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):
October 19, 2017
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:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
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 [ ]
Item 2.02. Results of Operations and Financial Condition
Following the issuance of a press release on October 18, 2017 announcing SL Green Realty Corp.’s, or the Company, results for the quarter ended September 30, 2017, the Company has made available on its website 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 October 18, 2017, the Company issued a press release announcing its results for the quarter ended September 30, 2017.
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
Non-GAAP Supplemental Financial Measures
Funds from Operations (FFO)
FFO is a widely recognized non-GAAP 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 Generally Accepted Accounting Principles, or GAAP), excluding gains (or losses) from sales of properties, debt restructurings 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 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, and 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 calculated as FFO plus non-real estate depreciation, allowance for straight line credit loss, adjustment for straight line ground rent, non-cash deferred compensation, and 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 costs, and recurring building improvements.
FAD 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 for Real Estate (EBITDAre)
EBITDAre is a non-GAAP financial measure. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures.
The Company presents EBITDAre, because the Company believes that EBITDAre, 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. EBITDAre 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.
Net Operating Income (NOI) and Cash NOI
NOI is a non-GAAP financial measure that is calculated as operating income before transaction related costs, gains/losses on early extinguishment of debt, marketing general and administrative expenses and non-real estate revenue. Cash NOI is calculated by subtracting free rent (net of amortization), straight-line rent, FAS 141 rental income from NOI, while adding ground lease straight-line adjustment and the allowance for straight-line tenant credit loss.
The Company presents NOI and Cash NOI because the Company believes that these measures, when taken together with the corresponding GAAP financial measures and our reconciliations, provide investors with meaningful information regarding the operating performance of properties. When operating performance is compared across multiple periods, the investor is provided with information not immediately apparent from net income that is determined in accordance with GAAP. NOI and Cash NOI provide information on trends in the revenue generated and expenses incurred in operating our properties, unaffected by the cost of leverage, straight-line adjustments, depreciation, amortization, and other net income components. The Company uses these metrics internally as performance measures. 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
Debt to Market Capitalization is a non-GAAP measure that is calculated as the Company’s estimated market value 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 divided by consolidated debt.
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 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, such measure may not be comparable to those used by
other REITs that do not compute such measure 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 debt service 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 represent a common measure of the Company’s ability to service fixed cash payments; however, these ratios are not used as an alternative to cash flow from operating, financing and investing activities (determined in accordance with GAAP).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SL GREEN REALTY CORP. | |
/s/ Matthew J. DiLiberto | |
Matthew J. DiLiberto | |
Chief Financial Officer | |
Date: October 19, 2017 | |
Exhibit 99.1
CONTACT
Matt DiLiberto
Chief Financial Officer
(212) 594-2700
SL GREEN REALTY CORP. REPORTS THIRD QUARTER 2017 EPS OF $0.40 PER SHARE; AND FFO OF $1.49 PER SHARE
Financial and Operating Highlights
• | Net income attributable to common stockholders of $0.40 per share for the third quarter as compared to $0.34 per share for the same period in 2016. |
• | FFO of $1.49 per share for the third quarter compared to $1.63 per share for the same period in 2016. FFO for the third quarter of 2016 included $21.5 million, or $0.20 per share, of net non-recurring income. |
• | Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased 1.3% for the first nine months of 2017, or 1.9%, excluding lease termination income, as compared to the same period in the prior year. |
• | Signed long-term leases with DZ Bank and DVB Bank at One Vanderbilt Avenue for a total of 35,382 square feet. The 15-year leases cover the entire 26th floor of the 58-story skyscraper currently being constructed next to Grand Central Terminal. |
• | Signed 56 Manhattan office leases covering 489,160 square feet in the third quarter and 145 Manhattan office leases covering 1,149,904 square feet in the first nine months of 2017. The mark-to-market on signed Manhattan office leases was 4.0% higher for the third quarter and 11.0% higher for the first nine months over the previously fully escalated rents on the same spaces. |
• | Signed 20 Suburban office leases covering 120,034 square feet in the third quarter and 67 Suburban office leases covering 425,872 square feet in the first nine months of 2017. The mark-to-market on signed Suburban office leases was 3.7% lower for the third quarter and 2.5% higher for the first nine months over the previously fully escalated rents on the same spaces. |
• | Manhattan same-store occupancy, inclusive of leases signed but not yet commenced, increased by 40 basis points to 95.3% as of September 30, 2017. Suburban same-store occupancy, inclusive of leases signed but not yet commenced, increased by 130 basis points to 86.8% as of September 30, 2017. |
Investing Highlights
• | During the third quarter, the Company repurchased 1.0 million shares of common stock under the previously announced $1.0 billion share repurchase plan, at an average price of $101.67 per share. The Company has now acquired 3.4 million shares of its common stock under the plan at an average price of $102.92 per share. |
• | In October, the Company and private investment manager RXR Realty closed on the acquisition of a combined 48.7% interest in Worldwide Plaza based on a gross asset valuation of $1.725 billion. The acquisition allows the Company to expand its footprint on Manhattan's West Side through investing in a Class A asset that is fully leased to institutional tenants. |
• | In October, closed on the sale of 16 Court Street in Brooklyn, New York for a gross sale price of $171.0 million. The Company recognized net proceeds of $166.5 million. |
• | In September, closed on the sale of its remaining 10% interest in 102 Greene Street, a 9,200 square-foot retail property in SoHo, at a gross asset valuation of $43.5 million, or $4,728 per square foot. The Company recognized net proceeds of $4.3 million and a gain on sale of $0.3 million. |
• | Originated new debt and preferred equity investments totaling $63.4 million in the third quarter, all of which was retained at a yield of 9.2%. The carrying value of the Company’s debt and preferred equity investment portfolio totaled $2.15 billion as of September 30, 2017 at a weighted average current yield of 9.2%. |
Financing Highlights
• | Returned to the public unsecured debt markets with an issuance of $500.0 million of 5-year, 3.25% senior unsecured notes. |
• | Together with our joint venture partner, closed on a $1.2 billion refinancing of 280 Park Avenue, which bears interest at a floating rate of 1.73% over LIBOR. The new loan matures in 2024, as extended, and replaces the previous $900.0 million of indebtedness on the property. |
• | In conjunction with our acquisition of an interest in Worldwide Plaza, together with our joint venture partners, closed on a $1.2 billion financing of the property. The new loan has a term of 10 years and carries a fixed interest rate of 3.98%. |
• | Together with our joint venture partner, closed on a $225.0 million refinancing of 650 Fifth Avenue. The new mortgage has a 5-year term and carries a fixed interest rate of 4.539%. |
Summary
New York, NY, October 19 , 2017 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended September 30, 2017 of $38.9 million, or $0.40 per share, as compared to net income attributable to common stockholders of $34.3 million, or $0.34 per share, for the same quarter in 2016.
The Company also reported net income attributable to common stockholders for the nine months ended September 30, 2017 of $58.4 million, or $0.59 per share, as compared to net income attributable to common stockholders of $190.9 million, or $1.90 per share, for the same period in 2016. Net income attributable to common stockholders for the nine months ended September 30, 2017 includes $12.9 million, or $0.12 per share, of net gains recognized from the sale of real estate as compared to $254.3 million, or $2.43 per share, for the same period in 2016.
The Company reported funds from operations, or FFO, for the quarter ended September 30, 2017 of $152.9 million, or $1.49 per share, as compared to FFO for the same period in 2016 of $171.6 million, or $1.63 per share. FFO for the third quarter of 2016 included $41.1 million, or $0.39 per share, of additional income related to the recapitalization of a debt investment offset by $19.6 million, or $0.19 per share, of lost income and accounting write-offs related to space previously leased to Aeropostale at 1515 Broadway.
The Company also reported FFO for the nine months ended September 30, 2017 of $505.6 million, or $4.85 per share, as compared to FFO for the same period in 2016 of $719.1 million, or $6.86 per share. FFO for the first nine months of 2016 included $207.6 million, or $1.98 per share, of income related to the sale of 388-390 Greenwich Street, which was closed in the second quarter of 2016.
All per share amounts in this press release are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended September 30, 2017, the Company reported consolidated revenues and operating income of $374.6 million and $206.1 million, respectively, compared to $416.7 million and $232.8 million, respectively, for the same period in 2016.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 1.4% for the quarter ended September 30, 2017, or 1.7% excluding lease termination income, as compared to the same period in 2016. For the quarter, consolidated property same-store cash NOI increased by 0.2% to $159.3 million, while unconsolidated joint venture property same-store cash NOI increased by 8.6% to $29.1 million in 2017 as compared to the same period in 2016.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 1.3% for the nine months ended September 30, 2017, or 1.9% excluding lease termination income, as compared to the same period in 2016. For the nine months, consolidated property same-store cash NOI increased by 0.2% to $484.0 million, inclusive of the effect of expected tenant move-outs at 485 Lexington Avenue, 1515 Broadway and 220 E 42nd Street, while unconsolidated joint venture property same-store cash NOI increased by 8.3% to $87.2 million in 2017 as compared to the same period in 2016.
In the third quarter, the Company signed 56 office leases in its Manhattan portfolio totaling 489,160 square feet. Forty-four leases comprising 314,212 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 $70.97 per rentable square foot, representing a 4.0% increase over the previously fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the third quarter was 7.0 years and average tenant concessions were 4.0 months of free rent with a tenant improvement allowance of $57.99 per rentable square foot.
During the first nine months of 2017, the Company signed 145 office leases in its Manhattan portfolio totaling 1,149,904 square feet. One hundred five leases comprising 692,257 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 $71.86 per rentable square foot, representing a 11.0% increase over the previously fully escalated rents on the same office spaces. The
average lease term on the Manhattan office leases signed in the first nine months of 2017 was 8.3 years and average tenant concessions were 4.5 months of free rent with a tenant improvement allowance of $56.65 per rentable square foot.
Occupancy in the Company's Manhattan same-store portfolio increased to 95.3% as of September 30, 2017, inclusive of 571,442 square feet of leases signed but not yet commenced, as compared to 94.9% as of June 30, 2017.
In the third quarter, the Company signed 20 office leases in its Suburban portfolio totaling 120,034 square feet. Eight leases comprising 45,241 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 $34.47 per rentable square foot, representing a 3.7% decrease over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the third quarter was 6.6 years and average tenant concessions were 7.8 months of free rent with a tenant improvement allowance of $24.25 per rentable square foot.
During the first nine months of 2017, the Company signed 67 office leases in its Suburban portfolio totaling 425,872 square feet. Thirty-four leases comprising 188,712 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 $33.20 per rentable square foot, representing a 2.5% increase over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the first nine months of 2017 was 6.7 years and average tenant concessions were 6.1 months of free rent with a tenant improvement allowance of $28.13 per rentable square foot.
Occupancy in the Company's Suburban same-store portfolio increased to 86.8% as of September 30, 2017, inclusive of 67,639 square feet of leases signed but not yet commenced, as compared to 85.5% as of June 30, 2017.
Significant leases that were signed in the third quarter included:
• | New lease with Yelp Inc. for 39,565 square feet at 11 Madison Avenue, for 7.7 years; |
• | New lease with Phillips Nizer LLP for 38,243 square feet at 485 Lexington Avenue, for 10.7 years; |
• | New lease with Deutsche Zentral-Genossenschaftsbank and DVB Bank SE for 35,382 square feet at One Vanderbilt Avenue, for 15.0 years; |
• | New lease with Markel Service Incorporated for 27,508 square feet at 1185 Avenue of the Americas, for 10.4 years; |
• | New lease with Cardinia Real Estate LLC for 23,800 square feet at 1055 Washington Boulevard in Stamford, Connecticut, for 11.0 years; |
• | New lease with Josephson LLC for 22,742 square feet at 3 Columbus Circle, for 16.5 years; |
• | Renewal with Hoplite Capital Management LLC for 17,320 square feet at 810 Seventh Avenue, for 5.1 years; |
• | Renewal with Commerzbank Aktiengesellschaft NY for 15,830 square feet at 1100 King Street - 6 International Drive, Rye Brook, New York, for 5.0 years; |
Marketing, general and administrative, or MG&A, expenses for the three months ended September 30, 2017 were $24.0 million, or 5.1% of total combined revenues and an annualized 51 basis points of total assets, including our share of assets from unconsolidated joint ventures.
Investment Activity
During the third quarter, the Company repurchased 1.0 million shares of common stock under the previously announced $1.0 billion share repurchase plan, at an average price of $101.67 per share. The Company has now acquired 3.4 million shares of its common stock under the plan at an average price of $102.92 per share.
In October, the Company and private investment manager, RXR Realty, closed on the acquisition of a combined 48.7% interest in Worldwide Plaza based on a gross asset valuation of $1.725 billion. The property, which encompasses an entire block between 49th and 50th streets and between 8th and 9th avenue, consists of a 49-story, 1.8 million-square-foot Class A office tower, a 252,000 retail building with a parking garage, and a large open-air plaza. The acquisition allows the Company to expand its footprint on Manhattan's West Side through investing in a Class A asset that is fully leased to institutional tenants.
In October, the Company closed on the sale of 16 Court Street, a 317,600 square-foot office property located in Brooklyn, New York, for a gross sale price of $171.0 million. The Company recognized net proceeds of $166.5 million.
In September, the Company closed on the sale of its remaining 10% interest in 102 Greene Street, a 9,200 square-foot retail property in SoHo, at a gross asset valuation of $43.5 million, or $4,728 per square foot. The Company recognized net proceeds of $4.3 million and a gain on sale of $0.3 million.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity investment portfolio totaled $2.15 billion at September 30, 2017, including $2.02 billion of investments at a weighted average current yield of 9.3% that are classified in the debt and preferred equity line item on the balance sheet, and investments aggregating $0.13 billion at a weighted average current yield of 8.7% that are included in other balance sheet line items for accounting purposes. The weighted average yield of 9.3% excludes our investments in 2 Herald Square, which were moved to non-accrual status in August 2017. During the third quarter, the Company originated or acquired new debt and preferred equity investments totaling $63.4 million, all of which was retained and $56.2 million of which was funded, at a weighted average current yield of 9.2%. In the third quarter, the Company recorded $51.3 million of principal reductions from investments that were repaid, sold or syndicated.
Financing Activity
In October, the Company returned to the public unsecured debt markets with an issuance of $500.0 million of 3.25% senior unsecured notes due October 2022. The Company used $350.8 million of the net proceeds from the offering to repay the outstanding 3.00% Exchangeable Senior Notes that were due in October 2017. The remaining proceeds were used for the repayment of other corporate indebtedness.
In September, the Company, along with its joint venture partner, closed on the refinancing of 650 Fifth Avenue. The new $225.0 million mortgage has a 5-year term, carries a fixed interest rate of 4.539% and replaces the previous $86.5 million of mortgage indebtedness on the property.
In August, the Company, along with its joint venture partner, closed on the refinancing of 280 Park Avenue. The new $1.2 billion loan has a 7-year term, as extended, bears interest at a floating rate of 1.73% over LIBOR and replaces the previous $900.0 million of indebtedness on the property that bore interest at a floating rate of 2.00% over LIBOR.
In October, in conjunction with our acquisition of an interest in Worldwide Plaza, together with our joint venture partners, closed on a $1.2 billion financing of the property. The new loan has a term of 10 years and carries a fixed interest rate of 3.98%.
Dividends
In the third quarter of 2017, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:
• | $0.775 per share of common stock, which was paid on October 16, 2017 to shareholders of record on the close of business on October 2, 2017; and |
• | $0.40625 per share on the Company's 6.50% Series I Cumulative Redeemable Preferred Stock for the period July 15, 2017 through and including October 14, 2017, which was paid on October 16, 2017 to shareholders of record on the close of business on October 2, 2017, and reflects the regular quarterly dividend, which is the equivalent of an annualized dividend of $1.625 per share. |
Annual Institutional Investor Conference
The Company will host its Annual Institutional Investor Conference on Monday, December 4, 2017 in New York City beginning at 9:00am EST. For more information on the Conference, please email SLG2017@slgreen.com.
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, October 19, 2017 at 2:00 pm ET to discuss the financial results.
The supplemental data will be available prior to the quarterly conference call in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Financial Reports.”
The live conference call will be webcast in listen-only mode in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Presentations & Webcasts”. The conference may also be accessed by dialing toll-free (877) 312-8765 or international (419) 386-0002, and using passcode 89375556.
A replay of the call will be available 7 days after the call by dialing (855) 859-2056 using passcode 89375556. A webcast replay will also be available in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Presentations & Webcasts”.
Company Profile
SL Green Realty Corp., an S&P 500 company and New York City's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of September 30, 2017, SL Green held interests in 118 Manhattan buildings totaling 47.8 million square feet. This included ownership interests in 27.5 million square feet of Manhattan buildings and debt and preferred equity investments secured by 20.3 million square feet of buildings. In addition, SL Green held ownership interests in 27 suburban buildings totaling 4.3 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.
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 in 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.
SL GREEN REALTY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share data)
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenue, net | $ | 274,765 | $ | 281,482 | $ | 835,501 | $ | 1,043,898 | |||||||
Escalation and reimbursement | 44,749 | 53,130 | 131,561 | 147,357 | |||||||||||
Investment income | 47,820 | 75,396 | 148,741 | 174,347 | |||||||||||
Other income | 7,266 | 6,673 | 34,328 | 124,137 | |||||||||||
Total revenues | 374,600 | 416,681 | 1,150,131 | 1,489,739 | |||||||||||
Expenses: | |||||||||||||||
Operating expenses, including related party expenses of $5,505 and $14,941 in 2017 and $5,042 and $15,171 in 2016. | 75,927 | 79,425 | 221,285 | 234,269 | |||||||||||
Real estate taxes | 64,160 | 64,133 | 186,173 | 187,931 | |||||||||||
Ground rent | 8,307 | 8,338 | 24,923 | 24,953 | |||||||||||
Interest expense, net of interest income | 65,634 | 72,565 | 196,112 | 256,326 | |||||||||||
Amortization of deferred financing costs | 4,008 | 4,815 | 12,201 | 20,180 | |||||||||||
Depreciation and amortization | 91,728 | 112,665 | 318,916 | 717,015 | |||||||||||
Transaction related costs | 186 | 2,593 | 365 | 5,987 | |||||||||||
Marketing, general and administrative | 23,963 | 25,458 | 72,362 | 73,974 | |||||||||||
Total expenses | 333,913 | 369,992 | 1,032,337 | 1,520,635 | |||||||||||
Net income (loss) 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 real estate net, depreciable real estate reserves, and gain (loss) on sale of marketable securities | 40,687 | 46,689 | 117,794 | (30,896 | ) | ||||||||||
Equity in net income (loss) from unconsolidated joint ventures | 4,078 | (3,968 | ) | 14,104 | 11,969 | ||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 1,030 | 225 | 16,166 | 43,588 | |||||||||||
Gain (loss) on sale of real estate, net | — | 397 | (3,256 | ) | 210,750 | ||||||||||
Depreciable real estate reserves | — | — | (85,336 | ) | (10,387 | ) | |||||||||
Gain (loss) on sale of marketable securities | — | — | 3,262 | (83 | ) | ||||||||||
Net income | 45,795 | 43,343 | 62,734 | 224,941 | |||||||||||
Net income attributable to noncontrolling interests in the Operating Partnership | (1,812 | ) | (1,663 | ) | (2,707 | ) | (8,171 | ) | |||||||
Net loss (income) attributable to noncontrolling interests in other partnerships | 1,474 | (836 | ) | 18,179 | (6,245 | ) | |||||||||
Preferred unit distributions | (2,850 | ) | (2,854 | ) | (8,551 | ) | (8,382 | ) | |||||||
Net income attributable to SL Green | 42,607 | 37,990 | 69,655 | 202,143 | |||||||||||
Perpetual preferred stock dividends | (3,738 | ) | (3,738 | ) | (11,213 | ) | (11,213 | ) | |||||||
Net income attributable to SL Green common stockholders | $ | 38,869 | $ | 34,252 | $ | 58,442 | $ | 190,930 | |||||||
Earnings Per Share (EPS) | |||||||||||||||
Net income per share (Basic) | $ | 0.40 | $ | 0.34 | $ | 0.59 | $ | 1.91 | |||||||
Net income per share (Diluted) | $ | 0.40 | $ | 0.34 | $ | 0.59 | $ | 1.90 | |||||||
Funds From Operations (FFO) | |||||||||||||||
FFO per share (Basic) | $ | 1.49 | $ | 1.64 | $ | 4.86 | $ | 6.89 | |||||||
FFO per share (Diluted) | $ | 1.49 | $ | 1.63 | $ | 4.85 | $ | 6.86 | |||||||
Basic ownership interest | |||||||||||||||
Weighted average REIT common shares for net income per share | 97,783 | 100,233 | 99,431 | 100,140 | |||||||||||
Weighted average partnership units held by noncontrolling interests | 4,543 | 4,497 | 4,570 | 4,272 | |||||||||||
Basic weighted average shares and units outstanding | 102,326 | 104,730 | 104,001 | 104,412 | |||||||||||
Diluted ownership interest | |||||||||||||||
Weighted average REIT common share and common share equivalents | 98,027 | 100,646 | 99,710 | 100,489 | |||||||||||
Weighted average partnership units held by noncontrolling interests | 4,543 | 4,497 | 4,570 | 4,272 | |||||||||||
Diluted weighted average shares and units outstanding | 102,570 | 105,143 | 104,280 | 104,761 | |||||||||||
SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
September 30, | December 31, | ||||||
2017 | 2016 | ||||||
Assets | (Unaudited) | ||||||
Commercial real estate properties, at cost: | |||||||
Land and land interests | $ | 2,917,993 | $ | 3,309,710 | |||
Building and improvements | 7,468,436 | 7,948,852 | |||||
Building leasehold and improvements | 1,444,698 | 1,437,325 | |||||
Properties under capital lease | 47,445 | 47,445 | |||||
11,878,572 | 12,743,332 | ||||||
Less accumulated depreciation | (2,457,071 | ) | (2,264,694 | ) | |||
9,421,501 | 10,478,638 | ||||||
Assets held for sale | 127,663 | — | |||||
Cash and cash equivalents | 241,489 | 279,443 | |||||
Restricted cash | 107,763 | 90,524 | |||||
Investment in marketable securities | 28,802 | 85,110 | |||||
Tenant and other receivables, net of allowance of $18,365 and $16,592 in 2017 and 2016, respectively | 54,663 | 53,772 | |||||
Related party receivables | 24,068 | 15,856 | |||||
Deferred rents receivable, net of allowance of $21,257 and $25,203 in 2017 and 2016, respectively | 393,793 | 442,179 | |||||
Debt and preferred equity investments, net of discounts and deferred origination fees of $24,782 and $16,705 in 2017 and 2016, respectively | 2,020,739 | 1,640,412 | |||||
Investments in unconsolidated joint ventures | 2,045,796 | 1,890,186 | |||||
Deferred costs, net | 247,981 | 267,600 | |||||
Other assets | 395,612 | 614,067 | |||||
Total assets | $ | 15,109,870 | $ | 15,857,787 | |||
Liabilities | |||||||
Mortgages and other loans payable | $ | 3,845,061 | $ | 4,140,712 | |||
Revolving credit facility | 280,000 | — | |||||
Unsecured term loan | 1,183,000 | 1,183,000 | |||||
Unsecured notes | 1,068,562 | 1,133,957 | |||||
Deferred financing costs, net | (52,667 | ) | (82,258 | ) | |||
Total debt, net of deferred financing costs | 6,323,956 | 6,375,411 | |||||
Accrued interest payable | 34,367 | 36,052 | |||||
Other liabilities | 96,818 | 212,493 | |||||
Accounts payable and accrued expenses | 144,767 | 190,583 | |||||
Deferred revenue | 252,779 | 217,955 | |||||
Capitalized lease obligations | 42,660 | 42,132 | |||||
Deferred land leases payable | 3,075 | 2,583 | |||||
Dividend and distributions payable | 85,007 | 87,271 | |||||
Security deposits | 68,465 | 66,504 | |||||
Liabilities related to assets held for sale | 1,141 | — | |||||
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | |||||
Total liabilities | 7,153,035 | 7,330,984 | |||||
Commitments and contingencies | — | — | |||||
Noncontrolling interest in the Operating Partnership | 470,898 | 473,882 | |||||
Preferred units | 301,885 | 302,010 | |||||
Equity | |||||||
Stockholders’ equity: | |||||||
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both September 30, 2017 and December 31, 2016 | 221,932 | 221,932 | |||||
Common stock, $0.01 par value 160,000 shares authorized, 98,501 and 101,617 issued and outstanding at September 30, 2017 and December 31, 2016, respectively (including 1,055 held in Treasury at September 30, 2017 and December 31, 2016) | 985 | 1,017 | |||||
Additional paid-in capital | 5,294,500 | 5,624,545 | |||||
Treasury stock at cost | (124,049 | ) | (124,049 | ) | |||
Accumulated other comprehensive income | 14,185 | 22,137 | |||||
Retained earnings | 1,410,332 | 1,578,893 | |||||
Total SL Green Realty Corp. stockholders’ equity | 6,817,885 | 7,324,475 | |||||
Noncontrolling interests in other partnerships | 366,167 | 426,436 | |||||
Total equity | 7,184,052 | 7,750,911 | |||||
Total liabilities and equity | $ | 15,109,870 | $ | 15,857,787 | |||
SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited and in thousands, except per share data)
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Funds From Operations (FFO) Reconciliation: | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net income attributable to SL Green common stockholders | $ | 38,869 | $ | 34,252 | $ | 58,442 | $ | 190,930 | |||||||
Add: | |||||||||||||||
Depreciation and amortization | 91,728 | 112,665 | 318,916 | 717,015 | |||||||||||
Joint venture depreciation and noncontrolling interest adjustments | 23,517 | 23,349 | 72,936 | 42,191 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 338 | 2,499 | (15,472 | ) | 14,416 | ||||||||||
Less: | |||||||||||||||
Gain (loss) on sale of real estate | — | 397 | (3,256 | ) | 210,750 | ||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 1,030 | 225 | 16,166 | 43,588 | |||||||||||
Depreciable real estate reserve | — | — | (85,336 | ) | (10,387 | ) | |||||||||
Depreciation on non-rental real estate assets | 557 | 509 | 1,636 | 1,505 | |||||||||||
FFO attributable to SL Green common stockholders and noncontrolling interests | $ | 152,865 | $ | 171,634 | $ | 505,612 | $ | 719,096 | |||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Operating income and Same-store NOI Reconciliation: | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net income | $ | 45,795 | $ | 43,343 | $ | 62,734 | $ | 224,941 | |||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | (1,030 | ) | (225 | ) | (16,166 | ) | (43,588 | ) | |||||||
(Gain) loss on sale of real estate, net | — | (397 | ) | 3,256 | (210,750 | ) | |||||||||
Depreciable real estate reserves | — | — | 85,336 | 10,387 | |||||||||||
(Gain) loss on sale of marketable securities | — | — | (3,262 | ) | 83 | ||||||||||
Depreciation and amortization | 91,728 | 112,665 | 318,916 | 717,015 | |||||||||||
Interest expense, net of interest income | 65,634 | 72,565 | 196,112 | 256,326 | |||||||||||
Amortization of deferred financing costs | 4,008 | 4,815 | 12,201 | 20,180 | |||||||||||
Operating income | 206,135 | 232,766 | 659,127 | 974,594 | |||||||||||
Equity in net (income) loss from unconsolidated joint ventures | (4,078 | ) | 3,968 | (14,104 | ) | (11,969 | ) | ||||||||
Marketing, general and administrative expense | 23,963 | 25,458 | 72,362 | 73,974 | |||||||||||
Transaction related costs, net | 186 | 2,593 | 365 | 5,987 | |||||||||||
Investment income | (47,820 | ) | (75,396 | ) | (148,741 | ) | (174,347 | ) | |||||||
Non-building revenue | (2,704 | ) | (2,566 | ) | (19,259 | ) | (5,998 | ) | |||||||
Net operating income (NOI) | 175,682 | 186,823 | 549,750 | 862,241 | |||||||||||
Equity in net income (loss) from unconsolidated joint ventures | 4,078 | (3,968 | ) | 14,104 | 11,969 | ||||||||||
SLG share of unconsolidated JV depreciation and amortization | 28,819 | 23,515 | 91,320 | 53,915 | |||||||||||
SLG share of unconsolidated JV interest expense, net of interest income | 23,893 | 15,069 | 67,862 | 53,686 | |||||||||||
SLG share of unconsolidated JV amortization of deferred financing costs | 1,589 | 2,406 | 6,524 | 6,083 | |||||||||||
SLG share of unconsolidated JV loss on early extinguishment of debt | 3,819 | — | 3,819 | 972 | |||||||||||
SLG share of unconsolidated JV transaction related costs | — | 3,019 | 110 | 3,019 | |||||||||||
SLG share of unconsolidated JV investment income | (3,593 | ) | (4,601 | ) | (12,339 | ) | (11,700 | ) | |||||||
SLG share of unconsolidated JV non-building revenue | (906 | ) | (714 | ) | (2,984 | ) | (1,408 | ) | |||||||
NOI including SLG share of unconsolidated JVs | 233,381 | 221,549 | 718,166 | 978,777 | |||||||||||
NOI from other properties/affiliates | (28,017 | ) | (31,706 | ) | (95,531 | ) | (377,695 | ) | |||||||
Same-Store NOI | 205,364 | 189,843 | 622,635 | 601,082 | |||||||||||
Ground lease straight-line adjustment | 524 | 565 | 1,572 | 1,781 | |||||||||||
Straight-line and free rent | (9,855 | ) | (3,803 | ) | (30,308 | ) | (21,032 | ) | |||||||
Rental income - FAS 141 | (4,580 | ) | 2,704 | (13,832 | ) | (4,827 | ) | ||||||||
Joint Venture straight-line and free rent | (2,614 | ) | (3,063 | ) | (7,657 | ) | (11,957 | ) | |||||||
Joint Venture rental income - FAS 141 | (357 | ) | (429 | ) | (1,245 | ) | (1,312 | ) | |||||||
Same-store cash NOI | $ | 188,482 | $ | 185,817 | $ | 571,165 | $ | 563,735 | |||||||
SL GREEN REALTY CORP.
NON-GAAP FINANCIAL MEASURES - DISCLOSURES
(unaudited and in thousands, except per share data)
Funds from Operations (FFO)
FFO is a widely recognized non-GAAP 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 Generally Accepted Accounting Principles, or GAAP), excluding gains (or losses) from sales of properties, debt restructurings 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 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, and 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 calculated as FFO plus non-real estate depreciation, allowance for straight line credit loss, adjustment for straight line ground rent, non-cash deferred compensation, and 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 costs, and recurring building improvements.
FAD 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 for Real Estate (EBITDAre)
EBITDAre is a non-GAAP financial measure. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures.
The Company presents EBITDAre, because the Company believes that EBITDAre, 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. EBITDAre 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.
Net Operating Income (NOI) and Cash NOI
NOI is a non-GAAP financial measure that is calculated as operating income before transaction related costs, gains/losses on early extinguishment of debt, marketing general and administrative expenses and non-real estate revenue. Cash NOI is calculated by subtracting free rent (net of amortization), straight-line rent, FAS 141 rental income from NOI, while adding ground lease straight-line adjustment and the allowance for straight-line tenant credit loss.
The Company presents NOI and Cash NOI because the Company believes that these measures, when taken together with the corresponding GAAP financial measures and our reconciliations, provide investors with meaningful information regarding the operating performance of properties. When operating performance is compared across multiple periods, the investor is provided with information not immediately apparent from net income that is determined in accordance with GAAP. NOI and Cash NOI provide information on trends in the revenue generated and expenses incurred in operating our properties, unaffected by the cost of leverage, straight-line adjustments, depreciation, amortization, and other net income components. The Company uses these metrics internally as performance measures. 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
Debt to Market Capitalization is a non-GAAP measure that is calculated as the Company’s estimated market value 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 divided by consolidated debt.
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 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, such measure may not be comparable to those used by other REITs that do not compute such measure 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 debt service 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 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).
 | ||
 | ||
 | ||
SL Green Realty Corp. is a self-managed real estate investment trust, or REIT, with in-house capabilities in property management, acquisitions and dispositions, financing, development and redevelopment, construction and leasing.
As of September 30, 2017, the Company held interests in 118 Manhattan buildings totaling 47.8 million square feet. This included ownership interests in 27.5 million square feet of Manhattan buildings and debt and preferred equity investments secured by 20.3 million square feet of buildings. In addition, the Company held ownership interests in 27 suburban buildings totaling 4.3 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.
• | 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 212-594-2700.
Ratings
Ratings are not recommendations to buy, sell or hold the Company’s securities.
SLG Interest
We highlight to investors that 'SLG Share' or 'Share of JV' is computed by multiplying each financial statement line item by the Company's percentage ownership in the respective joint ventures and may not accurately depict the legal and economic implications of holding a non-controlling interest in the joint ventures.
Forward-looking Statement
This supplemental reporting package 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.
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 September 30, 2017 that will be released on Form 10-Q to be filed on or before November 1, 2017.
Supplemental Information | 2 | Third Quarter 2017 |
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TABLE OF CONTENTS | | |
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Supplemental Definitions | |||
Highlights | - | ||
Comparative Balance Sheets | |||
Comparative Statements of Operations | |||
Comparative Computation of FFO and FAD | |||
Consolidated Statement of Equity | |||
Joint Venture Statements | - | ||
Selected Financial Data | - | ||
Debt Summary Schedule | - | ||
Summary of Ground Lease Arrangements | |||
Debt and Preferred Equity Investments | - | ||
Selected Property Data | |||
Composition of Property Portfolio | - | ||
Largest Tenants | |||
Tenant Diversification | |||
Leasing Activity Summary | - | ||
Annual Lease Expirations | - | ||
Summary of Real Estate Acquisition/Disposition Activity | - | ||
Corporate Information | |||
Non-GAAP Disclosures and Reconciliations | |||
Analyst Coverage | |||
Supplemental Information | 3 | Third Quarter 2017 |
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SUPPLEMENTAL DEFINITIONS | | |
| ||
Annualized cash rent - Monthly base rent and escalations per the lease, as of a certain date, multiplied by 12.
Debt service coverage - Operating Income plus income taxes, loan loss reserves and our share of joint venture depreciation and amortization, divided by total interest and principal payments.
Debt to Market Capitalization Ratio - Debt to Market Capitalization is a non-GAAP measure that is calculated as the Company’s estimated market value 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 divided by consolidated debt.
Fixed charge - Total payments for interest, principal amortization, ground leases and preferred stock dividend.
Fixed charge coverage - Operating Income plus income taxes, loan loss reserves and our share of joint venture depreciation and amortization, divided by Fixed Charge.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) - EBITDAre is a non-GAAP financial measure. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures.
Funds from Operations (FFO) - FFO is a widely recognized non-GAAP 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 Generally Accepted Accounting Principles, or GAAP), excluding gains (or losses) from sales of properties, debt restructurings and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
Funds Available for Distribution (FAD) - FAD is a non-GAAP financial measure that is calculated as FFO plus non-real estate depreciation, allowance for straight line credit loss, adjustment for straight line ground rent, non-cash deferred compensation, and 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 costs, and recurring building improvements.
Junior Mortgage Participations - Subordinate interests in first mortgages.
Mezzanine Debt Loans - Loans secured by ownership interests.
Net Operating Income (NOI) and Cash NOI - NOI is a non-GAAP financial measure that is calculated as operating income before transaction related costs, gains/losses on early extinguishment of debt, marketing general and administrative expenses and non-real estate revenue. Cash NOI is calculated by subtracting free rent (net of amortization), straight-line rent, FAS 141 rental income from NOI, while adding ground lease straight-line adjustment and the allowance for straight-line tenant credit loss.
Percentage leased - 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 - Equity investments entitled to preferential returns that are senior to common equity.
