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 17, 2019
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 17, 2019 announcing SL Green Realty Corp.’s, or the Company, results for the quarter ended June 30, 2019, 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 17, 2019, the Company issued a press release announcing its results for the quarter ended June 30, 2019.
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 financial measure of REIT performance. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of properties, and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based bonuses for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and real estate related impairment charges, 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 operating lease 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 also a non-GAAP financial measure that is calculated by subtracting free rent (net of amortization), straight-line rent, and amortization of acquired above and below-market leases, net from NOI, while adding operating 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.
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 operating lease 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 18, 2019 | |
Exhibit 99.1
CONTACT
Matt DiLiberto
Chief Financial Officer
(212) 594-2700
SL GREEN REALTY CORP. REPORTS
SECOND QUARTER 2019 EPS OF $1.94 PER SHARE;
AND FFO OF $1.82 PER SHARE
Financial and Operating Highlights
• | Net income attributable to common stockholders of $1.94 per share for the second quarter as compared to $1.19 per share for the same period in 2018. Net income attributable to common stockholders for the second quarter of 2019 included a non-cash fair value adjustment of $67.6 million, or $0.77 per share, related to the acquisition of 460 West 34th street. |
• | Funds from operations, or FFO, of $1.82 per share for the second quarter as compared to $1.69 per share for the same period in 2018. FFO for the second quarter of 2019 included $3.4 million, or $0.04 per share, of promote income from the sale of 521 Fifth Avenue. |
• | Same-store cash net operating income, or NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased 3.2% for the first six months of 2019 excluding lease termination income and free rent given to Viacom at 1515 Broadway, as compared to same period in the prior year. |
• | Signed 40 Manhattan office leases covering 507,743 square feet in the second quarter and 72 Manhattan leases covering 915,645 square feet in the first six months of 2019. The mark-to-market on signed Manhattan office leases for the first six months of 2019 was 30.5% higher than the previous fully escalated rents on the same spaces. |
• | Signed a new 28,448 square foot lease with Sentinel Capital Partners at One Vanderbilt, bringing the property to 59% leased ahead of its planned opening in August 2020. Construction on the super structure has reached 1,130 feet with steel construction scheduled to top out in September of 2019. |
• | Manhattan same-store occupancy was 95.2% as of June 30, 2019, inclusive of leases signed but not yet commenced. |
Investing Highlights
• | During the first half of 2019, the Company repurchased 1.3 million shares of common stock under the previously announced $2.5 billion share repurchase plan, at an average price of $86.42 per share. To date, the Company has repurchased 19.4 million shares of its common stock and redeemed 0.4 million common units of its Operating Partnership, or OP units, under the program. |
• | Together with our joint venture partner, closed on the sale of 521 Fifth Avenue for a sale price of $381.0 million. The transaction generated net proceeds to the Company of $106.0 million, inclusive of a $3.4 million promote, and the Company recognized a gain on sale of $60.9 million. |
• | Closed on the acquisition of a majority and controlling interest in 460 West 34th Street at a gross asset valuation of $440 million. As of the closing date, the Company's basis in the 20-story property, which will undergo a large scale redevelopment, was approximately $528 per square foot after taking into account earlier investments. |
• | Closed on the acquisition of the remaining 10% interest in 110 Greene Street from our joint venture partner at a gross asset valuation of $256.5 million. |
Financing Highlights
• | Entered into an agreement to reduce the interest rate spread by 65 basis points on the Company's $200.0 million, 7-year term loan that matures in 2024. This reduction will be effective in November, 2019. |
• | Closed on a $465.0 million construction facility for the redevelopment of 460 West 34th Street. The floating rate facility has a term of three years, with two one-year extension options, and bears interest at an initial floating rate of 2.225% over LIBOR. |
• | Closed on a $228.7 million mortgage financing of 360 Hamilton Avenue in White Plains, NY and 100, 200 and 500 Summit Lake Drive in Valhalla, New York. The new mortgage has a 3-year term, with two one-year extension options and bears interest at a floating rate of 2.79% per annum over LIBOR. |
Summary
New York, NY, July 17, 2019 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended June 30, 2019 of $161.1 million, or $1.94 per share, as compared to net income attributable to common stockholders of $103.6 million, or $1.19 per share, for the same quarter in 2018. Net income attributable to common stockholders for the three months ended June 30, 2019 includes $59.0 million, or $0.68 per share, of net gains recognized from the sale of real estate as compared to $57.2 million, or $0.62 per share, for the same period in 2018. Net income attributable to common stockholders for the second quarter of 2019 also included a non-cash fair value adjustment of $67.6 million, or $0.77 per share, related to the acquisition of 460 West 34th street.
The Company also reported net income attributable to common stockholders for the six months ended June 30, 2019 of $204.9 million, or $2.46 per share, as compared to net income attributable to common stockholders of $205.3 million, or $2.31 per share, for the same period in 2018. Net income attributable to common stockholders for the six months ended June 30, 2019 includes $75.1 million, or $0.86 per share, of net gains recognized from the sale of real estate as compared to $74.3 million, or $0.79 per share, for the same period in 2018.
The Company reported FFO for the quarter ended June 30, 2019 of $159.2 million, or $1.82 per share, as compared to FFO for the same period in 2018 of $155.6 million, or $1.69 per
share. FFO for the second quarter of 2019 included $3.4 million, or $0.04 per share, of promote income from the sale of 521 Fifth Avenue.
The Company also reported FFO for the six months ended June 30, 2019 of $306.7 million, or $3.50 per share, as compared to FFO for the same period in 2018 of $313.3 million, or $3.34 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, 2019, the Company reported consolidated revenues and operating income of $313.0 million and $166.4 million, respectively, compared to $301.1 million and $172.6 million, respectively, for the same period in 2018.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 2.7% for the quarter ended June 30, 2019, but increased by 1.1% excluding lease termination income and free rent given to Viacom at 1515 Broadway.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 2.8% for the six months ended June 30, 2019, but increased by 3.2% excluding lease termination income and free rent given to Viacom at 1515 Broadway.
During the second quarter, the Company signed 40 office leases in its Manhattan portfolio totaling 507,743 square feet. Twenty-nine leases comprising 362,568 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 $75.11 per rentable square foot, representing a 54.3% increase over the previous fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the second quarter was 12.0 years, or 12.3 years including the office leases signed at One Vanderbilt, and average tenant concessions were 8.0 months of free rent with a tenant improvement allowance of $71.67 per rentable square foot.
During the first six months of 2019, the Company signed 72 office leases in its Manhattan portfolio totaling 915,645 square feet. Fifty-three leases comprising 596,850 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 $73.95 per rentable square foot, representing a 30.5% 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 2019 was 11.9 years, or 12.1 years including the office leases signed at One Vanderbilt, and average tenant concessions were 6.2 months of free rent with a tenant improvement allowance of $65.09 per rentable square foot.
Occupancy in the Company's Manhattan same-store portfolio was 95.2% as of June 30, 2019, inclusive of 274,272 square feet of leases signed but not yet commenced, as compared 96.0% at June 30, 2018.
During the second quarter, the Company signed 10 office leases in its Suburban portfolio totaling 77,712 square feet. Eight leases comprising 73,702 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 $38.58 per rentable square foot, representing a 3.5% decrease over
the previous fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the second quarter was 9.0 years and average tenant concessions were 8.0 months of free rent with a tenant improvement allowance of $13.06 per rentable square foot.
During the first six months of 2019, the Company signed 18 office leases in its Suburban portfolio totaling 110,682 square feet. Fifteen leases comprising 103,553 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 $36.82 per rentable square foot, representing a 2.8% 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 2019 was 7.4 years and average tenant concessions were 6.6 months of free rent with a tenant improvement allowance of $11.21 per rentable square foot.
Occupancy in the Company's Suburban same-store portfolio was 90.0% as of June 30, 2019, as compared to 92.2% at June 30, 2018.
Significant leases that were signed in the second quarter included:
• | New lease with First Republic Bank for 211,521 square feet at 460 West 34th Street, for 15.0 years; |
• | Renewal with Tribune Media Company and WPIX LLC for 101,658 square feet at 220 East 42nd Street, for 15.8 years; |
• | Renewal with American Multi-Cinema, Inc. for 95,341 square feet at 315 West 33rd Street, known as The Olivia, for 15.3 years; |
• | Renewal with Skadden, Arps, Slate, Meagher & Flom LLP for 56,239 square feet at 360 Hamilton Avenue in White Plains, NY, for 10.8 years; and |
• | New lease with Sentinel Capital Partners for 28,448 square feet at One Vanderbilt Avenue, for 15.0 years. |
Investment Activity
During the first half of 2019, the Company repurchased 1.3 million shares of common stock under the previously announced $2.5 billion share repurchase plan, at an average price of $86.42 per share. To date, the Company has repurchased 19.4 million shares of its common stock and redeemed 0.4 million common units of its Operating Partnership, or OP units, at an average price of $97.96 per share under the program, saving the Company approximately $67.3 million of common dividends and distributions on an annualized basis.
In May, the Company, along with our joint venture partner, closed on the previously announced sale of 521 Fifth Avenue, at a sale price of $381.0 million. The transaction generated net proceeds to the Company of $106.0 million, inclusive of a $3.4 million promote, and the Company recognized a gain on sale of $60.9 million.
In May, the Company closed on the previously announced acquisition of a majority and controlling interest in 460 West 34th Street at a gross asset valuation of $440 million. After taking into account earlier investments made through the Company's Debt and Preferred Equity platform, the Company's blended average basis in the 20-story property, which will undergo a large scale redevelopment, was $528 per square foot as of the closing date.
In May, the Company closed on the acquisition of the remaining 10% interest in 110 Greene Street from our joint venture partner at a gross asset valuation of $256.5 million. The Company had acquired its 90% interest in the property in 2015 and now owns 100% of the asset.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity investment portfolio decreased to $2.26 billion at June 30, 2019, including $2.23 billion of investments at a weighted average current yield of 9.1% that are classified in the debt and preferred equity line item on the balance sheet, and investments aggregating $0.03 billion at a weighted average current yield of 6.6% that are included in other balance sheet line items for accounting purposes.
During the second quarter, the Company originated or acquired new subordinate debt and preferred equity investments totaling $136.2 million, of which $130.8 million was retained and $71.3 million was funded at a weighted average yield of 9.6%.
Financing Activity
In July, the Company closed on a $228.7 million mortgage financing of 360 Hamilton Avenue in White Plains, NY and 100, 200 and 500 Summit Lake Drive in Valhalla, New York. The new mortgage has a 3-year term, with two one-year extension options and bears interest at a floating rate of 2.79% per annum over LIBOR.
In May, the Company, along with its joint venture partners, closed on a $465.0 million construction facility for the redevelopment of 460 West 34th Street. The floating rate facility has a term of three years, with two one-year extension options and bears interest at an initial floating rate of 2.225% over LIBOR.
In May, the Company entered into an agreement to reduce the interest rate spread by 65 basis points on the Company's $200.0 million, 7-year term loan that matures in 2024. This reduction will be effective in November 2019 resulting in annualized interest savings of $1.3 million.
Dividends
In the second quarter of 2019, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:
• | $0.85 per share of common stock, which was paid on July 15, 2019 to shareholders of record on the close of business on June 28, 2019; and |
• | $0.40625 per share on the Company's 6.50% Series I Cumulative Redeemable Preferred Stock for the period April 15, 2019 through and including July 14, 2019, which was paid on July 15, 2019 to shareholders of record on the close of business on June 28, 2019, 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, Chairman and Chief Executive Officer, will host a conference call and audio webcast on Thursday, July 18, 2019 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 https://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 https://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 8857713.
A replay of the call will be available 7 days after the call by dialing (855) 859-2056 using passcode 8857713. A webcast replay will also be available in the Investors section of the SL Green Realty Corp. website at https://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, 2019, SL Green held interests in 96 Manhattan buildings totaling 46.0 million square feet. This included ownership interests in 27.2 million square feet of Manhattan buildings and 18.8 million square feet securing debt and preferred equity investments. In addition, SL Green held ownership interests in 7 suburban properties comprised of 15 buildings totaling 2.3 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, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenue, net | $ | 216,480 | $ | 211,369 | $ | 429,119 | $ | 426,738 | |||||||
Escalation and reimbursement | 28,479 | 27,052 | 55,958 | 53,451 | |||||||||||
Investment income | 51,618 | 49,273 | 101,649 | 94,563 | |||||||||||
Other income | 16,447 | 13,422 | 30,553 | 28,059 | |||||||||||
Total revenues | 313,024 | 301,116 | 617,279 | 602,811 | |||||||||||
Expenses: | |||||||||||||||
Operating expenses, including related party expenses of $5,323 and $8,116 in 2019 and $4,665 and $8,499 in 2018 | 58,317 | 56,237 | 116,015 | 116,019 | |||||||||||
Real estate taxes | 46,694 | 45,322 | 93,382 | 90,983 | |||||||||||
Operating lease rent | 8,298 | 8,846 | 16,596 | 17,154 | |||||||||||
Interest expense, net of interest income | 47,160 | 53,611 | 97,685 | 101,527 | |||||||||||
Amortization of deferred financing costs | 2,712 | 3,546 | 5,454 | 7,083 | |||||||||||
Depreciation and amortization | 69,461 | 67,914 | 137,804 | 137,302 | |||||||||||
Transaction related costs | 261 | 348 | 316 | 510 | |||||||||||
Marketing, general and administrative | 25,480 | 22,479 | 51,459 | 46,007 | |||||||||||
Total expenses | 258,383 | 258,303 | 518,711 | 516,585 | |||||||||||
Equity in net (loss) income from unconsolidated joint ventures | (7,546 | ) | 4,702 | (12,780 | ) | 8,738 | |||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 59,015 | 72,025 | 76,181 | 65,585 | |||||||||||
Purchase price and other fair value adjustment | 67,631 | 11,149 | 65,590 | 60,442 | |||||||||||
(Loss) gain on sale of real estate, net | — | (14,790 | ) | (1,049 | ) | 8,731 | |||||||||
Net income | 173,741 | 115,899 | 226,510 | 229,722 | |||||||||||
Net income attributable to noncontrolling interests in the Operating Partnership | (8,310 | ) | (5,586 | ) | (10,587 | ) | (10,858 | ) | |||||||
Net loss (income) attributable to noncontrolling interests in other partnerships | 2,138 | (173 | ) | 1,900 | (371 | ) | |||||||||
Preferred unit distributions | (2,729 | ) | (2,847 | ) | (5,453 | ) | (5,696 | ) | |||||||
Net income attributable to SL Green | 164,840 | 107,293 | 212,370 | 212,797 | |||||||||||
Perpetual preferred stock dividends | (3,737 | ) | (3,737 | ) | (7,475 | ) | (7,475 | ) | |||||||
Net income attributable to SL Green common stockholders | $ | 161,103 | $ | 103,556 | $ | 204,895 | $ | 205,322 | |||||||
Earnings Per Share (EPS) | |||||||||||||||
Net income per share (Basic) | $ | 1.94 | $ | 1.19 | $ | 2.46 | $ | 2.31 | |||||||
Net income per share (Diluted) | $ | 1.94 | $ | 1.19 | $ | 2.46 | $ | 2.31 | |||||||
Funds From Operations (FFO) | |||||||||||||||
FFO per share (Basic) | $ | 1.83 | $ | 1.69 | $ | 3.51 | $ | 3.35 | |||||||
FFO per share (Diluted) | $ | 1.82 | $ | 1.69 | $ | 3.50 | $ | 3.34 | |||||||
Basic ownership interest | |||||||||||||||
Weighted average REIT common shares for net income per share | 82,971 | 87,176 | 83,141 | 88,772 | |||||||||||
Weighted average partnership units held by noncontrolling interests | 4,260 | 4,706 | 4,296 | 4,695 | |||||||||||
Basic weighted average shares and units outstanding | 87,231 | 91,882 | 87,437 | 93,467 | |||||||||||
Diluted ownership interest | |||||||||||||||
Weighted average REIT common share and common share equivalents | 83,138 | 87,377 | 83,310 | 88,972 | |||||||||||
Weighted average partnership units held by noncontrolling interests | 4,260 | 4,706 | 4,296 | 4,695 | |||||||||||
Diluted weighted average shares and units outstanding | 87,398 | 92,083 | 87,606 | 93,667 | |||||||||||
SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, | December 31, | ||||||
2019 | 2018 | ||||||
Assets | (Unaudited) | ||||||
Commercial real estate properties, at cost: | |||||||
Land and land interests | $ | 1,929,496 | $ | 1,774,899 | |||
Building and improvements | 5,749,261 | 5,268,484 | |||||
Building leasehold and improvements | 1,427,225 | 1,423,107 | |||||
Right of use asset - financing leases | 47,445 | 47,445 | |||||
Right of use asset - operating leases | 396,795 | — | |||||
9,550,222 | 8,513,935 | ||||||
Less: accumulated depreciation | (2,217,013 | ) | (2,099,137 | ) | |||
7,333,209 | 6,414,798 | ||||||
Cash and cash equivalents | 148,978 | 129,475 | |||||
Restricted cash | 92,169 | 149,638 | |||||
Investment in marketable securities | 29,978 | 28,638 | |||||
Tenant and other receivables | 38,270 | 41,589 | |||||
Related party receivables | 23,686 | 28,033 | |||||
Deferred rents receivable | 341,659 | 335,985 | |||||
Debt and preferred equity investments, net of discounts and deferred origination fees of $19,963 and $22,379 and allowances of $1,750 and $5,750 in 2019 and 2018, respectively | 2,228,912 | 2,099,393 | |||||
Investments in unconsolidated joint ventures | 2,937,153 | 3,019,020 | |||||
Deferred costs, net | 220,572 | 209,110 | |||||
Other assets | 235,355 | 295,679 | |||||
Total assets | $ | 13,629,941 | $ | 12,751,358 | |||
Liabilities | |||||||
Mortgages and other loans payable | $ | 2,366,907 | $ | 1,988,160 | |||
Revolving credit facility | 670,000 | 500,000 | |||||
Unsecured term loan | 1,500,000 | 1,500,000 | |||||
Unsecured notes | 1,503,305 | 1,503,758 | |||||
Deferred financing costs, net | (57,423 | ) | (50,218 | ) | |||
Total debt, net of deferred financing costs | 5,982,789 | 5,441,700 | |||||
Accrued interest payable | 25,564 | 23,154 | |||||
Accounts payable and accrued expenses | 133,473 | 147,061 | |||||
Deferred revenue | 122,941 | 94,453 | |||||
Lease liability - financing leases | 44,034 | 43,616 | |||||
Lease liability - operating leases | 387,602 | 3,603 | |||||
Dividend and distributions payable | 79,272 | 80,430 | |||||
Security deposits | 62,735 | 64,688 | |||||
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | |||||
Other liabilities | 123,921 | 116,566 | |||||
Total liabilities | 7,062,331 | 6,115,271 | |||||
Commitments and contingencies | — | — | |||||
Noncontrolling interest in the Operating Partnership | 401,824 | 387,805 | |||||
Preferred units | 286,285 | 300,427 | |||||
Equity | |||||||
Stockholders’ equity: | |||||||
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2019 and December 31, 2018 | 221,932 | 221,932 | |||||
Common stock, $0.01 par value 160,000 shares authorized, 83,465 and 84,739 issued and outstanding at June 30, 2019 and December 31, 2018, respectively (including 1,055 held in Treasury at both June 30, 2019 and December 31, 2018) | 835 | 847 | |||||
Additional paid-in capital | 4,451,209 | 4,508,685 | |||||
Treasury stock at cost | (124,049 | ) | (124,049 | ) | |||
Accumulated other comprehensive (loss) income | (28,395 | ) | 15,108 | ||||
Retained earnings | 1,288,390 | 1,278,998 | |||||
Total SL Green Realty Corp. stockholders’ equity | 5,809,922 | 5,901,521 | |||||
Noncontrolling interests in other partnerships | 69,579 | 46,334 | |||||
Total equity | 5,879,501 | 5,947,855 | |||||
Total liabilities and equity | $ | 13,629,941 | $ | 12,751,358 | |||
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: | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income attributable to SL Green common stockholders | $ | 161,103 | $ | 103,556 | $ | 204,895 | $ | 205,322 | |||||||
Add: | |||||||||||||||
Depreciation and amortization | 69,461 | 67,914 | 137,804 | 137,302 | |||||||||||
Joint venture depreciation and noncontrolling interest adjustments | 49,903 | 47,308 | 97,528 | 95,314 | |||||||||||
Net income attributable to noncontrolling interests | 6,172 | 5,759 | 8,687 | 11,229 | |||||||||||
Less: | |||||||||||||||
(Loss) gain on sale of real estate, net | — | (14,790 | ) | (1,049 | ) | 8,731 | |||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 59,015 | 72,025 | 76,181 | 65,585 | |||||||||||
Purchase price and other fair value adjustments | 67,631 | 11,149 | 65,590 | 60,442 | |||||||||||
Depreciation on non-rental real estate assets | 746 | 584 | 1,453 | 1,150 | |||||||||||
FFO attributable to SL Green common stockholders | $ | 159,247 | $ | 155,569 | $ | 306,739 | $ | 313,259 | |||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Operating income and Same-store NOI Reconciliation: | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income | $ | 173,741 | $ | 115,899 | $ | 226,510 | $ | 229,722 | |||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | (59,015 | ) | (72,025 | ) | (76,181 | ) | (65,585 | ) | |||||||
Purchase price and other fair value adjustments | (67,631 | ) | (11,149 | ) | (65,590 | ) | (60,442 | ) | |||||||
Loss (gain) on sale of real estate, net | — | 14,790 | 1,049 | (8,731 | ) | ||||||||||
Depreciation and amortization | 69,461 | 67,914 | 137,804 | 137,302 | |||||||||||
Interest expense, net of interest income | 47,160 | 53,611 | 97,685 | 101,527 | |||||||||||
Amortization of deferred financing costs | 2,712 | 3,546 | 5,454 | 7,083 | |||||||||||
Operating income | 166,428 | 172,586 | 326,731 | 340,876 | |||||||||||
Equity in net loss (income) from unconsolidated joint ventures | 7,546 | (4,702 | ) | 12,780 | (8,738 | ) | |||||||||
Marketing, general and administrative expense | 25,480 | 22,479 | 51,459 | 46,007 | |||||||||||
Transaction related costs, net | 261 | 348 | 316 | 510 | |||||||||||
Investment income | (51,618 | ) | (49,273 | ) | (101,649 | ) | (94,563 | ) | |||||||
Non-building revenue | (7,268 | ) | (9,397 | ) | (16,413 | ) | (14,176 | ) | |||||||
Net operating income (NOI) | 140,829 | 132,041 | 273,224 | 269,916 | |||||||||||
Equity in net (loss) income from unconsolidated joint ventures | (7,546 | ) | 4,702 | (12,780 | ) | 8,738 | |||||||||
SLG share of unconsolidated JV depreciation and amortization | 48,176 | 47,565 | 96,304 | 95,184 | |||||||||||
SLG share of unconsolidated JV interest expense, net of interest income | 38,281 | 36,670 | 77,688 | 72,450 | |||||||||||
SLG share of unconsolidated JV amortization of deferred financing costs | 1,591 | 1,752 | 3,159 | 3,425 | |||||||||||
SLG share of unconsolidated JV investment income | (476 | ) | (1,708 | ) | (2,703 | ) | (4,794 | ) | |||||||
SLG share of unconsolidated JV non-building revenue | (1,215 | ) | (1,147 | ) | (1,926 | ) | (2,148 | ) | |||||||
NOI including SLG share of unconsolidated JVs | 219,640 | 219,875 | 432,966 | 442,771 | |||||||||||
NOI from other properties/affiliates | (7,951 | ) | (14,705 | ) | (17,493 | ) | (35,586 | ) | |||||||
Same-Store NOI | 211,689 | 205,170 | 415,473 | 407,185 | |||||||||||
Ground lease straight-line adjustment | 514 | 524 | 1,028 | 1,048 | |||||||||||
Joint Venture ground lease straight-line adjustment | 208 | 258 | 465 | 516 | |||||||||||
Straight-line and free rent | (3,487 | ) | (1,482 | ) | (3,563 | ) | (3,580 | ) | |||||||
Amortization of acquired above and below-market leases, net | (922 | ) | (1,238 | ) | (1,868 | ) | (2,921 | ) | |||||||
Joint Venture straight-line and free rent | (14,641 | ) | (4,972 | ) | (30,027 | ) | (11,099 | ) | |||||||
Joint Venture amortization of acquired above and below-market leases, net | (4,248 | ) | (3,815 | ) | (8,510 | ) | (7,550 | ) | |||||||
Same-store cash NOI | $ | 189,113 | $ | 194,445 | $ | 372,998 | $ | 383,599 | |||||||
SL GREEN REALTY CORP.
NON-GAAP FINANCIAL MEASURES - DISCLOSURES
Funds from Operations (FFO)
FFO is a widely recognized non-GAAP financial measure of REIT performance. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of properties, and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based bonuses for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and real estate related impairment charges, 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 operating lease 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 also a non-GAAP financial measure that is calculated by subtracting free rent (net of amortization), straight-line rent, and amortization of acquired above and below-market leases, net from NOI, while adding operating 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.
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 operating lease 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
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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, redevelopment, construction and leasing.
As of June 30, 2019, the Company held interests in 96 Manhattan buildings totaling 46.0 million square feet. This included ownership interests in 27.2 million square feet in Manhattan buildings and 18.8 million square feet securing debt and preferred equity investments. In addition, the Company held ownership interests in 7 suburban properties comprised of 15 buildings totaling 2.3 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 https://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 to assist readers of quarterly and annual financial filings and should not be read in replacement of, or superior to, such 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.
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 supplemental financial package and related press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements are described in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.
The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the quarter ended June 30, 2019 that will be released on Form 10-Q to be filed on or before August 9, 2019.
Supplemental Information | 2 | Second Quarter 2019 |
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TABLE OF CONTENTS | | |
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Supplemental Definitions | |||
Highlights | - | ||
Comparative Balance Sheets | |||
Comparative Statements of Operations | |||
Comparative Computation of FFO and FAD | |||
Consolidated Statement of Equity | |||
Joint Venture Statements | - | ||
Selected Financial Data | - | ||
Debt Summary Schedule | - | ||
Lease Liability Schedule | |||
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 2019 |
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SUPPLEMENTAL DEFINITIONS | | |
| ||
Annualized cash rent - Monthly base rent and escalations per the lease, as of a certain date, multiplied by 12.
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 rate. Capitalized Interest is a component of the book basis in a development or redevelopment property.
Debt service coverage - Operating Income adding back income taxes, loan loss reserves and our share of joint venture depreciation and amortization, divided by total interest and principal payments.
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 (TIs), leasing commissions (LCs), and other leasing costs that were taken into consideration when underwriting the acquisition of a property, which are generally incurred during the first 4-5 years following acquisition.
Fixed charge - Total payments for interest, loan principal amortization, operating lease rent and preferred stock dividends.
Fixed charge coverage - Operating Income adding back 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 operating lease 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 financial measure of REIT performance. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of properties, and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
Junior Mortgage Participations - Subordinate interests in first mortgages.
Mezzanine Debt - 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 also a non-GAAP financial measure that is calculated by subtracting free rent (net of amortization), straight-line rent, and amortization of acquired above and below-market leases, net from NOI, while adding operating 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 to improve buildings to SLG’s “operating standards.”
