slg-20210127
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K


CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

January 27, 2021

SL GREEN REALTY CORP.
(Exact name of registrant as specified in its charter)


Maryland
(State of Incorporation)

1-1319913-3956775
(Commission File Number)       (I.R.S. employer identification 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))
Securities registered pursuant to Section 12(b) of the Act:
RegistrantTrading SymbolTitle of Each ClassName of Each Exchange on Which Registered
SL Green Realty Corp.SLGCommon Stock, $0.01 par valueNew York Stock Exchange
SL Green Realty Corp.SLG.PRI6.500% Series I Cumulative Redeemable Preferred Stock, $0.01 par valueNew York Stock Exchange




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 January 27, 2021 announcing SL Green Realty Corp.’s, or the Company, results for the quarter ended December 31, 2020, 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 January 27, 2021, the Company issued a press release announcing its results for the quarter ended December 31, 2020.

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

Item 9.01.    Financial Statements and Exhibits

(d)     Exhibits

    99.1    Press release regarding results for the quarter ended December 31, 2020.
    99.2    Supplemental package.

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 the Company's 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 pro-rata adjustments from the Company's unconsolidated JVs, 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 the amortization of acquired above and below-market leases 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 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 the Company's 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: January 28, 2021



Document
Exhibit 99.1

CONTACT                        
Matt DiLiberto
Chief Financial Officer
(212) 594-2700

SL GREEN REALTY CORP. REPORTS
FOURTH QUARTER 2020 EPS OF $2.41 PER SHARE;
AND FFO OF $1.56 PER SHARE


Financial and Operating Highlights
Net income attributable to common stockholders of $2.41 per share for the fourth quarter of 2020 and of $4.87 for the full year as compared to $0.22 and $3.19 per share for the same periods in 2019.
Funds from operations, or FFO, of $1.56 per share for the fourth quarter of 2020 and $7.11 per share for the full year, excluding the accounting impact of the Company's reverse stock split in January 2021, as compared to $1.75 and $7.00 per share for the same periods in the prior year. FFO for the fourth quarter and the full year of 2020 includes $8.3 million, or $0.11 per share, and $35.3 million, or $0.45 per share, of losses on certain debt and preferred equity ("DPE") investments that were sold and reserves against retained investments.
Announced an increase to the size of the Company's share repurchase program by an additional $500 million, bringing the program to a total of $3.5 billion. To date, the Company has repurchased a total of 32.4 million shares of its common stock under the program and redeemed 1.1 million common units of its Operating Partnership, or OP units.
Increased the annual ordinary cash dividend by 2.8%, to $3.64 per share and issued a special stock dividend with a value of $1.6967 per share.
Signed 27 Manhattan office leases covering 463,927 square feet in the fourth quarter of 2020 and 125 Manhattan office leases covering 1,247,552 square feet for the full year. The mark-to-market on signed Manhattan office leases was 11.9% lower for the fourth quarter and 3.6% lower for the full year of 2020 than the previous fully escalated rents on the same spaces.
To date, the Company has collected gross tenant billings, including rent and other billable expenses for the full year of 2020, as follows:
OfficeRetail
Overall (1)
97.9%80.8%94.8%
(1) Includes garage, suburban and residential properties
Same-store cash net operating income, or NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 5.9% for




the fourth quarter of 2020 and increased 4.6% for the full year as compared to the same periods in 2019. Excluding lease termination income and free rent to Viacom at 1515 Broadway, same-store cash NOI decreased 5.4% for the fourth quarter of 2020 and 1.6% for the full year.
Manhattan same-store office occupancy was 93.4% as of December 31, 2020, inclusive of leases signed but not yet commenced, as compared to 94.2% at the end of the previous quarter.
Investing Highlights
Together with its partners, closed on the sale of 410 Tenth Avenue for gross consideration of $952.5 million. The transaction generated net cash proceeds to the Company, which owned 70.9% of the venture, of $206.5 million and the Company recognized a gain of $41.3 million. These amounts exclude the net cash proceeds that will be recognized upon the sale of a retained 5.0% interest, which will be held through completion of the property's redevelopment.
Closed on the sale of two retail condominiums in Williamsburg, Brooklyn, for a gross sales price of $32.0 million. The transaction generated net cash proceeds to the Company of $29.6 million and the Company recognized a gain of $12.6 million.
Closed on the sale of 1055 Washington Boulevard in Stamford, Connecticut for a gross sales price of $23.8 million. The transaction generated net cash proceeds to the Company of $22.4 million.
Closed on the sale of 712 Madison Avenue for a gross sales price of $43.0 million, pursuant to the exercise of a purchase option by the ground lessee of the property. The transaction generated net cash proceeds to the Company of $14.2 million.
Financing Highlights
Together with our joint venture partners, closed on a new $1.25 billion construction facility for One Madison Avenue. The facility has a term of up to 6 years and bears interest at a floating rate of 3.35% over LIBOR, with the ability to reduce the spread to as low as 3.00% upon achieving certain pre-leasing and completion milestones.
Together with our joint venture partner, closed on the early refinancing of 100 Park Avenue. The new $360.0 million mortgage has a term of up to 5 years and bears interest at a floating rate of 2.25% over LIBOR.
Summary
New York, NY, January 27, 2021 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended December 31, 2020 of $171.0 million, or $2.41 per share, as compared to net income of $17.4 million, or $0.22 per share, for the same quarter in 2019.
The Company also reported net income attributable to common stockholders for the year ended December 31, 2020 of $356.1 million, or $4.87 per share, as compared to net income of $255.5 million, or $3.19 per share, for the year ended December 31, 2019.




The Company reported FFO for the quarter ended December 31, 2020 of $119.2 million, or $1.56 per share, excluding the accounting impact of the Company's reverse stock split in January 2021, as compared to FFO for the same period of 2019 of $147.6 million, or $1.75 per share. FFO for the fourth quarter includes $8.3 million, or $0.11 per share, of losses related to certain debt and preferred equity investments that were sold and reserves against retained DPE positions.
The Company also reported FFO for the year ended December 31, 2020 of $562.7 million, or $7.11 per share, excluding the accounting impact of the Company's reverse stock split in January 2021, as compared to FFO for the year ended December 31, 2019 of $605.7 million, or $7.00 per share. FFO for the full year of 2020 includes $35.3 million, or $0.45 per share, of losses related to certain debt and preferred equity investments that were sold and reserves against retained DPE positions.
All per share amounts are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended December 31, 2020, the Company reported consolidated revenues and operating income of $234.9 million and $97.8 million, respectively, compared to $308.1 million and $155.4 million, respectively, for the same period in 2019.
To date, the Company has collected gross tenant billings, including rent and other billable expenses for the full year of 2020, as follows:
OfficeRetail
Overall (1)
97.9%80.8%94.8%
(1) Includes garage, suburban and residential properties
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures decreased by 5.9% for the fourth quarter of 2020, and decreased 5.4% excluding lease termination income and free rent to Viacom at 1515 Broadway, as compared to the same period in 2019.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 4.6% for the year ended December 31, 2020, and decreased 1.6% excluding lease termination income and free rent given to Viacom at 1515 Broadway, as compared to the year ended December 31, 2019.
During the fourth quarter of 2020, the Company signed 27 office leases in its Manhattan portfolio totaling 463,927 square feet. Twenty leases comprising 357,567 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 $60.52 per rentable square foot, representing an 11.9% decrease over the previous fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the fourth quarter of 2020 was 6.6 years and average tenant concessions were 4.3 months of free rent with a tenant improvement allowance of $36.51 per rentable square foot.
During the year ended December 31, 2020, the Company signed 125 office leases in its Manhattan portfolio totaling 1,247,552 square feet. Ninety-seven leases comprising 899,018 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is




calculated. Those replacement leases had average starting rents of $66.57 per rentable square foot, representing a 3.6% decrease over the previously fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the year ended December 31, 2020 was 6.9 years and average tenant concessions were 3.8 months of free rent with a tenant improvement allowance of $25.43 per rentable square foot.

