NEWS

SL Green Realty Corp. Reports Second Quarter 2015 FFO of $1.65 Per Share Before Transaction Costs; and EPS of $(0.39) Per Share

Raises 2015 Earnings Guidance

NEW YORK–(BUSINESS WIRE)–

SL Green Realty Corp. (NYSE:SLG):

Financial and Operating Highlights

Second quarter FFO of $1.65 per share before transaction related

costs of $0.03 per share compared to prior year FFO of $1.64 per share

before transaction related costs of $0.02 per share. Prior year FFO

included a promote of $10.3 million, or $0.10 per share, recognized on

the sale of 747 Madison Avenue.
Raising 2015 NAREIT defined FFO guidance to a range of $6.30 to

$6.34 per share, an increase of $0.05 per share at the midpoint, as

compared to a previous range of $6.24 to $6.30 per share.
Second quarter net loss attributable to common stockholders of

$0.39 per share compared to prior year net income attributable to

common stockholders of $2.46 per share. Current year net loss includes

accelerated depreciation expense of $0.95 per share related to the

properties that comprise the One Vanderbilt development site.
Combined same-store cash NOI increased 4.9 percent for the second

quarter and 4.0 percent for the first six months as compared to the

same periods in the prior year.
Signed 50 Manhattan office leases covering 839,590 square feet

during the second quarter. The mark-to-market on signed Manhattan

office leases was 11.3 percent higher in the second quarter than the

previously fully escalated rents on the same spaces.
Signed 32 Suburban office leases covering 203,768 square feet

during the second quarter. The mark-to-market on signed Suburban

office leases was 1.0 percent lower in the second 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 June 30, 2015 to 97.0 percent as

compared to 94.9 percent as of June 30, 2014 and 95.9 percent as of

March 31, 2015.
Increased Suburban same-store occupancy, inclusive of leases signed

but not yet commenced, as of June 30, 2015 to 84.2 percent as compared

to 83.4 percent as of June 30, 2014 and 83.5 percent as of March 31,

2015.
Signed a 10-year lease with Adidas at 115 Spring Street.

Investing Highlights

Received final approval from the New York City Council for the

development of the 63-story One Vanderbilt office tower directly west

of Grand Central Terminal.
Entered into an agreement to acquire Eleven Madison

Avenue in Midtown South for $2.285 billion plus approximately $300.0

million in costs associated with lease stipulated improvements to the

property.
Entered into separate agreements to sell all of or interests in

Tower 45, 131-137 Spring Street and the Meadows Office Complex for

total gross asset valuations of $763.9 million. The Company expects to

recognize cash proceeds from these transactions in excess of $420.0

million.
Entered into an agreement to acquire a 90.0 percent interest in The

SoHo Building at 110 Greene Street based on a gross asset valuation of

$255.0 million.
Entered into an agreement to acquire two mixed-use properties

located at 187 Broadway and 5-7 Dey Street in Downtown Manhattan for

$63.7 million.
Closed on the off-market acquisition of a mixed-use residential and

retail property located on the Upper East Side of Manhattan for $50.0

million.
Originated new debt and preferred equity investments totaling

$302.5 million in the second quarter, of which $227.5 million was

retained at a weighted average current yield of 10.5 percent.

Summary

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

or FFO, for the quarter ended June 30, 2015 of $171.7 million, or $1.65

per share, before transaction related costs of $3.1 million, or $0.03

per share, as compared to FFO for the same period in 2014 of $162.6

million, or $1.64 per share, before transaction related costs of $1.7

million, or $0.02 per share. FFO for the current quarter includes the

recognition of the Company’s share of lease termination income at 919

Third Avenue of $5.8 million. Prior year FFO included a promote of $10.3

million recognized on the sale of 747 Madison Avenue.

Net loss attributable to common stockholders for the quarter ended June

30, 2015 totaled $39.1 million, or $0.39 per share, inclusive of $99.1

million, or $0.95 per share, of acceleration depreciation expense

related to the properties that comprise the One Vanderbilt development

site. Net income attributable to common stockholders for the quarter

ended June 30, 2014 totaled $235.5 million, or $2.46 per share,

inclusive of $117.8 million, or $1.18 per share, of gains recognized

from the sale of 673 First Avenue and a purchase price fair value

adjustment of $71.4 million, or $0.72 per share, related to the

acquisition of the Company’s joint venture partner’s interest in 388-390

Greenwich Street.

