slg-20210721
0001040971false00010409712021-07-212021-07-210001040971us-gaap:CommonStockMember2021-07-212021-07-210001040971us-gaap:PreferredStockMember2021-07-212021-07-21


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

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 21, 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)
One Vanderbilt Avenue                10017
New York,New York             (Zip Code)
(Address of principal executive offices)

(212) 594-2700

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 July 21, 2021 announcing SL Green Realty Corp.’s, or the Company, results for the quarter ended June 30, 2021, the Company has made available on its website supplemental information regarding the Company’s operations that is too voluminous for a press release. The Company is attaching the press release as Exhibit 99.1 and the supplemental package as Exhibit 99.2 to this Current Report on Form 8-K.

The information (including Exhibits 99.1 and 99.2) being furnished pursuant to this “Item 2.02. Results of Operations and Financial Condition” shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act regardless of any general incorporation language in such filing.

Item 7.01.    Regulation FD Disclosure

As discussed in Item 2.02 above, on July 21, 2021, the Company issued a press release announcing its results for the quarter ended June 30, 2021.

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 June 30, 2021.
    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: July 22, 2021



Document
Exhibit 99.1

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

SL GREEN REALTY CORP. REPORTS
SECOND QUARTER 2021 EPS OF $1.51 PER SHARE;
AND FFO OF $1.60 PER SHARE


Financial and Operating Highlights
Net income attributable to common stockholders of $1.51 per share for the second quarter of 2021 as compared to $0.76 per share for the same period in 2020. Net income attributable to common stockholders for the second quarter of 2021 includes net gains of $108.3 million, or $1.47 per share, recognized from the sales of 635-641 Sixth Avenue and our interests in 605 West 42nd Street, as compared to a net gain of $65.4 million, or $0.82 per share, recognized from the sale of the retail condominium at 609 Fifth Avenue in the second quarter of 2020.
Funds from operations, or FFO, of $1.60 per share for the second quarter of 2021 as compared to $1.70 per share for the same period in 2020. FFO for the second quarter of the prior year included $12.4 million, or $0.15 per share, of lease termination income as compared to just $1.1 million, or $0.02 per share, of lease termination income in the second quarter of 2021.
To date in 2021, the Company has repurchased or redeemed a combined 4.0 million shares of its common stock and units of its Operating Partnership, or OP units, under the previously announced $3.5 billion share repurchase plan, bringing total repurchases and redemptions to 36.5 million shares/units.
Signed 42 Manhattan office leases covering 557,703 square feet in the second quarter and 63 Manhattan office leases covering 910,455 square feet for the first six months of 2021. The mark-to-market on signed Manhattan office leases was 1.1% lower for the second quarter and 1.7% lower for the first six months of 2021 than the previous fully escalated rents on the same spaces.
Same-store cash net operating income, or NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 3.7% for the second quarter of 2021 and decreased by 2.4% for the first six months of 2021 as compared to the same period in 2020, excluding lease termination income, an interim level that is consistent with our full-year 2021 goals and objectives.
Manhattan same-store office occupancy was 93.6% as of June 30, 2021, inclusive of leases signed but not yet commenced.




Investing Highlights
Closed on the previously announced sale of 635-641 Sixth Avenue for a gross sale price of $325.0 million, equating to more than $1,200 per square foot. The transaction generated net cash proceeds to the Company of $313.2 million.
Closed on the previously announced sale of its 20.0% interest in 605 West 42nd Street, also known as "Sky," for a gross asset valuation of $858.1 million. The transaction generated net cash proceeds to the Company of $54.5 million.
Closed on the acquisition of the fee interest in 461 Fifth Avenue for a gross purchase price of $28.0 million pursuant to a purchase option under the ground lease at the property, thereby consolidating a leasehold position into 100% unencumbered fee ownership.
Financing Highlights
Along with our joint venture partners, closed on the previously announced $3.0 billion 10-year fixed-rate refinancing of One Vanderbilt Avenue. The new financing carries a stated coupon of 2.855 percent, equivalent to a rate of 2.947 percent inclusive of hedging costs, and replaces the previous $1.75 billion construction facility that had an outstanding balance of approximately $1.54 billion at the time of repayment.
Summary
New York, NY, July 21, 2021 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended June 30, 2021 of $105.3 million, or $1.51 per share, as compared to net income of $56.4 million, or $0.76 per share, for the same quarter in 2020. Net income attributable to common stockholders for the second quarter of 2021 includes net gains totaling $108.3 million, or $1.47 per share, recognized from the sales of 635-641 Sixth Avenue and our interests in 605 West 42nd Street, as compared to a net gain of $65.4 million, or $0.82 per share, in the second quarter of 2020 recognized from the sale of the retail condominium at 609 Fifth Avenue.
The Company also reported net income attributable to common stockholders for the six months ended June 30, 2021 of $97.9 million, or $1.40 per share, as compared to net income of $171.2 million, or $2.28 per share, for the same period in 2020. Net income attributable to common stockholders for the six months ended June 30, 2021 includes $94.1 million, or $1.27 per share, of net gains recognized from the sale of real estate interests and non-cash fair value adjustments. Net income for the six months ended June 30, 2020 included $137.5 million, or $1.69 per share, of net gains recognized from the sale of real estate interests and non-cash fair value adjustments.
The Company reported FFO for the quarter ended June 30, 2021 of $117.7 million, or $1.60 per share, as compared to FFO for the same period in 2020 of $136.1 million, or $1.70 per share. FFO for the second quarter of the prior year included $12.4 million, or $0.15 per share, of lease termination income as compared to just $1.1 million, or $0.02 per share, of lease termination income included in the second quarter of 2021.




The Company also reported FFO for the six months ended June 30, 2021 of $246.0 million, or $3.33 per share, as compared to FFO of $308.1 million, or $3.79 per share, for the same period in 2020. FFO for the six months ended June 30, 2020 included $25.1 million, or $0.31 per share, of incremental income from Credit Suisse at 1 Madison Avenue representing rent through December 31, 2020.
All per share amounts are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended June 30, 2021, the Company reported consolidated revenues and operating income of $218.1 million and $88.7 million, respectively, compared to $253.7 million and $130.4 million, respectively, for the same period in 2020.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 9.2% for the second quarter of 2021, and decreased 3.7% excluding lease termination income, as compared to the same period in 2020, an interim level that is consistent with our full-year 2021 goals and objectives.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 5.4% for the six months June 30, 2021, and decreased 2.4% excluding lease termination income, as compared to the same period in 2020, an interim level that is consistent with our full-year 2021 goals and objectives.
During the second quarter of 2021, the Company signed 42 office leases in its Manhattan office portfolio totaling 557,703 square feet. The average lease term on the Manhattan office leases signed in the second quarter of 2021 was 4.7 years and average tenant concessions were 2.4 months of free rent with a tenant improvement allowance of $17.16 per rentable square foot, excluding leases signed at One Vanderbilt Avenue. Twenty-five leases comprising 265,798 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 $84.12 per rentable square foot, representing a 1.1% decrease over the previous fully escalated rents on the same office spaces.
During the first six months of 2021, the Company signed 63 office leases in its Manhattan office portfolio totaling 910,455 square feet. The average lease term on the Manhattan office leases signed in the first six months of 2021 was 5.3 years and average tenant concessions were 4.7 months of free rent with a tenant improvement allowance of $39.76 per rentable square foot, excluding leases signed at One Vanderbilt Avenue. Thirty-eight leases comprising 453,124 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 $72.98 per rentable square foot, representing a 1.7% decrease over the previous fully escalated rents on the same office spaces.
Occupancy in the Company's Manhattan same-store office portfolio was 93.6% as of June 30, 2021, inclusive of 53,962 square feet of leases signed but not yet commenced, as compared to 94.1% at the end of the previous quarter.