Occupancy in the Company's Manhattan same-store office portfolio was 93.4% as of December 31, 2020, inclusive of 248,577 square feet of leases signed but not yet commenced, as compared to 94.2% at the end of the previous quarter.
Significant leases that were signed in the fourth quarter included:
Early Renewal with Travelers Indemnity Company for 133,479 square feet at 485 Lexington Avenue, for 5.0 years;
New lease with Heidrick & Struggles International, Inc for 36,031 square feet at One Vanderbilt Avenue, for 12.0 years;
Early Renewal with Cohen & Gresser LLP for 33,900 square feet at 800 Third Avenue, for 10.0 years;
Renewal with Reitler, Kailas & Rosenblatt for 32,364 square feet at 885 Third Avenue, for 13.2 years;
New lease with a financial services firm for 26,770 square feet at One Vanderbilt Avenue, for 15.7 years;
Early Renewal with Napier Global Capital (US) LP for 25,224 square feet at 280 Park Avenue, for 7.3 years;
New lease with RSC Insurance Brokerage, Inc. for 24,515 square feet at 750 Third Avenue, for 16.0 years; and
New retail lease with 1Life Healthcare, Inc. d/b/a One Medical for 4,924 square feet at One Vanderbilt Avenue, for 15.0 years
Investment Activity
In December, the Company announced that its Board of Directors authorized a $500 million increase to the size of its share repurchase program, bringing the program to a total of $3.5 billion. To date, the Company has repurchased a total of 32.4 million shares of its common stock under the program and redeemed 1.1 million OP units.
In January, the Company closed on the sale of 712 Madison Avenue for a gross sales price of $43.0 million, pursuant to the exercise of a purchase option by the ground lessee of the property. The transaction generated net cash proceeds to the Company of $14.2 million.
In December, together with its joint venture partners, the Company closed on the sale of 410 Tenth Avenue, the 636,000-square-foot Manhattan office redevelopment anchored by Amazon and First Republic Bank, for gross consideration of $952.5 million. The transaction generated net cash proceeds to the Company, which owned 70.9% of the venture, of $206.5 million and the Company recognized a gain of $41.3 million. These




amounts exclude the net cash proceeds that will be recognized upon the sale of a retained 5.0% interest, which will be held through completion of the property's redevelopment.
In December, the Company closed on the sale of two retail condominiums in Williamsburg, Brooklyn, for a gross sales price of $32.0 million. The Company acquired the condominiums, which span a combined 52,000-square-feet, in 2010. The transaction generated net cash proceeds to the Company of $29.6 million and the Company recognized a gain of $12.6 million.
In December, the Company closed on the sale of its 60% interest in the leasehold at 30 East 40th street to its joint venture partner. The transaction generated net cash proceeds to the Company of $4.4 million.

In November, the Company closed on the sale of 1055 Washington Boulevard in Stamford, Connecticut for a sales price of $23.8 million. The transaction generated net cash proceeds to the Company of $22.4 million.
In October, the Company acquired 590 Fifth Avenue. The 103,244 square foot office building with ground floor retail is located on the revived lower Fifth Avenue corridor, between 47th and 48th Streets, steps from Saks Fifth Avenue & new retail flagships for Lululemon & Puma.
In October, the Company acquired a 36.27% interest in the retail Co-Op at 85 Fifth Avenue. The 12,946 space is located in the heart of Union Square in Manhattan on the corner of Fifth Avenue and 16th Street.
The properties at 590 Fifth Avenue and 85 Fifth Avenue previously served as collateral for debt and preferred equity investments and were acquired through negotiated transactions with the respective sponsors of each investment.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s DPE portfolio decreased to $1.11 billion at December 31, 2020. The portfolio is comprised of $1.08 billion of investments at a weighted average current yield of 6.8%, or 8.37% excluding the effect of $232.1 million of investments that are on non-accrual, that are classified in the debt and preferred equity line item on the balance sheet, and mortgage investments aggregating $0.03 billion at a weighted average current yield of 3.6% that are included in other balance sheet line items for accounting purposes.
During the fourth quarter, the Company generated $59.3 million of cash through the sale of one DPE position.
Financing Activity
In November, the Company, along with its joint venture partners, closed on a $1.25 billion construction facility for One Madison Avenue, the Company’s 1.4 million square foot, full block office redevelopment adjacent to Madison Square Park. The facility, which was led by Wells Fargo, TD Bank, Goldman Sachs, Bank of America, Deutsche Bank and Axos Bank, has a term of up to 6 years and bears interest at a floating interest rate of 3.35% over LIBOR, with the ability to reduce the spread to as low as 3.00% upon achieving certain pre-leasing and completion milestones.




In December, the Company, along with its joint venture partner, closed on the early refinancing of 100 Park Avenue. The new $360.0 million mortgage has a term of up to 5 years, as extended, bears interest at a floating rate of 2.25% over LIBOR and replaces the previous $353.1 million of indebtedness on the property that was scheduled to mature in February 2021.
In January, the Company entered into $800 million of fixed rate interest swaps against floating rate corporate debt. The swaps have terms of between one and two years with a weighted average interest rate of 0.1578%.
Dividends
In the fourth quarter of 2020, the Company declared:
Two monthly dividends on its outstanding common stock of $0.295 per share which were paid on November 16 and December 15, 2020, and one monthly dividend of $0.3033 per share which was paid on January 15, 2021. The increased dividend represents a 2.8% increase to the Company's ordinary dividend equating to an annualized dividend of $3.64 per share of common stock;
A special dividend with a value of $1.6967 per share, which was paid on January 15, 2021. The special dividend was paid in the form of common stock of the Company. To mitigate the dilutive impact of the stock issued for the special dividend, the board of directors also authorized a reverse stock split, which was effective on January 20, 2021. The split ratio for the reverse stock split was 1.02918-for-1.
Quarterly dividends on its outstanding 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share for the period October 15, 2020 through and including January 14, 2021, which was paid on January 15, 2021 and 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, January 28, 2021 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 conference ID 6387248.
A replay of the call will be available for 7 days after the call by dialing (855) 859-2056 using conference ID 3497478. 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 Manhattan'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 December 31, 2020, SL Green held interests in 88 buildings totaling 38.2 million square feet. This included ownership interests in 28.6 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.
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 investor.relations@slgreen.com.





