NEWS

SL Green Realty Corp. Reports First Quarter 2019 EPS of $0.52 Per Share; and FFO of $1.68 Per Share

NEW YORK–(BUSINESS WIRE)–Apr. 17, 2019–
SL Green Realty Corp. (NYSE:SLG):

Financial and Operating Highlights

Net income attributable to common stockholders of $0.52 per share
for the first quarter as compared to $1.12 per share for the same
period in 2018. Net income attributable to common stockholders for the
first quarter of 2018 included a non-cash fair value adjustment of
$49.3 million, or $0.52 per share, related to the deconsolidation of
919 Third Avenue.
Funds from operations, or FFO, of $1.68 per share for the first
quarter, net of a non-cash charge of $2.0 million, or $0.02 per share,
related to the bankruptcy of Diesel, a tenant at 625 Madison Avenue,
as compared to $1.66 per share for the same period in 2018.
Same-store cash net operating income, or NOI, including our share
of same-store cash NOI from unconsolidated joint ventures, increased
5.1% for the first quarter excluding lease termination income and free
rent given to Viacom at 1515 Broadway, as compared to same period in
the prior year.
Signed 32 Manhattan office leases covering 407,902 square feet in
the first quarter. The mark-to-market on signed Manhattan office
leases was 4.5% higher for the first quarter over the previous fully
escalated rents on the same spaces.
Signed a new 28,024 square foot lease with KPS Capital Partners, LP
and, in April, signed a 14,276 square foot expansion with McDermott
Will & Emery at One Vanderbilt, bringing the property to 56.9% leased
ahead of its planned opening in August 2020.
In April, signed First Republic Bank to a 211,521 square foot,
15-year lease at 460 West 34th Street, the 20-Story, 638,000 square
foot, Class A office building located directly across from Hudson
Yards and Manhattan West along the full block front of Tenth Avenue
between 33rd and 34th Streets, which will be undergoing a substantial
redevelopment.
In April, signed a 10.8 year renewal for 56,239 square feet with
Skadden, Arps, Slate, Meagher & Flom LLP at 360 Hamilton Avenue in
White Plains, NY.
Manhattan same-store occupancy was 95.8% as of March 31, 2019,
inclusive of leases signed but not yet commenced.

Investing Highlights

In 2019, the Company repurchased 0.4 million shares of common stock
under the previously announced $2.5 billion share repurchase plan, at
an average price of $86.07 per share. To date, the Company has
acquired 18.5 million shares of its common stock and redeemed 0.4
million common units of its Operating Partnership, or OP units, under
the program at an average price of $98.48 per share/unit.
Together with our joint venture partner, entered into an agreement
to sell 521 Fifth Avenue for a sale price of $381.0 million. The
transaction is expected to generate net cash proceeds to the Company
of approximately $100.0 million and close in the second quarter.
Took possession of the retail co-op at 106 Spring Street in Soho.
The 5,936 square foot retail space, inclusive of 4,880 square feet on
grade, is considered one of the best available retail corners in Soho,
at the intersection of Spring Street and Mercer Street, and is
surrounded by several newly opened retail flagships including Nike,
Alo Yoga, Birkenstock, and Bang & Olufsen.

Financing Highlights

Closed on a new $85.0 million financing of the office portion of
609 Fifth Avenue. The new mortgage has a 5-year term and bears
interest at a floating rate of 2.40% over LIBOR.

Summary

SL Green Realty Corp. (the “Company”) today reported net income
attributable to common stockholders for the quarter ended March 31, 2019
of $43.8 million, or $0.52 per share, as compared to net income
attributable to common stockholders of$101.8 million, or $1.12
per share, for the same quarter in 2018. Net income attributable to
common stockholders for the first quarter of 2018 included a non-cash
fair value adjustment of $49.3 million, or $0.52 per share, related to
the deconsolidation of 919 Third Avenue.

