SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported a
net loss attributable to common stockholders for the quarter ended
June 30, 2024 of $2.2 million and $0.04 per share as compared
to a net loss of $360.2 million and $5.63 per share for the same
quarter in 2023.
The Company also reported net income
attributable to common stockholders for the six months ended
June 30, 2024 of $11.0 million and $0.16 per share as compared
to a net loss of $399.9 million and $6.25 per share for the same
period in 2023.
The Company reported FFO for the quarter ended
June 30, 2024 of $143.9 million and $2.05 per share, or $94.1
million and $1.34 per share, excluding $48.5 million, or $0.69 per
share, of gains on discounted debt extinguishments at 280 Park
Avenue and 719 Seventh Avenue and $1.4 million, or $0.02 per share,
of non-cash fair value adjustments on mark-to-market derivatives.
The Company reported FFO of $98.4 million and $1.43 per share for
the same period in 2023, which was net of $0.4 million, or $0.01
per share, of non-cash fair value adjustments for derivatives.
The Company also reported FFO for the six months
ended June 30, 2024 of $359.4 million and $5.12 per share, or
$162.7 million and $2.32 per share, excluding $190.1 million,
or $2.71 per share, of gains on discounted debt extinguishments at
2 Herald Square, 280 Park Avenue, and 719 Seventh Avenue and $6.5
million, or $0.09 per share, of non-cash fair value adjustments on
mark-to-market derivatives. The Company reported FFO of $203.9
million and $2.96 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 0.9% for the second quarter of 2024, or 1.3% 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,
increased by 0.1% for the six months ended June 30, 2024, and
decreased 1.3% excluding lease termination income, as compared to
the same period in 2023.
During the second quarter of 2024, the Company
signed 38 office leases in its Manhattan office portfolio totaling
420,513 square feet. The average rent on the Manhattan office
leases signed in the second quarter of 2024, excluding leases
signed at One Vanderbilt and One Madison, was $100.66 per rentable
square foot with an average lease term of 8.8 years and average
tenant concessions of 7.0 months of free rent with a tenant
improvement allowance of $77.26 per rentable square foot.
Twenty-one leases comprising 266,133 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 $112.76 per rentable square foot, representing a
15.5% increase over the previous fully escalated rents on the same
office spaces.
During the six months ended June 30, 2024,
the Company signed 98 office leases in its Manhattan office
portfolio totaling 1,054,173 square feet. The average rent on the
Manhattan office leases signed in 2024, excluding leases signed at
One Vanderbilt and One Madison, was $85.54 per rentable square foot
with an average lease term of 7.5 years and average tenant
concessions of 6.9 months of free rent with a tenant improvement
allowance of $63.46 per rentable square foot. Fifty-three leases
comprising 560,716 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
$94.45 per rentable square foot, representing a 5.4% increase over
the previous fully escalated rents on the same office spaces.
Occupancy in the Company's Manhattan same-store
office portfolio increased to 89.6% as of June 30, 2024,
inclusive of 436,291 square feet of leases signed but not yet
commenced, as compared to 89.2% at the end of the previous quarter.
The Company expects to increase Manhattan same-store office
occupancy, inclusive of leases signed but not yet commenced, to
more than 91.5% by December 31, 2024.
Significant leasing activity in the second
quarter and to date in July includes:
- Renewal and
expansion with Ares Management for 307,336 square feet at 245 Park
Avenue;
- New lease with
Elliot Management Corporation for 149,437 square feet at 280 Park
Avenue;
- New lease with
Tradeweb Markets LLC for 75,825 square feet at 245 Park
Avenue;
- Three new leases
for a total of 37,856 square feet at 220 East 42nd Street;
- Early renewal
with Brightwood Capital Advisors for 17,320 square feet at 810
Seventh Avenue;
- New lease with
Bluerock Real Estate LLC for 14,085 square feet at 919 Third
Avenue; and
- New lease with
Willow Tree Capital Partners for 10,820 square feet at 450 Park
Avenue.
Investment Activity
Contracted for sale of 100% of the Giorgio
Armani Residences at 760 Madison Avenue for gross consideration
totaling $168.2 million. All sales are expected to close in the
fourth quarter of 2024.
