.4	95.0	93.2	49,902,084	19	14	258
440 Ninth Avenue	Times Square South	Fee Interest	339,000	3	100.0	98.9	92.5	92.3	97.1	10,039,752	4	3	14
470 Park Avenue South	Park Avenue South/Flatiron	Fee Interest	260,000	2	94.7	94.5	92.7	99.7	99.3	7,633,200	3	2	23
555 West 57th	Midtown West	Fee Interest	941,000	7	99.9	100.0	100.0	100.0	100.0	22,176,192	9	6	20
673 First Avenue	Grand Central South	Leasehold Interest	422,000	3	99.8	99.8	99.8	99.8	99.8	13,870,188	5	4	15
70 West 36th Street	Times Square South	Fee Interest	151,000	1	96.8	96.3	90.4	92.3	93.1	4,021,584	2	1	31
711 Third Avenue	Grand Central North	Operating Sublease(1)	524,000	4	99.8	99.8	99.8	99.1	100.0	20,751,828	8	6	19

Subtotal/Weighted Average			6,310,000	50	97.5	97.3	96.9	96.9	96.7	207,668,208	80	60	742
Adjustments
125 Broad Street	Downtown	Fee Interest	525,000	4	100.0	100.0	100.0			16,356,240	6	4	5
220 East 42nd Street	Grand Central East	Fee Interest	1,135,000	9	94.5	94.5	91.9			35,450,076	14	10	42

Subtotal/Weighted Average			1,660,000	13	96.2	96.2	94.5			51,806,316	20	14	47
Total/Weighted Average Properties 100% Owned			7,970,000	63	97.3	97.0	96.3	96.9	96.7	259,474,524	100	74	789
PROPERTIES <100% OWNED
Unconsolidated
180 Madison Avenue—50%	Grand Central South	Fee Interest	265,000	2	87.0	85.7	83.8	82.0	82.1	7,605,108		1	50
1 Park Avenue—55%	Grand Central South	Various Interests	913,000	7	86.0	85.9	85.9	98.6	98.6	30,929,316		6	17
1250 Broadway—55%	Penn Station	Fee Interest	670,000	5	91.8	92.6	98.2	98.5	99.3	20,145,456		3	28
100 Park Avenue—50%	Grand Central South	Fee Interest	834,000	7	95.8	95.8	98.3	99.0	100.0	31,218,720		5	35
1515 Broadway—55%	Times Square	Fee Interest	1,750,000	14	95.8	97.0	96.7	98.5	98.3	63,748,884		10	15
321 West 44th Street—35%	Times Square	Fee Interest	203,000	2	90.6	90.6	90.6	90.6	90.2	4,991,578		1	27