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, including the statements herein under the section entitled "Guidance". 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 include risks and uncertainties related to the on-going COVID-19 pandemic and the duration and impact it will have on our business and the industry as a whole and the other risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, 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 EndedTwelve Months Ended
December 31,December 31,
Revenues:2020201920202019
Rental revenue, net$165,243 $218,495 $708,383 $863,061 
Escalation and reimbursement 25,148 31,957 96,040 120,496 
Investment income18,699 42,423 120,163 195,590 
Other income25,808 15,207 128,158 59,848 
        Total revenues234,898 308,082 1,052,744 1,238,995 
Expenses:
Operating expenses, including related party expenses of $3,354 and $12,643 in 2020 and $4,531 and $18,106 in 201942,527 58,814 183,200 234,676 
Real estate taxes44,510 47,756 176,315 190,764 
Operating lease rent6,872 8,297 29,043 33,188 
Interest expense, net of interest income25,579 44,724 116,679 190,521 
Amortization of deferred financing costs3,482 3,087 11,794 11,653 
Depreciation and amortization56,932 64,090 313,668 272,358 
Loan loss and other investment reserves, net of recoveries8,280 — 35,298 — 
Transaction related costs20 369 503 729 
Marketing, general and administrative25,144 25,575 91,826 100,875 
        Total expenses213,346 252,712 958,326 1,034,764 
Equity in net loss from unconsolidated joint ventures(9,750)(11,874)(25,195)(34,518)
Equity in net gain on sale of interest in unconsolidated joint venture/real estate2,961 — 2,961 76,181 
Purchase price and other fair value adjustment187,522 — 187,522 69,389 
Gain (loss) on sale of real estate, net51,882 (19,241)215,506 (16,749)
Depreciable real estate reserves(53,827)— (60,454)(7,047)
        Net income200,340 24,255 414,758 291,487 
Net income attributable to noncontrolling interests in the Operating Partnership(9,943)(995)(20,016)(13,301)
Net (income) loss attributable to noncontrolling interests in other partnerships(13,795)635 (14,940)3,159 
Preferred unit distributions(1,864)(2,726)(8,747)(10,911)
Net income attributable to SL Green174,738 21,169 371,055 270,434 
Perpetual preferred stock dividends(3,737)(3,737)(14,950)(14,950)
        Net income attributable to SL Green common stockholders$171,001 $17,432 $356,105 $255,484 
Earnings Per Share (EPS)
Net income per share (Basic) (1)
$2.43 $0.22 $4.88 $3.20 
Net income per share (Diluted) (1)
$2.41 $0.22 $4.87 $3.19 
Funds From Operations (FFO)
FFO per share (Basic) (1)
$1.59 $1.80 $7.31 $7.21 
FFO per share (Diluted) (1)
$1.59 $1.80 $7.29 $7.19 
FFO per share (Pro forma) (2)
$1.56 $1.75 $7.11 $7.00 
Basic ownership interest
Weighted average REIT common shares for net income per share70,278 77,629 72,773 79,782 
Weighted average partnership units held by noncontrolling interests4,016 4,250 4,096 4,275 
Basic weighted average shares and units outstanding (1)
74,294 81,879 76,869 84,057 
Diluted ownership interest
Weighted average REIT common share and common share equivalents71,147 77,805 73,147 79,959 
Weighted average partnership units held by noncontrolling interests4,016 4,250 4,096 4,275 
Diluted weighted average shares and units outstanding (1)
75,163 82,055 77,243 84,234 
Pro forma adjustment (2)
1,411 2,265 1,874 2,328 
Pro forma diluted weighted average shares and units outstanding (2)
76,574 84,320 79,117 86,562 
(1) During the first quarter of 2021, the Company completed a reverse stock split to mitigate the dilutive impact of stock issued for a special dividend paid primarily in stock. The 2019 basic and diluted weighted average common shares outstanding have been restated to reflect the reverse stock split.
(2) During the first quarter of 2021, the Company completed a reverse stock split and a special dividend paid primarily in stock. GAAP requires the weighted average common shares outstanding to be adjusted retroactively for all periods presented to reflect the reverse stock split. However, GAAP requires shares issued pursuant to the special dividend be included in diluted weighted average common shares outstanding only from the date on which the special dividend was declared. To facilitate comparison between the periods presented, the Company calculated Pro forma diluted weighted average shares and units outstanding, which includes the shares issued pursuant to the special dividend from the beginning of the 2020 reporting periods.




SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
December 31,December 31,
20202019
Assets(Unaudited)
Commercial real estate properties, at cost:
Land and land interests$1,315,832 $1,751,544 
Building and improvements4,168,193 5,154,990 
Building leasehold and improvements1,448,134 1,433,793 
Right of use asset - financing leases55,711 47,445 
Right of use asset - operating leases367,209 396,795 
7,355,079 8,784,567 
Less: accumulated depreciation(1,956,077)(2,060,560)
5,399,002 6,724,007 
Assets held for sale— 391,664 
Cash and cash equivalents266,059 166,070 
Restricted cash106,736 75,360 
Investment in marketable securities28,570 29,887 
Tenant and other receivables, net of allowance of $23,853 and $12,369 in 2020 and 2019, respectively44,507 43,968 
Related party receivables34,657 21,121 
Deferred rents receivable, net of allowance of $16,346 and $12,477 in 2020 and 2019, respectively302,791 283,011 
Debt and preferred equity investments, net of discounts and deferred origination fees of $11,232 and $14,562 and allowances of $13,213 and $1,750 in 2020 and 2019, respectively1,076,542 1,580,306 
Investments in unconsolidated joint ventures3,823,322 2,912,842 
Deferred costs, net177,168 205,283 
Other assets448,213 332,801 
        Total assets$11,707,567 $12,766,320 
Liabilities
Mortgages and other loans payable$2,001,361 $2,211,883 
Revolving credit facility110,000 240,000 
Unsecured term loan1,500,000 1,500,000 
Unsecured notes1,251,888 1,502,837 
Deferred financing costs, net(34,521)(46,583)
Total debt, net of deferred financing costs4,828,728 5,408,137 
Accrued interest payable14,825 22,148 
Accounts payable and accrued expenses151,309 166,905 
Deferred revenue118,572 114,052 
Lease liability - financing leases152,521 44,448 
Lease liability - operating leases339,458 381,671 
Dividend and distributions payable149,294 79,282 
Security deposits53,836 62,252 
Liabilities related to assets held for sale— — 
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities100,000 100,000 
Other liabilities302,798 177,080 
        Total liabilities6,211,341 6,555,975 
Commitments and contingencies— — 
Noncontrolling interest in the Operating Partnership358,262 409,862 
Preferred units202,169 283,285 
Equity
Stockholders’ equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both December 31, 2020 and December 31, 2019221,932 221,932 
Common stock, $0.01 par value 160,000 shares authorized, 71,562 and 80,257 issued and outstanding at December 31, 2020 and December 31, 2019, respectively (including 1,055 held in Treasury at both December 31, 2020 and December 31, 2019)716 803 
Additional paid-in capital3,862,949 4,286,395 
Treasury stock at cost(124,049)(124,049)
Accumulated other comprehensive loss(67,247)(28,485)
Retained earnings1,015,462 1,084,719 
Total SL Green Realty Corp. stockholders’ equity4,909,763 5,441,315 
Noncontrolling interests in other partnerships26,032 75,883 
        Total equity4,935,795 5,517,198 
Total liabilities and equity$11,707,567 $12,766,320 




SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited and in thousands, except per share data)

Three Months EndedTwelve Months Ended
December 31,December 31,
Funds From Operations (FFO) Reconciliation:2020201920202019
Net income attributable to SL Green common stockholders$171,001 $17,432 $356,105 $255,484 
Add:
Depreciation and amortization56,932 64,090 313,668 272,358 
Joint venture depreciation and noncontrolling interest adjustments56,560 47,224 205,869 192,426 
Net income attributable to noncontrolling interests23,738 360 34,956 10,142 
Less:
Gain (loss) on sale of real estate, net51,882 (19,241)215,506 (16,749)
Equity in net gain on sale of interest in unconsolidated joint venture/real estate2,961 — 2,961 76,181 
Purchase price and other fair value adjustments187,522 — 187,522 69,389 
Depreciable real estate reserves(53,827)— (60,454)(7,047)
Depreciation on non-rental real estate assets541 742 2,338 2,935 
FFO attributable to SL Green common stockholders and unit holders$119,152 $147,605 $562,725 $605,701 


