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):
July 19, 2018
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 July 18, 2018 announcing SL Green Realty Corp.’s, or the Company, results for the quarter ended June 30, 2018, 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 July 18, 2018, the Company issued a press release announcing its results for the quarter ended June 30, 2018.
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 consolidated debt divided by 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.
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: July 19, 2018 | |
Exhibit 99.1
CONTACT
Matt DiLiberto
Chief Financial Officer
(212) 594-2700
SL GREEN REALTY CORP. REPORTS SECOND QUARTER 2018 EPS OF $1.19 PER SHARE; AND FFO OF $1.69 PER SHARE
Financial and Operating Highlights
• | Net income attributable to common stockholders of $1.19 per share for the second quarter as compared to $0.08 per share for the same period in 2017. |
• | Funds from operations, or FFO, of $1.69 per share for the second quarter as compared to $1.78 per share for the same period in 2017. FFO for the second quarter of the prior year included $19.7 million, or $0.19 per share, of non-comparable items. |
• | Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased 7.8% for the first six months of 2018, or 6.9%, excluding lease termination income, as compared to the same period in the prior year. |
• | Signed 58 Manhattan office leases covering 565,914 square feet in the second quarter and 86 Manhattan office leases covering 941,727 square feet in the first six months of 2018. The mark-to-market on signed Manhattan office leases was 5.2% higher for the second quarter and 7.1% higher for the first six 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 95.9% as of June 30, 2018. |
• | Signed a 20-year lease for 105,539 square feet with McDermott Will & Emery LLP to relocate its New York operations to One Vanderbilt Avenue. |
• | Signed long term retail leases at 609 Fifth Avenue with sports brand PUMA and 719 Seventh Avenue, now known as 30 Times Square, with beauty conglomerate Coty, Inc. for multilevel flagship stores. |
• | Signed 13 Suburban office leases covering 45,224 square feet in the second quarter and 32 Suburban office leases covering 202,709 square feet in the first six months of 2018. The mark-to-market on signed Suburban office leases was 4.9% lower for the second quarter and 2.6% lower for the first six months over the previously fully escalated rents on the same spaces. |
Investing Highlights
• | The Company announced an increase to the size of its share repurchase program by an additional $500 million, bringing the program to a total of $2.0 billion. To date, the Company has acquired 15.6 million shares of its common stock under the program at an average price of $99.58 per share. |
• | Took ownership of the leasehold interest at 2 Herald Square following the foreclosure of the asset. The Company also reached an agreement to joint venture the asset. |
• | Closed on a multi-faceted retail transaction, which includes the sale of substantially all of the Company's interest in 724 Fifth Avenue to its joint venture partner, redemption of its investment in 720 Fifth Avenue, and partial repayment of another partnership loan. The transactions generated net proceeds of $85.6 million. |
• | Together with our joint venture partner, closed on the sale of the leasehold office condominium at 1745 Broadway for a sale price of $633 million, or $939 per square foot. The transaction generated net proceeds of $126.9 million and the Company recognized a gain on sale of $52.0 million. |
• | Closed on the sale of the fee interest at 635 Madison Avenue for a sale price of $153.0 million. The sale generated net proceeds of $141.7 million. |
• | Closed on the sale of Reckson Executive Park in Rye Brook, New York, 115-117 Stevens Avenue, in Valhalla, New York and our 11.7% interest in Jericho Plaza for asset valuations totaling $184.4 million. The sales generated net proceeds of $68.3 million. |
Summary
New York, NY, July 18, 2018 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended June 30, 2018 of $103.6 million, or $1.19 per share, as compared to net income attributable to common stockholders of $8.2 million, or $0.08 per share, for the same quarter in 2017. Net income attributable to common stockholders for the three months ended June 30, 2018 includes $57.2 million, or $0.62 per share, of net gains recognized from the sale of real estate as compared to $9.3 million, or $0.09 per share, for the same period in 2017.
The Company also reported net income attributable to common stockholders for the six months ended June 30, 2018 of $205.3 million, or $2.31 per share, as compared to net income attributable to common stockholders of $19.6 million, or $0.19 per share, for the same period in 2017. Net income attributable to common stockholders for the six months ended June 30, 2018 includes $74.3 million, or $0.79 per share, of net gains recognized from the sale of real estate as compared to $11.9 million, or $0.11 per share, for the same period in 2017.
The Company reported FFO for the quarter ended June 30, 2018 of $155.6 million, or $1.69 per share, as compared to FFO for the same period in 2017 of $186.8 million, or $1.78 per share. FFO for the second quarter of 2017 included $9.4 million, or $0.09 per share, of previously unrecognized income on the Company’s preferred equity investment in 885 Third Avenue and $10.3 million, or $0.10 per share, of net fees related to the closing of the One Vanderbilt joint venture.
The Company also reported FFO for the six months ended June 30, 2018 of $313.3 million, or $3.34 per share, as compared to FFO for the same period in 2017 of $352.7 million, or $3.36 per share.
All per share amounts in this press release are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended June 30, 2018, the Company reported consolidated revenues and operating income of $301.1 million and $172.6 million, respectively, compared to $398.2 million and $237.2 million, respectively, for the same period in 2017.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 8.0% for the quarter ended June 30, 2018, or 8.1%, excluding lease termination income. For the quarter, consolidated property same-store cash NOI increased by 4.0% to $128.0 million, or 4.1% to $127.4 million, excluding lease termination income, while unconsolidated joint venture property same-store cash NOI increased by 17.8% to $58.7 million. No lease termination income was recognized in unconsolidated joint venture property same-store cash NOI during the quarter.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 7.8% for the six months ended June 30, 2018, or 6.9%, excluding lease termination income, as compared to the same period in 2017. For the six months ended June 30, 2018, consolidated property same-store cash NOI increased by 4.3% to $255.2 million, or 3.0% to $251.0 million, excluding lease termination income, while unconsolidated joint venture property same-store cash NOI increased by 16.4% to $114.8 million. No lease termination income was recognized in unconsolidated joint venture property same-store cash NOI during the six months ended June 30, 2018.
In the second quarter, the Company signed 58 office leases in its Manhattan portfolio totaling 565,914 square feet. Forty-two leases comprising 322,937 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 $66.90 per rentable square foot, representing a 5.2% increase over the previously fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the second quarter was 8.4 years and average tenant concessions were 3.2 months of free rent with a tenant improvement allowance of $64.63 per rentable square foot.
During the first six months of 2018, the Company signed 86 office leases in its Manhattan portfolio totaling 941,727 square feet. Sixty-one leases comprising 480,112 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 $73.11 per rentable square foot, representing a 7.1% 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 six months of 2018 was 8.9 years and average tenant concessions were 4.8 months of free rent with a tenant improvement allowance of $70.19 per rentable square foot.
Occupancy in the Company's Manhattan same-store portfolio was 95.9% as of June 30, 2018, inclusive of 557,637 square feet of leases signed but not yet commenced, as compared to 95.5% at March 31, 2018 and 94.7% at June 30, 2017.
In the second quarter, the Company signed 13 office leases in its Suburban portfolio totaling 45,224 square feet. Ten leases comprising 35,832 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 $38.13 per rentable square foot, representing a 4.9% decrease over the previously
fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the second quarter was 6.0 years and average tenant concessions were 5.5 months of free rent with a tenant improvement allowance of $10.95 per rentable square foot.
During the first six months of 2018, the Company signed 32 office leases in its Suburban portfolio totaling 202,709 square feet. Twenty-one leases comprising 61,376 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 $36.05 per rentable square foot, representing a 2.6% decrease over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the first six months of 2018 was 8.0 years and average tenant concessions were 8.6 months of free rent with a tenant improvement allowance of $24.94 per rentable square foot.
Occupancy in the Company's Suburban same-store portfolio was 87.2% as of June 30, 2018, inclusive of 5,732 square feet of leases signed but not yet commenced, as compared to 87.6% at March 31, 2018 and 86.2% as of June 30, 2017.
Significant leases that were signed in the second quarter included:
• | New lease with McDermott Will & Emery LLP for 105,539 square feet at One Vanderbilt Avenue, for 20.0 years; |
• | New lease with Syska Hennessy Group, Inc. for 55,016 square feet at 1185 Avenue of the Americas, for 10.3 years; |
• | Renewal with Canon Solutions America, Inc. for 33,766 square feet at 125 Park Avenue, for 10.6 years; |
• | New lease with Puma North America, Inc. for 24,000 square feet at 609 Fifth Avenue, for 16.0 years; |
• | New lease with Milburn Ridgefield Corporation for 22,523 square feet at 55 West 46th Street, known as Tower 46, for 10.5 years; |
• | New lease with TravelClick, Inc. for 22,518 square feet at 55 West 46th Street, known as Tower 46, for 10.3 years; |
• | New lease with United Refining, Inc. for 20,010 square feet at 800 Third Avenue, for 10.3 years; |
• | New lease with Coty, Inc. for 10,040 square feet at 719 Seventh Avenue, known as 30 Times Square, for 10.4 years. |
Marketing, general and administrative, or MG&A, expense for the three months ended June 30, 2018 was $22.5 million, or 5.1% of total combined revenues and 47 basis points of total assets, including our share of assets from unconsolidated joint ventures.
Investment Activity
During the quarter, the Company announced that its Board of Directors had authorized a $500 million increase to the size of its share repurchase program, bringing the program total to $2.0 billion. To date, the Company has acquired 15.6 million shares of its common stock
under the program at an average price of $99.58 per share, allowing the Company to save approximately $50.8 million of common dividends on an annualized basis.
In July, the Company closed on the sale of substantially all of its interest in 724 Fifth Avenue to its joint venture partner. In addition, the Company was redeemed on its investment in 720 Fifth Avenue, and partially repaid on another partnership loan. The transactions generated net proceeds of $85.6 million.
In July, the Company closed on the previously announced sale of Reckson Executive Park, which consists of six Class-A office buildings totaling 540,000 square-feet located at 1-6 International Drive in Rye Brook, New York, for a sale price of $55.0 million. The transaction generated net proceeds of $53.2 million.
In June, the Company closed on the previously announced sale of 635 Madison Avenue for a sale price of $153.0 million. The transaction generated net proceeds of $141.7 million.
In June, the Company closed on the previously announced sale of its 11.7% interest in Jericho Plaza, two office buildings totaling 640,000 square-feet located in Jericho, New York, for a gross asset valuation of $117.4 million. The transaction generated net proceeds of $4.1 million.
In May, the Company took ownership of the leasehold interest at 2 Herald Square following the foreclosure of the asset. The Company also reached an agreement to joint venture the asset with an Israeli-based institutional investor.
In May, the Company, along with our joint venture partner, Ivanhoe Cambridge, closed on the sale of the leasehold office condominium at 1745 Broadway, at a sale price of $633 million, or $939 per square foot. The transaction generated net proceeds of $126.9 million and the Company recognized a gain on sale of $52.0 million.
In May, the Company closed on the previously announced sale of 115-117 Stevens Avenue, which consists of two office buildings totaling 178,000 square-feet located in Valhalla, New York, for a sale price of $12.0 million. The transaction generated net proceeds of $11.0 million.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity investment portfolio increased to $2.36 billion at June 30, 2018, including $2.17 billion of investments at a weighted average current yield of 8.8% that are classified in the debt and preferred equity line item on the balance sheet, and investments aggregating $0.19 billion at a weighted average current yield of 10.6% that are included in other balance sheet line items for accounting purposes.
During the second quarter, the Company originated or acquired new debt and preferred equity investments totaling $541.0 million, all of which was retained and $477.9 million of which was funded. New mortgage investments totaled $280.0 million, all of which was retained and $257.7 million of which was funded, at a weighted average current yield of 7.1% and a weighted average levered yield of 9.1%, after taking into consideration $120.6 million drawn on the Company’s mortgage financing facility. New subordinate debt and preferred equity investments totaled $261.0 million, all of which was retained and $220.1 million of which was funded, at a weighted average yield of 9.9%.
Dividends
In the second quarter of 2018, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:
• | $0.8125 per share of common stock, which was paid on July 16, 2018 to shareholders of record on the close of business on June 29, 2018; and |
• | $0.40625 per share on the Company's 6.50% Series I Cumulative Redeemable Preferred Stock for the period April 15, 2018 through and including July 14, 2018, which was paid on July 16, 2018 to shareholders of record on the close of business on June 29, 2018, and reflects the regular quarterly dividend, which is the equivalent of an annualized dividend of $1.625 per share. |
Conference Call and Audio Webcast
The Company's executive management team, led by Marc Holliday, Chief Executive Officer, will host a conference call and audio webcast on Thursday, July 19, 2018 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 8887486.
A replay of the call will be available 7 days after the call by dialing (855) 859-2056 using passcode 8887486. 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 June 30, 2018, SL Green held interests in 116 Manhattan buildings totaling 49.3 million square feet. This included ownership interests in 28.3 million square feet of Manhattan buildings and debt and preferred equity investments secured by 21.1 million square feet of buildings. In addition, SL Green held ownership interests in 21 suburban buildings totaling 2.9 million square feet in Brooklyn, Westchester County, and Connecticut.
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 Statements
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. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, 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 | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenue, net | $ | 211,369 | $ | 279,407 | $ | 426,738 | $ | 560,736 | |||||||
Escalation and reimbursement | 27,052 | 42,620 | 53,451 | 86,812 | |||||||||||
Investment income | 49,273 | 60,622 | 94,563 | 100,921 | |||||||||||
Other income | 13,422 | 15,501 | 28,059 | 27,062 | |||||||||||
Total revenues | 301,116 | 398,150 | 602,811 | 775,531 | |||||||||||
Expenses: | |||||||||||||||
Operating expenses, including related party expenses $4,665 and $8,499 in 2018 and $5,262 and $9,436 in 2017. | 56,237 | 70,852 | 116,019 | 145,358 | |||||||||||
Real estate taxes | 45,322 | 60,945 | 90,983 | 122,013 | |||||||||||
Ground rent | 8,846 | 8,308 | 17,154 | 16,616 | |||||||||||
Interest expense, net of interest income | 53,611 | 64,856 | 101,527 | 130,478 | |||||||||||
Amortization of deferred financing costs | 3,546 | 3,432 | 7,083 | 8,193 | |||||||||||
Depreciation and amortization | 67,914 | 133,054 | 137,302 | 227,188 | |||||||||||
Transaction related costs | 348 | 46 | 510 | 179 | |||||||||||
Marketing, general and administrative | 22,479 | 24,256 | 46,007 | 48,399 | |||||||||||
Total expenses | 258,303 | 365,749 | 516,585 | 698,424 | |||||||||||
Net income before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, purchase price and other fair value adjustments, (loss) gain on sale of real estate net, depreciable real estate reserves, and gain on sale of marketable securities | 42,813 | 32,401 | 86,226 | 77,107 | |||||||||||
Equity in net income from unconsolidated joint ventures | 4,702 | 3,412 | 8,738 | 10,026 | |||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 72,025 | 13,089 | 65,585 | 15,136 | |||||||||||
Purchase price and other fair value adjustment | 11,149 | — | 60,442 | — | |||||||||||
(Loss) gain on sale of real estate, net | (14,790 | ) | (3,823 | ) | 8,731 | (3,256 | ) | ||||||||
Depreciable real estate reserves | — | (29,064 | ) | — | (85,336 | ) | |||||||||
Gain on sale of marketable securities | — | — | — | 3,262 | |||||||||||
Net income | 115,899 | 16,015 | 229,722 | 16,939 | |||||||||||
Net income attributable to noncontrolling interests in the Operating Partnership | (5,586 | ) | (419 | ) | (10,858 | ) | (895 | ) | |||||||
Net (income) loss attributable to noncontrolling interests in other partnerships | (173 | ) | (786 | ) | (371 | ) | 16,705 | ||||||||
Preferred unit distributions | (2,847 | ) | (2,851 | ) | (5,696 | ) | (5,701 | ) | |||||||
Net income attributable to SL Green | 107,293 | 11,959 | 212,797 | 27,048 | |||||||||||
Perpetual preferred stock dividends | (3,737 | ) | (3,737 | ) | (7,475 | ) | (7,475 | ) | |||||||
Net income attributable to SL Green common stockholders | $ | 103,556 | $ | 8,222 | $ | 205,322 | $ | 19,573 | |||||||
Earnings Per Share (EPS) | |||||||||||||||
Net income per share (Basic) | $ | 1.19 | $ | 0.08 | $ | 2.31 | $ | 0.20 | |||||||
Net income per share (Diluted) | $ | 1.19 | $ | 0.08 | $ | 2.31 | $ | 0.19 | |||||||
Funds From Operations (FFO) | |||||||||||||||
FFO per share (Basic) | $ | 1.69 | $ | 1.79 | $ | 3.35 | $ | 3.36 | |||||||
FFO per share (Diluted) | $ | 1.69 | $ | 1.78 | $ | 3.34 | $ | 3.36 | |||||||
Basic ownership interest | |||||||||||||||
Weighted average REIT common shares for net income per share | 87,176 | 99,900 | 88,772 | 100,268 | |||||||||||
Weighted average partnership units held by noncontrolling interests | 4,706 | 4,562 | 4,695 | 4,584 | |||||||||||
Basic weighted average shares and units outstanding | 91,882 | 104,462 | 93,467 | 104,852 | |||||||||||
Diluted ownership interest | |||||||||||||||
Weighted average REIT common share and common share equivalents | 87,377 | 100,170 | 88,972 | 100,556 | |||||||||||
Weighted average partnership units held by noncontrolling interests | 4,706 | 4,562 | 4,695 | 4,584 | |||||||||||
Diluted weighted average shares and units outstanding | 92,083 | 104,732 | 93,667 | 105,140 | |||||||||||
SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, | December 31, | ||||||
2018 | 2017 | ||||||
Assets | (Unaudited) | ||||||
Commercial real estate properties, at cost: | |||||||
Land and land interests | $ | 1,893,047 | $ | 2,357,051 | |||
Building and improvements | 5,225,431 | 6,351,012 | |||||
Building leasehold and improvements | 1,423,994 | 1,450,614 | |||||
Properties under capital lease | 47,445 | 47,445 | |||||
8,589,917 | 10,206,122 | ||||||
Less accumulated depreciation | (1,994,696 | ) | (2,300,116 | ) | |||
6,595,221 | 7,906,006 | ||||||
Assets held for sale | 593,995 | 338,354 | |||||
Cash and cash equivalents | 287,240 | 127,888 | |||||
Restricted cash | 92,740 | 122,138 | |||||
Investment in marketable securities | 28,570 | 28,579 | |||||
Tenant and other receivables, net of allowance of $16,558 and $18,637 in 2018 and 2017, respectively | 47,482 | 57,644 | |||||
Related party receivables | 27,854 | 23,039 | |||||
Deferred rents receivable, net of allowance of $15,776 and $17,207 in 2018 and 2017, respectively | 322,656 | 365,337 | |||||
Debt and preferred equity investments, net of discounts and deferred origination fees of $23,216 and $25,507 in 2018 and 2017, respectively | 2,168,515 | 2,114,041 | |||||
Investments in unconsolidated joint ventures | 3,059,985 | 2,362,989 | |||||
Deferred costs, net | 198,941 | 226,201 | |||||
Other assets | 290,729 | 310,688 | |||||
Total assets | $ | 13,713,928 | $ | 13,982,904 | |||
Liabilities | |||||||
Mortgages and other loans payable | $ | 2,538,696 | $ | 2,865,991 | |||
Revolving credit facility | 360,000 | 40,000 | |||||
Unsecured term loan | 1,500,000 | 1,500,000 | |||||
Unsecured notes | 1,404,203 | 1,404,605 | |||||
Deferred financing costs, net | (45,488 | ) | (56,690 | ) | |||
Total debt, net of deferred financing costs | 5,757,411 | 5,753,906 | |||||
Accrued interest payable | 26,104 | 38,142 | |||||
Accounts payable and accrued expenses | 140,739 | 137,142 | |||||
Deferred revenue | 95,756 | 208,119 | |||||
Capitalized lease obligations | 43,221 | 42,843 | |||||
Deferred land leases payable | 3,567 | 3,239 | |||||
Dividend and distributions payable | 79,518 | 85,138 | |||||
Security deposits | 63,872 | 67,927 | |||||
Liabilities related to assets held for sale | 265,538 | 4,074 | |||||
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | |||||
Other liabilities | 108,151 | 189,231 | |||||
Total liabilities | 6,683,877 | 6,629,761 | |||||
Commitments and contingencies | — | — | |||||
Noncontrolling interest in the Operating Partnership | 486,610 | 461,954 | |||||
Preferred units | 301,385 | 301,735 | |||||
Equity | |||||||
Stockholders’ equity: | |||||||
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2018 and December 31, 2017 | 221,932 | 221,932 | |||||
Common stock, $0.01 par value 160,000 shares authorized, 86,780 and 93,858 issued and outstanding at June 30, 2018 and December 31, 2017, respectively (including 1,055 held in Treasury at June 30, 2018 and December 31, 2017) | 868 | 939 | |||||
Additional paid-in capital | 4,601,608 | 4,968,338 | |||||
Treasury stock at cost | (124,049 | ) | (124,049 | ) | |||
Accumulated other comprehensive income | 32,622 | 18,604 | |||||
Retained earnings | 1,457,835 | 1,139,329 | |||||
Total SL Green Realty Corp. stockholders’ equity | 6,190,816 | 6,225,093 | |||||
Noncontrolling interests in other partnerships | 51,240 | 364,361 | |||||
Total equity | 6,242,056 | 6,589,454 | |||||
Total liabilities and equity | $ | 13,713,928 | $ | 13,982,904 | |||
SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited and in thousands, except per share data)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Funds From Operations (FFO) Reconciliation: | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net income attributable to SL Green common stockholders | $ | 103,556 | $ | 8,222 | $ | 205,322 | $ | 19,573 | |||||||
Add: | |||||||||||||||
Depreciation and amortization | 67,914 | 133,054 | 137,302 | 227,188 | |||||||||||
Joint venture depreciation and noncontrolling interest adjustments | 47,308 | 25,086 | 95,314 | 49,419 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 5,759 | 1,205 | 11,229 | (15,810 | ) | ||||||||||
Less: | |||||||||||||||
(Loss) gain on sale of real estate, net | (14,790 | ) | (3,823 | ) | 8,731 | (3,256 | ) | ||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 72,025 | 13,089 | 65,585 | 15,136 | |||||||||||
Purchase price and other fair value adjustments | 11,149 | — | 60,442 | — | |||||||||||
Depreciable real estate reserve | — | (29,064 | ) | — | (85,336 | ) | |||||||||
Depreciation on non-rental real estate assets | 584 | 564 | 1,150 | 1,080 | |||||||||||
FFO attributable to SL Green common stockholders | $ | 155,569 | $ | 186,801 | $ | 313,259 | $ | 352,746 | |||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Operating income and Same-store NOI Reconciliation: | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net income | $ | 115,899 | $ | 16,015 | $ | 229,722 | $ | 16,939 | |||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | (72,025 | ) | (13,089 | ) | (65,585 | ) | (15,136 | ) | |||||||
Purchase price and other fair value adjustments | (11,149 | ) | — | (60,442 | ) | — | |||||||||
Loss (gain) on sale of real estate, net | 14,790 | 3,823 | (8,731 | ) | 3,256 | ||||||||||
Depreciable real estate reserves | — | 29,064 | — | 85,336 | |||||||||||
Gain on sale of marketable securities | — | — | — | (3,262 | ) | ||||||||||
Depreciation and amortization | 67,914 | 133,054 | 137,302 | 227,188 | |||||||||||
Interest expense, net of interest income | 53,611 | 64,856 | 101,527 | 130,478 | |||||||||||
Amortization of deferred financing costs | 3,546 | 3,432 | 7,083 | 8,193 | |||||||||||
Operating income | 172,586 | 237,155 | 340,876 | 452,992 | |||||||||||
Equity in net income from unconsolidated joint ventures | (4,702 | ) | (3,412 | ) | (8,738 | ) | (10,026 | ) | |||||||
Marketing, general and administrative expense | 22,479 | 24,256 | 46,007 | 48,399 | |||||||||||
Transaction related costs, net | 348 | 46 | 510 | 179 | |||||||||||
Investment income | (49,273 | ) | (60,622 | ) | (94,563 | ) | (100,921 | ) | |||||||
Non-building revenue | (9,397 | ) | (6,571 | ) | (14,176 | ) | (4,937 | ) | |||||||
Net operating income (NOI) | 132,041 | 190,852 | 269,916 | 385,686 | |||||||||||
Equity in net income from unconsolidated joint ventures | 4,702 | 3,412 | 8,738 | 10,026 | |||||||||||
SLG share of unconsolidated JV depreciation and amortization | 47,565 | 31,286 | 95,184 | 62,501 | |||||||||||
SLG share of unconsolidated JV interest expense, net of interest income | 36,670 | 22,876 | 72,450 | 43,969 | |||||||||||
SLG share of unconsolidated JV amortization of deferred financing costs | 1,752 | 2,314 | 3,425 | 4,935 | |||||||||||
SLG share of unconsolidated JV loss on early extinguishment of debt | — | — | — | — | |||||||||||
SLG share of unconsolidated JV transaction related costs | — | 56 | — | 110 | |||||||||||
SLG share of unconsolidated JV investment income | (1,708 | ) | (3,916 | ) | (4,794 | ) | (8,746 | ) | |||||||
SLG share of unconsolidated JV non-building revenue | (1,147 | ) | (950 | ) | (2,148 | ) | (7,179 | ) | |||||||
NOI including SLG share of unconsolidated JVs | 219,875 | 245,930 | 442,771 | 491,302 | |||||||||||
NOI from other properties/affiliates | (26,009 | ) | (57,631 | ) | (57,138 | ) | (114,927 | ) | |||||||
Same-Store NOI | 193,866 | 188,299 | 385,633 | 376,375 | |||||||||||
Ground lease straight-line adjustment | 524 | 524 | 1,048 | 1,048 | |||||||||||
Joint Venture ground lease straight-line adjustment | 258 | 277 | 640 | 562 | |||||||||||
Straight-line and free rent | (1,474 | ) | (6,625 | ) | (3,563 | ) | (14,673 | ) | |||||||
Rental income - FAS 141 | (1,238 | ) | (1,121 | ) | (2,921 | ) | (2,315 | ) | |||||||
Joint Venture straight-line and free rent | (4,052 | ) | (5,163 | ) | (8,411 | ) | (10,672 | ) | |||||||
Joint Venture rental income - FAS 141 | (1,261 | ) | (3,320 | ) | (2,443 | ) | (7,013 | ) | |||||||
Same-store cash NOI | $ | 186,623 | $ | 172,871 | $ | 369,983 | $ | 343,312 | |||||||
SL GREEN REALTY CORP.
NON-GAAP FINANCIAL MEASURES - DISCLOSURES
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 consolidated debt divided by 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.
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).
SLG EARN
 | ||
 | ||
 | ||
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 June 30, 2018, the Company held interests in 116 Manhattan buildings totaling 49.3 million square feet. This included ownership interests in 28.3 million square feet of Manhattan buildings and debt and preferred equity investments secured by 21.1 million square feet of buildings. In addition, the Company held ownership interests in 21 suburban buildings totaling 2.9 million square feet in Brooklyn, Westchester County, and Connecticut.
• | SL Green’s common stock is listed on the New York Stock Exchange, and trades under the symbol SLG. |
• | SL Green maintains a website 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 website. |
• | 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 the referenced 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 Statements
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 supplement that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, 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 June 30, 2018 that will be released on Form 10-Q to be filed on or before August 9, 2018.
Supplemental Information | 2 | Second Quarter 2018 |
| ||
TABLE OF CONTENTS | | |
| ||
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 | Second Quarter 2018 |
| ||
SUPPLEMENTAL DEFINITIONS | | |
| ||
Annualized cash rent - Monthly base rent and escalations per the lease, as of a certain date, multiplied by 12.
Capitalized Interest - The total of i) interest cost for project specific debt on properties that are under development or redevelopment plus ii) an imputed interest cost for properties that are under development or redevelopment, which is calculated based on the Company’s equity investment in those properties multiplied by the Company’s weighted average corporate borrowing cost. Capitalized Interest is a component of the book basis in a development or redevelopment property.
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 consolidated debt divided by 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.
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.
First generation TIs and LCs - Tenant improvements, leasing commissions, and other leasing costs that were taken into consideration when underwriting the acquisition of a building.
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.
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.
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.
Junior Mortgage Participations - Subordinate interests in first mortgages.
Mezzanine Debt Loans - Loans secured by ownership interests in real estate.
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.
Preferred Equity Investments - Equity investments that are senior to common equity and are entitled to preferential returns.
Recurring capital expenditures - 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 standards.”
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 those properties being stabilized for both the current and prior year. Changes to Same-Store properties in 2018 were as follows:
Added to Same-Store in 2018: | Removed from Same-Store in 2018: |
11 Madison Avenue | 600 Lexington Avenue (sold) |
10 East 53rd Street | 609 Fifth Avenue (in redevelopment) |
1552-1560 Broadway | 635 Madison (sold) |
605 West 42nd Street | 1745 Broadway (sold) |
115 Spring Street | 115-117 Stevens Avenue (sold) |
400 East 57th Street | |
Second generation TIs and LCs - Tenant improvements, leasing commissions, and other leasing costs incurred during the leasing of second generation space. Costs incurred prior to leasing available square feet are not included until such space is leased.
Total square feet owned - The total square footage of properties either owned directly by SLG or in which SLG has a joint venture interest.
Supplemental Information | 4 | Second Quarter 2018 |
| ||
SECOND QUARTER 2018 HIGHLIGHTS Unaudited | | |
| ||
New York, NY, July 18, 2018 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended June 30, 2018 of $103.6 million, or $1.19 per share, as compared to net income attributable to common stockholders of $8.2 million, or $0.08 per share, for the same quarter in 2017. Net income attributable to common stockholders for the three months ended June 30, 2018 includes $57.2 million, or $0.62 per share, of net gains recognized from the sale of real estate as compared to $9.3 million, or $0.09 per share, for the same period in 2017.
The Company also reported net income attributable to common stockholders for the six months ended June 30, 2018 of $205.3 million, or $2.31 per share, as compared to net income attributable to common stockholders of $19.6 million, or $0.19 per share, for the same period in 2017. Net income attributable to common stockholders for the six months ended June 30, 2018 includes $74.3 million, or $0.79 per share, of net gains recognized from the sale of real estate as compared to $11.9 million, or $0.11 per share, for the same period in 2017.
The Company reported FFO for the quarter ended June 30, 2018 of $155.6 million, or $1.69 per share, as compared to FFO for the same period in 2017 of $186.8 million, or $1.78 per share. FFO for the second quarter of 2017 included $9.4 million, or $0.09 per share, of previously unrecognized income on the Company’s preferred equity investment in 885 Third Avenue and $10.3 million, or $0.10 per share, of net fees related to the closing of the One Vanderbilt joint venture.
The Company also reported FFO for the six months ended June 30, 2018 of $313.3 million, or $3.34 per share, as compared to FFO for the same period in 2017 of $352.7 million, or $3.36 per share.
All per share amounts in this press release are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended June 30, 2018, the Company reported consolidated revenues and operating income of $301.1 million and $172.6 million, respectively, compared to $398.2 million and $237.2 million, respectively, for the same period in 2017.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 8.0% for the quarter ended June 30, 2018, or 8.1%, excluding lease termination income. For the quarter, consolidated property same-store cash NOI increased by 4.0% to $128.0 million, or 4.1% to $127.4 million, excluding lease termination income, while unconsolidated joint venture property same-store cash NOI increased by 17.8% to $58.7 million. No lease termination income was recognized in unconsolidated joint venture property same-store cash NOI during the quarter.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 7.8% for the six months ended June 30, 2018, or 6.9%, excluding lease termination income, as compared to the same period in 2017. For the six months ended June 30, 2018, consolidated property same-store cash NOI increased by 4.3% to $255.2 million, or 3.0% to $251.0 million, excluding lease termination income, while unconsolidated joint venture property same-store cash NOI increased by 16.4% to $114.8 million. No lease termination income was recognized in unconsolidated joint venture property same-store cash NOI during the six months ended June 30, 2018.
In the second quarter, the Company signed 58 office leases in its Manhattan portfolio totaling 565,914 square feet. Forty-two leases comprising 322,937 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 $66.90 per rentable square foot, representing a 5.2% increase over the previously fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the second quarter was 8.4 years and average tenant concessions were 3.2 months of free rent with a tenant improvement allowance of $64.63 per rentable square foot.
During the first six months of 2018, the Company signed 86 office leases in its Manhattan portfolio totaling 941,727 square feet. Sixty-one leases comprising 480,112 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 $73.11 per rentable square foot, representing a 7.1% 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 six months of 2018 was 8.9 years and average tenant concessions were 4.8 months of free rent with a tenant improvement allowance of $70.19 per rentable square foot.
