NEWS

SL Green Realty Corp. Reports Second Quarter 2016 FFO of $3.41 Per Share before Transaction Costs; and EPS of $1.33 Per Share

NEW YORK–(BUSINESS WIRE)–

SL Green Realty Corp. (NYSE:SLG):

Financial and Operating Highlights

Second quarter 2016 FFO of $3.41 per share before transaction

related costs of $0.02 per share compared to second quarter 2015 FFO

of $1.65 per share before transaction related costs of $0.03 per

share. Second quarter 2016 FFO includes a lease termination fee of

$94.0 million, or $0.90 per share, and the write-off of accounting

related balances of $75.3 million, or $0.72 per share, related to the

early lease termination and sale of 388-390 Greenwich Street to

Citigroup, Inc. (“Citi”) as well as receipt of promote income of $10.8

million, or $0.10 per share, related to the sale of 33 Beekman Street.
Second quarter 2016 net income attributable to common stockholders

of $1.33 per share compared to second quarter 2015 net loss

attributable to common stockholders of $0.39 per share.
Combined same-store cash NOI increased 8.4 percent for the first

six months of 2016 as compared to the same period in the prior year.
Signed 50 Manhattan office leases covering 621,150 square feet

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

office leases was 16.1 percent higher in the second quarter than the

previously fully escalated rents on the same spaces inclusive of the

204,442 square foot expansion lease with Bloomberg at 919 Third

Avenue, which had a mark-to-market of 14.0 percent.
Signed 97 Manhattan office leases covering 1,470,736 square feet

during the first six months of 2016. The mark-to-market on signed

Manhattan office leases during the first six months of 2016 was 28.5

percent higher than the previously fully escalated rents on the same

spaces.
Signed 19 Suburban office leases covering 177,684 square feet

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

office leases was 2.5 percent higher in the second quarter than the

previous fully escalated rents on the same spaces.
Signed 46 Suburban office leases covering 422,479 square feet

during the first six months of 2016. The mark-to-market on signed

Suburban office leases during the first six months of 2016 was 5.6

percent higher than the previous fully escalated rents on the same

spaces.
Manhattan same-store occupancy, inclusive of leases signed but not

yet commenced, was 97.4 percent as of June 30, 2016 as compared to

97.1 percent as of June 30, 2015 and 97.4 percent as of March 31, 2016.

Investing Highlights

Closed on the previously announced sale of 388-390 Greenwich Street

to Citi for $2.0 billion, net of any unfunded tenant concessions, and

received a $94.0 million termination payment in connection with the

early termination of Citi’s lease at the property. The Company

recognized a gain on sale of the property of $206.5 million.
Together with our joint venture partner, closed on the previously

announced sale of the Pace University dormitory tower at 33 Beekman

Street for $196.0 million. The Company recognized a gain on the sale

of the property of $33.0 million.
Completed the acquisition of a 20 percent interest in the newly

completed, 1,176 unit “Sky” residential tower, located at 605 West

42nd Street, for a previously agreed upon purchase option valuation.
Entered into an agreement to sell 500 West Putnam Avenue in

Greenwich, Connecticut for a total gross asset valuation of $41.0

million. The Company closed on the sale in July and recognized cash

proceeds of $39.5 million.
Originated new debt and preferred equity investments totaling

$458.5 million in the second quarter, of which $120.5 million was

retained at a yield of 9.5 percent.

Financing Highlights

Together with our joint venture partners, closed on a $900.0

million refinancing of 280 Park Avenue. The new facility has a 3-year

term (subject to four 1-year extension options), carries a floating

interest rate of LIBOR plus 2.0 percent and replaces the previous

$721.0 million of indebtedness on the property that was set to mature

in June 2016.
In July, closed on the refinancing of the Company’s $300.0 million

debt and preferred equity liquidity facility, which provides for

favorable financing of the Company’s debt and preferred equity

portfolio. The new facility has a 2-year term with a 1-year extension

option.
In July, entered into $300.0 million of 7-year interest rate swaps

at a fixed rate of 1.14 percent, taking advantage of the current

favorable interest rate environment to lock in rates on our corporate

unsecured debt.

