SL Green Realty Corp : SL Green Realty Corp. Reports Fourth Quarter and Full Year 2012 FFO of $1.16 and $5.35 Per Share before Transaction Costs and EPS of $0.22 and $1.74 Per Share
01/30/2013| 06:15pm US/Eastern
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SL Green Realty Corp. (NYSE: SLG):
Financial and Operating Highlights
Fourth quarter FFO of $1.16 per diluted share before transaction
related costs of $0.02 per diluted share compared to prior year FFO of
$1.04 per diluted share before transaction related costs of $0.02 per
diluted share. Full year FFO of $5.35 per diluted share before
transaction related costs of $0.07 per diluted share compared to prior
year FFO of $4.88 per diluted share before transaction related costs
of $0.08 per diluted share.
Fourth quarter net income attributable to common stockholders of
$0.22 per diluted share compared to prior year net income of $0.03 per
diluted share. Full year net income attributable to common
stockholders of $1.74 per diluted share compared to prior year net
income of $7.33 per diluted share.
Combined same-store cash NOI increased 4.6 percent and 4.8 percent
for the fourth quarter and full year, compared to the prior year, an
increase of $6.7 million and $27.6 million, respectively.
Signed 54 Manhattan office leases totaling 321,622 square feet
during the fourth quarter. The mark-to-market on office leases signed
in Manhattan was 4.2 percent higher in the fourth quarter than the
previously fully escalated rents on the same office spaces.
Year-end occupancy of 93.8 percent in Manhattan same-store
properties compared to 93.0 percent at year-end 2011 and 93.3 percent
at September 30, 2012.
Signed 25 Suburban office leases totaling 109,410 square feet
during the fourth quarter. The mark-to-market on office leases signed
in the Suburban portfolio was 6.4 percent lower in the fourth quarter
than the previously fully escalated rents on the same office spaces.
Year-end occupancy of 81.3 percent in the Suburban portfolio
compared to 82.6 percent at year-end 2011 and 81.5 percent at
September 30, 2012.
Investing Highlights
Extended the ground lease at 673 First Avenue by 50 years to August
2087, significantly enhancing the value of the asset.
Formed a joint venture which entered into a 99-year triple net
ground lease on 1080 Amsterdam Avenue, Manhattan. The 82,250 square
foot building comprising 96 units will be redeveloped into a luxury
residential building.
Sold a 49.5 percent interest in 521 Fifth Avenue at a gross sales
price of $315.0 million. Simultaneous with the sale, refinanced the
property with a new $170.0 million mortgage.
Acquired the 68,342 square foot retail property anchored by
Burberry and Diesel at 131-137 Spring Street in Manhattan's popular
SoHo neighborhood, for total consideration of $122.3 million.
Acquired a 35.5 percent interest in the 147,619 square foot office
property at 315 West 36th Street at a gross purchase price of $45.0
million. The acquisition was financed with a $25.0 million mortgage.
Subsequent to the end of the year, sold a 50 percent interest in a
mezzanine loan secured by a New York City office property generating
$57.8 million of proceeds, inclusive of $12.9 million of income.
Financing Highlights
Issued $200.0 million aggregate principal amount of 4.50 percent
senior notes due December 1, 2022, generating $198.2 million in net
proceeds for the Company.
Refinanced the Company's credit facility with a new, lower cost,
5-year $1.2 billion revolving line of credit and a $400 million term
loan.
Repurchased $22.7 million of the outstanding 5.875 percent notes
due 2014 and $19.7 million of the outstanding 6.00 percent notes due
2016, pursuant to a tender offer, resulting in a charge of $3.9
million in the fourth quarter.
Added 673 First Avenue, 110 East 42nd Street and 609 Fifth Avenue
to the unencumbered asset pool, resulting in a charge of $3.1 million
in the fourth quarter.
Increased the quarterly common stock dividend by 32 percent to
$0.33 per share.