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

basis.

Operating and Leasing Activity

For the quarter ended June 30, 2015, the Company reported consolidated

revenues and operating income of $409.1 million and $251.3 million,

respectively, compared to $380.6 million and $233.7 million,

respectively, for the same period in 2014.

Same-store cash NOI on a combined basis increased by 4.9 percent to

$183.8 million and by 4.0 percent to $353.6 million for the three and

six months ended June 30, 2015, respectively, as compared to the same

periods in 2014. For the three months ended June 30, 2015, consolidated

property same-store cash NOI increased by 5.0 percent to $163.3 million

and unconsolidated joint venture property same-store cash NOI increased

by 3.6 percent to $20.5 million, as compared to the same period in 2014.

For the six months ended June 30, 2015, consolidated property same-store

cash NOI increased by 3.7 percent to $313.1 million and unconsolidated

joint venture property same-store cash NOI increased by 6.1 percent to

$40.4 million, as compared to the same period in 2014.

During the second quarter, the Company signed 50 office leases in its

Manhattan portfolio totaling 839,590 square feet. Seventeen leases

comprising 306,913 square feet represented office leases that replaced

previous vacancy. Thirty-three leases comprising 532,677 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 $60.74 per rentable square foot, representing an 11.3

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 second quarter was 11.2 years and average tenant

concessions were 7.5 months of free rent with a tenant improvement

allowance of $60.17 per rentable square foot.

During the first six months of 2015, the Company signed 94 office leases

in its Manhattan portfolio totaling 1,305,838 square feet. Thirty-two

leases comprising 621,191 square feet represented office leases that

replaced previous vacancy. Sixty-two leases comprising 684,647 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 $62.40 per rentable square foot, representing a 12.6

percent increase over the previously fully escalated rents on the same

office spaces.

Manhattan same-store occupancy increased to 97.0 percent at June 30,

2015, inclusive of 103,385 square feet of leases signed but not yet

commenced, as compared to 94.9 percent at June 30, 2014 and 95.9 percent

at March 31, 2015.

During the second quarter, the Company signed 32 office leases in its

Suburban portfolio totaling 203,768 square feet. Nine leases comprising

35,188 square feet represented office leases that replaced previous

vacancy. Twenty-three leases comprising the remaining 168,580 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 $34.85 per rentable square foot, representing a 1.0

percent decrease over the previously fully escalated rents on the same

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

signed in the second quarter was 6.2 years and average tenant

concessions were 5.0 months of free rent with a tenant improvement

allowance of $26.65 per rentable square foot.

During the first six months of 2015, the Company signed 65 office leases

in its Suburban portfolio totaling 414,678 square feet. Twenty leases

comprising 131,329 square feet represented office leases that replaced

previous vacancy. Forty-five leases comprising 283,349 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 $34.07 per rentable square foot, representing a 3.5

percent decrease over the previously fully escalated rents on the same

office spaces.

Same-store occupancy for the Company’s Suburban portfolio was 84.2

percent at June 30, 2015, inclusive of 127,646 square feet of leases

signed but not yet commenced, as compared to 83.4 percent at June 30,

2014 and 83.5 percent at March 31, 2015.

Significant leases that were signed during the second quarter included:

New lease on a total of 350,173 square feet on 10 floors with

Bloomberg LP, the world’s premier information network, for 15.0 years

at 919 Third Avenue;
New lease on 133,208 square feet with WeWork for 15.0 years,

comprising all nine floors at 315 West 36^th Street;
Early renewal on 70,145 square feet with Astor Parking, LLC at 1515

Broadway, bringing the remaining lease term to 10.1 years;
New lease on 41,830 square feet with GIC (New York) Inc. at 280 Park

Avenue for 15.0 years;
New lease on 33,250 square feet with Golden Tree Asset Management LP

at 485 Lexington Avenue for 10.5 years;
Early renewal on 30,365 square feet with Haworth, Inc. at 125 Park

Avenue, bringing the remaining lease term to 12.4 years;
Early renewal on 27,321 square feet with UBS Financial Services at 750

Washington Boulevard, Stamford, Connecticut, bringing the remaining

lease term to 6.8 years;
New lease on 26,520 square feet with Shiseido at The Meadows,

Rutherford, New Jersey for 10.8 years; and
New lease on 21,981 square feet with Infor (US), Inc. at 641 Sixth

Avenue for 10.8 years increasing its commitment to 136,029 square feet

at 635-641 Sixth Avenue.

