SL Green Realty Corp. Reports Fourth Quarter 2024 EPS of $0.13 per Share; and FFO of $1.81 per Share

Financial and Operating Highlights

• Net income attributable to common stockholders of $0.13 per share for the fourth quarter of 2024 as compared to net loss of $2.45 per share for the same period in 2023.
• Funds from operations ("FFO") of $1.81 per share for the fourth quarter of 2024, inclusive of $26.0 million, or $0.36 per share, of gain on discounted debt extinguishment at 690 Madison Avenue and $7.7 million, or $0.10 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of $0.72 per share for the same period in 2023.
• FFO of $8.11 per share for the full year, inclusive of $216.1 million, or $3.08 per share, of gains on discounted debt extinguishments and $5.3 million, or $0.07 per share, of positive non-cash fair value adjustments on mark-to-market derivatives, as compared to $4.94 for the same period in 2023.
• Signed 48 Manhattan office leases covering 1,789,996 square feet in the fourth quarter of 2024 and 188 Manhattan office leases covering 3,607,924 square feet for the full year. The mark-to-market on signed Manhattan office leases was 9.0% higher for the fourth quarter and 8.5% higher for the full year than the previous fully escalated rents on the same spaces.
• Same-store cash net operating income ("NOI"), including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased 2.7% for the fourth quarter and 1.2% for the full year, excluding lease termination income, as compared to the same periods in 2023.
• Manhattan same-store office occupancy increased to 92.5% as of December 31, 2024, inclusive of leases signed but not yet commenced.

Investing Highlights

• Closed on the sale of an 11.0% interest in One Vanderbilt Avenue for a gross asset valuation of $4.7 billion. The transaction generated net proceeds to the Company of $189.5 million.
• Closed on the sale of three of the Giorgio Armani Residences at 760 Madison Avenue. The transactions generated net proceeds to the Company of $61.5 million. Sales of the remaining units, which are all under contract, are expected to close in the first quarter of 2025.
• Closed on the previously announced acquisition of 500 Park Avenue for $130.0 million. The Company financed the acquisition with a new $80.0 million mortgage. The mortgage has a term of up to 5 years, as fully extended, and bears interest at a floating rate of 2.40% over Term SOFR, which the Company has swapped to a fixed rate of 6.57% through February 2028.
• Closed on the previously announced acquisition of our partner's 45.0% interest in 10 East 53rd Street for cash consideration of $7.2 million, net of all outstanding debt obligations.
• The Company continues to close commitments for the SLG Opportunistic Debt Fund, following the $250.0 million closing with a Canadian institutional investor to anchor the Fund.
  

Financing Highlights

• The Company repaid the previous $60.9 million mortgage on 690 Madison Avenue for a net payment of $32.1 million.
• Together with our joint venture partner, closed on a modification, extension and upsize of the $360.0 million mortgage on 100 Park Avenue. The modification extended the maturity date to December 2027, as fully extended, while maintaining the interest rate at 2.25% over Term SOFR. The lenders also provided a new $70.0 million future funding facility for leasing costs at the property.
• Together with our joint venture partners, closed on a modification and extension of the $1.3 billion mortgage facility on One Madison Avenue. The modification extended the final maturity date to November 2027, while maintaining the interest rate at 3.10% over Term SOFR.
• Together with our joint venture partner, closed on a modification and extension of the $742.8 million mortgage on 1515 Broadway. The modification extended the maturity date to March 2028, as fully extended, while maintaining the interest rate at 3.93%.
• Closed on a modification and extension of a $100.0 million funded term loan component of the Company's unsecured corporate credit facility. The modification extended the maturity date to November 2026, as fully extended, at a rate of 1.80% over Term SOFR.
• Inclusive of the above, the Company completed $5.3 billion of strategic debt refinancings, modifications and extensions in 2024.

Special Servicing and Asset Management Highlights

• The Company further expanded its special servicing business with active assignments now totaling $5.0 billion and an additional $8.2 billion for which the Company has been designated as special servicer on assets that are not currently in special servicing.
  

