UNITED STATES

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):

January 30, 2014 (January 29, 2014)

 

SL GREEN REALTY CORP.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

 

MARYLAND

(STATE OF INCORPORATION)

 

1-13199

 

13-3956775

(COMMISSION FILE NUMBER)

 

(IRS EMPLOYER ID. NUMBER)

 

 

 

420 Lexington Avenue

 

10170

New York, New York

 

(ZIP CODE)

(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

 

(212) 594-2700

(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02.                                        Results of Operations and Financial Condition

 

Following the issuance of a press release on January 29, 2014 announcing SL Green Realty Corp.’s, or the Company, results for the fourth quarter and full year ended December 31, 2013, 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.

 

The information (including Exhibits 99.1 and 99.2) being furnished pursuant to this “Item 2.02. Results of Operations and Financial Condition” shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act regardless of any general incorporation language in such filing.

 

Item 7.01.                                        Regulation FD Disclosure

 

As discussed in Item 2.02 above, on January 29, 2014, the Company issued a press release announcing its results for the fourth quarter and full year ended December 31, 2013.

 

The information being furnished pursuant to this “Item 7.01. Regulation FD Disclosure” shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.  This information will not be deemed an admission as to the materiality of such information that is required to be disclosed solely by Regulation FD.

 

Item 9.01.                                        Financial Statements and Exhibits

 

(d)                                 Exhibits

 

99.1                        Press Release regarding fourth quarter and full year 2013 earnings.

99.2                        Supplemental package.

 

Non-GAAP Supplemental Financial Measures

 

Funds from Operations (FFO)

 

FFO is a widely recognized measure of REIT performance.  The Company computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or 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 does.  The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring, sales of properties and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.  The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties.  The Company also uses FFO as one of several criteria to determine performance-based bonuses for members of its senior management.  FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time.  Historically, however, real estate values have risen or fallen with market conditions.  Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property

 

2



 

dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs, providing perspective not immediately apparent from net income.  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 the Company’s financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s 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 the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

 

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

 

The Company presents earnings before interest, taxes, depreciation and amortization, or 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 the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) is calculated by adding income taxes, loan loss reserves and the Company’s share of joint venture depreciation and amortization to EBITDA.

 

Same-Store Net Operating Income, Same-Store Cash Net Operating Income and Related Measures

 

The Company presents same-store net operating income, same-store cash net operating income, same-store joint venture net operating income, and same-store joint venture cash net operating income because the Company believes that these measures provide investors with useful information regarding the operating performance of properties that are comparable for the periods presented. For properties owned since January 1, 2012 and still owned in the same manner at the end of the current quarter, the Company determines same-store net operating income by subtracting same-store property operating expenses and ground rent from same-store recurring rental and tenant reimbursement revenues. Same-store cash net operating income is derived by deducting same-store straight line and free rent from, and adding same-store tenant credit loss allowance to, same-store net operating income. Same-store joint venture net operating income and same-store joint venture cash net operating income are calculated in the same manner as noted above, but includes just the Company’s pro-rata share of the joint venture net operating income. None of these measures is 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-

 

3



 

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).

 

4



 

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/ James Mead

 

 

James Mead

 

Chief Financial Officer

 

 

Date: January 30, 2014

 

 

5


Exhibit 99.1

 

CONTACT

James Mead

Chief Financial Officer

-and-

Heidi Gillette

Investor Relations

(212) 594-2700

 

SL GREEN REALTY CORP. REPORTS

FOURTH QUARTER AND FULL YEAR 2013 FFO OF $1.42 AND $5.21 PER SHARE BEFORE TRANSACTION COSTS; AND EPS OF $0.39 AND $1.10 PER SHARE

 

Financial and Operating Highlights

 

·                  Fourth quarter FFO of $1.42 per share before transaction related costs of $0.04 per share compares with prior year FFO of $1.16 per share before transaction related costs of $0.02 per share.  Full year FFO of $5.21 per share before transaction related costs of $0.05 per share compares with prior year FFO of $5.35 per share before transaction related costs of $0.07 per share.  The prior year results reflect additional income of $67.9 million, or $0.73 per share, relating to profit from the recapitalization of 717 Fifth Avenue.

 

·                  Fourth quarter net income attributable to common stockholders of $0.39 per share compares with prior year net income of $0.22 per share.  Full year net income attributable to common stockholders of $1.10 per share compares with prior year net income of $1.74 per share.

 

·                  Combined same-store cash NOI increased 3.1 percent and 3.0 percent for the fourth quarter and full year, respectively, compared to the prior year.

 

·                  Increased the Company’s quarterly dividend by 52 percent to a new annual rate of $2.00 per share beginning with the fourth quarter dividend, which was paid in January 2014.

 

·                  Signed a total of 57 Manhattan office leases covering 3,391,447 square feet during the fourth quarter, inclusive of the 2,634,670 square foot extension with an affiliate of Citigroup, Inc.  The mark-to-market on the Citi extension was 12.8 percent and the mark-to-market on the remaining 756,777 square feet was 4.9 percent higher than the previously fully escalated rents on the same spaces.

 

·                  Manhattan same-store occupancy, before reclassifying 317 Madison Avenue, 331 Madison Avenue and 51 East 42nd Street to development, increased to 96.1 percent as of December 31, 2013, inclusive of leases signed but not yet commenced, as compared to 95.8 percent at September 30, 2013.

 

·                  Signed a total of 35 Suburban office leases covering 183,896 square feet during the fourth quarter. The mark-to-market on signed Suburban office leases was 1.3 percent higher in the fourth quarter as compared to the previously fully escalated rents on the same spaces.  Same-store occupancy

 



 

for the Company’s Suburban portfolio increased to 82.1 percent, inclusive of leases signed but not yet commenced, at December 31, 2013 as compared to 81.2 percent at September 30, 2013.

 

Investing Highlights

 

·                  Formed a joint venture that acquired a 49-year leasehold interest covering the entire retail portion of 650 Fifth Avenue in Manhattan. The venture subsequently entered an agreement to buy out the lease of retailer Juicy Couture, accelerating the venture’s ability to reposition the building’s premier retail corner location.

 

·                  Closed on the sale of the Company’s joint venture interest in 27-29 West 34th Street in Manhattan for an allocated sales price of $70.1 million, and 21-25 West 34th Street in Manhattan for an allocated sales price of $114.9 million.

 

·                  Closed on the acquisition of an assemblage of retail development properties located on Fifth Avenue in Manhattan for $146.2 million.

 

·                  Originated new debt investments totaling $412.3 million in the fourth quarter, of which the Company retained $79.7 million at a weighted average current yield of 10.2 percent, all of which are directly or indirectly collateralized by New York City commercial properties.

 

Financing Highlights

 

·                  Issued 2.6 million shares of common stock, par value $0.01 per share, at a price of $95.94 per share, generating net proceeds of $248.9 million, after deducting offering expenses.

 

·                  Closed on a $300.0 million refinancing of the Company’s debt and preferred equity liquidity facility.

 

·                  Closed on a $79.2 million, 2.4 year loan extension of the mortgage at 16 Court Street in Brooklyn.

 

Summary

 

New York, NY, January 29, 2014 — SL Green Realty Corp. (NYSE:  SLG) today reported funds from operations, or FFO, of $134.5 million, or $1.38 per share, after giving consideration to transaction costs of $3.6 million, or $0.04 per share, for the quarter ended December 31, 2013, compared to $107.2 million, or $1.14 per share, after giving consideration to transaction costs of $1.5 million, or $0.02 per share for the same quarter in 2012.  The Company also reported FFO of $491.6 million, or $5.16 per share, after giving consideration to transaction costs of $4.3 million, or $0.5 per share, for the year ended December 31, 2013, compared to $490.3 million, or $5.28 per share, after giving consideration to transaction costs of $6.6 million, or $0.07 per share, for the year ended December 31, 2012.  The prior year results reflect additional income of $67.9 million, or $0.73 per share, relating to profit from the recapitalization of 717 Fifth Avenue.

 



 

Net income attributable to common stockholders totaled $37.1 million, or $0.39 per share, for the quarter ended December 31, 2013, compared to $20.0 million, or $0.22 per share, for the same quarter in 2012.  Net income attributable to common stockholders totaled $101.3 million, or $1.10 per share, for the year ended December 31, 2013, compared to $156.0 million, or $1.74 per share, for the year ended December 31, 2012.

 

All per share amounts in this press release are presented on a diluted basis.

 

Operating and Leasing Activity

 

For the fourth quarter of 2013, the Company reported consolidated revenues and operating income of $374.7 million and $212.4 million, respectively, compared to $346.6 million and $177.8 million, respectively, for the same period in 2012. For the year ended December 31, 2013, the Company reported consolidated revenues and operating income of $1.5 billion and $818.0 million, respectively, compared to $1.4 billion and $823.5 million, respectively, for the year ended December 31, 2012.

 

Same-store cash NOI on a combined basis increased by 3.1 percent to $179.4 million for the quarter ended December 31, 2013 as compared to the same period in 2012.  Consolidated property same-store cash NOI increased by 2.9 percent to $155.1 million and unconsolidated joint venture property same-store cash NOI increased 4.6 percent to $24.3 million.

 

Same-store cash NOI on a combined basis increased by 3.0 percent to $703.7 million for the year ended December 31, 2013 as compared to the same period in 2012.  Consolidated property same-store cash NOI increased by 3.0 percent to $608.5 million and unconsolidated joint venture property same-store cash NOI increased 2.6 percent to $95.2 million.

 

Manhattan same-store occupancy, after reclassifying 317 Madison Avenue, 331 Madison Avenue and 51 East 42nd Street to development, increased to 96.6 percent as of December 31, 2013, inclusive of 394,321 square feet of leases signed but not yet commenced, as compared to 95.1 percent at December 31, 2012 and 96.2 percent at September 30, 2013.

 

During the fourth quarter, the Company signed 57 office leases in its Manhattan portfolio totaling 3,391,447 square feet.  Fifteen leases comprising 262,148 square feet represented office leases that replaced previous vacancy. Forty-two leases comprising 3,129,299 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $47.66 per rentable square foot, representing an 11.4 percent increase over the previously fully escalated rents on the same office spaces.  The average lease term on the Manhattan office leases signed in the fourth quarter was 14.3 years and average tenant concessions were 6.6 months of free rent with a tenant improvement allowance of $50.67 per rentable square foot.

 



 

During the year ended December 31, 2013, the Company signed 233 office leases in its Manhattan portfolio totaling 5,186,894 square feet with an average lease term of 11.8 years.  Of the 233 office leases signed, 137 leases comprising 4,349,246 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $51.07 per rentable square foot, representing a 9.5 percent increase over the previously fully escalated rents on the same office spaces.

 

In December 2013, the Company signed an agreement extending Citigroup’s triple-net lease covering 2,634,670 square feet at 388-390 Greenwich Street through December 31, 2035. The agreement includes an option for Citigroup to acquire the properties during the period from December 1, 2017 through December 31, 2020 for $2.0 billion.  The mark-to-market based on Citigroup’s cash rent in the extension period is 12.8 percent.

 

In December 2013, the Company signed a 20-year lease with Metro-North Commuter Railroad Company covering 265,903 square feet at 420 Lexington Avenue, also known as the Graybar Building.  The lease is comprised of a 133,503 square foot renewal plus an additional 132,400 square foot expansion.  The expansion required assembling 34 separate spaces as well as the relocation or recapture of 15 occupied tenant spaces.

 

In November 2013, the Company and partner, Jeff Sutton, signed an early renewal lease agreement with Prada for its New York City flagship store at 724 Fifth Avenue, keeping one of the world’s iconic fashion and accessory houses at this prime location through 2028 and taking advantage of the extremely strong demand for premier Fifth Avenue retail space.  Prada occupies a total of 15,540 square feet of retail space on four levels, along with another 5,200 square feet of office space on the fifth floor of the building.

 

In November 2013, the Company signed a long-term expansion lease with Infor, Inc., a leading provider of business application software, which more than doubles its footprint at 635-641 Avenue of the Americas. Infor’s expansion of 49,246 square feet covers 47 percent of the 635 Avenue of the Americas building and increases its commitment at the combined buildings to 92,246 square feet.

 

Same-store occupancy for the Company’s Suburban portfolio increased to 82.1 percent at December 31, 2013, inclusive of 46,736 square feet of leases signed but not yet commenced, as compared to 81.2 percent at December 31, 2012 and 81.2 percent at September 30, 2013.

 

During the fourth quarter, the Company signed 35 office leases in the Suburban portfolio totaling 183,896 square feet.  Nineteen leases comprising 98,153 square feet represented office leases that replaced previous vacancy. Sixteen leases comprising the remaining 85,743 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $32.74 per rentable square foot, representing a 1.3 percent increase over the previously fully escalated rents on the same office spaces.  The average lease term on the Suburban office leases signed in the fourth quarter was 6.6 years and average tenant

 



 

concessions were 6.5 months of free rent with a tenant improvement allowance of $25.27 per rentable square foot.

 

During the year ended December 31, 2013, the Company signed 143 office leases in its Suburban portfolio totaling 902,151 square feet with an average lease term of 7.3 years.  Of the 143 office leases signed, 76 leases comprising 532,767 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $30.77 per rentable square foot, representing a 3.1 percent decrease over the previously fully escalated rents on the same office spaces.

 

Significant leases that were signed during the fourth quarter included:

 

·                  Early renewal on 2,634,670 square feet with Citigroup for 15.0 years at 388-390 Greenwich Street bringing the remaining lease term to 22.0 years;

 

·                  Early renewal and expansion on 265,903 square feet with Metro North Commuter Railroad Company for 20.0 years at 420 Lexington Avenue bringing the remaining lease term to 22.1 years;

 

·                  New lease on 49,731 square feet with McKinsey & Company for 15.5 years at 711 Third Avenue;

 

·                  New lease on 49,246 square feet with Infor for 10.0 years at 635 Sixth Avenue increasing its commitment to 92,246 square feet;

 

·                  New lease on 30,108 square feet with Mount Kellet Capital Management LP for 10.0 years at 280 Park Avenue;

 

·                  New lease on 28,583 square feet with Kids Brands for 11.8 years at The Meadows; and

 

·                  New lease on 27,678 square feet with Charter Brokerage, LLC for 10.4 years at 125 Park Avenue.

 

Marketing, general and administrative, or MG&A, expenses for the quarter ended December 31, 2013 were $22.7 million, or 5.1 percent of total revenues including the Company’s share of joint venture revenue compared to $21.4 million, or 5.2 percent for the quarter ended December 31, 2012. MG&A expenses for the year ended December 31, 2013 were $86.2 million, or 5.0 percent of total revenues including the Company’s share of joint venture revenue compared to $82.8 million, or 5.1 percent for the year ended December 31, 2012.

 

Real Estate Investment Activity

 

In November 2013, the Company closed on the acquisition of a mixed-use residential and commercial property located at 315 West 33rd Street in Manhattan for $386.8 million. The 36-story, 492,987 square foot building, which was completed in 2012, includes 333 luxury rental apartments.  The commercial space, which is 100 percent leased at below-market rental rates, consists of 270,000 square feet and includes a 14-screen movie theater, five ground-level retail stores, two office suites and a 250 space parking garage.

 



 

In December 2013, the Company closed on the acquisition of an assemblage of three retail development properties on Fifth Avenue in Manhattan for $146.2 million.  This acquisition represents the first piece of the Company’s long-term strategy to create a 45,000 square foot retail development site on Fifth Avenue.

 

In December 2013, the Company formed a joint venture that acquired a 49-year leasehold interest covering the entire retail portion of 650 Fifth Avenue.  Subsequently, the joint venture entered into an agreement to buy out the remaining lease of retailer Juicy Couture, which will enable the joint venture to combine Juicy Couture’s existing basement, grade-level and second floor retail space with additional vacant space on the third-floor.  This will accelerate the partnership’s ability to reposition the building’s premier retail corner location.

 

In December 2013, the Company closed on the sale of its joint venture interest in a 15,600 square foot property located at 27-29 West 34th Street in Manhattan for an allocated sales price of $70.1 million.  The Company recognized a gain of $7.6 million on the transaction and retained its 50 percent interest in 61,403 square feet of development rights.

 

In January 2014, the Company closed on the sale of its joint venture interest in a 30,100 square foot property located at 21-25 West 34th Street in Manhattan for an allocated sales price of $114.9 million.  The Company retained its 50 percent interest in 91,311 square feet of development rights.

 

Debt and Preferred Equity Investment Activity

 

The carrying value of the Company’s debt and preferred equity investment portfolio totaled $1.3 billion at December 31, 2013.  During the fourth quarter, the Company originated new debt and preferred equity investments totaling $412.3 million, all of which are collateralized by New York City commercial properties, and recorded $114.7 million of principal reductions from investments that were sold or repaid. The debt and preferred equity investment portfolio had a weighted average maturity of 2.2 years as of December 31, 2013, excluding any extension options, and had a weighted average yield during the fourth quarter of 11.3 percent.

 

Financing and Capital Activity

 

In November 2013, the Company completed an offering of 2.6 million shares of its common stock, par value $0.01 per share, at a price of $95.94 per share. The Company received net proceeds of $248.9 million, after deducting offering expenses.

 

In December 2013, the Company closed on a $300.0 million refinancing of our debt and preferred equity liquidity facility with a one-year term and a one-year extension option. This facility, which is secured by select assets in the Company’s debt portfolio, bears interest ranging from 250 and 325 basis points over LIBOR, depending on the pledged collateral.  The new facility is significantly improved, providing an increase in maximum

 



 

borrowing capacity, a lower interest rate, a higher advance rate and significantly more flexibility in making draws and repayments than the previous facility.  As of December 31, 2013, $91.0 million was outstanding on the facility.

 

In December 2013, the Company closed on a $79.2 million extension of the mortgage at 16 Court Street in Brooklyn.  The mortgage was extended to April 2016 and bears interest at 350 basis points over LIBOR with a LIBOR floor of 50 basis points.

 

Dividends

 

During the fourth quarter of 2013, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:

 

·                  $0.50 per share of common stock, consistent with the previous announcement of a dividend increase in October 2013.  The dividend was paid on January 15, 2014 to stockholders of record on the close of business on December 31, 2013.  The new annual dividend of $2.00 represents a 52 percent increase over the prior period; and

 

·                  $0.40625 per share on the Company’s 6.50% Series I Cumulative Redeemable Preferred Stock for the period October 15, 2013 through and including January 14, 2014, which was paid on January 15, 2014 to stockholders of record on the close of business on December 31, 2013, and reflects the regular quarterly dividend which is the equivalent of annualized dividend of $1.625 per share.

 

Conference Call and Audio Webcast

 

The Company’s executive management team, led by Marc Holliday, Chief Executive Officer, will host a conference call and audio webcast on Thursday, January 30, 2014 at 2:00 pm ET to discuss the financial results. Due to the extensive presentation made by the Company’s executive management team at its annual investor conference held on December 9, 2013, which addressed both past performance as well as guidance for 2014, the conference call will be limited to a question and answer session only.

 

The supplemental package will be available prior to the quarterly conference call on the Company’s website, www.slgreen.com, under “Financial Reports” in the Investors section. The webcast and accompanying slide presentation from the Company’s annual investor conference also are available on the Company’s website in the Investors section under “Event Calendar & Webcasts.”

 

The live conference will be webcast in listen-only mode on the Company’s website under “Event Calendar & Webcasts” in the Investors section and on Thomson’s StreetEvents Network. The conference may also be accessed by dialing 877.280.4961 using pass-code “SL Green.”

 

A replay of the call will be available through February 6, 2014 by dialing 888.286.8010 Domestic or 617.801.6888 International, using pass-code 86494799.

 



 

Company Profile

 

SL Green Realty Corp., New York City’s largest office landlord, is the only fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of December 31, 2013, SL Green owned interests in 92 Manhattan buildings totaling 44.4 million square feet. This included ownership interests in 27.8 million square feet of commercial buildings and debt and preferred equity investments secured by 16.6 million square feet of buildings. In addition to its Manhattan investments, SL Green holds ownership interests in 31 suburban buildings totaling 5.4 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey, along with three development buildings in the suburbs encompassing approximately 0.4 million square feet. The Company also has ownership interests in 28 properties encompassing 52 buildings totaling 3.7 million square feet in southern California.

 

To be added to the Company’s distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at 212.594.2700.

 



 

Disclaimers

 

Non-GAAP Financial Measures

 

During the quarterly 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 can be found on pages 12 through 13 of this release and in the Company’s Supplemental Package.

 

Forward-looking Statement

 

This press release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. Forward-looking statements are not guarantees of future performance and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.

 

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements are described in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

 

9



 

SL GREEN REALTY CORP.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share data)

 

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

276,580

 

$

264,411

 

$

1,080,684

 

$

1,062,682

 

Escalation and reimbursement

 

44,511

 

40,883

 

169,529

 

165,156

 

Investment and preferred equity income

 

49,956

 

31,500

 

193,843

 

119,155

 

Other income

 

3,651

 

9,805

 

25,021

 

35,736

 

Total revenues

 

374,698

 

346,599

 

1,469,077

 

1,382,729

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating expenses (including approximately $6,158 and $18,728 (2013) and $4,874 and $17,274 (2012) of related party expenses)

 

74,610

 

70,719

 

293,514

 

292,392

 

Real estate taxes

 

57,207

 

52,591

 

218,832

 

209,337

 

Ground rent

 

10,160

 

11,296

 

39,926

 

37,866

 

Interest expense, net of interest income

 

82,795

 

82,108

 

330,215

 

329,897

 

Amortization of deferred financing costs

 

3,661

 

7,824

 

16,695

 

19,450

 

Depreciation and amortization

 

89,105

 

92,170

 

337,692

 

325,737

 

Loan loss and other investment reserves, net of recoveries

 

 

 

 

564

 

Transaction related costs, net of recoveries

 

3,268

 

1,227

 

3,987

 

5,625

 

Marketing, general and administrative

 

22,742

 

21,372

 

86,192

 

82,840

 

Total expenses

 

343,548

 

339,307

 

1,327,053

 

1,303,708

 

Income from continuing operations before equity in net income (loss) from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, gain (loss) on sale of investment in marketable securities, purchase price fair value adjustment, and gain (loss) on early extinguishment of debt

 

31,150

 

7,292

 

142,024

 

79,021

 

Equity in net income (loss) from unconsolidated joint ventures

 

5,669

 

(4,570

)

9,921

 

76,418

 

Equity in net gain on sale of interest in unconsolidated joint venture/real estate

 

7,538

 

19,277

 

3,601

 

37,053

 

Gain (loss) on sale of investment in marketable securities

 

 

2,703

 

(65

)

4,940

 

Purchase price fair value adjustment

 

 

 

(2,305

)

 

Gain (loss) on early extinguishment of debt

 

5

 

(6,978

)

(18,518

)

(6,978

)

Income from continuing operations

 

44,362

 

17,724

 

134,658

 

190,454

 

Net income from discontinued operations

 

 

9,736

 

1,725

 

12,619

 

Gain on sale of discontinued operations

 

 

 

14,900

 

6,627

 

Net income

 

44,362

 

27,460

 

151,283

 

209,700

 

Net income attributable to noncontrolling interests in the Operating Partnership

 

(1,114

)

(721

)

(3,023

)

(5,597

)

Net (income) loss attributable to noncontrolling interests in other partnerships

 

(1,822

)

1,202

 

(10,629

)

(5,591

)

Preferred unit distributions

 

(568

)

(574

)

(2,260

)

(2,107

)

Net income attributable to SL Green

 

40,858

 

27,367

 

135,371

 

196,405

 

Preferred stock redemption costs

 

 

 

(12,160

)

(10,010

)

Perpetual preferred stock dividends

 

(3,738

)

(7,407

)

(21,881

)

(30,411

)

Net income attributable to SL Green common stockholders

 

$

37,120

 

$

19,960

 

$

101,330

 

$

155,984

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share (EPS)

 

 

 

 

 

 

 

 

 

Net income per share (Basic)

 

$

0.39

 

$

0.22

 

$

1.10

 

$

1.75

 

Net income per share (Diluted)

 

$

0.39

 

$

0.22

 

$

1.10

 

$

1.74

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations (FFO)

 

 

 

 

 

 

 

 

 

FFO per share (Basic)

 

$

1.39

 

$

1.14

 

$

5.17

 

$

5.30

 

FFO per share (Diluted)

 

$

1.38

 

$

1.14

 

$

5.16

 

$

5.28

 

 

 

 

 

 

 

 

 

 

 

Basic ownership interest

 

 

 

 

 

 

 

 

 

Weighted average REIT common shares for net income per share

 

94,003

 

90,481

 

92,269

 

89,319

 

Weighted average partnership units held by noncontrolling interests

 

2,827

 

3,266

 

2,735

 

3,207

 

Basic weighted average shares and units outstanding

 

96,830

 

93,747

 

95,004

 

92,526

 

 

 

 

 

 

 

 

 

 

 

Diluted ownership interest

 

 

 

 

 

 

 

 

 

Weighted average REIT common share and common share equivalents

 

94,321

 

90,745

 

92,531

 

89,666

 

Weighted average partnership units held by noncontrolling interests

 

2,827

 

3,266

 

2,735

 

3,207

 

Diluted weighted average shares and units outstanding

 

97,148

 

94,011

 

95,266

 

92,873

 

 

10



 

SL GREEN REALTY CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

 

December 31,
2013

 

December 31,
2012

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Commercial real estate properties, at cost:

 

 

 

 

 

Land and land interests

 

$

3,032,526

 

$

2,886,099

 

Building and improvements

 

7,884,663

 

7,389,766

 

Building leasehold and improvements

 

1,366,281

 

1,346,748

 

Properties under capital lease

 

50,310

 

40,340

 

 

 

12,333,780

 

11,662,953

 

Less accumulated depreciation

 

(1,646,240

)

(1,393,323

)

 

 

10,687,540

 

10,269,630

 

Assets held for sale

 

 

4,901

 

Cash and cash equivalents

 

206,692

 

189,984

 

Restricted cash

 

142,051

 

136,071

 

Investment in marketable securities

 

32,049

 

21,429

 

Tenant and other receivables, net of allowance of $17,325 and $14,341 in 2013 and 2012, respectively

 

60,393

 

55,855

 

Related party receivables

 

8,530

 

7,531

 

Deferred rents receivable, net of allowance of $30,333 and $29,580 in 2013 and 2012, respectively

 

386,508

 

340,747

 

Debt and preferred equity investments, net of discounts and deferred origination fees of $18,593 and $22,341 and allowance of $1,000 and $7,000 in 2013 and 2012, respectively

 

1,304,839

 

1,348,434

 

Investments in unconsolidated joint ventures

 

1,113,218

 

1,032,243

 

Deferred costs, net

 

267,058

 

261,145

 

Other assets

 

750,123

 

718,326

 

Total assets

 

$

14,959,001

 

$

14,386,296

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Mortgages and other loans payable

 

$

4,860,578

 

$

4,615,464

 

Revolving credit facility

 

220,000

 

70,000

 

Term loan and senior unsecured notes

 

1,739,330

 

1,734,956

 

Accrued interest payable and other liabilities

 

114,622

 

81,080

 

Accounts payable and accrued expenses

 

145,889

 

159,598

 

Deferred revenue

 

263,261

 

312,995

 

Capitalized lease obligations

 

47,671

 

37,518

 

Deferred land leases payable

 

22,185

 

20,897

 

Dividend and distributions payable

 

52,255

 

37,839

 

Security deposits

 

61,308

 

46,253

 

Liabilities related to assets held for sale

 

 

136

 

Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities

 

100,000

 

100,000

 

Total liabilities

 

7,627,099

 

7,216,736

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

Noncontrolling interest in the Operating Partnership

 

265,476

 

212,907

 

Series G Preferred Units, $25.00 liquidation preference, 1,902 issued and outstanding at both December 31, 2013 and 2012

 

47,550

 

47,550

 

Series H Preferred Units, $25.00 liquidation preference, 80 issued and outstanding at both December 31, 2013 and 2012

 

2,000

 

2,000

 

 

 

 

 

 

 

Equity

 

 

 

 

 

SL Green Realty Corp. stockholders’ equity:

 

 

 

 

 

Series C Preferred Stock, $0.01 par value, $25.00 liquidation preference, 7,700 issued and outstanding at December 31, 2012

 

 

180,340

 

Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both December 31, 2013 and December 31, 2012

 

221,932

 

221,965

 

Common stock, $0.01 par value 160,000 shares authorized, 98,563 and 94,896 issued and outstanding at December 31, 2013 and December 31, 2012, respectively (inclusive of 3,570 and 3,646 shares held in Treasury at December 31, 2013 and December 31, 2012, respectively)

 

986

 

950

 

Additional paid-in capital

 

5,015,904

 

4,667,900

 

Treasury stock at cost

 

(317,356

)

(322,858

)

Accumulated other comprehensive loss

 

(15,211

)

(29,587

)

Retained earnings

 

1,619,150

 

1,701,092

 

Total SL Green Realty Corp. stockholders’ equity

 

6,525,405

 

6,419,802

 

Noncontrolling interests in other partnerships

 

491,471

 

487,301

 

Total equity

 

7,016,876

 

6,907,103

 

Total liabilities and equity

 

$

14,959,001

 

$

14,386,296

 

 

11



 

SL GREEN REALTY CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

 

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

FFO Reconciliation:

 

 

 

 

 

 

 

 

 

Net income attributable to SL Green common stockholders

 

$

37,120

 

$

19,960

 

$

101,330

 

$

155,984

 

Add:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

89,105

 

92,170

 

337,692

 

325,737

 

Discontinued operations depreciation adjustments

 

 

1,616

 

3,212

 

6,373

 

Joint venture depreciation and noncontrolling interest adjustments

 

13,399

 

13,417

 

51,266

 

35,593

 

Net income (loss) attributable to noncontrolling interests

 

2,936

 

(481

)

13,652

 

11,188

 

Less:

 

 

 

 

 

 

 

 

 

Gain on sale of discontinued operations

 

 

 

14,900

 

6,627

 

Equity in net gain on sale of interest in unconsolidated joint venture/real estate

 

7,538

 

19,277

 

3,601

 

31,264

 

Purchase price fair value adjustment

 

 

 

(2,305

)

 

Depreciable real estate reserve, net of recoveries

 

 

 

(2,150

)

5,789

 

Depreciation on non-rental real estate assets

 

505

 

243

 

1,509

 

940

 

Funds From Operations

 

$

134,517

 

$

107,162

 

$

491,597

 

$

490,255

 

 

 

 

Consolidated Properties

 

SL Green’s share of
Unconsolidated Joint Ventures

 

Combined

 

 

