Sl Green Realty Corp · NYSE:SLG
Sl Green Realty — Q4 2023 Earnings Presentation
52 slides from Sl Green Realty's earnings presentation, Jan 25, 2024
Slide 1: Fourth Quarter 2023 Supplemental Data
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 - 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 - 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: Fourth Quarter 2023 Highlights
FOURTH QUARTER 2023 HIGHLIGHTS Unaudited NEW YORK, January 24, 2024 - SL Green Realty Corp. (the "Company") (NYSE: SLG) Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint today reported a net loss attributable to common stockholders for the quarter ended ventur
Slide 7: Fourth Quarter 2023 Highlights
FOURTH QUARTER 2023 HIGHLIGHTS Unaudited • New lease with National CineMedia, LLC for 14,206 square feet at 485 Lexington As of December 31, 2023, the value of the Company's derivatives, at share, net of the mark- Avenue. to-market derivatives that negatively impacted reported FFO, was $32.9 million
Slide 8: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Earnings Per Share Net loss available to common stockholders (EPS) - diluted $ (2.45) $ (0.38) $ (5.63) $ (0.63) $ (1.01) Funds from operations
Slide 9: Key Financial Data
KEY FINANCIAL DATA Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Selected Balance Sheet Data Real estate assets before depreciation $ 7,056,100 $ 6,992,239 $ 6,917,131 $ 9,243,706 $ 9,198,799 Investments in u
Slide 10: Key Financial Data - Manhattan Properties
KEY FINANCIAL DATA (1) Manhattan Properties Unaudited (Dollars in Thousands Except Per Share) As of or for the three months ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Selected Operating Data Property operating revenues $ 145,542 $ 145,547 $ 181,045 $ 190,215 $ 192,814 Property operati
Slide 11: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Assets Commercial real estate properties, at cost: Land and land interests $ 1,092,671 $ 1,090,370 $ 1,071,469 $ 1,576,927 $ 1,576,927 Building and improvements 3,655,624 3,605,247 3
Slide 12: Comparative Balance Sheets
COMPARATIVE BALANCE SHEETS Unaudited (Dollars in Thousands) As of 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Liabilities Mortgages and other loans payable $ 1,497,386 $ 1,518,872 $ 1,520,313 $ 3,234,489 $ 3,235,962 Unsecured term loans 1,250,000 1,250,000 1,675,000 1,675,000 1,650,000 Unsec
Slide 13: Comparative Statement of Operations
COMPARATIVE STATEMENT OF OPERATIONS Unaudited (Dollars in Thousands Except Per Share) Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, December 31, 2023 2022 2023 2023 2022 Revenues Rental revenue, net $ 131,927 $ 172,892 $ 131,524 $ 603,694 $ 588,824 Escal
Slide 14: Comparative Computation of FFO and FAD
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited (Dollars in Thousands Except Per Share) Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, December 31, 2023 2022 2023 2023 2022 Funds from Operations Net Loss attributable to SL Green common stockholders $ (15
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 Deficit Interests Income Total Balance at December 31, 2022 $ 221,932 $ 656 $ 3,790,358 $ (128,655
Slide 16: Joint Venture Statements
JOINT VENTURE STATEMENTS Balance Sheet for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) As of December 31, 2023 September 30, 2023 June 30, 2023 Total SLG Share Total SLG Share Total SLG Share Assets Commercial real estate properties, at cost: Land and land interests $ 4,991,534 $
Slide 17: Joint Venture Statements
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) Three Months Ended December 31, 2023 December 31, 2022 September 30, 2023 Total SLG Share Total SLG Share Total SLG Share Revenues Rental revenue, net $ 321,457 $ 164,315 $ 280,417 $ 1
Slide 18: Joint Venture Statements
JOINT VENTURE STATEMENTS Statement of Operations for Unconsolidated Joint Ventures Unaudited (Dollars in Thousands) Twelve Months Ended December 31, 2023 December 31, 2022 Total SLG Share Total SLG Share Revenues Rental revenue, net $ 1,258,033 $ 645,147 $ 1,111,905 $ 566,603 Escalation and reimburs
Slide 19: Selected Financial Data
SELECTED FINANCIAL (1) DATA Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, December 31, 2023 2022 2023 2023 2022 Net Operating Income (1) $ 74,124 $ 111,098 $ 71,943 $ 352,043 $ 373,775 SLG share of NO
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 Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, December 31, 2023 2022 % 2023 2023 2022 % Revenues Rental revenu
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 Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, December 31, 2023 2022 % 2023 2023 2022 % Revenues Rental revenue, n
Slide 22: Same Store Net Operating Income
SELECTED FINANCIAL DATA Same Store Net Operating Income Unaudited (Dollars in Thousands) Three Months Ended Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, December 31, 2023 2022 % 2023 2023 2022 % Revenues Rental revenue, net $ 119,908 $ 121,117 (1.0)% $
Slide 23: Debt Summary Schedule
DEBT SUMMARY SCHEDULE Consolidated Unaudited (Dollars in Thousands) Principal 2024 Current Final Principal Ownership Outstanding Principal Maturity Maturity Due at Fixed rate debt Interest (%) 12/31/2023 Coupon (1) Amortization Date Date (2) Maturity Secured fixed rate debt 420 Lexington Avenue 100.