Recurring capital expenditures - 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 - 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 Properties (Same-Store) - Same-Store refers to properties owned in the same manner during both the current and prior year, and excludes development properties prior to being stabilized for both the current and prior year.
Second generation TIs and LCs - 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 - 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. Market equity assumes conversion of all OP units into common stock.
Total square feet owned - The total square footage of properties either owned directly by SLG or in which SLG has an interest (e.g. joint ventures).
Supplemental Information | 4 | Third Quarter 2017 |
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THIRD QUARTER 2017 HIGHLIGHTS Unaudited | | |
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New York, NY, October 19 , 2017 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended September 30, 2017 of $38.9 million, or $0.40 per share, as compared to net income attributable to common stockholders of $34.3 million, or $0.34 per share, for the same quarter in 2016.
The Company also reported net income attributable to common stockholders for the nine months ended September 30, 2017 of $58.4 million, or $0.59 per share, as compared to net income attributable to common stockholders of $190.9 million, or $1.90 per share, for the same period in 2016. Net income attributable to common stockholders for the nine months ended September 30, 2017 includes $12.9 million, or $0.12 per share, of net gains recognized from the sale of real estate as compared to $254.3 million, or $2.43 per share, for the same period in 2016.
The Company reported funds from operations, or FFO, for the quarter ended September 30, 2017 of $152.9 million, or $1.49 per share, as compared to FFO for the same period in 2016 of $171.6 million, or $1.63 per share. FFO for the third quarter of 2016 included $41.1 million, or $0.39 per share, of additional income related to the recapitalization of a debt investment offset by $19.6 million, or $0.19 per share, of lost income and accounting write-offs related to space previously leased to Aeropostale at 1515 Broadway.
The Company also reported FFO for the nine months ended September 30, 2017 of $505.6 million, or $4.85 per share, as compared to FFO for the same period in 2016 of $719.1 million, or $6.86 per share. FFO for the first nine months of 2016 included $207.6 million, or $1.98 per share, of income related to the sale of 388-390 Greenwich Street, which was closed in the second quarter of 2016.
All per share amounts in this press release are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended September 30, 2017, the Company reported consolidated revenues and operating income of $374.6 million and $206.1 million, respectively, compared to $416.7 million and $232.8 million, respectively, for the same period in 2016.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 1.4% for the quarter ended
September 30, 2017, or 1.7% excluding lease termination income, as compared to the same period in 2016. For the quarter, consolidated property same-store cash NOI increased by 0.2% to $159.3 million, while unconsolidated joint venture property same-store cash NOI increased by 8.6% to $29.1 million in 2017 as compared to the same period in 2016.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 1.3% for the nine months ended September 30, 2017, or 1.9% excluding lease termination income, as compared to the same period in 2016. For the nine months, consolidated property same-store cash NOI increased by 0.2% to $484.0 million, inclusive of the effect of expected tenant move-outs at 485 Lexington Avenue, 1515 Broadway and 220 E 42nd Street, while unconsolidated joint venture property same-store cash NOI increased by 8.3% to $87.2 million in 2017 as compared to the same period in 2016.
In the third quarter, the Company signed 56 office leases in its Manhattan portfolio totaling 489,160 square feet. Forty-four leases comprising 314,212 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 $70.97 per rentable square foot, representing a 4.0% increase over the previously fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the third quarter was 7.0 years and average tenant concessions were 4.0 months of free rent with a tenant improvement allowance of $57.99 per rentable square foot.
During the first nine months of 2017, the Company signed 145 office leases in its Manhattan portfolio totaling 1,149,904 square feet. One hundred five leases comprising 692,257 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 $71.86 per rentable square foot, representing a 11.0% increase over the previously fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the first nine months of 2017 was 8.3 years and average tenant concessions were 4.5 months of free rent with a tenant improvement allowance of $56.65 per rentable square foot.
Supplemental Information | 5 | Third Quarter 2017 |
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THIRD QUARTER 2017 HIGHLIGHTS Unaudited | | |
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Occupancy in the Company's Manhattan same-store portfolio increased to 95.3% as of September 30, 2017, inclusive of 571,442 square feet of leases signed but not yet commenced, as compared to 94.9% as of June 30, 2017.
In the third quarter, the Company signed 20 office leases in its Suburban portfolio totaling 120,034 square feet. Eight leases comprising 45,241 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 $34.47 per rentable square foot, representing a 3.7% decrease over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the third quarter was 6.6 years and average tenant concessions were 7.8 months of free rent with a tenant improvement allowance of $24.25 per rentable square foot.
During the first nine months of 2017, the Company signed 67 office leases in its Suburban portfolio totaling 425,872 square feet. Thirty-four leases comprising 188,712 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 $33.20 per rentable square foot, representing a 2.5% increase over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the first nine months of 2017 was 6.7 years and average tenant concessions were 6.1 months of free rent with a tenant improvement allowance of $28.13 per rentable square foot.
Occupancy in the Company's Suburban same-store portfolio increased to 86.8% as of September 30, 2017, inclusive of 67,639 square feet of leases signed but not yet commenced, as compared to 85.5% as of June 30, 2017.
Significant leases that were signed in the third quarter included:
• | New lease with Yelp Inc. for 39,565 square feet at 11 Madison Avenue, for 7.7 years; |
• | New lease with Phillips Nizer LLP for 38,243 square feet at 485 Lexington Avenue, for 10.7 years; |
• | New lease with Deutsche Zentral-Genossenschaftsbank and DVB Bank SE for 35,382 square feet at One Vanderbilt Avenue, for 15.0 years; |
• | New lease with Markel Service Incorporated for 27,508 square feet at 1185 Avenue of the Americas, for 10.4 years; |
• | New lease with Cardinia Real Estate LLC for 23,800 square feet at 1055 Washington Boulevard in Stamford, Connecticut, for 11.0 years; |
• | New lease with Josephson LLC for 22,742 square feet at 3 Columbus Circle, for 16.5 years; |
• | Renewal with Hoplite Capital Management LLC for 17,320 square feet at 810 Seventh Avenue, for 5.1 years; |
• | Renewal with Commerzbank Aktiengesellschaft NY for 15,830 square feet at 1100 King Street - 6 International Drive, Rye Brook, New York, for 5.0 years; |
Marketing, general and administrative, or MG&A, expenses for the three months ended September 30, 2017 were $24.0 million, or 5.1% of total combined revenues and an annualized 51 basis points of total assets, including our share of assets from unconsolidated joint ventures.
Investment Activity
During the third quarter, the Company repurchased 1.0 million shares of common stock under the previously announced $1.0 billion share repurchase plan, at an average price of $101.67 per share. The Company has now acquired 3.4 million shares of its common stock under the plan at an average price of $102.92 per share.
In October, the Company and private investment manager, RXR Realty, closed on the acquisition of a combined 48.7% interest in Worldwide Plaza based on a gross asset valuation of $1.725 billion. The property, which encompasses an entire block between 49th and 50th streets and between 8th and 9th avenue, consists of a 49-story, 1.8 million-square-foot Class A office tower, a 252,000 retail building with a parking garage, and a large open-air plaza. The acquisition allows the Company to expand its footprint on Manhattan's West Side through investing in a Class A asset that is fully leased to institutional tenants.
In October, the Company closed on the sale of 16 Court Street, a 317,600 square-foot office property located in Brooklyn, New York, for a gross sale price of $171.0 million. The Company recognized net proceeds of $166.5 million.
In September, the Company closed on the sale of its remaining 10% interest in 102 Greene Street, a 9,200 square-foot retail property in SoHo, at a gross
Supplemental Information | 6 | Third Quarter 2017 |
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THIRD QUARTER 2017 HIGHLIGHTS Unaudited | | |
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asset valuation of $43.5 million, or $4,728 per square foot. The Company recognized net proceeds of $4.3 million and a gain on sale of $0.3 million.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity investment portfolio totaled $2.15 billion at September 30, 2017, including $2.02 billion of investments at a weighted average current yield of 9.3% that are classified in the debt and preferred equity line item on the balance sheet, and investments aggregating $0.13 billion at a weighted average current yield of 8.7% that are included in other balance sheet line items for accounting purposes. The weighted average yield of 9.3% excludes our investments in 2 Herald Square, which were moved to non-accrual status in August 2017. During the third quarter, the Company originated or acquired new debt and preferred equity investments totaling $63.4 million, all of which was retained and $56.2 million of which was funded, at a weighted average current yield of 9.2%. In the third quarter, the Company recorded $51.3 million of principal reductions from investments that were repaid, sold or syndicated.
Financing Activity
In October, the Company returned to the public unsecured debt markets with an issuance of $500.0 million of 3.25% senior unsecured notes due October 2022. The Company used $350.8 million of the net proceeds from the offering to repay the outstanding 3.00% Exchangeable Senior Notes that were due in October 2017. The remaining proceeds were used for the repayment of other corporate indebtedness.
In September, the Company, along with its joint venture partner, closed on the refinancing of 650 Fifth Avenue. The new $225.0 million mortgage has a 5-year term, carries a fixed interest rate of 4.539% and replaces the previous $86.5 million of mortgage indebtedness on the property.
In August, the Company, along with its joint venture partner, closed on the refinancing of 280 Park Avenue. The new $1.2 billion loan has a 7-year term, as extended, bears interest at a floating rate of 1.73% over LIBOR and replaces the previous $900.0 million of indebtedness on the property that bore interest at a floating rate of 2.00% over LIBOR.
In October, in conjunction with our acquisition of an interest in Worldwide Plaza, together with our joint venture partners, closed on a $1.2 billion financing of the property. The new loan has a term of 10 years and carries a fixed interest rate of 3.98%.
Dividends
In the third quarter of 2017, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:
• | $0.775 per share of common stock, which was paid on October 16, 2017 to shareholders of record on the close of business on October 2, 2017; and |
• | $0.40625 per share on the Company's 6.50% Series I Cumulative Redeemable Preferred Stock for the period July 15, 2017 through and including October 14, 2017, which was paid on October 16, 2017 to shareholders of record on the close of business on October 2, 2017, and reflects the regular quarterly dividend, which is the equivalent of an annualized dividend of $1.625 per share. |
Supplemental Information | 7 | Third Quarter 2017 |
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THIRD QUARTER 2017 HIGHLIGHTS Unaudited | | |
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Annual Institutional Investor Conference
The Company will host its Annual Institutional Investor Conference on Monday, December 4, 2017 in New York City beginning at 9:00am EST. For more information on the Conference, please email SLG2017@slgreen.com.
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, October 19, 2017 at 2:00 pm ET to discuss the financial results.
The supplemental data will be available prior to the quarterly conference call in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Financial Reports.”
The live conference call will be webcast in listen-only mode in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Presentations & Webcasts”. The conference may also be accessed by dialing toll-free (877) 312-8765 or international (419) 386-0002, and using passcode 89375556.
A replay of the call will be available 7 days after the call by dialing (855) 859-2056 using passcode 89375556. A webcast replay will also be available in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Presentations & Webcasts”.
Supplemental Information | 8 | Third Quarter 2017 |
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KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) | | |
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As of or for the three months ended | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Earnings Per Share | |||||||||||||||||||
Net income available to common stockholders - diluted | $ | 0.40 | $ | 0.08 | $ | 0.11 | $ | 0.44 | $ | 0.34 | |||||||||
Funds from operations (FFO) available to common stockholders - diluted | $ | 1.49 | $ | 1.78 | $ | 1.57 | $ | 1.43 | $ | 1.63 | |||||||||
Common Share Price & Dividends | |||||||||||||||||||
Closing price at the end of the period | $ | 101.32 | $ | 105.80 | $ | 106.62 | $ | 107.55 | $ | 108.10 | |||||||||
Closing high price during period | $ | 107.52 | $ | 109.73 | $ | 113.75 | $ | 112.89 | $ | 119.20 | |||||||||
Closing low price during period | $ | 95.45 | $ | 101.03 | $ | 104.62 | $ | 94.23 | $ | 102.56 | |||||||||
Common dividend per share | $ | 0.775 | $ | 0.775 | $ | 0.775 | $ | 0.775 | $ | 0.720 | |||||||||
FFO payout ratio (trailing 12 months) | 49.4 | % | 47.4 | % | 37.2 | % | 35.4 | % | 34.0 | % | |||||||||
Funds available for distribution (FAD) payout ratio (trailing 12 months) | 83.0 | % | 77.6 | % | 63.4 | % | 59.4 | % | 61.9 | % | |||||||||
Common Shares & Units | |||||||||||||||||||
Common shares outstanding | 97,446 | 98,367 | 100,776 | 100,562 | 100,264 | ||||||||||||||
Units outstanding | 4,542 | 4,562 | 4,563 | 4,364 | 4,495 | ||||||||||||||
Total common shares and units outstanding | 101,988 | 102,929 | 105,339 | 104,926 | 104,759 | ||||||||||||||
Weighted average common shares and units outstanding - basic | 102,326 | 104,462 | 105,250 | 104,794 | 104,730 | ||||||||||||||
Weighted average common shares and units outstanding - diluted | 102,570 | 104,732 | 105,554 | 105,168 | 105,143 | ||||||||||||||
Market Capitalization | |||||||||||||||||||
Market value of common equity | $ | 10,333,424 | $ | 10,889,888 | $ | 11,231,244 | $ | 11,284,791 | $ | 11,324,448 | |||||||||
Liquidation value of preferred equity/units | 531,884 | 531,884 | 532,009 | 532,009 | 532,309 | ||||||||||||||
Consolidated debt (1) | 6,476,623 | 6,431,753 | 6,389,254 | 6,290,019 | 6,237,641 | ||||||||||||||
Consolidated market capitalization | $ | 17,341,931 | $ | 17,853,525 | $ | 18,152,507 | $ | 18,106,819 | $ | 18,094,398 | |||||||||
SLG share of unconsolidated JV debt | 3,191,302 | 2,924,816 | 2,775,302 | 2,742,857 | 2,694,274 | ||||||||||||||
Market capitalization including SLG share of unconsolidated JVs | $ | 20,533,233 | $ | 20,778,341 | $ | 20,927,809 | $ | 20,849,676 | $ | 20,788,672 | |||||||||
Consolidated debt to market capitalization | 37.3 | % | 36.0 | % | 35.2 | % | 34.7 | % | 34.5 | % | |||||||||
Debt to market capitalization including SLG share of unconsolidated JVs | 47.1 | % | 45.0 | % | 43.8 | % | 43.3 | % | 43.0 | % | |||||||||
Consolidated debt service coverage (trailing 12 months) | 3.04x | 3.07x | 3.46x | 3.39x | 3.33x | ||||||||||||||
Consolidated fixed charge coverage (trailing 12 months) | 2.56x | 2.59x | 2.95x | 2.91x | 2.89x | ||||||||||||||
Debt service coverage, including SLG share of unconsolidated JVs (trailing 12 months) | 2.61x | 2.66x | 3.02x | 2.97x | 2.93x | ||||||||||||||
Fixed charge coverage, including SLG share of unconsolidated JVs (trailing 12 months) | 2.25x | 2.29x | 2.61x | 2.58x | 2.57x | ||||||||||||||
(1) Includes debt associated with assets held for sale. | |||||||||||||||||||
Supplemental Information | 9 | Third Quarter 2017 |
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KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) | | |
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As of or for the three months ended | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Selected Balance Sheet Data | |||||||||||||||||||
Real estate assets before depreciation (1) | $ | 12,013,814 | $ | 12,021,243 | $ | 12,837,493 | $ | 12,743,332 | $ | 12,608,861 | |||||||||
Investments in unconsolidated joint ventures | $ | 2,045,796 | $ | 2,219,371 | $ | 1,861,077 | $ | 1,890,186 | $ | 1,860,912 | |||||||||
Debt and preferred equity investments | $ | 2,020,739 | $ | 1,986,413 | $ | 1,627,836 | $ | 1,640,412 | $ | 1,453,234 | |||||||||
Cash and cash equivalents | $ | 241,489 | $ | 270,965 | $ | 468,035 | $ | 279,443 | $ | 405,896 | |||||||||
Investment in marketable securities | $ | 28,802 | $ | 29,524 | $ | 29,260 | $ | 85,110 | $ | 60,352 | |||||||||
Total assets | $ | 15,109,870 | $ | 15,309,707 | $ | 15,877,271 | $ | 15,857,787 | $ | 15,790,942 | |||||||||
Fixed rate & hedged debt | $ | 5,154,810 | $ | 5,190,393 | $ | 5,249,091 | $ | 5,184,434 | $ | 5,226,651 | |||||||||
Variable rate debt (2) | 1,321,813 | 1,241,360 | 1,140,163 | 1,105,585 | 1,010,990 | ||||||||||||||
Total consolidated debt | $ | 6,476,623 | $ | 6,431,753 | $ | 6,389,254 | $ | 6,290,019 | $ | 6,237,641 | |||||||||
Deferred financing costs, net of amortization | (52,667 | ) | (56,820 | ) | (82,988 | ) | (82,258 | ) | (87,591 | ) | |||||||||
Total consolidated debt, net | $ | 6,423,956 | $ | 6,374,933 | $ | 6,306,266 | $ | 6,207,761 | $ | 6,150,050 | |||||||||
Total liabilities | $ | 7,153,035 | $ | 7,172,522 | $ | 7,380,279 | $ | 7,330,984 | $ | 7,275,544 | |||||||||
Fixed rate & hedged debt, including SLG share of unconsolidated JV debt | $ | 6,609,447 | $ | 6,532,638 | $ | 6,589,967 | $ | 6,718,900 | $ | 6,720,214 | |||||||||
Variable rate debt, including SLG share of unconsolidated JV debt (2) | 3,058,478 | 2,823,931 | 2,574,589 | 2,313,976 | 2,211,700 | ||||||||||||||
Total debt, including SLG share of unconsolidated JV debt | $ | 9,667,925 | $ | 9,356,569 | $ | 9,164,556 | $ | 9,032,876 | $ | 8,931,914 | |||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 319,514 | $ | 322,027 | $ | 325,521 | $ | 329,370 | $ | 334,612 | |||||||||
Property operating expenses | (148,394 | ) | (140,105 | ) | (143,882 | ) | (147,355 | ) | (151,896 | ) | |||||||||
Property NOI | $ | 171,120 | $ | 181,922 | $ | 181,639 | $ | 182,015 | $ | 182,716 | |||||||||
SLG share of unconsolidated JV Property NOI | 57,650 | 55,002 | 55,424 | 53,733 | 41,365 | ||||||||||||||
Property NOI, including SLG share of unconsolidated JV Property NOI | $ | 228,770 | $ | 236,924 | $ | 237,063 | $ | 235,748 | $ | 224,081 | |||||||||
Investment income | 47,820 | 60,622 | 40,299 | 38,661 | 75,396 | ||||||||||||||
Other income | 7,266 | 15,501 | 11,561 | 6,211 | 6,673 | ||||||||||||||
Marketing general & administrative expenses | (23,963 | ) | (24,256 | ) | (24,143 | ) | (25,785 | ) | (25,458 | ) | |||||||||
SLG share of investment income and other income from unconsolidated JVs | 4,524 | 5,078 | 5,789 | 6,962 | 5,389 | ||||||||||||||
Income taxes | 77 | 2,201 | 559 | 1,707 | 815 | ||||||||||||||
Transaction costs, including SLG share of unconsolidated JVs | (186 | ) | (102 | ) | (187 | ) | (1,638 | ) | (5,612 | ) | |||||||||
EBITDAre | $ | 264,308 | $ | 295,968 | $ | 270,941 | $ | 261,866 | $ | 281,284 | |||||||||
(1) Includes assets held for sale of $135.2 million at 9/30/2017. | |||||||||||||||||||
(2) Does not reflect $1.2 billion of floating rate debt and preferred equity investments that provide a hedge against floating rate debt. | |||||||||||||||||||
Supplemental Information | 10 | Third Quarter 2017 |
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KEY FINANCIAL DATA Manhattan Properties (1) Unaudited (Dollars in Thousands Except Per Share) | | |
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As of or for the three months ended | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 294,126 | $ | 294,596 | $ | 292,520 | $ | 297,431 | $ | 301,165 | |||||||||
Property operating expenses | 130,395 | 120,518 | 125,387 | 124,022 | 133,725 | ||||||||||||||
Property NOI | $ | 163,731 | $ | 174,078 | $ | 167,133 | $ | 173,409 | $ | 167,440 | |||||||||
Other income - consolidated | $ | 1,467 | $ | 608 | $ | 2,417 | $ | 851 | $ | 1,951 | |||||||||
SLG share of property NOI from unconsolidated JVs | $ | 57,486 | $ | 54,856 | $ | 55,171 | $ | 53,522 | $ | 44,249 | |||||||||
Portfolio Statistics | |||||||||||||||||||
Consolidated office buildings in service | 24 | 24 | 24 | 24 | 24 | ||||||||||||||
Unconsolidated office buildings in service | 7 | 7 | 7 | 7 | 7 | ||||||||||||||
31 | 31 | 31 | 31 | 31 | |||||||||||||||
Consolidated office buildings in service - square footage | 16,054,606 | 16,054,606 | 16,054,606 | 16,054,606 | 16,054,606 | ||||||||||||||
Unconsolidated office buildings in service - square footage | 6,558,139 | 6,558,139 | 6,558,139 | 6,558,139 | 6,558,139 | ||||||||||||||
22,612,745 | 22,612,745 | 22,612,745 | 22,612,745 | 22,612,745 | |||||||||||||||
Same-store office occupancy (consolidated + JVs) (2) | 92.6% | 92.6% | 93.9% | 94.6% | 95.1% | ||||||||||||||
Same-store office occupancy inclusive of leases signed not yet commenced | 95.3% | 94.9% | 95.7% | 96.2% | 96.4% | ||||||||||||||
Office Leasing Statistics | |||||||||||||||||||
New leases commenced | 30 | 34 | 26 | 11 | 29 | ||||||||||||||
Renewal leases commenced | 17 | 11 | 15 | 10 | 13 | ||||||||||||||
Total office leases commenced | 47 | 45 | 41 | 21 | 42 | ||||||||||||||
Commenced office square footage filling vacancy | 118,590 | 118,230 | 114,996 | 17,202 | 109,247 | ||||||||||||||
Commenced office square footage on previously occupied space (M-T-M leasing) (3) | 181,974 | 156,558 | 204,076 | 154,379 | 1,085,757 | ||||||||||||||
Total office square footage commenced | 300,564 | 274,788 | 319,072 | 171,581 | 1,195,004 | ||||||||||||||
Average starting cash rent psf - office leases commenced | $71.73 | $71.43 | $78.11 | $70.94 | $73.22 | ||||||||||||||
Previously escalated cash rent psf - office leases commenced | $70.30 | $66.92 | $69.26 | $67.47 | $61.84 | ||||||||||||||
Increase in new cash rent over previously escalated cash rent (3) | 2.0% | 6.7% | 12.8% | 5.1% | 18.4% | ||||||||||||||
Average lease term | 6.3 | 7.1 | 7.7 | 7.1 | 10.5 | ||||||||||||||
Tenant concession packages psf | $45.36 | $45.12 | $53.87 | $48.53 | $40.40 | ||||||||||||||
Free rent months | 3.2 | 4.6 | 5.6 | 4.9 | 4.2 | ||||||||||||||
(1) Property data includes operating office, retail, residential, development, redevelopment, and land properties. | |||||||||||||||||||
(2) The Manhattan same-store portfolio was revised on January 1, 2017 to include 280 Park Avenue, 600 Lexington Avenue, 110 Greene Street, 30 East 40th Street, and the Stonehenge Portfolio. | |||||||||||||||||||
(3) Calculated on space that was occupied within the previous 12 months. | |||||||||||||||||||
Supplemental Information | 11 | Third Quarter 2017 |
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KEY FINANCIAL DATA Suburban Properties (1) Unaudited (Dollars in Thousands Except Per Share) | | |
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As of or for the three months ended | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 25,102 | $ | 26,844 | $ | 28,531 | $ | 27,405 | $ | 28,942 | |||||||||
Property operating expenses | 13,194 | 13,890 | 14,636 | 15,199 | 15,211 | ||||||||||||||
Property NOI | $ | 11,908 | $ | 12,954 | $ | 13,895 | $ | 12,206 | $ | 13,731 | |||||||||
Other income - consolidated | $ | 471 | $ | 1,300 | $ | 107 | $ | 1,047 | $ | 118 | |||||||||
SLG share of property NOI from unconsolidated JVs | $ | 145 | $ | 192 | $ | 207 | $ | 211 | $ | 120 | |||||||||
Portfolio Statistics | |||||||||||||||||||
Consolidated office buildings in service | 22 | 24 | 25 | 25 | 25 | ||||||||||||||
Unconsolidated office buildings in service | 2 | 2 | 2 | 2 | 2 | ||||||||||||||
24 | 26 | 27 | 27 | 27 | |||||||||||||||
Consolidated office buildings in service - square footage | 3,608,800 | 3,933,800 | 4,113,800 | 4,113,800 | 4,113,800 | ||||||||||||||
Unconsolidated office buildings in service - square footage | 640,000 | 640,000 | 640,000 | 640,000 | 640,000 | ||||||||||||||
4,248,800 | 4,573,800 | 4,753,800 | 4,753,800 | 4,753,800 | |||||||||||||||
Same-store office occupancy (consolidated + JVs) | 85.4% | 85.0% | 83.0% | 83.1% | 82.3% | ||||||||||||||
Same-store office occupancy inclusive of leases signed not yet commenced | 86.8% | 85.5% | 84.2% | 83.9% | 84.2% | ||||||||||||||
Office Leasing Statistics | |||||||||||||||||||
New leases commenced | 8 | 16 | 10 | 15 | 12 | ||||||||||||||
Renewal leases commenced | 9 | 6 | 12 | 9 | 8 | ||||||||||||||
Total office leases commenced | 17 | 22 | 22 | 24 | 20 | ||||||||||||||
Commenced office square footage filling vacancy | 53,971 | 98,500 | 37,184 | 66,425 | 43,111 | ||||||||||||||
Commenced office square footage on previously occupied space (M-T-M leasing) (2) | 79,408 | 28,915 | 73,789 | 63,040 | 77,869 | ||||||||||||||
Total office square footage commenced | 133,379 | 127,415 | 110,973 | 129,465 | 120,980 | ||||||||||||||
Average starting cash rent psf - office leases commenced | $30.75 | $46.80 | $30.04 | $35.86 | $35.40 | ||||||||||||||
Previously escalated cash rent psf - office leases commenced | $32.28 | $39.36 | $29.33 | $32.29 | $34.61 | ||||||||||||||
Increase in new cash rent over previously escalated cash rent (2) | (4.7)% | 18.9% | 2.4% | 11.1% | 2.3% | ||||||||||||||
Average lease term | 7.2 | 7.5 | 4.8 | 7.0 | 5.5 | ||||||||||||||
Tenant concession packages psf | $28.73 | $35.70 | $13.69 | $17.92 | $26.04 | ||||||||||||||
Free rent months | 7.5 | 5.2 | 5.6 | 6.5 | 3.1 | ||||||||||||||
(1) Property data includes operating office, retail, residential, development, redevelopment, and land properties. | |||||||||||||||||||
(2) Calculated on space that was occupied within the previous 12 months. | |||||||||||||||||||
Supplemental Information | 12 | Third Quarter 2017 |
| ||
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) | | |
| ||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Assets | |||||||||||||||||||
Commercial real estate properties, at cost: | |||||||||||||||||||
Land and land interests | $ | 2,917,993 | $ | 2,936,879 | $ | 3,295,050 | $ | 3,309,710 | $ | 3,347,482 | |||||||||
Building and improvements | 7,468,436 | 7,476,108 | 7,977,713 | 7,948,852 | 7,777,647 | ||||||||||||||
Building leasehold and improvements | 1,444,698 | 1,441,587 | 1,439,083 | 1,437,325 | 1,436,287 | ||||||||||||||
Properties under capital lease | 47,445 | 47,445 | 47,445 | 47,445 | 47,445 | ||||||||||||||
11,878,572 | 11,902,019 | 12,759,291 | 12,743,332 | 12,608,861 | |||||||||||||||
Less: accumulated depreciation | (2,457,071 | ) | (2,397,299 | ) | (2,372,082 | ) | (2,264,694 | ) | (2,190,142 | ) | |||||||||
Net real estate | 9,421,501 | 9,504,720 | 10,387,209 | 10,478,638 | 10,418,719 | ||||||||||||||
Other real estate investments: | |||||||||||||||||||
Investment in unconsolidated joint ventures | 2,045,796 | 2,219,371 | 1,861,077 | 1,890,186 | 1,860,912 | ||||||||||||||
Debt and preferred equity investments, net (1) | 2,020,739 | 1,986,413 | 1,627,836 | 1,640,412 | 1,453,234 | ||||||||||||||
Assets held for sale, net | 127,663 | 119,224 | 54,694 | — | 117,159 | ||||||||||||||
Cash and cash equivalents | 241,489 | 270,965 | 468,035 | 279,443 | 405,896 | ||||||||||||||
Restricted cash | 107,763 | 109,959 | 71,215 | 90,524 | 100,195 | ||||||||||||||
Investment in marketable securities | 28,802 | 29,524 | 29,260 | 85,110 | 60,352 | ||||||||||||||