Occupancy in the Company's Manhattan same-store portfolio was 95.9% as of June 30, 2018, inclusive of 557,637 square feet of leases signed but not yet commenced, as compared to 95.5% at March 31, 2018 and 94.7% at June 30, 2017.
In the second quarter, the Company signed 13 office leases in its Suburban portfolio totaling 45,224 square feet. Ten leases comprising 35,832 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 $38.13 per rentable square foot, representing a 4.9% decrease over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the second quarter was 6.0 years and average tenant concessions were 5.5 months of free rent with a tenant improvement allowance of $10.95 per rentable square foot.
During the first six months of 2018, the Company signed 32 office leases in its Suburban portfolio totaling 202,709 square feet. Twenty-one leases comprising 61,376 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 $36.05 per rentable square foot, representing a 2.6% decrease over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the first six months of 2018 was 8.0 years and average tenant concessions were 8.6 months of free rent with a tenant improvement allowance of $24.94 per rentable square foot.
Occupancy in the Company's Suburban same-store portfolio was 87.2% as of June 30, 2018, inclusive of 5,732 square feet of leases signed but not yet commenced, as compared to 87.6% at March 31, 2018 and 86.2% as of June 30, 2017.
Significant leases that were signed in the second quarter included:
• | New lease with McDermott Will & Emery LLP for 105,539 square feet at One Vanderbilt Avenue, for 20.0 years; |
• | New lease with Syska Hennessy Group, Inc. for 55,016 square feet at 1185 Avenue of the Americas, for 10.3 years; |
• | Renewal with Canon Solutions America, Inc. for 33,766 square feet at 125 Park Avenue, for 10.6 years; |
Supplemental Information | 5 | Second Quarter 2018 |
| ||
SECOND QUARTER 2018 HIGHLIGHTS Unaudited | | |
| ||
• | New lease with Puma North America, Inc. for 24,000 square feet at 609 Fifth Avenue, for 16.0 years; |
• | New lease with Milburn Ridgefield Corporation for 22,523 square feet at 55 West 46th Street, known as Tower 46, for 10.5 years; |
• | New lease with TravelClick, Inc. for 22,518 square feet at 55 West 46th Street, known as Tower 46, for 10.3 years; |
• | New lease with United Refining, Inc. for 20,010 square feet at 800 Third Avenue, for 10.3 years; |
• | New lease with Coty, Inc. for 10,040 square feet at 719 Seventh Avenue, known as 30 Times Square, for 10.4 years. |
Marketing, general and administrative, or MG&A, expense for the three months ended June 30, 2018 was $22.5 million, or 5.1% of total combined revenues and 47 basis points of total assets, including our share of assets from unconsolidated joint ventures.
Investment Activity
During the quarter, the Company announced that its Board of Directors had authorized a $500 million increase to the size of its share repurchase program, bringing the program total to $2.0 billion. To date, the Company has acquired 15.6 million shares of its common stock under the program at an average price of $99.58 per share, allowing the Company to save approximately $50.8 million of common dividends on an annualized basis.
In July, the Company closed on the sale of substantially all of its interest in 724 Fifth Avenue to its joint venture partner. In addition, the Company was redeemed on its investment in 720 Fifth Avenue, and partially repaid on another partnership loan. The transactions generated net proceeds of $85.6 million.
In July, the Company closed on the previously announced sale of Reckson Executive Park, which consists of six Class-A office buildings totaling 540,000 square-feet located at 1-6 International Drive in Rye Brook, New York, for a sale price of $55.0 million. The transaction generated net proceeds of $53.2 million.
In June, the Company closed on the previously announced sale of 635 Madison Avenue for a sale price of $153.0 million. The transaction generated net proceeds of $141.7 million.
In June, the Company closed on the previously announced sale of its 11.7% interest in Jericho Plaza, two office buildings totaling 640,000 square-feet located in Jericho, New York, for a gross asset valuation of $117.4 million. The transaction generated net proceeds of $4.1 million.
In May, the Company took ownership of the leasehold interest at 2 Herald Square following the foreclosure of the asset. The Company also reached an agreement to joint venture the asset with an Israeli-based institutional investor.
In May, the Company, along with our joint venture partner, Ivanhoe Cambridge, closed on the sale of the leasehold office condominium at 1745 Broadway, at a sale price of $633 million, or $939 per square foot. The transaction generated net proceeds of $126.9 million and the Company recognized a gain on sale of $52.0 million.
In May, the Company closed on the previously announced sale of 115-117 Stevens Avenue, which consists of two office buildings totaling 178,000 square-feet located in Valhalla, New York, for a sale price of $12.0 million. The transaction generated net proceeds of $11.0 million.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity investment portfolio increased to $2.36 billion at June 30, 2018, including $2.17 billion of investments at a weighted average current yield of 8.8% that are classified in the debt and preferred equity line item on the balance sheet, and investments aggregating $0.19 billion at a weighted average current yield of 10.6% that are included in other balance sheet line items for accounting purposes.
During the second quarter, the Company originated or acquired new debt and preferred equity investments totaling $541.0 million, all of which was retained and $477.9 million of which was funded. New mortgage investments totaled $280.0 million, all of which was retained and $257.7 million of which was funded, at a weighted average current yield of 7.1% and a weighted average levered yield of 9.1%, after taking into consideration $120.6 million drawn on the Company’s mortgage financing facility. New subordinate debt and preferred equity investments totaled $261.0 million, all of which was retained and $220.1 million of which was funded, at a weighted average yield of 9.9%.
Dividends
In the second quarter of 2018, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:
• | $0.8125 per share of common stock, which was paid on July 16, 2018 to shareholders of record on the close of business on June 29, 2018; and |
• | $0.40625 per share on the Company's 6.50% Series I Cumulative Redeemable Preferred Stock for the period April 15, 2018 through and including July 14, 2018, which was paid on July 16, 2018 to shareholders of record on the close of business on June 29, 2018, and reflects the regular quarterly dividend, which is the equivalent of an annualized dividend of $1.625 per share. |
Conference Call and Audio Webcast
The Company's executive management team, led by Marc Holliday, Chief Executive Officer, will host a conference call and audio webcast on Thursday, July 19, 2018 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 8887486.
A replay of the call will be available 7 days after the call by dialing (855) 859-2056 using passcode 8887486. 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 | 6 | Second Quarter 2018 |
| ||
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
As of or for the three months ended | |||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | |||||||||||||||
Earnings Per Share | |||||||||||||||||||
Net income available to common stockholders - diluted | $ | 1.19 | $ | 1.12 | $ | 0.29 | $ | 0.40 | $ | 0.08 | |||||||||
Funds from operations (FFO) available to common stockholders - diluted | $ | 1.69 | $ | 1.66 | $ | 1.60 | $ | 1.49 | $ | 1.78 | |||||||||
Common Share Price & Dividends | |||||||||||||||||||
Closing price at the end of the period | $ | 100.53 | $ | 96.83 | $ | 100.93 | $ | 101.32 | $ | 105.80 | |||||||||
Closing high price during period | $ | 101.59 | $ | 100.95 | $ | 105.01 | $ | 107.52 | $ | 109.73 | |||||||||
Closing low price during period | $ | 94.27 | $ | 90.61 | $ | 94.15 | $ | 95.45 | $ | 101.03 | |||||||||
Common dividend per share | $ | 0.8125 | $ | 0.8125 | $ | 0.8125 | $ | 0.775 | $ | 0.775 | |||||||||
FFO payout ratio (trailing 12 months) | 49.9 | % | 48.6 | % | 48.7 | % | 49.4 | % | 47.4 | % | |||||||||
Funds available for distribution (FAD) payout ratio (trailing 12 months) | 82.6 | % | 81.2 | % | 76.9 | % | 83.0 | % | 77.6 | % | |||||||||
Common Shares & Units | |||||||||||||||||||
Common shares outstanding | 85,725 | 89,135 | 92,803 | 97,446 | 98,367 | ||||||||||||||
Units outstanding | 4,700 | 4,715 | 4,453 | 4,542 | 4,562 | ||||||||||||||
Total common shares and units outstanding | 90,425 | 93,850 | 97,256 | 101,988 | 102,929 | ||||||||||||||
Weighted average common shares and units outstanding - basic | 91,882 | 95,203 | 100,532 | 102,326 | 104,462 | ||||||||||||||
Weighted average common shares and units outstanding - diluted | 92,083 | 95,256 | 100,779 | 102,570 | 104,732 | ||||||||||||||
Market Capitalization | |||||||||||||||||||
Market value of common equity | $ | 9,090,425 | $ | 9,087,496 | $ | 9,816,048 | $ | 10,333,424 | $ | 10,889,888 | |||||||||
Liquidation value of preferred equity/units | 531,384 | 531,584 | 531,734 | 531,884 | 531,884 | ||||||||||||||
Consolidated debt (1) | 5,902,899 | 5,460,586 | 5,910,596 | 6,476,623 | 6,431,753 | ||||||||||||||
Consolidated market capitalization | $ | 15,524,708 | $ | 15,079,666 | $ | 16,258,378 | $ | 17,341,931 | $ | 17,853,525 | |||||||||
SLG share of unconsolidated JV debt | 4,088,628 | 4,333,451 | 4,184,387 | 3,191,302 | 2,924,816 | ||||||||||||||
Market capitalization including SLG share of unconsolidated JVs | $ | 19,613,336 | $ | 19,413,117 | $ | 20,442,765 | $ | 20,533,233 | $ | 20,778,341 | |||||||||
Consolidated debt to market capitalization | 38.0 | % | 36.2 | % | 36.4 | % | 37.3 | % | 36.0 | % | |||||||||
Debt to market capitalization including SLG share of unconsolidated JVs | 50.9 | % | 50.5 | % | 49.4 | % | 47.1 | % | 45.0 | % | |||||||||
Consolidated debt service coverage (trailing 12 months) | 3.09x | 3.15x | 3.07x | 3.04x | 3.07x | ||||||||||||||
Consolidated fixed charge coverage (trailing 12 months) | 2.59x | 2.65x | 2.60x | 2.56x | 2.59x | ||||||||||||||
Debt service coverage, including SLG share of unconsolidated JVs (trailing 12 months) | 2.43x | 2.56x | 2.60x | 2.61x | 2.66x | ||||||||||||||
Fixed charge coverage, including SLG share of unconsolidated JVs (trailing 12 months) | 2.12x | 2.23x | 2.26x | 2.25x | 2.29x | ||||||||||||||
(1) Includes debt associated with assets held for sale. | |||||||||||||||||||
Supplemental Information | 7 | Second Quarter 2018 |
| ||
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
As of or for the three months ended | |||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | |||||||||||||||
Selected Balance Sheet Data | |||||||||||||||||||
Real estate assets before depreciation (1) | $ | 9,294,349 | $ | 8,968,049 | $ | 10,665,993 | $ | 12,013,814 | $ | 12,021,243 | |||||||||
Investments in unconsolidated joint ventures | $ | 3,059,985 | $ | 3,034,596 | $ | 2,362,989 | $ | 2,045,796 | $ | 2,219,371 | |||||||||
Debt and preferred equity investments | $ | 2,168,515 | $ | 2,085,871 | $ | 2,114,041 | $ | 2,020,739 | $ | 1,986,413 | |||||||||
Cash and cash equivalents | $ | 287,240 | $ | 288,808 | $ | 127,888 | $ | 241,489 | $ | 270,965 | |||||||||
Investment in marketable securities | $ | 28,570 | $ | 28,252 | $ | 28,579 | $ | 28,802 | $ | 29,524 | |||||||||
Total assets | $ | 13,713,928 | $ | 13,380,870 | $ | 13,982,904 | $ | 15,109,870 | $ | 15,309,707 | |||||||||
Fixed rate & hedged debt | $ | 3,765,899 | $ | 3,795,560 | $ | 4,305,165 | $ | 5,154,810 | $ | 5,190,393 | |||||||||
Variable rate debt (2) | 2,137,000 | 1,665,026 | 1,605,431 | 1,321,813 | 1,241,360 | ||||||||||||||
Total consolidated debt | $ | 5,902,899 | $ | 5,460,586 | $ | 5,910,596 | $ | 6,476,623 | $ | 6,431,753 | |||||||||
Deferred financing costs, net of amortization | (45,488 | ) | (48,152 | ) | (56,690 | ) | (52,667 | ) | (56,820 | ) | |||||||||
Total consolidated debt, net | $ | 5,857,411 | $ | 5,412,434 | $ | 5,853,906 | $ | 6,423,956 | $ | 6,374,933 | |||||||||
Total liabilities | $ | 6,683,877 | $ | 6,065,849 | $ | 6,629,761 | $ | 7,153,035 | $ | 7,172,522 | |||||||||
Fixed rate & hedged debt, including SLG share of unconsolidated JV debt | $ | 6,282,993 | $ | 6,314,189 | $ | 6,686,521 | $ | 6,609,447 | $ | 6,532,638 | |||||||||
Variable rate debt, including SLG share of unconsolidated JV debt (2) | 3,708,534 | 3,479,848 | 3,408,462 | 3,058,478 | 2,823,931 | ||||||||||||||
Total debt, including SLG share of unconsolidated JV debt | $ | 9,991,527 | $ | 9,794,037 | $ | 10,094,983 | $ | 9,667,925 | $ | 9,356,569 | |||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 238,421 | $ | 241,768 | $ | 306,870 | $ | 319,514 | $ | 322,027 | |||||||||
Property operating expenses | (110,405 | ) | (113,751 | ) | (138,537 | ) | (148,394 | ) | (140,105 | ) | |||||||||
Property NOI | $ | 128,016 | $ | 128,017 | $ | 168,333 | $ | 171,120 | $ | 181,922 | |||||||||
SLG share of unconsolidated JV Property NOI | 88,042 | 84,801 | 67,757 | 57,650 | 55,002 | ||||||||||||||
Property NOI, including SLG share of unconsolidated JV Property NOI | $ | 216,058 | $ | 212,818 | $ | 236,090 | $ | 228,770 | $ | 236,924 | |||||||||
Investment income | 49,273 | 45,290 | 45,130 | 47,820 | 60,622 | ||||||||||||||
Other income | 13,422 | 14,637 | 9,342 | 7,266 | 15,501 | ||||||||||||||
Marketing general & administrative expenses | (22,479 | ) | (23,528 | ) | (28,136 | ) | (23,963 | ) | (24,256 | ) | |||||||||
SLG share of investment income and other income from unconsolidated JVs | 2,749 | 4,379 | 6,683 | 4,524 | 5,078 | ||||||||||||||
Income taxes | 1,092 | 507 | 1,432 | 77 | 2,201 | ||||||||||||||
Transaction costs, including SLG share of unconsolidated JVs | (348 | ) | (162 | ) | 2,199 | (186 | ) | (102 | ) | ||||||||||
EBITDAre | $ | 259,767 | $ | 253,941 | $ | 272,740 | $ | 264,308 | $ | 295,968 | |||||||||
(1) Includes assets held for sale of $711.9 million at June 30, 2018 for 2 Herald Square and Reckson Executive Park. | |||||||||||||||||||
(2) Does not reflect $1.3 billion of floating rate debt and preferred equity investments that provide a hedge against floating rate debt. | |||||||||||||||||||
Supplemental Information | 8 | Second Quarter 2018 |
| ||
KEY FINANCIAL DATA Manhattan Properties (1) Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
As of or for the three months ended | |||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | |||||||||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 220,900 | $ | 220,342 | $ | 285,131 | $ | 294,126 | $ | 294,596 | |||||||||
Property operating expenses | 95,108 | 97,578 | 120,741 | 130,395 | 120,518 | ||||||||||||||
Property NOI | $ | 125,792 | $ | 122,764 | $ | 164,390 | $ | 163,731 | $ | 174,078 | |||||||||
Other income - consolidated | $ | 912 | $ | 3,952 | $ | 666 | $ | 1,467 | $ | 608 | |||||||||
SLG share of property NOI from unconsolidated JVs | $ | 87,860 | $ | 84,757 | $ | 67,374 | $ | 57,486 | $ | 54,856 | |||||||||
Portfolio Statistics | |||||||||||||||||||
Consolidated office buildings in service | 21 | 20 | 23 | 24 | 24 | ||||||||||||||
Unconsolidated office buildings in service | 10 | 11 | 9 | 7 | 7 | ||||||||||||||
31 | 31 | 32 | 31 | 31 | |||||||||||||||
Consolidated office buildings in service - square footage | 12,756,091 | 12,387,091 | 14,304,606 | 16,054,606 | 16,054,606 | ||||||||||||||
Unconsolidated office buildings in service - square footage | 11,491,164 | 12,165,164 | 10,356,864 | 6,558,139 | 6,558,139 | ||||||||||||||
24,247,255 | 24,552,255 | 24,661,470 | 22,612,745 | 22,612,745 | |||||||||||||||
Same-Store office occupancy (consolidated + JVs) | 93.5% | 93.2% | 92.8% | 92.6% | 92.3% | ||||||||||||||
Same-Store office occupancy inclusive of leases signed not yet commenced | 95.9% | 95.5% | 95.6% | 95.3% | 94.7% | ||||||||||||||
Office Leasing Statistics | |||||||||||||||||||
New leases commenced | 45 | 27 | 24 | 30 | 34 | ||||||||||||||
Renewal leases commenced | 9 | 10 | 12 | 17 | 11 | ||||||||||||||
Total office leases commenced | 54 | 37 | 36 | 47 | 45 | ||||||||||||||
Commenced office square footage filling vacancy | 52,599 | 103,418 | 58,594 | 118,590 | 118,230 | ||||||||||||||
Commenced office square footage on previously occupied space (M-T-M leasing) (2) | 352,935 | 342,212 | 217,384 | 181,974 | 156,558 | ||||||||||||||
Total office square footage commenced | 405,534 | 445,630 | 275,978 | 300,564 | 274,788 | ||||||||||||||
Average starting cash rent psf - office leases commenced | $68.97 | $72.10 | $72.83 | $71.73 | $71.43 | ||||||||||||||
Previously escalated cash rent psf - office leases commenced | $62.87 | $67.55 | $60.72 | $70.30 | $66.92 | ||||||||||||||
Increase in new cash rent over previously escalated cash rent (2) | 9.7% | 6.7% | 19.9% | 2.0% | 6.7% | ||||||||||||||
Average lease term | 7.4 | 10.2 | 8.1 | 6.3 | 7.1 | ||||||||||||||
Tenant concession packages psf | $37.56 | $80.72 | $37.30 | $45.36 | $45.12 | ||||||||||||||
Free rent months | 2.7 | 8.3 | 2.2 | 3.2 | 4.6 | ||||||||||||||
(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 | 9 | Second Quarter 2018 |
| ||
KEY FINANCIAL DATA Suburban Properties (1) Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
As of or for the three months ended | |||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | |||||||||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 19,679 | $ | 20,329 | $ | 21,120 | $ | 25,102 | $ | 26,844 | |||||||||
Property operating expenses | 11,039 | 11,173 | 10,941 | 13,194 | 13,890 | ||||||||||||||
Property NOI | $ | 8,640 | $ | 9,156 | $ | 10,179 | $ | 11,908 | $ | 12,954 | |||||||||
Other income - consolidated | $ | 6,271 | $ | 104 | $ | 3,456 | $ | 471 | $ | 1,300 | |||||||||
SLG share of property NOI from unconsolidated JVs | $ | 177 | $ | 47 | $ | 384 | $ | 145 | $ | 192 | |||||||||
Portfolio Statistics | |||||||||||||||||||
Consolidated office buildings in service | 19 | 20 | 20 | 22 | 24 | ||||||||||||||
Unconsolidated office buildings in service | — | 2 | 2 | 2 | 2 | ||||||||||||||
19 | 22 | 22 | 24 | 26 | |||||||||||||||
Consolidated office buildings in service - square footage | 2,835,200 | 3,013,200 | 3,013,200 | 3,608,800 | 3,933,800 | ||||||||||||||
Unconsolidated office buildings in service - square footage | — | 640,000 | 640,000 | 640,000 | 640,000 | ||||||||||||||
2,835,200 | 3,653,200 | 3,653,200 | 4,248,800 | 4,573,800 | |||||||||||||||
Same-Store office occupancy (consolidated + JVs) | 87.0% | 86.9% | 88.2% | 86.1% | 85.6% | ||||||||||||||
Same-Store office occupancy inclusive of leases signed not yet commenced | 87.2% | 87.6% | 88.5% | 87.9% | 86.2% | ||||||||||||||
Office Leasing Statistics | |||||||||||||||||||
New leases commenced | 12 | 8 | 15 | 8 | 16 | ||||||||||||||
Renewal leases commenced | 4 | 8 | 12 | 9 | 6 | ||||||||||||||
Total office leases commenced | 16 | 16 | 27 | 17 | 22 | ||||||||||||||
Commenced office square footage filling vacancy | 12,876 | 75,615 | 75,016 | 53,971 | 98,500 | ||||||||||||||
Commenced office square footage on previously occupied space (M-T-M leasing) (2) | 48,226 | 22,544 | 82,181 | 79,408 | 28,915 | ||||||||||||||
Total office square footage commenced | 61,102 | 98,159 | 157,197 | 133,379 | 127,415 | ||||||||||||||
Average starting cash rent psf - office leases commenced | $35.85 | $32.88 | $35.47 | $30.75 | $46.80 | ||||||||||||||
Previously escalated cash rent psf - office leases commenced | $37.26 | $32.41 | $34.27 | $32.28 | $39.36 | ||||||||||||||
Increase in new cash rent over previously escalated cash rent (2) | (3.8)% | 1.5% | 3.5% | (4.7)% | 18.9% | ||||||||||||||
Average lease term | 6.4 | 6.9 | 5.7 | 7.2 | 7.5 | ||||||||||||||
Tenant concession packages psf | $18.87 | $25.99 | $23.34 | $28.73 | $35.70 | ||||||||||||||
Free rent months | 4.2 | 8.3 | 3.9 | 7.5 | 5.2 | ||||||||||||||
(1) Property data includes operating office, retail, and development properties. | |||||||||||||||||||
(2) Calculated on space that was occupied within the previous 12 months. | |||||||||||||||||||
Supplemental Information | 10 | Second Quarter 2018 |
| ||
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) | | |
| ||
As of | |||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | |||||||||||||||
Assets | |||||||||||||||||||
Commercial real estate properties, at cost: | |||||||||||||||||||
Land and land interests | $ | 1,893,047 | $ | 2,098,406 | $ | 2,357,051 | $ | 2,917,993 | $ | 2,936,879 | |||||||||
Building and improvements | 5,225,431 | 5,206,982 | 6,351,012 | 7,468,436 | 7,476,108 | ||||||||||||||
Building leasehold and improvements | 1,423,994 | 1,420,346 | 1,450,614 | 1,444,698 | 1,441,587 | ||||||||||||||
Properties under capital lease | 47,445 | 47,445 | 47,445 | 47,445 | 47,445 | ||||||||||||||
8,589,917 | 8,773,179 | 10,206,122 | 11,878,572 | 11,902,019 | |||||||||||||||
Less: accumulated depreciation | (1,994,696 | ) | (1,944,629 | ) | (2,300,116 | ) | (2,457,071 | ) | (2,397,299 | ) | |||||||||
Net real estate | 6,595,221 | 6,828,550 | 7,906,006 | 9,421,501 | 9,504,720 | ||||||||||||||
Other real estate investments: | |||||||||||||||||||
Investment in unconsolidated joint ventures | 3,059,985 | 3,034,596 | 2,362,989 | 2,045,796 | 2,219,371 | ||||||||||||||
Debt and preferred equity investments, net (1) | 2,168,515 | 2,085,871 | 2,114,041 | 2,020,739 | 1,986,413 | ||||||||||||||
Assets held for sale, net | 593,995 | 67,819 | 338,354 | 127,663 | 119,224 | ||||||||||||||
Cash and cash equivalents | 287,240 | 288,808 | 127,888 | 241,489 | 270,965 | ||||||||||||||
Restricted cash | 92,740 | 89,457 | 122,138 | 107,763 | 109,959 | ||||||||||||||
Investment in marketable securities | 28,570 | 28,252 | 28,579 | 28,802 | 29,524 | ||||||||||||||
Tenant and other receivables, net of $16,558 reserve at 6/30/2018 | 47,482 | 49,552 | 57,644 | 54,663 | 50,946 | ||||||||||||||
Related party receivables | 27,854 | 31,305 | 23,039 | 24,068 | 23,725 | ||||||||||||||
Deferred rents receivable, net of reserve for | |||||||||||||||||||
tenant credit loss of $15,776 at 6/30/2018 | 322,656 | 320,547 | 365,337 | 393,793 | 385,040 | ||||||||||||||
Deferred costs, net | 198,941 | 195,557 | 226,201 | 247,981 | 249,724 | ||||||||||||||
Other assets | 290,729 | 360,556 | 310,688 | 395,612 | 360,096 | ||||||||||||||
Total Assets | $ | 13,713,928 | $ | 13,380,870 | $ | 13,982,904 | $ | 15,109,870 | $ | 15,309,707 | |||||||||
(1) Excludes debt and preferred equity investments totaling $194.7 million with a weighted average current yield of 10.57% that are included in other balance sheet line items. | |||||||||||||||||||
Supplemental Information | 11 | Second Quarter 2018 |
| ||
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) | | |
| ||
As of | |||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | |||||||||||||||
Liabilities | |||||||||||||||||||
Mortgages and other loans payable | $ | 2,538,696 | $ | 2,456,180 | $ | 2,865,991 | $ | 3,845,061 | $ | 3,857,421 | |||||||||
Unsecured term loan | 1,500,000 | 1,500,000 | 1,500,000 | 1,183,000 | 1,183,000 | ||||||||||||||
Unsecured notes | 1,404,203 | 1,404,406 | 1,404,605 | 1,068,562 | 1,091,332 | ||||||||||||||
Revolving credit facility | 360,000 | — | 40,000 | 280,000 | 200,000 | ||||||||||||||
Deferred financing costs | (45,488 | ) | (48,152 | ) | (56,690 | ) | (52,667 | ) | (56,820 | ) | |||||||||
Total debt, net of deferred financing costs | 5,757,411 | 5,312,434 | 5,753,906 | 6,323,956 | 6,274,933 | ||||||||||||||
Accrued interest | 26,104 | 36,808 | 38,142 | 34,367 | 36,478 | ||||||||||||||
Accounts payable and accrued expenses | 140,739 | 131,797 | 137,142 | 144,767 | 134,294 | ||||||||||||||
Deferred revenue | 95,756 | 177,896 | 208,119 | 252,779 | 229,692 | ||||||||||||||
Capitalized lease obligations | 43,221 | 43,029 | 42,843 | 42,660 | 42,480 | ||||||||||||||
Deferred land lease payable | 3,567 | 3,403 | 3,239 | 3,075 | 2,911 | ||||||||||||||
Dividends and distributions payable | 79,518 | 82,337 | 85,138 | 85,007 | 86,081 | ||||||||||||||
Security deposits | 63,872 | 64,647 | 67,927 | 68,465 | 68,286 | ||||||||||||||
Liabilities related to assets held for sale | 265,538 | 42 | 4,074 | 1,141 | 106 | ||||||||||||||
Junior subordinated deferrable interest debentures | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||||||
Other liabilities | 108,151 | 113,456 | 189,231 | 96,818 | 197,261 | ||||||||||||||
Total liabilities | 6,683,877 | 6,065,849 | 6,629,761 | 7,153,035 | 7,172,522 | ||||||||||||||
Noncontrolling interest in operating partnership | |||||||||||||||||||
(4,700 units outstanding) at 6/30/2018 | 486,610 | 475,807 | 461,954 | 470,898 | 487,660 | ||||||||||||||
Preferred units | 301,385 | 301,585 | 301,735 | 301,885 | 301,885 | ||||||||||||||
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, 86,780 | |||||||||||||||||||
issued and outstanding at 6/30/2018, including 1,055 shares held in treasury | 868 | 902 | 939 | 985 | 995 | ||||||||||||||
Additional paid–in capital | 4,601,608 | 4,776,594 | 4,968,338 | 5,294,500 | 5,391,038 | ||||||||||||||
Treasury stock | (124,049 | ) | (124,049 | ) | (124,049 | ) | (124,049 | ) | (124,049 | ) | |||||||||
Accumulated other comprehensive income | 32,622 | 28,573 | 18,604 | 14,185 | 14,354 | ||||||||||||||
Retained earnings | 1,457,835 | 1,583,833 | 1,139,329 | 1,410,332 | 1,431,442 | ||||||||||||||
Total SL Green Realty Corp. stockholders' equity | 6,190,816 | 6,487,785 | 6,225,093 | 6,817,885 | 6,935,712 | ||||||||||||||
Noncontrolling interest in other partnerships | 51,240 | 49,844 | 364,361 | 366,167 | 411,928 | ||||||||||||||
Total equity | 6,242,056 | 6,537,629 | 6,589,454 | 7,184,052 | 7,347,640 | ||||||||||||||
