NEWS

SL Green Realty Corp. Reports Fourth Quarter and Full Year 2015 FFO of $1.62 and $6.49 Per Share before Transaction Costs; and EPS of $1.01 and $2.70 Per Share

NEW YORK–(BUSINESS WIRE)–

SL Green Realty Corp. (NYSE:SLG):

Financial and Operating Highlights

Fourth quarter 2015 FFO of $1.62 per share before transaction

related costs of $0.01 per share compared to fourth quarter 2014 FFO

of $1.45 per share before transaction related costs of $0.02 per share.
Full year 2015 FFO of $6.49 per share before transaction related

costs of $0.11 per share compared to the full year 2014 FFO of $5.94

per share before transaction related costs of $0.09 per share.
Fourth quarter 2015 net income attributable to common stockholders

of $1.01 per share compared to fourth quarter 2014 net income

attributable to common stockholders of $0.59 per share. Full year net

income attributable to common stockholders of $2.70 per share,

compared to prior year net income of $5.23 per share.
Combined same-store cash NOI increased 5.0 percent for the fourth

quarter and 4.6 percent for the full year as compared to the same

periods in the prior year.
Signed 44 Manhattan office leases covering 416,198 square feet

during the fourth quarter and 189 Manhattan office leases covering

2,255,733 square feet during the full year. The mark-to-market on

signed Manhattan office leases was 20.5 percent higher in the fourth

quarter than the previously fully escalated rents on the same spaces,

resulting in a mark-to-market for the full year of 15.3 percent on

signed Manhattan office leases.
Signed 27 Suburban office leases covering 193,370 square feet

during the fourth quarter and 115 Suburban office leases covering

739,414 square feet during the full year. The mark-to-market on signed

Suburban office leases was 5.8 percent higher in the fourth quarter

than the previously fully escalated rents on the same spaces.
Increased Manhattan same-store occupancy, inclusive of leases

signed but not yet commenced, as of December 31, 2015 to 97.1 percent

as compared to 95.7 percent as of December 31, 2014.
Signed a new lease with Giorgio Armani Corp. that will allow Armani

to remain in its flagship retail space at 760 Madison Avenue through

2024.

Investing Highlights

Citigroup, Inc. exercised their option to purchase 388-390

Greenwich Street for $2.0 billion, net of any unfunded tenant

concessions. The closing is scheduled for December 2017.
Closed on the acquisition of the Company’s joint venture partner’s

interest in 600 Lexington Avenue at a gross asset valuation for the

consolidated investment of $284.0 million.
Closed on the sale of 570-574 Fifth Avenue and 140-150 Grand Avenue

for total gross asset valuations of $125.4 million and $32.0 million,

respectively.
Entered into an agreement to sell the Company’s 90 percent stake in

the residential condominium at 248-252 Bedford Avenue for a total

gross asset valuation of $55.0 million.
Originated new debt and preferred equity investments totaling

$986.1 million in the fourth quarter, of which $338.1 million was

retained.
Signed a new full-building, 49-year net lease at 562 Fifth Avenue,

which contains an option for the lessee to purchase the property for

$100.0 million from the Company.

Financing Highlights

Issued $100.0 million of 10-year 4.27% Senior Unsecured Notes via a

private placement.

Summary

SL Green Realty Corp. (NYSE:SLG) today reported funds from operations,

or FFO, for the quarter ended December 31, 2015 of $168.6 million, or

$1.62 per share, before transaction related costs of $1.4 million, or

$0.01 per share, as compared to FFO for the same period in 2014 of

$146.8 million, or $1.45 per share, before transaction related costs of

$2.1 million, or $0.02 per share.

The Company also reported FFO for the year ended December 31, 2015 of

$673.3 million, or $6.49 per share, before transaction related costs of

$11.5 million, or $0.11 per share, as compared to FFO for the same

period in 2014 of $592.1 million, or $5.94 per share, before transaction

related costs of $9.1 million, or $0.09 per share.