Significant leases that were signed in the second quarter included:
Total of 227,670 square feet of leases signed at One Vanderbilt Avenue:
New lease for 97,652 square feet, for 15.0 years;
New lease with MSD Partners for 35,567 square feet, for 15.0 years;
New lease with Mamoura Holdings (US), LLC for 28,448 square feet, for 10.0 years;
Expansion lease with TD Securities for 24,020 square feet, for 20.0 years, which increases TD Securities' footprint in the building to 142,892 square feet;
New lease with Kyndrel for 22,531 square feet, for 9.0 years;
New lease with Nearwater Management LLC for 17,289 square feet, for 7.0 years; and
Expansion lease with InTandem Capital Partners LLC and Sagewind Capital LLC for 2,163 square feet, for 7.0 years, which increases their joint footprint in the building to 12,328 square feet;
Early renewal with Wells Fargo Bank N.A. for 103,803 square feet at 100 Park Avenue, for 2.1 years;
New lease with GQG Partners, LLC for 8,936 square feet at 280 Park Avenue, for 15.0 years; and
New retail lease with Vashi for 11,777 square feet at 110 Greene Street, for 15.0 years.
Investment Activity
To date in 2021, the Company has repurchased 3.4 million shares of its common stock and redeemed 0.6 million units of its Operating Partnership, or OP units, bringing total repurchases and redemptions to 34.9 million shares of common stock and 1.6 million OP units for a combined total of $3.1 billion under the previously announced $3.5 billion share repurchase program.
In June, the Company closed on the previously announced sale of 635-641 Sixth Avenue for a gross sale price of $325.0 million, equating to more than $1,200 per square foot. The property is comprised of two adjoined buildings totaling eight stories and 267,000 square feet, occupying the full western block-front on Sixth Avenue from 19th Street to 20th Street in Midtown South. The transaction generated net cash proceeds to the Company of $313.2 million.
In June, the Company closed on the previously announced sale of its 20.0% interest in 605 West 42nd Street, also known as "Sky," for a gross asset valuation of $858.1 million. The 71-story, 948,233 square foot luxury multifamily tower includes 295 affordable units of dedicated affordable housing and 68,000 square feet of retail space. The transaction generated net cash proceeds to the Company of $54.5 million.





In June, the Company closed on the acquisition of the fee interest in 461 Fifth Avenue for a gross purchase price of $28.0 million pursuant to a purchase option under the ground lease at the property, thereby consolidating a leasehold position into 100% unencumbered fee ownership. The Company acquired the leasehold interest in the property in 2003. The property comprises 200,000 square feet on the corner of Fifth Avenue and 40th Street in East Midtown.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity ("DPE") portfolio was $1.11 billion at June 30, 2021. The portfolio is comprised of $1.07 billion of investments, which are classified in the debt and preferred equity line item of the balance sheet, at a weighted average current yield of 7.3%, or 9.0% excluding the effect of $238.7 million of investments that are on non-accrual, and mortgage investments aggregating $0.04 billion at a weighted average current yield of 3.6% that are included in other balance sheet line items for accounting purposes.
During the second quarter, the Company acquired a subordinate debt investment for $60.4 million, all of which was retained, at a yield of 14.0%.
During the second quarter, the Company generated $53.8 million of cash through the sale, at par, of one DPE position.
Financing Activity
In June, the Company, along with its joint venture partners, closed on the previously announced $3.0 billion 10-year fixed-rate refinancing of One Vanderbilt Avenue. The loan was securitized in a single asset, single borrower (SASB) agented CMBS transaction. The new financing carries a stated coupon of 2.855 percent, equivalent to a rate of 2.947 percent inclusive of hedging costs, and replaces the previous $1.75 billion construction facility that had an outstanding balance of approximately $1.54 billion at the time of repayment.
Dividends
In the second quarter of 2021, the Company declared:
Three monthly dividends on its outstanding common stock of $0.3033 per share which were paid on May 17, June 15, and July 15, 2021, equating to an annualized dividend of $3.64 per share of common stock; and
Quarterly dividend on its outstanding 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share for the period April 15, 2021 through and including July 14, 2021, which was paid on July 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, July 22, 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 www.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 www.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 5177356.
A replay of the call will be available for 7 days after the call by dialing (855) 859-2056 using conference ID 1787091. A webcast replay will also be available in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under “Presentations & Webcasts.”
Company Profile
SL Green Realty Corp., 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 June 30, 2021, SL Green held interests in 77 buildings totaling 35.3 million square feet. This included ownership interests in 27.1 million square feet of Manhattan buildings and 7.4 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. 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 EndedSix Months Ended
June 30,June 30,
Revenues:2021202020212020
Rental revenue, net$163,916 $174,141 $326,726 $369,604 
Escalation and reimbursement 20,695 21,745 45,974 48,913 
Investment income20,107 39,943 39,380 78,476 
Other income13,389 17,870 32,129 71,009 
        Total revenues218,107 253,699 444,209 568,002 
Expenses:
Operating expenses, including related party expenses of $3,039 and $5,264 in 2021 and $2,739 and $6,488 in 202043,883 40,897 86,167 94,763 
Real estate taxes43,768 41,661 89,179 88,283 
Operating lease rent6,707 7,831 13,446 15,198 
Interest expense, net of interest income18,960 30,070 42,348 67,564 
Amortization of deferred financing costs3,386 2,661 7,160 5,161 
Depreciation and amortization57,261 95,941 120,257 164,220 
Loan loss and other investment reserves, net of recoveries 6,813  18,061 
Transaction related costs3 373 25 438 
Marketing, general and administrative22,064 23,510 44,949 43,080 
        Total expenses196,032 249,757 403,531 496,768 
Equity in net loss from unconsolidated joint ventures(12,970)(2,199)(15,834)(15,013)
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate8,471 — (4,158)— 
Purchase price and other fair value adjustment(1,947)— 717 — 
Gain on sale of real estate, net98,960 64,884 97,572 137,520 
Depreciable real estate reserves2,545 — (5,696)— 
        Net income117,134 66,627 113,279 193,741 
Net income attributable to noncontrolling interests in the Operating Partnership(6,282)(3,070)(5,806)(9,272)
Net loss (income) attributable to noncontrolling interests in other partnerships40 (1,023)1,539 (730)
Preferred unit distributions(1,823)(2,353)(3,669)(5,019)
Net income attributable to SL Green109,069 60,181 105,343 178,720 
Perpetual preferred stock dividends(3,737)(3,737)(7,475)(7,475)
        Net income attributable to SL Green common stockholders$105,332 $56,444 $97,868 $171,245 
Earnings Per Share (EPS)
Net income per share (Basic) (1)
$1.52 $0.76 $1.41 $2.28 
Net income per share (Diluted) (1)
$1.51 $0.76 $1.40 $2.28 
Funds From Operations (FFO)
FFO per share (Basic) (1)
$1.60 $1.75 $3.35 $3.90 
FFO per share (Diluted) (1)
$1.60 $1.74 $3.33 $3.89 
FFO per share (Pro forma) (2)
$1.60 $1.70 $3.33 $3.79 
Basic ownership interest
Weighted average REIT common shares for net income per share68,980 73,538 68,996 74,598 
Weighted average partnership units held by noncontrolling interests4,093 4,120 4,121 4,170 
Basic weighted average shares and units outstanding (1)
73,073 77,658 73,117 78,768 
Diluted ownership interest
Weighted average REIT common share and common share equivalents69,634 73,946 69,778 75,038 
Weighted average partnership units held by noncontrolling interests4,093 4,120 4,121 4,170 
Diluted weighted average shares and units outstanding (1)
73,727 78,066 73,899 79,208 
Pro forma adjustment (2)
 2,153  2,184 
Pro forma diluted weighted average shares and units outstanding (2)
73,727 80,219 73,899 81,392 
(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 2020 basic and diluted weighted average common shares outstanding have been retroactively adjusted to reflect the reverse stock split.
(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. GAAP requires the weighted average common shares outstanding to be adjusted retroactively for all periods presented to reflect the reverse stock split. To facilitate comparison between the periods presented, the Company calculated Pro forma diluted weighted average shares and units outstanding for the 2020 periods presented, which adjusts the share counts back to the originally-reported numbers.




SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30,December 31,
20212020
Assets(Unaudited)
Commercial real estate properties, at cost:
Land and land interests$1,403,399 $1,315,832 
Building and improvements4,088,659 4,168,193 
Building leasehold and improvements1,642,595 1,448,134 
Right of use asset - financing leases27,445 55,711 
Right of use asset - operating leases502,316 367,209 
7,664,414 7,355,079 
Less: accumulated depreciation(2,008,438)(1,956,077)
5,655,976 5,399,002 
Assets held for sale— — 
Cash and cash equivalents218,337 266,059 
Restricted cash98,164 106,736 
Investment in marketable securities32,339 28,570 
Tenant and other receivables40,147 44,507 
Related party receivables36,430 34,657 
Deferred rents receivable304,140 302,791 
Debt and preferred equity investments, net of discounts and deferred origination fees of $7,922 and $11,232 and allowances of $13,213 and $13,213 in 2021 and 2020, respectively1,072,711 1,076,542 
Investments in unconsolidated joint ventures3,209,151 3,823,322 
Deferred costs, net161,962 177,168 
Other assets336,807 448,213 
        Total assets$11,166,164 $11,707,567 
Liabilities
Mortgages and other loans payable$1,874,592 $2,001,361 
Revolving credit facility— 110,000 
Unsecured term loan1,500,000 1,500,000 
Unsecured notes1,251,404 1,251,888 
Deferred financing costs, net(26,820)(34,521)
Total debt, net of deferred financing costs4,599,176 4,828,728 
Accrued interest payable13,771 14,825 
Accounts payable and accrued expenses126,929 151,309 
Deferred revenue114,536 118,572 
Lease liability - financing leases124,808 152,521 
Lease liability - operating leases443,313 339,458 
Dividend and distributions payable24,407 149,294 
Security deposits54,797 53,836 
Liabilities related to assets held for sale— — 
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities100,000 100,000 
Other liabilities196,966 302,798 
        Total liabilities5,798,703 6,211,341 
Commitments and contingencies— — 
Noncontrolling interest in the Operating Partnership355,201 358,262 
Preferred units198,503 202,169 
Equity
Stockholders’ equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2021 and December 31, 2020221,932 221,932 
Common stock, $0.01 par value 160,000 shares authorized, 68,906 and 69,534 issued and outstanding at June 30, 2021 and December 31, 2020, respectively (including 1,026 held in Treasury at both June 30, 2021 and December 31, 2020)690 716 
Additional paid-in capital3,823,290 3,862,949 
Treasury stock at cost(124,049)(124,049)
Accumulated other comprehensive loss(66,863)(67,247)
Retained earnings934,132 1,015,462 
Total SL Green Realty Corp. stockholders’ equity4,789,132 4,909,763 
Noncontrolling interests in other partnerships24,625 26,032 
        Total equity4,813,757 4,935,795 
Total liabilities and equity$11,166,164 $11,707,567 




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

Three Months EndedSix Months Ended
June 30,June 30,
Funds From Operations (FFO) Reconciliation:2021202020212020
Net income attributable to SL Green common stockholders$105,332 $56,444 $97,868 $171,245 
Add:
Depreciation and amortization57,261 95,941 120,257 164,220 
Joint venture depreciation and noncontrolling interest adjustments59,485 45,107 115,187 101,425 
Net income attributable to noncontrolling interests6,242 4,093 4,267 10,002 
Less:
Gain on sale of real estate, net98,960 64,884 97,572 137,520 
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate8,471 — (4,158)— 
Purchase price and other fair value adjustments— — 2,664 — 
Depreciable real estate reserves2,545 — (5,696)— 
Depreciation on non-rental real estate assets672 609 1,199 1,259 
FFO attributable to SL Green common stockholders and unit holders$117,672 $136,092 $245,998 $308,113 