Subtotal/Weighted Average			4,635,000	37	92.6	93.0	94.1	97.3	97.5	158,639,062		26	172
Grand Total/Weighted Average			12,605,000	100	95.5	95.5	95.5	96.9	97.0	418,113,586			961
Grand Total—SLG share of Annualized Rent										343,747,677		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	1,277,890	$	57,762,252	$	45.20	13.8	%	$	31,769,239	9.2	%
Omnicom Group		220 East 42nd Street	2008, 2009, 2010, 2017	419,111	$	12,942,516	$	30.88	3.1	%	$	12,942,516	3.8	%
Salomon Smith Barney		125 Broad Street	2010	330,900	$	10,194,900	$	30.81	2.4	%	$	10,194,900	3.0	%
The City of New York		17 Battery Place	2012	325,664	$	5,712,000	$	17.54	1.4	%	$	5,712,000	1.7	%
Visting Nurse Services		1250 Broadway	2005, 2006 & 2011	251,251	$	7,214,676	$	28.72	1.7	%	$	3,968,072	1.2	%
BMW of Manhattan, Inc.		555 West 57th Street	2012	227,782	$	3,612,144	$	15.86	0.9	%	$	3,612,144	1.1	%
Philip Morris Managament Corp		100 Park Avenue	2007	175,887	$	7,421,472	$	42.19	1.8	%	$	3,703,315	1.1	%
City University of New York -CUNY		555 West 57th Street	2010, 2011, & 2015	171,733	$	5,105,028	$	29.73	1.2	%	$	5,105,028	1.5	%
J&W Seligman & Co., Inc.		100 Park Avenue	2009	168,390	$	5,765,616	$	34.24	1.4	%	$	2,877,042	0.8	%
C.B.S., Inc.		555 West 57th Street	2003 & 2010	166,215	$	3,950,880	$	23.77	0.9	%	$	3,950,880	1.1	%
Segal Company		1 Park Avenue	2009	157,944	$	6,095,184	$	38.59	1.5	%	$	3,352,351	1.0	%
Metro North Commuter Railroad Co.		420 Lexington Avenue	2008 & 2016	134,687	$	4,112,652	$	30.53	1.0	%	$	4,112,652	1.2	%
Tribune Newspaper		220 East 42nd Street	2010	134,208	$	3,940,920	$	29.36	0.9	%	$	3,940,920	1.1	%
St. Luke's Roosevelt Hospital		555 West 57th Street	2014	134,150	$	3,297,312	$	24.58	0.8	%	$	3,297,312	1.0	%
Fahenstock & Co., Inc.		125 Broad Street	2004 & 2013	103,566	$	2,868,564	$	27.70	0.7	%	$	2,868,564	0.8	%
Coty Inc.		1 Park Avenue	2015	103,283	$	4,066,920	$	39.38	1.0	%	$	2,236,806	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	$	2,895,528	$	28.46	0.7	%	$	2,895,528	0.8	%
Ketchum, Inc.		711 Third Avenue	2015	100,876	$	4,417,884	$	43.80	1.1	%	$	4,417,884	1.3	%
CHF Industries		1 Park Avenue	2005	100,000	$	3,687,960	$	36.88	0.9	%	$	2,028,378	0.6	%
New York Presbyterian Hospital		555 West 57th Street & 673 First Avenue	2006 & 2009	99,650	$	3,064,632	$	30.75	0.7	%	$	3,064,632	0.9	%
Ann Taylor Inc.		1372 Broadway	2010	93,020	$	2,841,180	$	30.54	0.7	%	$	2,841,180	0.8	%
United Nations Population Fund		220 East 42nd Street	2010	91,021	$	4,048,908	$	44.48	1.0	%	$	4,048,908	1.2	%
Crain Communications Inc.		711 Third Avenue	2009	90,531	$	3,661,296	$	40.44	0.9	%	$	3,661,296	1.1	%
Advanstar Communications		1 Park Avenue	2010	85,284	$	3,184,692	$	37.34	0.8	%	$	1,751,581	0.5	%

	TOTAL			5,147,236	$	172,075,116	$	33.43	41.2	%	$	128,468,627	37.4	%
Wholly Owned Portfolio + Allocated JV Properties				12,605,000	$	418,113,586	$	33.17			$	343,747,677

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

THIRD QUARTER 2003—LEASING ACTIVITY
Available Space

Activity Type		Building Address	# of Leases	Usable SF		Rentable SF	Rent/Rentable SF ($'s)
Vacancy at 6/30/03				574,383
Acquired Vacancies
	Office			—
Sold Vacancies
	Office			—
		1370 Broadway		(16,790	)
Expiring Space
	Office
		317 Madison Avenue	5	8,279		11,457	37.95
		1515 Broadway	4	22,385		30,104	41.88
		180 Madison Avenue	4	4,393		6,108	34.69
		1250 Broadway	3	18,847		23,813	27.83
		286 Madison	4	5,028		6,326	31.23
		292 Madison	1	4,406		5,652	46.56
		555 W 57th Street	1	1,213		1,607	26.94
		1414 Sixth Avenue	2	18,851		21,515	30.83
		470 Park Ave South	1	6,838		8,400	28.78
		1140 Sixth Avenue	3	12,387		15,482	32.03
		110 East 42nd Street	7	9,814		12,265	42.52
		321 West 44th Street	2	5,054		6,393	15.15
		1466 Broadway	8	6,016		7,915	41.46
		420 Lexington Avenue	10	13,634		17,735	36.29

		Total/Weighted Average	55	137,145		174,772	34.70
	Retail
		1140 Sixth Avenue	1	1,737		2,412	32.39
		711 Third Avenue	1	7,226		7,226	86.40
		420 Lexington Avenue	2	2,191		2,191	31.13

		Total/Weighted Average	4	11,154		11,829	65.11
	Storage
		317 Madison	1	51		51	12.00
		1 Park Avenue	1	2,079		2,654	22.00
		1250 Broadway	1	216		216	5.00
		1466 Broadway	1	359		359	6.69
		420 Lexington Avenue	1	254		254	25.00

