SL Green Realty Corp. | Maryland | 13-3956755 |
SL Green Operating Partnership, L.P. | Delaware | 13-3960938 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o | (Do not check if a smaller reporting company) | ||
Smaller Reporting Company | o | Emerging Growth Company | o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Large accelerated filer | o | Accelerated filer | o | |
Non-accelerated filer | x | (Do not check if a smaller reporting company) | ||
Smaller Reporting Company | o | Emerging Growth Company | o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
• | Combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | Combined reports eliminate duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company's disclosure applies to both the Company and the Operating Partnership; and |
• | Combined reports create time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
• | consolidated financial statements; |
• | the following notes to the consolidated financial statements: |
◦ | Note 11, Noncontrolling Interests on the Company’s Consolidated Financial Statements; |
◦ | Note 12, Stockholders' Equity of the Company; |
◦ | Note 13, Partners' Capital of the Operating Partnership. |
PART I. FINANCIAL INFORMATION | ||
FINANCIAL STATEMENTS OF SL GREEN REALTY CORP. | ||
Consolidated Balance Sheets as of June 30, 2017 (unaudited) and December 31, 2016 | ||
Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 (unaudited) | ||
Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2017 and 2016 (unaudited) | ||
Consolidated Statement of Equity for the six months ended June 30, 2017 (unaudited) | ||
Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (unaudited) | ||
FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P. | ||
Consolidated Balance Sheets as of June 30, 2017 (unaudited) and December 31, 2016 | ||
Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 (unaudited) | ||
Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2017 and 2016 (unaudited) | ||
Consolidated Statement of Capital for the six months ended June 30, 2017 (unaudited) | ||
Consolidated Statements of Cash Flows for six months ended June 30, 2017 and 2016 (unaudited) | ||
PART II. | OTHER INFORMATION | |
June 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
Assets | |||||||
Commercial real estate properties, at cost: | |||||||
Land and land interests | $ | 2,936,879 | $ | 3,309,710 | |||
Building and improvements | 7,476,108 | 7,948,852 | |||||
Building leasehold and improvements | 1,441,587 | 1,437,325 | |||||
Properties under capital lease | 47,445 | 47,445 | |||||
11,902,019 | 12,743,332 | ||||||
Less: accumulated depreciation | (2,397,299 | ) | (2,264,694 | ) | |||
9,504,720 | 10,478,638 | ||||||
Assets held for sale | 119,224 | — | |||||
Cash and cash equivalents | 270,965 | 279,443 | |||||
Restricted cash | 109,959 | 90,524 | |||||
Investments in marketable securities | 29,524 | 85,110 | |||||
Tenant and other receivables, net of allowance of $17,677 and $16,592 in 2017 and 2016, respectively | 50,946 | 53,772 | |||||
Related party receivables | 23,725 | 15,856 | |||||
Deferred rents receivable, net of allowance of $23,270 and $25,203 in 2017 and 2016, respectively | 385,040 | 442,179 | |||||
Debt and preferred equity investments, net of discounts and deferred origination fees of $15,079 and $16,705 in 2017 and 2016, respectively | 1,986,413 | 1,640,412 | |||||
Investments in unconsolidated joint ventures | 2,219,371 | 1,890,186 | |||||
Deferred costs, net | 249,724 | 267,600 | |||||
Other assets | 360,096 | 614,067 | |||||
Total assets (1) | $ | 15,309,707 | $ | 15,857,787 | |||
Liabilities | |||||||
Mortgages and other loans payable, net | $ | 3,813,976 | $ | 4,073,830 | |||
Revolving credit facility, net | 195,125 | — | |||||
Unsecured term loan, net | 1,180,217 | 1,179,521 | |||||
Unsecured notes, net | 1,086,936 | 1,128,315 | |||||
Accrued interest payable | 36,478 | 36,052 | |||||
Other liabilities | 195,940 | 206,238 | |||||
Accounts payable and accrued expenses | 134,294 | 190,583 | |||||
Deferred revenue | 229,692 | 217,955 | |||||
Capital lease obligations | 42,480 | 42,132 | |||||
Deferred land leases payable | 2,911 | 2,583 | |||||
Dividend and distributions payable | 86,081 | 87,271 | |||||
Security deposits | 68,286 | 66,504 | |||||
Liabilities related to assets held for sale | 106 | — | |||||
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | |||||
