NEWS

SL Green Realty Corp. Reports Third Quarter 2015 FFO of $1.71 Per Share before Transaction Costs; and EPS of $1.64 Per Share

NEW YORK–(BUSINESS WIRE)–

SL Green Realty Corp. (NYSE:SLG):

Financial and Operating Highlights

Third quarter 2015 FFO of $1.71 per share before transaction

related costs of $0.06 per share compared to third quarter 2014 FFO of

$1.55 per share before non-recurring charges related to the

refinancing of 420 Lexington Avenue of $0.24 per share and transaction

related costs of $0.03 per share. Current year FFO includes a tax

benefit of $0.05 per share related to the Company’s taxable REIT

subsidiary.
Third quarter 2015 net income attributable to common stockholders

of $1.64 per share compared to third quarter 2014 net income

attributable to common stockholders of $0.68 per share.
Combined same-store cash NOI increased 6.5 percent for the third

quarter and 4.6 percent for the first nine months as compared to the

same periods in the prior year.
Signed 51 Manhattan office leases covering 533,697 square feet

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

office leases was 15.6 percent higher in the third quarter than the

previously fully escalated rents on the same spaces.
Signed 23 Suburban office leases covering 131,366 square feet

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

leases was 3.8 percent lower in the third 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 September 30, 2015 to 97.3 percent

as compared to 95.3 percent as of September 30, 2014 and 97.0 percent

as of June 30, 2015.

Investing Highlights

Completed the acquisition of 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.
Closed on the previously announced sales of Tower 45, the Meadows

Office Complex, 315 West 36^th Street and an

interest in 131-137 Spring Street for total gross asset valuations of

$878.9 million. The Company recognized cash proceeds from these

transactions in excess of $440.0 million and total gains on sale of

$174.4 million.
Entered into separate agreements to sell 570-574 Fifth Avenue, 885

Third Avenue, 33 Beekman Street and 140-150 Grand Avenue for total

gross asset valuations of $806.4 million. The Company expects to

recognize cash proceeds upon closing of these transactions in excess

of $230.0 million.
Completed the acquisition of a 90.0 percent interest in The SoHo

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

$255.0 million.
Completed the acquisition of two mixed-use properties located at

187 Broadway and 5-7 Dey Street in Downtown Manhattan for $63.7

million.
Originated new debt and preferred equity investments totaling $78.0

million in the third quarter, of which $48.0 million was retained.

Financing Highlights

Expanded the Company’s unsecured corporate credit facility by $500

million, to $2.533 billion.
Joined the Federal Home Loan Bank of New York and obtained access

to a wide variety of flexible, low-cost funding options.

Summary

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

or FFO, for the quarter ended September 30, 2015 of $177.4 million, or

$1.71 per share, before transaction related costs of $5.9 million, or

$0.06 per share, as compared to FFO for the same period in 2014 of

$154.7 million, or $1.55 per share, before transaction related costs of

$2.7 million, or $0.03 per share, and a non-recurring charge related to

the refinancing of 420 Lexington Avenue of $24.5 million, or $0.24 per

share. FFO for the current quarter includes a tax benefit of $5.3

million, or $0.05 per share, related to the Company’s taxable REIT

subsidiary.

Net income attributable to common stockholders for the quarter ended

September 30, 2015 totaled $163.7 million, or $1.64 per share, compared

to net income attributable to common stockholders of $64.7

million, or $0.68 per share, for the same quarter in 2014. Net income

attributable to common stockholders for the current quarter includes

$155.8 million, or $1.50 per share, of net gains recognized from the

sale of real estate and $28.4 million, or $0.27 per share, of

accelerated depreciation expense related to one of the properties that

comprise the One Vanderbilt development site.

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

basis.

Operating and Leasing Activity

For the quarter ended September 30, 2015, the Company reported

consolidated revenues and operating income of $432.1 million and $258.5

million, respectively, compared to $390.3 million and $211.1 million,

respectively, for the same period in 2014.