Tenant and other receivables, net of $18,365 reserve at 9/30/2017 | 54,663 | 50,946 | 52,197 | 53,772 | 55,976 | ||||||||||||||
Related party receivables | 24,068 | 23,725 | 19,067 | 15,856 | 14,840 | ||||||||||||||
Deferred rents receivable, net of reserve for | |||||||||||||||||||
tenant credit loss of $21,257 at 9/30/2017 | 393,793 | 385,040 | 453,747 | 442,179 | 430,642 | ||||||||||||||
Deferred costs, net | 247,981 | 249,724 | 267,948 | 267,600 | 252,179 | ||||||||||||||
Other assets | 395,612 | 360,096 | 584,986 | 614,067 | 620,838 | ||||||||||||||
Total Assets | $ | 15,109,870 | $ | 15,309,707 | $ | 15,877,271 | $ | 15,857,787 | $ | 15,790,942 | |||||||||
(1) Excludes debt and preferred equity investments totaling $130.9 million with a weighted average current yield of 8.68% that are included in other balance sheet line items. | |||||||||||||||||||
Supplemental Information | 13 | Third Quarter 2017 |
| ||
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) | | |
| ||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Liabilities | |||||||||||||||||||
Mortgages and other loans payable | $ | 3,845,061 | $ | 3,857,421 | $ | 4,236,545 | $ | 4,140,712 | $ | 4,024,896 | |||||||||
Unsecured term loan | 1,183,000 | 1,183,000 | 1,183,000 | 1,183,000 | 1,183,000 | ||||||||||||||
Unsecured notes | 1,068,562 | 1,091,332 | 1,137,359 | 1,133,957 | 1,130,616 | ||||||||||||||
Revolving credit facility | 280,000 | 200,000 | — | — | — | ||||||||||||||
Deferred financing costs | (52,667 | ) | (56,820 | ) | (82,988 | ) | (82,258 | ) | (87,591 | ) | |||||||||
Total debt, net of deferred financing costs | 6,323,956 | 6,274,933 | 6,473,916 | 6,375,411 | 6,250,921 | ||||||||||||||
Accrued interest | 34,367 | 36,478 | 33,859 | 36,052 | 30,734 | ||||||||||||||
Other liabilities | 96,818 | 197,261 | 168,533 | 212,493 | 218,404 | ||||||||||||||
Accounts payable and accrued expenses | 144,767 | 134,294 | 169,244 | 190,583 | 178,946 | ||||||||||||||
Deferred revenue | 252,779 | 229,692 | 235,208 | 217,955 | 237,548 | ||||||||||||||
Capitalized lease obligations | 42,660 | 42,480 | 42,305 | 42,132 | 41,951 | ||||||||||||||
Deferred land lease payable | 3,075 | 2,911 | 2,747 | 2,583 | 2,419 | ||||||||||||||
Dividends and distributions payable | 85,007 | 86,081 | 87,617 | 87,271 | 81,392 | ||||||||||||||
Security deposits | 68,465 | 68,286 | 66,807 | 66,504 | 67,709 | ||||||||||||||
Liabilities related to assets held for sale | 1,141 | 106 | 43 | — | 65,520 | ||||||||||||||
Junior subordinated deferrable interest debentures | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||||||
Total liabilities | 7,153,035 | 7,172,522 | 7,380,279 | 7,330,984 | 7,275,544 | ||||||||||||||
Noncontrolling interest in operating partnership | |||||||||||||||||||
(4,542 units outstanding) at 9/30/2017 | 470,898 | 487,660 | 491,298 | 473,882 | 490,440 | ||||||||||||||
Preferred units | 301,885 | 301,885 | 302,010 | 302,010 | 302,310 | ||||||||||||||
Equity | |||||||||||||||||||
Stockholders' Equity: | |||||||||||||||||||
Series I Perpetual Preferred Shares | 221,932 | 221,932 | 221,932 | 221,932 | 221,932 | ||||||||||||||
Common stock, $0.01 par value, 160,000 shares authorized, 98,501 | |||||||||||||||||||
issued and outstanding at 9/30/2017, including 1,055 shares held in treasury | 985 | 995 | 1,019 | 1,017 | 1,013 | ||||||||||||||
Additional paid–in capital | 5,294,500 | 5,391,038 | 5,651,089 | 5,624,545 | 5,596,026 | ||||||||||||||
Treasury stock | (124,049 | ) | (124,049 | ) | (124,049 | ) | (124,049 | ) | (124,049 | ) | |||||||||
Accumulated other comprehensive income | 14,185 | 14,354 | 16,511 | 22,137 | (14,074 | ) | |||||||||||||
Retained earnings | 1,410,332 | 1,431,442 | 1,496,759 | 1,578,893 | 1,612,707 | ||||||||||||||
Total SL Green Realty Corp. stockholders' equity | 6,817,885 | 6,935,712 | 7,263,261 | 7,324,475 | 7,293,555 | ||||||||||||||
Noncontrolling interest in other partnerships | 366,167 | 411,928 | 440,423 | 426,436 | 429,093 | ||||||||||||||
Total equity | 7,184,052 | 7,347,640 | 7,703,684 | 7,750,911 | 7,722,648 | ||||||||||||||
Total Liabilities and Equity | $ | 15,109,870 | $ | 15,309,707 | $ | 15,877,271 | $ | 15,857,787 | $ | 15,790,942 | |||||||||
Supplemental Information | 14 | Third Quarter 2017 |
| ||
COMPARATIVE STATEMENT OF OPERATIONS Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
Three Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | June 30, | September 30, | September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||
Revenues | |||||||||||||||||||||
Rental revenue, net | $ | 274,765 | $ | 281,482 | $ | 279,407 | $ | 835,501 | $ | 1,043,898 | |||||||||||
Escalation and reimbursement revenues | 44,749 | 53,130 | 42,620 | 131,561 | 147,357 | ||||||||||||||||
Investment income | 47,820 | 75,396 | 60,622 | 148,741 | 174,347 | ||||||||||||||||
Other income | 7,266 | 6,673 | 15,501 | 34,328 | 124,137 | ||||||||||||||||
Total Revenues, net | 374,600 | 416,681 | 398,150 | 1,150,131 | 1,489,739 | ||||||||||||||||
Equity in net income (loss) from unconsolidated joint ventures | 4,078 | (3,968 | ) | 3,412 | 14,104 | 11,969 | |||||||||||||||
Expenses | |||||||||||||||||||||
Operating expenses | 75,927 | 79,425 | 70,852 | 221,285 | 234,269 | ||||||||||||||||
Ground rent | 8,307 | 8,338 | 8,308 | 24,923 | 24,953 | ||||||||||||||||
Real estate taxes | 64,160 | 64,133 | 60,945 | 186,173 | 187,931 | ||||||||||||||||
Transaction related costs | 186 | 2,593 | 46 | 365 | 5,987 | ||||||||||||||||
Marketing, general and administrative | 23,963 | 25,458 | 24,256 | 72,362 | 73,974 | ||||||||||||||||
Total Operating Expenses | 172,543 | 179,947 | 164,407 | 505,108 | 527,114 | ||||||||||||||||
Operating Income | 206,135 | 232,766 | 237,155 | 659,127 | 974,594 | ||||||||||||||||
Interest expense, net of interest income | 65,634 | 72,565 | 64,856 | 196,112 | 256,326 | ||||||||||||||||
Amortization of deferred financing costs | 4,008 | 4,815 | 3,432 | 12,201 | 20,180 | ||||||||||||||||
Depreciation and amortization | 91,728 | 112,665 | 133,054 | 318,916 | 717,015 | ||||||||||||||||
44,765 | 42,721 | 35,813 | 131,898 | (18,927 | ) | ||||||||||||||||
Gain (loss) on sale of marketable securities | — | — | — | 3,262 | (83 | ) | |||||||||||||||
Income from Continuing Operations (1) | 44,765 | 42,721 | 35,813 | 135,160 | (19,010 | ) | |||||||||||||||
Gain (loss) on sale of real estate and discontinued operations | — | 397 | (3,823 | ) | (3,256 | ) | 210,750 | ||||||||||||||
Equity in net gain on sale of joint venture interest / real estate | 1,030 | 225 | 13,089 | 16,166 | 43,588 | ||||||||||||||||
Depreciable real estate reserves | — | — | (29,064 | ) | (85,336 | ) | (10,387 | ) | |||||||||||||
Net Income | 45,795 | 43,343 | 16,015 | 62,734 | 224,941 | ||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (338 | ) | (2,499 | ) | (1,205 | ) | 15,472 | (14,416 | ) | ||||||||||||
Dividends on preferred units | (2,850 | ) | (2,854 | ) | (2,851 | ) | (8,551 | ) | (8,382 | ) | |||||||||||
Net Income Attributable to SL Green Realty Corp | 42,607 | 37,990 | 11,959 | 69,655 | 202,143 | ||||||||||||||||
Dividends on perpetual preferred shares | (3,738 | ) | (3,738 | ) | (3,737 | ) | (11,213 | ) | (11,213 | ) | |||||||||||
Net Income Attributable to Common Stockholders | $ | 38,869 | $ | 34,252 | $ | 8,222 | $ | 58,442 | $ | 190,930 | |||||||||||
Earnings per share - Net income per share (basic) | $ | 0.40 | $ | 0.34 | $ | 0.08 | $ | 0.59 | $ | 1.91 | |||||||||||
Earnings per share - Net income per share (diluted) | $ | 0.40 | $ | 0.34 | $ | 0.08 | $ | 0.59 | $ | 1.90 | |||||||||||
(1) Before gains on sale and equity in net gains and depreciable real estate reserves shown below. | |||||||||||||||||||||
Supplemental Information | 15 | Third Quarter 2017 |
| ||
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
Three Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||||
Funds from Operations | ||||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 38,869 | $ | 34,252 | $ | 8,222 | $ | 58,442 | $ | 190,930 | ||||||||||||
Depreciation and amortization | 91,728 | 112,665 | 133,054 | 318,916 | 717,015 | |||||||||||||||||
Unconsolidated JV depreciation and noncontrolling interests adjustments | 23,517 | 23,349 | 25,086 | 72,936 | 42,191 | |||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 338 | 2,499 | 1,205 | (15,472 | ) | 14,416 | ||||||||||||||||
(Gain) loss on sale of real estate and discontinued operations | — | (397 | ) | 3,823 | 3,256 | (210,750 | ) | |||||||||||||||
Equity in net gain on sale of joint venture property / real estate | (1,030 | ) | (225 | ) | (13,089 | ) | (16,166 | ) | (43,588 | ) | ||||||||||||
Depreciable real estate reserves | — | — | 29,064 | 85,336 | 10,387 | |||||||||||||||||
Non-real estate depreciation and amortization | (557 | ) | (509 | ) | (564 | ) | (1,636 | ) | (1,505 | ) | ||||||||||||
Funds From Operations | $ | 152,865 | $ | 171,634 | $ | 186,801 | $ | 505,612 | $ | 719,096 | ||||||||||||
Funds From Operations - Basic per Share | $ | 1.49 | $ | 1.64 | $ | 1.79 | $ | 4.86 | $ | 6.89 | ||||||||||||
Funds From Operations - Diluted per Share | $ | 1.49 | $ | 1.63 | $ | 1.78 | $ | 4.85 | $ | 6.86 | ||||||||||||
Funds Available for Distribution | ||||||||||||||||||||||
FFO | $ | 152,865 | $ | 171,634 | $ | 186,801 | $ | 505,612 | $ | 719,096 | ||||||||||||
Non real estate depreciation and amortization | 557 | 509 | 564 | 1,636 | 1,505 | |||||||||||||||||
Amortization of deferred financing costs | 4,008 | 4,815 | 3,432 | 12,201 | 20,180 | |||||||||||||||||
Non-cash deferred compensation | 8,690 | 9,234 | 11,499 | 36,496 | 33,803 | |||||||||||||||||
FAD adjustment for joint ventures | (8,887 | ) | (23,557 | ) | (10,242 | ) | (28,577 | ) | (35,016 | ) | ||||||||||||
Straight-line rental income and other non cash adjustments | (15,384 | ) | (7,393 | ) | (16,270 | ) | (47,593 | ) | (142,485 | ) | ||||||||||||
Second cycle tenant improvements | (37,512 | ) | (32,536 | ) | (29,964 | ) | (80,920 | ) | (77,336 | ) | ||||||||||||
Second cycle leasing commissions | (4,875 | ) | (7,697 | ) | (6,741 | ) | (19,449 | ) | (24,640 | ) | ||||||||||||
Revenue enhancing recurring CAPEX | (4,037 | ) | (630 | ) | (1,871 | ) | (6,262 | ) | (1,961 | ) | ||||||||||||
Non-revenue enhancing recurring CAPEX | (15,048 | ) | (12,272 | ) | (14,802 | ) | (35,805 | ) | (29,644 | ) | ||||||||||||
Reported Funds Available for Distribution | $ | 80,377 | $ | 102,107 | $ | 122,406 | $ | 337,339 | $ | 463,502 | ||||||||||||
First cycle tenant improvements | $ | 2,716 | $ | 4,542 | $ | 4,956 | $ | 8,565 | $ | 16,955 | ||||||||||||
First cycle leasing commissions | $ | 331 | $ | 752 | $ | 198 | $ | 933 | $ | 11,013 | ||||||||||||
Development costs | $ | 3,695 | $ | 37,165 | $ | 1,844 | $ | 56,061 | $ | 101,301 | ||||||||||||
Redevelopment costs | $ | 7,763 | $ | 6,310 | $ | 3,745 | $ | 16,449 | $ | 20,521 | ||||||||||||
Capitalized interest | $ | 6,869 | $ | 6,084 | $ | 6,743 | $ | 19,892 | $ | 18,135 | ||||||||||||
Supplemental Information | 16 | Third Quarter 2017 |
| ||
CONSOLIDATED STATEMENT OF EQUITY Unaudited (Dollars in Thousands) | | |
| ||
Accumulated | ||||||||||||||||||||||||||||||||||
Series I | Other | |||||||||||||||||||||||||||||||||
Preferred | Common | Additional | Treasury | Retained | Noncontrolling | Comprehensive | ||||||||||||||||||||||||||||
Stock | Stock | Paid-In Capital | Stock | Earnings | Interests | Loss | TOTAL | |||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 221,932 | $ | 1,017 | $ | 5,624,545 | $ | (124,049 | ) | $ | 1,578,893 | $ | 426,436 | $ | 22,137 | $ | 7,750,911 | |||||||||||||||||
Net Income attributable to SL Green | 69,655 | (18,179 | ) | 51,476 | ||||||||||||||||||||||||||||||
Preferred dividends | (11,213 | ) | (11,213 | ) | ||||||||||||||||||||||||||||||
Cash distributions declared ($2.325 per common share) | (229,672 | ) | (229,672 | ) | ||||||||||||||||||||||||||||||
Cash distributions to noncontrolling interests | (45,089 | ) | (45,089 | ) | ||||||||||||||||||||||||||||||
Other comprehensive income - unrealized loss on derivative instruments | (3,281 | ) | (3,281 | ) | ||||||||||||||||||||||||||||||
Other comprehensive income - SLG share of unconsolidated joint venture net unrealized loss on derivative instruments | (356 | ) | (356 | ) | ||||||||||||||||||||||||||||||
Other comprehensive income - unrealized loss on marketable securities | (4,315 | ) | (4,315 | ) | ||||||||||||||||||||||||||||||
Proceeds from stock options exercised | 1 | 12,289 | 12,290 | |||||||||||||||||||||||||||||||
DRSPP proceeds | 185 | 185 | ||||||||||||||||||||||||||||||||
Repurchases of common stock | (34 | ) | (349,957 | ) | (349,991 | ) | ||||||||||||||||||||||||||||
Conversion of units of the Operating Partnership to common stock | 1 | 15,352 | 15,353 | |||||||||||||||||||||||||||||||
Equity component of repurchased exchangeable senior notes | (27,969 | ) | (27,969 | ) | ||||||||||||||||||||||||||||||
Contributions to consolidated joint ventures | 33,202 | 33,202 | ||||||||||||||||||||||||||||||||
Deconsolidation of partially owned entity | (30,203 | ) | (30,203 | ) | ||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests in the Operating Partnership | 2,669 | 2,669 | ||||||||||||||||||||||||||||||||
Deferred compensation plan and stock awards, net | (1,959 | ) | (1,959 | ) | ||||||||||||||||||||||||||||||
Amortization of deferred compensation plan | 22,014 | 22,014 | ||||||||||||||||||||||||||||||||
Balance at September 30, 2017 | $ | 221,932 | $ | 985 | $ | 5,294,500 | $ | (124,049 | ) | $ | 1,410,332 | $ | 366,167 | $ | 14,185 | $ | 7,184,052 | |||||||||||||||||
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION | ||||||||||||||||||||||||||||||||||
Common Stock | OP Units | Stock-Based Compensation | Diluted Shares | |||||||||||||||||||||||||||||||
Share Count at December 31, 2016 | 100,562,349 | 4,363,716 | — | 104,926,065 | ||||||||||||||||||||||||||||||
YTD share activity | (3,116,840 | ) | 178,049 | — | (2,938,791 | ) | ||||||||||||||||||||||||||||
Share Count at September 30, 2017 - Basic | 97,445,509 | 4,541,765 | — | 101,987,274 | ||||||||||||||||||||||||||||||
Weighting factor | 1,985,246 | 28,678 | 279,129 | 2,293,053 | ||||||||||||||||||||||||||||||
Weighted Average Share Count at September 30, 2017 - Diluted | 99,430,755 | 4,570,443 | 279,129 | 104,280,327 | ||||||||||||||||||||||||||||||
Supplemental Information | 17 | Third Quarter 2017 |
| ||
JOINT VENTURE STATEMENTS Balance Sheet for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) | | |
| ||
September 30, 2017 | June 30, 2017 | December 31, 2016 | |||||||||||||||||||||
Total | SLG Share | Total | SLG Share | Total | SLG Share | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Commercial real estate properties, at cost: | |||||||||||||||||||||||
Land and land interests | $ | 3,071,017 | $ | 1,559,972 | $ | 3,052,899 | $ | 1,542,073 | $ | 2,434,194 | $ | 1,129,515 | |||||||||||
Building and improvements | 7,554,820 | 3,520,273 | 7,465,572 | 3,457,666 | 7,316,847 | 3,108,664 | |||||||||||||||||
Building leasehold and improvements | 72,250 | 36,125 | 65,471 | 32,735 | 53,790 | 26,895 | |||||||||||||||||
Properties under capital lease | 189,558 | 94,779 | 189,558 | 94,779 | 189,558 | 94,779 | |||||||||||||||||
10,887,645 | 5,211,149 | 10,773,500 | 5,127,253 | 9,994,389 | 4,359,853 | ||||||||||||||||||
Less: accumulated depreciation | (943,365 | ) | (400,946 | ) | (904,594 | ) | (383,704 | ) | (862,672 | ) | (337,599 | ) | |||||||||||
Net real estate | 9,944,280 | 4,810,203 | 9,868,906 | 4,743,549 | 9,131,717 | 4,022,254 | |||||||||||||||||
Cash and cash equivalents | 192,772 | 103,538 | 179,646 | 92,711 | 159,916 | 63,561 | |||||||||||||||||
Restricted cash | 177,824 | 75,848 | 137,295 | 54,448 | 168,539 | 68,228 | |||||||||||||||||
Debt and preferred equity investments, net | 201,731 | 184,830 | 201,299 | 184,397 | 336,164 | 229,258 | |||||||||||||||||
Tenant and other receivables, net of $7,284 reserve at 9/30/2017, of which $3,684 is SLG share | 10,548 | 3,619 | 16,192 | 6,115 | 16,881 | 4,520 | |||||||||||||||||
Deferred rents receivables, net of $7,098 reserve at 9/30/2017 for tenant credit loss, of which $3,363 is SLG share | 256,696 | 117,700 | 245,030 | 112,109 | 215,897 | 95,864 | |||||||||||||||||
Deferred costs, net | 183,098 | 87,573 | 183,139 | 87,379 | 170,243 | 76,145 | |||||||||||||||||
Other assets | 453,267 | 242,637 | 448,404 | 245,383 | 513,238 | 262,195 | |||||||||||||||||
Total Assets | $ | 11,420,216 | $ | 5,625,948 | $ | 11,279,911 | $ | 5,526,091 | $ | 10,712,595 | $ | 4,822,025 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Mortgage and other loans payable, net of deferred financing costs of $127,318 at 9/30/2017, of which $55,319 is SLG share | $ | 7,198,609 | $ | 3,135,983 | $ | 6,689,487 | $ | 2,873,391 | $ | 6,453,966 | $ | 2,712,539 | |||||||||||
Accrued interest | 16,178 | 7,433 | 15,628 | 6,954 | 12,569 | 6,149 | |||||||||||||||||
Other liabilities | 2,153 | 1,635 | 5,606 | 2,351 | 9,407 | 2,415 | |||||||||||||||||
Accounts payable and accrued expenses | 170,515 | 87,194 | 153,066 | 72,195 | 147,807 | 64,176 | |||||||||||||||||
Deferred revenue | 340,310 | 178,289 | 340,253 | 177,926 | 356,414 | 186,021 | |||||||||||||||||
Capitalized lease obligations | 188,353 | 94,176 | 187,570 | 93,785 | 186,050 | 93,025 | |||||||||||||||||
Security deposits | 34,062 | 12,054 | 33,792 | 12,104 | 35,667 | 11,693 | |||||||||||||||||
Equity | 3,470,036 | 2,109,184 | 3,854,509 | 2,287,385 | 3,510,715 | 1,746,007 | |||||||||||||||||
Total Liabilities and Equity | $ | 11,420,216 | $ | 5,625,948 | $ | 11,279,911 | $ | 5,526,091 | $ | 10,712,595 | $ | 4,822,025 | |||||||||||
Supplemental Information | 18 | Third Quarter 2017 |
| ||
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) | | |
| ||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||||||||||||||||
Total | SLG Share | Total | SLG Share | Total | SLG Share | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental revenue, net | $ | 186,382 | $ | 78,088 | $ | 186,710 | $ | 77,912 | $ | 162,193 | $ | 59,654 | |||||||||||
Escalation and reimbursement revenues | 23,638 | 11,165 | 15,954 | 7,092 | 12,954 | 5,133 | |||||||||||||||||
Investment income | 3,992 | 3,593 | 5,073 | 3,916 | 7,009 | 4,601 | |||||||||||||||||
Other income | 2,089 | 931 | 2,851 | 1,162 | 2,066 | 788 | |||||||||||||||||
Total Revenues, net | $ | 216,101 | $ | 93,777 | $ | 210,588 | $ | 90,082 | $ | 184,222 | $ | 70,176 | |||||||||||
Loss on early extinguishment of debt | (7,638 | ) | (3,819 | ) | — | — | — | — | |||||||||||||||
Expenses | |||||||||||||||||||||||
Operating expenses | $ | 38,055 | $ | 14,974 | $ | 39,147 | $ | 14,373 | $ | 34,726 | $ | 11,398 | |||||||||||
Ground rent | 4,182 | 1,998 | 4,179 | 1,996 | 3,744 | 1,872 | |||||||||||||||||
Real estate taxes | 37,282 | 14,631 | 35,170 | 13,633 | 30,814 | 10,152 | |||||||||||||||||
Transaction related costs, net of recoveries | — | — | 57 | 56 | 5,359 | 3,019 | |||||||||||||||||
Total Operating Expenses | $ | 79,519 | $ | 31,603 | $ | 78,553 | $ | 30,058 | $ | 74,643 | $ | 26,441 | |||||||||||
Operating Income | $ | 128,944 | $ | 58,355 | $ | 132,035 | $ | 60,024 | $ | 109,579 | $ | 43,735 | |||||||||||
Interest expense, net of interest income | $ | 61,066 | $ | 23,893 | $ | 59,702 | $ | 22,876 | $ | 51,789 | $ | 15,069 | |||||||||||
Amortization of deferred financing costs | 4,031 | 1,589 | 7,458 | 2,314 | 7,155 | 2,406 | |||||||||||||||||
Depreciation and amortization | 61,447 | 28,819 | 65,945 | 31,286 | 56,890 | 23,515 | |||||||||||||||||
Net Income (Loss) | $ | 2,400 | $ | 4,054 | $ | (1,070 | ) | $ | 3,548 | $ | (6,255 | ) | $ | 2,745 | |||||||||
Real estate depreciation | 61,715 | 28,874 | 64,918 | 31,083 | 56,830 | 23,514 | |||||||||||||||||
FFO Contribution | $ | 64,115 | $ | 32,928 | $ | 63,848 | $ | 34,631 | $ | 50,575 | $ | 26,259 | |||||||||||
FAD Adjustments: | |||||||||||||||||||||||
Non real estate depreciation and amortization | $ | 3,763 | $ | 1,534 | $ | 8,485 | $ | 2,517 | $ | 7,215 | $ | 2,407 | |||||||||||
Straight-line rental income and other non-cash adjustments | (15,025 | ) | (7,633 | ) | (18,337 | ) | (10,349 | ) | (18,671 | ) | (9,211 | ) | |||||||||||
Second cycle tenant improvement | (2,037 | ) | (1,052 | ) | (2,869 | ) | (1,149 | ) | (766 | ) | (396 | ) | |||||||||||
Second cycle leasing commissions | (502 | ) | (240 | ) | (1,631 | ) | (561 | ) | (28,253 | ) | (15,801 | ) | |||||||||||
Recurring CAPEX | (6,023 | ) | (1,496 | ) | (2,577 | ) | (700 | ) | (1,146 | ) | (556 | ) | |||||||||||
Total FAD Adjustments | $ | (19,824 | ) | $ | (8,887 | ) | $ | (16,929 | ) | $ | (10,242 | ) | $ | (41,621 | ) | $ | (23,557 | ) | |||||
First cycle tenant improvement | $ | 31,207 | $ | 13,285 | $ | 13,500 | $ | 5,973 | $ | 11,422 | $ | 5,255 | |||||||||||
First cycle leasing commissions | $ | 3,599 | $ | 1,815 | $ | 3,477 | $ | 1,457 | $ | 4,539 | $ | 2,213 | |||||||||||
Development costs | $ | 93,737 | $ | 66,919 | $ | 117,819 | $ | 93,466 | $ | 1,630 | $ | 829 | |||||||||||
Redevelopment costs | $ | 3,910 | $ | 3,588 | $ | 7,599 | $ | 3,954 | $ | 12,035 | $ | 6,463 | |||||||||||
Capitalized interest | $ | 9,368 | $ | 5,660 | $ | 5,899 | $ | 3,207 | $ | 4,998 | $ | 2,732 | |||||||||||
Supplemental Information | 19 | Third Quarter 2017 |
| ||
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) | | |
| ||
Nine Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||
Total | SLG Share | Total | SLG Share | ||||||||||||
Revenues | |||||||||||||||
Rental revenue, net | $ | 561,863 | $ | 232,283 | $ | 437,766 | $ | 166,521 | |||||||
Escalation and reimbursement revenues | 57,439 | 26,738 | 30,363 | 12,512 | |||||||||||
Investment income | 16,935 | 12,339 | 17,204 | 11,700 | |||||||||||
Other income | 6,973 | 3,052 | 12,975 | 6,189 | |||||||||||
Total Revenues, net | $ | 643,210 | $ | 274,412 | $ | 498,308 | $ | 196,922 | |||||||
Loss on early extinguishment of debt | (7,638 | ) | (3,819 | ) | (1,606 | ) | (972 | ) | |||||||
Expenses | |||||||||||||||
Operating expenses | $ | 115,996 | $ | 43,589 | $ | 89,147 | $ | 29,464 | |||||||
Ground rent | 12,612 | 6,027 | 10,670 | 5,335 | |||||||||||
Real estate taxes | 107,391 | 41,329 | 79,356 | 27,435 | |||||||||||
Transaction related costs, net of recoveries | 146 | 110 | 5,359 | 3,019 | |||||||||||
Total Operating Expenses | $ | 236,145 | $ | 91,055 | $ | 184,532 | $ | 65,253 | |||||||
Operating Income | $ | 399,427 | $ | 179,538 | $ | 312,170 | $ | 130,697 | |||||||
Interest expense, net of interest income | $ | 176,096 | $ | 67,862 | $ | 147,876 | $ | 53,686 | |||||||
Amortization of deferred financing costs | 17,994 | 6,524 | 17,667 | 6,083 | |||||||||||
Depreciation and amortization | 198,556 | 91,320 | 132,035 | 53,915 | |||||||||||
Net Income | $ | 6,781 | $ | 13,832 | $ | 14,592 | $ | 17,013 | |||||||
Real estate depreciation | 197,545 | 91,129 | 131,854 | 53,911 | |||||||||||
FFO Contribution | $ | 204,326 | $ | 104,961 | $ | 146,446 | $ | 70,924 | |||||||
FAD Adjustments: | |||||||||||||||
Non real estate depreciation and amortization | $ | 19,005 | $ | 6,715 | $ | 17,848 | $ | 6,087 | |||||||
Straight-line rental income and other non-cash adjustments | (55,029 | ) | (29,108 | ) | (44,652 | ) | (20,886 | ) | |||||||
Second cycle tenant improvement | (6,151 | ) | (2,828 | ) | (4,407 | ) | (2,295 | ) | |||||||
Second cycle leasing commissions | (2,404 | ) | (955 | ) | (29,838 | ) | (16,487 | ) | |||||||
Recurring CAPEX | (8,940 | ) | (2,401 | ) | (2,735 | ) | (1,435 | ) | |||||||
Total FAD Adjustments | $ | (53,519 | ) | $ | (28,577 | ) | $ | (63,784 | ) | $ | (35,016 | ) | |||
First cycle tenant improvement | $ | 57,005 | $ | 23,110 | $ | 41,617 | $ | 17,167 | |||||||
First cycle leasing commissions | $ | 10,162 | $ | 4,311 | $ | 17,531 | $ | 8,566 | |||||||
Development costs | $ | 215,729 | $ | 161,610 | $ | 2,967 | $ | 2,097 | |||||||
Redevelopment costs | $ | 27,724 | $ | 15,986 | $ | 33,241 | $ | 15,264 | |||||||
Capitalized interest | $ | 20,724 | $ | 11,833 | $ | 17,621 | $ | 9,508 | |||||||
Supplemental Information | 20 | Third Quarter 2017 |
| ||
SELECTED FINANCIAL DATA Net Operating Income Unaudited (Dollars in Thousands) | | |
| ||
Three Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||||
Net Operating Income (1) | $ | 174,344 | $ | 182,230 | $ | 185,974 | $ | 545,444 | $ | 742,096 | ||||||||||||
SLG share of property NOI from unconsolidated JVs | 58,730 | 44,390 | 56,072 | 171,267 | 119,779 | |||||||||||||||||
NOI including SLG share of unconsolidated JVs | $ | 233,074 | $ | 226,620 | $ | 242,046 | $ | 716,711 | $ | 861,875 | ||||||||||||
Partners' share of NOI - consolidated JVs | (8,832 | ) | (9,479 | ) | (9,589 | ) | (28,188 | ) | (27,116 | ) | ||||||||||||
NOI - SLG share | $ | 224,242 | $ | 217,141 | $ | 232,457 | $ | 688,523 | $ | 834,759 | ||||||||||||
NOI, including SLG share of unconsolidated JVs | $ | 233,074 | $ | 226,620 | $ | 242,046 | $ | 716,711 | $ | 861,875 | ||||||||||||
Free rent (net of amortization) | (4,888 | ) | (5,410 | ) | (6,057 | ) | (15,336 | ) | 57,181 | |||||||||||||
Net FAS 141 adjustment | (6,532 | ) | (1,850 | ) | (8,675 | ) | (23,065 | ) | (195,190 | ) | ||||||||||||
Straight-line revenue adjustment | (10,360 | ) | (20,134 | ) | (14,059 | ) | (40,319 | ) | (42,110 | ) | ||||||||||||
Allowance for straight-line tenant credit loss | (2,013 | ) | 8,424 | (108 | ) | (3,065 | ) | 10,390 | ||||||||||||||
Ground lease straight-line adjustment | 941 | 869 | 959 | 2,891 | 2,598 | |||||||||||||||||
Cash NOI, including SLG share of unconsolidated JVs | $ | 210,222 | $ | 208,519 | $ | 214,106 | $ | 637,817 | $ | 694,744 | ||||||||||||
Partners' share of cash NOI - consolidated JVs | (7,109 | ) | (7,572 | ) | (7,845 | ) | (22,380 | ) | (21,717 | ) | ||||||||||||
Cash NOI - SLG share | $ | 203,113 | $ | 200,947 | $ | 206,261 | $ | 615,437 | $ | 673,027 | ||||||||||||
(1) Includes SL Green Management Corp. and Emerge 212.Excludes lease termination income and the activity of 885 Third Avenue, which was sold in February 2016 but did not meet the criteria for sale accounting at that time and, therefore, remained consolidated until the first quarter of 2017. | ||||||||||||||||||||||
NOI Summary by Portfolio (1) - SLG Share | |||||||||||||||||
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||
NOI | Cash NOI | NOI | Cash NOI | ||||||||||||||
Manhattan Operating Properties | $ | 189,706 | $ | 172,856 | $ | 572,430 | $ | 516,562 | |||||||||
Suburban Operating Properties | 11,644 | 11,012 | 33,959 | 31,830 | |||||||||||||
Retail Operating Properties | 10,979 | 10,279 | 33,432 | 29,290 | |||||||||||||
Residential Operating Properties | 7,395 | 6,956 | 22,483 | 21,158 | |||||||||||||
Development/Redevelopment/Land | 5,852 | 3,229 | 19,525 | 10,215 | |||||||||||||
Total Operating and Development | 225,576 | 204,332 | 681,829 | 609,055 | |||||||||||||
Property Dispositions | (112 | ) | (112 | ) | 5,062 | 4,353 | |||||||||||
Other (2) | (1,222 | ) | (1,107 | ) | 1,632 | 2,029 | |||||||||||
Total | $ | 224,242 | $ | 203,113 | $ | 688,523 | $ | 615,437 | |||||||||
(1) Portfolio composition consistent with property tables found on pages 32-39 | |||||||||||||||||
(2) Includes SL Green Management Corp., Emerge 212 and Belmont | |||||||||||||||||
Supplemental Information | 21 | Third Quarter 2017 |
| ||
SELECTED FINANCIAL DATA 2017 Same Store Net Operating Income - Wholly Owned and Consolidated JVs Unaudited (Dollars in Thousands) | | |
| ||
Three Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||||
2017 | 2016 | % | 2017 | 2017 | 2016 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 270,893 | $ | 248,754 | 8.9 | % | $ | 271,073 | $ | 810,272 | $ | 773,273 | 4.8 | % | |||||||||||||
Escalation & reimbursement revenues | 44,401 | 50,166 | (11.5 | )% | 40,167 | 126,886 | 134,383 | (5.6 | )% | ||||||||||||||||||
Other income | 1,800 | 1,766 | 1.9 | % | 1,785 | 5,011 | 5,401 | (7.2 | )% | ||||||||||||||||||
Total Revenues | $ | 317,094 | $ | 300,686 | 5.5 | % | $ | 313,025 | $ | 942,169 | $ | 913,057 | 3.2 | % | |||||||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 70,460 | $ | 71,205 | (1.0 | )% | $ | 64,040 | $ | 203,048 | $ | 202,363 | 0.3 | % | |||||||||||||
Ground rent | 8,520 | 8,550 | (0.4 | )% | 8,520 | 25,561 | 25,591 | (0.1 | )% | ||||||||||||||||||
Real estate taxes | 63,873 | 60,932 | 4.8 | % | 60,240 | 184,110 | 176,140 | 4.5 | % | ||||||||||||||||||
$ | 142,853 | $ | 140,687 | 1.5 | % | $ | 132,800 | $ | 412,719 | $ | 404,094 | 2.1 | % | ||||||||||||||
Operating Income | $ | 174,241 | $ | 159,999 | 8.9 | % | $ | 180,225 | $ | 529,450 | $ | 508,963 | 4.0 | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 43,404 | $ | 45,871 | (5.4 | )% | $ | 43,550 | $ | 130,922 | $ | 136,495 | (4.1 | )% | |||||||||||||
Depreciation & amortization | 85,895 | 90,551 | (5.1 | )% | 82,100 | 251,778 | 249,515 | 0.9 | % | ||||||||||||||||||
Income before noncontrolling interest | $ | 44,942 | $ | 23,577 | 90.6 | % | $ | 54,575 | $ | 146,750 | $ | 122,953 | 19.4 | % | |||||||||||||