Summary

SL Green Realty Corp. (the “Company”) (NYSE: SLG) today reported funds

from operations, or FFO, for the quarter ended June 30, 2016 of $357.8

million, or $3.41 per share, before transaction related costs of $2.1

million, or $0.02 per share, as compared to FFO for the same period in

2015 of $171.7 million, or $1.65 per share, before transaction related

costs of $3.1 million, or $0.03 per share.

Second quarter 2016 FFO includes a lease termination fee of $94.0

million, or $0.90 per share, and a write-off of accounting related

balances of $75.3 million, of $0.72 per share, related to the early

lease termination and sale of 388-390 Greenwich Street to Citigroup,

Inc. (“Citi”) as well as a receipts of promote income of $10.8 million,

or $0.10 per share, related to the sale of 33 Beekman Street.

The Company also reported funds from operations, or FFO, for the six

month period ended June 30, 2016 of $550.9 million, or $5.27 per share,

before transaction related costs of $3.4 million, or $0.03 per share, as

compared to FFO for the same period in 2015 of $327.3 million, or $3.16

per share, before transaction related costs of $4.2 million, or $0.04

per share.

Net income attributable to common stockholders for the quarter ended

June 30, 2016 totaled $133.5 million, or $1.33 per share as compared to

net loss attributable to common stockholders of $39.1 million, or

$0.39 per share for the same quarter in 2015. Net income attributable to

common stockholders for the quarter ended June 30, 2016 includes $230.0

million, or $2.20 per share, of net gains recognized from the sale of

real estate as compared to $0.8 million, or $0.01 per share for the same

quarter in 2015.

Net income attributable to common stockholders for the six month period

ended June 30, 2016 totaled $156.7 million, or $1.56 per share as

compared to net income attributable to common stockholders of $4.2

million, or $0.04 per share for the same period in 2015. Net income

attributable to common stockholders for the six month period ended June

30, 2016 includes $253.7 million, or $2.43 per share, of net gains

recognized from the sale of real estate as compared to $13.8 million, or

$0.13 per share for the same period in 2015.

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

basis.

Operating and Leasing Activity

For the quarter ended June 30, 2016, the Company reported consolidated

revenues and operating income of $617.6 million and $451.1 million,

respectively, compared to $409.1 million and $251.3 million,

respectively, for the same period in 2015. For the six months ended June

30, 2016, the Company reported consolidated revenues and operating

income of $1.1 billion and $741.8 million, respectively, compared to

$805.4 million and $484.3 million, respectively, for the same period in

2015.

Same-store cash NOI on a combined basis increased by 6.5 percent to

$186.1 million for the quarter as compared to the same period in 2015.

For the quarter ended June 30, 2016, consolidated property same-store

cash NOI increased by 6.1 percent to $166.3 million and unconsolidated

joint venture property same-store cash NOI increased by 9.3 percent to

$19.9 million, as compared to the same period in 2015.

Same-store cash NOI on a combined basis increased by 8.4 percent to

$362.2 million for the six months ended June 30, 2016 as compared to the

same period in 2015. For the six months ended June 30, 2016,

consolidated property same-store cash NOI increased by 8.2 percent to

$322.9 million and unconsolidated joint venture property same-store cash

NOI increased by 9.4 percent to $39.3 million, as compared to the same

period in 2015.

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

Manhattan portfolio totaling 621,150 square feet. Eight leases

comprising 35,130 square feet represented office leases that replaced

previous vacancy. Forty-two leases comprising 586,020 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 $64.75 per rentable square foot, representing a 16.1

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 6.8 years and average tenant

concessions were 2.3 months of free rent with a tenant improvement

allowance of $25.93 per rentable square foot.