In July, the Company closed on the previously
announced sale of the Palisades Premier Conference Center for
$26.3 million plus certain fees payable to the Company. The
Company took control of the property in July 2023 in partial
satisfaction of a legal judgement. The transaction generated net
proceeds to the Company of $19.8 million.
In June, the Company closed on the previously
announced sale of 719 Seventh Avenue in Times Square for
$30.5 million plus certain fees payable to the Company. The
transaction generated net proceeds to the Company of
$3.6 million after repayment of the mortgage loan. In
connection with the closing of the sale, the Company repaid the
existing $50.0 million mortgage for $32.0 million.
In May, together with our joint venture partner,
the Company closed on the previously announced sale of the fee
ownership interest in 625 Madison Avenue for a gross sales price of
$634.6 million plus certain fees payable to the Company. In
connection with the sale, the Company, together with its joint
venture partner, originated a $235.5 million preferred equity
investment in the property. The transaction generated net proceeds
to the Company of $199.3 million.
Debt and Preferred Equity Investment
Activity
The carrying value of the Company’s debt and
preferred equity portfolio was $495.7 million at June 30,
2024, including $205.2 million representing the Company's
share of the preferred equity investment in 625 Madison Avenue that
was originated in the second quarter and is accounted for as an
unconsolidated joint venture. The portfolio had a weighted average
current yield of 7.5%, or 8.8% as of June 30, 2024, excluding
the effect of a $50.0 million investment that is on
non-accrual. During the second quarter, no investments were sold or
repaid, and the Company did not acquire any new investments.
Financing Activity
In April, together with our joint venture
partner, closed on a modification and extension of the
$1.075 billion securitized mortgage on 280 Park Avenue. The
modification extended the maturity date to September 2026, with the
partnership's option to extend to a fully extended maturity date of
September 2028. The interest rate was maintained at 1.78% over Term
SOFR, which the partnership subsequently fixed at 5.84% through the
fully extended maturity date.
The partnership separately modified and extended
the $125.0 million mezzanine loan on 280 Park Avenue and
subsequently repaid the loan for $62.5 million.
Special Servicing and Asset Management
Activity
The Company continues to grow its special
servicing and asset management business, with $3.0 billion of
active assignments. In addition, we have been designated as special
servicer of $6.4 billion of assets that are not currently in
special servicing. Since inception, the Company's cumulative
special servicing and asset management appointments total $17.4
billion.
Earnings Guidance
The Company is increasing its 2024 earnings
guidance range for the year ending December 31, 2024 to FFO per
share of $7.45 to $7.75, to reflect the outperformance of the real
estate portfolio and SUMMIT One Vanderbilt as well as incremental
fee generation, while maintaining its 2024 net income guidance
range of $2.73 to $3.03.
Dividends
In the second quarter of 2024, the Company
declared:
- Three monthly
ordinary dividends on its outstanding common stock of $0.25 per
share, which were paid in cash on May 15, June 17, and July 15,
2024, equating to an annualized dividend of $3.00 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 April 15, 2024
through and including July 14, 2024, which was paid in cash on July
15, 2024 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, July 18, 2024,
at 2:00 pm 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/BIa4aa7c3f3c3b4914a98f1cb01261b5f1.
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
June 30, 2024, SL Green held interests in 55 buildings
totaling 31.8 million square feet. This included ownership
interests in 28.1 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
MeasuresDuring 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, 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.