Slide 24: Debt Summary Schedule - Unconsolidated JVs
DEBT SUMMARY SCHEDULE Unconsolidated JVs Unaudited (Dollars in Thousands) Principal Outstanding 2024 Principal Current Final Principal Ownership 12/31/2023 Amortization Maturity Maturity Due at Maturity Fixed rate debt Interest (%) Gross Principal SLG Share Coupon (1) (SLG Share) Date Date (2) (SLG
Slide 25: Debt Composition and Corporate Debt Covenants
DEBT COMPOSITION AND CORPORATE DEBT COVENANTS Unaudited (Dollars in Thousands) Composition of Debt Debt Alternative Strategy Portfolio Debt - Total Fixed Rate Debt Consolidated $ 3,237,386 $ — $ 3,237,386 SLG Share of JV 5,466,201 587,607 6,053,808 Total Fixed Rate Debt $ 8,703,587 90.0% $ 587,607 4
Slide 26: Derivative Summary Schedule
DERIVATIVE SUMMARY SCHEDULE Unaudited (Dollars in Thousands) Consolidated Interest Rate Derivatives Ownership Notional Value Fair Value Secured Debt Interest (%) 12/31/2023 12/31/2023 Instrument (1) Strike Rate (1) Effective Date Maturity Date 100 Church Street 100.0 $370,000 $(3,044) Swap 3.89 % No
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) 12/31/2022 $ 623,280 $ 676,268 6.62% 6.47% Debt investment originations/fundings/acc
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 12/31/2023 Type Location Financing Last $ PSF Fixed/Floating Of Quarter (3) Multi-Family Preferred Equity $ 128,000 Manhattan $ 250,0
Slide 31: Selected Property Data - Manhattan Operating Properties
SELECTED PROPERTY DATA Manhattan Operating Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total December 31, 2023 September 30, 2023 Cash Rent Tenants Interest SubMarket Ownership Square Feet (1) Sq. Feet % % % % SLG Share Properties (%) Occupied (2) Leased (
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 December 31, 2023 September 30, 2023 Cash Rent Tenants Properties Interest SubMarket Ownership Square Feet (1) Sq. Feet % % % % SLG Share (%
Slide 33: Selected Property Data - Development / Redevelopment
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 December 31, 2023 September 30, 2023 Cash Rent Value, Net Tenants Properties In
Slide 34: Selected Property Data - Retail Properties
SELECTED PROPERTY DATA Retail Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Unaudited (Dollars in Thousands) Annualized Contractual Total Ownership % of Total December 31, 2023 September 30, 2023 Cash Rent Tenants Properties Interest SubMarket Ownership
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 December 31, 2023 September 30, 2023 Cash Rent Tenants Properties Interest SubMarke
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 Ownership Expiration Total Rentable Contractual SLG Share of Annualized Annualized Contractual Contractual Tenant Name Property Interest % (1) Square Feet
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 41% 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 - 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 ($'s)(2) Available Space at 09/30/23 2,760,989 Space which became available during the Quarter (3): Office 100 Park Avenue 2 32,283
Slide 39: Leasing Activity - Commenced Leasing
LEASING ACTIVITY - MANHATTAN OPERATING PROPERTIES Commenced Leasing Unaudited New Cash Rent / Prev. Escalated Rent/ Free Rent Activity Building Address # of Leases Term (Yrs) Square Feet (1) Rentable SF Rentable SF(2) Rentable SF(3) TI / Rentable SF # of Months Available Space 3,041,123 Office 100 P
Slide 40: Lease Expirations - Manhattan Operating Properties
LEASE EXPIRATIONS - MANHATTAN OPERATING PROPERTIES Office, Retail and Storage Leases Unaudited SLG Share SLG Share Annualized Contractual Rentable Square Rentable Square Annualized Contractual Annualized Contractual Cash Rent Per Square Current Weighted Number of Expiring Footage of Expiring Footage
Slide 41: Lease Expirations - Retail, Consolidated
LEASE EXPIRATIONS Retail Leases Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Wholly-Owned and Consolidated JV's Unaudited SLG Share Annualized Contractual SLG Share Annualized Contractual Annualized Contractual Cash Rent Per Square Number of Expiring Re
Slide 42: Lease Expirations - Retail, Unconsolidated
LEASE EXPIRATIONS Retail Leases Within Operating, Development / Redevelopment and Alternative Strategy Portfolio Properties Unconsolidated JV's Unaudited SLG Share Annualized Contractual SLG Share Annualized Contractual Annualized Contractual Cash Rent Per Square Number of Expiring Rentable Square F
Slide 43: Summary of Real Estate Acquisition Activity
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY Manhattan Office Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 12/31/2023 2001 - 2022 Acquisitions Jun-01 317 Madison Avenue Grand Central 10
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 - 2022 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 ($'s) at acquisition 12/31/2023 2005 - 20
Slide 46: Summary of Real Estate Disposition Activity
SUMMARY OF REAL ESTATE DISPOSITION ACTIVITY Retail, Residential, Development / Redevelopment, Land and Alternative Strategy Portfolio Unaudited (Dollars in Thousands) Interest Gross Asset Valuation Property Type of Property Submarket Sold Type of Ownership Net Rentable SF ($'s) ($'s/SF) 2011 - 2022
Slide 47: Summary of Real Estate Acquisition/Disposition Activity
SUMMARY OF REAL ESTATE ACQUISITION/DISPOSITION ACTIVITY Suburban Office Unaudited (Dollars in Thousands) Gross Asset Occupancy (%) Property Submarket Interest Acquired Type of Ownership Net Rentable SF Valuation ($'s) at acquisition 12/31/2023 2007 - 2013 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 Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Net loss attributable to SL G
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 - Operating income and Same-store NOI Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Net loss $ (160,058
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 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 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