During the first six months of 2016, the Company signed 97 office leases

in its Manhattan portfolio totaling 1,470,736 square feet. Sixteen

leases comprising 162,558 square feet represented office leases that

replaced previous vacancy. Eighty-one leases comprising 1,308,178 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 $68.33 per rentable square foot, representing a 28.5

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 first six months of 2016 was 9.6 years and average tenant

concessions were 3.5 months of free rent with a tenant improvement

allowance of $37.93 per rentable square foot.

Manhattan same-store occupancy was 97.4 percent at June 30, 2016,

inclusive of 194,733 square feet of leases signed but not yet commenced

as compared to 97.1 percent at June 30, 2015 and 97.4 percent at March

31, 2016.

During the second quarter, the Company signed 19 office leases in its

Suburban portfolio totaling 177,684 square feet. Eight leases comprising

80,761 square feet represented office leases that replaced previous

vacancy. Eleven leases comprising the remaining 96,923 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 $40.24 per rentable square foot, representing a 2.5

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 second quarter was 8.5 years and average tenant

concessions were 7.2 months of free rent with a tenant improvement

allowance of $33.79 per rentable square foot.

During the first six months of 2016, the Company signed 46 office leases

in its Suburban portfolio totaling 422,479 square feet. Seventeen leases

comprising 142,085 square feet represented office leases that replaced

previous vacancy. Twenty nine leases comprising the remaining 280,394

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 $39.84 per rentable square foot, representing a 5.6

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 first six months of 2016 was 7.1 years and average tenant

concessions were 6.1 months of free rent with a tenant improvement

allowance of $29.92 per rentable square foot.

Same-store occupancy for the Company’s Suburban portfolio was 83.0

percent at June 30, 2016, inclusive of 38,815 square feet of leases

signed but not yet commenced as compared to 83.6 percent at June 30,

2015 and 84.0 percent at March 31, 2016.

Significant leases that were signed during the second quarter included:

Expansion on 204,442 square feet with Bloomberg at 919 Third Avenue;
Renewal and expansion on 114,709 square feet with New York Life

Insurance Company at 420 Lexington Avenue, bringing the remaining

lease term to 14.3 years;
Renewal on 47,278 square feet with Citi at 750 Washington Boulevard in

Stamford, Connecticut, bringing the remaining lease term to 11.5

years; and
Renewal on 31,514 square feet with Morgan Stanley Smith Barney at

Jericho Plaza in Jericho, New York, bringing the remaining lease term

to 10.3 years.

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

ended June 30, 2016 were $24.5 million, or 3.6 percent of total combined

revenues and an annualized 50 basis points of total combined assets.

Real Estate Investment Activity

In June, the Company closed on the previously announced sale of 388-390

Greenwich Street to an affiliate of Citigroup, Inc. (“Citi”) for $2.0

billion, net of $242.5 million of unfunded tenant concessions.

Separately, the Company received a $94.0 million payment from Citi for

the early termination of Citi’s lease at 388-390 Greenwich Street.

Proceeds from the sale and the termination payment were used by the

Company to repay $350.0 million of its corporate credit facility and

retire the $1.45 billion mortgage on the property, resulting in

reduction of Company indebtedness of approximately $1.8 billion. The

Company recognized a gain on sale of $206.5 million.

In May, the Company and its joint venture partner, the Naftali Group,

closed on the previously announced sale of the Pace University dormitory

tower at 33 Beekman Street for a gross sale price of $196.0 million or

approximately $1,199 per square foot. The Company recognized a gain on

sale of $33.0 million.

In April, the Company completed the acquisition of a 20 percent interest

in the newly completed, 1,176 unit “Sky” residential tower, located at

605 West 42nd Street. The Company was granted an option to purchase the

interest at an agreed upon valuation in July 2014 when it originated

a $50.0 million mezzanine loan on the property to The Moinian Group, the

project’s developer. The mezzanine loan was repaid prior to the closing

of the Company’s acquisition.