Right of Use Assets / Lease Liabilities - Represents the right to control the use of leased property and the corresponding obligation, both measured, at inception, as the present value of the lease payments. The asset and related liability are classified as either operating or financing based on the length and cost of the lease and whether the lease contains a purchase option or a transfer of ownership. Operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense. On our balance sheets, financing leases include the amounts previously captioned "Properties under capital lease."
Same-Store Properties (Same-Store) - Properties owned in the same manner during both the current and prior year, excluding development properties that are not stabilized for both the current and prior year. Changes to Same-Store properties in 2018 were as follows:
Added to Same-Store in 2019: | Removed from Same-Store in 2019: |
1515 Broadway | 131-137 Spring Street (sold) |
Worldwide Plaza | 521 Fifth Avenue (sold) |
55 West 46th Street - Tower 46 | |
Second generation TIs and LCs - Tenant improvements, leasing commissions, and other leasing costs that do not meet the definition of first generation TIs and LCs.
SLG Interest - '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.
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 2019 |
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SECOND QUARTER 2019 HIGHLIGHTS Unaudited | | |
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New York, NY, July 17, 2019 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended June 30, 2019 of $161.1 million, or $1.94 per share, as compared to net income attributable to common stockholders of $103.6 million, or $1.19 per share, for the same quarter in 2018. Net income attributable to common stockholders for the three months ended June 30, 2019 includes $59.0 million, or $0.68 per share, of net gains recognized from the sale of real estate as compared to $57.2 million, or $0.62 per share, for the same period in 2018. Net income attributable to common stockholders for the second quarter of 2019 also included a non-cash fair value adjustment of $67.6 million, or $0.77 per share, related to the acquisition of 460 West 34th street.
The Company also reported net income attributable to common stockholders for the six months ended June 30, 2019 of $204.9 million, or $2.46 per share, as compared to net income attributable to common stockholders of $205.3 million, or $2.31 per share, for the same period in 2018. Net income attributable to common stockholders for the six months ended June 30, 2019 includes $75.1 million, or $0.86 per share, of net gains recognized from the sale of real estate as compared to $74.3 million, or $0.79 per share, for the same period in 2018.
The Company reported FFO for the quarter ended June 30, 2019 of $159.2 million, or $1.82 per share, as compared to FFO for the same period in 2018 of $155.6 million, or $1.69 per share. FFO for the second quarter of 2019 included $3.4 million, or $0.04 per share, of promote income from the sale of 521 Fifth Avenue.
The Company also reported FFO for the six months ended June 30, 2019 of $306.7 million, or $3.50 per share, as compared to FFO for the same period in 2018 of $313.3 million, or $3.34 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, 2019, the Company reported consolidated revenues and operating income of $313.0 million and $166.4 million, respectively, compared to $301.1 million and $172.6 million, respectively, for the same period in 2018.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 2.7% for the quarter ended June 30, 2019, but increased by 1.1% excluding lease termination income and free rent given to Viacom at 1515 Broadway.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 2.8% for the six months ended June 30, 2019, but increased by 3.2% excluding lease termination income and free rent given to Viacom at 1515 Broadway.
During the second quarter, the Company signed 40 office leases in its Manhattan portfolio totaling 507,743 square feet. Twenty-nine leases comprising 362,568 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 $75.11 per rentable square foot, representing a 54.3% increase over the previous fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the second quarter was 12.0 years, or 12.3 years including
the office leases signed at One Vanderbilt, and average tenant concessions were 8.0 months of free rent with a tenant improvement allowance of $71.67 per rentable square foot.
During the first six months of 2019, the Company signed 72 office leases in its Manhattan portfolio totaling 915,645 square feet. Fifty-three leases comprising 596,850 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 $73.95 per rentable square foot, representing a 30.5% 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 2019 was 11.9 years, or 12.1 years including the office leases signed at One Vanderbilt, and average tenant concessions were 6.2 months of free rent with a tenant improvement allowance of $65.09 per rentable square foot.
Occupancy in the Company's Manhattan same-store portfolio was 95.2% as of June 30, 2019, inclusive of 274,272 square feet of leases signed but not yet commenced, as compared 96.0% at June 30, 2018.
During the second quarter, the Company signed 10 office leases in its Suburban portfolio totaling 77,712 square feet. Eight leases comprising 73,702 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 $38.58 per rentable square foot, representing a 3.5% decrease over the previous fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the second quarter was 9.0 years and average tenant concessions were 8.0 months of free rent with a tenant improvement allowance of $13.06 per rentable square foot.
During the first six months of 2019, the Company signed 18 office leases in its Suburban portfolio totaling 110,682 square feet. Fifteen leases comprising 103,553 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 $36.82 per rentable square foot, representing a 2.8% 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 2019 was 7.4 years and average tenant concessions were 6.6 months of free rent with a tenant improvement allowance of $11.21 per rentable square foot.
Occupancy in the Company's Suburban same-store portfolio was 90.0% as of June 30, 2019, as compared to 92.2% at June 30, 2018.
Significant leases that were signed in the second quarter included:
• | New lease with First Republic Bank for 211,521 square feet at 460 West 34th Street, for 15.0 years; |
• | Renewal with Tribune Media Company and WPIX LLC for 101,658 square feet at 220 East 42nd Street, for 15.8 years; |
• | Renewal with American Multi-Cinema, Inc. for 95,341 square feet at 315 West 33rd Street, known as The Olivia, for 15.3 years; |
Supplemental Information | 5 | Second Quarter 2019 |
| ||
SECOND QUARTER 2019 HIGHLIGHTS Unaudited | | |
| ||
• | Renewal with Skadden, Arps, Slate, Meagher & Flom LLP for 56,239 square feet at 360 Hamilton Avenue in White Plains, NY, for 10.8 years; and |
• | New lease with Sentinel Capital Partners for 28,448 square feet at One Vanderbilt Avenue, for 15.0 years. |
Investment Activity
During the first half of 2019, the Company repurchased 1.3 million shares of common stock under the previously announced $2.5 billion share repurchase plan, at an average price of $86.42 per share. To date, the Company has repurchased 19.4 million shares of its common stock and redeemed 0.4 million common units of its Operating Partnership, or OP units, at an average price of $97.96 per share under the program, saving the Company approximately $67.3 million of common dividends and distributions on an annualized basis.
In May, the Company, along with our joint venture partner, closed on the previously announced sale of 521 Fifth Avenue, at a sale price of $381.0 million. The transaction generated net proceeds to the Company of $106.0 million, inclusive of a $3.4 million promote, and the Company recognized a gain on sale of $60.9 million.
In May, the Company closed on the previously announced acquisition of a majority and controlling interest in 460 West 34th Street at a gross asset valuation of $440 million. After taking into account earlier investments made through the Company's Debt and Preferred Equity platform, the Company's blended average basis in the 20-story property, which will undergo a large scale redevelopment, was $528 per square foot as of the closing date.
In May, the Company closed on the acquisition of the remaining 10% interest in 110 Greene Street from our joint venture partner at a gross asset valuation of $256.5 million. The Company had acquired its 90% interest in the property in 2015 and now owns 100% of the asset.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity investment portfolio decreased to $2.26 billion at June 30, 2019, including $2.23 billion of investments at a weighted average current yield of 9.1% that are classified in the debt and preferred equity line item on the balance sheet, and investments aggregating $0.03 billion at a weighted average current yield of 6.6% that are included in other balance sheet line items for accounting purposes.
During the second quarter, the Company originated or acquired new subordinate debt and preferred equity investments totaling $136.2 million, of which $130.8 million was retained and $71.3 million was funded at a weighted average yield of 9.6%.
Financing Activity
In July, the Company closed on a $228.7 million mortgage financing of 360 Hamilton Avenue in White Plains, NY and 100, 200 and 500 Summit Lake Drive in Valhalla, New York. The new mortgage has a 3-year term, with two one-year extension options and bears interest at a floating rate of 2.79% per annum over LIBOR.
In May, the Company, along with its joint venture partners, closed on a $465.0 million construction facility for the redevelopment of 460 West 34th Street. The floating rate facility has
a term of three years, with two one-year extension options and bears interest at an initial floating rate of 2.225% over LIBOR.
In May, the Company entered into an agreement to reduce the interest rate spread by 65 basis points on the Company's $200.0 million, 7-year term loan that matures in 2024. This reduction will be effective in November 2019 resulting in annualized interest savings of $1.3 million.
Dividends
In the second quarter of 2019, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:
• | $0.85 per share of common stock, which was paid on July 15, 2019 to shareholders of record on the close of business on June 28, 2019; and |
• | $0.40625 per share on the Company's 6.50% Series I Cumulative Redeemable Preferred Stock for the period April 15, 2019 through and including July 14, 2019, which was paid on July 15, 2019 to shareholders of record on the close of business on June 28, 2019, 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, Chairman and Chief Executive Officer, will host a conference call and audio webcast on Thursday, July 18, 2019 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 https://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 https://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 8857713.
A replay of the call will be available 7 days after the call by dialing (855) 859-2056 using passcode 8857713. A webcast replay will also be available in the Investors section of the SL Green Realty Corp. website at https://slgreen.com/ under “Presentations & Webcasts”.
Supplemental Information | 6 | Second Quarter 2019 |
| ||
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
As of or for the three months ended | |||||||||||||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||
Earnings Per Share | |||||||||||||||||||
Net income (loss) available to common stockholders - diluted | $ | 1.94 | $ | 0.52 | $ | (0.73 | ) | $ | 1.03 | $ | 1.19 | ||||||||
Funds from operations (FFO) available to common stockholders - diluted | $ | 1.82 | $ | 1.68 | $ | 1.61 | $ | 1.66 | $ | 1.69 | |||||||||
Common Share Price & Dividends | |||||||||||||||||||
Closing price at the end of the period | $ | 80.37 | $ | 89.92 | $ | 79.08 | $ | 97.53 | $ | 100.53 | |||||||||
Closing high price during period | $ | 92.60 | $ | 93.47 | $ | 96.88 | $ | 105.86 | $ | 101.59 | |||||||||
Closing low price during period | $ | 79.59 | $ | 77.46 | $ | 77.63 | $ | 96.01 | $ | 94.27 | |||||||||
Common dividend per share | $ | 0.8500 | $ | 0.8500 | $ | 0.8500 | $ | 0.8125 | $ | 0.8125 | |||||||||
FFO payout ratio (trailing 12 months) | 49.7 | % | 50.1% | 49.7% | 49.2% | 49.9% | |||||||||||||
Funds available for distribution (FAD) payout ratio (trailing 12 months) | 87.3 | % | 83.9% | 86.8% | 77.0% | 82.6% | |||||||||||||
Common Shares & Units | |||||||||||||||||||
Common shares outstanding | 82,409 | 83,272 | 83,684 | 85,594 | 85,725 | ||||||||||||||
Units outstanding | 4,259 | 4,261 | 4,131 | 4,601 | 4,700 | ||||||||||||||
Total common shares and units outstanding | 86,668 | 87,533 | 87,815 | 90,195 | 90,425 | ||||||||||||||
Weighted average common shares and units outstanding - basic | 87,231 | 87,646 | 88,187 | 90,209 | 91,882 | ||||||||||||||
Weighted average common shares and units outstanding - diluted | 87,398 | 87,810 | 88,376 | 90,428 | 92,083 | ||||||||||||||
Market Capitalization | |||||||||||||||||||
Market value of common equity | $ | 6,965,507 | $ | 7,870,967 | $ | 6,944,410 | $ | 8,796,718 | $ | 9,090,425 | |||||||||
Liquidation value of preferred equity/units | 516,285 | 515,285 | 530,427 | 531,285 | 531,384 | ||||||||||||||
Consolidated debt | 6,140,212 | 5,940,440 | 5,591,918 | 5,633,016 | 5,902,899 | ||||||||||||||
Consolidated market capitalization | $ | 13,622,004 | $ | 14,326,692 | $ | 13,066,755 | $ | 14,961,019 | $ | 15,524,708 | |||||||||
SLG share of unconsolidated JV debt | 3,799,897 | 3,815,230 | 3,845,901 | 3,949,528 | 4,088,628 | ||||||||||||||
Market capitalization including SLG share of unconsolidated JVs | $ | 17,421,901 | $ | 18,141,922 | $ | 16,912,656 | $ | 18,910,547 | $ | 19,613,336 | |||||||||
Consolidated debt service coverage (trailing 12 months) | 3.20x | 3.10x | 3.10x | 3.13x | 3.09x | ||||||||||||||
Consolidated fixed charge coverage (trailing 12 months) | 2.63x | 2.57x | 2.57x | 2.60x | 2.59x | ||||||||||||||
Debt service coverage, including SLG share of unconsolidated JVs (trailing 12 months) | 2.34x | 2.30x | 2.32x | 2.39x | 2.43x | ||||||||||||||
Fixed charge coverage, including SLG share of unconsolidated JVs (trailing 12 months) | 2.03x | 2.00x | 2.02x | 2.08x | 2.12x | ||||||||||||||
Supplemental Information | 7 | Second Quarter 2019 |
| ||
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
As of or for the three months ended | |||||||||||||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||
Selected Balance Sheet Data | |||||||||||||||||||
Real estate assets before depreciation | $ | 9,550,222 | $ | 8,936,493 | $ | 8,513,935 | $ | 9,283,952 | $ | 9,294,349 | |||||||||
Investments in unconsolidated joint ventures | $ | 2,937,153 | $ | 3,055,368 | $ | 3,019,020 | $ | 3,070,825 | $ | 3,059,985 | |||||||||
Debt and preferred equity investments | $ | 2,228,912 | $ | 2,272,241 | $ | 2,099,393 | $ | 1,977,057 | $ | 2,168,515 | |||||||||
Cash and cash equivalents | $ | 148,978 | $ | 144,323 | $ | 129,475 | $ | 160,248 | $ | 287,240 | |||||||||
Investment in marketable securities | $ | 29,978 | $ | 29,406 | $ | 28,638 | $ | 28,538 | $ | 28,570 | |||||||||
Total assets | $ | 13,629,941 | $ | 13,385,774 | $ | 12,751,358 | $ | 13,455,002 | $ | 13,713,928 | |||||||||
Fixed rate & hedged debt | $ | 3,540,487 | $ | 3,542,126 | $ | 3,543,476 | $ | 3,506,466 | $ | 3,765,899 | |||||||||
Variable rate debt | 2,599,725 | (1) | 2,398,314 | 2,048,442 | 2,126,550 | 2,137,000 | |||||||||||||
Total consolidated debt | $ | 6,140,212 | $ | 5,940,440 | $ | 5,591,918 | $ | 5,633,016 | $ | 5,902,899 | |||||||||
Deferred financing costs, net of amortization | (57,423 | ) | (50,376 | ) | (50,218 | ) | (47,220 | ) | (45,488 | ) | |||||||||
Total consolidated debt, net | $ | 6,082,789 | $ | 5,890,064 | $ | 5,541,700 | $ | 5,585,796 | $ | 5,857,411 | |||||||||
Total liabilities | $ | 7,062,331 | $ | 6,843,805 | $ | 6,115,271 | $ | 6,418,799 | $ | 6,683,877 | |||||||||
Fixed rate & hedged debt, including SLG share of unconsolidated JV debt | $ | 5,781,333 | $ | 5,880,322 | $ | 5,884,452 | $ | 6,021,150 | $ | 6,282,993 | |||||||||
Variable rate debt, including SLG share of unconsolidated JV debt | 4,158,776 | (1) | 3,875,348 | 3,553,367 | 3,561,394 | 3,708,534 | |||||||||||||
Total debt, including SLG share of unconsolidated JV debt | $ | 9,940,109 | $ | 9,755,670 | $ | 9,437,819 | $ | 9,582,544 | $ | 9,991,527 | |||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 244,959 | $ | 240,118 | $ | 247,519 | $ | 250,866 | $ | 238,421 | |||||||||
Property operating expenses | (113,309 | ) | (112,684 | ) | (109,343 | ) | (115,164 | ) | (110,405 | ) | |||||||||
Property NOI | $ | 131,650 | $ | 127,434 | $ | 138,176 | $ | 135,702 | $ | 128,016 | |||||||||
SLG share of unconsolidated JV Property NOI | 78,472 | 80,635 | 79,578 | 77,389 | 88,042 | ||||||||||||||
Property NOI, including SLG share of unconsolidated JV Property NOI | $ | 210,122 | $ | 208,069 | $ | 217,754 | $ | 213,091 | $ | 216,058 | |||||||||
Investment income | 51,618 | 50,031 | 57,952 | 48,977 | 49,273 | ||||||||||||||
Other income | 16,447 | 14,106 | 11,565 | 7,702 | 13,422 | ||||||||||||||
Marketing general & administrative expenses | (25,480 | ) | (25,979 | ) | (26,030 | ) | (20,594 | ) | (22,479 | ) | |||||||||
SLG share of investment income and other income from unconsolidated JVs | 2,141 | 3,291 | 3,810 | 5,642 | 2,749 | ||||||||||||||
Income taxes | 680 | 770 | 964 | 168 | 1,092 | ||||||||||||||
Transaction costs, including SLG share of unconsolidated JVs | (261 | ) | (55 | ) | (426 | ) | (163 | ) | (348 | ) | |||||||||
Loan loss and other investment reserves, net of recoveries | — | — | (5,752 | ) | (1,087 | ) | — | ||||||||||||
Loss on early extinguishment of debt | — | — | (14,889 | ) | (2,194 | ) | — | ||||||||||||
EBITDAre | $ | 255,267 | $ | 250,233 | $ | 244,948 | $ | 251,542 | $ | 259,767 | |||||||||
(1) 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 2019 |
| ||
KEY FINANCIAL DATA Manhattan Properties (1) Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
As of or for the three months ended | |||||||||||||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 227,427 | $ | 222,780 | $ | 229,798 | $ | 234,173 | $ | 220,900 | |||||||||
Property operating expenses | 97,927 | 98,198 | 97,272 | 101,332 | 95,108 | ||||||||||||||
Property NOI | $ | 129,500 | $ | 124,582 | $ | 132,526 | $ | 132,841 | $ | 125,792 | |||||||||
Other income - consolidated | $ | 4,493 | $ | 4,572 | $ | 1,453 | $ | 1,333 | $ | 912 | |||||||||
SLG share of property NOI from unconsolidated JVs | $ | 78,979 | $ | 80,636 | $ | 79,580 | $ | 77,393 | $ | 87,860 | |||||||||
Portfolio Statistics | |||||||||||||||||||
Consolidated office buildings in service | 20 | 20 | 20 | 21 | 21 | ||||||||||||||
Unconsolidated office buildings in service | 10 | 11 | 10 | 10 | 10 | ||||||||||||||
30 | 31 | 30 | 31 | 31 | |||||||||||||||
Consolidated office buildings in service - square footage | 12,387,091 | 12,387,091 | 12,387,091 | 12,756,091 | 12,756,091 | ||||||||||||||
Unconsolidated office buildings in service - square footage | 11,216,183 | 11,676,183 | 11,329,183 | 11,491,164 | 11,491,164 | ||||||||||||||
23,603,274 | 24,063,274 | 23,716,274 | 24,247,255 | 24,247,255 | |||||||||||||||
Same-Store office occupancy (consolidated + JVs) | 94.1% | 94.3% | 94.5% | 94.3% | 93.7% | ||||||||||||||
Same-Store office occupancy inclusive of leases signed not yet commenced | 95.2% | 95.8% | 96.0% | 96.1% | 96.0% | ||||||||||||||
Office Leasing Statistics | |||||||||||||||||||
New leases commenced | 25 | 25 | 33 | 27 | 45 | ||||||||||||||
Renewal leases commenced | 7 | 10 | 11 | 11 | 9 | ||||||||||||||
Total office leases commenced | 32 | 35 | 44 | 38 | 54 | ||||||||||||||
Commenced office square footage filling vacancy | 74,425 | 132,241 | 60,961 | 412,540 | 52,599 | ||||||||||||||
Commenced office square footage on previously occupied space (M-T-M leasing) (2) | 279,649 | 270,602 | 294,886 | 137,808 | 352,935 | ||||||||||||||
Total office square footage commenced | 354,074 | 402,843 | 355,847 | 550,348 | 405,534 | ||||||||||||||
Average starting cash rent psf - office leases commenced | $70.53 | $69.38 | $78.47 | $69.09 | $68.97 | ||||||||||||||
Previous escalated cash rent psf - office leases commenced (3) | $62.82 | $67.90 | $71.70 | $66.03 | $62.87 | ||||||||||||||
Increase in new cash rent over previously escalated cash rent (2) (3) | 12.3% | 2.2% | 9.4% | 4.6% | 9.7% | ||||||||||||||
Average lease term | 11.5 | 11.0 | 6.8 | 21.1 | 7.4 | ||||||||||||||
Tenant concession packages psf | $79.94 | $67.08 | $43.57 | $69.64 | $37.56 | ||||||||||||||
Free rent months | 7.1 | 5.7 | 4.9 | 5.8 | 2.7 | ||||||||||||||
(1) Property data includes operating office, retail, residential, development, and redevelopment properties. | |||||||||||||||||||
(2) Calculated on space that was occupied within the previous 12 months. | |||||||||||||||||||
(3) Escalated cash rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment. | |||||||||||||||||||
Supplemental Information | 9 | Second Quarter 2019 |
| ||
KEY FINANCIAL DATA Suburban Properties (1) Unaudited (Dollars in Thousands Except Per Share) | | |
| ||
As of or for the three months ended | |||||||||||||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||
Selected Operating Data | |||||||||||||||||||
Property operating revenues | $ | 16,933 | $ | 17,121 | $ | 17,707 | $ | 17,338 | $ | 19,679 | |||||||||
Property operating expenses | 8,598 | 8,807 | 8,153 | 9,480 | 11,039 | ||||||||||||||
Property NOI | $ | 8,335 | $ | 8,314 | $ | 9,554 | $ | 7,858 | $ | 8,640 | |||||||||
Other income - consolidated | $ | 135 | $ | 117 | $ | (588 | ) | $ | (529 | ) | $ | 6,271 | |||||||
SLG share of property NOI from unconsolidated JVs | $ | — | $ | — | $ | — | $ | — | $ | 177 | |||||||||