 

Three Months Ended
December 31,

 

Three Months Ended
December 31,

 

Three Months Ended
December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

Operating income and Same-store NOI Reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before equity in net income (loss) from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, gain (loss) on sale of investment in marketable securities, purchase price fair value adjustment and gain (loss) on early extinguishment of debt

 

$

31,150

 

$

7,292

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net income (loss) from unconsolidated joint ventures

 

5,669

 

(4,570

)

5,669

 

(4,570

)

 

 

 

 

Depreciation and amortization

 

89,105

 

92,170

 

20,943

 

21,911

 

 

 

 

 

Interest expense, net of interest income

 

82,795

 

82,108

 

20,477

 

21,540

 

 

 

 

 

Amortization of deferred financing costs

 

3,661

 

7,824

 

2,506

 

1,104

 

 

 

 

 

Gain (loss) on early extinguishment of debt

 

5

 

(6,978

)

 

 

 

 

 

 

Operating income

 

$

212,385

 

$

177,846

 

$

49,595

 

$

39,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, general & administrative expense

 

22,742

 

21,372

 

 

 

 

 

 

 

Net operating income from discontinued operations

 

 

2,488

 

 

 

 

 

 

 

Loan loss and other investment reserves, net of recoveries

 

 

 

 

 

 

 

 

 

Transaction related costs, net of recoveries

 

3,268

 

1,227

 

341

 

306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-building revenue

 

(49,251

)

(36,306

)

(6,197

)

(3,768

)

 

 

 

 

Equity in net (income) loss from unconsolidated joint ventures

 

(5,669

)

4,570

 

 

 

 

 

 

 

(Gain) loss on early extinguishment of debt

 

(5

)

6,978

 

 

 

 

 

 

 

Net operating income (NOI)

 

183,470

 

178,175

 

43,739

 

36,523

 

$

227,209

 

$

214,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI from discontinued operations

 

 

(2,488

)

 

 

 

(2,488

)

NOI from other properties/affiliates

 

(15,644

)

(11,686

)

(17,998

)

(11,672

)

(33,642

)

(23,358

)

Same-Store NOI

 

$

167,826

 

$

164,001

 

$

25,741

 

$

24,851

 

$

193,567

 

$

188,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ground lease straight-line adjustment

 

1,292

 

2,186

 

 

 

1,292

 

2,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line and free rent

 

(10,686

)

(13,011

)

(1,096

)

(1,179

)

(11,782

)

(14,190

)

Rental income — FAS 141

 

(3,319

)

(2,377

)

(333

)

(440

)

(3,652

)

(2,817

)

Same-store cash NOI

 

$

155,113

 

$

150,799

 

$

24,312

 

$

23,232

 

$

179,425

 

$

174,031

 

 

12



 

 

 

Consolidated Properties

 

SL Green’s share of
Unconsolidated Joint Ventures

 

Combined

 

 

 

Twelve Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

Operating income and Same-store NOI Reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, gain (loss) on sale of investment in marketable securities, purchase price fair value adjustment and loss (gain) on early extinguishment of debt

 

$

142,024

 

$

79,021

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net income from unconsolidated joint ventures

 

9,921

 

76,418

 

9,921

 

76,418

 

 

 

 

 

Depreciation and amortization

 

337,692

 

325,737

 

84,403

 

69,108

 

 

 

 

 

Interest expense, net of interest income

 

330,215

 

329,897

 

79,896

 

86,268

 

 

 

 

 

Amortization of deferred financing costs

 

16,695

 

19,450

 

9,637

 

3,859

 

 

 

 

 

(Loss) gain on early extinguishment of debt

 

(18,518

)

(6,978

)

 

10,711

 

 

 

 

 

Operating income

 

$

818,029

 

$

823,545

 

$

183,857

 

$

246,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, general & administrative expense

 

86,192

 

82,840

 

 

 

 

 

 

 

Net operating income from discontinued operations

 

7,548

 

11,849

 

 

 

 

 

 

 

Loan loss and other investment reserves, net of recoveries

 

 

564

 

 

 

 

 

 

 

Transaction related costs, net of recoveries

 

3,987

 

5,625

 

356

 

960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-building revenue

 

(201,416

)

(134,391

)

(18,451

)

(83,242

)

 

 

 

 

Equity in net income from unconsolidated joint ventures

 

(9,921

)

(76,418

)

 

 

 

 

 

 

Loss (gain) on early extinguishment of debt

 

18,518

 

6,978

 

 

(10,711

)

 

 

 

 

Net operating income (NOI)

 

722,937

 

720,592

 

165,762

 

153,371

 

$

888,699

 

$

873,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI from discontinued operations

 

(7,548

)

(11,849

)

 

 

(7,548

)

(11,849

)

NOI from other properties/affiliates

 

(59,448

)

(54,403

)

(64,861

)

(56,296

)

(124,309

)

(110,699

)

Same-Store NOI

 

$

655,941

 

$

654,340

 

$

100,901

 

$

97,075

 

$

756,842

 

$

751,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ground lease straight-line adjustment

 

5,645

 

2,702

 

 

 

5,645

 

2,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line and free rent

 

(47,963

)

(56,249

)

(3,186

)

(2,842

)

(51,149

)

(59,091

)

Rental income — FAS 141

 

(5,154

)

(10,317

)

(2,525

)

(1,411

)

(7,679

)

(11,728

)

Same-store cash NOI

 

$

608,469

 

$

590,476

 

$

95,190

 

$

92,822

 

$

703,659

 

$

683,298

 

 

SL GREEN REALTY CORP.

SELECTED OPERATING DATA-UNAUDITED

 

 

 

December 31,

 

 

 

2013

 

2012

 

Manhattan Operating Data: (1)

 

 

 

 

 

Net rentable area at end of period (in 000’s)

 

23,240

 

24,282

 

Portfolio percentage leased at end of period

 

95.0

%

94.3

%

Same-Store percentage leased at end of period

 

95.1

%

94.6

%

Number of properties in operation

 

32

 

36

 

 

 

 

 

 

 

Office square feet where leases commenced during quarter (rentable)

 

3,327,835

 

290,108

 

Average mark-to-market percentage-office

 

11.6

%

2.4

%

Average starting cash rent per rentable square foot-office

 

$

47.66

 

$

56.96

 

 


(1)  Includes wholly-owned and joint venture properties.

 

13


Exhibit 99.2

 

 

 

 

FOURTH QUARTER 2013

SUPPLEMENTAL DATA

DECEMBER 31, 2013

 

 

 



 

 

 

 

 

 

 

SL Green Realty Corp. is a fully integrated, self-administered and self-managed Real Estate Investment Trust, or REIT, that primarily acquires, owns, manages, leases 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 incorporated into this supplemental financial package.  This supplemental financial package is available through the Company’s internet site.

·                  This data is furnished 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 perspective 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 restate the data presented herein.

 

Questions pertaining to the information contained herein should be referred to Investor Relations at investor.relations@slgreen.com or at 212-216-1601.

 

Forward-looking Statement

 

This press release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. Forward-looking statements are not guarantees of future performance and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.

 

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements are described in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

 

2



 

 

 

 

 

 

 

Ratings

 

Ratings are not recommendations to buy, sell or hold the Company’s securities.

 

The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the quarter ended December 31, 2013 that will be released on Form 10-K to be filed on or before March 3, 2014.

 

3



 

 

 

TABLE OF CONTENTS

 

 

 

Highlights of Current Period Financial Performance

 

 

 

Unaudited Financial Statements

 

Corporate Profile

5

Highlights

6-14

Comparative Balance Sheets

15-16

Comparative Statements of Operations

17

Comparative Computation of FFO and FAD

18

Consolidated Statement of Equity

19

Joint Venture Statements

20-22

 

 

Selected Financial Data

23-26

Debt Summary Schedule

27-29

Summary of Ground Lease Arrangements

30

 

 

Debt and Preferred Equity Investments

31-33

 

 

Selected Property Data

 

Composition of Property Portfolio

34-37

Largest Tenants

38

Tenant Diversification

39

Leasing Activity Summary

40-43

Annual Lease Expirations

44-45

 

 

Summary of Real Estate Acquisition/Disposition Activity

46-49

Corporate Information

50

Analyst Coverage

51

Supplemental Definitions

52

 

4



 

 

 

CORPORATE PROFILE

 

 

 

SL Green Realty Corp., or the Company, is New York City’s largest commercial office landlord and is the only fully integrated, self-managed, self-administered Real Estate Investment Trust, or REIT, primarily focused on owning and operating office buildings in Manhattan.

 

The Company was formed on August 20, 1997 to continue the commercial real estate business of S.L. Green Properties Inc., a company that was founded in 1980 by Stephen L. Green, our current Chairman.  For more than 25 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 strategically acquiring, redeveloping and repositioning office properties primarily located in Manhattan, and re-leasing and managing these properties for maximum cash flow.

 

In 2007, SL Green acquired Reckson Associates Realty Corp. and added over 9 million square feet to its portfolio. Included in this total is over 3 million square feet of Class A office space located in Westchester, New York and Stamford, Connecticut.  These suburban portfolios serve as natural extensions of SL Green’s core ownership in the Grand Central submarket of Midtown Manhattan. The Company has since made selective additions and dispositions to the holdings in these areas.

 

Looking forward, SL Green plans to continue its opportunistic investment philosophy through three established business lines: investment in long-term core properties, investment in opportunistic assets, and debt and preferred equity investments.  This three-legged investment strategy allows SL Green to balance the components of its portfolio to take advantage of each stage in the business cycle.

 

5



 

 

 

FOURTH QUARTER 2013 HIGHLIGHTS

UNAUDITED

 

 

 

Summary

 

New York, NY, January 29, 2014 — SL Green Realty Corp. (NYSE:  SLG) today reported funds from operations, or FFO, of $134.5 million, or $1.38 per share, after giving consideration to transaction costs of $3.6 million, or $0.04 per share, for the quarter ended December 31, 2013, compared to $107.2 million, or $1.14 per share, after giving consideration to transaction costs of $1.5 million, or $0.02 per share for the same quarter in 2012.  The Company also reported FFO of $491.6 million, or $5.16 per share, after giving consideration to transaction costs of $4.3 million, or $0.5 per share, for the year ended December 31, 2013, compared to $490.3 million, or $5.28 per share, after giving consideration to transaction costs of $6.6 million, or $0.07 per share, for the year ended December 31, 2012.  The prior year results reflect additional income of $67.9 million, or $0.73 per share, relating to profit from the recapitalization of 717 Fifth Avenue.

 

Net income attributable to common stockholders totaled $37.1 million, or $0.39 per share, for the quarter ended December 31, 2013, compared to $20.0 million, or $0.22 per share, for the same quarter in 2012.  Net income attributable to common stockholders totaled $101.3 million, or $1.10 per share, for the year ended December 31, 2013, compared to $156.0 million, or $1.74 per share, for the year ended December 31, 2012.

 

All per share amounts in this press release are presented on a diluted basis.

 

Operating and Leasing Activity

 

For the fourth quarter of 2013, the Company reported consolidated revenues and operating income of $374.7 million and $212.4 million, respectively, compared to $346.6 million and $177.8 million, respectively, for the same period in 2012. For the year ended December 31, 2013, the Company reported consolidated revenues and operating income of $1.5 billion and $818.0 million, respectively, compared to $1.4 billion and $823.5 million, respectively, for the year ended December 31, 2012.

 

Same-store cash NOI on a combined basis increased by 3.1 percent to $179.4 million for the quarter ended December 31, 2013 as compared to the same period in 2012.  Consolidated property same-store cash NOI increased by 2.9 percent to $155.1 million and unconsolidated joint venture property same-store cash NOI increased 4.6 percent to $24.3 million.

 

Same-store cash NOI on a combined basis increased by 3.0 percent to $703.7 million for the year ended December 31, 2013 as compared to the same period in 2012.  Consolidated property same-store cash NOI increased by 3.0 percent to $608.5 million and unconsolidated joint venture property same-store cash NOI increased 2.6 percent to $95.2 million.

 

Manhattan same-store occupancy, after reclassifying 317 Madison, 331 Madison and 51 East 42nd Street to development, increased to 96.6 percent as of December 31, 2013, inclusive of 394,321 square feet of leases signed but not yet commenced, as compared to 95.1 percent at December 31, 2012 and 96.2 percent at September 30, 2013.

 

6



 

 

 

FOURTH QUARTER 2013 HIGHLIGHTS

UNAUDITED

 

 

 

During the fourth quarter, the Company signed 57 office leases in its Manhattan portfolio totaling 3,391,447 square feet.  Fifteen leases comprising 262,148 square feet represented office leases that replaced previous vacancy. Forty-two leases comprising 3,129,299 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $47.66 per rentable square foot, representing an 11.4 percent increase over the previously fully escalated rents on the same office spaces.  The average lease term on the Manhattan office leases signed in the fourth quarter was 14.3 years and average tenant concessions were 6.6 months of free rent with a tenant improvement allowance of $50.67 per rentable square foot.

 

During the year ended December 31, 2013, the Company signed 233 office leases in its Manhattan portfolio totaling 5,186,894 square feet with an average lease term of 11.8 years.  Of the 233 office leases signed, 137 leases comprising 4,349,246 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $51.07 per rentable square foot, representing a 9.5 percent increase over the previously fully escalated rents on the same office spaces.

 

In December 2013, the Company signed an agreement extending Citigroup’s triple-net lease covering 2,634,670 square feet at 388-390 Greenwich Street through December 31, 2035. The agreement includes an option for Citigroup to acquire the properties during the period from December 1, 2017 through December 31, 2020 for $2.0 billion.  The mark-to-market based on Citigroup’s cash rent in the extension period is 12.8 percent.

 

In December 2013, the Company signed a 20-year lease with Metro-North Commuter Railroad Company covering 265,903 square feet at 420 Lexington Avenue, also known as the Graybar Building.  The lease is comprised of a 133,503 square foot renewal plus an additional 132,400 square foot expansion.  The expansion required assembling 34 separate spaces as well as the relocation or recapture of 15 occupied tenant spaces.

 

In November 2013, the Company and partner, Jeff Sutton, signed an early renewal lease agreement with Prada for its New York City flagship store at 724 Fifth Avenue, keeping one of the world’s iconic fashion and accessory houses at this prime location through 2028 and taking advantage of the extremely strong demand for premier Fifth Avenue retail space.  Prada occupies a total of 15,540 square feet of retail space on four levels, along with another 5,200 square feet of office space on the fifth floor of the building.

 

In November 2013, the Company signed a long-term expansion lease with Infor, Inc., a leading provider of business application software, which more than doubles its footprint at 635-641 Avenue of the Americas. Infor’s expansion of 49,246 square feet covers 47 percent of the 635 Avenue of the Americas building and increases its commitment at the combined buildings to 92,246 square feet.

 

7



 

 

 

FOURTH QUARTER 2013 HIGHLIGHTS

UNAUDITED

 

 

 

Same-store occupancy for the Company’s Suburban portfolio increased to 82.1 percent at December 31, 2013, inclusive of 46,736 square feet of leases signed but not yet commenced, as compared to 81.2 percent at December 31, 2012 and 81.2 percent at September 30, 2013.

 

During the fourth quarter, the Company signed 35 office leases in the Suburban portfolio totaling 183,896 square feet.  Nineteen leases comprising 98,153 square feet represented office leases that replaced previous vacancy. Sixteen leases comprising the remaining 85,743 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $32.74 per rentable square foot, representing a 1.3 percent increase over the previously fully escalated rents on the same office spaces.  The average lease term on the Suburban office leases signed in the fourth quarter was 6.6 years and average tenant concessions were 6.5 months of free rent with a tenant improvement allowance of $25.27 per rentable square foot.

 

During the year ended December 31, 2013, the Company signed 143 office leases in its Suburban portfolio totaling 902,151 square feet with an average lease term of 7.3 years.  Of the 143 office leases signed, 76 leases comprising 532,767 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated.  Those replacement leases had average starting rents of $30.77 per rentable square foot, representing a 3.1 percent decrease over the previously fully escalated rents on the same office spaces.

 

Significant leases that were signed during the fourth quarter included:

 

·                  Early renewal on 2,634,670 square feet with Citigroup for 15.0 years at 388-390 Greenwich Street bringing the remaining lease term to 22.0 years;

·                  Early renewal and expansion on 265,903 square feet with Metro North Commuter Railroad Company for 20.0 years at 420 Lexington Avenue bringing the remaining lease term to 22.1 years;

·                  New lease on 49,731 square feet with McKinsey & Company for 15.5 years at 711 Third Avenue;

·                  New lease on 49,246 square feet with Infor for 10.0 years at 635 Sixth Avenue increasing its commitment to 92,246 square feet;

·                  New lease on 30,108 square feet with Mount Kellet Capital Management LP for 10.0 years at 280 Park Avenue;

·                  New lease on 28,583 square feet with Kids Brands for 11.8 years at The Meadows; and

·                  New lease on 27,678 square feet with Charter Brokerage, LLC for 10.4 years at 125 Park Avenue.

 

Marketing, general and administrative, or MG&A, expenses for the quarter ended December 31, 2013 were $22.7 million, or 5.1 percent of total revenues including the Company’s share of joint venture revenue compared to $21.4 million, or 5.2 percent for the quarter ended December 31, 2012. MG&A expenses for the year

 

8



 

 

 

FOURTH QUARTER 2013 HIGHLIGHTS

UNAUDITED

 

 

 

ended December 31, 2013 were $86.2 million, or 5.0 percent of total revenues including the Company’s share of joint venture revenue compared to $82.8 million, or 5.1 percent for the year ended December 31, 2012.

 

Real Estate Investment Activity

 

In November 2013, the Company closed on the acquisition of a mixed-use residential and commercial property located at 315 West 33rd Street in Manhattan for $386.8 million. The 36-story, 492,987 square foot building, which was completed in 2012, includes 333 luxury rental apartments.  The commercial space, which is 100 percent leased at below-market rental rates, consists of 270,000 square feet and includes a 14-screen movie theater, five ground-level retail stores, two office suites and a 250 space parking garage.

 

In December 2013, the Company closed on the acquisition of an assemblage of three retail development properties on Fifth Avenue in Manhattan for $146.2 million.  This acquisition represents the first piece of the Company’s long-term strategy to create a 45,000 square foot retail development site on Fifth Avenue.

 

In December 2013, the Company formed a joint venture that acquired a 49-year leasehold interest covering the entire retail portion of 650 Fifth Avenue.  Subsequently, the joint venture entered into an agreement to buy out the remaining lease of retailer Juicy Couture, which will enable the joint venture to combine Juicy Couture’s existing basement, grade-level and second floor retail space with additional vacant space on the third-floor.  This will accelerate the partnership’s ability to reposition the building’s premier retail corner location.

 

In December 2013, the Company closed on the sale of its joint venture interest in a 15,600 square foot property located at 27-29 West 34th Street in Manhattan for an allocated sales price of $70.1 million.  The Company recognized a gain of $7.6 million on the transaction and retained its 50 percent interest in 61,403 square feet of development rights.

 

In January 2014, the Company closed on the sale of its joint venture interest in a 30,100 square foot property located at 21-25 West 34th Street in Manhattan for an allocated sales price of $114.9 million.  The Company retained its 50 percent interest in 91,311 square feet of development rights.

 

Debt and Preferred Equity Investment Activity

 

The carrying value of the Company’s debt and preferred equity investment portfolio totaled $1.3 billion at December 31, 2013.  During the fourth quarter, the Company originated new debt and preferred equity investments totaling $412.3 million, all of which are collateralized by New York City commercial properties, and recorded $114.7 million of principal reductions from investments that were sold or repaid. The debt and preferred equity investment portfolio had a weighted average maturity of 2.2 years as of December 31, 2013, excluding any extension options, and had a weighted average yield during the fourth quarter of 11.3 percent.

 

9



 

 

 

FOURTH QUARTER 2013 HIGHLIGHTS

UNAUDITED

 

 

 

Financing and Capital Activity

 

In November 2013, the Company completed an offering of 2.6 million shares of its common stock, par value $0.01 per share, at a price of $95.94 per share. The Company received net proceeds of $248.9 million, after deducting offering expenses.

 

In December 2013, the Company closed on a $300.0 million refinancing of our debt and preferred equity liquidity facility with a one-year term and a one-year extension option. This facility, which is secured by select assets in the Company’s debt portfolio, bears interest ranging from 250 and 325 basis points over LIBOR, depending on the pledged collateral.  The new facility is significantly improved, providing an increase in maximum borrowing capacity, a lower interest rate, a higher advance rate and significantly more flexibility in making draws and repayments than the previous facility.  As of December 31, 2013, $91.0 million was outstanding on the facility.

 

In December 2013, the Company closed on a $79.2 million extension of the mortgage at 16 Court Street in Brooklyn.  The mortgage was extended to April 2016 and bears interest at 350 basis points over LIBOR with a LIBOR floor of 50 basis points.

 

Dividends

 

During the fourth quarter of 2013, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:

 

·                  $0.50 per share of common stock, consistent with the previous announcement of a dividend increase in October 2013.  The dividend was paid on January 15, 2014 to stockholders of record on the close of business on December 31, 2013.  The new annual dividend of $2.00 represents a 52 percent increase over the prior period; and

·                  $0.40625 per share on the Company’s 6.50% Series I Cumulative Redeemable Preferred Stock for the period October 15, 2013 through and including January 14, 2014, which was paid on January 15, 2014 to stockholders of record on the close of business on December 31, 2013, and reflects the regular quarterly dividend which is the equivalent of annualized dividend of $1.625 per share.

 

10



 

SL Green Realty Corp.
Key Financial Data
December 31, 2013
(Dollars in Thousands Except Per Share)

 

 

 

As of or for the three months ended

 

 

 

12/31/2013

 

9/30/2013

 

6/30/2013

 

3/31/2013

 

12/31/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders - diluted

 

$

0.39

 

$

0.40

 

$

0.09

 

$

0.21

 

$

0.22

 

Funds from operations available to common stockholders - diluted

 

$

1.38

 

$

1.34

 

$

1.27

 

$

1.16

 

$

1.14

 

Funds available for distribution to common stockholders - diluted

 

$

0.63

 

$

1.09

 

$

0.91

 

$

1.03

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Price & Dividends

 

 

 

 

 

 

 

 

 

 

 

At the end of the period

 

$

92.38

 

$

88.84

 

$

88.19

 

$

86.11

 

$

76.65

 

High during period

 

$

98.15

 

$

95.61

 

$

94.21

 

$

86.29

 

$

79.63

 

Low during period

 

$

87.63

 

$

85.40

 

$

84.36

 

$

78.16

 

$

71.37

 

Common dividends per share

 

$

0.50

 

$

0.33

 

$

0.33

 

$

0.33

 

$

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO payout ratio

 

36.1

%

24.6

%

25.9

%

28.5

%

29.0

%

Recurring FAD payout ratio

 

61.4

%

30.2

%

36.1

%

32.2

%

44.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares & Units

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

94,993

 

92,214

 

91,813

 

91,555

 

91,250

 

Units outstanding

 

2,902

 

2,792

 

2,794

 

2,586

 

2,760

 

Total common shares and units outstanding

 

97,895

 

95,006

 

94,607

 

94,141

 

94,010

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and units outstanding - basic

 

96,831

 

94,780

 

94,312

 

94,086

 

93,747

 

Weighted average common shares and units outstanding - diluted

 

97,148

 

95,016

 

94,536

 

94,302

 

94,011

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization

 

 

 

 

 

 

 

 

 

 

 

Market value of common equity

 

$

9,043,540

 

$

8,440,333

 

$

8,343,391

 

$

8,106,482

 

$

7,205,867

 

Liquidation value of preferred equity/units

 

279,550

 

279,550

 

279,550

 

472,050

 

472,050

 

Consolidated debt

 

6,919,908

 

6,819,627

 

6,721,936

 

6,678,073

 

6,520,420

 

Consolidated market capitalization

 

$

16,242,998

 

$

15,539,510

 

$

15,344,877

 

$

15,256,605

 

$

14,198,337

 

SLG portion of JV debt

 

2,134,677

 

2,151,395

 

2,145,321

 

2,199,143

 

2,135,361

 

Combined market capitalization

 

$

18,377,675

 

$

17,690,905

 

$

17,490,198

 

$

17,455,748

 

$

16,333,698

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated debt to market capitalization

 

42.7

%

44.0

%

43.9

%

43.9

%

46.0

%

Combined debt to market capitalization

 

49.4

%

50.8

%

50.8

%

50.9

%

53.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated debt service coverage

 

2.49

x

2.43

x

2.49

x

2.29

x

2.08

x

Consolidated fixed charge coverage

 

2.19

x

2.13

x

2.13

x

1.94

x

1.77

x

Combined fixed charge coverage

 

1.94

x

1.91

x

1.92

x

1.75

x

1.62

x

 

Supplemental Information

Fourth Quarter 2013

 

11



 

SL Green Realty Corp.
Key Financial Data
December 31, 2013
(Dollars in Thousands Except Per Share)

 

 

 

As of or for the three months ended

 

 

 

12/31/2013

 

9/30/2013

 

6/30/2013

 

3/31/2013

 

12/31/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

Real estate assets before depreciation

 

$

12,333,780

 

$

11,713,705

 

$

11,663,263

 

$

11,732,106

 

$

11,667,698

 

Investments in unconsolidated joint ventures

 

$

1,113,218

 

$

1,109,815

 

$

1,085,793

 

$

1,073,130

 

$

1,032,243

 

Debt and Preferred Equity Investments

 

$

1,304,839

 

$

1,315,551

 

$

1,227,421

 

$

1,431,731

 

$

1,348,434

 

Cash and cash equivalents

 

$

206,692

 

$

209,098

 

$

198,969

 

$

220,140

 

$

189,984

 

Investment in marketable securities

 

$

32,049

 

$

32,863

 

$

26,266

 

$

22,994

 

$

21,429

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

14,959,001

 

$

14,581,167

 

$

14,407,007

 

$

14,538,109

 

$

14,386,296

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed rate & hedged debt

 

$

5,599,959

 

$

5,606,449

 

$

5,806,183

 

$

5,811,994

 

$

4,922,725

 

Variable rate debt

 

1,319,949

 

1,213,178

 

915,753

 

866,079

 

1,597,695

 

Total consolidated debt

 

$

6,919,908

 

$

6,819,627

 

$

6,721,936

 

$

6,678,073

 

$

6,520,420

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

7,627,099

 

$

7,514,477

 

$

7,390,318

 

$

7,362,706

 

$

7,216,736

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed rate & hedged debt - including SLG portion of JV debt

 

$

6,863,469

 

$

6,870,840

 

$

7,071,214

 

$

7,070,303

 

$

6,181,112

 

Variable rate debt - including SLG portion of JV debt

 

2,191,116

 

2,100,182

 

1,796,043

 

1,806,913

 

2,474,669

 

Total combined debt

 

$

9,054,585

 

$

8,971,022

 

$

8,867,257

 

$

8,877,216

 

$

8,655,781

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Data

 

 

 

 

 

 

 

 

 

 

 

Property operating revenues

 

$

321,091

 

$

309,440

 

$

312,688

 

$

306,993

 

$

305,294

 

Property operating expenses

 

(141,977

)

(142,910

)

(130,791

)

(136,591

)

(134,606

)

Property operating NOI

 

$

179,114

 

$

166,530

 

$

181,897

 

$

170,402

 

$

170,688

 

NOI from discontinued operations

 

 

1,536

 

3,256

 

2,756

 

2,488

 

Total property operating NOI - consolidated

 

$

179,114

 

$

168,066

 

$

185,153

 

$

173,158

 

$

173,176

 

SLG share of property NOI from JVs

 

50,197

 

45,918

 

45,814

 

42,989

 

40,291

 

Total property operating NOI - combined

 

$

229,311

 

$

213,984

 

$

230,967

 

$

216,147

 

$

213,467

 

Investment income

 

49,956

 

44,448

 

46,731

 

52,708

 

31,500

 

Other income

 

3,651

 

9,877

 

5,726

 

5,767

 

9,805

 

Gain on early extinguishment of debt from JVs

 

 

 

 

 

 

Income from discontinued operations

 

 

 

 

 

9,318

 

Marketing general & administrative expenses

 

(22,742

)

(20,869

)

(21,514

)

(21,067

)

(21,372

)

EBITDA - combined

 

$

260,176

 

$

247,440

 

$

261,910

 

$

253,555

 

$

242,718

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Debt to EBITDA (trailing-12 months)

 

7.97

x

7.92

x

7.88

x

7.98

x

8.07

x

Combined Debt to EBITDA (trailing-12 months)

 

8.62

x

8.68

x

8.63

x

8.82

x

8.89

x

 

12



 

SL Green Realty Corp.

