Sl Green Realty Corp · NYSE:SLG
Sl Green Realty — Q2 2020 Earnings Presentation
48 slides from Sl Green Realty's earnings presentation, Jul 23, 2020
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Slide 2: 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 dispositions, financing, development, redevelopment,
Slide 3: Table of Contents
TABLE OF CONTENTS Supplemental Definitions 4 Highlights 5 -9 Comparative Balance Sheets 10 Comparative Statements of Operations 12 Comparative Computation of FFO and FAD 13 Consolidated Statement of Equity 14 Joint Venture Statements 15 - 17 Selected Financial Data 18 - 21 Debt Summary Schedule 22 -
Slide 4: Supplemental Definitions
SUPPLEMENTAL DEFINITIONS Annualized cash rent - Monthly base rent and escalations per the lease, excluding Junior Mortgage Participations - Subordinate interests in first mortgages. concessions, as of the last day of the quarter, multiplied by 12. Mezzanine Debt - Loans secured by ownership interest
Slide 5: Second Quarter 2020 Highlights
SECOND QUARTER 2020 HIGHLIGHTS Unaudited New York, NY, July 22, 2020 - SL Green Realty Corp. (the "Company") (NYSE: SLG) today decrease over the previous fully escalated rents on the same office spaces. The average lease reported net income attributable to common stockholders for the quarter ended J
Slide 6: Second Quarter 2020 Highlights
SECOND QUARTER 2020 HIGHLIGHTS Unaudited In May, the Company sold a 49.5% interest in One Madison Avenue to the National Pension Conference Call and Audio Webcast Service of Korea ("NPS") and Hines Interest LP ("Hines"). NPS and Hines have committed aggregate equity to the project totaling no less t
Slide 7: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Earnings Per Share Net income available to common stockholders - diluted $ 0.74 $ 1.47 $ 0.22 $ 0.40 $ 1.94 Funds from operations (FFO) availabl
Slide 8: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Selected Balance Sheet Data Real estate assets before depreciation (1) $ 9,046,938 $ 9,061,831 $ 9,222,796 $ 9,560,878 $ 9,550,222 Investments i
Slide 9: Key Financial Data
KEY FINANCIAL DATA (1) Manhattan Properties Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Selected Operating Data Property operating revenues $ 188,134 $ 214,373 $ 233,500 $ 230,443 $ 227,427 Property operatin
Slide 10: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Assets Commercial real estate properties, at cost: Land and land interests $ 1,625,483 $ 1,662,840 $ 1,751,544 $ 1,860,922 $ 1,929,496 Building and improvements 5,363,464 5,417,965 5,
Slide 11: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Liabilities Mortgages and other loans payable $ 2,348,483 $ 2,010,217 $ 2,211,883 $ 2,454,684 $ 2,366,907 Unsecured term loans 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Unsecu
Slide 12: Comparative Statement of Operations
COMPARATIVE STATEMENT OF OPERATIONS Unaudited (Dollars in Thousands Except Per Share) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2020 2019 2020 2020 2019 Revenues Rental revenue, net $ 174,141 $ 216,480 $ 195,463 $ 369,604 $ 429,119 Escalatio
Slide 13: Comparative Computation of FFO and FAD
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited (Dollars in Thousands Except Per Share) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2020 2019 2020 2020 2019 Funds from Operations Net Income Attributable to Common Stockholders $ 56,444 $ 161,1
Slide 14: 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 Loss TOTAL Balance at December 31, 2019 $ 221,932 $ 803 $ 4,286,395 $ (124,049)
Slide 15: Joint Venture Statements
JOINT VENTURE STATEMENTS Balance Sheet for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) June 30, 2020 March 31, 2020 December 31, 2019 Total SLG Share Total SLG Share Total SLG Share Assets Commercial real estate properties, at cost: Land and land interests $ 3,902,348 $ 1,886,192
Slide 16: 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 June 30, 2020 March 31, 2020 June 30, 2019 Total SLG Share Total SLG Share Total SLG Share Revenues Rental revenue, net $ 233,3
Slide 17: Joint Venture Statements
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 Total SLG Share Total SLG Share Revenues Rental revenue, net $ 471,794 $ 208,100 $ 506,338 $ 220,042 Escalation and reimbu
Slide 18: Selected Financial Data