In April, the Company reached an agreement to sell 500 West Putnam

Avenue, a 121,500-square-foot office property located in Greenwich,

Connecticut, for a gross sale price of $41.0 million, or $337 per square

foot. The transaction closed in July and the Company recognized net

proceeds of $39.5 million.

Debt and Preferred Equity Investment Activity

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

portfolio totaled $1.4 billion at June 30, 2016 at a weighted average

current yield of 9.4 percent, excluding $0.3 billion of debt and

preferred equity investments that are included in other balance sheet

line items for accounting purposes. During the second quarter, the

Company originated new debt and preferred equity investments totaling

$458.5 million, of which $120.5 million was retained and $103.2 million

was funded, at a weighted average current yield of 9.5 percent. During

the second quarter, the Company recorded $147.7 million of principal

reductions from investments that were repaid.

Financing Activity

In July, the Company signed a final and comprehensive term sheet for a

$1.5 billion construction loan facility with Wells Fargo Bank, N.A., The

Bank of New York Mellon, JP Morgan Chase Bank, Bank of China New York

Branch and TD Bank, N.A. for the development of One Vanderbilt Avenue.

Commitment and closing are expected to occur within the third quarter of

2016.

In July, the Company closed on a refinancing of our $300 million debt

and preferred equity liquidity facility. The facility, which is secured

by select assets in the Company’s debt portfolio, has a 2-year term with

a 1-year extension option and bears interest ranging from 225 and 400

basis points over LIBOR, depending on the pledged collateral and advance

rate. The new facility is favorable, providing higher advance rates than

the previous facility.

In July, the Company entered into $300.0 million of 7-year interest rate

swaps with a fixed rate of 1.14 percent, taking advantage of the current

favorable interest environment to lock in rates on our corporate

unsecured debt.

In May, the Company, along with its joint venture partner, Vornado

Realty Trust, successfully closed on the refinancing of 280 Park Avenue.

The new $900.0 million facility has a 3-year term (subject to four

1-year extension options), carries a floating interest rate of LIBOR

plus 2.00 percent, and replaces the previous $721.0 million

of indebtedness on the property that was set to mature in June 2016. The

Company, which owns a 50.0 percent interest in the asset, received

approximately $75.9 million in net proceeds from the refinancing,

inclusive of $30.0 million which was held at the property for future

operating and capital costs.

Dividends

During the second quarter of 2016, the Company declared quarterly

dividends on its outstanding common and preferred stock as follows:

$0.72 per share of common stock, which was paid on July 15, 2016 to

shareholders of record on the close of business on June 30, 2016; and
$0.40625 per share on the Company’s 6.50% Series I Cumulative

Redeemable Preferred Stock for the period April 15, 2016 through and

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

shareholders of record on the close of business on June 30, 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, July 21, 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”. The conference may also be accessed

by dialing toll-free (877) 312-8765 or international (419) 386-0002, and

using passcode 38223940.

A replay of the call will be available 7 days after the call by dialing

(855) 859-2056 using pass-code 38223940. A webcast replay will also be

available in the Investors section of the SL Green Realty Corp. website

at https://slgreen.com/

under “Event Calendar & 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 June 30, 2016, SL Green