Key Financial Data

December 31, 2013

(Dollars in Thousands Except Per Share)

 

Manhattan Properties

 

 

 

As of or for the three months ended

 

 

 

12/31/2013

 

9/30/2013

 

6/30/2013

 

3/31/2013

 

12/31/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Data

 

 

 

 

 

 

 

 

 

 

 

Property operating revenues

 

$

289,193

 

$

279,853

 

$

286,819

 

$

284,083

 

$

280,763

 

Property operating expenses

 

119,885

 

123,859

 

112,719

 

121,001

 

118,046

 

Property operating NOI

 

$

169,308

 

$

155,994

 

$

174,100

 

$

163,082

 

$

162,717

 

NOI from discontinued operations

 

 

1,356

 

3,226

 

2,639

 

2,240

 

Total property operating NOI - consolidated

 

$

169,308

 

$

157,350

 

$

177,326

 

$

165,721

 

$

164,957

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income - consolidated

 

$

1,338

 

$

443

 

$

480

 

$

1,295

 

$

1,954

 

 

 

 

 

 

 

 

 

 

 

 

 

SLG share of property NOI from unconsolidated JV

 

$

45,400

 

$

41,288

 

$

39,987

 

$

36,171

 

$

35,161

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Statistics

 

 

 

 

 

 

 

 

 

 

 

Consolidated office buildings in service

 

23

 

26

 

27

 

27

 

27

 

Unconsolidated office buildings in service

 

9

 

9

 

9

 

9

 

9

 

 

 

32

 

35

 

36

 

36

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated office buildings in service - square footage

 

17,306,045

 

18,012,945

 

18,347,945

 

18,347,945

 

18,347,945

 

Unconsolidated office buildings in service - square footage

 

5,934,434

 

5,934,434

 

5,934,434

 

5,934,434

 

5,934,434

 

 

 

23,240,479

 

23,947,379

 

24,282,379

 

24,282,379

 

24,282,379

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter end occupancy- same store - combined office (consolidated + joint venture)

 

95.1

%(1)

94.8

%

94.6

%

94.5

%

94.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Office Leasing Statistics

 

 

 

 

 

 

 

 

 

 

 

Total office leases commenced

 

58

 

47

 

58

 

55

 

53

 

 

 

 

 

 

 

 

 

 

 

 

 

Commenced office square footage filling vacancy

 

278,663

 

208,460

 

131,210

 

129,746

 

83,819

 

Commenced office square footage on previously occupied space (M-T-M leasing) (2)

 

3,049,172

 

156,532

 

518,215

 

406,355

 

206,289

 

Total office square footage commenced

 

3,327,835

 

364,992

 

649,425

 

536,101

 

290,108

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rent psf - leases commenced

 

$

47.66

 

$

56.78

 

$

56.39

 

$

57.06

 

$

56.96

 

Previously escalated rents psf

 

$

42.71

 

$

59.78

 

$

53.72

 

$

54.72

 

$

55.61

 

Percentage of new rent over previously escalated rents (2)

 

11.6

%

-5.0

%

5.0

%

4.3

%

2.4

%

Average lease term

 

14.4

 

8.7

 

6.5

 

5.4

 

7.2

 

Tenant concession packages psf

 

$

49.18

 

$

38.15

 

$

23.23

 

$

21.55

 

$

33.25

 

Free rent months

 

6.6

 

5.2

 

1.6

 

2.2

 

2.7

 

 


(1) Manhattan same-store occupancy, inclusive of 394,321 square feet of leases signed but not yet commenced, increased to 96.6% as of December 31, 2013

(2) Calculated on space that was occupied within the previous 12 months

 

13



 

SL Green Realty Corp.
Key Financial Data
December 31, 2013
(Dollars in Thousands Except Per Share)

 

Suburban Properties (1)

 

 

 

As of or for the three months ended

 

 

 

12/31/2013

 

9/30/2013

 

6/30/2013

 

3/31/2013

 

12/31/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Data

 

 

 

 

 

 

 

 

 

 

 

Property operating revenues

 

$

27,616

 

$

28,917

 

$

26,341

 

$

23,815

 

$

26,879

 

Property operating expenses

 

16,109

 

15,545

 

14,721

 

13,015

 

14,199

 

Property operating NOI

 

$

11,507

 

$

13,372

 

$

11,620

 

$

10,800

 

$

12,680

 

NOI from discontinued operations

 

 

178

 

29

 

136

 

141

 

Total property operating NOI - consolidated

 

$

11,507

 

$

13,550

 

$

11,649

 

$

10,936

 

$

12,821

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income - consolidated

 

$

858

 

$

549

 

$

843

 

$

1,618

 

$

185

 

 

 

 

 

 

 

 

 

 

 

 

 

SLG share of property NOI from unconsolidated JV

 

$

1,422

 

$

1,496

 

$

1,186

 

$

2,000

 

$

2,021

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Statistics

 

 

 

 

 

 

 

 

 

 

 

Consolidated office buildings in service

 

26

 

26

 

27

 

26

 

25

 

Unconsolidated office buildings in service

 

4

 

4

 

4

 

5

 

5

 

 

 

30

 

30

 

31

 

31

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated office buildings in service - square footage

 

4,087,400

 

4,087,400

 

4,217,400

 

3,899,800

 

3,863,000

 

Unconsolidated office buildings in service - square footage

 

1,222,100

 

1,222,100

 

1,222,100

 

1,539,700

 

1,539,700

 

 

 

5,309,500

 

5,309,500

 

5,439,500

 

5,439,500

 

5,402,700

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter end occupancy- same store - combined office (consolidated + joint venture)

 

81.1

%(2)

80.0

%

80.2

%

79.9

%

80.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Office Leasing Statistics

 

 

 

 

 

 

 

 

 

 

 

Total office leases commenced

 

26

 

35

 

30

 

34

 

28

 

 

 

 

 

 

 

 

 

 

 

 

 

Commenced office square footage filling vacancy

 

107,696

 

86,487

 

59,648

 

74,975

 

32,545

 

Commenced office square footage on previously occupied space (M-T-M leasing) (3)

 

73,631

 

143,787

 

151,408

 

150,097

 

108,258

 

Total office square footage commenced

 

181,327

 

230,274

 

211,056

 

225,072

 

140,803

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rent psf - leases commenced

 

$

33.28

 

$

28.09

 

$

30.73

 

$

32.51

 

$

30.04

 

Previously escalated rents psf

 

$

32.79

 

$

28.11

 

$

34.25

 

$

32.74

 

$

32.30

 

Percentage of new rent over previously escalated rents (3)

 

1.5

%

0.0

%

-10.3

%

-0.7

%

-7.0

%

Average lease term

 

7.2

 

7.1

 

6.8

 

7.1

 

6.3

 

Tenant concession packages psf

 

$

27.51

 

$

24.47

 

$

18.67

 

$

17.40

 

$

16.21

 

Free rent months

 

7.8

 

5.0

 

5.6

 

3.1

 

4.7

 

 


(1) Excludes the west coast office portfolio

(2) Suburban same-store occupancy, inclusive of 46,736 square feet of leases signed but not yet commenced, increased to 82.1% as of December 31, 2013

(3) Calculated on space that was occupied within the previous 12 months

 

14



 

COMPARATIVE BALANCE SHEETS

 

Unaudited
(Dollars in Thousands)

 

 

 

12/31/2013

 

9/30/2013

 

6/30/2013

 

3/31/2013

 

12/31/2012

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate properties, at cost:

 

 

 

 

 

 

 

 

 

 

 

Land & land interests

 

$

3,032,526

 

$

2,868,833

 

$

2,866,048

 

$

2,886,099

 

$

2,886,099

 

Buildings & improvements fee interest

 

7,884,663

 

7,440,543

 

7,393,930

 

7,452,347

 

7,389,766

 

Buildings & improvements leasehold

 

1,366,281

 

1,353,997

 

1,352,953

 

1,346,481

 

1,346,748

 

Buildings & improvements under capital lease

 

50,310

 

50,332

 

50,332

 

47,179

 

40,340

 

 

 

12,333,780

 

11,713,705

 

11,663,263

 

11,732,106

 

11,662,953

 

Less accumulated depreciation

 

(1,646,240

)

(1,574,002

)

(1,502,694

)

(1,461,775

)

(1,393,323

)

 

 

10,687,540

 

10,139,703

 

10,160,569

 

10,270,331

 

10,269,630

 

Other real estate investments:

 

 

 

 

 

 

 

 

 

 

 

Investment in unconsolidated joint ventures

 

1,113,218

 

1,109,815

 

1,085,793

 

1,073,130

 

1,032,243

 

Debt and preferred equity investments, net

 

1,304,839

 

1,315,551

 

1,227,421

 

1,431,731

 

1,348,434

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets held for sale, net

 

 

 

207,665

 

 

4,901

 

Cash and cash equivalents

 

206,692

 

209,098

 

198,969

 

220,140

 

189,984

 

Restricted cash

 

142,051

 

356,844

 

130,483

 

130,233

 

136,071

 

Investment in marketable securities

 

32,049

 

32,863

 

26,266

 

22,994

 

21,429

 

Tenant and other receivables, net of $17,325 reserve at 12/31/13

 

60,393

 

57,602

 

56,728

 

48,197

 

55,855

 

Related party receivables

 

8,530

 

7,800

 

6,845

 

11,133

 

7,531

 

Deferred rents receivable, net of reserve for tenant credit loss of $30,333 at 12/31/13

 

386,508

 

374,615

 

360,954

 

355,250

 

340,747

 

Deferred costs, net

 

267,058

 

247,850

 

246,058

 

252,018

 

261,145

 

Other assets

 

750,123

 

729,426

 

699,256

 

722,952

 

718,326

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

14,959,001

 

$

14,581,167

 

$

14,407,007

 

$

14,538,109

 

$

14,386,296

 

 

15



 

COMPARATIVE BALANCE SHEETS

 

Unaudited

(Amounts in Thousands)

 

 

 

12/31/2013

 

9/30/2013

 

6/30/2013

 

3/31/2013

 

12/31/2012

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Mortgages and other loans payable

 

$

4,860,578

 

$

4,641,758

 

$

4,835,231

 

$

4,815,485

 

$

4,615,464

 

Term loan and senior unsecured notes

 

1,739,330

 

1,737,869

 

1,735,205

 

1,732,588

 

1,734,956

 

Revolving credit facility

 

220,000

 

340,000

 

40,000

 

30,000

 

70,000

 

Accrued interest and other liabilities

 

114,622

 

75,607

 

77,497

 

79,913

 

81,080

 

Accounts payable and accrued expenses

 

145,889

 

167,719

 

138,029

 

143,812

 

159,598

 

Deferred revenue

 

263,261

 

293,393

 

296,930

 

310,214

 

312,995

 

Capitalized lease obligations

 

47,671

 

47,492

 

47,240

 

43,404

 

37,518

 

Deferred land lease payable

 

22,185

 

21,066

 

19,948

 

19,750

 

20,897

 

Dividends and distributions payable

 

52,255

 

34,749

 

34,740

 

37,737

 

37,839

 

Security deposits

 

61,308

 

54,824

 

53,604

 

49,803

 

46,253

 

Liabilities related to assets held for sale

 

 

 

11,894

 

 

136

 

Junior subordinated deferrable interest debentures

 

100,000

 

100,000

 

100,000

 

100,000

 

100,000

 

Total liabilities

 

7,627,099

 

7,514,477

 

7,390,318

 

7,362,706

 

7,216,736

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest in operating partnership (2,902 units outstanding) at 12/31/13

 

265,476

 

248,046

 

243,925

 

220,174

 

212,907

 

Series G Preferred Units

 

47,550

 

47,550

 

47,550

 

47,550

 

47,550

 

Series H Preferred Units

 

2,000

 

2,000

 

2,000

 

2,000

 

2,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

SL Green Realty Corp. Stockholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

Series C Perpetual Preferred Shares

 

 

 

 

180,340

 

180,340

 

Series D Perpetual Preferred Shares

 

 

 

 

 

 

Series I Perpetual Preferred Shares

 

221,932

 

221,932

 

221,932

 

221,932

 

221,965

 

Common stock, $.01 par value, 160,000 shares authorized, 98,563 issued and outstanding at 12/31/13

 

986

 

959

 

955

 

953

 

950

 

Additional paid—in capital

 

5,015,904

 

4,757,778

 

4,716,012

 

4,697,528

 

4,667,900

 

Treasury stock (3,570 shares) at 12/31/13

 

(317,356

)

(316,989

)

(316,768

)

(322,858

)

(322,858

)

Accumulated other comprehensive loss

 

(15,211

)

(19,249

)

(18,622

)

(26,117

)

(29,587

)

Retained earnings

 

1,619,150

 

1,636,584

 

1,631,287

 

1,665,468

 

1,701,092

 

Total SL Green Realty Corp. stockholders’ equity

 

6,525,405

 

6,281,015

 

6,234,796

 

6,417,246

 

6,419,802

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest in other partnerships

 

491,471

 

488,079

 

488,418

 

488,433

 

487,301

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

7,016,876

 

6,769,094

 

6,723,214

 

6,905,679

 

6,907,103

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

14,959,001

 

$

14,581,167

 

$

14,407,007

 

$

14,538,109

 

$

14,386,296

 

 

16



 

COMPARATIVE STATEMENTS OF OPERATIONS

 

Unaudited
(Dollars in Thousands Except Per Share)

 

 

 

Three Months Ended

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2013

 

2012

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

276,580

 

$

264,411

 

$

264,349

 

$

1,080,684

 

$

1,062,682

 

Escalation and reimbursement revenues

 

44,511

 

40,883

 

45,091

 

169,529

 

165,156

 

Investment income

 

49,956

 

31,500

 

44,448

 

193,843

 

119,155

 

Other income

 

3,651

 

9,805

 

9,877

 

25,021

 

35,736

 

Total Revenues, net

 

374,698

 

346,599

 

363,765

 

1,469,077

 

1,382,729

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net income (loss) from unconsolidated joint ventures

 

5,669

 

(4,570

)

2,939

 

9,921

 

76,418

 

Gain (loss) on early extinguishment of debt

 

5

 

(6,978

)

 

(18,518

)

(6,978

)

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

74,610

 

70,719

 

77,272

 

293,514

 

292,392

 

Ground rent

 

10,160

 

11,296

 

10,127

 

39,926

 

37,866

 

Real estate taxes

 

57,207

 

52,591

 

55,511

 

218,832

 

209,337

 

Loan loss and other investment reserves, net of recoveries

 

 

 

 

 

564

 

Transaction related costs, net of recoveries

 

3,268

 

1,227

 

(2,349

)

3,987

 

5,625

 

Marketing, general and administrative

 

22,742

 

21,372

 

20,869

 

86,192

 

82,840

 

Total Operating Expenses

 

167,987

 

157,205

 

161,430

 

642,451

 

628,624

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

212,385

 

177,846

 

205,274

 

818,029

 

823,545

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of interest income

 

82,795

 

82,108

 

82,973

 

330,215

 

329,897

 

Amortization of deferred financing costs

 

3,661

 

7,824

 

4,331

 

16,695

 

19,450

 

Depreciation and amortization

 

89,105

 

92,170

 

87,473

 

337,692

 

325,737

 

(Gain) Loss on equity investment in marketable securities

 

 

(2,703

)

 

65

 

(4,940

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

36,824

 

(1,553

)

30,497

 

133,362

 

153,401

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

 

9,736

 

1,406

 

3,875

 

12,619

 

Gain (loss) on sale of discontinued operations

 

 

 

13,787

 

14,900

 

6,627

 

Equity in net gain (loss) on sale of joint venture interest / real estate

 

7,538

 

19,277

 

(354

)

3,601

 

31,264

 

Purchase price fair value adjustment

 

 

 

 

(2,305

)

 

Depreciable real estate reserves, net of recoveries

 

 

 

 

(2,150

)

5,789

 

Net Income

 

44,362

 

27,460

 

45,336

 

151,283

 

209,700

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

(2,936

)

481

 

(4,011

)

(13,652

)

(11,188

)

Dividends on preferred units

 

(568

)

(574

)

(562

)

(2,260

)

(2,107

)

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Attributable to SL Green Realty Corp

 

40,858

 

27,367

 

40,763

 

135,371

 

196,405

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock redemption costs

 

 

 

 

(12,160

)

(10,010

)

Dividends on perpetual preferred shares

 

(3,738

)

(7,407

)

(3,738

)

(21,881

)

(30,411

)

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Attributable to Common Stockholders

 

$

37,120

 

$

19,960

 

$

37,025

 

$

101,330

 

$

155,984

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share (basic)

 

$

0.39

 

$

0.22

 

$

0.40

 

$

1.10

 

$

1.75

 

Net income (loss) per share (diluted)

 

$

0.39

 

$

0.22

 

$

0.40

 

$

1.10

 

$

1.74

 

 

17



 

 

COMPARATIVE COMPUTATION OF FFO AND FAD

 

Unaudited

(Dollars in Thousands Except Per Share)

 

 

 

Three Months Ended

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2013

 

2012

 

Funds from Operations

 

 

 

 

 

 

 

 

 

 

 

Net Income Attributable to Common Stockholders

 

$

37,120

 

$

19,960

 

$

37,025

 

$

101,330

 

$

155,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

Depreciation and amortization

 

89,105

 

92,170

 

87,473

 

337,692

 

325,737

 

 

Discontinued operations depreciation adjustments

 

 

1,616

 

 

3,212

 

6,373

 

 

Joint ventures depreciation and noncontrolling interests adjustments

 

13,399

 

13,417

 

12,720

 

51,266

 

35,593

 

 

Net income attributable to noncontrolling interests

 

2,936

 

(481

)

4,011

 

13,652

 

11,188

 

Less:

Gain (loss) on sale of discontinued operations

 

 

 

13,787

 

14,900

 

6,627

 

 

Equity in net gain (loss) on sale of joint venture property / real estate

 

7,538

 

19,277

 

(354

)

3,601

 

31,264

 

 

Purchase price fair value adjustment

 

 

 

 

(2,305

)

 

 

Depreciable real estate reserves, net of recoveries

 

 

 

 

(2,150

)

5,789

 

 

Non-real estate depreciation and amortization

 

505

 

243

 

416

 

1,509

 

940

 

 

Funds From Operations

 

$

134,517

 

$

107,162

 

$

127,380

 

$

491,597

 

$

490,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations - Basic per Share

 

$

1.39

 

$

1.14

 

$

1.34

 

$

5.17

 

$

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations - Diluted per Share

 

$

1.38

 

$

1.14

 

$

1.34

 

$

5.16

 

$

5.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds Available for Distribution

 

 

 

 

 

 

 

 

 

 

 

FFO

 

 

$

134,517

 

$

107,162

 

$

127,380

 

491,597

 

490,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

Non real estate depreciation and amortization

 

505

 

243

 

416

 

1,509

 

940

 

 

Amortization of deferred financing costs

 

3,661

 

7,824

 

4,331

 

16,695

 

19,450

 

 

Non-cash deferred compensation

 

26,770

 

16,325

 

8,148

 

55,092

 

42,414

 

Less:

FAD adjustment for Joint Ventures

 

18,104

 

5,937

 

4,210

 

29,676

 

15,611

 

 

FAD adjustment for discontinued operations

 

 

 

130

 

416

 

1,082

 

 

Straight-line rental income and other non cash adjustments

 

13,827

 

13,866

 

8,971

 

53,868

 

128,664

 

 

Second cycle tenant improvements

 

37,613

 

18,564

 

11,907

 

68,090

 

45,950

 

 

Second cycle leasing commissions

 

13,482

 

4,173

 

4,935

 

28,034

 

28,445

 

 

Revenue enhancing recurring CAPEX

 

2,446

 

530

 

467

 

3,738

 

2,277

 

 

Non-revenue enhancing recurring CAPEX

 

18,464

 

18,850

 

5,754

 

32,730

 

39,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Funds Available for Distribution

 

$

61,517

 

$

69,634

 

$

103,901

 

$

348,341

 

$

291,241

 

 

Diluted per Share

 

$

0.63

 

$

0.74

 

$

1.09

 

$

3.66

 

$

3.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

1515 Broadway - Viacom capital contribution

 

$

4,226

 

$

377

 

$

85

 

$

4,634

 

$

15,652

 

 

388-390 Greenwich - Citi capital contribution (at SLG share)

 

$

13,374

 

$

 

$

9

 

$

13,404

 

$

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Funds Available for Distribution

 

$

79,117

 

$

70,011

 

$

103,995

 

$

366,379

 

$

307,021

 

 

Diluted per Share

 

$

0.81

 

$

0.74

 

$

1.09

 

$

3.85

 

$

3.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First cycle tenant improvements

 

$

11,644

 

$

4,508

 

$

9,946

 

$

27,345

 

$

16,093

 

First cycle leasing commissions

 

$

5,034

 

$

5,528

 

$

4,171

 

$

4,809

 

$

11,371

 

Redevelopment Costs

 

$

19,208

 

$

6,600

 

$

7,778

 

$

17,860

 

$

27,189

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Ratio of Funds from Operations

 

36.1

%

29.0

%

24.6

%

28.9

%

20.5

%

Payout Ratio of Recurring Funds Available for Distribution

 

61.4

%

44.3

%

30.2

%

38.7

%

32.7

%

 

18



 

CONSOLIDATED STATEMENT OF EQUITY

 

Unaudited
(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Series C

 

Series I

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

Preferred

 

Preferred

 

Common

 

Additional

 

Treasury

 

Retained

 

Noncontrolling

 

Comprehensive

 

 

 

 

 

Stock

 

Stock

 

Stock

 

Paid-In Capital

 

Stock

 

Earnings

 

Interests

 

Loss

 

TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2012

 

$

180,340

 

$

221,965

 

$

950

 

$

4,667,900

 

$

(322,858

)

$

1,701,092

 

$

487,301

 

$

(29,587

)

$

6,907,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income attributable to SL Green

 

 

 

 

 

 

 

 

 

 

 

135,371

 

10,629

 

 

 

146,000

 

Preferred dividends

 

 

 

 

 

 

 

 

 

 

 

(21,881

)

 

 

 

 

(21,881

)

Cash distributions declared ($1.49 per common share)

 

 

 

 

 

 

 

 

 

 

 

(138,684

)

 

 

 

 

(138,684

)

Cash distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,623

)

 

 

(14,623

)

Other comprehensive income - unrealized gain on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,710

 

1,710

 

Other comprehensive income - SLG’s share of joint venture net unrealized gain on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,193

 

11,193

 

Other comprehensive income - unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,473

 

1,473

 

Proceeds from stock options exercised

 

 

 

 

 

2

 

12,902

 

 

 

 

 

 

 

 

 

12,904

 

DRIP proceeds

 

 

 

 

 

 

 

67

 

 

 

 

 

 

 

 

 

67

 

Conversion of units of the Operating Partnership to common stock

 

 

 

 

 

2

 

17,285

 

 

 

 

 

 

 

 

 

17,287

 

Contributions to consolidated joint venture

 

 

 

 

 

 

 

 

 

 

 

 

 

8,164

 

 

 

8,164

 

Sale of treasury stock

 

 

 

 

 

 

 

 

 

6,090

 

1,030

 

 

 

 

 

7,120

 

Reallocation of noncontrolling interests in the Operating Partnership

 

 

 

 

 

 

 

 

 

 

 

(45,618

)

 

 

 

 

(45,618

)

Redemption of preferred stock

 

(180,340

)

 

 

 

 

 

 

 

 

(12,160

)

 

 

 

 

(192,500

)

Preferred stock issuance costs

 

 

 

(33

)

 

 

 

 

 

 

 

 

 

 

 

 

(33

)

Issuance of common stock

 

 

 

 

 

30

 

290,669

 

 

 

 

 

 

 

 

 

290,699

 

Deferred compensation plan and stock awards, net

 

 

 

 

 

2

 

752

 

(588

)

 

 

 

 

 

 

166

 

Amortization of deferred compensation plan

 

 

 

 

 

 

 

26,329

 

 

 

 

 

 

 

 

 

26,329

 

Balance at December 31, 2013

 

$

 

$

221,932

 

$

986

 

$

5,015,904

 

$

(317,356

)

$

1,619,150

 

$

491,471

 

$

(15,211

)

$

7,016,876

 

 


RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION

 

 

 

Common Stock

 

OP Units

 

Stock-Based
Compensation

 

Sub-total

 

Preferred Stock

 

Diluted Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Count at December 31, 2012

 

91,249,632

 

2,759,758

 

 

94,009,390

 

 

94,009,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD share activity

 

3,743,652

 

142,559

 

 

3,886,211

 

 

 

3,886,211

 

Share Count at December 31, 2013 - Basic

 

94,993,284

 

2,902,317

 

 

97,895,601

 

 

97,895,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighting factor

 

(2,724,319

)

(167,203

)

261,576

 

(2,629,947

)

 

 

(2,629,947

)

Weighted Average Share Count at December 31, 2013 - Diluted

 

92,268,965

 

2,735,114

 

261,576

 

95,265,654

 

 

95,265,654

 

 

19



 

JOINT VENTURE STATEMENTS

Balance Sheet for Unconsolidated Joint Ventures

Unaudited

(Dollars in Thousands)

 

 

 

December 31, 2013

 

December 31, 2012

 

 

 

Total

 

SLG Interest

 

Total

 

SLG Interest

 

Land and land interests

 

$

1,943,275

 

$

898,652

 

$

1,967,727

 

$

875,435

 

Buildings and improvements

 

5,370,424

 

2,391,671

 

5,521,306

 

2,341,441

 

Building leasehold

 

8,222

 

5,556

 

7,491

 

3,371

 

Buildings & improvements under capital lease

 

189,558

 

94,779

 

 

 

 

 

7,511,479

 

3,390,658

 

7,496,524

 

3,220,247

 

Less accumulated depreciation

 

(665,458

)

(287,177

)

(585,533

)

(243,383

)

 

 

 

 

 

 

 

 

 

 

Net real estate

 

6,846,021

 

3,103,481

 

6,910,991

 

2,976,864

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

96,818

 

40,711

 

77,456

 

29,416

 

Restricted cash

 

119,695

 

50,651

 

130,350

 

49,237

 

Debt investments

 

 

 

 

 

Tenant and other receivables, net of $2,921 reserve at 12/31/13

 

33,823

 

13,711

 

39,263

 

15,332

 

Deferred rents receivable, net of reserve for tenant credit loss of $2,999 at 12/31/13

 

118,396

 

45,612

 

89,153

 

32,703

 

Deferred costs, net

 

176,615

 

73,751

 

163,022

 

61,573

 

Other assets

 

281,935

 

122,544

 

228,869

 

94,261

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,673,303

 

$

3,450,461

 

$

7,639,104

 

$

3,259,386

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans payable

 

$

5,066,710

 

$

2,134,677

 

$

5,358,048

 

$

2,135,361

 

Derivative instruments-fair value

 

10,389

 

5,176

 

33,457

 

16,687

 

Accrued interest and other liabilities

 

14,265

 

6,582

 

14,754

 

5,514

 

Accounts payable and accrued expenses

 

150,278

 

72,704

 

99,869

 

45,564

 

Deferred revenue

 

224,850

 

105,592

 

240,641

 

113,807

 

Capitalized lease obligations

 

178,119

 

89,060

 

 

 

 

Security deposits

 

19,059

 

8,902

 

18,208

 

7,706

 

Contributed Capital (1)

 

2,009,633

 

1,027,768

 

1,874,127

 

934,747

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

7,673,303

 

$

3,450,461

 

$

7,639,104

 

$

3,259,386

 

 


(1) Contributed capital reflects our share of capital based on the fair value of partially sold or contributed properties, while the investment in unconsolidated joint venture balance reflected on the face of the balance sheet reflects the actual capital invested in the joint venture.

 

20



 

JOINT VENTURE STATEMENTS

Statements of Operations for Unconsolidated Joint Ventures

Unaudited

(Dollars in Thousands)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

Three Months Ended December 31, 2013

 

September 30, 2013

 

Three Months Ended December 31, 2012

 

 

 

Total

 

SLG Interest

 

SLG Interest

 

Total

 

SLG Interest

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

138,827

 

$

59,147

 

$

57,605

 

$

127,850

 

$

49,905

 

Escalation and reimbursement revenues

 

12,406

 

5,218

 

4,725

 

10,931

 

4,148

 

Other income

 

14,640

 

6,466

 

4,306

 

7,789

 

3,688

 

Total Revenues, net

 

$

165,873

 

$

70,831

 

$

66,636

 

$

146,570

 

$

57,741

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

28,606

 

$

12,636

 

$

12,681

 

$

29,765

 

$

11,230

 

Ground rent

 

891

 

117

 

 

658

 

 

Real estate taxes

 

18,387

 

7,881

 

8,037

 

15,748

 

6,220

 

Total Operating Expenses

 

$

47,884

 

$

20,634

 

$

20,718

 

$

46,171

 

$

17,450

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

$

117,989

 

$

50,197

 

$

45,918

 

$

100,399

 

$

40,291

 

Cash NOI

 

$

107,409

 

$

45,938

 

$

42,232

 

$

93,381

 

$

38,027

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction related costs, net of recoveries

 

$

808

 

$

341

 

$

 

$

752

 

$

306

 

Interest expense, net of interest income

 

56,628

 

20,477

 

20,031

 

60,948

 

21,540

 

Amortization of deferred financing costs

 

4,638

 

2,506

 

1,790

 

2,730

 

1,104

 

Depreciation and amortization

 

47,952

 

20,786

 

21,058

 

58,587

 

21,911

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

7,963

 

$

6,087

 

$

3,039

 

$

(22,618

)

$

(4,570

)

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Real estate depreciation

 

47,939

 

20,780

 

21,055

 

58,587

 

21,911

 

FFO Contribution

 

$

55,902

 

$

26,867

 

$

24,094

 

$

35,969

 

$

17,341

 

 

 

 

 

 

 

 

 

 

 

 

 

FAD Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Add: Non real estate depreciation and amortization

 

$

4,651

 

$

2,512

 

$

1,793

 

$

2,730

 

$

1,104

 

Less: Straight-line rental income and other non-cash adjustments

 

(11,902

)

(4,902

)

(4,284

)

(7,055

)

(2,244

)

Less: Second cycle tenant improvement

 

(2,785

)

(1,471

)

(750

)

(7,791

)

(3,261

)

Less: Second cycle leasing commissions

 

(27,667

)

(13,788

)

(888

)

(2,761

)

(971

)

Less: Recurring CAPEX

 

(777

)

(455

)

(81

)

(1,585

)

(565

)

FAD Adjustment

 

$

(38,480

)

$

(18,104

)

$

(4,210

)

$

(16,462

)

$

(5,937

)

 

21



 

JOINT VENTURE STATEMENTS
Statements of Operations for Unconsolidated Joint Ventures
Unaudited
(Dollars in Thousands)

 

 

 

Twelve Months Ended December 31, 2013

 

Twelve Months Ended December 31, 2012

 

 

 

Total

 

SLG Interest

 

Total

 

SLG Interest

 

Revenues

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

539,528

 

$

225,350

 

$

444,783

 

$

185,222

 

Escalation and reimbursement revenues

 

46,003

 

18,707

 

35,841

 

14,601

 

Other income

 

43,118

 

19,947

 

30,533

 

14,790

 

Total Revenues, net

 

$

628,649

 

$

264,004

 

$

511,157

 

$

214,613

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

114,633

 

$

48,951

 

$

80,722

 

$

33,941

 

Ground rent

 

2,863

 

117

 

2,975

 

155

 

Real estate taxes

 

71,755

 

30,018

 

53,613

 

22,481

 

Total Operating Expenses

 

$

189,251

 

$

79,086

 

$

137,310

 

$

56,577

 

 

 

 

 

 

 

 

 

 

 

NOI

 

$

439,398

 

$

184,918

 

$

373,847

 

$

158,036

 

Cash NOI

 

$

406,908

 

$

172,070

 

$

346,859

 

$

149,843

 

 

 

 

 

 

 

 

 

 

 

Transaction related costs, net of recoveries

 

$

808

 

$

356

 

$

2,044

 

$

960

 

Interest expense, net of interest income

 

225,765

 

79,896

 

221,476

 

86,268

 

Amortization of deferred financing costs

 

17,092

 

9,637

 

9,739

 

3,859

 

Depreciation and amortization

 

192,504

 

79,640

 

166,336

 

69,116

 

 

 

 

 

 

 

 

 

 

 

Gain on early extinguishment of debt

 

 

 

21,421

 

10,711

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

3,229

 

$

15,389

 

$

(4,327

)

$

8,544

 