Plus: | Real estate depreciation & amortization | 85,829 | 90,482 | (5.1 | )% | 82,033 | 251,578 | 249,307 | 0.9 | % | |||||||||||||||||
FFO Contribution | $ | 130,771 | $ | 114,059 | 14.7 | % | $ | 136,608 | $ | 398,328 | $ | 372,260 | 7.0 | % | |||||||||||||
Less: | Non–building revenue | 990 | 484 | 104.5 | % | 1,015 | 2,900 | 1,685 | 72.1 | % | |||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 43,404 | 45,871 | (5.4 | )% | 43,550 | 130,922 | 136,495 | (4.1 | )% | |||||||||||||||||
Non-real estate depreciation | 66 | 69 | (4.3 | )% | 67 | 200 | 208 | (3.8 | )% | ||||||||||||||||||
NOI | $ | 173,251 | $ | 159,515 | 8.6 | % | $ | 179,210 | $ | 526,550 | $ | 507,278 | 3.8 | % | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Less: | Free rent (net of amortization) | $ | 3,262 | $ | 3,095 | 5.4 | % | $ | 4,933 | $ | 10,583 | $ | 4,876 | 117.0 | % | ||||||||||||
Straightline revenue adjustment | 4,580 | 9,093 | (49.6 | )% | 5,719 | 17,102 | 26,449 | (35.3 | )% | ||||||||||||||||||
Rental income - FAS 141 | 4,580 | (2,704 | ) | (269.4 | )% | 4,474 | 13,832 | 4,827 | 186.6 | % | |||||||||||||||||
Plus: | Ground lease straight-line adjustment | 524 | 565 | (7.3 | )% | 524 | 1,572 | 1,781 | (11.7 | )% | |||||||||||||||||
Allowance for S/L tenant credit loss | (2,013 | ) | 8,385 | (124.0 | )% | 46 | (2,623 | ) | 10,293 | (125.5 | )% | ||||||||||||||||
Cash NOI | $ | 159,340 | $ | 158,981 | 0.2 | % | $ | 164,654 | $ | 483,982 | $ | 483,200 | 0.2 | % | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 54.8 | % | 53.1 | % | 57.4 | % | 56.1 | % | 55.7 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 50.4 | % | 53.0 | % | 52.8 | % | 51.5 | % | 53.0 | % | |||||||||||||||||
NOI before ground rent/real estate revenue, net | 57.5 | % | 56.0 | % | 60.2 | % | 58.8 | % | 58.5 | % | |||||||||||||||||
Cash NOI before ground rent/real estate revenue, net | 52.9 | % | 55.6 | % | 55.3 | % | 54.1 | % | 55.6 | % | |||||||||||||||||
Supplemental Information | 22 | Third Quarter 2017 |
| ||
SELECTED FINANCIAL DATA 2017 Same Store Net Operating Income - Unconsolidated JVs Unaudited (Dollars in Thousands, SLG Share) | | |
| ||
Three Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||||
2017 | 2016 | % | 2017 | 2017 | 2016 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 44,893 | $ | 42,812 | 4.9 | % | $ | 44,021 | $ | 133,049 | $ | 128,441 | 3.6 | % | |||||||||||||
Escalation & reimbursement revenues | 4,881 | 3,875 | 26.0 | % | 3,848 | 12,848 | 9,922 | 29.5 | % | ||||||||||||||||||
Other income | 142 | 103 | 37.9 | % | 238 | 528 | 2,176 | (75.7 | )% | ||||||||||||||||||
Total Revenues | $ | 49,916 | $ | 46,790 | 6.7 | % | $ | 48,107 | $ | 146,425 | $ | 140,539 | 4.2 | % | |||||||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 8,591 | $ | 8,123 | 5.8 | % | $ | 7,655 | $ | 24,337 | $ | 22,954 | 6.0 | % | |||||||||||||
Ground rent | — | — | — | % | — | — | — | — | % | ||||||||||||||||||
Real estate taxes | 9,078 | 8,241 | 10.2 | % | 8,212 | 25,499 | 23,404 | 9.0 | % | ||||||||||||||||||
$ | 17,669 | $ | 16,364 | 8.0 | % | $ | 15,867 | $ | 49,836 | $ | 46,358 | 7.5 | % | ||||||||||||||
Operating Income | $ | 32,247 | $ | 30,426 | 6.0 | % | $ | 32,240 | $ | 96,589 | $ | 94,181 | 2.6 | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 14,869 | $ | 14,520 | 2.4 | % | $ | 14,024 | $ | 41,906 | $ | 50,274 | (16.6 | )% | |||||||||||||
Depreciation & amortization | 13,761 | 13,916 | (1.1 | )% | 14,499 | 42,858 | 39,895 | 7.4 | % | ||||||||||||||||||
Income before noncontrolling interest | $ | 3,617 | $ | 1,990 | 81.8 | % | $ | 3,717 | $ | 11,825 | $ | 4,012 | 194.7 | % | |||||||||||||
Plus: | Real estate depreciation & amortization | 13,760 | 13,916 | (1.1 | )% | 14,498 | 42,856 | 39,893 | 7.4 | % | |||||||||||||||||
FFO Contribution | $ | 17,377 | $ | 15,906 | 9.2 | % | $ | 18,215 | $ | 54,681 | $ | 43,905 | 24.5 | % | |||||||||||||
Less: | Non–building revenue | 134 | 98 | 36.7 | % | 229 | 504 | 377 | 33.7 | % | |||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 14,869 | 14,520 | 2.4 | % | 14,024 | 41,906 | 50,274 | (16.6 | )% | |||||||||||||||||
Non-real estate depreciation | 1 | — | — | % | 1 | 2 | 2 | — | % | ||||||||||||||||||
NOI | $ | 32,113 | $ | 30,328 | 5.9 | % | $ | 32,011 | $ | 96,085 | $ | 93,804 | 2.4 | % | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Less: | Free rent (net of amortization) | $ | (91 | ) | $ | 1,349 | (106.7 | )% | $ | (237 | ) | $ | (475 | ) | $ | 7,537 | (106.3 | )% | |||||||||
Straightline revenue adjustment | 2,705 | 1,714 | 57.8 | % | 2,759 | 8,218 | 4,420 | 85.9 | % | ||||||||||||||||||
Rental income - FAS 141 | 357 | 429 | (16.8 | )% | 409 | 1,245 | 1,312 | (5.1 | )% | ||||||||||||||||||
Plus: | Ground lease straight-line adjustment | — | — | — | % | — | — | — | — | % | |||||||||||||||||
Allowance for S/L tenant credit loss | — | — | — | % | 86 | 86 | — | — | % | ||||||||||||||||||
Cash NOI | $ | 29,142 | $ | 26,836 | 8.6 | % | $ | 29,166 | $ | 87,183 | $ | 80,535 | 8.3 | % | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 64.5 | % | 65.0 | % | 66.9 | % | 65.8 | % | 66.9 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 58.5 | % | 57.5 | % | 60.9 | % | 59.7 | % | 57.5 | % | |||||||||||||||||
NOI before ground rent/real estate revenue, net | 64.5 | % | 65.0 | % | 66.9 | % | 65.8 | % | 66.9 | % | |||||||||||||||||
Cash NOI before ground rent/real estate revenue, net | 58.5 | % | 57.5 | % | 60.9 | % | 59.7 | % | 57.5 | % | |||||||||||||||||
Supplemental Information | 23 | Third Quarter 2017 |
| ||
SELECTED FINANCIAL DATA 2017 Same Store Net Operating Income Unaudited (Dollars in Thousands) | | |
| ||
Three Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||||
2017 | 2016 | % | 2017 | 2017 | 2016 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 270,893 | $ | 248,754 | 8.9 | % | $ | 271,073 | $ | 810,272 | $ | 773,273 | 4.8 | % | |||||||||||||
Escalation & reimbursement revenues | 44,401 | 50,166 | (11.5 | )% | 40,167 | 126,886 | 134,383 | (5.6 | )% | ||||||||||||||||||
Other income | 1,800 | 1,766 | 1.9 | % | 1,785 | 5,011 | 5,401 | (7.2 | )% | ||||||||||||||||||
Total Revenues | $ | 317,094 | $ | 300,686 | 5.5 | % | $ | 313,025 | $ | 942,169 | $ | 913,057 | 3.2 | % | |||||||||||||
Equity in Net Income from Unconsolidated Joint Ventures (1) | $ | 3,617 | $ | 1,990 | 81.8 | % | $ | 3,717 | $ | 11,825 | $ | 4,012 | 194.7 | % | |||||||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 70,460 | $ | 71,205 | (1.0 | )% | $ | 64,040 | $ | 203,048 | $ | 202,363 | 0.3 | % | |||||||||||||
Ground rent | 8,520 | 8,550 | (0.4 | )% | 8,520 | 25,561 | 25,591 | (0.1 | )% | ||||||||||||||||||
Real estate taxes | 63,873 | 60,932 | 4.8 | % | 60,240 | 184,110 | 176,140 | 4.5 | % | ||||||||||||||||||
$ | 142,853 | $ | 140,687 | 1.5 | % | $ | 132,800 | $ | 412,719 | $ | 404,094 | 2.1 | % | ||||||||||||||
Operating Income | $ | 177,858 | $ | 161,989 | 9.8 | % | $ | 183,942 | $ | 541,275 | $ | 512,975 | 5.5 | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 43,404 | $ | 45,871 | (5.4 | )% | $ | 43,550 | $ | 130,922 | $ | 136,495 | (4.1 | )% | |||||||||||||
Depreciation & amortization | 85,895 | 90,551 | (5.1 | )% | 82,100 | 251,778 | 249,515 | 0.9 | % | ||||||||||||||||||
Income before noncontrolling interest | $ | 48,559 | $ | 25,567 | 89.9 | % | $ | 58,292 | $ | 158,575 | $ | 126,965 | 24.9 | % | |||||||||||||
Plus: | Real estate depreciation & amortization | 85,829 | 90,482 | (5.1 | )% | 82,033 | 251,578 | 249,307 | 0.9 | % | |||||||||||||||||
Joint Ventures Real estate depreciation & amortization (1) | 13,760 | 13,916 | (1.1 | )% | 14,498 | 42,856 | $ | 39,893 | 7.4 | % | |||||||||||||||||
FFO Contribution | $ | 148,148 | $ | 129,965 | 14.0 | % | $ | 154,823 | $ | 453,009 | $ | 416,165 | 8.9 | % | |||||||||||||
Less: | Non–building revenue | $ | 990 | $ | 484 | 104.5 | % | $ | 1,015 | $ | 2,900 | $ | 1,685 | 72.1 | % | ||||||||||||
Joint Ventures Non–building revenue (1) | 134 | 98 | 36.7 | % | 229 | 504 | 377 | 33.7 | % | ||||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 43,404 | 45,871 | (5.4 | )% | 43,550 | 130,922 | 136,495 | (4.1 | )% | |||||||||||||||||
Joint Ventures Interest expense & amortization of financing costs (1) | 14,869 | 14,520 | 2.4 | % | 14,024 | 41,906 | 50,274 | (16.6 | )% | ||||||||||||||||||
Non-real estate depreciation | 66 | 69 | (4.3 | )% | 67 | 200 | 208 | (3.8 | )% | ||||||||||||||||||
Joint Ventures Non-real estate depreciation (1) | 1 | — | — | % | 1 | 2 | 2 | — | % | ||||||||||||||||||
NOI | $ | 205,364 | $ | 189,843 | 8.2 | % | $ | 211,221 | $ | 622,635 | $ | 601,082 | 3.6 | % | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Non-cash adjustments | $ | (13,911 | ) | $ | (534 | ) | 2,505.1 | % | $ | (14,556 | ) | $ | (42,568 | ) | $ | (24,078 | ) | 76.8 | % | ||||||||
Joint Venture non-cash adjustments (1) | (2,971 | ) | (3,492 | ) | (14.9 | )% | (2,845 | ) | (8,902 | ) | (13,269 | ) | (32.9 | )% | |||||||||||||
Cash NOI | $ | 188,482 | $ | 185,817 | 1.4 | % | $ | 193,820 | $ | 571,165 | $ | 563,735 | 1.3 | % | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 56.1 | % | 54.7 | % | 58.7 | % | 57.4 | % | 57.2 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 51.5 | % | 53.6 | % | 53.9 | % | 52.6 | % | 53.6 | % | |||||||||||||||||
NOI before ground rent/real estate revenue, net | 58.5 | % | 57.2 | % | 61.1 | % | 59.7 | % | 59.6 | % | |||||||||||||||||
Cash NOI before ground rent/real estate revenue, net | 53.7 | % | 55.9 | % | 56.1 | % | 54.8 | % | 55.9 | % | |||||||||||||||||
(1) The amount represents the Company's share of same-store unconsolidated joint venture activity. The Company does not control investments in unconsolidated joint ventures. | |||||||||||||||||||||||||||
Supplemental Information | 24 | Third Quarter 2017 |
| ||
DEBT SUMMARY SCHEDULE Consolidated Unaudited (Dollars in Thousands) | | |
| ||
Principal | 2017 | Initial | Principal | As-Of | ||||||||||||||||||||||
Ownership | Outstanding | Principal | Maturity | Due at | Right | Earliest | ||||||||||||||||||||
Fixed rate debt | Interest (%) | 9/30/2017 | Coupon (1) | Amortization | Date | Maturity | Extension | Prepayment | ||||||||||||||||||
Secured fixed rate debt | ||||||||||||||||||||||||||
1 Madison Avenue | 100.0 | $ | 494,264 | 5.91% | $ | 31,653 | May-20 | $ | 404,531 | — | Nov-19 | |||||||||||||||
762 Madison Avenue | 90.0 | 771 | 5.00% | — | Feb-22 | 771 | — | Open | ||||||||||||||||||
100 Church Street | 100.0 | 218,237 | 4.68% | 3,860 | Jul-22 | 197,784 | — | Apr-22 | ||||||||||||||||||
919 Third Avenue | 51.0 | 500,000 | 5.12% | — | Jun-23 | 500,000 | — | Feb-23 | ||||||||||||||||||
420 Lexington Avenue | 100.0 | 300,000 | 3.99% | — | Oct-24 | 272,749 | — | Jul-24 | ||||||||||||||||||
1515 Broadway | 100.0 | 876,613 | 3.93% | 16,003 | Mar-25 | 737,436 | — | Sep-24 | ||||||||||||||||||
400 East 58th Street | 90.0 | 40,000 | 3.00% | — | Nov-26 | 33,840 | — | Aug-21 | ||||||||||||||||||
Landmark Square | 100.0 | 100,000 | 4.90% | — | Jan-27 | 100,000 | — | Oct-26 | ||||||||||||||||||
485 Lexington Avenue | 100.0 | 450,000 | 4.25% | — | Feb-27 | 450,000 | — | Oct-26 | ||||||||||||||||||
1080 Amsterdam | 92.5 | 36,363 | 3.58% | — | Feb-27 | 29,358 | — | Open | ||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | 250,000 | 4.17% | — | Feb-27 | 250,000 | — | Open | ||||||||||||||||||
$ | 3,266,248 | 4.54% | $ | 51,516 | $ | 2,976,469 | ||||||||||||||||||||
Unsecured fixed rate debt | ||||||||||||||||||||||||||
Convertible notes | $ | 268,628 | 3.00% | $ | — | Oct-17 | $ | 269,000 | — | Open | ||||||||||||||||
Unsecured loan | 16,000 | 4.81% | — | Jun-18 | 16,000 | — | Open | |||||||||||||||||||
Unsecured notes | 249,934 | 5.00% | — | Aug-18 | 250,000 | — | Jun-18 | |||||||||||||||||||
Term loan (swapped) | 500,000 | 2.34% | — | Jun-19 | (2) | 500,000 | — | Open | ||||||||||||||||||
Term loan (swapped) | 300,000 | 2.54% | — | Jun-19 | (3) | 300,000 | — | Open | ||||||||||||||||||
Unsecured notes | 250,000 | 7.75% | — | Mar-20 | 250,000 | — | Open | |||||||||||||||||||
Unsecured notes | 200,000 | 4.50% | — | Dec-22 | 200,000 | — | Open | |||||||||||||||||||
Unsecured notes | 100,000 | 4.27% | — | Dec-25 | 100,000 | — | Open | |||||||||||||||||||
Series J Preferred Units | 4,000 | 3.75% | — | Apr-51 | 4,000 | — | Open | |||||||||||||||||||
$ | 1,888,562 | 3.89% | $ | — | $ | 1,889,000 | ||||||||||||||||||||
Total Fixed Rate Debt | $ | 5,154,810 | 4.30% | $ | 51,516 | $ | 4,865,469 | |||||||||||||||||||
Floating rate debt | ||||||||||||||||||||||||||
Secured floating rate debt | ||||||||||||||||||||||||||
719 Seventh Avenue (LIBOR + 305 bps) | 75.0 | $ | 41,171 | 4.28% | $ | — | Feb-18 | $ | 41,171 | — | Open | |||||||||||||||
187 Broadway & 5-7 Dey Street (LIBOR + 269.5 bps) | 100.0 | 58,000 | 3.93% | — | May-18 | 58,000 | — | Open | ||||||||||||||||||
Debt & preferred equity facility (LIBOR + 313 bps) | 184,642 | 4.36% | — | Jul-18 | 184,642 | Jul-19 | Open | |||||||||||||||||||
220 East 42nd St. (LIBOR + 160 bps) | 100.0 | 275,000 | 2.83% | — | Oct-20 | 275,000 | — | Open | ||||||||||||||||||
$ | 558,813 | 3.56% | $ | — | $ | 558,813 | ||||||||||||||||||||
Unsecured floating rate debt | ||||||||||||||||||||||||||
Revolving credit facility (LIBOR + 125 bps) | $ | 280,000 | 2.48% | $ | — | Mar-19 | $ | 280,000 | Mar-20 | Open | ||||||||||||||||
Term loan (LIBOR + 140 bps) | 383,000 | 2.63% | — | Jun-19 | 383,000 | — | Open | |||||||||||||||||||
Junior subordinated deferrable interest debentures (3mo. LIBOR + 125 bps) | 100,000 | 2.58% | — | Jul-35 | 100,000 | — | Open | |||||||||||||||||||
$ | 763,000 | 2.57% | $ | — | $ | 763,000 | ||||||||||||||||||||
Total Floating Rate Debt | $ | 1,321,813 | 2.99% | $ | — | $ | 1,321,813 | |||||||||||||||||||
Total Debt - Consolidated | $ | 6,476,623 | 4.04% | $ | 51,516 | $ | 6,187,282 | |||||||||||||||||||
Deferred financing costs | (52,667 | ) | ||||||||||||||||||||||||
Total Debt - Consolidated, net | $ | 6,423,956 | 4.04% | |||||||||||||||||||||||
Total Debt - Joint Venture, net | $ | 3,135,983 | 3.63% | |||||||||||||||||||||||
Total Debt including SLG share of unconsolidated JV Debt | $ | 9,667,925 | 3.90% | |||||||||||||||||||||||
Weighted Average Balance & Interest Rate for the quarter, including SLG share of JV Debt | $ | 9,687,468 | 3.87% | |||||||||||||||||||||||
(1) Coupon for floating rate debt determined using the effective LIBOR rate at the end of the quarter. Coupon for loans that are subject to LIBOR floors were determined using the LIBOR floors. | ||||||||||||||||||||||||||
(2) The interest rate swaps mature in December 2017. | ||||||||||||||||||||||||||
(3) The interest rate swaps mature in July 2023. | ||||||||||||||||||||||||||
Supplemental Information | 25 | Third Quarter 2017 |
| ||
DEBT SUMMARY SCHEDULE Unconsolidated JVs Unaudited (Dollars in Thousands) | | |
| ||
Principal Outstanding | 2017 | Initial | Principal | As-Of | |||||||||||||||||||||||||
Ownership | 9/30/2017 | Principal Amortization | Maturity | Due at Maturity | Right | Earliest | |||||||||||||||||||||||
Fixed rate debt | Interest (%) | Gross Principal | SLG Share | Coupon (1) | (SLG Share) | Date | (SLG Share) | Extension | Prepayment | ||||||||||||||||||||
521 Fifth Avenue (swapped) | 50.5 | $ | 170,000 | $ | 85,850 | 3.73% | $ | — | Nov-19 | $ | 85,850 | — | Open | ||||||||||||||||
717 Fifth Avenue (mortgage) | 10.9 | 300,000 | 32,748 | 4.45% | — | Jul-22 | 32,748 | — | Open | ||||||||||||||||||||
717 Fifth Avenue (mezzanine) | 10.9 | 355,328 | 38,788 | 5.50% | — | Jul-22 | 38,788 | — | Mar-22 | ||||||||||||||||||||
650 Fifth Avenue | 50.0 | 225,000 | 112,500 | 4.54% | — | Oct-22 | 112,500 | — | Open | ||||||||||||||||||||
21 East 66th Street | 32.3 | 12,000 | 3,874 | 3.60% | — | Apr-23 | 3,874 | — | Open | ||||||||||||||||||||
3 Columbus Circle | 48.9 | 350,000 | 171,150 | 3.61% | — | Mar-25 | 171,150 | — | Sep-24 | ||||||||||||||||||||
11 Madison Avenue | 60.0 | 1,400,000 | 840,000 | 3.84% | — | Sep-25 | 840,000 | — | Mar-25 | ||||||||||||||||||||
800 Third Avenue (swapped) | 60.5 | 177,000 | 107,120 | 3.37% | — | Feb-26 | 107,120 | — | Open | ||||||||||||||||||||
400 East 57th Street | 41.0 | 100,000 | 41,000 | 3.00% | — | Nov-26 | 35,889 | — | Open | ||||||||||||||||||||
Stonehenge Portfolio | Various | 359,095 | (2) | 21,607 | 4.17% | 431 | Various | (2) | 19,735 | — | Open | ||||||||||||||||||
Total Fixed Rate Debt | $ | 3,448,423 | $ | 1,454,637 | 3.86% | (3) | $ | 431 | $ | 1,447,654 | |||||||||||||||||||
Floating rate debt | |||||||||||||||||||||||||||||
55 West 46th Street - Tower 46 (LIBOR + 230 bps) | 25.0 | $ | 165,328 | $ | 41,332 | 3.53% | $ | — | Oct-17 | $ | 41,332 | — | Open | ||||||||||||||||
175-225 3rd Street (Prime + 100 bps) | 95.0 | 40,000 | 38,000 | 5.25% | — | Dec-17 | 38,000 | — | Open | ||||||||||||||||||||
Jericho Plaza (LIBOR + 415 bps) | 11.7 | 79,530 | 9,281 | 5.38% | — | Mar-18 | 9,281 | Mar-19 | Open | ||||||||||||||||||||
724 Fifth Avenue (LIBOR + 243 bps) | 50.0 | 275,000 | 137,500 | 3.66% | — | Apr-18 | 137,500 | Apr-19 | Open | ||||||||||||||||||||
1552 Broadway (LIBOR + 417 bps) | 50.0 | 185,410 | 92,705 | 5.40% | — | Apr-18 | 92,705 | — | Open | ||||||||||||||||||||
280 Park Avenue (LIBOR + 173 bps) | 50.0 | 1,200,000 | 600,000 | 2.96% | — | Sep-19 | 600,000 | Sep-24 | Open | ||||||||||||||||||||
121 Greene Street (LIBOR + 150 bps) | 50.0 | 15,000 | 7,500 | 2.73% | — | Nov-19 | 7,500 | — | Open | ||||||||||||||||||||
1745 Broadway (LIBOR + 185 bps) | 56.9 | 345,000 | 196,202 | 3.08% | — | Jan-20 | 196,202 | — | Open | ||||||||||||||||||||
10 East 53rd Street (LIBOR + 225 bps) | 55.0 | 170,000 | 93,500 | 3.48% | — | Feb-20 | 93,500 | — | Open | ||||||||||||||||||||
131-137 Spring Street (LIBOR + 155 bps) | 20.0 | 141,000 | 28,200 | 2.78% | — | Aug-20 | 28,200 | — | Open | ||||||||||||||||||||
11 West 34th Street (LIBOR + 145 bps) | 30.0 | 23,000 | 6,900 | 2.68% | — | Jan-21 | 6,900 | Jan-23 | Open | ||||||||||||||||||||
100 Park Avenue (LIBOR + 175 bps) | 49.9 | 360,000 | 179,640 | 2.98% | — | Feb-21 | 175,859 | — | Open | ||||||||||||||||||||
One Vanderbilt (LIBOR + 350 bps) | 71.0 | 271,229 | 192,600 | 4.73% | — | Sep-21 | 192,600 | — | Open | ||||||||||||||||||||
605 West 42nd Street - Sky (LIBOR + 144 bps) | 20.0 | 550,000 | 110,000 | 2.67% | — | Aug-27 | 110,000 | — | Open | ||||||||||||||||||||
21 East 66th Street (T 12 mos + 275 bps) | 32.3 | 1,667 | 538 | 4.06% | 26 | Jun-33 | 4 | — | Open | ||||||||||||||||||||
Stonehenge Portfolio (Various) | Various | 55,340 | 2,767 | 2.48% | — | Various | 2,767 | — | Open | ||||||||||||||||||||
Total Floating Rate Debt | $ | 3,877,504 | $ | 1,736,665 | 3.44% | (3) | $ | 26 | $ | 1,732,350 | |||||||||||||||||||
Total unconsolidated JV Debt | $ | 7,325,927 | $ | 3,191,302 | 3.63% | (3) | $ | 457 | $ | 3,180,004 | |||||||||||||||||||
Deferred financing costs | (127,318 | ) | (55,319 | ) | |||||||||||||||||||||||||
Total unconsolidated JV Debt, net | $ | 7,198,609 | $ | 3,135,983 | 3.63% | ||||||||||||||||||||||||
(1) Coupon for floating rate debt determined using the effective LIBOR rate at the end of the quarter. Coupon for loans that are subject to LIBOR floors were determined using the LIBOR floors. | |||||||||||||||||||||||||||||
(2) Amount is comprised of $34.0 million, $137.7 million, $172.5 million, and $14.9 million in fixed-rate mortgages that mature in November 2017, August 2019, June 2024, and February 2027, respectively. | |||||||||||||||||||||||||||||
(3) The weighted average coupon is calculated based on SL Green's share of the outstanding debt. | |||||||||||||||||||||||||||||
Covenants | Composition of Debt | ||||||||||||||||||||||||||||
SL GREEN REALTY CORP. | |||||||||||||||||||||||||||||
Revolving Credit Facility Covenants | Fixed Rate Debt | ||||||||||||||||||||||||||||
Actual | Required | Consolidated | $ | 5,154,810 | |||||||||||||||||||||||||
Total Debt / Total Assets | 39.3% | Less than 60% | SLG Share of JV | 1,454,637 | |||||||||||||||||||||||||
Fixed Charge Coverage | 2.41x | Greater than 1.5x | Total Fixed Rate Debt | $ | 6,609,447 | 68.4% | |||||||||||||||||||||||
Floating Rate Debt | |||||||||||||||||||||||||||||
Consolidated | $ | 1,321,813 | |||||||||||||||||||||||||||
Unsecured Notes Covenants | SLG Share of JV | 1,736,665 | |||||||||||||||||||||||||||
Actual | Required | 3,058,478 | |||||||||||||||||||||||||||
Total Debt / Total Assets | 31.7% | Less than 60% | Debt & Preferred Equity and Other Investments | (1,214,798 | ) | ||||||||||||||||||||||||
Secured Debt / Total Assets | 18.9% | Less than 40% | Total Floating Rate Debt | $ | 1,843,680 | 19.1% | |||||||||||||||||||||||
Debt Service Coverage | 5.14x | Greater than 1.5x | |||||||||||||||||||||||||||
Unencumbered Assets / Unsecured Debt | 572.7% | Greater than 150% | Total Debt | $ | 9,667,925 | ||||||||||||||||||||||||
Supplemental Information | 26 | Third Quarter 2017 |
| ||
DEBT SUMMARY SCHEDULE Reckson Operating Partnership Unaudited (Dollars in Thousands) |  | |
| ||
Principal | 2017 | Initial | Principal | As-Of | ||||||||||||||||||||||
Ownership | Outstanding | Principal | Maturity | Due at | Right | Earliest | ||||||||||||||||||||
Fixed rate debt | Interest (%) | 9/30/2017 | Coupon (1) | Amortization | Date | Maturity | Extension | Prepayment | ||||||||||||||||||
Secured fixed rate debt | ||||||||||||||||||||||||||
919 Third Avenue | 51.0 | $ | 500,000 | 5.12 | % | $ | — | Jun-23 | $ | 500,000 | — | Feb-23 | ||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | 250,000 | 4.17 | % | — | Feb-27 | 250,000 | — | Open | |||||||||||||||||
$ | 750,000 | 4.80 | % | $ | — | $ | 750,000 | |||||||||||||||||||
Unsecured fixed rate debt | ||||||||||||||||||||||||||
Unsecured notes | $ | 249,934 | 5.00 | % | $ | — | Aug-18 | $ | 250,000 | — | Jun-18 | |||||||||||||||
Term loan (swapped) | 500,000 | 2.34 | % | — | Jun-19 | (2) | 500,000 | — | Open | |||||||||||||||||
Term loan (swapped) | 300,000 | 2.54 | % | — | Jun-19 | (3) | 300,000 | — | Open | |||||||||||||||||
Unsecured notes | 250,000 | 7.75 | % | — | Mar-20 | 250,000 | — | Open | ||||||||||||||||||
Unsecured notes | 200,000 | 4.50 | % | — | Dec-22 | 200,000 | — | Open | ||||||||||||||||||
Unsecured notes | 100,000 | 4.27 | % | — | Dec-25 | 100,000 | — | Open | ||||||||||||||||||
$ | 1,599,934 | 4.03 | % | $ | — | $ | 1,600,000 | |||||||||||||||||||
Total Fixed Rate Debt | $ | 2,349,934 | 4.28 | % | $ | — | $ | 2,350,000 | ||||||||||||||||||
Floating rate debt | ||||||||||||||||||||||||||
Secured floating rate debt | ||||||||||||||||||||||||||
Debt & preferred equity facility (LIBOR + 313 bps) | $ | 184,642 | 4.36 | % | $ | — | Jul-18 | $ | 184,642 | Jul-19 | Open | |||||||||||||||
$ | 184,642 | 4.36 | % | $ | — | $ | 184,642 | |||||||||||||||||||
Unsecured floating rate debt | ||||||||||||||||||||||||||
Revolving credit facility (LIBOR + 125 bps) | $ | 280,000 | 2.48 | % | $ | — | Mar-19 | $ | 280,000 | Mar-20 | Open | |||||||||||||||
Term loan (LIBOR + 140 bps) | 383,000 | 2.63 | % | — | Jun-19 | 383,000 | — | Open | ||||||||||||||||||
$ | 663,000 | 2.57 | % | $ | — | $ | 663,000 | |||||||||||||||||||
Total Floating Rate Debt | $ | 847,642 | 2.96 | % | $ | — | $ | 847,642 | ||||||||||||||||||
Total Debt - Consolidated | $ | 3,197,576 | 3.93 | % | $ | — | $ | 3,197,642 | ||||||||||||||||||
(1) Coupon for floating rate debt determined using the effective LIBOR rate at the end of the quarter. Coupon for loans that are subject to LIBOR floors were determined using the LIBOR floors. | ||||||||||||||||||||||||||
(2) The interest rate swaps mature in December 2017. | ||||||||||||||||||||||||||
(3) The interest rate swaps mature in July 2023. | ||||||||||||||||||||||||||
Covenants | ||||||||||||||||||||||||||
RECKSON OPERATING PARTNERSHIP, L.P. | ||||||||||||||||||||||||||
Revolving Credit Facility Covenants | ||||||||||||||||||||||||||
Actual | Required | |||||||||||||||||||||||||
Total Debt / Total Assets | 37.9% | Less than 60% | ||||||||||||||||||||||||
Fixed Charge Coverage | 4.69x | Greater than 1.5x | ||||||||||||||||||||||||
Secured Debt / Total Assets | 10.0% | Less than 40% | ||||||||||||||||||||||||
Unsecured Debt / Unencumbered Assets | 41.4% | Less than 60% | ||||||||||||||||||||||||
Unsecured Notes Covenants | ||||||||||||||||||||||||||
Actual | Required | |||||||||||||||||||||||||
Total Debt / Total Assets | 31.7% | Less than 60% | ||||||||||||||||||||||||
Secured Debt / Total Assets | 18.9% | Less than 40% | ||||||||||||||||||||||||
Debt Service Coverage | 5.14x | Greater than 1.5x | ||||||||||||||||||||||||
Unencumbered Assets / Unsecured Debt | 572.7% | Greater than 150% | ||||||||||||||||||||||||
Supplemental Information | 27 | Third Quarter 2017 |
| ||
SUMMARY OF GROUND LEASE ARRANGEMENTS Unaudited (Dollars in Thousands) | | |
| ||
Deferred Land | |||||||||||||||||||||||||||||
2017 Scheduled | 2018 Scheduled | 2019 Scheduled | 2020 Scheduled | Lease | Year of | ||||||||||||||||||||||||
Property | Cash Payment | Cash Payment | Cash Payment | Cash Payment | Obligations (1) | Maturity | |||||||||||||||||||||||
Consolidated Ground Lease Arrangements | |||||||||||||||||||||||||||||
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 | 722 | 2027 | (3) | ||||||||||||||||||||||
711 Third Avenue | 5,500 | 5,500 | 5,500 | 5,500 | 1,143 | 2033 | (4) | ||||||||||||||||||||||
1185 Avenue of the Americas | 6,909 | 6,909 | 6,909 | 6,909 | — | 2043 | |||||||||||||||||||||||
420 Lexington Avenue | 10,899 | 10,899 | 10,899 | 11,174 | — | 2050 | (5) | ||||||||||||||||||||||
1055 Washington Blvd, Stamford | 615 | 615 | 615 | 615 | — | 2090 | |||||||||||||||||||||||
1080 Amsterdam Avenue | 209 | 209 | 226 | 314 | — | 2111 | |||||||||||||||||||||||
30 East 40th Street | 204 | 204 | 204 | 212 | 1,210 | 2114 | |||||||||||||||||||||||
Total | $ | 31,049 | $ | 31,049 | $ | 31,066 | $ | 31,437 | $ | 3,075 | |||||||||||||||||||
Capitalized Leases | |||||||||||||||||||||||||||||
1080 Amsterdam Avenue | $ | 291 | $ | 291 | $ | 315 | $ | 436 | $ | 21,767 | 2111 | ||||||||||||||||||
30 East 40th Street | 2,096 | 2,096 | 2,096 | 2,183 | 20,893 | 2114 | |||||||||||||||||||||||
Total | $ | 2,387 | $ | 2,387 | $ | 2,411 | $ | 2,619 | $ | 42,660 | |||||||||||||||||||
Unconsolidated Joint Venture Ground Lease Arrangements (SLG Share) | |||||||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||||||
650 Fifth Avenue (Floors b-3) | $ | 1,167 | $ | 1,183 | $ | 1,284 | $ | 1,284 | $ | 2,623 | 2062 | ||||||||||||||||||
650 Fifth Avenue (Floors 4-6) | — | 18 | 1,645 | 1,645 | 1,336 | 2033 | |||||||||||||||||||||||
333 East 22nd Street | 108 | 135 | 217 | 217 | 636 | 2115 | |||||||||||||||||||||||
Total | $ | 1,275 | $ | 1,336 | $ | 3,146 | $ | 3,146 | $ | 4,595 | |||||||||||||||||||
Capitalized Leases | |||||||||||||||||||||||||||||
650 Fifth Avenue (Floors 1-3) | $ | 6,086 | $ | 6,169 | $ | 6,695 | $ | 6,695 | $ | 94,176 | 2062 | ||||||||||||||||||
(1) Per the balance sheet at September 30, 2017. | |||||||||||||||||||||||||||||
(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 two 15-year renewals at the Company's option through 2080. | |||||||||||||||||||||||||||||
Supplemental Information | 28 | Third Quarter 2017 |
| ||
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands) | | |
| ||
Weighted Average Book | Weighted Average | Current | ||||||||||||||||||
Book Value (1) | Value During Quarter | Yield During Quarter (2) | Yield (3) | |||||||||||||||||
9/30/2016 | $ | 1,453,234 | $ | 1,383,096 | 9.37% | 9.23% | ||||||||||||||
Debt originations/accretion(4) | 424,414 | |||||||||||||||||||
Preferred Equity originations/accretion(4) | 30 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (237,266 | ) | ||||||||||||||||||
12/31/2016 | $ | 1,640,412 | $ | 1,511,273 | 9.30% | 9.31% | ||||||||||||||
Debt originations/accretion(4) | 403,888 | |||||||||||||||||||
Preferred Equity originations/accretion(4) | 30 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (416,494 | ) | ||||||||||||||||||
3/31/2017 | $ | 1,627,836 | $ | 1,647,359 | 9.35% | 9.39% | ||||||||||||||
Debt originations/accretion(4) | 455,667 | |||||||||||||||||||
Preferred Equity originations/accretion(4) | 143,323 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (240,413 | ) | ||||||||||||||||||
6/30/2017 | $ | 1,986,413 | $ | 2,064,131 | 9.16% | (5) | 9.28% | (5) | ||||||||||||
Debt originations/accretion(4) | 84,939 | |||||||||||||||||||
Preferred Equity originations/accretion(4) | 660 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (51,273 | ) | ||||||||||||||||||
9/30/2017 | $ | 2,020,739 | (6) | $ | 2,032,166 | 9.40% | (5) | 9.28% | (5) | |||||||||||
(1) Net of unamortized fees, discounts, and premiums. | ||||||||||||||||||||
(2) Excludes accelerated fee income resulting from early repayment. | ||||||||||||||||||||
(3) Calculated based on accounting income, which includes cash interest, paid-in-kind interest, fee accrual and amortization of discounts, recognized in the last month of the quarter, excluding accelerated fee income resulting from early repayment. | ||||||||||||||||||||