The Company reported FFO for the quarter ended March 31, 2019 of $147.5
million, or $1.68 per share, net of a non-cash charge of $2.0 million,
or $0.02 per share, related to the bankruptcy of Diesel, a tenant at 625
Madison Avenue, as compared to FFO for the same period in 2018 of $157.7
million, or $1.66 per share.

All per share amounts in this press release are presented on a diluted
basis.

Operating and Leasing Activity

For the quarter ended March 31, 2019, the Company reported consolidated
revenues and operating income of $304.3 million and $160.3 million,
respectively, compared to $301.7 million and $168.3 million,
respectively, for the same period in 2018.

Same-store cash NOI, including our share of same-store cash NOI from
unconsolidated joint ventures, decreased by 2.9% for the quarter ended
March 31, 2019, but increased by 5.1% excluding lease termination income
and free rent given to Viacom at 1515 Broadway.

During the first quarter, the Company signed 32 office leases in its
Manhattan portfolio totaling 407,902 square feet. Twenty-four leases
comprising 234,282 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 $72.16 per rentable
square foot, representing a 4.5% increase over the previous fully
escalated rents on the same office spaces. The average lease term on the
Manhattan office leases signed in the first quarter was 11.7 years, or
12.2 years including the office leases signed at One Vanderbilt, and
average tenant concessions were 3.7 months of free rent with a tenant
improvement allowance of $56.29 per rentable square foot.

Occupancy in the Company’s Manhattan same-store portfolio was 95.8% as
of March 31, 2019, inclusive of 364,834 square feet of leases signed but
not yet commenced, as compared 95.5% at March 31, 2018.

During the first quarter, the Company signed 8 office leases in its
Suburban portfolio totaling 32,970 square feet. Seven leases comprising
29,851 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 $32.47 per rentable square foot,
representing a 0.9% decrease over the previous fully escalated rents on
the same office spaces. The average lease term on the Suburban office
leases signed in the first quarter was 3.8 years and average tenant
concessions were 3.2 months of free rent with a tenant improvement
allowance of $6.84 per rentable square foot.

Occupancy in the Company’s Suburban same-store portfolio was 91.1% as of
March 31, 2019, inclusive of 14,748 square feet of leases signed but not
yet commenced, as compared to 92.4% at March 31, 2018.

Significant leases that were signed in the first quarter included:

New lease with Young Adult Institute, Inc. for 75,353 square feet at
220 East 42nd Street, for 29.0 years;
New lease with 1350 Office Suites LLC for 49,921 square feet at 1350
Avenue of the Americas, for 10.0 years;
Expansion with The Carlyle Group for 32,592 square feet at One
Vanderbilt Avenue, for 15.8 years;
New lease with KPS Capital Partners, LP for 28,024 square feet at One
Vanderbilt Avenue, for 15.0 years; and
New lease with Newmark & Company Real Estate for 20,966 square feet at
110 East 42nd Street, for 12.3 years.

Marketing, general and administrative, or MG&A, expense for the three
months ended March 31, 2019 was $26.0 million, or 5.9% of total combined
revenues, inclusive of $2.2 million of additional expense related to the
new accounting guidance for leasing costs, which requires the Company to
expense certain internal costs that were previously capitalized.

Investment Activity

In 2019, the Company repurchased 0.4 million shares of common stock
under the previously announced $2.5 billion share repurchase plan, at an
average price of $86.07 per share. To date, the Company has acquired
18.5 million shares of its common stock and redeemed 0.4 million common
units of its Operating Partnership, or OP units, under the program at an
average price of $98.48 per share/unit, allowing the Company to save
approximately $64.4 million of common dividends and distributions on an
annualized basis.

In April, the Company took possession of the retail co-op at 106 Spring
Street in Soho. The 5,936 square foot retail space, inclusive of 4,880
square feet on grade, is considered one of the best available retail
corners in Soho, at the intersection of Spring Street and Mercer Street,
and is surrounded by several newly opened retail flagships including
Nike, Alo Yoga, Birkenstock, and Bang & Olufsen. The property previously
served as collateral for a debt and preferred equity investment.