Total liabilities (1) | 7,172,522 | 7,330,984 |
June 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
Commitments and contingencies | — | — | |||||
Noncontrolling interests in Operating Partnership | 487,660 | 473,882 | |||||
Preferred units | 301,885 | 302,010 | |||||
Equity | |||||||
SL Green stockholders' equity: | |||||||
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2017 and December 31, 2016 | 221,932 | 221,932 | |||||
Common stock, $0.01 par value, 160,000 shares authorized and 99,422 and 101,617 issued and outstanding at June 30, 2017 and December 31, 2016, respectively (including 1,055 shares held in treasury at June 30, 2017 and December 31, 2016) | 995 | 1,017 | |||||
Additional paid-in-capital | 5,391,038 | 5,624,545 | |||||
Treasury stock at cost | (124,049 | ) | (124,049 | ) | |||
Accumulated other comprehensive income | 14,354 | 22,137 | |||||
Retained earnings | 1,431,442 | 1,578,893 | |||||
Total SL Green stockholders' equity | 6,935,712 | 7,324,475 | |||||
Noncontrolling interests in other partnerships | 411,928 | 426,436 | |||||
Total equity | 7,347,640 | 7,750,911 | |||||
Total liabilities and equity | $ | 15,309,707 | $ | 15,857,787 | |||
1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $384.0 million and $412.3 million of land, $1.4 billion and $1.5 billion of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $47.4 million and $47.4 million of properties under capital lease, $311.8 million and $327.2 million of accumulated depreciation, $390.5 million and $289.0 million of other assets included in other line items, $626.7 million and $621.8 million of real estate debt, net, $2.5 million and $2.2 million of accrued interest payable, $42.5 million and $42.1 million of capital lease obligations, and $102.3 million and $118.0 million of other liabilities included in other line items as of June 30, 2017 and December 31, 2016, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | ||||||||||||||||
Rental revenue, net | $ | 279,407 | $ | 416,809 | $ | 560,736 | $ | 762,416 | ||||||||
Escalation and reimbursement | 42,620 | 48,616 | 86,812 | 94,227 | ||||||||||||
Investment income | 60,622 | 44,214 | 100,921 | 98,951 | ||||||||||||
Other income | 15,501 | 107,975 | 27,062 | 117,464 | ||||||||||||
Total revenues | 398,150 | 617,614 | 775,531 | 1,073,058 | ||||||||||||
Expenses | ||||||||||||||||
Operating expenses, including related party expenses of $5,262 and $9,436 in 2017 and $6,667 and $10,129 in 2016. | 70,852 | 75,324 | 145,358 | 154,844 | ||||||||||||
Real estate taxes | 60,945 | 62,124 | 122,013 | 123,798 | ||||||||||||
Ground rent | 8,308 | 8,307 | 16,616 | 16,615 | ||||||||||||
Interest expense, net of interest income | 64,856 | 89,089 | 130,478 | 183,761 | ||||||||||||
Amortization of deferred financing costs | 3,432 | 7,433 | 8,193 | 15,365 | ||||||||||||
Depreciation and amortization | 133,054 | 425,042 | 227,188 | 604,350 | ||||||||||||
Transaction related costs | 46 | 2,115 | 179 | 3,394 | ||||||||||||
Marketing, general and administrative | 24,256 | 24,484 | 48,399 | 48,516 | ||||||||||||
Total expenses | 365,749 | 693,918 | 698,424 | 1,150,643 | ||||||||||||
Income (loss) before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, (loss) gain on sale of real estate, net, depreciable real estate reserves, and (loss) gain on sale of investment in marketable securities | 32,401 | (76,304 | ) | 77,107 | (77,585 | ) | ||||||||||
Equity in net income from unconsolidated joint ventures | 3,412 | 5,841 | 10,026 | 15,937 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 13,089 | 33,448 | 15,136 | 43,363 | ||||||||||||
(Loss) gain on sale of real estate, net | (3,823 | ) | 196,580 | (3,256 | ) | 210,353 | ||||||||||
Depreciable real estate reserves | (29,064 | ) | (10,387 | ) | (85,336 | ) | (10,387 | ) | ||||||||
(Loss) gain on sale of investment in marketable securities | — | (83 | ) | 3,262 | (83 | ) | ||||||||||
Net income | 16,015 | 149,095 | 16,939 | 181,598 | ||||||||||||
Net income attributable to noncontrolling interests: | ||||||||||||||||
Noncontrolling interests in the Operating Partnership | (419 | ) | (5,586 | ) | (895 | ) | (6,508 | ) | ||||||||
Noncontrolling interests in other partnerships | (786 | ) | (3,435 | ) | 16,705 | (5,409 | ) | |||||||||
Preferred units distributions | (2,851 | ) | (2,880 | ) | (5,701 | ) | (5,528 | ) | ||||||||
Net income attributable to SL Green | 11,959 | 137,194 | 27,048 | 164,153 | ||||||||||||
