Attached files
| file | filename |
|---|---|
| 8-K - 8-K - SL GREEN REALTY CORP | a8-kearningsreleaseq2.htm |
| EX-99.2 - EXHIBIT 99.2 - SL GREEN REALTY CORP | supplementalq2.htm |
Exhibit 99.1
CONTACT
Matt DiLiberto
Chief Financial Officer
(212) 594-2700
SL GREEN REALTY CORP. REPORTS
SECOND QUARTER 2016 FFO OF $3.41 PER SHARE BEFORE TRANSACTION COSTS; AND EPS OF $1.33 PER SHARE
Financial and Operating Highlights
• | Second quarter 2016 FFO of $3.41 per share before transaction related costs of $0.02 per share compared to second quarter 2015 FFO of $1.65 per share before transaction related costs of $0.03 per share. Second quarter 2016 FFO includes a lease termination fee of $94.0 million, or $0.90 per share, and the write-off of accounting related balances of $75.3 million, or $0.72 per share, related to the early lease termination and sale of 388-390 Greenwich Street to Citigroup, Inc. (“Citi”) as well as receipt of promote income of $10.8 million, or $0.10 per share, related to the sale of 33 Beekman Street. |
• | Second quarter 2016 net income attributable to common stockholders of $1.33 per share compared to second quarter 2015 net loss attributable to common stockholders of $0.39 per share. |
• | Combined same-store cash NOI increased 8.4 percent for the first six months of 2016 as compared to the same period in the prior year. |
• | Signed 50 Manhattan office leases covering 621,150 square feet during the second quarter. The mark-to-market on signed Manhattan office leases was 16.1 percent higher in the second quarter than the previously fully escalated rents on the same spaces inclusive of the 204,442 square foot expansion lease with Bloomberg at 919 Third Avenue, which had a mark-to-market of 14.0 percent. |
• | Signed 97 Manhattan office leases covering 1,470,736 square feet during the first six months of 2016. The mark-to-market on signed Manhattan office leases during the first six months of 2016 was 28.5 percent higher than the previously fully escalated rents on the same spaces. |
• | Signed 19 Suburban office leases covering 177,684 square feet during the second quarter. The mark-to-market on signed Suburban office leases was 2.5 percent higher in the second quarter than the previous fully escalated rents on the same spaces. |
• | Signed 46 Suburban office leases covering 422,479 square feet during the first six months of 2016. The mark-to-market on signed Suburban office leases during the first six months of 2016 was 5.6 percent higher than the previous fully escalated rents on the same spaces. |
• | Manhattan same-store occupancy, inclusive of leases signed but not yet commenced, was 97.4 percent as of June 30, 2016 as compared to 97.1 percent as of June 30, 2015 and 97.4 percent as of March 31, 2016. |
Investing Highlights
• | Closed on the previously announced sale of 388-390 Greenwich Street to Citi for $2.0 billion, net of any unfunded tenant concessions, and received a $94.0 million termination payment in connection with the early termination of Citi's lease at the property. The Company recognized a gain on sale of the property of $206.5 million. |
• | Together with our joint venture partner, closed on the previously announced sale of the Pace University dormitory tower at 33 Beekman Street for $196.0 million. The Company recognized a gain on the sale of the property of $33.0 million. |
• | Completed the acquisition of a 20 percent interest in the newly completed, 1,176 unit "Sky" residential tower, located at 605 West 42nd Street, for a previously agreed upon purchase option valuation. |
• | Entered into an agreement to sell 500 West Putnam Avenue in Greenwich, Connecticut for a total gross asset valuation of $41.0 million. The Company closed on the sale in July and recognized cash proceeds of $39.5 million. |
• | Originated new debt and preferred equity investments totaling $458.5 million in the second quarter, of which $120.5 million was retained at a yield of 9.5 percent. |
Financing Highlights
• | Together with our joint venture partners, closed on a $900.0 million refinancing of 280 Park Avenue. The new facility has a 3-year term (subject to four 1-year extension options), carries a floating interest rate of LIBOR plus 2.0 percent and replaces the previous $721.0 million of indebtedness on the property that was set to mature in June 2016. |
• | In July, closed on the refinancing of the Company's $300.0 million debt and preferred equity liquidity facility, which provides for favorable financing of the Company's debt and preferred equity portfolio. The new facility has a 2-year term with a 1-year extension option. |
• | In July, entered into $300.0 million of 7-year interest rate swaps at a fixed rate of 1.14 percent, taking advantage of the current favorable interest rate environment to lock in rates on our corporate unsecured debt. |
Summary
New York, NY, July 20, 2016 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported funds from operations, or FFO, for the quarter ended June 30, 2016 of $357.8 million, or $3.41 per share, before transaction related costs of $2.1 million, or $0.02 per share, as compared to FFO for the same period in 2015 of $171.7 million, or $1.65 per share, before transaction related costs of $3.1 million, or $0.03 per share.