Three Months EndedTwelve Months Ended
December 31,December 31,
Operating income and Same-store NOI Reconciliation:2020201920202019
Net income$200,340 $24,255 $414,758 $291,487 
Equity in net gain on sale of interest in unconsolidated joint venture/real estate(2,961)— (2,961)(76,181)
Purchase price and other fair value adjustments(187,522)— (187,522)(69,389)
(Gain) loss on sale of real estate, net(51,882)19,241 (215,506)16,749 
Depreciable real estate reserves53,827 — 60,454 7,047 
Depreciation and amortization56,932 64,090 313,668 272,358 
Interest expense, net of interest income25,579 44,724 116,679 190,521 
Amortization of deferred financing costs3,482 3,087 11,794 11,653 
Operating income97,795 155,397 511,364 644,245 
Equity in net loss from unconsolidated joint ventures9,750 11,874 25,195 34,518 
Marketing, general and administrative expense25,144 25,575 91,826 100,875 
Transaction related costs, net20 369 503 729 
Investment income(18,699)(42,423)(120,163)(195,590)
Loan loss and other investment reserves, net of recoveries8,280 — 35,298 — 
Non-building revenue(192)(7,268)(3,982)(16,413)
Net operating income (NOI)122,098 143,524 540,041 568,364 
Equity in net loss from unconsolidated joint ventures(9,750)(11,874)(25,195)(34,518)
SLG share of unconsolidated JV depreciation and amortization52,768 46,429 194,393 189,290 
SLG share of unconsolidated JV interest expense, net of interest income34,413 37,168 137,032 153,151 
SLG share of unconsolidated JV amortization of deferred financing costs2,125 1,751 7,737 6,415 
SLG share of unconsolidated JV loss on early extinguishment of debt97 — 97 258 
SLG share of unconsolidated JV investment income(215)(314)(1,146)(3,331)
SLG share of unconsolidated JV non-building revenue(2,425)(1,215)(4,025)(1,926)
NOI including SLG share of unconsolidated JVs199,111 215,469 848,934 877,703 
NOI from other properties/affiliates(26,082)(35,972)(142,110)(157,915)
Same-Store NOI173,029 179,497 706,824 719,788 
Ground lease straight-line adjustment245 356 1,022 1,476 
Joint Venture ground lease straight-line adjustment232 243 1,058 1,220 
Straight-line and free rent(4,934)(4,570)(9,081)(19,097)
Amortization of acquired above and below-market leases, net(1,223)(1,192)(6,461)(4,830)
Joint Venture straight-line and free rent(5,519)(2,414)(19,265)(51,831)
Joint Venture amortization of acquired above and below-market leases, net(4,063)(4,314)(15,494)(16,929)
Same-store cash NOI$157,767 $167,606 $658,603 $629,797 





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 the Company's 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 pro-rata adjustments from the Company's unconsolidated JVs, 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 the amortization of acquired above and below-market leases 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 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 the Company's 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


Document



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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 December 31, 2020, the Company held interests in 88 buildings totaling 38.2 million square feet. This included ownership interests in 28.6 million square feet in Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.
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 where key investor relations data can be found. 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 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, including the statements herein under the section entitled "Guidance". 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 include risks and uncertainties related to the on-going COVID-19 pandemic and the duration and impact it will have on our business and the industry as a whole and the other risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, 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 December 31, 2020 that will be included on Form 10-K to be filed on or before March 1, 2021.
Supplemental Information
2
Fourth Quarter 2020

TABLE OF CONTENTS
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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
Fourth Quarter 2020

DEFINITIONS
                               
                          
                         
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Annualized cash rent - Monthly base rent and escalations per the lease, excluding concessions, as of the last day of the quarter, 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 borrowing rate.  Capitalized Interest is a component of the carrying value in a development or redevelopment property.
Debt service coverage - Operating Income adding back income taxes, loan loss reserves and the Company's 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, ground rent and preferred stock dividends.
Fixed charge coverage - Operating Income adding back income taxes, loan loss reserves and the Company's 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 pro-rata adjustments from the Company's unconsolidated JVs, 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 the amortization of acquired above and below-market leases 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 building improvements that were taken into consideration when underwriting the acquisition of a property or which are incurred to bring a property up to “operating standards.”
Redevelopment costs - Non-recurring capital expenditures incurred to improve properties to the Company’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.
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 2020 are as follows:
Added to Same-Store in 2020:Removed from Same-Store in 2020:
2 Herald SquareOne Madison Avenue (redevelopment)
719 Seventh Avenue625 Madison Avenue (redevelopment)
650 Fifth Avenue315 West 34th Street "The Olivia" (disposed)
762 Madison Avenue (redevelopment)
400 East 58th Street (disposed)
30 East 40th Street (disposed)
1055 Washington Boulevard, Stamford (disposed)
Williamsburg Terrace, Brooklyn (disposed)
Supplemental Information
4
Fourth Quarter 2020

DEFINITIONS
                               
                          
                         
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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 the Company or in which the Company has a joint venture interest.
Supplemental Information
5
Fourth Quarter 2020

FOURTH QUARTER 2020 HIGHLIGHTS

Unaudited

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New York, NY, January 27, 2021 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended December 31, 2020 of $171.0 million, or $2.41 per share, as compared to net income of $17.4 million, or $0.22 per share, for the same quarter in 2019.
The Company also reported net income attributable to common stockholders for the year ended December 31, 2020 of $356.1 million, or $4.87 per share, as compared to net income of $255.5 million, or $3.19 per share, for the year ended December 31, 2019.
The Company reported FFO for the quarter ended December 31, 2020 of $119.2 million, or $1.56 per share, excluding the accounting impact of the Company's reverse stock split in January 2021, as compared to FFO for the same period of 2019 of $147.6 million, or $1.75 per share. FFO for the fourth quarter includes $8.3 million, or $0.11 per share, of losses related to certain debt and preferred equity investments that were sold and reserves against retained DPE positions.
The Company also reported FFO for the year ended December 31, 2020 of $562.7 million, or $7.11 per share, excluding the accounting impact of the Company's reverse stock split in January 2021, as compared to FFO for the year ended December 31, 2019 of $605.7 million, or $7.00 per share. FFO for the full year of 2020 includes $35.3 million, or $0.45 per share, of losses related to certain debt and preferred equity investments that were sold and reserves against retained DPE positions.
All per share amounts are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended December 31, 2020, the Company reported consolidated revenues and operating income of $234.9 million and $97.8 million, respectively, compared to $308.1 million and $155.4 million, respectively, for the same period in 2019.
To date, the Company has collected gross tenant billings, including rent and other billable expenses for the full year of 2020, as follows:
OfficeRetail
Overall (1)
97.9%80.8%94.8%
(1) Includes garage, suburban and residential properties
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures decreased by 5.9% for the fourth quarter of 2020, and decreased 5.4% excluding lease termination income and free rent to Viacom at 1515 Broadway, as compared to the same period in 2019.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 4.6% for the year ended December 31, 2020, and decreased 1.6% excluding lease termination income and free rent given to Viacom at 1515 Broadway, as compared to the year ended December 31, 2019.
During the fourth quarter of 2020, the Company signed 27 office leases in its Manhattan portfolio totaling 463,927 square feet. Twenty leases comprising 357,567 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 $60.52 per rentable square foot, representing an 11.9% decrease over the previous fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the fourth quarter of 2020 was 6.6 years and average tenant concessions were 4.3 months of free rent with a tenant improvement allowance of $36.51 per rentable square foot.
During the year ended December 31, 2020, the Company signed 125 office leases in its Manhattan portfolio totaling 1,247,552 square feet. Ninety-seven leases comprising 899,018 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated. Those replacement leases had average starting rents of $66.57 per rentable square foot, representing a 3.6% decrease over the previously fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the year ended December 31, 2020 was 6.9 years and average tenant concessions were 3.8 months of free rent with a tenant improvement allowance of $25.43 per rentable square foot.