In July, the Company announced that Adidas signed a 10-year lease at 115

Spring Street, a prime location in one of Manhattan’s strongest retail

areas. The two-level 5,218 square foot space will be the new home of

sportswear company’s Originals boutique.

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

ended June 30, 2015 were $23.2 million, or 5.0 percent of total revenues

and an annualized 49 basis points of total assets including the

Company’s share of joint venture revenues and assets.

Real Estate Investment Activity

In May, the New York City Council approved plans for the Company’s One

Vanderbilt office tower and demolition has commenced on the site.

Located directly west of Grand Central Terminal, the 63-story skyscraper

will be 1,501 feet tall and contain 1.6 million rentable square feet of

Class A commercial space. One Vanderbilt features open floor plans,

efficient use of space, and the highest level of sustainable design

in New York City. TD Bank will anchor approximately 200,000 square feet

of space in One Vanderbilt, including a flagship retail store on the

northeast corner of 42^nd Street and Madison Avenue. The

Company will invest an $220.0 million in public infrastructure,

constructing new, direct subway access points and circulation areas,

easing platform and mezzanine crowding and allowing trains to move more

quickly through the station at peak hours.

In May, the Company entered into an agreement to acquire Eleven Madison

Avenue for $2.285 billion plus approximately $300.0 million in costs

associated with lease stipulated improvements to the property.

Eleven Madison Avenue is a 29-story, 2.3 million square foot

Class-A, Midtown South office property that was built in 1929 and

originally served as the headquarters of Metropolitan Life Insurance

Company. After a $700.0 million modernization in the 1990s, it became

the North American headquarters of Credit Suisse, which continues to be

the largest tenant in the building today. It also will serve as the new

headquarters for Sony Corp. of America. The transaction is expected to

close in the third quarter of 2015, subject to customary closing

conditions.

In July, the Company announced an agreement to sell Tower 45, the office

building located at 120 West 45^th Street, for $365.0 million,

or approximately $830 per square foot. The 440,000-square-foot Tower 45

was acquired by the Company in 2007 as part of the merger with Reckson

Associates. Subsequently, the Company executed a significant capital

improvement program that successfully repositioned the property. Tower

45 is currently 96.2 percent leased. The transaction is expected to

close in the third quarter of 2015, subject to customary closing

conditions.

In July, the Company announced the formation of a joint venture with

Invesco Real Estate (“Invesco”) for the ownership of 131-137 Spring

Street, a 73,000 square foot mixed-use asset located in SoHo. Under the

terms of the agreement, Invesco will acquire an 80.0 percent stake in

the property, with the Company retaining a 20.0 percent ownership

interest as well as management and leasing responsibilities. The

transaction values the property at $277.8 million. 131-137 Spring

Street, a six-story building in the heart of the popular SoHo shopping

district, features 100 feet of ground floor frontage on Spring Street

and houses the multi-level flagship stores for Diesel and Burberry while

the balance of the building includes office space and residential rental

units. The transaction is expected to close in the third quarter of

2015, subject to customary closing conditions.

The Company will recognize cash proceeds in excess of $400.0 million

from the 131-137 Spring Street and Tower 45 transactions, combined,

which were executed at a blended cap rate of 3.3 percent.

In April, the Company, together with its joint venture partner, entered

into an agreement to sell the Meadows Office Complex, a two-building

604,000 square foot property in Rutherford, New Jersey, for $121.1

million. The Company owns a 50 percent joint venture interest in the

property, which is 91 percent leased, with Onyx Equities.