Second quarter 2016 FFO includes a lease termination fee of $94.0 million, or $0.90 per share, and a write-off of accounting related balances of $75.3 million, of $0.72 per share, related to the early lease termination and sale of 388-390 Greenwich Street to Citigroup, Inc. (“Citi”) as well as a receipts of promote income of $10.8 million, or $0.10 per share, related to the sale of 33 Beekman Street.
The Company also reported funds from operations, or FFO, for the six month period ended June 30, 2016 of $550.9 million, or $5.27 per share, before transaction related costs of $3.4 million, or $0.03 per share, as compared to FFO for the same period in 2015 of $327.3 million, or $3.16 per share, before transaction related costs of $4.2 million, or $0.04 per share.
Net income attributable to common stockholders for the quarter ended June 30, 2016 totaled $133.5 million, or $1.33 per share as compared to net loss attributable to common stockholders of $39.1 million, or $0.39 per share for the same quarter in 2015. Net income attributable to common stockholders for the quarter ended June 30, 2016 includes $230.0 million, or $2.20 per share, of net gains recognized from the sale of real estate as compared to $0.8 million, or $0.01 per share for the same quarter in 2015.
Net income attributable to common stockholders for the six month period ended June 30, 2016 totaled $156.7 million, or $1.56 per share as compared to net income attributable to common stockholders of $4.2 million, or $0.04 per share for the same period in 2015. Net income attributable to common stockholders for the six month period ended June 30, 2016 includes $253.7 million, or $2.43 per share, of net gains recognized from the sale of real estate as compared to $13.8 million, or $0.13 per share for the same period in 2015.
All per share amounts in this press release are presented on a diluted basis.
Operating and Leasing Activity
For the quarter ended June 30, 2016, the Company reported consolidated revenues and operating income of $617.6 million and $451.1 million, respectively, compared to $409.1 million and $251.3 million, respectively, for the same period in 2015. For the six months ended June 30, 2016, the Company reported consolidated revenues and operating income of $1.1 billion and $741.8 million, respectively, compared to $805.4 million and $484.3 million, respectively, for the same period in 2015.
Same-store cash NOI on a combined basis increased by 6.5 percent to $186.1 million for the quarter as compared to the same period in 2015. For the quarter ended June 30, 2016, consolidated property same-store cash NOI increased by 6.1 percent to $166.3 million and unconsolidated joint venture property same-store cash NOI increased by 9.3 percent to $19.9 million, as compared to the same period in 2015.
Same-store cash NOI on a combined basis increased by 8.4 percent to $362.2 million for the six months ended June 30, 2016 as compared to the same period in 2015. For the six months ended June 30, 2016, consolidated property same-store cash NOI increased by 8.2 percent to $322.9 million and unconsolidated joint venture property same-store cash NOI increased by 9.4 percent to $39.3 million, as compared to the same period in 2015.
During the second quarter, the Company signed 50 office leases in its Manhattan portfolio totaling 621,150 square feet. Eight leases comprising 35,130 square feet represented office leases that replaced previous vacancy. Forty-two leases comprising 586,020 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 $64.75 per rentable square foot, representing a 16.1 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 second quarter was 6.8 years and average tenant concessions were 2.3 months of free rent with a tenant improvement allowance of $25.93 per rentable square foot.