Total Liabilities and Equity | $ | 13,713,928 | $ | 13,380,870 | $ | 13,982,904 | $ | 15,109,870 | $ | 15,309,707 | |||||||||
Supplemental Information | 12 | Second Quarter 2018 |
| ||
COMPARATIVE STATEMENT OF OPERATIONS Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
Three Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | |||||||||||||||||
Revenues | |||||||||||||||||||||
Rental revenue, net | $ | 211,369 | $ | 279,407 | $ | 215,369 | $ | 426,738 | $ | 560,736 | |||||||||||
Escalation and reimbursement revenues | 27,052 | 42,620 | 26,399 | 53,451 | 86,812 | ||||||||||||||||
Investment income | 49,273 | 60,622 | 45,290 | 94,563 | 100,921 | ||||||||||||||||
Other income | 13,422 | 15,501 | 14,637 | 28,059 | 27,062 | ||||||||||||||||
Total Revenues, net | 301,116 | 398,150 | 301,695 | 602,811 | 775,531 | ||||||||||||||||
Equity in net income from unconsolidated joint ventures | 4,702 | 3,412 | 4,036 | 8,738 | 10,026 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Operating expenses | 56,237 | 70,852 | 59,782 | 116,019 | 145,358 | ||||||||||||||||
Ground rent | 8,846 | 8,308 | 8,308 | 17,154 | 16,616 | ||||||||||||||||
Real estate taxes | 45,322 | 60,945 | 45,661 | 90,983 | 122,013 | ||||||||||||||||
Transaction related costs | 348 | 46 | 162 | 510 | 179 | ||||||||||||||||
Marketing, general and administrative | 22,479 | 24,256 | 23,528 | 46,007 | 48,399 | ||||||||||||||||
Total Operating Expenses | 133,232 | 164,407 | 137,441 | 270,673 | 332,565 | ||||||||||||||||
Operating Income | 172,586 | 237,155 | 168,290 | 340,876 | 452,992 | ||||||||||||||||
Interest expense, net of interest income | 53,611 | 64,856 | 47,916 | 101,527 | 130,478 | ||||||||||||||||
Amortization of deferred financing costs | 3,546 | 3,432 | 3,537 | 7,083 | 8,193 | ||||||||||||||||
Depreciation and amortization | 67,914 | 133,054 | 69,388 | 137,302 | 227,188 | ||||||||||||||||
47,515 | 35,813 | 47,449 | 94,964 | 87,133 | |||||||||||||||||
Gain on sale of marketable securities | — | — | — | — | 3,262 | ||||||||||||||||
Income from Continuing Operations (1) | 47,515 | 35,813 | 47,449 | 94,964 | 90,395 | ||||||||||||||||
(Loss) Gain on sale of real estate | (14,790 | ) | (3,823 | ) | 23,521 | 8,731 | (3,256 | ) | |||||||||||||
Equity in net gain (loss) on sale of joint venture interest / real estate | 72,025 | 13,089 | (6,440 | ) | 65,585 | 15,136 | |||||||||||||||
Purchase price and other fair value adjustments | 11,149 | — | 49,293 | 60,442 | — | ||||||||||||||||
Depreciable real estate reserves | — | (29,064 | ) | — | — | (85,336 | ) | ||||||||||||||
Net Income | 115,899 | 16,015 | 113,823 | 229,722 | 16,939 | ||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (5,759 | ) | (1,205 | ) | (5,470 | ) | (11,229 | ) | 15,810 | ||||||||||||
Dividends on preferred units | (2,847 | ) | (2,851 | ) | (2,849 | ) | (5,696 | ) | (5,701 | ) | |||||||||||
Net Income Attributable to SL Green Realty Corp | 107,293 | 11,959 | 105,504 | 212,797 | 27,048 | ||||||||||||||||
Dividends on perpetual preferred shares | (3,737 | ) | (3,737 | ) | (3,738 | ) | (7,475 | ) | (7,475 | ) | |||||||||||
Net Income Attributable to Common Stockholders | $ | 103,556 | $ | 8,222 | $ | 101,766 | $ | 205,322 | $ | 19,573 | |||||||||||
Earnings per share - Net income per share (basic) | $ | 1.19 | $ | 0.08 | $ | 1.12 | $ | 2.31 | $ | 0.20 | |||||||||||
Earnings per share - Net income per share (diluted) | $ | 1.19 | $ | 0.08 | $ | 1.12 | $ | 2.31 | $ | 0.19 | |||||||||||
(1) Before gains on sale and equity in net gains and depreciable real estate reserves shown below. | |||||||||||||||||||||
Supplemental Information | 13 | Second Quarter 2018 |
| ||
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||||||||
Funds from Operations | ||||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 103,556 | $ | 8,222 | $ | 101,766 | $ | 205,322 | $ | 19,573 | ||||||||||||
Depreciation and amortization | 67,914 | 133,054 | 69,388 | 137,302 | 227,188 | |||||||||||||||||
Unconsolidated JV depreciation and noncontrolling interests adjustments | 47,308 | 25,086 | 48,006 | 95,314 | 49,419 | |||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 5,759 | 1,205 | 5,470 | 11,229 | (15,810 | ) | ||||||||||||||||
Loss (gain) on sale of real estate | 14,790 | 3,823 | (23,521 | ) | (8,731 | ) | 3,256 | |||||||||||||||
Equity in net gain (loss) on sale of joint venture property / real estate | (72,025 | ) | (13,089 | ) | 6,440 | (65,585 | ) | (15,136 | ) | |||||||||||||
Purchase price and other fair value adjustments | (11,149 | ) | — | (49,293 | ) | (60,442 | ) | — | ||||||||||||||
Depreciable real estate reserves | — | 29,064 | — | — | 85,336 | |||||||||||||||||
Non-real estate depreciation and amortization | (584 | ) | (564 | ) | (566 | ) | (1,150 | ) | (1,080 | ) | ||||||||||||
Funds From Operations | $ | 155,569 | $ | 186,801 | $ | 157,690 | $ | 313,259 | $ | 352,746 | ||||||||||||
Funds From Operations - Basic per Share | $ | 1.69 | $ | 1.79 | $ | 1.66 | $ | 3.35 | $ | 3.36 | ||||||||||||
Funds From Operations - Diluted per Share | $ | 1.69 | $ | 1.78 | $ | 1.66 | $ | 3.34 | $ | 3.36 | ||||||||||||
Funds Available for Distribution | ||||||||||||||||||||||
FFO | $ | 155,569 | $ | 186,801 | $ | 157,690 | $ | 313,259 | $ | 352,746 | ||||||||||||
Non real estate depreciation and amortization | 584 | 564 | 566 | 1,150 | 1,080 | |||||||||||||||||
Amortization of deferred financing costs | 3,546 | 3,432 | 3,537 | 7,083 | 8,193 | |||||||||||||||||
Non-cash deferred compensation | 7,808 | 11,499 | 11,875 | 19,683 | 27,806 | |||||||||||||||||
FAD adjustment for joint ventures | (23,073 | ) | (10,242 | ) | (16,750 | ) | (39,823 | ) | (19,690 | ) | ||||||||||||
Straight-line rental income and other non cash adjustments | (5,675 | ) | (16,270 | ) | (6,930 | ) | (12,605 | ) | (32,209 | ) | ||||||||||||
Second cycle tenant improvements | (19,862 | ) | (29,964 | ) | (5,786 | ) | (25,648 | ) | (43,408 | ) | ||||||||||||
Second cycle leasing commissions | (4,320 | ) | (6,741 | ) | (3,979 | ) | (8,299 | ) | (14,574 | ) | ||||||||||||
Revenue enhancing recurring CAPEX | (996 | ) | (1,871 | ) | (509 | ) | (1,505 | ) | (2,225 | ) | ||||||||||||
Non-revenue enhancing recurring CAPEX | (7,746 | ) | (14,802 | ) | (4,528 | ) | (12,274 | ) | (20,757 | ) | ||||||||||||
Reported Funds Available for Distribution | $ | 105,835 | $ | 122,406 | $ | 135,186 | $ | 241,021 | $ | 256,962 | ||||||||||||
First cycle tenant improvements | $ | 1,671 | $ | 4,956 | $ | 1,316 | $ | 2,987 | $ | 5,849 | ||||||||||||
First cycle leasing commissions | $ | 806 | $ | 198 | $ | 182 | $ | 988 | $ | 602 | ||||||||||||
Development costs | $ | 6,437 | $ | 1,844 | $ | 2,976 | $ | 9,413 | $ | 64,165 | ||||||||||||
Redevelopment costs | $ | 6,800 | $ | 3,745 | $ | 19,201 | $ | 26,001 | $ | 8,685 | ||||||||||||
Capitalized Interest | $ | 7,594 | $ | 6,743 | $ | 6,686 | $ | 14,280 | $ | 13,022 | ||||||||||||
Supplemental Information | 14 | Second Quarter 2018 |
| ||
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 | Income | TOTAL | |||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 221,932 | $ | 939 | $ | 4,968,338 | $ | (124,049 | ) | $ | 1,139,329 | $ | 364,361 | $ | 18,604 | $ | 6,589,454 | |||||||||||||||||
Net income | 212,797 | 370 | 213,167 | |||||||||||||||||||||||||||||||
Preferred dividends | (7,475 | ) | (7,475 | ) | ||||||||||||||||||||||||||||||
Cash distributions declared ($1.625 per common share) | (141,908 | ) | (141,908 | ) | ||||||||||||||||||||||||||||||
Cash distributions to noncontrolling interests | (724 | ) | (724 | ) | ||||||||||||||||||||||||||||||
Other comprehensive income - unrealized gain on derivative instruments | 10,035 | 10,035 | ||||||||||||||||||||||||||||||||
Other comprehensive income - SLG share of unconsolidated joint venture net unrealized gain on derivative instruments | 3,999 | 3,999 | ||||||||||||||||||||||||||||||||
Other comprehensive loss - unrealized loss on marketable securities | (16 | ) | (16 | ) | ||||||||||||||||||||||||||||||
Proceeds from stock options exercised | 1 | 5,636 | 5,637 | |||||||||||||||||||||||||||||||
DRSPP proceeds | 64 | 64 | ||||||||||||||||||||||||||||||||
Repurchases of common stock | (72 | ) | (382,080 | ) | (310,939 | ) | (693,091 | ) | ||||||||||||||||||||||||||
Conversion of units of the Operating Partnership to common stock | 1,560 | 1,560 | ||||||||||||||||||||||||||||||||
Contributions to consolidated joint ventures | 1,829 | 1,829 | ||||||||||||||||||||||||||||||||
Deconsolidation of partially owned entities | 570,524 | (314,596 | ) | 255,928 | ||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests in the Operating Partnership | (4,493 | ) | (4,493 | ) | ||||||||||||||||||||||||||||||
Deferred compensation plan and stock awards, net | 8,090 | 8,090 | ||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 221,932 | $ | 868 | $ | 4,601,608 | $ | (124,049 | ) | $ | 1,457,835 | $ | 51,240 | $ | 32,622 | $ | 6,242,056 | |||||||||||||||||
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION | ||||||||||||||||||||||||||||||||||
Common Stock | OP Units | Stock-Based Compensation | Diluted Shares | |||||||||||||||||||||||||||||||
Share Count at December 31, 2017 | 92,803,299 | 4,452,979 | — | 97,256,278 | ||||||||||||||||||||||||||||||
YTD share activity | (7,078,164 | ) | 246,893 | — | (6,831,271 | ) | ||||||||||||||||||||||||||||
Share Count at June 30, 2018 - Basic | 85,725,135 | 4,699,872 | — | 90,425,007 | ||||||||||||||||||||||||||||||
Weighting factor | 3,047,058 | (5,307 | ) | 199,896 | 3,241,647 | |||||||||||||||||||||||||||||
Weighted Average Share Count at June 30, 2018 - Diluted | 88,772,193 | 4,694,565 | 199,896 | 93,666,654 | ||||||||||||||||||||||||||||||
Supplemental Information | 15 | Second Quarter 2018 |
| ||
JOINT VENTURE STATEMENTS Balance Sheet for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) | | |
| ||
June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||||||||
Total | SLG Share | Total | SLG Share | Total | SLG Share | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Commercial real estate properties, at cost: | |||||||||||||||||||||||
Land and land interests | $ | 4,340,281 | $ | 2,077,114 | $ | 4,434,492 | $ | 2,150,354 | $ | 4,076,973 | $ | 2,016,744 | |||||||||||
Building and improvements | 10,532,843 | 4,937,066 | 10,993,085 | 5,156,027 | 9,648,939 | 4,477,189 | |||||||||||||||||
Building leasehold and improvements | 92,016 | 46,008 | 85,187 | 42,593 | 78,628 | 39,314 | |||||||||||||||||
Properties under capital lease | 189,558 | 94,779 | 189,558 | 94,779 | 189,558 | 94,779 | |||||||||||||||||
15,154,698 | 7,154,967 | 15,702,322 | 7,443,753 | 13,994,098 | 6,628,026 | ||||||||||||||||||
Less: accumulated depreciation | (961,373 | ) | (404,528 | ) | (1,049,839 | ) | (459,841 | ) | (1,171,965 | ) | (542,888 | ) | |||||||||||
Net real estate | 14,193,325 | 6,750,439 | 14,652,483 | 6,983,912 | 12,822,133 | 6,085,138 | |||||||||||||||||
Cash and cash equivalents | 219,902 | 113,789 | 214,053 | 103,819 | 220,306 | 109,901 | |||||||||||||||||
Restricted cash | 214,405 | 104,514 | 238,595 | 111,218 | 274,603 | 148,258 | |||||||||||||||||
Debt and preferred equity investments, net | 228,588 | 218,587 | 103,379 | 86,478 | 202,539 | 185,638 | |||||||||||||||||
Tenant and other receivables, net of $7,778 reserve at 6/30/2018, of which $4,149 is SLG share | 40,190 | 17,229 | 82,187 | 28,273 | 58,376 | 14,511 | |||||||||||||||||
Deferred rents receivables, net of $5,207 reserve at 6/30/2018 for tenant credit loss, of which $2,259 is SLG share | 268,463 | 121,942 | 277,209 | 126,842 | 291,568 | 139,868 | |||||||||||||||||
Investment in and advances to affiliates | 103 | 53 | — | — | — | — | |||||||||||||||||
Deferred costs, net | 167,413 | 84,567 | 194,055 | 93,862 | 207,045 | 103,062 | |||||||||||||||||
Other assets | 2,087,474 | 929,861 | 2,167,015 | 960,418 | 1,200,761 | 440,824 | |||||||||||||||||
Total Assets | $ | 17,419,863 | $ | 8,340,981 | $ | 17,928,976 | $ | 8,494,822 | $ | 15,277,331 | $ | 7,227,200 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Mortgage and other loans payable, net of deferred financing costs of $110,924 at 6/30/18, of which $47,503 is SLG share | $ | 9,433,738 | $ | 4,041,125 | $ | 9,876,879 | $ | 4,281,161 | $ | 9,412,101 | $ | 4,122,760 | |||||||||||
Accrued interest | 25,040 | 11,142 | 28,316 | 12,375 | 26,357 | 11,182 | |||||||||||||||||
Accounts payable and accrued expenses | 211,138 | 119,375 | 222,632 | 119,504 | 159,586 | 79,630 | |||||||||||||||||
Deferred revenue | 1,863,384 | 825,924 | 1,911,564 | 847,585 | 985,648 | 339,586 | |||||||||||||||||
Capitalized lease obligations | 190,801 | 95,401 | 189,968 | 94,984 | 189,152 | 94,576 | |||||||||||||||||
Security deposits | 36,619 | 13,733 | 36,420 | 13,685 | 33,700 | 12,214 | |||||||||||||||||
Other liabilities | 15,318 | 8,372 | 15,736 | 5,543 | 2,258 | 1,722 | |||||||||||||||||
Equity | 5,643,825 | 3,225,909 | 5,647,461 | 3,119,985 | 4,468,529 | 2,565,530 | |||||||||||||||||
Total Liabilities and Equity | $ | 17,419,863 | $ | 8,340,981 | $ | 17,928,976 | $ | 8,494,822 | $ | 15,277,331 | $ | 7,227,200 | |||||||||||
Supplemental Information | 16 | Second Quarter 2018 |
| ||
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) | | |
| ||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | |||||||||||||||||||||
Total | SLG Share | Total | SLG Share | Total | SLG Share | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental revenue, net | $ | 271,760 | $ | 117,214 | $ | 274,216 | $ | 116,685 | $ | 186,710 | $ | 77,912 | |||||||||||
Escalation and reimbursement revenues | 38,371 | 18,128 | 39,455 | 18,295 | 15,954 | 7,092 | |||||||||||||||||
Investment income | 1,995 | 1,708 | 3,369 | 3,086 | 5,073 | 3,916 | |||||||||||||||||
Other income | 2,069 | 1,041 | 3,901 | 1,293 | 2,851 | 1,162 | |||||||||||||||||
Total Revenues, net | $ | 314,195 | $ | 138,091 | $ | 320,941 | $ | 139,359 | $ | 210,588 | $ | 90,082 | |||||||||||
Expenses | |||||||||||||||||||||||
Operating expenses | $ | 50,356 | $ | 21,167 | $ | 59,773 | $ | 23,960 | $ | 39,147 | $ | 14,373 | |||||||||||
Ground rent | 4,457 | 2,137 | 4,393 | 2,106 | 4,179 | 1,996 | |||||||||||||||||
Real estate taxes | 55,838 | 23,996 | 57,027 | 24,113 | 35,170 | 13,633 | |||||||||||||||||
Transaction related costs, net of recoveries | — | — | — | — | 57 | 56 | |||||||||||||||||
Total Operating Expenses | $ | 110,651 | $ | 47,300 | $ | 121,193 | $ | 50,179 | $ | 78,553 | $ | 30,058 | |||||||||||
Operating Income | $ | 203,544 | $ | 90,791 | $ | 199,748 | $ | 89,180 | $ | 132,035 | $ | 60,024 | |||||||||||
Interest expense, net of interest income | $ | 91,648 | $ | 36,670 | $ | 89,741 | $ | 35,780 | $ | 59,702 | $ | 22,876 | |||||||||||
Amortization of deferred financing costs | 7,350 | 1,752 | 5,116 | 1,673 | 7,458 | 2,314 | |||||||||||||||||
Depreciation and amortization | 111,495 | 47,565 | 105,080 | 47,619 | 65,945 | 31,286 | |||||||||||||||||
Net (loss) income | $ | (6,949 | ) | $ | 4,804 | $ | (189 | ) | $ | 4,108 | $ | (1,070 | ) | $ | 3,548 | ||||||||
Real estate depreciation | 111,202 | 47,508 | 104,773 | 47,561 | 64,918 | 31,083 | |||||||||||||||||
FFO Contribution | $ | 104,253 | $ | 52,312 | $ | 104,584 | $ | 51,669 | $ | 63,848 | $ | 34,631 | |||||||||||
FAD Adjustments: | |||||||||||||||||||||||
Non real estate depreciation and amortization | $ | 7,643 | $ | 1,809 | $ | 5,423 | $ | 1,731 | $ | 8,485 | $ | 2,517 | |||||||||||
Straight-line rental income and other non-cash adjustments | (21,461 | ) | (11,312 | ) | (23,989 | ) | (12,428 | ) | (18,337 | ) | (10,349 | ) | |||||||||||
Second cycle tenant improvement | (32,279 | ) | (9,857 | ) | (14,006 | ) | (4,928 | ) | (2,869 | ) | (1,149 | ) | |||||||||||
Second cycle leasing commissions | (4,928 | ) | (1,977 | ) | (3,550 | ) | (871 | ) | (1,631 | ) | (561 | ) | |||||||||||
Recurring CAPEX | (4,211 | ) | (1,736 | ) | (622 | ) | (254 | ) | (2,577 | ) | (700 | ) | |||||||||||
Total FAD Adjustments | $ | (55,236 | ) | $ | (23,073 | ) | $ | (36,744 | ) | $ | (16,750 | ) | $ | (16,929 | ) | $ | (10,242 | ) | |||||
First cycle tenant improvement | $ | 5,644 | $ | 2,049 | $ | 53,400 | $ | 30,907 | $ | 13,500 | $ | 5,973 | |||||||||||
First cycle leasing commissions | $ | 2,760 | $ | 825 | $ | 860 | $ | 86 | $ | 3,477 | $ | 1,457 | |||||||||||
Development costs | $ | 124,920 | $ | 52,878 | $ | 113,259 | $ | 65,175 | $ | 117,819 | $ | 82,857 | |||||||||||
Redevelopment costs | $ | 9,384 | $ | 5,026 | $ | 7,022 | $ | 4,173 | $ | 7,599 | $ | 3,954 | |||||||||||
Capitalized Interest | $ | 12,448 | $ | 7,364 | $ | 12,331 | $ | 7,402 | $ | 5,899 | $ | 3,207 | |||||||||||
Supplemental Information | 17 | Second Quarter 2018 |
| ||
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) | | |
| ||
Six Months Ended | Six Months Ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | ||||||||||||||
Total | SLG Share | Total | SLG Share | ||||||||||||
Revenues | |||||||||||||||
Rental revenue, net | $ | 545,976 | $ | 233,899 | $ | 375,481 | $ | 154,195 | |||||||
Escalation and reimbursement revenues | 77,826 | 36,423 | 33,801 | 15,573 | |||||||||||
Investment income | 5,364 | 4,794 | 12,943 | 8,746 | |||||||||||
Other income | 5,970 | 2,334 | 4,884 | 2,121 | |||||||||||
Total Revenues, net | $ | 635,136 | $ | 277,450 | $ | 427,109 | $ | 180,635 | |||||||
Expenses | |||||||||||||||
Operating expenses | $ | 110,129 | $ | 45,127 | $ | 77,941 | $ | 28,615 | |||||||
Ground rent | 8,850 | 4,243 | 8,430 | 4,029 | |||||||||||
Real estate taxes | 112,865 | 48,109 | 70,109 | 26,698 | |||||||||||
Transaction related costs, net of recoveries | — | — | 146 | 110 | |||||||||||
Total Operating Expenses | $ | 231,844 | $ | 97,479 | $ | 156,626 | $ | 59,452 | |||||||
Operating Income | $ | 403,292 | $ | 179,971 | $ | 270,483 | $ | 121,183 | |||||||
Interest expense, net of interest income | $ | 181,389 | $ | 72,450 | $ | 115,030 | $ | 43,969 | |||||||
Amortization of deferred financing costs | 12,466 | 3,425 | 13,963 | 4,935 | |||||||||||
Depreciation and amortization | 216,575 | 95,184 | 137,109 | 62,501 | |||||||||||
Net (loss) income | $ | (7,138 | ) | $ | 8,912 | $ | 4,381 | $ | 9,778 | ||||||
Real estate depreciation | 215,975 | 95,069 | 135,830 | 62,255 | |||||||||||
FFO Contribution | $ | 208,837 | $ | 103,981 | $ | 140,211 | $ | 72,033 | |||||||
FAD Adjustments: | |||||||||||||||
Non real estate depreciation and amortization | $ | 13,066 | $ | 3,540 | $ | 15,242 | $ | 5,181 | |||||||
Straight-line rental income and other non-cash adjustments | (45,450 | ) | (23,740 | ) | (40,004 | ) | (21,475 | ) | |||||||
Second cycle tenant improvement | (46,285 | ) | (14,785 | ) | (4,114 | ) | (1,776 | ) | |||||||
Second cycle leasing commissions | (8,478 | ) | (2,848 | ) | (1,902 | ) | (715 | ) | |||||||
Recurring CAPEX | (4,833 | ) | (1,990 | ) | (2,917 | ) | (905 | ) | |||||||
Total FAD Adjustments | $ | (91,980 | ) | $ | (39,823 | ) | $ | (33,695 | ) | $ | (19,690 | ) | |||
First cycle tenant improvement | $ | 59,044 | $ | 32,956 | $ | 25,798 | $ | 9,825 | |||||||
First cycle leasing commissions | $ | 3,620 | $ | 911 | $ | 6,563 | $ | 2,496 | |||||||
Development costs | $ | 238,179 | $ | 118,053 | $ | 121,992 | $ | 84,082 | |||||||
Redevelopment costs | $ | 16,406 | $ | 9,199 | $ | 23,814 | $ | 12,398 | |||||||
Capitalized Interest | $ | 24,779 | $ | 14,766 | $ | 11,356 | $ | 6,173 | |||||||
Supplemental Information | 18 | Second Quarter 2018 |
| ||
SELECTED FINANCIAL DATA Net Operating Income Unaudited (Dollars in Thousands) | | |
| ||
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017(2) | ||||||||||||||||||
Net Operating Income (1) | $ | 133,478 | $ | 185,974 | $ | 135,065 | $ | 268,543 | $ | 371,099 | ||||||||||||
SLG share of property NOI from unconsolidated JVs | 88,915 | 56,072 | 85,917 | 174,833 | 112,536 | |||||||||||||||||
NOI including SLG share of unconsolidated JVs | $ | 222,393 | $ | 242,046 | $ | 220,982 | $ | 443,376 | $ | 483,635 | ||||||||||||
Partners' share of NOI - consolidated JVs | (415 | ) | (9,589 | ) | (647 | ) | (1,061 | ) | (19,356 | ) | ||||||||||||
NOI - SLG share | $ | 221,978 | $ | 232,457 | $ | 220,335 | $ | 442,315 | $ | 464,279 | ||||||||||||
NOI, including SLG share of unconsolidated JVs | $ | 222,393 | $ | 242,046 | $ | 220,982 | $ | 443,376 | $ | 483,635 | ||||||||||||
Free rent (net of amortization) | (3,191 | ) | (6,057 | ) | (6,128 | ) | (9,319 | ) | (10,448 | ) | ||||||||||||
Net FAS 141 adjustment | (5,843 | ) | (8,675 | ) | (6,373 | ) | (12,216 | ) | (16,534 | ) | ||||||||||||
Straight-line revenue adjustment | (4,862 | ) | (14,059 | ) | (4,965 | ) | (9,827 | ) | (29,960 | ) | ||||||||||||
Allowance for straight-line tenant credit loss | (1,014 | ) | (108 | ) | (37 | ) | (1,051 | ) | (1,052 | ) | ||||||||||||
Ground lease straight-line adjustment | 1,053 | 959 | 941 | 1,993 | 1,951 | |||||||||||||||||
Cash NOI, including SLG share of unconsolidated JVs | $ | 208,536 | $ | 214,106 | $ | 204,420 | $ | 412,956 | $ | 427,592 | ||||||||||||
Partners' share of cash NOI - consolidated JVs | (478 | ) | (7,845 | ) | (596 | ) | (1,075 | ) | (15,269 | ) | ||||||||||||
Cash NOI - SLG share | $ | 208,058 | $ | 206,261 | $ | 203,824 | $ | 411,881 | $ | 412,323 | ||||||||||||
(1) Includes SL Green Management Corp. and Emerge 212. Excludes lease termination income. | ||||||||||||||||||||||
(2) Excludes 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 June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||||
NOI | Cash NOI | NOI | Cash NOI | ||||||||||||||
Manhattan Operating Properties | $ | 190,633 | $ | 179,138 | $ | 370,904 | $ | 347,942 | |||||||||
Suburban Operating Properties | 8,342 | 8,260 | 16,971 | 16,238 | |||||||||||||
Retail Operating Properties | 10,810 | 10,351 | 21,783 | 20,615 | |||||||||||||
Residential Operating Properties | 7,442 | 7,647 | 14,737 | 14,393 | |||||||||||||
Development/Redevelopment/Land | 2,118 | 1,398 | 6,698 | 4,852 | |||||||||||||
Total Operating and Development | 219,345 | 206,794 | 431,093 | 404,040 | |||||||||||||
Property Dispositions | 3,625 | 2,135 | 9,034 | 5,417 | |||||||||||||
Other (2) | (992 | ) | (871 | ) | 2,188 | 2,424 | |||||||||||
Total | $ | 221,978 | $ | 208,058 | $ | 442,315 | $ | 411,881 | |||||||||
(1) Portfolio composition consistent with property tables found on pages 30-37 | |||||||||||||||||
(2) Includes SL Green Management Corp., Emerge 212 and Belmont | |||||||||||||||||
Supplemental Information | 19 | Second Quarter 2018 |
| ||
SELECTED FINANCIAL DATA 2018 Same Store Net Operating Income - Wholly Owned and Consolidated JVs Unaudited (Dollars in Thousands) | | |
| ||
Three Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | March 31, | June 30, | June 30, | |||||||||||||||||||||||
2018 | 2017 | % | 2018 | 2018 | 2017 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 207,782 | $ | 205,173 | 1.3 | % | $ | 206,685 | $ | 414,467 | $ | 412,296 | 0.5 | % | |||||||||||||
Escalation & reimbursement revenues | 26,510 | 24,743 | 7.1 | % | 26,777 | 53,287 | 50,474 | 5.6 | % | ||||||||||||||||||
Other income | 5,125 | 1,644 | 211.7 | % | 3,912 | 9,037 | 2,637 | 242.7 | % | ||||||||||||||||||
Total Revenues | $ | 239,417 | $ | 231,560 | 3.4 | % | $ | 237,374 | $ | 476,791 | $ | 465,407 | 2.4 | % | |||||||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 51,189 | $ | 49,533 | 3.3 | % | $ | 53,767 | $ | 104,957 | $ | 101,731 | 3.2 | % | |||||||||||||
Ground rent | 8,308 | 8,308 | — | % | 8,308 | 16,616 | 16,616 | — | % | ||||||||||||||||||
Real estate taxes | 45,013 | 42,529 | 5.8 | % | 44,703 | 89,716 | 85,014 | 5.5 | % | ||||||||||||||||||
$ | 104,510 | $ | 100,370 | 4.1 | % | $ | 106,778 | $ | 211,289 | $ | 203,361 | 3.9 | % | ||||||||||||||
Operating Income | $ | 134,907 | $ | 131,190 | 2.8 | % | $ | 130,596 | $ | 265,502 | $ | 262,046 | 1.3 | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 27,339 | $ | 27,846 | (1.8 | )% | $ | 26,990 | $ | 54,330 | $ | 56,168 | (3.3 | )% | |||||||||||||
Depreciation & amortization | 62,084 | 61,533 | 0.9 | % | 61,609 | 123,693 | 124,091 | (0.3 | )% | ||||||||||||||||||
Income before noncontrolling interest | $ | 45,484 | $ | 41,811 | 8.8 | % | $ | 41,997 | $ | 87,479 | $ | 81,787 | 7.0 | % | |||||||||||||
Plus: | Real estate depreciation & amortization | 62,017 | 61,466 | 0.9 | % | 61,541 | 123,558 | 123,957 | (0.3 | )% | |||||||||||||||||
FFO Contribution | $ | 107,501 | $ | 103,277 | 4.1 | % | $ | 103,538 | $ | 211,037 | $ | 205,744 | 2.6 | % | |||||||||||||
Less: | Non–building revenue | 4,747 | 901 | 426.9 | % | 113 | 4,861 | 1,383 | 251.5 | % | |||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 27,339 | 27,846 | (1.8 | )% | 26,990 | 54,330 | 56,168 | (3.3 | )% | |||||||||||||||||
Non-real estate depreciation | 67 | 67 | — | % | 68 | 135 | 134 | 0.7 | % | ||||||||||||||||||
NOI | $ | 130,160 | $ | 130,289 | (0.1 | )% | $ | 130,483 | $ | 260,641 | $ | 260,663 | — | % | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Less: | Free rent (net of amortization) | $ | (385 | ) | $ | 4,100 | (109.4 | )% | $ | (951 | ) | $ | (1,336 | ) | $ | 7,604 | (117.6 | )% | |||||||||
Straightline revenue adjustment | 815 | 2,570 | (68.3 | )% | 3,002 | 3,817 | 6,479 | (41.1 | )% | ||||||||||||||||||
Rental income - FAS 141 | 1,238 | 1,121 | 10.4 | % | 1,684 | 2,921 | 2,315 | 26.2 | % | ||||||||||||||||||
Plus: | Ground lease straight-line adjustment | 524 | 524 | — | % | 524 | 1,048 | 1,048 | — | % | |||||||||||||||||
Allowance for S/L tenant credit loss | (1,044 | ) | 45 | (2,420 | )% | (37 | ) | (1,082 | ) | (590 | ) | 83.4 | % | ||||||||||||||
Cash NOI | $ | 127,972 | $ | 123,067 | 4.0 | % | $ | 127,235 | $ | 255,205 | $ | 244,723 | 4.3 | % | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 55.5 | % | 56.5 | % | 55.0 | % | 55.2 | % | 56.2 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 54.5 | % | 53.4 | % | 53.6 | % | 54.1 | % | 52.7 | % | |||||||||||||||||
NOI before ground rent/real estate revenue, net | 59.0 | % | 60.1 | % | 58.5 | % | 58.7 | % | 59.8 | % | |||||||||||||||||