Summary
SL Green Realty Corp. (NYSE: SLG) today reported funds from operations,
or FFO, of $107.2 million, or $1.14 per diluted share, for the quarter
ended December 31, 2012, compared to $90.3 million, or $1.02 per diluted
share, for the same quarter in 2011. The Company also reported funds
from operations, or FFO, of $490.3 million, or $5.28 per diluted share,
for the year ended December 31, 2012, compared to $413.8 million, or
$4.80 per diluted share, for the year ended December 31, 2011.
Net income attributable to common stockholders totaled $20.0 million, or
$0.22 per diluted share, for the quarter ended December 31, 2012,
compared to $2.8 million, or $0.03 per diluted share, for the same
quarter in 2011. Full year net income attributable to common
stockholders totaled $156.0 million, or $1.74 per diluted share, for the
year ended December 31, 2012, compared to $617.2 million, or $7.33 per
diluted share, for the year ended December 31, 2011.
Operating and Leasing Activity
For the fourth quarter of 2012, the Company reported revenues and
operating income of $350.7 million and $180.2 million, respectively,
compared to $328.9 million and $167.5 million, respectively, for the
same period in 2011. For the year ended December 31, 2012, the Company
reported revenues and operating income of $1.4 billion and $834.0
million, respectively, compared to $1.3 billion and $702.4 million,
respectively, for the same period in 2011.
Same-store cash NOI on a combined basis increased by 3.8 percent to
$173.6 million for the quarter ended December 31, 2012 as compared to
the same period in 2011, after giving consideration to 1515 Broadway as
a consolidated property and 521 Fifth Avenue as an unconsolidated joint
venture. After giving effect to these same adjustments, consolidated
property same-store NOI increased by 3.8 percent to $147.7 million and
unconsolidated joint venture property same-store NOI increased 3.4
percent to $25.9 million.
Same-store cash NOI on a combined basis increased by 4.8 percent to
$684.2 million for the year ended December 31, 2012 as compared to the
same period in 2011, after giving consideration to 1515 Broadway as a
consolidated property and 521 Fifth Avenue as an unconsolidated joint
venture. After giving effect to these same adjustments, consolidated
property same-store cash NOI increased by 4.7 percent to $580.9 million
and unconsolidated joint venture property same-store cash NOI increased
4.9 percent to $103.4 million.
Occupancy for the Company's stabilized, same-store Manhattan portfolio
at December 31, 2012 was 93.8 percent compared to 93.0 percent at
December 31, 2011 and 93.3 percent at September 30, 2012.
During the quarter, the Company signed 54 office leases in its Manhattan
portfolio totaling 321,622 square feet. Fourteen leases totaling 131,746
square feet represented office leases that replaced previous vacancy,
and 40 office leases comprising 189,876 square feet had average starting
rents of $57.99 per rentable square foot, representing a 4.2 percent
increase over the previously fully escalated rents on the same office
spaces. The average lease term on the Manhattan office leases signed in
the fourth quarter was 8.3 years and average tenant concessions were 4.4
months of free rent with a tenant improvement allowance of $36.96 per
rentable square foot.
During the quarter, 290,108 square feet of office leases commenced in
the Manhattan portfolio, 83,819 square feet of which represented office
leases that replaced previous vacancy, and 206,289 square feet of which
represented office leases that had average starting rents of $56.96 per
rentable square foot, representing a 2.4 percent increase over the
previously fully escalated rents on the same office spaces.
Occupancy for the Company's Suburban portfolio was 81.3 percent at
December 31, 2012, compared to 82.6 percent at December 31, 2011, prior
to the sale of One Court Square in Long Island City, and 81.5 percent at
September 30, 2012.
During the quarter, the Company signed 25 office leases in the Suburban
portfolio totaling 109,410 square feet. Eleven leases totaling 30,470
square feet represented office leases that replaced previous vacancy,
and 14 office leases comprising 78,940 square feet had average starting
rents of $31.74 per rentable square foot, representing a 6.4 percent
decrease over the previously fully escalated rents on the same office
spaces. The average lease term on the Suburban office leases signed in
the fourth quarter was 5.2 years and average tenant concessions were 3.2
months of free rent with a tenant improvement allowance of $16.48 per
rentable square foot.