During the first six months of 2016, the Company signed 97 office leases in its Manhattan portfolio totaling 1,470,736 square feet. Sixteen leases comprising 162,558 square feet represented office leases that replaced previous vacancy. Eighty-one leases comprising 1,308,178 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 $68.33 per rentable square foot, representing a 28.5 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 first six months of 2016 was 9.6 years and average tenant concessions were 3.5 months of free rent with a tenant improvement allowance of $37.93 per rentable square foot.
Manhattan same-store occupancy was 97.4 percent at June 30, 2016, inclusive of 194,733 square feet of leases signed but not yet commenced as compared to 97.1 percent at June 30, 2015 and 97.4 percent at March 31, 2016.
During the second quarter, the Company signed 19 office leases in its Suburban portfolio totaling 177,684 square feet. Eight leases comprising 80,761 square feet represented office leases that replaced previous vacancy. Eleven leases comprising the remaining 96,923 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 $40.24 per rentable square foot, representing a 2.5 percent increase over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the second quarter was 8.5 years and average tenant concessions were 7.2 months of free rent with a tenant improvement allowance of $33.79 per rentable square foot.
During the first six months of 2016, the Company signed 46 office leases in its Suburban portfolio totaling 422,479 square feet. Seventeen leases comprising 142,085 square feet represented office leases that replaced previous vacancy. Twenty nine leases comprising the remaining 280,394 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 $39.84 per rentable square foot, representing a 5.6 percent increase over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed in the first six months of 2016 was 7.1 years and average tenant concessions were 6.1 months of free rent with a tenant improvement allowance of $29.92 per rentable square foot.
Same-store occupancy for the Company's Suburban portfolio was 83.0 percent at June 30, 2016, inclusive of 38,815 square feet of leases signed but not yet commenced as compared to 83.6 percent at June 30, 2015 and 84.0 percent at March 31, 2016.
Significant leases that were signed during the second quarter included:
• | Expansion on 204,442 square feet with Bloomberg at 919 Third Avenue; |
• | Renewal and expansion on 114,709 square feet with New York Life Insurance Company at 420 Lexington Avenue, bringing the remaining lease term to 14.3 years; |
• | Renewal on 47,278 square feet with Citi at 750 Washington Boulevard in Stamford, Connecticut, bringing the remaining lease term to 11.5 years; and |
• | Renewal on 31,514 square feet with Morgan Stanley Smith Barney at Jericho Plaza in Jericho, New York, bringing the remaining lease term to 10.3 years. |
Marketing, general and administrative, or MG&A, expenses for the quarter ended June 30, 2016 were $24.5 million, or 3.6 percent of total combined revenues and an annualized 50 basis points of total combined assets.
Real Estate Investment Activity
In June, the Company closed on the previously announced sale of 388-390 Greenwich Street to an affiliate of Citigroup, Inc. ("Citi") for $2.0 billion, net of $242.5 million of unfunded tenant concessions. Separately, the Company received a $94.0 million payment from Citi for the early termination of Citi's lease at 388-390 Greenwich Street. Proceeds from the sale and the termination payment were used by the Company to repay $350.0 million of its corporate credit facility and retire the $1.45 billion mortgage on the property, resulting in reduction of Company indebtedness of approximately $1.8 billion. The Company recognized a gain on sale of $206.5 million.
In May, the Company and its joint venture partner, the Naftali Group, closed on the previously announced sale of the Pace University dormitory tower at 33 Beekman Street for a gross sale price of $196.0 million or approximately $1,199 per square foot. The Company recognized a gain on sale of $33.0 million.
In April, the Company completed the acquisition of a 20 percent interest in the newly completed, 1,176 unit "Sky" residential tower, located at 605 West 42nd Street. The Company was granted an option to purchase the interest at an agreed upon valuation in July 2014 when it originated a $50.0 million mezzanine loan on the property to The Moinian Group, the project's developer. The mezzanine loan was repaid prior to the closing of the Company's acquisition.
In April, the Company reached an agreement to sell 500 West Putnam Avenue, a 121,500-square-foot office property located in Greenwich, Connecticut, for a gross sale price of $41.0 million, or $337 per square foot. The transaction closed in July and the Company recognized net proceeds of $39.5 million.