Occupancy in the Company's Manhattan same-store office portfolio was 93.4% as of December 31, 2020, inclusive of 248,577 square feet of leases signed but not yet commenced, as compared to 94.2% at the end of the previous quarter.
Significant leases that were signed in the fourth quarter included:
Early Renewal with Travelers Indemnity Company for 133,479 square feet at 485 Lexington Avenue, for 5.0 years;
New lease with Heidrick & Struggles International, Inc for 36,031 square feet at One Vanderbilt Avenue, for 12.0 years;
Early Renewal with Cohen & Gresser LLP for 33,900 square feet at 800 Third Avenue, for 10.0 years;
Renewal with Reitler, Kailas & Rosenblatt for 32,364 square feet at 885 Third Avenue, for 13.2 years;
New lease with a financial services firm for 26,770 square feet at One Vanderbilt Avenue, for 15.7 years;
Early Renewal with Napier Global Capital (US) LP for 25,224 square feet at 280 Park Avenue, for 7.3 years;
New lease with RSC Insurance Brokerage, Inc. for 24,515 square feet at 750 Third Avenue, for 16.0 years; and
New retail lease with 1Life Healthcare, Inc. d/b/a One Medical for 4,924 square feet at One Vanderbilt Avenue, for 15.0 years
Investment Activity
In December, the Company announced that its Board of Directors authorized a $500 million increase to the size of its share repurchase program, bringing the program to a total of $3.5 billion. To date, the Company has repurchased a total of 32.4 million shares of its common stock under the program and redeemed 1.1 million OP units.
In January, the Company closed on the sale of 712 Madison Avenue for a gross sales price of $43.0 million, pursuant to the exercise of a purchase option by the ground lessee of the property. The transaction generated net cash proceeds to the Company of $14.2 million.
Supplemental Information
6
Fourth Quarter 2020

FOURTH QUARTER 2020 HIGHLIGHTS

Unaudited

https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg

In December, together with its joint venture partners, the Company closed on the sale of 410 Tenth Avenue, the 636,000-square-foot Manhattan office redevelopment anchored by Amazon and First Republic Bank, for gross consideration of $952.5 million. The transaction generated net cash proceeds to the Company, which owned 70.9% of the venture, of $206.5 million and the Company recognized a gain of $41.3 million. These amounts exclude the net cash proceeds that will be recognized upon the sale of a retained 5.0% interest, which will be held through completion of the property's redevelopment.
In December, the Company closed on the sale of two retail condominiums in Williamsburg, Brooklyn, for a gross sales price of $32.0 million. The Company acquired the condominiums, which span a combined 52,000-square-feet, in 2010. The transaction generated net cash proceeds to the Company of $29.6 million and the Company recognized a gain of $12.6 million.
In December, the Company closed on the sale of its 60% interest in the leasehold at 30 East 40th street to its joint venture partner. The transaction generated net cash proceeds to the Company of $4.4 million.

In November, the Company closed on the sale of 1055 Washington Boulevard in Stamford, Connecticut for a sales price of $23.8 million. The transaction generated net cash proceeds to the Company of $22.4 million.
In October, the Company acquired 590 Fifth Avenue. The 103,244 square foot office building with ground floor retail is located on the revived lower Fifth Avenue corridor, between 47th and 48th Streets, steps from Saks Fifth Avenue & new retail flagships for Lululemon & Puma.
In October, the Company acquired a 36.27% interest in the retail Co-Op at 85 Fifth Avenue. The 12,946 space is located in the heart of Union Square in Manhattan on the corner of Fifth Avenue and 16th Street.
The properties at 590 Fifth Avenue and 85 Fifth Avenue previously served as collateral for debt and preferred equity investments and were acquired through negotiated transactions with the respective sponsors of each investment.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s DPE portfolio decreased to $1.11 billion at December 31, 2020. The portfolio is comprised of $1.08 billion of investments at a weighted average current yield of 6.8%, or 8.37% excluding the effect of $232.1 million of investments that are on non-accrual, that are classified in the debt and preferred equity line item on the balance sheet, and mortgage investments aggregating $0.03 billion at a weighted average current yield of 3.6% that are included in other balance sheet line items for accounting purposes.
During the fourth quarter, the Company generated $59.3 million of cash through the sale of one DPE position.
Financing Activity
In November, the Company, along with its joint venture partners, closed on a $1.25 billion construction facility for One Madison Avenue, the Company’s 1.4 million square foot, full block office redevelopment adjacent to Madison Square Park. The facility, which was led by Wells Fargo, TD Bank, Goldman Sachs, Bank of America, Deutsche Bank and Axos Bank,
has a term of up to 6 years and bears interest at a floating interest rate of 3.35% over LIBOR, with the ability to reduce the spread to as low as 3.00% upon achieving certain pre-leasing and completion milestones.
In December, the Company, along with its joint venture partner, closed on the early refinancing of 100 Park Avenue. The new $360.0 million mortgage has a term of up to 5 years, as extended, bears interest at a floating rate of 2.25% over LIBOR and replaces the previous $353.1 million of indebtedness on the property that was scheduled to mature in February 2021.
In January, the Company entered into $800 million of fixed rate interest swaps against floating rate corporate debt. The swaps have terms of between one and two years with a weighted average interest rate of 0.1578%.
Dividends
In the fourth quarter of 2020, the Company declared:
Two monthly dividends on its outstanding common stock of $0.295 per share which were paid on November 16 and December 15, 2020, and one monthly dividend of $0.3033 per share which was paid on January 15, 2021. The increased dividend represents a 2.8% increase to the Company's ordinary dividend equating to an annualized dividend of $3.64 per share of common stock;
A special dividend with a value of $1.6967 per share, which was paid on January 15, 2021. The special dividend was paid in the form of common stock of the Company. To mitigate the dilutive impact of the stock issued for the special dividend, the board of directors also authorized a reverse stock split, which was effective on January 20, 2021. The split ratio for the reverse stock split was 1.02918-for-1.
Quarterly dividends on its outstanding 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share for the period October 15, 2020 through and including January 14, 2021, which was paid on January 15, 2021 and 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, January 28, 2021 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 conference ID 6387248.
A replay of the call will be available for 7 days after the call by dialing (855) 859-2056 using conference ID 3497478. 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
7
Fourth Quarter 2020