Three Months EndedSix Months Ended
June 30,June 30,
Operating income and Same-store NOI Reconciliation:2021202020212020
Net income$117,134 $66,627 $113,279 $193,741 
Equity in net (gain) loss on sale of interest in unconsolidated joint venture/real estate(8,471)— 4,158 — 
Purchase price and other fair value adjustments1,947 — (717)— 
Gain on sale of real estate, net(98,960)(64,884)(97,572)(137,520)
Depreciable real estate reserves(2,545)— 5,696 — 
Depreciation and amortization57,261 95,941 120,257 164,220 
Interest expense, net of interest income18,960 30,070 42,348 67,564 
Amortization of deferred financing costs3,386 2,661 7,160 5,161 
Operating income88,712 130,415 194,609 293,166 
Equity in net loss from unconsolidated joint ventures12,970 2,199 15,834 15,013 
Marketing, general and administrative expense22,064 23,510 44,949 43,080 
Transaction related costs, net373 25 438 
Investment income(20,107)(39,943)(39,380)(78,476)
Loan loss and other investment reserves, net of recoveries— 6,813 — 18,061 
Non-building revenue(8,027)(192)(12,488)(3,982)
Net operating income (NOI)95,615 123,175 203,549 287,300 
Equity in net loss from unconsolidated joint ventures(12,970)(2,199)(15,834)(15,013)
SLG share of unconsolidated JV depreciation and amortization58,537 46,217 113,812 92,091 
SLG share of unconsolidated JV interest expense, net of interest income34,274 32,714 67,701 68,491 
SLG share of unconsolidated JV amortization of deferred financing costs3,545 1,693 6,430 3,380 
SLG share of unconsolidated JV loss on early extinguishment of debt941 — 941 — 
SLG share of unconsolidated JV investment income(314)(310)(610)(617)
SLG share of unconsolidated JV non-building revenue(599)(2,425)(2,186)(4,025)
NOI including SLG share of unconsolidated JVs179,029 198,865 373,803 431,607 
NOI from other properties/affiliates(16,937)(27,921)(51,740)(100,334)
Same-store NOI162,092 170,944 322,063 331,273 
Ground lease straight-line adjustment244 245 489 533 
Joint Venture ground lease straight-line adjustment233 252 465 594 
Straight-line and free rent(7,884)100 (11,264)(2,800)
Amortization of acquired above and below-market leases, net(100)(858)(195)(2,428)
Joint Venture straight-line and free rent(2,166)(4,271)(9,515)(10,030)
Joint Venture amortization of acquired above and below-market leases, net(4,824)(3,807)(9,135)(7,630)
Same-store cash NOI$147,595 $162,605 $292,908 $309,512 
Lease termination income(1,095)(10,570)(1,100)(10,590)
Joint Venture lease termination income(247)(172)(254)(179)
Same-store cash NOI excluding lease termination income$146,253 $151,863 $291,554 $298,743 









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

https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-a21q2supplementalcovertemp.jpg


https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg


SL Green Realty Corp. is a self-managed real estate investment trust, or REIT, with in-house capabilities in property management, acquisitions and dispositions, financing, development, redevelopment, construction and leasing.
As of June 30, 2021, the Company held interests in 77 buildings totaling 35.3 million square feet. This included ownership interests in 27.1 million square feet in Manhattan buildings and 7.4 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's website is www.slgreen.com.
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.
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. 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 June 30, 2021 that will be included on Form 10-Q to be filed on or before August 9, 2021.
Supplemental Information
2
Second Quarter 2021

TABLE OF CONTENTS
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg
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
Property Portfolio-
Largest Tenants
Tenant Diversification
Leasing Activity-
Lease Expirations-
Summary of Real Estate Acquisition/Disposition Activity-
Corporate Information
Non-GAAP Disclosures and Reconciliations
Analyst Coverage

Supplemental Information
3
Second Quarter 2021

DEFINITIONS
                               
                          
                         
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

Annualized cash rent - Monthly base rent and escalations per the lease, excluding concessions, deferrals, and abatements 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 2021 are as follows:
Added to Same-Store in 2021:Removed from Same-Store in 2021:
115 Spring Street750 Third Avenue (redevelopment)
760 Madison Avenue (redevelopment)
55 West 46th Street "Tower 46" (disposed)
605 West 42nd Street "Sky" (disposed)
635-641 Sixth Avenue (disposed)
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.
Supplemental Information
4
Second Quarter 2021

DEFINITIONS
                               
                          
                         
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

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 respective 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
Second Quarter 2021

SECOND QUARTER 2021 HIGHLIGHTS

Unaudited

https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

New York, NY, July 21, 2021 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended June 30, 2021 of $105.3 million, or $1.51 per share, as compared to net income of $56.4 million, or $0.76 per share, for the same quarter in 2020. Net income attributable to common stockholders for the second quarter of 2021 includes net gains totaling $108.3 million, or $1.47 per share, recognized from the sales of 635-641 Sixth Avenue and our interests in 605 West 42nd Street, as compared to a net gain of $65.4 million, or $0.82 per share, in the second quarter of 2020 recognized from the sale of the retail condominium at 609 Fifth Avenue.
The Company also reported net income attributable to common stockholders for the six months ended June 30, 2021 of $97.9 million, or $1.40 per share, as compared to net income of $171.2 million, or $2.28 per share, for the same period in 2020. Net income attributable to common stockholders for the six months ended June 30, 2021 includes $94.1 million, or $1.27 per share, of net gains recognized from the sale of real estate interests and non-cash fair value adjustments. Net income for the six months ended June 30, 2020 included $137.5 million, or $1.69 per share, of net gains recognized from the sale of real estate interests and non-cash fair value adjustments.
The Company reported FFO for the quarter ended June 30, 2021 of $117.7 million, or $1.60 per share, as compared to FFO for the same period in 2020 of $136.1 million, or $1.70 per share. FFO for the second quarter of the prior year included $12.4 million, or $0.15 per share, of lease termination income as compared to just $1.1 million, or $0.02 per share, of lease termination income included in the second quarter of 2021.
The Company also reported FFO for the six months ended June 30, 2021 of $246.0 million, or $3.33 per share, as compared to FFO of $308.1 million, or $3.79 per share, for the same period in 2020. FFO for the six months ended June 30, 2020 included $25.1 million, or $0.31 per share, of incremental income from Credit Suisse at 1 Madison Avenue representing rent through December 31, 2020.
All per share amounts are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended June 30, 2021, the Company reported consolidated revenues and operating income of $218.1 million and $88.7 million, respectively, compared to $253.7 million and $130.4 million, respectively, for the same period in 2020.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 9.2% for the second quarter of 2021, and decreased 3.7% excluding lease termination income, as compared to the same period in 2020, an interim level that is consistent with our full-year 2021 goals and objectives.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, decreased by 5.4% for the six months June 30, 2021, and decreased 2.4% excluding lease termination income, as compared to the same period in 2020, an interim level that is consistent with our full-year 2021 goals and objectives.
During the second quarter of 2021, the Company signed 42 office leases in its Manhattan office portfolio totaling 557,703 square feet. The average lease term on the Manhattan office
leases signed in the second quarter of 2021 was 4.7 years and average tenant concessions were 2.4 months of free rent with a tenant improvement allowance of $17.16 per rentable square foot, excluding leases signed at One Vanderbilt Avenue. Twenty-five leases comprising 265,798 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 $84.12 per rentable square foot, representing a 1.1% decrease over the previous fully escalated rents on the same office spaces.
During the first six months of 2021, the Company signed 63 office leases in its Manhattan office portfolio totaling 910,455 square feet. The average lease term on the Manhattan office leases signed in the first six months of 2021 was 5.3 years and average tenant concessions were 4.7 months of free rent with a tenant improvement allowance of $39.76 per rentable square foot, excluding leases signed at One Vanderbilt Avenue. Thirty-eight leases comprising 453,124 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 $72.98 per rentable square foot, representing a 1.7% decrease over the previous fully escalated rents on the same office spaces.
Occupancy in the Company's Manhattan same-store office portfolio was 93.6% as of June 30, 2021, inclusive of 53,962 square feet of leases signed but not yet commenced, as compared to 94.1% at the end of the previous quarter.
Significant leases that were signed in the second quarter included:
Total of 227,670 square feet of leases signed at One Vanderbilt Avenue:
New lease for 97,652 square feet, for 15.0 years;
New lease with MSD Partners for 35,567 square feet, for 15.0 years;
New lease with Mamoura Holdings (US), LLC for 28,448 square feet, for 10.0 years;
Expansion lease with TD Securities for 24,020 square feet, for 20.0 years, which increases TD Securities' footprint in the building to 142,892 square feet;
New lease with Kyndrel for 22,531 square feet, for 9.0 years;
New lease with Nearwater Management LLC for 17,289 square feet, for 7.0 years; and
Expansion lease with InTandem Capital Partners LLC and Sagewind Capital LLC for 2,163 square feet, for 7.0 years, which increases their joint footprint in the building to 12,328 square feet;
Early renewal with Wells Fargo Bank N.A. for 103,803 square feet at 100 Park Avenue, for 2.1 years;
New lease with GQG Partners, LLC for 8,936 square feet at 280 Park Avenue, for 15.0 years; and
New retail lease with Vashi for 11,777 square feet at 110 Greene Street, for 15.0 years.