(4) Accretion includes amortization of fees and discounts and paid-in-kind investment income. | ||||||||||||||||||||
(5) Excludes loans secured by the leasehold interest in 2 Herald Square which were in maturity default at the time of acquisition in April and May 2017. The loans were put on non-accrual in August 2017 when one of the investors in the borrower did not repay the loan notwithstanding the approval to do so rendered by a court in a litigation separate from the foreclosure. No impairment was recorded as the Company believes that the fair value of the property exceeds the carrying amount of the loans. The loans had an outstanding balance including accrued interest of $259.3 million at the time that they were put on non accrual status. | ||||||||||||||||||||
(6) Excludes debt and preferred equity investments totaling $130.9 million with a weighted average current yield of 8.68% that are included in other balance sheet line items. | ||||||||||||||||||||
Supplemental Information | 29 | Third Quarter 2017 |
| ||
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) | | |
| ||
Book Value | Senior | Weighted Average | Weighted Average | Current | ||||||||||||||||||||||||||||
Type of Investment | Floating rate | Fixed rate | Total | Financing | Exposure PSF | Yield During Quarter (1) | Yield (2) | |||||||||||||||||||||||||
Senior Mortgage Debt | $ | 346,103 | $ | 226,778 | $ | 572,881 | $ | — | $ | 510 | 7.20% | (3) | 7.17% | (3) | ||||||||||||||||||
Junior Mortgage Participation | 76,391 | 50,013 | 126,404 | 294,094 | $ | 2,101 | 10.03% | (3) | 10.04% | (3) | ||||||||||||||||||||||
Mezzanine Debt | 787,307 | 390,167 | 1,177,474 | 6,900,194 | $ | 1,580 | 10.32% | 10.19% | ||||||||||||||||||||||||
Preferred Equity | — | 143,980 | 143,980 | 272,000 | $ | 655 | 6.99% | 6.98% | ||||||||||||||||||||||||
Balance as of 9/30/17 | $ | 1,209,801 | $ | 810,938 | $ | 2,020,739 | (4) | $ | 7,466,288 | $ | 1,243 | 9.40% | (3) | 9.28% | (3) | |||||||||||||||||
(1) Excludes accelerated fee income resulting from early repayment. | ||||||||||||||||||||||||||||||||
(2) Calculated based on accounting income, which includes cash interest, paid-in-kind interest, fee accrual and amortization of discounts, recognized in the last month of the quarter, excluding accelerated fee income resulting from early repayment. | ||||||||||||||||||||||||||||||||
(3) Excludes loans secured by the leasehold interest in 2 Herald Square which were in maturity default at the time of acquisition in April and May 2017. The loans were put on non-accrual in August 2017 when one of the investors in the borrower did not repay the loan notwithstanding the approval to do so rendered by a court in a litigation separate from the foreclosure. No impairment was recorded as the Company believes that the fair value of the property exceeds the carrying amount of the loans. The loans had an outstanding balance including accrued interest of $259.3 million at the time that they were put on non accrual status. | ||||||||||||||||||||||||||||||||
(4) Net of unamortized fees, discounts, and premiums. Excludes debt and preferred equity investments totaling $130.9 million with a weighted average current yield of 8.68% that are included in other balance sheet line items. | ||||||||||||||||||||||||||||||||
Debt and Preferred Equity Maturity Profile (1) | ||||||||
2017 | 2018 | 2019 | 2020 | 2021 & Thereafter | ||||
Floating Rate | 68,676 | 502,705 | 500,275 | 122,518 | 15,627 | |||
Fixed Rate | — | — | 26,352 | 202,032 | 332,390 | |||
Sub-total | 68,676 | 502,705 | 526,627 | 324,550 | 348,017 | |||
2 Herald Square | 250,164 | — | — | — | — | |||
Grand Total | 318,840 | 502,705 | 526,627 | 324,550 | 348,017 | |||
(1) Excluding 2 Herald Square, the weighted average maturity of the outstanding balance is 2.29 years. Approximately 59.9% of our portfolio of investments have extension options, some of which may be subject to certain conditions for extension. The weighted average maturity of the fully extended outstanding balance is 3.56 years. | ||||||||
Supplemental Information | 30 | Third Quarter 2017 |
| ||
10 LARGEST DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) | | |
| ||
Book Value (1)(2) | Property | Senior | Current | ||||||||||||||||||
Investment Type | 9/30/2017 | Type | Location | Financing | Last $ PSF (3) | Yield (4) | |||||||||||||||
Mezzanine Loan | $ | 201,757 | Office | Manhattan | $ | 1,160,000 | $ | 1,187 | 9.35% | ||||||||||||
Mortgage and Mezzanine Loans | 158,757 | Commercial/Multi-Family Rental Land | Manhattan | — | $ | 288 | 8.81% | ||||||||||||||
Preferred Equity | 143,980 | Office | Manhattan | 272,000 | $ | 655 | 6.98% | ||||||||||||||
Mezzanine Loan | 130,350 | Retail/Multi-Family Rental | Manhattan | — | $ | 882 | 8.86% | ||||||||||||||
Mezzanine Loan | 74,683 | Multi-Family Rental | Manhattan | 335,000 | $ | 752 | 8.52% | ||||||||||||||
Mezzanine Loan | 74,314 | Office | Manhattan | 229,084 | $ | 572 | 10.28% | ||||||||||||||
Mezzanine Loan | 72,597 | Multi-Family Rental | Manhattan | 537,748 | $ | 856 | 10.05% | ||||||||||||||
Mezzanine Loan | 71,067 | Office | Manhattan | 289,621 | $ | 63 | 12.03% | ||||||||||||||
Mortgage and Jr. Mortgage Participation Loans | 69,705 | Office/Retail | Brooklyn | 194,094 | $ | 400 | 9.68% | ||||||||||||||
Mezzanine Loan | 58,598 | Office | Manhattan | 171,939 | $ | 581 | 9.77% | ||||||||||||||
Total | $ | 1,055,808 | $ | 3,189,486 | 9.17% | ||||||||||||||||
(1) Net of unamortized fees, discounts, and premiums. | |||||||||||||||||||||
(2) Excludes loans secured by the leasehold interest in 2 Herald Square which were in maturity default at the time of acquisition in April and May 2017. The loans were put on non-accrual in August 2017 when one of the investors in the borrower did not repay the loan notwithstanding the approval to do so rendered by a court in a litigation separate from the foreclosure. No impairment was recorded as the Company believes that the fair value of the property exceeds the carrying amount of the loans. The loans had an outstanding balance including accrued interest of $259.3 million at the time that they were put on non accrual status. | |||||||||||||||||||||
(3) Reflects the last dollar of exposure to the Company's most junior position. | |||||||||||||||||||||
(4) Calculated based on accounting income, which includes cash interest, paid-in-kind interest, fee accrual and amortization of discounts, recognized in the last month of the quarter, excluding accelerated fee income resulting from early repayment. | |||||||||||||||||||||
Supplemental Information | 31 | Third Quarter 2017 |
| ||
SELECTED PROPERTY DATA Manhattan Operating Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized Cash Rent | Total | |||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Cash Rent ($'s) | 100% | SLG% | Tenants | |||||||||||||||||
CONSOLIDATED PROPERTIES | ||||||||||||||||||||||||||||||||
"Same Store" | ||||||||||||||||||||||||||||||||
100 Church Street | 100.0 | Downtown | Fee Interest | 1 | 1,047,500 | 3.9 | 99.6 | 99.6 | 99.4 | 99.5 | 99.5 | $43,572 | 4.3 | 3.2 | 18 | |||||||||||||||||
110 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 215,400 | 0.8 | 66.6 | 73.3 | 91.0 | 92.0 | 99.9 | 7,954 | 0.8 | 0.6 | 20 | |||||||||||||||||
125 Park Avenue | 100.0 | Grand Central | Fee Interest | 1 | 604,245 | 2.2 | 99.6 | 99.3 | 98.4 | 99.9 | 99.9 | 41,255 | 4.0 | 3.0 | 27 | |||||||||||||||||
220 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 1,135,000 | 4.2 | 58.0 | 57.9 | 76.0 | 75.8 | 79.5 | 37,241 | 3.6 | 2.7 | 29 | |||||||||||||||||
304 Park Avenue South | 100.0 | Midtown South | Fee Interest | 1 | 215,000 | 0.8 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 15,558 | 1.5 | 1.1 | 12 | |||||||||||||||||
420 Lexington Ave (Graybar) | 100.0 | Grand Central North | Leasehold Interest | 1 | 1,188,000 | 4.4 | 97.6 | 98.1 | 96.8 | 97.0 | 98.6 | 81,413 | 8.0 | 6.0 | 210 | |||||||||||||||||
461 Fifth Avenue | 100.0 | Midtown | Leasehold Interest (1) | 1 | 200,000 | 0.7 | 99.9 | 99.9 | 99.9 | 99.9 | 99.9 | 18,877 | 1.8 | 1.4 | 10 | |||||||||||||||||
485 Lexington Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 921,000 | 3.4 | 69.7 | 69.7 | 75.7 | 96.8 | 96.6 | 47,159 | 4.6 | 3.5 | 27 | |||||||||||||||||
555 West 57th Street | 100.0 | Midtown West | Fee Interest | 1 | 941,000 | 3.5 | 99.9 | 99.9 | 99.9 | 99.9 | 99.9 | 42,302 | 4.1 | 3.1 | 9 | |||||||||||||||||
609 Fifth Avenue | 100.0 | Rockefeller Center | Fee Interest | 1 | 160,000 | 0.6 | 68.3 | 72.8 | 72.8 | 76.6 | 76.6 | 15,197 | 1.5 | 1.1 | 11 | |||||||||||||||||
625 Madison Avenue | 100.0 | Plaza District | Leasehold Interest | 1 | 563,000 | 2.1 | 98.8 | 98.8 | 98.8 | 98.8 | 98.8 | 61,180 | 6.0 | 4.5 | 25 | |||||||||||||||||
635 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 104,000 | 0.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 9,343 | 0.9 | 0.7 | 2 | |||||||||||||||||
641 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 163,000 | 0.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 14,054 | 1.4 | 1.0 | 6 | |||||||||||||||||
711 Third Avenue | 100.0 (2) | Grand Central North | Leasehold Interest | 1 | 524,000 | 2.0 | 90.7 | 88.7 | 92.2 | 92.2 | 88.7 | 32,471 | 3.2 | 2.4 | 18 | |||||||||||||||||
750 Third Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 780,000 | 2.9 | 98.1 | 98.0 | 98.8 | 99.0 | 97.5 | 48,324 | 4.7 | 3.6 | 29 | |||||||||||||||||
810 Seventh Avenue | 100.0 | Times Square | Fee Interest | 1 | 692,000 | 2.6 | 96.8 | 94.6 | 93.6 | 93.6 | 94.1 | 47,882 | 4.7 | 3.5 | 49 | |||||||||||||||||
919 Third Avenue | 51.0 | Grand Central North | Fee Interest | 1 | 1,454,000 | 5.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 98,220 | 3.7 | 9 | ||||||||||||||||||
1185 Avenue of the Americas | 100.0 | Rockefeller Center | Leasehold Interest | 1 | 1,062,000 | 4.0 | 98.1 | 99.0 | 99.0 | 99.0 | 94.3 | 93,054 | 9.1 | 6.9 | 15 | |||||||||||||||||
1350 Avenue of the Americas | 100.0 | Rockefeller Center | Fee Interest | 1 | 562,000 | 2.1 | 88.0 | 88.6 | 90.2 | 87.9 | 98.8 | 40,092 | 3.9 | 3.0 | 35 | |||||||||||||||||
1515 Broadway | 100.0 | Times Square | Fee Interest | 1 | 1,750,000 | 6.5 | 98.4 | 97.7 | 97.3 | 97.3 | 97.3 | 133,664 | 13.1 | 9.9 | 13 | |||||||||||||||||
1 Madison Avenue | 100.0 | Park Avenue South | Fee Interest | 1 | 1,176,900 | 4.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 74,848 | 7.3 | 5.5 | 2 | |||||||||||||||||
Added to Same Store in 2017 | ||||||||||||||||||||||||||||||||
30 East 40th Street | 60.0 | Grand Central South | Leasehold Interest | 1 | 69,446 | 0.3 | 93.2 | 93.2 | 93.2 | 94.5 | 96.3 | 4,571 | 0.2 | 55 | ||||||||||||||||||
110 Greene Street | 90.0 | Soho | Fee Interest | 1 | 223,600 | 0.8 | 73.4 | 72.9 | 70.3 | 69.3 | 74.7 | 11,169 | 0.7 | 58 | ||||||||||||||||||
600 Lexington Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 303,515 | 1.1 | 87.8 | 86.6 | 86.6 | 85.1 | 90.2 | 20,814 | 2.0 | 1.5 | 30 | |||||||||||||||||
Subtotal / Weighted Average | 24 | 16,054,606 | 59.8 | % | 92.4 | % | 92.3 | % | 94.1 | % | 95.4 | % | 95.9 | % | $1,040,214 | 90.7% | 72.9% | 719 | ||||||||||||||
Total / Weighted Average Consolidated Properties | 24 | 16,054,606 | 59.8 | % | 92.4 | % | 92.3 | % | 94.1 | % | 95.4 | % | 95.9 | % | $1,040,214 | 90.7% | 72.9% | 719 | ||||||||||||||
UNCONSOLIDATED PROPERTIES | ||||||||||||||||||||||||||||||||
"Same Store" | ||||||||||||||||||||||||||||||||
3 Columbus Circle | 48.9 | Columbus Circle | Fee Interest | 1 | 530,981 | 2.0 | 91.3 | 91.0 | 90.6 | 96.8 | 96.2 | $45,838 | 1.7 | 32 | ||||||||||||||||||
100 Park Avenue | 50.0 | Grand Central South | Fee Interest | 1 | 834,000 | 3.1 | 89.4 | 90.3 | 92.5 | 92.3 | 96.4 | 62,200 | 2.3 | 36 | ||||||||||||||||||
521 Fifth Avenue | 50.5 | Grand Central | Fee Interest | 1 | 460,000 | 1.7 | 90.2 | 90.2 | 93.6 | 89.2 | 89.2 | 29,582 | 1.1 | 43 | ||||||||||||||||||
800 Third Avenue | 60.5 | Grand Central North | Fee Interest | 1 | 526,000 | 2.0 | 99.1 | 99.1 | 98.2 | 97.8 | 97.1 | 36,870 | 1.6 | 44 | ||||||||||||||||||
1745 Broadway | 56.9 | Midtown | Fee Interest | 1 | 674,000 | 2.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 45,633 | 1.9 | 1 | ||||||||||||||||||
Added to Same Store in 2017 | ||||||||||||||||||||||||||||||||
280 Park Avenue | 50.0 | Park Avenue | Fee Interest | 1 | 1,219,158 | 4.5 | 93.0 | 91.8 | 87.4 | 82.3 | 82.3 | 118,937 | 4.4 | 38 | ||||||||||||||||||
Subtotal / Weighted Average | 6 | 4,244,139 | 15.8 | % | 93.6 | % | 93.4 | % | 92.8 | % | 91.6 | % | 92.2 | % | $339,060 | 13.0% | 194 | |||||||||||||||
"Non Same Store" | ||||||||||||||||||||||||||||||||
11 Madison Avenue | 60.0 | Park Avenue South | Fee Interest | 1 | 2,314,000 | 8.6 | 100.0 | 98.0 | 98.0 | 98.0 | 98.0 | $158,208 | 7.0 | 9 | ||||||||||||||||||
Subtotal / Weighted Average | 1 | 2,314,000 | 8.6 | % | 100.0 | % | 98.0 | % | 98.0 | % | 98.0 | % | 98.0 | % | $158,208 | 7.0% | 9 | |||||||||||||||
Total / Weighted Average Unconsolidated Properties | 7 | 6,558,139 | 24.4 | % | 95.9 | % | 95.1 | % | 94.7 | % | 93.8 | % | 94.3 | % | $497,268 | 20.0% | 203 | |||||||||||||||
Manhattan Operating Properties Grand Total / Weighted Average | 31 | 22,612,745 | 84.2 | % | 93.4 | % | 93.1 | % | 94.3 | % | 94.9 | % | 95.4 | % | $1,537,482 | 922 | ||||||||||||||||
Manhattan Operating Properties Grand Total - SLG share of Annualized Rent | $1,260,250 | 92.9% | ||||||||||||||||||||||||||||||
Manhattan Operating Properties Same Store Occupancy % | 20,298,745 | 89.8 | % | 92.6 | % | 92.6 | % | 93.9 | % | 94.6 | % | 95.1 | % | |||||||||||||||||||
Manhattan Operating Properties Same Store Leased Occupancy % | 95.3 | % | 94.9 | % | 95.7 | % | 96.2 | % | 96.4 | % | ||||||||||||||||||||||
(1) The Company has an option to acquire the fee interest for a fixed price on a specific date. | ||||||||||||||||||||||||||||||||
(2) The Company owns 50% of the fee interest. | ||||||||||||||||||||||||||||||||
Supplemental Information | 32 | Third Quarter 2017 |
| ||
SELECTED PROPERTY DATA Suburban Operating Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized Cash Rent | Total | |||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Cash Rent ($'s) | 100% | SLG% | Tenants | |||||||||||||||||
CONSOLIDATED PROPERTIES | ||||||||||||||||||||||||||||||||
"Same Store" Westchester, New York | ||||||||||||||||||||||||||||||||
1100 King Street - 1 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 74.8 | 74.8 | 74.8 | 74.8 | 74.8 | $1,926 | 0.2 | 0.1 | 2 | |||||||||||||||||
1100 King Street - 2 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 63.5 | 63.5 | 61.3 | 61.3 | 59.2 | 1,549 | 0.2 | 0.1 | 5 | |||||||||||||||||
1100 King Street - 3 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 58.4 | 58.4 | 58.4 | 52.2 | 52.2 | 1,071 | 0.1 | 0.1 | 3 | |||||||||||||||||
1100 King Street - 4 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 51.2 | 51.2 | 68.8 | 85.8 | 85.8 | 1,198 | 0.1 | 0.1 | 8 | |||||||||||||||||
1100 King Street - 5 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 96.6 | 96.6 | 96.6 | 91.3 | 91.3 | 2,124 | 0.2 | 0.2 | 11 | |||||||||||||||||
1100 King Street - 6 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 68.7 | 68.7 | 56.7 | 56.7 | 56.7 | 1,806 | 0.2 | 0.1 | 4 | |||||||||||||||||
115-117 Stevens Avenue | 100.0 | Valhalla, New York | Fee Interest | 1 | 178,000 | 0.7 | 66.7 | 66.7 | 60.3 | 49.5 | 49.5 | 2,282 | 0.2 | 0.2 | 12 | |||||||||||||||||
100 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 250,000 | 0.9 | 92.2 | 79.4 | 66.0 | 66.0 | 52.2 | 5,854 | 0.6 | 0.4 | 13 | |||||||||||||||||
200 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 245,000 | 0.9 | 87.5 | 95.8 | 95.8 | 95.8 | 95.8 | 5,502 | 0.5 | 0.4 | 8 | |||||||||||||||||
500 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 228,000 | 0.8 | 100.0 | 100.0 | 97.8 | 97.8 | 97.8 | 5,941 | 0.6 | 0.4 | 8 | |||||||||||||||||
360 Hamilton Avenue | 100.0 | White Plains, New York | Fee Interest | 1 | 384,000 | 1.4 | 99.3 | 98.4 | 98.4 | 98.4 | 98.4 | 14,987 | 1.5 | 1.1 | 21 | |||||||||||||||||
"Same Store" Westchester, New York Subtotal/Weighted Average | 11 | 1,825,000 | 7.8 | % | 84.6 | % | 83.8 | % | 81.2 | % | 80.4 | % | 78.5 | % | $44,240 | 4.3% | 3.3% | 95 | ||||||||||||||
"Same Store" Connecticut | ||||||||||||||||||||||||||||||||
1 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 312,000 | 1.2 | 84.9 | 86.5 | 86.0 | 88.7 | 88.8 | $8,804 | 0.9 | 0.6 | 63 | |||||||||||||||||
2 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 46,000 | 0.2 | 85.7 | 80.1 | 80.1 | 75.2 | 68.4 | 938 | 0.1 | 0.1 | 8 | |||||||||||||||||
3 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 130,000 | 0.5 | 76.9 | 76.9 | 76.9 | 81.8 | 76.4 | 3,459 | 0.3 | 0.3 | 20 | |||||||||||||||||
4 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 105,000 | 0.4 | 93.5 | 92.4 | 92.4 | 92.4 | 92.4 | 3,358 | 0.3 | 0.2 | 14 | |||||||||||||||||
5 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 61,000 | 0.2 | 98.3 | 98.3 | 98.3 | 99.0 | 99.0 | 1,035 | 0.1 | 0.1 | 9 | |||||||||||||||||
6 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 172,000 | 0.6 | 93.7 | 93.7 | 93.7 | 93.7 | 93.7 | 4,139 | 0.4 | 0.3 | 7 | |||||||||||||||||
7 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 36,800 | 0.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 763 | 0.1 | 0.1 | 2 | |||||||||||||||||
1055 Washington Boulevard | 100.0 | Stamford, Connecticut | Leasehold Interest | 1 | 182,000 | 0.7 | 67.9 | 67.9 | 66.5 | 66.5 | 76.9 | 4,723 | 0.5 | 0.3 | 21 | |||||||||||||||||
1010 Washington Boulevard | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 143,400 | 0.5 | 92.1 | 92.1 | 88.1 | 91.3 | 88.2 | 4,422 | 0.4 | 0.3 | 26 | |||||||||||||||||
"Same Store" Connecticut Subtotal/Weighted Average | 9 | 1,188,200 | 3.4 | % | 85.5 | % | 85.6 | % | 84.8 | % | 86.3 | % | 86.7 | % | $31,640 | 3.1% | 2.3% | 170 | ||||||||||||||
"Same Store" New Jersey | ||||||||||||||||||||||||||||||||
125 Chubb Way | 100.0 | Lyndhurst, New Jersey | Fee Interest | 1 | 278,000 | 1.0 | 78.0 | 78.0 | 73.3 | 73.3 | 73.3 | $5,081 | 0.5 | 0.4 | 10 | |||||||||||||||||
"Same Store" New Jersey Subtotal/Weighted Average | 1 | 278,000 | 1.0 | % | 78.0 | % | 78.0 | % | 73.3 | % | 73.3 | % | 73.3 | % | $5,081 | 0.5% | 0.4% | 10 | ||||||||||||||
"Same Store" Brooklyn, New York | ||||||||||||||||||||||||||||||||
16 Court Street | 100.0 | Brooklyn, New York | Fee Interest | 1 | 317,600 | 1.2 | 96.1 | 95.2 | 94.9 | 95.2 | 95.9 | $13,625 | 1.3 | 1.0 | 66 | |||||||||||||||||
"Same Store" Brooklyn, New York Subtotal/Weighted Average | 1 | 317,600 | 1.2 | % | 96.1 | % | 95.2 | % | 94.9 | % | 95.2 | % | 95.9 | % | $13,625 | 1.3% | 1.0% | 66 | ||||||||||||||
Total / Weighted Average Consolidated Properties | 22 | 3,608,800 | 13.4 | % | 85.4 | % | 85.0 | % | 83.0 | % | 83.1 | % | 82.3 | % | $94,586 | 9.3% | 7.0% | 341 | ||||||||||||||
UNCONSOLIDATED PROPERTIES | ||||||||||||||||||||||||||||||||
"Non Same Store" | ||||||||||||||||||||||||||||||||
Jericho Plaza | 11.7 | Jericho, New York | Fee Interest | 2 | 640,000 | 2.4 | 69.8 | 71.2 | 71.0 | 71.0 | 71.0 | $15,810 | 0.1 | 32 | ||||||||||||||||||
"Non Same Store" Subtotal/Weighted Average | 2 | 640,000 | 2.4 | % | 69.8 | % | 71.2 | % | 71.0 | % | 71.0 | % | 71.0 | % | $15,810 | 0.1% | 32 | |||||||||||||||
Total / Weighted Average Unconsolidated Properties | 2 | 640,000 | 2.4 | % | 69.8 | % | 71.2 | % | 71.0 | % | 71.0 | % | 71.0 | % | $15,810 | 0.1% | 32 | |||||||||||||||
Suburban Operating Properties Grand Total / Weighted Average | 24 | 4,248,800 | 15.8 | % | 83.1 | % | 82.9 | % | 81.2 | % | 81.3 | % | 80.6 | % | $110,396 | 373 | ||||||||||||||||
Suburban Operating Properties Grand Total - SLG share of Annualized Rent | $96,431 | 7.1% | ||||||||||||||||||||||||||||||
Suburban Operating Properties Same Store Occupancy % | 3,608,800 | 84.9 | % | 85.4 | % | 85.0 | % | 83.0 | % | 83.1 | % | 82.3 | % | |||||||||||||||||||
Suburban Operating Properties Same Store Leased Occupancy % | 86.8 | % | 85.5 | % | 84.2 | % | 83.9 | % | 84.2 | % | ||||||||||||||||||||||
Supplemental Information | 33 | Third Quarter 2017 |
| ||
SELECTED PROPERTY DATA Retail and Residential Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized | Total | |||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Cash Rent ($'s) | Cash Rent (SLG%) | Tenants | ||||||||||||||||||
"Same Store" Retail | ||||||||||||||||||||||||||||||||
11 West 34th Street | 30.0 | Herald Square/Penn Station | Fee Interest | 1 | 17,150 | 2.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $2,838 | 1.2 | 1 | ||||||||||||||||||
21 East 66th Street | 32.3 | Plaza District | Fee Interest | 1 | 13,069 | 1.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,798 | 1.7 | 1 | ||||||||||||||||||
121 Greene Street | 50.0 | Soho | Fee Interest | 1 | 7,131 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,524 | 1.1 | 2 | ||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | Penn Station | Fee Interest | 1 | 270,132 | 38.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 16,430 | 23.0 | 10 | ||||||||||||||||||
717 Fifth Avenue | 10.9 | Midtown/Plaza District | Fee Interest | 1 | 119,550 | 17.0 | 100.0 | 100.0 | 81.1 | 81.1 | 81.1 | 45,574 | 7.0 | 8 | ||||||||||||||||||
724 Fifth Avenue | 50.0 | Plaza District | Fee Interest | 1 | 65,010 | 9.3 | 84.7 | 92.1 | 100.0 | 100.0 | 100.0 | 23,670 | 16.6 | 8 | ||||||||||||||||||
752-760 Madison Avenue | 100.0 | Plaza District | Fee Interest | 1 | 21,124 | 3.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 14,136 | 19.8 | 1 | ||||||||||||||||||
762 Madison Avenue (1) | 90.0 | Plaza District | Fee Interest | 1 | 6,109 | 0.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,841 | 2.3 | 5 | ||||||||||||||||||
Williamsburg Terrace | 100.0 | Brooklyn, New York | Fee Interest | 1 | 52,000 | 7.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,791 | 2.5 | 3 | ||||||||||||||||||
Added to Same Store in 2017 | ||||||||||||||||||||||||||||||||
131-137 Spring Street | 20.0 | Soho | Fee Interest | 2 | 68,342 | 9.7 | 89.6 | 89.6 | 90.7 | 93.9 | 93.9 | 12,429 | 3.5 | 9 | ||||||||||||||||||
Subtotal/Weighted Average | 11 | 639,617 | 91.0 | % | 97.3 | % | 98.1 | % | 95.5 | % | 95.8 | % | 95.8 | % | $124,030 | 78.6% | 48 | |||||||||||||||
"Non Same Store" Retail | ||||||||||||||||||||||||||||||||
115 Spring Street | 100.0 | Soho | Fee Interest | 1 | 5,218 | 0.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $2,903 | 4.1 | 1 | ||||||||||||||||||
1552-1560 Broadway | 50.0 | Times Square | Fee Interest | 2 | 57,718 | 8.2 | 67.5 | 67.5 | 67.5 | 67.5 | 67.5 | 24,811 | 17.4 | 2 | ||||||||||||||||||
Subtotal/Weighted Average | 3 | 62,936 | 9.0 | % | 70.2 | % | 70.2 | % | 70.2 | % | 70.2 | % | 70.2 | % | $27,714 | 21.4% | 3 | |||||||||||||||
Total / Weighted Average Retail Properties | 14 | 702,553 | 100.0 | % | 94.9 | % | 95.6 | % | 93.2 | % | 93.5 | % | 93.5 | % | $151,744 | 100.0% | 51 | |||||||||||||||
Residential Properties | ||||||||||||||||||||||||||||||||
Ownership | # of | Useable | Total | Occupancy (%) | Average Monthly (2) | Annualized | ||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Units | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Rent Per Unit ($'s) | Cash Rent ($'s) | |||||||||||||||||||
"Same Store" Residential | ||||||||||||||||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | Penn Station | Fee Interest | 222,855 | 333 | 88.0 | 91.9 | 94.0 | 93.1 | 94.0 | $4,181 | $14,650 | ||||||||||||||||||||
400 East 57th Street (1) | 41.0 | Upper East Side | Fee Interest | 1 | 290,482 | 259 | 92.3 | 93.1 | 89.2 | 88.9 | 91.6 | 3,515 | 11,632 | |||||||||||||||||||
400 East 58th Street (1) | 90.0 | Upper East Side | Fee Interest | 1 | 140,000 | 126 | 94.4 | 93.7 | 92.9 | 91.3 | 91.3 | 3,429 | 5,421 | |||||||||||||||||||
1080 Amsterdam (1) | 92.5 | Upper West Side | Leasehold Interest | 1 | 82,250 | 97 | 100.0 | 88.5 | 100.0 | 96.9 | 88.5 | 3,987 | 4,911 | |||||||||||||||||||
Added to Same Store in 2017 | ||||||||||||||||||||||||||||||||
Stonehenge Portfolio | Various | Fee Interest | 10 | 1,439,016 | 1,536 | 92.6 | 94.2 | 93.2 | 91.0 | 92.6 | 3,580 | 71,570 | ||||||||||||||||||||
Subtotal/Weighted Average | 13 | 2,174,603 | 2,351 | 92.3 | % | 93.5 | % | 93.2 | % | 91.3 | % | 92.4 | % | $3,664 | $108,183 | |||||||||||||||||
"Non Same Store" Residential | ||||||||||||||||||||||||||||||||
Upper East Side Residential | 95.1 | Upper East Side | Fee Interest | 1 | 27,000 | 28 | 42.9 | 39.3 | 39.3 | 39.3 | 42.9 | $1,167 | $636 | |||||||||||||||||||
605 West 42nd Street - Sky | 20.0 | Midtown West | Fee Interest | 1 | 927,358 | 1,175 | 75.5 | 81.0 | 76.3 | 65.1 | 55.0 | 4,112 | 43,772 | |||||||||||||||||||
Subtotal/Weighted Average | 2 | 954,358 | 1,203 | 74.7 | % | 80.0 | % | 75.5 | % | 64.5 | % | 54.7 | % | $4,073 | $44,407 | |||||||||||||||||
Total / Weighted Average Residential Properties | 15 | 3,128,961 | 3,554 | 86.4 | % | 88.9 | % | 87.2 | % | 82.2 | % | 79.7 | % | $3,784 | $152,590 | |||||||||||||||||
(1) Stonehenge Portfolio Property. | ||||||||||||||||||||||||||||||||
(2) Calculated based on occupied units. Amounts in dollars. | ||||||||||||||||||||||||||||||||
Supplemental Information | 34 | Third Quarter 2017 |
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SELECTED PROPERTY DATA Development / Redevelopment, Land and Construction in Progress Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized | Gross R/E | Total | |||||||||||||||||||||||||
Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Cash Rent ($'s) | Cash Rent (SLG%) | Book Value | Tenants | |||||||||||||||||||
Development / Redevelopment | |||||||||||||||||||||||||||||||||
10 East 53rd Street | 55.0 | Plaza District | Fee Interest | 1 | 354,300 | 38.1 | 69.0 | 66.8 | 66.1 | 58.3 | 48.1 | $23,753 | 36.2 | $369,501 | 32 | ||||||||||||||||||
19-21 East 65th Street | 100.0 | Plaza District | Fee Interest | 2 | 23,610 | 2.5 | 17.0 | 26.6 | 26.6 | 26.6 | 77.5 | 231 | 0.6 | 7,702 | 8 | ||||||||||||||||||
5-7 Dey Street, 183 & 187 Broadway | 100.0 | Lower Manhattan | Fee Interest | 3 | 82,700 | 8.9 | — | — | 41.4 | 49.9 | 54.1 | — | — | 99,136 | — | ||||||||||||||||||
562 Fifth Avenue (1) | 100.0 | Plaza District | Fee Interest | 1 | 42,635 | 4.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,100 | 5.8 | 68,752 | 1 | ||||||||||||||||||
650 Fifth Avenue | 50.0 | Plaza District | Leasehold Interest | 1 | 69,214 | 7.4 | 100.0 | — | — | 2.9 | 4.9 | 33,190 | 46.0 | 351,105 | 1 | ||||||||||||||||||
719 Seventh Avenue | 75.0 | Times Square | Fee Interest | 1 | 10,040 | 1.1 | — | — | — | — | — | — | — | 73,603 | — | ||||||||||||||||||
175-225 Third Street | 95.0 | Brooklyn, New York | Fee Interest | 1 | — | — | — | — | — | — | — | — | — | 80,330 | — | ||||||||||||||||||
55 West 46th Street - Tower 46 | 25.0 | Midtown | Fee Interest | 1 | 347,000 | 37.3 | 56.6 | 50.1 | 50.1 | 50.1 | 17.1 | 15,870 | 11.0 | 330,313 | 6 | ||||||||||||||||||
1640 Flatbush Avenue | 100.0 | Brooklyn, New York | Fee Interest | 1 | 1,000 | 0.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 85 | 0.2 | 6,791 | 1 | ||||||||||||||||||
Total / Weighted Average Development / Redevelopment Properties | 12 | 930,499 | 100.0 | % | 60.0 | % | 49.5 | % | 52.9 | % | 50.9 | % | 36.5 | % | $75,229 | 100.0% | $1,387,232 | 49 | |||||||||||||||
Land | |||||||||||||||||||||||||||||||||
635 Madison Avenue (2) | 100.0 | Plaza District | Fee Interest | 1 | 176,530 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $3,678 | 100.0 | ||||||||||||||||||||
Total / Weighted Average Land | 1 | 176,530 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | $3,678 | 100.0% | |||||||||||||||||
(1) Subject to a long-term, third party net operating lease. The lease contains a property purchase option for $100.0 million with annual escalations in the purchase price starting in December 2018. | |||||||||||||||||||||||||||||||||
(2) Subject to a long-term, third party net operating lease. | |||||||||||||||||||||||||||||||||
Construction in Progress | |||||||||||||||||||||||
Future Equity | Fees Payable to the Company | ||||||||||||||||||||||
Land Contributed | Equity Contributed (1) | Contributions (2) | Financing | and JV Contingencies (1) | Total | ||||||||||||||||||
Building | Gross | Ownership | Estimated | Percentage | Market | Development | |||||||||||||||||
Address | Sq. Feet | Interest (%) | Occupancy | Leased | Cost | Value Adj | Company | Partners | Company | Partners | Drawn | Available | Funded | Remaining | Budget | ||||||||
One Vanderbilt | 1,730,989 | 71.0 | Q3 2020 | 15.0 | $331,490 | $235,946 | $244,396 | $30,203 | $333,168 | $494,797 | $271,229 | $1,228,771 | $42,517 | $97,483 | $3,310,000 | ||||||||
Total Construction In Progress | $331,490 | $235,946 | $244,396 | $30,203 | $333,168 | $494,797 | $271,229 | $1,228,771 | $42,517 | $97,483 | $3,310,000 | ||||||||||||
(1) Includes joint venture fees paid to the Company, including development fee, direct personnel expense, leasing commissions and financing fee. Also includes up to $50.0 million of additional discretionary owner contingencies | |||||||||||||||||||||||
Supplemental Information | 35 | Third Quarter 2017 |