Perpetual preferred stock dividends | (3,737 | ) | (3,737 | ) | (7,475 | ) | (7,475 | ) | ||||||||
Net income attributable to SL Green common stockholders | $ | 8,222 | $ | 133,457 | $ | 19,573 | $ | 156,678 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Amounts attributable to SL Green common stockholders: | ||||||||||||||||
Income (loss) before depreciable real estate reserves and gains (losses) on sale | $ | 27,156 | $ | (77,056 | ) | $ | 89,818 | $ | (76,947 | ) | ||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 12,517 | 32,058 | 14,474 | 41,634 | ||||||||||||
(Loss) gain on sale of real estate, net | (3,656 | ) | 188,410 | (3,114 | ) | 201,964 | ||||||||||
Depreciable real estate reserves | (27,795 | ) | (9,955 | ) | (81,605 | ) | (9,973 | ) | ||||||||
Net income attributable to SL Green common stockholders | $ | 8,222 | $ | 133,457 | $ | 19,573 | $ | 156,678 | ||||||||
Basic earnings per share: | ||||||||||||||||
Income (loss) before depreciable real estate reserves and gains (losses) on sale | $ | 0.27 | $ | (0.77 | ) | $ | 0.90 | $ | (0.77 | ) | ||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 0.13 | 0.32 | 0.14 | 0.42 | ||||||||||||
(Loss) gain on sale of real estate, net | (0.04 | ) | 1.88 | (0.03 | ) | 2.02 | ||||||||||
Depreciable real estate reserves | (0.28 | ) | (0.10 | ) | (0.81 | ) | (0.10 | ) | ||||||||
Net income attributable to SL Green common stockholders | $ | 0.08 | $ | 1.33 | $ | 0.20 | $ | 1.57 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Income (loss) before depreciable real estate reserves and gains (losses) on sale | $ | 0.27 | $ | (0.77 | ) | $ | 0.89 | $ | (0.77 | ) | ||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 0.12 | 0.32 | 0.14 | 0.42 | ||||||||||||
(Loss) gain on sale of real estate, net | (0.04 | ) | 1.88 | (0.03 | ) | 2.01 | ||||||||||
Depreciable real estate reserves | (0.27 | ) | (0.10 | ) | (0.81 | ) | (0.10 | ) | ||||||||
Net income attributable to SL Green common stockholders | $ | 0.08 | $ | 1.33 | $ | 0.19 | $ | 1.56 | ||||||||
Dividends per share | $ | 0.775 | $ | 0.72 | $ | 1.55 | $ | 1.44 | ||||||||
Basic weighted average common shares outstanding | 99,900 | 100,134 | 100,268 | 100,093 | ||||||||||||
Diluted weighted average common shares and common share equivalents outstanding | 104,732 | 104,792 | 105,140 | 104,533 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income | $ | 16,015 | $ | 149,095 | $ | 16,939 | $ | 181,598 | ||||||||
Other comprehensive loss: | ||||||||||||||||
Change in net unrealized gain on derivative instruments, including SL Green's share of joint venture net unrealized gain on derivative instruments | (2,520 | ) | 257 | (3,595 | ) | (7,315 | ) | |||||||||
Change in unrealized gain on marketable securities | 263 | 354 | (4,487 | ) | (869 | ) | ||||||||||
Other comprehensive (loss) income | (2,257 | ) | 611 | (8,082 | ) | (8,184 | ) | |||||||||
Comprehensive income | 13,758 | 149,706 | 8,857 | 173,414 | ||||||||||||
Net (income) loss attributable to noncontrolling interests and preferred units distributions | (4,056 | ) | (11,901 | ) | 10,109 | (17,445 | ) | |||||||||
Other comprehensive loss attributable to noncontrolling interests | 100 | 53 | 299 | 375 | ||||||||||||
Comprehensive income attributable to SL Green | $ | 9,802 | $ | 137,858 | $ | 19,265 | $ | 156,344 |
SL Green Realty Corp. Stockholders | |||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||
Series I Preferred Stock | Shares | Par Value | Additional Paid- In-Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests | Total | |||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 221,932 | 100,562 | $ | 1,017 | $ | 5,624,545 | $ | (124,049 | ) | $ | 22,137 | $ | 1,578,893 | $ | 426,436 | $ | 7,750,911 | |||||||||||||||||
Net income (loss) | 27,048 | (16,705 | ) | 10,343 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (7,783 | ) | (7,783 | ) | |||||||||||||||||||||||||||||||
Preferred dividends | (7,475 | ) | (7,475 | ) | |||||||||||||||||||||||||||||||
DRSPP proceeds | 1 | 111 | 111 | ||||||||||||||||||||||||||||||||
Conversion of units of the Operating Partnership to common stock | 122 | 1 | 13,241 | 13,242 | |||||||||||||||||||||||||||||||
Reallocation of noncontrolling interest in the Operating Partnership | (12,712 | ) | (12,712 | ) | |||||||||||||||||||||||||||||||
Equity component of repurchased exchangeable senior notes | (18,824 | ) | (18,824 | ) | |||||||||||||||||||||||||||||||
