Sl Green Realty Corp · NYSE:SLG
Sl Green Realty — Q1 2024 Earnings Presentation
52 slides from Sl Green Realty's earnings presentation, Apr 18, 2024
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Slide 2: Company description 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 may be dispositions, financing, development, redevelopmen
Slide 3: Table of Contents
TABLE OF CONTENTS Definitions 4 Highlights 6 - 11 Comparative Balance Sheets 12 Comparative Statements of Operations 14 Comparative Computation of FFO and FAD 15 Consolidated Statement of Equity 16 Joint Venture Statements 17 - 18 Selected Financial Data 19 - 22 Debt Summary Schedule 23 - 25 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 2024 Highlights
FIRST QUARTER 2024 HIGHLIGHTS Unaudited NEW YORK, April 17, 2024 - SL Green Realty Corp. (the "Company") (NYSE: Occupancy in the Company's Manhattan same-store office portfolio was SLG) today reported a net income attributable to common stockholders for the 89.2% as of March 31, 2024, thirty basis p
Slide 7: First Quarter 2024 Highlights
FIRST QUARTER 2024 HIGHLIGHTS Unaudited Investment Activity Financing Activity In March, the Company entered into a contract to acquire its partner's 45% In March, together with our joint venture partner, closed on a modification and interest in 10 East 53rd Street for cash consideration of $7.2 mil
Slide 8: First Quarter 2024 Highlights
FIRST QUARTER 2024 HIGHLIGHTS Unaudited Earnings Guidance Conference Call and Audio Webcast The Company is increasing its 2024 FFO guidance range for the year ending The Company's executive management team, led by Marc Holliday, Chairman December 31, 2024 to FFO per share of $7.35 to $7.65, as compa
Slide 9: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Earnings Per Share Net income (loss) available to common stockholders (EPS) - diluted $ 0.20 $ (2.45) $ (0.38) $ (5.63) $ (0.63) Funds from oper
Slide 10: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Selected Balance Sheet Data Real estate assets before depreciation $ 7,214,191 (1) $ 7,056,100 $ 6,992,239 $ 6,917,131 $ 9,243,706 Investments i
Slide 11: Key Financial Data
KEY FINANCIAL DATA (1) Manhattan Properties Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Selected Operating Data Property operating revenues $ 136,869 $ 145,542 $ 145,547 $ 181,045 $ 190,215 Property operatin
Slide 12: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Assets Commercial real estate properties, at cost: Land and land interests $ 1,150,681 $ 1,092,671 $ 1,090,370 $ 1,071,469 $ 1,576,927 Building and improvements 3,729,884 3,655,624 3,
Slide 13: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Liabilities Mortgages and other loans payable $ 1,701,378 $ 1,497,386 $ 1,518,872 $ 1,520,313 $ 3,234,489 Unsecured term loans 1,250,000 1,250,000 1,250,000 1,675,000 1,675,000 Unsecu
Slide 14: 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, 2024 2023 2023 2023 Revenues Rental revenue, net $ 128,203 $ 174,592 $ 131,927 $ 131,524 Escalation and reimbursement revenues 13,301 20,450 19,430
Slide 15: 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, 2024 2023 2023 2023 Funds from Operations Net Income (Loss) attributable to SL Green common stockholders $ 13,141 $ (39,731) $ (155,617) $ (23,96
Slide 16: 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 Deficit Interests Income Total Balance at December 31, 2023 $ 221,932 $ 660 $ 3,826,452 $ (128,655
Slide 17: Joint Venture Statements: Balance Sheet
JOINT VENTURE STATEMENTS Balance Sheet for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) As of March 31, 2024 December 31, 2023 September 30, 2023 Total SLG Share Total SLG Share Total SLG Share Assets Commercial real estate properties, at cost: Land and land interests $ 4,852,319 $
Slide 18: Joint Venture Statements: Statement of Operations
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) Three Months Ended March 31, 2024 March 31, 2023 December 31, 2023 Total SLG Share Total SLG Share Total SLG Share Revenues Rental revenue, net $ 300,675 $ 159,279 $ 325,664 $ 167,187
Slide 19: Selected Financial Data: Net Operating Income
SELECTED FINANCIAL (1) DATA Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended March 31, March 31, December 31, September 30, 2024 2023 2023 2023 Net Operating Income (1) $ 68,338 $ 105,295 $ 74,124 $ 71,943 SLG share of NOI from unconsolidated JVs 112,990 130,214 119,999 127,7