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

$178.6 million and by 4.6 percent to $522.3 million for the three and

nine months ended September 30, 2015, respectively, as compared to the

same periods in 2014. For the three months ended September 30, 2015,

consolidated property same-store cash NOI increased by 6.3 percent to

$157.7 million and unconsolidated joint venture property same-store cash

NOI increased by 8.0 percent to $20.9 million, as compared to the same

period in 2014. For the nine months ended September 30, 2015,

consolidated property same-store cash NOI increased by 4.2 percent to

$462.0 million and unconsolidated joint venture property same-store cash

NOI increased by 7.6 percent to $60.3 million, as compared to the same

period in 2014.

During the third quarter, the Company signed 51 office leases in its

Manhattan portfolio totaling 533,697 square feet. Thirteen leases

comprising 144,936 square feet represented office leases that replaced

previous vacancy. Thirty-eight leases comprising 388,761 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 $71.60 per rentable square foot, representing a 15.6

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 third quarter was 9.0 years and average tenant concessions

were 6.2 months of free rent with a tenant improvement allowance of

$49.68 per rentable square foot.

During the first nine months of 2015, the Company signed 145 office

leases in its Manhattan portfolio totaling 1,839,535 square feet.

Forty-five leases comprising 766,127 square feet represented office

leases that replaced previous vacancy. One hundred leases comprising

1,073,408 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 $65.74 per rentable square foot,

representing a 13.8 percent increase over the previously fully escalated

rents on the same office spaces.

Manhattan same-store occupancy increased to 97.3 percent at September

30, 2015, inclusive of 143,757 square feet of leases signed but not yet

commenced, as compared to 95.3 percent at September 30, 2014 and 97.0

percent at June 30, 2015.

During the third quarter, the Company signed 23 office leases in its

Suburban portfolio totaling 131,366 square feet. Nine leases comprising

33,595 square feet represented office leases that replaced previous

vacancy. Fourteen leases comprising the remaining 97,771 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 $29.58 per rentable square foot, representing a 3.8

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 third quarter was 7.2 years and average tenant concessions

were 5.8 months of free rent with a tenant improvement allowance of

$31.37 per rentable square foot.

During the first nine months of 2015, the Company signed 88 office

leases in its Suburban portfolio totaling 546,044 square feet.

Twenty-nine leases comprising 164,924 square feet represented office

leases that replaced previous vacancy. Fifty-nine leases comprising

381,120 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 $32.92 per rentable square foot,

representing a 3.6 percent decrease over the previously fully escalated

rents on the same office spaces.

Same-store occupancy for the Company’s Suburban portfolio was 81.6

percent at September 30, 2015, inclusive of 79,091 square feet of leases

signed but not yet commenced, as compared to 81.5 percent at September

30, 2014 and 82.8 percent at June 30, 2015.

In October, the Company signed a new lease with Fir Tree, Inc., a

prominent hedge fund, at 55 West 46^th Street, also known as

Tower 46, for 31,126 square feet with a term of 10.5 years. This lease

marks the first significant lease following the Company’s successful new

marketing campaign, undertaken since acquisition of the property. The

new headquarter’s lease covers the entire 29^th and part of

the 28^th floors of the newly-constructed office building.

Significant leases that were signed during the third quarter included:

Early renewal and expansion for 103,515 square feet with Pandora

Media, Inc. at 125 Park Avenue, extending the remaining lease term to

11.0 years;
New lease for 42,849 square feet with New Advisory, LP at 280 Park

Avenue for 11.0 years;
New lease for 41,868 square feet with Leukemia Lymphoma Society at

1100 King Street – 3 International Drive, Rye Brook, New York, for

15.0 years;
New lease for 40,543 square feet with IMG Worldwide, Inc. at 304 Park

Avenue South for 12.3 years;
Early renewal and expansion for 38,885 square feet with Harvest

Partners, L.P. at 280 Park Avenue, extending the remaining lease term

to 13.2 years;
New lease for 34,640 square feet with Berkeley Research Group, LLC at

810 Seventh Avenue for 7.3 years;
New lease for 24,928 square feet with Metro-North Commuter Railroad at

420 Lexington Avenue for 19.0 years;
New lease for 22,931 square feet with Medley Capital LLC at 280 Park

Avenue for 7.8 years; and
Early renewal for 21,981 square feet with Teknion LLC at 641 Sixth

Avenue, extending the remaining lease term to 11.0 years.