SELECTED FINANCIAL DATA Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2020 2019 2020 2020 2019 Net Operating Income (1) $ 108,246 $ 138,358 $ 120,619 $ 228,865 $ 273,863 SLG share of property
Slide 19: Selected Financial Data
SELECTED FINANCIAL DATA 2020 Same Store Net Operating Income - Wholly Owned and Consolidated JVs Unaudited (Dollars in Thousands) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2020 2019 % 2020 2020 2019 % Revenues Rental revenue, net $ 161,796 $
Slide 20: Selected Financial Data
SELECTED FINANCIAL DATA 2020 Same Store Net Operating Income - Unconsolidated JVs Unaudited (Dollars in Thousands, SLG Share) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2020 2019 % 2020 2020 2019 % Revenues Rental revenue, net $ 103,397 $ 106
Slide 21: Selected Financial Data
SELECTED FINANCIAL DATA 2020 Same Store Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2020 2019 % 2020 2020 2019 % Revenues Rental revenue, net $ 161,796 $ 169,482 (4.5)% $ 169,526 $ 331,321
Slide 22: Debt Summary Schedule
DEBT SUMMARY SCHEDULE Consolidated Unaudited (Dollars in Thousands) Principal 2020 Initial Principal As-Of Final Ownership Outstanding Principal Maturity Due at Right Maturity Earliest Fixed rate debt Interest (%) 6/30/2020 Coupon (1) Amortization Date Maturity Extension Date (2) Prepayment (3) Secu
Slide 23: Debt Summary Schedule
DEBT SUMMARY SCHEDULE Unconsolidated JVs Unaudited (Dollars in Thousands) Principal Outstanding 2020 Initial Principal As-Of Final Ownership 6/30/20 Principal Amortization Maturity Due at Maturity Right Maturity Earliest Fixed rate debt Interest (%) Gross Principal SLG Share Coupon (1) (SLG Share) D
Slide 24: Summary of Ground Lease Arrangements
SUMMARY OF GROUND LEASE ARRANGEMENTS Unaudited (Dollars in Thousands) 2020 Scheduled 2021 Scheduled 2022 Scheduled 2023 Scheduled Lease Year of Final Property Cash Payment Cash Payment Cash Payment Cash Payment Liabilities (1) Expiration (2) Consolidated Ground Lease Arrangements Operating Leases 11
Slide 25: Debt and Preferred Equity Investments
DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands) Weighted Average Book Weighted Average Weighted Average Yield Book Value (1) Value During Quarter Yield During Quarter (2) At End Of Quarter (3) 6/30/2019 $2,228,912 $ 2,216,132 8.99% 9.05% Debt investment originations/fundings/a
Slide 26: 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 Type of Investment Floating rate Fixed rate Total Financing Exposure PSF (4) Yield During Quarter (1) At End Of Quarter (1
Slide 27: Largest Debt and Preferred Equity Investments
10 LARGEST DEBT AND PREFERRED EQUITY INVESTMENTS Unaudited (Dollars in Thousands, Except Per Square Foot Amounts) Book Value (1) Property Senior Yield At End Investment Type 6/30/2020 Type Location Financing Last $ PSF (2) Of Quarter (3) Mezzanine Loan $ 225,204 Fee Manhattan $ 333,943 $ 959 8.58% M
Slide 28: Selected Property Data
SELECTED PROPERTY DATA Manhattan Operating Properties Unaudited (Dollars in Thousands) Annualized Contractual Ownership # of Usable % of Total Occupancy (%) Annualized Cash Rent Contractual Cash Total Properties Interest (%) SubMarket Ownership Bldgs Sq. Feet Sq. Feet Jun-20 Mar-20 Dec-19 Sep-19 Jun
Slide 29: Selected Property Data
SELECTED PROPERTY DATA Retail, Residential and Suburban Operating Properties Unaudited (Dollars in Thousands) Ownership # of Usable % of Total Occupancy (%) Annualized Annualized Contractual Cash Contractual Cash Properties Interest (%) SubMarket Ownership Bldgs Sq. Feet Sq. Feet Jun-20 Mar-20 Dec-1
Slide 30: Selected Property Data
SELECTED PROPERTY DATA Development / Redevelopment and Construction in Progress Unaudited (Dollars in Thousands) Ownership # of Usable % of Total Occupancy (%) Annualized Annualized Contractual Cash Contractual Cash Gross R/E Total Properties Interest (%) SubMarket Ownership Bldgs Sq. Feet Sq. Feet
Slide 31: Selected Property Data
SELECTED PROPERTY DATA Retail Within Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) Annualized Contractual Ownership # of Usable % of Total Occupancy (%) Retail Cash Rent Annualized Properties Interest (%) SubMarket Ownership Bldgs Sq. Feet Sq. Feet Jun-20 Mar-
Slide 32: Selected Property Data - Continued
SELECTED PROPERTY DATA - CONTINUED Retail Within Operating and Development / Redevelopment Properties Unaudited (Dollars in Thousands) Annualized Contractual Ownership # of Usable % of Total Occupancy (%) Retail Cash Rent Annualized Properties Interest (%) SubMarket Ownership Bldgs Sq. Feet Sq. Feet