In July, the Company announced an agreement to acquire a 90.0 percent

interest in The SoHo Building at 110 Greene Street based on a gross

asset valuation of $255.0 million. The 13-story iconic mixed-use

property is located in the heart of historic SoHo, one of New York

City’s most desirable submarkets. 110 Greene Street is the tallest

building in the submarket, offering office and residential tenants

unparalleled views, along with large floor plates and substantial common

areas. Retail space at the building, along Greene and Mercer Streets,

offers existing and future tenants high visibility on two of the

strongest retail streets in Manhattan. Notwithstanding the building’s

current prominence, the Company plans additional enhancements to the

property as it reintroduces it to the marketplace. The transaction

increases the Company’s sizable footprint in SoHo, adding the

submarket’s best office space to the Company’s commercial portfolio, and

extending its substantial retail presence. The transaction is expected

to close in the third quarter of 2015, subject to customary closing

conditions.

In July, the Company announced an agreement to acquire two mixed-use

properties located at 187 Broadway and 5-7 Dey Street for $63.7 million.

Located adjacent to the entrance to Downtown Manhattan’s new Fulton

Transit Center and one block east of the World Trade Center, the site

consists of two mixed-use, retail/office buildings in a neighborhood

that has undergone rapid growth in the office, residential and retail

segments. The transaction is expected to close in the third quarter of

2015, subject to customary closing conditions.

In June 2015, the Company closed on the off-market acquisition of a

mixed-use residential and retail property located on the Upper East Side

of Manhattan for $50.0 million. The property is situated directly across

the street from two new subway stations that will anchor the Second

Avenue subway line and presents long-term value add opportunities for

the Company’s residential and retail business.

Debt and Preferred Equity Investment Activity

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

portfolio totaled $1.7 billion at June 30, 2015. During the second

quarter, the Company originated new debt and preferred equity

investments totaling $302.5 million, of which $227.5 million was

retained and $193.0 million was funded, at a weighted average current

yield of 10.5 percent, and recorded $82.8 million of principal

reductions from investments that were sold or repaid. As of June 30,

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 second quarter of 10.2 percent.

Guidance

Based on the Company’s performance for the first six months of 2015 and

its outlook for the remainder of 2015, the Company is raising its NAREIT

defined FFO guidance for 2015 to a range of $6.30 to $6.34 per share, an

increase of $0.05 per share at the midpoint, as compared to the previous

FFO guidance range of $6.24 to $6.30 per share.

Dividends

During the second quarter of 2015, the Company declared quarterly

dividends on its outstanding common and preferred stock as follows:

$0.60 per share of common stock, which was paid on July 15, 2015 to

shareholders of record on the close of business on June 30, 2015; and
$0.40625 per share on the Company’s 6.50% Series I Cumulative

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

including July 14, 2015, which was paid on July 15, 2015 to

shareholders of record on the close of business on June 30, 2015, 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, July 23, 2015 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 July 30, 2015 by dialing

(800) 585-8367, using pass-code 70777563.