NEW YORK, Jan. 22, 2025 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported a net income attributable to common stockholders for the quarter ended December 31, 2024 of $9.4 million, or $0.13 per share, as compared to a net loss of $155.6 million, or $2.45 per share, for the same quarter in 2023.

The Company reported net income attributable to common stockholders for the year ended December 31, 2024 of $7.1 million, or $0.08 per share, as compared to a net loss of $579.5 million, or $9.12 per share, for the same period in 2023.

The Company reported FFO for the quarter ended December 31, 2024 of $131.9 million or $1.81 per share, inclusive of $26.0 million, or $0.36 per share, of gain on discounted debt extinguishment at 690 Madison Avenue and $7.7 million, or $0.10 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of $49.7 million, or $0.72 per share, for the same period in 2023.

The Company reported FFO for the year ended December 31, 2024 of $569.8 million, or $8.11 per share, inclusive of $216.1 million, or $3.08 per share, of gains on discounted debt extinguishments at 2 Herald Square, 280 Park Avenue, 719 Seventh Avenue and 690 Madison Avenue and $5.3 million, or $0.07 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of $341.3 million, or $4.94 per share, for the same period in 2023.

All per share amounts are presented on a diluted basis.

Operating and Leasing Activity

Same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased by 1.9% for the fourth quarter of 2024, or 2.7% excluding lease termination income, as compared to the same period in 2023.

Same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased by 0.7% for the year ended December 31, 2024, and decreased 1.2% excluding lease termination income, as compared to the same period in 2023.

During the fourth quarter of 2024, the Company signed 48 office leases in its Manhattan office portfolio totaling 1,789,996 square feet. The average rent on the Manhattan office leases signed in the fourth quarter of 2024 was $74.38 per rentable square foot with an average lease term of 10.6 years and average tenant concessions of 12.5 months of free rent with a tenant improvement allowance of $116.36 per rentable square foot. Twenty-seven leases comprising 1,126,626 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 $76.24 per rentable square foot, representing a 9.0% increase over the previous fully escalated rents on the same office spaces.

During the year ended December 31, 2024, the Company signed 188 office leases in its Manhattan office portfolio totaling 3,607,924 square feet. The average rent on the Manhattan office leases signed in 2024 was $87.91 per rentable square foot with an average lease term of 10 years and average tenant concessions of 10.8 months of free rent with a tenant improvement allowance of $102.74 per rentable square foot. One hundred six leases comprising 2,260,684 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 $89.09 per rentable square foot, representing a 8.5% increase over the previous fully escalated rents on the same office spaces.

Occupancy in the Company's Manhattan same-store office portfolio increased to 92.5% as of December 31, 2024, inclusive of 946,927 square feet of leases signed but not yet commenced, as compared to 90.1% at the end of the previous quarter.

Significant leasing activity in the fourth quarter and to date in January includes:

• Early renewal and expansion with Bloomberg, L.P. for 924,876 square feet at 919 Third Avenue;
• New lease with Alvarez & Marsal Holdings, LLC for 220,221 square feet at 100 Park Avenue;
• Early renewal and expansion with The Travelers Indemnity Company for 122,788 square feet at 485 Lexington Avenue;
• Expansion lease with IBM for 92,663 square feet at One Madison Avenue;
• Expansion lease with Verition Group NY, Inc. for 72,515 square feet at 245 Park Avenue;
• Early renewal and expansion with the Brazilian Government for 66,331 square feet at 220 East 42nd Street;
• New lease with Hartree Partners, LP for 54,250 square feet at 1185 Avenue of the Americas;
• New lease with New York State Office of General Services for 51,284 square feet at 919 Third Avenue; and
  
• Expansion lease with Ares Management LLC for 38,074 square feet at 245 Park Avenue.