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity investment portfolio totaled $1.4 billion at June 30, 2016 at a weighted average current yield of 9.4 percent, excluding $0.3 billion of debt and preferred equity investments that are included in other balance sheet line items for accounting purposes. During the second quarter, the Company originated new debt and preferred equity investments totaling $458.5 million, of which $120.5 million was retained and $103.2 million was funded, at a weighted average current yield of 9.5 percent. During the second quarter, the Company recorded $147.7 million of principal reductions from investments that were repaid.
Financing Activity
In July, the Company signed a final and comprehensive term sheet for a $1.5 billion construction loan facility with Wells Fargo Bank, N.A., The Bank of New York Mellon, JP Morgan Chase Bank, Bank of China New York Branch and TD Bank, N.A. for the development of One Vanderbilt Avenue. Commitment and closing are expected to occur within the third quarter of 2016.
In July, the Company closed on a refinancing of our $300 million debt and preferred equity liquidity facility. The facility, which is secured by select assets in the Company's debt portfolio, has a 2-year term with a 1-year extension option and bears interest ranging from 225 and 400 basis points over LIBOR, depending on the pledged collateral and advance rate. The new facility is favorable, providing higher advance rates than the previous facility.
In July, the Company entered into $300.0 million of 7-year interest rate swaps with a fixed rate of 1.14 percent, taking advantage of the current favorable interest environment to lock in rates on our corporate unsecured debt.
In May, the Company, along with its joint venture partner, Vornado Realty Trust, successfully closed on the refinancing of 280 Park Avenue. The new $900.0 million facility has a 3-year term (subject to four 1-year extension options), carries a floating interest rate of LIBOR plus 2.00 percent, and replaces the previous $721.0 million of indebtedness on the property that was set to mature in June 2016. The Company, which owns a 50.0 percent interest in the asset, received approximately $75.9 million in net proceeds from the refinancing, inclusive of $30.0 million which was held at the property for future operating and capital costs.
Dividends
During the second quarter of 2016, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:
• | $0.72 per share of common stock, which was paid on July 15, 2016 to shareholders of record on the close of business on June 30, 2016; and |
• | $0.40625 per share on the Company's 6.50% Series I Cumulative Redeemable Preferred Stock for the period April 15, 2016 through and including July 14, 2016, which was paid on July 15, 2016 to shareholders of record on the close of business on June 30, 2016, and reflects the regular quarterly dividend, which is the equivalent of an annualized dividend of $1.625 per share. |
Conference Call and Audio Webcast
The Company's executive management team, led by Marc Holliday, Chief Executive Officer, will host a conference call and audio webcast on Thursday, July 21, 2016 at 2:00 pm ET to discuss the financial results.
The supplemental data will be available prior to the quarterly conference call in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Financial Reports.”
The live conference call will be webcast in listen-only mode in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Event Calendar & Webcasts”.
The conference may also be accessed by dialing toll-free (877) 312-8765 or international (419) 386-0002, and using passcode 38223940.
A replay of the call will be available 7 days after the call by dialing (855) 859-2056 using pass-code 38223940. A webcast replay will also be available in the Investors section of the SL Green Realty Corp. website at http://slgreen.com/ under “Event Calendar & Webcasts”.
Company Profile
SL Green Realty Corp., an S&P 500 company and New York City's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2016, SL Green held interests in 119 Manhattan buildings totaling 44.7 million square feet. This included ownership interests in 28.1 million square feet of commercial buildings and debt and preferred equity investments secured by 16.7 million square feet of buildings. In addition, SL Green held ownership interests in 31 suburban buildings totaling 4.9 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.
To be added to the Company's distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at (212) 594-2700.
Disclaimers
Non-GAAP Financial Measures
During the quarterly conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found in this release and in the Company’s Supplemental Package.
Forward-looking Statement
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. Forward-looking statements are not guarantees of future performance and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.
Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements are described in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.