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

ended September 30, 2015 were $23.5 million, or 4.8 percent of total

revenues and an annualized 44 basis points of total assets including the

Company’s share of joint venture revenues and assets.

Real Estate Investment Activity

In August, the Company completed the acquisition of Eleven Madison

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

associated with lease stipulated improvements to the property. The

acquisition was financed at closing with a $1.4 billion 10-year,

interest only, fixed rate mortgage financing carrying a per annum

interest rate of 3.838 percent.

From the beginning of the third quarter to date, the Company has sold 12

properties, as discussed below, at a total gross asset valuation of $1.7

billion, that will generate cash proceeds to the Company in excess of

$670.0 million. The blended cap rate on the sales of Manhattan

properties was 3.3 percent. These transactions further the real estate

disposition and reinvestment strategy the Company outlined in

conjunction with the acquisition of Eleven Madison Avenue.

In September, the Company closed on the sale of Tower 45, a Midtown

Manhattan office building located at 120 West 45^th Street,

for $365 million or $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. The Company recognized a gain on sale of the property of

$58.6 million.
In July, the Company formed 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 subsequently acquired 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

valued the property at $277.8 million, or $3,805 per square foot, and

the Company recognized a gain on sale of the property of $101.1

million.
In September, the Company closed on the sale of its interest in the

commercial condominium located at 315 West 36th Street, at a gross

asset valuation of $115 million or $779 per square foot. The Company

acquired its interest in the property in late 2012 at a gross asset

valuation of $45 million. The Company recognized a gain on sale of the

property of $16.3 million.
In August, the Company, together with its joint venture partner,

closed on the sale of the Meadows Office Complex, a two-building

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

million or $201 per square foot. The Company owned a 50 percent joint

venture interest in the property.
In September, the Company reached an agreement to sell two Fifth

Avenue retail development sites to a single buyer for $125.4

million or $13,690 per zoning square foot. The sites, located at 570

Fifth Avenue and 574 Fifth Avenue, were acquired by the Company

in November 2013 for a total of $78.7 million. The Company

subsequently vacated the tenants in the existing buildings in

preparation for a comprehensive retail development. The transaction is

expected to be completed in the fourth quarter of 2015, subject to

customary closing conditions.
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 885 Third Avenue 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 a preferred equity position. The sale, executed at

a capitalization rate of 3.8%, will generate net proceeds to the

Company of approximately $45 million, after giving consideration to

the retained preferred equity interest 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 fourth quarter of 2015, 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 for a gross sale price of $196 million. The Company owns the

property in a joint venture. 33 Beekman 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, executed at a capitalization rate

of 3.9%, 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.
In October, the Company reached an agreement to sell the properties at

140-150 Grand Street in White Plains, New York for $32.0 million. The

transaction is expected to be completed in the fourth quarter of 2015,

subject to customary closing conditions.
In July, the Company closed on the acquisition of a 90.0 percent

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

asset valuation of $255.0 million. 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.
In August, the Company closed on the acquisition of 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.

Debt and Preferred Equity Investment Activity

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

portfolio totaled $1.5 billion at September 30, 2015. During the third

quarter, the Company originated new debt and preferred equity

investments totaling $78.0 million, of which $48.0 million was retained

and $46.5 million was funded, at a weighted average current yield of 7.2

percent, and recorded $262.3 million of principal reductions from

investments that were sold or repaid. During the nine months ended

September 30, 2015, the Company originated and retained new debt and

preferred equity investments totaling $506.2 million at a weighted

average current yield of 9.8 percent. As of September 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 third quarter of 10.1 percent.

Financing Activity

In August, the Company expanded its unsecured corporate credit facility

by $500 million, to $2.533 billion. The revolving line of credit portion

of the facility, which matures in March 2020, has been increased by $400

million to $1.6 billion and the term loan portion of the facility, which

matures in June 2019, has been increased by $100 million to $933 million.

In September, the Company announced that Belmont Insurance

Company (“Belmont”), a New York licensed captive insurance company, its

wholly-owned subsidiary, became a member of the Federal Home Loan Bank

of New York (“FHLBNY”). Belmont is the first captive insurance company

to gain membership in the FHLBNY cooperative. Members have access to a

wide variety of flexible, low-cost funding through FHLBNY’s credit

products, enabling members to customize advances, interest rates and

match asset and liability terms. Eligible collateral to pledge to FHLBNY

includes residential, multi-family and commercial mortgage loans,

mortgage backed securities, and US Treasury and Agency securities.