During the quarter, 140,803 square feet of office leases commenced in
the Suburban portfolio, 32,545 square feet of which represented office
leases that replaced previous vacancy, and 108,258 square feet of which
represented office leases that had average starting rents of $30.04 per
rentable square foot, representing a 7.0 percent decrease over the
previously fully escalated rents on the same office spaces.
Significant leases that were signed during the fourth quarter included:
New lease on 57,359 square feet with Emerge212 3CC LLC for 15 years at
3 Columbus Circle;
Early renewal on 44,646 square feet with Seven Eleven Car Park LLC for
10 years at 711 Third Avenue;
New lease on 38,026 square feet with Robert Half International, Inc.
for 11 years at 125 Park Avenue;
Renewal and expansion on 29,397 square feet with Everest Reinsurance
Company for 10 years at 461 Fifth Avenue;
New lease on 22,047 square feet with Microsoft Corporation for 10.3
years at 641 Sixth Avenue; and
Early renewal on 17,000 square feet with Blaire Corporation for 10.4
years at 6 Landmark Square, Stamford, CT.
Marketing, general and administrative, or MG&A, expenses for the quarter
ended December 31, 2012 were $21.4 million, or 5.2 percent of total
revenues including the Company's share of joint venture revenue compared
to $18.7 million, or 4.9 percent for the quarter ended December 31,
2011. MG&A expenses for the fourth quarter of 2012 included
contributions totaling $430,000 to Hurricane Sandy-related charities.
MG&A for the year ended December 31, 2012 was $82.8 million, or 5.1
percent of total revenues including the Company's share of joint venture
revenue compared to $80.1 million, or 5.4 percent for the year ended
December 31, 2011.
Real Estate Investment Activity
In October 2012, the Company extended the ground lease at 673 First
Avenue to August 2087, an additional 50 years past its scheduled 2037
expiration date, ensuring the Company's ability to control the property
and significantly enhancing its value.
In October 2012, the Company, formed a joint venture which entered into
a 99-year triple net ground lease on 1080 Amsterdam Avenue, Manhattan,
an 82,250 square foot, 96 unit residential building. The joint venture
intends to embark on an extensive capital improvement program over the
next two years to convert the property into a luxury Upper West Side
residential address.
In November 2012, the Company sold a 49.5 percent interest in 521 Fifth
Avenue at a gross sales price of $315.0 million and refinanced the
property with a new $170.0 million, 7-year mortgage which bears interest
at 220 basis points over the 30-day LIBOR for the first 2 years and at a
fixed rate of 3.725 percent thereafter. This transaction generated $84.8
million in proceeds for the Company and resulted in a gain on sale of
$19.4 million.
In December 2012, the Company acquired a 35.5 percent interest in the
147,619 square foot office property at 315 West 36th Street
at a gross purchase price of $45.0 million. Simultaneously, the Company
closed on a $25.0 million 5-year loan that bears a fixed rate of
interest of 3.16 percent.
In December 2012, the Company acquired the 68,342 square foot retail
property anchored by Burberry and Diesel located at 131-137 Spring
Street in the popular SoHo neighborhood of Manhattan for total
consideration of $122.3 million. The property includes prime retail
space, office space, 6 residential rental units and 100 feet of ground
floor frontage.
Debt and Preferred Equity Investment Activity
The Company's debt and preferred equity investment portfolio totaled
$1.4 billion at December 31, 2012. During the fourth quarter, the
Company purchased and originated new debt and preferred equity
investments totaling $291.6 million, all of which are collateralized by
New York City commercial office properties, and recorded $13.0 million
of principal reductions from investments that were sold, repaid or
otherwise resolved. The debt and preferred equity investment portfolio
had a weighted average maturity of 2.2 years as of December 31, 2012 and
had a weighted average yield during the quarter ended December 31, 2012
of 9.88 percent.