Deferred compensation plan and stock award, net | (8 | ) | (1,943 | ) | (1,943 | ) | |||||||||||||||||||||||||||||
Amortization of deferred compensation plan | 15,487 | 15,487 | |||||||||||||||||||||||||||||||||
Repurchase of common stock | (2,448 | ) | (24 | ) | (253,173 | ) | (253,197 | ) | |||||||||||||||||||||||||||
Proceeds from stock options exercised | 138 | 1 | 11,594 | 11,595 | |||||||||||||||||||||||||||||||
Contributions to consolidated joint venture interests | 33,009 | 33,009 | |||||||||||||||||||||||||||||||||
Deconsolidation of partially owned entity | (30,203 | ) | (30,203 | ) | |||||||||||||||||||||||||||||||
Cash distributions to noncontrolling interests | (609 | ) | (609 | ) | |||||||||||||||||||||||||||||||
Cash distributions declared ($1.55 per common share, none of which represented a return of capital for federal income tax purposes) | (154,312 | ) | (154,312 | ) | |||||||||||||||||||||||||||||||
Balance at June 30, 2017 | $ | 221,932 | 98,367 | $ | 995 | $ | 5,391,038 | $ | (124,049 | ) | $ | 14,354 | $ | 1,431,442 | $ | 411,928 | $ | 7,347,640 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net income | $ | 16,939 | $ | 181,598 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 235,381 | 619,715 | |||||
Equity in net income from unconsolidated joint ventures | (10,026 | ) | (15,937 | ) | |||
Distributions of cumulative earnings from unconsolidated joint ventures | 12,388 | 15,260 | |||||
Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate | (15,136 | ) | (43,363 | ) | |||
Depreciable real estate reserves | 85,336 | 10,387 | |||||
Loss (gain) on sale of real estate, net | 3,256 | (210,353 | ) | ||||
(Gain) loss on sale of investments in marketable securities | (3,262 | ) | 83 | ||||
Deferred rents receivable | (23,237 | ) | 53,042 | ||||
Other non-cash adjustments (1) | 17,551 | (164,276 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Restricted cash—operations | 5,023 | (10,069 | ) | ||||
Tenant and other receivables | 1,447 | 4,820 | |||||
Related party receivables | (7,869 | ) | (2,386 | ) | |||
Deferred lease costs | (23,560 | ) | (31,951 | ) | |||
Other assets | 680 | 4,362 | |||||
Accounts payable, accrued expenses, other liabilities and security deposits | (10,660 | ) | (33,635 | ) | |||
Deferred revenue and land leases payable | 29,471 | (3,919 | ) | ||||
Net cash provided by operating activities | 313,722 | 373,378 | |||||
Investing Activities | |||||||
Acquisitions of real estate property | (19 | ) | (37,728 | ) | |||
Additions to land, buildings and improvements | (165,262 | ) | (157,118 | ) | |||
Escrowed cash—capital improvements/acquisition deposits/deferred purchase price | 11,980 | 76,220 | |||||
Investments in unconsolidated joint ventures | (93,182 | ) | (25,389 | ) | |||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 93,688 | 161,413 | |||||
Net proceeds from disposition of real estate/joint venture interest | 23,082 | 1,916,312 | |||||
Proceeds from sale or redemption of marketable securities | 54,363 | 5,180 | |||||
Purchases of marketable securities | — | (331 | ) | ||||
Other investments | 3,014 | (2,987 | ) | ||||
Origination of debt and preferred equity investments | (854,577 | ) | (227,196 | ) | |||
Repayments or redemption of debt and preferred equity investments | 663,140 | 418,371 | |||||
Net cash (used in) provided by investing activities | (263,773 | ) | 2,126,747 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Financing Activities | |||||||
Proceeds from mortgages and other loans payable | $ | 779,642 | $ | 250,514 | |||
Repayments of mortgages and other loans payable | (693,243 | ) | (1,663,616 | ) | |||
Proceeds from revolving credit facility and senior unsecured notes | 1,072,800 | 700,000 | |||||
Repayments of revolving credit facility and senior unsecured notes | (875,697 | ) | (1,664,296 | ) | |||
Proceeds from stock options exercised and DRIP issuance | 11,706 | 4,431 | |||||
Repurchase of common stock | (211,599 | ) | — | ||||
Redemption of preferred stock | (125 | ) | (2,849 | ) | |||
Distributions to noncontrolling interests in other partnerships | (609 | ) | (9,866 | ) | |||
Contributions from noncontrolling interests in other partnerships | 33,009 | 1,434 | |||||
Distributions to noncontrolling interests in the Operating Partnership | (7,112 | ) | (6,009 | ) | |||
Dividends paid on common and preferred stock | (168,678 | ) | (156,234 | ) | |||