held interests in 119 Manhattan buildings totaling 44.7 million square

feet. This included ownership interests in 28.1 million square feet of

commercial buildings and debt and preferred equity investments secured

by 16.7 million square feet of buildings. In addition, SL Green held

ownership interests in 31 suburban buildings totaling 4.9 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 OPERATIONS
(unaudited and in thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Revenues:
Rental revenue, net	$	416,809		$	304,226		$	762,416		$	607,555
Escalation and reimbursement	48,616			41,407			94,227			82,376
Investment income	44,214			45,191			98,951			87,260
Other income	107,975			18,250			117,464			28,182
Total revenues	617,614			409,074			1,073,058			805,373
Expenses:
Operating expenses, including related party expenses of $6,667 and $10,129 in 2016 and $4,472 and $8,189 in 2015.	75,324			70,114			154,844			146,891
Real estate taxes	62,124			56,286			123,798			112,009
Ground rent	8,307			8,086			16,615			16,274
Interest expense, net of interest income	89,089			75,746			183,761			151,553
Amortization of deferred financing costs	7,433			5,952			15,365			12,567
Depreciation and amortization	425,042			199,565			604,350			307,902
Transaction related costs	2,115			3,067			3,394			4,210
Marketing, general and administrative	24,484			23,200			48,516			48,664
Total expenses	693,918			442,016			1,150,643			800,070
(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, gain on sale of real estate, loss on sale of marketable securities and loss on early extinguishment of debt	(76,304		)	(32,942		)	(77,585		)	5,303
Equity in net income from unconsolidated joint ventures	5,841			2,994			15,937			7,024
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	33,448			769			43,363			769
Gain on sale of real estate, net	196,580			—			210,353			—
Depreciable real estate reserves	(10,387		)	—			(10,387		)	—
Loss on sale of marketable securities	(83		)	—			(83		)	—
Loss on early extinguishment of debt	—			—			—			(49		)
Income from continuing operations	149,095			(29,179		)	181,598			13,047
Net income from discontinued operations	—			—			—			427
Gain on sale of discontinued operations							—			12,983
Net income (loss)	149,095			(29,179		)	181,598			26,457
Net income (loss) attributable to noncontrolling interests in the Operating Partnership	(5,586		)	1,577			(6,508		)	(166		)
Net income attributable to noncontrolling interests in other partnerships	(3,435		)	(6,626		)	(5,409		)	(12,553		)
Preferred unit distributions	(2,880		)	(1,140		)	(5,528		)	(2,091		)
Net income attributable to SL Green	137,194			(35,368		)	164,153			11,647
Perpetual preferred stock dividends	(3,737		)	(3,738		)	(7,475		)	(7,476		)
Net income (loss) attributable to SL Green common stockholders	$	133,457		$	(39,106	)	$	156,678		$	4,171

Earnings Per Share (EPS)
Net income (loss) per share (Basic)	$	1.33		$	(0.39	)	$	1.57		$	0.04
Net income (loss) per share (Diluted)	$	1.33		$	(0.39	)	$	1.56		$	0.04

Funds From Operations (FFO)
FFO per share (Basic)	$	3.40		$	1.63		$	5.25		$	3.14
FFO per share (Diluted)	$	3.39		$	1.62		$	5.24		$	3.12

Basic ownership interest
Weighted average REIT common shares for net income per share	100,134			99,579			100,093			98,994
Weighted average partnership units held by noncontrolling interests	4,342			3,908			4,158			3,936
Basic weighted average shares and units outstanding	104,476			103,487			104,251			102,930

Diluted ownership interest
Weighted average REIT common share and common share equivalents	100,450			100,038			100,375			99,487
Weighted average partnership units held by noncontrolling interests	4,342			3,908			4,158			3,936
Diluted weighted average shares and units outstanding	104,792			103,946			104,533			103,423


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

	June 30,			December 31,
	2016			2015
Assets	(Unaudited)
Commercial real estate properties, at cost:
Land and land interests	$	4,108,821		$	4,779,159
Building and improvements	9,362,614			10,423,739
Building leasehold and improvements	1,435,255			1,431,259
Properties under capital lease	47,445			47,445
	14,954,135			16,681,602
Less accumulated depreciation	(2,166,059		)	(2,060,706		)
	12,788,076			14,620,896
Assets held for sale	39,642			34,981
Cash and cash equivalents	276,226			255,399
Restricted cash	166,905			233,578
Investment in marketable securities	39,339			45,138
Tenant and other receivables, net of allowance of $18,728 and $17,618 in 2016 and 2015, respectively	57,551			63,491
Related party receivables	13,059			10,650
Deferred rents receivable, net of allowance of $22,917 and $21,730 in 2016 and 2015, respectively	443,981			498,776
Debt and preferred equity investments, net of discounts and deferred origination fees of $14,329 and $18,759 in 2016 and 2015, respectively	1,357,181			1,670,020
Investments in unconsolidated joint ventures	1,126,486			1,203,858
Deferred costs, net	256,303			239,920
Other assets	979,474			850,719
Total assets	$	17,544,223		$	19,727,426