|
SL GREEN REALTY CORP.CONSOLIDATED
STATEMENTS OF OPERATIONS(unaudited and in thousands,
except per share data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
Revenues: |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
Rental revenue, net |
$ |
135,563 |
|
|
$ |
165,651 |
|
|
$ |
263,766 |
|
|
$ |
340,243 |
|
Escalation and reimbursement
revenues |
|
15,069 |
|
|
|
20,294 |
|
|
|
28,370 |
|
|
|
40,744 |
|
SUMMIT Operator revenue |
|
32,602 |
|
|
|
28,180 |
|
|
|
58,206 |
|
|
|
47,951 |
|
Investment income |
|
6,191 |
|
|
|
9,103 |
|
|
|
13,594 |
|
|
|
18,160 |
|
Other income |
|
33,395 |
|
|
|
22,808 |
|
|
|
46,766 |
|
|
|
44,702 |
|
Total revenues |
|
222,820 |
|
|
|
246,036 |
|
|
|
410,702 |
|
|
|
491,800 |
|
Expenses: |
|
|
|
|
|
|
|
Operating expenses, including
related party expenses of $0 and $0 in 2024 and $0 and $1 in
2023 |
|
46,333 |
|
|
|
46,957 |
|
|
|
89,941 |
|
|
|
99,021 |
|
Real estate taxes |
|
32,058 |
|
|
|
39,885 |
|
|
|
63,664 |
|
|
|
81,268 |
|
Operating lease rent |
|
6,368 |
|
|
|
6,655 |
|
|
|
12,773 |
|
|
|
12,956 |
|
SUMMIT Operator expenses |
|
23,188 |
|
|
|
22,836 |
|
|
|
45,046 |
|
|
|
43,524 |
|
Interest expense, net of
interest income |
|
35,803 |
|
|
|
40,621 |
|
|
|
66,976 |
|
|
|
82,274 |
|
Amortization of deferred
financing costs |
|
1,677 |
|
|
|
2,154 |
|
|
|
3,216 |
|
|
|
4,175 |
|
SUMMIT Operator tax
expense |
|
1,855 |
|
|
|
1,879 |
|
|
|
560 |
|
|
|
3,146 |
|
Depreciation and
amortization |
|
52,247 |
|
|
|
69,335 |
|
|
|
100,831 |
|
|
|
148,117 |
|
Loan loss and other investment
reserves, net of recoveries |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,890 |
|
Transaction related costs |
|
76 |
|
|
|
33 |
|
|
|
92 |
|
|
|
917 |
|
Marketing, general and
administrative |
|
20,032 |
|
|
|
22,974 |
|
|
|
41,345 |
|
|
|
46,259 |
|
Total expenses |
|
219,637 |
|
|
|
253,329 |
|
|
|
424,444 |
|
|
|
528,547 |
|
|
|
|
|
|
|
|
|
Equity in net income (loss)
from unconsolidated joint ventures |
|
4,325 |
|
|
|
(21,932 |
) |
|
|
115,485 |
|
|
|
(29,344 |
) |
Equity in net (loss) gain on
sale of interest in unconsolidated joint venture/real estate |
|
(8,129 |
) |
|
|
— |
|
|
|
18,635 |
|
|
|
(79 |
) |
Purchase price and other fair
value adjustments |
|
1,265 |
|
|
|
(17,409 |
) |
|
|
(49,227 |
) |
|
|
(17,170 |
) |
Loss on sale of real estate,
net |
|
(2,741 |
) |
|
|
(26,678 |
) |
|
|
(2,741 |
) |
|
|
(28,329 |
) |
Depreciable real estate
reserves |
|
(13,721 |
) |
|
|
(305,916 |
) |
|
|
(65,839 |
) |
|
|
(305,916 |
) |
Gain on early extinguishment
of debt |
|
17,777 |
|
|
|
— |
|
|
|
17,777 |
|
|
|
— |
|
Net (loss) income |
|
1,959 |
|
|
|
(379,228 |
) |
|
|
20,348 |
|
|
|
(417,585 |
) |
Net loss attributable to