SL GREEN REALTY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share data)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenue, net | $ | 416,809 | $ | 304,226 | $ | 762,416 | $ | 607,555 | |||||||
Escalation and reimbursement | 48,616 | 41,407 | 94,227 | 82,376 | |||||||||||
Investment income | 44,214 | 45,191 | 98,951 | 87,260 | |||||||||||
Other income | 107,975 | 18,250 | 117,464 | 28,182 | |||||||||||
Total revenues | 617,614 | 409,074 | 1,073,058 | 805,373 | |||||||||||
Expenses: | |||||||||||||||
Operating expenses, including related party expenses of $6,667 and $10,129 in 2016 and $4,472 and $8,189 in 2015. | 75,324 | 70,114 | 154,844 | 146,891 | |||||||||||
Real estate taxes | 62,124 | 56,286 | 123,798 | 112,009 | |||||||||||
Ground rent | 8,307 | 8,086 | 16,615 | 16,274 | |||||||||||
Interest expense, net of interest income | 89,089 | 75,746 | 183,761 | 151,553 | |||||||||||
Amortization of deferred financing costs | 7,433 | 5,952 | 15,365 | 12,567 | |||||||||||
Depreciation and amortization | 425,042 | 199,565 | 604,350 | 307,902 | |||||||||||
Transaction related costs | 2,115 | 3,067 | 3,394 | 4,210 | |||||||||||
Marketing, general and administrative | 24,484 | 23,200 | 48,516 | 48,664 | |||||||||||
Total expenses | 693,918 | 442,016 | 1,150,643 | 800,070 | |||||||||||
(Loss) income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, gain on sale of real estate, loss on sale of marketable securities and loss on early extinguishment of debt | (76,304 | ) | (32,942 | ) | (77,585 | ) | 5,303 | ||||||||
Equity in net income from unconsolidated joint ventures | 5,841 | 2,994 | 15,937 | 7,024 | |||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 33,448 | 769 | 43,363 | 769 | |||||||||||
Gain on sale of real estate, net | 196,580 | — | 210,353 | — | |||||||||||
Depreciable real estate reserves | (10,387 | ) | — | (10,387 | ) | — | |||||||||
Loss on sale of marketable securities | (83 | ) | — | (83 | ) | — | |||||||||
Loss on early extinguishment of debt | — | — | — | (49 | ) | ||||||||||
Income from continuing operations | 149,095 | (29,179 | ) | 181,598 | 13,047 | ||||||||||
Net income from discontinued operations | — | — | — | 427 | |||||||||||
Gain on sale of discontinued operations | — | 12,983 | |||||||||||||
Net income (loss) | 149,095 | (29,179 | ) | 181,598 | 26,457 | ||||||||||
Net income (loss) attributable to noncontrolling interests in the Operating Partnership | (5,586 | ) | 1,577 | (6,508 | ) | (166 | ) | ||||||||
Net income attributable to noncontrolling interests in other partnerships | (3,435 | ) | (6,626 | ) | (5,409 | ) | (12,553 | ) | |||||||
Preferred unit distributions | (2,880 | ) | (1,140 | ) | (5,528 | ) | (2,091 | ) | |||||||
Net income attributable to SL Green | 137,194 | (35,368 | ) | 164,153 | 11,647 | ||||||||||
Perpetual preferred stock dividends | (3,737 | ) | (3,738 | ) | (7,475 | ) | (7,476 | ) | |||||||
Net income (loss) attributable to SL Green common stockholders | $ | 133,457 | $ | (39,106 | ) | $ | 156,678 | $ | 4,171 | ||||||
Earnings Per Share (EPS) | |||||||||||||||
Net income (loss) per share (Basic) | $ | 1.33 | $ | (0.39 | ) | $ | 1.57 | $ | 0.04 | ||||||
Net income (loss) per share (Diluted) | $ | 1.33 | $ | (0.39 | ) | $ | 1.56 | $ | 0.04 | ||||||
Funds From Operations (FFO) | |||||||||||||||
FFO per share (Basic) | $ | 3.40 | $ | 1.63 | $ | 5.25 | $ | 3.14 | |||||||
FFO per share (Diluted) | $ | 3.39 | $ | 1.62 | $ | 5.24 | $ | 3.12 | |||||||
Basic ownership interest | |||||||||||||||
Weighted average REIT common shares for net income per share | 100,134 | 99,579 | 100,093 | 98,994 | |||||||||||
Weighted average partnership units held by noncontrolling interests | 4,342 | 3,908 | 4,158 | 3,936 | |||||||||||