Supplemental Information
6
Second Quarter 2021

SECOND QUARTER 2021 HIGHLIGHTS

Unaudited

https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

Investment Activity
To date in 2021, the Company has repurchased 3.4 million shares of its common stock and redeemed 0.6 million units of its Operating Partnership, or OP units, bringing total repurchases and redemptions to 34.9 million shares of common stock and 1.6 million OP units for a combined total of $3.1 billion under the previously announced $3.5 billion share repurchase program.
In June, the Company closed on the previously announced sale of 635-641 Sixth Avenue for a gross sale price of $325.0 million, equating to more than $1,200 per square foot. The property is comprised of two adjoined buildings totaling eight stories and 267,000 square feet, occupying the full western block-front on Sixth Avenue from 19th Street to 20th Street in Midtown South. The transaction generated net cash proceeds to the Company of $313.2 million.
In June, the Company closed on the previously announced sale of its 20.0% interest in 605 West 42nd Street, also known as "Sky," for a gross asset valuation of $858.1 million. The 71-story, 948,233 square foot luxury multifamily tower includes 295 affordable units of dedicated affordable housing and 68,000 square feet of retail space. The transaction generated net cash proceeds to the Company of $54.5 million.
In June, the Company closed on the acquisition of the fee interest in 461 Fifth Avenue for a gross purchase price of $28.0 million pursuant to a purchase option under the ground lease at the property, thereby consolidating a leasehold position into 100% unencumbered fee ownership. The Company acquired the leasehold interest in the property in 2003. The property comprises 200,000 square feet on the corner of Fifth Avenue and 40th Street in East Midtown.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity ("DPE") portfolio was $1.11 billion at June 30, 2021. The portfolio is comprised of $1.07 billion of investments, which are classified in the debt and preferred equity line item of the balance sheet, at a weighted average current yield of 7.3%, or 9.0% excluding the effect of $238.7 million of investments that are on non-accrual, and mortgage investments aggregating $0.04 billion at a weighted average current yield of 3.6% that are included in other balance sheet line items for accounting purposes.
During the second quarter, the Company acquired a subordinate debt investment for $60.4 million, all of which was retained, at a yield of 14.0%.
During the second quarter, the Company generated $53.8 million of cash through the sale, at par, of one DPE position.
Financing Activity
In June, the Company, along with its joint venture partners, closed on the previously announced $3.0 billion 10-year fixed-rate refinancing of One Vanderbilt Avenue. The loan was securitized in a single asset, single borrower (SASB) agented CMBS transaction. The new financing carries a stated coupon of 2.855 percent, equivalent to a rate of 2.947 percent inclusive of hedging costs, and replaces the previous $1.75 billion construction facility that had an outstanding balance of approximately $1.54 billion at the time of repayment.
Dividends
In the second quarter of 2021, the Company declared:
Three monthly dividends on its outstanding common stock of $0.3033 per share which were paid on May 17, June 15, and July 15, 2021, equating to an annualized dividend of $3.64 per share of common stock; and
Quarterly dividend on its outstanding 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share for the period April 15, 2021 through and including July 14, 2021, which was paid on July 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, July 22, 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 www.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 www.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 5177356.
A replay of the call will be available for 7 days after the call by dialing (855) 859-2056 using conference ID 1787091. A webcast replay will also be available in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under “Presentations & Webcasts.”
Supplemental Information
7
Second Quarter 2021