Portfolio Statistics | |||||||||||||||||||
Consolidated office buildings in service | 13 | 13 | 13 | 13 | 19 | ||||||||||||||
Unconsolidated office buildings in service | — | — | — | — | — | ||||||||||||||
13 | 13 | 13 | 13 | 19 | |||||||||||||||
Consolidated office buildings in service - square footage | 2,295,200 | 2,295,200 | 2,295,200 | 2,295,200 | 2,835,200 | ||||||||||||||
Unconsolidated office buildings in service - square footage | — | — | — | — | — | ||||||||||||||
2,295,200 | 2,295,200 | 2,295,200 | 2,295,200 | 2,835,200 | |||||||||||||||
Same-Store office occupancy (consolidated + JVs) | 90.0% | 90.4% | 91.3% | 91.6% | 92.0% | ||||||||||||||
Same-Store office occupancy inclusive of leases signed not yet commenced | 90.0% | 91.1% | 91.8% | 92.1% | 92.2% | ||||||||||||||
Office Leasing Statistics | |||||||||||||||||||
New leases commenced | 5 | 2 | 4 | 3 | 12 | ||||||||||||||
Renewal leases commenced | 7 | 6 | 4 | 5 | 4 | ||||||||||||||
Total office leases commenced | 12 | 8 | 8 | 8 | 16 | ||||||||||||||
Commenced office square footage filling vacancy | 14,994 | 1,165 | 10,348 | 5,732 | 12,876 | ||||||||||||||
Commenced office square footage on previously occupied space (M-T-M leasing) (2) | 75,796 | 31,025 | 125,609 | 21,463 | 48,226 | ||||||||||||||
Total office square footage commenced | 90,790 | 32,190 | 135,957 | 27,195 | 61,102 | ||||||||||||||
Average starting cash rent psf - office leases commenced | $38.59 | $32.93 | $26.17 | $36.77 | $35.85 | ||||||||||||||
Previous escalated cash rent psf - office leases commenced (3) | $39.87 | $32.73 | $27.79 | $36.97 | $37.26 | ||||||||||||||
(Decrease) increase in new cash rent over previously escalated cash rent (2) (3) | (3.2)% | 0.6% | (5.8)% | (0.5)% | (3.8)% | ||||||||||||||
Average lease term | 8.6 | 4.5 | 7.5 | 2.5 | 6.4 | ||||||||||||||
Tenant concession packages psf | $14.27 | $11.72 | $24.73 | $5.20 | $18.87 | ||||||||||||||
Free rent months | 7.8 | 3.5 | 6.9 | 1.0 | 4.2 | ||||||||||||||
(1) Property data includes operating office, retail, and development properties. | |||||||||||||||||||
(2) Calculated on space that was occupied within the previous 12 months. | |||||||||||||||||||
(3) Escalated cash rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment. | |||||||||||||||||||
Supplemental Information | 10 | Second Quarter 2019 |
| ||
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) | | |
| ||
As of | |||||||||||||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||
Assets | |||||||||||||||||||
Commercial real estate properties, at cost: | |||||||||||||||||||
Land and land interests | $ | 1,929,496 | $ | 1,775,006 | $ | 1,774,899 | $ | 1,827,999 | $ | 1,893,047 | |||||||||
Building and improvements | 5,749,261 | 5,294,612 | 5,268,484 | 5,271,442 | 5,225,431 | ||||||||||||||
Building leasehold and improvements | 1,427,225 | 1,423,282 | 1,423,107 | 1,427,381 | 1,423,994 | ||||||||||||||
Right of use asset - financing leases | 47,445 | 47,445 | 47,445 | 47,445 | 47,445 | ||||||||||||||
Right of use asset - operating leases | 396,795 | 396,148 | — | — | — | ||||||||||||||
9,550,222 | 8,936,493 | 8,513,935 | 8,574,267 | 8,589,917 | |||||||||||||||
Less: accumulated depreciation | (2,217,013 | ) | (2,154,075 | ) | (2,099,137 | ) | (2,049,338 | ) | (1,994,696 | ) | |||||||||
Net real estate | 7,333,209 | 6,782,418 | 6,414,798 | 6,524,929 | 6,595,221 | ||||||||||||||
Other real estate investments: | |||||||||||||||||||
Investment in unconsolidated joint ventures | 2,937,153 | 3,055,368 | 3,019,020 | 3,070,825 | 3,059,985 | ||||||||||||||
Debt and preferred equity investments, net | 2,228,912 | (1) | 2,272,241 | 2,099,393 | 1,977,057 | 2,168,515 | |||||||||||||
Assets held for sale, net | — | — | — | 696,069 | 593,995 | ||||||||||||||
Cash and cash equivalents | 148,978 | 144,323 | 129,475 | 160,248 | 287,240 | ||||||||||||||
Restricted cash | 92,169 | 151,388 | 149,638 | 98,344 | 92,740 | ||||||||||||||
Investment in marketable securities | 29,978 | 29,406 | 28,638 | 28,538 | 28,570 | ||||||||||||||
Tenant and other receivables, net of $14,300 of cumulative charge-offs at 6/30/2019 | 38,270 | 47,829 | 41,589 | 44,614 | 47,482 | ||||||||||||||
Related party receivables | 23,686 | 29,458 | 28,033 | 21,425 | 27,854 | ||||||||||||||
Deferred rents receivable, net of $13,798 of cumulative charge-offs at 6/30/2019 | 341,659 | 337,099 | 335,985 | 329,325 | 322,656 | ||||||||||||||
Deferred costs, net | 220,572 | 211,615 | 209,110 | 202,500 | 198,941 | ||||||||||||||
Other assets | 235,355 | 324,629 | 295,679 | 301,128 | 290,729 | ||||||||||||||
Total Assets | $ | 13,629,941 | $ | 13,385,774 | $ | 12,751,358 | $ | 13,455,002 | $ | 13,713,928 | |||||||||
(1) Excludes debt and preferred equity investments totaling $34.5 million with a weighted average current yield of 6.57% that are included in other balance sheet line items. | |||||||||||||||||||
Supplemental Information | 11 | Second Quarter 2019 |
| ||
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) | | |
| ||
As of | |||||||||||||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||
Liabilities | |||||||||||||||||||
Mortgages and other loans payable | $ | 2,366,907 | $ | 2,046,906 | $ | 1,988,160 | $ | 2,339,030 | $ | 2,538,696 | |||||||||
Unsecured term loans | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||||
Unsecured notes | 1,503,305 | 1,503,534 | 1,503,758 | 1,503,986 | 1,404,203 | ||||||||||||||
Revolving credit facility | 670,000 | 790,000 | 500,000 | 145,000 | 360,000 | ||||||||||||||
Deferred financing costs | (57,423 | ) | (50,376 | ) | (50,218 | ) | (47,220 | ) | (45,488 | ) | |||||||||
Total debt, net of deferred financing costs | 5,982,789 | 5,790,064 | 5,441,700 | 5,440,796 | 5,757,411 | ||||||||||||||
Accrued interest | 25,564 | 28,930 | 23,154 | 27,211 | 26,104 | ||||||||||||||
Accounts payable and accrued expenses | 133,473 | 111,899 | 147,061 | 141,082 | 140,739 | ||||||||||||||
Deferred revenue | 122,941 | 102,598 | 94,453 | 110,283 | 95,756 | ||||||||||||||
Lease liability - financing leases | 44,034 | 43,823 | 43,616 | 43,416 | 43,221 | ||||||||||||||
Lease liability - operating leases | 387,602 | 389,857 | — | — | — | ||||||||||||||
Dividends and distributions payable | 79,272 | 80,047 | 80,430 | 79,165 | 79,518 | ||||||||||||||
Security deposits | 62,735 | 61,139 | 64,688 | 64,501 | 63,872 | ||||||||||||||
Liabilities related to assets held for sale | — | — | — | 311,049 | 265,538 | ||||||||||||||
Junior subordinated deferrable interest debentures | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||||||
Other liabilities | 123,921 | 135,448 | 120,169 | 101,296 | 111,718 | ||||||||||||||
Total liabilities | 7,062,331 | 6,843,805 | 6,115,271 | 6,418,799 | 6,683,877 | ||||||||||||||
Noncontrolling interest in operating partnership | |||||||||||||||||||
(4,259 units outstanding) at 6/30/2019 | 401,824 | 412,361 | 387,805 | 467,743 | 486,610 | ||||||||||||||
Preferred units | 286,285 | 285,285 | 300,427 | 301,285 | 301,385 | ||||||||||||||
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, 83,464 | |||||||||||||||||||
issued and outstanding at 6/30/2019, including 1,055 shares held in treasury | 835 | 843 | 847 | 867 | 868 | ||||||||||||||
Additional paid–in capital | 4,451,209 | 4,492,581 | 4,508,685 | 4,602,650 | 4,601,608 | ||||||||||||||
Treasury stock | (124,049 | ) | (124,049 | ) | (124,049 | ) | (124,049 | ) | (124,049 | ) | |||||||||
Accumulated other comprehensive income | (28,395 | ) | (4,005 | ) | 15,108 | 36,299 | 32,622 | ||||||||||||
Retained earnings | 1,288,390 | 1,210,497 | 1,278,998 | 1,476,959 | 1,457,835 | ||||||||||||||
Total SL Green Realty Corp. stockholders' equity | 5,809,922 | 5,797,799 | 5,901,521 | 6,214,658 | 6,190,816 | ||||||||||||||
Noncontrolling interest in other partnerships | 69,579 | 46,524 | 46,334 | 52,517 | 51,240 | ||||||||||||||
Total equity | 5,879,501 | 5,844,323 | 5,947,855 | 6,267,175 | 6,242,056 | ||||||||||||||
Total Liabilities and Equity | $ | 13,629,941 | $ | 13,385,774 | $ | 12,751,358 | $ | 13,455,002 | $ | 13,713,928 | |||||||||
Supplemental Information | 12 | Second Quarter 2019 |
| ||
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, | |||||||||||||||||
2019 | 2018 | 2019 | 2019 | 2018 | |||||||||||||||||
Revenues | |||||||||||||||||||||
Rental revenue, net | $ | 216,480 | $ | 211,369 | $ | 212,639 | $ | 429,119 | $ | 426,738 | |||||||||||
Escalation and reimbursement revenues | 28,479 | 27,052 | 27,479 | 55,958 | 53,451 | ||||||||||||||||
Investment income | 51,618 | 49,273 | 50,031 | 101,649 | 94,563 | ||||||||||||||||
Other income | 16,447 | 13,422 | 14,106 | 30,553 | 28,059 | ||||||||||||||||
Total Revenues, net | 313,024 | 301,116 | 304,255 | 617,279 | 602,811 | ||||||||||||||||
Equity in net (loss) income from unconsolidated joint ventures | (7,546 | ) | 4,702 | (5,234 | ) | (12,780 | ) | 8,738 | |||||||||||||
Expenses | |||||||||||||||||||||
Operating expenses | 58,317 | 56,237 | 57,698 | 116,015 | 116,019 | ||||||||||||||||
Operating lease rent | 8,298 | 8,846 | 8,298 | 16,596 | 17,154 | ||||||||||||||||
Real estate taxes | 46,694 | 45,322 | 46,688 | 93,382 | 90,983 | ||||||||||||||||
Transaction related costs | 261 | 348 | 55 | 316 | 510 | ||||||||||||||||
Marketing, general and administrative | 25,480 | 22,479 | 25,979 | 51,459 | 46,007 | ||||||||||||||||
Total Operating Expenses | 139,050 | 133,232 | 138,718 | 277,768 | 270,673 | ||||||||||||||||
Operating Income | 166,428 | 172,586 | 160,303 | 326,731 | 340,876 | ||||||||||||||||
Interest expense, net of interest income | 47,160 | 53,611 | 50,525 | 97,685 | 101,527 | ||||||||||||||||
Amortization of deferred financing costs | 2,712 | 3,546 | 2,742 | 5,454 | 7,083 | ||||||||||||||||
Depreciation and amortization | 69,461 | 67,914 | 68,343 | 137,804 | 137,302 | ||||||||||||||||
Income from Continuing Operations (1) | 47,095 | 47,515 | 38,693 | 85,788 | 94,964 | ||||||||||||||||
(Loss) gain on sale of real estate | — | (14,790 | ) | (1,049 | ) | (1,049 | ) | 8,731 | |||||||||||||
Equity in net gain on sale of joint venture interest / real estate | 59,015 | 72,025 | 17,166 | 76,181 | 65,585 | ||||||||||||||||
Purchase price and other fair value adjustments | 67,631 | 11,149 | (2,041 | ) | 65,590 | 60,442 | |||||||||||||||
Net Income | 173,741 | 115,899 | 52,769 | 226,510 | 229,722 | ||||||||||||||||
Net income attributable to noncontrolling interests | (6,172 | ) | (5,759 | ) | (2,515 | ) | (8,687 | ) | (11,229 | ) | |||||||||||
Dividends on preferred units | (2,729 | ) | (2,847 | ) | (2,724 | ) | (5,453 | ) | (5,696 | ) | |||||||||||
Net Income Attributable to SL Green Realty Corp | 164,840 | 107,293 | 47,530 | 212,370 | 212,797 | ||||||||||||||||
Dividends on perpetual preferred shares | (3,737 | ) | (3,737 | ) | (3,738 | ) | (7,475 | ) | (7,475 | ) | |||||||||||
Net Income Attributable to Common Stockholders | $ | 161,103 | $ | 103,556 | $ | 43,792 | $ | 204,895 | $ | 205,322 | |||||||||||
Earnings per share - Net income per share (basic) | $ | 1.94 | $ | 1.19 | $ | 0.52 | $ | 2.46 | $ | 2.31 | |||||||||||
Earnings per share - Net income per share (diluted) | $ | 1.94 | $ | 1.19 | $ | 0.52 | $ | 2.46 | $ | 2.31 | |||||||||||
(1) Before gains on sale and equity in net gains and depreciable real estate reserves shown below. | |||||||||||||||||||||
Supplemental Information | 13 | Second Quarter 2019 |
| ||
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, | ||||||||||||||||||
2019 | 2018 | 2019 | 2019 | 2018 | ||||||||||||||||||
Funds from Operations | ||||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 161,103 | $ | 103,556 | $ | 43,792 | $ | 204,895 | $ | 205,322 | ||||||||||||
Depreciation and amortization | 69,461 | 67,914 | 68,343 | 137,804 | 137,302 | |||||||||||||||||
Unconsolidated JV depreciation and noncontrolling interests adjustments | 49,903 | 47,308 | 47,625 | 97,528 | 95,314 | |||||||||||||||||
Net income attributable to noncontrolling interests | 6,172 | 5,759 | 2,515 | 8,687 | 11,229 | |||||||||||||||||
Loss (gain) on sale of real estate | — | 14,790 | 1,049 | 1,049 | (8,731 | ) | ||||||||||||||||
Equity in net gain on sale of joint venture property / real estate | (59,015 | ) | (72,025 | ) | (17,166 | ) | (76,181 | ) | (65,585 | ) | ||||||||||||
Purchase price and other fair value adjustments | (67,631 | ) | (11,149 | ) | 2,041 | (65,590 | ) | (60,442 | ) | |||||||||||||
Non-real estate depreciation and amortization | (746 | ) | (584 | ) | (707 | ) | (1,453 | ) | (1,150 | ) | ||||||||||||
Funds From Operations | $ | 159,247 | $ | 155,569 | $ | 147,492 | $ | 306,739 | $ | 313,259 | ||||||||||||
Funds From Operations - Basic per Share | $ | 1.83 | $ | 1.69 | $ | 1.68 | $ | 3.51 | $ | 3.35 | ||||||||||||
Funds From Operations - Diluted per Share | $ | 1.82 | $ | 1.69 | $ | 1.68 | $ | 3.50 | $ | 3.34 | ||||||||||||
Funds Available for Distribution | ||||||||||||||||||||||
FFO | $ | 159,247 | $ | 155,569 | $ | 147,492 | $ | 306,739 | $ | 313,259 | ||||||||||||
Non real estate depreciation and amortization | 746 | 584 | 707 | 1,453 | 1,150 | |||||||||||||||||
Amortization of deferred financing costs | 2,712 | 3,546 | 2,742 | 5,454 | 7,083 | |||||||||||||||||
Non-cash deferred compensation | 5,570 | 7,808 | 12,816 | 18,386 | 19,683 | |||||||||||||||||
FAD adjustment for joint ventures | (29,320 | ) | (23,073 | ) | (22,765 | ) | (52,085 | ) | (39,823 | ) | ||||||||||||
Straight-line rental income and other non cash adjustments | (8,121 | ) | (5,675 | ) | (4,595 | ) | (12,716 | ) | (12,605 | ) | ||||||||||||
Second cycle tenant improvements | (19,248 | ) | (19,862 | ) | (8,421 | ) | (27,669 | ) | (25,648 | ) | ||||||||||||
Second cycle leasing commissions | (4,945 | ) | (4,320 | ) | (7,010 | ) | (11,955 | ) | (8,299 | ) | ||||||||||||
Revenue enhancing recurring CAPEX | (665 | ) | (996 | ) | (333 | ) | (998 | ) | (1,505 | ) | ||||||||||||
Non-revenue enhancing recurring CAPEX | (15,323 | ) | (7,746 | ) | (8,384 | ) | (23,707 | ) | (12,274 | ) | ||||||||||||
Reported Funds Available for Distribution | $ | 90,653 | $ | 105,835 | $ | 112,249 | $ | 202,902 | $ | 241,021 | ||||||||||||
First cycle tenant improvements | $ | 1,388 | $ | 1,671 | $ | 360 | $ | 1,748 | $ | 2,987 | ||||||||||||
First cycle leasing commissions | $ | 8,965 | $ | 806 | $ | 5,069 | $ | 14,034 | $ | 988 | ||||||||||||
Development costs | $ | 5,257 | $ | 6,437 | $ | 4,655 | $ | 9,912 | $ | 9,413 | ||||||||||||
Redevelopment costs | $ | 12,898 | $ | 6,800 | $ | 6,113 | $ | 19,011 | $ | 26,001 | ||||||||||||
Capitalized interest | $ | 12,019 | $ | 7,594 | $ | 10,509 | $ | 22,528 | $ | 14,280 | ||||||||||||
Supplemental Information | 14 | Second Quarter 2019 |
| ||
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 (Loss) | TOTAL | |||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 221,932 | $ | 847 | $ | 4,508,685 | $ | (124,049 | ) | $ | 1,278,998 | $ | 46,334 | $ | 15,108 | $ | 5,947,855 | |||||||||||||||||
Net income | 212,370 | (1,900 | ) | 210,470 | ||||||||||||||||||||||||||||||
Acquisition of subsidiary interest from noncontrolling interest | (515 | ) | (25,276 | ) | (25,791 | ) | ||||||||||||||||||||||||||||
Preferred dividends | (7,475 | ) | (7,475 | ) | ||||||||||||||||||||||||||||||
Cash distributions declared ($1.70 per common share) | (140,377 | ) | (140,377 | ) | ||||||||||||||||||||||||||||||
Cash distributions to noncontrolling interests | (271 | ) | (271 | ) | ||||||||||||||||||||||||||||||
Other comprehensive loss - unrealized loss on derivative instruments | (32,681 | ) | (32,681 | ) | ||||||||||||||||||||||||||||||
Other comprehensive loss - SLG share of unconsolidated joint venture net unrealized loss on derivative instruments | (12,096 | ) | (12,096 | ) | ||||||||||||||||||||||||||||||
Other comprehensive gain - unrealized gain on marketable securities | 1,274 | 1,274 | ||||||||||||||||||||||||||||||||
DRSPP proceeds | 263 | 263 | ||||||||||||||||||||||||||||||||
Repurchases of common stock | (12 | ) | (68,203 | ) | (41,098 | ) | (109,313 | ) | ||||||||||||||||||||||||||
Conversion of units of the Operating Partnership to common stock | 446 | 446 | ||||||||||||||||||||||||||||||||
Contributions to consolidated joint ventures | 50,692 | 50,692 | ||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests in the Operating Partnership | (14,028 | ) | (14,028 | ) | ||||||||||||||||||||||||||||||
Deferred compensation plan and stock awards, net | 10,533 | 10,533 | ||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 221,932 | $ | 835 | $ | 4,451,209 | $ | (124,049 | ) | $ | 1,288,390 | $ | 69,579 | $ | (28,395 | ) | $ | 5,879,501 | ||||||||||||||||
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION | ||||||||||||||||||||||||||||||||||
Common Stock | OP Units | Stock-Based Compensation | Diluted Shares | |||||||||||||||||||||||||||||||
Share Count at December 31, 2018 | 83,683,847 | 4,130,579 | — | 87,814,426 | ||||||||||||||||||||||||||||||
YTD share activity | (1,274,563 | ) | 128,256 | — | (1,146,307 | ) | ||||||||||||||||||||||||||||
Share Count at June 30, 2019 - Basic | 82,409,284 | 4,258,835 | — | 86,668,119 | ||||||||||||||||||||||||||||||
Weighting factor | 731,998 | 37,243 | 168,448 | 937,689 | ||||||||||||||||||||||||||||||
Weighted Average Share Count at June 30, 2019 - Diluted | 83,141,282 | 4,296,078 | 168,448 | 87,605,808 | ||||||||||||||||||||||||||||||
Supplemental Information | 15 | Second Quarter 2019 |
| ||
JOINT VENTURE STATEMENTS Balance Sheet for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) | | |
| ||
June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||||||||
Total | SLG Share | Total | SLG Share | Total | SLG Share | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Commercial real estate properties, at cost: | |||||||||||||||||||||||
Land and land interests | $ | 3,892,587 | $ | 1,880,967 | $ | 4,014,425 | $ | 1,937,418 | $ | 4,280,441 | $ | 2,053,968 | |||||||||||
Building and improvements | 10,026,975 | 4,952,690 | 10,150,482 | 4,944,693 | 10,258,232 | 4,871,446 | |||||||||||||||||
Building leasehold and improvements | 394,503 | 200,176 | 394,722 | 200,287 | 394,587 | 200,220 | |||||||||||||||||
Right of use asset - financing leases | 634,822 | 321,864 | 634,663 | 321,783 | 420,770 | 212,697 | |||||||||||||||||
Right of use asset - operating leases | 236,519 | 116,376 | 236,519 | 116,376 | — | — | |||||||||||||||||
15,185,406 | 7,472,073 | 15,430,811 | 7,520,557 | 15,354,030 | 7,338,331 | ||||||||||||||||||
Less: accumulated depreciation | (1,034,345 | ) | (459,917 | ) | (1,067,859 | ) | (458,371 | ) | (1,006,357 | ) | (419,771 | ) | |||||||||||
Net real estate | 14,151,061 | 7,012,156 | 14,362,952 | 7,062,186 | 14,347,673 | 6,918,560 | |||||||||||||||||
Cash and cash equivalents | 217,981 | 109,455 | 225,382 | 117,440 | 214,934 | 106,340 | |||||||||||||||||
Restricted cash | 101,447 | 47,937 | 145,450 | 72,082 | 166,367 | 81,081 | |||||||||||||||||
Debt and preferred equity investments, net | — | — | 44,824 | 44,824 | 44,357 | 44,357 | |||||||||||||||||
Tenant and other receivables, net of $8,559 of cumulative charge-offs at 6/30/2019, of which $4,290 is SLG share | 40,699 | 15,469 | 56,346 | 26,345 | 36,041 | 13,058 | |||||||||||||||||
Deferred rents receivable, net of $3,405 of cumulative charge-offs at 6/30/2019, of which $1,364 is SLG share | 280,903 | 132,579 | 265,350 | 122,640 | 237,100 | 105,895 | |||||||||||||||||
Deferred costs, net | 175,521 | 97,512 | 176,920 | 96,081 | 179,368 | 96,915 | |||||||||||||||||
Other assets | 1,917,972 | 849,865 | 2,014,521 | 896,875 | 2,007,798 | 897,620 | |||||||||||||||||
Total Assets | $ | 16,885,584 | $ | 8,264,973 | $ | 17,291,745 | $ | 8,438,473 | $ | 17,233,638 | $ | 8,263,826 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Mortgage and other loans payable, net of deferred financing costs of $102,858 at 6/30/2019, of which $50,008 is SLG share | $ | 8,591,391 | $ | 3,749,889 | $ | 8,760,333 | $ | 3,760,385 | $ | 8,950,622 | $ | 3,799,798 | |||||||||||
Accrued interest | 28,360 | 11,573 | 29,839 | 12,399 | 27,343 | 11,594 | |||||||||||||||||
Accounts payable and accrued expenses | 224,112 | 118,010 | 265,314 | 143,048 | 234,222 | 127,482 | |||||||||||||||||
Deferred revenue | 1,558,660 | 692,369 | 1,620,437 | 720,421 | 1,660,838 | 732,505 | |||||||||||||||||
Lease liability - financing leases | 637,347 | 323,112 | 637,199 | 323,042 | 637,168 | 323,032 | |||||||||||||||||
Lease liability - operating leases | 263,255 | 129,016 | 264,609 | 129,706 | — | — | |||||||||||||||||
Security deposits | 26,989 | 10,034 | 33,820 | 12,680 | 34,007 | 12,190 | |||||||||||||||||
Other liabilities | 10,547 | 5,379 | 12,161 | 6,664 | 13,572 | 7,450 | |||||||||||||||||
Equity | 5,544,923 | 3,225,591 | 5,668,033 | 3,330,128 | 5,675,866 | 3,249,775 | |||||||||||||||||
Total Liabilities and Equity | $ | 16,885,584 | $ | 8,264,973 | $ | 17,291,745 | $ | 8,438,473 | $ | 17,233,638 | $ | 8,263,826 | |||||||||||
Supplemental Information | 16 | Second Quarter 2019 |
| ||
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, 2019 | March 31, 2019 | June 30, 2018 | |||||||||||||||||||||
Total | SLG Share | Total | SLG Share | Total | SLG Share | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental revenue, net | $ | 248,446 | $ | 108,310 | $ | 257,892 | $ | 111,732 | $ | 271,760 | $ | 117,214 | |||||||||||
Escalation and reimbursement revenues | 36,451 | 17,017 | 39,044 | 18,258 | 38,371 | 18,128 | |||||||||||||||||
Investment income | 1,417 | 476 | 7,651 | 2,227 | 1,995 | 1,708 | |||||||||||||||||
Other income | 4,134 | 1,665 | 2,932 | 1,064 | 2,069 | 1,041 | |||||||||||||||||
Total Revenues, net | $ | 290,448 | $ | 127,468 | $ | 307,519 | $ | 133,281 | $ | 314,195 | $ | 138,091 | |||||||||||
Expenses | |||||||||||||||||||||||
Operating expenses | $ | 48,514 | $ | 20,683 | $ | 54,124 | $ | 22,856 | $ | 50,356 | $ | 21,167 | |||||||||||
Operating lease rent | 6,234 | 3,026 | 5,901 | 2,860 | 4,457 | 2,137 | |||||||||||||||||
Real estate taxes | 51,987 | 23,146 | 54,236 | 23,639 | 55,838 | 23,996 | |||||||||||||||||