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 June 30, 2015, SL Green

held interests in 120 Manhattan buildings totaling 44.1 million square

feet. This included ownership interests in 29.0 million square feet of

commercial buildings and debt and preferred equity investments secured

by 15.1 million square feet of buildings. In addition to its Manhattan

investments, SL Green held ownership interests in 37 suburban buildings

totaling 5.9 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						Six Months Ended
		June 30,						June 30,
		2015			2014			2015			2014
Revenues:
Rental revenue, net	$	304,226		$	279,608		$	607,555		$	535,584
Escalation and reimbursement		41,407			38,576			82,376			76,383
Investment income		45,191			39,714			87,260			93,798
Other income		18,250			22,734			28,182			37,312
Total revenues		409,074			380,632			805,373			743,077
Expenses:
Operating expenses, including related party expenses of $4,472 and $8,189 in 2015 and $4,567 and $8,080 in 2014		70,114			69,098			146,891			139,010
Real estate taxes		56,286			51,804			112,009			104,154
Ground rent		8,086			8,040			16,274			16,073
Interest expense, net of interest income		75,746			77,870			151,553			154,048
Amortization of deferred financing costs		5,952			5,401			12,567			9,058
Depreciation and amortization		199,565			93,379			307,902			179,894
Transaction related costs		3,067			1,697			4,210			4,171
Marketing, general and administrative		23,200			23,872			48,664			47,128
Total expenses		442,016			331,161			800,070			653,536
(Loss) 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 and loss on early extinguishment of debt		(32,942	)		49,471			5,303			89,541
Equity in net income from unconsolidated joint ventures		2,994			8,619			7,024			14,748
Equity in net gain on sale of interest in unconsolidated joint venture/real estate		769			1,444			769			106,084
Purchase price fair value adjustment		–			71,446			–			71,446
Loss on early extinguishment of debt		–			(1,028	)		(49	)		(1,025	)
(Loss) income from continuing operations		(29,179	)		129,952			13,047			280,794
Net income from discontinued operations		–			5,645			427			11,414
Gain on sale of discontinued operations		–			114,735			12,983			114,735
Net (loss) income		(29,179	)		250,332			26,457			406,943
Net loss (income) attributable to noncontrolling interests in the Operating Partnership		1,577			(8,645	)		(166	)		(13,374	)
Net income attributable to noncontrolling interests in other partnerships		(6,626	)		(1,843	)		(12,553	)		(3,333	)
Preferred unit distributions		(1,140	)		(565	)		(2,091	)		(1,130	)
Net (loss) income attributable to SL Green		(35,368	)		239,279			11,647			389,106
Perpetual preferred stock dividends		(3,738	)		(3,738	)		(7,476	)		(7,475	)
Net (loss) income attributable to SL Green common stockholders	$	(39,106	)	$	235,541		$	4,171		$	381,631

Earnings Per Share (EPS)
Net (loss) income per share (Basic)	$	(0.39	)	$	2.47		$	0.04		$	4.01
Net (loss) income per share (Diluted)	$	(0.39	)	$	2.46		$	0.04		$	3.99

Funds From Operations (FFO)
FFO per share (Basic)	$	1.63		$	1.63		$	3.14		$	3.15
FFO per share (Diluted)	$	1.62		$	1.62		$	3.12		$	3.14

Basic ownership interest
Weighted average REIT common shares for net income per share		99,579			95,455			98,994			95,288
Weighted average partnership units held by noncontrolling interests		3,908			3,515			3,936			3,339
Basic weighted average shares and units outstanding		103,487			98,970			102,930			98,627

Diluted ownership interest
Weighted average REIT common share and common share equivalents		100,038			95,969			99,487			95,789
Weighted average partnership units held by noncontrolling interests		3,908			3,515			3,936			3,339
Diluted weighted average shares and units outstanding		103,946			99,484			103,423			99,128


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

		June 30,			December 31,
		2015			2014
Assets		(Unaudited)
Commercial real estate properties, at cost:
Land and land interests	$	3,756,488		$	3,844,518
Building and improvements		8,397,117			8,778,593
Building leasehold and improvements		1,424,822			1,418,585
Properties under capital lease		27,445			27,445
		13,605,872			14,069,141
Less: accumulated depreciation		(2,081,646	)		(1,905,165	)
		11,524,226			12,163,976
Assets held for sale		420,569			462,430
Cash and cash equivalents		215,896			281,409
Restricted cash		128,234			149,176
Investment in marketable securities		46,251			39,429
Tenant and other receivables, net of allowance of $16,369 and $18,068 in 2015 and 2014, respectively		64,873			57,369
Related party receivables		11,395			11,735
Deferred rents receivable, net of allowance of $23,656 and $27,411 in 2015 and 2014, respectively		433,999			374,944
Debt and preferred equity investments, net of discounts and deferred origination fees of $18,867 and $19,172 in 2015 and 2014, respectively		1,685,234			1,408,804
Investments in unconsolidated joint ventures		1,262,723			1,172,020
Deferred costs, net		328,838			327,962
Other assets		1,144,720			647,333
Total assets	$	17,266,958		$	17,096,587