noncontrolling interests: |
|
|
|
|
|
|
|
Noncontrolling interests in
the Operating Partnership |
|
153 |
|
|
|
23,582 |
|
|
|
(748 |
) |
|
|
25,919 |
|
Noncontrolling interests in
other partnerships |
|
1,871 |
|
|
|
1,040 |
|
|
|
3,165 |
|
|
|
2,665 |
|
Preferred units
distributions |
|
(2,406 |
) |
|
|
(1,851 |
) |
|
|
(4,309 |
) |
|
|
(3,449 |
) |
Net (loss) income attributable
to SL Green |
|
1,577 |
|
|
|
(356,457 |
) |
|
|
18,456 |
|
|
|
(392,450 |
) |
Perpetual preferred stock
dividends |
|
(3,737 |
) |
|
|
(3,737 |
) |
|
|
(7,475 |
) |
|
|
(7,475 |
) |
Net (loss) income attributable
to SL Green common stockholders |
$ |
(2,160 |
) |
|
$ |
(360,194 |
) |
|
$ |
10,981 |
|
|
$ |
(399,925 |
) |
Earnings Per Share
(EPS) |
|
|
|
|
|
|
|
Basic (loss) earnings per
share |
$ |
(0.04 |
) |
|
$ |
(5.63 |
) |
|
$ |
0.16 |
|
|
$ |
(6.25 |
) |
Diluted (loss) earnings per
share |
$ |
(0.04 |
) |
|
$ |
(5.63 |
) |
|
$ |
0.16 |
|
|
$ |
(6.25 |
) |
|
|
|
|
|
|
|
|
Funds From Operations
(FFO) |
|
|
|
|
|
|
|
Basic FFO per share |
$ |
2.08 |
|
|
$ |
1.43 |
|
|
$ |
5.19 |
|
|
$ |
2.98 |
|
Diluted FFO per share |
$ |
2.05 |
|
|
$ |
1.43 |
|
|
$ |
5.12 |
|
|
$ |
2.96 |
|
|
|
|
|
|
|
|
|
Basic ownership
interest |
|
|
|
|
|
|
|
Weighted average REIT common
shares for net income per share |
|
64,353 |
|
|
|
64,102 |
|
|
|
64,340 |
|
|
|
64,091 |
|
Weighted average partnership
units held by noncontrolling interests |
|
4,387 |
|
|
|
4,239 |
|
|
|
4,413 |
|
|
|
4,172 |
|
Basic weighted average
shares and units outstanding |
|
68,740 |
|
|
|
68,341 |
|
|
|
68,753 |
|
|
|
68,263 |
|
|
|
|
|
|
|
|
|
Diluted ownership
interest |
|
|
|
|
|
|
|
Weighted average REIT common
share and common share equivalents |
|
65,793 |
|
|
|
64,694 |
|
|
|
65,724 |
|
|
|
64,684 |
|
Weighted average partnership
units held by noncontrolling interests |
|
4,387 |
|
|
|
4,239 |
|
|
|
4,413 |
|
|
|
4,172 |
|
Diluted weighted
average shares and units outstanding |
|
70,180 |
|
|
|
68,933 |
|
|
|
70,137 |
|
|
|
68,856 |
|
|
|
|
|
|
|
|
|
|
SL GREEN REALTY CORP.CONSOLIDATED BALANCE
SHEETS(in thousands, except per share data) |
|
|
June 30, |
|
December 31, |
|
2024 |
|
2023 |
Assets |
(Unaudited) |
|
|
Commercial real estate
properties, at cost: |
|
|
|
Land and land interests |
$ |
1,134,432 |
|
|
$ |
1,092,671 |
|
Building and improvements |
|
3,743,316 |
|
|
|
3,655,624 |
|
Building leasehold and
improvements |
|
1,365,423 |
|
|
|
1,354,569 |
|
|
|
6,243,171 |
|
|
|
6,102,864 |
|
Less: accumulated
depreciation |
|
(2,041,102 |
) |
|
|
(1,968,004 |
) |
|
|
4,202,069 |
|
|
|
4,134,860 |
|
Assets held for sale |
|
21,615 |
|
|
|
— |
|
Cash and cash equivalents |
|
199,501 |
|
|
|
221,823 |
|
Restricted cash |