In January 2013, the Company sold a 50 percent interest in a mezzanine
loan secured by a New York City office property at 97 percent of par
value, generating $57.8 million of proceeds to the Company, inclusive of
$12.9 million of income.
Financing and Capital Activity
In November 2012, the Company closed on a new $1.6 billion credit
facility, which refinanced, extended and upsized the Company's previous
$1.5 billion revolving credit facility that was put in place in November
2011. The new facility consists of a $1.2 billion revolving line of
credit and a $400 million term loan, which currently bear interest at
145 basis points over LIBOR and 165 basis points over LIBOR,
respectively. The facility now has an extended maturity date of March
2018, inclusive of the Company's aggregate one-year as of right
extension option on the revolving line of credit.
In November 2012, the Company closed an offering of $200.0 million
aggregate principal amount of 4.50 percent senior notes due December 1,
2022. This offering generated $198.2 million in net proceeds for the
Company.
In December 2012, the Company repurchased $22,680,000 of Reckson's
outstanding 5.875 percent notes due 2014 and $19,692,000 of Reckson's
outstanding 6.00 percent notes due 2016, pursuant to a tender offer,
resulting in a charge of $3.9 million in the fourth quarter.
In the fourth quarter, the Company also added 673 First Avenue, 110 East
42nd Street and 609 Fifth Avenue to the unencumbered asset
pool, resulting in a charge of $3.1 million in the fourth quarter.
Dividends
During the fourth quarter of 2012, the Company declared quarterly
dividends on its outstanding common and preferred stock as follows:
$0.33 per share of common stock, which was paid on January 15, 2013 to
stockholders of record on the close of business on January 2, 2013;
$0.4766 per share on the Company's Series C Preferred Stock for the
period October 15, 2012 through and including January 14, 2013, which
was paid on January 15, 2013 to stockholders of record on the close of
business on January 2, 2013, and reflects the regular quarterly
dividend which is the equivalent of annualized dividend of $1.9064 per
share; and
$0.40625 per share on the Company's Series I Preferred Stock for the
period October 15, 2012 through and including January 14, 2013, which
was paid on January 15, 2013 to stockholders of record on the close of
business on January 2, 2013, and reflects the regular quarterly
dividend which is the equivalent of annualized dividend of $1.625 per
share.
Conference Call and Audio Webcast
The Company's executive management team, led by Marc Holliday, Chief
Executive Officer, will host a conference call and audio webcast on
Thursday, January 31, 2013 at 2:00 pm EST to discuss the financial
results.
The Supplemental Package will be available prior to the quarterly
conference call on the Company's website, www.slgreen.com,
under "Financial Reports" in the Investors section.
The live conference will be webcast in listen-only mode on the Company's
web site under "Event Calendar & Webcasts" in the Investors section and
on Thomson's StreetEvents Network. The conference may also be accessed
by dialing 866.271.0675 Domestic or 617.213.8892 International, using
pass-code "SL Green."
A replay of the call will be available through February 7, 2013 by
dialing 888.286.8010 Domestic or 617.801.6888 International, using
pass-code 66429574.
Company Profile
SL Green Realty Corp., New York City's largest office landlord, is the
only 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, 2012, SL Green owned
interests in 85 Manhattan properties totaling 40.8 million square feet.
This included ownership interests in 27.8 million square feet of
commercial properties and debt and preferred equity investments secured
by 13.0 million square feet of properties. In addition to its Manhattan
investments, SL Green holds ownership interests in 31 suburban assets
totaling 5.4 million square feet in Brooklyn, Long Island, Westchester
County, Connecticut and New Jersey, along with four development
properties in the suburbs encompassing approximately 0.5 million square
feet. The Company also has ownership interests in 31 properties totaling
4.5 million square feet in southern California.