Net income attributable to common stockholders for the quarter ended

December 31, 2015 totaled $101.3 million, or $1.01 per share, compared

to net income attributable to common stockholders of $56.8

million, or $0.59 per share, for the same quarter in 2014. Net income

attributable to common stockholders for the fourth quarter of 2015

includes $57.3 million, or $0.55 per share, of net gains recognized from

the sale of real estate and purchase price fair value adjustments as

compared to $19.5 million, or $0.19 for the same quarter in 2014. Net

income attributable to common stockholders for the year ended December

31, 2015 totaled $269.1 million, or $2.70 per share, compared to net

income attributable to common stockholders of $503.1 million, or $5.23

per share for the same period in 2014. Net income attributable to common

stockholders for the current year includes $226.8 million, or $2.19 per

share, of net gains recognized from the sale of real estate and purchase

price fair value adjustments offset by $127.5 million, or $1.23 per

share, of accelerated depreciation expense related to the properties

that comprise the One Vanderbilt development site, as compared to $353.8

million, or $3.55 per share, of gains recognized from the sale of real

estate and purchase price fair value adjustments for the prior year.

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

basis.

Operating and Leasing Activity

For the quarter ended December 31, 2015, the Company reported

consolidated revenues and operating income of $425.4 million and $259.6

million, respectively, compared to $386.6 million and $223.2 million,

respectively, for the same period in 2014. For the year ended December

31, 2015, the Company reported consolidated revenues and operating

income of $1.7 billion and $1.0 billion, respectively, compared to $1.5

billion and $880.5 million, respectively, for prior year.

Same-store cash NOI on a combined basis increased by 5.0 percent to

$179.2 million and by 4.6 percent to $695.0 million for the quarter and

year ended December 31, 2015, respectively, as compared to the same

periods in 2014. For the quarter ended December 31, 2015, consolidated

property same-store cash NOI increased by 5.1 percent to $160.3 million

and unconsolidated joint venture property same-store cash NOI increased

by 4.0 percent to $19.0 million, as compared to the same period in 2014.

For the year ended December 31, 2015, consolidated property same-store

cash NOI increased by 4.5 percent to $620.8 million and unconsolidated

joint venture property same-store cash NOI increased by 6.3 percent to

$74.1 million, as compared to the same period in 2014.

During the fourth quarter, the Company signed 44 office leases in its

Manhattan portfolio totaling 416,198 square feet. Twelve leases

comprising 100,950 square feet represented office leases that replaced

previous vacancy. Thirty-two leases comprising 315,248 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 $66.38 per rentable square foot, representing a 20.5

percent increase over the previously fully escalated rents on the same

office spaces. The average lease term on the Manhattan office leases

signed in the fourth quarter was 7.5 years and average tenant

concessions were 1.7 months of free rent with a tenant improvement

allowance of $17.69 per rentable square foot.

During the year ended December 31, 2015, the Company signed 189 office

leases in its Manhattan portfolio totaling 2,255,733 square feet.

Fifty-seven leases comprising 867,077 square feet represented office

leases that replaced previous vacancy. One hundred thirty-two leases

comprising 1,388,656 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 $65.88 per rentable

square foot, representing a 15.3 percent increase over the previously

fully escalated rents on the same office spaces.

Manhattan same-store occupancy was 97.1 percent at December 31, 2015,

inclusive of 218,128 square feet of leases signed but not yet commenced,

as compared to 95.7 percent at December 31, 2014 and 97.3 percent at

September 30, 2015.

During the fourth quarter, the Company signed 27 office leases in its

Suburban portfolio totaling 193,370 square feet. Ten leases comprising

56,313 square feet represented office leases that replaced previous

vacancy. Seventeen leases comprising the remaining 137,057 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 $32.05 per rentable square foot, representing a 5.8

percent increase over the previously fully escalated rents on the same

office spaces. The average lease term on the Suburban office leases

signed in the fourth quarter was 6.0 years and average tenant

concessions were 3.2 months of free rent with a tenant improvement

allowance of $19.32 per rentable square foot.

During the year ended December 31, 2015, the Company signed 115 office

leases in its Suburban portfolio totaling 739,414 square feet.

Thirty-nine leases comprising 221,237 square feet represented office

leases that replaced previous vacancy. Seventy-six leases comprising

518,177 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 $32.69 per rentable square foot,

representing a 1.3 percent decrease over the previously fully escalated

rents on the same office spaces.

Same-store occupancy for the Company’s Suburban portfolio was 82.5

percent at December 31, 2015, inclusive of 77,950 square feet of leases

signed but not yet commenced, as compared to 82.0 percent at December

31, 2014 and 83.4 percent at September 30, 2015.