Basic weighted average shares and units outstanding | 104,476 | 103,487 | 104,251 | 102,930 | |||||||||||
Diluted ownership interest | |||||||||||||||
Weighted average REIT common share and common share equivalents | 100,450 | 100,038 | 100,375 | 99,487 | |||||||||||
Weighted average partnership units held by noncontrolling interests | 4,342 | 3,908 | 4,158 | 3,936 | |||||||||||
Diluted weighted average shares and units outstanding | 104,792 | 103,946 | 104,533 | 103,423 | |||||||||||
SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Assets | (Unaudited) | ||||||
Commercial real estate properties, at cost: | |||||||
Land and land interests | $ | 4,108,821 | $ | 4,779,159 | |||
Building and improvements | 9,362,614 | 10,423,739 | |||||
Building leasehold and improvements | 1,435,255 | 1,431,259 | |||||
Properties under capital lease | 47,445 | 47,445 | |||||
14,954,135 | 16,681,602 | ||||||
Less accumulated depreciation | (2,166,059 | ) | (2,060,706 | ) | |||
12,788,076 | 14,620,896 | ||||||
Assets held for sale | 39,642 | 34,981 | |||||
Cash and cash equivalents | 276,226 | 255,399 | |||||
Restricted cash | 166,905 | 233,578 | |||||
Investment in marketable securities | 39,339 | 45,138 | |||||
Tenant and other receivables, net of allowance of $18,728 and $17,618 in 2016 and 2015, respectively | 57,551 | 63,491 | |||||
Related party receivables | 13,059 | 10,650 | |||||
Deferred rents receivable, net of allowance of $22,917 and $21,730 in 2016 and 2015, respectively | 443,981 | 498,776 | |||||
Debt and preferred equity investments, net of discounts and deferred origination fees of $14,329 and $18,759 in 2016 and 2015, respectively | 1,357,181 | 1,670,020 | |||||
Investments in unconsolidated joint ventures | 1,126,486 | 1,203,858 | |||||
Deferred costs, net | 256,303 | 239,920 | |||||
Other assets | 979,474 | 850,719 | |||||
Total assets | $ | 17,544,223 | $ | 19,727,426 | |||
Liabilities | |||||||
Mortgages and other loans payable | $ | 5,608,400 | $ | 6,992,504 | |||
Revolving credit facility | 285,000 | 994,000 | |||||
Term loan and senior unsecured notes | 2,070,341 | 2,319,244 | |||||
Deferred financing costs, net | (101,521 | ) | (130,515 | ) | |||
Total debt, net of deferred financing costs | 7,862,220 | 10,175,233 | |||||
Accrued interest payable | 36,378 | 42,406 | |||||
Other liabilities | 243,011 | 168,477 | |||||
Accounts payable and accrued expenses | 189,690 | 196,213 | |||||
Deferred revenue | 384,145 | 399,102 | |||||
Capitalized lease obligations | 41,751 | 41,360 | |||||
Deferred land leases payable | 2,236 | 1,783 | |||||
Dividend and distributions payable | 80,555 | 79,790 | |||||
Security deposits | 68,199 | 68,023 | |||||
Liabilities related to assets held for sale | 7 | 29,000 | |||||
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | |||||
Total liabilities | 9,008,192 | 11,301,387 | |||||
Commitments and contingencies | — | ||||||
Noncontrolling interest in the Operating Partnership | 486,452 | 424,206 | |||||
Preferred units | 302,460 | 282,516 | |||||
Equity | |||||||
Stockholders’ equity: | |||||||
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2016 and December 31, 2015 | 221,932 | 221,932 | |||||
Common stock, $0.01 par value 160,000 shares authorized, 100,251 and 100,063 issued and outstanding at June 30, 2016 and December 31, 2015, respectively (including 87 shares held in Treasury at June 30, 2016 and December 31, 2015) | 1,003 | 1,001 | |||||
Additional paid-in capital | 5,466,593 | 5,439,735 | |||||
Treasury stock at cost | (10,000 | ) | (10,000 | ) | |||
Accumulated other comprehensive loss | (16,558 | ) | (8,749 | ) | |||
Retained earnings | 1,655,320 | 1,643,546 | |||||
Total SL Green Realty Corp. stockholders’ equity | 7,318,290 | 7,287,465 | |||||