Other obligations related to loan participations | 10,000 | 76,500 | |||||
Deferred loan costs and capitalized lease obligation | (8,521 | ) | (9,307 | ) | |||
Net cash used in financing activities | (58,427 | ) | (2,479,298 | ) | |||
Net (decrease) increase in cash and cash equivalents | (8,478 | ) | 20,827 | ||||
Cash and cash equivalents at beginning of year | 279,443 | 255,399 | |||||
Cash and cash equivalents at end of period | $ | 270,965 | $ | 276,226 | |||
(1) Included in Other non-cash adjustments is $172.4 million for the six months ended June 30, 2016 for the amortization of the below-market lease at 388-390 Greenwich Street as a result of the tenant exercising their option to purchase the property and entering into an agreement to accelerate the sale. | |||||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||||||
Issuance of units in the Operating Partnership | $ | 20,824 | $ | 51,647 | |||
Redemption of units in the Operating Partnership for stock | 13,242 | 11,795 | |||||
Derivative instruments at fair value | 6,766 | 7,701 | |||||
Exchange of debt investment for equity in joint venture | — | 68,581 | |||||
Issuance of preferred units relating to a real estate acquisition | — | 22,793 | |||||
Tenant improvements and capital expenditures payable | 7,210 | 11,637 | |||||
Fair value adjustment to noncontrolling interest in Operating Partnership | 12,712 | 906 | |||||
Deconsolidation of subsidiaries | 328,644 | — | |||||
Transfer of assets related to assets held for sale | 173,918 | 1,931,217 | |||||
Transfer of liabilities related to assets held for sale | 149 | 1,612,008 | |||||
Deferred leasing payable | 800 | 1,222 | |||||
Removal of fully depreciated commercial real estate properties | 5,754 | 13,471 | |||||
Share repurchase payable | 41,598 | — | |||||
Bond repurchase payable | 65,416 | — | |||||
Proceeds from sale held in restricted cash | 38,166 | — |
June 30, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Commercial real estate properties, at cost: | ||||||||
Land and land interests | $ | 2,936,879 | $ | 3,309,710 | ||||
Building and improvements | 7,476,108 | 7,948,852 | ||||||
Building leasehold and improvements | 1,441,587 | 1,437,325 | ||||||
Properties under capital lease | 47,445 | 47,445 | ||||||
11,902,019 | 12,743,332 | |||||||
Less: accumulated depreciation | (2,397,299 | ) | (2,264,694 | ) | ||||
9,504,720 | 10,478,638 | |||||||
Assets held for sale | 119,224 | — | ||||||
Cash and cash equivalents | 270,965 | 279,443 | ||||||
Restricted cash | 109,959 | 90,524 | ||||||
Investments in marketable securities | 29,524 | 85,110 | ||||||
Tenant and other receivables, net of allowance of $17,677 and $16,592 in 2017 and 2016, respectively | 50,946 | 53,772 | ||||||
Related party receivables | 23,725 | 15,856 | ||||||
Deferred rents receivable, net of allowance of $23,270 and $25,203 in 2017 and 2016, respectively | 385,040 | 442,179 | ||||||
Debt and preferred equity investments, net of discounts and deferred origination fees of $15,079 and $16,705 in 2017 and 2016, respectively | 1,986,413 | 1,640,412 | ||||||
Investments in unconsolidated joint ventures | 2,219,371 | 1,890,186 | ||||||
Deferred costs, net | 249,724 | 267,600 | ||||||
Other assets | 360,096 | 614,067 | ||||||
Total assets (1) | $ | 15,309,707 | $ | 15,857,787 | ||||
Liabilities | ||||||||
Mortgages and other loans payable, net | $ | 3,813,976 | $ | 4,073,830 | ||||
Revolving credit facility, net | 195,125 | — | ||||||
Unsecured term loan, net | 1,180,217 | 1,179,521 | ||||||
Unsecured notes, net | 1,086,936 | 1,128,315 | ||||||
Accrued interest payable | 36,478 | 36,052 | ||||||
Other liabilities | 195,940 | 206,238 | ||||||
Accounts payable and accrued expenses | 134,294 | 190,583 | ||||||
Deferred revenue | 229,692 | 217,955 | ||||||
Capital lease obligations | 42,480 | 42,132 | ||||||
Deferred land leases payable | 2,911 | 2,583 | ||||||
Dividend and distributions payable | 86,081 | 87,271 | ||||||
Security deposits | 68,286 | 66,504 | ||||||
Liabilities related to assets held for sale | 106 | — | ||||||
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | ||||||
Total liabilities (1) | 7,172,522 | 7,330,984 | ||||||
Commitments and contingencies | — | — | ||||||
Limited partner interests in SLGOP (4,562 and 4,364 limited partner common units outstanding at June 30, 2017 and December 31, 2016, respectively) | 487,660 | 473,882 | ||||||