Significant leases that were signed during the fourth quarter included:

New full-building, 49-year net lease at 562 Fifth Avenue. The lease

contains an option for the lessee to purchase the property from the

Company for $100.0 million with annual escalations in the purchase

price after the third year;
New lease with Giorgio Armani Corp. that will allow Armani to remain

in its flagship retail space at 760 Madison Avenue through 2024 at

rental rates reflective of today’s market;
Early renewal for 52,718 square feet with Penguin Random House LLC at

1745 Broadway, extending the remaining lease term to 7.5 years;
Early renewal and expansion for 51,536 square feet with Nomura Holding

America at 1100 King Street – 5 International Drive, Rye Brook, New

York, extending the remaining lease term to 12.0 years;
Early renewal for 50,000 square feet with City University of New York

at 555 West 57^th Street, extending the remaining lease term

to 15.0 years;
Early renewal and expansion for 44,874 square feet with Murex North

America, Inc. at 810 Seventh Avenue, extending the remaining lease

term to 10.8 years;
New lease for 38,050 square feet with Golenbock, Eisman, Assor Bell &

Peskoe LLP at 711 Third Avenue for 10.5 years;
New lease for 31,126 square feet with Fir Tree, Inc. at 55 West 46^th

Street for 10.0 years; and
Early renewal for 22,889 square feet with KPS Capital Partners L.P. at

485 Lexington Avenue, extending the remaining lease term to 12.3 years.

Marketing, general and administrative, or MG&A, expenses for the quarter

ended December 31, 2015 were $22.7 million, or 4.7 percent of total

combined revenues and an annualized 42 basis points of total combined

assets including the Company’s share of joint venture revenues and

assets. MG&A expenses for the year ended December 31, 2015 were $94.9

million, or 5.0 percent of total combined revenues and 44 basis points

of total combined assets including the Company’s share of joint venture

revenues and assets.

Real Estate Investment Activity

In January, Citigroup, Inc. exercised their option to purchase 388-390

Greenwich Street for $2.0 billion, net of any unfunded tenant

concessions. The closing is scheduled for December 2017.

In December, the Company closed on the acquisition of a 45 percent stake

in 600 Lexington Avenue, a 36-story, 303,500 square foot Midtown

Manhattan office building from Canada Pension Plan Investment Board’s

(CPPIB), which gives the Company complete ownership of the asset. The

transaction implies consideration for the consolidated interests

of $284.0 million, or $936 per square foot. The Company and CPPIB

acquired the property in May 2010 and completed capital improvements to

reposition it as one of the submarket’s most desirable locations. With

the Company responsible for management and leasing, occupancy has

reached 95.5 percent as of December 2015.

In December, the Company closed on the sale of 570-574 Fifth Avenue,

two retail development sites, to a single buyer for $125.4

million, or $13,690 per zoning square foot, and recognized a gain on

sale of $24.6 million. The sites were acquired by the Company

in November 2013 for $78.7 million.

In December, the Company closed on the sale of the properties at 140-150

Grand Street in White Plains, New York for $32.0 million.

In December, the Company entered into an agreement to sell its 90

percent stake in the residential condominium at 248-252 Bedford Avenue,

a 72-unit multifamily building owned in partnership with Magnum Real

Estate Group, at a gross asset valuation of $55.0 million, or $1,242 per

square foot. Situated in Brooklyn’s highly sought-after Williamsburg

neighborhood, the Company acquired its interest in the newly constructed

44,279 square foot rental property, along with 12 townhomes, for $54.9

million in March 2013. The Company has since sold off the 12 townhomes

for gross sales prices totaling $25.5 million. The combined sales of the

residential components of the property will generate an approximate IRR

of 20 percent upon closing. The transaction is expected to close in the

first quarter of 2016, subject to customary closing conditions. The

Company continues to own its interest in the building’s street level

retail condominium comprised of 51,470 square feet.