Cash NOI before ground rent/real estate revenue, net | 57.8 | % | 56.7 | % | 56.9 | % | 57.4 | % | 56.1 | % | |||||||||||||||||
Supplemental Information | 20 | Second Quarter 2018 |
| ||
SELECTED FINANCIAL DATA 2018 Same Store Net Operating Income - Unconsolidated JVs Unaudited (Dollars in Thousands, SLG Share) | | |
| ||
Three Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | March 31, | June 30, | June 30, | |||||||||||||||||||||||
2018 | 2017 | % | 2018 | 2018 | 2017 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 86,092 | $ | 83,467 | 3.1 | % | $ | 85,036 | $ | 171,127 | $ | 165,348 | 3.5 | % | |||||||||||||
Escalation & reimbursement revenues | 11,780 | 9,771 | 20.6 | % | 11,997 | 23,777 | 20,993 | 13.3 | % | ||||||||||||||||||
Other income | 162 | 401 | (59.6 | )% | 229 | 391 | 738 | (47.0 | )% | ||||||||||||||||||
Total Revenues | $ | 98,034 | $ | 93,639 | 4.7 | % | $ | 97,262 | $ | 195,295 | $ | 187,079 | 4.4 | % | |||||||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 15,323 | $ | 16,387 | (6.5 | )% | $ | 16,791 | $ | 32,114 | $ | 33,309 | (3.6 | )% | |||||||||||||
Ground rent | 1,952 | 1,919 | — | % | 2,044 | 3,995 | 3,838 | — | % | ||||||||||||||||||
Real estate taxes | 16,925 | 16,956 | (0.2 | )% | 16,949 | 33,874 | 33,540 | 1.0 | % | ||||||||||||||||||
$ | 34,200 | $ | 35,262 | (3.0 | )% | $ | 35,784 | $ | 69,983 | $ | 70,687 | (1.0 | )% | ||||||||||||||
Operating Income | $ | 63,834 | $ | 58,377 | 9.3 | % | $ | 61,478 | $ | 125,312 | $ | 116,392 | 7.7 | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 29,597 | $ | 27,962 | 5.8 | % | $ | 28,107 | $ | 57,704 | $ | 54,822 | 5.3 | % | |||||||||||||
Depreciation & amortization | 33,865 | 31,073 | 9.0 | % | 32,199 | 66,063 | 63,576 | 3.9 | % | ||||||||||||||||||
Income before noncontrolling interest | $ | 372 | $ | (658 | ) | (156.5 | )% | $ | 1,172 | $ | 1,545 | $ | (2,006 | ) | (177.0 | )% | |||||||||||
Plus: | Real estate depreciation & amortization | 33,808 | 30,870 | 9.5 | % | 32,142 | 65,951 | 63,331 | 4.1 | % | |||||||||||||||||
FFO Contribution | $ | 34,180 | $ | 30,212 | 13.1 | % | $ | 33,314 | $ | 67,496 | $ | 61,325 | 10.1 | % | |||||||||||||
Less: | Non–building revenue | 128 | 367 | (65.1 | )% | 192 | 320 | 680 | (52.9 | )% | |||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 29,597 | 27,962 | 5.8 | % | 28,107 | 57,704 | 54,822 | 5.3 | % | |||||||||||||||||
Non-real estate depreciation | 57 | 203 | — | % | 57 | 112 | 245 | (54.3 | )% | ||||||||||||||||||
NOI | $ | 63,706 | $ | 58,010 | 9.8 | % | $ | 61,286 | $ | 124,992 | $ | 115,712 | 8.0 | % | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Less: | Free rent (net of amortization) | $ | 52 | $ | 808 | (93.6 | )% | $ | 1,213 | $ | 1,264 | $ | 1,583 | (20.2 | )% | ||||||||||||
Straightline revenue adjustment | 4,000 | 4,441 | (9.9 | )% | 3,147 | 7,147 | 9,175 | (22.1 | )% | ||||||||||||||||||
Rental income - FAS 141 | 1,261 | 3,320 | (62.0 | )% | 1,182 | 2,443 | 7,013 | (65.2 | )% | ||||||||||||||||||
Plus: | Ground lease straight-line adjustment | 258 | 277 | — | % | 382 | 640 | 562 | — | % | |||||||||||||||||
Allowance for S/L tenant credit loss | — | 86 | — | % | — | — | 86 | — | % | ||||||||||||||||||
Cash NOI | $ | 58,651 | $ | 49,804 | 17.8 | % | $ | 56,126 | $ | 114,778 | $ | 98,589 | 16.4 | % | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 65.1 | % | 62.2 | % | 63.1 | % | 64.1 | % | 62.1 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 59.9 | % | 53.4 | % | 57.8 | % | 58.9 | % | 52.9 | % | |||||||||||||||||
NOI before ground rent/real estate revenue, net | 67.1 | % | 64.3 | % | 65.2 | % | 66.2 | % | 64.1 | % | |||||||||||||||||
Cash NOI before ground rent/real estate revenue, net | 61.6 | % | 55.2 | % | 59.5 | % | 60.6 | % | 54.6 | % | |||||||||||||||||
Supplemental Information | 21 | Second Quarter 2018 |
| ||
SELECTED FINANCIAL DATA 2018 Same Store Net Operating Income Unaudited (Dollars in Thousands) | | |
| ||
Three Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | March 31, | June 30, | June 30, | |||||||||||||||||||||||
2018 | 2017 | % | 2018 | 2018 | 2017 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 207,782 | $ | 205,173 | 1.3 | % | $ | 206,685 | $ | 414,467 | $ | 412,296 | 0.5 | % | |||||||||||||
Escalation & reimbursement revenues | 26,510 | 24,743 | 7.1 | % | 26,777 | 53,287 | 50,474 | 5.6 | % | ||||||||||||||||||
Other income | 5,125 | 1,644 | 211.7 | % | 3,912 | 9,037 | 2,637 | 242.7 | % | ||||||||||||||||||
Total Revenues | $ | 239,417 | $ | 231,560 | 3.4 | % | $ | 237,374 | $ | 476,791 | $ | 465,407 | 2.4 | % | |||||||||||||
Equity in Net Income from Unconsolidated Joint Ventures (1) | $ | 372 | $ | (658 | ) | (156.5 | )% | $ | 1,172 | $ | 1,545 | $ | (2,006 | ) | (177.0 | )% | |||||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 51,189 | $ | 49,533 | 3.3 | % | $ | 53,767 | $ | 104,957 | $ | 101,731 | 3.2 | % | |||||||||||||
Ground rent | 8,308 | 8,308 | — | % | 8,308 | 16,616 | 16,616 | — | % | ||||||||||||||||||
Real estate taxes | 45,013 | 42,529 | 5.8 | % | 44,703 | 89,716 | 85,014 | 5.5 | % | ||||||||||||||||||
$ | 104,510 | $ | 100,370 | 4.1 | % | $ | 106,778 | $ | 211,289 | $ | 203,361 | 3.9 | % | ||||||||||||||
Operating Income | $ | 135,279 | $ | 130,532 | 3.6 | % | $ | 131,768 | $ | 267,047 | $ | 260,040 | 2.7 | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 27,339 | $ | 27,846 | (1.8 | )% | $ | 26,990 | $ | 54,330 | $ | 56,168 | (3.3 | )% | |||||||||||||
Depreciation & amortization | 62,084 | 61,533 | 0.9 | % | 61,609 | 123,693 | 124,091 | (0.3 | )% | ||||||||||||||||||
Income before noncontrolling interest | $ | 45,856 | $ | 41,153 | 11.4 | % | $ | 43,169 | $ | 89,024 | $ | 79,781 | 11.6 | % | |||||||||||||
Plus: | Real estate depreciation & amortization | 62,017 | 61,466 | 0.9 | % | 61,541 | 123,558 | 123,957 | (0.3 | )% | |||||||||||||||||
Joint Ventures Real estate depreciation & amortization (1) | 33,808 | 30,870 | 9.5 | % | 32,142 | 65,951 | $ | 63,331 | 4.1 | % | |||||||||||||||||
FFO Contribution | $ | 141,681 | $ | 133,489 | 6.1 | % | $ | 136,852 | $ | 278,533 | $ | 267,069 | 4.3 | % | |||||||||||||
Less: | Non–building revenue | $ | 4,747 | $ | 901 | 426.9 | % | $ | 113 | $ | 4,861 | $ | 1,383 | 251.5 | % | ||||||||||||
Joint Ventures Non–building revenue (1) | 128 | 367 | (65.1 | )% | 192 | 320 | 680 | (52.9 | )% | ||||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 27,339 | 27,846 | (1.8 | )% | 26,990 | 54,330 | 56,168 | (3.3 | )% | |||||||||||||||||
Joint Ventures Interest expense & amortization of financing costs (1) | 29,597 | 27,962 | 5.8 | % | 28,107 | 57,704 | 54,822 | 5.3 | % | ||||||||||||||||||
Non-real estate depreciation | 67 | 67 | — | % | 68 | 135 | 134 | 0.7 | % | ||||||||||||||||||
Joint Ventures Non-real estate depreciation (1) | 57 | 203 | (71.9 | )% | 57 | 112 | 245 | (54.3 | )% | ||||||||||||||||||
NOI | $ | 193,866 | $ | 188,299 | 3.0 | % | $ | 191,769 | $ | 385,633 | $ | 376,375 | 2.5 | % | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Non-cash adjustments | $ | (2,188 | ) | $ | (7,222 | ) | (69.7 | )% | $ | (3,248 | ) | $ | (5,436 | ) | $ | (15,940 | ) | (65.9 | )% | ||||||||
Joint Venture non-cash adjustments (1) | (5,055 | ) | (8,206 | ) | (38.4 | )% | (5,160 | ) | (10,214 | ) | (17,123 | ) | (40.3 | )% | |||||||||||||
Cash NOI | $ | 186,623 | $ | 172,871 | 8.0 | % | $ | 183,361 | $ | 369,983 | $ | 343,312 | 7.8 | % | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 58.3 | % | 58.1 | % | 57.4 | % | 57.8 | % | 57.9 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 56.1 | % | 53.4 | % | 54.8 | % | 55.5 | % | 52.8 | % | |||||||||||||||||
NOI before ground rent/real estate revenue, net | 61.4 | % | 61.3 | % | 60.5 | % | 60.9 | % | 61.0 | % | |||||||||||||||||
Cash NOI before ground rent/real estate revenue, net | 59.0 | % | 56.3 | % | 57.7 | % | 58.3 | % | 55.7 | % | |||||||||||||||||
(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 | 22 | Second Quarter 2018 |
| ||
DEBT SUMMARY SCHEDULE Consolidated Unaudited (Dollars in Thousands) | | |
| ||
Principal | 2018 | Initial | Principal | As-Of | ||||||||||||||||||||||
Ownership | Outstanding | Principal | Maturity | Due at | Right | Earliest | ||||||||||||||||||||
Fixed rate debt | Interest (%) | 6/30/2018 | Coupon (1) | Amortization | Date | Maturity | Extension | Prepayment (2) | ||||||||||||||||||
Secured fixed rate debt | ||||||||||||||||||||||||||
1 Madison Avenue | 100.0 | $ | 469,564 | 5.91% | $ | 33,602 | May-20 | $ | 404,531 | — | Nov-19 | |||||||||||||||
762 Madison Avenue | 90.0 | 771 | 5.00% | — | Feb-22 | 771 | — | Open | ||||||||||||||||||
100 Church Street | 100.0 | 215,223 | 4.68% | 3,734 | Jul-22 | 197,784 | — | Apr-22 | ||||||||||||||||||
420 Lexington Avenue | 100.0 | 300,000 | 3.99% | — | Oct-24 | 272,749 | — | Jul-24 | ||||||||||||||||||
400 East 58th Street | 90.0 | 40,000 | 3.00% | 69 | Nov-26 | 33,840 | — | Open | ||||||||||||||||||
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 | 36,138 | 3.58% | 556 | Feb-27 | 29,527 | — | Open | ||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | 250,000 | 4.17% | — | Feb-27 | 250,000 | — | Open | ||||||||||||||||||
$ | 1,861,696 | 4.66% | $ | 37,961 | $ | 1,739,202 | ||||||||||||||||||||
Unsecured fixed rate debt | ||||||||||||||||||||||||||
Unsecured notes | $ | 249,991 | 5.00% | $ | — | Aug-18 | $ | 250,000 | — | Open | ||||||||||||||||
Unsecured notes | 250,000 | 7.75% | — | Mar-20 | 250,000 | — | Open | |||||||||||||||||||
Unsecured notes | 499,539 | 3.25% | — | Oct-22 | 500,000 | — | Open | |||||||||||||||||||
Unsecured notes | 304,673 | 4.50% | — | Dec-22 | 300,000 | — | Open | |||||||||||||||||||
Term loan (swapped) | 200,000 | 3.03% | — | Mar-23 | (3) | 200,000 | — | Open | ||||||||||||||||||
Term loan (swapped) | 300,000 | 2.24% | — | Mar-23 | (4) | 300,000 | — | Open | ||||||||||||||||||
Unsecured notes | 100,000 | 4.27% | — | Dec-25 | 100,000 | — | Open | |||||||||||||||||||
$ | 1,904,203 | 4.14% | $ | — | $ | 1,900,000 | ||||||||||||||||||||
Total Fixed Rate Debt | $ | 3,765,899 | 4.40% | $ | 37,961 | $ | 3,639,202 | |||||||||||||||||||
Floating rate debt | ||||||||||||||||||||||||||
Secured floating rate debt | ||||||||||||||||||||||||||
719 Seventh Avenue (LIBOR + 305 bps) | 75.0 | $ | 44,000 | 5.14% | $ | — | Feb-19 | $ | 44,000 | — | Open | |||||||||||||||
187 Broadway & 5-7 Dey Street (LIBOR + 269.5 bps) | 100.0 | 58,000 | 4.79% | — | May-19 | 58,000 | — | Open | ||||||||||||||||||
Debt & preferred equity facility (LIBOR + 234 bps) | 300,000 | 4.43% | (5) | — | Jun-19 | 300,000 | Jun-20 | Open | ||||||||||||||||||
220 East 42nd St. (LIBOR + 160 bps) | 100.0 | 275,000 | 3.69% | — | Oct-20 | 275,000 | — | Open | ||||||||||||||||||
$ | 677,000 | 4.20% | $ | — | $ | 677,000 | ||||||||||||||||||||
Unsecured floating rate debt | ||||||||||||||||||||||||||
Revolving credit facility (LIBOR + 100 bps) | $ | 360,000 | 3.09% | $ | — | Mar-22 | $ | 360,000 | Mar-23 | Open | ||||||||||||||||
Term loan (LIBOR + 110 bps) | 800,000 | 3.19% | — | Mar-23 | 800,000 | — | Open | |||||||||||||||||||
Term loan (LIBOR + 165 bps) | 200,000 | 3.74% | — | Nov-24 | 200,000 | — | Open | |||||||||||||||||||
Junior subordinated deferrable interest debentures (3mo. LIBOR + 125 bps) | 100,000 | 3.59% | — | Jul-35 | 100,000 | — | Open | |||||||||||||||||||
$ | 1,460,000 | 3.27% | $ | — | $ | 1,460,000 | ||||||||||||||||||||
Total Floating Rate Debt | $ | 2,137,000 | 3.56% | $ | — | $ | 2,137,000 | |||||||||||||||||||
Total Debt - Consolidated | $ | 5,902,899 | 4.10% | $ | 37,961 | $ | 5,776,202 | |||||||||||||||||||
Deferred financing costs | (45,488 | ) | ||||||||||||||||||||||||
Total Debt - Consolidated, net | $ | 5,857,411 | 4.10% | |||||||||||||||||||||||
Total Debt - Joint Venture, net | $ | 4,041,125 | 4.12% | |||||||||||||||||||||||
Total Debt including SLG share of unconsolidated JV Debt | $ | 9,991,527 | 4.11% | |||||||||||||||||||||||
Weighted Average Balance & Interest Rate for the quarter, including SLG share of JV Debt | $ | 10,082,147 | 4.06% | |||||||||||||||||||||||
(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) Loans noted as "open" may be subject to certain fees, premiums or penalties. | ||||||||||||||||||||||||||
(3) The interest rate swaps mature in November 2020. | ||||||||||||||||||||||||||
(4) The interest rate swaps mature in July 2023. | ||||||||||||||||||||||||||
(5) The debt and preferred equity facility bears interest on a floating rate basis at a spread to 1-mo LIBOR based on the pledged collateral and advance rate. | ||||||||||||||||||||||||||
Supplemental Information | 23 | Second Quarter 2018 |
| ||
DEBT SUMMARY SCHEDULE Unconsolidated JVs Unaudited (Dollars in Thousands) | | |
| ||
Principal Outstanding | 2018 | Initial | Principal | As-Of | |||||||||||||||||||||||||
Ownership | 6/30/2018 | 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 (2) | ||||||||||||||||||||
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 (mortgage) | 50.0 | 210,000 | 105,000 | 4.46% | — | Oct-22 | 105,000 | — | Open | ||||||||||||||||||||
650 Fifth Avenue (mezzanine) | 50.0 | 65,000 | 32,500 | 5.45% | — | Oct-22 | 32,500 | — | Open | ||||||||||||||||||||
21 East 66th Street | 32.3 | 12,000 | 3,874 | 3.60% | — | Apr-23 | 3,874 | — | Open | ||||||||||||||||||||
919 Third Avenue | 51.0 | 500,000 | 255,000 | 5.12% | — | Jun-23 | 255,000 | — | Feb-23 | ||||||||||||||||||||
3 Columbus Circle | 48.9 | 350,000 | 171,150 | 3.61% | — | Mar-25 | 171,150 | — | Sep-24 | ||||||||||||||||||||
1515 Broadway | 56.9 | 864,238 | 491,483 | 3.93% | 9,470 | Mar-25 | 419,372 | — | 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% | 70 | Nov-26 | 35,889 | — | Open | ||||||||||||||||||||
Worldwide Plaza | 24.4 | 1,200,000 | 292,200 | 3.98% | — | Nov-27 | 292,200 | — | Jul-27 | ||||||||||||||||||||
Stonehenge Portfolio | Various | 323,058 | (3) | 20,381 | 4.20% | 449 | Various | (3) | 18,792 | — | Open | ||||||||||||||||||
Total Fixed Rate Debt | $ | 6,026,624 | $ | 2,517,094 | 4.03% | (4) | $ | 9,989 | $ | 2,438,283 | |||||||||||||||||||
Floating rate debt | |||||||||||||||||||||||||||||
724 Fifth Avenue (LIBOR + 243 bps) | 50.0 | $ | 275,000 | (5) | $ | 137,500 | 4.51% | $ | — | Apr-19 | $ | 137,500 | — | Open | |||||||||||||||
280 Park Avenue (LIBOR + 173 bps) | 50.0 | 1,200,000 | 600,000 | 3.82% | — | Sep-19 | 600,000 | Sep-24 | Open | ||||||||||||||||||||
121 Greene Street (LIBOR + 150 bps) | 50.0 | 15,000 | 7,500 | 3.59% | — | Nov-19 | 7,500 | — | Open | ||||||||||||||||||||
10 East 53rd Street (LIBOR + 225 bps) | 55.0 | 170,000 | 93,500 | 4.34% | — | Feb-20 | 93,500 | — | Open | ||||||||||||||||||||
131-137 Spring Street (LIBOR + 155 bps) | 20.0 | 141,000 | 28,200 | 3.64% | — | Aug-20 | 28,200 | — | Open | ||||||||||||||||||||
1552 Broadway (LIBOR + 265 bps) | 50.0 | 195,000 | 97,500 | 4.74% | — | Oct-20 | 97,500 | — | Open | ||||||||||||||||||||
55 West 46th Street - Tower 46 (LIBOR + 212.5 bps) | 25.0 | 174,430 | 43,607 | 4.22% | — | Nov-20 | 43,607 | — | Open | ||||||||||||||||||||
11 West 34th Street (LIBOR + 145 bps) | 30.0 | 23,000 | 6,900 | 3.54% | — | Jan-21 | 6,900 | Jan-23 | Open | ||||||||||||||||||||
100 Park Avenue (LIBOR + 175 bps) | 49.9 | 360,000 | 179,640 | 3.84% | — | Feb-21 | 175,859 | — | Open | ||||||||||||||||||||
One Vanderbilt (LIBOR + 350 bps) | 71.0 | 375,000 | 266,288 | 5.59% | — | Sep-21 | 266,288 | — | Open | ||||||||||||||||||||
605 West 42nd Street - Sky (LIBOR + 144 bps) | 20.0 | 550,000 | 110,000 | 3.53% | — | Aug-27 | 110,000 | — | Open | ||||||||||||||||||||
21 East 66th Street (T 12 mos + 275 bps) | 32.3 | 1,608 | 519 | 5.08% | 27 | Jun-33 | 4 | — | Open | ||||||||||||||||||||
Stonehenge Portfolio (Various) | Various | 38,000 | (6) | 380 | 3.49% | — | Various | 380 | — | Open | |||||||||||||||||||
Total Floating Rate Debt | $ | 3,518,038 | $ | 1,571,534 | 4.26% | (4) | $ | 27 | $ | 1,567,238 | |||||||||||||||||||
Total unconsolidated JV Debt | $ | 9,544,662 | $ | 4,088,628 | 4.12% | (4) | $ | 10,016 | $ | 4,005,521 | |||||||||||||||||||
Deferred financing costs | (110,924 | ) | (47,503 | ) | |||||||||||||||||||||||||
Total unconsolidated JV Debt, net | $ | 9,433,738 | $ | 4,041,125 | 4.12% | ||||||||||||||||||||||||
(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) Loans noted as "open" may be subject to certain fees, premiums or penalties. | |||||||||||||||||||||||||||||
(3) Amount is comprised of $135.7 million, $54.8 million, and $132.6 million in fixed-rate mortgages that mature in August 2019, June 2024, and April 2028, respectively. | |||||||||||||||||||||||||||||
(4) The weighted average coupon is calculated based on SL Green's share of the outstanding debt. | |||||||||||||||||||||||||||||
(5) Property is under contract for sale as of June 30, 2018. | |||||||||||||||||||||||||||||
(6) Amount is comprised of $38.0 million in floating-rate mortgages that mature in January 2021. | |||||||||||||||||||||||||||||
SL GREEN REALTY CORP. | Composition of Debt | ||||||||||||||||||||||||||||
Revolving Credit Facility Covenants | Fixed Rate Debt | ||||||||||||||||||||||||||||
Actual | Required | Consolidated | $ | 3,765,899 | |||||||||||||||||||||||||
Total Debt / Total Assets | 39.9% | Less than 60% | SLG Share of JV | 2,517,094 | |||||||||||||||||||||||||
Fixed Charge Coverage | 2.33x | Greater than 1.4x | Total Fixed Rate Debt | $ | 6,282,993 | 62.9% | |||||||||||||||||||||||
Maximum Secured Indebtedness | 17.7% | Less than 50% | |||||||||||||||||||||||||||
Maximum Unencumbered Leverage Ratio | 47.5% | Less than 60% | Floating Rate Debt | ||||||||||||||||||||||||||
Consolidated | $ | 2,137,000 | |||||||||||||||||||||||||||
Unsecured Notes Covenants | SLG Share of JV | 1,571,534 | |||||||||||||||||||||||||||
Actual | Required | 3,708,534 | |||||||||||||||||||||||||||
Total Debt / Total Assets | 44.4% | Less than 60% | Debt & Preferred Equity and Other Investments | (1,624,012 | ) | ||||||||||||||||||||||||
Secured Debt / Total Assets | 16.8% | Less than 40% | Total Floating Rate Debt | $ | 2,084,522 | 20.9% | |||||||||||||||||||||||
Debt Service Coverage | 5.11x | Greater than 1.5x | |||||||||||||||||||||||||||
Unencumbered Assets / Unsecured Debt | 304.0% | Greater than 150% | Total Debt | $ | 9,991,527 | ||||||||||||||||||||||||
Supplemental Information | 24 | Second Quarter 2018 |
| ||
DEBT SUMMARY SCHEDULE Reckson Operating Partnership Unaudited (Dollars in Thousands) |  | |
| ||
Principal | 2018 | Initial | Principal | As-Of | ||||||||||||||||||||||
Ownership | Outstanding | Principal | Maturity | Due at | Right | Earliest | ||||||||||||||||||||
Fixed rate debt | Interest (%) | 6/30/2018 | Coupon (1) | Amortization | Date | Maturity | Extension | Prepayment (2) | ||||||||||||||||||
Secured fixed rate debt | ||||||||||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | $ | 250,000 | 4.17 | % | $ | — | Feb-27 | $ | 250,000 | — | Open | ||||||||||||||
$ | 250,000 | 4.17 | % | $ | — | $ | 250,000 | |||||||||||||||||||
Unsecured fixed rate debt | ||||||||||||||||||||||||||
Unsecured notes | $ | 249,991 | 5.00 | % | $ | — | Aug-18 | $ | 250,000 | — | Open | |||||||||||||||
Unsecured notes | 250,000 | 7.75 | % | — | Mar-20 | 250,000 | — | Open | ||||||||||||||||||
Unsecured notes | 304,673 | 4.50 | % | — | Dec-22 | 300,000 | — | Open | ||||||||||||||||||
Unsecured notes | 100,000 | 4.27 | % | — | Dec-25 | 100,000 | — | Open | ||||||||||||||||||
$ | 904,664 | 5.51 | % | $ | — | $ | 900,000 | |||||||||||||||||||
Total Fixed Rate Debt | $ | 1,154,664 | 5.22 | % | $ | — | $ | 1,150,000 | ||||||||||||||||||
Floating rate debt | ||||||||||||||||||||||||||
Secured floating rate debt | ||||||||||||||||||||||||||
Debt & preferred equity facility (LIBOR + 234 bps) | $ | 300,000 | 4.43 | % | (3) | $ | — | Jun-19 | $ | 300,000 | Jun-20 | Open | ||||||||||||||
$ | 300,000 | 4.43 | % | $ | — | $ | 300,000 | |||||||||||||||||||
Total Floating Rate Debt | $ | 300,000 | 4.43 | % | $ | — | $ | 300,000 | ||||||||||||||||||
Total Debt - Consolidated | $ | 1,454,664 | 5.06 | % | $ | — | $ | 1,450,000 | ||||||||||||||||||
(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) Loans noted as "open" may be subject to certain fees, premiums or penalties. | ||||||||||||||||||||||||||
(3) The debt and preferred equity facility bears interest on a floating rate basis at a spread to 1-mo LIBOR based on the pledged collateral and advance rate. | ||||||||||||||||||||||||||
RECKSON OPERATING PARTNERSHIP, L.P. | ||||||||||||||||||||||||||
Unsecured Notes Covenants | ||||||||||||||||||||||||||
Actual | Required | |||||||||||||||||||||||||
Total Debt / Total Assets | 44.4% | Less than 60% | ||||||||||||||||||||||||
Secured Debt / Total Assets | 16.8% | Less than 40% | ||||||||||||||||||||||||
Debt Service Coverage | 5.11x | Greater than 1.5x | ||||||||||||||||||||||||
Unencumbered Assets / Unsecured Debt | 304.0% | Greater than 150% | ||||||||||||||||||||||||
Supplemental Information | 25 | Second Quarter 2018 |
| ||
SUMMARY OF GROUND LEASE ARRANGEMENTS Unaudited (Dollars in Thousands) | | |
| ||
Deferred Land | |||||||||||||||||||||||||||||
2018 Scheduled | 2019 Scheduled | 2020 Scheduled | 2021 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 | 2,250 | 805 | 2027 | (3) | ||||||||||||||||||||||
711 Third Avenue | 5,500 | 5,500 | 5,500 | 5,500 | 1,130 | 2033 | (4) | ||||||||||||||||||||||
1185 Avenue of the Americas | 6,909 | 6,909 | 6,909 | 6,909 | — | 2043 | |||||||||||||||||||||||
420 Lexington Avenue | 10,899 | 10,899 | 11,174 | 11,199 | — | 2050 | (5) | ||||||||||||||||||||||
2 Herald Square | 2,792 | (6) | 4,876 | 4,998 | 5,123 | — | (7) | 2077 | (3) | ||||||||||||||||||||
1055 Washington Blvd, Stamford | 615 | 615 | 615 | 615 | — | 2090 | |||||||||||||||||||||||
1080 Amsterdam Avenue | 209 | 226 | 314 | 314 | — | 2111 | |||||||||||||||||||||||
30 East 40th Street | 204 | 204 | 212 | 229 | 1,633 | 2114 | |||||||||||||||||||||||
Total | $ | 33,841 | $ | 35,942 | $ | 36,435 | $ | 36,752 | $ | 3,568 | |||||||||||||||||||
Capitalized Leases | |||||||||||||||||||||||||||||
2 Herald Square | $ | 4,818 | (6) | $ | 8,415 | $ | 8,625 | $ | 8,841 | $ | — | (7) | 2077 | (3) | |||||||||||||||
1080 Amsterdam Avenue | 291 | 315 | 436 | 436 | 21,960 | 2111 | |||||||||||||||||||||||
30 East 40th Street | 2,096 | 2,096 | 2,183 | 2,358 | 21,260 | 2114 | |||||||||||||||||||||||
Total | $ | 7,205 | $ | 10,826 | $ | 11,244 | $ | 11,635 | $ | 43,220 | |||||||||||||||||||
Unconsolidated Joint Venture Ground Lease Arrangements (SLG Share) | |||||||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||||||
650 Fifth Avenue (Floors b-3) | $ | 1,183 | $ | 1,284 | $ | 1,284 | $ | 1,284 | $ | 3,129 | 2062 | ||||||||||||||||||
650 Fifth Avenue (Floors 4-6) | 18 | 1,645 | 1,645 | 1,659 | 2,538 | 2033 | |||||||||||||||||||||||
333 East 22nd Street | 135 | 217 | 217 | 222 | 1,112 | 2115 | |||||||||||||||||||||||
Total | $ | 1,336 | $ | 3,146 | $ | 3,146 | $ | 3,165 | $ | 6,779 | |||||||||||||||||||
Capitalized Leases | |||||||||||||||||||||||||||||
650 Fifth Avenue (Floors b-3) | $ | 6,169 | $ | 6,695 | $ | 6,695 | $ | 6,695 | $ | 95,401 | 2062 | ||||||||||||||||||
(1) Per the balance sheet at June 30, 2018. | |||||||||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||
(6) Represents partial year of scheduled cash payments from the date of acquisition through December 31, 2018. | |||||||||||||||||||||||||||||
(7) As of June 30, 2018, the deferred land lease obligation balance for this ground lease arrangement is classified within liabilities held for sale. | |||||||||||||||||||||||||||||
Supplemental Information | 26 | Second Quarter 2018 |
| ||
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands) | | |
| ||
Weighted Average Book | Weighted Average | Weighted Average Yield | ||||||||||||||||||
Book Value (1) | Value During Quarter | Yield During Quarter (2) | At End Of Quarter (3) | |||||||||||||||||
6/30/2017 | $ | 1,986,413 | $ | 2,064,131 | 9.16% | (5) | 9.28% | (5) | ||||||||||||
Debt investment originations/accretion(4) | 84,939 | |||||||||||||||||||
Preferred Equity investment originations/accretion(4) | 660 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (51,273 | ) | ||||||||||||||||||
9/30/2017 | $ | 2,020,739 | $ | 2,032,166 | 9.40% | (5) | 9.28% | (5) | ||||||||||||
Debt investment originations/accretion(4) | 198,097 | |||||||||||||||||||
Preferred Equity investment originations/accretion(4) | 443 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (105,238 | ) | ||||||||||||||||||
12/31/2017 | $ | 2,114,041 | $ | 2,051,254 | 9.25% | (5) | 9.13% | (5) | ||||||||||||
Debt investment originations/accretion(4) | 233,370 | |||||||||||||||||||
Preferred Equity investment originations/accretion(4) | 2,074 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (263,614 | ) | ||||||||||||||||||
3/31/2018 | $ | 2,085,871 | $ | 2,049,512 | 9.21% | (5) | 9.01% | (5) | ||||||||||||
Debt investment originations/accretion(4) | 378,316 | |||||||||||||||||||
Preferred Equity investment originations/accretion(4) | 2,103 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (297,775 | ) | ||||||||||||||||||
6/30/2018 | $ | 2,168,515 | (6) | $ | 2,211,777 | 8.80% | (5) | 8.84% | ||||||||||||
(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 believed that the fair value of the property exceeded the carrying amount of the loans. On May 10, 2018, the Company was the successful bidder at the foreclosure of the asset, at which time the loans were credited to our equity investment in the property. | ||||||||||||||||||||
(6) Excludes debt and preferred equity investments totaling $194.7 million with a weighted average current yield of 10.57% that are included in other balance sheet line items. | ||||||||||||||||||||
Supplemental Information | 27 | Second Quarter 2018 |
| ||
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) | | |
| ||