Total Operating Expenses | $ | 106,735 | $ | 46,855 | $ | 114,261 | $ | 49,355 | $ | 110,651 | $ | 47,300 | |||||||||||
Operating Income | $ | 183,713 | $ | 80,613 | $ | 193,258 | $ | 83,926 | $ | 203,544 | $ | 90,791 | |||||||||||
Interest expense, net of interest income | $ | 93,693 | $ | 38,281 | $ | 96,623 | $ | 39,407 | $ | 91,648 | $ | 36,670 | |||||||||||
Amortization of deferred financing costs | 4,782 | 1,591 | 5,216 | 1,568 | 7,350 | 1,752 | |||||||||||||||||
Depreciation and amortization | 103,681 | 48,176 | 104,331 | 48,128 | 111,495 | 47,565 | |||||||||||||||||
Net (Loss) Income | $ | (18,443 | ) | $ | (7,435 | ) | $ | (12,912 | ) | $ | (5,177 | ) | $ | (6,949 | ) | $ | 4,804 | ||||||
Real estate depreciation | 103,392 | 48,120 | 104,042 | 48,071 | 111,202 | 47,508 | |||||||||||||||||
FFO Contribution | $ | 84,949 | $ | 40,685 | $ | 91,130 | $ | 42,894 | $ | 104,253 | $ | 52,312 | |||||||||||
FAD Adjustments: | |||||||||||||||||||||||
Non real estate depreciation and amortization | $ | 289 | $ | 56 | $ | 289 | $ | 57 | $ | 293 | $ | 57 | |||||||||||
Amortization of deferred financing costs | 4,782 | 1,591 | 5,216 | 1,568 | 7,350 | 1,752 | |||||||||||||||||
Straight-line rental income and other non-cash adjustments | (38,144 | ) | (20,386 | ) | (41,466 | ) | (22,026 | ) | (21,461 | ) | (11,312 | ) | |||||||||||
Second cycle tenant improvement | (12,766 | ) | (6,712 | ) | (2,290 | ) | (882 | ) | (32,279 | ) | (9,857 | ) | |||||||||||
Second cycle leasing commissions | (983 | ) | (499 | ) | (1,597 | ) | (724 | ) | (4,928 | ) | (1,977 | ) | |||||||||||
Revenue enhancing recurring CAPEX | (1,054 | ) | (368 | ) | (232 | ) | (95 | ) | (1,169 | ) | (232 | ) | |||||||||||
Non-revenue enhancing recurring CAPEX | (6,907 | ) | (3,002 | ) | (1,978 | ) | (663 | ) | (3,042 | ) | (1,504 | ) | |||||||||||
Total FAD Adjustments | $ | (54,783 | ) | $ | (29,320 | ) | $ | (42,058 | ) | $ | (22,765 | ) | $ | (55,236 | ) | $ | (23,073 | ) | |||||
First cycle tenant improvement | $ | 5,943 | $ | 3,106 | $ | 5,864 | $ | 1,979 | $ | 5,644 | $ | 2,049 | |||||||||||
First cycle leasing commissions | $ | 133 | $ | 68 | $ | 245 | $ | 125 | $ | 2,760 | $ | 825 | |||||||||||
Development costs | $ | 147,326 | $ | 104,617 | $ | 149,049 | $ | 105,840 | $ | 124,920 | $ | 52,878 | |||||||||||
Redevelopment costs | $ | 5,115 | $ | 2,258 | $ | (776 | ) | $ | (624 | ) | $ | 9,384 | $ | 5,026 | |||||||||
Capitalized interest | $ | 5,571 | $ | 3,956 | $ | 4,929 | $ | 3,500 | $ | 12,448 | $ | 7,364 | |||||||||||
Supplemental Information | 17 | Second Quarter 2019 |
| ||
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) | | |
| ||
Six Months Ended | Six Months Ended | ||||||||||||||
June 30, 2019 | June 30, 2018 | ||||||||||||||
Total | SLG Share | Total | SLG Share | ||||||||||||
Revenues | |||||||||||||||
Rental revenue, net | $ | 506,338 | $ | 220,042 | $ | 545,976 | $ | 233,899 | |||||||
Escalation and reimbursement revenues | 75,495 | 35,275 | 77,826 | 36,423 | |||||||||||
Investment income | 9,068 | 2,703 | 5,364 | 4,794 | |||||||||||
Other income | 7,066 | 2,729 | 5,970 | 2,334 | |||||||||||
Total Revenues, net | $ | 597,967 | $ | 260,749 | $ | 635,136 | $ | 277,450 | |||||||
Expenses | |||||||||||||||
Operating expenses | $ | 102,638 | $ | 43,539 | $ | 110,129 | $ | 45,127 | |||||||
Operating lease rent | 12,135 | 5,886 | 8,850 | 4,243 | |||||||||||
Real estate taxes | 106,223 | 46,785 | 112,865 | 48,109 | |||||||||||
Total Operating Expenses | $ | 220,996 | $ | 96,210 | $ | 231,844 | $ | 97,479 | |||||||
Operating Income | $ | 376,971 | $ | 164,539 | $ | 403,292 | $ | 179,971 | |||||||
Interest expense, net of interest income | $ | 190,316 | $ | 77,688 | $ | 181,389 | $ | 72,450 | |||||||
Amortization of deferred financing costs | 9,998 | 3,159 | 12,466 | 3,425 | |||||||||||
Depreciation and amortization | 208,012 | 96,304 | 216,575 | 95,184 | |||||||||||
Net (Loss) income | $ | (31,355 | ) | $ | (12,612 | ) | $ | (7,138 | ) | $ | 8,912 | ||||
Real estate depreciation | 207,434 | 96,191 | 215,975 | 95,069 | |||||||||||
FFO Contribution | $ | 176,079 | $ | 83,579 | $ | 208,837 | $ | 103,981 | |||||||
FAD Adjustments: | |||||||||||||||
Non real estate depreciation and amortization | $ | 578 | $ | 113 | $ | 600 | $ | 115 | |||||||
Amortization of deferred financing costs | 9,998 | 3,159 | 12,466 | 3,425 | |||||||||||
Straight-line rental income and other non-cash adjustments | (79,609 | ) | (42,412 | ) | (45,450 | ) | (23,740 | ) | |||||||
Second cycle tenant improvement | (15,056 | ) | (7,594 | ) | (46,285 | ) | (14,785 | ) | |||||||
Second cycle leasing commissions | (2,580 | ) | (1,223 | ) | (8,478 | ) | (2,848 | ) | |||||||
Revenue enhancing recurring CAPEX | (1,286 | ) | (463 | ) | (1,190 | ) | (238 | ) | |||||||
Non-revenue enhancing recurring CAPEX | (8,885 | ) | (3,665 | ) | (3,643 | ) | (1,752 | ) | |||||||
Total FAD Adjustments | $ | (96,840 | ) | $ | (52,085 | ) | $ | (91,980 | ) | $ | (39,823 | ) | |||
First cycle tenant improvement | $ | 11,807 | $ | 5,085 | $ | 59,044 | $ | 32,956 | |||||||
First cycle leasing commissions | $ | 378 | $ | 193 | $ | 3,620 | $ | 911 | |||||||
Development costs | $ | 296,375 | $ | 210,457 | $ | 238,179 | $ | 118,053 | |||||||
Redevelopment costs | $ | 4,339 | $ | 1,634 | $ | 16,406 | $ | 9,199 | |||||||
Capitalized Interest | $ | 10,500 | $ | 7,456 | $ | 24,779 | $ | 14,766 | |||||||
Supplemental Information | 18 | Second Quarter 2019 |
| ||
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, | ||||||||||||||||||
2019 | 2018 | 2019 | 2019 | 2018 | ||||||||||||||||||
Net Operating Income (1) | $ | 138,358 | $ | 133,478 | $ | 135,506 | $ | 273,863 | $ | 268,543 | ||||||||||||
SLG share of property NOI from unconsolidated JVs | 79,556 | 88,915 | 81,706 | 161,259 | 174,833 | |||||||||||||||||
NOI including SLG share of unconsolidated JVs | $ | 217,914 | $ | 222,393 | $ | 217,212 | $ | 435,122 | $ | 443,376 | ||||||||||||
Partners' share of NOI - consolidated JVs | (488 | ) | (415 | ) | (764 | ) | (997 | ) | (1,061 | ) | ||||||||||||
NOI - SLG share | $ | 217,426 | $ | 221,978 | $ | 216,448 | $ | 434,125 | $ | 442,315 | ||||||||||||
NOI, including SLG share of unconsolidated JVs | $ | 217,914 | $ | 222,393 | $ | 217,212 | $ | 435,122 | $ | 443,376 | ||||||||||||
Free rent (net of amortization) | (16,012 | ) | (3,191 | ) | (16,448 | ) | (32,459 | ) | (9,319 | ) | ||||||||||||
Amortization of acquired above and below-market leases, net | (5,503 | ) | (5,843 | ) | (5,609 | ) | (11,112 | ) | (12,216 | ) | ||||||||||||
Straight-line revenue adjustment | (4,615 | ) | (4,862 | ) | (5,056 | ) | (9,672 | ) | (9,827 | ) | ||||||||||||
Straight-line tenant credit loss | 18 | (1,014 | ) | 2,737 | 2,754 | (1,051 | ) | |||||||||||||||
Operating lease straight-line adjustment | 988 | 1,053 | 972 | 1,960 | 1,993 | |||||||||||||||||
Cash NOI, including SLG share of unconsolidated JVs | $ | 192,790 | $ | 208,536 | $ | 193,808 | $ | 386,593 | $ | 412,956 | ||||||||||||
Partners' share of cash NOI - consolidated JVs | (502 | ) | (478 | ) | (703 | ) | (1,006 | ) | (1,075 | ) | ||||||||||||
Cash NOI - SLG share | $ | 192,288 | $ | 208,058 | $ | 193,105 | $ | 385,587 | $ | 411,881 | ||||||||||||
(1) Includes SL Green Management Corp. and Emerge 212. Excludes lease termination income. | ||||||||||||||||||||||
NOI Summary by Portfolio (1) - SLG Share | |||||||||||||||||
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||||||||||||
NOI | Cash NOI | NOI | Cash NOI | ||||||||||||||
Manhattan Operating Properties | $ | 184,302 | $ | 161,690 | $ | 364,110 | $ | 321,106 | |||||||||
Suburban Operating Properties | 7,930 | 7,591 | 15,895 | 15,718 | |||||||||||||
Retail Operating Properties | 13,251 | 12,072 | 26,799 | 24,281 | |||||||||||||
Residential Operating Properties | 8,073 | 7,959 | 16,087 | 15,786 | |||||||||||||
Development/Redevelopment | 1,967 | 1,100 | 3,833 | 2,099 | |||||||||||||
Total Operating and Development | 215,523 | 190,412 | 426,724 | 378,990 | |||||||||||||
Property Dispositions | 1,535 | 1,397 | 4,490 | 3,482 | |||||||||||||
Other (2) | 368 | 479 | 2,911 | 3,115 | |||||||||||||
Total | $ | 217,426 | $ | 192,288 | $ | 434,125 | $ | 385,587 | |||||||||
(1) Portfolio composition consistent with property tables found on pages 29-32 | |||||||||||||||||
(2) Includes SL Green Management Corp., Emerge 212, Belmont Insurance Company and Ticonderoga Insurance Company | |||||||||||||||||
Supplemental Information | 19 | Second Quarter 2019 |
| ||
SELECTED FINANCIAL DATA 2019 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, | |||||||||||||||||||||||
2019 | 2018 | % | 2018 | 2019 | 2018 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 212,156 | $ | 205,618 | 3.2 | % | $ | 208,542 | $ | 420,698 | $ | 410,261 | 2.5 | % | |||||||||||||
Escalation & reimbursement revenues | 27,952 | 26,343 | 6.1 | % | 27,257 | 55,209 | 52,840 | 4.5 | % | ||||||||||||||||||
Other income | 4,541 | 5,116 | (11.2 | )% | 595 | 5,137 | 9,018 | (43.0 | )% | ||||||||||||||||||
Total Revenues | $ | 244,649 | $ | 237,077 | 3.2 | % | $ | 236,394 | $ | 481,044 | $ | 472,119 | 1.9 | % | |||||||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 51,461 | $ | 49,994 | 2.9 | % | $ | 51,752 | $ | 103,212 | $ | 102,524 | 0.7 | % | |||||||||||||
Operating lease rent | 8,298 | 8,308 | (0.1 | )% | 8,298 | 16,596 | 16,616 | (0.1 | )% | ||||||||||||||||||
Real estate taxes | 46,078 | 44,257 | 4.1 | % | 46,073 | 92,151 | 88,160 | 4.5 | % | ||||||||||||||||||
$ | 105,837 | $ | 102,559 | 3.2 | % | $ | 106,123 | $ | 211,959 | $ | 207,300 | 2.2 | % | ||||||||||||||
Operating Income | $ | 138,812 | $ | 134,518 | 3.2 | % | $ | 130,271 | $ | 269,085 | $ | 264,819 | 1.6 | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 18,507 | $ | 27,340 | (32.3 | )% | $ | 18,394 | $ | 36,901 | $ | 54,330 | (32.1 | )% | |||||||||||||
Depreciation & amortization | 62,032 | 62,078 | (0.1 | )% | 61,261 | 123,293 | 123,704 | (0.3 | )% | ||||||||||||||||||
Income before noncontrolling interest | $ | 58,273 | $ | 45,100 | 29.2 | % | $ | 50,616 | $ | 108,891 | $ | 86,785 | 25.5 | % | |||||||||||||
Plus: | Real estate depreciation & amortization | 61,969 | 62,011 | (0.1 | )% | 61,198 | 123,167 | 123,569 | (0.3 | )% | |||||||||||||||||
FFO Contribution | $ | 120,242 | $ | 107,111 | 12.3 | % | $ | 111,814 | $ | 232,058 | $ | 210,354 | 10.3 | % | |||||||||||||
Less: | Non–building revenue | 196 | 4,747 | (95.9 | )% | 83 | 278 | 4,860 | (94.3 | )% | |||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 18,507 | 27,340 | (32.3 | )% | 18,394 | 36,901 | 54,330 | (32.1 | )% | |||||||||||||||||
Non-real estate depreciation | 63 | 67 | (6.0 | )% | 63 | 126 | 135 | (6.7 | )% | ||||||||||||||||||
NOI | $ | 138,616 | $ | 129,771 | 6.8 | % | $ | 130,188 | $ | 268,807 | $ | 259,959 | 3.4 | % | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Less: | Free rent (net of amortization) | $ | 6,078 | $ | 4,195 | 44.9 | % | $ | 5,623 | $ | 11,700 | $ | 9,854 | 18.7 | % | ||||||||||||
Straight-line revenue adjustment | (2,574 | ) | (3,757 | ) | (31.5 | )% | (2,673 | ) | (5,246 | ) | (7,356 | ) | (28.7 | )% | |||||||||||||
Amortization of acquired above and below-market leases, net | 922 | 1,238 | (25.5 | )% | 946 | 1,868 | 2,921 | (36.0 | )% | ||||||||||||||||||
Plus: | Operating lease straight-line adjustment | 514 | 524 | (1.9 | )% | 514 | 1,028 | 1,048 | (1.9 | )% | |||||||||||||||||
Straight-line tenant credit loss | 17 | (1,044 | ) | (101.6 | )% | 2,874 | 2,891 | (1,082 | ) | (367.2 | )% | ||||||||||||||||
Cash NOI | $ | 134,721 | $ | 127,575 | 5.6 | % | $ | 129,680 | $ | 264,404 | $ | 254,506 | 3.9 | % | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 56.7 | % | 55.9 | % | 55.1 | % | 55.9 | % | 55.6 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 55.1 | % | 54.9 | % | 54.9 | % | 55.0 | % | 54.5 | % | |||||||||||||||||
NOI before operating lease rent/real estate revenue, net | 60.1 | % | 59.4 | % | 58.6 | % | 59.4 | % | 59.2 | % | |||||||||||||||||
Cash NOI before operating lease rent/real estate revenue, net | 58.3 | % | 58.3 | % | 58.2 | % | 58.2 | % | 57.8 | % | |||||||||||||||||
Supplemental Information | 20 | Second Quarter 2019 |
| ||
SELECTED FINANCIAL DATA 2019 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, | |||||||||||||||||||||||
2019 | 2018 | % | 2019 | 2019 | 2018 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 98,562 | $ | 100,706 | (2.1 | )% | $ | 99,544 | $ | 198,106 | $ | 199,412 | (0.7 | )% | |||||||||||||
Escalation & reimbursement revenues | 16,302 | 17,008 | (4.2 | )% | 17,516 | 33,818 | 34,514 | (2.0 | )% | ||||||||||||||||||
Other income | 1,105 | 197 | 460.9 | % | 565 | 1,670 | 696 | 139.9 | % | ||||||||||||||||||
Total Revenues | $ | 115,969 | $ | 117,911 | (1.6 | )% | $ | 117,625 | $ | 233,594 | $ | 234,622 | (0.4 | )% | |||||||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 19,224 | $ | 19,064 | 0.8 | % | $ | 20,813 | $ | 40,038 | $ | 40,474 | (1.1 | )% | |||||||||||||
Operating lease rent | 1,937 | 1,952 | — | % | 1,921 | 3,859 | 3,871 | — | % | ||||||||||||||||||
Real estate taxes | 21,086 | 21,344 | (1.2 | )% | 21,090 | 42,176 | 42,706 | (1.2 | )% | ||||||||||||||||||
$ | 42,247 | $ | 42,360 | (0.3 | )% | $ | 43,824 | $ | 86,073 | $ | 87,051 | (1.1 | )% | ||||||||||||||
Operating Income | $ | 73,722 | $ | 75,551 | (2.4 | )% | $ | 73,801 | $ | 147,521 | $ | 147,571 | — | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 34,783 | $ | 33,405 | 4.1 | % | $ | 35,000 | $ | 69,783 | $ | 65,489 | 6.6 | % | |||||||||||||
Depreciation & amortization | 42,174 | 42,489 | (0.7 | )% | 41,221 | 83,395 | 83,358 | — | % | ||||||||||||||||||
Loss before noncontrolling interest | $ | (3,235 | ) | $ | (343 | ) | 843.1 | % | $ | (2,420 | ) | $ | (5,657 | ) | $ | (1,276 | ) | 343.3 | % | ||||||||
Plus: | Real estate depreciation & amortization | 42,117 | 42,433 | (0.7 | )% | 41,164 | 83,282 | 83,246 | — | % | |||||||||||||||||
FFO Contribution | $ | 38,882 | $ | 42,090 | (7.6 | )% | $ | 38,744 | $ | 77,625 | $ | 81,970 | (5.3 | )% | |||||||||||||
Less: | Non–building revenue | 649 | 152 | 327.0 | % | 206 | 855 | 345 | 147.8 | % | |||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 34,783 | 33,405 | 4.1 | % | 35,000 | 69,783 | 65,489 | 6.6 | % | |||||||||||||||||
Non-real estate depreciation | 57 | 56 | — | % | 57 | 113 | 112 | 0.9 | % | ||||||||||||||||||
NOI | $ | 73,073 | $ | 75,399 | (3.1 | )% | $ | 73,595 | $ | 146,666 | $ | 147,226 | (0.4 | )% | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Less: | Free rent (net of amortization) | $ | 9,815 | $ | (992 | ) | (1,089.4 | )% | $ | 10,510 | $ | 20,325 | $ | (403 | ) | (5,143.4 | )% | ||||||||||
Straight-line revenue adjustment | 4,827 | 5,964 | (19.1 | )% | 5,173 | 10,000 | 11,502 | (13.1 | )% | ||||||||||||||||||
Amortization of acquired above and below-market leases, net | 4,248 | 3,815 | 11.3 | % | 4,262 | 8,510 | 7,550 | 12.7 | % | ||||||||||||||||||
Plus: | Operating lease straight-line adjustment | 208 | 258 | — | % | 258 | 465 | 516 | — | % | |||||||||||||||||
Straight-line tenant credit loss | 1 | — | — | % | 298 | 298 | — | — | % | ||||||||||||||||||
Cash NOI | $ | 54,392 | $ | 66,870 | (18.7 | )% | $ | 54,206 | $ | 108,594 | $ | 129,093 | (15.9 | )% | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 63.4 | % | 64.0 | % | 62.7 | % | 63.0 | % | 62.8 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 47.2 | % | 56.8 | % | 46.2 | % | 46.7 | % | 55.1 | % | |||||||||||||||||
NOI before operating lease rent/real estate revenue, net | 65.0 | % | 65.7 | % | 64.3 | % | 64.7 | % | 64.5 | % | |||||||||||||||||
Cash NOI before operating lease rent/real estate revenue, net | 48.7 | % | 58.2 | % | 47.6 | % | 48.1 | % | 56.5 | % | |||||||||||||||||
Supplemental Information | 21 | Second Quarter 2019 |
| ||
SELECTED FINANCIAL DATA 2019 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, | |||||||||||||||||||||||
2019 | 2018 | % | 2019 | 2019 | 2018 | % | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Rental revenue, net | $ | 212,156 | $ | 205,618 | 3.2 | % | $ | 208,542 | $ | 420,698 | $ | 410,261 | 2.5 | % | |||||||||||||
Escalation & reimbursement revenues | 27,952 | 26,343 | 6.1 | % | 27,257 | 55,209 | 52,840 | 4.5 | % | ||||||||||||||||||
Other income | 4,541 | 5,116 | (11.2 | )% | 595 | 5,137 | 9,018 | (43.0 | )% | ||||||||||||||||||
Total Revenues | $ | 244,649 | $ | 237,077 | 3.2 | % | $ | 236,394 | $ | 481,044 | $ | 472,119 | 1.9 | % | |||||||||||||
Equity in Net Loss from Unconsolidated Joint Ventures (1) | $ | (3,235 | ) | $ | (343 | ) | 843.1 | % | $ | (2,420 | ) | $ | (5,657 | ) | $ | (1,276 | ) | 343.3 | % | ||||||||
Expenses | |||||||||||||||||||||||||||
Operating expenses | $ | 51,461 | $ | 49,994 | 2.9 | % | $ | 51,752 | $ | 103,212 | $ | 102,524 | 0.7 | % | |||||||||||||
Operating lease rent | 8,298 | 8,308 | (0.1 | )% | 8,298 | 16,596 | 16,616 | (0.1 | )% | ||||||||||||||||||
Real estate taxes | 46,078 | 44,257 | 4.1 | % | 46,073 | 92,151 | 88,160 | 4.5 | % | ||||||||||||||||||
$ | 105,837 | $ | 102,559 | 3.2 | % | $ | 106,123 | $ | 211,959 | $ | 207,300 | 2.2 | % | ||||||||||||||
Operating Income | $ | 135,577 | $ | 134,175 | 1.0 | % | $ | 127,851 | $ | 263,428 | $ | 263,543 | — | % | |||||||||||||
Interest expense & amortization of financing costs | $ | 18,507 | $ | 27,340 | (32.3 | )% | $ | 18,394 | $ | 36,901 | $ | 54,330 | (32.1 | )% | |||||||||||||
Depreciation & amortization | 62,032 | 62,078 | (0.1 | )% | 61,261 | 123,293 | 123,704 | (0.3 | )% | ||||||||||||||||||
Income before noncontrolling interest | $ | 55,038 | $ | 44,757 | 23.0 | % | $ | 48,196 | $ | 103,234 | $ | 85,509 | 20.7 | % | |||||||||||||
Plus: | Real estate depreciation & amortization | 61,969 | 62,011 | (0.1 | )% | 61,198 | 123,167 | 123,569 | (0.3 | )% | |||||||||||||||||
Joint Ventures Real estate depreciation & amortization (1) | 42,117 | 42,433 | (0.7 | )% | 41,164 | 83,282 | $ | 83,246 | — | % | |||||||||||||||||
FFO Contribution | $ | 159,124 | $ | 149,201 | 6.7 | % | $ | 150,558 | $ | 309,683 | $ | 292,324 | 5.9 | % | |||||||||||||
Less: | Non–building revenue | $ | 196 | $ | 4,747 | (95.9 | )% | $ | 83 | $ | 278 | $ | 4,860 | (94.3 | )% | ||||||||||||
Joint Ventures Non–building revenue (1) | 649 | 152 | 327.0 | % | 206 | 855 | 345 | 147.8 | % | ||||||||||||||||||
Plus: | Interest expense & amortization of financing costs | 18,507 | 27,340 | (32.3 | )% | 18,394 | 36,901 | 54,330 | (32.1 | )% | |||||||||||||||||
Joint Ventures Interest expense & amortization of financing costs (1) | 34,783 | 33,405 | 4.1 | % | 35,000 | 69,783 | 65,489 | 6.6 | % | ||||||||||||||||||
Non-real estate depreciation | 63 | 67 | (6.0 | )% | 63 | 126 | 135 | (6.7 | )% | ||||||||||||||||||
Joint Ventures Non-real estate depreciation (1) | 57 | 56 | 1.8 | % | 57 | 113 | 112 | 0.9 | % | ||||||||||||||||||
NOI | $ | 211,689 | $ | 205,170 | 3.2 | % | $ | 203,783 | $ | 415,473 | $ | 407,185 | 2.0 | % | |||||||||||||
Cash Adjustments | |||||||||||||||||||||||||||
Non-cash adjustments | $ | (3,895 | ) | $ | (2,196 | ) | 77.4 | % | $ | (508 | ) | $ | (4,403 | ) | $ | (5,453 | ) | (19.3 | )% | ||||||||
Joint Venture non-cash adjustments (1) | (18,681 | ) | (8,529 | ) | 119.0 | % | (19,389 | ) | (38,072 | ) | (18,133 | ) | 110.0 | % | |||||||||||||
Cash NOI | $ | 189,113 | $ | 194,445 | (2.7 | )% | $ | 183,886 | $ | 372,998 | $ | 383,599 | (2.8 | )% | |||||||||||||
Operating Margins | |||||||||||||||||||||||||||
NOI to real estate revenue, net | 58.8 | % | 58.6 | % | 57.6 | % | 58.2 | % | 58.0 | % | |||||||||||||||||
Cash NOI to real estate revenue, net | 52.6 | % | 55.5 | % | 52.0 | % | 52.3 | % | 54.7 | % | |||||||||||||||||
NOI before operating lease rent/real estate revenue, net | 61.7 | % | 61.5 | % | 60.5 | % | 61.1 | % | 61.0 | % | |||||||||||||||||
Cash NOI before operating lease rent/real estate revenue, net | 55.2 | % | 58.2 | % | 54.7 | % | 54.9 | % | 57.4 | % | |||||||||||||||||
(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 2019 |
| ||
DEBT SUMMARY SCHEDULE Consolidated Unaudited (Dollars in Thousands) | | |
| ||
Principal | 2019 | Initial | Principal | As-Of | ||||||||||||||||||||||
Ownership | Outstanding | Principal | Maturity | Due at | Right | Earliest | ||||||||||||||||||||
Fixed rate debt | Interest (%) | 6/30/2019 | Coupon (1) | Amortization | Date | Maturity | Extension | Prepayment (2) | ||||||||||||||||||
Secured fixed rate debt | ||||||||||||||||||||||||||
762 Madison Avenue | 90.0 | $ | 771 | 5.00% | — | Feb-22 | 771 | — | Open | |||||||||||||||||
100 Church Street | 100.0 | 211,429 | 4.68% | 3,885 | Jul-22 | 197,784 | — | Apr-22 | ||||||||||||||||||
420 Lexington Avenue | 100.0 | 300,000 | 3.99% | 835 | Oct-24 | 272,749 | — | Jul-24 | ||||||||||||||||||
400 East 58th Street | 90.0 | 39,516 | 3.00% | 837 | 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 | 35,466 | 3.59% | 684 | Feb-27 | 29,527 | — | Open | ||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | 250,000 | 4.17% | — | Feb-27 | 250,000 | — | Open | ||||||||||||||||||
$ | 1,387,182 | 4.24% | $ | 6,241 | $ | 1,334,671 | ||||||||||||||||||||
Unsecured fixed rate debt | ||||||||||||||||||||||||||
Unsecured notes | $ | 250,000 | 7.75% | $ | — | Mar-20 | $ | 250,000 | — | Open | ||||||||||||||||
Unsecured notes | 499,642 | 3.25% | — | Oct-22 | 500,000 | — | Open | |||||||||||||||||||
Unsecured notes | 303,663 | 4.50% | — | Dec-22 | 300,000 | — | Open | |||||||||||||||||||
Term loan (swapped) | 1,000,000 | 3.19% | (3) | — | Mar-23 | (3) | 1,000,000 | — | Open | |||||||||||||||||
Unsecured notes | 100,000 | 4.27% | — | Dec-25 | 100,000 | — | Open | |||||||||||||||||||
$ | 2,153,305 | 3.97% | $ | — | $ | 2,150,000 | ||||||||||||||||||||
Total Fixed Rate Debt | $ | 3,540,487 | 4.07% | $ | 6,241 | $ | 3,484,671 | |||||||||||||||||||
Floating rate debt | ||||||||||||||||||||||||||
Secured floating rate debt | ||||||||||||||||||||||||||
Debt & preferred equity facility (LIBOR + 232 bps) | $ | 282,132 | 4.72% | (4) | — | Jun-20 | 282,132 | — | Open | |||||||||||||||||