In October, the Company announced an agreement to sell the leased fee

interest in 885 Third Avenue for a gross sale price of $453 million. The

Company acquired the leased fee interest in a joint venture partnership

in 2007 at a gross asset valuation of $317 million and subsequently

fully consolidated its position in 2010 at a gross asset valuation of

$352 million. As part of the transaction, the Company will retain an

investment. The sale, executed at a capitalization rate of 3.8 percent,

will generate net proceeds to the Company of approximately $45 million,

after giving consideration to the retained investment and the in-place

mortgage of $267.7 million, which is scheduled to mature in 2017. The

sale is expected to be completed in the first quarter of 2016, subject

to customary closing conditions.

In October, the Company announced an agreement to sell the

recently-completed Pace University dormitory tower at 33 Beekman Street,

which it owns in a joint venture, for a gross sale price of $196

million. The property was jointly developed by the Company and the

Naftali Group. It houses 772 dormitory beds, and features a public plaza

and ground-floor retail and amenity space used by the university. The

project is the Company’s second successful dormitory development for

Pace, following on the heels of a 609-bed dormitory and retail project

at 180 Broadway, which was completed and delivered in early 2013. The

sale of 33 Beekman, executed at a capitalization rate of 3.9 percent,

will generate net proceeds to the Company of approximately $64 million.

The sale is expected to be completed in the first half of 2016, subject

to customary closing conditions.

Debt and Preferred Equity Investment Activity

The carrying value of the Company’s debt and preferred equity investment

portfolio totaled $1.7 billion at December 31, 2015. During the fourth

quarter, the Company originated new debt and preferred equity

investments totaling $986.1 million, of which $338.1 million was

retained and $296.4 million was funded, at a weighted average current

yield of 10.3 percent. During the fourth quarter, the Company recorded

$148.1 million of principal reductions from investments that were sold

or repaid.

During the year ended December 31, 2015, the Company originated new debt

and preferred equity investments totaling $1.6 billion, of which $856.4

million was retained and $680.7 million was funded, at a weighted

average current yield of 10.0 percent. As of December 31, 2015, the debt

and preferred equity investment portfolio had a weighted average

maturity of 1.7 years, excluding any extension options, and had a

weighted average yield during the fourth quarter of 10.3 percent.

Financing Activity

In December, the Company returned to the unsecured debt markets with an

issuance of $100.0 million of 4.27% Senior Unsecured Notes, due December

17, 2025, in a private placement. The Senior Unsecured Notes were

co-issued by SL Green Realty Corp., SL Green Operating Partnership,

L.P. and Reckson Operating Partnership, L.P.

Dividends

During the fourth quarter of 2015, the Company declared quarterly

dividends on its outstanding common and preferred stock as follows:

$0.72 per share of common stock, consistent with the previous

announcement of a dividend increase in December 2015. The dividend was

paid on January 15, 2016 to shareholders of record on the close of

business on January 4, 2016. The annual dividend of $2.88 per share

represents a 20 percent increase over the prior year; and
$0.40625 per share on the Company’s 6.50% Series I Cumulative

Redeemable Preferred Stock for the period October 15, 2015 through and

including January 14, 2016, which was paid on January 15, 2016 to

shareholders of record on the close of business on January 4, 2016,

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, Chief

Executive Officer, will host a conference call and audio webcast on

Thursday, January 28, 2016 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 “Event Calendar & Webcasts” and on Thomson’s StreetEvents Network.

The conference may also be accessed by dialing (877) 312-8765 Domestic

or (419) 386-0002 International.

A replay of the call will be available through February 4, 2016 by

dialing (800) 585-8367 or (404) 537-3406 International, using pass-code

50413135.

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 December 31, 2015, SL

Green held interests in 121 Manhattan buildings totaling 48.3 million

square feet. This included ownership interests in 30.5 million square

feet of commercial buildings and debt and preferred equity investments

secured by 17.8 million square feet of buildings. In addition to its

Manhattan investments, SL Green held ownership interests in 33 suburban

buildings totaling 5.1 million square feet in Brooklyn, Long Island,

Westchester County, Connecticut and New Jersey.