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SELECTED PROPERTY DATA Retail Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Useable | % of Total | Occupancy (%) | Annualized Retail | Annualized Retail Cash Rent | Total | ||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Cash Rent ($'s) | 100% | SLG | Tenants | ||||||||||||||||||
HIGH STREET RETAIL - Consolidated Properties | |||||||||||||||||||||||||||||||||
19-21 East 65th Street | 100.0 | Plaza District | Fee Interest | 2 | 23,610 | 1.2 | 17.0 | 26.6 | 26.6 | 26.6 | 77.5 | $231 | 0.1 | 0.1 | 8 | ||||||||||||||||||
115 Spring Street | 100.0 | Soho | Fee Interest | 1 | 5,218 | 0.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,903 | 0.8 | 1.3 | 1 | ||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | Penn Station | Fee Interest | 1 | 217,519 | 11.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 12,944 | 3.7 | 5.6 | 9 | ||||||||||||||||||
719 Seventh Avenue | 75.0 | Times Square | Fee Interest | 1 | 10,040 | 0.5 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
752-760 Madison Avenue | 100.0 | Plaza District | Fee Interest | 1 | 21,124 | 1.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 14,136 | 4.0 | 6.1 | 1 | ||||||||||||||||||
762 Madison Avenue | 90.0 | Plaza District | Fee Interest | 1 | 6,109 | 0.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,841 | 0.5 | 0.7 | 5 | ||||||||||||||||||
Williamsburg Terrace | 100.0 | Brooklyn, New York | Fee Interest | 1 | 52,000 | 2.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,791 | 0.5 | 0.8 | 3 | ||||||||||||||||||
1640 Flatbush Avenue | 100.0 | Brooklyn, New York | Fee Interest | 1 | 1,000 | 0.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 85 | — | — | 1 | ||||||||||||||||||
Subtotal / Weighted Average | 9 | 336,620 | 17.4 | % | 91.2 | % | 91.9 | % | 91.9 | % | 91.9 | % | 95.4 | % | $33,931 | 9.6% | 14.7% | 28 | |||||||||||||||
HIGH STREET RETAIL - Unconsolidated Properties | |||||||||||||||||||||||||||||||||
11 West 34th Street | 30.0 | Herald Square/Penn Station | Fee Interest | 1 | 17,150 | 0.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $2,838 | 0.8 | 0.4 | 1 | ||||||||||||||||||
21 East 66th Street | 32.3 | Plaza District | Fee Interest | 1 | 13,069 | 0.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,798 | 1.1 | 0.5 | 1 | ||||||||||||||||||
121 Greene Street | 50.0 | Soho | Fee Interest | 1 | 7,131 | 0.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,524 | 0.4 | 0.3 | 2 | ||||||||||||||||||
131-137 Spring Street | 20.0 | Soho | Fee Interest | 2 | 68,342 | 3.5 | 89.6 | 89.6 | 90.7 | 93.9 | 93.9 | 12,429 | 3.5 | 1.1 | 9 | ||||||||||||||||||
650 Fifth Avenue | 50.0 | Plaza District | Leasehold Interest | 1 | 69,214 | 3.6 | 100.0 | — | — | 2.9 | 4.9 | 33,190 | 9.4 | 7.2 | 1 | ||||||||||||||||||
717 Fifth Avenue | 10.9 | Midtown/Plaza District | Fee Interest | 1 | 119,550 | 6.2 | 100.0 | 100.0 | 81.1 | 81.1 | 81.1 | 45,574 | 12.9 | 2.2 | 8 | ||||||||||||||||||
724 Fifth Avenue | 50.0 | Plaza District | Fee Interest | 1 | 65,010 | 3.3 | 84.7 | 92.1 | 100.0 | 100.0 | 100.0 | 23,670 | 6.7 | 5.1 | 8 | ||||||||||||||||||
1552-1560 Broadway | 50.0 | Times Square | Fee Interest | 2 | 57,718 | 3.0 | 67.5 | 67.5 | 67.5 | 67.5 | 67.5 | 24,811 | 7.0 | 5.4 | 2 | ||||||||||||||||||
Subtotal / Weighted Average | 10 | 417,184 | 21.5 | % | 91.4 | % | 76.0 | % | 72.0 | % | 73.0 | % | 73.3 | % | $147,832 | 41.9% | 22.2% | 32 | |||||||||||||||
Total / Weighted Average Prime Retail | 19 | 753,804 | 38.9 | % | 91.3 | % | 83.1 | % | 80.9 | % | 81.4 | % | 83.2 | % | $181,763 | 51.5% | 36.9% | 60 | |||||||||||||||
OTHER RETAIL - Consolidated Properties | |||||||||||||||||||||||||||||||||
100 Church Street | 100.0 | Downtown | Fee Interest | 1 | 61,708 | 3.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $3,204 | 0.9 | 1.4 | 7 | ||||||||||||||||||
110 Greene Street | 90.0 | Soho | Fee Interest | 1 | 16,121 | 0.8 | 86.8 | 86.8 | 100.0 | 100.0 | 100.0 | 2,491 | 0.7 | 1.0 | 4 | ||||||||||||||||||
125 Park Avenue | 100.0 | Grand Central | Fee Interest | 1 | 32,124 | 1.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 4,705 | 1.3 | 2.0 | 6 | ||||||||||||||||||
220 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 35,332 | 1.8 | 68.4 | 68.4 | 68.4 | 59.0 | 59.0 | 2,133 | 0.6 | 0.9 | 4 | ||||||||||||||||||
Upper East Side Residential | 95.1 | Upper East Side | Fee Interest | 1 | 4,150 | 0.2 | 88.0 | 88.0 | 88.0 | 88.0 | 88.0 | 468 | 0.1 | 0.2 | 4 | ||||||||||||||||||
304 Park Avenue South | 100.0 | Midtown South | Fee Interest | 1 | 25,330 | 1.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,456 | 1.0 | 1.5 | 6 | ||||||||||||||||||
400 East 57th Street | 41.0 | Upper East Side | Fee Interest | 1 | 9,717 | 0.5 | 75.4 | 52.6 | 34.1 | 34.1 | 49.2 | 1,634 | 0.5 | 0.3 | 9 | ||||||||||||||||||
400 East 58th Street | 90.0 | Upper East Side | Fee Interest | 1 | 3,156 | 0.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 566 | 0.2 | 0.2 | 5 | ||||||||||||||||||
420 Lexington Ave (Graybar) | 100.0 | Grand Central North | Leasehold Interest | 1 | 45,263 | 2.3 | 96.5 | 100.0 | 89.1 | 86.0 | 96.8 | 4,160 | 1.2 | 1.8 | 5 | ||||||||||||||||||
461 Fifth Avenue | 100.0 | Midtown | Leasehold Interest | 1 | 16,248 | 0.8 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,154 | 0.6 | 0.9 | 2 | ||||||||||||||||||
485 Lexington Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 41,701 | 2.2 | 100.0 | 100.0 | 56.5 | 65.5 | 62.1 | 5,444 | 1.5 | 2.4 | 8 | ||||||||||||||||||
555 West 57th Street | 100.0 | Midtown West | Fee Interest | 1 | 60,389 | 3.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,923 | 0.5 | 0.8 | 2 | ||||||||||||||||||
600 Lexington Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 4,264 | 0.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 858 | 0.2 | 0.4 | 2 | ||||||||||||||||||
609 Fifth Avenue | 100.0 | Rockefeller Center | Fee Interest | 1 | 46,019 | 2.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 9,770 | 2.8 | 4.2 | 1 | ||||||||||||||||||
625 Madison Avenue | 100.0 | Plaza District | Leasehold Interest | 1 | 74,937 | 3.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 22,623 | 6.4 | 9.8 | 19 | ||||||||||||||||||
635 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 23,250 | 1.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,133 | 0.9 | 1.4 | 1 | ||||||||||||||||||
641 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 28,500 | 1.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,413 | 1.0 | 1.5 | 2 | ||||||||||||||||||
711 Third Avenue | 100.0 | Grand Central North | Leasehold Interest | 1 | 25,639 | 1.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,921 | 0.8 | 1.3 | 3 | ||||||||||||||||||
750 Third Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 24,827 | 1.3 | 100.0 | 96.8 | 100.0 | 100.0 | 100.0 | 2,705 | 0.8 | 1.2 | 6 | ||||||||||||||||||
810 Seventh Avenue | 100.0 | Times Square | Fee Interest | 1 | 13,470 | 0.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 4,148 | 1.2 | 1.8 | 4 | ||||||||||||||||||
919 Third Avenue | 51.0 | Grand Central North | Fee Interest | 1 | 31,004 | 1.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,596 | 1.0 | 0.8 | 5 | ||||||||||||||||||
1080 Amsterdam | 92.5 | Upper West Side | Leasehold Interest | 1 | 1,800 | 0.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 284 | 0.1 | 0.1 | 1 | ||||||||||||||||||
1185 Avenue of the Americas | 100.0 | Rockefeller Center | Leasehold Interest | 1 | 37,326 | 1.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 6,515 | 1.8 | 2.8 | 5 | ||||||||||||||||||
1350 Avenue of the Americas | 100.0 | Rockefeller Center | Fee Interest | 1 | 17,797 | 0.9 | 100.0 | 100.0 | 100.0 | 100.0 | 65.7 | 2,768 | 0.8 | 1.2 | 6 | ||||||||||||||||||
1515 Broadway | 100.0 | Times Square | Fee Interest | 1 | 185,956 | 9.6 | 100.0 | 95.3 | 89.5 | 89.5 | 89.5 | 32,783 | 9.3 | 14.2 | 9 | ||||||||||||||||||
Subtotal / Weighted Average | 25 | 866,028 | 44.7 | % | 97.9 | % | 96.6 | % | 92.7 | % | 92.6 | % | 92.5 | % | $127,852 | 36.2% | 54.2% | 126 | |||||||||||||||
Supplemental Information | 36 | Third Quarter 2017 |
| ||
SELECTED PROPERTY DATA - CONTINUED Retail Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Useable | % of Total | Occupancy (%) | Annualized Retail | Annualized Retail Cash Rent | Total | ||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Cash Rent ($'s) | 100% | SLG | Tenants | ||||||||||||||||||
OTHER RETAIL - Unconsolidated Properties | |||||||||||||||||||||||||||||||||
3 Columbus Circle | 48.9 | Columbus Circle | Fee Interest | 1 | 75,165 | 3.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $20,325 | 5.8 | 4.3 | — | ||||||||||||||||||
10 East 53rd Street | 55.0 | Plaza District | Fee Interest | 1 | 39,340 | 2.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,469 | 1.0 | 0.8 | 3 | ||||||||||||||||||
11 Madison Avenue | 60.0 | Park Avenue South | Fee Interest | 1 | 38,800 | 2.0 | 96.6 | 96.6 | 97.7 | 97.7 | 97.7 | 3,452 | 1.0 | 0.9 | 4 | ||||||||||||||||||
30 East 40th Street | 60.0 | Grand Central South | Leasehold Interest | 1 | 4,461 | 0.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 489 | 0.1 | 0.1 | 5 | ||||||||||||||||||
55 West 46th Street - Tower 46 | 25.0 | Midtown | Leasehold Interest | 1 | 1,191 | 0.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 210 | 0.1 | — | 1 | ||||||||||||||||||
100 Park Avenue | 50.0 | Grand Central South | Fee Interest | 1 | 40,022 | 2.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,570 | 1.0 | 0.8 | 9 | ||||||||||||||||||
280 Park Avenue | 50.0 | Park Avenue | Fee Interest | 1 | 27,896 | 1.4 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 839 | 0.2 | 0.2 | 2 | ||||||||||||||||||
521 Fifth Avenue | 50.5 | Grand Central | Fee Interest | 1 | 53,157 | 2.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 5,388 | 1.5 | 1.2 | 3 | ||||||||||||||||||
800 Third Avenue | 60.5 | Grand Central North | Fee Interest | 1 | 9,900 | 0.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,933 | 0.5 | 0.5 | 2 | ||||||||||||||||||
Stonehenge Portfolio | Various | Fee Interest | 4 | 28,941 | 1.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,579 | 1.0 | 0.1 | 12 | |||||||||||||||||||
Subtotal / Weighted Average | 13 | 318,873 | 16.4 | % | 91.9 | % | 91.9 | % | 92.1 | % | 92.1 | % | 92.1 | % | $43,254 | 12.3% | 8.9% | 41 | |||||||||||||||
Total / Weighted Average Other Retail | 38 | 1,184,901 | 61.1 | % | 96.3 | % | 95.3 | % | 92.5 | % | 92.5 | % | 92.4 | % | $171,106 | 48.5% | 63.1% | 167 | |||||||||||||||
Retail Grand Total / Weighted Average | 57 | 1,938,705 | 100.0 | % | 94.4 | % | 90.6 | % | 88.0 | % | 88.2 | % | 88.8 | % | $352,869 | 100.0% | 227 | ||||||||||||||||
Retail Grand Total - SLG share of Annualized Rent | $230,149 | 100.0% | |||||||||||||||||||||||||||||||
Supplemental Information | 37 | Third Quarter 2017 |
| ||
SELECTED PROPERTY DATA Reckson Operating Portfolio - Consolidated Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | Useable | % of Total | Occupancy (%) | Annualized Cash Rent ($'s) | Annualized Cash Rent | Total | |||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Sq. Feet | Sq. Feet | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | 100 | % | SLG% | Tenants | |||||||||||||||||||
Manhattan Operating Properties - Reckson Portfolio | |||||||||||||||||||||||||||||||||
"Same Store" | |||||||||||||||||||||||||||||||||
110 East 42nd Street | 100.0 | Grand Central | Fee Interest | 215,400 | 1.9 | 66.6 | 73.3 | 91.0 | 92.0 | 99.9 | $7,954 | 1.4 | 1.3 | 20 | |||||||||||||||||||
125 Park Avenue | 100.0 | Grand Central | Fee Interest | 604,245 | 5.4 | 99.6 | 99.3 | 98.4 | 99.9 | 99.9 | 41,255 | 7.4 | 6.7 | 27 | |||||||||||||||||||
304 Park Avenue South | 100.0 | Midtown South | Fee Interest | 215,000 | 1.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 15,558 | 2.8 | 2.5 | 12 | |||||||||||||||||||
461 Fifth Avenue | 100.0 | Midtown | Leasehold Interest (1) | 200,000 | 1.8 | 99.9 | 99.9 | 99.9 | 99.9 | 99.9 | 18,877 | 3.4 | 3.0 | 10 | |||||||||||||||||||
555 West 57th Street | 100.0 | Midtown West | Fee Interest | 941,000 | 8.4 | 99.9 | 99.9 | 99.9 | 99.9 | 99.9 | 42,302 | 7.6 | 6.8 | 9 | |||||||||||||||||||
609 Fifth Avenue | 100.0 | Rockefeller Center | Fee Interest | 160,000 | 1.4 | 68.3 | 72.8 | 72.8 | 76.6 | 76.6 | 15,197 | 2.7 | 2.5 | 11 | |||||||||||||||||||
625 Madison Avenue | 100.0 | Plaza District | Leasehold Interest | 563,000 | 5.0 | 98.8 | 98.8 | 98.8 | 98.8 | 98.8 | 61,180 | 10.9 | 9.9 | 25 | |||||||||||||||||||
635 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 104,000 | 0.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 9,343 | 1.7 | 1.5 | 2 | |||||||||||||||||||
641 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 163,000 | 1.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 14,054 | 2.5 | 2.3 | 6 | |||||||||||||||||||
711 Third Avenue | 100.0 (2) | Grand Central North | Leasehold Interest | 524,000 | 4.7 | 90.7 | 88.7 | 92.2 | 92.2 | 88.7 | 32,471 | 5.8 | 5.2 | 18 | |||||||||||||||||||
750 Third Avenue | 100.0 | Grand Central North | Fee Interest | 780,000 | 7.0 | 98.1 | 98.0 | 98.8 | 99.0 | 97.5 | 48,324 | 8.6 | 7.8 | 29 | |||||||||||||||||||
810 Seventh Avenue | 100.0 | Times Square | Fee Interest | 692,000 | 6.2 | 96.8 | 94.6 | 93.6 | 93.6 | 94.1 | 47,882 | 8.6 | 7.7 | 49 | |||||||||||||||||||
919 Third Avenue | 51.0 | Grand Central North | Fee Interest | 1,454,000 | 13.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 98,220 | 8.1 | 9 | ||||||||||||||||||||
1185 Avenue of the Americas | 100.0 | Rockefeller Center | Leasehold Interest | 1,062,000 | 9.5 | 98.1 | 99.0 | 99.0 | 99.0 | 94.3 | 93,054 | 16.6 | 15.0 | 15 | |||||||||||||||||||
1350 Avenue of the Americas | 100.0 | Rockefeller Center | Fee Interest | 562,000 | 5.0 | 88.0 | 88.6 | 90.2 | 87.9 | 98.8 | 40,092 | 7.2 | 6.5 | 35 | |||||||||||||||||||
Added to Same Store in 2017 | |||||||||||||||||||||||||||||||||
110 Greene Street | 90.0 | Soho | Fee Interest | 223,600 | 2.0 | 73.4 | 72.9 | 70.3 | 69.3 | 74.7 | 11,169 | 1.6 | 58 | ||||||||||||||||||||
Subtotal / Weighted Average | 8,463,245 | 75.5 | % | 95.7 | % | 95.7 | % | 96.4 | % | 96.4 | % | 96.6 | % | $596,932 | 87.1% | 88.4% | 335 | ||||||||||||||||
Total / Weighted Average Manhattan Consolidated Properties | 8,463,245 | 75.5 | % | 95.7 | % | 95.7 | % | 96.4 | % | 96.4 | % | 96.6 | % | $596,932 | 87.1% | 335 | |||||||||||||||||
Total Manhattan Consolidated Properties - SLG share of Annualized Rent | $547,687 | 88.4% | |||||||||||||||||||||||||||||||
Suburban Operating Properties | |||||||||||||||||||||||||||||||||
"Same Store" Westchester, New York | |||||||||||||||||||||||||||||||||
1100 King Street - 1 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 90,000 | 0.8 | 74.8 | 74.8 | 74.8 | 74.8 | 74.8 | $1,926 | 0.3 | 0.3 | 2 | |||||||||||||||||||
1100 King Street - 2 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 90,000 | 0.8 | 63.5 | 63.5 | 61.3 | 61.3 | 59.2 | 1,549 | 0.3 | 0.2 | 5 | |||||||||||||||||||
1100 King Street - 3 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 90,000 | 0.8 | 58.4 | 58.4 | 58.4 | 52.2 | 52.2 | 1,071 | 0.2 | 0.2 | 3 | |||||||||||||||||||
1100 King Street - 4 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 90,000 | 0.8 | 51.2 | 51.2 | 68.8 | 85.8 | 85.8 | 1,198 | 0.2 | 0.2 | 8 | |||||||||||||||||||
1100 King Street - 5 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 90,000 | 0.8 | 96.6 | 96.6 | 96.6 | 91.3 | 91.3 | 2,124 | 0.4 | 0.3 | 11 | |||||||||||||||||||
1100 King Street - 6 Int'l Drive | 100.0 | Rye Brook, New York | Fee Interest | 90,000 | 0.8 | 68.7 | 68.7 | 56.7 | 56.7 | 56.7 | 1,806 | 0.3 | 0.3 | 4 | |||||||||||||||||||
115-117 Stevens Avenue | 100.0 | Valhalla, New York | Fee Interest | 178,000 | 1.6 | 66.7 | 66.7 | 60.3 | 49.5 | 49.5 | 2,282 | 0.4 | 0.4 | 12 | |||||||||||||||||||
100 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 250,000 | 2.2 | 92.2 | 79.4 | 66.0 | 66.0 | 52.2 | 5,854 | 1.0 | 0.9 | 13 | |||||||||||||||||||
200 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 245,000 | 2.2 | 87.5 | 95.8 | 95.8 | 95.8 | 95.8 | 5,502 | 1.0 | 0.9 | 8 | |||||||||||||||||||
500 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 228,000 | 2.0 | 100.0 | 100.0 | 97.8 | 97.8 | 97.8 | 5,941 | 1.1 | 1.0 | 8 | |||||||||||||||||||
360 Hamilton Avenue | 100.0 | White Plains, New York | Fee Interest | 384,000 | 3.4 | 99.3 | 98.4 | 98.4 | 98.4 | 98.4 | 14,987 | 2.7 | 2.4 | 21 | |||||||||||||||||||
Westchester, New York Subtotal / Weighted Average | 1,825,000 | 16.3 | % | 84.6 | % | 83.8 | % | 81.2 | % | 80.4 | % | 78.5 | % | $44,240 | 7.9% | 7.1% | 95 | ||||||||||||||||
"Same Store" Connecticut | |||||||||||||||||||||||||||||||||
1055 Washington Boulevard | 100.0 | Stamford, Connecticut | Leasehold Interest | 182,000 | 1.6 | 67.9 | 67.9 | 66.5 | 66.5 | 76.9 | $4,723 | 0.8 | 0.8 | 21 | |||||||||||||||||||
1010 Washington Boulevard | 100.0 | Stamford, Connecticut | Fee Interest | 143,400 | 1.3 | 92.1 | 92.1 | 88.1 | 91.3 | 88.2 | 4,422 | 0.8 | 0.7 | 26 | |||||||||||||||||||
Connecticut Subtotal/Weighted Average | 325,400 | 2.9 | % | 78.6 | % | 78.6 | % | 76.0 | % | 77.4 | % | 81.9 | % | $9,145 | 1.6% | 1.5% | 47 | ||||||||||||||||
"Same Store" New Jersey | |||||||||||||||||||||||||||||||||
125 Chubb Way | 100.0 | Lyndhurst, New Jersey | Fee Interest | 278,000 | 2.5 | 78.0 | 78.0 | 73.3 | 73.3 | 73.3 | $5,081 | 0.9 | 0.8 | 10 | |||||||||||||||||||
New Jersey Subtotal / Weighted Average | 278,000 | 2.5 | % | 78.0 | % | 78.0 | % | 73.3 | % | 73.3 | % | 73.3 | % | $5,081 | 0.9% | 0.8% | 10 | ||||||||||||||||
"Same Store" Brooklyn, New York | |||||||||||||||||||||||||||||||||
16 Court Street | 100.0 | Brooklyn, New York | Fee Interest | 317,600 | 2.8 | 96.1 | 95.2 | 94.9 | 95.2 | 95.9 | $13,625 | 2.4 | 2.2 | 66 | |||||||||||||||||||
Brooklyn, New York Subtotal / Weighted Average | 317,600 | 2.8 | % | 96.1 | % | 95.2 | % | 94.9 | % | 95.2 | % | 95.9 | % | $13,625 | 2.4% | 2.2% | 66 | ||||||||||||||||
Total / Weighted Average Suburban Consolidated Properties | 2,746,000 | 24.5 | % | 84.6 | % | 83.9 | % | 81.4 | % | 81.1 | % | 80.4 | % | $72,091 | 12.9% | 218 | |||||||||||||||||
Total Suburban Consolidated Properties - SLG share of Annualized Rent | $72,091 | 11.6% | |||||||||||||||||||||||||||||||
Reckson Operating Properties Grand Total / Weighted Average | 11,209,245 | 100.0 | % | 93.0 | % | 92.8 | % | 92.7 | % | 92.6 | % | 92.6 | % | $669,023 | 100.0% | 553 | |||||||||||||||||
Reckson Operating Properties Grand Total - SLG Share of Annualized Rent | $619,778 | 100.0% | |||||||||||||||||||||||||||||||
Reckson Operating Properties Same Store Occupancy % | 11,209,245 | 100.0 | % | 93.0 | % | 92.8 | % | 92.7 | % | 92.6 | % | 92.6 | % | ||||||||||||||||||||
(1) The Company has an option to acquire the fee interest for a fixed price on a specific date. | |||||||||||||||||||||||||||||||||
(2) The Company owns 50% of the fee interest. | |||||||||||||||||||||||||||||||||
Supplemental Information | 38 | Third Quarter 2017 |
| ||
SELECTED PROPERTY DATA Reckson Operating Portfolio - Retail, Land, and Residential Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | Useable | % of Total | Occupancy (%) | Annualized | Annualized | Total | |||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Sq. Feet | Sq. Feet | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Cash Rent ($'s) | Cash Rent (SLG%) | Tenants | ||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||||||
115 Spring Street | 100.0 | Soho | Fee Interest | 5,218 | 1.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $2,903 | 7.7 | 1 | ||||||||||||||||||||
131-137 Spring Street | 20.0 | Soho | Fee Interest | 68,342 | 16.4 | 89.6 | 89.6 | 90.7 | 93.9 | 93.9 | 12,429 | 6.6 | 9 | ||||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | Penn Station | Fee Interest | 270,132 | 64.8 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 16,430 | 43.5 | 10 | ||||||||||||||||||||
752-760 Madison Avenue | 100.0 | Plaza District | Fee Interest | 21,124 | 5.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 14,136 | 37.4 | 1 | ||||||||||||||||||||
Williamsburg Terrace | 100.0 | Brooklyn, New York | Fee Interest | 52,000 | 12.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,791 | 4.7 | 3 | ||||||||||||||||||||
Total Retail Properties | 416,816 | 100.0% | 98.3 | % | 98.3 | % | 98.5 | % | 99.0 | % | 99.0 | % | $47,690 | 100.0% | 24 | ||||||||||||||||||
Land | |||||||||||||||||||||||||||||||||
635 Madison Avenue | 100.0 | Plaza District | Fee Interest | 176,530 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $3,678 | 100.0 | |||||||||||||||||||||
Total Land Properties | 176,530 | 100.0% | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | $3,678 | 100.0% | |||||||||||||||||||
Residential Properties | |||||||||||||||||||||||||||||||||
Ownership | Useable | Occupancy (%) | Annualized | Average Monthly | Total | ||||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Sq. Feet | Total Units | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Cash Rent ($'s) | Rent Per Unit ($'s) (1) | Tenants | ||||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | Penn Station | Fee Interest | 222,855 | 333 | 88.0 | 91.9 | 94.0 | 93.1 | 94.0 | $14,650 | $4,181 | 293 | ||||||||||||||||||||
Total Residential Properties | 222,855 | 333 | 88.0 | % | 91.9 | % | 94.0 | % | 93.1 | % | 94.0 | % | $14,650 | $4,181 | 293 | ||||||||||||||||||
(1) Calculated based on occupied units | |||||||||||||||||||||||||||||||||
Supplemental Information | 39 | Third Quarter 2017 |
| ||
LARGEST TENANTS BY SQUARE FEET LEASED Manhattan and Suburban Properties Unaudited (Dollars in Thousands Except Per SF) | | |
| ||
% of | |||||||||||||||
% of | SLG Share of | SLG Share of | |||||||||||||
Lease | Total Rentable | Annualized | Rent PSF | Annualized | Annualized | Annualized | Credit | ||||||||
Tenant Name | Property | Expiration | Square Feet | Cash Rent | Annualized | Cash Rent | Cash Rent ($) | Cash Rent | Rating (1) | ||||||
Credit Suisse Securities (USA), Inc. | 1 Madison Avenue, 11 Madison Avenue & 1055 Washington Blvd | 2019, 2020 & 2037 | 2,415,457 | $150,136 | (2) | $62.16 | 9.1% | $119,148 | 8.8% | A | |||||
Viacom International, Inc. | 1515 Broadway | 2031 | 1,470,284 | 90,657 | $61.66 | 5.5% | 90,657 | 6.7% | BBB- | ||||||
Penguin Random House, Inc. | 1745 Broadway | 2020 & 2033 | 644,598 | 45,633 | $70.79 | 2.8% | 25,952 | 1.9% | BBB+ | ||||||
Sony Corporation | 11 Madison Avenue | 2031 | 578,791 | 43,870 | $75.80 | 2.7% | 26,322 | 1.9% | BBB | ||||||
Debevoise & Plimpton, LLP | 919 Third Avenue | 2021 | 577,438 | 46,751 | $80.96 | 2.8% | 23,843 | 1.8% | |||||||
The City of New York | 16 Court Street, 100 Church Street & 420 Lexington Avenue | 2017, 2020, 2030 & 2034 | 555,008 | 20,223 | $36.44 | 1.2% | 20,223 | 1.5% | Aa2 | ||||||
Ralph Lauren Corporation | 625 Madison Avenue | 2019 | 386,785 | 29,996 | $77.55 | 1.8% | 29,996 | 2.2% | A- | ||||||
Advance Magazine Group, Fairchild Publications | 750 Third Avenue & 485 Lexington Avenue | 2021 | 339,195 | 18,146 | $53.50 | 1.1% | 18,146 | 1.3% | |||||||
C.B.S. Broadcasting, Inc. | 555 West 57th Street | 2023 | 338,527 | 15,280 | $45.14 | 0.9% | 15,280 | 1.1% | BBB | ||||||
Metro-North Commuter Railroad Company | 110 East 42nd Street & 420 Lexington Avenue | 2021 & 2034 | 328,957 | 17,493 | $53.18 | 1.1% | 17,493 | 1.3% | Aa2 | ||||||
Schulte, Roth & Zabel LLP | 919 Third Avenue | 2036 | 263,186 | 18,813 | $71.48 | 1.1% | 9,595 | 0.7% | |||||||
Bloomberg LP | 919 Third Avenue | 2029 | 256,107 | 14,293 | $55.81 | 0.9% | 7,290 | 0.5% | |||||||
Omnicom Group, Inc., Cardinia Real Estate | 220 East 42nd Street | 2032 | 231,114 | 14,503 | $62.75 | 0.9% | 14,503 | 1.1% | BBB+ | ||||||
HF Management Services LLC | 100 Church Street | 2032 | 230,394 | 8,526 | $37.00 | 0.5% | 8,526 | 0.6% | |||||||
The City University of New York - CUNY | 555 West 57th Street & 16 Court Street | 2024 & 2030 | 230,010 | 9,846 | $42.81 | 0.6% | 9,846 | 0.7% | Aa2 | ||||||
BMW of Manhattan | 555 West 57th Street | 2022 | 227,782 | 7,136 | $31.33 | 0.4% | 7,136 | 0.5% | A+ | ||||||
WME IMG, LLC | 11 Madison Avenue & 304 Park Avenue | 2028 & 2030 | 214,707 | 16,836 | $78.41 | 1.0% | 13,231 | 1.0% | |||||||
Bloomingdales, Inc. | 919 Third Avenue | 2024 | 205,821 | 12,087 | $58.73 | 0.7% | 6,164 | 0.5% | BBB- | ||||||
Yelp, Inc. | 11 Madison Avenue | 2025 | 191,797 | 16,647 | $86.79 | 1.0% | 9,988 | 0.7% | |||||||
Amerada Hess Corp. | 1185 Avenue of the Americas | 2027 | 181,569 | 14,957 | $82.38 | 0.9% | 14,957 | 1.1% | BBB- | ||||||
The Travelers Indemnity Company | 485 Lexington Avenue | 2021 | 176,838 | 11,583 | $65.50 | 0.7% | 11,583 | 0.9% | AA | ||||||
News America Incorporated | 1185 Avenue of the Americas | 2020 | 165,086 | 16,398 | $99.33 | 1.0% | 16,398 | 1.2% | BBB+ | ||||||
RSM McGladrey, Inc. | 1185 Avenue of the Americas | 2018 | 164,771 | 11,457 | $69.53 | 0.7% | 11,457 | 0.8% | |||||||
Newmark & Company Real Estate Inc. | 125 Park Avenue & 110 East 42nd Street | 2031 | 162,804 | 9,271 | $56.94 | 0.6% | 9,271 | 0.7% | BBB- | ||||||
Verizon | 1100 King Street Bldg 1, 1 Landmark Square, 2 Landmark Square & 500 Summit Lake Drive | 2018, 2019 & 2026 | 162,409 | 4,694 | $28.90 | 0.3% | 4,694 | 0.3% | BBB+ | ||||||
King & Spalding | 1185 Avenue of the Americas | 2025 | 159,943 | 15,204 | $95.06 | 0.9% | 15,204 | 1.1% | |||||||
Young & Rubicam, Inc. | 3 Columbus Circle | 2033 | 159,394 | 10,348 | $64.92 | 0.6% | 5,060 | 0.4% | BBB | ||||||
EisnerAmper, LLP | 750 Third Avenue | 2020 | 152,961 | 9,971 | $65.19 | 0.6% | 9,971 | 0.7% | |||||||
National Hockey League | 1185 Avenue of the Americas | 2022 | 148,217 | 14,132 | $95.35 | 0.9% | 14,132 | 1.0% | |||||||
PJT Advisors Holdings LP | 280 Park Avenue | 2026 | 141,589 | 13,900 | $98.17 | 0.8% | 6,950 | 0.5% | |||||||
Total | 11,461,539 | $728,787 | (2) | $63.59 | 44.1% | $593,016 | 43.5% | ||||||||
(1) Corporate or bond rating from S&P or Moody's. | |||||||||||||||
(2) Reflects the net rent for the 1 Madison Avenue lease. If this lease were included on a gross basis, Credit Suisse's total PSF annualized rent would be $70.40 and total PSF annualized rent for the largest tenants would be $65.32. | |||||||||||||||
Supplemental Information | 40 | Third Quarter 2017 |
| ||
TENANT DIVERSIFICATION Based on SLG Share of Annualized Cash Rent Unaudited | | |
| ||
Category | Manhattan Properties | Suburban Properties | ||||||||
Arts, Ent. & Recreation | 4.3 | % | 0.2 | % | ||||||
Business Services | 2.2 | % | 2.6 | % | ||||||
Financial Services | 31.7 | % | 27.4 | % | ||||||
Government / Non Profit | 3.1 | % | 4.6 | % | ||||||
Legal | 6.6 | % | 14.0 | % | ||||||
Manufacturing | 2.3 | % | 6.6 | % | ||||||
Medical | 2.3 | % | 2.3 | % | ||||||
Other | 6.7 | % | 3.9 | % | ||||||
Professional Services | 6.7 | % | 14.6 | % | ||||||
Retail | 10.9 | % | 3.5 | % | ||||||
TAMI | ||||||||||
Technology | 1.6 | % | 7.7 | % | ||||||
Advertising | 4.1 | % | 0.9 | % | ||||||
Media | 17.2 | % | 11.7 | % | ||||||
Information | 0.3 | % | 0.0% | |||||||
Total | 100.0 | % | 100.0 | % | ||||||
Supplemental Information | 41 | Third Quarter 2017 |
| ||
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Available Space Unaudited | | |
| ||
Activity | Building Address | # of Leases | Useable SF | Rentable SF | Escalated Rent/Rentable SF ($'s)(1) | ||||||
Available Space at 6/30/17 | 1,553,301 | ||||||||||
Space which became available during the Quarter (2): | |||||||||||
Office | |||||||||||
3 Columbus Circle | 1 | 3,057 | 3,057 | $87.17 | |||||||
30 East 40th Street | 2 | 2,414 | 2,414 | 65.76 | |||||||
100 Park Avenue | 1 | 7,592 | 8,570 | 71.28 | |||||||
110 East 42nd Street | 2 | 14,619 | 15,046 | 53.21 | |||||||
110 Greene Street | 1 | 2,504 | 2,504 | 72.00 | |||||||
280 Park Avenue | 1 | 8,288 | 8,288 | 135.08 | |||||||
420 Lexington Avenue | 11 | 33,658 | 45,203 | 59.24 | |||||||
521 Fifth Avenue | 1 | 11,554 | 12,394 | 66.94 | |||||||
600 Lexington Avenue | 1 | 2,987 | 2,987 | 80.97 | |||||||
609 Fifth Avenue | 3 | 7,075 | 7,552 | 67.33 | |||||||
711 Third Avenue | 2 | 22,132 | 23,245 | 59.88 | |||||||
750 Third Avenue | 1 | 5,304 | 5,449 | 61.45 | |||||||
800 Third Avenue | 1 | 2,197 | 2,258 | 62.93 | |||||||
810 Seventh Avenue | 1 | 3,917 | 4,324 | 56.77 | |||||||
1185 Avenue of the Americas | 1 | 9,939 | 10,558 | 45.48 | |||||||
1350 Avenue of the Americas | 3 | 12,216 | 12,757 | 89.13 | |||||||
Total/Weighted Average | 33 | 149,453 | 166,606 | $66.78 | |||||||
Retail | |||||||||||
420 Lexington Avenue | 1 | 1,600 | 1,600 | 336.93 | |||||||
Total/Weighted Average | 1 | 1,600 | 1,600 | $336.93 | |||||||
Storage | |||||||||||
110 Greene Street | 1 | 3,102 | 1,975 | $9.77 | |||||||
Total/Weighted Average | 1 | 3,102 | 1,975 | $9.77 | |||||||
Total Space which became available during the quarter | |||||||||||
Office | 33 | 149,453 | 166,606 | $66.78 | |||||||
Retail | 1 | 1,600 | 1,600 | $336.93 | |||||||
Storage | 1 | 3,102 | 1,975 | $9.77 | |||||||
35 | 154,155 | 170,181 | $68.66 | ||||||||
Total Available Space | 1,707,456 | ||||||||||