KEY FINANCIAL DATA

Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg

As of or for the three months ended
12/31/20209/30/20206/30/20203/31/202012/31/2019
Earnings Per Share
Net income available to common stockholders (EPS) - diluted (1)
$2.41 $0.19 $0.76 $1.51 $0.22 
Funds from operations (FFO) available to common stockholders - diluted (1)
$1.59 $1.80 $1.74 $2.14 $1.80 
Funds from operations (FFO) available to common stockholders - pro forma (2)
$1.56 $1.75 $1.70 $2.08 $1.75 
Common Share Price & Dividends
Closing price at the end of the period (3)
$59.58 $46.37 $49.29 $43.10 $91.88 
Closing high price during period (3)
$63.90 $51.24 $63.12 $95.77 $92.90 
Closing low price during period (3)
$41.65 $43.83 $36.83 $41.14 $78.50 
Annual dividend per common share$3.64 $3.54 $3.54 $3.54 $3.54 
FFO payout ratio (trailing 12 months)50.3 %48.6 %48.2 %46.9 %49.1 %
Funds available for distribution (FAD) payout ratio (trailing 12 months)62.0 %59.3 %67.0 %73.6 %72.9 %
Common Shares & Units
Common shares outstanding (3)
70,507 73,040 73,675 76,535 79,202 
Units outstanding3,939 4,027 4,045 4,145 4,196 
Total common shares and units outstanding74,446 77,067 77,720 80,680 83,398 
Weighted average common shares and units outstanding - basic (1)
74,294 75,209 77,899 80,120 81,879 
Weighted average common shares and units outstanding - diluted (1)
75,163 75,414 78,066 80,352 82,055 
Weighted average common shares and units outstanding - pro forma (2)
76,575 77,491 80,219 82,567 84,320 
Market Capitalization
Market value of common equity$4,435,493 $3,573,597 $3,830,819 $3,477,308 $7,662,608 
Liquidation value of preferred equity/units432,169 432,169 455,448 496,020 513,285 
Consolidated debt4,963,249 5,466,849 6,189,658 6,162,819 5,554,720 
Consolidated market capitalization$9,830,911 $9,472,615 $10,475,925 $10,136,147 $13,730,613 
SLG share of unconsolidated JV debt4,672,371 4,588,930 4,230,047 4,132,083 4,028,136 
Market capitalization including SLG share of unconsolidated JVs$14,503,282 $14,061,545 $14,705,972 $14,268,230 $17,758,749 
Consolidated debt service coverage (trailing 12 months)3.54x3.52x3.40x3.39x3.37x
Consolidated fixed charge coverage (trailing 12 months)2.82x2.83x2.75x2.77x2.74x
Debt service coverage, including SLG share of unconsolidated JVs (trailing 12 months)2.41x2.44x2.41x2.41x2.39x
Fixed charge coverage, including SLG share of unconsolidated JVs (trailing 12 months)2.06x2.08x2.06x2.08x2.06x
(1) During the first quarter of 2021, the Company completed a reverse stock split to mitigate the dilutive impact of stock issued for a special dividend paid primarily in stock. The 2019 basic and diluted weighted average common shares outstanding have been restated to reflect the reverse stock split.
(2) During the first quarter of 2021, the Company completed a reverse stock split and a special dividend paid primarily in stock. GAAP requires the weighted average common shares outstanding to be adjusted retroactively for all periods presented to reflect the reverse stock split. However, GAAP requires shares issued pursuant to the special dividend be included in weighted average common shares outstanding only from the date on which the special dividend was declared. To facilitate comparison between the periods presented, the Company calculated Pro forma diluted weighted average shares and units outstanding, which includes the shares issued pursuant to the special dividend from the beginning of the 2020 reporting periods.
(3) Reported as of 12/31/20 and not retroactively adjusted to reflect the January 2021 reverse stock split.
Supplemental Information
8
Fourth Quarter 2020

KEY FINANCIAL DATA

Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg

As of or for the three months ended
12/31/20209/30/20206/30/20203/31/202012/31/2019
Selected Balance Sheet Data
Real estate assets before depreciation$7,355,079 $9,021,490 $9,046,938 $9,061,831 $9,222,796 
Investments in unconsolidated joint ventures$3,823,322 $2,946,673 $2,952,681 $2,848,363 $2,912,842 
Debt and preferred equity investments$1,076,542 $1,153,363 $1,221,936 $1,783,336 $1,580,306 
Cash and cash equivalents$266,059 $221,404 $1,015,348 $554,195 $166,070 
Investment in marketable securities$28,570 $27,734 $27,345 $25,353 $29,887 
Total assets$11,707,567 $12,324,039 $13,071,564 $13,220,607 $12,766,320 
Fixed rate & hedged debt$3,135,572 $3,338,268 $3,379,743 $3,032,513 $3,536,286 
Variable rate debt1,827,677 
(1)
2,128,581 2,809,915 3,130,306 2,018,434 
Total consolidated debt$4,963,249 $5,466,849 $6,189,658 $6,162,819 $5,554,720 
Deferred financing costs, net of amortization(34,521)(47,677)(48,344)(39,553)(46,583)
Total consolidated debt, net$4,928,728 $5,419,172 $6,141,314 $6,123,266 $5,508,137 
Total liabilities$6,211,341 $6,634,385 $7,281,652 $7,251,728 $6,555,975 
Fixed rate & hedged debt, including SLG share of unconsolidated JV debt$5,632,531 $5,837,841 $5,609,865 $5,265,219 $5,771,749 
Variable rate debt, including SLG share of unconsolidated JV debt4,003,089 
(1)
4,217,938 4,809,840 5,029,683 3,811,107 
Total debt, including SLG share of unconsolidated JV debt$9,635,620 $10,055,779 $10,419,705 $10,294,902 $9,582,856 
Selected Operating Data
Property operating revenues$190,391 $195,515 $195,886 $222,631 $250,452 
Property operating expenses(93,909)(96,405)(90,389)(107,855)(114,867)
Property NOI$96,482 $99,110 $105,497 $114,776 $135,585 
SLG share of unconsolidated JV Property NOI78,378 82,384 76,705 73,992 72,123 
Property NOI, including SLG share of unconsolidated JV Property NOI$174,860 $181,494 $182,202 $188,768 $207,708 
Investment income18,699 22,988 39,943 38,533 42,423 
Other income25,808 31,341 17,870 53,139 15,207 
Marketing general & administrative expenses(25,144)(23,602)(23,510)(19,570)(25,575)
SLG share of investment income and other income from unconsolidated JVs2,041 4,814 2,939 1,918 1,736 
Income taxes(859)— 900 1,134 1,027 
Transaction costs, including SLG share of unconsolidated JVs(20)(45)(373)(65)(369)
Loan loss and other investment reserves, net of recoveries(8,280)(8,957)(6,813)(11,248)— 
EBITDAre$187,105 $208,033 $213,158 $252,609 $242,157 
(1) Does not reflect $0.3 million of floating rate debt and preferred equity investments that provide a hedge against floating rate debt.