		Total/Weighted Average	5	2,959		3,534	19.48
Move Outs
	Office
		180 Madison Avenue	3	3,145		4,640	34.75
		286 Madison Avenue	1	1,635		2,359	38.00
		1140 Sixth Avenue	1	3,401		4,307	49.17
		110 East 42nd Street	1	867		1,057	21.00
		1466 Broadway	2	2,294		3,269	44.17
		420 Lexington Avenue	2	1,873		2,641	46.46

		Total/Weighted Average	10	13,215		18,273	41.15
	Retail
		317 Madison Avenue	1	589		589	155.00

		Total/Weighted Average	1	589		589	155.00
	Storage
		420 Lexington Avenue	1	549		634	17.30

		Total/Weighted Average	1	549		634	17.30
Evicted Tenants
	Office
		Total/Weighted Average	—	—		—
	Retail
		Total/Weighted Average	—	—		—	—
Relocating Tenants
	Office
		180 Madison Avenue	3	2,213		2,691	39.22
		1467 Broadway	2	2,521		3,431	38.05
		420 Lexington Avenue	4	2,386		2,612	43.11

		Total/Weighted Average	9	7,120		8,734	39.93
Available Space
	Office		74	157,480		201,779	35.51
	Retail		5	11,743		12,418	69.38
	Storage		6	3,508		4,168	19.15

		Total	85	172,731		218,365	37.13
	Available Space			730,324

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

THIRD QUARTER—2003 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 9/30/03					730,324
Renewing Tenants
	Office
		317 Madison Avenue	2	5.0	3,660	5,350	30.00	38.32	4.76	1.5
		286 Madison Avenue	1	3.0	1,393	1,990	28.00	30.00	9.07	—
		1414 Sixth Avenue	1	7.3	16,521	20,148	36.00	30.29	10.00	4.0
		1140 Sixth Avenue	1	7.3	8,063	9,722	37.50	32.93	—	—
		110 East 42nd Street	1	5.4	1,230	1,758	36.00	33.24	10.85	1.0
		1466 Broadway	2	3.5	2,492	3,495	33.82	39.69	6.13	2.0
		420 Lexington Avenue	3	3.5	3,663	5,346	36.67	39.07	4.79	—

		Total/Weighted Average	11	6.1	37,022	47,809	35.22	32.15	6.51	0.8
Relocating Tenants
	Office
		180 Madison	3	3.9	2,969	3,896	38.36	38.96	10.47	5.0
		1466 Broadway	2	2.8	1,910	2,846	33.45	40.34	13.45	2.0
		420 Lexington Avenue	4	4.8	3,735	5,490	37.40	28.78	28.45	1.5

		Total/Weighted Average	9	4.0	8,614	12,232	36.79	34.31	19.23	0.9
New Tenants Replacing Old Tenants
	Office
		180 Madison Avenue	3	3.2	2,663	3,914	36.81	30.89	10.12	4.0
		1250 Broadway	1	3.0	10,854	14,429	30.50	25.35	10.00	1.0
		286 Madison Avenue	1	7.0	339	489	32.00	27.00	39.86	3.0
		1414 Sixth Avenue	1	7.3	2,330	3,328	36.00	26.49	45.00	—
		70 West 36th Street	1	5.0	768	1,100	22.00	32.64	30.00	2.0
		470 Park Avenue South	1	15.0	7,304	9,735	28.00	23.97	42.84	7.0
		110 East 42nd St	1	7.8	867	1,239	40.20	21.00	5.00	1.8
		1466 Broadway	5	2.8	4,511	6,229	34.05	43.19	8.76	5.0
		420 Lexington Avenue	12	7.6	20,006	29,094	34.03	33.18	28.49	30.5

		Total/Weighted Average	26	7.0	49,642	69,557	32.61	28.90	24.34	2.1
	Retail
		711 Third Avenue	1	0.5	7,226	7,301	86.52	86.34	—	—
		420 Lexington Avenue	1	5.0	948	1,017	50.00	39.96	—	—

		Total/Weighted Average	2	1.1	8,174	8,318	82.05	79.89	—	—
	Storage
		420 Lexington Avenue	1	1.0	55	79	20.00	25.00	—	—