 

 

 

 

 

 

 

 

 

 

Plus: Real estate depreciation

 

192,475

 

79,629

 

166,296

 

69,108

 

FFO Contribution

 

$

195,704

 

$

95,018

 

$

161,969

 

$

77,652

 

 

 

 

 

 

 

 

 

 

 

FAD Adjustments:

 

 

 

 

 

 

 

 

 

Add: Non real estate depreciation and amortization

 

$

17,121

 

$

9,648

 

$

9,779

 

$

3,867

 

Less: Straight-line rental income and other non-cash adjustments

 

(37,422

)

(15,280

)

(27,880

)

(8,810

)

Less: Second cycle tenant improvement

 

(10,341

)

(4,889

)

(18,017

)

(6,457

)

Less: Second cycle leasing commissions

 

(37,045

)

(17,903

)

(10,459

)

(3,465

)

Less: Recurring CAPEX

 

(2,711

)

(1,252

)

(2,177

)

(746

)

FAD Adjustment

 

$

(70,398

)

$

(29,676

)

$

(48,754

)

$

(15,611

)

 

22



 

SELECTED FINANCIAL DATA
Property NOI and Coverage Ratios
Unaudited
(Dollars in Thousands)

 

 

 

Three Months Ended

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2013

 

2012

 

Property NOI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating NOI

 

$

179,114

 

$

170,688

 

$

166,530

 

$

697,943

 

$

688,247

 

NOI from discontinued operations

 

 

2,488

 

1,536

 

7,548

 

11,849

 

Total property operating NOI - consolidated

 

179,114

 

173,176

 

168,066

 

705,491

 

700,096

 

SLG share of property NOI from JVs

 

50,197

 

40,291

 

45,918

 

184,918

 

158,036

 

NOI

 

$

229,311

 

$

213,467

 

$

213,984

 

$

890,409

 

$

858,132

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Free rent (net of amortization)

 

2,199

 

1,696

 

3,312

 

9,712

 

11,011

 

 

Net FAS 141 adjustment

 

3,962

 

1,977

 

(2,633

)

9,803

 

6,096

 

 

Straightline revenue adjustment

 

15,900

 

15,962

 

15,793

 

63,669

 

68,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:

Allowance for S/L tenant credit loss

 

741

 

121

 

937

 

2,682

 

3,489

 

 

Ground lease straight-line adjustment

 

1,314

 

2,208

 

1,254

 

4,637

 

2,782

 

Cash NOI

 

$

209,305

 

$

196,161

 

$

199,703

 

$

814,544

 

$

779,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of Consolidated Debt Service and Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

82,795

 

$

82,563

 

$

83,103

 

$

330,676

 

$

331,980

 

Fixed amortization principal payments

 

10,214

 

12,948

 

10,143

 

42,097

 

50,305

 

Total Consolidated Debt Service

 

$

93,009

 

$

95,511

 

$

93,246

 

$

372,773

 

$

382,285

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments under ground lease arrangements

 

$

8,846

 

$

9,088

 

$

8,873

 

$

35,289

 

$

35,084

 

Dividends on preferred units

 

568

 

574

 

562

 

2,260

 

2,107

 

Dividends on perpetual preferred shares

 

3,738

 

7,407

 

3,738

 

21,881

 

30,411

 

Total Consolidated Fixed Charges

 

$

106,161

 

$

112,580

 

$

106,419

 

$

432,203

 

$

449,887

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Interest Coverage Ratio

 

2.80

x

2.40

x

2.72

x

2.73

x

2.51

x

Consolidated Debt Service Coverage Ratio

 

2.49

x

2.08

x

2.43

x

2.43

x

2.18

x

Consolidated Fixed Charge Coverage Ratio

 

2.19

x

1.77

x

2.13

x

2.10

x

1.85

x

 

23



 

 

SELECTED FINANCIAL DATA

2013 Same Store - Consolidated

Unaudited

(Dollars in Thousands)

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

September 30,

 

December 31,

 

December 31,

 

 

 

 

 

2013

 

2012

 

%

 

2013

 

2013

 

2012

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

248,111

 

$

244,384

 

1.5

%

$

238,945

 

$

983,249

 

$

966,167

 

1.8

%

 

Escalation & reimbursement revenues

 

40,784

 

38,033

 

7.2

%

41,809

 

157,601

 

152,811

 

3.1

%

 

Other income

 

1,367

 

1,974

 

-30.7

%

861

 

6,137

 

10,839

 

-43.4

%

 

Total Revenues

 

$

290,262

 

$

284,391

 

2.1

%

$

281,615

 

$

1,146,987

 

$

1,129,817

 

1.5

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

61,255

 

$

61,094

 

0.3

%

$

65,944

 

$

249,621

 

$

244,943

 

1.9

%

 

Ground rent

 

9,953

 

11,555

 

-13.9

%

10,300

 

41,719

 

38,641

 

8.0

%

 

Real estate taxes

 

50,765

 

47,648

 

6.5

%

50,248

 

197,504

 

188,683

 

4.7

%

 

Transaction related costs, net of recoveries

 

 

 

0.0

%

 

1

 

(9

)

0.0

%

 

 

$

121,973

 

$

120,297

 

1.4

%

$

126,492

 

$

488,845

 

$

472,258

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

168,289

 

$

164,094

 

2.6

%

$

155,123

 

$

658,142

 

$

657,559

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense & amortization of financing costs

 

$

57,756

 

$

60,279

 

-4.2

%

$

57,580

 

$

232,542

 

$

237,290

 

-2.0

%

 

Depreciation & amortization

 

74,485

 

69,743

 

6.8

%

76,492

 

293,595

 

275,601

 

6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before noncontrolling interest

 

$

36,048

 

$

34,072

 

5.8

%

$

21,051

 

$

132,005

 

$

144,668

 

-8.8

%

Plus:

Real estate depreciation & amortization

 

74,475

 

69,733

 

6.8

%

76,482

 

293,555

 

275,561

 

6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO Contribution

 

$

110,523

 

$

103,805

 

6.5

%

$

97,533

 

$

425,560

 

$

420,229

 

1.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Non—building revenue

 

463

 

93

 

397.8

%

209

 

2,202

 

3,210

 

-31.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:

Transaction related costs, net of recoveries

 

 

 

0.0

%

 

1

 

(9

)

0.0

%

 

Interest expense & amortization of financing costs

 

57,756

 

60,279

 

-4.2

%

57,580

 

232,542

 

237,290

 

-2.0

%

 

Non-real estate depreciation

 

10

 

10

 

0.0

%

10

 

40

 

40

 

0.0

%

 

NOI

 

$

167,826

 

$

164,001

 

2.3

%

$

154,914

 

$

655,941

 

$

654,340

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Free rent (net of amortization)

 

(756

)

74

 

-1121.6

%

1,133

 

1,322

 

4,665

 

-71.7

%

 

Straightline revenue adjustment

 

12,047

 

12,865

 

-6.4

%

12,077

 

49,447

 

53,995

 

-8.4

%

 

Rental income - FAS 141

 

3,319

 

2,377

 

39.6

%

(4,067

)

5,154

 

10,317

 

-50.0

%

Plus:

Ground lease straight-line adjustment

 

1,292

 

2,186

 

-40.9

%

1,232

 

5,645

 

2,702

 

108.9

%

 

Allowance for S/L tenant credit loss

 

605

 

(72

)

-940.3

%

765

 

2,806

 

2,411

 

16.4

%

 

Cash NOI

 

$

155,113

 

$

150,799

 

2.9

%

$

147,768

 

$

608,469

 

$

590,476

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI to real estate revenue, net

 

57.79

%

57.70

%

 

 

54.90

%

57.16

%

57.96

%

 

 

 

Cash NOI to real estate revenue, net

 

53.41

%

53.06

%

 

 

52.37

%

53.02

%

52.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI before ground rent/real estate revenue, net

 

61.22

%

61.77

%

 

 

58.55

%

60.79

%

61.38

%

 

 

 

Cash NOI before ground rent/real estate revenue, net

 

56.40

%

56.35

%

 

 

55.58

%

56.16

%

55.48

%

 

 

 

24



 

 

SELECTED FINANCIAL DATA

2013 Same Store - Joint Venture

Unaudited

(Dollars in Thousands)

 

 

 

 

Three Months Ended

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

September 30,

 

December 31,

 

December 31,

 

 

 

 

 

2013

 

2012

 

%

 

2013

 

2013

 

2012

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

30,344

 

$

29,540

 

2.7

%

$

29,864

 

$

120,444

 

$

116,781

 

3.1

%

Escalation & reimbursement revenues

 

1,707

 

1,606

 

6.3

%

1,617

 

6,255

 

6,591

 

-5.1

%

Other income

 

436

 

157

 

177.7

%

415

 

1,241

 

11,435

 

-89.1

%

Total Revenues

 

$

32,487

 

$

31,303

 

3.8

%

$

31,896

 

$

127,940

 

$

134,807

 

-5.1

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

3,983

 

$

4,237

 

-6.0

%

$

4,153

 

$

16,207

 

$

17,109

 

-5.3

%

Ground rent

 

 

 

0.0

%

0

 

 

 

0.0

%

Real estate taxes

 

2,685

 

2,123

 

26.5

%

2,728

 

10,487

 

9,673

 

8.4

%

Transaction related costs, net of recoveries

 

 

 

0.0

%

 

 

2

 

0.0

%

 

 

$

6,668

 

$

6,360

 

4.8

%

$

6,881

 

$

26,694

 

$

26,784

 

-0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

25,819

 

$

24,943

 

3.5

%

$

25,015

 

$

101,246

 

$

108,023

 

-6.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense & amortization of financing costs

 

$

9,931

 

$

12,644

 

-21.5

%

$

9,933

 

$

39,529

 

$

50,841

 

-22.2

%

Depreciation & amortization

 

9,643

 

9,603

 

0.4

%

9,652

 

38,607

 

37,435

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before noncontrolling interest

 

$

6,245

 

$

2,696

 

131.6

%

$

5,430

 

$

23,110

 

$

19,747

 

17.0

%

Plus:       Real estate depreciation & amortization

 

9,637

 

9,603

 

0.4

%

9,648

 

38,595

 

37,426

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO Contribution

 

$

15,882

 

$

12,299

 

29.1

%

$

15,078

 

$

61,705

 

$

57,173

 

7.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:      Non—building revenue

 

78

 

92

 

-15.2

%

81

 

345

 

10,950

 

-96.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:       Transaction related costs, net of recoveries

 

 

 

0.0

%

 

 

2

 

-100.0

%

Interest expense & amortization of financing costs

 

9,931

 

12,644

 

-21.5

%

9,933

 

39,529

 

50,841

 

-22.2

%

Non-real estate depreciation

 

6

 

 

0.0

%

4

 

12

 

9

 

33.3

%

NOI

 

$

25,741

 

$

24,851

 

3.6

%

$

24,934

 

$

100,901

 

$

97,075

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:      Free rent (net of amortization)

 

332

 

261

 

27.2

%

(152

)

(40

)

261

 

-115.3

%

Straightline revenue adjustment

 

828

 

730

 

13.4

%

813

 

3,093

 

2,594

 

19.2

%

Rental income - FAS 141

 

333

 

440

 

-24.3

%

333

 

2,525

 

1,411

 

79.0

%

Plus:       Ground lease straight-line adjustment

 

 

 

0.0

%

 

 

 

0.0

%

Allowance for S/L tenant credit loss

 

64

 

(188

)

-134.0

%

48

 

(133

)

13

 

-1123.1

%

Cash NOI

 

$

24,312

 

$

23,232

 

4.6

%

$

23,988

 

$

95,190

 

$

92,822

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI to real estate revenue, net

 

79.43

%

79.62

%

 

 

78.37

%

79.08

%

78.38

%

 

 

Cash NOI to real estate revenue, net

 

75.02

%

74.44

%

 

 

75.40

%

74.60

%

74.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI before ground rent/real estate revenue, net

 

79.43

%

79.62

%

 

 

78.37

%

79.08

%

78.38

%

 

 

Cash NOI before ground rent/real estate revenue, net

 

74.82

%

75.04

%

 

 

75.25

%

74.71

%

74.93

%

 

 

 

25



 

 

SELECTED FINANCIAL DATA

2013 Same Store - Combined

Unaudited

(Dollars in Thousands)

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

September 30,

 

December 31,

 

December 31,

 

 

 

 

 

2013

 

2012

 

%

 

2013

 

2013

 

2012

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue, net

 

$

278,455

 

$

273,924

 

1.7

%

$

268,809

 

$

1,103,693

 

$

1,082,948

 

1.9

%

 

Escalation & reimbursement revenues

 

42,491

 

39,639

 

7.2

%

43,426

 

163,856

 

159,402

 

2.8

%

 

Other income

 

1,803

 

2,131

 

-15.4

%

1,276

 

7,378

 

22,274

 

-66.9

%

 

Total Revenues

 

$

322,749

 

$

315,694

 

2.2

%

$

313,511

 

$

1,274,927

 

$

1,264,624

 

0.8

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

65,238

 

$

65,331

 

-0.1

%

$

70,097

 

$

265,828

 

$

262,052

 

1.4

%

 

Ground rent

 

9,953

 

11,555

 

-13.9

%

10,300

 

41,719

 

38,641

 

8.0

%

 

Real estate taxes

 

53,450

 

49,771

 

7.4

%

52,976

 

207,991

 

198,356

 

4.9

%

 

Transaction related costs, net of recoveries

 

 

 

 

 

1

 

(7

)

-114.3

%

 

 

 

$

128,641

 

$

126,657

 

1.6

%

$

133,373

 

$

515,539

 

$

499,042

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

194,108

 

$

189,037

 

2.7

%

$

180,138

 

$

759,388

 

$

765,582

 

-0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense & amortization of financing costs

 

$

67,687

 

$

72,923

 

-7.2

%

$

67,513

 

$

272,071

 

$

288,131

 

-5.6

%

 

Depreciation & amortization

 

84,128

 

79,346

 

6.0

%

86,144

 

332,202

 

313,036

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before noncontrolling interest

 

$

42,293

 

$

36,768

 

15.0

%

$

26,481

 

$

155,115

 

$

164,415

 

-5.7

%

Plus:

Real estate depreciation & amortization

 

84,112

 

79,336

 

6.0

%

86,130

 

332,150

 

312,987

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO Contribution

 

$

126,405

 

$

116,104

 

8.9

%

$

112,611

 

$

487,265

 

$

477,402

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Non—building revenue

 

541

 

185

 

192.4

%

290

 

2,547

 

14,160

 

-82.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:

Transaction related costs, net of recoveries

 

 

 

 

 

1

 

(7

)

-114.3

%

 

Interest expense & amortization of financing costs

 

67,687

 

72,923

 

-7.2

%

67,513

 

272,071

 

288,131

 

-5.6

%

 

Non-real estate depreciation

 

16

 

10

 

60.0

%

14

 

52

 

49

 

6.1

%

NOI

 

$

193,567

 

$

188,852

 

2.5

%

$

179,848

 

$

756,842

 

$

751,415

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Free rent (net of amortization)

 

(424

)

335

 

-226.6

%

981

 

1,282

 

4,926

 

-74.0

%

 

Straightline revenue adjustment

 

12,875

 

13,595

 

-5.3

%

12,890

 

52,540

 

56,589

 

-7.2

%

 

Rental income - FAS 141

 

3,652

 

2,817

 

29.6

%

(3,734

)

7,679

 

11,728

 

-34.5

%

Plus:

Ground lease straight-line adjustment

 

1,292

 

2,186

 

-40.9

%

1,232

 

5,645

 

2,702

 

108.9

%

 

Allowance for S/L tenant credit loss

 

669

 

(260

)

-357.3

%

813

 

2,673

 

2,424

 

10.3

%

Cash NOI

 

$

179,425

 

$

174,031

 

3.1

%

$

171,756

 

$

703,659

 

$

683,298

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI to real estate revenue, net

 

59.84

%

59.44

%

 

 

57.19

%

59.22

%

59.96

%

 

 

 

Cash NOI to real estate revenue, net

 

55.46

%

54.78

%

 

 

54.62

%

55.06

%

54.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI before ground rent to real estate revenue, net

 

62.91

%

63.08

%

 

 

60.47

%

62.48

%

63.04

%

 

 

 

Cash NOI before ground rent to real estate revenue, net

 

58.33

%

58.50

%

 

 

57.64

%

58.11

%

57.42

%

 

 

 

26



 

 

DEBT SUMMARY SCHEDULE - Consolidated

 

Unaudited

 

(Dollars in Thousands)

 

 

 

Principal

 

 

 

2014

 

 

 

 

 

As-Of

 

 

 

 

 

Outstanding

 

 

 

Principal

 

Maturity

 

Due at

 

Right

 

Earliest

 

 

 

12/31/2013

 

Coupon (1)

 

Amortization

 

Date

 

Maturity

 

Extension

 

Prepayment

 

Fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

125 Park Avenue

 

$

146,250

 

5.75

%

$

 

Oct-14

 

$

146,250

 

 

Open

 

711 Third Avenue

 

120,000

 

4.99

%

 

Jun-15

 

120,000

 

 

Open

 

625 Madison Avenue

 

120,830

 

7.27

%

5,981

 

Nov-15

 

109,537

 

 

Open

 

500 West Putnam Avenue

 

23,529

 

5.52

%

561

 

Jan-16

 

22,376

 

 

Open

 

420 Lexington Avenue

 

182,641

 

7.15

%

2,523

 

Sep-16

 

175,740

 

 

Open

 

1-6 Landmark Square

 

82,909

 

4.00

%

1,640

 

Dec-16

 

77,936

 

 

Open

 

485 Lexington Avenue

 

450,000

 

5.61

%

 

Feb-17

 

450,000

 

 

Open

 

120 West 45th Street

 

170,000

 

6.12

%

 

Feb-17

 

170,000

 

 

Open

 

762 Madison Avenue (swapped)

 

8,211

 

3.75

%

166

 

Feb-17

 

7,679

 

 

Open

 

2 Herald Square

 

191,250

 

5.36

%

 

Apr-17

 

191,250

 

 

Open

 

885 Third Avenue

 

267,650

 

6.26

%

 

Jul-17

 

267,650

 

 

Open

 

1 Madison Avenue

 

587,336

 

5.91

%

21,595

 

May-20

 

404,531

 

 

Open

 

100 Church Street

 

230,000

 

4.68

%

1,388

 

Jul-22

 

197,784

 

 

Open

 

919 Third Avenue

 

500,000

 

5.12

%

 

Jun-23

 

441,594

 

 

Open

 

400 East 57th Street

 

70,000

 

4.13

%

1,002

 

Feb-24

 

45,789

 

 

Open

 

400 East 58th Street

 

30,000

 

4.13

%

429

 

Feb-24

 

19,624

 

 

Open

 

1515 Broadway

 

900,000

 

3.93

%

 

Mar-25

 

737,436

 

 

Feb-15

 

 

 

$

4,080,606

 

5.25

%

$

35,285

 

 

 

$

3,585,176

 

 

 

 

 

Secured fixed rate debt - other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

609 Partners, LLC

 

$

23

 

5.00

%

$

 

Jul-14

 

$

23

 

 

Open

 

Preferred Equity Investment

 

50,000

 

8.00

%

 

Sep-19

 

50,000

 

 

Open

 

 

 

$

50,023

 

8.00

%

$

 

 

 

$

50,023

 

 

 

 

 

Unsecured fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured notes

 

$

75,898

 

5.88

%

$

 

Aug-14

 

$

75,898

 

 

Open

 

Unsecured notes

 

255,206

 

6.00

%

 

Mar-16

 

255,308

 

 

Open

 

Convertible notes

 

297,837

 

3.00

%

 

Oct-17

 

345,000

 

 

Open

 

Term loan (swapped)

 

30,000

 

3.95

%

 

Mar-18

(2)

30,000

 

 

Open

 

Unsecured notes

 

249,681

 

5.00

%

 

Aug-18

 

250,000

 

 

Open

 

Unsecured notes

 

250,000

 

7.75

%

 

Mar-20

 

250,000

 

 

Open

 

Unsecured notes

 

200,000

 

4.50

%

 

Dec-22

 

200,000

 

 

Open

 

Convertible notes

 

7

 

4.00

%

 

Jun-25

(3)

7

 

 

Jun-15

 

Convertible notes

 

10,701

 

3.00

%

 

Mar-27

(4)

10,701

 

 

Mar-17

 

Junior subordinated deferrable interest debentures

 

100,000

 

5.61

%

 

Jul-35

 

100,000

 

 

 

 

 

$

1,469,330

 

5.22

%

$

 

 

 

$

1,516,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Rate Debt/Wtd Avg

 

$

5,599,959

 

5.27

%

$

35,285

 

 

 

$

5,152,113

 

 

 

 

 

Floating rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured floating rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt & preferred equity facility (LIBOR + 320 bps)

 

$

91,000

 

3.37

%

$

 

Dec-14

 

$

91,000

 

Dec-15

 

Open

 

16 Court Street (LIBOR + 350 bps)

 

79,243

 

4.00

%

 

Apr-16

 

79,243

 

 

Open

 

180 Maiden Lane (LIBOR + 211.25 bps)

 

262,706

 

2.36

%

8,691

 

Nov-16

 

238,723

 

 

Open

 

248-252 Bedford Avenue (LIBOR + 225 bps)

 

22,000

 

2.42

%

 

Mar-18

 

21,363

 

 

Open

 

220 East 42nd St. (LIBOR + 160 bps)

 

275,000

 

1.77

%

 

Oct-20

 

275,000

 

 

Open

 

 

 

$

729,949

 

2.45

%

$

8,691

 

 

 

$

705,329

 

 

 

 

 

Unsecured floating rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (LIBOR + 145 bps)

 

$

220,000

 

1.62

%

$

 

Mar-17

 

$

220,000

 

Mar-18

 

Open

 

Term loan (LIBOR + 165 bps)

 

370,000

 

1.82

%

 

Mar-18

 

370,000

 

 

Open

 

 

 

$

590,000

 

1.75

%

$

 

 

 

$

590,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Floating Rate Debt/Wtd Avg

 

$

1,319,949

 

2.13

%

$

8,691

 

 

 

$

1,295,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt/Wtd Avg - Consolidated

 

$

6,919,908

 

4.67

%

$

43,976

 

 

 

$

6,447,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt/Wtd Avg - Joint Venture

 

$

2,134,677

 

4.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Balance & Interest Rate including SLG’s share of JV Debt

 

$

9,094,962

 

4.67

%

 

 

 

 

 

 

 

 

 

 

 


(1) Coupon for floating rate debt determined using the effective LIBOR rate at the end of the quarter. Certain loans are subject to LIBOR floors.

(2) The interest rate swap terminates in June 2016.

(3) Notes can be put to the Company, at the option of the holder, on June 15, 2015.

(4) Notes can be put to the Company, at the option of the holder, on March 30, 2017.

 

27



 

DEBT SUMMARY SCHEDULE - Unconsolidated Joint Ventures

 

Unaudited

 

 

 

Principal Outstanding

 

 

 

2014

 

 

 

 

 

As-Of

 

 

 

 

 

12/31/2013

 

 

 

Principal

 

Maturity

 

Due at

 

Right

 

Earliest

 

 

 

Gross Principal

 

SLG Share

 

Coupon (1)

 

Amortization

 

Date

 

Maturity

 

Extension

 

Prepayment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1604-1610 Broadway

 

$

27,000

 

$

18,900

 

5.66

%

$

 

(2)

$

18,900

 

 

Open

 

100 Park Avenue

 

209,786

 

104,683

 

6.64

%

992

 

Sep-14

 

103,691

 

 

Open

 

7 Renaissance

 

1,276

 

638

 

10.00

%

 

Dec-15

 

638

 

 

Open

 

11 West 34th Street (swapped)

 

17,205

 

5,162

 

4.82

%

90

 

Jan-16

 

4,977

 

 

Open

 

280 Park Avenue

 

706,886

 

349,636

 

6.57

%

3,321

 

Jun-16

 

341,184

 

 

Open

 

21-25 West 34th Street

 

100,000

 

50,000

 

5.76

%

 

Dec-16

 

50,000

 

 

Open

 

1745 Broadway

 

340,000

 

109,650

 

5.68

%

 

Jan-17

 

109,650

 

 

Open

 

Jericho Plaza

 

163,750

 

33,176

 

5.65

%

 

May-17

 

33,176

 

 

Open

 

800 Third Avenue (swapped)

 

20,910

 

8,981

 

6.00

%

 

Aug-17

 

8,981

 

 

Open

 

315 West 36th Street (swapped)

 

25,000

 

8,875

 

3.16

%

 

Dec-17

 

8,670

 

 

Open

 

388/390 Greenwich Street (swapped)

 

996,082

 

503,998

 

3.20

%

 

Dec-17

 

503,998

 

 

Open

 

717 Fifth Avenue (mortgage)

 

300,000

 

32,750

 

4.45

%

 

Jul-22

 

32,750

 

 

Aug-15

 

21 East 66th Street

 

12,000

 

3,874

 

3.60

%

 

Apr-23

 

3,874

 

 

Open

 

717 Fifth Avenue (mezzanine)

 

304,000

 

33,187

 

9.00

%

 

Jul-24

 

50,969

 

 

Open

 

Total Fixed Rate Debt/Wtd Avg

 

$

3,223,895

 

$

1,263,510

 

5.05

%

$

4,403

 

 

 

$

1,271,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West Coast Office Portfolio (mortgage) (LIBOR + 314 bps)

 

$

481,309

 

210,525

 

3.31

%

32,805

 

Sep-14

 

$

177,720

 

 

Open

 

West Coast Office Portfolio (mezzanine) (LIBOR +950 bps)

 

44,981

 

19,675

 

10.00

%

 

Sep-14

 

19,675

 

 

Open

 

747 Madison (LIBOR + 275 bps)

 

33,125

 

11,041

 

2.94

%

 

Oct-14

 

11,041

 

 

Open

 

180-182 Broadway (LIBOR + 275 bps)

 

89,893

 

22,923

 

2.92

%

213

 

Dec-14

 

22,710

 

 

Open

 

Meadows (LIBOR + 575 bps)

 

67,350

 

33,675

 

7.75

%

 

Sep-15

 

33,675

 

 

Open

 

3 Columbus Circle (LIBOR + 210 bps)

 

239,233

 

116,985

 

2.35

%

4,008

 

Apr-16

 

108,044

 

 

Open

 

1552 Broadway (LIBOR + 380 bps)

 

158,690

 

79,345

 

3.90

%

 

Apr-16

 

79,345

 

 

Open

 

Mezzanine Debt (LIBOR + 90 bps)

 

30,000

 

15,000

 

1.07

%

 

Jun-16

 

15,000

 

 

Open

 

724 Fifth Avenue (LIBOR + 235 bps)

 

120,000

 

60,000

 

2.52

%

1,002

 

Jan-17

 

56,340

 

 

Open

 

10 East 53rd Street (LIBOR +250 bps)

 

125,000

 

68,750

 

2.67

%

 

Feb-17

 

68,750

 

 

Mar-14

 

33 Beekman (LIBOR + 275 bps)

 

18,362

 

8,428

 

2.92

%

 

Aug-17

 

8,251

 

 

Open

 

600 Lexington Avenue (LIBOR + 200 bps)

 

120,616

 

66,339

 

2.25

%

2,114

 

Oct-17

 

58,905

 

 

Open

 

388/390 Greenwich Street (LIBOR + 115 bps)

 

142,297

 

71,999

 

1.32

%

 

Dec-17

 

71,999

 

 

Open

 

521 Fifth Avenue (LIBOR + 220 bps)

 

170,000

 

85,850

 

2.37

%

 

Nov-19

 

85,850

 

 

Open

 

21 East 66th Street (T 12 mos + 275 bps)

 

1,959

 

632

 

2.88

%

25

 

Jun-33

 

4

 

 

Open

 

Total Floating Rate Debt/Wtd Avg

 

$

1,842,815

 

$

871,167

 

3.06

%

$

40,166

 

 

 

$

817,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Joint Venture Debt/Wtd Avg

 

$

5,066,710

 

$

2,134,677

 

4.24

%

$

44,569

 

 

 

$

2,088,767

 

 

 

 

 

 


(1) Coupon for floating rate debt determined using the effective LIBOR rate at the end of the quarter. Certain loans are subject to LIBOR floors.

(2) The loan went into default in November 2009 due to the non-payment of debt service. The joint venture is in discussions with the special servicer to resolve this default.

 

Covenants

 

Revolving Credit Facility Covenants

 

 

 

Actual

 

Required

 

Total Debt / Total Assets

 

46.4

%

Less than 60%

 

Fixed Charge Coverage

 

2.03

x

Greater than 1.5x

 

 

Unsecured Notes Covenants

 

 

 

Actual

 

Required

 

Total Debt / Total Assets

 

36.2

%

Less than 60%

 

Secured Debt / Total Assets

 

17.4

%

Less than 40%

 

Debt Service Coverage

 

3.20

x

Greater than 1.5x

 

Unencumbered Assets / Unsecured Debt

 

418.3

%

Greater than 150%

 

 

Composition of Debt

 

 

 

Fixed Rate Debt

 

 

 

 

 

Consolidated

 

$

5,599,959

 

 

 

SLG Share of JV

 

1,263,510

 

 

 

Total Fixed Rate Debt

 

$

6,863,469

 

75.8%

 

 

 

 

 

 

 

Floating Rate Debt

 

 

 

 

 

Consolidated

 

$

1,319,949

 

 

 

SLG Share of JV

 

871,167

 

 

 

 

 

2,191,116

 

 

 

Debt & Preferred Equity Investments

 

(545,647

)

 

 

Total Floating Rate Debt

 

$

1,645,469

 

18.2%

 

 

 

 

 

 

 

Total Debt

 

$

9,054,585

 

 

 

 

28



 

DEBT SUMMARY SCHEDULE - Reckson Operating Partnership

 

Unaudited

(Dollars in Thousands)

 

Consolidated

 

 

 

Principal

 

 

 

€ 2,014.00

 

 

 

 

 

As-Of

 

 

 

 

 

Outstanding

 

 

 

Principal

 

Maturity

 

Due at

 

Right

 

Earliest

 

 

 

12/31/2013

 

Coupon (1)

 

Amortization

 

Date

 

Maturity

 

Extension

 

Prepayment

 

Fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

919 Third Avenue

 

$

500,000

 

5.12

%

 

Jun-23

 

$

441,594

 

 

Open

 

 

 

$

500,000

 

5.12

%

 

 

 

$

441,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured fixed rate debt - Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

609 Partners, LLC

 

$

23

 

5.00

%

 

Jul-14

 

23

 

 

Open

 

Preferred Equity Investment

 

50,000

 

8.00

%

 

Sep-19

 

50,000

 

 

Open

 

 

 

$

50,023

 

8.00

%

 

 

 

$

50,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured fixed rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured notes

 

$

75,898

 

5.88

%

 

Aug-14

 

$

75,898

 

 

Open

 

Unsecured notes

 

255,206

 

6.00

%

 

Mar-16

 

255,308

 

 

Open

 

Term loan (swapped)

 

30,000

 

3.95

%

 

Mar-18

(2)

30,000

 

 

Open

 

Unsecured notes

 

249,681

 

5.00

%

 

Aug-18

 

250,000

 

 

Open

 

Unsecured notes

 

250,000

 

7.75

%

 

Mar-20

 

250,000

 

 

Open

 

Unsecured notes

 

200,000

 

4.50

%

 

Dec-22

 

200,000

 

 

Open

 

Convertible notes

 

7

 

4.00

%

 

Jun-25

(3)

7

 

 

Jun-15

 

 

 

$

1,060,792

 

5.83

%

 

 

 

$

1,061,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Rate Debt/Wtd Avg

 

$

1,610,815

 

5.67

%

 

 

 

$

1,552,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured floating rate debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (LIBOR + 145 bps)

 

$

220,000

 

1.62

%

 

Mar-17

 

220,000

 

Mar-18

 

Open

 

Term loan (LIBOR + 165 bps)

 

370,000

 

1.82

%

 

Mar-18

 

370,000

 

 

Open

 

Total Floating Rate Debt/Wtd Avg

 

$

590,000

 

1.75

%

 

 

 

$

590,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt/Wtd Avg - Consolidated

 

$

2,200,815

 

4.62

%

 

 

 

$

2,142,830

 

 

 

 

 

 


(1) Coupon for floating rate debt determined using the effective LIBOR rate at the end of the quarter. Certain loans are subject to LIBOR floors.