In March, the Company, along with our joint venture partner entered into
an agreement to sell 521 Fifth Avenue for a sale price of $381.0
million. The Company acquired the leasehold interest in the 39-story,
460,000-square-foot, office building in March 2006, subsequently took
ownership of the fee interest in April 2011 and sold a joint venture
interest in the property to an institutional investment partner in the
fourth quarter of 2012. The transaction is expected to generate net cash
proceeds to the Company of approximately $100.0 million and close in the
second quarter, subject to customary closing conditions.

Debt and Preferred Equity Investment Activity

The carrying value of the Company’s debt and preferred equity investment
portfolio increased to $2.30 billion at March 31, 2019, including $2.27
billion of investments at a weighted average current yield of 8.8% that
are classified in the debt and preferred equity line item on the balance
sheet, and investments aggregating $0.03 billion at a weighted average
current yield of 6.6% that are included in other balance sheet line
items for accounting purposes.

During the first quarter, the Company originated or acquired new debt
and preferred equity investments totaling $419.0 million, all of which
was retained and $398.7 million of which was funded. New mortgage
investments totaled $147.8 million, all of which was retained and $132.7
million of which was funded, at a weighted average current yield of
8.5%. New subordinate debt and preferred equity investments totaled
$271.2 million, all of which was retained and $266.0 million of which
was funded, at a weighted average yield of 9.6%.

Financing Activity

In March, the Company closed on a new $85.0 million mortgage financing
of the office condominium at 609 Fifth Avenue. The new mortgage has a
2-year term, with three one year extension options and bears interest at
a floating rate of 2.40% over LIBOR.

Dividends

In the first quarter of 2019, the Company declared quarterly dividends
on its outstanding common and preferred stock as follows:

$0.85 per share of common stock, which was paid on April 15, 2019 to
shareholders of record on the close of business on March 29, 2019; and
$0.40625 per share on the Company’s 6.50% Series I Cumulative
Redeemable Preferred Stock for the period January 15, 2019 through and
including April 14, 2019, which was paid on April 15, 2019 to
shareholders of record on the close of business on March 29, 2019, and
reflects the regular quarterly dividend, which 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, April 18, 2019 at 2:00 pm ET to discuss the
financial results.

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

The live conference call will be webcast in listen-only mode in the
Investors section of the SL Green Realty Corp. website at https://slgreen.com/
under “Presentations & Webcasts”. The conference may also be accessed by
dialing toll-free (877) 312-8765 or international (419) 386-0002, and
using passcode 1975306.

A replay of the call will be available 7 days after the call by dialing
(855) 859-2056 using passcode 1975306. A webcast replay will also be
available in the Investors section of the SL Green Realty Corp. website
at https://slgreen.com/
under “Presentations & Webcasts”.

Company Profile

SL Green Realty Corp., an S&P 500 company and New York City’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 March 31, 2019, SL Green
held interests in 96 Manhattan buildings totaling 46.4 million square
feet. This included ownership interests in 27.7 million square feet of
Manhattan buildings and 18.7 million square feet of buildings securing
debt and preferred equity investments. In addition, SL Green held
ownership interests in 7 suburban properties comprised of 15 suburban
buildings totaling 2.3 million square feet in Brooklyn, Westchester
County, and Connecticut.

To be added to the Company’s distribution list or to obtain the latest
news releases and other Company information, please visit our website at www.slgreen.com
or contact Investor Relations at (212) 594-2700.