Slide 20: Same Store NOI - Wholly Owned and Consolidated JVs
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, 2024 2023 % 2023 2023 Revenues Rental revenue, net $ 121,303 $ 125,880 (3.6)% $ 122,258 $ 121,072 Escalation
Slide 21: Same Store NOI - Unconsolidated JVs
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, 2024 2023 % 2023 2023 Revenues Rental revenue, net $ 120,279 $ 123,512 (2.6)% $ 125,835 $ 129,004 Escalation & re
Slide 22: Same Store Net Operating Income
SELECTED FINANCIAL DATA Same Store Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended March 31, March 31, December 31, September 30, 2024 2023 % 2023 2023 Revenues Rental revenue, net $ 121,303 $ 125,880 (3.6)% $ 122,258 $ 121,072 Escalation & reimbursement revenues 13,270 16,5
Slide 23: Debt Summary Schedule - Consolidated
DEBT SUMMARY SCHEDULE Consolidated Unaudited (Dollars in Thousands) Principal 2024 Current Final Principal Ownership Outstanding Principal Maturity Maturity Due at Fixed rate debt Interest (%) 3/31/2024 Coupon (1) Amortization Date Date (2) Maturity Secured fixed rate debt 420 Lexington Avenue 100.0
Slide 24: Debt Summary Schedule - Unconsolidated JVs
DEBT SUMMARY SCHEDULE Unconsolidated JVs Unaudited (Dollars in Thousands) Principal Outstanding 2024 Principal Current Final Principal Ownership 3/31/2024 Amortization Maturity Maturity Due at Maturity Fixed rate debt Interest (%) Gross Principal SLG Share Coupon (1) (SLG Share) Date Date (2) (SLG S
Slide 25: Debt Composition and Corporate Debt Covenants
DEBT COMPOSITION AND CORPORATE DEBT COVENANTS Unaudited (Dollars in Thousands) Composition of Debt Core Portfolio Alternative Strategy Portfolio Total Fixed Rate Debt Consolidated $ 3,040,885 $ — $ 3,040,885 SLG Share of JV 5,377,399 527,781 5,905,180 Total Fixed Rate Debt $ 8,418,284 85.5% $ 527,78
Slide 26: Derivative Summary Schedule
DERIVATIVE SUMMARY SCHEDULE Unaudited (Dollars in Thousands) Consolidated Interest Rate Derivatives Ownership Notional Value Fair Value Secured Debt Interest (%) 3/31/2024 3/31/2024 Instrument (1) Strike Rate (1) Effective Date Maturity Date 10 East 53rd Street 55.0 $220,000 $1,789 Cap 4.00 % Februa
Slide 27: Summary of Lease Liabilities
SUMMARY OF LEASE LIABILITIES Unaudited (Dollars in Thousands) 2024 Scheduled 2025 Scheduled 2026 Scheduled 2027 Scheduled Lease Year of Final Property Cash Payment (1) Cash Payment (1) Cash Payment (1) Cash Payment (1) Liabilities (2) Expiration (3) Consolidated Lease Liabilities (SLG Share) Operati
Slide 28: 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) 3/31/2023 $ 626,803 $ 635,651 5.75% 5.89% Debt investment originations/fundings/accr
Slide 29: 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 30: Debt and Preferred Equity Investments
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 3/31/2024 Type Location Financing Last $ PSF Fixed/Floating Of Quarter (3) Multi-Family Preferred Equity $ 130,115 Manhattan $ 250,00
Slide 31: Selected Property Data: Manhattan Operating Properties
SELECTED PROPERTY DATA Manhattan Operating Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total March 31, 2024 December 31, 2023 Cash Rent Tenants Interest SubMarket Ownership Square Feet (1) Sq. Feet % % % % SLG Share Properties (%) Occupied (2) Leased (3) O
Slide 32: Selected Property Data: Retail, Residential and Suburban
SELECTED PROPERTY DATA Retail, Residential and Suburban Operating Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total March 31, 2024 December 31, 2023 Cash Rent Tenants Properties Interest SubMarket Ownership Square Feet (1) Sq. Feet % % % % SLG Share (%) Oc
Slide 33: Selected Property Data: Development / Redevelopment and ASP
SELECTED PROPERTY DATA Development / Redevelopment, Alternative Strategy Portfolio & Construction in Progress Properties Unaudited (Dollars in Thousands) Real Estate Annualized Contractual Book Total Ownership % of Total March 31, 2024 December 31, 2023 Cash Rent Value, Net Tenants Properties Intere
Slide 34: Selected Property Data: Retail Within Operating Properties
SELECTED PROPERTY DATA Retail Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total March 31, 2024 December 31, 2023 Cash Rent Tenants Properties Interest SubMarket Ownership Squa
Slide 35: Selected Property Data - Continued
SELECTED PROPERTY DATA - CONTINUED Retail Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total March 31, 2024 December 31, 2023 Cash Rent Tenants Properties Interest SubMarket Ow