(2) The interest rate swap terminates in June 2016.

(3) Notes can be put to the Company, at the option of the holder, on June 15, 2015.

 

Covenants

 

Revolving Credit Facility Covenants

 

 

 

Actual

 

Required

 

Total Debt / Total Assets

 

45.5

%

Less than 60%

 

Fixed Charge Coverage

 

2.98

x

Greater than 1.5x

 

Secured Debt / Total Assets

 

10.1

%

Less than 40%

 

Unsecured Debt / Unencumbered Assets

 

46.6

%

Less than 60%

 

 

29



 

 

SUMMARY OF GROUND LEASE ARRANGEMENTS

 

Consolidated

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

 

 

 

 

2013 Scheduled

 

2014 Scheduled

 

2015 Scheduled

 

2016 Scheduled

 

Land Lease

 

Year of

 

Property

 

Cash Payment

 

Cash Payment

 

Cash Payment

 

Cash Payment

 

Obligations(1)

 

Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

625 Madison Avenue

 

$

4,613

 

$

4,613

 

$

4,613

 

$

4,613

 

$

 

2022

(2)

461 Fifth Avenue

 

2,100

 

2,100

 

2,100

 

2,100

 

308

 

2027

(3)

711 Third Avenue

 

5,250

 

5,250

 

5,250

 

5,354

 

564

 

2033

(4)

752 Madison Avenue/19-21 East 65th Street

 

212

 

212

 

212

 

212

 

 

2037

(5)

1185 Avenue of the Americas

 

6,909

 

6,909

 

6,909

 

6,909

 

 

2043

 

420 Lexington Avenue

 

11,174

 

10,899

 

10,899

 

10,899

 

 

2050

(6)

673 First Avenue

 

4,653

 

4,653

 

4,808

 

5,119

 

21,313

 

2087

 

1055 Washington Blvd, Stamford

 

615

 

615

 

615

 

615

 

 

2090

 

1080 Amsterdam Avenue

 

17

 

105

 

105

 

122

 

 

2111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

35,543

 

$

35,356

 

$

35,511

 

$

35,943

 

$

22,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

673 First Avenue

 

$

2,147

 

$

2,147

 

$

2,218

 

$

2,361

 

$

27,223

 

2087

 

1080 Amsterdam Avenue

 

24

 

145

 

145

 

170

 

20,448

 

2111

 

Total

 

$

2,171

 

$

2,292

 

$

2,363

 

$

2,531

 

$

47,671

 

 

 

 


(1) Per the balance sheet at December 31, 2013.

(2) Subject to renewal at the Company’s option through 2054.

(3) The Company has an option to purchase the ground lease for a fixed price on a specific date.

(4) Reflects 50% of the annual ground rent payment as the Company owns 50% of the fee interest.

(5) Subject to a fair market value rent reset in 2015. The ground lease is subject to renewal at the Company’s option through 2087.

(6) In November 2013, the Company signed an agreement extending the lease through December 31, 2050, subject to two 15-year renewal options.

 

30



 

 

DEBT AND PREFERRED EQUITY INVESTMENTS

 

 

(Dollars in Thousands)

 

 

 

Assets

 

Weighted Average

 

Weighted Average

 

Current

 

 

 

Outstanding

 

Assets During Quarter

 

Yield During Quarter

 

Yield(2)

 

 

 

 

 

 

 

 

 

 

 

9/30/2012

 

$

1,063,034

 

$

1,079,009

 

9.62

%

9.55

%

 

 

 

 

 

 

 

 

 

 

Debt originations/accretion(1)

 

$

281,997

 

 

 

 

 

 

 

Preferred Equity originations/accretion

 

$

16,028

 

 

 

 

 

 

 

Redemptions/Sales/Syndications/Amortization

 

$

(12,625

)

 

 

 

 

 

 

12/31/2012

 

$

1,348,434

 

$

1,166,626

 

9.88

%

9.93

%

 

 

 

 

 

 

 

 

 

 

Debt originations/accretion(1)

 

$

198,977

 

 

 

 

 

 

 

Preferred Equity originations/accretion

 

$

5,723

 

 

 

 

 

 

 

Redemptions/Sales/Syndications/Amortization

 

$

(121,403

)

 

 

 

 

 

 

3/31/2013

 

$

1,431,731

 

$

1,348,664

 

10.61

%

11.17

%

 

 

 

 

 

 

 

 

 

 

Debt originations/accretion(1)

 

$

86,132

 

 

 

 

 

 

 

Preferred Equity originations/accretion

 

$

6,926

 

 

 

 

 

 

 

Redemptions/Sales/Syndications/Amortization

 

$

(297,368

)

 

 

 

 

 

 

6/30/2013

 

$

1,227,421

 

$

1,323,266

 

10.96

%

10.93

%

 

 

 

 

 

 

 

 

 

 

Debt originations/accretion(1)

 

$

187,050

 

 

 

 

 

 

 

Preferred Equity originations/accretion

 

$

6,621

 

 

 

 

 

 

 

Redemptions/Sales/Syndications/Amortization

 

$

(105,541

)

 

 

 

 

 

 

9/30/2013

 

$

1,315,551

 

$

1,304,561

 

11.20

%

11.19

%

 

 

 

 

 

 

 

 

 

 

Debt originations/accretion(1)

 

$

87,412

 

 

 

 

 

 

 

Preferred Equity originations/accretion

 

$

11,031

 

 

 

 

 

 

 

Redemptions/Sales/Syndications/Amortization

 

$

(109,155

)

 

 

 

 

 

 

12/31/2013

 

$

1,304,839

 

$

1,304,034

 

11.27

%

11.31

%

 


(1) Accretion includes original issue discounts and/or compounding investment income.

(2) Calculated based on interest, fees and amortized discount recognized in the last month of the quarter.

 

31



 

 

DEBT AND PREFERRED EQUITY INVESTMENTS

 

(Dollars in Thousands)

 

 

 

 

 

 

 

 

Weighted Average

 

Weighted Average

 

Current

 

Type of Investment

 

Quarter End Balance(1)

 

Senior Financing

 

Exposure PSF

 

Yield During Quarter

 

Yield(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

New York City

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Mortgage Debt

 

$

30,000

 

$

0

 

$

3,810

 

7.50

%

7.50

%

 

 

 

 

 

 

 

 

 

 

 

 

Junior Mortgage Participation

 

225,016

 

2,535,891

 

1,189

 

10.27

%

10.26

%

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Debt

 

680,459

 

2,660,506

 

856

 

12.06

%

12.05

%

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

369,364

 

1,577,007

 

435

 

10.90

%

10.91

%

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of 12/31/13

 

$

1,304,839

 

$

6,773,405

 

$

859

 

11.27

%

11.31

%

 

Current Maturity Profile(3)

 

 


(1)         Approximately 41.3% of our investments are indexed to LIBOR, and may be prepayable at dates prior to maturity subject to certain prepayment penalties or fees.

(2)         Calculated based on interest, fees and amortized discount recognized in the last month of the quarter.

(3)         The weighted maturity of the outstanding balance is 2.19 years.  Approximately 53.5% of our portfolio of investments have extension options, some of which may be subject to certain conditions for extension.

 

32



 

 

DEBT AND PREFERRED EQUITY INVESTMENTS

 

10 Largest Investments

(Dollars in Thousands)

 

 

 

 

Book Value(1)

 

 

 

Senior

 

 

 

Current

 

Investment Type

 

12/31/13

 

Location

 

Financing

 

Last $ PSF

 

Yield(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

$

218,330

 

New York City

 

$

926,260

 

$

542

 

9.05

%

Mortgage and Mezzanine

 

131,724

 

New York City

 

330,000

 

$

284

 

9.56

%

Preferred Equity

 

115,198

 

New York City

 

525,000

 

$

277

 

14.87

%

Mortgage and Mezzanine

 

80,983

 

New York City

 

1,109,000

 

$

1,132

 

16.23

%

Mezzanine Loan

 

72,823

 

New York City

 

775,000

 

$

1,080

 

18.80

%

Mezzanine Loan

 

71,312

 

New York City

 

165,000

 

$

1,982

 

9.89

%

Mortgage and Mezzanine

 

68,319

 

New York City

 

205,000

 

$

394

 

11.24

%

Mezzanine Loan

 

59,892

 

New York City

 

180,000

 

$

352

 

9.83

%

Mezzanine Loan

 

49,110

 

New York City

 

110,000

 

$

479

 

11.99

%

Mortgage Loan

 

49,000

 

New York City

 

133,000

 

$

475

 

8.63

%

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

916,691

 

 

 

$

4,458,260

 

 

 

11.68

%

 


(1) Net of unamortized fees and discounts.

(2) Calculated based on interest, fees and amortized discount recognized in the last month of the quarter.

 

33



 

 

SELECTED PROPERTY DATA

 

Manhattan Properties

GRAPHIC

 

 

 

 

 

 

 

# of

 

Useable

 

% of Total

 

Occupancy (%)

 

Annualized

 

Annualized Cash Rent

 

Total

 

Properties

 

SubMarket

 

Ownership

 

Bldgs

 

Sq. Feet

 

Sq. Feet

 

Dec-13

 

Sep-13

 

Jun-13

 

Mar-13

 

Dec-12

 

Cash Rent ($’s)

 

100%

 

SLG

 

Tenants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100 Church Street

 

Downtown

 

Fee Interest

 

1

 

1,047,500

 

4

 

98.7

 

85.7

 

81.8

 

81.8

 

81.8

 

37,191,444

 

4

 

3

 

18

 

110 East 42nd Street

 

Grand Central

 

Fee Interest

 

1

 

215,400

 

1

 

86.5

 

86.5

 

85.8

 

84.9

 

81.6

 

8,913,540

 

1

 

1

 

23

 

120 West 45th Street

 

Midtown

 

Fee Interest

 

1

 

440,000

 

2

 

85.2

 

81.0

 

78.2

 

74.0

 

79.5

 

20,862,228

 

2

 

2

 

32

 

125 Park Avenue

 

Grand Central

 

Fee Interest

 

1

 

604,245

 

2

 

82.0

 

87.8

 

83.2

 

77.6

 

73.1

 

27,709,224

 

3

 

2

 

21

 

180 Maiden Lane (1)

 

Financial East

 

Fee Interest

 

1

 

1,090,000

 

4

 

97.6

 

97.6

 

97.6

 

97.7

 

97.7

 

55,331,208

 

 

 

2

 

5

 

220 East 42nd Street

 

Grand Central

 

Fee Interest

 

1

 

1,135,000

 

4

 

91.5

 

91.1

 

93.7

 

94.9

 

94.9

 

46,506,336

 

5

 

4

 

30

 

420 Lexington Ave (Graybar)

 

Grand Central North

 

Leasehold Interest

 

1

 

1,188,000

 

4

 

85.8

 

84.1

 

90.2

 

92.1

 

92.5

 

60,686,388

 

7

 

5

 

218

 

461 Fifth Avenue (2)

 

Midtown

 

Leasehold Interest

 

1

 

200,000

 

1

 

99.4

 

99.4

 

99.4

 

99.4

 

99.4

 

16,529,484

 

2

 

1

 

14

 

485 Lexington Avenue

 

Grand Central North

 

Fee Interest

 

1

 

921,000

 

3

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

55,169,268

 

6

 

5

 

24

 

555 West 57th Street

 

Midtown West

 

Fee Interest

 

1

 

941,000

 

3

 

99.9

 

99.1

 

99.8

 

99.2

 

99.2

 

33,901,044

 

4

 

3

 

10

 

609 Fifth Avenue

 

Rockefeller Center

 

Fee Interest

 

1

 

160,000

 

1

 

77.8

 

85.0

 

85.0

 

85.8

 

85.2

 

14,042,124

 

2

 

1

 

11

 

625 Madison Avenue

 

Plaza District

 

Leasehold Interest

 

1

 

563,000

 

2

 

92.1

 

92.3

 

92.1

 

93.1

 

94.5

 

46,209,072

 

5

 

4

 

21

 

673 First Avenue

 

Grand Central South

 

Leasehold Interest

 

1

 

422,000

 

1

 

99.2

 

100.0

 

100.0

 

100.0

 

100.0

 

21,004,836

 

2

 

2

 

7

 

711 Third Avenue (3)

 

Grand Central North

 

Leasehold Interest

 

1

 

524,000

 

2

 

88.4

 

88.4

 

88.4

 

88.4

 

86.3

 

27,511,560

 

3

 

2

 

17

 

750 Third Avenue

 

Grand Central North

 

Fee Interest

 

1

 

780,000

 

3

 

95.8

 

96.8

 

96.8

 

96.1

 

97.5

 

41,437,956

 

5

 

4

 

28

 

810 Seventh Avenue

 

Times Square

 

Fee Interest

 

1

 

692,000

 

2

 

92.0

 

91.5

 

91.0

 

87.6

 

87.6

 

40,023,768

 

4

 

4

 

41

 

919 Third Avenue (4)

 

Grand Central North

 

Fee Interest

 

1

 

1,454,000

 

5

 

90.3

 

96.9

 

96.9

 

96.9

 

96.9

 

81,700,824

 

 

 

4

 

12

 

1185 Avenue of the Americas

 

Rockefeller Center

 

Leasehold Interest

 

1

 

1,062,000

 

4

 

95.2

 

95.2

 

95.2

 

97.6

 

97.6

 

81,445,404

 

9

 

7

 

18

 

1350 Avenue of the Americas

 

Rockefeller Center

 

Fee Interest

 

1

 

562,000

 

2

 

99.5

 

98.1

 

95.3

 

97.0

 

97.0

 

37,538,424

 

4

 

3

 

35

 

1515 Broadway

 

Times Square

 

Fee Interest

 

1

 

1,750,000

 

6

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

111,850,668

 

12

 

10

 

12

 

1 Madison Avenue

 

Park Avenue South

 

Fee Interest

 

1

 

1,176,900

 

4

 

100.0

 

100.0

 

100.0

 

100.0

 

98.7

 

67,572,816

 

7

 

6

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted Average

 

21

 

16,928,045

 

59

%

94.5

%

94.2

%

94.3

%

94.2

%

94.1

%

$

933,137,616

 

88

%

76

%

599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Non Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

304 Park Avenue South

 

Midtown South

 

Fee Interest

 

1

 

215,000

 

1

 

98.8

 

95.3

 

93.6

 

93.6

 

95.8

 

11,923,104

 

1

 

1

 

15

 

641 Sixth Avenue

 

Midtown South

 

Fee Interest

 

1

 

163,000

 

1

 

92.1

 

92.1

 

92.1

 

92.1

 

92.1

 

8,380,860

 

1

 

1

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted Average

 

2

 

378,000

 

1

%

95.9

%

93.9

%

92.9

%

92.9

%

94.2

%

$

20,303,964

 

2

%

2

%

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average Manhattan Consolidated Properties

 

23

 

17,306,045

 

61

%

94.5

%

94.2

%

94.2

%

94.2

%

94.1

%

$

953,441,580

 

90

%

78

%

621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNCONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100 Park Avenue - 50%

 

Grand Central South

 

Fee Interest

 

1

 

834,000

 

3

 

95.1

 

94.6

 

94.6

 

94.6

 

94.6

 

54,288,768

 

 

 

3

 

37

 

388 & 390 Greenwich Street - 50.6%

 

Downtown

 

Fee Interest

 

2

 

2,635,000

 

9

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

109,811,160

 

 

 

5

 

1

 

600 Lexington Avenue - 55%

 

East Side

 

Fee Interest

 

1

 

303,515

 

1

 

75.5

 

69.2

 

66.7

 

66.7

 

73.7

 

15,552,084

 

 

 

1

 

26

 

800 Third Avenue - 42.95%

 

Grand Central North

 

Fee Interest

 

1

 

526,000

 

2

 

95.4

 

95.4

 

87.9

 

87.9

 

87.1

 

29,377,200

 

 

 

1

 

41

 

1745 Broadway - 32.3%

 

Midtown

 

Fee Interest

 

1

 

674,000

 

2

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

37,785,768

 

 

 

1

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted Average

 

6

 

4,972,515

 

17

%

97.2

%

96.7

%

95.8

%

95.8

%

96.1

%

$

246,814,980

 

 

 

11

%

106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Non Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10 East 53rd Street - 55%

 

Plaza District

 

Fee Interest

 

1

 

354,300

 

1

 

90.0

 

90.0

 

90.0

 

90.0

 

90.0

 

19,639,776

 

 

 

1

 

17

 

315 West 36th Street - 35.5%

 

Times Square South

 

Fee Interest

 

1

 

147,619

 

1

 

99.2

 

99.2

 

99.2

 

99.2

 

99.2

 

4,029,156

 

 

 

0

 

6

 

521 Fifth Avenue - 50.5%

 

Grand Central

 

Fee Interest

 

1

 

460,000

 

2

 

94.4

 

94.5

 

90.6

 

92.8

 

85.2

 

24,977,052

 

 

 

1

 

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted Average

 

3

 

961,919

 

3

%

93.5

%

93.5

%

91.7

%

92.7

%

89.1

%

$

48,645,984

 

 

 

2

%

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average Unconsolidated Properties

 

9

 

5,934,434

 

21

%

96.6

%

96.2

%

95.1

%

95.3

%

95.0

%

$

295,460,964

 

 

 

13

%

170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manhattan Grand Total / Weighted Average

 

32

 

23,240,479

 

81

%

95.0

%

94.7

%

94.5

%

94.4

%

94.3

%

$

1,248,902,544

 

 

 

 

 

791

 

Manhattan Grand Total - SLG share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,026,613,619

 

 

 

91

%

 

 

Manhattan Same Store Occupancy % - Combined

 

 

 

21,900,560

 

94

%

95.1

%(5)

94.8

%

94.6

%

94.5

%

94.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Grand Total

 

 

 

 

 

62

 

28,549,979

 

100

%

92.5

%

92.1

%

91.9

%

91.8

%

91.8

%

$

1,379,837,788

 

 

 

 

 

1,218

 

Portfolio Grand Total - SLG Share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,130,433,053

 

 

 

100

%

 

 

 


(1) SL Green holds a 49.9% interest in this consolidated joint venture asset.

(2) SL Green holds an option to acquire the fee interest.

(3) SL Green owns 50% of the fee interest.

(4) SL Green holds a 51% interest in this consolidated joint venture asset.

(5) Manhattan same-store occupancy, inclusive of 394,321 square feet of leases signed but not yet commenced, increased to 96.6% as of December 31, 2013.

 

34



 

 

SELECTED PROPERTY DATA

 

Suburban Properties

 

 

 

 

 

 

 

# of

 

Useable

 

% of Total

 

Occupancy (%)

 

Annualized

 

Annualized Cash Rent

 

Total

 

Properties

 

SubMarket

 

Ownership

 

Bldgs

 

Sq. Feet

 

Sq. Feet

 

Dec-13

 

Sep-13

 

Jun-13

 

Mar-13

 

Dec-12

 

Cash Rent ($’s)

 

100%

 

SLG

 

Tenants

 

CONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store” Westchester, NY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1100 King Street - 1 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

1

 

90,000

 

0

 

74.8

 

74.8

 

74.9

 

74.9

 

74.9

 

1,748,604

 

0

 

0

 

2

 

1100 King Street - 2 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

1

 

90,000

 

0

 

47.0

 

47.0

 

47.0

 

47.0

 

47.0

 

1,355,964

 

0

 

0

 

3

 

1100 King Street - 3 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

1

 

90,000

 

0

 

57.2

 

57.2

 

55.7

 

63.3

 

63.3

 

1,705,944

 

0

 

0

 

3

 

1100 King Street - 4 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

1

 

90,000

 

0

 

83.9

 

69.6

 

68.1

 

59.4

 

59.4

 

1,817,040

 

0

 

0

 

9

 

1100 King Street - 5 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

1

 

90,000

 

0

 

82.6

 

80.5

 

80.5

 

80.5

 

79.8

 

1,801,620

 

0

 

0

 

9

 

1100 King Street - 6 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

1

 

90,000

 

0

 

88.0

 

88.0

 

88.0

 

88.0

 

71.2

 

2,662,596

 

0

 

0

 

4

 

520 White Plains Road

 

Tarrytown, New York

 

Fee Interest

 

1

 

180,000

 

1

 

57.8

 

57.8

 

75.4

 

75.4

 

72.5

 

2,854,680

 

0

 

0

 

8

 

115-117 Stevens Avenue

 

Valhalla, New York

 

Fee Interest

 

1

 

178,000

 

1

 

73.4

 

73.4

 

70.9

 

70.9

 

86.0

 

2,682,720

 

0

 

0

 

10

 

100 Summit Lake Drive

 

Valhalla, New York

 

Fee Interest

 

1

 

250,000

 

1

 

70.7

 

70.7

 

70.7

 

70.7

 

70.7

 

4,246,380

 

0

 

0

 

10

 

200 Summit Lake Drive

 

Valhalla, New York

 

Fee Interest

 

1

 

245,000

 

1

 

80.2

 

80.2

 

69.3

 

66.6

 

87.5

 

4,535,136

 

1

 

0

 

8

 

500 Summit Lake Drive

 

Valhalla, New York

 

Fee Interest

 

1

 

228,000

 

1

 

90.3

 

90.3

 

90.3

 

89.5

 

76.9

 

4,798,848

 

1

 

1

 

6

 

140 Grand Street

 

White Plains, New York

 

Fee Interest

 

1

 

130,100

 

0

 

93.6

 

89.5

 

89.5

 

89.5

 

95.3

 

3,988,068

 

0

 

0

 

13

 

360 Hamilton Avenue

 

White Plains, New York

 

Fee Interest

 

1

 

384,000

 

1

 

89.3

 

89.0

 

89.0

 

88.7

 

94.3

 

12,155,160

 

1

 

1

 

17

 

Westchester, NY Subtotal/Weighted Average

 

13

 

2,135,100

 

8

%

78.1

%

77.2

%

77.1

%

76.6

%

79.2

%

$

46,352,760

 

5

%

5

%

102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store” Connecticut

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

1

 

312,000

 

1

 

93.8

 

92.8

 

95.4

 

96.0

 

97.8

 

8,790,324

 

1

 

1

 

56

 

2 Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

1

 

46,000

 

0

 

54.9

 

57.3

 

64.1

 

69.0

 

69.0

 

555,156

 

0

 

0

 

7

 

3 Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

1

 

130,000

 

0

 

55.1

 

50.1

 

64.9

 

60.4

 

54.6

 

2,027,880

 

0

 

0

 

16

 

4 Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

1

 

105,000

 

0

 

84.9

 

84.9

 

84.9

 

77.7

 

76.6

 

2,659,540

 

0

 

0

 

11

 

5 Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

1

 

61,000

 

0

 

99.0

 

99.0

 

99.3

 

99.5

 

99.5

 

954,252

 

0

 

0

 

9

 

6 Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

1

 

172,000

 

1

 

83.4

 

83.4

 

83.4

 

83.4

 

83.4

 

3,705,468

 

0

 

0

 

5

 

7 Landmark Square

 

Stamford, Connecticut

 

Fee Interest

 

1

 

36,800

 

0

 

76.9

 

76.9

 

76.9

 

76.9

 

10.8

 

325,320

 

0

 

0

 

1

 

680 Washington Boulevard (1)

 

Stamford, Connecticut

 

Fee Interest

 

1

 

133,000

 

0

 

77.7

 

76.5

 

76.5

 

76.5

 

74.6

 

4,353,144

 

 

 

0

 

9

 

750 Washington Boulevard (1)

 

Stamford, Connecticut

 

Fee Interest

 

1

 

192,000

 

1

 

93.3

 

93.6

 

93.6

 

93.6

 

93.6

 

6,380,580

 

 

 

0

 

8

 

1055 Washington Boulevard

 

Stamford, Connecticut

 

Leasehold Interest

 

1

 

182,000

 

1

 

87.7

 

86.7

 

86.0

 

86.0

 

86.0

 

6,111,048

 

1

 

1

 

21

 

1010 Washington Boulevard

 

Stamford, Connecticut

 

Fee Interest

 

1

 

143,400

 

1

 

65.3

 

65.3

 

63.5

 

60.9

 

60.9

 

3,028,464

 

0

 

0

 

19

 

500 West Putnam Avenue

 

Greenwich, Connecticut

 

Fee Interest

 

1

 

121,500

 

0

 

57.0

 

57.0

 

55.1

 

55.1

 

55.1

 

3,121,356

 

0

 

0

 

10

 

Connecticut Subtotal/Weighted Average

 

12

 

1,634,700

 

5

%

80.5

%

79.8

%

81.3

%

80.6

%

80.7

%

$

42,012,532

 

3

%

3

%

172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Non Same Store” Brooklyn, NY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16 Court Street

 

Brooklyn, New York

 

Fee Interest

 

1

 

317,600

 

1

 

87.2

 

88.4

 

84.9

 

84.5

 

84.0

 

10,495,296

 

1

 

1

 

66

 

Brooklyn, NY Subtotal/Weighted Average

 

1

 

317,600

 

1

%

87.2

%

88.4

%

84.9

%

84.5

%

84.0

%

$

10,495,296

 

1

%

1

%

66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average Consolidated Properties

 

26

 

4,087,400

 

14

%

79.8

%

79.1

%

79.4

%

78.8

%

79.6

%

$

98,860,588

 

10

%

9

%

340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNCONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Meadows - 50%

 

Rutherford, New Jersey

 

Fee Interest

 

2

 

582,100

 

2

 

84.2

 

80.5

 

78.4

 

79.4

 

79.7

 

12,508,560

 

 

 

1

 

55

 

Jericho Plaza — 20.26%

 

Jericho, New York

 

Fee Interest

 

2

 

640,000

 

2

 

89.9

 

89.6

 

89.6

 

89.6

 

89.6

 

19,566,096

 

 

 

0

 

32

 

Total / Weighted Average Unconsolidated Properties

 

4

 

1,222,100

 

4

%

87.2

%

85.3

%

84.3

%

84.7

%

84.7

%

$

32,074,656

 

 

 

0

%

87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suburban Grand Total / Weighted Average

 

30

 

5,309,500

 

19

%

81.5

%

80.5

%

80.5

%

80.2

%

81.3

%

$

130,935,244

 

 

 

 

 

427

 

Suburban Grand Total - SLG share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

103,819,434

 

 

 

9

%

 

 

Suburban Same Store Occupancy % - Combined

 

 

 

4,991,900

 

94

%

81.1

%(2)

80.0

%

80.2

%

79.9

%

80.6

%

 

 

 

 

 

 

 

 

 


(1) SL Green holds a 51% interest in this consolidated joint venture asset.

(2) Suburban same-store occupancy, inclusive of 46,736 square feet of leases signed but not yet commenced, increased to 82.1% as of December 31, 2013.

