Sl Green Realty Corp · NYSE:SLG
Sl Green Realty — Q1 2023 Earnings Presentation
50 slides from Sl Green Realty's earnings presentation, Apr 20, 2023
Slide 1: First Quarter 2023 Supplemental Data
Slide 2: Company Overview and Forward-looking Statements
SL Green Realty Corp. is a self-managed real estate investment trust, or Forward-looking Statements REIT, with in-house capabilities in property management, acquisitions and This supplemental reporting package includes certain statements that dispositions, financing, development, redevelopment, cons
Slide 3: Table of Contents
TABLE OF CONTENTS Definitions 4 Highlights 6 - 10 Comparative Balance Sheets 11 Comparative Statements of Operations 13 Comparative Computation of FFO and FAD 14 Consolidated Statement of Equity 15 Joint Venture Statements 16 - 17 Selected Financial Data 18 - 21 Debt Summary Schedule 22 - 23 Derivat
Slide 4: Definitions
DEFINITIONS Annualized cash rent - Monthly base rent and escalations per the lease, excluding Funds from Operations (FFO) - FFO is a widely recognized non-GAAP financial measure concessions, deferrals, and abatements as of the last day of the quarter, multiplied by 12. of REIT performance. The Compa
Slide 5: Definitions
DEFINITIONS Same-Store Properties (Same-Store) - Properties owned in the same manner during both the current and prior year, excluding development and redevelopment properties that are not stabilized for both the current and prior year. Changes to Same-Store properties in 2023 are as follows: Added
Slide 6: First Quarter 2023 Highlights
FIRST QUARTER 2023 HIGHLIGHTS Unaudited NEW YORK, April 19, 2023 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today Occupancy in the Company's Manhattan same-store office portfolio was 90.2% as of March reported net loss attributable to common stockholders for the quarter ended March 31, 2023
Slide 7: First Quarter 2023 Highlights
FIRST QUARTER 2023 HIGHLIGHTS Unaudited ESG The Company received a 2023 ENERGY STAR Partner of the Year Sustained Excellence Award for the sixth consecutive year. This award honors organizations across the United States that have implemented distinguished corporate energy management programs. Among
Slide 8: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Earnings Per Share Net (loss) income available to common stockholders (EPS) - diluted $ (0.63) $ (1.01) $ 0.11 $ (0.70) $ 0.11 Funds from operat
Slide 9: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Selected Balance Sheet Data Real estate assets before depreciation $ 9,243,706 $ 9,198,799 $ 9,462,329 $ 7,440,532 $ 7,758,232 Investments in un
Slide 10: Key Financial Data
KEY FINANCIAL DATA (1) Manhattan Properties Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Selected Operating Data Property operating revenues $ 190,215 $ 192,814 $ 157,451 $ 149,542 $ 150,557 Property operatin
Slide 11: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Assets Commercial real estate properties, at cost: Land and land interests $ 1,576,927 $ 1,576,927 $ 1,715,371 $ 1,209,913 $ 1,352,610 Building and improvements 4,940,138 4,903,776 5,
Slide 12: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Liabilities Mortgages and other loans payable $ 3,234,489 $ 3,235,962 $ 3,237,390 $ 1,526,023 $ 1,349,700 Unsecured term loans 1,675,000 1,650,000 1,250,000 1,250,000 1,250,000 Unsecu
Slide 13: Comparative Statement of Operations
COMPARATIVE STATEMENT OF OPERATIONS Unaudited (Dollars in Thousands Except Per Share) Three Months Ended March 31, March 31, December 31, September 30, 2023 2022 2022 2022 Revenues Rental revenue, net $ 174,592 $ 136,476 $ 172,892 $ 142,962 Escalation and reimbursement revenues 20,450 19,555 24,393
Slide 14: Comparative Computation of FFO and FAD
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited (Dollars in Thousands Except Per Share) Three Months Ended March 31, March 31, December 31, September 30, 2023 2022 2022 2022 Funds from Operations Net (Loss) Income Attributable to Common Stockholders $ (39,731) $ 7,751 $ (64,276) $ 7,377 Depreciatio