Noncontrolling interests in other partnerships | 428,829 | 431,852 | |||||
Total equity | 7,747,119 | 7,719,317 | |||||
Total liabilities and equity | $ | 17,544,223 | $ | 19,727,426 | |||
SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited and in thousands, except per share data)
Three Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
FFO Reconciliation: | |||||||
Net income attributable to SL Green common stockholders | $ | 133,457 | $ | (39,106 | ) | ||
Add: | |||||||
Depreciation and amortization | 425,042 | 199,565 | |||||
Joint venture depreciation and noncontrolling interest adjustments | 8,328 | 4,435 | |||||
Net income attributable to noncontrolling interests | 9,021 | 5,049 | |||||
Less: | |||||||
Gain on sale of real estate and discontinued operations, net | 196,580 | — | |||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 33,448 | 769 | |||||
Depreciation on non-rental real estate assets | 500 | 500 | |||||
Depreciable real estate reserve | (10,387 | ) | — | ||||
Funds From Operations attributable to SL Green common stockholders and noncontrolling interests | $ | 355,707 | $ | 168,674 | |||
Consolidated Properties | SL Green's share of Unconsolidated Joint Ventures | Combined | |||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
Operating income and Same-store NOI Reconciliation: | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, purchase price fair value adjustment, gain on sale of real estate, depreciable real estate reserves and loss on early extinguishment of debt | $ | (76,304 | ) | $ | (32,942 | ) | |||||||||||||||||
Equity in net income from unconsolidated joint ventures | 5,841 | 2,994 | 5,841 | 2,994 | |||||||||||||||||||
Depreciation and amortization | 425,042 | 199,565 | 14,910 | 15,494 | |||||||||||||||||||
Interest expense, net of interest income | 89,089 | 75,746 | 17,391 | 18,259 | |||||||||||||||||||
Amortization of deferred financing costs | 7,433 | 5,952 | 2,136 | 1,344 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | — | |||||||||||||||||||
Operating income | 451,101 | 251,315 | 40,278 | 38,091 | |||||||||||||||||||
Marketing, general and administrative expense | 24,484 | 23,200 | — | — | |||||||||||||||||||
Net operating income from discontinued operations | — | — | — | — | |||||||||||||||||||
Transaction related costs, net | 2,115 | 3,067 | — | 3 | |||||||||||||||||||
Non-building revenue | (43,208 | ) | (47,353 | ) | (19 | ) | 546 | ||||||||||||||||
Equity in net income from unconsolidated joint ventures | (5,841 | ) | (2,994 | ) | — | — | |||||||||||||||||
Loss on early extinguishment of debt | — | — | — | — | |||||||||||||||||||
Net operating income (NOI) | $ | 428,651 | $ | 227,235 | $ | 40,259 | $ | 38,640 | 468,910 | 265,875 | |||||||||||||
NOI from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
NOI from other properties/affiliates | (250,512 | ) | (45,719 | ) | (18,420 | ) | (18,261 | ) | (268,932 | ) | (63,980 | ) | |||||||||||
Same-Store NOI | 178,139 | 181,516 | 21,839 | 20,379 | 199,978 | 201,895 | |||||||||||||||||
Ground lease straight-line adjustment | 467 | 472 | — | — | 467 | 472 | |||||||||||||||||
Straight-line and free rent | (8,544 | ) | (20,317 | ) | (1,589 | ) | (1,777 | ) | (10,133 | ) | (22,094 | ) | |||||||||||
Rental income - FAS 141 | (3,792 | ) | (4,996 | ) | (391 | ) | (439 | ) | (4,183 | ) | (5,435 | ) | |||||||||||
Same-store cash NOI | $ | 166,270 | $ | 156,675 | $ | 19,859 | $ | 18,163 | $ | 186,129 | $ | 174,838 | |||||||||||
SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited and in thousands, except per share data)
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
FFO Reconciliation: | |||||||
Net income attributable to SL Green common stockholders | $ | 156,678 | $ | 4,171 | |||
Add: | |||||||