Investment Activity

In November, the Company closed on the sale of an 11.0% interest in One Vanderbilt Avenue for a gross asset valuation of $4.7 billion. The Company now holds a 60.0% interest in the property. The transaction generated net proceeds to the Company of $189.5 million.

In December, the Company closed on three of the Giorgio Armani Residences at 760 Madison Avenue. The transactions generated net proceeds to the Company of $61.5 million. Sales of the remaining units, which are all under contract, are expected to close in the first quarter of 2025.

In January, the Company closed on the previously announced acquisition of 500 Park Avenue for $130.0 million. The Company financed the acquisition with a new $80.0 million mortgage. The mortgage has a term of up to 5 years, as fully extended, and bears interest at a floating rate of 2.40% over Term SOFR, which the Company has swapped to a fixed rate of 6.57% through February 2028.

In December, the Company closed on the previously announced acquisition of our partner's 45.0% interest in 10 East 53rd Street for cash consideration of $7.2 million, net of those debt obligations in place prior to the loan modification which closed in the first quarter of 2024.

The Company continues to close commitments for the SLG Opportunistic Debt Fund, following the $250.0 million closing with a Canadian institutional investor to anchor the Fund.

Debt and Preferred Equity Investment Activity

The carrying value of the Company’s debt and preferred equity portfolio was $518.4 million at December 31, 2024, including $214.7 million representing the Company's share of the preferred equity investment in 625 Madison Avenue that is accounted for as an unconsolidated joint venture. The portfolio had a weighted average current yield of 7.3% as of December 31, 2024, or 8.4% excluding the effect of a $53.7 million investment that is on non-accrual.

In December, the Company closed on a one-year extension of an existing $50.0 million investment that was previously in maturity default.

During the fourth quarter of 2024, the Company invested $15.5 million in real estate debt and commercial mortgage-backed securities ("CMBS").

Financing Activity

In December, the Company repaid the previous $60.9 million mortgage on 690 Madison Avenue for a net payment of $32.1 million.

In December, together with our joint venture partner, closed on a modification, extension and upsize of the $360.0 million mortgage on 100 Park Avenue. The modification extended the maturity date to December 2027, as fully extended, while maintaining the interest rate at 2.25% over Term SOFR. In addition, the lenders provided a new $70.0 million future funding facility for leasing costs at the property. The Company also closed on a modification to the joint venture, which provides the Company with a purchase option to acquire the partner's 49.9% interest in the property.

In November, together with our joint venture partners, closed on a modification and extension of the $1.3 billion mortgage facility on One Madison Avenue. The modification extended the final maturity date to November 2027, while maintaining the interest rate at 3.10% over Term SOFR.

In November, together with our joint venture partner, closed on a modification and extension of the $742.8 million mortgage on 1515 Broadway. The modification extended the maturity date to March 2028, as fully extended, while maintaining the interest rate at 3.93%.

In November, the Company closed on a modification and extension of a $100.0 million funded term loan component of its unsecured corporate credit facility. The modification extended the maturity date to November 2026, as fully extended, at a rate of 1.80% over Term SOFR.

Special Servicing and Asset Management Activity

The Company further expanded its special servicing business with active assignments now totaling $5.0 billion and an additional $8.2 billion for which the Company has been designated as special servicer on assets that are not currently in special servicing. Since inception, the Company's cumulative special servicing and asset management appointments total $21.5 billion.

Dividends

In the fourth quarter of 2024, the Company declared:

• Two monthly ordinary dividends on its outstanding common stock of $0.25 per share, which were paid in cash on November 15 and December 16, 2024;
• One monthly ordinary dividend on its outstanding common stock of $0.2575 per share, which was paid on January 15, 2025, and reflects an increase in the annualized ordinary dividend to $3.09 per share of common stock; and
• A quarterly dividend on its outstanding 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share for the period October 15, 2024 through and including January 14, 2025, which was paid in cash on January 15, 2025, and 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, Chairman and Chief Executive Officer, will host a conference call and audio webcast on Thursday, January 23, 2025, at 2:00 p.m. ET to discuss the financial results.