|
116,310 |
|
|
|
113,696 |
|
Investment in marketable
securities |
|
16,593 |
|
|
|
9,591 |
|
Tenant and other
receivables |
|
41,202 |
|
|
|
33,270 |
|
Related party receivables |
|
8,127 |
|
|
|
12,168 |
|
Deferred rents receivable |
|
266,596 |
|
|
|
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 |
|
290,487 |
|
|
|
346,745 |
|
Investments in unconsolidated
joint ventures |
|
2,895,399 |
|
|
|
2,983,313 |
|
Deferred costs, net |
|
107,163 |
|
|
|
111,463 |
|
Right-of-use assets -
operating leases |
|
875,878 |
|
|
|
885,929 |
|
Other assets |
|
507,712 |
|
|
|
413,670 |
|
Total assets |
$ |
9,548,652 |
|
|
$ |
9,531,181 |
|
|
|
|
|
Liabilities |
|
|
|
Mortgages and other loans
payable |
$ |
1,649,892 |
|
|
$ |
1,497,386 |
|
Revolving credit facility |
|
540,000 |
|
|
|
560,000 |
|
Unsecured term loan |
|
1,250,000 |
|
|
|
1,250,000 |
|
Unsecured notes |
|
100,000 |
|
|
|
100,000 |
|
Deferred financing costs,
net |
|
(14,304 |
) |
|
|
(16,639 |
) |
Total debt, net of deferred
financing costs |
|
3,525,588 |
|
|
|
3,390,747 |
|
Accrued interest payable |
|
20,083 |
|
|
|
17,930 |
|
Accounts payable and accrued
expenses |
|
121,050 |
|
|
|
153,164 |
|
Deferred revenue |
|
153,660 |
|
|
|
134,053 |
|
Lease liability - financing
leases |
|
106,187 |
|
|
|
105,531 |
|
Lease liability - operating
leases |
|
819,439 |
|
|
|
827,692 |
|
Dividend and distributions
payable |
|
20,088 |
|
|
|
20,280 |
|
Security deposits |
|
58,002 |
|
|
|
49,906 |
|
Liabilities related to assets
held for sale |
|
10,424 |
|
|
|
— |
|
Junior subordinate deferrable
interest debentures held by trusts that issued trust preferred
securities |
|
100,000 |
|
|
|
100,000 |
|
Other liabilities |
|
423,816 |
|
|
|
471,401 |
|
Total liabilities |
|
5,358,337 |
|
|
|
5,270,704 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
Noncontrolling interests in
Operating Partnership |
|
265,823 |
|
|
|
238,051 |
|
Preferred units |
|
166,731 |
|
|
|
166,501 |
|
|
|
|
|
Equity |
|
|
|
SL Green stockholders'
equity: |
|
|
|
Series I Preferred Stock, $0.01 par value, $25.00 liquidation
preference, 9,200 issued and outstanding at both June 30, 2024 and
December 31, 2023 |
|
221,932 |
|
|
|
221,932 |
|
Common stock, $0.01 par value
160,000 shares authorized, 65,874 and 65,786 issued and outstanding
(including 1,060 and 1,060 held in Treasury) at June 30, 2024 and
December 31, 2023, respectively |
|
660 |
|
|
|
660 |
|
Additional paid-in
capital |
|
3,836,751 |
|
|
|
3,826,452 |
|
Treasury stock at cost |
|
(128,655 |
) |
|
|
(128,655 |
) |
Accumulated other
comprehensive income |
|
40,371 |
|
|
|
17,477 |
|
Retained deficit |
|
(279,763 |
) |
|
|
(151,551 |
) |
Total SL Green Realty Corp.