Book Value | Senior | Weighted Average | Weighted Average | Weighted Average Yield | ||||||||||||||||||||||||||||
Type of Investment | Floating rate | Fixed rate | Total | Financing | Exposure PSF | Yield During Quarter (1) | At End Of Quarter (2) | |||||||||||||||||||||||||
Senior Mortgage Debt | $ | 730,331 | $ | 26,557 | $ | 756,888 | $ | — | $ | 613 | 7.13% | (3) | 7.22% | |||||||||||||||||||
Junior Mortgage Participation | 82,690 | — | 82,690 | 320,572 | $ | 2,879 | 10.77% | (3) | 10.90% | |||||||||||||||||||||||
Mezzanine Debt | 785,424 | 398,381 | 1,183,805 | 7,069,540 | $ | 1,643 | 10.03% | 10.11% | ||||||||||||||||||||||||
Preferred Equity | — | 145,132 | 145,132 | 272,000 | $ | 657 | 6.29% | 5.73% | ||||||||||||||||||||||||
Balance as of 6/30/18 | $ | 1,598,445 | $ | 570,070 | $ | 2,168,515 | (4) | $ | 7,662,112 | $ | 1,265 | 8.80% | (3) | 8.84% | ||||||||||||||||||
(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 believed that the fair value of the property exceeded the carrying amount of the loans. On May 10, 2018, the Company was the successful bidder at the foreclosure of the asset, at which time the loans were credited to our equity investment in the property. | ||||||||||||||||||||||||||||||||
(4) Net of unamortized fees, discounts, and premiums. Excludes debt and preferred equity investments totaling $194.7 million with a weighted average current yield of 10.57% that are included in other balance sheet line items. | ||||||||||||||||||||||||||||||||
Debt and Preferred Equity Principal Maturity Profile (1) | |||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 & Thereafter | |||||||||
Floating Rate | 230,001 | 530,012 | 822,783 | 15,649 | — | ||||||||
Fixed Rate | — | 26,557 | 353,638 | 3,500 | 186,375 | ||||||||
Sub-total | 230,001 | 556,569 | 1,176,421 | 19,149 | 186,375 | ||||||||
(1) The weighted average maturity of the outstanding balance is 1.90 years. Approximately 73.7% of our portfolio of investments have extension options, some of which may be subject to certain conditions for extension. The weighted average fully extended maturity of the outstanding balance is 3.09 years. | |||||||||||||
Supplemental Information | 28 | Second Quarter 2018 |
| ||
10 LARGEST DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) | | |
| ||
Book Value (1) | Property | Senior | Yield At End | ||||||||||||||||||
Investment Type | 6/30/2018 | Type | Location | Financing | Last $ PSF (2) | Of Quarter (3) | |||||||||||||||
Mortgage and Mezzanine Loans | $ | 333,290 | Residential | Manhattan | $ | — | $ | 949 | 7.13% | ||||||||||||
Mezzanine Loans | 208,506 | Office | Manhattan | 1,160,000 | $ | 1,193 | 9.34% | ||||||||||||||
Mortgage and Mezzanine Loans | 168,369 | Residential | Manhattan | — | $ | 1,311 | 9.39% | ||||||||||||||
Preferred Equity | 145,132 | Office | Manhattan | 272,000 | $ | 657 | 5.73% | ||||||||||||||
Mortgage and Mezzanine Loans | 93,498 | Office | Manhattan | — | $ | 435 | 5.94% | ||||||||||||||
Mortgage Loan | 84,783 | Office | Manhattan | — | $ | 278 | 5.14% | ||||||||||||||
Mezzanine Loan | 83,065 | Office | Manhattan | 340,558 | $ | 74 | 12.47% | ||||||||||||||
Mortgage and Jr. Mortgage Participation Loans | 79,551 | Office | Brooklyn | 220,572 | $ | 455 | 10.43% | ||||||||||||||
Mezzanine Loan | 78,462 | Multi-Family Rental | Manhattan | 571,863 | $ | 913 | 10.70% | ||||||||||||||
Mezzanine Loan | 59,873 | Office | Manhattan | 175,000 | $ | 592 | 10.55% | ||||||||||||||
Total | $ | 1,334,529 | $ | 2,739,993 | 8.29% | ||||||||||||||||
(1) Net of unamortized fees, discounts, and premiums. | |||||||||||||||||||||
(2) Reflects the last dollar of exposure to the Company's most junior position. | |||||||||||||||||||||
(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. | |||||||||||||||||||||
Supplemental Information | 29 | Second Quarter 2018 |
| ||
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 | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | 100% | SLG% | Tenants | ||||||||||||||||||
CONSOLIDATED PROPERTIES | |||||||||||||||||||||||||||||||||
"Same Store" | |||||||||||||||||||||||||||||||||
30 East 40th Street | 60.0 | Grand Central South | Leasehold Interest | 1 | 69,446 | 0.3 | 91.6 | 91.6 | 91.4 | 93.2 | 93.2 | $4,810 | 0.2 | 54 | |||||||||||||||||||
100 Church Street | 100.0 | Downtown | Fee Interest | 1 | 1,047,500 | 3.9 | 98.8 | 98.8 | 99.6 | 99.6 | 99.6 | 44,727 | 5.1 | 3.4 | 17 | ||||||||||||||||||
110 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 215,400 | 0.8 | 77.1 | 75.3 | 74.0 | 66.6 | 73.3 | 9,584 | 1.1 | 0.7 | 24 | ||||||||||||||||||
110 Greene Street | 90.0 | Soho | Fee Interest | 1 | 223,600 | 0.8 | 83.5 | 83.4 | 76.5 | 73.4 | 72.9 | 13,854 | 0.9 | 59 | |||||||||||||||||||
125 Park Avenue | 100.0 | Grand Central | Fee Interest | 1 | 604,245 | 2.2 | 99.6 | 99.6 | 99.6 | 99.6 | 99.3 | 41,755 | 4.8 | 3.2 | 26 | ||||||||||||||||||
220 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 1,135,000 | 4.2 | 62.5 | 61.3 | 60.7 | 58.0 | 57.9 | 41,707 | 4.8 | 3.2 | 32 | ||||||||||||||||||
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 | 15,973 | 1.8 | 1.2 | 12 | ||||||||||||||||||
420 Lexington Ave (Graybar) | 100.0 | Grand Central North | Leasehold Interest | 1 | 1,188,000 | 4.4 | 96.8 | 95.0 | 95.3 | 97.6 | 98.1 | 84,622 | 9.7 | 6.4 | 205 | ||||||||||||||||||
461 Fifth Avenue | 100.0 | Midtown | Leasehold Interest (1) | 1 | 200,000 | 0.7 | 79.0 | 75.8 | 96.6 | 99.9 | 99.9 | 14,629 | 1.7 | 1.1 | 10 | ||||||||||||||||||
485 Lexington Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 921,000 | 3.4 | 76.4 | 76.4 | 68.2 | 69.7 | 69.7 | 51,151 | 5.8 | 3.9 | 28 | ||||||||||||||||||
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 | 42,484 | 4.9 | 3.2 | 9 | ||||||||||||||||||
625 Madison Avenue | 100.0 | Plaza District | Leasehold Interest | 1 | 563,000 | 2.1 | 98.8 | 98.8 | 98.8 | 98.8 | 98.8 | 61,726 | 7.1 | 4.7 | 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 | 9,684 | 1.1 | 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 | 14,547 | 1.7 | 1.1 | 6 | ||||||||||||||||||
711 Third Avenue | 100.0 (2) | Grand Central North | Leasehold Interest (2) | 1 | 524,000 | 1.9 | 89.3 | 89.3 | 86.2 | 90.7 | 88.7 | 32,074 | 3.7 | 2.4 | 19 | ||||||||||||||||||
750 Third Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 780,000 | 2.9 | 98.9 | 98.9 | 98.8 | 98.1 | 98.0 | 48,857 | 5.6 | 3.7 | 30 | ||||||||||||||||||
810 Seventh Avenue | 100.0 | Times Square | Fee Interest | 1 | 692,000 | 2.6 | 95.8 | 95.2 | 97.9 | 96.8 | 94.6 | 47,564 | 5.4 | 3.6 | 49 | ||||||||||||||||||
1185 Avenue of the Americas | 100.0 | Rockefeller Center | Leasehold Interest | 1 | 1,062,000 | 3.9 | 96.7 | 98.1 | 98.1 | 98.1 | 99.0 | 93,999 | 10.7 | 7.2 | 14 | ||||||||||||||||||
1350 Avenue of the Americas | 100.0 | Rockefeller Center | Fee Interest | 1 | 562,000 | 2.1 | 88.5 | 90.5 | 90.0 | 88.0 | 88.6 | 40,205 | 4.6 | 3.1 | 37 | ||||||||||||||||||
1 Madison Avenue | 100.0 | Park Avenue South | Fee Interest | 1 | 1,176,900 | 4.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 74,882 | 9.0 | 5.7 | 2 | ||||||||||||||||||
Subtotal / Weighted Average | 20 | 12,387,091 | 45.7 | % | 91.7 | % | 91.5 | % | 91.1 | % | 91.1 | % | 91.1 | % | $788,834 | 88.0% | 59.8% | 660 | |||||||||||||||
"Non Same Store" | |||||||||||||||||||||||||||||||||
2 Herald Square (3) | 100.0 | Herald Square | Leasehold Interest | 1 | 369,000 | 1.4 | 81.6 | N/A | N/A | N/A | N/A | $29,664 | 3.4 | 2.3 | 3 | ||||||||||||||||||
1 | 369,000 | 1.4 | % | 81.6 | % | — | — | — | — | $29,664 | 3.4% | 2.3 | 3 | ||||||||||||||||||||
Total / Weighted Average Consolidated Properties | 21 | 12,756,091 | 47.1 | % | 91.4 | % | 91.5 | % | 91.1 | % | 91.1 | % | 91.1 | % | $818,498 | 91.4% | 62.1% | 663 | |||||||||||||||
UNCONSOLIDATED PROPERTIES | |||||||||||||||||||||||||||||||||
"Same Store" | |||||||||||||||||||||||||||||||||
3 Columbus Circle | 48.9 | Columbus Circle | Fee Interest | 1 | 530,981 | 2.0 | 96.1 | 95.4 | 91.1 | 91.3 | 91.0 | $49,168 | 1.8 | 33 | |||||||||||||||||||
100 Park Avenue | 50.0 | Grand Central South | Fee Interest | 1 | 834,000 | 3.1 | 92.0 | 92.3 | 93.4 | 89.4 | 90.3 | 63,605 | 2.4 | 37 | |||||||||||||||||||
280 Park Avenue | 50.0 | Park Avenue | Fee Interest | 1 | 1,219,158 | 4.5 | 92.8 | 92.8 | 93.0 | 93.0 | 91.8 | 118,725 | 4.5 | 37 | |||||||||||||||||||
521 Fifth Avenue | 50.5 | Grand Central | Fee Interest | 1 | 460,000 | 1.7 | 94.2 | 90.2 | 90.2 | 90.2 | 90.2 | 31,268 | 1.2 | 44 | |||||||||||||||||||
800 Third Avenue | 60.5 | Grand Central North | Fee Interest | 1 | 526,000 | 1.9 | 96.4 | 94.6 | 95.0 | 99.1 | 99.1 | 36,714 | 1.7 | 42 | |||||||||||||||||||
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 | 97,840 | 3.8 | 9 | |||||||||||||||||||
Added to Same Store in 2018 | |||||||||||||||||||||||||||||||||
10 East 53rd Street | 55.0 | Plaza District | Fee Interest | 1 | 354,300 | 1.3 | 83.7 | 81.1 | 77.6 | 69.0 | 66.8 | 29,092 | 1.2 | 38 | |||||||||||||||||||
11 Madison Avenue | 60.0 | Park Avenue South | Fee Interest | 1 | 2,314,000 | 8.5 | 100.0 | 100.0 | 100.0 | 100.0 | 98.0 | 159,382 | 7.3 | 11 | |||||||||||||||||||
Subtotal / Weighted Average | 8 | 7,692,439 | 28.4 | % | 96.4 | % | 95.9 | % | 95.6 | % | 95.1 | % | 94.2 | % | $585,794 | 24.0% | 251 | ||||||||||||||||
"Non Same Store" | |||||||||||||||||||||||||||||||||
1515 Broadway | 57.0 | Times Square | Fee Interest | 1 | 1,750,000 | 6.5 | 98.5 | 98.5 | 98.4 | 98.4 | 97.7 | $133,402 | 5.8 | 13 | |||||||||||||||||||
Worldwide Plaza | 24.4 | Westside | Fee Interest | 1 | 2,048,725 | 7.6 | 98.5 | 98.5 | 98.5 | N/A | N/A | 132,076 | 2.4 | 27 | |||||||||||||||||||
Subtotal / Weighted Average | 2 | 3,798,725 | 14.0 | % | 98.5 | % | 98.5 | % | 98.5 | % | 98.4 | % | 97.7 | % | $265,478 | 8.2% | 40 | ||||||||||||||||
Total / Weighted Average Unconsolidated Properties | 10 | 11,491,164 | 42.4 | % | 97.1 | % | 96.7 | % | 96.5 | % | 95.7 | % | 94.9 | % | $851,272 | 32.2% | 291 | ||||||||||||||||
Manhattan Operating Properties Grand Total / Weighted Average | 31 | 24,247,255 | 89.5 | % | 94.1 | % | 94.0 | % | 93.7 | % | 93.1 | % | 92.7 | % | $1,669,770 | 954 | |||||||||||||||||
Manhattan Operating Properties Grand Total - SLG share of Annualized Rent | $1,238,129 | 94.3% | |||||||||||||||||||||||||||||||
Manhattan Operating Properties Same Store Occupancy % | 20,079,530 | 82.8 | % | 93.5 | % | 93.2 | % | 92.8 | % | 92.6 | % | 92.3 | % | ||||||||||||||||||||
Manhattan Operating Properties Same Store Leased Occupancy % | 95.9 | % | 95.5 | % | 95.6 | % | 95.3 | % | 94.7 | % | |||||||||||||||||||||||
(1) The Company has an option to acquire the fee interest for a fixed price on a specific date. | |||||||||||||||||||||||||||||||||
(2) The Company owns 50% of the fee interest. | |||||||||||||||||||||||||||||||||
(3) Property is under contract for the sale of a joint venture interest and has been classified as held for sale as of June 30, 2018. | |||||||||||||||||||||||||||||||||
Supplemental Information | 30 | Second Quarter 2018 |
| ||
SELECTED PROPERTY DATA Suburban Operating Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized Cash Rent | Total | |||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | 100% | SLG% | Tenants | |||||||||||||||||
CONSOLIDATED PROPERTIES | ||||||||||||||||||||||||||||||||
"Same Store" Westchester, New York | ||||||||||||||||||||||||||||||||
1100 King Street - 1 Int'l Drive (1) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 74.8 | 74.8 | 74.8 | 74.8 | 74.8 | $1,928 | 0.2 | 0.1 | 2 | |||||||||||||||||
1100 King Street - 2 Int'l Drive (1) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 68.3 | 68.3 | 65.4 | 63.5 | 63.5 | 1,663 | 0.2 | 0.1 | 8 | |||||||||||||||||
1100 King Street - 3 Int'l Drive (1) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 58.4 | 58.4 | 58.4 | 58.4 | 58.4 | 1,071 | 0.1 | 0.1 | 3 | |||||||||||||||||
1100 King Street - 4 Int'l Drive (1) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 66.9 | 66.9 | 67.3 | 51.2 | 51.2 | 1,149 | 0.1 | 0.1 | 7 | |||||||||||||||||
1100 King Street - 5 Int'l Drive (1) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 96.6 | 96.6 | 96.6 | 96.6 | 96.6 | 2,134 | 0.2 | 0.2 | 11 | |||||||||||||||||
1100 King Street - 6 Int'l Drive (1) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.3 | 28.6 | 45.4 | 62.8 | 68.7 | 68.7 | 880 | 0.1 | 0.1 | 3 | |||||||||||||||||
100 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 250,000 | 0.9 | 92.9 | 86.8 | 92.2 | 92.2 | 79.4 | 5,970 | 0.7 | 0.5 | 13 | |||||||||||||||||
200 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 245,000 | 0.9 | 87.3 | 87.3 | 87.5 | 87.5 | 95.8 | 5,602 | 0.6 | 0.4 | 8 | |||||||||||||||||
500 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 228,000 | 0.8 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 6,194 | 0.7 | 0.5 | 8 | |||||||||||||||||
360 Hamilton Avenue | 100.0 | White Plains, New York | Fee Interest | 1 | 384,000 | 1.4 | 100.0 | 100.0 | 99.3 | 99.3 | 98.4 | 15,409 | 1.8 | 1.2 | 22 | |||||||||||||||||
"Same Store" Westchester, New York Subtotal/Weighted Average | 10 | 1,647,000 | 7.1 | % | 85.8 | % | 85.7 | % | 87.2 | % | 86.6 | % | 85.7 | % | $42,001 | 4.8% | 3.2% | 85 | ||||||||||||||
"Same Store" Connecticut | ||||||||||||||||||||||||||||||||
1 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 312,000 | 1.2 | 87.4 | 85.5 | 90.0 | 84.9 | 86.5 | $9,041 | 1.0 | 0.7 | 60 | |||||||||||||||||
2 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 46,000 | 0.2 | 97.0 | 94.6 | 97.0 | 85.7 | 80.1 | 1,121 | 0.1 | 0.1 | 8 | |||||||||||||||||
3 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 130,000 | 0.5 | 75.4 | 76.9 | 76.9 | 76.9 | 76.9 | 3,412 | 0.4 | 0.3 | 19 | |||||||||||||||||
4 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 105,000 | 0.4 | 92.4 | 92.4 | 92.4 | 93.5 | 92.4 | 3,339 | 0.4 | 0.3 | 14 | |||||||||||||||||
5 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 61,000 | 0.2 | 98.6 | 98.6 | 98.3 | 98.3 | 98.3 | 1,039 | 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 | 4,220 | 0.5 | 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 | 762 | 0.1 | 0.1 | 2 | |||||||||||||||||
1055 Washington Boulevard | 100.0 | Stamford, Connecticut | Leasehold Interest | 1 | 182,000 | 0.7 | 84.7 | 80.5 | 80.9 | 67.9 | 67.9 | 5,715 | 0.7 | 0.4 | 23 | |||||||||||||||||
1010 Washington Boulevard | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 143,400 | 0.5 | 90.4 | 97.4 | 94.6 | 92.1 | 92.1 | 4,399 | 0.5 | 0.3 | 27 | |||||||||||||||||
"Same Store" Connecticut Subtotal/Weighted Average | 9 | 1,188,200 | 3.4 | % | 88.7 | % | 88.5 | % | 89.5 | % | 85.5 | % | 85.6 | % | $33,048 | 3.8% | 2.5% | 169 | ||||||||||||||
Total / Weighted Average Consolidated Properties | 19 | 2,835,200 | 10.5 | % | 87.0 | % | 86.9 | % | 88.2 | % | 86.1 | % | 85.6 | % | $75,048 | 8.6% | 5.7% | 254 | ||||||||||||||
Suburban Operating Properties Grand Total / Weighted Average | 19 | 2,835,200 | 10.5 | % | 87.0 | % | 86.9 | % | 88.2 | % | 86.1 | % | 85.6 | % | $75,048 | 254 | ||||||||||||||||
Suburban Operating Properties Grand Total - SLG share of Annualized Rent | $75,048 | 5.7% | ||||||||||||||||||||||||||||||
Suburban Operating Properties Same Store Occupancy % | 2,835,200 | 100.0 | % | 87.0 | % | 86.9 | % | 88.2 | % | 86.1 | % | 85.6 | % | |||||||||||||||||||
Suburban Operating Properties Same Store Leased Occupancy % | 87.2 | % | 87.6 | % | 88.5 | % | 87.9 | % | 86.2 | % | ||||||||||||||||||||||
(1) Property is under contract for sale as of June 30, 2018. | ||||||||||||||||||||||||||||||||
Supplemental Information | 31 | Second Quarter 2018 |
| ||
SELECTED PROPERTY DATA Retail and Residential Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized | Total | |||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | Cash Rent (SLG%) | Tenants | ||||||||||||||||||
"Same Store" Retail | ||||||||||||||||||||||||||||||||
11 West 34th Street | 30.0 | Herald Square/Penn Station | Fee Interest | 1 | 17,150 | 2.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $2,831 | 1.2 | 1 | ||||||||||||||||||
21 East 66th Street | 32.3 | Plaza District | Fee Interest | 1 | 13,069 | 2.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,932 | 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 | 1,535 | 1.0 | 2 | ||||||||||||||||||
131-137 Spring Street | 20.0 | Soho | Fee Interest | 2 | 68,342 | 10.0 | 89.6 | 89.6 | 89.6 | 89.6 | 89.6 | 12,764 | 3.5 | 8 | ||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | Penn Station | Fee Interest | 1 | 270,132 | 38.0 | 99.4 | 99.4 | 100.0 | 100.0 | 100.0 | 16,969 | 23.1 | 9 | ||||||||||||||||||
717 Fifth Avenue | 10.9 | Midtown/Plaza District | Fee Interest | 1 | 119,550 | 17.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 48,329 | 7.2 | 6 | ||||||||||||||||||
724 Fifth Avenue (1) | 50.0 | Plaza District | Fee Interest | 1 | 65,010 | 9.0 | 84.7 | 84.7 | 84.7 | 84.7 | 92.1 | 24,005 | 16.3 | 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 | 14,383 | 19.6 | 1 | ||||||||||||||||||
762 Madison Avenue | 90.0 | Plaza District | Fee Interest | 1 | 6,109 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,857 | 2.3 | 5 | ||||||||||||||||||
Williamsburg Terrace | 100.0 | Brooklyn, New York | Fee Interest | 1 | 52,000 | 7.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,796 | 2.4 | 3 | ||||||||||||||||||
Added to Same Store in 2018 | ||||||||||||||||||||||||||||||||
115 Spring Street | 100.0 | Soho | Fee Interest | 1 | 5,218 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,403 | 4.6 | 1 | ||||||||||||||||||
1552-1560 Broadway | 50.0 | Times Square | Fee Interest | 2 | 57,718 | 8.0 | 67.5 | 67.5 | 67.5 | 67.5 | 67.5 | 25,177 | 17.1 | 2 | ||||||||||||||||||
Subtotal/Weighted Average | 14 | 702,553 | 100.0 | % | 94.7 | % | 94.7 | % | 94.9 | % | 94.9 | % | 95.6 | % | $156,981 | 100.0% | 47 | |||||||||||||||
Total / Weighted Average Retail Properties | 14 | 702,553 | 100.0 | % | 94.7 | % | 94.7 | % | 94.9 | % | 94.9 | % | 95.6 | % | $156,981 | 100.0% | 47 | |||||||||||||||
Residential Properties | ||||||||||||||||||||||||||||||||
Ownership | # of | Useable | Total | Occupancy (%) | Average Monthly (2) | Annualized | ||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Units | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Rent Per Unit ($'s) | Cash Rent ($'s) | |||||||||||||||||||
"Same Store" Residential | ||||||||||||||||||||||||||||||||
315 West 33rd Street - "The Olivia" | 100.0 | Penn Station | Fee Interest | 222,855 | 333 | 95.5 | 95.5 | 85.9 | 88.0 | 91.9 | $4,230 | $16,090 | ||||||||||||||||||||
400 East 57th Street | 41.0 | Upper East Side | Fee Interest | 1 | 290,482 | 262 | 90.8 | 92.3 | 92.3 | 92.3 | 93.1 | 3,665 | 12,056 | |||||||||||||||||||
400 East 58th Street | 90.0 | Upper East Side | Fee Interest | 1 | 140,000 | 126 | 95.2 | 98.4 | 96.8 | 94.4 | 93.7 | 3,532 | 5,619 | |||||||||||||||||||
1080 Amsterdam | 92.5 | Upper West Side | Leasehold Interest | 1 | 82,250 | 97 | 95.8 | 94.8 | 99.0 | 100.0 | 88.5 | 3,998 | 4,732 | |||||||||||||||||||
Stonehenge Portfolio | Various | Fee Interest | 8 | 938,911 | 1,064 | 95.9 | 96.1 | 94.1 | 92.6 | 94.2 | 4,229 | 59,272 | ||||||||||||||||||||
Added to Same Store in 2018 | ||||||||||||||||||||||||||||||||
605 West 42nd Street - Sky | 20.0 | Westside | Fee Interest | 1 | 927,358 | 1,175 | 82.9 | 79.4 | 77.6 | 75.5 | 81.0 | 3,976 | 52,605 | |||||||||||||||||||
Subtotal/Weighted Average | 12 | 2,601,856 | 3,057 | 90.4 | % | 89.4 | % | 87.0 | % | 85.8 | % | 88.6 | % | $4,053 | $150,374 | |||||||||||||||||
"Non Same Store" Residential | ||||||||||||||||||||||||||||||||
Upper East Side Residential | 94.0 | Upper East Side | Fee Interest | 1 | 27,000 | 28 | 42.9 | 42.9 | 42.9 | 42.9 | 39.3 | $1,181 | $703 | |||||||||||||||||||
Subtotal/Weighted Average | 1 | 27,000 | 28 | 42.9 | % | 42.9 | % | 42.9 | % | 42.9 | % | 39.3 | % | $1,181 | $703 | |||||||||||||||||
Total / Weighted Average Residential Properties | 13 | 2,628,856 | 3,085 | 90.0 | % | 88.9 | % | 86.6 | % | 85.4 | % | 88.1 | % | $4,041 | $151,078 | |||||||||||||||||
(1) Property is under contract for sale as of June 30, 2018. | ||||||||||||||||||||||||||||||||
(2) Calculated based on occupied units. Amounts in dollars. | ||||||||||||||||||||||||||||||||
Supplemental Information | 32 | Second Quarter 2018 |
| ||
SELECTED PROPERTY DATA Development / Redevelopment, Land and Construction in Progress Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized | Gross R/E | Total | |||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | Cash Rent (SLG%) | Book Value | Tenants | ||||||||||||||||||||
Development / Redevelopment | |||||||||||||||||||||||||||||||||||
19-21 East 65th Street | 100.0 | Plaza District | Fee Interest | 2 | 23,610 | 3.0 | 17.0 | 17.0 | 17.0 | 17.0 | 26.6 | $197 | 0.8 | $7,797 | 7 | ||||||||||||||||||||
5-7 Dey Street, 183 & 187 Broadway | 100.0 | Lower Manhattan | Fee Interest | 3 | 82,700 | 11.0 | — | — | — | — | — | — | — | 42,760 | — | ||||||||||||||||||||
562 Fifth Avenue (1) | 100.0 | Plaza District | Fee Interest | 1 | 42,635 | 6.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 4,000 | 15.8 | 68,752 | 1 | ||||||||||||||||||||
609 Fifth Avenue | 100.0 | Rockefeller Center | Fee Interest | 1 | 160,000 | 22.0 | 3.0 | 5.2 | 67.8 | 68.3 | 72.8 | 380 | 1.5 | 212,433 | 2 | ||||||||||||||||||||
650 Fifth Avenue | 50.0 | Plaza District | Leasehold Interest | 1 | 69,214 | 9.0 | 100.0 | 100.0 | 100.0 | 100.0 | — | 33,190 | 65.7 | 381,993 | 1 | ||||||||||||||||||||
719 Seventh Avenue | 75.0 | Times Square | Fee Interest | 1 | 10,040 | 1.0 | — | — | — | — | — | — | — | 76,739 | — | ||||||||||||||||||||
55 West 46th Street - Tower 46 | 25.0 | Midtown | Fee Interest | 1 | 347,000 | 47.0 | 58.2 | 58.2 | 58.2 | 56.6 | 50.1 | 16,391 | 16.2 | 339,668 | 7 | ||||||||||||||||||||
1640 Flatbush Avenue | 100.0 | Brooklyn, New York | Fee Interest | 1 | 1,000 | — | — | — | 100.0 | 100.0 | 100.0 | — | — | 7,030 | — | ||||||||||||||||||||
Total / Weighted Average Development / Redevelopment Properties | 11 | 736,199 | 100.0 | % | 43.8 | % | 44.3 | % | 58.0 | % | 57.4 | % | 46.2 | % | $54,158 | 100.0% | $1,137,172 | 18 | |||||||||||||||||
(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. | |||||||||||||||||||||||||||||||||||
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 | 31.0 | $331,490 | $235,946 | $317,089 | $141,707 | $260,475 | $383,293 | $375,000 | $1,125,000 | $51,150 | $88,850 | $3,310,000 | ||||||||
Total Construction In Progress | $331,490 | $235,946 | $317,089 | $141,707 | $260,475 | $383,293 | $375,000 | $1,125,000 | $51,150 | $88,850 | $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 $50.0 million of additional discretionary owner contingencies. | |||||||||||||||||||||||
Supplemental Information | 33 | Second Quarter 2018 |
| ||
SELECTED PROPERTY DATA Retail Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized Retail | Annualized Retail Cash Rent | Total | ||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | 100% | SLG | Tenants | ||||||||||||||||||
HIGH STREET RETAIL - Consolidated Properties | |||||||||||||||||||||||||||||||||
19-21 East 65th Street (1) | 100.0 | Plaza District | Fee Interest | 2 | 23,610 | 1.2 | 17.0 | 17.0 | 17.0 | 17.0 | 26.6 | 197 | 0.1 | 0.1 | 7 | ||||||||||||||||||
115 Spring Street | 100.0 | Soho | Fee Interest | 1 | 5,218 | 0.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,403 | 0.9 | 1.5 | 1 | ||||||||||||||||||
315 West 33rd Street - "The Olivia" | 100.0 | Penn Station | Fee Interest | 1 | 217,519 | 10.7 | 99.4 | 99.4 | 100.0 | 100.0 | 100.0 | 13,451 | 3.7 | 6.0 | 8 | ||||||||||||||||||
719 Seventh Avenue (1) | 75.0 | Times Square | Fee Interest | 1 | 10,040 | 0.5 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
752-760 Madison Avenue | 100.0 | Plaza District | Fee Interest | 1 | 21,124 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 14,383 | 4.0 | 6.4 | 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 | 1,857 | 0.5 | 0.7 | 5 | ||||||||||||||||||
Williamsburg Terrace | 100.0 | Brooklyn, New York | Fee Interest | 1 | 52,000 | 2.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,796 | 0.5 | 0.8 | 3 | ||||||||||||||||||
1640 Flatbush Avenue (1) | 100.0 | Brooklyn, New York | Fee Interest | 1 | 1,000 | 0.0 | — | — | 100.0 | 100.0 | 100.0 | — | — | — | — | ||||||||||||||||||
Subtotal / Weighted Average | 9 | 336,620 | 16.6 | % | 90.5 | % | 90.5 | % | 91.2 | % | 91.2 | % | 91.9 | % | $35,087 | 9.6% | 15.6% | 25 | |||||||||||||||
HIGH STREET RETAIL - Unconsolidated Properties | |||||||||||||||||||||||||||||||||
11 West 34th Street | 30.0 | Herald Square/Penn Station | Fee Interest | 1 | 17,150 | 0.8 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $2,831 | 0.8 | 0.4 | 1 | ||||||||||||||||||
21 East 66th Street | 32.3 | Plaza District | Fee Interest | 1 | 13,069 | 0.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,932 | 1.1 | 0.6 | 1 | ||||||||||||||||||
121 Greene Street | 50.0 | Soho | Fee Interest | 1 | 7,131 | 0.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,535 | 0.4 | 0.3 | 2 | ||||||||||||||||||
131-137 Spring Street | 20.0 | Soho | Fee Interest | 2 | 68,342 | 3.4 | 89.6 | 89.6 | 89.6 | 89.6 | 89.6 | 12,764 | 3.5 | 1.1 | 8 | ||||||||||||||||||
650 Fifth Avenue (1) | 50.0 | Plaza District | Leasehold Interest | 1 | 69,214 | 3.4 | 100.0 | 100.0 | 100.0 | 100.0 | — | 33,190 | 9.1 | 7.4 | 1 | ||||||||||||||||||
717 Fifth Avenue | 10.9 | Midtown/Plaza District | Fee Interest | 1 | 119,550 | 5.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 48,329 | 13.3 | 2.4 | 6 | ||||||||||||||||||
724 Fifth Avenue | 50.0 | Plaza District | Fee Interest | 1 | 65,010 | 3.2 | 84.7 | 84.7 | 84.7 | 84.7 | 92.1 | 24,005 | 6.6 | 5.4 | 8 | ||||||||||||||||||
1552-1560 Broadway | 50.0 | Times Square | Fee Interest | 2 | 57,718 | 2.8 | 67.5 | 67.5 | 67.5 | 67.5 | 67.5 | 25,177 | 6.9 | 5.6 | 2 | ||||||||||||||||||
Subtotal / Weighted Average | 10 | 417,184 | 20.5 | % | 91.4 | % | 91.4 | % | 91.4 | % | 91.4 | % | 76.0 | % | $151,763 | 41.7% | 23.2% | 29 | |||||||||||||||