Preferred units | 301,885 | 302,010 |
June 30, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Capital | ||||||||
SLGOP partners' capital: | ||||||||
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2017 and December 31, 2016 | 221,932 | 221,932 | ||||||
SL Green partners' capital (1,029 and 1,049 general partner common units and 97,338 and 99,513 limited partner common units outstanding at June 30, 2017 and December 31, 2016, respectively) | 6,699,426 | 7,080,406 | ||||||
Accumulated other comprehensive income | 14,354 | 22,137 | ||||||
Total SLGOP partners' capital | 6,935,712 | 7,324,475 | ||||||
Noncontrolling interests in other partnerships | 411,928 | 426,436 | ||||||
Total capital | 7,347,640 | 7,750,911 | ||||||
Total liabilities and capital | $ | 15,309,707 | $ | 15,857,787 | ||||
1) The Operating Partnership's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs: $384.0 million and $412.3 million of land, $1.4 billion and $1.5 billion of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $47.4 million and $47.4 million of properties under capital lease, $311.8 million and $327.2 million of accumulated depreciation, $390.5 million and $289.0 million of other assets included in other line items, $626.7 million and $621.8 million of real estate debt, net, $2.5 million and $2.2 million of accrued interest payable, $42.5 million and $42.1 million of capital lease obligations, and $102.3 million and $118.0 million of other liabilities included in other line items as of June 30, 2017 and December 31, 2016, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | ||||||||||||||||
Rental revenue, net | $ | 279,407 | $ | 416,809 | $ | 560,736 | $ | 762,416 | ||||||||
Escalation and reimbursement | 42,620 | 48,616 | 86,812 | 94,227 | ||||||||||||
Investment income | 60,622 | 44,214 | 100,921 | 98,951 | ||||||||||||
Other income | 15,501 | 107,975 | 27,062 | 117,464 | ||||||||||||
Total revenues | 398,150 | 617,614 | 775,531 | 1,073,058 | ||||||||||||
Expenses | ||||||||||||||||
Operating expenses, including related party expenses of $5,262 and $9,436 in 2017 and $6,667 and $10,129 in 2016. | 70,852 | 75,324 | 145,358 | 154,844 | ||||||||||||
Real estate taxes | 60,945 | 62,124 | 122,013 | 123,798 | ||||||||||||
Ground rent | 8,308 | 8,307 | 16,616 | 16,615 | ||||||||||||
Interest expense, net of interest income | 64,856 | 89,089 | 130,478 | 183,761 | ||||||||||||
Amortization of deferred financing costs | 3,432 | 7,433 | 8,193 | 15,365 | ||||||||||||
Depreciation and amortization | 133,054 | 425,042 | 227,188 | 604,350 | ||||||||||||
Transaction related costs | 46 | 2,115 | 179 | 3,394 | ||||||||||||
Marketing, general and administrative | 24,256 | 24,484 | 48,399 | 48,516 | ||||||||||||
Total expenses | 365,749 | 693,918 | 698,424 | 1,150,643 | ||||||||||||
Income (loss) before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, (loss) gain on sale of real estate, net, depreciable real estate reserves, and (loss) gain on sale of investment in marketable securities | 32,401 | (76,304 | ) | 77,107 | (77,585 | ) | ||||||||||
Equity in net income from unconsolidated joint ventures | 3,412 | 5,841 | 10,026 | 15,937 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 13,089 | 33,448 | 15,136 | 43,363 | ||||||||||||
(Loss) gain on sale of real estate, net | (3,823 | ) | 196,580 | (3,256 | ) | 210,353 | ||||||||||
Depreciable real estate reserves | (29,064 | ) | (10,387 | ) | (85,336 | ) | (10,387 | ) | ||||||||
(Loss) gain on sale of investment in marketable securities | — | (83 | ) | 3,262 | (83 | ) | ||||||||||
Net income | 16,015 | 149,095 | 16,939 | 181,598 | ||||||||||||
Noncontrolling interests in other partnerships | (786 | ) | (3,435 | ) | 16,705 | (5,409 | ) | |||||||||
Preferred units distributions | (2,851 | ) | (2,880 | ) | (5,701 | ) | (5,528 | ) | ||||||||
Net income attributable to SLGOP | 12,378 | 142,780 | 27,943 | 170,661 | ||||||||||||
Perpetual preferred unit distributions | (3,737 | ) | (3,737 | ) | (7,475 | ) | (7,475 | ) | ||||||||
Net income attributable to SLGOP common unitholders | $ | 8,641 | $ | 139,043 | $ | 20,468 | $ | 163,186 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Amounts attributable to SLGOP common unitholders: | ||||||||||||||||
Income (loss) before depreciable real estate reserves and gains (losses) on sale | $ | 28,439 | $ | 115,786 | $ | 93,924 | $ | (80,143 | ) | |||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 13,089 | 33,448 | 15,136 | 43,363 | ||||||||||||