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 Statement

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. Forward-looking statements are not guarantees of future

performance 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 INCOME
(unaudited and in thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Revenues:
Rental revenue, net	$	319,961		$	294,189		$	1,245,981		$	1,121,066
Escalation and reimbursement	47,882			44,167			178,512			164,376
Investment income	44,540			41,048			181,128			178,815
Other income	13,007			7,223			57,208			55,721
Total revenues	425,390			386,627			1,662,829			1,519,978
Expenses:
Operating expenses, including related party expenses of $6,477 and $20,071 in 2015
and $6,125 and $19,308 in 2014	76,085			71,165			301,624			282,283
Real estate taxes	59,684			58,141			232,702			217,843
Ground rent	8,308			8,146			32,834			32,307
Interest expense, net of interest income	88,176			80,976			323,870			317,400
Amortization of deferred financing costs	7,621			6,640			27,348			22,377
Depreciation and amortization	106,800			97,273			560,887			371,610
Transaction related costs	1,391			2,153			11,430			8,707
Marketing, general and administrative	22,734			22,710			94,873			92,488
Total expenses	370,799			347,204			1,585,568			1,345,015
Income from continuing operations before equity in net income from unconsolidated
joint ventures, equity in net (loss) gain on sale of interest in unconsolidated joint
venture/real estate, purchase price fair value adjustment, gain on sale of real estate,
depreciable real estate reserves and loss on early extinguishment of debt	54,591			39,423			77,261			174,963
Equity in net income from unconsolidated joint ventures	2,377			5,756			13,028			26,537
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate	(206		)	673			15,844			123,253
Gain on sale of investment in marketable securities	—			3,895			—			3,895
Purchase price fair value adjustment	40,078			—			40,078			67,446
Gain on sale of real estate, net	16,270			—			175,974			—
Depreciable real estate reserves	—			—			(19,226		)	—
Loss on early extinguishment of debt	—			(6,865		)	(49		)	(32,365		)
Income from continuing operations	113,110			42,882			302,910			363,729
Net income from discontinued operations	—			3,626			427			19,075
Gain on sale of discontinued operations	1,139			18,817			14,122			163,059
Net income	114,249			65,325			317,459			545,863
Net income attributable to noncontrolling interests in the Operating Partnership	(3,931		)	(2,457		)	(10,565		)	(18,467		)
Net income attributable to noncontrolling interests in other partnerships	(2,626		)	(1,545		)	(15,843		)	(6,590		)
Preferred unit distributions	(2,651		)	(800		)	(6,967		)	(2,750		)
Net income attributable to SL Green	105,041			60,523			284,084			518,056
Perpetual preferred stock dividends	(3,738		)	(3,738		)	(14,952		)	(14,952		)
Net income attributable to SL Green common stockholders	$	101,303		$	56,785		$	269,132		$	503,104

Earnings Per Share (EPS)
Net income per share (Basic)	$	1.02		$	0.59		$	2.71		$	5.25
Net income per share (Diluted)	$	1.01		$	0.59		$	2.70		$	5.23

Funds From Operations (FFO)
FFO per share (Basic)	$	1.61		$	1.44		$	6.41		$	5.87
FFO per share (Diluted)	$	1.61		$	1.43		$	6.38		$	5.85

Basic ownership interest
Weighted average REIT common shares for net income per share	99,758			96,770			99,345			95,774
Weighted average partnership units held by noncontrolling interests	3,829			3,791			3,900			3,514
Basic weighted average shares and units outstanding	103,587			100,561			103,245			99,288

Diluted ownership interest
Weighted average REIT common share and common share equivalents	100,226			97,243			99,835			96,182
Weighted average partnership units held by noncontrolling interests	3,829			3,791			3,900			3,514
Diluted weighted average shares and units outstanding	104,055			101,034			103,735			99,696

SL GREEN REALTY CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

December 31,

2015

2014

(Unaudited)

Assets

Commercial real estate properties, at cost:

Land and land interests

4,779,159

3,844,518

Building and improvements

10,423,739

8,778,593

Building leasehold and improvements

1,431,259

1,418,585

Properties under capital lease

47,445

27,445

16,681,602

14,069,141

Less accumulated depreciation

(2,060,706

)

(1,905,165

)