FHLB Facility (LIBOR + 20.5 bps) | 13,000 | 2.60% | — | Aug-19 | 13,000 | — | Open | |||||||||||||||||||
FHLB Facility (LIBOR + 18 bps) | 14,500 | 2.58% | — | Dec-19 | 14,500 | — | Open | |||||||||||||||||||
FHLB Facility (LIBOR + 26 bps) | 10,000 | 2.66% | — | Jan-20 | 10,000 | — | Open | |||||||||||||||||||
133 Greene Street (LIBOR + 200 bps) | 100.0 | 15,523 | 4.40% | — | Aug-20 | 15,523 | — | Open | ||||||||||||||||||
106 Spring Street (LIBOR + 250 bps) | 100.0 | 38,025 | 4.90% | — | Jan-21 | 38,025 | — | Open | ||||||||||||||||||
609 Fifth Avenue (LIBOR + 240 bps) | 100.0 | 51,185 | 4.80% | — | Mar-21 | 51,185 | Mar-22 | Open | ||||||||||||||||||
185 Broadway (LIBOR + 285 bps) | 100.0 | 111,869 | 5.25% | — | Nov-21 | 111,869 | — | Open | ||||||||||||||||||
712 Madison Avenue (LIBOR + 250 bps) | 100.0 | 28,000 | 4.90% | — | Dec-21 | 28,000 | — | Open | ||||||||||||||||||
460 West 34th Street (LIBOR + 222.5 bps) | 70.9 | 299,941 | 4.62% | — | May-22 | 299,941 | — | Open | ||||||||||||||||||
115 Spring Street (LIBOR + 340 bps) | 100.0 | 65,550 | 5.80% | — | Sep-23 | 65,550 | — | Open | ||||||||||||||||||
719 Seventh Avenue (LIBOR + 120 bps) | 75.0 | 50,000 | 3.60% | — | Sep-23 | 50,000 | — | Open | ||||||||||||||||||
$ | 979,725 | 4.69% | $ | — | $ | 979,725 | ||||||||||||||||||||
Unsecured floating rate debt | ||||||||||||||||||||||||||
Unsecured notes (3mo. LIBOR + 98 bps) | $ | 350,000 | 3.30% | $ | — | Aug-21 | $ | 350,000 | — | Aug-19 | ||||||||||||||||
Revolving credit facility (LIBOR + 100 bps) | 670,000 | 3.40% | — | Mar-22 | 790,000 | Mar-23 | Open | |||||||||||||||||||
Term loan (LIBOR + 110 bps) | 300,000 | 3.50% | — | Mar-23 | 300,000 | — | Open | |||||||||||||||||||
Term loan (LIBOR + 165 bps) | 200,000 | 4.05% | (5) | — | Nov-24 | 200,000 | — | Open | ||||||||||||||||||
Junior subordinated deferrable interest debentures (3mo. LIBOR + 125 bps) | 100,000 | 3.57% | — | Jul-35 | 100,000 | — | Open | |||||||||||||||||||
$ | 1,620,000 | 3.49% | $ | — | $ | 1,740,000 | ||||||||||||||||||||
Total Floating Rate Debt | $ | 2,599,725 | 3.94% | $ | — | $ | 2,719,725 | |||||||||||||||||||
Total Debt - Consolidated | $ | 6,140,212 | 4.02% | $ | 6,241 | $ | 6,204,396 | |||||||||||||||||||
Deferred financing costs | (57,423 | ) | ||||||||||||||||||||||||
Total Debt - Consolidated, net | $ | 6,082,789 | 4.02% | |||||||||||||||||||||||
Total Debt - Joint Venture, net | $ | 3,749,889 | 4.22% | |||||||||||||||||||||||
Total Debt including SLG share of unconsolidated JV Debt | $ | 9,940,109 | 4.09% | |||||||||||||||||||||||
Weighted Average Balance & Interest Rate for the quarter, including SLG share of JV Debt | $ | 9,940,052 | 4.13% | |||||||||||||||||||||||
(1) Coupon for floating rate debt determined using the effective 1-month LIBOR rate at the end of the quarter of 2.40% or the 3-month LIBOR rate at the end of the quarter of 2.32%. 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) Represents a blended fixed rate inclusive of the effect of the following swaps: $200 million @ 1.93% maturing November 2020, $200 million @ 1.13% and $100 million @ 1.16% maturing July 2023, $150 million @ 2.70% maturing January 2024, $200 million @ 2.74% and $150 million @ 2.72% maturing January 2026. | ||||||||||||||||||||||||||
(4) The debt and preferred equity facility bears interest on a floating rate basis at a spread to 1-month LIBOR based on the pledged collateral and advance rate. | ||||||||||||||||||||||||||
(5) Entered into an agreement to reduce the interest rate spread by 65 basis points to LIBOR + 100 bps. This reduction will be effective in November 2019. | ||||||||||||||||||||||||||
Supplemental Information | 23 | Second Quarter 2019 |
| ||
DEBT SUMMARY SCHEDULE Unconsolidated JVs Unaudited (Dollars in Thousands) | | |
| ||
Principal Outstanding | 2019 | Initial | Principal | As-Of | |||||||||||||||||||||||||
Ownership | 6/30/19 | 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) | ||||||||||||||||||||
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 | ||||||||||||||||||||
1515 Broadway | 56.9 | 847,250 | 481,823 | 3.93% | 9,855 | 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 | 98,790 | 40,504 | 3.00% | 858 | 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 | 196,112 | (3) | 11,289 | 3.50% | — | Various | (3) | 10,373 | — | Open | ||||||||||||||||||
Total Fixed Rate Debt | $ | 5,361,480 | $ | 2,240,846 | 4.07% | (4) | $ | 10,713 | $ | 2,172,864 | |||||||||||||||||||
Floating rate debt | |||||||||||||||||||||||||||||
280 Park Avenue (LIBOR + 173 bps) | 50.0 | $ | 1,200,000 | $ | 600,000 | 4.13% | $ | — | Sep-19 | $ | 600,000 | Sep-24 | Open | ||||||||||||||||
121 Greene Street (LIBOR + 150 bps) | 50.0 | 15,000 | 7,500 | 3.90% | — | Nov-19 | 7,500 | — | Open | ||||||||||||||||||||
10 East 53rd Street (LIBOR + 225 bps) | 55.0 | 170,000 | 93,500 | 4.65% | — | Feb-20 | 93,500 | — | Open | ||||||||||||||||||||
1552 Broadway (LIBOR + 265 bps) | 50.0 | 195,000 | 97,500 | 5.05% | — | Oct-20 | 97,500 | — | Open | ||||||||||||||||||||
55 West 46th Street - Tower 46 (LIBOR + 212.5 bps) | 25.0 | 190,718 | 47,680 | 4.52% | — | Nov-20 | 47,680 | — | Open | ||||||||||||||||||||
11 West 34th Street (LIBOR + 145 bps) | 30.0 | 23,000 | 6,900 | 3.85% | — | Jan-21 | 6,900 | Jan-23 | Open | ||||||||||||||||||||
100 Park Avenue (LIBOR + 175 bps) | 49.9 | 358,809 | 179,046 | 4.15% | 1,512 | Feb-21 | 175,858 | — | Open | ||||||||||||||||||||
One Vanderbilt (LIBOR + 275 bps) | 71.0 | 478,708 | 339,930 | 5.15% | — | Sep-21 | 339,930 | — | Open | ||||||||||||||||||||
2 Herald Square (LIBOR + 155 bps) | 51.0 | 150,000 | 76,500 | 3.95% | — | Nov-21 | 76,500 | — | Open | ||||||||||||||||||||
605 West 42nd Street - Sky (LIBOR + 144 bps) | 20.0 | 550,000 | 110,000 | 3.84% | — | Aug-27 | 110,000 | — | Open | ||||||||||||||||||||
21 East 66th Street (T 12 mos + 275 bps) | 32.3 | 1,534 | 495 | 4.67% | 28 | Jun-33 | 4 | — | Open | ||||||||||||||||||||
Total Floating Rate Debt | $ | 3,332,769 | $ | 1,559,051 | 4.42% | (4) | $ | 1,540 | $ | 1,555,372 | |||||||||||||||||||
Total unconsolidated JV Debt | $ | 8,694,249 | $ | 3,799,897 | 4.22% | (4) | $ | 12,253 | $ | 3,728,236 | |||||||||||||||||||
Deferred financing costs | (102,858 | ) | (50,008 | ) | |||||||||||||||||||||||||
Total unconsolidated JV Debt, net | $ | 8,591,391 | $ | 3,749,889 | 4.22% | ||||||||||||||||||||||||
(1) Coupon for floating rate debt determined using the effective 1-month LIBOR rate at the end of the quarter of 2.40%. 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 $132.6 million and $63.5 million in fixed-rate mortgages that mature in April 2028 and July 2029, respectively. | |||||||||||||||||||||||||||||
(4) The weighted average coupon is calculated based on SL Green's share of the outstanding debt. | |||||||||||||||||||||||||||||
SL GREEN REALTY CORP. | Composition of Debt | ||||||||||||||||||||||||||||
Revolving Credit Facility Covenants | Fixed Rate Debt | ||||||||||||||||||||||||||||
Actual | Required | Consolidated | $ | 3,540,487 | |||||||||||||||||||||||||
Total Debt / Total Assets | 39.5% | Less than 60% | SLG Share of JV | 2,240,846 | |||||||||||||||||||||||||
Fixed Charge Coverage | 2.44x | Greater than 1.4x | Total Fixed Rate Debt | $ | 5,781,333 | 58.2% | |||||||||||||||||||||||
Maximum Secured Indebtedness | 15.6% | Less than 50% | |||||||||||||||||||||||||||
Maximum Unencumbered Leverage Ratio | 43.0% | Less than 60% | Floating Rate Debt | ||||||||||||||||||||||||||
Consolidated | $ | 2,599,725 | |||||||||||||||||||||||||||
Unsecured Notes Covenants | SLG Share of JV | 1,559,051 | |||||||||||||||||||||||||||
Actual | Required | 4,158,776 | |||||||||||||||||||||||||||
Total Debt / Total Assets | 40.4% | Less than 60% | Debt & Preferred Equity and Other Investments | (1,303,224 | ) | ||||||||||||||||||||||||
Secured Debt / Total Assets | 22.4% | Less than 40% | Total Floating Rate Debt | $ | 2,855,552 | 28.7% | |||||||||||||||||||||||
Debt Service Coverage | 2.81x | Greater than 1.5x | |||||||||||||||||||||||||||
Unencumbered Assets / Unsecured Debt | 271.8% | Greater than 150% | Total Debt | $ | 9,940,109 | ||||||||||||||||||||||||
Supplemental Information | 24 | Second Quarter 2019 |
| ||
SUMMARY OF GROUND LEASE ARRANGEMENTS Unaudited (Dollars in Thousands) | | |
| ||
2019 Scheduled | 2020 Scheduled | 2021 Scheduled | 2022 Scheduled | Lease | Year of Final | ||||||||||||||||||||||||
Property | Cash Payment | Cash Payment | Cash Payment | Cash Payment | Liabilities (1) | Expiration (2) | |||||||||||||||||||||||
Consolidated Ground Lease Arrangements | |||||||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||||||
1185 Avenue of the Americas | $ | 6,909 | $ | 6,909 | $ | 6,909 | $ | 6,909 | $ | 96,756 | 2043 | ||||||||||||||||||
625 Madison Avenue | 4,613 | 4,613 | 4,613 | 2,306 | (3) | 13,056 | 2054 | ||||||||||||||||||||||
420 Lexington Avenue | 10,899 | 11,174 | 11,199 | 11,199 | 181,899 | 2080 | |||||||||||||||||||||||
711 Third Avenue | 5,500 | 5,500 | 5,500 | 5,500 | 57,016 | 2083 | (4) | ||||||||||||||||||||||
461 Fifth Avenue | 2,100 | 2,100 | 2,250 | 2,400 | 15,692 | 2084 | (5) | ||||||||||||||||||||||
1055 Washington Blvd, Stamford | 615 | 615 | 615 | 615 | 10,095 | 2090 | |||||||||||||||||||||||
1080 Amsterdam Avenue | 226 | 314 | 314 | 314 | 7,169 | 2111 | |||||||||||||||||||||||
30 East 40th Street | 204 | 212 | 229 | 229 | 5,276 | 2114 | |||||||||||||||||||||||
Other | 41 | 71 | 73 | 76 | 643 | Various | |||||||||||||||||||||||
Total | $ | 31,107 | $ | 31,508 | $ | 31,702 | $ | 29,548 | $ | 387,602 | |||||||||||||||||||
Financing Leases | |||||||||||||||||||||||||||||
1080 Amsterdam Avenue | $ | 315 | $ | 436 | $ | 436 | $ | 436 | $ | 22,228 | 2111 | ||||||||||||||||||
30 East 40th Street | 2,096 | 2,183 | 2,358 | 2,358 | 21,806 | 2114 | |||||||||||||||||||||||
Total | $ | 2,411 | $ | 2,619 | $ | 2,794 | $ | 2,794 | $ | 44,034 | |||||||||||||||||||
Unconsolidated Joint Venture Ground Lease Arrangements (SLG Share) | |||||||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||||||
650 Fifth Avenue (Floors 4-6) | $ | 1,645 | $ | 1,645 | $ | 1,659 | $ | 1,790 | $ | 18,977 | 2053 | ||||||||||||||||||
650 Fifth Avenue (Floors b-3) | 1,284 | 1,284 | 1,284 | 1,283 | 27,354 | 2062 | |||||||||||||||||||||||
1560 Broadway | 6,491 | 6,811 | 6,861 | 6,861 | 77,462 | 2114 | |||||||||||||||||||||||
333 East 22nd Street | 217 | 217 | 222 | 238 | 5,223 | 2115 | |||||||||||||||||||||||
Total | $ | 9,637 | $ | 9,957 | $ | 10,026 | $ | 10,172 | $ | 129,016 | |||||||||||||||||||
Financing Leases | |||||||||||||||||||||||||||||
650 Fifth Avenue (Floors b-3) | $ | 6,695 | $ | 6,695 | $ | 6,695 | $ | 6,695 | $ | 96,757 | 2062 | ||||||||||||||||||
2 Herald Square | 6,795 | 6,943 | 7,107 | 7,285 | 226,355 | 2077 | (5) | ||||||||||||||||||||||
Total | $ | 13,490 | $ | 13,638 | $ | 13,802 | $ | 13,980 | $ | 323,112 | |||||||||||||||||||
(1) Per the balance sheet at June 30, 2019. | |||||||||||||||||||||||||||||
(2) Reflects exercise of all available renewal options. | |||||||||||||||||||||||||||||
(3) Reflects known cash payments through ground rent reset date. | |||||||||||||||||||||||||||||
(4) Reflects 50% of the annual ground rent payment as the Company owns 50% of the fee interest. | |||||||||||||||||||||||||||||
(5) The Company has an option to purchase the ground lease for a fixed price on a specific date. | |||||||||||||||||||||||||||||
Supplemental Information | 25 | Second Quarter 2019 |
| ||
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) | |||||||||||||||||
6/30/2018 | $ | 2,168,515 | $ | 2,211,777 | 8.80% | 8.84% | ||||||||||||||
Debt investment originations/fundings/accretion(4) | 53,275 | |||||||||||||||||||
Preferred Equity investment originations/accretion(4) | 2,128 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (246,861 | ) | ||||||||||||||||||
9/30/2018 | $ | 1,977,057 | $ | 2,072,310 | 8.70% | 8.68% | ||||||||||||||
Debt investment originations/fundings/accretion(4) | 171,832 | |||||||||||||||||||
Preferred Equity investment originations/accretion(4) | 145,399 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (194,895 | ) | ||||||||||||||||||
12/31/2018 | $ | 2,099,393 | $ | 2,053,913 | 8.88% | 9.01% | ||||||||||||||
Debt investment originations/fundings/accretion(4) | 436,819 | |||||||||||||||||||
Preferred Equity investment originations/accretion(4) | 3,416 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (267,387 | ) | ||||||||||||||||||
3/31/2019 | $ | 2,272,241 | $ | 2,239,180 | 8.76% | 8.78% | ||||||||||||||
Debt investment originations/fundings/accretion(4) | 98,878 | |||||||||||||||||||
Preferred Equity investment originations/accretion(4) | 3,807 | |||||||||||||||||||
Redemptions/Sales/Syndications/Amortization | (146,014 | ) | ||||||||||||||||||
6/30/2019 | $ | 2,228,912 | (5) | $ | 2,216,132 | 8.99% | 9.05% | |||||||||||||
(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) Includes funded future funding obligations, amortization of fees and discounts and paid-in-kind investment income. | ||||||||||||||||||||
(5) Excludes debt and preferred equity investments totaling $34.5 million with a weighted average current yield of 6.57% that are included in other balance sheet line items. | ||||||||||||||||||||
Supplemental Information | 26 | Second Quarter 2019 |
| ||
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 | $ | 644,322 | $ | 853 | $ | 645,175 | $ | — | $ | 557 | 7.67% | 7.61% | ||||||||||||||||||||
Junior Mortgage Participation | 87,113 | — | 87,113 | 339,507 | $ | 2,786 | 11.74% | 11.67% | ||||||||||||||||||||||||
Mezzanine Debt | 571,789 | 685,715 | 1,257,504 | 6,514,413 | $ | 913 | 9.46% | 9.53% | ||||||||||||||||||||||||
Preferred Equity | — | 239,120 | 239,120 | 272,000 | $ | 810 | 9.46% | 9.51% | ||||||||||||||||||||||||
Balance as of 6/30/19 | $ | 1,303,224 | $ | 925,688 | $ | 2,228,912 | (3) | $ | 7,125,920 | $ | 872 | 8.99% | 9.05% | |||||||||||||||||||
(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) Net of unamortized fees, discounts, and premiums. Excludes debt and preferred equity investments totaling $34.5 million with a weighted average current yield of 6.57% that are included in other balance sheet line items. | ||||||||||||||||||||||||||||||||
Debt and Preferred Equity Principal Maturity Profile (1) | |||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 & Thereafter | |||||||||
Floating Rate | 320,436 | 598,615 | 384,173 | — | — | ||||||||
Fixed Rate | — | 416,400 | 3,500 | 208,575 | 297,213 | ||||||||
Sub-total | 320,436 | 1,015,015 | 387,673 | 208,575 | 297,213 | ||||||||
(1) The weighted average maturity of the outstanding balance is 1.69 years. Approximately 62.6% 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 2.83 years. | |||||||||||||
Supplemental Information | 27 | Second Quarter 2019 |
| ||
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 | 6/30/2019 | Type | Location | Financing | Last $ PSF (2) | Of Quarter (3) | |||||||||||||||
Mezzanine Loan | $ | 217,891 | Office | Manhattan | $ | 1,160,000 | $ | 1,200 | 9.33% | ||||||||||||
Mezzanine Loan | 206,572 | Fee | Manhattan | 319,551 | $ | 902 | 8.58% | ||||||||||||||
Mortgage and Mezzanine Loans | 193,664 | Residential | Manhattan | — | $ | 829 | 7.48% | ||||||||||||||
Mezzanine Loan and Preferred Equity | 150,990 | Office | Manhattan | 1,768,000 | $ | 1,044 | 11.03% | ||||||||||||||
Preferred Equity | 143,380 | Office | Manhattan | 272,000 | $ | 654 | 7.05% | ||||||||||||||
Mortgage and Mezzanine Loans | 119,963 | Residential | Manhattan | — | $ | 1,320 | 9.08% | ||||||||||||||
Mortgage and Mezzanine Loans | 106,579 | Office | Manhattan | — | $ | 493 | 6.24% | ||||||||||||||
Mezzanine Loan | 95,360 | Office | Manhattan | 388,264 | $ | 85 | 12.83% | ||||||||||||||
Mezzanine Loan | 94,677 | Multi-Family Rental | Manhattan | 579,997 | $ | 947 | 9.97% | ||||||||||||||
Mortgage Loan | 92,237 | Office | Manhattan | — | $ | 303 | 5.57% | ||||||||||||||
Total | $ | 1,421,313 | $ | 4,487,812 | 8.70% | ||||||||||||||||
(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 | 28 | Second Quarter 2019 |
| ||
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-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | 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 | 93.9 | 94.9 | 94.3 | 92.9 | 91.6 | $5,126 | 0.2 | 56 | |||||||||||||||||||
100 Church Street | 100.0 | Downtown | Fee Interest | 1 | 1,047,500 | 4.0 | 99.3 | 99.6 | 99.6 | 99.6 | 98.8 | 47,437 | 5.4 | 3.7 | 19 | ||||||||||||||||||
110 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 215,400 | 0.8 | 84.0 | 85.4 | 79.2 | 77.5 | 77.1 | 10,976 | 1.2 | 0.9 | 25 | ||||||||||||||||||
110 Greene Street | 100.0 | Soho | Fee Interest | 1 | 223,600 | 0.9 | 93.3 | 90.3 | 77.3 | 83.0 | 83.5 | 15,490 | 1.8 | 1.2 | 61 | ||||||||||||||||||
125 Park Avenue | 100.0 | Grand Central | Fee Interest | 1 | 604,245 | 2.3 | 95.5 | 94.5 | 99.5 | 99.6 | 99.6 | 43,008 | 4.9 | 3.3 | 27 | ||||||||||||||||||
220 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 1,135,000 | 4.4 | 90.9 | 90.9 | 88.8 | 89.3 | 62.5 | 63,867 | 7.2 | 5.0 | 36 | ||||||||||||||||||
304 Park Avenue South | 100.0 | Midtown South | Fee Interest | 1 | 215,000 | 0.8 | 100.0 | 97.8 | 100.0 | 91.9 | 100.0 | 16,842 | 1.9 | 1.3 | 10 | ||||||||||||||||||
420 Lexington Ave (Graybar) | 100.0 | Grand Central North | Leasehold Interest | 1 | 1,188,000 | 4.6 | 93.0 | 93.1 | 95.7 | 95.4 | 96.8 | 82,120 | 9.3 | 6.4 | 195 | ||||||||||||||||||
461 Fifth Avenue | 100.0 | Midtown | Leasehold Interest (1) | 1 | 200,000 | 0.8 | 82.2 | 79.0 | 79.0 | 79.0 | 79.0 | 15,525 | 1.8 | 1.2 | 11 | ||||||||||||||||||
485 Lexington Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 921,000 | 3.6 | 84.2 | 84.2 | 81.0 | 81.0 | 76.4 | 56,821 | 6.4 | 4.4 | 29 | ||||||||||||||||||
555 West 57th Street | 100.0 | Midtown West | Fee Interest | 1 | 941,000 | 3.6 | 99.9 | 99.9 | 99.9 | 99.9 | 99.9 | 45,019 | 5.1 | 3.5 | 9 | ||||||||||||||||||
625 Madison Avenue | 100.0 | Plaza District | Leasehold Interest | 1 | 563,000 | 2.2 | 97.1 | 98.0 | 98.8 | 98.8 | 98.8 | 57,653 | 6.5 | 4.5 | 23 | ||||||||||||||||||
635 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 104,000 | 0.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 9,800 | 1.1 | 0.8 | 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 | 15,061 | 1.7 | 1.2 | 6 | ||||||||||||||||||
711 Third Avenue | 100.0 (2) | Grand Central North | Leasehold Interest (2) | 1 | 524,000 | 2.0 | 97.0 | 97.0 | 93.7 | 90.3 | 89.3 | 35,462 | 4.0 | 2.8 | 22 | ||||||||||||||||||
750 Third Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 780,000 | 3.0 | 92.7 | 93.3 | 98.0 | 96.5 | 98.9 | 45,940 | 5.2 | 3.6 | 28 | ||||||||||||||||||
810 Seventh Avenue | 100.0 | Times Square | Fee Interest | 1 | 692,000 | 2.7 | 93.8 | 97.6 | 97.6 | 94.2 | 95.8 | 47,810 | 5.4 | 3.7 | 49 | ||||||||||||||||||
1185 Avenue of the Americas | 100.0 | Rockefeller Center | Leasehold Interest | 1 | 1,062,000 | 4.1 | 92.7 | 85.6 | 85.5 | 82.2 | 96.7 | 92,685 | 10.5 | 7.2 | 14 | ||||||||||||||||||
1350 Avenue of the Americas | 100.0 | Rockefeller Center | Fee Interest | 1 | 562,000 | 2.2 | 91.2 | 89.5 | 89.8 | 88.5 | 88.5 | 42,213 | 4.8 | 3.3 | 39 | ||||||||||||||||||
1 Madison Avenue | 100.0 | Park Avenue South | Fee Interest | 1 | 1,176,900 | 4.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 74,941 | 8.5 | 5.8 | 2 | ||||||||||||||||||
Subtotal / Weighted Average | 20 | 12,387,091 | 47.8 | % | 94.2 | % | 93.7 | % | 93.7 | % | 92.8 | % | 91.7 | % | $823,796 | 92.6% | 64.0% | 663 | |||||||||||||||
Total / Weighted Average Consolidated Properties | 20 | 12,387,091 | 47.8 | % | 94.2 | % | 93.7 | % | 93.7 | % | 92.8 | % | 91.7 | % | $823,796 | 92.6% | 64.0% | 663 | |||||||||||||||
UNCONSOLIDATED PROPERTIES | |||||||||||||||||||||||||||||||||
"Same Store" | |||||||||||||||||||||||||||||||||
10 East 53rd Street | 55.0 | Plaza District | Fee Interest | 1 | 354,300 | 1.4 | 95.4 | 95.4 | 83.7 | 83.7 | 83.7 | $33,024 | 1.4 | 40 | |||||||||||||||||||
11 Madison Avenue | 60.0 | Park Avenue South | Fee Interest | 1 | 2,314,000 | 8.9 | 95.7 | 100.0 | 100.0 | 100.0 | 100.0 | 152,401 | 7.1 | 10 | |||||||||||||||||||
100 Park Avenue | 50.0 | Grand Central South | Fee Interest | 1 | 834,000 | 3.2 | 78.6 | 79.0 | 90.0 | 91.2 | 92.0 | 55,255 | 2.2 | 30 | |||||||||||||||||||
280 Park Avenue | 50.0 | Park Avenue | Fee Interest | 1 | 1,219,158 | 4.7 | 91.1 | 89.5 | 89.5 | 92.8 | 92.8 | 117,034 | 4.6 | 38 | |||||||||||||||||||
800 Third Avenue | 60.5 | Grand Central North | Fee Interest | 1 | 526,000 | 2.0 | 91.9 | 93.1 | 93.1 | 92.4 | 96.4 | 36,001 | 1.7 | 43 | |||||||||||||||||||
919 Third Avenue | 51.0 | Grand Central North | Fee Interest | 1 | 1,454,000 | 5.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 98,564 | 3.9 | 9 | |||||||||||||||||||
Added to Same Store in 2019 | |||||||||||||||||||||||||||||||||
55 West 46th Street - Tower 46 | 25.0 | Midtown | Fee Interest | 1 | 347,000 | 1.3 | 86.5 | 73.5 | 72.1 | 62.4 | 58.2 | 25,071 | 0.5 | 14 | |||||||||||||||||||
1515 Broadway | 57.0 | Times Square | Fee Interest | 1 | 1,750,000 | 6.8 | 94.9 | 98.5 | 98.5 | 98.5 | 98.5 | 132,215 | 5.9 | 12 | |||||||||||||||||||
Worldwide Plaza | 24.4 | Westside | Fee Interest | 1 | 2,048,725 | 7.9 | 96.8 | 96.9 | 96.9 | 98.5 | 98.5 | 139,129 | 2.6 | 25 | |||||||||||||||||||
Subtotal / Weighted Average | 9 | 10,847,183 | 41.9 | % | 94.0 | % | 95.0 | % | 95.5 | % | 95.9 | % | 96.0 | % | $788,694 | 29.8% | 221 | ||||||||||||||||
"Non Same Store" | |||||||||||||||||||||||||||||||||
2 Herald Square | 51.0 | Herald Square | Leasehold Interest | 1 | 369,000 | 1.4 | 73.6 | 73.6 | 73.4 | 81.6 | 81.6 | $27,068 | 1.1 | 4 | |||||||||||||||||||
Subtotal / Weighted Average | 1 | 369,000 | 1.4 | % | 73.6 | % | 73.6 | % | 73.4 | % | 81.6 | % | 81.6 | % | $27,068 | 1.1% | 4 | ||||||||||||||||
Total / Weighted Average Unconsolidated Properties | 10 | 11,216,183 | 43.3 | % | 93.4 | % | 94.3 | % | 94.7 | % | 95.4 | % | 95.5 | % | $815,762 | 30.9% | 225 | ||||||||||||||||
Manhattan Operating Properties Grand Total / Weighted Average | 30 | 23,603,274 | 91.1 | % | 93.8 | % | 94.0 | % | 94.2 | % | 94.1 | % | 93.5 | % | $1,639,558 | 888 | |||||||||||||||||