Slide 36: 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 Investment Ownership Expiration Total Rentable Contractual SLG Share of Annualized Annualized Contractual Contractual Grade Credit Tenant Name Property In
Slide 37: Manhattan Tenant Diversification
MANHATTAN TENANT DIVERSIFICATION Unaudited SLG Share of Annualized Contractual Cash Rent (1) Square Feet Leased (1) Financial Services 39% Financial Services 40% Business Services 2% Manufacturing 2% Manufacturing 2% Business Services 2% Medical 2% Medical 3% Government/Non Profit 3% Retail 3% Other
Slide 38: Leasing Activity - Available Space
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Available Space Unaudited Escalated Activity Building Address # of Leases Square Feet (1) Rentable SF Rent/Rentable SF ($'s)(2) Available Space at 12/31/23 2,906,493 Space which became available during the Quarter (3): Office One Vanderbilt Avenue 1
Slide 39: Leasing Activity - Commenced Leasing
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Commenced Leasing Unaudited New Cash Rent / Prev. Escalated Rent/ Free Rent Activity Building Address # of Leases Term (Yrs) Square Feet (1) Rentable SF Rentable SF(2) Rentable SF(3) TI / Rentable SF # of Months Available Space 3,450,043 100 Church S
Slide 40: Lease Expirations - Manhattan Operating Properties
LEASE EXPIRATIONS - MANHATTAN OPERATING PROPERTIES Office, Retail and Storage Leases Unaudited SLG Share SLG Share Annualized Contractual Rentable Square Rentable Square Annualized Contractual Annualized Contractual Cash Rent Per Square Current Weighted Number of Expiring Footage of Expiring Footage
Slide 41: Lease Expirations - Retail, Wholly-Owned
LEASE EXPIRATIONS Retail Leases Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Wholly-Owned and Consolidated JV's Unaudited SLG Share Annualized Contractual SLG Share Annualized Contractual Annualized Contractual Cash Rent Per Square Number of Expiring Re
Slide 42: Lease Expirations - Retail, Unconsolidated JVs
LEASE EXPIRATIONS Retail Leases Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Unconsolidated JV's Unaudited SLG Share Annualized Contractual SLG Share Annualized Contractual Annualized Contractual Cash Rent Per Square Number of Expiring Rentable Square F
Slide 43: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Manhattan Office Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 3/31/2024 2001 - 2024 Acquisitions Jun-01 317 Madison Avenue Grand Central 100
Slide 44: 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 - 2024 Dispositions Jan-01 633 Third Ave Grand Central North 100.0% Fee Interest 40,623 $ 13,250
Slide 45: 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 ($'s) at acquisition 3/31/2024 2005 - 202
Slide 46: Summary of Real Estate Disposition Activity
SUMMARY OF REAL ESTATE DISPOSITION ACTIVITY Retail, Residential, Development / Redevelopment, Land and Alternative Strategy Portfolio Unaudited (Dollars in Thousands) Interest Gross Asset Valuation Property Type of Property Submarket Sold Type of Ownership Net Rentable SF ($'s) ($'s/SF) 2011 - 2023
Slide 47: Summary of Real Estate Acquisition/Disposition Activity
SUMMARY OF REAL ESTATE ACQUISITION/DISPOSITION ACTIVITY Suburban Office Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 3/31/2024 2007 - 2024 Acquisitions Jan-07 300 Main Street Stamford,
Slide 48: 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 49: 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, 2024 2023 Net income (loss) attributable to SL Green common stockholders $ 13,141 $ (
Slide 50: Non-GAAP Disclosures and Reconciliations
Non-GAAP Disclosures and Reconciliations Unaudited (Dollars in Thousands, except per share data) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Three Months Ended Operating income and Same-store NOI Reconciliation March 31, 2024 2023 Net income (loss) $ 18,389 $ (38,357) Depreciable real estate reser
Slide 51: 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 Brendan Lynch (212) 526-9428 brendan.lynch@barclays.com BMO Capital Markets Corp. John P. Kim (212) 885-4115 JohnP.Kim@bmo.com BTIG Thomas Catherwood (2
Slide 52: Executive Management
EXECUTIVE MANAGEMENT Marc Holliday Neil H. Kessner Chairman, Chief Executive Officer and Executive Vice President, General Interim President Counsel - Real Property Matthew J. DiLiberto Maggie Hui Chief Financial Officer Chief Accounting Officer Andrew S. Levine Harrison Sitomer Chief Legal Officer