To be added to the Company's distribution list or to obtain the latest
news releases and other Company information, please visit our website at www.slgreen.com
or contact Investor Relations at 212.594.2700.
Disclaimers
Non-GAAP Financial Measures
During the quarterly conference call, the Company may discuss
non-GAAP financial measures as defined by SEC Regulation G. In addition,
the Company has used non-GAAP financial measures in this press release.
A reconciliation of each non-GAAP financial measure and the comparable
GAAP financial measure can be found on pages 11 and 12 of this release
and in the Company's Supplemental Package.
Forward-looking Statement
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.All
statements other than statements of historical facts included in this
press release are forward-looking statements.All forward-looking
statements speak only as of the date of this press release.Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance, achievements or transactions of the Company to be
materially different from any future results, performance, achievements
or transactions expressed or implied by such forward-looking statements.Such risks, uncertainties and other factors relate to, among others,
the strength of the commercial office real estate markets in the New
York Metropolitan area, reduced demand for office space, unanticipated
increases in financing and other costs, competitive market conditions,
unanticipated administrative costs, divergent interests from or the
financial condition of our joint venture partners, timing of leasing
income, general and local economic conditions, interest rates, capital
market conditions, tenant bankruptcies and defaults, the availability
and cost of comprehensive insurance, including coverage for terrorist
acts, environmental, regulatory and/or safety requirements, and other
factors, all of which are beyond the Company's control.Additional
information or factors that could affect the Company and the
forward-looking statements contained herein are included in the
Company's filings with the Securities and Exchange Commission.The
Company assumes no obligation to update or supplement forward-looking
statements that become untrue because of subsequent events.
SL GREEN REALTY CORP.
CONSOLIDATED STATEMENTS OF INCOME-UNAUDITED
(Amounts in thousands, except per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2012
2011
2012
2011
Revenues:
Rental revenue, net
$
268,067
$
253,343
$
1,077,976
$
961,935
Escalation and reimbursement
41,362
41,152
167,388
145,596
Investment and preferred equity income
31,500
22,162
119,155
120,418
Other income
9,805
12,222
35,736
35,479
Total revenues
350,734
328,879
1,400,255
1,263,428
Expenses:
Operating expenses (including approximately $5,187 and $18,101
(2012) and $5,252 and $16,266 (2011) paid to related parties)
72,198
71,916
298,322
263,709
Real estate taxes
52,874
45,497
210,467
174,454
Ground rent
11,296
8,810
37,866
32,919
Interest expense, net of interest income
82,277
78,876
330,569
285,917
Amortization of deferred financing costs
7,824
4,649
19,450
14,118
Depreciation and amortization
93,765
74,951
332,028
277,345
Loan loss and other investment reserves, net of recoveries
---
8,592
564
6,722
Transaction related costs
1,227
1,741
5,625
5,561
Marketing, general and administrative
21,372
18,728
82,840
80,103
Total expenses
342,833
313,760
1,317,731
1,140,848
Income from continuing operations before equity in net income of
unconsolidated joint ventures, noncontrolling interests and
discontinued operations
7,901
15,119
82,524
122,580
Equity in net income (loss) from unconsolidated joint ventures
(4,570
)
(6,080
)
76,418
1,583
Equity in net gain (loss) on sale of interest in unconsolidated