Slide 33: Largest Tenants by SLG Share of Annualized Cash Rent
LARGEST TENANTS BY SLG SHARE OF ANNUALIZED CASH RENT Manhattan, Suburban, Retail, Residential and Development / Redevelopment Properties Unaudited (Dollars in Thousands Except Per SF) Annualized % of SLG Share of Annualized Ownership Lease Total Rentable Contractual SLG Share of Annualized Annualize
Slide 34: Tenant Diversification
TENANT DIVERSIFICATION Manhattan Operating, Retail and Development/Redevelopment Properties Unaudited Supplemental Information 34 Second Quarter 2020
Slide 35: Leasing Activity - Manhattan Operating Properties
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Available Space Unaudited Escalated Activity Building Address # of Leases Usable SF Rentable SF Rent/Rentable SF ($'s)(1) Available Space at 3/31/20 1,384,273 Space which became available during the Quarter (2): Office 100 Park Avenue 1 40,542 43,294
Slide 36: Leasing Activity - Manhattan Operating Properties
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Commenced Leasing Unaudited Activity Building Address # of Leases Term (Yrs) Usable SF Rentable SF New Cash Rent / Prev. Escalated Rent/ TI / Rentable SF Free Rent Rentable SF(1) Rentable SF(2) # of Months Available Space 1,507,785 Office 100 Park Av
Slide 37: Annual Lease Expirations - Manhattan Operating Properties
ANNUAL LEASE EXPIRATIONS - MANHATTAN OPERATING PROPERTIES Office, Retail and Storage Leases Unaudited Consolidated Properties Joint Venture Properties Annualized Annualized Rentable Contractual Current Rentable Contractual Current Square Annualized Cash Rent Per Weighted Square Annualized Cash Rent
Slide 38: Annual Lease Expirations
ANNUAL LEASE EXPIRATIONS Retail Within Operating and Development / Redevelopment Leases Unaudited Consolidated Properties Joint Venture Properties Annualized Annualized Rentable Contractual Current Rentable Contractual Current Square Annualized Cash Rent Per Weighted Square Annualized Cash Rent Per
Slide 39: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Manhattan Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) (1) at acquisition 6/30/2020 1998 - 2018 Acquisitions Mar-98 420 Lexington Avenue Grand Central 100.
Slide 40: Summary of Real Estate Sales Activity
SUMMARY OF REAL ESTATE SALES ACTIVITY Manhattan Unaudited (Dollars in Thousands) Gross Asset Valuation Property Submarket Interest Sold Type of Ownership Net Rentable SF ($'s) ($'s/SF) 2000 - 2018 Sales Feb-00 29 West 35th Street Penn Station 100.0% Fee Interest 78,000 $ 11,700 $ 150 Mar-00 36 West
Slide 41: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Suburban Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) (1) at acquisition 6/30/2020 2007 - 2016 Acquisitions Jan-07 300 Main Street Stamford, Connecticut 10
Slide 42: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Retail, Residential, and Development / Redevelopment Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) (1) at acquisition 6/30/2020 2005 - 2018 Acquisitions Jul
Slide 43: Summary of Real Estate Sales Activity
SUMMARY OF REAL ESTATE SALES ACTIVITY Retail, Residential, and Development / Redevelopment Unaudited (Dollars in Thousands) Gross Asset Valuation Property Submarket Interest Sold Type of Ownership Net Rentable SF ($'s) ($'s/SF) 2011 - 2018 Sales Sep-11 1551-1555 Broadway Times Square 10.0% Fee Inter
Slide 44: Executive Management
EXECUTIVE MANAGEMENT Marc Holliday Edward V. Piccinich Chairman and Chief Executive Officer Chief Operating Officer Andrew Mathias Neil H. Kessner President Executive Vice President, General Counsel - Real Property Matthew J. DiLiberto Chief Financial Officer David M. Schonbraun Chief Investment Off
Slide 45: 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 46: 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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income (loss) attributable to SL Gre
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 - Operating income and Same-store NOI Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income $ 66,627 $ 173,741
Slide 48: Sell-Side Analyst Coverage
SELL-SIDE ANALYST COVERAGE EQUITY COVERAGE Firm Analyst Phone Email Bank of America - Merrill Lynch James C. Feldman (646) 855-5808 james.feldman@baml.com BMO Capital Markets Corp. John P. Kim (212) 885-4115 jp.kim@bmo.com BTIG James Sullivan (212) 738-6139 jsullivan@btig.com Citigroup Michael Biler