Supplemental data will be available prior to the quarterly conference call in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under “Financial Reports.”

The live conference call will be webcast in listen-only mode and a replay will be available in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under “Presentations & Webcasts.”

Research analysts who wish to participate in the conference call must first register at https://register.vevent.com/register/BI98713c5cf3b747a4b8c7b7969ca7daf4.

Company Profile

SL Green Realty Corp., Manhattan'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 December 31, 2024, SL Green held interests in 54 buildings totaling 30.6 million square feet. This included ownership interests in 27.0 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.

To obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at investor.relations@slgreen.com.

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 Statements

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, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, 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 include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

PRESS CONTACT
slgreen@berlinrosen.com 

SL GREEN REALTY CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share data)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
Revenues:		2024				2023				2024				2023
Rental revenue, net	$	139,613			$	131,927			$	542,995			$	603,694
Escalation and reimbursement revenues		17,317				19,430				63,004				79,641
SUMMIT Operator revenue		38,571				35,240				133,214				118,260
Investment income		5,415				6,856				24,353				34,705
Interest income from real estate loans held by consolidated securitization vehicles		14,209				—				18,980				—
Other income		30,754				18,271				103,726				77,410
Total revenues		245,879				211,724				886,272				913,710
Expenses:
Operating expenses, including related party expenses of $5 and $7 in 2024 and $2 and $5 in 2023		50,150				48,090				189,598				196,696
Real estate taxes		33,692				31,294				128,187				143,757
Operating lease rent		5,287				7,083				24,423				27,292
SUMMIT Operator expenses		28,792				24,887				111,739				101,211
Interest expense, net of interest income		38,153				27,400				147,220				137,114
Amortization of deferred financing costs		1,734				1,510				6,619				7,837
SUMMIT Operator tax expense		1,949				2,320				730				9,201
Interest expense on senior obligations of consolidated securitization vehicles		11,304				—				14,634				—
Depreciation and amortization		53,436				49,050				207,443				247,810
Loan loss and other investment reserves, net of recoveries		—				—				—				6,890
Transaction related costs		138				16				401				1,099
Marketing, general and administrative		22,827				42,257				85,187				111,389
Total expenses		247,462				233,907				916,181				990,296
Equity in net loss from unconsolidated joint ventures		(279,752	)			(32,039	)			(179,695	)			(76,509	)
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate		189,138				(13,289	)			208,144				(13,368	)
Purchase price and other fair value adjustments		125,287				(10,273	)			88,966				(17,260	)
(Loss) Gain on sale of real estate, net		(1,705	)			(4,557	)			3,025				(32,370	)
Depreciable real estate reserves		(38,232	)			(76,847	)			(104,071	)			(382,374	)
Gain (Loss) on early extinguishment of debt		25,985				(870	)			43,762				(870	)
Net income (loss)		19,138				(160,058	)			30,222				(599,337	)
Net income (loss) attributable to noncontrolling interests:
Noncontrolling interests in the Operating Partnership		(663	)			9,972				(497	)			37,465
Noncontrolling interests in other partnerships		(3,222	)			109				928				4,568
Preferred units distributions		(2,158	)			(1,903	)			(8,643	)			(7,255	)
Net income (loss) attributable to SL Green		13,095				(151,880	)			22,010				(564,559	)
Perpetual preferred stock dividends		(3,737	)			(3,737	)			(14,950	)			(14,950	)
Net income (loss) attributable to SL Green common stockholders	$	9,358			$	(155,617	)		$	7,060			$	(579,509	)
Earnings Per Share (EPS)
Basic earnings (loss) per share	$	0.13			$	(2.45	)		$	0.08			$	(9.12	)
Diluted earnings (loss) per share	$	0.13			$	(2.45	)		$	0.08			$	(9.12	)
Funds From Operations (FFO)
Basic FFO per share	$	1.87			$	0.72			$	8.29			$	4.98
Diluted FFO per share	$	1.81			$	0.72			$	8.11			$	4.94
Basic ownership interest
Weighted average REIT common shares for net income per share		67,167				63,885				65,062				63,809
Weighted average partnership units held by noncontrolling interests		3,487				4,129				3,674				4,163
Basic weighted average shares and units outstanding		70,654				68,014				68,736				67,972
Diluted ownership interest
Weighted average REIT common share and common share equivalents		69,428				65,171				66,594				64,869
Weighted average partnership units held by noncontrolling interests		3,487				4,129				3,674				4,163
Diluted weighted average shares and units outstanding		72,915				69,300				70,268				69,032