joint venture/ real estate
19,277
(114
)
37,053
2,918
Purchase price fair value adjustment
---
8,306
---
498,195
Gain (loss) on investment in marketable securities
2,703
4,999
4,940
4,866
Depreciable real estate reserves
---
(5,789
)
---
(5,789
)
Gain (loss) on early extinguishment of debt
(6,978
)
---
(6,978
)
904
Income from continuing operations
18,333
16,441
193,957
625,257
Net income from discontinued operations
9,127
1,115
9,116
5,780
Gain on sale of discontinued operations
---
---
6,627
46,085
Net income
27,460
17,556
209,700
677,122
Net income attributable to noncontrolling interests in the operating
partnership
(721
)
(683
)
(5,597
)
(14,629
)
Preferred unit distributions
(574
)
---
(2,107
)
---
Net (income) loss attributable to noncontrolling interests in other
partnerships
1,202
(6,519
)
(5,591
)
(15,083
)
Net income attributable to SL Green
27,367
10,354
196,405
647,410
Preferred stock redemption costs
---
---
(10,010
)
---
Preferred stock dividends
(7,407
)
(7,545
)
(30,411
)
(30,178
)
Net income attributable to SL Green common stockholders
$
19,960
$
2,809
$
155,984
$
617,232
Earnings Per Share (EPS)
Net income per share (Basic)
$
0.22
$
0.03
$
1.75
$
7.37
Net income per share (Diluted)
$
0.22
$
0.03
$
1.74
$
7.33
Funds From Operations (FFO)
FFO per share (Basic)
$
1.14
$
1.02
$
5.30
$
4.83
FFO per share (Diluted)
$
1.14
$
1.02
$
5.28
$
4.80
Basic ownership interest
Weighted average REIT common shares for net income per share
90,481
86,020
89,319
83,762
Weighted average partnership units held by noncontrolling interests
3,266
2,306
3,207
1,985
Basic weighted average shares and units outstanding for FFO per share
93,747
88,326
92,526
85,747
Diluted ownership interest
Weighted average REIT common share and common share equivalents
90,745
86,438
89,666
84,259
Weighted average partnership units held by noncontrolling interests
3,266
2,306
3,207
1,985
Diluted weighted average shares and units outstanding
94,011
88,744
92,873
86,244
SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
December 31,
2012
December 31,
2011
Assets
(Unaudited)
Commercial real estate properties, at cost:
Land and land interests
$
2,886,099
$
2,684,626
Buildings and improvements
7,389,766
7,147,527
Building leasehold and improvements
1,346,748
1,302,790
Properties under capital lease
40,340
12,208
11,662,953
11,147,151
Less accumulated depreciation
(1,393,323
)
(1,136,603
)
10,269,630
10,010,548
Assets held for sale
4,901
76,562
Cash and cash equivalents
189,984
138,192
Restricted cash
136,071
86,584
Investment in marketable securities
21,429
25,323
Tenant and other receivables, net of allowance of $21,652 and
$16,772 in 2012 and 2011, respectively
48,544
32,107
Related party receivables
7,531
4,001
Deferred rents receivable, net of allowance of $29,580 and $29,156
in 2012 and 2011, respectively
340,747
281,974
Debt and preferred equity investments, net of discount of $13,572
and $24,996 and allowance of $7,000 and $50,175 in 2012 and 2011,
respectively
1,357,203
985,942
Investments in and advances to unconsolidated joint ventures
1,032,243
893,933
Deferred costs, net
261,145
210,786
Other assets
718,326
737,900
Total assets
$
14,387,754
$
13,483,852
Liabilities
Mortgages and other loans payable
$
4,615,464
$
4,314,741
Revolving credit facility
70,000
350,000
Term loan and senior unsecured notes
1,734,956
1,270,656
Accrued interest and other liabilities
73,769
126,135
Accounts payable and accrued expenses
159,598
142,428
Deferred revenue/gain
321,764
357,193
Capitalized lease obligation
37,518
17,112
Deferred land lease payable
20,897
18,495
Dividend and distributions payable
37,839
28,398
Security deposits
46,253
46,367
Liabilities related to assets held for sale
136
61,988