Manhattan Operating Properties Grand Total - SLG share of Annualized Rent | $1,218,855 | 94.9% | |||||||||||||||||||||||||||||||
Manhattan Operating Properties Same Store Occupancy % | 23,234,274 | 98.4 | % | 94.1 | % | 94.3 | % | 94.5 | % | 94.3 | % | 93.7 | % | ||||||||||||||||||||
Manhattan Operating Properties Same Store Leased Occupancy % | 95.2 | % | 95.8 | % | 96.0 | % | 96.1 | % | 96.0 | % | |||||||||||||||||||||||
(1) The Company has an option to acquire the fee interest for a fixed price on a specific date. | |||||||||||||||||||||||||||||||||
(2) The Company owns 50% of the fee interest. | |||||||||||||||||||||||||||||||||
Supplemental Information | 29 | Second Quarter 2019 |
| ||
SELECTED PROPERTY DATA Suburban Operating Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized Cash Rent | Total | |||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Cash Rent ($'s) | 100% | SLG% | Tenants | |||||||||||||||||||
CONSOLIDATED PROPERTIES | ||||||||||||||||||||||||||||||||||
"Same Store" Westchester, New York | ||||||||||||||||||||||||||||||||||
100 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 250,000 | 1.0 | 97.5 | 97.5 | 97.5 | 92.9 | 92.9 | $6,383 | 0.7 | 0.5 | 15 | |||||||||||||||||||
200 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 245,000 | 0.9 | 90.0 | 86.1 | 86.1 | 87.3 | 87.3 | 5,714 | 0.6 | 0.4 | 7 | |||||||||||||||||||
500 Summit Lake Drive | 100.0 | Valhalla, New York | Fee Interest | 1 | 228,000 | 0.9 | 99.9 | 99.9 | 99.9 | 100.0 | 100.0 | 6,295 | 0.7 | 0.5 | 9 | |||||||||||||||||||
360 Hamilton Avenue | 100.0 | White Plains, New York | Fee Interest | 1 | 384,000 | 1.5 | 91.9 | 97.3 | 100.0 | 100.0 | 100.0 | 14,726 | 1.7 | 1.1 | 21 | |||||||||||||||||||
"Same Store" Westchester, New York Subtotal/Weighted Average | 4 | 1,107,000 | 4.3 | % | 94.4 | % | 95.4 | % | 96.3 | % | 95.6 | % | 95.6 | % | $33,118 | 3.7 | % | 2.6 | % | 52 | ||||||||||||||
"Same Store" Connecticut | ||||||||||||||||||||||||||||||||||
1 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 312,000 | 1.2 | 84.3 | 85.9 | 88.4 | 87.7 | 87.4 | $8,956 | 1.0 | 0.7 | 56 | |||||||||||||||||||
2 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 46,000 | 0.2 | 99.5 | 99.5 | 99.5 | 97.0 | 97.0 | 1,181 | 0.1 | 0.1 | 9 | |||||||||||||||||||
3 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 130,000 | 0.5 | 59.2 | 57.8 | 58.0 | 70.9 | 75.4 | 2,713 | 0.3 | 0.2 | 17 | |||||||||||||||||||
4 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 105,000 | 0.4 | 86.4 | 88.0 | 85.3 | 85.3 | 92.4 | 3,144 | 0.4 | 0.2 | 14 | |||||||||||||||||||
5 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 61,000 | 0.2 | 99.3 | 98.6 | 98.6 | 98.6 | 98.6 | 1,020 | 0.1 | 0.1 | 10 | |||||||||||||||||||
6 Landmark Square | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 172,000 | 0.7 | 93.7 | 93.7 | 93.7 | 93.7 | 93.7 | 4,256 | 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 | 766 | 0.1 | 0.1 | 2 | |||||||||||||||||||
1055 Washington Boulevard | 100.0 | Stamford, Connecticut | Leasehold Interest | 1 | 182,000 | 0.7 | 88.5 | 85.5 | 85.5 | 85.5 | 84.7 | 6,057 | 0.7 | 0.5 | 25 | |||||||||||||||||||
1010 Washington Boulevard | 100.0 | Stamford, Connecticut | Fee Interest | 1 | 143,400 | 0.6 | 87.0 | 87.0 | 89.7 | 90.4 | 90.4 | 4,284 | 0.5 | 0.3 | 25 | |||||||||||||||||||
"Same Store" Connecticut Subtotal/Weighted Average | 9 | 1,188,200 | 4.6 | % | 85.9 | % | 85.8 | % | 86.6 | % | 87.8 | % | 88.7 | % | $32,376 | 3.7 | % | 2.5 | % | 165 | ||||||||||||||
Total / Weighted Average Consolidated Properties | 13 | 2,295,200 | 8.9 | % | 90.0 | % | 90.4 | % | 91.3 | % | 91.6 | % | 92.0 | % | $65,494 | 7.4 | % | 5.1 | % | 217 | ||||||||||||||
Suburban Operating Properties Grand Total / Weighted Average | 13 | 2,295,200 | 8.9 | % | 90.0 | % | 90.4 | % | 91.3 | % | 91.6 | % | 92.0 | % | $65,494 | 217 | ||||||||||||||||||
Suburban Operating Properties Grand Total - SLG share of Annualized Rent | $65,494 | 5.1 | % | |||||||||||||||||||||||||||||||
Suburban Operating Properties Same Store Occupancy % | 2,295,200 | 100.0 | % | 90.0 | % | 90.4 | % | 91.3 | % | 91.6 | % | 92.0 | % | |||||||||||||||||||||
Suburban Operating Properties Same Store Leased Occupancy % | 90.0 | % | 91.1 | % | 91.8 | % | 92.1 | % | 92.2 | % | ||||||||||||||||||||||||
Supplemental Information | 30 | Second Quarter 2019 |
| ||
SELECTED PROPERTY DATA Retail and Residential Operating Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized | Total | ||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Cash Rent ($'s) | Cash Rent (SLG%) | Tenants | |||||||||||||||||||
"Same Store" Retail | |||||||||||||||||||||||||||||||||
11 West 34th Street | 30.0 | Herald Square/Penn Station | Fee Interest | 1 | 17,150 | 2.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $2,946 | 1.0 | 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 | 3,635 | 1.4 | 1 | |||||||||||||||||||
115 Spring Street | 100.0 | Soho | Fee Interest | 1 | 5,218 | 0.8 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,606 | 4.2 | 1 | |||||||||||||||||||
121 Greene Street | 50.0 | Soho | Fee Interest | 1 | 7,131 | 1.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,639 | 1.0 | 2 | |||||||||||||||||||
315 West 33rd Street - The Olivia | 100.0 | Penn Station | Fee Interest | 1 | 270,132 | 40.8 | 100.0 | 100.0 | 100.0 | 99.4 | 99.4 | 16,605 | 19.3 | 10 | |||||||||||||||||||
717 Fifth Avenue | 10.9 | Midtown/Plaza District | Fee Interest | 1 | 119,550 | 18.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 51,223 | 6.5 | 6 | |||||||||||||||||||
752-760 Madison Avenue | 100.0 | Plaza District | Fee Interest | 1 | 21,124 | 3.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 15,312 | 17.8 | 1 | |||||||||||||||||||
762 Madison Avenue | 90.0 | Plaza District | Fee Interest | 1 | 6,109 | 0.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,942 | 2.0 | 5 | |||||||||||||||||||
Williamsburg Terrace | 100.0 | Brooklyn, New York | Fee Interest | 1 | 52,000 | 7.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,801 | 2.1 | 3 | |||||||||||||||||||
1552-1560 Broadway | 50.0 | Times Square | Fee Interest | 2 | 57,718 | 8.7 | 88.3 | 88.3 | 88.3 | 88.3 | 67.5 | 28,615 | 16.6 | 3 | |||||||||||||||||||
Subtotal/Weighted Average | 11 | 569,201 | 86.0 | % | 98.8 | % | 98.8 | % | 98.8 | % | 98.5 | % | 96.4 | % | $127,324 | 71.9 | % | 33 | |||||||||||||||
"Non Same Store" Retail | |||||||||||||||||||||||||||||||||
133 Greene Street | 100.0 | Soho | Fee Interest | 1 | 6,425 | 1.0 | 100.0 | 100.0 | 100.0 | N/A | N/A | $590 | 0.7 | 1 | |||||||||||||||||||
650 Fifth Avenue | 50.0 | Plaza District | Leasehold Interest | 1 | 69,214 | 10.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 34,186 | 19.9 | 1 | |||||||||||||||||||
712 Madison Avenue | 100.0 | Plaza District | Fee Interest | 1 | 6,600 | 1.0 | 100.0 | 100.0 | 100.0 | N/A | N/A | 3,392 | 3.9 | 1 | |||||||||||||||||||
719 Seventh Avenue | 75.0 | Times Square | Fee Interest | 1 | 10,040 | 1.5 | 100.0 | 100.0 | 100.0 | 100.0 | — | 4,100 | 3.6 | 1 | |||||||||||||||||||
Subtotal/Weighted Average | 4 | 92,279 | 14.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 87.3 | % | $42,268 | 28.1 | % | 4 | |||||||||||||||
Total / Weighted Average Retail Properties | 15 | 661,480 | 100.0 | % | 99.0 | % | 99.0 | % | 99.0 | % | 98.7 | % | 95.3 | % | $169,592 | 100.0 | % | 37 | |||||||||||||||
Residential Properties | |||||||||||||||||||||||||||||||||
Ownership | # of | Useable | Total | Occupancy (%) | Average Monthly (1) | Annualized | Annualized | ||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Units | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Rent Per Unit ($'s) | Cash Rent ($'s) | Cash Rent (SLG %) | |||||||||||||||||||
"Same Store" Residential | |||||||||||||||||||||||||||||||||
315 West 33rd Street - "The Olivia" | 100.0 | Penn Station | Fee Interest | 222,855 | 333 | 94.9 | 96.1 | 96.1 | 95.8 | 95.5 | $4,192 | $15,847 | 37.7 | ||||||||||||||||||||
400 East 57th Street | 41.0 | Upper East Side | Fee Interest | 1 | 290,482 | 263 | 95.8 | 95.4 | 92.8 | 91.6 | 90.8 | 3,767 | 12,905 | 12.6 | |||||||||||||||||||
400 East 58th Street | 90.0 | Upper East Side | Fee Interest | 1 | 140,000 | 126 | 93.7 | 96.8 | 95.2 | 95.2 | 95.2 | 3,660 | 5,731 | 12.3 | |||||||||||||||||||
1080 Amsterdam | 92.5 | Upper West Side | Leasehold Interest | 1 | 82,250 | 97 | 92.7 | 90.6 | 94.8 | 99.0 | 95.8 | 4,135 | 4,742 | 10.4 | |||||||||||||||||||
Stonehenge Portfolio | Various | Fee Interest | 6 | 445,934 | 538 | 96.1 | 94.8 | 94.3 | 95.4 | 95.2 | 3,838 | 27,053 | 1.7 | ||||||||||||||||||||
605 West 42nd Street - Sky | 20.0 | Westside | Fee Interest | 1 | 927,358 | 1,175 | 93.5 | 90.9 | 86.0 | 88.9 | 82.9 | 3,626 | 53,161 | 25.3 | |||||||||||||||||||
Subtotal/Weighted Average | 10 | 2,108,879 | 2,532 | 94.5 | % | 93.2 | % | 90.6 | % | 92.2 | % | 89.1 | % | $3,782 | $119,440 | 100.0 | % | ||||||||||||||||
Total / Weighted Average Residential Properties | 10 | 2,108,879 | 2,532 | 94.5 | % | 93.2 | % | 90.6 | % | 92.2 | % | 89.1 | % | $3,782 | $119,440 | ||||||||||||||||||
(1) Calculated based on occupied units. Amounts in dollars. | |||||||||||||||||||||||||||||||||
Supplemental Information | 31 | Second Quarter 2019 |
| ||
SELECTED PROPERTY DATA Development / Redevelopment and Construction in Progress Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized | Annualized | Gross R/E | Total | ||||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Cash Rent ($'s) | Cash Rent (SLG%) | Book Value | Tenants | |||||||||||||||||||||
Development / Redevelopment | ||||||||||||||||||||||||||||||||||||
19-21 East 65th Street | 100.0 | Plaza District | Fee Interest | 2 | 23,610 | 2.7 | 3.6 | 3.6 | 18.0 | 17.0 | 17.0 | $31 | 0.1 | $10,020 | 1 | |||||||||||||||||||||
106 Spring Street | 100.0 | Lower Manhattan | Fee Interest | 1 | 5,928 | 0.7 | — | N/A | N/A | N/A | N/A | — | — | 80,155 | — | |||||||||||||||||||||
460 West 34th Street | 70.9 | Soho | Fee Interest | 1 | 638,000 | 73.2 | 76.3 | N/A | N/A | N/A | N/A | 15,465 | 29.9 | 461,108 | 19 | |||||||||||||||||||||
562 Fifth Avenue (1) | 100.0 | Plaza District | Fee Interest | 1 | 42,635 | 4.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 4,500 | 12.3 | 68,753 | 1 | |||||||||||||||||||||
609 Fifth Avenue | 100.0 | Rockefeller Center | Fee Interest | 1 | 160,000 | 18.4 | 96.0 | 96.0 | 96.0 | — | 3.0 | 21,119 | 57.7 | 254,074 | 3 | |||||||||||||||||||||
1640 Flatbush Avenue | 100.0 | Brooklyn, New York | Fee Interest | 1 | 1,000 | 0.1 | — | — | — | — | — | — | — | 7,300 | — | |||||||||||||||||||||
Total / Weighted Average Development / Redevelopment Properties | 7 | 871,173 | 100.0 | % | 78.5 | % | 86.7 | % | 88.2 | % | 20.5 | % | 22.6 | % | $41,115 | 100.0 | % | $881,410 | 24 | |||||||||||||||||
(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 | ||||||||||||||||||||
Land Contributed | Equity Contributed | Contributions | Financing | Total | ||||||||||||||||
Building | Gross | Ownership | Estimated | Percentage | Market | Development | ||||||||||||||
Address | Sq. Feet | Interest (%) | Occupancy | Leased | Cost | Value Adj | Company | Partners | Company | Partners | Drawn | Available | Budget | |||||||
One Vanderbilt | 1,730,989 | 71.0 | Q3 2020 | 59.0 | $331,490 | $235,946 | $540,051 | $452,513 | — | — | $478,708 | $1,271,292 | $3,310,000 (1) | |||||||
185 Broadway | 259,856 | 100.0 | Q2 2021 | — | 39,167 | — | — | — | 47,233 | — | 111,869 | 113,131 | 311,400 | |||||||
Total Construction In Progress | $370,657 | $235,946 | $540,051 | $452,513 | $47,233 | — | $590,577 | $1,384,423 | $3,621,400 | |||||||||||
(1) Includes joint venture fees paid to the Company, including development and financing fees, direct personnel expense and leasing commissions, $64.0 million of which have been funded as of June 30, 2019. Also includes up to $50.0 million of additional discretionary owner contingencies. | ||||||||||||||||||||
Supplemental Information | 32 | Second Quarter 2019 |
| ||
SELECTED PROPERTY DATA Retail Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized Retail | Annualized Retail Cash Rent | Total | ||||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Cash Rent ($'s) | 100% | SLG | Tenants | ||||||||||||||||||||
HIGH STREET RETAIL - Consolidated Properties | |||||||||||||||||||||||||||||||||||
106 Spring Street (1) | 100.0 | Soho | Fee Interest | 1 | 5,928 | 0.3 | — | N/A | N/A | N/A | N/A | $— | — | — | — | ||||||||||||||||||||
115 Spring Street | 100.0 | Soho | Fee Interest | 1 | 5,218 | 0.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,606 | 1.1 | 1.7 | 1 | ||||||||||||||||||||
133 Greene Street | 100.0 | Soho | Fee Interest | 1 | 6,425 | 0.4 | 100.0 | 100.0 | 100.0 | N/A | N/A | 590 | 0.2 | 0.3 | 1 | ||||||||||||||||||||
315 West 33rd Street - "The Olivia" | 100.0 | Penn Station | Fee Interest | 1 | 217,519 | 12.3 | 100.0 | 100.0 | 100.0 | 99.4 | 99.4 | 13,031 | 4.0 | 6.3 | 9 | ||||||||||||||||||||
712 Madison Avenue | 100.0 | Plaza District | Fee Interest | 1 | 6,600 | 0.4 | 100.0 | 100.0 | 100.0 | N/A | N/A | 3,392 | 1.0 | 1.6 | 1 | ||||||||||||||||||||
719 Seventh Avenue | 75.0 | Times Square | Fee Interest | 1 | 10,040 | 0.6 | 100.0 | 100.0 | 100.0 | 100.0 | — | 4,100 | 1.3 | 1.5 | 1 | ||||||||||||||||||||
752-760 Madison Avenue | 100.0 | Plaza District | Fee Interest | 1 | 21,124 | 1.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 15,312 | 4.7 | 7.4 | 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 | 1,942 | 0.6 | 0.8 | 5 | ||||||||||||||||||||
Williamsburg Terrace | 100.0 | Brooklyn, New York | Fee Interest | 1 | 52,000 | 2.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,801 | 0.6 | 0.9 | 3 | ||||||||||||||||||||
1640 Flatbush Avenue (1) | 100.0 | Brooklyn, New York | Fee Interest | 1 | 1,000 | 0.1 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Subtotal / Weighted Average | 10 | 331,963 | 18.7 | % | 97.9 | % | 97.9 | % | 99.7 | % | 99.3 | % | 96.1 | % | $43,774 | 13.4 | % | 20.5 | % | 22 | |||||||||||||||
HIGH STREET RETAIL - Unconsolidated Properties | |||||||||||||||||||||||||||||||||||
11 West 34th Street | 30.0 | Herald Square/Penn Station | Fee Interest | 1 | 17,150 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | $2,946 | 0.9 | 0.4 | 1 | ||||||||||||||||||||
21 East 66th Street | 32.3 | Plaza District | Fee Interest | 1 | 13,069 | 0.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,635 | 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 | 1,639 | 0.5 | 0.4 | 2 | ||||||||||||||||||||
650 Fifth Avenue | 50.0 | Plaza District | Leasehold Interest | 1 | 69,214 | 3.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 34,186 | 10.5 | 8.2 | 1 | ||||||||||||||||||||
717 Fifth Avenue | 10.9 | Midtown/Plaza District | Fee Interest | 1 | 119,550 | 6.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 51,223 | 15.7 | 2.7 | 6 | ||||||||||||||||||||
1552-1560 Broadway | 50.0 | Times Square | Fee Interest | 2 | 57,718 | 3.3 | 88.3 | 88.3 | 88.3 | 88.3 | 67.5 | 28,615 | 8.8 | 6.9 | 3 | ||||||||||||||||||||
Subtotal / Weighted Average | 7 | 283,832 | 16.0 | % | 97.6 | % | 97.6 | % | 97.6 | % | 97.6 | % | 93.4 | % | $122,244 | 37.5 | % | 19.2 | % | 14 | |||||||||||||||
Total / Weighted Average Prime Retail | 17 | 615,795 | 34.7 | % | 97.8 | % | 98.7 | % | 98.7 | % | 98.5 | % | 94.8 | % | $166,018 | 50.9 | % | 39.7 | % | 36 | |||||||||||||||
OTHER RETAIL - Consolidated Properties | |||||||||||||||||||||||||||||||||||
30 East 40th Street | 60.0 | Grand Central South | Leasehold Interest | 1 | 4,461 | 0.3 | 81.1 | 81.1 | 81.1 | 100.0 | 100.0 | $456 | 0.1 | 0.1 | 4 | ||||||||||||||||||||
100 Church Street | 100.0 | Downtown | Fee Interest | 1 | 61,708 | 3.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,484 | 1.1 | 1.7 | 9 | ||||||||||||||||||||
110 Greene Street | 100.0 | Soho | Fee Interest | 1 | 16,121 | 0.9 | 86.8 | 86.8 | 98.7 | 98.7 | 98.7 | 2,667 | 0.8 | 1.3 | 3 | ||||||||||||||||||||
125 Park Avenue | 100.0 | Grand Central | Fee Interest | 1 | 32,124 | 1.8 | 100.0 | 79.9 | 100.0 | 100.0 | 100.0 | 4,935 | 1.5 | 2.4 | 7 | ||||||||||||||||||||
220 East 42nd Street | 100.0 | Grand Central | Fee Interest | 1 | 35,332 | 2.0 | 85.6 | 85.6 | 85.6 | 85.6 | 85.6 | 2,894 | 0.9 | 1.4 | 5 | ||||||||||||||||||||
304 Park Avenue South | 100.0 | Midtown South | Fee Interest | 1 | 25,330 | 1.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,545 | 1.1 | 1.7 | 6 | ||||||||||||||||||||
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 | 648 | 0.2 | 0.3 | 5 | ||||||||||||||||||||
420 Lexington Ave (Graybar) | 100.0 | Grand Central North | Leasehold Interest | 1 | 45,263 | 2.6 | 90.3 | 100.0 | 100.0 | 100.0 | 100.0 | 3,868 | 1.2 | 1.9 | 5 | ||||||||||||||||||||
461 Fifth Avenue | 100.0 | Midtown | Leasehold Interest | 1 | 16,248 | 0.9 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,362 | 0.7 | 1.1 | 2 | ||||||||||||||||||||
485 Lexington Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 41,701 | 2.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 5,848 | 1.8 | 2.8 | 8 | ||||||||||||||||||||
555 West 57th Street | 100.0 | Midtown West | Fee Interest | 1 | 60,389 | 3.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,087 | 0.6 | 1.0 | 2 | ||||||||||||||||||||
609 Fifth Avenue (1) | 100.0 | Rockefeller Center | Fee Interest | 1 | 34,836 | 2.0 | 77.0 | 68.7 | 68.7 | — | — | 9,895 | 3.0 | 4.8 | 2 | ||||||||||||||||||||
625 Madison Avenue | 100.0 | Plaza District | Leasehold Interest | 1 | 74,937 | 4.2 | 91.3 | 100.0 | 100.0 | 100.0 | 100.0 | 17,378 | 5.3 | 8.4 | 18 | ||||||||||||||||||||
635 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 23,250 | 1.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,434 | 1.1 | 1.7 | 1 | ||||||||||||||||||||
641 Sixth Avenue | 100.0 | Midtown South | Fee Interest | 1 | 28,500 | 1.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,767 | 1.2 | 1.8 | 2 | ||||||||||||||||||||
711 Third Avenue | 100.0 | Grand Central North | Leasehold Interest | 1 | 25,639 | 1.4 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,141 | 1.0 | 1.5 | 3 | ||||||||||||||||||||
750 Third Avenue | 100.0 | Grand Central North | Fee Interest | 1 | 24,827 | 1.4 | 72.3 | 72.3 | 72.3 | 72.3 | 100.0 | 2,576 | 0.8 | 1.2 | 6 | ||||||||||||||||||||
810 Seventh Avenue | 100.0 | Times Square | Fee Interest | 1 | 18,207 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 4,320 | 1.3 | 2.1 | 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 | 292 | 0.1 | 0.1 | 1 | ||||||||||||||||||||
1185 Avenue of the Americas | 100.0 | Rockefeller Center | Leasehold Interest | 1 | 37,326 | 2.1 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 6,774 | 2.1 | 3.3 | 5 | ||||||||||||||||||||
1350 Avenue of the Americas | 100.0 | Rockefeller Center | Fee Interest | 1 | 17,797 | 1.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,863 | 0.9 | 1.4 | 6 | ||||||||||||||||||||
Subtotal / Weighted Average | 21 | 628,952 | 35.5 | % | 94.6 | % | 94.9 | % | 96.2 | % | 92.5 | % | 93.6 | % | $87,234 | 26.7 | % | 41.9 | % | 104 | |||||||||||||||
(1) Development / Redevelopment properties. | |||||||||||||||||||||||||||||||||||
Supplemental Information | 33 | Second Quarter 2019 |
| ||
SELECTED PROPERTY DATA - CONTINUED Retail Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) | | |
| ||
Ownership | # of | Usable | % of Total | Occupancy (%) | Annualized Retail | Annualized Retail Cash Rent | Total | ||||||||||||||||||||||||||||
Properties | Interest (%) | SubMarket | Ownership | Bldgs | Sq. Feet | Sq. Feet | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Cash Rent ($'s) | 100% | SLG | Tenants | ||||||||||||||||||||
OTHER RETAIL - Unconsolidated Properties | |||||||||||||||||||||||||||||||||||
2 Herald Square | 51.0 | Herald Square | Leasehold Interest | 1 | 94,531 | 5.3 | 60.6 | 60.6 | 59.9 | 59.9 | 59.9 | $14,544 | 4.5 | 3.6 | 2 | ||||||||||||||||||||
10 East 53rd Street | 55.0 | Plaza District | Fee Interest | 1 | 39,340 | 2.2 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,774 | 1.2 | 1.0 | 3 | ||||||||||||||||||||
11 Madison Avenue | 60.0 | Park Avenue South | Fee Interest | 1 | 38,800 | 2.2 | 98.7 | 98.7 | 98.7 | 98.7 | 98.7 | 3,825 | 1.2 | 1.1 | 6 | ||||||||||||||||||||
55 West 46th Street | 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 | 2.3 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,769 | 1.2 | 0.9 | 9 | ||||||||||||||||||||
280 Park Avenue | 50.0 | Park Avenue | Fee Interest | 1 | 27,896 | 1.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 2,215 | 0.7 | 0.5 | 3 | ||||||||||||||||||||
400 East 57th Street | 41.0 | Upper East Side | Fee Interest | 1 | 9,717 | 0.5 | 66.6 | 75.4 | 75.4 | 75.4 | 75.4 | 1,695 | 0.5 | 0.3 | 8 | ||||||||||||||||||||
460 West 34th Street (1) | 70.9 | Hudson Yards | Fee Interest | 1 | 20,850 | 1.2 | 100.0 | N/A | N/A | N/A | N/A | 723 | 0.2 | 0.2 | 6 | ||||||||||||||||||||
800 Third Avenue | 60.5 | Grand Central North | Fee Interest | 1 | 9,900 | 0.6 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 1,926 | 0.6 | 0.6 | 2 | ||||||||||||||||||||
919 Third Avenue | 51.0 | Grand Central North | Fee Interest | 1 | 31,004 | 1.7 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 3,607 | 1.1 | 0.9 | 5 | ||||||||||||||||||||
1515 Broadway | 57.0 | Times Square | Fee Interest | 1 | 185,956 | 10.5 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 32,899 | 10.1 | 9.0 | 9 | ||||||||||||||||||||
Worldwide Plaza | 24.4 | Westside | Fee Interest | 1 | 10,592 | (2) | 0.6 | 100.0 | 97.2 | 97.2 | 97.2 | 100.0 | 1,428 | 0.4 | 0.2 | 8 | |||||||||||||||||||
Stonehenge Portfolio | Various | Fee Interest | 2 | 19,231 | 1.1 | 87.0 | 88.9 | 88.9 | 83.1 | 83.1 | 2,285 | 0.7 | 0.0 | 8 | |||||||||||||||||||||
Subtotal / Weighted Average | 14 | 529,030 | 29.8 | % | 91.8 | % | 91.6 | % | 91.5 | % | 91.3 | % | 91.3 | % | $72,901 | 22.5 | % | 18.3 | % | 70 | |||||||||||||||
Total / Weighted Average Other Retail | 35 | 1,157,982 | 65.3 | % | 93.3 | % | 93.4 | % | 94.1 | % | 92.0 | % | 92.6 | % | $160,136 | 49.1 | % | 60.3 | % | 174 | |||||||||||||||