KEY FINANCIAL DATA

Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

As of or for the three months ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Earnings Per Share
Net income (loss) available to common stockholders (EPS) - diluted (1)
$1.51 $(0.11)$2.41 $0.19 $0.76 
Funds from operations (FFO) available to common stockholders - diluted (1)
$1.60 $1.73 $1.59 $1.80 $1.74 
Funds from operations (FFO) available to common stockholders - pro forma (2)
$1.60 $1.73 $1.56 $1.75 $1.70 
Common Share Price & Dividends
Closing price at the end of the period (1)
$80.00 $69.99 $61.32 $47.72 $50.73 
Closing high price during period (1)
$85.17 $77.76 $65.76 $52.74 $64.96 
Closing low price during period (1)
$69.52 $58.13 $42.87 $45.11 $37.90 
Annual dividend per common share$3.64 $3.64 $3.64 $3.54 $3.54 
FFO payout ratio (trailing 12 months)54.5%53.3%50.3%48.6%48.2%
Funds available for distribution (FAD) payout ratio (trailing 12 months)63.4%59.5%62.0%59.3%67.0%
Common Shares & Units
Common shares outstanding (1)
67,880 69,354 68,508 70,969 71,586 
Units outstanding3,808 4,156 3,939 4,027 4,045 
Total common shares and units outstanding71,688 73,510 72,447 74,996 75,631 
Weighted average common shares and units outstanding - basic (1)
73,073 73,158 74,072 74,972 77,658 
Weighted average common shares and units outstanding - diluted (1)
73,727 74,070 75,163 75,414 78,066 
Weighted average common shares and units outstanding - pro forma (2)
73,727 74,070 76,575 77,491 80,219 
Market Capitalization
Market value of common equity$5,735,040 $5,144,965 $4,442,450 $3,578,809 $3,836,761 
Liquidation value of preferred equity/units428,503 428,503 432,169 432,169 455,448 
Consolidated debt4,725,996 5,349,310 4,963,249 5,466,849 6,189,658 
Consolidated market capitalization$10,889,539 $10,922,778 $9,837,868 $9,477,827 $10,481,867 
SLG share of unconsolidated JV debt5,558,666 4,422,585 4,672,371 4,588,930 4,230,047 
Market capitalization including SLG share of unconsolidated JVs$16,448,205 $15,345,363 $14,510,239 $14,066,757 $14,711,914 
Consolidated debt service coverage (trailing 12 months)3.60x3.61x3.54x3.52x3.40x
Consolidated fixed charge coverage (trailing 12 months)2.83x2.85x2.82x2.83x2.75x
Debt service coverage, including SLG share of unconsolidated JVs (trailing 12 months)2.37x2.41x2.41x2.44x2.41x
Fixed charge coverage, including SLG share of unconsolidated JVs (trailing 12 months)2.01x2.04x2.06x2.08x2.06x
(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 share-related data presented here for the periods ending 12/31/20, 9/30/20 and 6/30/20 have been retroactively adjusted to reflect the reverse stock split.
(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. GAAP requires the weighted average common shares outstanding to be adjusted retroactively for all periods presented to reflect the reverse stock split. To facilitate comparison between the periods presented, the Company calculated Pro forma diluted weighted average shares and units outstanding for the 2020 periods presented, which adjusts the share counts back to the originally-reported numbers.
Supplemental Information
8
Second Quarter 2021

KEY FINANCIAL DATA

Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

As of or for the three months ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Selected Balance Sheet Data
Real estate assets before depreciation$7,664,414 $7,830,574 $7,355,079 $9,021,490 $9,046,938 
Investments in unconsolidated joint ventures$3,209,151 $3,698,701 $3,823,322 $2,946,673 $2,952,681 
Debt and preferred equity investments$1,072,711 $1,097,202 $1,076,542 $1,153,363 $1,221,936 
Cash and cash equivalents$218,337 $304,999 $266,059 $221,404 $1,015,348 
Investment in marketable securities$32,339 $23,784 $28,570 $27,734 $27,345 
Total assets$11,166,164 $12,044,045 $11,707,567 $12,324,039 $13,071,564 
Fixed rate & hedged debt$3,930,094 $3,932,789 $3,135,572 $3,338,268 $3,379,743 
Variable rate debt795,902 
(1)
1,416,521 1,827,677 2,128,581 2,809,915 
Total consolidated debt$4,725,996 $5,349,310 $4,963,249 $5,466,849 $6,189,658 
Deferred financing costs, net of amortization(26,820)(30,558)(34,521)(47,677)(48,344)
Total consolidated debt, net$4,699,176 $5,318,752 $4,928,728 $5,419,172 $6,141,314 
Total liabilities$5,798,703 $6,535,798 $6,211,341 $6,634,385 $7,281,652 
Fixed rate & hedged debt, including SLG share of unconsolidated JV debt$8,287,100 $6,155,058 $5,632,531 $5,837,841 $5,609,865 
Variable rate debt, including SLG share of unconsolidated JV debt1,997,562 
(1)
3,616,837 4,003,089 4,217,938 4,809,840 
Total debt, including SLG share of unconsolidated JV debt$10,284,662 $9,771,895 $9,635,620 $10,055,779 $10,419,705 
Selected Operating Data
Property operating revenues$184,611 $188,089 $190,391 $195,515 $195,886 
Property operating expenses(94,358)(94,434)(93,909)(96,405)(90,389)
Property NOI$90,253 $93,655 $96,482 $99,110 $105,497 
SLG share of unconsolidated JV Property NOI85,492 86,483 78,378 82,384 76,705 
Property NOI, including SLG share of unconsolidated JV Property NOI$175,745 $180,138 $174,860 $181,494 $182,202 
Investment income20,107 19,273 18,699 22,988 39,943 
Other income13,389 18,740 25,808 31,341 17,870 
Marketing general & administrative expenses(22,064)(22,885)(25,144)(23,602)(23,510)
SLG share of investment income and other income from unconsolidated JVs1,163 2,642 2,041 4,814 2,939 
Income taxes795 708 (859)— 900 
Transaction costs, including SLG share of unconsolidated JVs(3)(22)(20)(45)(373)
Loan loss and other investment reserves, net of recoveries— — (8,280)(8,957)(6,813)
EBITDAre$189,132 $198,594 $187,105 $208,033 $213,158 
(1) Does not reflect $308.4 million of floating rate debt and preferred equity investments that provide a hedge against floating rate debt.

Supplemental Information
9
Second Quarter 2021

KEY FINANCIAL DATA
Manhattan Properties (1)
Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg
As of or for the three months ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Selected Operating Data
Property operating revenues$178,877 $183,701 $184,227 $189,263 $188,134 
Property operating expenses84,307 87,056 87,966 88,115 79,560 
Property NOI$94,570 $96,645 $96,261 $101,148 $108,574 
Other income - consolidated$2,700 $11,748 $2,575 $20,975 $12,448 
SLG share of property NOI from unconsolidated JVs$85,491 $86,483 $78,379 $82,384 $76,704 
Office Portfolio Statistics (Manhattan Operating Properties )
Consolidated office buildings in service16 18 18 18 18 
Unconsolidated office buildings in service11 11 10 
25 27 29 29 28 
Consolidated office buildings in service - square footage10,259,345 10,526,345 10,681,045 10,647,191 10,647,191 
Unconsolidated office buildings in service - square footage10,869,183 10,869,183 11,841,483 11,841,483 11,216,183 
21,128,528 21,395,528 22,522,528 22,488,674 21,863,374 
Same-Store office occupancy (consolidated + JVs)93.4%93.7%93.6%94.0%93.8%
Same-Store office occupancy inclusive of leases signed not yet commenced93.6%94.1%94.3%95.2%95.4%
Office Leasing Statistics (Manhattan Operating Properties)
New leases commenced17 21 16 25 
Renewal leases commenced13 12 18 25 
Total office leases commenced30 28 28 43 34 
Commenced office square footage filling vacancy45,922 216,182 42,262 44,168 46,502 
Commenced office square footage on previously occupied space (M-T-M leasing) (2)
199,341 292,625 473,133 305,811 269,823 
Total office square footage commenced245,263 508,807 515,395 349,979 316,325 
Average starting cash rent psf - office leases commenced$77.42$56.64$61.66$67.54$75.50
Previous escalated cash rent psf - office leases commenced (3)
$78.90$60.33$63.08$67.29$73.84
(Decrease) increase in new cash rent over previously escalated cash rent (2) (3)
(1.9)%(6.1)%(2.3)%0.4%2.2%
Average lease term5.18.18.06.57.8
Tenant concession packages psf$20.99$70.04$48.13$38.49$31.37
Free rent months4.36.05.56.75.0
(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
Second Quarter 2021