Junior subordinate deferrable interest debentures held by
trusts that issued trust preferred securities
100,000
100,000
Total liabilities
7,218,194
6,833,513
Commitments and contingencies
---
---
Noncontrolling interests in the operating partnership
212,907
195,030
Series G preferred units, $25.00 liquidation preference, 1,902
issued and
outstanding at December 31, 2012
47,550
---
Series H preferred units, $25.00 liquidation preference, 80 issued
and
outstanding at December 31, 2012 and 2011, respectively
2,000
2,000
Equity
SL Green Realty Corp. stockholders' equity
7.625% Series C perpetual preferred shares, $0.01 par value, $25.00
liquidation preference, 7,700 and 11,700 issued and outstanding at
December 31, 2012 and 2011, respectively
180,340
274,022
7.875% Series D perpetual preferred shares, $0.01 par value, $25.00
liquidation preference, none and 4,000 issued and outstanding at
December 31, 2012 and 2011, respectively
---
96,321
6.5% Series I perpetual preferred shares, $0.01 par value, $25.00
liquidation preference, 9,200 issued and outstanding at December 31,
2012
221,965
---
Common stock, $0.01 par value 160,000 shares authorized, 94,896 and
89,210 issued and outstanding at December 31, 2012 and 2011,
respectively (inclusive of 3,646 and 3,427 shares held in Treasury
at December 31, 2012 and 2011, respectively)
950
892
Additional paid-in capital
4,667,900
4,236,959
Treasury stock-at cost
(322,858
)
(308,708
)
Accumulated other comprehensive loss
(29,587
)
(28,445
)
Retained earnings
1,701,092
1,704,506
Total SL Green Realty Corp. stockholders' equity
6,419,802
5,975,547
Noncontrolling interests in other partnerships
487,301
477,762
Total equity
6,907,103
6,453,309
Total liabilities and equity
$
14,387,754
$
13,483,852
SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2012
2011
2012
2011
FFO Reconciliation:
Net income attributable to common stockholders
$
19,960
$
2,809
$
155,984
$
617,232
Add:
Depreciation and amortization
93,765
74,951
332,028
277,345
Discontinued operations depreciation adjustments
21
---
82
676
Joint venture depreciation and noncontrolling interest adjustments
13,417
8,005
35,593
31,179
Net income attributable to noncontrolling interests
(481
)
7,202
11,188
29,712
Less:
Gain on sale of discontinued operations
---
---
6,627
46,085
Equity in net gain (loss) on sale of joint venture interest
19,277
(114
)
37,053
2,918
Purchase price fair value adjustment
---
8,306
---
498,195
Depreciable real estate reserves
---
(5,789
)
---
(5,789
)
Depreciation on non-rental real estate assets
243
255
940
922
Funds from Operations
107,162
90,309
490,255
413,813
Transaction related costs(1)
1,533
1,785
6,585
6,734
Funds from Operations before transaction related costs
$
108,695
$
92,094
$
496,840
$
420,547
(1) Includes the Company's share of joint venture transaction
related costs.
Consolidated Properties
SL Green's share of Unconsolidated Joint Ventures
Combined
Three Months Ended
December 31,
Three Months Ended
December 31,
Three Months Ended
December 31,
Operating income and Same-store NOI
Reconciliation:
2012
2011
2012
2011
2012
2011
Income from continuing operations before equity in net income of
unconsolidated joint ventures, noncontrolling interests and
discontinued operations
$
7,901
$
15,119
$
$
Equity in net income (loss) from joint ventures
(4,570
)
(6,080
)
(4,570
)
(6,080
)
Depreciation and amortization
93,765
74,951
21,911
15,031
Interest expense, net of interest income
82,277
78,876
21,540
26,702
Amortization of deferred financing costs
7,824
4,649
1,104
1,095
Gain (loss) on early extinguishment of debt
(6,978
)
---
---
---
Operating income
$
180,219
$
167,515
$
39,985
$
36,748
Marketing, general & administrative expense
21,372
18,728
---