Retail Grand Total / Weighted Average | 52 | 1,773,777 | 100.0 | % | 94.9 | % | 95.3 | % | 95.7 | % | 94.2 | % | 93.4 | % | $326,155 | 100.0 | % | 210 | |||||||||||||||||
Retail Grand Total - SLG share of Annualized Rent | $207,620 | 100.0 | % | ||||||||||||||||||||||||||||||||
(1) Development / Redevelopment properties. | |||||||||||||||||||||||||||||||||||
(2) Excludes the theatre, parking garage, fitness gym and other amenity space totaling 241,371 square feet. | |||||||||||||||||||||||||||||||||||
Supplemental Information | 34 | Second Quarter 2019 |
| ||
LARGEST TENANTS BY SLG SHARE OF ANNUALIZED CASH RENT Manhattan, Suburban, Retail, Residential and Development / Redevelopment Properties Unaudited (Dollars in Thousands Except Per SF) | | |
| ||
Ownership | Lease | Total Rentable | Annualized | SLG Share of | % of SLG Share of | Annualized | Credit | |||||||||
Tenant Name | Property | Interest % | Expiration | Square Feet | Cash Rent | Annualized Cash Rent ($) | Annualized Cash Rent (2) | Rent PSF | Rating (1) | |||||||
Credit Suisse Securities (USA), Inc. | 1 Madison Avenue | 100.0 | Dec 2020 | 1,146,881 | $72,570 | $72,570 | 5.0% | $63.28 | ||||||||
11 Madison Avenue | 60.0 | May 2037 | 1,265,841 | 78,506 | 47,103 | 3.3% | 62.02 | |||||||||
1055 Washington Blvd | 100.0 | Jan 2022 | 2,525 | 100 | 100 | —% | 39.60 | |||||||||
2,415,247 | $151,176 | $119,773 | 8.3% | $62.59 | A+ | |||||||||||
Viacom International, Inc. | 1515 Broadway | 57.0 | Jun 2031 | 1,470,289 | 92,674 | 51,997 | 3.6% | $63.03 | ||||||||
Mar 2028 | 9,106 | 1,924 | 1,924 | 0.1% | 211.30 | |||||||||||
1,479,395 | $94,598 | $53,921 | 3.7% | $63.94 | BBB- | |||||||||||
Ralph Lauren Corporation | 625 Madison Avenue | 100.0 | Dec 2019 | 386,785 | 31,731 | 31,731 | 2.2% | $82.04 | A- | |||||||
Sony Corporation | 11 Madison Avenue | 60.0 | Jan 2031 | 578,791 | 44,372 | 26,623 | 1.8% | $76.66 | BBB+ | |||||||
Debevoise & Plimpton, LLP | 919 Third Avenue | 51.0 | June 2022 | 577,438 | 46,709 | 23,822 | 1.6% | $80.89 | ||||||||
King & Spalding | 1185 Avenue of the Americas | 100.0 | Oct 2025 | 218,275 | 20,350 | 20,350 | 1.4% | $93.23 | ||||||||
The City of New York | 100 Church Street | 100.0 | Mar 2034 | 510,007 | 19,659 | 19,659 | 1.4% | $38.55 | ||||||||
420 Lexington Avenue | 100.0 | Oct 2030 | 4,077 | 279 | 279 | 0.1% | 68.48 | |||||||||
514,084 | $19,938 | $19,938 | 1.5% | $38.78 | Aa1 | |||||||||||
Visiting Nurse Service of New York | 220 East 42nd Street | 100.0 | Sep 2048 | 308,115 | 18,933 | 18,933 | 1.3% | $61.45 | ||||||||
Advance Magazine Group, Fairchild Publications | 750 Third Avenue | 100.0 | Feb 2021 | 286,622 | 14,727 | 14,727 | 1.0% | $51.38 | ||||||||
485 Lexington Avenue | 100.0 | Feb 2021 | 52,573 | 3,654 | 3,654 | 0.3% | 69.50 | |||||||||
339,195 | $18,381 | $18,381 | 1.3% | $54.19 | ||||||||||||
Metro-North Commuter Railroad Company | 420 Lexington Avenue | 100.0 | Nov 2034 | 334,654 | 17,922 | 17,922 | 1.2% | $53.55 | ||||||||
110 East 42nd Street | 100.0 | Oct 2021 | 1,840 | 115 | 115 | —% | 62.64 | |||||||||
336,494 | $18,037 | $18,037 | 1.2% | $53.60 | Aaa | |||||||||||
Giorgio Armani Corporation | 752-760 Madison Avenue | 100.0 | Dec 2024 | 21,124 | 15,312 | 15,312 | 1.1% | $724.87 | ||||||||
717 Fifth Avenue | 10.9 | Sep 2022 | 46,940 | 22,473 | 2,450 | 0.2% | 478.77 | |||||||||
762 Madison Avenue | 90.0 | Dec 2024 | 1,264 | 245 | 221 | —% | 194.20 | |||||||||
69,328 | $38,030 | $17,983 | 1.3% | $548.56 | ||||||||||||
News America Incorporated | 1185 Avenue of the Americas | 100.0 | Nov 2020 | 165,086 | 17,407 | 17,407 | 1.2% | $105.44 | A | |||||||
Nike Retail Services, Inc. | 650 Fifth Avenue | 50.0 | Jan 2033 | 69,214 | 34,186 | 17,093 | 1.2% | $493.91 | AA- | |||||||
C.B.S. Broadcasting, Inc. | 555 West 57th Street | 100.0 | Dec 2023 | 338,527 | 16,479 | 16,479 | 1.1% | $48.68 | ||||||||
Worldwide Plaza | 24.35 | Jan 2027 | 32,598 | 2,192 | 534 | 0.1% | 67.23 | |||||||||
371,125 | $18,671 | $17,013 | 1.2% | $50.31 | BBB | |||||||||||
Omnicom Group, Inc., Cardinia Real Estate | 220 East 42nd Street | 100.0 | Apr 2032 | 231,114 | 14,783 | 14,783 | 1.0% | $63.96 | ||||||||
1055 Washington Blvd. | 100.0 | Oct 2028 | 23,800 | 863 | 863 | 0.1% | 36.25 | |||||||||
254,914 | $15,646 | $15,646 | 1.1% | $61.38 | BBB+ | |||||||||||
Cravath, Swaine & Moore LLP | Worldwide Plaza | 24.35 | Aug 2024 | 617,135 | 63,416 | 15,442 | 1.1% | $102.76 | ||||||||
National Hockey League | 1185 Avenue of the Americas | 100.0 | Nov 2022 | 148,217 | 15,345 | 15,345 | 1.1% | $103.53 | ||||||||
WME IMG, LLC | 304 Park Avenue | 100.0 | Apr 2028 | 134,475 | 9,788 | 9,788 | 0.7% | $72.78 | ||||||||
11 Madison Avenue | 60.0 | Sep 2030 | 103,426 | 9,103 | 5,462 | 0.4% | 88.01 | |||||||||
237,901 | $18,891 | $15,250 | 1.1% | $79.40 | ||||||||||||
WeWork | 609 Fifth Avenue | 100.0 | Apr 2035 | 138,563 | 11,224 | 11,224 | 0.8% | $81.00 | ||||||||
2 Herald Sqaure | 51.0 | Feb 2036 | 123,633 | 6,970 | 3,555 | 0.2% | 56.38 | |||||||||
262,196 | $18,194 | $14,779 | 1.0% | $69.39 | ||||||||||||
Amerada Hess Corp. | 1185 Avenue of the Americas | 100.0 | Dec 2027 | 167,169 | $14,584 | $14,584 | 1.0% | $87.24 | BBB- | |||||||
Total | 9,516,104 | $718,595 | $512,051 | 35.6% | $75.51 | |||||||||||
(1) Corporate or bond rating from S&P or Moody's. | ||||||||||||||||
(2) SLG Share of Annualized Cash Rent includes Manhattan, Suburban, Retail, Residential, and Development / Redevelopment properties. | ||||||||||||||||
Supplemental Information | 35 | Second Quarter 2019 |
| ||
TENANT DIVERSIFICATION Based on SLG Share of Annualized Cash Rent Unaudited | | |
| ||
Category | Manhattan Properties | Suburban Properties | ||||||||
Arts, Ent. & Recreation | 4.8 | % | — | % | ||||||
Business Services | 2.4 | % | — | % | ||||||
Financial Services | 32.4 | % | 29.7 | % | ||||||
Government / Non Profit | 3.5 | % | 1.1 | % | ||||||
Legal | 8.6 | % | 15.5 | % | ||||||
Manufacturing | 2.5 | % | 9.7 | % | ||||||
Medical | 3.0 | % | 0.2 | % | ||||||
Other | 5.1 | % | 6.7 | % | ||||||
Professional Services | 7.1 | % | 12.0 | % | ||||||
Retail | 11.2 | % | 1.0 | % | ||||||
TAMI | ||||||||||
Technology | 1.8 | % | 8.0 | % | ||||||
Advertising | 3.6 | % | — | % | ||||||
Media | 13.7 | % | 16.1 | % | ||||||
Information | 0.3 | % | — | % | ||||||
Total | 100.0 | % | 100.0 | % | ||||||
Supplemental Information | 36 | Second Quarter 2019 |
| ||
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Available Space Unaudited | | |
| ||
Activity | Building Address | # of Leases | Usable SF | Rentable SF | Escalated Rent/Rentable SF ($'s)(1) | ||||||
Available Space at 3/31/19 | 1,435,125 | ||||||||||
Less: Sold Vacancies | 521 Fifth Avenue | (16,837 | ) | ||||||||
Space which became available during the Quarter (2): | |||||||||||
Office | |||||||||||
11 Madison Avenue | 1 | 98,175 | 98,175 | $81.23 | |||||||
30 East 40th Street | 1 | 692 | 692 | 71.56 | |||||||
100 Park Avenue | 3 | 17,856 | 20,433 | 76.81 | |||||||
110 East 42nd Street | 3 | 23,364 | 24,083 | 57.34 | |||||||
110 Greene Street | 2 | 4,652 | 4,652 | 78.85 | |||||||
420 Lexington Avenue | 6 | 12,890 | 18,589 | 59.95 | |||||||
555 West 57th Street | 1 | 1,700 | 2,071 | 65.15 | |||||||
750 Third Avenue | 1 | 4,723 | 5,993 | 70.18 | |||||||
800 Third Avenue | 1 | 6,587 | 6,587 | 94.39 | |||||||
810 Seventh Avenue | 2 | 26,216 | 28,301 | 54.51 | |||||||
1515 Broadway | 1 | 60,700 | 64,788 | 57.19 | |||||||
Total/Weighted Average | 22 | 257,555 | 274,364 | $68.82 | |||||||
Retail | |||||||||||
30 East 40th Street | 1 | 300 | 300 | $226.02 | |||||||
100 Church Street | 1 | 1,403 | 1,340 | 102.56 | |||||||
420 Lexington Avenue | 1 | 3,317 | 4,408 | 216.35 | |||||||
625 Madison Avenue | 2 | 5,721 | 6,545 | 941.66 | |||||||
World Wide Plaza | 1 | 2,430 | 1,387 | 146.92 | |||||||
Total/Weighted Average | 6 | 13,171 | 13,980 | $538.33 | |||||||
Storage | |||||||||||
11 Madison Avenue | 1 | 932 | 932 | $37.50 | |||||||
100 Church Street | 3 | 7,914 | 8,294 | 19.14 | |||||||
110 Greene Street | 1 | 422 | 422 | 83.20 | |||||||
Total/Weighted Average | 5 | 9,268 | 9,648 | $23.72 | |||||||
Total Space which became available during the quarter | |||||||||||
Office | 22 | 257,555 | 274,364 | $68.82 | |||||||
Retail | 6 | 13,171 | 13,980 | $538.33 | |||||||
Storage | 5 | 9,268 | 9,648 | $23.72 | |||||||
33 | 279,994 | 297,992 | $89.38 | ||||||||
Total Available Space | 1,698,282 | ||||||||||
(1) Escalated rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment. | |||||||||||
(2) Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants heldover. | |||||||||||
Supplemental Information | 37 | Second Quarter 2019 |
| ||
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 | 1,698,282 | |||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||
55 West 46th Street - Tower 46 | 2 | 10.6 | 45,041 | 45,041 | $89.00 | $— | $125.00 | 7.0 | ||||||||||||||||||||
100 Park Avenue | 2 | 9.4 | 14,466 | 16,370 | 86.99 | 102.23 | 125.38 | 9.0 | ||||||||||||||||||||
110 East 42nd Street | 1 | 12.3 | 20,331 | 20,966 | 60.00 | 55.88 | 85.00 | 12.0 | ||||||||||||||||||||
110 Greene Street | 5 | 3.8 | 11,292 | 11,830 | 79.99 | 60.50 | 44.44 | 1.1 | ||||||||||||||||||||
280 Park Avenue | 1 | 10.8 | 19,658 | 20,274 | 107.00 | 104.93 | 115.00 | 10.0 | ||||||||||||||||||||
304 Park Avenue South | 1 | 8.9 | 4,783 | 5,162 | 70.00 | 76.04 | 16.42 | 7.0 | ||||||||||||||||||||
420 Lexington Avenue | 6 | 7.2 | 15,195 | 22,045 | 61.13 | 54.39 | 30.53 | 2.9 | ||||||||||||||||||||
461 Fifth Avenue | 1 | 7.3 | 6,639 | 7,134 | 88.00 | — | 18.24 | 3.0 | ||||||||||||||||||||
555 West 57th Street | 1 | 2.0 | 1,700 | 2,071 | 64.00 | 65.15 | — | — | ||||||||||||||||||||
625 Madison Avenue | 1 | 5.3 | 695 | 695 | 85.61 | 88.94 | 20.99 | 1.0 | ||||||||||||||||||||
1185 Avenue of the Americas | 2 | 14.1 | 75,010 | 82,358 | 73.00 | 72.13 | 105.03 | 7.3 | ||||||||||||||||||||
1350 Avenue of the Americas | 3 | 3.0 | 9,722 | 11,099 | 80.08 | 77.53 | — | 1.7 | ||||||||||||||||||||
Total/Weighted Average | 26 | 10.7 | 224,532 | 245,045 | $78.50 | $72.44 | $89.27 | 6.8 | ||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||
30 East 40th Street | 1 | 2.0 | 300 | 354 | $187.69 | $191.54 | $— | — | ||||||||||||||||||||
100 Church Street | 1 | 14.8 | 2,000 | 2,230 | 43.05 | 63.38 | — | 8.0 | ||||||||||||||||||||
125 Park Avenue | 2 | 15.5 | 5,712 | 6,684 | 130.16 | 110.61 | 77.29 | 6.0 | ||||||||||||||||||||
World Wide Plaza | 1 | 10.0 | 299 | 595 | 151.26 | 112.03 | — | 3.0 | ||||||||||||||||||||
Total/Weighted Average | 5 | 14.5 | 8,311 | 9,863 | $113.80 | $102.92 | $52.38 | 6.1 | ||||||||||||||||||||
Storage | ||||||||||||||||||||||||||||
100 Church Street | 2 | 15.0 | 4,500 | 8,343 | $18.56 | $25.00 | $— | — | ||||||||||||||||||||
110 Greene Street | 1 | 0.8 | 422 | 422 | 56.87 | 83.20 | — | — | ||||||||||||||||||||
Total/Weighted Average | 3 | 14.3 | 4,922 | 8,765 | $20.41 | $31.07 | $— | 15.0 | ||||||||||||||||||||
Leased Space | ||||||||||||||||||||||||||||
Office (3) | 26 | 10.7 | 224,532 | 245,045 | $78.50 | $72.44 | $89.27 | 6.8 | ||||||||||||||||||||
Retail | 5 | 14.5 | 8,311 | 9,863 | $113.80 | $102.92 | $52.38 | 6.1 | ||||||||||||||||||||
Storage | 3 | 14.3 | 4,922 | 8,765 | $20.41 | $31.07 | $— | 15.0 | ||||||||||||||||||||
Total | 34 | 10.9 | 237,765 | 263,673 | $77.89 | $73.16 | $84.92 | 6.6 | ||||||||||||||||||||
Total Available Space as of 6/30/19 | 1,460,517 | |||||||||||||||||||||||||||
Early Renewals | ||||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||
100 Park Avenue | 1 | 11.0 | 3,905 | 3,123 | $86.00 | $78.47 | $65.00 | 7.0 | ||||||||||||||||||||
125 Park Avenue | 1 | 4.5 | 11,506 | 12,462 | 64.00 | 55.88 | 42.73 | 3.0 | ||||||||||||||||||||
220 East 42nd Street | 2 | 15.0 | 82,007 | 90,655 | 62.80 | 45.32 | 62.66 | 8.5 | ||||||||||||||||||||
420 Lexington Avenue | 2 | 4.3 | 2,560 | 2,789 | 64.40 | 56.26 | 5.09 | 0.6 | ||||||||||||||||||||
Total/Weighted Average | 6 | 13.4 | 99,978 | 109,029 | $63.64 | $47.76 | $58.98 | 7.6 | ||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||
1515 Broadway | 1 | 0.4 | 55,296 | 44,721 | $42.60 | $42.60 | $— | — | ||||||||||||||||||||
Total/Weighted Average | 1 | 0.4 | 55,296 | 44,721 | $42.60 | $42.60 | $— | — | ||||||||||||||||||||
Storage | ||||||||||||||||||||||||||||
220 East 42nd Street | 1 | 15.8 | 13,565 | 17,018 | $32.58 | $38.23 | $— | 9.0 | ||||||||||||||||||||
Total/Weighted Average | 1 | 15.8 | 13,565 | 17,018 | $32.58 | $38.23 | $— | — | ||||||||||||||||||||
Renewals | ||||||||||||||||||||||||||||
Early Renewals Office | 6 | 13.4 | 99,978 | 109,029 | $63.64 | $47.76 | $58.98 | 7.6 | ||||||||||||||||||||
Early Renewals Retail | 1 | 0.4 | 55,296 | 44,721 | $42.60 | $42.60 | $— | — | ||||||||||||||||||||
Early Renewals Storage | 1 | 15.8 | 13,565 | 17,018 | $32.58 | $38.23 | $— | — | ||||||||||||||||||||
Total | 8 | 10.3 | 168,839 | 170,768 | $55.04 | $45.46 | $37.65 | 5.7 | ||||||||||||||||||||
(1) Annual initial base rent. | ||||||||||||||||||||||||||||
(2) Escalated cash rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment. | ||||||||||||||||||||||||||||
(3) Average starting office rent excluding new tenants replacing vacancies is $74.93/rsf for 170,620 rentable SF. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $70.53/rsf for 279,649 rentable SF. | ||||||||||||||||||||||||||||
Supplemental Information | 38 | Second Quarter 2019 |
| ||
LEASING ACTIVITY - SUBURBAN OPERATING PROPERTIES Available Space Unaudited | | |
| ||
Activity | Building Address | # of Leases | Usable SF | Rentable SF | Escalated Rent/Rentable SF ($'s)(1) | ||||||
Available Space at 3/31/19 | 222,081 | ||||||||||
Space which became available during the Quarter (2): | |||||||||||
Office | |||||||||||
200 Summit Lake Drive, Valhalla, New York | 1 | 2,042 | 2,042 | $27.86 | |||||||
360 Hamilton Avenue, White Plains, New York | 1 | 20,696 | 20,696 | 35.13 | |||||||
1 Landmark Square, Stamford, Connecticut | 2 | 6,950 | 6,950 | 34.19 | |||||||
4 Landmark Square, Stamford, Connecticut | 1 | 1,675 | 1,750 | 33.00 | |||||||
1010 Washington Boulevard, Stamford, Connecticut | 1 | 370 | 370 | 25.00 | |||||||
1055 Washington Boulevard, Stamford, Connecticut | 1 | 901 | 901 | 38.00 | |||||||
Total/Weighted Average | 7 | 32,634 | 32,709 | $34.33 | |||||||
Storage | |||||||||||
1 Landmark Square, Stamford, Connecticut | 1 | 180 | 150 | $15.00 | |||||||
5 Landmark Square, Stamford, Connecticut | 1 | 121 | 121 | 15.00 | |||||||
Total/Weighted Average | 2 | 301 | 271 | $15.00 | |||||||
Total Space which became available during the Quarter | |||||||||||
Office | 7 | 32,634 | 32,709 | $34.33 | |||||||
Storage | 2 | 301 | 271 | $15.00 | |||||||
9 | 32,935 | 32,980 | $34.17 | ||||||||
Total Available Space | 255,016 | ||||||||||
(1) Escalated rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment. | |||||||||||
(2) Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants heldover. | |||||||||||
Supplemental Information | 39 | Second Quarter 2019 |
| ||
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 | 255,016 | ||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||
100 Summit Lake Drive, Valhalla, New York | 1 | 2.2 | 2,042 | 2,042 | $27.50 | $27.86 | $— | 2.0 | |||||||||||||||||||
200 Summit Lake Drive, Valhalla, New York | 1 | — | 9,535 | 9,535 | — | — | — | — | |||||||||||||||||||
1 Landmark Square, Stamford, Connecticut | 1 | 5.3 | 2,094 | 2,094 | 39.00 | 36.54 | 20.73 | 4.0 | |||||||||||||||||||
3 Landmark Square, Stamford, Connecticut | 1 | 7.7 | 1,768 | 1,768 | 34.00 | 32.05 | 40.00 | 6.0 | |||||||||||||||||||
1010 Washington Boulevard, Stamford, Connecticut | 1 | 2.0 | 370 | 370 | 25.00 | 25.00 | — | — | |||||||||||||||||||
1055 Washington Boulevard, Stamford, Connecticut | 3 | 3.1 | 6,360 | 6,360 | 35.92 | 38.00 | 0.92 | 2.9 | |||||||||||||||||||
Total/Weighted Average | 8 | 2.2 | 22,169 | 22,169 | $19.65 | $32.55 | $5.41 | 1.9 | |||||||||||||||||||
Storage | |||||||||||||||||||||||||||
5 Landmark Square, Stamford, Connecticut | 3 | 4.3 | 534 | 534 | $15.00 | $15.00 | $— | — | |||||||||||||||||||
Total/Weighted Average | 3 | 4.3 | 534 | 534 | $15.00 | $15.00 | $— | — | |||||||||||||||||||
Leased Space | |||||||||||||||||||||||||||
Office (3) | 8 | 2.2 | 22,169 | 22,169 | $19.65 | $32.55 | $5.41 | 1.9 | |||||||||||||||||||
Storage | 3 | 4.3 | 534 | 534 | $15.00 | $15.00 | $— | — | |||||||||||||||||||
Total | 11 | 2.3 | 22,703 | 22,703 | $19.54 | $32.03 | $5.28 | 1.8 | |||||||||||||||||||
Total Available Space as of 6/30/19 | 232,313 | ||||||||||||||||||||||||||
Early Renewals | |||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||
360 Hamilton Avenue, White Plains, New York | 1 | 10.8 | 56,239 | 56,239 | $40.00 | $41.94 | $15.00 | 10.0 | |||||||||||||||||||
3 Landmark Square, Stamford, Connecticut | 1 | 5.0 | 9,374 | 9,374 | 34.75 | 34.28 | 10.00 | 4.0 | |||||||||||||||||||
1010 Washington Boulevard, Stamford, Connecticut | 2 | 1.7 | 3,008 | 3,008 | 35.98 | 35.98 | — | 0.3 | |||||||||||||||||||
Total/Weighted Average | 4 | 9.6 | 68,621 | 68,621 | $39.11 | $40.63 | $13.66 | 8.8 | |||||||||||||||||||
Storage | |||||||||||||||||||||||||||
360 Hamilton Avenue, White Plains, New York | 1 | 10.8 | 248 | 248 | $18.00 | $18.00 | $— | — | |||||||||||||||||||
1 | 10.8 | 248 | 248 | $18.00 | $18.00 | $— | — | ||||||||||||||||||||
Renewals | |||||||||||||||||||||||||||
Early Renewals Office | 4 | 9.6 | 68,621 | 68,621 | $39.11 | $40.63 | $13.66 | 8.8 | |||||||||||||||||||
Early Renewals Storage | 1 | 10.8 | 248 | 248 | $18.00 | $18.00 | $— | — | |||||||||||||||||||
Total | 5 | 9.6 | 68,869 | 68,869 | $39.03 | $40.55 | $13.61 | 8.7 | |||||||||||||||||||
(1) Annual initial base rent. | |||||||||||||||||||||||||||
(2) Escalated cash rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment. | |||||||||||||||||||||||||||
(3) Average starting office rent excluding new tenants replacing vacancies is $33.65/rsf for 7,175 rentable SF. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $38.59/rsf for 75,796 rentable SF. | |||||||||||||||||||||||||||
Supplemental Information | 40 | Second Quarter 2019 |
| ||
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 2019(1) | 3 | 2,302 | 0.02 | % | $59,736 | $25.95 | $29.59 | 3 | 3,563 | 0.03 | % | $258,734 | $72.62 | $82.55 | ||||||||||||||||||||
2nd Quarter 2019(1) | 7 | 19,473 | 0.16 | % | 1,320,774 | 67.83 | 66.39 | 2 | 19,970 | 0.19 | % | 2,074,473 | 103.88 | 96.85 | ||||||||||||||||||||
3rd Quarter 2019 | 7 | 10,325 | 0.08 | % | 682,475 | 66.10 | 65.02 | 2 | 8,032 | 0.07 | % | 688,001 | 85.66 | 78.01 | ||||||||||||||||||||
4th Quarter 2019 | 24 | 571,167 | 4.65 | % | 45,414,992 | 79.51 | 69.10 | 3 | 9,308 | 0.09 | % | 719,076 | 77.25 | 72.41 | ||||||||||||||||||||
Total 2019 | 41 | 603,267 | 4.91 | % | $47,477,977 | $78.70 | $68.80 | 10 | 40,873 | 0.38 | % | $3,740,284 | $91.51 | $86.33 | ||||||||||||||||||||
2020 | 89 | 2,075,083 | 16.88 | % | $139,822,872 | $67.38 | $69.77 | 19 | 254,076 | 2.37 | % | $17,852,413 | $70.26 | $78.51 | ||||||||||||||||||||
2021 | 105 | 1,174,288 | 9.55 | % | 71,382,487 | 60.79 | 67.77 | 26 | 292,262 | 2.72 | % | 22,094,945 | 75.60 | 79.19 | ||||||||||||||||||||
2022 | 93 | 1,043,303 | 8.49 | % | 72,450,548 | 69.44 | 76.76 | 29 | 889,064 | 8.29 | % | 81,868,634 | 92.08 | 95.17 | ||||||||||||||||||||
2023 | 73 | 907,359 | 7.38 | % | 58,130,647 | 64.07 | 66.08 | 15 | 437,429 | 4.08 | % | 37,323,738 | 85.33 | 80.72 | ||||||||||||||||||||
2024 | 50 | 356,547 | 2.90 | % | 25,315,902 | 71.00 | 73.06 | 23 | 998,478 | 9.31 | % | 101,666,706 | 101.82 | 87.26 | ||||||||||||||||||||
2025 | 36 | 551,668 | 4.49 | % | 49,750,592 | 90.18 | 83.38 | 13 | 508,026 | 4.73 | % | 40,750,997 | 80.21 | 84.47 | ||||||||||||||||||||
2026 | 29 | 702,298 | 5.71 | % | 48,548,874 | 69.13 | 68.59 | 17 | 477,944 | 4.45 | % | 47,751,806 | 99.91 | 104.74 | ||||||||||||||||||||
2027 | 38 | 601,899 | 4.90 | % | 46,046,775 | 76.50 | 72.85 | 17 | 348,632 | 3.25 | % | 30,672,049 | 87.98 | 93.71 | ||||||||||||||||||||
2028 | 37 | 565,541 | 4.60 | % | 41,699,366 | 73.73 | 76.13 | 20 | 222,462 | 2.07 | % | 23,191,055 | 104.25 | 101.15 | ||||||||||||||||||||
Thereafter | 78 | 3,710,841 | 30.19 | % | 216,996,399 | 58.48 | 66.67 | 41 | 6,260,870 | 58.35 | % | 408,849,478 | 65.30 | 82.30 | ||||||||||||||||||||
669 | 12,292,094 | 100.00 | % | $817,622,439 | $66.52 | $70.00 | 230 | 10,730,116 | 100.00 | % | $815,762,105 | $76.03 | $85.47 | |||||||||||||||||||||
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, 2019. | ||||||||||||||||||||||||||||||||||
(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, 2019. Taking rents are typically lower than asking rents and may vary from property to property. | ||||||||||||||||||||||||||||||||||
Supplemental Information | 41 | Second Quarter 2019 |
| ||
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 2019(1) | 6 | 34,263 | 1.78 | % | $1,410,315 | $41.16 | $37.34 | — | — | — | % | $— | $— | $— | ||||||||||||||||||||
2nd Quarter 2019(1) | 2 | 8,421 | 0.44 | % | 327,598 | 38.90 | 37.79 | — | — | — | % | — | — | — | ||||||||||||||||||||
3rd Quarter 2019 | 6 | 19,268 | 1.00 | % | 637,451 | 33.08 | 40.79 | — | — | — | % | — | — | — | ||||||||||||||||||||
4th Quarter 2019 | 6 | 175,173 | 9.08 | % | 5,389,403 | 30.77 | 27.98 | — | — | — | % | — | — | — | ||||||||||||||||||||
Total 2019 | 20 | 237,125 | 12.29 | % | $7,764,767 | $32.75 | $30.72 | — | — | — | % | $— | $— | $— | ||||||||||||||||||||
2020 | 41 | 206,784 | 10.71 | % | $7,297,005 | $35.29 | $36.86 | — | — | — | % | $— | $— | $— | ||||||||||||||||||||
2021 | 40 | 278,039 | 14.41 | % | 10,395,536 | 37.39 | 37.76 | — | — | — | % | — | — | — | ||||||||||||||||||||
2022 | 29 | 129,119 | 6.69 | % | 5,032,474 | 38.98 | 39.97 | — | — | — | % | — | — | — | ||||||||||||||||||||
2023 | 24 | 159,790 | 8.28 | % | 5,670,787 | 35.49 | 35.61 | — | — | — | % | — | — | — | ||||||||||||||||||||
2024 | 14 | 57,009 | 2.95 | % | 1,895,111 | 33.24 | 31.60 | — | — | — | % | — | — | — | ||||||||||||||||||||
2025 | 10 | 99,911 | 5.18 | % | 3,393,722 | 33.97 | 35.84 | — | — | — | % | — | — | — | ||||||||||||||||||||