COMPARATIVE BALANCE SHEETS

Unaudited
(Dollars in Thousands)
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

As of
6/30/20213/31/202112/31/20209/30/20206/30/2020
Assets
Commercial real estate properties, at cost:
     Land and land interests$1,403,399 $1,445,199 $1,315,832 $1,639,118 $1,625,483 
     Building and improvements 4,088,659 4,096,930 4,168,193 5,483,155 5,363,464 
     Building leasehold and improvements 1,642,595 1,730,418 1,448,134 1,442,251 1,443,855 
     Right of use asset - financing leases27,445 55,711 55,711 75,711 176,152 
     Right of use asset - operating leases502,316 502,316 367,209 381,255 381,255 
7,664,414 7,830,574 7,355,079 9,021,490 8,990,209 
Less: accumulated depreciation(2,008,438)(2,004,945)(1,956,077)(2,260,247)(2,186,157)
Net real estate5,655,976 5,825,629 5,399,002 6,761,243 6,804,052 
Other real estate investments:
    Investment in unconsolidated joint ventures3,209,151 3,698,701 3,823,322 2,946,673 2,952,681 
    Debt and preferred equity investments, net1,072,711 
(1)
1,097,202 1,076,542 1,153,363 1,221,936 
Assets held for sale, net— — — — 49,687 
Cash and cash equivalents218,337 304,999 266,059 221,404 1,015,348 
Restricted cash98,164 96,608 106,736 83,045 85,935 
Investment in marketable securities32,339 23,784 28,570 27,734 27,345 
Tenant and other receivables40,147 42,505 44,507 72,806 90,305 
Related party receivables36,430 34,310 34,657 31,936 16,984 
Deferred rents receivable304,140 304,420 302,791 304,673 302,729 
Deferred costs, net161,962 170,252 177,168 206,289 217,812 
Other assets336,807 445,635 448,213 514,873 286,750 
 Total Assets$11,166,164 $12,044,045 $11,707,567 $12,324,039 $13,071,564 
(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
Second Quarter 2021

COMPARATIVE BALANCE SHEETS

Unaudited
(Dollars in Thousands)
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

As of
6/30/20213/31/202112/31/20209/30/20206/30/2020
Liabilities
Mortgages and other loans payable$1,874,592 $1,867,663 $2,001,361 $2,424,721 $2,348,483 
Unsecured term loans1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 
Unsecured notes1,251,404 1,251,647 1,251,888 1,252,128 1,252,366 
Revolving credit facility— 630,000 110,000 190,000 950,000 
Deferred financing costs(26,820)(30,558)(34,521)(47,677)(48,344)
Total debt, net of deferred financing costs4,599,176 5,218,752 4,828,728 5,319,172 6,002,505 
Accrued interest13,771 22,796 14,825 23,438 14,903 
Accounts payable and accrued expenses126,929 120,015 151,309 152,983 165,565 
Deferred revenue114,536 119,215 118,572 117,615 99,655 
Lease liability - financing leases124,808 152,622 152,521 174,983 174,732 
Lease liability - operating leases443,313 455,385 339,458 358,419 361,221 
Dividends and distributions payable24,407 24,924 149,294 25,486 25,611 
Security deposits54,797 54,181 53,836 56,212 58,486 
Liabilities related to assets held for sale— — — — 38,272 
Junior subordinated deferrable interest debentures100,000 100,000 100,000 100,000 100,000 
Other liabilities196,966 267,908 302,798 306,077 240,702 
Total liabilities5,798,703 6,535,798 6,211,341 6,634,385 7,281,652 
Noncontrolling interest in operating partnership
     (3,808 units outstanding) at 6/30/2021355,201 374,124 358,262 353,480 358,702 
Preferred units198,503 198,503 202,169 202,169 225,448 
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, 68,906
issued and outstanding at 6/30/2021, including 1,026 shares held in treasury690 705 716 741 748 
Additional paid–in capital3,823,290 3,913,258 3,862,949 3,998,516 4,021,891 
Treasury stock (124,049)(124,049)(124,049)(124,049)(124,049)
Accumulated other comprehensive loss(66,863)(18,897)(67,247)(76,200)(82,371)
Retained earnings934,132 918,077 1,015,462 1,035,172 1,081,821 
Total SL Green Realty Corp. stockholders' equity4,789,132 4,911,026 4,909,763 5,056,112 5,119,972 
Noncontrolling interest in other partnerships24,625 24,594 26,032 77,893 85,790 
Total equity4,813,757 4,935,620 4,935,795 5,134,005 5,205,762 
 Total Liabilities and Equity$11,166,164 $12,044,045 $11,707,567 $12,324,039 $13,071,564 
Supplemental Information
12
Second Quarter 2021