Supplemental Information
9
Fourth Quarter 2020

KEY FINANCIAL DATA
Manhattan Properties (1)
Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg
As of or for the three months ended
12/31/20209/30/20206/30/20203/31/202012/31/2019
Selected Operating Data
Property operating revenues$184,227 $189,263 $188,134 $214,373 $233,500 
Property operating expenses87,966 88,115 79,560 97,312 100,672 
Property NOI$96,261 $101,148 $108,574 $117,061 $132,828 
Other income - consolidated$2,575 $20,975 $12,448 $45,348 $3,128 
SLG share of property NOI from unconsolidated JVs$78,379 $82,384 $76,704 $73,992 $72,111 
Office Portfolio Statistics
Consolidated office buildings in service18 18 18 18 20 
Unconsolidated office buildings in service11 11 10 10 10 
29 29 28 28 30 
Consolidated office buildings in service - square footage10,681,045 10,647,191 10,647,191 10,647,191 12,387,091 
Unconsolidated office buildings in service - square footage11,841,483 11,841,483 11,216,183 11,216,183 11,216,183 
22,522,528 22,488,674 21,863,374 21,863,374 23,603,274 
Same-Store office occupancy inclusive of leases signed not yet commenced93.4%94.2%95.2%95.5%96.0%
Office Leasing Statistics
New leases commenced16 25 27 19 
Renewal leases commenced12 18 25 19 
Total office leases commenced28 43 34 32 38 
Commenced office square footage filling vacancy42,262 44,168 46,502 29,938 122,564 
Commenced office square footage on previously occupied space (M-T-M leasing) (2)
473,133 305,811 269,823 136,523 415,750 
Total office square footage commenced515,395 349,979 316,325 166,461 538,314 
Average starting cash rent psf - office leases commenced$61.66$67.54$75.50$68.33$64.95
Previous escalated cash rent psf - office leases commenced (3)
$63.08$67.29$73.84$73.52$48.03
Increase in new cash rent over previously escalated cash rent (2) (3)
(2.3)%0.4%2.2%(7.1)%35.2%
Average lease term8.06.57.811.37.4
Tenant concession packages psf$48.13$38.49$31.37$60.30$37.38
Free rent months5.56.75.06.04.4
(1) Property data for in-service buildings only.
(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
Fourth Quarter 2020

COMPARATIVE BALANCE SHEETS

Unaudited
(Dollars in Thousands)
https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg

As of
12/31/20209/30/20206/30/20203/31/202012/31/2019
Assets
Commercial real estate properties, at cost:
     Land and land interests$1,315,832 $1,639,118 $1,625,483 $1,662,840 $1,751,544 
     Building and improvements 4,168,193 5,483,155 5,363,464 5,417,965 5,154,990 
     Building leasehold and improvements 1,448,134 1,442,251 1,443,855 1,435,811 1,433,793 
     Right of use asset - financing leases55,711 75,711 176,152 163,960 47,445 
     Right of use asset - operating leases367,209 381,255 381,255 381,255 396,795 
7,355,079 9,021,490 8,990,209 9,061,831 8,784,567 
Less: accumulated depreciation(1,956,077)(2,260,247)(2,186,157)(2,130,033)(2,060,560)
Net real estate5,399,002 6,761,243 6,804,052 6,931,798 6,724,007 
Other real estate investments:
    Investment in unconsolidated joint ventures3,823,322 2,946,673 2,952,681 2,848,363 2,912,842 
    Debt and preferred equity investments, net1,076,542 
(1)
1,153,363 
(1)
1,221,936 1,783,336 1,580,306 
Assets held for sale, net— — 49,687 — 391,664 
Cash and cash equivalents266,059 221,404 1,015,348 554,195 166,070 
Restricted cash106,736 83,045 85,935 66,827 75,360 
Investment in marketable securities28,570 27,734 27,345 25,353 29,887 
Tenant and other receivables, net of allowance of $23,853 at 12/31/202044,507 72,806 90,305 88,587 43,968 
Related party receivables34,657 31,936 16,984 26,092 21,121 
Deferred rents receivable, net of allowance of $16,346 at 12/31/2020302,791 304,673 302,729 310,138 283,011 
Deferred costs, net177,168 206,289 217,812 232,274 205,283 
Other assets448,213 514,873 286,750 353,644 332,801 
 Total Assets$11,707,567 $12,324,039 $13,071,564 $13,220,607 $12,766,320 
(1) Excludes debt and preferred equity investments totaling $35.0 million with a weighted average current yield of 3.59% that are included in other balance sheet line items.
Supplemental Information
11
Fourth Quarter 2020

COMPARATIVE BALANCE SHEETS

Unaudited
(Dollars in Thousands)
https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg

As of
12/31/20209/30/20206/30/20203/31/202012/31/2019
Liabilities
Mortgages and other loans payable$2,001,361 $2,424,721 $2,348,483 $2,010,217 $2,211,883 
Unsecured term loans1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 
Unsecured notes1,251,888 1,252,128 1,252,366 1,252,602 1,502,837 
Revolving credit facility110,000 190,000 950,000 1,300,000 240,000 
Deferred financing costs(34,521)(47,677)(48,344)(39,553)(46,583)
Total debt, net of deferred financing costs4,828,728 5,319,172 6,002,505 6,023,266 5,408,137 
Accrued interest14,825 23,438 14,903 26,377 22,148 
Accounts payable and accrued expenses151,309 152,983 165,565 158,750 166,905 
Deferred revenue118,572 117,615 99,655 116,197 114,052 
Lease liability - financing leases152,521 174,983 174,732 162,299 44,448 
Lease liability - operating leases339,458 358,419 361,221 363,990 381,671 
Dividends and distributions payable149,294 25,486 25,611 26,563 79,282 
Security deposits53,836 56,212 58,486 59,318 62,252 
Liabilities related to assets held for sale— — 38,272 — — 
Junior subordinated deferrable interest debentures100,000 100,000 100,000 100,000 100,000 
Other liabilities302,798 306,077 240,702 214,968 177,080 
Total liabilities6,211,341 6,634,385 7,281,652 7,251,728 6,555,975 
Noncontrolling interest in operating partnership
     (3,939 units outstanding) at 12/31/2020358,262 353,480 358,702 358,895 409,862 
Preferred units202,169 202,169 225,448 266,019 283,285 
Equity
Stockholders' Equity:
Series I Perpetual Preferred Shares221,932 221,932 221,932 221,932 221,932 
Common stock, $0.01 par value, 160,000 shares authorized, 71,562
issued and outstanding at 12/31/2020, including 1,055 shares held in treasury716 741 748 776 803 
Additional paid–in capital3,862,949 3,998,516 4,021,891 4,146,306 4,286,395 
Treasury stock (124,049)(124,049)(124,049)(124,049)(124,049)
Accumulated other comprehensive loss(67,247)(76,200)(82,371)(80,868)(28,485)
Retained earnings1,015,462 1,035,172 1,081,821 1,099,369 1,084,719 
Total SL Green Realty Corp. stockholders' equity4,909,763 5,056,112 5,119,972 5,263,466 5,441,315 
Noncontrolling interest in other partnerships26,032 77,893 85,790 80,499 75,883 
Total equity4,935,795 5,134,005 5,205,762 5,343,965 5,517,198 
 Total Liabilities and Equity$11,707,567 $12,324,039 $13,071,564 $13,220,607 $12,766,320 
Supplemental Information
12
Fourth Quarter 2020