stockholders’ equity |
|
3,691,296 |
|
|
|
3,786,315 |
|
Noncontrolling interests in
other partnerships |
|
66,465 |
|
|
|
69,610 |
|
Total equity |
|
3,757,761 |
|
|
|
3,855,925 |
|
Total liabilities and
equity |
$ |
9,548,652 |
|
|
$ |
9,531,181 |
|
|
SL GREEN REALTY CORP.RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES(unaudited and in thousands,
except per share data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
Funds From Operations
(FFO) Reconciliation: |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Net (loss) income attributable to SL Green common stockholders |
$ |
(2,160 |
) |
|
$ |
(360,194 |
) |
|
$ |
10,981 |
|
|
$ |
(399,925 |
) |
Add: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
52,247 |
|
|
|
69,335 |
|
|
|
100,831 |
|
|
|
148,117 |
|
Joint venture depreciation and noncontrolling interest
adjustments |
|
72,238 |
|
|
|
65,149 |
|
|
|
146,496 |
|
|
|
134,683 |
|
Net loss attributable to noncontrolling interests |
|
(2,024 |
) |
|
|
(24,622 |
) |
|
|
(2,417 |
) |
|
|
(28,584 |
) |
Less: |
|
|
|
|
|
|
|
Equity in net (loss) gain on sale of interest in unconsolidated
joint venture/real estate |
|
(8,129 |
) |
|
|
— |
|
|
|
18,635 |
|
|
|
(79 |
) |
Purchase price and other fair value adjustments |
|
(50 |
) |
|
|
(17,013 |
) |
|
|
(55,702 |
) |
|
|
(17,013 |
) |
Loss on sale of real estate, net |
|
(2,741 |
) |
|
|
(26,678 |
) |
|
|
(2,741 |
) |
|
|
(28,329 |
) |
Depreciable real estate reserves |
|
(13,721 |
) |
|
|
(305,916 |
) |
|
|
(65,839 |
) |
|
|
(305,916 |
) |
Depreciation on non-rental real estate assets |
|
1,000 |
|
|
|
851 |
|
|
|
2,153 |
|
|
|
1,719 |
|
FFO attributable to SL
Green common stockholders and unit holders |
$ |
143,942 |
|
|
$ |
98,424 |
|
|
$ |
359,385 |
|
|
$ |
203,909 |
|
|
SL GREEN REALTY CORP.RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES(unaudited and in thousands,
except per share data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
Operating income and
Same-store NOI Reconciliation: |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
1,959 |
|
|
$ |
(379,228 |
) |
|
$ |
20,348 |
|
|
$ |
(417,585 |
) |
|
|
|
|
|
|
|
|
Depreciable real estate
reserves |
|
13,721 |
|
|
|
305,916 |
|
|
|
65,839 |
|
|
|
305,916 |
|
Loss on sale of real estate,
net |
|
2,741 |
|
|
|
26,678 |
|
|
|
2,741 |
|
|
|
28,329 |
|
Purchase price and other fair
value adjustments |
|
(1,265 |
) |
|
|
17,409 |
|
|
|
49,227 |
|
|
|
17,170 |
|
Equity in net loss (gain) on
sale of interest in unconsolidated joint venture/real estate |
|
8,129 |
|
|
|
— |
|
|
|
(18,635 |
) |
|
|
79 |
|
Depreciation and
amortization |
|
52,247 |
|
|
|
69,335 |
|
|
|
100,831 |
|
|
|
148,117 |
|
SUMMIT Operator tax
expense |
|
1,855 |
|
|
|
1,879 |
|
|
|
560 |
|
|
|
3,146 |
|
Amortization of deferred
financing costs |
|
1,677 |
|
|
|
2,154 |
|
|
|
3,216 |
|
|
|
4,175 |
|
Interest expense, net of
interest income |
|
35,803 |
|
|
|
40,621 |
|
|
|
66,976 |
|
|
|
82,274 |
|
Operating
income |
|
116,867 |
|
|
|
84,764 |
|
|
|
291,103 |
|
|
|
171,621 |
|
|
|
|
|
|
|
|
|
Equity in net (income) loss
from unconsolidated joint ventures |
|
(4,325 |
) |
|
|
21,932 |
|
|
|
(115,485 |
) |
|
|
29,344 |
|
Marketing, general and
administrative expense |
|
20,032 |
|
|
|
22,974 |
|
|
|
41,345 |
|
|
|
46,259 |
|
Transaction related costs |
|
76 |
|
|
|
33 |
|
|
|
92 |
|
|
|
917 |
|
Loan loss and other investment