SL GREEN REALTY CORP. CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except per share data)
	December 31,				December 31,
		2024				2023
Assets
Commercial real estate properties, at cost:
Land and land interests	$	1,357,041			$	1,092,671
Building and improvements		3,862,224				3,655,624
Building leasehold and improvements		1,388,476				1,354,569
		6,607,741				6,102,864
Less: accumulated depreciation		(2,126,081	)			(1,968,004	)
		4,481,660				4,134,860
Cash and cash equivalents		184,294				221,823
Restricted cash		147,344				113,696
Investment in marketable securities		22,812				9,591
Tenant and other receivables		44,055				33,270
Related party receivables		26,865				12,168
Deferred rents receivable		266,428				264,653
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,618 and $1,630 in 2024 and 2023, respectively, and allowances of $13,520 and $13,520 in 2024 and 2023, respectively		303,726				346,745
Investments in unconsolidated joint ventures		2,690,138				2,983,313
Deferred costs, net		117,132				111,463
Right-of-use assets - operating leases		865,639				885,929
Real estate loans held by consolidated securitization vehicles (includes $584,134 and $— at fair value as of December 31, 2024 and December 31, 2023, respectively)		709,095				—
Other assets		598,752				413,670
Total assets	$	10,457,940			$	9,531,181
Liabilities
Mortgages and other loans payable	$	1,951,024			$	1,497,386
Revolving credit facility		320,000				560,000
Unsecured term loan		1,150,000				1,250,000
Unsecured notes		100,000				100,000
Deferred financing costs, net		(14,242	)			(16,639	)
Total debt, net of deferred financing costs		3,506,782				3,390,747
Accrued interest payable		2,727				17,930
Accounts payable and accrued expenses		122,674				153,164
Deferred revenue		164,887				134,053
Lease liability - financing leases		106,853				105,531
Lease liability - operating leases		810,989				827,692
Dividend and distributions payable		21,816				20,280
Security deposits		60,331				49,906
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities		100,000				100,000
Senior obligations of consolidated securitization vehicles (includes $567,487 and $— at fair value as of December 31, 2024 and December 31, 2023, respectively)		590,131				—
Other liabilities (includes $251,096 and $— at fair value as of December 31, 2024 and December 31, 2023, respectively)		415,794				471,401
Total liabilities		5,902,984				5,270,704
Commitments and contingencies
Noncontrolling interests in Operating Partnership		288,941				238,051
Preferred units and redeemable equity		196,064				166,501
Equity
SL Green stockholders' equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 and 9,200 issued and outstanding at both December 31, 2024 and December 31, 2023		221,932				221,932
Common stock, $0.01 par value 160,000 shares authorized, 71,097 and 65,786 issued and outstanding (including — and 1,060 held in Treasury) at December 31, 2024 and December 31, 2023, respectively		711				660
Additional paid-in capital		4,159,562				3,826,452
Treasury stock at cost		—				(128,655	)
Accumulated other comprehensive income		18,196				17,477
Retained deficit		(449,101	)			(151,551	)
Total SL Green Realty Corp. stockholders’ equity		3,951,300				3,786,315
Noncontrolling interests in other partnerships		118,651				69,610
Total equity		4,069,951				3,855,925
Total liabilities and equity	$	10,457,940			$	9,531,181