Total / Weighted Average Prime Retail | 19 | 753,804 | 37.1 | % | 91.0 | % | 91.0 | % | 91.3 | % | 91.3 | % | 83.1 | % | $186,850 | 54.7% | 38.8% | 54 | |||||||||||||||
OTHER RETAIL - Consolidated Properties | |||||||||||||||||||||||||||||||||
2 Herald Square (2) | 100.0 | Herald Square | Leasehold Interest | 1 | 94,531 | 4.7 | 59.9 | N/A | N/A | N/A | N/A | $12,270 | 3.4 | 5.5 | 1 | ||||||||||||||||||
100 Church Street | 100.0 | Downtown | Fee Interest | 1 | 61,708 | 3.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $3,267 | 0.9 | 1.5 | 7 | ||||||||||||||||||
110 Greene Street | 90.0 | Soho | Fee Interest | 1 | 16,121 | 0.8 | 98.7 | 86.8 | 86.8 | 86.8 | 86.8 | 2,877 | 0.8 | 1.2 | 5 | ||||||||||||||||||
125 Park Avenue | 100.0 | Grand Central | Fee Interest | 1 | 32,124 | 1.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 4,703 | 1.3 | 2.1 | 6 | ||||||||||||||||||
220 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 35,332 | 1.7 | 85.6 | 85.6 | 85.6 | 68.4 | 68.4 | 2,676 | 0.7 | 1.2 | 5 | ||||||||||||||||||
Upper East Side Residential | 95.1 | Upper East Side | Fee Interest | 1 | 4,150 | 0.2 | 100.0 | 100.0 | 88.0 | 88.0 | 88.0 | 533 | 0.1 | 0.2 | 5 | ||||||||||||||||||
304 Park Avenue South | 100.0 | Midtown South | Fee Interest | 1 | 25,330 | 1.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,468 | 1.0 | 1.5 | 6 | ||||||||||||||||||
400 East 57th Street | 41.0 | Upper East Side | Fee Interest | 1 | 9,717 | 0.5 | 75.4 | 75.4 | 75.4 | 75.4 | 52.6 | 1,678 | 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 | 575 | 0.2 | 0.2 | 5 | ||||||||||||||||||
420 Lexington Ave (Graybar) | 100.0 | Grand Central North | Leasehold Interest | 1 | 45,263 | 2.2 | 100.0 | 100.0 | 96.5 | 96.5 | 100.0 | 4,792 | 1.3 | 2.1 | 6 | ||||||||||||||||||
461 Fifth Avenue | 100.0 | Midtown | Leasehold Interest | 1 | 16,248 | 0.8 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,276 | 0.6 | 1.0 | 2 | ||||||||||||||||||
485 Lexington Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 41,701 | 2.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 5,645 | 1.6 | 2.5 | 8 | ||||||||||||||||||
555 West 57th Street | 100.0 | Midtown West | Fee Interest | 1 | 60,389 | 3.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,940 | 0.5 | 0.9 | 2 | ||||||||||||||||||
609 Fifth Avenue (1) | 100.0 | Rockefeller Center | Fee Interest | 1 | 34,836 | 1.7 | — | — | 100.0 | 100.0 | 100.0 | — | — | — | — | ||||||||||||||||||
625 Madison Avenue | 100.0 | Plaza District | Leasehold Interest | 1 | 74,937 | 3.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 22,687 | 6.2 | 10.1 | 19 | ||||||||||||||||||
635 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 23,250 | 1.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,349 | 0.9 | 1.5 | 1 | ||||||||||||||||||
641 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 28,500 | 1.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,692 | 1.0 | 1.6 | 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 | 2,944 | 0.8 | 1.3 | 3 | ||||||||||||||||||
750 Third Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 24,827 | 1.2 | 100.0 | 100.0 | 100.0 | 100.0 | 96.8 | 2,763 | 0.8 | 1.2 | 6 | ||||||||||||||||||
810 Seventh Avenue | 100.0 | Times Square | Fee Interest | 1 | 18,207 | 0.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 4,299 | 1.2 | 1.9 | 4 | ||||||||||||||||||
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 | 1.8 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 6,641 | 1.8 | 3.0 | 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 | 100.0 | 2,793 | 0.8 | 1.2 | 6 | ||||||||||||||||||
1515 Broadway | 57.0 | Times Square | Fee Interest | 1 | 185,956 | 9.2 | 100.0 | 100.0 | 100.0 | 100.0 | 95.3 | 33,158 | 9.1 | 8.4 | 9 | ||||||||||||||||||
Subtotal / Weighted Average | 24 | 918,845 | 45.3 | % | 91.3 | % | 94.6 | % | 98.6 | % | 97.8 | % | 96.6 | % | $129,310 | 35.5% | 50.8% | 122 | |||||||||||||||
(1) Development / Redevelopment properties. | |||||||||||||||||||||||||||||||||
(2) Property is under contract for the sale of a joint venture interest and has been classified as held for sale as of June 30, 2018. | |||||||||||||||||||||||||||||||||
Supplemental Information | 34 | Second Quarter 2018 |
| ||
SELECTED PROPERTY DATA - CONTINUED Retail Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized Retail | Annualized Retail Cash Rent | Total | ||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | 100% | SLG | Tenants | ||||||||||||||||||
OTHER RETAIL - Unconsolidated Properties | |||||||||||||||||||||||||||||||||
3 Columbus Circle | 48.9 | Columbus Circle | Fee Interest | 1 | 75,165 | 3.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $18,773 | 5.2 | 4.1 | 3 | ||||||||||||||||||
10 East 53rd Street | 55.0 | Plaza District | Fee Interest | 1 | 39,340 | 1.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,737 | 1.0 | 0.9 | 3 | ||||||||||||||||||
11 Madison Avenue | 60.0 | Park Avenue South | Fee Interest | 1 | 38,800 | 1.9 | 98.7 | 96.6 | 96.6 | 96.6 | 96.6 | 3,579 | 1.0 | 1.0 | 6 | ||||||||||||||||||
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 | 502 | 0.1 | 0.1 | 5 | ||||||||||||||||||
55 West 46th Street (1) | 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 | 2.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,676 | 1.0 | 0.8 | 9 | ||||||||||||||||||
280 Park Avenue | 50.0 | Park Avenue | Fee Interest | 1 | 27,896 | 1.4 | 100.0 | 100.0 | 12.5 | 12.5 | 12.5 | 2,154 | 0.6 | 0.5 | 3 | ||||||||||||||||||
521 Fifth Avenue | 50.5 | Grand Central | Fee Interest | 1 | 53,157 | 2.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 5,384 | 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 | 1,916 | 0.5 | 0.5 | 2 | ||||||||||||||||||
919 Third Avenue | 51 | Grand Central North | Fee Interest | 1 | 31,004 | 1.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,594 | 1.0 | 0.8 | 5 | ||||||||||||||||||
World Wide Plaza | 24.35 | Westside | Fee Interest | 1 | 10,592 | (2) | 0.5 | 100.0 | 100.0 | 100.0 | N/A | N/A | 1,358 | 0.4 | 0.1 | 8 | |||||||||||||||||
Stonehenge Portfolio | Various | Fee Interest | 3 | 22,551 | 1.1 | 83.1 | 88.9 | 88.9 | 100.0 | 100.0 | 2,708 | 0.7 | 0.3 | 9 | |||||||||||||||||||
Subtotal / Weighted Average | 14 | 354,079 | 17.5 | % | 98.8 | % | 98.9 | % | 92.0 | % | 92.5 | % | 92.5 | % | $47,592 | 13.1% | 10.4% | 57 | |||||||||||||||
Total / Weighted Average Other Retail | 38 | 1,272,924 | 62.8 | % | 93.3 | % | 95.9 | % | 96.6 | % | 96.3 | % | 95.4 | % | $176,901 | 48.6% | 61.2% | 180 | |||||||||||||||
Retail Grand Total / Weighted Average | 57 | 2,026,728 | 100.0 | % | 92.5 | % | 94.0 | % | 94.5 | % | 94.3 | % | 90.6 | % | $363,751 | 100.0% | 234 | ||||||||||||||||
Retail Grand Total - SLG share of Annualized Rent | $223,843 | 100.0% | |||||||||||||||||||||||||||||||
(1) Redevelopment property. | |||||||||||||||||||||||||||||||||
(2) Excludes the theatre, parking garage, fitness gym and other amenity space totaling 241,371 square feet. | |||||||||||||||||||||||||||||||||
Supplemental Information | 35 | Second Quarter 2018 |
| ||
SELECTED PROPERTY DATA Reckson Operating Portfolio - Consolidated Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized Cash Rent | Total | |||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | 100 | % | SLG% | Tenants | ||||||||||||||||||
Manhattan Operating Properties | ||||||||||||||||||||||||||||||||||
"Same Store" | ||||||||||||||||||||||||||||||||||
110 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 215,400 | 2.1 | 77.1 | 75.3 | 74.0 | 66.6 | 73.3 | $9,584 | 1.8 | 1.6 | 24 | |||||||||||||||||||
110 Greene Street | 90.0 | Soho | Fee Interest | 1 | 223,600 | 2.2 | 83.5 | 83.4 | 76.5 | 73.4 | 72.9 | 13,854 | 2.1 | 59 | ||||||||||||||||||||
125 Park Avenue | 100.0 | Grand Central | Fee Interest | 1 | 604,245 | 5.9 | 99.6 | 99.6 | 99.6 | 99.6 | 99.3 | 41,755 | 8.0 | 7.1 | 26 | |||||||||||||||||||
304 Park Avenue South | 100.0 | Midtown South | Fee Interest | 1 | 215,000 | 2.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 15,973 | 3.0 | 2.7 | 12 | |||||||||||||||||||
461 Fifth Avenue | 100.0 | Midtown | Leasehold Interest (1) | 1 | 200,000 | 1.9 | 79.0 | 75.8 | 96.6 | 99.9 | 99.9 | 14,629 | 2.8 | 2.5 | 10 | |||||||||||||||||||
555 West 57th Street | 100.0 | Midtown West | Fee Interest | 1 | 941,000 | 9.2 | 99.9 | 99.9 | 99.9 | 99.9 | 99.9 | 42,484 | 8.1 | 7.2 | 9 | |||||||||||||||||||
625 Madison Avenue | 100.0 | Plaza District | Leasehold Interest | 1 | 563,000 | 5.5 | 98.8 | 98.8 | 98.8 | 98.8 | 98.8 | 61,726 | 11.8 | 10.5 | 25 | |||||||||||||||||||
635 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 104,000 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 9,684 | 1.8 | 1.6 | 2 | |||||||||||||||||||
641 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 163,000 | 1.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 14,547 | 2.8 | 2.5 | 6 | |||||||||||||||||||
711 Third Avenue | 100.0 (2) | Grand Central North | Leasehold Interest | 1 | 524,000 | 5.1 | 89.3 | 89.3 | 86.2 | 90.7 | 88.7 | 32,074 | 6.1 | 5.5 | 19 | |||||||||||||||||||
750 Third Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 780,000 | 7.6 | 98.9 | 98.9 | 98.8 | 98.1 | 98.0 | 48,857 | 9.3 | 8.3 | 30 | |||||||||||||||||||
810 Seventh Avenue | 100.0 | Times Square | Fee Interest | 1 | 692,000 | 6.7 | 95.8 | 95.2 | 97.9 | 96.8 | 94.6 | 47,564 | 9.1 | 8.1 | 49 | |||||||||||||||||||
919 Third Avenue (3) | 51.0 | Grand Central North | Fee Interest | 1 | 1,454,000 | 14.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 97,840 | 8.5 | 9 | ||||||||||||||||||||
1185 Avenue of the Americas | 100.0 | Rockefeller Center | Leasehold Interest | 1 | 1,062,000 | 10.3 | 96.7 | 98.1 | 98.1 | 98.1 | 99.0 | 93,999 | 17.9 | 16.0 | 14 | |||||||||||||||||||
1350 Avenue of the Americas | 100.0 | Rockefeller Center | Fee Interest | 1 | 562,000 | 5.5 | 88.5 | 90.5 | 90.0 | 88.0 | 88.6 | 40,205 | 7.7 | 6.8 | 37 | |||||||||||||||||||
Subtotal / Weighted Average | 15 | 8,303,245 | 80.8 | % | 96.0 | % | 96.1 | % | 96.4 | % | 96.2 | % | 96.2 | % | $584,776 | 90.1% | 91.1% | 331 | ||||||||||||||||
Total / Weighted Average Manhattan Consolidated Properties | 15 | 8,303,245 | 80.8 | % | 96.0 | % | 96.1 | % | 96.4 | % | 96.2 | % | 96.2 | % | $584,776 | 90.1% | 331 | |||||||||||||||||
Total Manhattan Consolidated Properties - SLG share of Annualized Rent | $535,449 | 91.1% | ||||||||||||||||||||||||||||||||
Suburban Operating Properties | ||||||||||||||||||||||||||||||||||
"Same Store" Westchester, New York | ||||||||||||||||||||||||||||||||||
1100 King Street - 1 Int'l Drive (4) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.9 | 74.8 | 74.8 | 74.8 | 74.8 | 74.8 | $1,928 | 0.4 | 0.3 | 2 | |||||||||||||||||||
1100 King Street - 2 Int'l Drive (4) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.9 | 68.3 | 68.3 | 65.4 | 63.5 | 63.5 | 1,663 | 0.3 | 0.3 | 8 | |||||||||||||||||||
1100 King Street - 3 Int'l Drive (4) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.9 | 58.4 | 58.4 | 58.4 | 58.4 | 58.4 | 1,071 | 0.2 | 0.2 | 3 | |||||||||||||||||||
1100 King Street - 4 Int'l Drive (4) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.9 | 66.9 | 66.9 | 67.3 | 51.2 | 51.2 | 1,149 | 0.2 | 0.2 | 7 | |||||||||||||||||||
1100 King Street - 5 Int'l Drive (4) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.9 | 96.6 | 96.6 | 96.6 | 96.6 | 96.6 | 2,134 | 0.4 | 0.4 | 11 | |||||||||||||||||||
1100 King Street - 6 Int'l Drive (4) | 100.0 | Rye Brook, New York | Fee Interest | 1 | 90,000 | 0.9 | 28.6 | 45.4 | 62.8 | 68.7 | 68.7 | 880 | 0.2 | 0.1 | 3 | |||||||||||||||||||
100 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 250,000 | 2.4 | 92.9 | 86.8 | 92.2 | 92.2 | 79.4 | 5,970 | 1.1 | 1.0 | 13 | |||||||||||||||||||
200 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 245,000 | 2.4 | 87.3 | 87.3 | 87.5 | 87.5 | 95.8 | 5,602 | 1.1 | 1.0 | 8 | |||||||||||||||||||
500 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 228,000 | 2.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 6,194 | 1.2 | 1.1 | 8 | |||||||||||||||||||
360 Hamilton Avenue | 100.0 | White Plains, New York | Fee Interest | 1 | 384,000 | 3.7 | 100.0 | 100.0 | 99.3 | 99.3 | 98.4 | 15,409 | 2.9 | 2.6 | 22 | |||||||||||||||||||
Westchester, New York Subtotal / Weighted Average | 10 | 1,647,000 | 16.0 | % | 85.8 | % | 85.7 | % | 87.2 | % | 86.6 | % | 85.7 | % | $42,000 | 8.0% | 7.1% | 85 | ||||||||||||||||
"Same Store" Connecticut | ||||||||||||||||||||||||||||||||||
1055 Washington Boulevard | 100.0 | Stamford, Connecticut | Leasehold Interest | 1 | 182,000 | 1.8 | 84.7 | 80.5 | 80.9 | 67.9 | 67.9 | $5,715 | 1.1 | 1.0 | 23 | |||||||||||||||||||
1010 Washington Boulevard | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 143,400 | 1.4 | 90.4 | 97.4 | 94.6 | 92.1 | 92.1 | 4,399 | 0.8 | 0.7 | 27 | |||||||||||||||||||
Connecticut Subtotal/Weighted Average | 2 | 325,400 | 3.2 | % | 87.2 | % | 87.9 | % | 87.0 | % | 78.6 | % | 78.6 | % | $10,114 | 1.9% | 1.7% | 50 | ||||||||||||||||
Total / Weighted Average Suburban Consolidated Properties | 12 | 1,972,400 | 19.2 | % | 86.0 | % | 86.1 | % | 87.2 | % | 85.3 | % | 84.5 | % | $52,115 | 9.9% | 135 | |||||||||||||||||
Total Suburban Consolidated Properties - SLG share of Annualized Rent | $52,115 | 8.9% | ||||||||||||||||||||||||||||||||
Reckson Operating Properties Grand Total / Weighted Average | 27 | 10,275,645 | 100.0 | % | 94.1 | % | 94.2 | % | 94.6 | % | 94.1 | % | 93.9 | % | $636,890 | 100.0% | 466 | |||||||||||||||||
Reckson Operating Properties Grand Total - SLG Share of Annualized Rent | $587,563 | 100.0% | ||||||||||||||||||||||||||||||||
Reckson Operating Properties Same Store Occupancy % | 10,275,645 | 100.0 | % | 94.1 | % | 94.2 | % | 94.6 | % | 94.1 | % | 93.9 | % | |||||||||||||||||||||
(1) The Company has an option to acquire the fee interest for a fixed price on a specific date. | ||||||||||||||||||||||||||||||||||
(2) The Company owns 50% of the fee interest. | ||||||||||||||||||||||||||||||||||
(3) Unconsolidated property. | ||||||||||||||||||||||||||||||||||
(4) Property is under contract for sale as of June 30, 2018. | ||||||||||||||||||||||||||||||||||
Supplemental Information | 36 | Second Quarter 2018 |
| ||
SELECTED PROPERTY DATA Reckson Operating Portfolio - Retail, Land, and Residential Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized | Total | |||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | Cash Rent (SLG%) | Tenants | ||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||
115 Spring Street | 100.0 | Soho | Fee Interest | 1 | 5,218 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $3,403 | 8.7 | 1 | ||||||||||||||||||||
131-137 Spring Street | 20.0 | Soho | Fee Interest | 2 | 68,342 | 16.0 | 89.6 | 89.6 | 89.6 | 89.6 | 89.6 | 12,764 | 6.5 | 8 | ||||||||||||||||||||
315 West 33rd Street - "The Olivia" | 100.0 | Penn Station | Fee Interest | 1 | 270,132 | 65.0 | 99.4 | 99.4 | 100.0 | 100.0 | 100.0 | 16,969 | 43.4 | 9 | ||||||||||||||||||||
752-760 Madison Avenue | 100.0 | Plaza District | Fee Interest | 1 | 21,124 | 5.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 14,383 | 36.8 | 1 | ||||||||||||||||||||
Williamsburg Terrace | 100.0 | Brooklyn, New York | Fee Interest | 1 | 52,000 | 12.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,796 | 4.6 | 3 | ||||||||||||||||||||
Total Retail Properties | 6 | 416,816 | 100.0% | 97.9 | % | 97.9 | % | 98.3 | % | 98.3 | % | 98.3 | % | $49,315 | 100.0% | 22 | ||||||||||||||||||
Residential Properties | ||||||||||||||||||||||||||||||||||
Ownership | # of | Useable | Total | Occupancy (%) | Annualized | Average Monthly | Total | |||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Units | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | Rent Per Unit ($'s) (1) | Tenants | ||||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | Penn Station | Fee Interest | 1 | 222,855 | 333 | 95.5 | 95.5 | 85.9 | 88.0 | 91.9 | $16,090 | $4,230 | 318 | ||||||||||||||||||||
Total Residential Properties | 1 | 222,855 | 333 | 95.5 | % | 95.5 | % | 85.9 | % | 88.0 | % | 91.9 | % | $16,090 | $4,230 | 318 | ||||||||||||||||||
Development / Redevelopment | ||||||||||||||||||||||||||||||||||
Ownership | # of | Useable | % of Total | Occupancy (%) | Annualized | Gross Total RE | Total | |||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-18 | Mar-18 | Dec-17 | Sep-17 | Jun-17 | Cash Rent ($'s) | Book Value | Tenants | ||||||||||||||||||||
609 Fifth Avenue | 100.0 | Rockefeller Center | Fee Interest | 1 | 160,000 | 100 | 3.0 | 5.2 | 67.8 | 68.3 | 72.8 | $380 | $212,433 | 2 | ||||||||||||||||||||
Total Development / Redevelopment Properties | 1 | 160,000 | 100 | % | 3.0 | % | 5.2 | % | 67.8 | % | 68.3 | % | 72.8 | % | $380 | $212,433 | 2 | |||||||||||||||||
(1) Calculated based on occupied units. Amounts in dollars. | ||||||||||||||||||||||||||||||||||
Supplemental Information | 37 | Second Quarter 2018 |
| ||
LARGEST TENANTS BY SLG SHARE OF ANNUALIZED CASH RENT Manhattan and Suburban Properties Unaudited (Dollars in Thousands Except Per SF) | | |
| ||
Lease | Total Rentable | Annualized | SLG Share of | % of SLG Share of | Annualized | Credit | |||||||||
Tenant Name | Property | Expiration | Square Feet | Cash Rent | Annualized Cash Rent ($) | Annualized Cash Rent (2) | Rent PSF | Rating (1) | |||||||
Credit Suisse Securities (USA), Inc. | 1 Madison Avenue | 2020 | 1,146,881 | $72,570 | $72,570 | 5.0% | $63.28 | ||||||||
11 Madison Avenue | 2037 | 1,265,841 | 78,077 | 46,846 | 3.2% | 61.68 | |||||||||
1055 Washington Blvd | 2019 | 2,525 | 95 | 95 | —% | 37.58 | |||||||||
2,415,247 | 150,742 | 119,511 | 8.2% | 62.41 | A | ||||||||||
Viacom International, Inc. | 1515 Broadway | 2031 | 1,470,284 | 90,028 | 51,316 | 3.5% | 60.98 | ||||||||
2028 | 9,106 | 1,870 | 1,066 | 0.1% | 205.39 | ||||||||||
1,479,390 | 91,898 | 52,382 | 3.6% | 62.12 | BBB- | ||||||||||
Ralph Lauren Corporation | 625 Madison Avenue | 2019 | 386,785 | 30,438 | 30,438 | 2.1% | 78.69 | A- | |||||||
Sony Corporation | 11 Madison Avenue | 2031 | 578,791 | 44,179 | 26,507 | 1.8% | 76.33 | BBB+ | |||||||
Debevoise & Plimpton, LLP | 919 Third Avenue | 2021 | 577,438 | 46,818 | 23,877 | 1.6% | 81.08 | ||||||||
King & Spalding | 1185 Avenue of the Americas | 2025 | 218,275 | 19,775 | 19,775 | 1.4% | 90.60 | ||||||||
The City of New York | 100 Church Street | 2034 | 509,068 | 18,166 | 18,166 | 1.2% | 35.69 | ||||||||
420 Lexington Avenue | 2030 | 4,077 | 272 | 272 | 0.1% | 66.64 | |||||||||
513,145 | 18,438 | 18,438 | 1.3% | 35.93 | Aa2 | ||||||||||
Advance Magazine Group, Fairchild Publications | 750 Third Avenue | 2021 | 286,622 | 14,506 | 14,506 | 1.0% | 50.61 | ||||||||
485 Lexington Avenue | 2021 | 52,573 | 3,587 | 3,587 | 0.2% | 68.24 | |||||||||
339,195 | 18,093 | 18,093 | 1.2% | 53.34 | |||||||||||
Victoria's Secret Stores, Inc. | 2 Herald Square | 2022 | 115,896 | 17,982 | 17,982 | 1.2% | 155.16 | ||||||||
Metro-North Commuter Railroad Company | 420 Lexington Avenue | 2034 | 327,117 | 17,436 | 17,436 | 1.2% | 53.30 | ||||||||
110 East 42nd Street | 2021 | 1,840 | 110 | 110 | —% | 59.56 | |||||||||
328,957 | 17,546 | 17,546 | 1.2% | 53.34 | Aa2 | ||||||||||
Giorgio Armani Corporation | 752-760 Madison Avenue | 2024 | 21,124 | 14,383 | 14,383 | 1.0% | 680.88 | ||||||||
717 Fifth Avenue | 2022 | 46,940 | 20,570 | 2,242 | 0.2% | 428.99 | |||||||||
762 Madison Avenue | 2024 | 1,264 | 231 | 208 | —% | 182.97 | |||||||||
69,328 | 35,184 | 16,833 | 1.2% | 507.50 | |||||||||||
Nike Retail Services, Inc. | 650 Fifth Avenue | 2033 | 69,214 | 33,190 | 16,595 | 1.1% | 479.53 | AA- | |||||||
News America Incorporated | 1185 Avenue of the Americas | 2020 | 165,086 | 16,439 | 16,439 | 1.1% | 99.58 | BBB+ | |||||||
C.B.S. Broadcasting, Inc. | 555 West 57th Street | 2023 | 338,527 | 15,121 | 15,121 | 1.0% | 44.67 | ||||||||
Worldwide Plaza | 2027 | 32,598 | 2,075 | 505 | 0.1% | 63.66 | |||||||||
371,125 | 17,196 | 15,626 | 1.1% | 46.34 | BBB | ||||||||||
Omnicom Group, Inc., Cardinia Real Estate | 220 East 42nd Street | 2032 | 231,114 | 14,623 | 14,623 | 1.0% | 63.27 | ||||||||
1055 Washington Blvd. | 2028 | 23,800 | 845 | 845 | 0.1% | 35.50 | |||||||||
254,914 | 15,468 | 15,468 | 1.1% | 60.68 | BBB+ | ||||||||||
National Hockey League | 1185 Avenue of the Americas | 2022 | 148,217 | 14,944 | 14,944 | 1.0% | 100.83 | ||||||||
Cravath, Swaine & Moore LLP | Worldwide Plaza | 2024 | 617,135 | 61,226 | 14,909 | 1.0% | 99.21 | ||||||||
Amerada Hess Corp. | 1185 Avenue of the Americas | 2027 | 167,169 | 14,360 | 14,360 | 1.0% | 85.90 | BBB- | |||||||
WME IMG, LLC | 304 Park Avenue | 2028 | 111,281 | 7,918 | 7,918 | 0.5% | 71.16 | ||||||||
11 Madison Avenue | 2030 | 103,426 | 9,023 | 5,414 | 0.4% | 87.24 | |||||||||
214,707 | 16,941 | 13,332 | 0.9% | 78.90 | |||||||||||
Nomura Holding America Inc. | Worldwide Plaza | 2033 | 819,906 | 40,758 | 9,925 | 0.7% | 49.71 | ||||||||
1100 King Street Blgd 5 | 2028 | 51,536 | 1,383 | 1,383 | 0.1% | 26.83 | |||||||||
810 Seventh Avenue | 2026 | 17,320 | 1,123 | 1,123 | 0.1% | 64.84 | |||||||||
888,762 | 43,264 | 12,431 | 0.9% | 48.68 | A- | ||||||||||
Total | 9,918,776 | $724,121 | $495,486 | 34.0% | $73.01 | ||||||||||
(1) Corporate or bond rating from S&P or Moody's. | |||||||||||||||
(2) SLG Share of Annualized Cash Rent includes Manhattan, Suburban, Retail, Residential, Development / Redevelopment and Land properties. | |||||||||||||||
Supplemental Information | 38 | Second Quarter 2018 |
| ||
TENANT DIVERSIFICATION Based on SLG Share of Annualized Cash Rent Unaudited | | |
| ||
Category | Manhattan Properties | Suburban Properties | ||||||||
Arts, Ent. & Recreation | 4.4 | % | — | % | ||||||
Business Services | 2.7 | % | — | % | ||||||
Financial Services | 32.9 | % | 31.4 | % | ||||||
Government / Non Profit | 3.1 | % | 2.4 | % | ||||||
Legal | 8.4 | % | 12.9 | % | ||||||
Manufacturing | 2.4 | % | 8.6 | % | ||||||
Medical | 2.1 | % | 1.0 | % | ||||||
Other | 5.0 | % | 5.7 | % | ||||||
Professional Services | 7.1 | % | 11.5 | % | ||||||
Retail | 12.4 | % | 0.8 | % | ||||||
TAMI | ||||||||||
Technology | 1.7 | % | 9.2 | % | ||||||
Advertising | 4.1 | % | 1.0 | % | ||||||
Media | 13.4 | % | 15.5 | % | ||||||
Information | 0.3 | % | — | % | ||||||
Total | 100.0 | % | 100.0 | % | ||||||
Supplemental Information | 39 | Second Quarter 2018 |
| ||
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Available Space Unaudited | | |
| ||
Activity | Building Address | # of Leases | Usable SF | Rentable SF | Escalated Rent/Rentable SF ($'s)(1) | ||||||
Available Space at 3/31/18 | 1,432,655 | ||||||||||
Add: Acquired Vacancies | 2 Herald Square | 67,917 | |||||||||
Space which became available during the Quarter (2): | |||||||||||
Office | |||||||||||
3 Columbus Circle | 1 | 3,646 | 3,649 | $85.25 | |||||||
30 East 40th Street | 3 | 3,104 | 3,104 | 70.73 | |||||||
100 Church Street | 1 | 45,419 | 45,419 | 43.34 | |||||||
100 Park Avenue | 1 | 10,058 | 10,750 | 121.02 | |||||||
110 Greene Street | 3 | 12,422 | 9,524 | 56.55 | |||||||
420 Lexington Avenue | 8 | 17,630 | 21,747 | 51.79 | |||||||
1185 Avenue of the Americas | 2 | 67,200 | 67,200 | 74.43 | |||||||
1350 Avenue of the Americas | 2 | 17,597 | 18,159 | 90.46 | |||||||
Total/Weighted Average | 21 | 177,076 | 179,552 | $67.44 | |||||||
Storage | |||||||||||
110 Greene Street | 1 | 1,346 | 1,346 | $30.31 | |||||||
Total/Weighted Average | 1 | 1,346 | 1,346 | $30.31 | |||||||
Total Space which became available during the quarter | |||||||||||
Office | 21 | 177,076 | 179,552 | $67.44 | |||||||
Storage | 1 | 1,346 | 1,346 | $30.31 | |||||||
22 | 178,422 | 180,898 | $67.17 | ||||||||
Total Available Space | 1,678,994 | ||||||||||
(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 | 40 | Second Quarter 2018 |
| ||
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Commenced Leasing Unaudited | | |
| ||
Activity | Building Address | # of Leases | Term (Yrs) | Usable SF | Rentable SF | New Cash Rent / Rentable SF(1) | Prev. Escalated Rent/ Rentable SF(2) | TI / Rentable SF | Free Rent # of Months | ||||||||||||||||||||
Available Space | 1,678,994 | ||||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||||
3 Columbus Circle | 2 | 7.7 | 7,622 | 7,701 | $77.26 | $80.20 | $16.59 | 3.0 | |||||||||||||||||||||
10 East 53rd Street | 2 | 9.3 | 9,316 | 10,397 | 105.86 | 99.58 | 90.13 | 4.3 | |||||||||||||||||||||
30 East 40th Street | 2 | 12.6 | 3,109 | 3,901 | 60.94 | 58.04 | 31.75 | 7.3 | |||||||||||||||||||||
100 Church Street | 1 | 15.6 | 45,419 | 46,492 | 65.00 | 42.34 | 57.33 | 7.0 | |||||||||||||||||||||
100 Park Avenue | 1 | 10.2 | 7,592 | 8,583 | 90.00 | 71.17 | 101.58 | 2.0 | |||||||||||||||||||||
110 East 42nd Street | 1 | 5.3 | 3,860 | 3,965 | 61.00 | — | 104.91 | 3.0 | |||||||||||||||||||||
110 Greene Street | 5 | 5.0 | 11,879 | 12,941 | 64.05 | 46.31 | 43.35 | 1.9 | |||||||||||||||||||||
220 East 42nd Street | 1 | 0.6 | 12,700 | 13,716 | 45.00 | — | 23.20 | — | |||||||||||||||||||||
420 Lexington Avenue | 17 | 8.0 | 39,807 | 52,934 | 61.19 | 58.05 | 46.44 | 4.1 | |||||||||||||||||||||
461 Fifth Avenue | 1 | 10.5 | 6,472 | 6,882 | 92.00 | 90.36 | 121.73 | 6.0 | |||||||||||||||||||||
521 Fifth Avenue | 1 | 10.8 | 18,516 | 20,987 | 60.00 | — | 97.71 | 9.0 | |||||||||||||||||||||
800 Third Avenue | 1 | 10.5 | 9,490 | 9,575 | 65.00 | 64.04 | — | 6.0 | |||||||||||||||||||||
810 Seventh Avenue | 1 | 3.1 | 3,604 | 3,604 | 62.00 | 55.38 | — | 1.0 | |||||||||||||||||||||
1185 Avenue of the Americas | 1 | 7.5 | 52,800 | 56,728 | 71.27 | 68.91 | — | — | |||||||||||||||||||||
1350 Avenue of the Americas | 3 | 5.1 | 6,372 | 6,597 | 74.37 | 104.95 | 94.50 | 2.5 | |||||||||||||||||||||
Total/Weighted Average | 40 | 9.1 | 238,558 | 265,003 | $67.65 | $61.82 | $45.25 | 3.8 | |||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||
11 Madison Avenue | 1 | 10.3 | 479 | 479 | $125.26 | $— | $35.49 | 4.0 | |||||||||||||||||||||
110 Greene Street | 1 | 0.4 | 1,913 | 1,913 | 156.82 | 278.67 | — | — | |||||||||||||||||||||