---
Net operating income from discontinued operations
116
1,945
---
---
Loan loss and other investment reserves, net of recoveries
---
8,592
---
---
Transaction related costs
1,227
1,741
306
44
Non-building revenue
(36,306
)
(28,560
)
(3,687
)
(6,608
)
Equity in net (income) loss from joint ventures
4,570
6,080
---
---
(Gain) loss on early extinguishment of debt
6,978
---
---
---
$
$
Net operating income ( NOI)
178,176
176,041
36,604
30,184
214,780
206,225
Net operating income from discontinued operations
(116
)
(1,945
)
---
---
(116
)
(1,945
)
NOI from other properties/affiliates
(16,000
)
(8,506
)
(8,471
)
(3,422
)
(24,471
)
(11,928
)
Same-Store NOI
$
162,060
$
165,590
$
28,133
$
26,762
$
190,193
$
192,352
Ground lease straight-line adjustment
2,186
44
---
---
2,186
44
Straight-line and free rent
(12,659
)
(19,204
)
(1,582
)
(1,408
)
(14,241
)
(20,612
)
Rental income - FAS 141
(3,900
)
(4,206
)
(658
)
(320
)
(4,558
)
(4,526
)
Same-store cash NOI
$
147,687
$
142,224
$
25,893
$
25,034
$
173,580
$
167,258
Consolidated Properties
SL Green's share of Unconsolidated Joint Ventures
Combined
Twelve Months Ended
December 31,
Twelve Months Ended
December 31,
Twelve Months Ended
December 31,
Operating income and Same-store NOI
Reconciliation:
2012
2011
2012
2011
2012
2011
Income from continuing operations before equity in net income of
unconsolidated joint ventures, noncontrolling interests and
discontinued operations
$
82,524
$
122,580
$
---
$
---
Equity in net income (loss) from joint ventures
76,418
1,583
76,418
1,583
Depreciation and amortization
332,028
277,345
69,116
58,598
Interest expense, net of interest income
330,569
285,917
86,268
88,546
Amortization of deferred financing costs
19,450
14,118
3,859
4,996
Gain (loss) on early extinguishment of debt
(6,978
)
904
---
---
Operating income
$
834,011
$
702,447
$
235,661
$
153,723
Marketing, general & administrative expense
82,840
80,103
---
---
Net operating income from discontinued operations
1,385
10,878
---
---
Loan loss and other investment reserves, net of recoveries
564
6,722
---
---
Transaction related costs
5,625
5,561
960
1,173
Non-building revenue
(134,392
)
(135,987
)
(93,144
)
(12,346
)
Equity in net income from joint ventures
(76,418
)
(1,583
)
---
---
(Gain) loss on early extinguishment of debt
6,978
(904
)
(10,711
)
---
$
$
Net operating income ( NOI)
720,593
667,237
132,766
142,550
853,359
809,787
Net operating income from discontinued operations
(1,385
)
(10,878
)
---
---
(1,385
)
(10,878
)
NOI from other properties/affiliates
(69,006
)
(1,514
)
(23,150
)
(36,641
)
(92,156
)
(38,155
)
Same-Store NOI
$
650,202
$
654,845
$
109,616
$
105,909
$
759,818
$
760,754
Ground lease straight-line adjustment
2,702
440
---
(9
)
2,702
431
Straight-line and free rent
(54,686
)
(79,496
)
(4,217
)
(6,219
)
(58,903
)
(85,715
)
Rental income - FAS 141
(17,365
)
(21,201
)
(2,030
)
(1,172
)
(19,395
)
(22,373
)
Same-store cash NOI
$
580,853
$
554,588
$
103,369
$
98,509
$
684,222
$
653,097
SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED
December 31,
2012
2011
Manhattan Operating Data: (1)
Net rentable area at end of period (in 000's)
24,282
24,622
Portfolio percentage leased at end of period
94.1
%
92.5
%
Same-Store percentage leased at end of period
93.8
%
94.0
%
Number of properties in operation
36
33
Office square feet where leases commenced during quarter (rentable)
290,108
412,704
Average mark-to-market percentage-office
2.4
%
7.6
%
Average starting cash rent per rentable square foot-office
$
56.96
$
63.11
(1) Includes wholly-owned and joint venture
properties.
SL Green Realty Corp. James Mead Chief Financial Officer or Heidi
Gillette Investor Relations 212-594-2700
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