SL GREEN REALTY CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited and in thousands, except per share data)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
Funds From Operations (FFO) Reconciliation:		2024				2023				2024				2023
Net income (loss) attributable to SL Green common stockholders	$	9,358			$	(155,617	)		$	7,060			$	(579,509	)
Add:
Depreciation and amortization		53,436				49,050				207,443				247,810
Joint venture depreciation and noncontrolling interest adjustments		69,636				73,062				287,671				284,284
Net income (loss) attributable to noncontrolling interests		3,885				(10,081	)			(431	)			(42,033	)
Less:
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate		189,138				(13,289	)			208,144				(13,368	)
Purchase price and other fair value adjustments		117,195				—				83,430				(6,813	)
(Loss) Gain on sale of real estate, net		(1,705	)			(4,557	)			3,025				(32,370	)
Depreciable real estate reserves		(38,232	)			(76,847	)			(104,071	)			(382,374	)
Depreciable real estate reserves in unconsolidated joint venture		(263,190	)			—				(263,190	)			—
Depreciation on non-rental real estate assets		1,226				1,414				4,583				4,136
FFO attributable to SL Green common stockholders and unit holders	$	131,883			$	49,693			$	569,822			$	341,341

SL GREEN REALTY CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited and in thousands, except per share data)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
Operating income and Same-store NOI Reconciliation:		2024				2023				2024				2023
Net income (loss)	$	19,138			$	(160,058	)		$	30,222			$	(599,337	)
Depreciable real estate reserves		38,232				76,847				104,071				382,374
Loss (Gain) on sale of real estate, net		1,705				4,557				(3,025	)			32,370
Purchase price and other fair value adjustments		(125,287	)			10,273				(88,966	)			17,260
Equity in net (gain) loss on sale of interest in unconsolidated joint venture/real estate		(189,138	)			13,289				(208,144	)			13,368
Depreciation and amortization		53,436				49,050				207,443				247,810
SUMMIT Operator tax expense		1,949				2,320				730				9,201
Amortization of deferred financing costs		1,734				1,510				6,619				7,837
Interest expense, net of interest income		38,153				27,400				147,220				137,114
Interest expense on senior obligations of consolidated securitization vehicles		11,304				—				14,634				—
Operating (loss) income		(148,774	)			25,188				210,804				247,997
Equity in net loss from unconsolidated joint ventures		279,752				32,039				179,695				76,509
Marketing, general and administrative expense		22,827				42,257				85,187				111,389
Transaction related costs		138				16				401				1,099
Loan loss and other investment reserves, net of recoveries		—				—				—				6,890
SUMMIT Operator expenses		28,792				24,887				111,739				101,211
(Gain) Loss on early extinguishment of debt		(25,985	)			870				(43,762	)			870
Investment income		(5,415	)			(6,856	)			(24,353	)			(34,705	)
Interest income from real estate loans held by consolidated securitization vehicles		(14,209	)			—				(18,980	)			—
SUMMIT Operator revenue		(38,571	)			(35,240	)			(133,214	)			(118,260	)
Non-building revenue		(20,704	)			(10,935	)			(68,881	)			(44,568	)
Net operating income (NOI)		77,851				72,226				298,636				348,432
Equity in net loss from unconsolidated joint ventures		(279,752	)			(32,039	)			(179,695	)			(76,509	)
SLG share of unconsolidated JV depreciable real estate reserves		263,190				—				263,190				—
SLG share of unconsolidated JV depreciation and amortization		67,046				69,588				275,098				266,340
SLG share of unconsolidated JV amortization of deferred financing costs		3,459				2,876				11,334				12,005
SLG share of unconsolidated JV interest expense, net of interest income		67,099				73,012				276,852				272,217
SLG share of unconsolidated JV gain on early extinguishment of debt		—				—				(172,369	)			—
SLG share of unconsolidated JV investment income		(5,048	)			(320	)			(11,513	)			(1,271	)
SLG share of unconsolidated JV non-building revenue		147				106				(3,051	)			(14,336	)
NOI including SLG share of unconsolidated JVs		193,992				185,449				758,482				806,878
NOI from other properties/affiliates		(38,211	)			(26,870	)			(140,923	)			(163,399	)
Same-Store NOI		155,781				158,579				617,559				643,479
Straight-line and free rent		810				(1,185	)			323				(11,989	)
Amortization of acquired above and below-market leases, net		830				88				2,578				560
Operating lease straight-line adjustment		204				204				815				815
SLG share of unconsolidated JV straight-line and free rent		(5,024	)			(2,265	)			(9,687	)			(17,481	)
SLG share of unconsolidated JV amortization of acquired above and below-market leases, net		(4,409	)			(4,407	)			(17,635	)			(17,161	)
SLG share of unconsolidated JV operating lease straight-line adjustment		—				—				—				—
Same-store cash NOI	$	148,192			$	151,014			$	593,953			$	598,223
Lease termination income		(2,737	)			(1,102	)			(6,338	)			(4,054	)
SLG share of unconsolidated JV lease termination income		—				(369	)			(3,055	)			(2,251	)
Same-store cash NOI excluding lease termination income	$	145,455			$	149,543			$	584,560			$	591,918