Total/Weighted Average | 2 | 2.4 | 2,392 | 2,392 | $150.50 | $278.67 | $7.11 | 0.8 | |||||||||||||||||||||
Storage | |||||||||||||||||||||||||||||
110 Greene Street | 1 | 11.0 | 225 | 225 | 35.00 | $— | $— | 9.50 | |||||||||||||||||||||
Total/Weighted Average | 1 | 11 | 225 | 225 | $35.00 | $— | $— | 9.5 | |||||||||||||||||||||
Leased Space | |||||||||||||||||||||||||||||
Office (3) | 40 | 9.1 | 238,558 | 265,003 | $67.65 | $61.82 | $45.25 | 3.8 | |||||||||||||||||||||
Retail | 2 | 2.4 | 2,392 | 2,392 | $150.50 | $278.67 | $7.11 | 0.8 | |||||||||||||||||||||
Storage | 1 | 11.0 | 225 | 225 | $35.00 | $— | $— | 9.5 | |||||||||||||||||||||
Total | 43 | 9.0 | 241,175 | 267,620 | $68.36 | $63.75 | $44.94 | 3.8 | |||||||||||||||||||||
Total Available Space as of 6/30/18 | 1,437,819 | ||||||||||||||||||||||||||||
Early Renewals | |||||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||||
3 Columbus Circle | 1 | 5.0 | 4,855 | 4,855 | $82.00 | $76.32 | $— | $— | |||||||||||||||||||||
30 East 40th Street | 2 | 9.0 | 1,968 | 2,366 | 61.38 | 62.83 | — | — | |||||||||||||||||||||
110 Greene Street | 1 | 1.0 | 11,854 | 11,684 | 94.46 | 67.45 | — | — | |||||||||||||||||||||
125 Park Avenue | 1 | 10.6 | 32,503 | 33,766 | 63.00 | 63.17 | 79.00 | 2.0 | |||||||||||||||||||||
420 Lexington Avenue | 5 | 2.9 | 19,694 | 27,940 | 66.37 | 60.99 | 11.12 | 0.5 | |||||||||||||||||||||
521 Fifth Avenue | 1 | 5.2 | 6,542 | 8,055 | 67.00 | 92.41 | 30.54 | 2.0 | |||||||||||||||||||||
800 Third Avenue | 1 | 2.1 | 4,956 | 5,436 | 63.00 | 59.14 | — | 1.0 | |||||||||||||||||||||
810 Seventh Avenue | 1 | 1.0 | 44,874 | 44,874 | 66.40 | 60.90 | — | — | |||||||||||||||||||||
1350 Avenue of the Americas | 1 | 5.3 | 1,555 | 1,555 | 72.00 | 74.55 | 10.00 | 4.0 | |||||||||||||||||||||
Total/Weighted Average | 14 | 4.3 | 128,801 | 140,531 | $68.33 | $64.46 | $23.05 | 0.8 | |||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||
11 Madison Avenue | 1 | 0.7 | 435 | 275 | $178.91 | $178.91 | $— | $— | |||||||||||||||||||||
625 Madison Avenue | 1 | 5.0 | 2,762 | 3,239 | 531.59 | 603.87 | — | — | |||||||||||||||||||||
World Wide Plaza | 2 | 10.0 | 1,976 | 1,900 | 225.00 | 218.33 | — | — | |||||||||||||||||||||
Total/Weighted Average | 4 | 6.5 | 5,173 | 5,414 | $406.08 | $446.98 | $— | $— | |||||||||||||||||||||
Renewals | |||||||||||||||||||||||||||||
Early Renewals Office | 14 | 4.3 | 128,801 | 140,531 | $68.33 | $64.46 | $23.05 | 0.8 | |||||||||||||||||||||
Early Renewals Retail | 4 | 6.5 | 5,173 | 5,414 | $406.08 | $446.98 | $— | — | |||||||||||||||||||||
Total | 18 | 4.4 | 133,974 | 145,945 | $80.86 | $78.65 | $22.20 | 0.7 | |||||||||||||||||||||
(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 $69.39/rsf for 212,404 rentable SF. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $68.97/rsf for 352,935 rentable SF. | |||||||||||||||||||||||||||||
Supplemental Information | 41 | Second Quarter 2018 |
| ||
LEASING ACTIVITY - SUBURBAN OPERATING PROPERTIES Available Space Unaudited | | |
| ||
Activity | Building Address | # of Leases | Usable SF | Rentable SF | Escalated Rent/Rentable SF ($'s)(1) | |||||||
Available Space at 3/31/18 | 690,722 | |||||||||||
Less: Sold Vacancies | — | (246,811 | ) | |||||||||
Space which became available during the Quarter (2): | ||||||||||||
Office | ||||||||||||
1100 King Street - 6 Int'l Drive, Rye Brook, New York | 1 | 15,148 | 15,148 | $25.81 | ||||||||
360 Hamilton Avenue, White Plains, New York | 1 | 2,650 | 2,650 | 40.17 | ||||||||
1 Landmark Square, Stamford, Connecticut | 3 | 8,427 | 8,427 | 29.14 | ||||||||
4 Landmark Square, Stamford, Connecticut | 1 | 7,807 | 7,807 | 32.50 | ||||||||
1010 Washington Boulevard, Stamford, Connecticut | 1 | 10,005 | 10,387 | 38.32 | ||||||||
Total/Weighted Average | 7 | 44,037 | 44,419 | $31.40 | ||||||||
Retail | ||||||||||||
3 Landmark Square, Stamford, Connecticut | 1 | 1,922 | 1,922 | $37.54 | ||||||||
4 Landmark Square, Stamford, Connecticut | 1 | 771 | 771 | 17.00 | ||||||||
2 | 2,693 | 2,693 | $31.66 | |||||||||
Storage | ||||||||||||
1 Landmark Square, Stamford, Connecticut | 2 | 700 | 700 | $38.14 | ||||||||
5 Landmark Square, Stamford, Connecticut | 1 | 100 | 100 | 15.00 | ||||||||
Total/Weighted Average | 3 | 800 | 800 | $35.25 | ||||||||
Total Space which became available during the Quarter | ||||||||||||
Office | 7 | 44,037 | 44,419 | $31.40 | ||||||||
Retail | 2 | 2,693 | 2,693 | $31.66 | ||||||||
Storage | 3 | 800 | 800 | $35.25 | ||||||||
12 | 47,530 | 47,912 | $31.48 | |||||||||
Total Available Space | 491,441 | |||||||||||
(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 | Second Quarter 2018 |
| ||
LEASING ACTIVITY - SUBURBAN OPERATING PROPERTIES Commenced Leasing Unaudited | | |
| ||
Activity | Building Address | # of Leases | Term (Yrs) | Usable SF | Rentable SF | New Cash Rent / Rentable SF(1) | Prev. Escalated Rent/ Rentable SF(2) | TI / Rentable SF | Free Rent # of Months | ||||||||||||||||||
Available Space | 491,441 | ||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||
100 Summit Lake Drive, Valhalla, New York | 2 | 7.7 | 15,269 | 15,269 | $27.40 | $27.29 | $40.99 | — | |||||||||||||||||||
360 Hamilton Avenue, White Plains, New York | 1 | 3.5 | 2,650 | 2,650 | 41.00 | 40.17 | 15.00 | 6.8 | |||||||||||||||||||
1 Landmark Square, Stamford, Connecticut | 4 | 9.5 | 14,800 | 14,800 | 41.13 | 46.20 | 4.70 | 1.2 | |||||||||||||||||||
2 Landmark Square, Stamford, Connecticut | 1 | 6.0 | 1,104 | 1,104 | 33.50 | — | 36.37 | 4.0 | |||||||||||||||||||
4 Landmark Square, Stamford, Connecticut | 1 | 3.3 | 7,807 | 7,807 | 32.50 | 32.50 | 7.50 | 3.0 | |||||||||||||||||||
1055 Washington Boulevard, Stamford, Connecticut | 3 | 4.8 | 7,780 | 6,798 | 31.54 | 36.62 | 29.42 | 4.0 | |||||||||||||||||||
Total/Weighted Average | 12 | 6.9 | 49,410 | 48,428 | $33.88 | $37.50 | $21.35 | 1.9 | |||||||||||||||||||
Retail | |||||||||||||||||||||||||||
4 Landmark Square, Stamford, Connecticut | 1 | 5.0 | 771 | 771 | $17.00 | $17.00 | $— | — | |||||||||||||||||||
Total/Weighted Average | 1 | 5.0 | 771 | 771 | $17.00 | $17.00 | $— | — | |||||||||||||||||||
Storage | |||||||||||||||||||||||||||
1 Landmark Square, Stamford, Connecticut | 2 | 1.5 | 300 | 322 | $11.89 | $10.00 | $— | — | |||||||||||||||||||
5 Landmark Square, Stamford, Connecticut | 1 | 2.5 | 100 | 100 | 15.00 | 15.00 | — | — | |||||||||||||||||||
Total/Weighted Average | 3 | 1.7 | 400 | 422 | $12.63 | $11.67 | $— | — | |||||||||||||||||||
Leased Space | |||||||||||||||||||||||||||
Office (3) | 12 | 6.9 | 49,410 | 48,428 | $33.88 | $37.50 | $21.35 | 1.9 | |||||||||||||||||||
Retail | 1 | 5 | 771 | 771 | $17.00 | $17.00 | $— | — | |||||||||||||||||||
Storage | 3 | 1.7 | 400 | 422 | $12.63 | $11.67 | $— | — | |||||||||||||||||||
Total | 16 | 6.8 | 50,581 | 49,621 | $33.44 | $36.86 | $20.84 | 1.8 | |||||||||||||||||||
Total Available Space as of 6/30/18 | 440,860 | ||||||||||||||||||||||||||
Early Renewals | |||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||
360 Hamilton Avenue, White Plains, New York | 1 | 5.5 | 1,144 | 2,449 | $39.00 | $39.53 | $10.00 | 19.5 | |||||||||||||||||||
1 Landmark Square, Stamford, Connecticut | 1 | 5.4 | 1,020 | 1,020 | 39.00 | 38.88 | 10.00 | 5.0 | |||||||||||||||||||
3 Landmark Square, Stamford, Connecticut | 1 | 6.8 | 3,271 | 3,271 | 34.00 | 36.06 | 15.00 | 17.0 | |||||||||||||||||||
1055 Washington Boulevard, Stamford, Connecticut | 1 | 3.3 | 5,750 | 5,934 | 37.00 | 35.25 | 6.00 | 9.3 | |||||||||||||||||||
Total/Weighted Average | 4 | 4.8 | 11,185 | 12,674 | $36.77 | $36.58 | $9.42 | 12.9 | |||||||||||||||||||
Renewals | |||||||||||||||||||||||||||
Early Renewals Office | 4 | 4.8 | 11,185 | 12,674 | $36.77 | $36.58 | $9.42 | 12.9 | |||||||||||||||||||
Total | 4 | 8.1 | 11,185 | 12,674 | $32.50 | $38.11 | $29.76 | 10.9 | |||||||||||||||||||
(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 $35.52/rsf for 35,552 rentable SF. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $35.85/rsf 48,226 rentable SF. | |||||||||||||||||||||||||||
Supplemental Information | 43 | Second Quarter 2018 |
| ||
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 2018 (1) | 5 | 3,397 | 0.03 | % | $70,451 | $20.74 | $23.47 | 1 | 291 | — | % | $6,600 | $22.68 | $25.00 | ||||||||||||||||||||
2nd Quarter 2018 (1) | 1 | 4,612 | 0.04 | % | 371,667 | 80.59 | 86.48 | 3 | 13,358 | 0.12 | % | 1,019,163 | 76.30 | 74.36 | ||||||||||||||||||||
3rd Quarter 2018 | 10 | 191,062 | 1.56 | % | 13,389,519 | 70.08 | 76.47 | 4 | 17,600 | 0.15 | % | 1,344,714 | 76.40 | 71.77 | ||||||||||||||||||||
4th Quarter 2018 | 21 | 108,645 | 0.89 | % | 8,814,147 | 81.13 | 83.32 | 8 | 100,719 | 0.88 | % | 10,356,113 | 102.82 | 87.41 | ||||||||||||||||||||
Total 2018 | 37 | 307,716 | 2.52 | % | $22,645,784 | $73.59 | $78.46 | 16 | 131,968 | 1.15 | % | $12,726,590 | $96.44 | $83.86 | ||||||||||||||||||||
2019 | 78 | 970,214 | 7.93 | % | $71,996,642 | $74.21 | $70.89 | 26 | 369,422 | 3.22 | % | $29,477,667 | $79.79 | $84.40 | ||||||||||||||||||||
2020 | 95 | 2,297,837 | 18.78 | % | 151,686,531 | 66.01 | 70.36 | 29 | 297,735 | 2.59 | % | 19,926,472 | 66.93 | 70.85 | ||||||||||||||||||||
2021 | 98 | 1,190,229 | 9.73 | % | 70,767,201 | 59.46 | 67.08 | 38 | 977,530 | 8.51 | % | 71,686,783 | 73.33 | 75.09 | ||||||||||||||||||||
2022 | 92 | 1,224,199 | 10.01 | % | 93,679,941 | 76.52 | 84.72 | 36 | 312,309 | 2.72 | % | 26,693,993 | 85.47 | 89.35 | ||||||||||||||||||||
2023 | 62 | 824,154 | 6.74 | % | 49,376,534 | 59.91 | 65.40 | 17 | 462,070 | 4.02 | % | 37,960,637 | 82.15 | 79.68 | ||||||||||||||||||||
2024 | 32 | 289,330 | 2.36 | % | 20,190,637 | 69.78 | 73.79 | 26 | 1,046,765 | 9.11 | % | 101,287,442 | 96.76 | 85.95 | ||||||||||||||||||||
2025 | 31 | 508,411 | 4.16 | % | 49,699,736 | 97.76 | 92.32 | 16 | 553,655 | 4.82 | % | 43,364,088 | 78.32 | 83.22 | ||||||||||||||||||||
2026 | 26 | 758,716 | 6.20 | % | 48,407,669 | 63.80 | 68.28 | 19 | 486,909 | 4.24 | % | 49,812,461 | 102.30 | 109.17 | ||||||||||||||||||||
2027 | 37 | 574,373 | 4.69 | % | 43,589,789 | 75.89 | 72.90 | 17 | 310,167 | 2.70 | % | 26,754,849 | 86.26 | 91.44 | ||||||||||||||||||||
Thereafter | 81 | 3,289,923 | 26.88 | % | 190,007,227 | 57.75 | 67.00 | 56 | 6,536,242 | 56.92 | % | 431,582,331 | 66.03 | 84.55 | ||||||||||||||||||||
669 | 12,235,102 | 100.00 | % | $812,047,691 | $66.37 | $71.47 | 296 | 11,484,772 | 100.00 | % | $851,273,313 | $74.12 | $84.61 | |||||||||||||||||||||
NOTE: Data excludes space currently occupied by SL Green's corporate offices | ||||||||||||||||||||||||||||||||||
(1) Includes month to month holdover tenants that expired prior to June 30, 2018. | ||||||||||||||||||||||||||||||||||
(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 June 30, 2018. Taking rents are typically lower than asking rents and may vary from property to property. | ||||||||||||||||||||||||||||||||||
Supplemental Information | 44 | Second Quarter 2018 |
| ||
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 2018 (1) | 8 | 38,708 | 1.67 | % | $1,603,869 | $41.44 | $37.16 | — | — | — | % | $— | $— | $— | ||||||||||||||||||||
2nd Quarter 2018 (1) | — | — | — | % | — | — | — | — | — | — | % | — | — | — | ||||||||||||||||||||
3rd Quarter 2018 | 7 | 46,525 | 2.01 | % | 1,439,676 | 30.94 | 30.03 | — | — | — | % | — | — | — | ||||||||||||||||||||
4th Quarter 2018 | 8 | 59,611 | 2.58 | % | 2,051,748 | 34.42 | 37.65 | — | — | — | % | — | — | — | ||||||||||||||||||||
Total 2018 | 23 | 144,844 | 6.26 | % | $5,095,293 | $35.18 | $35.07 | — | — | — | % | $— | $— | $— | ||||||||||||||||||||
2019 | 37 | 384,997 | 16.63 | % | $11,319,623 | $29.40 | $29.10 | — | — | — | % | $— | $— | $— | ||||||||||||||||||||
2020 | 47 | 283,976 | 12.27 | % | 10,036,038 | 35.34 | 35.78 | — | — | — | % | — | — | — | ||||||||||||||||||||
2021 | 37 | 308,729 | 13.34 | % | 10,352,756 | 33.53 | 33.07 | — | — | — | % | — | — | — | ||||||||||||||||||||
2022 | 28 | 125,894 | 5.44 | % | 4,741,512 | 37.66 | 38.56 | — | — | — | % | — | — | — | ||||||||||||||||||||
2023 | 28 | 201,963 | 8.73 | % | 6,811,578 | 33.73 | 33.18 | — | — | — | % | — | — | — | ||||||||||||||||||||
2024 | 7 | 48,634 | 2.10 | % | 1,579,212 | 32.47 | 32.84 | — | — | — | % | — | — | — | ||||||||||||||||||||
2025 | 10 | 154,594 | 6.68 | % | 4,742,479 | 30.68 | 30.71 | — | — | — | % | — | — | — | ||||||||||||||||||||
2026 | 16 | 291,946 | 12.61 | % | 10,059,327 | 34.46 | 33.82 | — | — | — | % | — | — | — | ||||||||||||||||||||
2027 | 4 | 75,803 | 3.28 | % | 1,863,245 | 24.58 | 27.06 | — | — | — | % | — | — | — | ||||||||||||||||||||
Thereafter | 17 | 293,094 | 12.66 | % | 8,447,177 | 28.82 | 29.00 | — | — | — | % | — | — | — | ||||||||||||||||||||
254 | 2,314,474 | 100.00 | % | $75,048,240 | $32.43 | $32.40 | — | — | — | % | $— | $— | $— | |||||||||||||||||||||
(1) Includes month to month holdover tenants that expired prior to June 30, 2018. | ||||||||||||||||||||||||||||||||||
(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 June 30, 2018. Taking rents are typically lower than asking rents and may vary from property to property. | ||||||||||||||||||||||||||||||||||
Supplemental Information | 45 | Second Quarter 2018 |
| ||
ANNUAL LEASE EXPIRATIONS Retail Operating and Development / Redevelopment 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) | |||||||||||||||||||||||
High Street Retail | |||||||||||||||||||||||||||||||||||
2018 (1) | 1 | 1,527 | 0.49 | % | $36,000 | $23.58 | $24.75 | 2 | 25,334 | 6.61 | % | $1,704,146 | $67.27 | $99.26 | |||||||||||||||||||||
2019 | 3 | 2,400 | 0.77 | % | 73,232 | 30.51 | 32.04 | 3 | 10,693 | 2.79 | % | 146,143 | 13.67 | 14.35 | |||||||||||||||||||||
2020 | 4 | 8,201 | 2.63 | % | 914,576 | 111.52 | 187.39 | 3 | 25,424 | 6.63 | % | 5,711,143 | 224.64 | 226.48 | |||||||||||||||||||||
2021 | 1 | 108,148 | 34.65 | % | 7,346,848 | 67.93 | 70.00 | 3 | 21,411 | 5.59 | % | 4,459,779 | 208.29 | 128.09 | |||||||||||||||||||||
2022 | 1 | 1,165 | 0.37 | % | 200,004 | 171.68 | 299.00 | 2 | 50,808 | 13.26 | % | 24,062,039 | 473.59 | 510.78 | |||||||||||||||||||||
2023 | 3 | 9,825 | 3.15 | % | 1,156,224 | 117.68 | 138.76 | 3 | 12,764 | 3.33 | % | 1,884,478 | 147.64 | 233.49 | |||||||||||||||||||||
2024 | 4 | 74,286 | 23.80 | % | 16,981,040 | 228.59 | 233.24 | 1 | 7,793 | 2.03 | % | 4,898,196 | 628.54 | 898.00 | |||||||||||||||||||||
2025 | 3 | 33,944 | 10.88 | % | 905,066 | 26.66 | 24.15 | 3 | 16,143 | 4.21 | % | 1,247,313 | 77.27 | 70.43 | |||||||||||||||||||||
2026 | 1 | 5,218 | 1.67 | % | 3,402,784 | 652.12 | 537.00 | 3 | 69,206 | 18.05 | % | 25,966,916 | 375.21 | 372.53 | |||||||||||||||||||||
2027 | 1 | 1,358 | 0.44 | % | 118,893 | 87.55 | 96.00 | 2 | 9,288 | 2.42 | % | 1,020,853 | 109.91 | 103.33 | |||||||||||||||||||||
Thereafter | 3 | 66,013 | 21.15 | % | 3,951,605 | 59.86 | 83.99 | 4 | 134,447 | 35.08 | % | 80,662,024 | 599.95 | 607.64 | |||||||||||||||||||||
25 | 312,085 | 100.00 | % | $35,086,272 | $112.43 | $120.34 | 29 | 383,311 | 100.00 | % | $151,763,030 | $395.93 | $408.73 | ||||||||||||||||||||||
Vacancy (5) | 24,256 | 231.20 | 38,297 | 100.82 | |||||||||||||||||||||||||||||||
336,341 | $128.34 | 421,608 | $380.76 | ||||||||||||||||||||||||||||||||
Other Retail | |||||||||||||||||||||||||||||||||||
2018 (1) | 6 | 13,419 | 1.59 | % | $1,836,838 | $136.88 | $205.74 | 2 | 1,081 | 0.31 | % | $92,165 | $85.26 | $170.62 | |||||||||||||||||||||
2019 | 5 | 56,212 | 6.64 | % | 5,109,625 | 90.90 | 116.94 | 3 | 7,520 | 2.14 | % | 1,251,783 | 166.46 | 200.16 | |||||||||||||||||||||
2020 | 7 | 20,225 | 2.39 | % | 5,090,175 | 251.68 | 361.70 | 2 | 31,930 | 9.11 | % | 1,368,973 | 42.87 | 45.60 | |||||||||||||||||||||
2021 | 12 | 24,579 | 2.90 | % | 2,926,278 | 119.06 | 163.27 | 4 | 5,185 | 1.48 | % | 421,048 | 81.21 | 90.51 | |||||||||||||||||||||
2022 | 14 | 181,851 | 21.49 | % | 29,013,518 | 159.55 | 206.68 | 7 | 18,607 | 5.31 | % | 2,566,126 | 137.91 | 177.92 | |||||||||||||||||||||
2023 | 7 | 41,701 | 4.93 | % | 5,948,582 | 142.65 | 156.46 | 4 | 15,851 | 4.52 | % | 2,083,832 | 131.46 | 123.70 | |||||||||||||||||||||
2024 | 8 | 29,730 | 3.51 | % | 7,144,268 | 240.31 | 223.48 | 5 | 14,543 | 4.15 | % | 1,323,164 | 90.98 | 87.59 | |||||||||||||||||||||
2025 | 10 | 33,285 | 3.93 | % | 11,496,543 | 345.40 | 361.72 | 1 | 330 | 0.09 | % | 44,462 | 134.73 | 127.00 | |||||||||||||||||||||
2026 | 6 | 19,697 | 2.33 | % | 9,018,347 | 457.85 | 438.78 | 5 | 39,329 | 11.22 | % | 6,199,267 | 157.63 | 169.21 | |||||||||||||||||||||
2027 | 14 | 66,455 | 7.85 | % | 17,068,782 | 256.85 | 267.63 | 6 | 13,895 | 3.96 | % | 1,723,555 | 124.04 | 129.80 | |||||||||||||||||||||
Thereafter | 34 | 359,015 | 42.43 | % | 34,655,522 | 96.53 | 106.06 | 18 | 202,368 | 57.71 | % | 30,517,676 | 150.80 | 153.92 | |||||||||||||||||||||
123 | 846,169 | 99.99 | % | $129,308,478 | $152.82 | $174.86 | 57 | 350,639 | 100.00 | % | $47,592,051 | $135.73 | $142.05 | ||||||||||||||||||||||
Vacancy (5) | 77,900 | 274.13 | 3,807 | 568.33 | |||||||||||||||||||||||||||||||
924,069 | $183.23 | 354,446 | $146.63 | ||||||||||||||||||||||||||||||||
(1) Includes month to month holdover tenants that expired prior to June 30, 2018. | |||||||||||||||||||||||||||||||||||
(2) Tenants may have multiple leases. | |||||||||||||||||||||||||||||||||||
(3) Represents in place annualized rent allocated by year of expiration. | |||||||||||||||||||||||||||||||||||
(4) Management's estimate of average asking rents for currently occupied space as of June 30, 2018. Taking rents are typically lower than asking rents and may vary from property to property. | |||||||||||||||||||||||||||||||||||
(5) Includes square footage on leases signed but not yet commenced. | |||||||||||||||||||||||||||||||||||
Supplemental Information | 46 | Second Quarter 2018 |
| ||
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Manhattan Unaudited (Dollars in Thousands) | | |
| ||
Gross Asset | Occupancy (%) | ||||||||||||||||
Property | Submarket | Interest Acquired | Type of Ownership | Net Rentable SF | Valuation ($'s) (1) | at acquisition | 6/30/2018 | ||||||||||
1998 - 2017 Acquisitions | |||||||||||||||||
Mar-98 | 420 Lexington Avenue | Grand Central | 100.0% | Operating Sublease | 1,188,000 | $ | 78,000 | 83.0 | 96.8 | ||||||||
May-98 | 711 3rd Avenue | Grand Central | 100.0 | Operating Sublease | 524,000 | 65,600 | 79.0 | 89.3 | |||||||||
Jun-98 | 440 9th Avenue | Penn Station | 100.0 | Fee Interest | 339,000 | 32,000 | 76.0 | N/A | |||||||||
Jan-99 | 420 Lexington Leasehold | Grand Central | 100.0 | Sub-leasehold | — | 27,300 | — | — | |||||||||
Jan-99 | 555 West 57th Street | Midtown West | 65.0 | Fee Interest | 941,000 | 66,700 | 100.0 | 99.9 | |||||||||
Aug-99 | 1250 Broadway | Penn Station | 50.0 | Fee Interest | 670,000 | 93,000 | 96.5 | N/A | |||||||||
Nov-99 | 555 West 57th Street | Midtown West | 35.0 | Fee Interest | — | 34,100 | 99.9 | ||||||||||
Feb-00 | 100 Park Avenue | Grand Central | 50.0 | Fee Interest | 834,000 | 192,000 | 96.5 | 92.0 | |||||||||
Jun-01 | 317 Madison Avenue | Grand Central | 100.0 | Fee Interest | 450,000 | 105,600 | 95.0 | N/A | |||||||||
Sep-01 | 1250 Broadway | Penn Station | 49.9 | Fee Interest | 670,000 | 126,500 | 97.7 | N/A | |||||||||
May-02 | 1515 Broadway | Times Square | 55.0 | Fee Interest | 1,750,000 | 483,500 | 98.0 | 98.5 | |||||||||
Feb-03 | 220 East 42nd Street | Grand Central | 100.0 | Fee Interest | 1,135,000 | 265,000 | 91.9 | 62.5 | |||||||||
Mar-03 | 125 Broad Street | Downtown | 100.0 | Fee Interest | 525,000 | 92,000 | 100.0 | N/A | |||||||||
Oct-03 | 461 Fifth Avenue | Midtown | 100.0 | Leasehold Interest | 200,000 | 60,900 | 93.9 | 79.0 | |||||||||
Dec-03 | 1221 Avenue of the Americas | Rockefeller Center | 45.0 | Fee Interest | 2,550,000 | 1,000,000 | 98.8 | N/A | |||||||||
Mar-04 | 19 West 44th Street | Midtown | 35.0 | Fee Interest | 292,000 | 67,000 | 86.0 | N/A | |||||||||
Jul-04 | 750 Third Avenue | Grand Central | 100.0 | Fee Interest | 779,000 | 255,000 | 100.0 | 98.9 | |||||||||
Jul-04 | 485 Lexington Avenue | Grand Central | 30.0 | Fee Interest | 921,000 | 225,000 | 100.0 | 76.4 | |||||||||
Oct-04 | 625 Madison Avenue | Plaza District | 100.0 | Leasehold Interest | 563,000 | 231,500 | 68.0 | 98.8 | |||||||||
Feb-05 | 28 West 44th Street | Midtown | 100.0 | Fee Interest | 359,000 | 105,000 | 87.0 | N/A | |||||||||
Apr-05 | 1 Madison Avenue | Park Avenue South | 55.0 | Fee Interest | 1,177,000 | 803,000 | 96.0 | 100.0 | |||||||||
Apr-05 | 5 Madison Avenue Clock Tower | Park Avenue South | 100.0 | Fee Interest | 267,000 | 115,000 | N/A | N/A | |||||||||
Jun-05 | 19 West 44th Street | Midtown | 65.0 | Fee Interest | — | 91,200 | N/A | ||||||||||
Mar-06 | 521 Fifth Avenue | Midtown | 100.0 | Leasehold Interest | 460,000 | 210,000 | 97.0 | 94.2 | |||||||||
Jun-06 | 609 Fifth Avenue | Midtown | 100.0 | Fee Interest | 160,000 | 182,000 | 98.5 | 3.0 | |||||||||
Dec-06 | 485 Lexington Avenue | Grand Central | 70.0 | Fee Interest | — | 578,000 | 76.4 | ||||||||||
Dec-06 | 800 Third Avenue | Grand Central North | 43.0 | Fee Interest | 526,000 | 285,000 | 96.9 | 96.4 | |||||||||
Jan-07 | Reckson - NYC Portfolio | Various | 100.0 | Fee Interests / Leasehold Interest | 5,612,000 | 3,679,530 | 98.3 | 96.6 | |||||||||
Apr-07 | 331 Madison Avenue | Grand Central | 100.0 | Fee Interest | 114,900 | 73,000 | 97.6 | N/A | |||||||||
Apr-07 | 1745 Broadway | Midtown | 32.3 | Leasehold Interest | 674,000 | 520,000 | 100.0 | N/A | |||||||||
Jun-07 | 333 West 34th Street | Penn Station | 100.0 | Fee Interest | 345,400 | 183,000 | 100.0 | N/A | |||||||||
Aug-07 | 1 Madison Avenue | Park Avenue South | 45.0 | Fee Interest | 1,177,000 | 1,000,000 | 99.8 | 100.0 | |||||||||
Dec-07 | 388 & 390 Greenwich Street | Downtown | 50.6 | Fee Interest | 2,635,000 | 1,575,000 | 100.0 | N/A | |||||||||
Jan-10 | 100 Church Street | Downtown | 100.0 | Fee Interest | 1,047,500 | 181,600 | 41.3 | 98.8 | |||||||||
May-10 | 600 Lexington Avenue | Grand Central North | 55.0 | Fee Interest | 303,515 | 193,000 | 93.6 | N/A | |||||||||
Aug-10 | 125 Park Avenue | Grand Central | 100.0 | Fee Interest | 604,245 | 330,000 | 99.1 | 99.6 | |||||||||
Jan-11 | 521 Fifth Avenue | Midtown | 49.9 | Leasehold Interest | 460,000 | 245,700 | 80.7 | 94.2 | |||||||||
Apr-11 | 1515 Broadway | Times Square | 45.0 | Fee Interest | 1,750,000 | 1,210,000 | 98.5 | 98.5 | |||||||||
May-11 | 110 East 42nd Street | Grand Central | 100.0 | Fee Interest | 205,000 | 85,570 | 72.6 | 77.1 | |||||||||
May-11 | 280 Park Avenue | Park Avenue | 49.5 | Fee Interest | 1,219,158 | 1,110,000 | 78.2 | 92.8 | |||||||||
Nov-11 | 180 Maiden Lane | Financial East | 49.9 | Fee Interest | 1,090,000 | 425,680 | 97.7 | N/A | |||||||||
Nov-11 | 51 East 42nd Street | Grand Central | 100.0 | Fee Interest | 142,000 | 80,000 | 95.5 | N/A | |||||||||
Feb-12 | 10 East 53rd Street | Plaza District | 55.0 | Fee Interest | 354,300 | 252,500 | 91.9 | 83.7 | |||||||||
Jun-12 | 304 Park Avenue South | Midtown South | 100.0 | Fee Interest | 215,000 | 135,000 | 95.8 | 100.0 | |||||||||
Sep-12 | 641 Sixth Avenue | Midtown South | 100.0 | Fee Interest | 163,000 | 90,000 | 92.1 | 100.0 | |||||||||
Dec-12 | 315 West 36th Street | Times Square South | 35.5 | Fee Interest | 147,619 | 46,000 | 99.2 | N/A | |||||||||
May-14 | 388 & 390 Greenwich Street | Downtown | 49.4 | Fee Interest | 2,635,000 | 1,585,000 | 100.0 | N/A | |||||||||
Jul-15 | 110 Greene Street | Soho | 90.0 | Fee Interest | 223,600 | 255,000 | 84.0 | 83.5 | |||||||||
Aug-15 | 30 East 40th Street | Grand Central South | 60.0 | Leasehold Interest | 69,446 | 4,650 | 100.0 | 91.6 | |||||||||
Aug-15 | 11 Madison Avenue | Park Avenue South | 100.0 | Fee Interest | 2,314,000 | 2,285,000 | 71.6 | 100.0 | |||||||||
Dec-15 | 600 Lexington Avenue | Grand Central North | 45.0 | Fee Interest | 303,515 | 284,000 | 95.5 | N/A | |||||||||
Oct-17 | Worldwide Plaza | Westside | 24.4 | Fee Interest | 2,048,725 | 1,725,000 | 100.0 | 98.5 | |||||||||
43,133,923 | $ | 23,424,130 | |||||||||||||||
2018 Acquisitions | |||||||||||||||||
May-18 | 2 Herald Square | Herald Square | 100.0 | Leasehold Interest | 369,000 | $ | 266,000 | 81.6 | 81.6 | ||||||||
369,000 | $ | 266,000 | |||||||||||||||
(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties. | |||||||||||||||||
Supplemental Information | 47 | Second Quarter 2018 |
| ||
SUMMARY OF REAL ESTATE SALES ACTIVITY Manhattan Unaudited (Dollars in Thousands) | | |
| ||
Gross Asset Valuation | ||||||||||||||||||||||
Property | Submarket | Interest Sold | Type of Ownership | Net Rentable SF | ($'s) | ($'s/SF) | ||||||||||||||||
2000 - 2015 Sales | ||||||||||||||||||||||
Feb-00 | 29 West 35th Street | Penn Station | 100.0% | Fee Interest | 78,000 | $ | 11,700 | $ | 150 | |||||||||||||
Mar-00 | 36 West 44th Street | Grand Central | 100.0 | Fee Interest | 178,000 | 31,500 | 177 | |||||||||||||||
May-00 | 321 West 44th Street | Times Square | 35.0 | Fee Interest | 203,000 | 28,400 | 140 | |||||||||||||||
Nov-00 | 90 Broad Street | Financial | 100.0 | Fee Interest | 339,000 | 60,000 | 177 | |||||||||||||||
Dec-00 | 17 Battery South | Financial | 100.0 | Fee Interest | 392,000 | 53,000 | 135 | |||||||||||||||
Jan-01 | 633 Third Ave | Grand Central North | 100.0 | Fee Interest | 40,623 | 13,250 | 326 | |||||||||||||||
May-01 | 1 Park Ave | Grand Central South | 45.0 | Fee Interest | 913,000 | 233,900 | 256 | |||||||||||||||
Jun-01 | 1412 Broadway | Times Square South | 100.0 | Fee Interest | 389,000 | 90,700 | 233 | |||||||||||||||
Jul-01 | 110 East 42nd Street | Grand Central | 100.0 | Fee Interest | 69,700 | 14,500 | 208 | |||||||||||||||
Sep-01 | 1250 Broadway | Penn Station | 45.0 | Fee Interest | 670,000 | 126,500 | 189 | |||||||||||||||
Jun-02 | 469 Seventh Avenue | Penn Station | 100.0 | Fee Interest | 253,000 | 53,100 | 210 | |||||||||||||||
Mar-03 | 50 West 23rd Street | Chelsea | 100.0 | Fee Interest | 333,000 | 66,000 | 198 | |||||||||||||||