		Total/Weighted Average	1	1.0	55	79	20.00	25.00	—	—
	Total/Weighted Average Office		46	6.4	95,278	129,598	33.97	30.61	17.28	1.4
	Total/Weighted Average Retail		2	1.1	8,174	8,318	82.05	79.89	—	—
	Total/Weighted Average Storage		1	1	55	79	20.00	25.00	—	—
New Tenants Replacing Vacancies
	Office
		317 Madison Avenue	1	10	4,696	7,010	27.50	—	42.65	—
		220 East 42nd Street	1	6.5	2,474	3,366	27.00	—	—	—
		180 Madison Avenue	3	5.6	5,430	7,984	36.28	—	24.91	5.5
		292 Madison Avnue	1	10.0	8,113	10,536	27.00	—	52.00	5.6
		440 Ninth Avenue	1	5.6	4,836	5,861	23.00	—	42.71	3.0
		1466 Broadway	3	2.9	2,977	4,369	34.89	—	9.80	2.5
		420 Lexington Avenue	2	9.6	2,765	3,722	34.73	—	38.57	7.0

		Total/Weighted Average	12	7.5	31,291	42,848	29.74	—	34.60	2.0
	Retail
		180 Madison Avenue	1	15.3	2,070	2,238	85.79	—	—	4.0
		440 Ninth Avenue	1	5.3	1,354	1,934	13.50	—	—	3.0

		Total/Weighted Average	2	10.3	3,424	4,172	52.28	—	—	3.5
	Storage
		1 Park Avenue	1	12.1	580	629	25.00	—	—	—

		Total/Weighted Average	1	12.1	580	629	25.00	—	—	—
Leased Space
	Office		58	6.6	126,569	172,446	32.92	30.61	21.58	1.5
	Retail		4	4.3	11,598	12,490	72.11	79.89	—	—
	Storage		2	10.9	635	708	24.44	25.00	—	—

		Total	64	6.5	138,802	185,644	35.52	32.45	20.05	1.4
Sub-Total Available Space @ 9/30/03					591,522
Holdover Tenants
	Office
		317 Madison	1	0	643	870	31.38	31.38	—	—
		1515 Broadway	1	0	640	640	20.00	20.00	—	—
		1250 Broadway	1	0	2,644	3,617	28.30	29.81	—	—
		286 Madison Avenue	2	0	3,046	3,477	32.24	29.84	—	—
		1140 Sixth Avenue	3	0	6,061	8,172	29.43	31.07	—	—
		110 East 42nd Street	2	0	3,268	4,829	46.86	46.86
		321 West 44th Street	2	0	5,054	6,393	15.15	15.15
		1466 Broadway	4	0	2,679	3,135	40.06	40.06	—	—
		420 Lexington Avenue	4	0	5,381	6,543	31.49	31.49	—	—

			20	0	29,416	37,676	30.52	30.87	—	—
	Storage
		317 Madison Avenue	1	0	51	51	12.00	12.00	—	—
		1 Park Avenue	1	0	2,079	2,654	22.00	22.00	—	—
		1250 Broadway	1	0	216	216	5.00	5.00	—	—
		1466 Broadway	1	0	359	359	6.69	6.69	—	—
		420 Lexington Avenue	1	0	254	254	25.00	25.00	—	—

			5	0	2,959	3,534	19.48	19.48	—	—
Total Available Space @ 9/30/03					559,147

Early Renewals
Office
	180 Madison Avenue	1	1.1	2,880	4,236	28.00	24.00	—	—
	470 Park Avenue South	1	1.0	6,975	8,500	17.50	15.50	—	—
	1466 Broadway	1	1.4	1,303	1,761	34.00	36.00	10.25	—
	420 Lexington	8	3.6	66,832	88,491	37.65	39.73	9.06	5.0

		11	3.2	77,990	102,988	35.53	36.61	7.96	0.5
Renewals
	Expired/Renewed Office	11	6.1	37,022	47,809	35.22	32.15	6.51	0.8
	Early Renewals Office	11	3.2	77,990	102,988	35.53	36.61	7.96	0.5
	Early Renewals Retail	0	0.0	—	—	—	—	—	—
	Early Renewals Storage	0	0.0	—	—	—	—	—	—

	Total	22	4.1	115,012	150,797	35.43	35.19	7.50	0.6

*: 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*			12	6,207	0.08	%	$	196,848	$	31.71	$	37.14
In 2nd Quarter 2003^*			8	61,261	0.77	%	$	1,817,292	$	29.66	$	37.30
In 3rd Quarter 2003*			18	27,030	0.34	%	$	1,005,432	$	37.20	$	36.35
In 4th Quarter 2003			35	253,504	3.20	%	$	6,872,676	$	27.11	$	32.21