 

35



 

 

 

 

 

SELECTED PROPERTY DATA

 

Retail, Development / Redevelopment, Land & West Coast Properties

 

 

 

 

 

 

 

 

 

 

 

# of

 

Useable

 

% of Total

 

Occupancy (%)

 

Annualized

 

Annualized

 

Gross Total RE

 

Total

 

Properties

 

SubMarket

 

Ownership

 

Bldgs

 

Sq. Feet

 

Sq. Feet

 

Dec-13

 

Sep-13

 

Jun-13

 

Mar-13

 

Dec-12

 

Cash Rent ($’s)

 

Cash Rent (SLG%)

 

Book Value

 

Tenants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store” Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1604 Broadway - 70%

 

Times Square

 

Leasehold Interest

 

1

 

29,876

 

3

 

23.7

 

23.7

 

23.7

 

23.7

 

23.7

 

2,001,902

 

3

 

7,490,827

 

2

 

11 West 34th Street - 30%

 

Herald Square/Penn Station

 

Fee Interest

 

1

 

17,150

 

2

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

2,123,688

 

1

 

15,482,405

 

1

 

21-25 West 34th Street - 50%

 

Herald Square/Penn Station

 

Fee Interest

 

1

 

30,100

 

3

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

8,233,968

 

8

 

23,349,965

 

1

 

717 Fifth Avenue - 10.92%

 

Midtown/Plaza District

 

Fee Interest

 

1

 

119,550

 

14

 

89.4

 

89.4

 

89.4

 

89.4

 

89.4

 

34,591,080

 

8

 

279,966,857

 

7

 

Williamsburg Terrace

 

Brooklyn, New York

 

Fee Interest

 

1

 

52,000

 

6

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

1,558,032

 

3

 

16,357,696

 

3

 

Subtotal/Weighted Average

 

5

 

248,676

 

28

%

85.8

%

85.8

%

85.8

%

85.8

%

85.8

%

$

48,508,670

 

23

%

$

342,647,749

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Non Same Store” Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19-21 East 65th Street - 80% (2)

 

Plaza District

 

Leasehold Interest

 

2

 

23,610

 

3

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

1,412,184

 

2

 

7,539,680

 

7

 

21 East 66th Street - 32.28%

 

Plaza District

 

Fee Interest

 

1

 

16,736

 

2

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

3,409,057

 

2

 

83,668,773

 

1

 

131-137 Spring Street

 

Soho

 

Fee Interest

 

2

 

68,342

 

8

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

4,691,037

 

10

 

133,154,271

 

12

 

180-182 Broadway - 25.5%

 

Cast Iron / Soho

 

Fee Interest

 

2

 

156,086

 

18

 

100.0

 

100.0

 

 

 

 

9,757,368

 

5

 

131,562,699

 

3

 

315 West 33rd Street - The Olivia

 

Penn Station

 

Fee Interest

 

1

 

270,132

 

31

 

100.0

 

N/A

 

N/A

 

N/A

 

N/A

 

14,779,822

 

30

 

211,933,183

 

10

 

724 Fifth Avenue - 50%

 

Plaza District

 

Fee Interest

 

1

 

65,010

 

7

 

76.6

 

84.6

 

84.8

 

84.7

 

84.7

 

20,589,864

 

21

 

225,044,358

 

7

 

752 Madison Avenue - 80% (2)

 

Plaza District

 

Leasehold Interest

 

1

 

21,124

 

2

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

3,561,060

 

6

 

7,140,833

 

1

 

762 Madison Avenue - 80% (2)

 

Plaza District

 

Fee Interest

 

1

 

6,109

 

1

 

82.6

 

82.6

 

82.6

 

100.0

 

100.0

 

624,324

 

1

 

16,703,508

 

4

 

Subtotal/Weighted Average

 

11

 

627,149

 

72

%

97.4

%

96.9

%

94.6

%

95.1

%

95.1

%

$

58,824,716

 

77

%

$

816,747,305

 

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average Retail Properties

 

 

 

16

 

875,825

 

100

%

94.1

%

92.5

%

90.0

%

90.3

%

90.3

%

$

107,333,386

 

100

%

$

1,159,395,055

 

59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development / Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

125 Chubb Way

 

Lyndhurst, New Jersey

 

Fee Interest

 

1

 

278,000

 

9

 

59.4

 

58.3

 

57.1

 

57.1

 

57.1

 

3,635,136

 

4

 

55,320,282

 

4

 

150 Grand Street

 

White Plains, New York

 

Fee Interest

 

1

 

85,000

 

3

 

31.5

 

31.5

 

31.5

 

31.3

 

33.0

 

691,008

 

1

 

17,302,024

 

16

 

7 Renaissance Square - 50%

 

White Plains, New York

 

Fee Interest

 

1

 

65,641

 

2

 

46.6

 

46.6

 

40.3

 

40.3

 

29.2

 

997,380

 

1

 

6,001,233

 

4

 

33 Beekman Street - 45.9%

 

Downtown

 

Fee Interest

 

1

 

 

 

 

 

 

 

 

 

 

46,040,671

 

 

3 Columbus Circle - 48.9%

 

Columbus Circle

 

Fee Interest

 

1

 

530,981

 

16

 

70.7

 

70.3

 

65.5

 

61.8

 

51.6

 

31,239,593

 

17

 

574,393,807

 

17

 

280 Park Avenue - 49.5%

 

Park Avenue

 

Fee Interest

 

1

 

1,219,158

 

38

 

59.4

 

59.4

 

54.9

 

54.9

 

55.0

 

64,933,920

 

36

 

1,129,170,058

 

28

 

51 East 42nd Street

 

Grand Central

 

Fee Interest

 

1

 

142,000

 

4

 

86.5

 

88.3

 

91.4

 

86.9

 

85.9

 

6,752,424

 

8

 

79,824,838

 

84

 

317 Madison Avenue

 

Grand Central

 

Fee Interest

 

1

 

450,000

 

14

 

78.6

 

81.9

 

81.6

 

81.7

 

81.3

 

20,781,792

 

23

 

135,584,899

 

72

 

331 Madison Avenue

 

Grand Central

 

Fee Interest

 

1

 

114,900

 

4

 

83.6

 

83.6

 

84.2

 

84.2

 

84.2

 

4,271,340

 

5

 

80,906,620

 

15

 

Fifth Avenue Retail Assemblage

 

Plaza District

 

Fee Interest

 

3

 

66,962

 

2

 

74.6

 

N/A

 

N/A

 

N/A

 

N/A

 

2,522,196

 

3

 

146,000,000

 

6

 

635 Sixth Avenue

 

Midtown South

 

Fee Interest

 

1

 

104,000

 

3

 

 

 

 

 

 

 

 

79,571,792

 

 

650 Fifth Avenue - 50%

 

Plaza District

 

Leasehold Interest

 

1

 

32,324

 

1

 

63.6

 

N/A

 

N/A

 

N/A

 

N/A

 

3,241,092

 

2

 

190,554,357

 

3

 

747 Madison Avenue - 33.33%

 

Plaza District

 

Fee Interest

 

1

 

10,000

 

0

 

59.1

 

59.1

 

59.1

 

 

 

3,300,000

 

1

 

85,008,458

 

1

 

985-987 Third Avenue

 

Upper East Side

 

Fee Interest

 

2

 

13,678

 

0

 

 

 

 

 

 

 

 

21,882,904

 

 

1080 Amsterdam - 87.5% (2)

 

Upper West Side

 

Leasehold Interest

 

1

 

82,250

 

3

 

2.2

 

2.2

 

2.2

 

2.2

 

2.2

 

146,475

 

0

 

35,043,624

 

1

 

1552-1560 Broadway - 50%

 

Times Square

 

Fee Interest

 

2

 

35,897

 

1

 

 

 

 

23.3

 

23.3

 

 

 

229,277,314

 

 

Total / Weighted Average Development / Redevelopment Properties

 

20

 

3,230,791

 

100

 

61.1

%

61.1

%

58.5

%

57.7

%

55.7

%

$

142,512,356

 

100

%

$

2,911,882,881

 

251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store” Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Herald Square (1)

 

Herald Square/Penn Station

 

Fee Interest

 

1

 

354,400

 

37

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

11,531,250

 

42

 

229,336,692

 

 

 

885 Third Avenue (1)

 

Midtown/Plaza District

 

Fee Interest

 

1

 

607,000

 

63

 

100.0

 

100.0

 

100.0

 

100.0

 

100.0

 

16,246,260

 

58

 

329,943,115

 

 

 

Total / Weighted Average Land

 

 

 

2

 

961,400

 

100

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

$

27,777,510

 

100

%

$

559,279,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West Coast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West Coast Office Portfolio - 43.74%

 

 

 

Fee Interest

 

52

 

3,654,315

 

100

 

77.9

 

75.8

 

76.5

 

77.0

 

76.9

 

73,782,458

 

100

 

571,313,430

 

 

 

Total / Weighted Average California Properties

 

 

 

52

 

3,654,315

 

100

%

77.9

%

75.8

%

76.5

%

77.0

%

76.9

%

$

73,782,458

 

100

%

$

571,313,430

 

 

 

 

Residential Properties

 

 

 

 

 

 

 

# of

 

Useable

 

 

 

Occupancy (%)

 

Average Monthly

 

Annualized

 

Gross Total RE

 

 

 

Properties

 

SubMarket

 

Ownership

 

Bldgs

 

Sq. Feet

 

Total Units

 

Dec-13

 

Sep-13

 

Jun-13

 

Mar-13

 

Dec-12

 

Rent Per Unit ($’s)

 

Cash Rent ($’s)

 

Book Value

 

 

 

400 East 57th Street - 80% (2)

 

Upper East Side

 

Fee Interest

 

1

 

290,482

 

259

 

95.0

 

95.0

 

98.1

 

94.6

 

91.9

 

2,980

 

10,348,769

 

115,701,878

 

 

 

400 East 58th Street - 80% (2)

 

Upper East Side

 

Fee Interest

 

1

 

140,000

 

125

 

94.4

 

96.8

 

100.0

 

96.8

 

97.6

 

2,939

 

4,485,041

 

50,853,285

 

 

 

248-252 Bedford Avenue - 90% (2)

 

Brooklyn, New York

 

Fee Interest

 

1

 

66,611

 

84

 

85.7

 

67.9

 

20.2

 

 

N/A

 

4,559

 

3,939,251

 

56,621,832

 

 

 

315 West 33rd Street - The Olivia

 

Penn Station

 

Fee Interest

 

1

 

222,855

 

333

 

92.5

 

N/A

 

N/A

 

N/A

 

N/A

 

3,772

 

13,234,357

 

174,841,817

 

 

 

Total / Weighted Average Residential Properties

 

 

 

4

 

719,948

 

801

 

92.9

%

90.6

%

84.6

%

78.2

%

93.8

%

$

3,469

 

$

32,007,419

 

$

398,018,812

 

 

 

 


(1) Subject to long-term, third party net operating leases.

(2) Consolidated joint venture assets.

 

36



 

SELECTED PROPERTY DATA

 

Manhattan Properties - Reckson Portfolio

 

 

 

 

 

 

 

Useable

 

% of Total

 

Occupancy (%)

 

Annualized

 

Annualized Cash Rent

 

Total

 

Properties

 

SubMarket

 

Ownership

 

Sq. Feet

 

Sq. Feet

 

Dec-13

 

Sep-13

 

Jun-13

 

Mar-13

 

Dec-12

 

Cash Rent ($’s)

 

100%

 

SLG

 

Tenants

 

CONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

110 East 42nd Street

 

Grand Central

 

Fee Interest

 

215,400

 

2

 

86.5

 

86.5

 

85.8

 

84.9

 

81.6

 

8,913,540

 

2

 

2

 

23

 

461 Fifth Avenue

 

Midtown

 

Leasehold Interest

 

200,000

 

2

 

99.4

 

99.4

 

99.4

 

99.4

 

99.4

 

16,529,484

 

4

 

4

 

14

 

555 West 57th Street

 

Midtown West

 

Fee Interest

 

941,000

 

10

 

99.9

 

99.1

 

99.8

 

99.2

 

99.2

 

33,901,044

 

9

 

8

 

10

 

609 Fifth Avenue

 

Rockefeller Center

 

Fee Interest

 

160,000

 

2

 

77.8

 

85.0

 

85.0

 

85.8

 

85.2

 

14,042,124

 

4

 

3

 

11

 

673 First Avenue

 

Grand Central South

 

Leasehold Interest

 

422,000

 

4

 

99.2

 

100.0

 

100.0

 

100.0

 

100.0

 

21,004,836

 

6

 

5

 

7

 

750 Third Avenue

 

Grand Central North

 

Fee Interest

 

780,000

 

8

 

95.8

 

96.8

 

96.8

 

96.1

 

97.5

 

41,437,956

 

11

 

10

 

28

 

810 Seventh Avenue

 

Times Square

 

Fee Interest

 

692,000

 

7

 

92.0

 

91.5

 

91.0

 

87.6

 

87.6

 

40,023,768

 

11

 

10

 

41

 

919 Third Avenue

 

Grand Central North

 

Fee Interest (1)

 

1,454,000

 

15

 

90.3

 

96.9

 

96.9

 

96.9

 

96.9

 

81,700,824

 

 

 

10

 

12

 

1185 Avenue of the Americas

 

Rockefeller Center

 

Leasehold Interest

 

1,062,000

 

11

 

95.2

 

95.2

 

95.2

 

97.6

 

97.6

 

81,445,404

 

22

 

19

 

18

 

1350 Avenue of the Americas

 

Rockefeller Center

 

Fee Interest

 

562,000

 

6

 

99.5

 

98.1

 

95.3

 

97.0

 

97.0

 

37,538,424

 

10

 

9

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted Average

 

 

 

6,488,400

 

67

%

94.6

%

96.1

%

96.1

%

96.1

%

96.2

%

$

376,537,404

 

80

%

81

%

199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Non Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

304 Park Avenue South

 

Midtown South

 

Fee Interest

 

215,000

 

2

 

98.8

 

95.3

 

93.6

 

93.6

 

95.8

 

11,923,104

 

3

 

3

 

15

 

641 Sixth Avenue

 

Midtown South

 

Fee Interest

 

163,000

 

2

 

92.1

 

92.1

 

92.1

 

92.1

 

92.1

 

8,380,860

 

2

 

2

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted Average

 

 

 

378,000

 

4

%

95.9

%

93.9

%

92.9

%

92.9

%

94.2

%

$

20,303,964

 

5

%

5

%

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grand Total / Weighted Average

 

 

 

6,866,400

 

71

%

94.6

%

96.0

%

96.0

%

95.9

%

96.0

%

$

396,841,368

 

85

%

 

 

221

 

Grand Total - SLG share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

356,807,964

 

 

 

85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suburban Properties - Reckson Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Same Store”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1100 King Street - 1 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

90,000

 

1

 

74.8

 

74.8

 

74.9

 

74.9

 

74.9

 

1,748,604

 

0

 

0

 

2

 

1100 King Street - 2 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

90,000

 

1

 

47.0

 

47.0

 

47.0

 

47.0

 

47.0

 

1,355,964

 

0

 

0

 

3

 

1100 King Street - 3 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

90,000

 

1

 

57.2

 

57.2

 

55.7

 

63.3

 

63.3

 

1,705,944

 

0

 

0

 

3

 

1100 King Street - 4 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

90,000

 

1

 

83.9

 

69.6

 

68.1

 

59.4

 

59.4

 

1,817,040

 

0

 

0

 

9

 

1100 King Street - 5 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

90,000

 

1

 

82.6

 

80.5

 

80.5

 

80.5

 

79.8

 

1,801,620

 

0

 

0

 

9

 

1100 King Street - 6 Int’l Drive

 

Rye Brook, New York

 

Fee Interest

 

90,000

 

1

 

88.0

 

88.0

 

88.0

 

88.0

 

71.2

 

2,662,596

 

1

 

1

 

4

 

520 White Plains Road

 

Tarrytown, New York

 

Fee Interest

 

180,000

 

2

 

57.8

 

57.8

 

75.4

 

75.4

 

72.5

 

2,854,680

 

1

 

1

 

8

 

115-117 Stevens Avenue

 

Valhalla, New York

 

Fee Interest

 

178,000

 

2

 

73.4

 

73.4

 

70.9

 

70.9

 

86.0

 

2,682,720

 

1

 

1

 

10

 

100 Summit Lake Drive

 

Valhalla, New York

 

Fee Interest

 

250,000

 

3

 

70.7

 

70.7

 

70.7

 

70.7

 

70.7

 

4,246,380

 

1

 

1

 

10

 

200 Summit Lake Drive

 

Valhalla, New York

 

Fee Interest

 

245,000

 

3

 

80.2

 

80.2

 

69.3

 

66.6

 

87.5

 

4,535,136

 

1

 

1

 

8

 

500 Summit Lake Drive

 

Valhalla, New York

 

Fee Interest

 

228,000

 

2

 

90.3

 

90.3

 

90.3

 

89.5

 

76.9

 

4,798,848

 

1

 

1

 

6

 

140 Grand Street

 

White Plains, New York

 

Fee Interest

 

130,100

 

1

 

93.6

 

89.5

 

89.5

 

89.5

 

95.3

 

3,988,068

 

1

 

1

 

13

 

360 Hamilton Avenue

 

White Plains, New York

 

Fee Interest

 

384,000

 

4

 

89.3

 

89.0

 

89.0

 

88.7

 

94.3

 

12,155,160

 

3

 

3

 

17

 

680 Washington Boulevard

 

Stamford, Connecticut

 

Fee Interest (1)

 

133,000

 

1

 

77.7

 

76.5

 

76.5

 

76.5

 

74.6

 

4,353,144

 

 

 

1

 

9

 

750 Washington Boulevard

 

Stamford, Connecticut

 

Fee Interest (1)

 

192,000

 

2

 

93.3

 

93.6

 

93.6

 

93.6

 

93.6

 

6,380,580

 

 

 

1

 

8

 

1055 Washington Boulevard

 

Stamford, Connecticut

 

Leasehold Interest

 

182,000

 

2

 

87.7

 

86.7

 

86.0

 

86.0

 

86.0

 

6,111,048

 

2

 

1

 

21

 

1010 Washington Boulevard

 

Stamford, Connecticut

 

Fee Interest

 

143,400

 

1

 

65.3

 

65.3

 

63.5

 

60.9

 

60.9

 

3,028,464

 

1

 

1

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average Consolidated Properties

 

 

 

2,785,500

 

29

%

79.1

%

78.3

%

78.1

%

77.5

%

79.5

%

$

66,225,996

 

15

%

15

%

159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grand Total / Weighted Average

 

 

 

2,785,500

 

29

%

79.1

%

78.3

%

78.1

%

77.5

%

79.5

%

$

66,225,996

 

 

 

 

 

159

 

Grand Total - SLG share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

60,966,471

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reckson Portfolio Grand Total

 

 

 

9,651,900

 

100

%

90.2

%

90.9

%

91.0

%

90.8

%

91.4

%

$

463,067,364

 

 

 

 

 

380

 

Portfolio Grand Total - SLG Share of Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

417,774,435

 

100

%

100

%

 

 

 


(1) SL Green holds a 51% interest in this consolidated joint venture asset.

 

Retail & Development / Redevelopment Properties - Reckson Portfolio

 

 

 

 

 

 

 

Useable

 

% of Total

 

Occupancy (%)

 

Annualized

 

Gross Total RE

 

Total

 

Properties

 

SubMarket

 

Ownership

 

Sq. Feet

 

Sq. Feet

 

Dec-13

 

Sep-13

 

Jun-13

 

Mar-13

 

Dec-12

 

Cash Rent ($’s)

 

Book Value

 

Tenants

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

315 West 33rd Street - The Olivia

 

Penn Station

 

Fee Interest

 

270,132

 

100

 

100.0

 

N/A

 

N/A

 

N/A

 

N/A

 

14,779,822

 

211,933,183

 

10

 

Total Retail Properties

 

 

 

 

 

270,132

 

100

%

100.0

%

 

 

 

 

$

14,779,822

 

$

211,933,183

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development / Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

635 Sixth Avenue

 

Midtown South

 

Fee Interest

 

104,000

 

100

 

 

 

 

 

 

 

79,571,792

 

 

Total Development Properties

 

 

 

 

 

104,000

 

100

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

$

 

$

79,571,792

 

 

 

Residential Properties - Reckson Portfolio

 

 

 

 

 

 

 

Useable

 

 

 

Occupancy (%)

 

Annualized

 

Average Monthly

 

Gross Total RE

 

Properties

 

SubMarket

 

Ownership

 

Sq. Feet

 

Total Units

 

Dec-13

 

Sep-13

 

Jun-13

 

Mar-13

 

Dec-12

 

Cash Rent ($’s)

 

Rent Per Unit ($’s)

 

Book Value

 

315 West 33rd Street - The Olivia

 

Penn Station

 

Fee Interest

 

222,855

 

333

 

92.5

 

N/A

 

N/A

 

N/A

 

N/A

 

13,234,357

 

3,772

 

174,841,817

 

Total Residential Properties

 

 

 

 

 

222,855

 

333

 

92.5

%

 

 

 

 

$

13,234,357

 

$

3,772

 

$

174,841,817

 

 

37



 

 

LARGEST TENANTS BY SQUARE FEET LEASED

Manhattan and Suburban Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of

 

SLG Share of

 

SLG Share of

 

 

 

 

 

 

 

Lease

 

Total

 

Annualized

 

PSF

 

Annualized

 

Annualized

 

Annualized

 

Credit

 

Tenant Name

 

Property

 

Expiration

 

Square Feet

 

Cash Rent ($)

 

Annualized

 

Cash Rent

 

Cash Rent($)

 

Cash Rent

 

Rating (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citigroup, N.A.

 

388 & 390 Greenwich Street, 485 Lexington Avenue, 750 Third Avenue, 800 Third Avenue, 750 Washington Blvd

 

Various

 

3,023,423

 

$

130,689,197

(1)

$

43.23

 

9.5

%

$

74,386,621

 

6.6

%

A-

 

Viacom International, Inc.

 

1515 Broadway

 

2031

 

1,330,735

 

84,320,090

 

$

63.36

 

6.1

%

84,320,090

 

7.5

%

BBB

 

Credit Suisse Securities (USA), Inc.

 

1 Madison Avenue , 280 Park Avenue & 1055 Washington

 

2014, 2019 & 2020

 

1,241,354

 

72,534,392

 

$

58.43

 

5.3

%

69,123,136

 

6.1

%

A

 

AIG Employee Services, Inc.

 

180 Maiden Lane

 

2014

 

803,222

 

43,099,689

 

$

53.66

 

3.1

%

21,515,365

 

1.9

%

A-

 

Random House, Inc.

 

1745 Broadway

 

2018 & 2023

 

644,598

 

37,785,768

 

$

58.62

 

2.7

%

12,189,689

 

1.1

%

BBB+

 

Debevoise & Plimpton, LLP

 

919 Third Avenue

 

2021

 

619,353

 

41,898,335

 

$

67.65

 

3.0

%

21,368,151

 

1.9

%

 

 

The City of New York

 

16 Court Street & 100 Church Street

 

2014, 2017 & 2034

 

541,787

 

17,525,751

 

$

32.35

 

1.3

%

17,525,751

 

1.6

%

AA

 

Omnicom Group, Inc.

 

220 East 42nd Street

 

2017

 

493,560

 

20,614,734

 

$

41.77

 

1.5

%

20,614,734

 

1.8

%

BBB+

 

Ralph Lauren Corporation

 

625 Madison Avenue

 

2019

 

339,381

 

23,226,324

 

$

68.44

 

1.7

%

23,226,324

 

2.1

%

A

 

Advance Magazine Group, Fairchild Publications

 

750 Third Avenue & 485 Lexington Avenue

 

2021

 

339,195

 

15,255,834

 

$

44.98

 

1.1

%

15,255,834

 

1.3

%

 

 

Harper Collins Publishers LLC

 

1350 Avenue of the Americas & 10 East 53rd Street

 

2014 & 2020

 

289,534

 

16,711,086

 

$

57.72

 

1.2

%

10,797,643

 

1.0

%

BBB+

 

C.B.S. Broadcasting, Inc.

 

555 West 57th Street

 

2023

 

283,798

 

10,797,282

 

$

38.05

 

0.8

%

10,797,282

 

1.0

%

BBB

 

Schulte, Roth & Zabel LLP

 

919 Third Avenue

 

2021

 

263,186

 

16,512,716

 

$

62.74

 

1.2

%

8,421,485

 

0.7

%

 

 

HF Management Services LLC

 

100 Church Street & 521 Fifth Avenue

 

2015 & 2032

 

252,762

 

8,343,939

 

$

33.01

 

0.6

%

8,343,939

 

0.7

%

 

 

New York Presbyterian Hospital

 

673 First Avenue

 

2021

 

232,772

 

10,624,850

 

$

45.64

 

0.8

%

10,624,850

 

0.9

%

 

 

BMW of Manhattan

 

555 West 57th Street

 

2022

 

227,782

 

5,804,014

 

$

25.48

 

0.4

%

5,804,014

 

0.5

%

A+

 

Stroock, Stroock & Lavan LLP

 

180 Maiden Lane

 

2023

 

223,434

 

11,093,850

 

$

49.65

 

0.8

%

5,538,050

 

0.5

%

 

 

The Travelers Indemnity Company

 

485 Lexington Avenue & 2 Jericho Plaza

 

2015 & 2021

 

213,456

 

10,974,003

 

$

51.41

 

0.8

%

9,880,583

 

0.9

%

AA

 

The City University of New York - CUNY

 

555 West 57th Street & 16 Court Street

 

2013, 2020 & 2030

 

207,136

 

7,725,598

 

$

37.30

 

0.6

%

7,725,598

 

0.7

%

Aa2

 

Amerada Hess Corp.

 

1185 Avenue of the Americas

 

2027

 

181,569

 

12,731,274

 

$

70.12

 

0.9

%

12,731,274

 

1.1

%

BBB

 

Verizon

 

120 West 45th Street, 1100 King Street Bldg 1, 1 Landmark Square, 2 Landmark Square & 500 Summit Lake Drive

 

Various

 

172,502

 

4,839,068

 

$

28.05

 

0.4

%

4,839,068

 

0.4

%

BBB+

 

United Nations

 

220 East 42nd Street

 

2017, 2021 & 2022

 

169,137

 

7,867,391

 

$

46.51

 

0.6

%

7,867,391

 

0.7

%

A1

 

News America Incorporated

 

1185 Avenue of the Americas

 

2020

 

161,722

 

14,236,096

 

$

88.03

 

1.0

%

14,236,096

 

1.3

%

BBB+

 

King & Spalding

 

1185 Avenue of the Americas

 

2025

 

159,943

 

13,793,036

 

$

86.24

 

1.0

%

13,793,036

 

1.2

%

 

 

Young & Rubicam, Inc.

 

3 Columbus Circle

 

2033

 

159,292

 

9,909,020

 

$

62.21

 

0.7

%

4,845,511

 

0.4

%

BBB

 

Bloomingdales, Inc.

 

919 Third Avenue

 

2024

 

148,465

 

7,634,509

 

$

51.42

 

0.6

%

3,893,600

 

0.3

%

BBB+

 

National Hockey League

 

1185 Avenue of the Americas

 

2022

 

148,217

 

12,544,387

 

$

84.64

 

0.9

%

12,544,387

 

1.1

%

 

 

New York Hospitals Center

 

673 First Avenue

 

2021 & 2026

 

147,433

 

7,518,316

 

$

50.99

 

0.5

%

7,518,316

 

0.7

%

 

 

Banque National De Paris

 

919 Third Avenue

 

2016

 

145,834

 

9,519,693

 

$

65.28

 

0.7

%

4,855,043

 

0.4

%

A+

 

Beth Israel Medical Center & The Mount Sinai Hospital

 

555 West 57th Street & 625 Madison Avenue

 

2016 & 2030

 

144,251

 

6,054,632

 

$

41.97

 

0.4

%

6,054,632

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

13,308,833

 

$

692,184,874

(1)

$

52.01

 

50.2

%

$

530,637,493

 

46.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Grand Total

 

 

 

 

 

28,549,979

 

$

1,379,837,788

(1)

$

48.33

 

 

 

$

1,130,433,053

 

 

 

 

 

 


(1)      Reflects the net rent as of December 31, 2013 of $41.68 PSF for the 388-390 Greenwich Street lease.  If this lease were included on a gross basis, Citigroup’s total  PSF annualized rent would be $60.17, total PSF annualized rent for the largest tenants would be $55.86 and total PSF annualized rent for the Wholly Owned Portfolio + Allocated JV properties would be $50.12.

(2)      Corporate or bond rating.

 

38



 

 

TENANT DIVERSIFICATION

Manhattan and Suburban Properties

 

 

 

39



 

 

Leasing Activity - Manhattan Operating Properties

 

 

Available Space

 

Activity

 

Building Address

 

# of Leases

 

Useable SF

 

Rentable SF

 

Escalated
Rent/Rentable SF ($’s)(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Vacancy at 9/30/13

 

 

 

 

 

1,343,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Properties in redevelopment

 

51 East 42nd Street

 

 

 

(16,611

)

 

 

 

 

 

 

331 Madison Avenue

 

 

 

(18,784

)

 

 

 

 

 

 

317 Madison Avenue

 

 

 

(79,697

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space which became available during the Quarter (2):

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

125 Park Avenue

 

1

 

29,837

 

29,837

 

$

54.39

 

 

 

220 East 42nd Street

 

1

 

3,082

 

3,082

 

$

35.00

 

 

 

304 Park Avenue South

 

2

 

32,861

 

32,861

 

$

41.63

 

 

 

420 Lexington Avenue

 

14

 

41,873

 

50,694

 

$

53.47

 

 

 

461 Fifth Avenue

 

1

 

5,771

 

6,097

 

$

97.90

 

 

 

521 Fifth Avenue

 

1

 

5,383

 

5,383

 

$

36.36

 

 

 

609 Fifth Avenue

 

1

 

14,355

 

14,355

 

$

72.84

 

 

 

673 First Avenue

 

1

 

3,500

 

3,500

 

$

40.54

 

 

 

750 Third Avenue

 

1

 

11,465

 

11,779

 

$

80.44

 

 

 

810 Seventh Avenue

 

2

 

32,203

 

32,203

 

$

59.66

 

 

 

919 Third Avenue

 

1

 

141,260

 

141,260

 

$

60.43

 

 

 

1350 Avenue of the Americas

 

3

 

27,015

 

28,525

 

$

76.58

 

 

 

Total/Weighted Average

 

29

 

348,605

 

359,576

 

$

59.46

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

125 Park Avenue

 

1

 

7,210

 

6,077

 

$

332.70

 

 

 

625 Madison Avenue

 

1

 

951

 

951

 

$

331.22

 

 

 

Total/Weighted Average

 

2

 

8,161

 

7,028

 

$

332.50

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

125 Park Avenue

 

1

 

197

 

6,124

 

$

50.00

 

 

 

420 Lexington Avenue

 

6

 

1,057

 

1,222

 

$

18.35

 

 

 

461 Fifth Avenue

 

1

 

285

 

285

 

$

30.00

 

 

 

810 Seventh Avenue

 

1

 

252

 

354

 

$

38.64

 

 

 

1515 Broadway

 

1

 

145

 

171

 

$

35.00

 

 

 

Total/Weighted Average

 

10

 

1,936

 

8,156

 

$

43.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Space which became available during the Quarter

 

 

 

 

 

 

 

Office

 

29

 

348,605

 

359,576

 

$

59.46

 

 

 

Retail

 

2

 

8,161

 

7,028

 

$

332.50

 

 

 

Storage

 

10

 

1,936

 

8,156

 

$

43.75

 

 

 

 

 

41

 

358,702

 

374,760

 

$

64.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Available Space

 

 

 

1,587,256

 

 

 

 

 

 


(1)     Escalated rent is calculated as total annual income less electric charges.

(2)     Includes expiring space, relocating tenants and move-outs where tenants vacated.  Excludes lease expirations where tenants heldover.