Liabilities
Mortgages and other loans payable	$	5,608,400		$	6,992,504
Revolving credit facility	285,000			994,000
Term loan and senior unsecured notes	2,070,341			2,319,244
Deferred financing costs, net	(101,521		)	(130,515		)
Total debt, net of deferred financing costs	7,862,220			10,175,233
Accrued interest payable	36,378			42,406
Other liabilities	243,011			168,477
Accounts payable and accrued expenses	189,690			196,213
Deferred revenue	384,145			399,102
Capitalized lease obligations	41,751			41,360
Deferred land leases payable	2,236			1,783
Dividend and distributions payable	80,555			79,790
Security deposits	68,199			68,023
Liabilities related to assets held for sale	7			29,000
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities	100,000			100,000
Total liabilities	9,008,192			11,301,387

Commitments and contingencies				—
Noncontrolling interest in the Operating Partnership	486,452			424,206
Preferred units	302,460			282,516

Equity
Stockholders’ equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2016 and December 31, 2015	221,932			221,932
Common stock, $0.01 par value 160,000 shares authorized, 100,251 and 100,063 issued and outstanding at June 30, 2016
and December 31, 2015, respectively (including 87 shares held in Treasury at June 30, 2016 and December 31, 2015)	1,003			1,001
Additional paid-in capital	5,466,593			5,439,735
Treasury stock at cost	(10,000		)	(10,000		)
Accumulated other comprehensive loss	(16,558		)	(8,749		)
Retained earnings	1,655,320			1,643,546
Total SL Green Realty Corp. stockholders’ equity	7,318,290			7,287,465
Noncontrolling interests in other partnerships	428,829			431,852
Total equity	7,747,119			7,719,317
Total liabilities and equity	$	17,544,223		$	19,727,426


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

	Three Months Ended
	June 30,
	2016			2015
FFO Reconciliation:
Net income attributable to SL Green common stockholders	$	133,457		$	(39,106	)
Add:
Depreciation and amortization	425,042			199,565
Joint venture depreciation and noncontrolling interest adjustments	8,328			4,435
Net income attributable to noncontrolling interests	9,021			5,049
Less:
Gain on sale of real estate and discontinued operations, net	196,580			—
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate	33,448			769
Depreciation on non-rental real estate assets	500			500
Depreciable real estate reserve	(10,387		)	—
Funds From Operations attributable to SL Green common stockholders and noncontrolling interests	$	355,707		$	168,674


	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:	2016			2015			2016			2015			2016			2015
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	$	(76,304	)	$	(32,942	)

Equity in net income from unconsolidated joint ventures	5,841			2,994			5,841			2,994
Depreciation and amortization	425,042			199,565			14,910			15,494
Interest expense, net of interest income	89,089			75,746			17,391			18,259
Amortization of deferred financing costs	7,433			5,952			2,136			1,344
Loss on early extinguishment of debt	—			—			—			—
Operating income	451,109			251,315			40,278			38,091

Marketing, general and administrative expense	24,484			23,200			—			—
Net operating income from discontinued operations	—			—			—			—
Transaction related costs, net	2,115			3,067			—			3
Non-building revenue	(43,208		)	(47,353		)	(19		)	546
Equity in net income from unconsolidated joint ventures	(5,841		)	(2,994		)	—			—
Loss on early extinguishment of debt	—			—			—			—
Net operating income (NOI)	$	428,651		$	227,235		$	40,259		$	38,640		468,910			265,875