Slide 15: Consolidated Statement of Equity
CONSOLIDATED STATEMENT OF EQUITY Unaudited (Dollars in Thousands) Accumulated Series I Other Preferred Common Additional Treasury Retained Noncontrolling Comprehensive Stock Stock Paid-In Capital Stock Earnings Interests Income Total Balance at December 31, 2022 $ 221,932 $ 656 $ 3,790,358 $ (128,65
Slide 16: Joint Venture Statements
JOINT VENTURE STATEMENTS Balance Sheet for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) As of March 31, 2023 December 31, 2022 September 30, 2022 Total SLG Share Total SLG Share Total SLG Share Assets Commercial real estate properties, at cost: Land and land interests $ 3,891,106 $
Slide 17: Joint Venture Statements
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) Three Months Ended Three Months Ended Three Months Ended March 31, 2023 December 31, 2022 March 31, 2022 Total SLG Share Total SLG Share Total SLG Share Revenues Rental revenue, net $
Slide 18: Selected Financial Data
SELECTED FINANCIAL DATA Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended March 31, March 31, December 31, September 30, 2023 2022 2022 2022 Net Operating Income (1) $ 105,295 $ 87,093 $ 111,098 $ 85,093 SLG share of NOI from unconsolidated JVs 130,214 101,212 103,347 99,398 N
Slide 19: Selected Financial Data
SELECTED FINANCIAL DATA Same Store Net Operating Income - Wholly Owned and Consolidated JVs Unaudited (Dollars in Thousands) Three Months Ended March 31, March 31, December 31, September 30, 2023 2022 % 2022 2022 Revenues Rental revenue, net $ 123,237 $ 122,930 0.2 % $ 121,117 $ 121,358 Escalation &
Slide 20: Selected Financial Data
SELECTED FINANCIAL DATA Same Store Net Operating Income - Unconsolidated JVs Unaudited (Dollars in Thousands, SLG Share) Three Months Ended March 31, March 31, December 31, September 30, 2023 2022 % 2022 2022 Revenues Rental revenue, net $ 138,459 $ 138,385 0.1 % $ 140,232 $ 134,365 Escalation & rei
Slide 21: Selected Financial Data
SELECTED FINANCIAL DATA Same Store Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended March 31, March 31, December 31, September 30, 2023 2022 % 2022 2022 Revenues Rental revenue, net $ 123,237 $ 122,930 0.2 % $ 121,117 $ 121,358 Escalation & reimbursement revenues 16,238 17,74
Slide 22: Debt Summary Schedule
DEBT SUMMARY SCHEDULE Consolidated Unaudited (Dollars in Thousands) Principal 2023 Final Principal Ownership Outstanding Principal Maturity Maturity Due at Fixed rate debt Interest (%) 3/31/2023 Coupon (1) Amortization Date Date (2) Maturity Secured fixed rate debt 719 Seventh Avenue (capped) 75.0 $
Slide 23: Debt Summary Schedule
DEBT SUMMARY SCHEDULE Unconsolidated JVs Unaudited (Dollars in Thousands) Principal Outstanding 2023 Principal Final Principal Ownership 3/31/2023 Amortization Maturity Maturity Due at Maturity Fixed rate debt Interest (%) Gross Principal SLG Share Coupon (1) (SLG Share) Date Date (2) (SLG Share) 71
Slide 24: Derivative Summary Schedule
DERIVATIVE SUMMARY SCHEDULE Unaudited (Dollars in Thousands) Consolidated Interest Rate Derivatives Ownership Notional Value Secured Debt Interest (%) 3/31/2023 Instrument Strike Rate Effective Date Maturity Date 719 Seventh Avenue 75.0 $50,000 Cap 3.50 % October 2022 September 2023 185 Broadway / 7
Slide 25: Summary of Lease Liabilities
SUMMARY OF LEASE LIABILITIES Unaudited (Dollars in Thousands) SLG 2023 Scheduled 2024 Scheduled 2025 Scheduled 2026 Scheduled Lease Year of Final Property Interest (%) Cash Payment (1) Cash Payment (1) Cash Payment (1) Cash Payment (1) Liabilities (2) Expiration (3) Consolidated Lease Liabilities (S
Slide 26: Debt and Preferred Equity Investments