Liabilities
Mortgages and other loans payable	$	5,287,934		$	5,586,709
Revolving credit facility		705,000			385,000
Term loan and senior unsecured notes		2,113,050			2,107,078
Accrued interest payable and other liabilities		161,188			137,634
Accounts payable and accrued expenses		147,028			173,246
Deferred revenue		337,571			187,148
Capitalized lease obligations		21,013			20,822
Deferred land leases payable		1,387			1,215
Dividend and distributions payable		66,026			64,393
Security deposits		67,985			66,614
Liabilities related to assets held for sale		178,252			266,873
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities		100,000			100,000
Total liabilities		9,186,434			9,096,732

Commitments and contingencies		–			–
Noncontrolling interest in the Operating Partnership		431,418			469,524
Preferred units		124,723			71,115

Equity
Stockholders’ equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2015 and December 31, 2014		221,932			221,932
Common stock, $0.01 par value 160,000 shares authorized, 99,590 and 100,928 issued and outstanding at June 30, 2015 and December 31, 2014, respectively (including 3,643 and 3,603 shares held in Treasury at June 30, 2015 and December 31, 2014, respectively)		1,033			1,010
Additional paid-in capital		5,570,746			5,289,479
Treasury stock at cost		(325,207	)		(320,471	)
Accumulated other comprehensive loss		(10,906	)		(6,980	)
Retained earnings		1,657,911			1,752,404
Total SL Green Realty Corp. stockholders’ equity		7,115,509			6,937,374
Noncontrolling interests in other partnerships		408,874			521,842
Total equity		7,524,383			7,459,216
Total liabilities and equity	$	17,266,958		$	17,096,587


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,
		2015			2014		2015		2014
FFO Reconciliation:
Net (loss) income attributable to SL Green common stockholders	$	(39,106	)	$	235,541	$	4,171	$	381,631
Add:
Depreciation and amortization		199,565			93,379		307,902		179,894
Discontinued operations depreciation adjustments		–			1,459		–		4,756
Joint venture depreciation and noncontrolling interest adjustments		4,435			8,161		13,057		21,148
Net income attributable to noncontrolling interests		5,049			10,488		12,719		16,707
Less:
Gain on sale of discontinued operations		–			114,735		12,983		114,735
Equity in net gain on sale of interest in unconsolidated joint venture/real estate		769			1,444		769		106,084
Purchase price fair value adjustment		–			71,446		–		71,446
Depreciation on non-rental real estate assets		500			503		1,025		1,017
Funds From Operations attributable to SL Green common stockholders and noncontrolling interests	$	168,674		$	160,900	$	323,072	$	310,854

		Consolidated Properties						SL Green’s share of Unconsolidated Joint Ventures						Combined
		Three Months Ended						Three Months Ended						Three Months Ended
		June 30,						June 30,						June 30,
Operating income and Same-store NOI Reconciliation:		2015			2014			2015			2014			2015			2014
(Loss) 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 and loss on early extinguishment of debt	$	(32,942	)	$	49,471		$	–		$	–

Equity in net income from unconsolidated joint ventures		2,994			8,619			2,994			8,619
Depreciation and amortization		199,565			93,379			15,819			14,928
Interest expense, net of interest income		75,746			77,870			18,259			15,427
Amortization of deferred financing costs		5,952			5,401			1,344			832
Loss on early extinguishment of debt		–			(1,028	)		–			–
Operating income	$	251,315		$	233,712		$	38,416		$	39,806

Marketing, general and administrative expense		23,200			23,872			–			–
Net operating income from discontinued operations		–			10,661			–			–
Transaction related costs		3,067			1,697			3			27

Non-building revenue		(47,353	)		(58,756	)		(6,361	)		(6,365	)
Equity in net income from unconsolidated joint ventures		(2,994	)		(8,619	)		–			–
Loss on early extinguishment of debt		–			1,028			–			1,787		$			$
Net operating income (NOI)		227,235			203,595			32,058			35,255		$	259,293		$	238,850


NOI from discontinued operations		–			(10,661	)		–			–			–			(10,661	)
NOI from other properties/affiliates		(34,755	)		(18,275	)		(9,190	)		(13,039	)		(43,945	)		(31,314	)
Same-Store NOI	$	192,480		$	174,659		$	22,868		$	22,216		$	215,348		$	196,875