(Loss) gain on sale of real estate, net | (3,823 | ) | 196 | (3,256 | ) | 210,353 | ||||||||||
Depreciable real estate reserves | (29,064 | ) | (10,387 | ) | (85,336 | ) | (10,387 | ) | ||||||||
Net income attributable to SLGOP common unitholders | $ | 8,641 | $ | 139,043 | $ | 20,468 | $ | 163,186 | ||||||||
Basic earnings per unit: | ||||||||||||||||
Income (loss) before depreciable real estate reserves and gains (losses) on sale | $ | 0.27 | $ | (0.77 | ) | $ | 0.90 | $ | (0.77 | ) | ||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 0.13 | 0.32 | 0.14 | 0.42 | ||||||||||||
(Loss) gain on sale of real estate, net | (0.04 | ) | 1.88 | (0.03 | ) | 2.02 | ||||||||||
Depreciable real estate reserves | (0.28 | ) | (0.10 | ) | (0.81 | ) | (0.10 | ) | ||||||||
Net income attributable to SLGOP common unitholders | $ | 0.08 | $ | 1.33 | $ | 0.20 | $ | 1.57 | ||||||||
Diluted earnings per unit: | ||||||||||||||||
Income (loss) before depreciable real estate reserves and gains (losses) on sale | $ | 0.27 | $ | (0.77 | ) | $ | 0.89 | $ | (0.77 | ) | ||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 0.12 | 0.32 | 0.14 | 0.42 | ||||||||||||
(Loss) gain on sale of real estate, net | (0.04 | ) | 1.88 | (0.03 | ) | 2.01 | ||||||||||
Depreciable real estate reserves | (0.27 | ) | (0.10 | ) | (0.81 | ) | (0.10 | ) | ||||||||
Net income attributable to SLGOP common unitholders | $ | 0.08 | $ | 1.33 | $ | 0.19 | $ | 1.56 | ||||||||
Dividends per unit | $ | 0.775 | $ | 0.72 | $ | 1.55 | $ | 1.44 | ||||||||
Basic weighted average common units outstanding | 104,462 | 104,476 | 104,852 | 104,251 | ||||||||||||
Diluted weighted average common units and common unit equivalents outstanding | 104,732 | 104,792 | 105,140 | 104,533 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income | $ | 16,015 | $ | 149,095 | $ | 16,939 | $ | 181,598 | ||||||||
Other comprehensive loss: | ||||||||||||||||
Change in net unrealized gain on derivative instruments, including SLGOP's share of joint venture net unrealized gain on derivative instruments | (2,520 | ) | 257 | (3,595 | ) | (7,315 | ) | |||||||||
Change in unrealized gain on marketable securities | 263 | 354 | (4,487 | ) | (869 | ) | ||||||||||
Other comprehensive loss | (2,257 | ) | 611 | (8,082 | ) | (8,184 | ) | |||||||||
Comprehensive (loss) income | 13,758 | 149,706 | 8,857 | 173,414 | ||||||||||||
Net loss (income) attributable to noncontrolling interests | (786 | ) | (3,435 | ) | 16,705 | (5,409 | ) | |||||||||
Other comprehensive loss attributable to noncontrolling interests | 100 | 53 | 299 | 375 | ||||||||||||
Comprehensive income attributable to SLGOP | $ | 13,072 | $ | 146,324 | $ | 25,861 | $ | 168,380 |
SL Green Operating Partnership Unitholders | |||||||||||||||||||||||
Partners' Interest | |||||||||||||||||||||||
Series I Preferred Units | Common Units | Common Unitholders | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | ||||||||||||||||||
Balance at December 31, 2016 | $ | 221,932 | 100,562 | $ | 7,080,406 | $ | 22,137 | $ | 426,436 | $ | 7,750,911 | ||||||||||||
Net income (loss) | 27,048 | (16,705 | ) | 10,343 | |||||||||||||||||||
Other comprehensive loss | (7,783 | ) | (7,783 | ) | |||||||||||||||||||
Preferred distributions | (7,475 | ) | (7,475 | ) | |||||||||||||||||||
DRSPP proceeds | 1 | 111 | 111 | ||||||||||||||||||||
Conversion of common units | 122 | 13,242 | 13,242 | ||||||||||||||||||||
Reallocation of noncontrolling interests in the operating partnership | (12,712 | ) | (12,712 | ) | |||||||||||||||||||
Equity component of repurchased exchangeable senior notes | (18,824 | ) | (18,824 | ) | |||||||||||||||||||
Deferred compensation plan and stock award, net | (8 | ) | (1,943 | ) | (1,943 | ) | |||||||||||||||||
Amortization of deferred compensation plan | 15,487 | 15,487 | |||||||||||||||||||||
Repurchase of common stock | (2,448 | ) | (253,197 | ) | (253,197 | ) | |||||||||||||||||
Contribution to consolidated joint venture interests | 33,009 | 33,009 | |||||||||||||||||||||
Deconsolidation of partially owned entity | (30,203 | ) | (30,203 | ) | |||||||||||||||||||
Contributions - proceeds from stock options exercised | 138 | 11,595 | 11,595 | ||||||||||||||||||||
Cash distributions to noncontrolling interests | (609 | ) | (609 | ) | |||||||||||||||||||