COMPARATIVE STATEMENT OF OPERATIONS

Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

Three Months EndedThree Months EndedSix Months Ended
June 30,June 30,March 31,June 30,June 30,
20212020202120212020
Revenues
Rental revenue, net$163,916 $174,141 $162,810 $326,726 $369,604 
Escalation and reimbursement revenues20,695 21,745 25,279 45,974 48,913 
Investment income20,107 39,943 19,273 39,380 78,476 
Other income13,389 17,870 18,740 32,129 71,009 
Total Revenues, net218,107 253,699 226,102 444,209 568,002 
Equity in net loss from unconsolidated joint ventures(12,970)(2,199)(2,864)(15,834)(15,013)
Expenses
Operating expenses43,883 40,897 42,284 86,167 94,763 
Operating lease rent6,707 7,831 6,739 13,446 15,198 
Real estate taxes43,768 41,661 45,411 89,179 88,283 
Loan loss and other investment reserves, net of recoveries— 6,813 — — 18,061 
Transaction related costs373 22 25 438 
Marketing, general and administrative22,064 23,510 22,885 44,949 43,080 
Total Operating Expenses116,425 121,085 117,341 233,766 259,823 
Operating Income88,712 130,415 105,897 194,609 293,166 
Interest expense, net of interest income18,960 30,070 23,388 42,348 67,564 
Amortization of deferred financing costs3,386 2,661 3,774 7,160 5,161 
Depreciation and amortization57,261 95,941 62,996 120,257 164,220 
Income from Continuing Operations (1)
9,105 1,743 15,739 24,844 56,221 
Gain (loss) on sale of real estate and discontinued operations98,960 64,884 (1,388)97,572 137,520 
Equity in net gain (loss) on sale of joint venture interest / real estate8,471 — (12,629)(4,158)— 
Purchase price and other fair value adjustments(1,947)— 2,664 717 — 
Depreciable real estate reserves2,545 — (8,241)(5,696)— 
Net Income (Loss)117,134 66,627 (3,855)113,279 193,741 
Net (income) loss attributable to noncontrolling interests(6,242)(4,093)1,975 (4,267)(10,002)
Dividends on preferred units(1,823)(2,353)(1,846)(3,669)(5,019)
Net Income (Loss) Attributable to SL Green Realty Corp109,069 60,181 (3,726)105,343 178,720 
Dividends on perpetual preferred shares(3,737)(3,737)(3,738)(7,475)(7,475)
Net Income (Loss) Attributable to Common Stockholders$105,332 $56,444 $(7,464)$97,868 $171,245 
Earnings per share - Net income (loss) per share (basic) (2)
$1.52 $0.76 $(0.11)$1.41 $2.28 
Earnings per share - Net income (loss) per share (diluted) (2)
$1.51 $0.76 $(0.11)$1.40 $2.28 
(1) Before gain on sale and equity in net gain (loss) 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. 2020 basic and diluted Earnings per share have been retroactively adjusted to reflect the reverse stock split.
Supplemental Information
13
Second Quarter 2021

COMPARATIVE COMPUTATION OF FFO AND FAD

Unaudited
(Dollars in Thousands Except Per Share)
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

Three Months EndedThree Months EndedSix Months Ended
June 30,June 30,March 31,June 30,June 30,
20212020202120212020
Funds from Operations
Net Income (Loss) Attributable to Common Stockholders$105,332 $56,444 $(7,464)$97,868 $171,245 
Depreciation and amortization57,261 95,941 62,996 120,257 164,220 
Joint ventures depreciation and noncontrolling interests adjustments59,485 45,107 55,702 115,187 101,425 
Net income (loss) attributable to noncontrolling interests6,242 4,093 (1,975)4,267 10,002 
(Gain) loss on sale of real estate and discontinued operations(98,960)(64,884)1,388 (97,572)(137,520)
Equity in net (gain) loss on sale of joint venture property / real estate(8,471)— 12,629 4,158 — 
Purchase price and other fair value adjustments— — (2,664)(2,664)— 
Depreciable real estate reserves (2,545)— 8,241 5,696 — 
Non-real estate depreciation and amortization(672)(609)(527)(1,199)(1,259)
Funds From Operations$117,672 $136,092 $128,326 $245,998 $308,113 
Funds From Operations - Basic per Share (1)
$1.60 $1.75 $1.75 $3.35 $3.90 
Funds From Operations - Diluted per Share (1)
$1.60 $1.74 $1.73 $3.33 $3.89 
Funds From Operations - Pro forma per Share (2)
$1.60 $1.70 $1.73 $3.33 $3.79 
Funds Available for Distribution
FFO$117,672 $136,092 $128,326 $245,998 $308,113 
Non real estate depreciation and amortization672 609 527 1,199 1,259 
Amortization of deferred financing costs3,386 2,661 3,774 7,160 5,161 
Non-cash deferred compensation11,076 4,697 12,965 24,041 21,562 
FAD adjustment for joint ventures(17,018)(11,698)(23,081)(40,099)(24,917)
Straight-line rental income and other non-cash adjustments(7,632)11,004 (883)(8,515)(36,355)
Second cycle tenant improvements(8,753)(11,147)(2,923)(11,676)(29,784)
Second cycle leasing commissions(3,384)(1,861)(8)(3,392)(4,905)
Revenue enhancing recurring CAPEX(803)(283)(230)(1,033)(467)
Non-revenue enhancing recurring CAPEX(5,156)(5,260)(2,419)(7,575)(8,869)
Reported Funds Available for Distribution$90,060 $124,814 $116,048 $206,108 $230,798 
First cycle tenant improvements$93 $45 $1,261 $1,354 $4,440 
First cycle leasing commissions$15 $68 $135 $150 $1,809 
Development costs$36,472 $14,313 $15,179 $51,651 $36,791 
Redevelopment costs$4,428 $34,811 $1,608 $6,036 $70,696 
Capitalized interest$20,671 $16,368 $17,583 $38,254 $36,851 
(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 2020 basic and diluted FFO per share numbers have been retroactively adjusted to reflect the impact of the reverse stock split.
(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. GAAP requires the weighted average common shares outstanding to be adjusted retroactively for all periods presented to reflect the reverse stock split. To facilitate comparison between the periods presented, the Company calculated Pro forma diluted weighted average shares and units outstanding for the 2020 periods presented, which adjusts the share counts back to the originally-reported numbers.
Supplemental Information
14
Second Quarter 2021

CONSOLIDATED STATEMENT OF EQUITY

Unaudited
(Dollars in Thousands)
https://cdn.kscope.io/96e7090c8dd25c9aa64e8c38f7b2dca3-image121a.jpg

Accumulated
Series IOther
PreferredCommonAdditionalTreasuryRetainedNoncontrollingComprehensive
StockStockPaid-In CapitalStockEarningsInterestsLossTOTAL
Balance at December 31, 2020$221,932 $716 $3,862,949 $(124,049)$1,015,462 $26,032 $(67,247)$4,935,795 
Net income105,343 (1,539)103,804 
Preferred dividends(7,475)(7,475)
Cash distributions declared ($1.82 per common share)(125,836)(125,836)
Cash distributions to noncontrolling interests(173)(173)
Issuance of stock dividend and reverse stock split123,529123,529 
Other comprehensive income - unrealized gain on derivative instruments15,932 15,932 
Other comprehensive loss - SLG share of unconsolidated joint venture net unrealized loss on derivative instruments(15,779)(15,779)
Other comprehensive income - unrealized gain on marketable securities231 231 
DRSPP proceeds467 467 
Repurchases of common stock(28)(177,972)(20,887)(198,887)
Contributions to consolidated joint ventures305 305 
Reallocation of noncontrolling interests in the Operating Partnership(32,475)(32,475)
Deferred compensation plan and stock awards, net14,317 14,319 
Balance at June 30, 2021$221,932 $690 $3,823,290 $(124,049)$934,132 $24,625 $(66,863)$4,813,757 
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION
Common StockOP UnitsStock-Based Compensation