Jul-03 | 1370 Broadway | Times Square South | 100.0 | Fee Interest | 255,000 | 58,500 | 229 | |||||||||||||||
Dec-03 | 321 West 44th Street | Times Square | 100.0 | Fee Interest | 203,000 | 35,000 | 172 | |||||||||||||||
May-04 | 1 Park Avenue | Grand Central South | 75.0 | Fee Interest | 913,000 | 318,500 | 349 | |||||||||||||||
Oct-04 | 17 Battery Place North | Financial | 100.0 | Fee Interest | 419,000 | 70,000 | 167 | |||||||||||||||
Nov-04 | 1466 Broadway | Times Square | 100.0 | Fee Interest | 289,000 | 160,000 | 554 | |||||||||||||||
Apr-05 | 1414 Avenue of the Americas | Plaza District | 100.0 | Fee Interest | 111,000 | 60,500 | 545 | |||||||||||||||
Aug-05 | 180 Madison Avenue | Grand Central | 100.0 | Fee Interest | 265,000 | 92,700 | 350 | |||||||||||||||
Jul-06 | 286 & 290 Madison Avenue | Grand Central | 100.0 | Fee Interest | 149,000 | 63,000 | 423 | |||||||||||||||
Aug-06 | 1140 Avenue of the Americas | Rockefeller Center | 100.0 | Leasehold Interest | 191,000 | 97,500 | 510 | |||||||||||||||
Dec-06 | 521 Fifth Avenue | Midtown | 50.0 | Leasehold Interest | 460,000 | 240,000 | 522 | |||||||||||||||
Mar-07 | 1 Park Avenue | Grand Central South | 100.0 | Fee Interest | 913,000 | 550,000 | 602 | |||||||||||||||
Mar-07 | 70 West 36th Street | Garment | 100.0 | Fee Interest | 151,000 | 61,500 | 407 | |||||||||||||||
Jun-07 | 110 East 42nd Street | Grand Central North | 100.0 | Fee Interest | 181,000 | 111,500 | 616 | |||||||||||||||
Jun-07 | 125 Broad Street | Downtown | 100.0 | Fee Interest | 525,000 | 273,000 | 520 | |||||||||||||||
Jun-07 | 5 Madison Clock Tower | Park Avenue South | 100.0 | Fee Interest | 267,000 | 200,000 | 749 | |||||||||||||||
Jul-07 | 292 Madison Avenue | Grand Central South | 100.0 | Fee Interest | 187,000 | 140,000 | 749 | |||||||||||||||
Jul-07 | 1372 Broadway | Penn Station/Garment | 85.0 | Fee Interest | 508,000 | 335,000 | 659 | |||||||||||||||
Nov-07 | 470 Park Avenue South | Park Avenue South/Flatiron | 100.0 | Fee Interest | 260,000 | 157,000 | 604 | |||||||||||||||
Jan-08 | 440 Ninth Avenue | Penn Station | 100.0 | Fee Interest | 339,000 | 160,000 | 472 | |||||||||||||||
May-08 | 1250 Broadway | Penn Station | 100.0 | Fee Interest | 670,000 | 310,000 | 463 | |||||||||||||||
Oct-08 | 1372 Broadway | Penn Station/Garment | 15.0 | Fee Interest | 508,000 | 274,000 | 539 | |||||||||||||||
May-10 | 1221 Avenue of the Americas | Rockefeller Center | 45.0 | Fee Interest | 2,550,000 | 1,280,000 | 502 | |||||||||||||||
Sep-10 | 19 West 44th Street | Midtown | 100.0 | Fee Interest | 292,000 | 123,150 | 422 | |||||||||||||||
May-11 | 28 West 44th Street | Midtown | 100.0 | Fee Interest | 359,000 | 161,000 | 448 | |||||||||||||||
Aug-13 | 333 West 34th Street | Penn Station | 100.0 | Fee Interest | 345,400 | 220,250 | 638 | |||||||||||||||
May-14 | 673 First Avenue | Grand Central South | 100.0 | Leasehold Interest | 422,000 | 145,000 | 344 | |||||||||||||||
Sep-15 | 120 West 45th Street | Midtown | 100.0 | Fee Interest | 440,000 | 365,000 | 830 | |||||||||||||||
Sep-15 | 315 West 36th Street | Times Square South | 100.0 | Fee Interest | 148,000 | 115,000 | 777 | |||||||||||||||
16,178,723 | $ | 6,959,650 | $ | 430 | ||||||||||||||||||
2016 Sales | ||||||||||||||||||||||
Jun-16 | 388 & 390 Greenwich Street | Downtown | 100.0% | Fee Interest | 2,635,000 | $ | 2,000,000 | $ | 759 | |||||||||||||
Aug-16 | 11 Madison Avenue | Park Avenue South | 40.0 | Fee Interest | 2,314,000 | 2,600,000 | 1,124 | |||||||||||||||
4,949,000 | $ | 4,600,000 | $ | 929 | ||||||||||||||||||
2017 Sales | ||||||||||||||||||||||
Nov-17 | 1515 Broadway | Times Square | 30.0% | Fee Interest | 1,750,000 | $ | 1,950,000 | $ | 1,114 | |||||||||||||
1,750,000 | $ | 1,950,000 | $ | 1,114 | ||||||||||||||||||
2018 Sales | ||||||||||||||||||||||
Jan-18 | 600 Lexington Avenue | Grand Central North | 100.0% | Fee Interest | 303,515 | $ | 305,000 | $ | 1,005 | |||||||||||||
Feb-18 | 1515 Broadway | Times Square | 13.0 | Fee Interest | 1,750,000 | 1,950,000 | 1,114 | |||||||||||||||
May-18 | 1745 Broadway | Midtown | 56.87 | Leasehold Interest | 674,000 | 633,000 | 939 | |||||||||||||||
2,727,515 | $ | 2,888,000 | $ | 1,059 | ||||||||||||||||||
Supplemental Information | 48 | Second Quarter 2018 |
| ||
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Suburban Unaudited (Dollars in Thousands) | | |
| ||
Gross Asset | Occupancy (%) | ||||||||||||||||
Property | Submarket | Interest Acquired | Type of Ownership | Net Rentable SF | Valuation ($'s) (1) | at acquisition | 6/30/2018 | ||||||||||
2007 - 2016 Acquisitions | |||||||||||||||||
Jan-07 | 300 Main Street | Stamford, Connecticut | 100.0% | Fee Interest | 130,000 | $ | 15,000 | 92.5 | N/A | ||||||||
Jan-07 | 399 Knollwood Road | White Plains, New York | 100.0 | Fee Interest | 145,000 | 31,600 | 96.6 | N/A | |||||||||
Jan-07 | Reckson - Connecticut Portfolio | Stamford, Connecticut | 100.0 | Fee Interests / Leasehold Interest | 1,369,800 | 490,750 | 88.9 | 88.5 | |||||||||
Jan-07 | Reckson - Westchester Portfolio | Westchester | 100.0 | Fee Interests / Leasehold Interest | 2,346,100 | 570,190 | 90.6 | 85.8 | |||||||||
Apr-07 | Jericho Plazas | Jericho, New York | 20.3 | Fee Interest | 640,000 | 210,000 | 98.4 | N/A | |||||||||
Jun-07 | 1010 Washington Boulevard | Stamford, Connecticut | 100.0 | Fee Interest | 143,400 | 38,000 | 95.6 | 90.4 | |||||||||
Jun-07 | 500 West Putnam Avenue | Greenwich, Connecticut | 100.0 | Fee Interest | 121,500 | 56,000 | 94.4 | N/A | |||||||||
Jul-07 | 16 Court Street | Brooklyn, New York | 35.0 | Fee Interest | 317,600 | 107,500 | 80.6 | N/A | |||||||||
Aug-07 | 150 Grand Street | White Plains, New York | 100.0 | Fee Interest | 85,000 | 6,700 | 52.9 | N/A | |||||||||
Sep-07 | The Meadows | Rutherford, New Jersey | 25.0 | Fee Interest | 582,100 | 111,500 | 81.3 | N/A | |||||||||
Apr-13 | 16 Court Street | Brooklyn, New York | 49.0 | Fee Interest | 317,600 | 96,200 | 84.9 | N/A | |||||||||
6,198,100 | $ | 1,733,440 | |||||||||||||||
| ||||||||||||||||||||||
SUMMARY OF REAL ESTATE SALES ACTIVITY Suburban Unaudited (Dollars in Thousands) | ||||||||||||||||||||||
| ||||||||||||||||||||||
Property | Submarket | Interest Sold | Type of Ownership | Net Rentable SF | Gross Asset Valuation ($'s) | Price ($'s/SF) | ||||||||||||||||
2008 - 2015 Sales | ||||||||||||||||||||||
Oct-08 | 100 & 120 White Plains Road | Tarrytown, New York | 100.0% | Fee Interest | 211,000 | $ | 48,000 | $ | 227 | |||||||||||||
Jan-09 | 55 Corporate Drive | Bridgewater, New Jersey | 100.0 | Fee Interest | 670,000 | 230,000 | 343 | |||||||||||||||
Aug-09 | 399 Knollwood Road | White Plains, New York | 100.0 | Fee Interest | 145,000 | 20,767 | 143 | |||||||||||||||
Jul-12 | One Court Square | Long Island City, New York | 100.0 | Fee Interest | 1,402,000 | 481,100 | 343 | |||||||||||||||
Sep-13 | 300 Main Street | Stamford, Connecticut | 100.0 | Fee Interest | 130,000 | 13,500 | 104 | |||||||||||||||
Aug-15 | The Meadows | Rutherford, New Jersey | 100.0 | Fee Interest | 582,100 | 121,100 | 208 | |||||||||||||||
Dec-15 | 140 Grand Street | White Plains, New York | 100.0 | Fee Interest | 130,100 | 22,400 | 172 | |||||||||||||||
Dec-15 | 150 Grand Street | White Plains, New York | 100.0 | Fee Interest | 85,000 | 9,600 | 113 | |||||||||||||||
3,355,200 | $ | 946,467 | $ | 282 | ||||||||||||||||||
2016 Sales | ||||||||||||||||||||||
Mar-16 | 7 Renaissance Square | White Plains, New York | 100.0% | Fee Interest | 65,641 | $ | 21,000 | $ | 320 | |||||||||||||
Jul-16 | 500 West Putnam Avenue | Greenwich, Connecticut | 100.0 | Fee Interest | 121,500 | 41,000 | 337 | |||||||||||||||
187,141 | $ | 62,000 | $ | 331 | ||||||||||||||||||
2017 Sales | ||||||||||||||||||||||
Apr-17 | 520 White Plains Road | Tarrytown, New York | 100.0% | Fee Interest | 180,000 | $ | 21,000 | $ | 117 | |||||||||||||
Jul-17 | 680 Washington Avenue | Stamford, Connecticut | 100.0 | Fee Interest | 133,000 | 42,011 | 316 | |||||||||||||||
Jul-17 | 750 Washington Avenue | Stamford, Connecticut | 100.0 | Fee Interest | 192,000 | 53,745 | 280 | |||||||||||||||
Oct-17 | 16 Court Street | Brooklyn, New York | 100.0 | Fee Interest | 317,600 | 171,000 | 538 | |||||||||||||||
Oct-17 | 125 Chubb Way | Lyndhurst, New Jersey | 100.0 | Fee Interest | 278,000 | 29,500 | 106 | |||||||||||||||
1,100,600 | $ | 317,256 | $ | 288 | ||||||||||||||||||
2018 Sales | ||||||||||||||||||||||
May-18 | 115-117 Stevens Avenue | Valhalla, New York | 100.0% | Fee Interest | 178,000 | $ | 12,000 | $ | 67 | |||||||||||||
Jun-18 | Jericho Plaza | Jericho, New York | 11.67 | Fee Interest | 640,000 | 117,400 | 183 | |||||||||||||||
818,000 | $ | 129,400 | $ | 158 | ||||||||||||||||||
(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties. | ||||||||||||||||||||||
Supplemental Information | 49 | Second Quarter 2018 |
| ||
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Retail, Residential, Development / Redevelopment & Land Unaudited (Dollars in Thousands) | | |
| ||
Gross Asset | Occupancy (%) | ||||||||||||||||
Property | Submarket | Interest Acquired | Type of Ownership | Net Rentable SF | Valuation ($'s) (1) | at acquisition | 6/30/2018 | ||||||||||
2005 - 2015 Acquisitions | |||||||||||||||||
Jul-05 | 1551-1555 Broadway | Times Square | 10.0% | Fee Interest | 25,600 | $ | 85,000 | N/A | N/A | ||||||||
Jul-05 | 21 West 34th Street | Herald Square | 50.0 | Fee Interest | 30,100 | 17,500 | N/A | N/A | |||||||||
Sep-05 | 141 Fifth Avenue | Flatiron | 50.0 | Fee Interest | 21,500 | 13,250 | N/A | N/A | |||||||||
Nov-05 | 1604 Broadway | Times Square | 63.0 | Leasehold Interest | 29,876 | 4,400 | 17.2 | N/A | |||||||||
Dec-05 | 379 West Broadway | Cast Iron/Soho | 45.0 | Leasehold Interest | 62,006 | 19,750 | 100.0 | N/A | |||||||||
Jan-06 | 25-29 West 34th Street | Herald Square/Penn Station | 50.0 | Fee Interest | 41,000 | 30,000 | 55.8 | N/A | |||||||||
Sep-06 | 717 Fifth Avenue | Midtown/Plaza District | 32.8 | Fee Interest | 119,550 | 251,900 | 63.1 | 100.0 | |||||||||
Aug-07 | 180 Broadway | Lower Manhattan | 50.0 | Fee Interest | 24,300 | 13,600 | 85.2 | N/A | |||||||||
Apr-07 | Two Herald Square | Herald Square | 55.0 | Fee Interest | N/A | 225,000 | N/A | N/A | |||||||||
Jul-07 | 885 Third Avenue | Midtown / Plaza District | 55.0 | Fee Interest | N/A | 317,000 | N/A | N/A | |||||||||
Jan-08 | 125 Chubb Way | Lyndhurst, New Jersey | 100.0 | Fee Interest | 278,000 | 29,364 | — | N/A | |||||||||
Feb-08 | 182 Broadway | Lower Manhattan | 50.0 | Fee Interest | 46,280 | 30,000 | 83.8 | N/A | |||||||||
Nov-10 | Williamsburg Terrace | Brooklyn, New York | 100.0 | Fee Interest | 52,000 | 18,000 | 100.0 | 100.0 | |||||||||
Dec-10 | 11 West 34th Street | Herald Square/Penn Station | 30.0 | Fee Interest | 17,150 | 10,800 | 100.0 | 100.0 | |||||||||
Dec-10 | 7 Renaissance Square | White Plains, New York | 50.0 | Fee Interest | 65,641 | 4,000 | — | N/A | |||||||||
Dec-10 | 2 Herald Square (2) | Herald Square | 45.0 | Fee Interest | 354,400 | 247,500 | 100.0 | N/A | |||||||||
Dec-10 | 885 Third Avenue (2) | Midtown / Plaza District | 45.0 | Fee Interest | 607,000 | 352,000 | 100.0 | N/A | |||||||||
Dec-10 | 292 Madison Avenue | Grand Central South | 100.0 | Fee Interest | 203,800 | 78,300 | N/A | N/A | |||||||||
Jan-11 | 3 Columbus Circle | Columbus Circle | 48.9 | Fee Interest | 741,500 | 500,000 | 20.1 | 96.1 | |||||||||
Aug-11 | 1552-1560 Broadway | Times Square | 50.0 | Fee Interest | 35,897 | 136,550 | 59.7 | 67.5 | |||||||||
Sep-11 | 747 Madison Avenue | Plaza District | 33.3 | Fee Interest | 10,000 | 66,250 | 100.0 | N/A | |||||||||
Jan-12 | DFR Residential and Retail Portfolio | Plaza District, Upper East Side | 80.0 | Fee Interests / Leasehold Interest | 489,882 | 193,000 | 95.1 | 89.0 | |||||||||
Jan-12 | 724 Fifth Avenue | Plaza District | 50.0 | Fee Interest | 65,010 | 223,000 | 92.9 | 84.7 | |||||||||
Jul-12 | West Coast Office Portfolio | 27.6 | Fee Interest | 4,473,603 | 880,104 | 76.3 | N/A | ||||||||||
Aug-12 | 33 Beekman Street | Downtown | 45.9 | Fee Interest | 163,500 | 31,160 | — | N/A | |||||||||
Sep-12 | 635 Sixth Avenue | Midtown South | 100.0 | Fee Interest | 104,000 | 83,000 | — | 100.0 | |||||||||
Oct-12 | 1080 Amsterdam | Upper West Side | 87.5 | Leasehold Interest | 82,250 | — | 2.2 | 95.8 | |||||||||
Dec-12 | 21 East 66th Street | Plaza District | 32.3 | Fee Interest | 16,736 | 75,000 | 100.0 | 100.0 | |||||||||
Dec-12 | 985-987 Third Avenue | Upper East Side | 100.0 | Fee Interest | 13,678 | 18,000 | — | N/A | |||||||||
Dec-12 | 131-137 Spring Street | Soho | 100.0 | Fee Interest | 68,342 | 122,300 | 100.0 | 89.6 | |||||||||
Mar-13 | 248-252 Bedford Avenue | Brooklyn, New York | 90.0 | Fee Interest | 66,611 | 54,900 | — | N/A | |||||||||
Nov-13 | 650 Fifth Avenue | Plaza District | 50.0 | Leasehold Interest | 32,324 | — | 63.6 | 100.0 | |||||||||
Nov-13 | 315 West 33rd Street - The Olivia | Penn Station | 100.0 | Fee Interest | 492,987 | 386,775 | 96.6 | 97.6 | |||||||||
Nov-13 | 562, 570 & 574 Fifth Avenue | Plaza District | 100.0 | Fee Interest | 66,962 | 146,222 | 74.6 | N/A | |||||||||
Jul-14 | 719 Seventh Avenue | Times Square | 75.0 | Fee Interest | 6,000 | 41,149 | 100.0 | — | |||||||||
Jul-14 | 115 Spring Street | Soho | 100.0 | Fee Interest | 5,218 | 52,000 | 100.0 | 100.0 | |||||||||
Jul-14 | 752 Madison Avenue | Plaza District | 100.0 | Fee Interest | 21,124 | 282,415 | 100.0 | 100.0 | |||||||||
Sep-14 | 121 Greene Street | Soho | 50.0 | Fee Interest | 7,131 | 27,400 | 100.0 | 100.0 | |||||||||
Sep-14 | 635 Madison Avenue (2) | Plaza District | 100.0 | Fee Interest | 176,530 | 145,000 | 100.0 | — | |||||||||
Oct-14 | 102 Greene Street | Soho | 100.0 | Fee Interest | 9,200 | 32,250 | 100.0 | N/A | |||||||||
Oct-14 | 175-225 Third Street | Brooklyn, New York | 95.0 | Fee Interest | — | 72,500 | — | N/A | |||||||||
Nov-14 | 55 West 46th Street - Tower 46 | Midtown | 100.0 | Fee Interest | 347,000 | 295,000 | — | 58.2 | |||||||||
Feb-15 | Stonehenge Portfolio | 100.0 | Fee Interest | 2,589,184 | 40,000 | 96.5 | 95.9 | ||||||||||
Mar-15 | 1640 Flatbush Avenue | Brooklyn, New York | 100.0 | Fee Interest | 1,000 | 6,799 | 100.0 | — | |||||||||
Jun-15 | Upper East Side Residential | Upper East Side Residential | 90.0 | Fee Interest | 27,000 | 50,074 | 96.4 | 42.9 | |||||||||
Aug-15 | 187 Broadway & 5-7 Dey Street | Lower Manhattan | 100.0 | Fee Interest | 73,600 | 63,690 | 90.5 | — | |||||||||
12,164,472 | $ | 5,771,902 | |||||||||||||||
2016 Acquisitions | |||||||||||||||||
Mar-16 | 183 Broadway | Lower Manhattan | 100.0% | Fee Interest | 9,100 | $ | 28,500 | 58.3 | — | ||||||||
Apr-16 | 605 West 42nd Street - Sky | Midtown West | 20.0 | Fee Interest | 927,358 | 759,046 | — | 82.9 | |||||||||
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 | 50 | Second Quarter 2018 |
| ||
SUMMARY OF REAL ESTATE SALES ACTIVITY Retail, Residential, Development / Redevelopment and Land Unaudited (Dollars in Thousands) | | |
| ||
Gross Asset Valuation | ||||||||||||||||||||||
Property | Submarket | Interest Sold | Type of Ownership | Net Rentable SF | ($'s) | ($'s/SF) | ||||||||||||||||
2011 - 2015 Sales | ||||||||||||||||||||||
Sep-11 | 1551-1555 Broadway | Times Square | 10.0% | Fee Interest | 25,600 | $ | 276,757 | $ | 10,811 | |||||||||||||
Feb-12 | 141 Fifth Avenue (1) | Flatiron | 100.0 | Fee Interest | 13,000 | 46,000 | 3,538 | |||||||||||||||
Feb-12 | 292 Madison Avenue | Grand Central South | 100.0 | Fee Interest | 203,800 | 85,000 | 417 | |||||||||||||||
Apr-12 | 379 West Broadway | Lower Manhattan | 100.0 | Leasehold Interest | 62,006 | 48,500 | 782 | |||||||||||||||
Jun-12 | 717 Fifth Avenue | Midtown/Plaza District | 50.0 | Fee Interest | 119,550 | 617,584 | 5,166 | |||||||||||||||
Sep-12 | 3 Columbus Circle | Columbus Circle | 29.0 | Fee Interest | 214,372 | 143,600 | 670 | |||||||||||||||
Feb-13 | 44 West 55th Street | Plaza District | 100.0 | Fee Interest | 8,557 | 6,250 | 730 | |||||||||||||||
Jun-13 | West Coast Office Portfolio | Los Angeles, California | 100.0 | Fee Interest | 406,740 | 111,925 | 275 | |||||||||||||||
Aug-13 | West Coast Office Portfolio | Fountain Valley, California | 100.0 | Fee Interest | 302,037 | 66,994 | 222 | |||||||||||||||
Sep-13 | West Coast Office Portfolio | San Diego, California | 100.0 | Fee Interest | 110,511 | 45,400 | 411 | |||||||||||||||
Dec-13 | 27-29 West 34th Street | Herald Square/Penn Station | 100.0 | Fee Interest | 15,600 | 70,052 | 4,491 | |||||||||||||||
Jan-14 | 21-25 West 34th Street | Herald Square/Penn Station | 100.0 | Fee Interest | 30,100 | 114,948 | 3,819 | |||||||||||||||
Mar-14 | West Coast Office Portfolio | 100.0 | Fee Interest | 3,654,315 | 756,000 | 207 | ||||||||||||||||
May-14 | 747 Madison Avenue | Plaza District | 100.0 | Fee Interest | 10,000 | 160,000 | 16,000 | |||||||||||||||
Jul-14 | 985-987 Third Avenue | Upper East Side | 100.0 | Fee Interest | 13,678 | 68,700 | 5,023 | |||||||||||||||
Sep-14 | 180-182 Broadway | Lower Manhattan | 100.0 | Fee Interest | 156,086 | 222,500 | 1,425 | |||||||||||||||
Nov-14 | 2 Herald Square | Herald Square/Penn Station | 100.0 | Fee Interest | 354,400 | 365,000 | 1,030 | |||||||||||||||
Jan-15 | 180 Maiden Lane | Financial East | 100.0 | Fee Interest | 1,090,000 | 470,000 | 431 | |||||||||||||||
Aug-15 | 131-137 Spring Street | Soho | 80.0 | Fee Interest | 68,342 | 277,750 | 4,064 | |||||||||||||||
Dec-15 | 570 & 574 Fifth Avenue | Plaza District | 100.0 | Fee Interest | 24,327 | 125,400 | 5,155 | |||||||||||||||
6,883,021 | $ | 4,078,360 | $ | 593 | ||||||||||||||||||
2016 Sales | ||||||||||||||||||||||
Feb-16 | 248-252 Bedford Avenue | Brooklyn, New York | 90.0% | Fee Interest | 66,611 | $ | 55,000 | $ | 826 | |||||||||||||
Feb-16 | 885 Third Avenue | Midtown / Plaza District | 100.0 | Fee Interest | 607,000 | 453,000 | 746 | |||||||||||||||
May-16 | 33 Beekman Street | Downtown | 100.0 | Fee Interest | 163,500 | 196,000 | 1,199 | |||||||||||||||
Oct-16 | 400 East 57th Street | Upper East Side | 49.0 | Fee Interest | 290,482 | 170,000 | 585 | |||||||||||||||
1,127,593 | $ | 874,000 | $ | 775 | ||||||||||||||||||
2017 Sales | ||||||||||||||||||||||
Apr-17 | 102 Greene Street | Soho | 90.0% | Fee Interest | 9,200 | $ | 43,500 | $ | 4,728 | |||||||||||||
Sep-17 | 102 Greene Street | Soho | 10.0 | Fee Interest | 9,200 | 43,500 | 4,728 | |||||||||||||||
18,400 | $ | 87,000 | $ | 4,728 | ||||||||||||||||||
2018 Sales | ||||||||||||||||||||||
Apr-18 | 175-225 Third Street | Brooklyn, New York | 95.0% | Fee Interest | — | $ | 115,000 | $ | — | |||||||||||||
June-18 | 635 Madison Avenue | Plaza District | 100.0 | Fee Interest | 176,530 | 153,000 | 867 | |||||||||||||||
176,530 | $ | 268,000 | $ | 1,518 | ||||||||||||||||||
(1) Inclusive of the fee position which was acquired simultaneously with the sale pursuant to an option. | ||||||||||||||||||||||
Supplemental Information | 51 | Second Quarter 2018 |
| ||
EXECUTIVE MANAGEMENT | | |
| ||
Stephen L. Green | Edward V. Piccinich |
Chairman of the Board | Chief Operating Officer |
Marc Holliday | Neil H. Kessner |
Chief Executive Officer | Executive Vice President, General |
Counsel - Real Property | |
Andrew Mathias | |
President | David M. Schonbraun |
Co-Chief Investment Officer | |
Matthew J. DiLiberto | |
Chief Financial Officer | Isaac Zion |
Co-Chief Investment Officer | |
Andrew S. Levine | |
Chief Legal Officer | Maggie Hui |
Chief Accounting Officer | |
Steven M. Durels | |
Executive Vice President, Director of | |
Leasing and Real Property | |
Supplemental Information | 52 | Second Quarter 2018 |
| ||
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 consolidated debt divided by 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.
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 | 53 | Second Quarter 2018 |
| ||
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 | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income attributable to SL Green common stockholders | $ | 103,556 | $ | 8,222 | $ | 205,322 | $ | 19,573 | |||||||
Add: | |||||||||||||||
Depreciation and amortization | 67,914 | 133,054 | 137,302 | 227,188 | |||||||||||
Joint venture depreciation and noncontrolling interest adjustments | 47,308 | 25,086 | 95,314 | 49,419 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 5,759 | 1,205 | 11,229 | (15,810 | ) | ||||||||||
Less: | |||||||||||||||
(Loss) gain on sale of real estate, net | (14,790 | ) | (3,823 | ) | 8,731 | (3,256 | ) | ||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 72,025 | 13,089 | 65,585 | 15,136 | |||||||||||
Purchase price fair value adjustment | 11,149 | — | 60,442 | — | |||||||||||
Depreciable real estate reserve | — | (29,064 | ) | — | (85,336 | ) | |||||||||
Depreciation on non-rental real estate assets | 584 | 564 | 1,150 | 1,080 | |||||||||||
FFO attributable to SL Green common stockholders and noncontrolling interests | $ | 155,569 | $ | 186,801 | $ | 313,259 | $ | 352,746 | |||||||
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)
As of or for the three months ended | |||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | |||||||||||||||
Net income | $ | 115,899 | $ | 113,823 | $ | 38,335 | $ | 45,795 | $ | 16,015 | |||||||||
Interest expense, net of interest income | 53,611 | 47,916 | 60,933 | 65,634 | 64,856 | ||||||||||||||
Amortization of deferred financing costs | 3,546 | 3,537 | 4,297 | 4,008 | 3,432 | ||||||||||||||
Income taxes | 1,092 | 507 | 1,432 | 77 | 2,201 | ||||||||||||||
Depreciation and amortization | 67,914 | 69,388 | 84,404 | 91,728 | 133,054 | ||||||||||||||
Gain on sale of marketable securities | — | — | — | — | — | ||||||||||||||
Loss (gain) on sale of real estate | 14,790 | (23,521 | ) | (76,497 | ) | — | 3,823 | ||||||||||||
Equity in net (gain) loss on sale of interest in unconsolidated joint venture/real estate | (72,025 | ) | 6,440 | — | (1,030 | ) | (13,089 | ) | |||||||||||
Purchase price and other fair value adjustments | (11,149 | ) | (49,293 | ) | — | — | — | ||||||||||||
Depreciable real estate reserve | — | — | 93,184 | — | 29,064 | ||||||||||||||
Adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates | 86,089 | 85,144 | 66,652 | 58,096 | 56,612 | ||||||||||||||
EBITDAre | $ | 259,767 | $ | 253,941 | $ | 272,740 | $ | 264,308 | $ | 295,968 | |||||||||
Supplemental Information | 54 | Second Quarter 2018 |
| ||
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) | | |
| ||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Operating income and Same-store NOI Reconciliation
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 115,899 | $ | 16,015 | $ | 229,722 | $ | 16,939 | |||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | (72,025 | ) | (13,089 | ) | (65,585 | ) | (15,136 | ) | |||||||
Purchase price and other fair value adjustments | (11,149 | ) | — | (60,442 | ) | — | |||||||||
Loss (gain) on sale of real estate, net | 14,790 | 3,823 | (8,731 | ) | 3,256 | ||||||||||
Depreciable real estate reserves | — | 29,064 | — | 85,336 | |||||||||||
Gain on sale of marketable securities | — | — | — | (3,262 | ) | ||||||||||
Depreciation and amortization | 67,914 | 133,054 | 137,302 | 227,188 | |||||||||||
Interest expense, net of interest income | 53,611 | 64,856 | 101,527 | 130,478 | |||||||||||
Amortization of deferred financing costs | 3,546 | 3,432 | 7,083 | 8,193 | |||||||||||
Operating income | 172,586 | 237,155 | 340,876 | 452,992 | |||||||||||
Equity in net income from unconsolidated joint ventures | (4,702 | ) | (3,412 | ) | (8,738 | ) | (10,026 | ) | |||||||
Marketing, general and administrative expense | 22,479 | 24,256 | 46,007 | 48,399 | |||||||||||
Transaction related costs, net | 348 | 46 | 510 | 179 | |||||||||||
Investment income | (49,273 | ) | (60,622 | ) | (94,563 | ) | (100,921 | ) | |||||||
Non-building revenue | (9,397 | ) | (6,571 | ) | (14,176 | ) | (4,937 | ) | |||||||
Net operating income (NOI) | 132,041 | 190,852 | 269,916 | 385,686 | |||||||||||
Equity in net income from unconsolidated joint ventures | 4,702 | 3,412 | 8,738 | 10,026 | |||||||||||
SLG share of unconsolidated JV depreciation and amortization | 47,565 | 31,286 | 95,184 | 62,501 | |||||||||||
SLG share of unconsolidated JV interest expense, net of interest income | 36,670 | 22,876 | 72,450 | 43,969 | |||||||||||
SLG share of unconsolidated JV amortization of deferred financing costs | 1,752 | 2,314 | 3,425 | 4,935 | |||||||||||
SLG share of unconsolidated JV loss on early extinguishment of debt | — | — | — | — | |||||||||||
SLG share of unconsolidated JV transaction related costs | — | 56 | — | 110 | |||||||||||
SLG share of unconsolidated JV investment income | (1,708 | ) | (3,916 | ) | (4,794 | ) | (8,746 | ) | |||||||
SLG share of unconsolidated JV non-building revenue | (1,147 | ) | (950 | ) | (2,148 | ) | (7,179 | ) | |||||||
NOI including SLG share of unconsolidated JVs | 219,875 | 245,930 | 442,771 | 491,302 | |||||||||||
NOI from other properties/affiliates | (26,009 | ) | (57,631 | ) | (57,138 | ) | (114,927 | ) | |||||||
Same-Store NOI | 193,866 | 188,299 | 385,633 | 376,375 | |||||||||||
Ground lease straight-line adjustment | 524 | 524 | 1,048 | 1,048 | |||||||||||
Joint Venture ground lease straight-line adjustment | 258 | 277 | 640 | 562 | |||||||||||
Straight-line and free rent | (1,474 | ) | (6,625 | ) | (3,563 | ) | (14,673 | ) | |||||||
Rental income - FAS 141 | (1,238 | ) | (1,121 | ) | (2,921 | ) | (2,315 | ) | |||||||
Joint Venture straight-line and free rent | (4,052 | ) | (5,163 | ) | (8,411 | ) | (10,672 | ) | |||||||
Joint Venture rental income - FAS 141 | (1,261 | ) | (3,320 | ) | (2,443 | ) | (7,013 | ) | |||||||
Same-store cash NOI | $ | 186,623 | $ | 172,871 | $ | 369,983 | $ | 343,312 | |||||||
Supplemental Information | 55 | Second Quarter 2018 |
| ||
SELL-SIDE ANALYST COVERAGE | | |
| ||
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 | Frank Lee | (415) 352-5679 | frank-a.lee@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 | 56 | Second Quarter 2018 |