Dividends

During the third 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 October 14, 2015 to

shareholders of record on the close of business on September 30, 2015;

and
$0.40625 per share on the Company’s 6.50% Series I Cumulative

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

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

shareholders of record on the close of business on September 30, 2015,

and reflects the regular quarterly dividend, which is the equivalent

of an annualized dividend of $1.625 per share.

Annual Institutional Investor Conference

The Company will host its Annual Institutional Investor Conference on

Monday, December 7, 2015 in New York City. For more information on the

Conference, please email SLG2015@slgreen.com.

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, October 22, 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 October 30, 2015 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 September 30, 2015, SL

Green held interests in 121 Manhattan buildings totaling 43.2 million

square feet. This included ownership interests in 30.6 million square

feet of commercial buildings and debt and preferred equity investments

secured by 12.6 million square feet of buildings. In addition to its

Manhattan investments, SL Green held ownership interests in 35 suburban

buildings totaling 5.3 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 September 30,						Nine Months Ended September 30,
		2015			2014			2015			2014
Revenues:
Rental revenue, net	$	318,465		$	291,293		$	926,020		$	826,877
Escalation and reimbursement		48,254			43,826			130,630			120,209
Investment income		49,328			43,969			136,588			137,767
Other income		16,019			11,186			44,201			48,498
Total revenues		432,066			390,274			1,237,439			1,133,351
Expenses:
Operating expenses, including related party expenses of $5,238 and $13,415 in 2015 and $5,104 and $13,183 in 2014		78,648			72,111			225,539			211,118
Real estate taxes		61,009			55,548			173,018			159,702
Ground rent		8,252			8,088			24,526			24,161
Interest expense, net of interest income		84,141			82,376			235,694			236,424
Amortization of deferred financing costs		7,160			6,679			19,727			15,737
Depreciation and amortization		146,185			94,443			454,087			274,337
Transaction related costs		5,829			2,383			10,039			6,554
Marketing, general and administrative		23,475			22,649			72,139			69,778
Total expenses		414,699			344,277			1,214,769			997,811
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		17,367			45,997			22,670			135,540
Equity in net income from unconsolidated joint ventures		3,627			6,034			10,651			20,781
Equity in net gain on sale of interest in unconsolidated joint venture/real estate		15,281			16,496			16,050			122,580
Purchase price fair value adjustment		–			(4,000	)		–			67,446
Gain on sale of real estate		159,704			–			159,704			–
Depreciable real estate reserves		(19,226	)		–			(19,226	)		–
Loss on early extinguishment of debt		–			(24,475	)		(49	)		(25,500	)
Income from continuing operations		176,753			40,052			189,800			320,847
Net income from discontinued operations		–			4,035			427			15,449
Gain on sale of discontinued operations		–			29,507			12,983			144,242
Net income		176,753			73,594			203,210			480,538
Net income attributable to noncontrolling interests in the Operating Partnership		(6,468	)		(2,636	)		(6,635	)		(16,010	)
Net income attributable to noncontrolling interests in other partnerships		(664	)		(1,712	)		(13,216	)		(5,045	)
Preferred unit distributions		(2,225	)		(820	)		(4,316	)		(1,950	)
Net income attributable to SL Green		167,396			68,426			179,043			457,533
Perpetual preferred stock dividends		(3,738	)		(3,738	)		(11,214	)		(11,214	)
Net income attributable to SL Green common stockholders	$	163,658		$	64,688		$	167,829		$	446,319

Earnings Per Share (EPS)
Net income per share (Basic)	$	1.64		$	0.68		$	1.69		$	4.68
Net income per share (Diluted)	$	1.64		$	0.68		$	1.68		$	4.66

Funds From Operations (FFO)
FFO per share (Basic)	$	1.66		$	1.28		$	4.80		$	4.43
FFO per share (Diluted)	$	1.65		$	1.28		$	4.77		$	4.41

Basic ownership interest
Weighted average REIT common shares for net income per share		99,621			95,734			99,205			95,437
Weighted average partnership units held by noncontrolling interests		3,901			3,585			3,924			3,423
Basic weighted average shares and units outstanding		103,522			99,319			103,129			98,860