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands) Weighted Average Book Weighted Average Weighted Average Yield (1) (2) Book Value Value During Quarter Yield During Quarter At End Of Quarter (3) 3/31/2022 $ 1,107,870 $ 1,101,609 7.28% 7.41% Debt investment originations/fundings/
Slide 27: Debt and Preferred Equity Investments
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) Book Value Senior Weighted Average Weighted Average Weighted Average Yield (1) (2) Type of Investment Floating rate Fixed rate Total Financing Exposure PSF Yield During Quarter At End Of Quarter (2
Slide 28: Largest Debt and Preferred Equity Investments
LARGEST DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) Book Value (1) Property Senior Yield At End (2) Investment Type 3/31/2023 Type Location Financing Last $ PSF Fixed/Floating Of Quarter (3) Mezzanine Loan $ 225,367 Fee Manhattan $ 408,672 $
Slide 29: Selected Property Data
SELECTED PROPERTY DATA Manhattan Operating Properties Unaudited (Dollars in Thousands) Ownership # of % of Total Occupancy % (Commenced Leases) Annualized Contractual Cash Rent Total Tenants Properties Interest (%) SubMarket Ownership Bldgs Square Feet Sq. Feet Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 ($'
Slide 30: Selected Property Data
SELECTED PROPERTY DATA Retail, Residential and Suburban Operating Properties Unaudited (Dollars in Thousands) Ownership # of % of Total Occupancy % (Commenced Leases) Annualized Contractual Cash Rent Total Tenants Properties Interest (%) SubMarket Ownership Bldgs Square Feet Sq. Feet Mar-23 Dec-22 S
Slide 31: Selected Property Data
SELECTED PROPERTY DATA Development / Redevelopment and Construction in Progress Unaudited (Dollars in Thousands) Real Estate Book Ownership # of % of Total Occupancy % (Commenced Leases) Annualized Contractual Cash Rent Value, Net Total Tenants Properties Interest (%) SubMarket Ownership Bldgs Squar
Slide 32: Selected Property Data
SELECTED PROPERTY DATA Retail Within Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) Ownership # of % of Total Occupancy % (Commenced Leases) Annualized Contractual Cash Rent Total Tenants Properties Interest (%) SubMarket Ownership Bldgs Square Feet Sq. Feet Ma
Slide 33: Selected Property Data - Continued
SELECTED PROPERTY DATA - CONTINUED Retail Within Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) Ownership # of % of Total Occupancy % (Commenced Leases) Annualized Contractual Cash Rent Total Tenants Properties Interest (%) SubMarket Ownership Bldgs Square Feet
Slide 34: Largest Tenants by SLG Share of Annualized Cash Rent
LARGEST TENANTS BY SLG SHARE OF ANNUALIZED CASH RENT Unaudited (Dollars in Thousands Except Per SF) Lease Annualized % of SLG Share of Annualized Ownership Expiration Total Rentable Contractual SLG Share of Annualized Annualized Contractual Contractual Tenant Name Property Interest % (1) Square Feet
Slide 35: Manhattan Tenant Diversification
MANHATTAN TENANT DIVERSIFICATION Unaudited SLG Share of Annualized Contractual Cash Rent (1) Square Feet Leased (1) Financial Services 40% Financial Services 44% Manufacturing 2% Business Services 2% Business Services 2% Manufacturing 2% Other 4% Other 4% Government/Non Profit 3% Arts,Ent. & Recreat
Slide 36: Leasing Activity - Manhattan Operating Properties
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Available Space Unaudited Escalated Activity Building Address # of Leases Square Feet (1) Rentable SF Rent/Rentable SF ($'s) (2) Available Space at 12/31/22 2,264,333 Add: Property out of redevelopment 885 Third Avenue 51,490 Less: Property in redeve
Slide 37: Leasing Activity - Manhattan Operating Properties
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Commenced Leasing Unaudited New Cash Rent / Prev. Escalated Rent/ Free Rent Activity Building Address # of Leases Term (Yrs) Square Feet (1) Rentable SF Rentable SF (2) Rentable SF (3) TI / Rentable SF # of Months Available Space 2,976,507 Office 10
Slide 38: Lease Expirations - Manhattan Operating Properties