	Total 2003		73	348,002	4.40	%	$	9,892,248	$	28.43	$	33.52
In 1st Quarter 2004			35	87,972	1.11	%	$	3,747,696	$	42.60	$	36.27
In 2nd Quarter 2004			24	194,593	2.46	%	$	7,033,320	$	36.14	$	30.26
In 3rd Quarter 2004			36	106,618	1.35	%	$	3,578,076	$	33.56	$	33.58
In 4th Quarter 2004			37	145,131	1.83	%	$	4,606,548	$	31.74	$	34.44

	Total 2004		132	534,314	6.75	%	$	18,965,640	$	35.50	$	33.05
		2005	136	538,767	6.81	%	$	18,095,988	$	33.59	$	33.97
		2006	98	589,327	7.45	%	$	19,620,372	$	33.29	$	33.66
		2007	81	368,733	4.66	%	$	13,086,384	$	35.49	$	34.94
		2008	88	576,399	7.28	%	$	19,140,300	$	33.21	$	33.28
		2009	40	591,263	7.47	%	$	20,431,068	$	34.55	$	33.16
		2010	62	1,577,735	19.94	%	$	53,165,040	$	33.70	$	34.21
		2011	23	309,800	3.91	%	$	13,457,532	$	43.44	$	35.75
		2012	24	739,641	9.35	%	$	17,855,880	$	24.14	$	28.16
	Thereafter		67	1,739,891	21.99	%	$	55,764,072	$	32.05	$	34.33

			824	7,913,872	100.00	%	$	259,474,524	$	32.79	$	33.45

*: Includes month to month holdover tenants that expired prior to 9/30/03.
**: Tenants may have multiple leases.
**: Represents current in place annualized rent allocated by year of maturity.

ANNUAL LEASE EXPIRATIONS
Joint Venture Properties

Year of Lease Expiration			Number of Expiring Leases**	Square Footage of Expiring Leases	Percentage of Total Leased Sq. Ft.		Annualized Rent of Expiring Leases ($'s)		Annualized Rent Per Leased Square Foot of Expiring Leases $/psf ***		Year 2003 Weighted Average Asking Rent $/psf
In 1st Quarter 2003*			2	3,294	0.08	%	$	71,196	$	21.61	$	37.33
In 2nd Quarter 2003*			2	7,686	0.18	%	$	175,920	$	22.89	$	35.23
In 3rd Quarter 2003*			6	38,083	0.89	%	$	905,496	$	23.78	$	40.50
In 4th Quarter 2003			6	30,587	0.72	%	$	1,739,280	$	56.86	$	40.09

	Total 2003		16	79,650	1.87	%	$	2,891,892	$	36.31	$	39.70
In 1st Quarter 2004			1	4,548	0.11	%	$	58,800	$	12.93	$	23.00
In 2nd Quarter 2004			9	43,521	1.02	%	$	1,388,940	$	31.91	$	39.35
In 3rd Quarter 2004			7	103,111	2.42	%	$	3,819,384	$	37.04	$	40.04
In 4th Quarter 2004			5	10,769	0.25	%	$	575,040	$	53.40	$	28.22

	Total 2004		22	161,949	3.80	%	$	5,842,164	$	36.07	$	38.59
		2005	30	401,173	9.42	%	$	12,039,144	$	30.01	$	40.79
		2006	28	379,419	8.91	%	$	11,470,020	$	30.23	$	36.99
		2007	16	286,121	6.72	%	$	11,492,712	$	40.17	$	41.83
		2008	21	387,801	9.11	%	$	13,558,440	$	34.96	$	40.01
		2009	16	521,138	12.24	%	$	19,348,800	$	37.13	$	40.10
		2010	15	1,334,013	31.34	%	$	57,172,392	$	42.86	$	44.56
		2011	5	101,393	2.38	%	$	4,378,044	$	43.18	$	33.41
		2012	7	194,594	4.57	%	$	6,012,408	$	30.90	$	36.67
	Thereafter		13	409,570	9.62	%	$	14,433,046	$	35.24	$	40.33

			189	4,256,821	100.00	%	$	158,639,062	$	37.27	$	41.03

*: Includes month to month holdover tenants that expired prior to 9/30/03
**: Tenants may have multiple leases.
***: Represents in place annualized rent allocated by year of maturity.

SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997

		Property	Type of Ownership	Submarket	Net Rentable s.f.	% Leased at acquisition	% Leased 9/30/2003	Acquisition Price ($'s)
1998 Acquisitions
	Mar-98	420 Lexington	Operating Sublease	Grand Central North	1,188,000	83	98	$	78,000,000
	Mar-98	1466 Broadway	Fee Interest	Times Square	289,000	87	91	$	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	100	$	65,600,000
	Jun-98	440 9th Avenue	Fee Interest	Garment	339,000	76	100	$	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	90
		290 Madison Avenue			36,800	86	100
		292 Madison Avenue			187,000	97	93
	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	92	$	192,000,000
	Dec-00	180 Madison Avenue	Fee Interest	Grand Central South	265,000	90	87	$	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	N/A	$	50,500,000
	Jan-01	1 Park Avenue	Various Interests	Grand Central South	913,000	97	86	$	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	95	$	105,600,000
Acquisition of JV Interest
	Sep-01	1250 Broadway—49.9% JV(1)	Fee Interest	Penn Station	670,000	98	92	$	126,500,000

					2,541,000			$	562,200,000
2002 Acquisitions
	May-02	1515 Broadway—55% JV	Fee Interest	Times Square	1,750,000	98	96	$	483,500,000

								$	483,500,000

2003 Acquisitions
	Feb-03	220 East 42nd Street	Fee Interest	United Nations	1,135,000	92	95	$	265,000,000
	Mar-03	125 Broad Street	Fee Interest	Downtown	525,000	100	100	$	92,000,000

					1,660,000			$	357,000,000

(1): Current ownership interest is 55%. (From 9/1/01-10/31/01 the company owned 99.8% of this property.)

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

					253,000	$	53,100,000	$	210
2003 Sales
	Mar-03	50 West 23rd Street	Fee Structure	Chelsea	333,000	$	66,000,000	$	198
	Jul-03	1370 Broadway	Fee Structure	Garment	255,000	$	58,500,000	$	229

					588,000	$	124,500,000	$	212

(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	chirsch@corinthianpartners.com
Credit Suisse First Boston	Jay Haberman	(212) 538-5250	Jay.haberman@csfb.com
Deutsche Banc Alex. Brown	Louis W. Taylor	(212) 469-4912	louis.taylor@db.com
Goldman Sachs	Carey Callaghan	(212) 902-4351	carey.callaghan@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
J.P. Morgan Securities Inc.	Anthony Paolone	(212) 622-6682	anthony.paolone@jpmorgan.com
McDonald & Company	Anatole Pevnev	(216) 263-4783	apevnev@mcdinvest.com
Prudential Securities	James W. Sullivan	(212) 778-2515	jim_sullivan@prusec.com
Raymond James & Associates	Paul Puryear	(727) 567-2253	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.

QuickLinks

Exhibit 99.2

TABLE OF CONTENTS
Conversion of Preferred Income Equity Redeemable Shares
Forward Swap Contract
Consolidation of Affiliate
FINANCIAL HIGHLIGHTS Third Quarter Unaudited
COMPARATIVE BALANCE SHEETS Unaudited (000's omitted)
COMPARATIVE BALANCE SHEETS Unaudited (000's omitted)
COMPARATIVE STATEMENTS OF OPERATIONS Unaudited ($000's omitted)
JOINT VENTURE STATEMENTS Balance sheet for unconsolidated joint ventures Unaudited (000's omitted)
JOINT VENTURE STATEMENTS Statements of operations for unconsolidated joint ventures Unaudited (000's omitted)
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ($000's omitted)
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited ($000's omitted—except per share data)
SELECTED FINANCIAL DATA Capitalization Analysis Unaudited ($000's omitted)
SELECTED FINANCIAL DATA Property NOI and Coverage Ratios Unaudited ($000's omitted)
SELECTED FINANCIAL DATA 2003 Same Store Unaudited ($000's omitted)
DEBT SUMMARY SCHEDULE Unaudited ($000's omitted)
SUMMARY OF JOINT VENTURE DEBT
SUMMARY OF GROUND LEASE ARRANGEMENTS Consolidated Statement (REIT) ($000's omitted)
STRUCTURED FINANCE ($000's omitted)
STRUCTURED FINANCE ($000's omitted)
SELECTED PROPERTY DATA
LARGEST TENANTS BY SQUARE FEET LEASED Wholly Owned Portfolio + Allocated JV Properties
THIRD QUARTER 2003—LEASING ACTIVITY Available Space
THIRD QUARTER—2003 LEASING ACTIVITY Leased Space
ANNUAL LEASE EXPIRATIONS Consolidated Properties
ANNUAL LEASE EXPIRATIONS Joint Venture Properties
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997
SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999