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, 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 are
described in our filings with the Securities and Exchange Commission. 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
	March 31,
	2019			2018
Revenues:
Rental revenue, net	$	212,639		$	215,369
Escalation and reimbursement	27,479			26,399
Investment income	50,031			45,290
Other income	14,106			14,637
Total revenues	304,255			301,695
Expenses:
Operating expenses, including related party expenses $2,793 in 2019 and $3,834 in 2018	57,698			59,782
Real estate taxes	46,688			45,661
Operating lease rent	8,298			8,308
Interest expense, net of interest income	50,525			47,916
Amortization of deferred financing costs	2,742			3,537
Depreciation and amortization	68,343			69,388
Transaction related costs	55			162
Marketing, general and administrative	25,979			23,528
Total expenses	260,328			258,282

Equity in net (loss) income from unconsolidated joint ventures	(5,234		)	4,036
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate	17,166			(6,440		)
Purchase price and other fair value adjustment	(2,041		)	49,293
(Loss) gain on sale of real estate, net	(1,049		)	23,521
Net income	52,769			113,823
Net income attributable to noncontrolling interests in the Operating Partnership	(2,278		)	(5,272		)
Net income attributable to noncontrolling interests in other partnerships	(237		)	(198		)
Preferred unit distributions	(2,724		)	(2,849		)
Net income attributable to SL Green	47,530			105,504
Perpetual preferred stock dividends	(3,738		)	(3,738		)
Net income attributable to SL Green common stockholders	$	43,792		$	101,766

Earnings Per Share (EPS)
Net income per share (Basic)	$	0.52		$	1.12
Net income per share (Diluted)	$	0.52		$	1.12

Funds From Operations (FFO)
FFO per share (Basic)	$	1.68		$	1.66
FFO per share (Diluted)	$	1.68		$	1.66

Basic ownership interest
Weighted average REIT common shares for net income per share	83,313			90,520
Weighted average partnership units held by noncontrolling interests	4,333			4,683
Basic weighted average shares and units outstanding	87,646			95,203

Diluted ownership interest
Weighted average REIT common share and common share equivalents	83,477			90,573
Weighted average partnership units held by noncontrolling interests	4,333			4,683
Diluted weighted average shares and units outstanding	87,810			95,256


SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)

	March 31,			December 31,
	2019			2018
Assets	(Unaudited)
Commercial real estate properties, at cost:
Land and land interests	$	1,775,006		$	1,774,899
Building and improvements	5,294,612			5,268,484
Building leasehold and improvements	1,423,282			1,423,107
Right of use asset – financing leases	47,445			47,445
Right of use asset – operating leases	396,148			—
	8,936,493			8,513,935
Less: accumulated depreciation	(2,154,075		)	(2,099,137		)
	6,782,418			6,414,798
Cash and cash equivalents	144,323			129,475
Restricted cash	151,388			149,638
Investment in marketable securities	29,406			28,638
Tenant and other receivables	47,829			41,589
Related party receivables	29,458			28,033
Deferred rents receivable	337,099			335,985
Debt and preferred equity investments, net of discounts and deferred origination fees of $21,584 and $22,379 and allowances of $1,750 and $5,750 in 2019 and 2018, respectively	2,272,241			2,099,393
Investments in unconsolidated joint ventures	3,055,368			3,019,020
Deferred costs, net	211,615			209,110
Other assets	324,629			295,679
Total assets	$	13,385,774		$	12,751,358

Liabilities
Mortgages and other loans payable	$	2,046,906		$	1,988,160
Revolving credit facility	790,000			500,000
Unsecured term loan	1,500,000			1,500,000
Unsecured notes	1,503,534			1,503,758
Deferred financing costs, net	(50,376		)	(50,218		)
Total debt, net of deferred financing costs	5,790,064			5,441,700
Accrued interest payable	28,930			23,154
Accounts payable and accrued expenses	111,899			147,061
Deferred revenue	102,598			94,453
Lease liability – financing leases	43,823			43,616
Lease liability – operating leases	389,857			3,603
Dividend and distributions payable	80,047			80,430
Security deposits	61,139			64,688
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities	100,000			100,000
Other liabilities	135,448			116,566
Total liabilities	6,843,805			6,115,271

Commitments and contingencies	—			—
Noncontrolling interest in the Operating Partnership	412,361			387,805
Preferred units	285,285			300,427