14,620,896

12,163,976

Assets held for sale

34,981

462,430

Cash and cash equivalents

255,399

281,409

Restricted cash

233,578

149,176

Investment in marketable securities

45,138

39,429

Tenant and other receivables, net of allowance of $17,618 and

$18,068 in 2015 and 2014, respectively

63,491

57,369

Related party receivables

10,650

11,735

Deferred rents receivable, net of allowance of $21,730 and $27,411

in 2015 and 2014, respectively

498,776

374,944

Debt and preferred equity investments, net of discounts and

deferred origination fees of $18,759 and $19,172 in 2015

and 2014, respectively

1,670,020

1,408,804

Investments in unconsolidated joint ventures

1,203,858

1,172,020

Deferred costs, net

370,435

327,962

Other assets

850,719

647,333

Total assets

19,857,941

17,096,587

Liabilities

Mortgages and other loans payable

6,992,504

5,586,709

Revolving credit facility

994,000

385,000

Term loan and senior unsecured notes

2,319,244

2,107,078

Accrued interest payable and other liabilities

210,883

137,634

Accounts payable and accrued expenses

196,213

173,246

Deferred revenue

399,102

187,148

Capitalized lease obligations

41,360

20,822

Deferred land leases payable

1,783

1,215

Dividend and distributions payable

79,790

64,393

Security deposits

68,023

66,614

Liabilities related to assets held for sale

29,000

266,873

Junior subordinate deferrable interest debentures held by trusts

that issued trust preferred securities

100,000

Total liabilities

11,431,902

9,096,732

Commitments and contingencies

—

Noncontrolling interest in the Operating Partnership

424,206

469,524

Preferred units

282,516

71,115

Equity

Stockholders’ equity:

Series I Preferred Stock, $0.01 par value, $25.00 liquidation

preference, 9,200 issued and outstanding at both

December 31, 2015 and December 31, 2014

221,932

Common stock, $0.01 par value 160,000 shares authorized, 100,063

and 97,325 issued and outstanding at

December 31, 2015 and December 31, 2014, respectively (including

87 shares held in Treasury at

December 31, 2015)

1,001

974

Additional paid-in capital

5,439,735

5,113,759

Treasury stock at cost

(10,000

)

—

Accumulated other comprehensive loss

(8,749

)

(6,980

)

Retained earnings

1,643,546

1,607,689

Total SL Green Realty Corp. stockholders’ equity

7,287,465

6,937,374

Noncontrolling interests in other partnerships

431,852

521,842

Total equity

7,719,317

7,459,216

Total liabilities and equity

19,857,941

17,096,587


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,
	2015			2014		2015			2014
FFO Reconciliation:
Net income attributable to SL Green common stockholders	$	101,303		$	56,785	$	269,132		$	503,104
Add:
Depreciation and amortization	106,800			97,273		560,887			371,610
Discontinued operations depreciation adjustments	—			147		—			5,581
Joint venture depreciation and noncontrolling interest adjustments	10,373			6,508		34,226			33,487
Net income attributable to noncontrolling interests	6,557			4,002		26,408			25,057
Less:
Gain on sale of real estate and discontinued operations, net	17,409			18,817		190,096			163,059
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate	(206		)	673		15,844			123,253
Purchase price fair value adjustment	40,078			—		40,078			67,446
Depreciable real estate reserves, net of recoveries	—			—		(19,226		)	—
Depreciation on non-rental real estate assets	511			525		2,036			2,045
Funds From Operations attributable to SL Green common stockholders and noncontrolling
interests	$	167,241		$	144,700	$	661,825		$	583,036


	Consolidated Properties						SL Green’s share of Unconsolidated Joint Ventures						Combined
	Three Months Ended						Three Months Ended						Three Months Ended
	December 31,						December 31,						December 31,
Operating income and Same-store NOI Reconciliation:	2015			2014			2015			2014			2015			2014
Income from continuing operations before equity in net income from
unconsolidated joint ventures, equity in net (loss)/gain on sale of interest
in unconsolidated joint venture/real estate, purchase price fair
value adjustment, gain on sale of real estate, depreciable real estate
reserves and loss on early extinguishment of debt	$	54,591		$	39,423

Equity in net income from unconsolidated joint ventures	2,377			5,756			2,377			5,756
Depreciation and amortization	106,800			97,273			16,965			13,395
Interest expense, net of interest income	88,176			80,976			18,710			14,000
Amortization of deferred financing costs	7,621			6,640			1,689			1,310
Loss on early extinguishment of debt	—			(6,865		)	—			—
Operating income	259,565			223,203			39,741			34,461

Marketing, general and administrative expense	22,734			22,710			—			—
Net operating income from discontinued operations	—			5,441			—			—
Transaction related costs, net	1,391			2,153			—			(29		)