2026 | 15 | 248,975 | 12.90 | % | 9,213,309 | 37.00 | 37.72 | — | — | — | % | — | — | — | ||||||||||||||||||||
2027 | 6 | 206,626 | 10.71 | % | 5,355,369 | 25.92 | 27.73 | — | — | — | % | — | — | — | ||||||||||||||||||||
2028 | 4 | 131,230 | 6.80 | % | 3,812,665 | 29.05 | 29.92 | — | — | — | % | — | — | — | ||||||||||||||||||||
Thereafter | 14 | 175,493 | 9.08 | % | 5,662,992 | 32.27 | 32.31 | — | — | — | % | — | — | — | ||||||||||||||||||||
217 | 1,930,101 | 100.00 | % | $65,493,737 | $33.93 | $34.38 | — | — | — | % | $— | $— | $— | |||||||||||||||||||||
(1) Includes month to month holdover tenants that expired prior to June 30, 2019. | ||||||||||||||||||||||||||||||||||
(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, 2019. Taking rents are typically lower than asking rents and may vary from property to property. | ||||||||||||||||||||||||||||||||||
Supplemental Information | 42 | Second Quarter 2019 |
| ||
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 | |||||||||||||||||||||||||||||||||||
2019 (1) | 2 | 9,900 | 3.02 | % | $3,982,165 | $402.24 | $330.76 | 2 | 5,805 | 2.20 | % | $290,917 | $50.11 | $163.38 | |||||||||||||||||||||
2020 | 2 | 6,601 | 2.02 | % | 861,976 | 130.58 | 226.58 | — | — | — | % | — | — | — | |||||||||||||||||||||
2021 | — | — | — | % | — | — | — | 1 | 11,432 | 4.33 | % | 4,003,809 | 350.23 | 159.06 | |||||||||||||||||||||
2022 | 1 | 1,165 | 0.36 | % | 209,556 | 179.88 | 299.00 | 2 | 50,808 | 19.23 | % | 26,061,795 | 512.95 | 510.78 | |||||||||||||||||||||
2023 | 3 | 9,825 | 3.00 | % | 1,174,236 | 119.52 | 138.76 | 2 | 7,131 | 2.70 | % | 1,639,404 | 229.90 | 350.00 | |||||||||||||||||||||
2024 | 4 | 74,286 | 22.68 | % | 17,965,132 | 241.84 | 245.75 | 1 | 7,793 | 2.95 | % | 5,673,276 | 728.00 | 898.00 | |||||||||||||||||||||
2025 | 3 | 33,944 | 10.36 | % | 968,940 | 28.55 | 24.15 | — | — | — | % | — | — | — | |||||||||||||||||||||
2026 | 1 | 5,218 | 1.59 | % | 3,605,952 | 691.06 | 537.00 | 3 | 69,206 | 26.20 | % | 26,754,949 | 386.60 | 372.53 | |||||||||||||||||||||
2027 | 1 | 1,358 | 0.41 | % | 129,084 | 95.05 | 96.00 | 1 | 3,655 | 1.38 | % | 692,879 | 189.57 | 158.00 | |||||||||||||||||||||
2028 | 1 | 10,040 | 3.07 | % | 4,100,004 | 408.37 | 408.37 | — | — | — | % | — | — | — | |||||||||||||||||||||
Thereafter | 4 | 175,191 | 53.49 | % | 10,777,436 | 61.52 | 70.84 | 3 | 108,328 | 41.01 | % | 57,127,663 | 527.36 | 532.79 | |||||||||||||||||||||
22 | 327,528 | 100.00 | % | $43,774,481 | $133.65 | $137.40 | 15 | 264,158 | 100.00 | % | $122,244,692 | $462.77 | $462.93 | ||||||||||||||||||||||
Vacancy (5) | 5,928 | 623.53 | — | — | |||||||||||||||||||||||||||||||
333,456 | $146.04 | 264,158 | $462.93 | ||||||||||||||||||||||||||||||||
Other Retail | |||||||||||||||||||||||||||||||||||
2019 (1) | — | — | — | % | $— | $— | $— | 1 | 6,000 | 1.23 | % | $221,719 | $36.95 | $359.48 | |||||||||||||||||||||
2020 | 6 | 11,565 | 1.91 | % | 2,553,813 | 220.82 | 407.00 | 4 | 57,984 | 11.91 | % | 3,399,435 | 58.63 | 121.28 | |||||||||||||||||||||
2021 | 11 | 23,069 | 3.80 | % | 2,979,987 | 129.18 | 162.89 | 5 | 5,995 | 1.23 | % | 572,167 | 95.44 | 118.81 | |||||||||||||||||||||
2022 | 10 | 121,564 | 20.04 | % | 14,023,036 | 115.36 | 153.74 | 10 | 85,094 | 17.47 | % | 20,938,227 | 246.06 | 276.40 | |||||||||||||||||||||
2023 | 8 | 35,519 | 5.85 | % | 5,548,235 | 156.20 | 154.68 | 6 | 24,613 | 5.05 | % | 2,967,278 | 120.56 | 139.50 | |||||||||||||||||||||
2024 | 6 | 27,730 | 4.57 | % | 4,979,386 | 179.57 | 158.17 | 6 | 15,829 | 3.25 | % | 3,438,033 | 217.20 | 210.72 | |||||||||||||||||||||
2025 | 8 | 28,753 | 4.74 | % | 7,578,539 | 263.57 | 274.00 | 2 | 946 | 0.19 | % | 223,165 | 235.90 | 213.60 | |||||||||||||||||||||
2026 | 5 | 12,677 | 2.09 | % | 1,605,724 | 126.66 | 120.24 | 6 | 24,573 | 5.05 | % | 9,818,718 | 399.57 | 393.83 | |||||||||||||||||||||
2027 | 9 | 38,177 | 6.29 | % | 5,328,122 | 139.56 | 155.74 | 7 | 22,008 | 4.52 | % | 11,085,848 | 503.72 | 542.77 | |||||||||||||||||||||
2028 | 9 | 36,611 | 6.03 | % | 4,909,972 | 134.11 | 152.17 | 8 | 20,155 | 4.14 | % | 4,084,953 | 202.68 | 195.68 | |||||||||||||||||||||
Thereafter | 32 | 271,017 | 44.68 | % | 37,728,182 | 139.21 | 142.61 | 15 | 223,808 | 45.96 | % | 16,151,205 | 72.17 | 75.36 | |||||||||||||||||||||
104 | 606,682 | 100.00 | % | $87,234,996 | $143.79 | $159.23 | 70 | 487,005 | 100.00 | % | $72,900,748 | $149.69 | $170.07 | ||||||||||||||||||||||
Vacancy (5) | 28,165 | 380.67 | 43,185 | 232.17 | |||||||||||||||||||||||||||||||
634,847 | $169.05 | 530,190 | $175.13 | ||||||||||||||||||||||||||||||||
(1) Includes month to month holdover tenants that expired prior to June 30, 2019. | |||||||||||||||||||||||||||||||||||
(2) Tenants may have multiple leases. | |||||||||||||||||||||||||||||||||||
(3) Represents in place annualized rent allocated by year of expiration. | |||||||||||||||||||||||||||||||||||
(4) Management's estimate of average asking rents for currently occupied space as of June 30, 2019. Taking rents are typically lower than asking rents and may vary from property to property. | |||||||||||||||||||||||||||||||||||
(5) Includes square footage of leases signed but not yet commenced. | |||||||||||||||||||||||||||||||||||
Supplemental Information | 43 | Second Quarter 2019 |
| ||
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Manhattan Unaudited (Dollars in Thousands) | | |
| ||
Gross Asset | Occupancy (%) | ||||||||||||||||
Property | Submarket | Interest Acquired | Type of Ownership | Net Rentable SF | Valuation ($'s) (1) | at acquisition | 6/30/2019 | ||||||||||
1998 - 2018 Acquisitions | |||||||||||||||||
Mar-98 | 420 Lexington Avenue | Grand Central | 100.0% | Operating Sublease | 1,188,000 | $ | 78,000 | 83.0 | 93.0 | ||||||||
May-98 | 711 3rd Avenue | Grand Central | 100.0 | Operating Sublease | 524,000 | 65,600 | 79.0 | 97.0 | |||||||||
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 | 78.6 | |||||||||
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 | 94.9 | |||||||||
Feb-03 | 220 East 42nd Street | Grand Central | 100.0 | Fee Interest | 1,135,000 | 265,000 | 91.9 | 90.9 | |||||||||
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 | 82.2 | |||||||||
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 | 92.7 | |||||||||
Jul-04 | 485 Lexington Avenue | Grand Central | 30.0 | Fee Interest | 921,000 | 225,000 | 100.0 | 84.2 | |||||||||
Oct-04 | 625 Madison Avenue | Plaza District | 100.0 | Leasehold Interest | 563,000 | 231,500 | 68.0 | 97.1 | |||||||||
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 | N/A | |||||||||
Jun-06 | 609 Fifth Avenue | Midtown | 100.0 | Fee Interest | 160,000 | 182,000 | 98.5 | 96.0 | |||||||||
Dec-06 | 485 Lexington Avenue | Grand Central | 70.0 | Fee Interest | — | 578,000 | 84.2 | ||||||||||
Dec-06 | 800 Third Avenue | Grand Central North | 43.0 | Fee Interest | 526,000 | 285,000 | 96.9 | 91.9 | |||||||||
Jan-07 | Reckson - NYC Portfolio | Various | 100.0 | Fee Interests / Leasehold Interest | 5,612,000 | 3,679,530 | 98.3 | 95.5 | |||||||||
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 | 99.3 | |||||||||
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 | 95.5 | |||||||||
Jan-11 | 521 Fifth Avenue | Midtown | 49.9 | Leasehold Interest | 460,000 | 245,700 | 80.7 | N/A | |||||||||
Apr-11 | 1515 Broadway | Times Square | 45.0 | Fee Interest | 1,750,000 | 1,210,000 | 98.5 | 94.9 | |||||||||
May-11 | 110 East 42nd Street | Grand Central | 100.0 | Fee Interest | 205,000 | 85,570 | 72.6 | 84.0 | |||||||||
May-11 | 280 Park Avenue | Park Avenue | 49.5 | Fee Interest | 1,219,158 | 1,110,000 | 78.2 | 91.1 | |||||||||
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 | 95.4 | |||||||||
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 | 93.3 | |||||||||
Aug-15 | 30 East 40th Street | Grand Central South | 60.0 | Leasehold Interest | 69,446 | 4,650 | 100.0 | 93.9 | |||||||||
Aug-15 | 11 Madison Avenue | Park Avenue South | 100.0 | Fee Interest | 2,314,000 | 2,285,000 | 71.6 | 95.7 | |||||||||
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 | 96.8 | |||||||||
May-18 | 2 Herald Square | Herald Square | 100.0 | Leasehold Interest | 369,000 | 266,000 | 81.6 | 73.6 | |||||||||
43,502,923 | $ | 23,690,130 | |||||||||||||||
2019 Acquisitions | |||||||||||||||||
May-19 | 110 Greene Street | Soho | 10.0% | Leasehold Interest | 223,600 | $ | 256,500 | 93.3 | 93.3 | ||||||||
223,600 | $ | 256,500 | |||||||||||||||
(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties. | |||||||||||||||||
Supplemental Information | 44 | Second Quarter 2019 |
| ||
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 - 2018 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 | |||||||||||||||
Jun-16 | 388 & 390 Greenwich Street | Downtown | 1.0 | Fee Interest | 2,635,000 | 2,000,000 | 759 | |||||||||||||||
Aug-16 | 11 Madison Avenue | Park Avenue South | 0.4 | Fee Interest | 2,314,000 | 2,600,000 | 1,124 | |||||||||||||||
Nov-17 | 1515 Broadway | Times Square | 0.3 | Fee Interest | 1,750,000 | 1,950,000 | 1,114 | |||||||||||||||
Jan-18 | 600 Lexington Avenue | Grand Central North | 1.0 | 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 | 56.9 | Leasehold Interest | 674,000 | 633,000 | 939 | |||||||||||||||
Nov-18 | 3 Columbus Circle | Columbus Circle | 48.9 | Fee Interest | 530,981 | 851,000 | 1,603 | |||||||||||||||
Nov-18 | 2 Herald Square | Herald Square | 49.0 | Leasehold Interest | 369,000 | 265,000 | 718 | |||||||||||||||
26,505,219 | $ | 17,513,650 | $ | 661 | ||||||||||||||||||
2019 Sales | ||||||||||||||||||||||
May-19 | 521 Fifth Avenue | Grand Central | 50.5% | Fee Interest | 460,000 | $ | 381,000 | $ | 828 | |||||||||||||
460,000 | $ | 381,000 | $ | 828 | ||||||||||||||||||
Supplemental Information | 45 | Second Quarter 2019 |
| ||
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 | 6/30/2019 | ||||||||||
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 | 85.8 | |||||||||
Jan-07 | Reckson - Westchester Portfolio | Westchester | 100.0 | Fee Interests / Leasehold Interest | 2,346,100 | 570,190 | 90.6 | 94.4 | |||||||||
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 | 87.0 | |||||||||
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 | 51.0 | Fee Interest | 133,000 | 42,011 | 316 | |||||||||||||||
Jul-17 | 750 Washington Avenue | Stamford, Connecticut | 51.0 | 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 | |||||||||||||||
Jul-18 | 1-6 International Drive | Rye Brook, New York | 100.0 | Fee Interest | 540,000 | 55,000 | 102 | |||||||||||||||
1,358,000 | $ | 184,400 | $ | 136 | ||||||||||||||||||
(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties. | ||||||||||||||||||||||
Supplemental Information | 46 | Second Quarter 2019 |
| ||
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Retail, Residential, and Development / Redevelopment Unaudited (Dollars in Thousands) | | |
| ||
Gross Asset | Occupancy (%) | ||||||||||||||||
Property | Submarket | Interest Acquired | Type of Ownership | Net Rentable SF | Valuation ($'s) (1) | at acquisition | 6/30/2019 | ||||||||||
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 | 94.5 | |||||||||
Aug-11 | 1552-1560 Broadway | Times Square | 50.0 | Fee Interest | 35,897 | 136,550 | 59.7 | 88.3 | |||||||||
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 | 90.9 | |||||||||
Jan-12 | 724 Fifth Avenue | Plaza District | 50.0 | Fee Interest | 65,010 | 223,000 | 92.9 | N/A | |||||||||
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 | 92.7 | |||||||||
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 | N/A | |||||||||
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 | 97.7 | |||||||||
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 | 100.0 | |||||||||
Jul-14 | 115 Spring Street | Soho | 100.0 | Fee Interest | 5,218 | 52,000 | 100.0 | 100.0 | |||||||||
Jul-14 | 752-760 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 | N/A | |||||||||
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 | — | 86.5 | |||||||||
Feb-15 | Stonehenge Portfolio | 100.0 | Fee Interest | 2,589,184 | 40,000 | 96.5 | 96.1 | ||||||||||
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 | N/A | |||||||||
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 | — | 93.5 | |||||||||
936,458 | $ | 787,546 | |||||||||||||||
2018 Acquisitions | |||||||||||||||||
Jul-18 | 1231 Third Avenue | Upper East Side | 100.0% | Fee Interest | 38,992 | $ | 55,355 | 100.0 | N/A | ||||||||
Oct-18 | 133 Greene Street | Soho | 100.0 | Fee Interest | 6,425 | 30,999 | 100.0 | 100.0 | |||||||||
Dec-18 | 712 Madison Avenue | Plaza District | 100.0 | Fee Interest | 6,600 | 57,996 | 100.0 | 100.0 | |||||||||
52,017 | $ | 144,350 | |||||||||||||||
2019 Acquisitions | |||||||||||||||||
Apr-19 | 106 Spring Street | Soho | 100.0% | Fee Interest | 5,928 | $ | 80,150 | — | — | ||||||||
May-19 | 460 West 34th Street | Hudson Yards | 70.9 | Fee Interest | 638,000 | 440,000 | 76.3 | 76.3 | |||||||||
643,928 | $ | 520,150 | |||||||||||||||
(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 | 47 | Second Quarter 2019 |
| ||
SUMMARY OF REAL ESTATE SALES ACTIVITY Retail, Residential, and Development / Redevelopment 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 | |||||||||||||||
Jul-18 | 724 Fifth Avenue | Plaza District | 50.0 | Fee Interest | 65,010 | 365,000 | 5,615 | |||||||||||||||
Oct-18 | 72nd Street Assemblage & 1231 Third Avenue | Upper East Side | Various | Fee Interest | — | 143,800 | — | |||||||||||||||
241,540 | $ | 776,800 | $ | 3,216 | ||||||||||||||||||
2019 Sales | ||||||||||||||||||||||
Jan-19 | 131-137 Spring Street | Soho | 20.0 | Fee Interest | 68,342 | 216,000 | 3,161 | |||||||||||||||
68,342 | $ | 216,000 | $ | 3,161 | ||||||||||||||||||
(1) Inclusive of the fee position which was acquired simultaneously with the sale pursuant to an option. | ||||||||||||||||||||||
Supplemental Information | 48 | Second Quarter 2019 |
| ||
EXECUTIVE MANAGEMENT | | |
| ||
Marc Holliday | Edward V. Piccinich |
Chairman and Chief Executive Officer | Chief Operating Officer |
Andrew Mathias | Neil H. Kessner |
President | Executive Vice President, General |
Counsel - Real Property | |
Matthew J. DiLiberto | |
Chief Financial Officer | David M. Schonbraun |
Co-Chief Investment Officer | |
Andrew S. Levine | |
Chief Legal Officer | Isaac Zion |
Co-Chief Investment Officer | |
Steven M. Durels | |
Executive Vice President, Director of | Maggie Hui |
Leasing and Real Property | Chief Accounting Officer |
Supplemental Information | 49 | Second Quarter 2019 |
| ||
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 operating lease 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 also a non-GAAP financial measure that is calculated by subtracting free rent (net of amortization), straight-line rent, and amortization of acquired above and below-market leases, net from NOI, while adding operating 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.
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 operating lease 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).
Supplemental Information | 50 | Second Quarter 2019 |
| ||
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) | | |
| ||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Funds From Operations (FFO) Reconciliation
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income attributable to SL Green common stockholders | $ | 161,103 | $ | 103,556 | $ | 204,895 | $ | 205,322 | |||||||
Add: | |||||||||||||||
Depreciation and amortization | 69,461 | 67,914 | 137,804 | 137,302 | |||||||||||
Joint venture depreciation and noncontrolling interest adjustments | 49,903 | 47,308 | 97,528 | 95,314 | |||||||||||
Net income attributable to noncontrolling interests | 6,172 | 5,759 | 8,687 | 11,229 | |||||||||||
Less: | |||||||||||||||
(Loss) gain on sale of real estate, net | — | (14,790 | ) | (1,049 | ) | 8,731 | |||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 59,015 | 72,025 | 76,181 | 65,585 | |||||||||||
Purchase price and other fair value adjustment | 67,631 | 11,149 | 65,590 | (11,149 | ) | ||||||||||
Depreciation on non-rental real estate assets | 746 | 584 | 1,453 | 1,150 | |||||||||||
FFO attributable to SL Green common stockholders and noncontrolling interests | $ | 159,247 | $ | 155,569 | $ | 306,739 | $ | 313,259 | |||||||
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)
As of or for the three months ended | |||||||||||||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||
Net income (loss) | $ | 173,741 | $ | 52,769 | $ | (58,320 | ) | $ | 99,454 | $ | 115,899 | ||||||||
Interest expense, net of interest income | 47,160 | 50,525 | 51,974 | 55,168 | 53,611 | ||||||||||||||
Amortization of deferred financing costs | 2,712 | 2,742 | 2,695 | 2,630 | 3,546 | ||||||||||||||
Income taxes | 680 | 770 | 964 | 168 | 1,092 | ||||||||||||||
Depreciation and amortization | 69,461 | 68,343 | 71,458 | 70,747 | 67,914 | ||||||||||||||
Loss on sale of real estate | — | 1,049 | 36,984 | 2,504 | 14,790 | ||||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | (59,015 | ) | (17,166 | ) | (167,445 | ) | (70,937 | ) | (72,025 | ) | |||||||||
Purchase price and other fair value adjustments | (67,631 | ) | 2,041 | — | 3,057 | (11,149 | ) | ||||||||||||
Depreciable real estate reserve | — | — | 220,852 | 6,691 | — | ||||||||||||||
Adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates | 88,159 | 89,160 | 85,786 | 82,060 | 86,089 | ||||||||||||||
EBITDAre | $ | 255,267 | $ | 250,233 | $ | 244,948 | $ | 251,542 | $ | 259,767 | |||||||||
Supplemental Information | 51 | Second Quarter 2019 |
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Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) | | |
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - Operating income and Same-store NOI Reconciliation
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 173,741 | $ | 115,899 | $ | 226,510 | $ | 229,722 | |||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | (59,015 | ) | (72,025 | ) | (76,181 | ) | (65,585 | ) | |||||||
Purchase price and other fair value adjustments | (67,631 | ) | (11,149 | ) | (65,590 | ) | (60,442 | ) | |||||||
Loss (gain) on sale of real estate, net | — | 14,790 | 1,049 | (8,731 | ) | ||||||||||
Depreciation and amortization | 69,461 | 67,914 | 137,804 | 137,302 | |||||||||||
Interest expense, net of interest income | 47,160 | 53,611 | 97,685 | 101,527 | |||||||||||
Amortization of deferred financing costs | 2,712 | 3,546 | 5,454 | 7,083 | |||||||||||
Operating income | 166,428 | 172,586 | 326,731 | 340,876 | |||||||||||
Equity in net loss (income) from unconsolidated joint ventures | 7,546 | (4,702 | ) | 12,780 | (8,738 | ) | |||||||||
Marketing, general and administrative expense | 25,480 | 22,479 | 51,459 | 46,007 | |||||||||||
Transaction related costs, net | 261 | 348 | 316 | 510 | |||||||||||
Investment income | (51,618 | ) | (49,273 | ) | (101,649 | ) | (94,563 | ) | |||||||
Non-building revenue | (7,268 | ) | (9,397 | ) | (16,413 | ) | (14,176 | ) | |||||||
Net operating income (NOI) | 140,829 | 132,041 | 273,224 | 269,916 | |||||||||||
Equity in net (loss) income from unconsolidated joint ventures | (7,546 | ) | 4,702 | (12,780 | ) | 8,738 | |||||||||
SLG share of unconsolidated JV depreciation and amortization | 48,176 | 47,565 | 96,304 | 95,184 | |||||||||||
SLG share of unconsolidated JV interest expense, net of interest income | 38,281 | 36,670 | 77,688 | 72,450 | |||||||||||
SLG share of unconsolidated JV amortization of deferred financing costs | 1,591 | 1,752 | 3,159 | 3,425 | |||||||||||
SLG share of unconsolidated JV investment income | (476 | ) | (1,708 | ) | (2,703 | ) | (4,794 | ) | |||||||
SLG share of unconsolidated JV non-building revenue | (1,215 | ) | (1,147 | ) | (1,926 | ) | (2,148 | ) | |||||||
NOI including SLG share of unconsolidated JVs | 219,640 | 219,875 | 432,966 | 442,771 | |||||||||||
NOI from other properties/affiliates | (7,951 | ) | (14,705 | ) | (17,493 | ) | (35,586 | ) | |||||||
Same-Store NOI | 211,689 | 205,170 | 415,473 | 407,185 | |||||||||||
Operating lease straight-line adjustment | 514 | 524 | 1,028 | 1,048 | |||||||||||
Joint Venture operating lease straight-line adjustment | 208 | 258 | 465 | 516 | |||||||||||
Straight-line and free rent | (3,487 | ) | (1,482 | ) | (3,563 | ) | (3,580 | ) | |||||||
Amortization of acquired above and below-market leases, net | (922 | ) | (1,238 | ) | (1,868 | ) | (2,921 | ) | |||||||
Joint Venture straight-line and free rent | (14,641 | ) | (4,972 | ) | (30,027 | ) | (11,099 | ) | |||||||
Joint Venture amortization of acquired above and below-market leases, net | (4,248 | ) | (3,815 | ) | (8,510 | ) | (7,550 | ) | |||||||
Same-store cash NOI | $ | 189,113 | $ | 194,445 | $ | 372,998 | $ | 383,599 | |||||||
Supplemental Information | 52 | Second Quarter 2019 |
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SELL-SIDE ANALYST COVERAGE | | |
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EQUITY COVERAGE | |||
Firm | Analyst | Phone | Email |
Bank of America - Merrill Lynch | James C. Feldman | (646) 855-5808 | james.feldman@baml.com |
Barclays Capital | Ross Smotrich | (212) 526-2306 | ross.smotrich@barcap.com |
BMO Capital Markets Corp. | John P. Kim | (212) 885-4115 | jp.kim@bmo.com |
BTIG | James Sullivan | (212) 738-6139 | jsullivan@btig.com |
Citigroup | Michael Bilerman | (212) 816-1383 | michael.bilerman@citigroup.com |
Deutsche Bank | Derek Johnston | (904) 520-4973 | derek.johnston@db.com |
Green Street Advisors | Daniel Ismail | (949) 640-8780 | dismail@greenstreetadvisors.com |
Evercore ISI | Steve Sakwa | (212) 446-9462 | ssakwa@isigrp.com |
Jefferies & Company | Jonathan Peterson | (212) 284-2300 | jpeterson@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 |
Scotiabank | Nick Yulico | (212) 225 6904 | nicholas.yulico@scotiabank.com |
Stifel Nicolaus | John Guinee | (443) 224-1307 | jwguinee@stifel.com |
SunTrust Robinson Humphrey | Michael Lewis | (404) 926-5000 | michael.lewis@suntrust.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 |
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 | 53 | Second Quarter 2019 |