Equity
Stockholders’ equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2019 and December 31, 2018	221,932			221,932
Common stock, $0.01 par value 160,000 shares authorized, 84,328 and 84,739 issued and outstanding at March 31, 2019 and December 31, 2018, respectively (including 1,055 held in Treasury at both March 31, 2019 and December 31, 2018)	843			847
Additional paid-in capital	4,492,581			4,508,685
Treasury stock at cost	(124,049		)	(124,049		)
Accumulated other comprehensive (loss) income	(4,005		)	15,108
Retained earnings	1,210,497			1,278,998
Total SL Green Realty Corp. stockholders’ equity	5,797,799			5,901,521
Noncontrolling interests in other partnerships	46,524			46,334
Total equity	5,844,323			5,947,855
Total liabilities and equity	$	13,385,774		$	12,751,358


SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited and in thousands, except per share data)

	Three Months Ended
	March 31,
Funds From Operations (FFO) Reconciliation:	2019			2018

Net income attributable to SL Green common stockholders	$	43,792		$	101,766
Add:
Depreciation and amortization	68,343			69,388
Joint venture depreciation and noncontrolling interest adjustments	47,625			48,006
Net income attributable to noncontrolling interests	2,515			5,470
Less:
(Loss) gain on sale of real estate, net	(1,049		)	23,521
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate	17,166			(6,440		)
Purchase price and other fair value adjustments	(2,041		)	49,293
Depreciation on non-rental real estate assets	707			566
FFO attributable to SL Green common stockholders	$	147,492		$	157,690


	Three Months Ended
	March 31,
Operating income and Same-store NOI Reconciliation:	2019			2018

Net income	$	52,769		$	113,823
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate	(17,166		)	6,440
Purchase price and other fair value adjustments	2,041			(49,293		)
Loss (gain) on sale of real estate, net	1,049			(23,521		)
Depreciation and amortization	68,343			69,388
Interest expense, net of interest income	50,525			47,916
Amortization of deferred financing costs	2,742			3,537
Operating income	160,303			168,290

Equity in net (loss) income from unconsolidated joint ventures	5,234			(4,036		)
Marketing, general and administrative expense	25,979			23,528
Transaction related costs, net	55			162
Investment income	(50,031		)	(45,290		)
Non-building revenue	(9,144		)	(4,777		)
Net operating income (NOI)	132,396			137,877

Equity in net (loss) income from unconsolidated joint ventures	(5,234		)	4,036
SLG share of unconsolidated JV depreciation and amortization	48,128			47,619
SLG share of unconsolidated JV interest expense, net of interest income	39,407			35,780
SLG share of unconsolidated JV amortization of deferred financing costs	1,568			1,673
SLG share of unconsolidated JV transaction related costs	—			—
SLG share of unconsolidated JV investment income	(2,227		)	(3,086		)
SLG share of unconsolidated JV non-building revenue	(711		)	(1,000		)
NOI including SLG share of unconsolidated JVs	213,327			222,899

NOI from other properties/affiliates	(6,522		)	(18,494		)
Same-Store NOI	206,805			204,405

Ground lease straight-line adjustment	514			524
Joint Venture ground lease straight-line adjustment	258			258
Straight-line and free rent	(76		)	(2,096		)
Amortization of acquired above and below-market leases, net	(946		)	(1,684		)
Joint Venture straight-line and free rent	(16,111		)	(6,032		)
Joint Venture amortization of acquired above and below-market leases, net	(4,396		)	(3,853		)
Same-store cash NOI	$	186,048		$	191,522

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, 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 bonuses 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 our 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 a pro-rata adjustment for FAD for SLG’s unconsolidated
JV, less straight line rental income, free rent net of amortization,
second cycle tenant improvement and leasing costs, and recurring
building improvements.

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 amortization of acquired above
and below-market leases, net 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 our 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 our 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20190417005924/en/

Source: SL Green Realty Corp.

Matt DiLiberto
Chief Financial Officer
(212) 594-2700