(1) Escalated rent is calculated as total annual lease related income excluding electric charges. | |||||||||||
(2) Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants heldover. | |||||||||||
Supplemental Information | 42 | Third Quarter 2017 |
| ||
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Commenced Leasing Unaudited | | |
| ||
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 | 1,707,456 | |||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||
3 Columbus Circle | 1 | 5.2 | 4,896 | 4,896 | $83.00 | $— | $— | 2.0 | ||||||||||||||||||||
11 Madison Avenue | 1 | 7.7 | 44,240 | 39,565 | 85.00 | — | 45.00 | 8.0 | ||||||||||||||||||||
30 East 40th Street | 2 | 5.0 | 2,414 | 2,414 | 74.09 | 65.76 | — | 0.7 | ||||||||||||||||||||
110 Greene Street | 4 | 3.4 | 6,852 | 6,784 | 76.86 | 66.48 | 38.12 | 1.2 | ||||||||||||||||||||
125 Park Avenue | 2 | 5.2 | 1,946 | 4,608 | 64.34 | 54.87 | 114.03 | 2.7 | ||||||||||||||||||||
280 Park Avenue | 3 | 9.1 | 22,225 | 24,006 | 102.78 | — | 95.59 | 4.8 | ||||||||||||||||||||
420 Lexington Avenue | 11 | 3.1 | 29,323 | 39,536 | 64.07 | 57.80 | 33.82 | 0.9 | ||||||||||||||||||||
521 Fifth Avenue | 2 | 5.3 | 11,522 | 12,508 | 67.05 | — | 4.42 | 2.1 | ||||||||||||||||||||
600 Lexington Avenue | 1 | 5.2 | 6,780 | 6,780 | 83.00 | 69.36 | 112.32 | 2.0 | ||||||||||||||||||||
711 Third Avenue | 3 | 10.0 | 32,578 | 35,233 | 59.29 | — | 82.85 | 5.5 | ||||||||||||||||||||
750 Third Avenue | 1 | 4.0 | 5,108 | 5,449 | 65.00 | 61.45 | — | — | ||||||||||||||||||||
800 Third Avenue | 1 | 10.3 | 2,197 | 2,258 | 64.00 | 62.93 | — | 4.0 | ||||||||||||||||||||
810 Seventh Avenue | 2 | 9.5 | 19,266 | 21,348 | 62.25 | 63.17 | 115.37 | 5.1 | ||||||||||||||||||||
1350 Avenue of the Americas | 2 | 8.5 | 8,903 | 9,252 | 79.90 | 78.97 | 52.40 | 3.9 | ||||||||||||||||||||
Total/Weighted Average | 36 | 7.0 | 198,250 | 214,637 | $73.72 | $62.63 | $60.01 | 4.1 | ||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||
750 Third Avenue | 1 | 10.7 | 1,030 | 893 | $100.00 | $47.05 | $125.00 | 6.0 | ||||||||||||||||||||
1515 Broadway | 2 | 10.2 | 10,685 | 10,287 | 379.12 | 512.86 | 110.38 | 8.5 | ||||||||||||||||||||
Total/Weighted Average | 3 | 10.3 | 11,715 | 11,180 | $356.82 | $475.65 | $111.55 | 8.3 | ||||||||||||||||||||
Storage | ||||||||||||||||||||||||||||
220 East 42nd Street | 1 | 15.5 | 544 | 544 | $25.00 | $— | $— | — | ||||||||||||||||||||
625 Madison Avenue | 1 | 7.5 | 44 | 44 | 40.91 | — | — | — | ||||||||||||||||||||
1515 Broadway | 1 | 10.6 | 494 | 406 | 50.00 | — | — | — | ||||||||||||||||||||
Total/Weighted Average | 3 | 13.1 | 1,082 | 994 | $35.92 | $— | $— | — | ||||||||||||||||||||
Leased Space | ||||||||||||||||||||||||||||
Office (3) | 36 | 7.0 | 198,250 | 214,637 | $73.72 | $62.63 | $60.01 | 4.1 | ||||||||||||||||||||
Retail | 3 | 10.3 | 11,715 | 11,180 | $356.82 | $475.65 | $111.55 | 8.3 | ||||||||||||||||||||
Storage | 3 | 13.1 | 1,082 | 994 | $35.92 | $— | $— | — | ||||||||||||||||||||
Total | 42 | 7.2 | 211,047 | 226,811 | $87.51 | $105.70 | $62.28 | 4.3 | ||||||||||||||||||||
Total Available Space as of 9/30/17 | 1,496,409 | |||||||||||||||||||||||||||
Early Renewals | ||||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||
110 Greene Street | 1 | 2.0 | 3,756 | 3,756 | $70.00 | $56.88 | $— | 0.5 | ||||||||||||||||||||
420 Lexington Avenue | 4 | 5.1 | 22,454 | 29,909 | 65.24 | 59.81 | 12.4 | 1.8 | ||||||||||||||||||||
461 Fifth Avenue | 1 | 3.0 | 13,278 | 14,268 | 105.41 | 105.41 | 24.0 | — | ||||||||||||||||||||
600 Lexington Avenue | 1 | 1.5 | 4,135 | 4,144 | 76.00 | 73.54 | — | — | ||||||||||||||||||||
800 Third Avenue | 1 | 3.0 | 7,691 | 7,691 | 62.27 | 62.27 | — | — | ||||||||||||||||||||
810 Seventh Avenue | 1 | 5.1 | 15,500 | 17,320 | 75.00 | 94.12 | — | 1.0 | ||||||||||||||||||||
1350 Avenue of the Americas | 2 | 6.4 | 8,658 | 8,839 | 85.51 | 96.94 | 4.65 | 1.5 | ||||||||||||||||||||
Total/Weighted Average | 11 | 4.4 | 75,472 | 85,927 | $76.42 | $78.87 | $8.78 | 1.0 | ||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||
485 Lexington Avenue | 1 | 10.0 | 2,050 | 2,222 | $231.77 | $211.94 | $— | — | ||||||||||||||||||||
750 Third Avenue | 1 | 10.2 | 1,908 | 1,408 | 175.00 | 146.91 | 50.0 | 2.0 | ||||||||||||||||||||
800 Third Avenue | 1 | 5.0 | 3,100 | 2,800 | 271.79 | 278.13 | — | — | ||||||||||||||||||||
3 | 7.9 | 7,058 | 6,430 | $236.77 | $226.52 | $10.95 | 0.4 | |||||||||||||||||||||
Renewals | ||||||||||||||||||||||||||||
Early Renewals Office | 11 | 4.4 | 75,472 | 85,927 | $76.42 | $78.87 | $8.78 | 1.0 | ||||||||||||||||||||
Early Renewals Storage | 3 | 7.9 | 7,058 | 6,430 | $236.77 | $226.52 | $10.95 | 0.4 | ||||||||||||||||||||
Total | 14 | 4.6 | 82,530 | 92,357 | $87.59 | $89.15 | $8.93 | 1.0 | ||||||||||||||||||||
(1) Annual initial base rent. | ||||||||||||||||||||||||||||
(2) Escalated rent is calculated as total annual lease related income excluding electric charges. | ||||||||||||||||||||||||||||
(3) Average starting office rent excluding new tenants replacing vacancies is $67.52/rsf for 96,047 rentable SF. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $71.73/rsf for 181,974 rentable SF. | ||||||||||||||||||||||||||||
Supplemental Information | 43 | Third Quarter 2017 |
| ||
LEASING ACTIVITY - SUBURBAN OPERATING PROPERTIES Available Space Unaudited | | |
| ||
Activity | Building Address | # of Leases | Useable SF | Rentable SF | Escalated Rent/Rentable SF ($'s)(1) | ||||||
Available Space at 6/30/17 | 926,139 | ||||||||||
Less: Sold Vacancies | 680 Washington Boulevard, Stamford, Connecticut | (17,242 | ) | ||||||||
750 Washington Boulevard, Stamford, Connecticut | (44,712 | ) | |||||||||
Space which became available during the Quarter (2): | |||||||||||
Office | |||||||||||
100 Summit Lake Drive, Valhalla, New York | 1 | 31,500 | 31,500 | $27.99 | |||||||
200 Summit Lake Drive, Valhalla, New York | 3 | 22,799 | 22,799 | 25.64 | |||||||
360 Hamilton Avenue, White Plains, New York | 1 | 8,252 | 8,252 | 42.63 | |||||||
1 Landmark Square, Stamford, Connecticut | 2 | 9,419 | 9,419 | 41.98 | |||||||
1055 Washington Boulevard, Stamford, Connecticut | 1 | 2,120 | 2,120 | 40.18 | |||||||
Jericho Plaza, Jericho, New York | 2 | 11,983 | 11,983 | 37.58 | |||||||
16 Court Street, Brooklyn, New York | 1 | 550 | 687 | 42.77 | |||||||
Total/Weighted Average | 11 | 86,623 | 86,760 | $32.02 | |||||||
Storage | |||||||||||
Jericho Plaza, Jericho, New York | 1 | 404 | 404 | $20.87 | |||||||
Total/Weighted Average | 1 | 404 | 404 | $20.87 | |||||||
Total Space which became available during the Quarter | |||||||||||
Office | 11 | 86,623 | 86,760 | $32.02 | |||||||
Storage | 1 | 404 | 404 | $20.87 | |||||||
12 | 87,027 | 87,164 | $31.97 | ||||||||
Total Available Space | 951,212 | ||||||||||
(1) Escalated rent is calculated as total annual lease related income excluding electric charges. | |||||||||||
(2) Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants heldover. | |||||||||||
Supplemental Information | 44 | Third Quarter 2017 |
| ||
LEASING ACTIVITY - SUBURBAN OPERATING PROPERTIES Commenced Leasing Unaudited | | |
| ||
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 | 951,212 | |||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||
100 Summit Lake Drive, Valhalla, New York | 3 | 9.6 | 63,500 | 63,500 | $25.58 | $28.07 | $47.17 | 7.2 | ||||||||||||||||||||
200 Summit Lake Drive, Valhalla, New York | 1 | 3.0 | 2,486 | 2,486 | 25.50 | 28.02 | 5.00 | 3.0 | ||||||||||||||||||||
360 Hamilton Avenue, White Plains, New York | 2 | 4.3 | 11,736 | 10,479 | 39.79 | 42.63 | 3.70 | 1.1 | ||||||||||||||||||||
1 Landmark Square, Stamford, Connecticut | 1 | 3.3 | 4,444 | 4,444 | 35.75 | 35.75 | — | 4.0 | ||||||||||||||||||||
2 Landmark Square, Stamford, Connecticut | 1 | 3.2 | 2,550 | 2,675 | 34.00 | — | 47.00 | 2.0 | ||||||||||||||||||||
4 Landmark Square, Stamford, Connecticut | 1 | 3.1 | 1,165 | 1,165 | 34.00 | — | 39.00 | 1.0 | ||||||||||||||||||||
1055 Washington Boulevard, Stamford, Connecticut | 1 | 5.3 | 2,120 | 2,120 | 39.00 | 40.18 | 12.00 | 3.0 | ||||||||||||||||||||
Jericho Plaza, Jericho, New York | 1 | 2.0 | 3,500 | 3,500 | 34.00 | 38.75 | — | — | ||||||||||||||||||||
16 Court Street, Brooklyn, New York | 1 | 4.0 | 3,395 | 3,243 | 55.00 | 39.77 | 49.49 | 5.0 | ||||||||||||||||||||
Total/Weighted Average | 12 | 7.7 | 94,896 | 93,612 | $29.63 | $32.66 | $36.36 | 5.6 | ||||||||||||||||||||
Leased Space | ||||||||||||||||||||||||||||
Office (3) | 12 | 7.7 | 94,896 | 93,612 | $29.63 | $32.66 | $36.36 | 5.6 | ||||||||||||||||||||
Total | 12 | 7.7 | 94,896 | 93,612 | $29.63 | $32.66 | $36.36 | 5.6 | ||||||||||||||||||||
Total Available Space as of 9/30/17 | 856,316 | |||||||||||||||||||||||||||
Early Renewals | ||||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||
1100 King Street - 5 Int'l Drive, Rye Brook, New York | 1 | 3.2 | 1,068 | 1,068 | $27.50 | $27.00 | $— | 2.0 | ||||||||||||||||||||
1100 King Street - 6 Int'l Drive, Rye Brook, New York | 1 | 5.0 | 15,830 | 15,830 | 26.00 | 29.00 | 24.09 | — | ||||||||||||||||||||
360 Hamilton Avenue, White Plains, New York | 1 | 5.3 | 6,708 | 6,708 | 40.00 | 39.53 | 7.00 | 3.0 | ||||||||||||||||||||
1 Landmark Square, Stamford, Connecticut | 1 | 0.3 | 3,757 | 3,757 | 35.00 | 35.00 | — | — | ||||||||||||||||||||
Jericho Plaza, Jericho, New York | 1 | 9.5 | 12,404 | 12,404 | 33.00 | 35.54 | — | 36.0 | ||||||||||||||||||||
Total/Weighted Average | 5 | 5.9 | 39,767 | 39,767 | $31.44 | $33.33 | $10.77 | 11.8 | ||||||||||||||||||||
Storage | ||||||||||||||||||||||||||||
1 Landmark Square, Stamford, Connecticut | 1 | 0.3 | 200 | 200 | $10.00 | $10.00 | $— | — | ||||||||||||||||||||
Jericho Plaza, Jericho, New York | 1 | 9.5 | 458 | 458 | 16.50 | 17.39 | — | — | ||||||||||||||||||||
Total/Weighted Average | 2 | 6.7 | 658 | 658 | $14.52 | $15.14 | $— | — | ||||||||||||||||||||
Renewals | ||||||||||||||||||||||||||||
Early Renewals Office | 5 | 5.9 | 39,767 | 39,767 | $31.44 | $33.33 | $10.77 | 11.8 | ||||||||||||||||||||
Early Renewals Storage | 2 | 6.7 | 658 | 658 | $14.52 | $15.14 | $— | — | ||||||||||||||||||||
Total | 7 | 6.0 | 40,425 | 40,425 | $31.16 | $33.03 | $10.59 | 11.6 | ||||||||||||||||||||
(1) Annual initial base rent. | ||||||||||||||||||||||||||||
(2) Escalated rent is calculated as total annual lease related income excluding electric charges. | ||||||||||||||||||||||||||||
(3) Average starting office rent excluding new tenants replacing vacancies is $30.96/rsf for 55,545 rentable SF. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $31.16/rsf 95,312 rentable SF. | ||||||||||||||||||||||||||||
Supplemental Information | 45 | Third Quarter 2017 |
| ||
ANNUAL LEASE EXPIRATIONS - MANHATTAN OPERATING PROPERTIES Office, Retail and Storage Leases Unaudited | | |
| ||
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) | |||||||||||||||||||||
1st Quarter 2017 (1) | 5 | 3,397 | 0.02 | % | $70,451 | $20.74 | $23.47 | 1 | 291 | — | % | $6,600 | $22.68 | $25.00 | |||||||||||||||||||
2nd Quarter 2017 (1) | 2 | 1,027 | 0.01 | % | 70,814 | 68.95 | 69.40 | 1 | 570 | 0.01 | % | 44,000 | 77.19 | 90.00 | |||||||||||||||||||
3rd Quarter 2017 (1) | 2 | 2,414 | 0.02 | % | 158,776 | 65.77 | 64.00 | 1 | 3,057 | 0.05 | % | 266,496 | 87.18 | 82.00 | |||||||||||||||||||
4th Quarter 2017 | 18 | 143,930 | 0.93 | % | 11,530,113 | 80.11 | 76.46 | 4 | 17,923 | 0.28 | % | 1,412,968 | 78.84 | 76.97 | |||||||||||||||||||
Total 2017 | 27 | 150,768 | 0.97 | % | $11,830,154 | $78.47 | $75.02 | 7 | 21,841 | 0.34 | % | $1,730,064 | $79.21 | $77.32 | |||||||||||||||||||
2018 | 77 | 501,768 | 3.23 | % | $42,297,765 | $84.30 | $102.25 | 22 | 173,285 | 2.71 | % | $18,425,279 | $106.33 | $81.18 | |||||||||||||||||||
2019 | 85 | 1,100,593 | 7.08 | % | 79,404,189 | 72.15 | 71.25 | 24 | 385,614 | 6.03 | % | 32,076,503 | 83.18 | 85.17 | |||||||||||||||||||
2020 | 97 | 2,299,644 | 14.78 | % | 151,875,697 | 66.04 | 71.14 | 23 | 313,412 | 4.90 | % | 20,133,504 | 64.24 | 72.29 | |||||||||||||||||||
2021 | 97 | 1,780,498 | 11.45 | % | 115,677,338 | 64.97 | 66.77 | 23 | 309,354 | 4.83 | % | 19,701,015 | 63.68 | 70.67 | |||||||||||||||||||
2022 | 95 | 1,134,035 | 7.29 | % | 78,107,721 | 68.88 | 78.86 | 25 | 238,999 | 3.74 | % | 17,761,177 | 74.31 | 71.78 | |||||||||||||||||||
2023 | 43 | 820,587 | 5.28 | % | 49,556,115 | 60.39 | 65.29 | 15 | 471,649 | 7.37 | % | 37,790,000 | 80.12 | 75.66 | |||||||||||||||||||
2024 | 31 | 276,537 | 1.78 | % | 21,659,122 | 78.32 | 81.09 | 14 | 314,727 | 4.92 | % | 29,913,476 | 95.05 | 90.33 | |||||||||||||||||||
2025 | 35 | 685,344 | 4.41 | % | 61,528,667 | 89.78 | 87.64 | 13 | 447,435 | 6.99 | % | 37,749,310 | 84.37 | 86.36 | |||||||||||||||||||
2026 | 30 | 806,713 | 5.19 | % | 58,975,871 | 73.11 | 76.79 | 10 | 319,878 | 5.00 | % | 29,903,861 | 93.49 | 96.42 | |||||||||||||||||||
Thereafter | 110 | 5,999,029 | 38.57 | % | 364,625,615 | 60.78 | 67.84 | 31 | 3,402,375 | 53.17 | % | 252,084,088 | 74.09 | 88.45 | |||||||||||||||||||
727 | 15,555,516 | 100.00 | % | $1,035,538,254 | $66.57 | $71.87 | 207 | 6,398,569 | 100.00 | % | $497,268,277 | $77.72 | $85.15 | ||||||||||||||||||||
NOTE: Data excludes space currently occupied by SL Green's corporate offices | |||||||||||||||||||||||||||||||||
(1) Includes month to month holdover tenants that expired prior to September 30, 2017. | |||||||||||||||||||||||||||||||||
(2) Tenants may have multiple leases. | |||||||||||||||||||||||||||||||||
(3) Represents in place annualized rent allocated by year of expiration. | |||||||||||||||||||||||||||||||||
(4) Management's estimate of current average asking rents for currently occupied space as of September 30, 2017. Taking rents are typically lower than asking rents and may vary from property to property. | |||||||||||||||||||||||||||||||||
Supplemental Information | 46 | Third Quarter 2017 |
| ||
ANNUAL LEASE EXPIRATIONS - SUBURBAN OPERATING PROPERTIES Office, Retail and Storage Leases Unaudited | | |
| ||
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) | ||||||||||||||||||||||
1st Quarter 2017 (1) | 13 | 42,394 | 1.45 | % | $1,697,351 | $40.04 | $35.70 | 2 | 4,060 | 0.93 | % | $116,797 | $28.77 | $36.00 | ||||||||||||||||||||
2nd Quarter 2017 (1) | 2 | 6,205 | 0.21 | % | 254,187 | 40.96 | 49.44 | — | — | — | % | — | — | — | ||||||||||||||||||||
3rd Quarter 2017 (1) | 2 | 6,855 | 0.24 | % | 293,424 | 42.80 | 43.50 | 1 | 15,624 | 3.57 | % | 576,383 | 36.89 | 35.51 | ||||||||||||||||||||
4th Quarter 2017 | 6 | 40,328 | 1.38 | % | 1,815,971 | 45.03 | 47.51 | 2 | 6,935 | 1.59 | % | 206,666 | 29.80 | 31.14 | ||||||||||||||||||||
Total 2017 | 23 | 95,782 | 3.29 | % | $4,060,933 | $42.40 | $42.12 | 5 | 26,619 | 6.09 | % | $899,846 | $33.80 | $34.45 | ||||||||||||||||||||
2018 | 50 | 232,822 | 7.99 | % | $7,843,401 | $33.69 | $34.80 | 2 | 9,676 | 2.21 | % | $493,740 | $51.03 | $36.00 | ||||||||||||||||||||
2019 | 52 | 429,721 | 14.74 | % | 12,860,512 | 29.93 | 31.00 | 7 | 35,379 | 8.09 | % | 1,231,174 | 34.80 | 36.00 | ||||||||||||||||||||
2020 | 47 | 307,001 | 10.53 | % | 10,936,148 | 35.62 | 37.38 | 4 | 45,004 | 10.29 | % | 1,756,073 | 39.02 | 35.65 | ||||||||||||||||||||
2021 | 42 | 389,019 | 13.34 | % | 12,902,235 | 33.17 | 33.91 | 5 | 104,296 | 23.83 | % | 3,993,661 | 38.29 | 36.00 | ||||||||||||||||||||
2022 | 36 | 136,294 | 4.67 | % | 4,992,726 | 36.63 | 39.77 | 1 | 18,012 | 4.12 | % | 661,803 | 36.74 | 36.00 | ||||||||||||||||||||
2023 | 21 | 187,426 | 6.43 | % | 6,141,620 | 32.77 | 34.72 | 2 | 42,334 | 9.68 | % | 1,462,845 | 34.55 | 36.00 | ||||||||||||||||||||
2024 | 17 | 229,649 | 7.88 | % | 7,748,889 | 33.74 | 42.68 | 2 | 52,707 | 12.05 | % | 1,823,511 | 34.60 | 36.00 | ||||||||||||||||||||
2025 | 13 | 111,047 | 3.81 | % | 3,607,260 | 32.48 | 34.63 | 1 | 1,729 | 0.40 | % | 59,040 | 34.15 | 36.00 | ||||||||||||||||||||
2026 | 16 | 273,993 | 9.40 | % | 9,757,691 | 35.61 | 34.97 | 4 | 88,854 | 20.30 | % | 2,979,398 | 33.53 | 35.96 | ||||||||||||||||||||
Thereafter | 23 | 522,949 | 17.94 | % | 13,734,959 | 26.26 | 27.93 | 1 | 12,862 | 2.94 | % | 448,805 | 34.89 | 36.00 | ||||||||||||||||||||
340 | 2,915,703 | 100.00 | % | $94,586,373 | $32.44 | $34.26 | 34 | 437,472 | 100.00 | % | $15,809,897 | $36.14 | $35.86 | |||||||||||||||||||||
(1) Includes month to month holdover tenants that expired prior to September 30, 2017. | ||||||||||||||||||||||||||||||||||
(2) Tenants may have multiple leases. | ||||||||||||||||||||||||||||||||||
(3) Represents in place annualized rent allocated by year of expiration. | ||||||||||||||||||||||||||||||||||
(4) Management's estimate of current average asking rents for currently occupied space as of September 30, 2017. Taking rents are typically lower than asking rents and may vary from property to property. | ||||||||||||||||||||||||||||||||||
Supplemental Information | 47 | Third Quarter 2017 |
| ||
ANNUAL LEASE EXPIRATIONS Retail Leases Excluding Suburban Properties Unaudited | | |
| ||
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) | |||||||||||||||||||||||
High Street Retail | |||||||||||||||||||||||||||||||||||
2017 (1) | 3 | 3,327 | 1.07 | % | $137,687 | $41.38 | $377.27 | 2 | 7,660 | 2.00 | % | $214,611 | $28.02 | $125.53 | |||||||||||||||||||||
2018 | 6 | 6,549 | 2.11 | % | 573,851 | 87.62 | 105.56 | 2 | 27,932 | 7.30 | % | 1,977,365 | 70.79 | 75.46 | |||||||||||||||||||||
2019 | 1 | 800 | 0.26 | % | 23,964 | 29.96 | 31.45 | 2 | 4,935 | 1.29 | % | 57,222 | 11.60 | 12.17 | |||||||||||||||||||||
2020 | 2 | 6,601 | 2.12 | % | 851,848 | 129.05 | 349.13 | 3 | 25,424 | 6.64 | % | 5,562,274 | 218.78 | 277.01 | |||||||||||||||||||||
2021 | 1 | 108,148 | 34.80 | % | 7,352,138 | 67.98 | 70.00 | 2 | 16,911 | 4.41 | % | 3,903,706 | 230.84 | 289.52 | |||||||||||||||||||||
2022 | 1 | 1,366 | 0.44 | % | 226,404 | 165.74 | 299.00 | 2 | 50,808 | 13.27 | % | 22,244,350 | 437.81 | 501.10 | |||||||||||||||||||||
2023 | 1 | 6,476 | 2.08 | % | 715,494 | 110.48 | 125.00 | 3 | 12,331 | 3.22 | % | 2,008,286 | 162.86 | 238.67 | |||||||||||||||||||||
2024 | 5 | 76,039 | 24.47 | % | 16,859,910 | 221.73 | 228.3 | 1 | 7,793 | 2.04 | % | 4,899,372 | 628.69 | 898.00 | |||||||||||||||||||||
2025 | 3 | 33,944 | 10.92 | % | 892,487 | 26.29 | 24.15 | 3 | 16,143 | 4.22 | % | 1,224,506 | 75.85 | 70.43 | |||||||||||||||||||||
2026 | — | 5,218 | 1.68 | % | 2,903,400 | 556.42 | 537.00 | 3 | 69,206 | 18.07 | % | 25,247,240 | 364.81 | 372.53 | |||||||||||||||||||||
Thereafter | 4 | 62,281 | 20.04 | % | 3,394,044 | 54.5 | 85.65 | 6 | 143,735 | 37.54 | % | 80,493,067 | 560.01 | 575.05 | |||||||||||||||||||||
27 | 310,749 | 100.00 | % | $33,931,229 | $109.19 | $126.73 | 29 | 382,878 | 100.00 | % | $147,831,999 | $386.11 | $418.00 | ||||||||||||||||||||||
Vacancy (5) | 25,604 | 205.33 | 38,297 | 139.98 | |||||||||||||||||||||||||||||||
336,353 | $132.71 | 421,175 | $392.25 | ||||||||||||||||||||||||||||||||
Other Retail | |||||||||||||||||||||||||||||||||||
2017 (1) | — | — | — | % | $— | $— | $— | 2 | 690 | 0.23 | % | $65,000 | $94.20 | $104.78 | |||||||||||||||||||||
2018 | 7 | 59,851 | 7.00 | % | 11,691,034 | 195.34 | 346.24 | 4 | 9,426 | 3.20 | % | 1,063,985 | 112.88 | 150.85 | |||||||||||||||||||||
2019 | 5 | 56,212 | 6.58 | % | 5,085,498 | 90.47 | 134.81 | 2 | 7,400 | 2.51 | % | 1,215,947 | 164.32 | 195.41 | |||||||||||||||||||||
2020 | 8 | 26,155 | 3.06 | % | 5,608,627 | 214.44 | 367.53 | 2 | 32,390 | 11.00 | % | 1,456,194 | 44.96 | 52.96 | |||||||||||||||||||||
2021 | 12 | 24,579 | 2.88 | % | 2,815,554 | 114.55 | 115.53 | — | — | — | % | — | — | — | |||||||||||||||||||||
2022 | 14 | 130,693 | 15.29 | % | 17,147,128 | 131.20 | 180.74 | 6 | 12,603 | 4.28 | % | 1,727,283 | 137.05 | 175.49 | |||||||||||||||||||||
2023 | 5 | 38,875 | 4.55 | % | 5,300,749 | 136.35 | 146.93 | 4 | 15,851 | 5.39 | % | 2,071,037 | 130.66 | 123.70 | |||||||||||||||||||||
2024 | 8 | 29,730 | 3.48 | % | 6,948,741 | 233.73 | 223.48 | 6 | 17,035 | 5.79 | % | 1,625,079 | 95.40 | 100.38 | |||||||||||||||||||||
2025 | 12 | 36,389 | 4.26 | % | 13,123,416 | 360.64 | 393.01 | — | — | — | % | — | — | — | |||||||||||||||||||||
2026 | 7 | 30,437 | 3.56 | % | 10,158,821 | 333.77 | 324.93 | 3 | 27,877 | 9.47 | % | 4,656,394 | 167.03 | 184.78 | |||||||||||||||||||||
Thereafter | 48 | 421,710 | 49.34 | % | 49,972,149 | 118.50 | 127.95 | 12 | 171,063 | 58.13 | % | 29,373,221 | 171.71 | 176.15 | |||||||||||||||||||||
126 | 854,631 | 100.00 | % | $127,851,715 | $149.60 | $181.22 | 41 | 294,335 | 100.00 | % | $43,254,140 | $146.96 | $155.68 | ||||||||||||||||||||||
Vacancy (5) | 13,450 | 251.79 | 24,249 | 51.55 | |||||||||||||||||||||||||||||||
868,081 | $182.32 | 318,584 | $147.75 | ||||||||||||||||||||||||||||||||
(1) Includes month to month holdover tenants that expired prior to September 30, 2017. | |||||||||||||||||||||||||||||||||||
(2) Tenants may have multiple leases. | |||||||||||||||||||||||||||||||||||
(3) Represents in place annualized rent allocated by year of expiration. | |||||||||||||||||||||||||||||||||||
(4) Management's estimate of average asking rents for currently occupied space as of September 30, 2017. Taking rents are typically lower than asking rents and may vary from property to property. | |||||||||||||||||||||||||||||||||||
(5) Includes square footage on leases signed but not yet commenced. | |||||||||||||||||||||||||||||||||||
Supplemental Information | 48 | Third Quarter 2017 |
| ||
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Manhattan Unaudited (Dollars in Thousands) | | |
| ||
Occupancy (%) | Acquisition | |||||||||||||||
Property | Type of Ownership | Submarket | Net Rentable SF | at acquisition | 9/30/2017 | Price ($'s) (1) | ||||||||||
1998 - 2017 Acquisitions | ||||||||||||||||
Mar-98 | 420 Lexington Avenue | Operating Sublease | Grand Central | 1,188,000 | 83.0 | 97.6 | $ | 78,000 | ||||||||
May-98 | 711 3rd Avenue | Operating Sublease | Grand Central | 524,000 | 79.0 | 90.7 | 65,600 | |||||||||
Jun-98 | 440 9th Avenue | Fee Interest | Penn Station | 339,000 | 76.0 | N/A | 32,000 | |||||||||
Jan-99 | 420 Lexington Leasehold | Sub-leasehold | Grand Central | — | — | — | 27,300 | |||||||||
Jan-99 | 555 West 57th Street - 65% JV | Fee Interest | Midtown West | 941,000 | 100.0 | 99.9 | 66,700 | |||||||||
Aug-99 | 1250 Broadway - 50% JV | Fee Interest | Penn Station | 670,000 | 96.5 | N/A | 93,000 | |||||||||
Nov-99 | 555 West 57th Street - remaining 35% | Fee Interest | Midtown West | — | 99.9 | 34,100 | ||||||||||
Feb-00 | 100 Park Avenue - 50% JV | Fee Interest | Grand Central | 834,000 | 96.5 | 89.4 | 192,000 | |||||||||
Jun-01 | 317 Madison Avenue | Fee Interest | Grand Central | 450,000 | 95.0 | N/A | 105,600 | |||||||||
Sep-01 | 1250 Broadway - 49.9% JV (2) | Fee Interest | Penn Station | 670,000 | 97.7 | N/A | 126,500 | |||||||||
May-02 | 1515 Broadway - 55% JV | Fee Interest | Times Square | 1,750,000 | 98.0 | 98.4 | 483,500 | |||||||||
Feb-03 | 220 East 42nd Street | Fee Interest | Grand Central | 1,135,000 | 91.9 | 58.0 | 265,000 | |||||||||
Mar-03 | 125 Broad Street | Fee Interest | Downtown | 525,000 | 100.0 | N/A | 92,000 | |||||||||
Oct-03 | 461 Fifth Avenue | Leasehold Interest | Midtown | 200,000 | 93.9 | 99.9 | 60,900 | |||||||||
Dec-03 | 1221 Avenue of the Americas - 45% JV | Fee Interest | Rockefeller Center | 2,550,000 | 98.8 | N/A | 1,000,000 | |||||||||
Mar-04 | 19 West 44th Street - 35% JV | Fee Interest | Midtown | 292,000 | 86.0 | N/A | 67,000 | |||||||||
Jul-04 | 750 Third Avenue | Fee Interest | Grand Central | 779,000 | 100.0 | 98.1 | 255,000 | |||||||||
Jul-04 | 485 Lexington Avenue - 30% JV | Fee Interest | Grand Central | 921,000 | 100.0 | 69.7 | 225,000 | |||||||||
Oct-04 | 625 Madison Avenue | Leasehold Interest | Plaza District | 563,000 | 68.0 | 98.8 | 231,500 | |||||||||
Feb-05 | 28 West 44th Street | Fee Interest | Midtown | 359,000 | 87.0 | N/A | 105,000 | |||||||||
Apr-05 | 1 Madison Avenue - 55% JV | Fee Interest | Park Avenue South | 1,177,000 | 96.0 | 100.0 | 803,000 | |||||||||
Apr-05 | 5 Madison Avenue Clock Tower | Fee Interest | Park Avenue South | 267,000 | N/A | N/A | 115,000 | |||||||||
Jun-05 | 19 West 44th Street - remaining 65% | Fee Interest | Midtown | — | N/A | 91,200 | ||||||||||
Mar-06 | 521 Fifth Avenue | Leasehold Interest | Midtown | 460,000 | 97.0 | 90.2 | 210,000 | |||||||||
Jun-06 | 609 Fifth Avenue | Fee Interest | Midtown | 160,000 | 98.5 | 68.3 | 182,000 | |||||||||
Dec-06 | 485 Lexington Avenue - remaining 70% | Fee Interest | Grand Central | — | 69.7 | 578,000 | ||||||||||
Dec-06 | 800 Third Avenue - 42.95% JV | Fee Interest | Grand Central North | 526,000 | 96.9 | 99.1 | 285,000 | |||||||||
Jan-07 | Reckson - NYC Portfolio | Fee Interests / Leasehold Interest | Various | 5,612,000 | 98.3 | 97.1 | 3,679,530 | |||||||||
Apr-07 | 331 Madison Avenue | Fee Interest | Grand Central | 114,900 | 97.6 | N/A | 73,000 | |||||||||
Apr-07 | 1745 Broadway - 32.3% JV | Fee Interest | Midtown | 674,000 | 100.0 | 100.0 | 520,000 | |||||||||
Jun-07 | 333 West 34th Street | Fee Interest | Penn Station | 345,400 | 100.0 | N/A | 183,000 | |||||||||
Aug-07 | 1 Madison Avenue - remaining 45% | Fee Interest | Park Avenue South | 1,177,000 | 99.8 | 100.0 | 1,000,000 | |||||||||
Dec-07 | 388 & 390 Greenwich Street - 50.6% JV | Fee Interest | Downtown | 2,635,000 | 100.0 | N/A | 1,575,000 | |||||||||
Jan-10 | 100 Church Street | Fee Interest | Downtown | 1,047,500 | 41.3 | 99.6 | 181,600 | |||||||||
May-10 | 600 Lexington Avenue - 55% JV | Fee Interest | Grand Central North | 303,515 | 93.6 | 87.8 | 193,000 | |||||||||
Aug-10 | 125 Park Avenue | Fee Interest | Grand Central | 604,245 | 99.1 | 99.6 | 330,000 | |||||||||
Jan-11 | 521 Fifth Avenue - remaining 49.9% | Leasehold Interest | Midtown | 460,000 | 80.7 | 90.2 | 245,700 | |||||||||
Apr-11 | 1515 Broadway - remaining 45% | Fee Interest | Times Square | 1,750,000 | 98.5 | 98.4 | 1,210,000 | |||||||||
May-11 | 110 East 42nd Street | Fee Interest | Grand Central | 205,000 | 72.6 | 66.6 | 85,570 | |||||||||
May-11 | 280 Park Avenue - 49.5% JV | Fee Interest | Park Avenue | 1,219,158 | 78.2 | 93.0 | 1,110,000 | |||||||||
Nov-11 | 180 Maiden Lane - 49.9% JV | Fee Interest | Financial East | 1,090,000 | 97.7 | N/A | 425,680 | |||||||||
Nov-11 | 51 East 42nd Street | Fee Interest | Grand Central | 142,000 | 95.5 | N/A | 80,000 | |||||||||
Feb-12 | 10 East 53rd Street - 55% JV | Fee Interest | Plaza District | 354,300 | 91.9 | 69.0 | 252,500 | |||||||||
Jun-12 | 304 Park Avenue South | Fee Interest | Midtown South | 215,000 | 95.8 | 100.0 | 135,000 | |||||||||
Sep-12 | 641 Sixth Avenue | Fee Interest | Midtown South | 163,000 | 92.1 | 100.0 | 90,000 | |||||||||
Dec-12 | 315 West 36th Street - 35.5% JV | Fee Interest | Times Square South | 147,619 | 99.2 | N/A | 46,000 | |||||||||
May-14 | 388 & 390 Greenwich Street - remaining 49.4% | Fee Interest | Downtown | 2,635,000 | 100.0 | N/A | 1,585,000 | |||||||||
Jul-15 | 110 Greene Street - 90% JV | Fee Interest | Soho | 223,600 | 84.0 | 73.4 | 255,000 | |||||||||
Aug-15 | 30 East 40th Street - 60% JV | Leasehold Interest | Grand Central South | 69,446 | 100.0 | 93.2 | 4,650 | |||||||||
Aug-15 | 11 Madison Avenue | Fee Interest | Park Avenue South | 2,314,000 | 71.6 | 100.0 | 2,285,000 | |||||||||
Dec-15 | 600 Lexington Avenue - remaining 45% | Fee Interest | Grand Central North | 303,515 | 95.5 | 87.8 | 284,000 | |||||||||
41,085,198 | $ | 21,699,130 | ||||||||||||||
(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.) | ||||||||||||||||
Supplemental Information | 49 | Third Quarter 2017 |
| ||
SUMMARY OF REAL ESTATE SALES ACTIVITY Manhattan Unaudited (Dollars in Thousands) | | |
| ||
Sales | Sales | |||||||||||||||||||
Property | Type of Ownership | Submarket | Net Rentable SF | Price ($'s) | Price ($'s/SF) | |||||||||||||||
2000 - 2015 Sales | ||||||||||||||||||||
Feb-00 | 29 West 35th Street | Fee Interest | Penn Station | 78,000 | $ | 11,700 | $ | 150 | ||||||||||||
Mar-00 | 36 West 44th Street | Fee Interest | Grand Central | 178,000 | 31,500 | 177 | ||||||||||||||
May-00 | 321 West 44th Street - 35% JV | Fee Interest | Times Square | 203,000 | 28,400 | 140 | ||||||||||||||
Nov-00 | 90 Broad Street | Fee Interest | Financial | 339,000 | 60,000 | 177 | ||||||||||||||
Dec-00 | 17 Battery South | Fee Interest | Financial | 392,000 | 53,000 | 135 | ||||||||||||||
Jan-01 | 633 Third Ave | Fee Interest | Grand Central North | 40,623 | 13,250 | 326 | ||||||||||||||
May-01 | 1 Park Ave - 45% JV | Fee Interest | Grand Central South | 913,000 | 233,900 | 256 | ||||||||||||||
Jun-01 | 1412 Broadway | Fee Interest | Times Square South | 389,000 | 90,700 | 233 | ||||||||||||||
Jul-01 | 110 East 42nd Street | Fee Interest | Grand Central | 69,700 | 14,500 | 208 | ||||||||||||||
Sep-01 | 1250 Broadway (1) | Fee Interest | Penn Station | 670,000 | 126,500 | 189 | ||||||||||||||
Jun-02 | 469 Seventh Avenue | Fee Interest | Penn Station | 253,000 | 53,100 | 210 | ||||||||||||||
Mar-03 | 50 West 23rd Street | Fee Interest | Chelsea | 333,000 | 66,000 | 198 | ||||||||||||||
Jul-03 | 1370 Broadway | Fee Interest | Times Square South | 255,000 | 58,500 | 229 | ||||||||||||||