NOI from discontinued operations	—			—			—			—			—			—
NOI from other properties/affiliates	(250,512		)	(45,719		)	(18,420		)	(18,261		)	(268,932		)	(63,980		)
Same-Store NOI	178,139			181,516			21,839			20,379			199,978			201,895


Ground lease straight-line adjustment	467			472			—			—			467			472

Straight-line and free rent	(8,544		)	(20,317		)	(1,589		)	(1,777		)	(10,133		)	(22,094		)
Rental income – FAS 141	(3,792		)	(4,996		)	(391		)	(439		)	(4,183		)	(5,435		)
Same-store cash NOI	$	166,270		$	156,675		$	19,859		$	18,163		$	186,129		$	174,838


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

	Six Months Ended
	June 30,
	2016			2015
FFO Reconciliation:
Net income attributable to SL Green common stockholders	$	156,678		$	4,171
Add:
Depreciation and amortization	604,350			307,902
Joint venture depreciation and noncontrolling interest adjustments	18,842			13,057
Net income attributable to noncontrolling interests	11,917			12,719
Less:
Gain on sale of real estate and discontinued operations, net	210,353			12,983
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate	43,363			769
Depreciation on non-rental real estate assets	996			1,025
Depreciable real estate reserve	(10,387		)	—
Funds From Operations attributable to SL Green common stockholders and noncontrolling interests	$	547,462		$	323,072


	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:	2016			2015			2016			2015			2016			2015
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	$	(77,585	)	$	5,303

Equity in net income from unconsolidated joint ventures	15,937			7,024			15,937			7,024
Depreciation and amortization	604,350			307,902			29,813			29,354
Interest expense, net of interest income	183,761			151,553			34,650			33,514
Amortization of deferred financing costs	15,365			12,567			3,432			2,665
Loss on early extinguishment of debt	—			(49		)	972			407
Operating income	741,828			484,300			84,804			72,964

Marketing, general and administrative expense	48,516			48,664			—			—
Net operating income from discontinued operations	—			427			—			—
Transaction related costs, net	3,394			4,210			—			10
Non-building revenue	(102,383		)	(95,405		)	1,098			1,127
Equity in net income from unconsolidated joint ventures	(15,937		)	(7,024		)	—			—
Loss on early extinguishment of debt	—			49			(972		)	(407		)
Net operating income (NOI)	$	675,418		$	435,221		$	84,930		$	73,694		760,348			508,915


NOI from discontinued operations	—			—			—			—			—			—
NOI from other properties/affiliates	(329,874		)	(101,055		)	(41,296		)	(33,628		)	(371,170		)	(134,683		)
Same-Store NOI	345,544			334,166			43,634			40,066			389,178			374,232


Ground lease straight-line adjustment	935			944			—			—			935			944

Straight-line and free rent	(16,050		)	(28,974		)	(3,595		)	(3,218		)	(19,645		)	(32,192		)
Rental income – FAS 141	(7,532		)	(7,815		)	(782		)	(963		)	(8,314		)	(8,778		)
Same-store cash NOI	$	322,897		$	298,321		$	39,257		$	35,885		$	362,154		$	334,206


SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED

	June 30,
	2016			2015
Manhattan Operating Data: ⁽¹⁾
Net rentable area at end of period (in 000’s)	22,613			22,009
Portfolio percentage leased at end of period	95.6		%	94.9		%
Same-Store percentage leased at end of period	96.5		%	96.6		%
Number of properties in operation	31			31

Office square feet where leases commenced during quarter ended (rentable)	698,753			573,432
Average mark-to-market percentage-office	11.8		%	16.5		%
Average starting cash rent per rentable square foot-office	$	67.55		$	61.66

(1)

Includes wholly-owned and joint venture properties.

SLG-EARN

View source version on businesswire.com: http://www.businesswire.com/news/home/20160720006484/en/

SL Green Realty Corp.
Matt DiLiberto, (212) 594-2700
Chief

Financial Officer

Source: SL Green Realty Corp.

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