COMPARATIVE STATEMENT OF OPERATIONS

Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg

Three Months EndedThree Months EndedTwelve Months Ended
December 31,December 31,September 30,December 31,December 31,
20202019202020202019
Revenues
Rental revenue, net$165,243 $218,495 $173,536 $708,383 $863,061 
Escalation and reimbursement revenues25,148 31,957 21,979 96,040 120,496 
Investment income18,699 42,423 22,988 120,163 195,590 
Other income25,808 15,207 31,341 128,158 59,848 
Total Revenues, net234,898 308,082 249,844 1,052,744 1,238,995 
Equity in net loss from unconsolidated joint ventures(9,750)(11,874)(432)(25,195)(34,518)
Expenses
Operating expenses42,527 58,814 45,910 183,200 234,676 
Operating lease rent6,872 8,297 6,973 29,043 33,188 
Real estate taxes44,510 47,756 43,522 176,315 190,764 
Loan loss and other investment reserves, net of recoveries8,280 — 8,957 35,298 — 
Transaction related costs20 369 45 503 729 
Marketing, general and administrative25,144 25,575 23,602 91,826 100,875 
Total Operating Expenses127,353 140,811 129,009 516,185 560,232 
Operating Income97,795 155,397 120,403 511,364 644,245 
Interest expense, net of interest income25,579 44,724 23,536 116,679 190,521 
Amortization of deferred financing costs3,482 3,087 3,151 11,794 11,653 
Depreciation and amortization56,932 64,090 92,516 313,668 272,358 
Income from Continuing Operations (1)
11,802 43,496 1,200 69,223 169,713 
Gain (loss) on sale of real estate and discontinued operations51,882 (19,241)26,104 215,506 (16,749)
Equity in net gain on sale of joint venture interest / real estate2,961 — — 2,961 76,181 
Purchase price and other fair value adjustments187,522 — — 187,522 69,389 
Depreciable real estate reserves(53,827)— (6,627)(60,454)(7,047)
Net Income200,340 24,255 20,677 414,758 291,487 
Net income attributable to noncontrolling interests(23,738)(360)(1,216)(34,956)(10,142)
Dividends on preferred units(1,864)(2,726)(1,864)(8,747)(10,911)
Net Income Attributable to SL Green Realty Corp174,738 21,169 17,597 371,055 270,434 
Dividends on perpetual preferred shares(3,737)(3,737)(3,738)(14,950)(14,950)
Net Income Attributable to Common Stockholders$171,001 $17,432 $13,859 $356,105 $255,484 
Earnings per share - Net income per share (basic) (2)
$2.43 $0.22 $0.19 $4.88 $3.20 
Earnings per share - Net income per share (diluted) (2)
$2.41 $0.22 $0.19 $4.87 $3.19 
(1) Before gains on sale and equity in net gains and depreciable real estate reserves shown below.
(2) During the first quarter of 2021, the Company completed a reverse stock split to mitigate the dilutive impact of stock issued for a special dividend paid primarily in stock. The 2019 basic and diluted weighted average common shares outstanding have been restated to reflect the reverse stock split.
Supplemental Information
13
Fourth Quarter 2020

COMPARATIVE COMPUTATION OF FFO AND FAD

Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg

Three Months EndedThree Months EndedTwelve Months Ended
December 31,December 31,September 30,December 31,December 31,
20202019202020202019
Funds from Operations
Net Income Attributable to Common Stockholders$171,001 $17,432 $13,859 $356,105 $255,484 
Depreciation and amortization56,932 64,090 92,516 313,668 272,358 
Joint ventures depreciation and noncontrolling interests adjustments56,560 47,224 47,884 205,869 192,426 
Net income attributable to noncontrolling interests23,738 360 1,216 34,956 10,142 
(Gain) loss on sale of real estate and discontinued operations(51,882)19,241 (26,104)(215,506)16,749 
Equity in net gain on sale of joint venture property / real estate(2,961)— — (2,961)(76,181)
Purchase price and other fair value adjustments(187,522)— — (187,522)(69,389)
Depreciable real estate reserves 53,827 — 6,627 60,454 7,047 
Non-real estate depreciation and amortization(541)(742)(538)(2,338)(2,935)
Funds From Operations$119,152 $147,605 $135,460 $562,725 $605,701 
Funds From Operations - Basic per Share (1)
$1.59 $1.80 $1.80 $7.31 $7.21 
Funds From Operations - Diluted per Share (1)
$1.59 $1.80 $1.80 $7.29 $7.19 
Funds From Operations - Pro forma per Share (2)
$1.56 $1.75 $1.75 $7.11 $7.00 
Funds Available for Distribution
FFO$119,152 $147,605 $135,460 $562,725 $605,701 
Non real estate depreciation and amortization541 742 538 2,338 2,935 
Amortization of deferred financing costs3,482 3,087 3,151 11,794 11,653 
Non-cash deferred compensation12,256 17,056 9,381 43,199 42,395 
FAD adjustment for joint ventures(18,800)(17,558)(10,811)(54,528)(99,349)
Straight-line rental income and other non cash adjustments6,513 (1,497)6,647 (23,195)(22,616)
Second cycle tenant improvements(14,927)(9,701)(9,019)(53,730)(60,202)
Second cycle leasing commissions(4,274)(10,614)(1,051)(10,230)(28,287)
Revenue enhancing recurring CAPEX(53)(6,264)(90)(610)(7,820)
Non-revenue enhancing recurring CAPEX(9,460)(113)(4,267)(22,596)(37,446)
Reported Funds Available for Distribution$94,430 $122,743 $129,939 $455,167 $406,964 
First cycle tenant improvements$6,694 $11,833 $1,338 $12,472 $14,331 
First cycle leasing commissions$4,428 $16,904 $172 $6,409 $30,938 
Development costs$36,891 $9,939 $13,977 $87,659 $28,701 
Redevelopment costs$99,874 $54,476 $52,261 $222,831 $95,100 
Capitalized interest$17,638 $14,808 $20,677 $75,166 $53,035 
(1) During the first quarter of 2021, the Company completed a reverse stock split to mitigate the dilutive impact of stock issued for a special dividend paid primarily in stock. The 2019 basic and diluted weighted average common shares outstanding have been restated to reflect the impact of the reverse stock split.
(2) During the first quarter of 2021, the Company completed a reverse stock split and a special dividend paid primarily in stock. GAAP requires the weighted average common shares outstanding to be adjusted retroactively for all periods presented to reflect the reverse stock split. However, GAAP requires shares issued pursuant to the special dividend be included in weighted average common shares outstanding only from the date on which the special dividend was declared. To facilitate comparison between the periods presented, the Company calculated Pro forma diluted weighted average shares and units outstanding, which includes the shares issued pursuant to the special dividend from the beginning of the 2020 reporting periods.
Supplemental Information
14
Fourth Quarter 2020

CONSOLIDATED STATEMENT OF EQUITY

Unaudited
(Dollars in Thousands)
https://cdn.kscope.io/757301ebcf24d5e55e74365d25db1c79-image1331.jpg

Accumulated
Series IOther
PreferredCommonAdditionalTreasuryRetainedNoncontrollingComprehensive
StockStockPaid-In CapitalStockEarningsInterestsLossTOTAL
Balance at December 31, 2019$221,932 $803 $4,286,395 $(124,049)$1,084,719 $75,883 $(28,485)$5,517,198 
Cumulative adjustment upon adoption of ASC 326(39,184)(39,184)
Balance at January 1, 2020$221,932 $803 $4,286,395 $(124,049)$1,045,535 $75,883 $(28,485)$5,478,014 
Net income371,055 14,940 385,995 
Acquisition of subsidiary interest from noncontrolling interest(3,123)1,587 (1,536)
Preferred dividends(14,950)(14,950)
Cash distributions declared ($4.655 per common share)(341,945)(341,945)
Cash distributions to noncontrolling interests(78,855)— (78,855)
Other comprehensive loss - unrealized loss on derivative instruments(34,635)(34,635)
Other comprehensive loss - SLG share of unconsolidated joint venture net unrealized loss on derivative instruments(2,871)(2,871)
Other comprehensive loss - unrealized loss on marketable securities(1,256)(1,256)
DRSPP proceeds1,006 1,006 
Repurchases of common stock(88)(455,343)(76,831)(532,262)
Conversion of units of the Operating Partnership to common stock8,743 8,744 
Contributions to consolidated joint ventures12,477 12,477 
Reallocation of noncontrolling interests in the Operating Partnership32,598