SL GREEN REALTY CORP.
NON-GAAP FINANCIAL MEASURES - DISCLOSURES

Funds from Operations (FFO)

FFO is a widely recognized non-GAAP financial measure of REIT performance. The Company computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended in December 2018, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of properties, and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based compensation for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and real estate related impairment charges, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, and interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including the Company's ability to make cash distributions.

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 line operating lease rent, non-cash deferred compensation, and pro-rata adjustments for these items from the Company's unconsolidated JVs, less straight line rental income, free rent net of amortization, second cycle tenant improvement and leasing costs, and recurring capital expenditures.

FAD is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure with respect to liquidity. Because all companies do not calculate FAD the same way, the presentation of FAD may not be comparable to similarly titled measures of other companies. FAD does not represent cash flow from operating, investing and finance activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)

EBITDAre is a non-GAAP financial measure. The Company computes EBITDAre in accordance with standards established by NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures.

The Company presents EBITDAre because the Company believes that EBITDAre, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt. EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

Net Operating Income (NOI) and Cash NOI

NOI is a non-GAAP financial measure that is calculated as operating income before transaction related costs, gains/losses on early extinguishment of debt, marketing general and administrative expenses and non-real estate revenue. Cash NOI is also a non-GAAP financial measure that is calculated by subtracting free rent (net of amortization), straight-line rent, and the amortization of acquired above and below-market leases from NOI, while adding operating lease straight-line adjustment and the allowance for straight-line tenant credit loss.

The Company presents NOI and Cash NOI because the Company believes that these measures, when taken together with the corresponding GAAP financial measures and reconciliations, provide investors with meaningful information regarding the operating performance of properties. When operating performance is compared across multiple periods, the investor is provided with information not immediately apparent from net income that is determined in accordance with GAAP. NOI and Cash NOI provide information on trends in the revenue generated and expenses incurred in operating the Company's properties, unaffected by the cost of leverage, straight-line adjustments, depreciation, amortization, and other net income components. The Company uses these metrics internally as performance measures. None of these measures is an alternative to net income (determined in accordance with GAAP) and same-store performance should not be considered an alternative to GAAP net income performance.

Coverage Ratios

The Company presents fixed charge and debt service coverage ratios to provide a measure of the Company’s financial flexibility to service current debt amortization, interest expense and operating lease rent from current cash net operating income. These coverage ratios represent a common measure of the Company’s ability to service fixed cash payments; however, these ratios are not used as an alternative to cash flow from operating, financing and investing activities (determined in accordance with GAAP).

SLG-EARN