Diluted ownership interest
Weighted average REIT common share and common share equivalents		100,028			96,121			99,685			95,899
Weighted average partnership units held by noncontrolling interests		3,901			3,585			3,924			3,423
Diluted weighted average shares and units outstanding		103,929			99,706			103,609			99,322


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

		September 30, 2015			December 31, 2014
Assets		(Unaudited)
Commercial real estate properties, at cost:
Land and land interests	$	4,689,031		$	3,844,518
Building and improvements		10,079,151			8,778,593
Building leasehold and improvements		1,425,299			1,418,585
Properties under capital lease		47,445			27,445
		16,240,926			14,069,141
Less: accumulated depreciation		(1,979,824	)		(1,905,165	)
		14,261,102			12,163,976
Assets held for sale		117,885			462,430
Cash and cash equivalents		244,360			281,409
Restricted cash		279,592			149,176
Investment in marketable securities		46,432			39,429
Tenant and other receivables, net of allowance of $15,712 and $18,068 in 2015 and 2014, respectively		66,896			57,369
Related party receivables		11,089			11,735
Deferred rents receivable, net of allowance of $22,190 and $27,411 in 2015 and 2014, respectively		467,627			374,944
Debt and preferred equity investments, net of discounts and deferred origination fees of $16,169 and $19,172 in 2015 and 2014, respectively		1,501,619			1,408,804
Investments in unconsolidated joint ventures		1,239,008			1,172,020
Deferred costs, net		342,936			327,962
Other assets		912,023			647,333
Total assets	$	19,490,569		$	17,096,587

Liabilities
Mortgages and other loans payable	$	6,865,383		$	5,586,709
Revolving credit facility		949,000			385,000
Term loan and senior unsecured notes		2,216,120			2,107,078
Accrued interest payable and other liabilities		204,224			137,634
Accounts payable and accrued expenses		173,228			173,246
Deferred revenue		428,334			187,148
Capitalized lease obligations		41,171			20,822
Deferred land leases payable		1,557			1,215
Dividend and distributions payable		67,109			64,393
Security deposits		66,654			66,614
Liabilities related to assets held for sale		94			266,873
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities		100,000			100,000
Total liabilities		11,112,874			9,096,732

Commitments and contingencies		–			–
Noncontrolling interest in the Operating Partnership		423,421			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 September 30, 2015 and December 31, 2014		221,932			221,932
Common stock, $0.01 par value 160,000 shares authorized, 103,383 and 100,928 issued and outstanding at September 30, 2015 and December 31, 2014, respectively (including 3,875 and 3,603 shares held in Treasury at September 30, 2015 and December 31, 2014, respectively)		1,034			1,010
Additional paid-in capital		5,593,653			5,289,479
Treasury stock at cost		(335,311	)		(320,471	)
Accumulated other comprehensive loss		(15,821	)		(6,980	)
Retained earnings		1,772,833			1,752,404
Total SL Green Realty Corp. stockholders’ equity		7,238,320			6,937,374
Noncontrolling interests in other partnerships		433,438			521,842
Total equity		7,671,758			7,459,216
Total liabilities and equity	$	19,490,569		$	17,096,587

SL GREEN REALTY CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(unaudited and in thousands, except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2015

2014

2015

2014

FFO Reconciliation:

Net income attributable to SL Green common stockholders

163,658

64,688

167,829

446,319

Add:

Depreciation and amortization

146,185

94,443

454,087

274,337

Discontinued operations depreciation adjustments

–

678

–

5,434

Joint venture depreciation and noncontrolling interest adjustments

10,796

5,831

23,853

26,979

Net income attributable to noncontrolling interests

7,132

4,348

19,851

21,055

Less:

Gain on sale of real estate and discontinued operations

159,704

29,507

172,687

144,242

Equity in net gain on sale of interest in unconsolidated joint
venture/real

estate

15,281

16,496

16,050

122,580

Purchase price fair value adjustment

–

(4,000

)

–

67,446

Depreciable real estate reserves, net of recoveries

(19,226

)

–

(19,226

)