 

40



 

Leasing Activity - Manhattan Operating Properties

 

Leased Space

 

 

Activity

 

Building Address

 

# of Leases

 

Term (Yrs)

 

Useable SF

 

Rentable SF

 

New Cash Rent /
Rentable SF(1)

 

Prev. Escalated Rent/
Rentable SF(2)

 

TI / Rentable SF

 

Free Rent
# of Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available Space

 

 

 

 

 

 

 

1,587,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100 Church Street

 

1

 

20.8

 

135,946

 

131,946

 

$

33.00

 

$

 

$

47.50

 

6.0

 

 

 

120 West 45th Street

 

3

 

5.3

 

18,532

 

18,187

 

$

62.92

 

$

63.46

 

$

11.13

 

3.0

 

 

 

125 Park Avenue

 

1

 

5.0

 

2,519

 

2,779

 

$

62.00

 

$

 

$

75.98

 

2.0

 

 

 

220 East 42nd Street

 

3

 

5.7

 

7,597

 

8,562

 

$

47.80

 

$

42.55

 

$

20.16

 

1.9

 

 

 

304 Park Avenue South

 

2

 

2.4

 

34,959

 

38,356

 

$

49.18

 

$

38.47

 

$

10.00

 

0.3

 

 

 

420 Lexington Avenue

 

21

 

6.1

 

63,041

 

83,685

 

$

49.94

 

$

55.93

 

$

49.47

 

1.3

 

 

 

461 Fifth Avenue

 

1

 

0.3

 

5,771

 

6,097

 

$

97.90

 

$

97.90

 

$

 

 

 

 

521 Fifth Avenue

 

1

 

6.1

 

5,198

 

5,484

 

$

35.09

 

$

35.08

 

$

 

 

 

 

555 West 57th Street

 

1

 

13.0

 

7,015

 

8,413

 

$

40.00

 

$

41.93

 

$

55.00

 

12.0

 

 

 

600 Lexington Avenue

 

2

 

7.2

 

19,267

 

19,254

 

$

64.60

 

$

59.27

 

$

47.95

 

5.3

 

 

 

609 Fifth Avenue

 

1

 

5.2

 

2,798

 

2,980

 

$

66.88

 

$

 

$

 

2.0

 

 

 

750 Third Avenue

 

1

 

10.3

 

3,438

 

3,550

 

$

55.00

 

$

59.06

 

$

64.00

 

4.0

 

 

 

810 Seventh Avenue

 

2

 

12.1

 

36,000

 

39,757

 

$

52.41

 

$

 

$

58.45

 

6.9

 

 

 

919 Third Avenue

 

1

 

10.8

 

44,528

 

47,763

 

$

53.50

 

$

 

$

60.00

 

11.0

 

 

 

1350 Avenue of the Americas

 

4

 

10.5

 

34,874

 

36,429

 

$

65.67

 

$

75.59

 

$

40.24

 

6.0

 

 

 

Total/Weighted Average

 

45

 

11.5

 

421,483

 

453,242

 

$

48.41

 

$

56.53

 

$

43.34

 

4.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100 Park Avenue

 

2

 

13.0

 

3,884

 

4,544

 

$

185.71

 

$

 

$

103.71

 

5.0

 

 

 

304 Park Avenue South

 

1

 

10.6

 

5,240

 

5,310

 

$

141.24

 

$

 

$

 

7.0

 

 

 

Total/Weighted Average

 

3

 

11.7

 

9,124

 

9,854

 

$

161.75

 

$

 

$

47.82

 

6.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

420 Lexington Avenue

 

3

 

4.6

 

948

 

1,346

 

$

13.35

 

$

43.46

 

$

45.64

 

1.3

 

 

 

461 Fifth Avenue

 

1

 

0.3

 

285

 

285

 

$

30.00

 

$

30.00

 

$

 

 

 

 

1515 Broadway

 

1

 

1.2

 

145

 

171

 

$

35.00

 

$

35.00

 

$

 

 

 

 

Total/Weighted Average

 

5

 

3.6

 

1,378

 

1,802

 

$

18.04

 

$

39.83

 

$

34.09

 

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leased Space

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office (3)

 

45

 

11.5

 

421,483

 

453,242

 

$

48.41

 

$

56.53

 

$

43.34

 

4.9

 

 

 

Retail

 

3

 

11.7

 

9,124

 

9,854

 

$

161.75

 

$

 

$

47.82

 

6.1

 

 

 

Storage

 

5

 

3.6

 

1,378

 

1,802

 

$

18.04

 

$

39.83

 

$

34.09

 

1.0

 

 

 

Total

 

53

 

11.5

 

431,985

 

464,898

 

$

50.69

 

$

56.40

 

$

43.40

 

4.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Available Space as of 12/31/13

 

 

 

 

 

1,155,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early Renewals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

120 West 45th Street

 

1

 

10.0

 

9,711

 

10,093

 

$

50.00

 

$

49.06

 

$

44.57

 

4.0

 

 

 

388 & 390 Greenwich Street

 

1

 

15.0

 

2,634,670

 

2,634,670

 

$

47.00

(4)

$

41.68

 

$

51.14

(5)

7.1

 

 

 

420 Lexington Avenue

 

6

 

18.7

 

108,200

 

139,705

 

$

47.11

 

$

36.87

 

$

59.80

 

5.5

 

 

 

555 West 57th Street

 

1

 

5.0

 

50,000

 

50,000

 

$

39.80

 

$

37.80

 

$

 

 

 

 

750 Third Avenue

 

1

 

5.8

 

4,679

 

5,022

 

$

55.00

 

$

76.77

 

$

3.24

 

 

 

 

800 Third Avenue

 

1

 

5.5

 

15,985

 

16,045

 

$

79.69

 

$

89.14

 

$

29.57

 

3.0

 

 

 

810 Seventh Avenue

 

1

 

5.5

 

15,500

 

17,320

 

$

57.00

 

$

63.17

 

$

 

1.0

 

 

 

1350 Avenue of the Americas

 

1

 

2.0

 

1,738

 

1,738

 

$

68.00

 

$

65.00

 

$

 

 

 

 

Total/Weighted Average

 

13

 

14.9

 

2,840,483

 

2,874,593

 

$

47.16

 

$

41.87

 

$

50.11

 

6.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

420 Lexington Avenue

 

1

 

20.0

 

4,708

 

5,012

 

$

40.89

 

$

33.66

 

$

 

 

 

 

625 Madison Avenue

 

1

 

10.0

 

2,600

 

2,604

 

$

1,000.00

 

$

593.01

 

$

 

 

 

 

Total/Weighted Average

 

2

 

16.6

 

7,308

 

7,616

 

$

368.82

 

$

224.91

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

120 West 45th Street

 

1

 

10.0

 

326

 

326

 

$

25.00

 

$

25.00

 

$

 

 

 

 

625 Madison Avenue

 

1

 

10.0

 

427

 

402

 

$

42.27

 

$

43.62

 

$

 

 

 

 

Total/Weighted Average

 

2

 

10.0

 

753

 

728

 

$

34.54

 

$

35.28

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early Renewals Office

 

13

 

14.9

 

2,840,483

 

2,874,593

 

$

47.16

 

$

41.87

 

$

50.11

 

6.8

 

 

 

Early Renewals Retail

 

2

 

16.6

 

7,308

 

7,616

 

$

368.82

 

$

224.91

 

$

 

 

 

 

Early Renewals Storage

 

2

 

10.0

 

753

 

728

 

$

34.54

 

$

35.28

 

$

 

 

 

 

Total

 

17

 

14.9

 

2,848,544

 

2,882,937

 

$

48.01

 

$

42.36

 

$

49.96

 

6.8

 

 


(1)         Annual initial base rent.

(2)         Escalated rent is calculated as total annual income less electric charges.

(3)         Average starting office rent excluding new tenants replacing vacancies is $55.87/rsf for 174,579 rentable SF.
Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $47.66/rsf for 3,049,172 rentable SF.

(4)         Effective January 1, 2021.

(5)         The lease further provides for the company to fund a redevelopment capital contribution of $47.44/rsf, which is available to the tenant no earlier than January 1, 2018 and is to be utilized for base building work, redevelopment costs or other permanent improvements to the property.

 

41



 

 

Leasing Activity - Suburban Operating Properties

 

 

Available Space

 

Activity

 

Building Address

 

# of Leases

 

Useable SF

 

Renta­ble SF

 

Escalated
Rent/Rentable SF ($’s)(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Vacancy at 9/30/13

 

 

 

 

 

1,121,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space which became available during the Quarter (2):

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

1100 King Street - 4 Int’l Drive, Rye Brook, New York

 

1

 

4,551

 

4,551

 

$

31.48

 

 

 

1100 King Street - 5 Int’l Drive, Rye Brook, New York

 

2

 

6,147

 

6,579

 

$

18.94

 

 

 

1 Landmark Square, Stamford, Connecticut

 

1

 

2,038

 

2,038

 

$

36.24

 

 

 

2 Landmark Square, Stamford, Connecticut

 

1

 

1,108

 

1,108

 

$

31.47

 

 

 

1055 Washington Boulevard, Stamford, Connecticut

 

1

 

3,360

 

3,360

 

$

22.25

 

 

 

500 West Putnam Avenue, Greenwich, Connecticut

 

1

 

3,935

 

3,935

 

$

43.00

 

 

 

The Meadows, Rutherford, New Jersey

 

3

 

49,661

 

49,661

 

$

22.08

 

 

 

16 Court Street, Brooklyn, NY

 

3

 

12,620

 

14,155

 

$

29.59

 

 

 

Total/Weighted Average

 

13

 

83,420

 

85,387

 

$

25.01

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Landmark Square, Stamford, Connecticut

 

1

 

1,074

 

1,074

 

$

31.12

 

 

 

750 Washington Boulevard, Stamford, Connecticut

 

1

 

500

 

500

 

$

5.00

 

 

 

Total/Weighted Average

 

2

 

1,574

 

1,574

 

$

22.82

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

Jericho Plaza, Jericho, New York

 

1

 

600

 

600

 

$

18.00

 

 

 

Total/Weighted Average

 

1

 

600

 

600

 

$

18.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Space which became available during the Quarter

 

 

 

 

 

 

 

 

 

Office

 

13

 

83,420

 

85,387

 

$

25.01

 

 

 

Retail

 

2

 

1,574

 

1,574

 

$

22.82

 

 

 

Storage

 

1

 

600

 

600

 

$

18.00

 

 

 

 

 

16

 

85,594

 

87,561

 

$

24.93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Available Space

 

 

 

1,207,099

 

 

 

 

 

 


(1)             Escalated rent is calculated as total annual income less electric charges.

(2)             Includes expiring space, relocating tenants and move-outs where tenants vacated.  Excludes lease expirations where tenants heldover.

 

42



 

 

Leasing Activity - Suburban Operating Properties

Leased Space

 

 

Activity

 

Building Address

 

# of Leases

 

Term (Yrs)

 

Useable SF

 

Rentable SF

 

New Cash Rent /
Rentable SF(1)

 

Prev. Escalated Rent/
Rentable SF(2)

 

TI / Rentable SF

 

Free Rent
# of Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available Space

 

 

 

 

 

 

 

1,207,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1100 King Street - 4 Int’l Drive, Rye Brook, New York

 

2

 

11.0

 

17,475

 

17,475

 

$

23.59

 

$

31.48

 

$

39.20

 

10.2

 

 

 

1100 King Street - 5 Int’l Drive, Rye Brook, New York

 

2

 

7.8

 

8,013

 

8,473

 

$

23.30

 

$

14.53

 

$

 

7.9

 

 

 

140 Grand Street, White Plains, New York

 

1

 

10.6

 

4,948

 

4,948

 

$

27.00

 

$

 

$

45.00

 

7.0

 

 

 

360 Hamilton Avenue, White Plains, New York

 

1

 

6.2

 

996

 

2,130

 

$

35.00

 

$

 

$

 

2.0

 

 

 

1 Landmark Square, Stamford, Connecticut

 

2

 

3.1

 

5,350

 

5,350

 

$

34.32

 

$

34.19

 

$

2.20

 

2.2

 

 

 

3 Landmark Square, Stamford, Connecticut

 

1

 

3.3

 

6,500

 

7,100

 

$

30.00

 

$

 

$

9.00

 

4.0

 

 

 

680 Washington Boulevard, Stamford, Connecticut

 

1

 

2.0

 

1,670

 

1,670

 

$

43.00

 

$

 

$

 

 

 

 

1055 Washington Boulevard, Stamford, Connecticut

 

1

 

5.4

 

5,200

 

5,934

 

$

32.25

 

$

39.05

 

$

27.94

 

5.0

 

 

 

500 West Putnam Avenue, Greenwich, Connecticut

 

1

 

0.5

 

3,935

 

3,935

 

$

43.00

 

$

43.00

 

$

 

 

 

 

The Meadows, Rutherford, New Jersey

 

5

 

10.8

 

71,058

 

71,058

 

$

23.88

 

$

 

$

49.77

 

14.2

 

 

 

Jericho Plaza, Jericho, New York

 

1

 

5.3

 

2,016

 

2,016

 

$

33.50

 

$

 

$

42.00

 

3.0

 

 

 

16 Court Street, Brooklyn, NY

 

3

 

1.2

 

8,685

 

9,347

 

$

38.70

 

$

30.38

 

$

19.43

 

 

 

 

Total/Weighted Average

 

21

 

8.6

 

135,846

 

139,436

 

$

27.06

 

$

32.12

 

$

35.52

 

9.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Landmark Square, Stamford, Connecticut

 

1

 

3.3

 

1,074

 

1,074

 

$

28.00

 

$

31.12

 

$

1.00

 

2.0

 

 

 

Total/Weighted Average

 

1

 

3.3

 

1,074

 

1,074

 

$

28.00

 

$

31.12

 

$

1.00

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

140 Grand Street, White Plains, New York

 

1

 

10.6

 

331

 

331

 

$

13.60

 

$

 

$

 

 

 

 

Total/Weighted Average

 

1

 

10.6

 

331

 

331

 

$

13.60

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leased Space

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office (3)

 

21

 

8.6

 

135,846

 

139,436

 

$

27.06

 

$

32.12

 

$

35.52

 

9.8

 

 

 

Retail

 

1

 

3.3

 

1,074

 

1,074

 

$

28.00

 

$

31.12

 

$

1.00

 

2.0

 

 

 

Storage

 

1

 

10.6

 

331

 

331

 

$

13.60

 

$

 

$

 

 

 

 

Total

 

23

 

8.5

 

137,251

 

140,841

 

$

27.04

 

$

32.08

 

$

35.17

 

9.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Available Space as of 12/31/13

 

 

 

 

 

1,069,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early Renewals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1010 Washington Boulevard, Stamford, Connecticut

 

1

 

1.0

 

13,667

 

13,667

 

$

31.50

 

$

31.00

 

$

 

 

 

 

1055 Washington Boulevard, Stamford, Connecticut

 

1

 

5.0

 

10,550

 

10,550

 

$

36.51

 

$

36.51

 

$

 

4.0

 

 

 

The Meadows, Rutherford, New Jersey

 

1

 

2.4

 

3,078

 

3,078

 

$

26.00

 

$

29.50

 

$

 

 

 

 

16 Court Street, Brooklyn, NY

 

2

 

3.0

 

12,371

 

14,596

 

$

35.03

 

$

33.95

 

$

2.50

 

0.1

 

 

 

Total/Weighted Average

 

5

 

2.8

 

39,666

 

41,891

 

$

33.59

 

$

33.30

 

$

0.87

 

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early Renewals Office

 

5

 

2.8

 

39,666

 

41,891

 

$

33.59

 

$

33.30

 

$

0.87

 

1.1

 

 

 

Total

 

5

 

2.8

 

39,666

 

41,891

 

$

33.59

 

$

33.30

 

$

0.87

 

1.1

 

 


(1)    Annual initial base rent.

(2)    Escalated Rent is calculated as total annual income less electric charges.

(3)    Average starting office rent excluding new tenants replacing vacancies is $32.87/rsf for 31,740 rentable SF.

Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $33.28/rsf for 73,631 rentable SF.

 

43



 

ANNUAL LEASE EXPIRATIONS - Manhattan Operating Properties

Office, Retail and Storage Leases

GRAPHIC

 

 

 

Consolidated Properties

 

Joint Venture Properties

 

Year of Lease Expiration

 

Number of
Expiring
Leases (2)

 

Rentable
Square
Footage of
Expiring
Leases

 

Percentage
of Total
Sq. Ft.

 

Annualized
Cash Rent of
Expiring Leases

 

Annualized Cash
Rent Per Square
Foot of Expiring
Leases $/psf (3)

 

Current
Weighted
Average
Asking Rent
$/psf (5)

 

Number of
Expiring
Leases (2)

 

Rentable
Square
Footage of
Expiring
Leases

 

Percentage
of Total
Sq. Ft.

 

Annualized
Cash Rent of
Expiring
Leases

 

Annualized Cash
Rent Per Square
Foot of Expiring
Leases $/psf (3)

 

Current
Weighted
Average
Asking Rent
$/psf (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 1st Quarter 2013 (1)

 

4

 

9,413

 

0.06

%

$

462,864

 

$

49.17

 

$

52.99

 

0

 

0

 

0.00

%

$

0

 

$

0.00

 

$

0.00

 

In 2nd Quarter 2013 (1)

 

0

 

0

 

0.00

%

$

0

 

$

0.00

 

$

0.00

 

0

 

0

 

0.00

%

$

0

 

$

0.00

 

$

0.00

 

In 3rd Quarter 2013 (1)

 

0

 

0

 

0.00

%

$

0

 

$

0.00

 

$

0.00

 

0

 

0

 

0.00

%

$

0

 

$

0.00

 

$

0.00

 

In 4th Quarter 2013 (1)

 

7

 

32,623

 

0.19

%

$

1,812,468

 

$

55.56

 

$

78.50

 

1

 

2,354

 

0.04

%

$

211,860

 

$

90.00

 

$

90.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 2013

 

11

 

42,036

 

0.25

%

$

2,275,332

 

$

54.13

 

$

72.79

 

1

 

2,354

 

0.04

%

$

211,860

 

$

90.00

 

$

90.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2014

 

19

 

265,366

 

1.58

%

$

16,370,016

 

$

61.69

 

$

60.17

 

8

 

38,236

 

0.66

%

$

2,429,076

 

$

63.53

 

$

65.38

 

2nd Quarter 2014

 

18

 

986,858

 

5.89

%

$

53,106,163

 

$

53.81

 

$

51.98

 

7

 

263,182

 

4.56

%

$

15,649,440

 

$

59.46

 

$

77.32

 

3rd Quarter 2014

 

12

 

48,013

 

0.29

%

$

3,674,940

 

$

76.54

 

$

90.34

 

6

 

89,955

 

1.56

%

$

3,026,448

 

$

33.64

 

$

42.95

 

4th Quarter 2014

 

22

 

163,370

 

0.98

%

$

12,232,776

 

$

74.88

 

$

157.83

 

1

 

20,010

 

0.35

%

$

990,708

 

$

49.51

 

$

60.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 2014

 

71

 

1,463,607

 

8.74

%

$

85,383,895

 

$

58.34

 

$

66.54

 

22

 

411,383

 

7.13

%

$

22,095,672

 

$

53.71

 

$

67.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

82

 

588,811

 

3.52

%

$

32,829,813

 

$

55.76

 

$

64.65

 

26

 

226,430

 

3.92

%

$

12,848,244

 

$

56.74

 

$

63.66

 

2016

 

84

 

940,699

 

5.62

%

$

57,447,696

 

$

61.07

 

$

73.68

 

21

 

197,054

 

3.41

%

$

11,227,476

 

$

56.98

 

$

65.56

 

2017

 

94

 

1,562,961

 

9.33

%

$

86,906,332

 

$

55.60

 

$

58.98

 

14

 

162,323

 

2.81

%

$

9,602,556

 

$

59.16

 

$

59.63

 

2018

 

63

 

678,013

 

4.05

%

$

50,453,363

 

$

74.41

 

$

95.29

 

24

 

473,272

 

8.20

%

$

31,757,208

 

$

67.10

 

$

65.44

 

2019

 

29

 

836,509

 

4.99

%

$

52,730,789

 

$

63.04

 

$

63.75

 

8

 

153,429

 

2.66

%

$

11,071,416

 

$

72.16

 

$

69.89

 

2020

 

40

 

2,322,149

 

13.86

%

$

135,548,148

 

$

58.37

 

$

65.39

 

13

 

283,567

 

4.91

%

$

13,900,080

 

$

49.02

 

$

64.51

 

2021

 

39

 

2,271,388

 

13.56

%

$

124,603,497

 

$

54.86

 

$

58.25

 

8

 

144,474

 

2.50

%

$

7,215,312

 

$

49.94

 

$

63.38

 

2022

 

32

 

801,247

 

4.78

%

$

47,031,192

 

$

58.70

 

$

74.66

 

11

 

166,593

 

2.89

%

$

9,730,560

 

$

58.41

 

$

65.11

 

Thereafter

 

93

 

5,241,336

 

31.29

%

$

278,231,524

 

$

53.08

 

$

64.47

 

27

 

914,959

 

15.86

%

$

55,989,420

 

$

61.19

 

$

65.93

 

 

 

638

 

16,748,756

 

100.00

%

$

953,441,580

 

$

56.93

 

$

65.66

 

175

 

3,135,838

 

54.34

%

$

185,649,804

 

$

59.20

 

$

65.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4)

1

 

2,634,670

 

45.66

%

$

109,811,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

176

 

5,770,508

 

100.00

%

$

295,460,964

 

 

 

 

 

 


(1) Includes month to month holdover tenants that expired prior to December 31, 2013.

(2) Tenants may have multiple leases.

(3) Represents in place annualized rent allocated by year of maturity.

(4) Citigroup’s net lease at 388-390 Greenwich Street which expires in 2035, net rent as of December 31, 2013 is $41.68/psf with annual CPI escalations thereafter.

(5) Management’s estimate of average asking rents for currently occupied space as of December 31, 2013. Taking rents are typically lower than asking rents and may vary from property to property.

 

44



 

 

ANNUAL LEASE EXPIRATIONS - Suburban Operating Properties (5)

Office, Retail and Storage Leases

 

 

 

 

Consolidated Properties

 

Joint Venture Properties

 

Year of Lease Expiration 

 

Number of
Expiring
Leases (2)

 

Rentable
Square
Footage of
Expiring
Leases

 

Percentage
of Total
Sq. Ft.

 

Annualized
Cash Rent of
Expiring
Leases

 

Annualized Cash
Rent Per Square
Foot of Expiring
Leases $/psf (3)

 

Current
Weighted
Average
Asking Rent
$/psf (4)

 

Number of
Expiring
Leases (2)

 

Rentable
Square
Footage of
Expiring
Leases

 

Percentage
of Total
Sq. Ft.

 

Annualized
Cash Rent of
Expiring
Leases

 

Annualized Cash
Rent Per Square
Foot of Expiring
Leases $/psf (3)

 

Current
Weighted
Average
Asking Rent
$/psf (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 1st Quarter 2013 (1)

 

8

 

31,186

 

1.01

%

$

894,660

 

$

28.69

 

$

28.50

 

2

 

7,247

 

0.71

%

$

237,624

 

$

32.79

 

$

31.32

 

In 2nd Quarter 2013 (1)

 

4

 

17,947

 

0.58

%

$

545,628

 

$

30.40

 

$

30.61

 

0

 

0

 

0.00

%

$

0

 

$

0.00

 

$

0.00

 

In 3rd Quarter 2013 (1)

 

1

 

550

 

0.02

%

$

18,216

 

$

33.12

 

$

34.00

 

1

 

2,761

 

0.27

%

$

85,680

 

$

31.03

 

$

26.00

 

In 4th Quarter 2013 (1)

 

4

 

3,660

 

0.12

%

$

119,352

 

$

32.61

 

$

33.85

 

4

 

13,924

 

1.37

%

$

405,816

 

$

29.15

 

$

26.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 2013

 

17

 

53,343

 

1.73

%

$

1,577,856

 

$

29.58

 

$

29.63

 

7

 

23,932

 

2.36

%

$

729,120

 

$

30.47

 

$

27.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2014

 

14

 

79,878

 

2.59

%

$

2,869,968

 

$

35.93

 

$

32.02

 

5

 

20,057

 

1.98

%

$

619,884

 

$

30.91

 

$

29.61

 

2nd Quarter 2014

 

9

 

32,094

 

1.04

%

$

1,253,748

 

$

39.06

 

$

36.36

 

5

 

16,741

 

1.65

%

$

504,072

 

$

30.11

 

$

31.17

 

3rd Quarter 2014

 

13

 

86,572

 

2.81

%

$

2,856,168

 

$

32.99

 

$

32.07

 

3

 

13,258

 

1.31

%

$

418,980

 

$

31.60

 

$

26.00

 

4th Quarter 2014

 

15

 

84,782

 

2.75

%

$

3,020,484

 

$

35.63

 

$

36.19

 

5

 

111,652

 

11.01

%

$

4,143,720

 

$

37.11

 

$

35.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total 2014

 

51

 

283,326

 

9.20

%

$

10,000,368

 

$

35.30

 

$

33.77

 

18

 

161,708

 

15.95

%

$

5,686,656

 

$

35.17

 

$

33.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

49

 

296,634

 

9.64

%

$

10,012,932

 

$

33.76

 

$

33.77

 

16

 

133,885

 

13.21

%

$

4,314,204

 

$

32.22

 

$

32.14

 

2016

 

59

 

578,175

 

18.78

%

$

19,378,908

 

$

33.52

 

$

34.98

 

9

 

69,616

 

6.87

%

$

2,084,016

 

$

29.94

 

$

28.16

 

2017

 

38

 

188,907

 

6.14

%

$

7,525,992

 

$

39.84

 

$

38.33

 

10

 

83,289

 

8.22

%

$

2,769,216

 

$

33.25

 

$

34.66

 

2018

 

42

 

273,992

 

8.90

%

$

9,353,496

 

$

34.14

 

$

35.34

 

9

 

104,606

 

10.32

%

$

3,410,401

 

$

32.60

 

$

31.08

 

2019

 

21

 

485,074

 

15.76

%

$

13,125,696

 

$

27.06

 

$

29.43

 

6

 

63,660

 

6.28

%

$

2,035,896

 

$

31.98

 

$

30.91

 

2020

 

18

 

295,733

 

9.61

%

$

9,297,108

 

$

31.44

 

$

33.11

 

3

 

41,357

 

4.08

%

$

1,433,196

 

$

34.65

 

$

33.95

 

2021

 

15

 

201,710

 

6.55

%

$

5,327,489

 

$

26.41

 

$

28.27

 

3

 

76,346

 

7.53

%

$

2,675,448

 

$

35.04

 

$

35.58

 

2022

 

9

 

49,152

 

1.60

%

$

1,540,464

 

$

31.34

 

$

32.74

 

0

 

0

 

0.00

%

$

0

 

$

0.00

 

$

0.00

 

Thereafter

 

26

 

372,593

 

12.10

%

$

11,720,279

 

$

31.46

 

$

33.50

 

8

 

255,327

 

25.19

%

$

6,936,504

 

$

27.17

 

$

27.99

 

 

 

345

 

3,078,639

 

100.00

%

$

98,860,588

 

$

32.11

 

$

33.19

 

89

 

1,013,726

 

100.00

%

$

32,074,656

 

$

31.64

 

$

31.28

 

 


(1) Includes month to month holdover tenants that expired prior to December 31, 2013.

(2) Tenants may have multiple leases.

(3) Represents in place annualized rent allocated by year of maturity.

(4) Management’s estimate of average asking rents for currently occupied space as of December 31, 2013. Taking rents are typically lower than asking rents and may vary from property to property.

(5) Excludes the west coast office portfolio.