Cash distributions declared ($1.55 per common unit, none of which represented a return of capital for federal income tax purposes) | (154,312 | ) | (154,312 | ) | |||||||||||||||||||
Balance at June 30, 2017 | $ | 221,932 | 98,367 | $ | 6,699,426 | $ | 14,354 | $ | 411,928 | $ | 7,347,640 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net income | $ | 16,939 | $ | 181,598 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 235,381 | 619,715 | |||||
Equity in net income from unconsolidated joint ventures | (10,026 | ) | (15,937 | ) | |||
Distributions of cumulative earnings from unconsolidated joint ventures | 12,388 | 15,260 | |||||
Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate | (15,136 | ) | (43,363 | ) | |||
Depreciable real estate reserves | 85,336 | 10,387 | |||||
Loss (gain) on sale of real estate, net | 3,256 | (210,353 | ) | ||||
(Gain) loss on sale of investments in marketable securities | (3,262 | ) | 83 | ||||
Deferred rents receivable | (23,237 | ) | 53,042 | ||||
Other non-cash adjustments (1) | 17,551 | (164,276 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Restricted cash—operations | 5,023 | (10,069 | ) | ||||
Tenant and other receivables | 1,447 | 4,820 | |||||
Related party receivables | (7,869 | ) | (2,386 | ) | |||
Deferred lease costs | (23,560 | ) | (31,951 | ) | |||
Other assets | 680 | 4,362 | |||||
Accounts payable, accrued expenses, other liabilities and security deposits | (10,660 | ) | (33,635 | ) | |||
Deferred revenue and land leases payable | 29,471 | (3,919 | ) | ||||
Net cash provided by operating activities | 313,722 | 373,378 | |||||
Investing Activities | |||||||
Acquisitions of real estate property | (19 | ) | (37,728 | ) | |||
Additions to land, buildings and improvements | (165,262 | ) | (157,118 | ) | |||
Escrowed cash—capital improvements/acquisition deposits/deferred purchase price | 11,980 | 76,220 | |||||
Investments in unconsolidated joint ventures | (93,182 | ) | (25,389 | ) | |||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 93,688 | 161,413 | |||||
Net proceeds from disposition of real estate/joint venture interest | 23,082 | 1,916,312 | |||||
Proceeds from sale or redemption of marketable securities | 54,363 | 5,180 | |||||
Purchases of marketable securities | — | (331 | ) | ||||
Other investments | 3,014 | (2,987 | ) | ||||
Origination of debt and preferred equity investments | (854,577 | ) | (227,196 | ) | |||
Repayments or redemption of debt and preferred equity investments | 663,140 | 418,371 | |||||
Net cash (used in) provided by investing activities | (263,773 | ) | 2,126,747 | ||||
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Financing Activities | |||||||
Proceeds from mortgages and other loans payable | $ | 779,642 | $ | 250,514 | |||
Repayments of mortgages and other loans payable | (693,243 | ) | (1,663,616 | ) | |||
Proceeds from revolving credit facility and senior unsecured notes | 1,072,800 | 700,000 | |||||
Repayments of revolving credit facility and senior unsecured notes | (875,697 | ) | (1,664,296 | ) | |||
Proceeds from stock options exercised and DRIP issuance | 11,706 | 4,431 | |||||
Repurchase of common stock | (211,599 | ) | — | ||||
Redemption of preferred stock | (125 | ) | (2,849 | ) | |||
Distributions to noncontrolling interests in other partnerships | (609 | ) | (9,866 | ) | |||
Contributions from noncontrolling interests in other partnerships | 33,009 | 1,434 | |||||
Distributions paid on common and preferred units | (175,790 | ) | (162,243 | ) | |||
Other obligations related to loan participations | 10,000 | 76,500 | |||||
Deferred loan costs and capitalized lease obligation | (8,521 | ) | (9,307 | ) | |||
Net cash used in financing activities | (58,427 | ) | (2,479,298 | ) | |||
Net (decrease) increase in cash and cash equivalents | (8,478 | ) | 20,827 | ||||
Cash and cash equivalents at beginning of year | 279,443 | 255,399 | |||||
Cash and cash equivalents at end of period | $ | 270,965 | $ | 276,226 | |||
(1) Included in Other non-cash adjustments is $172.4 million for the six months ended June 30, 2016 for the amortization of the below-market lease at 388-390 Greenwich Street as a result of the tenant exercising their option to purchase the property and entering into an agreement to accelerate the sale. | |||||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||||||
Issuance of units in the Operating Partnership | $ | 20,824 | $ | 51,647 | |||
Redemption of units in the Operating Partnership for stock | 13,242 | 11,795 |