LEASE EXPIRATIONS - MANHATTAN OPERATING PROPERTIES Office, Retail and Storage Leases Unaudited SLG Share SLG Share Annualized Contractual Rentable Square Rentable Square Annualized Contractual Annualized Contractual Cash Rent Per Square Current Weighted Number of Expiring Footage of Expiring Footage
Slide 39: Lease Expirations
LEASE EXPIRATIONS Retail Leases Within Operating and Development / Redevelopment Properties Wholly-Owned and Consolidated JV's Unaudited SLG Share SLG Share Annualized Contractual Rentable Square Rentable Square Annualized Contractual Annualized Contractual Cash Rent Per Square Current Weighted Numb
Slide 40: Lease Expirations
LEASE EXPIRATIONS Retail Leases Within Operating and Development / Redevelopment Properties Unconsolidated JV's Unaudited SLG Share SLG Share Annualized Contractual Rentable Square Rentable Square Annualized Contractual Annualized Contractual Cash Rent Per Square Current Weighted Number of Expiring
Slide 41: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Manhattan Office Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 3/31/2023 2001 - 2023 Acquisitions Jun-01 317 Madison Avenue Grand Central 100
Slide 42: Summary of Real Estate Disposition Activity
SUMMARY OF REAL ESTATE DISPOSITION ACTIVITY Manhattan Office Unaudited (Dollars in Thousands) Gross Asset Valuation Property Submarket Interest Sold Type of Ownership Net Rentable SF ($'s) ($'s/SF) 2001 - 2023 Dispositions Jan-01 633 Third Ave Grand Central North 100.0% Fee Interest 40,623 $ 13,250
Slide 43: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Retail, Residential, Development / Redevelopment and Land Unaudited (Dollars in Thousands) Interest Gross Asset Occupancy (%) Property Type of Property Submarket Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 3/31/2023 2005 - 202
Slide 44: Summary of Real Estate Disposition Activity
SUMMARY OF REAL ESTATE DISPOSITION ACTIVITY Retail, Residential, Development / Redevelopment and Land Unaudited (Dollars in Thousands) Interest Gross Asset Valuation Property Type of Property Submarket Sold Type of Ownership Net Rentable SF ($'s) ($'s/SF) 2011 - 2022 Dispositions Sep-11 1551-1555 Br
Slide 45: Summary of Real Estate Acquisition/Disposition Activity
SUMMARY OF REAL ESTATE ACQUISITION/DISPOSITION ACTIVITY Suburban Office Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 3/31/2023 2007 - 2023 Acquisitions Jan-07 300 Main Street Stamford,
Slide 46: Non-GAAP Disclosures and Reconciliations
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) Funds Available for Distribution (FAD) FAD is a non-GAAP financial measure that is calculated as FFO plus non-real estate depreciation, allowance for straight line credit loss, adjustment for straight li
Slide 47: Non-GAAP Disclosures and Reconciliations
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Funds From Operations (FFO) Reconciliation Three Months Ended March 31, 2023 2022 Net (loss) income attributable to SL Green common stockholders $ (39,731) $
Slide 48: Non-GAAP Disclosures and Reconciliations
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - Operating income and Same-store NOI Reconciliation Three Months Ended March 31, 2023 2022 Net (loss) income $ (38,357) $ 13,485 Equity in net loss on sale
Slide 49: Research Analyst Coverage
RESEARCH ANALYST COVERAGE EQUITY COVERAGE Firm Analyst Phone Email B of A Securities Camille Bonnel (416) 369-2140 camille.bonnel@bofa.com Barclays Anthony Powell (212) 526-8768 anthony.powell@barclays.com BMO Capital Markets Corp. John P. Kim (212) 885-4115 jp.kim@bmo.com BTIG Thomas Catherwood (21
Slide 50: Executive Management
EXECUTIVE MANAGEMENT Marc Holliday Neil H. Kessner Chairman and Chief Executive Officer Executive Vice President, General Counsel - Real Property Andrew Mathias President Maggie Hui Chief Accounting Officer Matthew J. DiLiberto Chief Financial Officer Harrison Sitomer Chief Investment Officer Andrew