 

45



 

SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997 - Manhattan

 

 

 

 

 

 

 

 

 

 

 

% Leased

 

Acquisition

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable SF

 

at acquisition

 

12/31/2013

 

Price ($’s) (1)

 

1998 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-98

 

420 Lexington Avenue

 

Operating Sublease

 

Grand Central

 

1,188,000

 

83.0

 

85.8

 

$

78,000,000

 

May-98

 

711 3rd Avenue

 

Operating Sublease

 

Grand Central

 

524,000

 

79.0

 

88.4

 

$

65,600,000

 

Jun-98

 

440 9th Avenue

 

Fee Interest

 

Penn Station

 

339,000

 

76.0

 

N/A

 

$

32,000,000

 

 

 

 

 

 

 

 

 

2,051,000

 

 

 

 

 

$

175,600,000

 

1999 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-99

 

420 Lexington Leasehold

 

Sub-leasehold

 

Grand Central

 

 

 

 

$

27,300,000

 

Jan-99

 

555 West 57th Street - 65% JV

 

Fee Interest

 

Midtown West

 

941,000

 

100.0

 

99.9

 

$

66,700,000

 

Aug-99

 

1250 Broadway - 50% JV

 

Fee Interest

 

Penn Station

 

670,000

 

96.5

 

N/A

 

$

93,000,000

 

Nov-99

 

555 West 57th Street - remaining 35%

 

Fee Interest

 

Midtown West

 

 

 

 

99.9

 

$

34,100,000

 

 

 

 

 

 

 

 

 

1,611,000

 

 

 

 

 

$

221,100,000

 

2000 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-00

 

100 Park Avenue - 50% JV

 

Fee Interest

 

Grand Central

 

834,000

 

96.5

 

95.1

 

$

192,000,000

 

 

 

 

 

 

 

 

 

834,000

 

 

 

 

 

$

192,000,000

 

2001 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun-01

 

317 Madison Avenue

 

Fee Interest

 

Grand Central

 

450,000

 

95.0

 

78.6

 

$

105,600,000

 

Acquisition of JV Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep-01

 

1250 Broadway - 49.9% JV (2)

 

Fee Interest

 

Penn Station

 

670,000

 

97.7

 

N/A

 

$

126,500,000

 

 

 

 

 

 

 

 

 

1,120,000

 

 

 

 

 

$

232,100,000

 

2002 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

May-02

 

1515 Broadway - 55% JV

 

Fee Interest

 

Times Square

 

1,750,000

 

98.0

 

100.0

 

$

483,500,000

 

 

 

 

 

 

 

 

 

1,750,000

 

 

 

 

 

$

483,500,000

 

2003 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-03

 

220 East 42nd Street

 

Fee Interest

 

Grand Central

 

1,135,000

 

91.9

 

91.5

 

$

265,000,000

 

Mar-03

 

125 Broad Street

 

Fee Interest

 

Downtown

 

525,000

 

100.0

 

N/A

 

$

92,000,000

 

Oct-03

 

461 Fifth Avenue

 

Leasehold Interest

 

Midtown

 

200,000

 

93.9

 

99.4

 

$

60,900,000

 

Dec-03

 

1221 Avenue of the Americas - 45% JV

 

Fee Interest

 

Rockefeller Center

 

2,550,000

 

98.8

 

N/A

 

$

1,000,000,000

 

 

 

 

 

 

 

 

 

4,410,000

 

 

 

 

 

$

1,417,900,000

 

2004 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-04

 

19 West 44th Street - 35% JV

 

Fee Interest

 

Midtown

 

292,000

 

86.0

 

N/A

 

$

67,000,000

 

Jul-04

 

750 Third Avenue

 

Fee Interest

 

Grand Central

 

779,000

 

100.0

 

95.8

 

$

255,000,000

 

Jul-04

 

485 Lexington Avenue - 30% JV

 

Fee Interest

 

Grand Central

 

921,000

 

100.0

 

100.0

 

$

225,000,000

 

Oct-04

 

625 Madison Avenue

 

Leasehold Interest

 

Plaza District

 

563,000

 

68.0

 

92.1

 

$

231,500,000

 

 

 

 

 

 

 

 

 

2,555,000

 

 

 

 

 

$

778,500,000

 

2005 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-05

 

28 West 44th Street

 

Fee Interest

 

Midtown

 

359,000

 

87.0

 

N/A

 

$

105,000,000

 

Apr-05

 

1 Madison Avenue - 55% JV

 

Fee Interest

 

Park Avenue South

 

1,177,000

 

96.0

 

100.0

 

$

803,000,000

 

Apr-05

 

5 Madison Avenue Clock Tower

 

Fee Interest

 

Park Avenue South

 

267,000

 

N/A

 

N/A

 

$

115,000,000

 

Jun-05

 

19 West 44th Street - remaining 65%

 

Fee Interest

 

Midtown

 

 

 

 

N/A

 

$

91,200,000

 

 

 

 

 

 

 

 

 

1,803,000

 

 

 

 

 

$

1,114,200,000

 

2006 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-06

 

521 Fifth Avenue

 

Leasehold Interest

 

Midtown

 

460,000

 

97.0

 

94.4

 

$

210,000,000

 

Jun-06

 

609 Fifth Avenue

 

Fee Interest

 

Midtown

 

160,000

 

98.5

 

77.8

 

$

182,000,000

 

Dec-06

 

485 Lexington Avenue - remaining 70%

 

Fee Interest

 

Grand Central

 

 

 

 

100.0

 

$

578,000,000

 

Dec-06

 

800 Third Avenue - 42.95% JV

 

Fee Interest

 

Grand Central North

 

526,000

 

96.9

 

95.4

 

$

285,000,000

 

 

 

 

 

 

 

 

 

1,273,400

 

 

 

 

 

$

1,520,000,000

 

2007 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-07

 

Reckson - NYC Portfolio

 

Fee Interests / Leasehold Interest

 

Various

 

5,612,000

 

98.3

 

92.5

 

$

3,679,530,000

 

Apr-07

 

331 Madison Avenue

 

Fee Interest

 

Grand Central

 

114,900

 

97.6

 

83.6

 

$

73,000,000

 

Apr-07

 

1745 Broadway - 32.3% JV

 

Fee Interest

 

Midtown

 

674,000

 

100.0

 

100.0

 

$

520,000,000

 

Jun-07

 

333 West 34th Street

 

Fee Interest

 

Penn Station

 

345,400

 

100.0

 

N/A

 

$

183,000,000

 

Aug-07

 

1 Madison Avenue - remaining 45%

 

Fee Interest

 

Park Avenue South

 

1,177,000

 

99.8

 

100.0

 

$

1,000,000,000

 

Dec-07

 

388 & 390 Greenwich Street - 50.6% JV

 

Fee Interest

 

Downtown

 

2,635,000

 

100.0

 

100.0

 

$

1,575,000,000

 

 

 

 

 

 

 

 

 

10,558,300

 

 

 

 

 

$

7,030,530,000

 

2010 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-10

 

100 Church Street

 

Fee Interest

 

Downtown

 

1,047,500

 

41.3

 

98.7

 

$

181,600,000

 

May-10

 

600 Lexington Avenue - 55% JV

 

Fee Interest

 

East Side

 

303,515

 

93.6

 

75.5

 

$

193,000,000

 

Aug-10

 

125 Park Avenue

 

Fee Interest

 

Grand Central

 

604,245

 

99.1

 

82.0

 

$

330,000,000

 

 

 

 

 

 

 

 

 

1,955,260

 

 

 

 

 

$

704,600,000

 

2011 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-11

 

521 Fifth Avenue - remaining 49.9%

 

Leasehold Interest

 

Midtown

 

460,000

 

80.7

 

94.4

 

$

245,700,000

 

Apr-11

 

1515 Broadway - remaining 45%

 

Fee Interest

 

Times Square

 

1,750,000

 

98.5

 

100.0

 

$

1,210,000,000

 

May-11

 

110 East 42nd Street

 

Fee Interest

 

Grand Central

 

205,000

 

72.6

 

86.5

 

$

85,570,000

 

May-11

 

280 Park Avenue - 49.5% JV

 

Fee Interest

 

Park Avenue

 

1,219,158

 

78.2

 

59.4

 

$

1,110,000,000

 

Nov-11

 

180 Maiden Lane - 49.9% JV

 

Fee Interest

 

Financial East

 

1,090,000

 

97.7

 

97.6

 

$

425,680,000

 

Nov-11

 

51 East 42nd Street

 

Fee Interest

 

Grand Central

 

142,000

 

95.5

 

86.5

 

$

80,000,000

 

 

 

 

 

 

 

 

 

4,866,158

 

 

 

 

 

$

3,156,950,000

 

2012 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-12

 

10 East 53rd Street - 55% JV

 

Fee Interest

 

Plaza District

 

354,300

 

91.9

 

90.0

 

$

252,500,000

 

Jun-12

 

304 Park Avenue South

 

Fee Interest

 

Midtown South

 

215,000

 

95.8

 

98.8

 

$

135,000,000

 

Sep-12

 

641 Sixth Avenue

 

Fee Interest

 

Midtown South

 

163,000

 

92.1

 

92.1

 

$

90,000,000

 

Dec-12

 

315 West 36th Street - 35.5% JV

 

Fee Interest

 

Times Square South

 

147,619

 

99.2

 

99.2

 

$

46,000,000

 

 

 

 

 

 

 

 

 

879,919

 

 

 

 

 

$

523,500,000

 

 


(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties.

(2) Ownership interest from November 2001 - May 2008 was 55%. (From 9/1/01-10/31/01 the Company owned 99.8% of this property.)

 

46



 

SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999 - Manhattan

 

 

 

 

 

 

 

 

 

 

 

Sales

 

Sales

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable SF

 

Price ($’s)

 

Price ($’s/SF)

 

2000 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-00

 

29 West 35th Street

 

Fee Interest

 

Penn Station

 

78,000

 

$

11,700,000

 

$

150

 

Mar-00

 

36 West 44th Street

 

Fee Interest

 

Grand Central

 

178,000

 

$

31,500,000

 

$

177

 

May-00

 

321 West 44th Street - 35% JV

 

Fee Interest

 

Times Square

 

203,000

 

$

28,400,000

 

$

140

 

Nov-00

 

90 Broad Street

 

Fee Interest

 

Financial

 

339,000

 

$

60,000,000

 

$

177

 

Dec-00

 

17 Battery South

 

Fee Interest

 

Financial

 

392,000

 

$

53,000,000

 

$

135

 

 

 

 

 

 

 

 

 

1,190,000

 

$

184,600,000

 

$

156

 

2001 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-01

 

633 Third Ave

 

Fee Interest

 

Grand Central North

 

40,623

 

$

13,250,000

 

$

326

 

May-01

 

1 Park Ave - 45% JV

 

Fee Interest

 

Grand Central South

 

913,000

 

$

233,900,000

 

$

256

 

Jun-01

 

1412 Broadway

 

Fee Interest

 

Times Square South

 

389,000

 

$

90,700,000

 

$

233

 

Jul-01

 

110 East 42nd Street

 

Fee Interest

 

Grand Central

 

69,700

 

$

14,500,000

 

$

208

 

Sep-01

 

1250 Broadway (1)

 

Fee Interest

 

Penn Station

 

670,000

 

$

126,500,000

 

$

189

 

 

 

 

 

 

 

 

 

2,082,323

 

$

478,850,000

 

$

242

 

2002 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun-02

 

469 Seventh Avenue

 

Fee Interest

 

Penn Station

 

253,000

 

$

53,100,000

 

$

210

 

 

 

 

 

 

 

 

 

253,000

 

$

53,100,000

 

$

210

 

2003 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-03

 

50 West 23rd Street

 

Fee Interest

 

Chelsea

 

333,000

 

$

66,000,000

 

$

198

 

Jul-03

 

1370 Broadway

 

Fee Interest

 

Times Square South

 

255,000

 

$

58,500,000

 

$

229

 

Dec-03

 

321 West 44th Street

 

Fee Interest

 

Times Square

 

203,000

 

$

35,000,000

 

$

172

 

 

 

 

 

 

 

 

 

791,000

 

$

159,500,000

 

$

202

 

2004 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

May-04

 

1 Park Avenue (2)

 

Fee Interest

 

Grand Central South

 

913,000

 

$

318,500,000

 

$

349

 

Oct-04

 

17 Battery Place North

 

Fee Interest

 

Financial

 

419,000

 

$

70,000,000

 

$

167

 

Nov-04

 

1466 Broadway

 

Fee Interest

 

Times Square

 

289,000

 

$

160,000,000

 

$

554

 

 

 

 

 

 

 

 

 

1,621,000

 

$

548,500,000

 

$

338

 

2005 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Apr-05

 

1414 Avenue of the Americas

 

Fee Interest

 

Plaza District

 

111,000

 

$

60,500,000

 

$

545

 

Aug-05

 

180 Madison Avenue

 

Fee Interest

 

Grand Central

 

265,000

 

$

92,700,000

 

$

350

 

 

 

 

 

 

 

 

 

376,000

 

$

153,200,000

 

$

407

 

2006 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul-06

 

286 & 290 Madison Avenue

 

Fee Interest

 

Grand Central

 

149,000

 

$

63,000,000

 

$

423

 

Aug-06

 

1140 Avenue of the Americas

 

Leasehold Interest

 

Rockefeller Center

 

191,000

 

$

97,500,000

 

$

510

 

Dec-06

 

521 Fifth Avenue (3)

 

Leasehold Interest

 

Midtown

 

460,000

 

$

240,000,000

 

$

522

 

 

 

 

 

 

 

 

 

800,000

 

$

400,500,000

 

$

501

 

2007 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-07

 

1 Park Avenue

 

Fee Interest

 

Grand Central South

 

913,000

 

$

550,000,000

 

$

602

 

Mar-07

 

70 West 36th Street

 

Fee Interest

 

Garment

 

151,000

 

$

61,500,000

 

$

407

 

Jun-07

 

110 East 42nd Street

 

Fee Interest

 

Grand Central North

 

181,000

 

$

111,500,000

 

$

616

 

Jun-07

 

125 Broad Street

 

Fee Interest

 

Downtown

 

525,000

 

$

273,000,000

 

$

520

 

Jun-07

 

5 Madison Clock Tower

 

Fee Interest

 

Park Avenue South

 

267,000

 

$

200,000,000

 

$

749

 

Jul-07

 

292 Madison Avenue

 

Fee Interest

 

Grand Central South

 

187,000

 

$

140,000,000

 

$

749

 

Jul-07

 

1372 Broadway (4)

 

Fee Interest

 

Penn Station/Garment

 

508,000

 

$

335,000,000

 

$

659

 

Nov-07

 

470 Park Avenue South

 

Fee Interest

 

Park Avenue South/Flatiron

 

260,000

 

$

157,000,000

 

$

604

 

 

 

 

 

 

 

 

 

2,992,000

 

$

1,828,000,000

 

$

611

 

2008 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-08

 

440 Ninth Avenue

 

Fee Interest

 

Penn Station

 

339,000

 

$

160,000,000

 

$

472

 

May-08

 

1250 Broadway

 

Fee Interest

 

Penn Station

 

670,000

 

$

310,000,000

 

$

463

 

Oct-08

 

1372 Broadway (5)

 

Fee Interest

 

Penn Station/Garment

 

508,000

 

$

274,000,000

 

$

539

 

 

 

 

 

 

 

 

 

1,517,000

 

$

744,000,000

 

$

490

 

2010 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

May-10

 

1221 Avenue of the Americas (6)

 

Fee Interest

 

Rockefeller Center

 

2,550,000

 

$

1,280,000,000

 

$

502

 

Sep-10

 

19 West 44th Street

 

Fee Interest

 

Midtown

 

292,000

 

$

123,150,000

 

$

422

 

 

 

 

 

 

 

 

 

2,842,000

 

$

1,403,150,000

 

$

494

 

2011 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

May-11

 

28 West 44th Street

 

Fee Interest

 

Midtown

 

359,000

 

$

161,000,000

 

$

448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Aug-13

 

333 West 34th Street

 

Fee Interest

 

Penn Station

 

345,400

 

$

220,250,000

 

$

638

 

 


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

(2) Company sold a 75% JV interest in the property at an implied $318.5 million sales price.

(3) Company sold a 50% JV interest in the property at an implied $240.0 million sales price

(4) Company sold a 85% JV interest in the property at an implied $335.0 million sales price.

(5) Company sold a 15% JV interest in the property at an implied $274.0 million sales price.

(6) Company sold a 45% JV interest in the property at an implied $1.28 billion sales price.

 

47



 

SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997 - Suburban

 

 

 

 

 

 

 

 

 

 

 

% Leased

 

Acquisition

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable SF

 

at acquisition

 

12/31/2013

 

Price ($’s) (1)

 

2007 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-07

 

300 Main Street

 

Fee Interest

 

Stamford, Connecticut

 

130,000

 

92.5

 

N/A

 

$

15,000,000

 

Jan-07

 

399 Knollwood Road

 

Fee Interest

 

White Plains, New York

 

145,000

 

96.6

 

N/A

 

$

31,600,000

 

Jan-07

 

Reckson - Connecticut Portfolio

 

Fee Interests / Leasehold Interest

 

Stamford, Connecticut

 

1,369,800

 

88.9

 

84.2

 

$

490,750,000

 

Jan-07

 

Reckson - Westchester Portfolio

 

Fee Interests / Leasehold Interest

 

Westchester

 

2,346,100

 

90.6

 

78.1

 

$

570,190,000

 

Apr-07

 

Jericho Plazas - 20.26% JV

 

Fee Interest

 

Jericho, New York

 

640,000

 

98.4

 

89.9

 

$

210,000,000

 

Jun-07

 

1010 Washington Boulevard

 

Fee Interest

 

Stamford, Connecticut

 

143,400

 

95.6

 

65.3

 

$

38,000,000

 

Jun-07

 

500 West Putnam Avenue

 

Fee Interest

 

Greenwich, Connecticut

 

121,500

 

94.4

 

57.0

 

$

56,000,000

 

Jul-07

 

16 Court Street - 35% JV

 

Fee Interest

 

Brooklyn, New York

 

317,600

 

80.6

 

87.2

 

$

107,500,000

 

Aug-07

 

150 Grand Street

 

Fee Interest

 

White Plains, New York

 

85,000

 

52.9

 

31.5

 

$

6,700,000

 

Sep-07

 

The Meadows - 25% JV

 

Fee Interest

 

Rutherford, New Jersey

 

582,100

 

81.3

 

84.2

 

$

111,500,000

 

 

 

 

 

 

 

 

 

5,880,500

 

 

 

 

 

$

1,637,240,000

 

2013 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apr-13

 

16 Court Street - additional JV interest

 

Fee Interest

 

Brooklyn, New York

 

317,600

 

84.9

 

87.2

 

$

96,200,000

 

 

 

 

 

 

 

 

 

317,600

 

 

 

 

 

$

96,200,000

 

 

SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1997 - Suburban

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

Sales

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable SF

 

Price ($’s)

 

Price ($’s/SF)

 

2008 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Oct-08

 

100 & 120 White Plains Road

 

Fee Interest

 

Tarrytown, New York

 

211,000

 

$

48,000,000

 

$

227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2009 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-09

 

55 Corporate Drive

 

Fee Interest

 

Bridgewater, New Jersey

 

670,000

 

$

230,000,000

 

$

343

 

Aug-09

 

399 Knollwood Road

 

Fee Interest

 

White Plains, New York

 

145,000

 

$

20,767,307

 

$

143

 

 

 

 

 

 

 

 

 

815,000

 

$

250,767,307

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul-12

 

One Court Square

 

Fee Interest

 

Long Island City, New York

 

1,402,000

 

$

481,100,000

 

$

343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep-13

 

300 Main Street

 

Fee Interest

 

Stamford, Connecticut

 

130,000

 

$

13,500,000

 

$

104

 

 


(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties.

 

48



 

 

 

SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997 - Retail, Residential, Development / Redevelopment, Land & West Coast

 

 

 

 

 

 

 

 

 

 

 

 

 

% Leased

 

Acquisition

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable SF

 

at acquisition

 

12/31/2013

 

Price ($’s) (1)

 

2005 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul-05

 

1551-1555 Broadway - 10% JV

 

Fee Interest

 

Times Square

 

25,600

 

N/A

 

N/A

 

$

85,000,000

 

Jul-05

 

21 West 34th Street - 50% JV

 

Fee Interest

 

Herald Square

 

30,100

 

N/A

 

100.0

 

$

17,500,000

 

Sep-05

 

141 Fifth Avenue - 50% JV

 

Fee Interest

 

Flatiron

 

21,500

 

N/A

 

N/A

 

$

13,250,000

 

Nov-05

 

1604 Broadway - 63% JV

 

Leasehold Interest

 

Times Square

 

29,876

 

17.2

 

23.7

 

$

4,400,000

 

Dec-05

 

379 West Broadway - 45% JV

 

Leasehold Interest

 

Cast Iron/Soho

 

62,006

 

100.0

 

N/A

 

$

19,750,000

 

 

 

 

 

 

 

 

 

169,082

 

 

 

 

 

$

139,900,000

 

2006 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-06

 

25-29 West 34th Street - 50% JV

 

Fee Interest

 

Herald Square/Penn Station

 

41,000

 

55.8

 

N/A

 

$

30,000,000

 

Sep-06

 

717 Fifth Avenue - 32.75% JV

 

Fee Interest

 

Midtown/Plaza District

 

119,550

 

63.1

 

89.4

 

$

251,900,000

 

 

 

 

 

 

 

 

 

160,550

 

 

 

 

 

$

281,900,000

 

2007 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aug-07

 

180 Broadway - 50% JV

 

Fee Interest

 

Cast Iron / Soho

 

24,300

 

85.2

 

100.0

 

$

13,600,000

 

Apr-07

 

Two Herald Square - 55% JV

 

Fee Interest

 

Herald Square

 

N/A

 

N/A

 

N/A

 

$

225,000,000

 

Jul-07

 

885 Third Avenue - 55% JV

 

Fee Interest

 

Midtown / Plaza District

 

N/A

 

N/A

 

N/A

 

$

317,000,000

 

 

 

 

 

 

 

 

 

24,300

 

 

 

 

 

$

555,600,000

 

2008 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-08

 

125 Chubb Way

 

Fee Interest

 

Lyndhurst, New Jersey

 

278,000

 

 

59.4

 

$

29,364,000

 

Feb-08

 

182 Broadway - 50% JV

 

Fee Interest

 

Cast Iron / Soho

 

46,280

 

83.8

 

100.0

 

$

30,000,000

 

 

 

 

 

 

 

 

 

324,280

 

 

 

 

 

$

59,364,000

 

2010 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nov-10

 

Williamsburg Terrace

 

Fee Interest

 

Brooklyn, New York

 

52,000

 

100.0

 

100.0

 

$

18,000,000

 

Dec-10

 

11 West 34th Street - 30% JV

 

Fee Interest

 

Herald Square/Penn Station

 

17,150

 

100.0

 

100.0

 

$

10,800,000

 

Dec-10

 

7 Renaissance Square - 50% JV

 

Fee Interest

 

White Plains, New York

 

65,641

 

 

46.6

 

$

4,000,000

 

Dec-10

 

Two Herald Square - 45% (2)

 

Fee Interest

 

Herald Square

 

354,400

 

100.0

 

100.0

 

$

247,500,000

 

Dec-10

 

885 Third Avenue - 45% (2)

 

Fee Interest

 

Midtown / Plaza District

 

607,000

 

100.0

 

100.0

 

$

352,000,000

 

Dec-10

 

292 Madison Avenue

 

Fee Interest

 

Grand Central South

 

203,800

 

N/A

 

N/A

 

$

78,300,000

 

 

 

 

 

 

 

 

 

1,299,991

 

 

 

 

 

$

710,600,000

 

2011 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-11

 

3 Columbus Circle - 48.9%

 

Fee Interest

 

Columbus Circle

 

741,500

 

20.1

 

70.7

 

$

500,000,000

 

Aug-11

 

1552-1560 Broadway - 50%

 

Fee Interest

 

Times Square

 

35,897

 

59.7

 

 

$

136,550,000

 

Sep-11

 

747 Madison Avenue - 33.33%

 

Fee Interest

 

Plaza District

 

10,000

 

100.0

 

59.1

 

$

66,250,000

 

 

 

 

 

 

 

 

 

787,397

 

 

 

 

 

$

702,800,000

 

2012 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-12

 

DFR Residential and Retail Portfolio - 80%

 

Fee Interests / Leasehold Interest

 

Plaza District, Upper East Side

 

489,882

 

95.1

 

93.5

 

$

193,000,000

 

Jan-12

 

724 Fifth Avenue - 50%

 

Fee Interest

 

Plaza District

 

65,010

 

92.9

 

76.6

 

$

223,000,000

 

Jul-12

 

West Coast Office Portfolio - 27.63%

 

Fee Interest

 

 

 

4,473,603

 

76.3

 

77.9

 

$

880,103,924

 

Aug-12

 

33 Beekman Street - 45.9%

 

Fee Interest

 

Downtown

 

 

 

 

$

31,160,000

 

Sep-12

 

635 Sixth Avenue

 

Fee Interest

 

Midtown South

 

104,000

 

 

 

$

83,000,000

 

Oct-12

 

1080 Amsterdam - 87.5%

 

Leasehold Interest

 

Upper West Side

 

82,250

 

2.2

 

2.2

 

$

 

Dec-12

 

21 East 66th Street - 32.28%

 

Fee Interest

 

Plaza District

 

16,736

 

100.0

 

100.0

 

$

75,000,000

 

Dec-12

 

985-987 Third Avenue

 

Fee Interest

 

Upper East Side

 

13,678

 

 

 

$

18,000,000

 

Dec-12

 

131-137 Spring Street

 

Fee Interest

 

Soho

 

68,342

 

100.0

 

100.0

 

$

122,300,000

 

 

 

 

 

 

 

 

 

5,313,501

 

 

 

 

 

$

1,625,563,924

 

2013 Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-13

 

248-252 Bedford Avenue - 90%

 

Fee Interest

 

Brooklyn, New York

 

66,611

 

 

85.7

 

$

54,900,000

 

Nov-13

 

650 Fifth Avenue - 50%

 

Leasehold Interest

 

Plaza District

 

32,324

 

63.6

 

63.6

 

$

 

Nov-13

 

315 West 33rd Street - The Olivia

 

Fee Interest

 

Penn Station

 

492,987

 

96.6

 

96.6

 

$

386,775,000

 

Nov-13

 

Fifth Avenue Retail Assemblage

 

Fee Interest

 

Plaza District

 

66,962

 

74.6

 

74.6

 

$

146,221,990

 

 

 

 

 

 

 

 

 

658,884

 

 

 

 

 

$

587,896,990

 

 

SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1997 - Retail, Residential, Development / Redevelopment, Land & West Coast

 

 

 

 

 

 

 

 

 

 

 

Sales

 

Sales

 

 

 

Property

 

Type of Ownership

 

Submarket

 

Net Rentable SF

 

Price ($’s)

 

Price ($’s/SF)

 

2011 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep-11

 

1551-1555 Broadway (3)

 

Fee Interest

 

Times Square

 

25,600

 

$

276,757,000

 

$

10,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-12

 

141 Fifth Avenue (4)

 

Fee Interest

 

Flatiron

 

13,000

 

$

46,000,000

 

$

3,538

 

Feb-12

 

292 Madison Avenue

 

Fee Interest

 

Grand Central South

 

203,800

 

$

85,000,000

 

$

417

 

Apr-12

 

379 West Broadway

 

Leasehold Interest

 

Cast Iron/Soho

 

62,006

 

$

48,500,000

 

$

782

 

Jun-12

 

717 Fifth Avenue (5)

 

Fee Interest

 

Midtown/Plaza District

 

119,550

 

$

617,583,774

 

$

5,166

 

Sep-12

 

3 Columbus Circle (6)

 

Fee Interest

 

Columbus Circle

 

214,372

 

$

143,600,000

 

$

670

 

 

 

 

 

 

 

 

 

612,728

 

$

940,683,774

 

 

 

2013 Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Feb-13

 

44 West 55th Street

 

Fee Interest

 

Plaza District

 

8,557

 

$

6,250,000

 

$

730

 

Jun-13

 

West Coast Office Portfolio

 

Fee Interest

 

Los Angeles, California

 

406,740

 

$

111,925,000

 

$

275

 

Aug-13

 

West Coast Office Portfolio

 

Fee Interest

 

Fountain Valley, California

 

302,037

 

$

66,993,750

 

$

222

 

Sep-13

 

West Coast Office Portfolio

 

Fee Interest

 

San Diego, California

 

110,511

 

$

45,400,000

 

$

411

 

Dec-13

 

27-29 West 34th Street

 

Fee Interest

 

Herald Square/Penn Station

 

15,600

 

$

70,052,158

 

$

4,491

 

 

 

 

 

 

 

 

 

843,445

 

$

300,620,908

 

 

 

 


(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties.

(2) Subject to long-term, third party net operating leases.

(3) Company sold our remaining 10% JV interest in the property at an implied $276.8 million sales price.

(4) Inclusive of the fee position which was acquired simultaneously with the sale pursuant to an option.

(5) Company sold 50% of its remaining interest after a promote. The Company retained a 10.92% interest in the property.

(6) The joint venture sold a 29% condominium interest in the property.

 

49



 

 

 

Executive & Senior Management

 

 

 

 

Stephen L. Green

Chairman of the Board

 

Marc Holliday

Chief Executive Officer

 

Andrew Mathias

President

 

James Mead

Chief Financial Officer

 

Andrew S. Levine

Chief Legal Officer

 

Steven M. Durels

Executive Vice President, Director of Leasing and Real Property

 

Edward V. Piccinich

Executive Vice President, Property Management and Construction

 

Neil H. Kessner

Executive Vice President, General Counsel - Real Property

 

David M. Schonbraun

Co-Chief Investment Officer

 

Isaac Zion

Co-Chief Investment Officer

 

Matthew J. DiLiberto

Chief Accounting Officer & Treasurer

 

50



 

 

 

ANALYST COVERAGE

 

 

 

 

ANALYST COVERAGE

 

Firm

 

Analyst

 

Phone

 

Email

Bank of America - Merrill Lynch

 

James C. Feldman

 

(212) 449-6339

 

james_feldman@ml.com

Barclays Capital

 

Ross Smotrich

 

(212) 526-2306

 

ross.smotrich@barcap.com

Cantor Fitzgerald

 

David Toti

 

(212) 915-1219

 

dtoti@cantor.com

Citigroup Smith Barney, Inc.

 

Michael Bilerman

 

(212) 816-1383

 

michael.bilerman@citigroup.com

Cowen and Company

 

James Sullivan

 

(646) 562-1380

 

james.sullivan@cowen.com

Deutsche Bank

 

Vin Chao

 

(212) 250-6799

 

vincent.chao@db.com

Goldman Sachs & Co.

 

Brad Burke

 

(917) 343-2082

 

brad.burke@gs.com

Green Street Advisors

 

Michael Knott

 

(949) 640-8780

 

mknott@greenstreetadvisors.com

ISI Group

 

Steve Sakwa

 

(212) 446-9462

 

ssakwa@isigrp.com

Jefferies & Company

 

Tayo Okusanya

 

(212) 336-7076

 

tokusanya@jefferies.com

JMP Securities

 

Mitchell Germain

 

(212) 906-3546

 

mgermain@jmpsecurities.com

JP Morgan Securities, Inc.

 

Anthony Paolone

 

(212) 622-6682

 

anthony.paolone@jpmorgan.com

KeyBanc Capital Markets

 

Jordan Sadler

 

(917) 368-2280

 

jsadler@keybanccm.com

Morgan Stanley

 

Vance H. Edelson

 

(212) 761-0078

 

vance.edelson@morganstanley.com

RW Baird

 

David Rodgers

 

(216) 737-7341

 

drodgers@rwbaird.com

Sandler O’Neill + Partners, L.P.

 

Alexander D. Goldfarb

 

(212) 466-7937

 

agoldfarb@sandleroneill.com

Stifel Nicolaus

 

John Guinee

 

(443) 224-1307

 

jwguinee@stifel.com

UBS Securities LLC

 

Ross T. Nussbaum

 

(212) 713-2484

 

ross.nussbaum@ubs.com

Wells Fargo Securities, LLC

 

Brendan Maiorana

 

(443) 263-6516

 

brendan.maiorana@wachovia.com

 

FIXED INCOME COVERAGE

 

Firm

 

Analyst

 

Phone

 

Email

Citigroup Inc.

 

Thomas Cook

 

(212) 723-1112

 

thomas.n.cook@citi.com

Goldman Sachs & Co.

 

Louise Pitt

 

(212) 902-3644

 

louise.pitt@gs.com

JP Morgan Securities, Inc.

 

Mark Streeter

 

(212) 834-6601

 

mark.streeter@jpmorgan.com

Merrill Lynch, Pierce, Fenner & Smith Inc.

 

Tom Truxillo

 

(980) 386-5212

 

thomas.c.truxillo_jr@baml.com

Wells Fargo Securities, LLC

 

Thierry B. Perrein

 

(704) 715-8455

 

thierry.perrein@wellsfargo.com

 

SL Green Realty Corp. is followed by the analysts 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.

 

51



 

 

 

SUPPLEMENTAL DEFINITIONS

 

 

 

 

Adjusted EBITDA is calculated by adding income taxes, loan loss reserves and our share of joint venture depreciation and amortization to operating income.

 

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.

 

Fixed charge is the total payments for interest, principal amortization, ground leases and preferred stock dividend.

 

Fixed charge coverage is adjusted EBITDA divided by fixed charge.

 

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 under the White Paper approved by the Board of Governors of NAREIT in April 2002, as amended, as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring, sales of properties and real estate related impairment charges, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

 

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.

 

Percentage leased represents the percentage of leased square feet, including month-to-month leases, to total rentable square feet owned, 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 in the same manner 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 TIs and LCs are tenant improvements, lease commissions, and other leasing costs incurred during leasing of second generation 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 at liquidation value. SLG’s share of total debt includes total consolidated debt plus SLG’s pro rata share of the debt of unconsolidated joint ventures less 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 an interest (e.g. joint ventures).

 

52