reserves, net of recoveries |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,890 |
|
SUMMIT Operator expenses |
|
23,188 |
|
|
|
22,836 |
|
|
|
45,046 |
|
|
|
43,524 |
|
Gain on early extinguishment
of debt |
|
(17,777 |
) |
|
|
— |
|
|
|
(17,777 |
) |
|
|
— |
|
Investment income |
|
(6,191 |
) |
|
|
(9,103 |
) |
|
|
(13,594 |
) |
|
|
(18,160 |
) |
SUMMIT Operator revenue |
|
(32,602 |
) |
|
|
(28,180 |
) |
|
|
(58,206 |
) |
|
|
(47,951 |
) |
Non-building revenue |
|
(25,714 |
) |
|
|
(21,110 |
) |
|
|
(30,763 |
) |
|
|
(27,916 |
) |
Net operating income
(NOI) |
|
73,554 |
|
|
|
94,146 |
|
|
|
141,761 |
|
|
|
204,528 |
|
|
|
|
|
|
|
|
|
Equity in net income (loss)
from unconsolidated joint ventures |
|
4,325 |
|
|
|
(21,932 |
) |
|
|
115,485 |
|
|
|
(29,344 |
) |
SLG share of unconsolidated JV
depreciation and amortization |
|
70,652 |
|
|
|
60,781 |
|
|
|
140,098 |
|
|
|
125,504 |
|
SLG share of unconsolidated JV
amortization of deferred financing costs |
|
2,367 |
|
|
|
3,141 |
|
|
|
5,462 |
|
|
|
6,203 |
|
SLG share of unconsolidated JV
interest expense, net of interest income |
|
69,280 |
|
|
|
62,589 |
|
|
|
142,083 |
|
|
|
125,735 |
|
SLG share of unconsolidated JV
gain on early extinguishment of debt |
|
(30,705 |
) |
|
|
— |
|
|
|
(172,369 |
) |
|
|
— |
|
SLG share of unconsolidated JV
investment income |
|
(1,720 |
) |
|
|
(317 |
) |
|
|
(1,720 |
) |
|
|
(630 |
) |
SLG share of unconsolidated JV
non-building revenue |
|
(1,623 |
) |
|
|
(2,046 |
) |
|
|
(2,124 |
) |
|
|
(4,343 |
) |
NOI including SLG
share of unconsolidated JVs |
|
186,130 |
|
|
|
196,362 |
|
|
|
368,676 |
|
|
|
427,653 |
|
|
|
|
|
|
|
|
|
NOI from other
properties/affiliates |
|
(30,401 |
) |
|
|
(28,848 |
) |
|
|
(53,487 |
) |
|
|
(92,960 |
) |
Same-Store
NOI |
|
155,729 |
|
|
|
167,514 |
|
|
|
315,189 |
|
|
|
334,693 |
|
|
|
|
|
|
|
|
|
Straight-line and free
rent |
|
1,743 |
|
|
|
(3,082 |
) |
|
|
(1,162 |
) |
|
|
(8,882 |
) |
Amortization of acquired above
and below-market leases, net |
|
865 |
|
|
|
166 |
|
|
|
914 |
|
|
|
332 |
|
Operating lease straight-line
adjustment |
|
204 |
|
|
|
204 |
|
|
|
408 |
|
|
|
408 |
|
SLG share of unconsolidated JV
straight-line and free rent |
|
(1,324 |
) |
|
|
(6,448 |
) |
|
|
(3,216 |
) |
|
|
(15,001 |
) |
SLG share of unconsolidated JV
amortization of acquired above and below-market leases, net |
|
(4,409 |
) |
|
|
(4,212 |
) |
|
|
(8,816 |
) |
|
|
(8,436 |
) |
SLG share of unconsolidated JV
operating lease straight-line adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Same-store cash
NOI |
$ |
152,808 |
|
|
$ |
154,142 |
|
|
$ |
303,317 |
|
|
$ |
303,114 |
|
|
|
|
|
|
|
|
|
Lease termination income |
|
(1,069 |
) |
|
|
(123 |
) |
|
|
(2,200 |
) |
|
|
(752 |
) |
SLG share of unconsolidated JV
lease termination income |
|
(57 |
) |
|
|
(355 |
) |
|
|
(3,343 |
) |
|
|
(734 |
) |
Same-store cash NOI
excluding lease termination income |
$ |
151,682 |
|
|
$ |
153,664 |
|
|
$ |
297,774 |
|
|
$ |
301,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 the Company believes it provides useful information
regarding the Company’s ability to fund its dividends. 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 the National Association of Real Estate Investment Trusts, or
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
SL Green Realty (NYSE:SLG)
過去 株価チャート
から 7 2024 まで 8 2024
SL Green Realty (NYSE:SLG)
過去 株価チャート
から 8 2023 まで 8 2024