Ground lease straight-line adjustment		400			400			–			–			400			400

Straight-line and free rent		(24,353	)		(13,278	)		(2,131	)		(2,062	)		(26,484	)		(15,340	)
Rental income – FAS 141		(5,197	)		(6,249	)		(258	)		(390	)		(5,455	)		(6,639	)
Same-store cash NOI	$	163,330		$	155,532		$	20,479		$	19,764		$	183,809		$	175,296

		Consolidated Properties						SL Green’s share of Unconsolidated Joint Ventures						Combined
		Six Months Ended						Six Months Ended						Six Months Ended
		June 30,						June 30,						June 30,
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 and loss on early extinguishment of debt	$	5,303		$	89,541		$	–		$	–

Equity in net income from unconsolidated joint ventures		7,024			14,748			7,024			14,748
Depreciation and amortization		307,902			179,894			29,967			35,085
Interest expense, net of interest income		151,553			154,048			33,514			34,130
Amortization of deferred financing costs		12,567			9,058			2,665			3,458
Loss on early extinguishment of debt		(49	)		(1,025	)		–			–
Operating income	$	484,300		$	446,264		$	73,170		$	87,421

Marketing, general and administrative expense		48,664			47,128			–			–
Net operating income from discontinued operations		488			24,599			–			–
Transaction related costs		4,210			4,171			10			100

Non-building revenue		(95,405	)		(123,259	)		(12,718	)		(10,170	)
Equity in net income from unconsolidated joint ventures		(7,024	)		(14,748	)		–			–
Loss on early extinguishment of debt		49			1,025			407			3,382		$			$
Net operating income (NOI)		435,282			385,180			60,869			80,733		$	496,151		$	465,913


NOI from discontinued operations		(488	)		(24,599	)		–			–			(488	)		(24,599	)
NOI from other properties/affiliates		(76,712	)		(23,777	)		(15,353	)		(36,951	)		(92,065	)		(60,728	)
Same-Store NOI	$	358,082		$	336,804		$	45,516		$	43,782		$	403,598		$	380,586


Ground lease straight-line adjustment		801			801			–			–			801			801

Straight-line and free rent		(37,291	)		(23,441	)		(4,279	)		(4,810	)		(41,570	)		(28,251	)
Rental income – FAS 141		(8,460	)		(12,235	)		(793	)		(854	)		(9,253	)		(13,089	)
Same-store cash NOI	$	313,132		$	301,929		$	40,444		$	38,118		$	353,576		$	340,047


SL GREEN REALTY CORP. SELECTED OPERATING DATA-UNAUDITED

	June 30,
	2015	2014
Manhattan Operating Data: ⁽¹⁾
Net rentable area at end of period (in 000’s)	22,009	21,905
Portfolio percentage leased at end of period	96.9%	94.2%
Same-Store percentage leased at end of period	96.5%	93.6%
Number of properties in operation	31	30

Office square feet where leases commenced during quarter (rentable)	573,432	314,938
Average mark-to-market percentage-office	16.5%	0.5%
Average starting cash rent per rentable square foot-office	$61.66	$54.18

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

The following table reconciles estimated earnings per share (diluted) to

FFO per share (diluted) for the year ending December 31, 2015.

	Year Ended December 31,
	2015		2015
Net income per share attributable to SL Green stockholders	$	1.93	$	1.97
Add:
Depreciation and amortization	5.43		5.43
Unconsolidated joint ventures depreciation and noncontrolling interests adjustments	0.28		0.28
Net income attributable to noncontrolling interests	0.23		0.23
Less:
Gain on sale of discontinued operations	1.54		1.54
Equity in net gain on sale of interest in unconsolidated joint venture / real estate	0.01		0.01
Depreciation and amortization on non-real estate assets	0.02		0.02
Funds from Operations per share attributable to SL Green common stockholders and noncontrolling interests	$	6.30	$	6.34

View source version on businesswire.com: http://www.businesswire.com/news/home/20150722006482/en/

Matt DiLiberto
Chief Financial Officer
(212) 594-2700

Source: SL Green Realty Corp.

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