Non-building revenue	(57,885		)	(43,703		)	(6,470		)	(1,577		)
Equity in net income from unconsolidated joint ventures	(2,377		)	(5,756		)	—			—
Loss on early extinguishment of debt	—			6,865			2			—
Net operating income (NOI)	223,428			210,913			33,273			32,855			$	256,701		$	243,768


NOI from discontinued operations	—			(5,441		)	—			—			—			(5,441		)
NOI from other properties/affiliates	(51,880		)	(39,927		)	(12,621		)	(12,684		)	(64,501		)	(52,611		)
Same-Store NOI	171,548			165,545			20,652			20,171			192,200			185,716


Ground lease straight-line adjustment	393			400			—			—			393			400

Straight-line and free rent	(8,638		)	(10,307		)	(1,318		)	(1,573		)	(9,956		)	(11,880		)
Rental income – FAS 141	(3,048		)	(3,115		)	(383		)	(369		)	(3,431		)	(3,484		)
Same-store cash NOI	$	160,255		$	152,523		$	18,951		$	18,229		$	179,206		$	170,752


	Consolidated Properties						SL Green’s share of Unconsolidated Joint Ventures						Combined
	Twelve Months Ended						Twelve Months Ended						Twelve Months Ended
	December 31,						December 31,						December 31,
Operating income and Same-store NOI Reconciliation:	2015			2014			2015			2014			2015			2014
Income from continuing operations before equity in net income from
unconsolidated joint ventures, equity in net gain on sale of interest
in unconsolidated joint venture/real estate, purchase price fair
value adjustment, gain on sale of real estate, depreciable real estate
reserves and loss on early extinguishment of debt	$	77,261		$	174,963

Equity in net income from unconsolidated joint ventures	13,028			26,537			13,028			26,537
Depreciation and amortization	560,887			371,610			62,766			60,692
Interest expense, net of interest income	323,870			317,400			70,018			61,556
Amortization of deferred financing costs	27,348			22,377			5,770			6,008
Loss on early extinguishment of debt	(49		)	(32,365		)	—			—
Operating income	1,002,345			880,522			151,582			154,793

Marketing, general and administrative expense	94,873			92,488			—			—
Net operating income from discontinued operations	488			37,790			—			—
Transaction related costs, net	11,430			8,707			37			372

Non-building revenue	(195,944		)	(217,857		)	(25,690		)	(17,467		)
Equity in net income from unconsolidated joint ventures	(13,028)			(26,537)			—			—
Loss on early extinguishment of debt	49			32,365			497			3,382
Net operating income (NOI)	900,213			807,478			126,426			141,080			$	1,026,639		$	948,558


NOI from discontinued operations	(488		)	(37,790		)	—			—			(488		)	(37,790		)
NOI from other properties/affiliates	(210,584		)	(114,361		)	(44,943		)	(62,229		)	(255,527		)	(176,590		)
Same-Store NOI	689,141			655,327			81,483			78,851			770,624			734,178


Ground lease straight-line adjustment	1,595			1,602			—			—			1,595			1,602

Straight-line and free rent	(57,615		)	(46,210		)	(5,829		)	(7,471		)	(63,444		)	(53,681		)
Rental income – FAS 141	(12,296		)	(16,377		)	(1,512		)	(1,607		)	(13,808		)	(17,984		)
Same-store cash NOI	$	620,825		$	594,342		$	74,142		$	69,773		$	694,967		$	664,115


SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED

	December 31,
	2015			2014
Manhattan Operating Data: ⁽¹⁾
Net rentable area at end of period (in 000’s)	24,029			21,905
Portfolio percentage leased at end of period	94.2		%	95.2		%
Same-Store percentage leased at end of period	96.1		%	94.7		%
Number of properties in operation	32			30

Office square feet where leases commenced during quarter ended (rentable)	390,771			303,677
Average mark-to-market percentage-office	15.3		%	14.7		%
Average starting cash rent per rentable square foot-office	$	65.48		$	59.49

		(1)			Includes wholly-owned and joint venture properties.

SLG- EARN

View source version on businesswire.com: http://www.businesswire.com/news/home/20160127006454/en/

SL Green Realty Corp.
Matt DiLiberto
Chief Financial Officer
(212)

594-2700

Source: SL Green Realty Corp.

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