Depreciation and amortization | 604,350 | 307,902 | |||||
Joint venture depreciation and noncontrolling interest adjustments | 18,842 | 13,057 | |||||
Net income attributable to noncontrolling interests | 11,917 | 12,719 | |||||
Less: | |||||||
Gain on sale of real estate and discontinued operations, net | 210,353 | 12,983 | |||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 43,363 | 769 | |||||
Depreciation on non-rental real estate assets | 996 | 1,025 | |||||
Depreciable real estate reserve | (10,387 | ) | — | ||||
Funds From Operations attributable to SL Green common stockholders and noncontrolling interests | $ | 547,462 | $ | 323,072 | |||
Consolidated Properties | SL Green's share of Unconsolidated Joint Ventures | Combined | |||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
Operating income and Same-store NOI Reconciliation: | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, purchase price fair value adjustment, gain on sale of real estate, depreciable real estate reserves and loss on early extinguishment of debt | $ | (77,585 | ) | $ | 5,303 | ||||||||||||||||||
Equity in net income from unconsolidated joint ventures | 15,937 | 7,024 | 15,937 | 7,024 | |||||||||||||||||||
Depreciation and amortization | 604,350 | 307,902 | 29,813 | 29,354 | |||||||||||||||||||
Interest expense, net of interest income | 183,761 | 151,553 | 34,650 | 33,514 | |||||||||||||||||||
Amortization of deferred financing costs | 15,365 | 12,567 | 3,432 | 2,665 | |||||||||||||||||||
Loss on early extinguishment of debt | — | (49 | ) | 972 | 407 | ||||||||||||||||||
Operating income | 741,828 | 484,300 | 84,804 | 72,964 | |||||||||||||||||||
Marketing, general and administrative expense | 48,516 | 48,664 | — | — | |||||||||||||||||||
Net operating income from discontinued operations | — | 427 | — | — | |||||||||||||||||||
Transaction related costs, net | 3,394 | 4,210 | — | 10 | |||||||||||||||||||
Non-building revenue | (102,383 | ) | (95,405 | ) | 1,098 | 1,127 | |||||||||||||||||
Equity in net income from unconsolidated joint ventures | (15,937 | ) | (7,024 | ) | — | — | |||||||||||||||||
Loss on early extinguishment of debt | — | 49 | (972 | ) | (407 | ) | |||||||||||||||||
Net operating income (NOI) | $ | 675,418 | $ | 435,221 | $ | 84,930 | $ | 73,694 | 760,348 | 508,915 | |||||||||||||
NOI from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
NOI from other properties/affiliates | (329,874 | ) | (101,055 | ) | (41,296 | ) | (33,628 | ) | (371,170 | ) | (134,683 | ) | |||||||||||
Same-Store NOI | 345,544 | 334,166 | 43,634 | 40,066 | 389,178 | 374,232 | |||||||||||||||||
Ground lease straight-line adjustment | 935 | 944 | — | — | 935 | 944 | |||||||||||||||||
Straight-line and free rent | (16,050 | ) | (28,974 | ) | (3,595 | ) | (3,218 | ) | (19,645 | ) | (32,192 | ) | |||||||||||
Rental income - FAS 141 | (7,532 | ) | (7,815 | ) | (782 | ) | (963 | ) | (8,314 | ) | (8,778 | ) | |||||||||||
Same-store cash NOI | $ | 322,897 | $ | 298,321 | $ | 39,257 | $ | 35,885 | $ | 362,154 | $ | 334,206 | |||||||||||
SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED
June 30, | |||||||
2016 | 2015 | ||||||
Manhattan Operating Data: (1) | |||||||
Net rentable area at end of period (in 000’s) | 22,613 | 22,009 | |||||
Portfolio percentage leased at end of period | 95.6 | % | 94.9 | % | |||
Same-Store percentage leased at end of period | 96.5 | % | 96.6 | % | |||
Number of properties in operation | 31 | 31 | |||||
Office square feet where leases commenced during quarter ended (rentable) | 698,753 | 573,432 | |||||
Average mark-to-market percentage-office | 11.8 | % | 16.5 | % | |||
Average starting cash rent per rentable square foot-office | $ | 67.55 | $ | 61.66 | |||
(1)Includes wholly-owned and joint venture properties.