Dec-03 | 321 West 44th Street | Fee Interest | Times Square | 203,000 | 35,000 | 172 | ||||||||||||||
May-04 | 1 Park Avenue (2) | Fee Interest | Grand Central South | 913,000 | 318,500 | 349 | ||||||||||||||
Oct-04 | 17 Battery Place North | Fee Interest | Financial | 419,000 | 70,000 | 167 | ||||||||||||||
Nov-04 | 1466 Broadway | Fee Interest | Times Square | 289,000 | 160,000 | 554 | ||||||||||||||
Apr-05 | 1414 Avenue of the Americas | Fee Interest | Plaza District | 111,000 | 60,500 | 545 | ||||||||||||||
Aug-05 | 180 Madison Avenue | Fee Interest | Grand Central | 265,000 | 92,700 | 350 | ||||||||||||||
Jul-06 | 286 & 290 Madison Avenue | Fee Interest | Grand Central | 149,000 | 63,000 | 423 | ||||||||||||||
Aug-06 | 1140 Avenue of the Americas | Leasehold Interest | Rockefeller Center | 191,000 | 97,500 | 510 | ||||||||||||||
Dec-06 | 521 Fifth Avenue (3) | Leasehold Interest | Midtown | 460,000 | 240,000 | 522 | ||||||||||||||
Mar-07 | 1 Park Avenue | Fee Interest | Grand Central South | 913,000 | 550,000 | 602 | ||||||||||||||
Mar-07 | 70 West 36th Street | Fee Interest | Garment | 151,000 | 61,500 | 407 | ||||||||||||||
Jun-07 | 110 East 42nd Street | Fee Interest | Grand Central North | 181,000 | 111,500 | 616 | ||||||||||||||
Jun-07 | 125 Broad Street | Fee Interest | Downtown | 525,000 | 273,000 | 520 | ||||||||||||||
Jun-07 | 5 Madison Clock Tower | Fee Interest | Park Avenue South | 267,000 | 200,000 | 749 | ||||||||||||||
Jul-07 | 292 Madison Avenue | Fee Interest | Grand Central South | 187,000 | 140,000 | 749 | ||||||||||||||
Jul-07 | 1372 Broadway (4) | Fee Interest | Penn Station/Garment | 508,000 | 335,000 | 659 | ||||||||||||||
Nov-07 | 470 Park Avenue South | Fee Interest | Park Avenue South/Flatiron | 260,000 | 157,000 | 604 | ||||||||||||||
Jan-08 | 440 Ninth Avenue | Fee Interest | Penn Station | 339,000 | 160,000 | 472 | ||||||||||||||
May-08 | 1250 Broadway | Fee Interest | Penn Station | 670,000 | 310,000 | 463 | ||||||||||||||
Oct-08 | 1372 Broadway (5) | Fee Interest | Penn Station/Garment | 508,000 | 274,000 | 539 | ||||||||||||||
May-10 | 1221 Avenue of the Americas (6) | Fee Interest | Rockefeller Center | 2,550,000 | 1,280,000 | 502 | ||||||||||||||
Sep-10 | 19 West 44th Street | Fee Interest | Midtown | 292,000 | 123,150 | 422 | ||||||||||||||
May-11 | 28 West 44th Street | Fee Interest | Midtown | 359,000 | 161,000 | 448 | ||||||||||||||
Aug-13 | 333 West 34th Street | Fee Interest | Penn Station | 345,400 | 220,250 | 638 | ||||||||||||||
May-14 | 673 First Avenue | Leasehold Interest | Grand Central South | 422,000 | 145,000 | 344 | ||||||||||||||
Sep-15 | 120 West 45th Street | Fee Interest | Midtown | 440,000 | 365,000 | 830 | ||||||||||||||
Sep-15 | 315 West 36th Street | Fee Interest | Times Square South | 148,000 | 115,000 | 777 | ||||||||||||||
16,178,723 | $ | 6,959,650 | $ | 430 | ||||||||||||||||
2016 Sales | ||||||||||||||||||||
Jun-16 | 388 & 390 Greenwich Street | Fee Interest | Downtown | 2,635,000 | $ | 2,000,000 | $ | 759 | ||||||||||||
Aug-16 | 11 Madison Avenue (7) | Fee Interest | Park Avenue South | 2,314,000 | 2,600,000 | 1,124 | ||||||||||||||
4,949,000 | $ | 4,600,000 | $ | 929 | ||||||||||||||||
(1) Company sold a 45% JV interest in the property at an implied $126.5 million gross asset valuation. | ||||||||||||||||||||
(2) Company sold a 75% JV interest in the property at an implied $318.5 million gross asset valuation. | ||||||||||||||||||||
(3) Company sold a 50% JV interest in the property at an implied $240.0 million gross asset valuation. | ||||||||||||||||||||
(4) Company sold a 85% JV interest in the property at an implied $335.0 million gross asset valuation. | ||||||||||||||||||||
(5) Company sold a 15% JV interest in the property at an implied $274.0 million gross asset valuation. | ||||||||||||||||||||
(6) Company sold a 45% JV interest in the property at an implied $1.28 billion gross asset valuation. | ||||||||||||||||||||
(7) Company sold a 40% JV interest in the property at an implied $2.6 billion gross asset valuation, inclusive of the cost associated with lease stipulated improvements to the property. | ||||||||||||||||||||
Supplemental Information | 50 | Third Quarter 2017 |
| ||
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Suburban Unaudited (Dollars in Thousands) | | |
| ||
Occupancy (%) | Acquisition | ||||||||||||||||
Property | Type of Ownership | Submarket | Net Rentable SF | at acquisition | 9/30/2017 | Price ($'s) (1) | |||||||||||
2007 - 2016 Acquisitions | |||||||||||||||||
Jan-07 | 300 Main Street | Fee Interest | Stamford, Connecticut | 130,000 | 92.5 | N/A | $ | 15,000 | |||||||||
Jan-07 | 399 Knollwood Road | Fee Interest | White Plains, New York | 145,000 | 96.6 | N/A | 31,600 | ||||||||||
Jan-07 | Reckson - Connecticut Portfolio | Fee Interests / Leasehold Interest | Stamford, Connecticut | 1,369,800 | 88.9 | 84.6 | 490,750 | ||||||||||
Jan-07 | Reckson - Westchester Portfolio | Fee Interests / Leasehold Interest | Westchester | 2,346,100 | 90.6 | 84.6 | 570,190 | ||||||||||
Apr-07 | Jericho Plazas - 20.26% JV | Fee Interest | Jericho, New York | 640,000 | 98.4 | 69.8 | 210,000 | ||||||||||
Jun-07 | 1010 Washington Boulevard | Fee Interest | Stamford, Connecticut | 143,400 | 95.6 | 92.1 | 38,000 | ||||||||||
Jun-07 | 500 West Putnam Avenue | Fee Interest | Greenwich, Connecticut | 121,500 | 94.4 | N/A | 56,000 | ||||||||||
Jul-07 | 16 Court Street - 35% JV | Fee Interest | Brooklyn, New York | 317,600 | 80.6 | 96.1 | 107,500 | ||||||||||
Aug-07 | 150 Grand Street | Fee Interest | White Plains, New York | 85,000 | 52.9 | N/A | 6,700 | ||||||||||
Sep-07 | The Meadows - 25% JV | Fee Interest | Rutherford, New Jersey | 582,100 | 81.3 | N/A | 111,500 | ||||||||||
Apr-13 | 16 Court Street - additional JV interest | Fee Interest | Brooklyn, New York | 317,600 | 84.9 | 96.1 | 96,200 | ||||||||||
6,198,100 | $ | 1,733,440 | |||||||||||||||
| ||||||||||||||||||||
SUMMARY OF REAL ESTATE SALES ACTIVITY Suburban Unaudited (Dollars in Thousands) | ||||||||||||||||||||
| ||||||||||||||||||||
Property | Type of Ownership | Submarket | Net Rentable SF | Price ($'s) | Price ($'s/SF) | |||||||||||||||
2008 - 2015 Sales | ||||||||||||||||||||
Oct-08 | 100 & 120 White Plains Road | Fee Interest | Tarrytown, New York | 211,000 | $ | 48,000 | $ | 227 | ||||||||||||
Jan-09 | 55 Corporate Drive | Fee Interest | Bridgewater, New Jersey | 670,000 | 230,000 | 343 | ||||||||||||||
Aug-09 | 399 Knollwood Road | Fee Interest | White Plains, New York | 145,000 | 20,767 | 143 | ||||||||||||||
Jul-12 | One Court Square | Fee Interest | Long Island City, New York | 1,402,000 | 481,100 | 343 | ||||||||||||||
Sep-13 | 300 Main Street | Fee Interest | Stamford, Connecticut | 130,000 | 13,500 | 104 | ||||||||||||||
Aug-15 | The Meadows | Fee Interest | Rutherford, New Jersey | 582,100 | 121,100 | 208 | ||||||||||||||
Dec-15 | 140 Grand Street | Fee Interest | White Plains, New York | 130,100 | 22,400 | 172 | ||||||||||||||
Dec-15 | 150 Grand Street | Fee Interest | White Plains, New York | 85,000 | 9,600 | 113 | ||||||||||||||
3,355,200 | $ | 946,467 | $ | 282 | ||||||||||||||||
2016 Sales | ||||||||||||||||||||
Mar-16 | 7 Renaissance Square | Fee Interest | White Plains, New York | 65,641 | $ | 21,000 | $ | 320 | ||||||||||||
Jul-16 | 500 West Putnam Avenue | Fee Interest | Greenwich, Connecticut | 121,500 | 41,000 | 337 | ||||||||||||||
187,141 | $ | 62,000 | $ | 331 | ||||||||||||||||
2017 Sales | ||||||||||||||||||||
Apr-17 | 520 White Plains Road | Fee Interest | Tarrytown, New York | 180,000 | $ | 21,000 | $ | 117 | ||||||||||||
Jul-17 | 680 Washington Avenue | Fee Interest | Stamford, Connecticut | 133,000 | 42,011 | 316 | ||||||||||||||
Jul-17 | 750 Washington Avenue | Fee Interest | Stamford, Connecticut | 192,000 | 53,745 | 280 | ||||||||||||||
505,000 | $ | 116,756 | $ | 231 | ||||||||||||||||
(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties. | ||||||||||||||||||||
Supplemental Information | 51 | Third Quarter 2017 |
| ||
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Retail, Residential, Development / Redevelopment & Land Unaudited (Dollars in Thousands) | | |
| ||
Occupancy (%) | Acquisition | ||||||||||||||||
Property | Type of Ownership | Submarket | Net Rentable SF | at acquisition | 6/30/2017 | Price ($'s) (1) | |||||||||||
2005 - 2015 Acquisitions | |||||||||||||||||
Jul-05 | 1551-1555 Broadway - 10% JV | Fee Interest | Times Square | 25,600 | N/A | N/A | $ | 85,000 | |||||||||
Jul-05 | 21 West 34th Street - 50% JV | Fee Interest | Herald Square | 30,100 | N/A | N/A | 17,500 | ||||||||||
Sep-05 | 141 Fifth Avenue - 50% JV | Fee Interest | Flatiron | 21,500 | N/A | N/A | 13,250 | ||||||||||
Nov-05 | 1604 Broadway - 63% JV | Leasehold Interest | Times Square | 29,876 | 17.2 | N/A | 4,400 | ||||||||||
Dec-05 | 379 West Broadway - 45% JV | Leasehold Interest | Cast Iron/Soho | 62,006 | 100.0 | N/A | 19,750 | ||||||||||
Jan-06 | 25-29 West 34th Street - 50% JV | Fee Interest | Herald Square/Penn Station | 41,000 | 55.8 | N/A | 30,000 | ||||||||||
Sep-06 | 717 Fifth Avenue - 32.75% JV | Fee Interest | Midtown/Plaza District | 119,550 | 63.1 | 100.0 | 251,900 | ||||||||||
Aug-07 | 180 Broadway - 50% JV | Fee Interest | Lower Manhattan | 24,300 | 85.2 | N/A | 13,600 | ||||||||||
Apr-07 | Two Herald Square - 55% JV | Fee Interest | Herald Square | N/A | N/A | N/A | 225,000 | ||||||||||
Jul-07 | 885 Third Avenue - 55% JV | Fee Interest | Midtown / Plaza District | N/A | N/A | N/A | 317,000 | ||||||||||
Jan-08 | 125 Chubb Way | Fee Interest | Lyndhurst, New Jersey | 278,000 | — | 78.0 | 29,364 | ||||||||||
Feb-08 | 182 Broadway - 50% JV | Fee Interest | Lower Manhattan | 46,280 | 83.8 | N/A | 30,000 | ||||||||||
Nov-10 | Williamsburg Terrace | Fee Interest | Brooklyn, New York | 52,000 | 100.0 | 100.0 | 18,000 | ||||||||||
Dec-10 | 11 West 34th Street - 30% JV | Fee Interest | Herald Square/Penn Station | 17,150 | 100.0 | 100.0 | 10,800 | ||||||||||
Dec-10 | 7 Renaissance Square - 50% JV | Fee Interest | White Plains, New York | 65,641 | — | N/A | 4,000 | ||||||||||
Dec-10 | Two Herald Square - 45% (2) | Fee Interest | Herald Square | 354,400 | 100.0 | N/A | 247,500 | ||||||||||
Dec-10 | 885 Third Avenue - 45% (2) | Fee Interest | Midtown / Plaza District | 607,000 | 100.0 | N/A | 352,000 | ||||||||||
Dec-10 | 292 Madison Avenue | Fee Interest | Grand Central South | 203,800 | N/A | N/A | 78,300 | ||||||||||
Jan-11 | 3 Columbus Circle - 48.9% | Fee Interest | Columbus Circle | 741,500 | 20.1 | 91.3 | 500,000 | ||||||||||
Aug-11 | 1552-1560 Broadway - 50% | Fee Interest | Times Square | 35,897 | 59.7 | 67.5 | 136,550 | ||||||||||
Sep-11 | 747 Madison Avenue - 33.33% | Fee Interest | Plaza District | 10,000 | 100.0 | N/A | 66,250 | ||||||||||
Jan-12 | DFR Residential and Retail Portfolio - 80% | Fee Interests / Leasehold Interest | Plaza District, Upper East Side | 489,882 | 95.1 | 89.7 | 193,000 | ||||||||||
Jan-12 | 724 Fifth Avenue - 50% | Fee Interest | Plaza District | 65,010 | 92.9 | 84.7 | 223,000 | ||||||||||
Jul-12 | West Coast Office Portfolio - 27.63% | Fee Interest | 4,473,603 | 76.3 | N/A | 880,104 | |||||||||||
Aug-12 | 33 Beekman Street - 45.9% | Fee Interest | Downtown | 163,500 | — | N/A | 31,160 | ||||||||||
Sep-12 | 635 Sixth Avenue | Fee Interest | Midtown South | 104,000 | — | 100.0 | 83,000 | ||||||||||
Oct-12 | 1080 Amsterdam - 87.5% | Leasehold Interest | Upper West Side | 82,250 | 2.2 | 100.0 | — | ||||||||||
Dec-12 | 21 East 66th Street - 32.28% | Fee Interest | Plaza District | 16,736 | 100.0 | 100.0 | 75,000 | ||||||||||
Dec-12 | 985-987 Third Avenue | Fee Interest | Upper East Side | 13,678 | — | N/A | 18,000 | ||||||||||
Dec-12 | 131-137 Spring Street | Fee Interest | Soho | 68,342 | 100.0 | 89.6 | 122,300 | ||||||||||
Mar-13 | 248-252 Bedford Avenue - 90% | Fee Interest | Brooklyn, New York | 66,611 | — | N/A | 54,900 | ||||||||||
Nov-13 | 650 Fifth Avenue - 50% | Leasehold Interest | Plaza District | 32,324 | 63.6 | 100.0 | — | ||||||||||
Nov-13 | 315 West 33rd Street - The Olivia | Fee Interest | Penn Station | 492,987 | 96.6 | 94.6 | 386,775 | ||||||||||
Nov-13 | 562, 570 & 574 Fifth Avenue | Fee Interest | Plaza District | 66,962 | 74.6 | N/A | 146,222 | ||||||||||
Jul-14 | 719 Seventh Avenue - 75% | Fee Interest | Times Square | 6,000 | 100.0 | — | 41,149 | ||||||||||
Jul-14 | 115 Spring Street | Fee Interest | Soho | 5,218 | 100.0 | 100.0 | 52,000 | ||||||||||
Jul-14 | 752 Madison Avenue | Fee Interest | Plaza District | 21,124 | 100.0 | 100.0 | 282,415 | ||||||||||
Sep-14 | 121 Greene Street - 50% | Fee Interest | Soho | 7,131 | 100.0 | 100.0 | 27,400 | ||||||||||
Sep-14 | 635 Madison Avenue (2) | Fee Interest | Plaza District | 176,530 | 100.0 | 100.0 | 145,000 | ||||||||||
Oct-14 | 102 Greene Street | Fee Interest | Soho | 9,200 | 100.0 | N/A | 32,250 | ||||||||||
Oct-14 | 175-225 Third Street - 95% | Fee Interest | Brooklyn, New York | — | — | — | 72,500 | ||||||||||
Nov-14 | 55 West 46th Street - Tower 46 | Fee Interest | Midtown | 347,000 | — | 56.6 | 295,000 | ||||||||||
Feb-15 | Stonehenge Portfolio | Fee Interest | 2,589,184 | 96.5 | 92.6 | 40,000 | |||||||||||
Mar-15 | 1640 Flatbush Avenue | Fee Interest | Brooklyn, New York | 1,000 | 100.0 | 100.0 | 6,799 | ||||||||||
Jun-15 | Upper East Side Residential - 90% | Fee Interest | Upper East Side Residential | 27,000 | 96.4 | 42.9 | 50,074 | ||||||||||
Aug-15 | 187 Broadway & 5-7 Dey Street | Fee Interest | Lower Manhattan | 73,600 | 90.5 | — | 63,690 | ||||||||||
12,164,472 | $ | 5,771,902 | |||||||||||||||
2016 Acquisitions | |||||||||||||||||
Mar-16 | 183 Broadway | Fee Interest | Lower Manhattan | 9,100 | 58.3 | — | $ | 28,500 | |||||||||
Apr-16 | 605 West 42nd Street - Sky - 20% | Fee Interest | Midtown West | 927,358 | — | 75.5 | 759,046 | ||||||||||
936,458 | $ | 787,546 | |||||||||||||||
(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. | |||||||||||||||||
Supplemental Information | 52 | Third Quarter 2017 |
| ||
SUMMARY OF REAL ESTATE SALES ACTIVITY Retail, Residential, Development / Redevelopment and Land Unaudited (Dollars in Thousands) | | |
| ||
Sales Price / Gross | Sales | ||||||||||||||||||
Property | Type of Ownership | Submarket | Net Rentable SF | Asset Valuation ($'s) | Price ($'s/SF) | ||||||||||||||
2011 - 2015 Sales | |||||||||||||||||||
Sep-11 | 1551-1555 Broadway (1) | Fee Interest | Times Square | 25,600 | $ | 276,757 | $ | 10,811 | |||||||||||
Feb-12 | 141 Fifth Avenue (2) | Fee Interest | Flatiron | 13,000 | 46,000 | 3,538 | |||||||||||||
Feb-12 | 292 Madison Avenue | Fee Interest | Grand Central South | 203,800 | 85,000 | 417 | |||||||||||||
Apr-12 | 379 West Broadway | Leasehold Interest | Lower Manhattan | 62,006 | 48,500 | 782 | |||||||||||||
Jun-12 | 717 Fifth Avenue (3) | Fee Interest | Midtown/Plaza District | 119,550 | 617,584 | 5,166 | |||||||||||||
Sep-12 | 3 Columbus Circle (4) | Fee Interest | Columbus Circle | 214,372 | 143,600 | 670 | |||||||||||||
Feb-13 | 44 West 55th Street | Fee Interest | Plaza District | 8,557 | 6,250 | 730 | |||||||||||||
Jun-13 | West Coast Office Portfolio | Fee Interest | Los Angeles, California | 406,740 | 111,925 | 275 | |||||||||||||
Aug-13 | West Coast Office Portfolio | Fee Interest | Fountain Valley, California | 302,037 | 66,994 | 222 | |||||||||||||
Sep-13 | West Coast Office Portfolio | Fee Interest | San Diego, California | 110,511 | 45,400 | 411 | |||||||||||||
Dec-13 | 27-29 West 34th Street | Fee Interest | Herald Square/Penn Station | 15,600 | 70,052 | 4,491 | |||||||||||||
Jan-14 | 21-25 West 34th Street | Fee Interest | Herald Square/Penn Station | 30,100 | 114,948 | 3,819 | |||||||||||||
Mar-14 | West Coast Office Portfolio | Fee Interest | 3,654,315 | 756,000 | 207 | ||||||||||||||
May-14 | 747 Madison Avenue | Fee Interest | Plaza District | 10,000 | 160,000 | 16,000 | |||||||||||||
Jul-14 | 985-987 Third Avenue | Fee Interest | Upper East Side | 13,678 | 68,700 | 5,023 | |||||||||||||
Sep-14 | 180-182 Broadway | Fee Interest | Lower Manhattan | 156,086 | 222,500 | 1,425 | |||||||||||||
Nov-14 | 2 Herald Square | Fee Interest | Herald Square/Penn Station | 354,400 | 365,000 | 1,030 | |||||||||||||
Jan-15 | 180 Maiden Lane | Fee Interest | Financial East | 1,090,000 | 470,000 | 431 | |||||||||||||
Aug-15 | 131-137 Spring Street (5) | Fee Interest | Soho | 68,342 | 277,750 | 4,064 | |||||||||||||
Dec-15 | 570 & 574 Fifth Avenue | Fee Interest | Plaza District | 24,327 | 125,400 | 5,155 | |||||||||||||
6,883,021 | $ | 4,078,360 | $ | 593 | |||||||||||||||
2016 Sales | |||||||||||||||||||
Feb-16 | 248-252 Bedford Avenue - 90% | Fee Interest | Brooklyn, New York | 66,611 | $ | 55,000 | $ | 826 | |||||||||||
Feb-16 | 885 Third Avenue | Fee Interest | Midtown / Plaza District | 607,000 | 453,000 | 746 | |||||||||||||
May-16 | 33 Beekman Street | Fee Interest | Downtown | 163,500 | 196,000 | 1,199 | |||||||||||||
Oct-16 | 400 East 57th Street (6) | Fee Interest | Upper East Side | 290,482 | 170,000 | 585 | |||||||||||||
1,127,593 | $ | 874,000 | $ | 775 | |||||||||||||||
2017 Sales | |||||||||||||||||||
Apr-17 | 102 Greene Street (7) | Fee Interest | Soho | 9,200 | $ | 43,500 | $ | 4,728 | |||||||||||
Sep-17 | 102 Greene Street (8) | Fee Interest | Soho | 9,200 | 43,500 | 4,728 | |||||||||||||
18,400 | $ | 87,000 | $ | 4,728 | |||||||||||||||
(1) Company sold our remaining 10% JV interest in the property. | |||||||||||||||||||
(2) Inclusive of the fee position which was acquired simultaneously with the sale pursuant to an option. | |||||||||||||||||||
(3) Company sold 50% of its remaining interest after a promote. The Company retained a 10.92% interest in the property. | |||||||||||||||||||
(4) The joint venture sold a 29% condominium interest in the property. | |||||||||||||||||||
(5) Company sold a 80% JV interest in the property. | |||||||||||||||||||
(6) Company sold a 49% JV interest in the property. | |||||||||||||||||||
(7) Company sold a 90% JV interest in the property. | |||||||||||||||||||
(8) Company sold our remaining 10% JV interest in the property. | |||||||||||||||||||
Supplemental Information | 53 | Third Quarter 2017 |
| ||
EXECUTIVE AND SENIOR MANAGEMENT | | |
| ||
Stephen L. Green | Edward V. Piccinich |
Chairman of the Board | Executive Vice President, Property |
Management and Construction | |
Marc Holliday | |
Chief Executive Officer | Neil H. Kessner |
Executive Vice President, General | |
Andrew Mathias | Counsel - Real Property |
President | |
David M. Schonbraun | |
Matthew J. DiLiberto | Co-Chief Investment Officer |
Chief Financial Officer | |
Isaac Zion | |
Andrew S. Levine | Co-Chief Investment Officer |
Chief Legal Officer | |
Maggie Hui | |
Steven M. Durels | Chief Accounting Officer |
Executive Vice President, Director of | |
Leasing and Real Property | |
Supplemental Information | 54 | Third Quarter 2017 |
| ||
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) | | |
| ||
Funds Available for Distribution (FAD)
FAD is a non-GAAP financial measure that is calculated as FFO plus non-real estate depreciation, allowance for straight line credit loss, adjustment for straight line ground rent, non-cash deferred compensation, and 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 costs, and recurring building improvements.
FAD 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 (EBITDAre)
EBITDAre is a non-GAAP financial measure. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures.
The Company presents EBITDAre, because the Company believes that EBITDAre, 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. EBITDAre 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.
Net Operating Income (NOI) and Cash NOI
NOI is a non-GAAP financial measure that is calculated as operating income before transaction related costs, gains/losses on early extinguishment of debt, marketing general and administrative expenses and non-real estate revenue. Cash NOI is calculated by subtracting free rent (net of amortization), straight-line rent, FAS 141 rental income from NOI, while adding ground lease straight-line adjustment and the allowance for straight-line tenant credit loss.
The Company presents NOI and Cash NOI because the Company believes that these measures, when taken together with the corresponding GAAP financial measures and our reconciliations, provide investors with meaningful information regarding the operating performance of properties. When operating performance is compared across multiple periods, the investor is provided with information not immediately apparent from net income that is determined in accordance with GAAP. NOI and Cash NOI provide information on trends in the revenue generated and expenses incurred in operating our properties, unaffected by the cost of leverage, straight-line adjustments, depreciation, amortization, and other net income components. The Company uses these metrics internally as performance measures. 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
Debt to Market Capitalization is a non-GAAP measure that is calculated as the Company’s estimated market value 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 divided by consolidated debt.
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 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, such measure may not be comparable to those used by other REITs that do not compute such measure 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.
Supplemental Information | 55 | Third Quarter 2017 |
| ||
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) | | |
| ||
Coverage Ratios
The Company presents fixed charge and debt service 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 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).
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Funds From Operations (FFO) Reconciliation
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income attributable to SL Green common stockholders | $ | 38,869 | $ | 34,252 | $ | 58,442 | $ | 190,930 | |||||||
Add: | |||||||||||||||
Depreciation and amortization | 91,728 | 112,665 | 318,916 | 717,015 | |||||||||||
Joint venture depreciation and noncontrolling interest adjustments | 23,517 | 23,349 | 72,936 | 42,191 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 338 | 2,499 | (15,472 | ) | 14,416 | ||||||||||
Less: | |||||||||||||||
Gain (loss) on sale of real estate and discontinued operations, net | — | 397 | (3,256 | ) | 210,750 | ||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 1,030 | 225 | 16,166 | 43,588 | |||||||||||
Depreciable real estate reserve | — | — | (85,336 | ) | (10,387 | ) | |||||||||
Depreciation on non-rental real estate assets | 557 | 509 | 1,636 | 1,505 | |||||||||||
FFO attributable to SL Green common stockholders and noncontrolling interests | $ | 152,865 | $ | 171,634 | $ | 505,612 | $ | 719,096 | |||||||
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)
As of or for the three months ended | |||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
Net income | $ | 45,795 | $ | 16,015 | $ | 924 | $ | 53,970 | $ | 43,343 | |||||||||
Interest expense, net of interest income | 65,634 | 64,856 | 65,622 | 64,873 | 72,565 | ||||||||||||||
Amortization of deferred financing costs | 4,008 | 3,432 | 4,761 | 4,384 | 4,815 | ||||||||||||||
Income taxes | 77 | 2,201 | 559 | 1,707 | 815 | ||||||||||||||
Depreciation and amortization | 91,728 | 133,054 | 94,134 | 104,026 | 112,665 | ||||||||||||||
Gain on sale of marketable securities | — | — | (3,262 | ) | — | — | |||||||||||||
Loss (gain) on sale of real estate and discontinued operations, net | — | 3,823 | (567 | ) | (27,366 | ) | (397 | ) | |||||||||||
Equity in net (gain) loss on sale of interest in unconsolidated joint venture/real estate | (1,030 | ) | (13,089 | ) | (2,047 | ) | (421 | ) | 1,133 | ||||||||||
Depreciable real estate reserve | — | 29,064 | 56,272 | — | — | ||||||||||||||
Adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates | 58,096 | 56,612 | 54,545 | 60,693 | 46,345 | ||||||||||||||
EBITDAre | $ | 264,308 | $ | 295,968 | $ | 270,941 | $ | 261,866 | $ | 281,284 | |||||||||
Supplemental Information | 56 | Third Quarter 2017 |
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Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) | | |
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Operating income and Same-store NOI Reconciliation
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 45,795 | $ | 43,343 | $ | 62,734 | $ | 224,941 | |||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | (1,030 | ) | (225 | ) | (16,166 | ) | (43,588 | ) | |||||||
(Gain) loss on sale of real estate, net | — | (397 | ) | 3,256 | (210,750 | ) | |||||||||
Depreciable real estate reserves | — | — | 85,336 | 10,387 | |||||||||||
Loss on sale of marketable securities | — | — | (3,262 | ) | 83 | ||||||||||
Depreciation and amortization | 91,728 | 112,665 | 318,916 | 717,015 | |||||||||||
Interest expense, net of interest income | 65,634 | 72,565 | 196,112 | 256,326 | |||||||||||
Amortization of deferred financing costs | 4,008 | 4,815 | 12,201 | 20,180 | |||||||||||
Operating income | 206,135 | 232,766 | 659,127 | 974,594 | |||||||||||
Equity in net (income) loss from unconsolidated joint ventures | (4,078 | ) | 3,968 | (14,104 | ) | (11,969 | ) | ||||||||
Marketing, general and administrative expense | 23,963 | 25,458 | 72,362 | 73,974 | |||||||||||
Transaction related costs, net | 186 | 2,593 | 365 | 5,987 | |||||||||||
Investment income | (47,820 | ) | (75,396 | ) | (148,741 | ) | (174,347 | ) | |||||||
Non-building revenue | (2,704 | ) | (2,566 | ) | (19,259 | ) | (5,998 | ) | |||||||
Net operating income (NOI) | 175,682 | 186,823 | 549,750 | 862,241 | |||||||||||
Equity in net income (loss) from unconsolidated joint ventures | 4,078 | (3,968 | ) | 14,104 | 11,969 | ||||||||||
SLG share of unconsolidated JV depreciation and amortization | 28,819 | 23,515 | 91,320 | 53,915 | |||||||||||
SLG share of unconsolidated JV interest expense, net of interest income | 23,893 | 15,069 | 67,862 | 53,686 | |||||||||||
SLG share of unconsolidated JV amortization of deferred financing costs | 1,589 | 2,406 | 6,524 | 6,083 | |||||||||||
SLG share of unconsolidated JV loss on early extinguishment of debt | 3,819 | — | 3,819 | 972 | |||||||||||
SLG share of unconsolidated JV transaction related costs | — | 3,019 | 110 | 3,019 | |||||||||||
SLG share of unconsolidated JV investment income | (3,593 | ) | (4,601 | ) | (12,339 | ) | (11,700 | ) | |||||||
SLG share of unconsolidated JV non-building revenue | (906 | ) | (714 | ) | (2,984 | ) | (1,408 | ) | |||||||
NOI including SLG share of unconsolidated JVs | 233,381 | 221,549 | 718,166 | 978,777 | |||||||||||
NOI from other properties/affiliates | (28,017 | ) | (31,706 | ) | (95,531 | ) | (377,695 | ) | |||||||
Same-Store NOI | 205,364 | 189,843 | 622,635 | 601,082 | |||||||||||
Ground lease straight-line adjustment | 524 | 565 | 1,572 | 1,781 | |||||||||||
Straight-line and free rent | (9,855 | ) | (3,803 | ) | (30,308 | ) | (21,032 | ) | |||||||
Rental income - FAS 141 | (4,580 | ) | 2,704 | (13,832 | ) | (4,827 | ) | ||||||||
Joint Venture straight-line and free rent | (2,614 | ) | (3,063 | ) | (7,657 | ) | (11,957 | ) | |||||||
Joint Venture rental income - FAS 141 | (357 | ) | (429 | ) | (1,245 | ) | (1,312 | ) | |||||||
Same-store cash NOI | $ | 188,482 | $ | 185,817 | $ | 571,165 | $ | 563,735 | |||||||
Supplemental Information | 57 | Third Quarter 2017 |
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SELL-SIDE ANALYST COVERAGE | | |
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EQUITY COVERAGE | |||
Firm | Analyst | Phone | Email |
Bank of America - Merrill Lynch | James C. Feldman | (646) 855-5808 | james.feldman@baml.com |
Barclays Capital | Ross Smotrich | (212) 526-2306 | ross.smotrich@barcap.com |
BMO Capital Markets Corp. | John P. Kim | (212) 885-4115 | jp.kim@bmo.com |
BTIG | James Sullivan | (212) 738-6139 | jsullivan@btig.com |
Citigroup | Michael Bilerman | (212) 816-1383 | michael.bilerman@citigroup.com |
Deutsche Bank | Vin Chao | (212) 250-6799 | vincent.chao@db.com |
Goldman Sachs & Co. | Andrew Rosivach | (212) 902-2796 | andrew.rosivach@gs.com |
Green Street Advisors | Jed Reagan | (949) 640-8780 | jreagan@greenstreetadvisors.com |
Evercore ISI | 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 | Craig Mailman | (917) 368-2316 | cmailman@key.com |
Morgan Stanley | Vikram Malhotra | (212) 761-7064 | vikram.malhotra@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 |
SunTrust Robinson Humphrey | Michael Lewis | (404) 926-5000 | michael.lewis@suntrust.com |
UBS Securities LLC | Nicholas Yulico | (212) 713-3402 | nick.yulico@ubs.com |
Wells Fargo Securities, LLC | Blaine Heck | (443) 263-6529 | blaine.heck@wellsfargo.com |
FIXED INCOME COVERAGE | |||
Firm | Analyst | Phone | Email |
Citigroup | 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 |
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. | ||||
Supplemental Information | 58 | Third Quarter 2017 |