–

Depreciation on non-rental real estate assets

500

503

1,525

1,520

Funds From Operations attributable to SL Green common
stockholders

and noncontrolling interests

171,512

127,482

494,584

438,336



		Consolidated Properties						SL Green’s share of Unconsolidated Joint Ventures						Combined
		Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 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, gain on sale of real estate, depreciable real estate reserves and loss on early extinguishment of debt	$	17,367		$	45,997		$	–		$	–

Equity in net income from unconsolidated joint ventures		3,627			6,034			3,627			6,034
Depreciation and amortization		146,185			94,443			15,809			12,211
Interest expense, net of interest income		84,141			82,376			17,794			13,426
Amortization of deferred financing costs		7,160			6,679			1,416			1,240
Loss on early extinguishment of debt		–			(24,475	)		–			–
Operating income	$	258,480		$	211,054		$	38,646		$	32,911

Marketing, general and administrative expense		23,475			22,649			–			–
Net operating income from discontinued operations		–			7,750			–			–
Transaction related costs		5,829			2,383			27			301

Non-building revenue		(55,707	)		(50,895	)		(6,489	)		(5,841	)
Equity in net income from unconsolidated joint ventures		(3,627	)		(6,034	)		–			–
Loss on early extinguishment of debt		–			24,475			88			–		$			$
Net operating income (NOI)		228,450			211,382			32,272			27,371		$	260,722		$	238,753


NOI from discontinued operations		–			(7,750	)		–			–			–			(7,750	)
NOI from other properties/affiliates		(56,228	)		(38,498	)		(9,263	)		(5,534	)		(65,491	)		(44,032	)
Same-Store NOI	$	172,222		$	165,134		$	23,009		$	21,837		$	195,231		$	186,971


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

Straight-line and free rent		(12,570	)		(13,437	)		(1,583	)		(1,804	)		(14,153	)		(15,241	)
Rental income – FAS 141		(2,336	)		(3,698	)		(559	)		(712	)		(2,895	)		(4,410	)
Same-store cash NOI	$	157,716		$	148,399		$	20,867		$	19,321		$	178,583		$	167,720



		Consolidated Properties						SL Green’s share of Unconsolidated Joint Ventures						Combined
		Nine Months Ended September 30,						Nine Months Ended September 30,						Nine Months Ended September 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, gain on sale of real estate, depreciable real estate reserves and loss on early extinguishment of debt	$	22,670		$	135,540		$	–		$	–

Equity in net income from unconsolidated joint ventures		10,651			20,781			10,651			20,781
Depreciation and amortization		454,087			274,337			45,776			47,297
Interest expense, net of interest income		235,694			236,424			51,308			47,556
Amortization of deferred financing costs		19,727			15,737			4,081			4,698
Loss on early extinguishment of debt		(49	)		(25,500	)		–			–
Operating income	$	742,780		$	657,319		$	111,816		$	120,332

Marketing, general and administrative expense		72,139			69,778			–			–
Net operating income from discontinued operations		488			32,349			–			–
Transaction related costs		10,039			6,554			37			401

Non-building revenue		(151,112	)		(174,154	)		(19,207	)		(16,012	)
Equity in net income from unconsolidated joint ventures		(10,651	)		(20,781	)		–			–
Loss on early extinguishment of debt		49			25,500			495			3,382		$			$
Net operating income (NOI)		663,732			596,565			93,141			108,103		$	756,873		$	704,668


NOI from discontinued operations		(488	)		(32,349	)		–			–			(488	)		(32,349	)
NOI from other properties/affiliates		(143,995	)		(72,538	)		(26,014	)		(44,177	)		(170,009	)		(116,715	)
Same-Store NOI	$	519,249		$	491,678		$	67,127		$	63,926		$	586,376		$	555,604


Ground lease straight-line adjustment		1,201			1,201			–			–			1,201			1,201

Straight-line and free rent		(49,220	)		(35,913	)		(5,135	)		(6,012	)		(54,355	)		(41,925	)
Rental income – FAS 141		(9,192	)		(13,427	)		(1,697	)		(1,903	)		(10,889	)		(15,330	)
Same-store cash NOI	$	462,038		$	443,539		$	60,295		$	56,011		$	522,333		$	499,550


SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED

	September 30,
	2015	2014
Manhattan Operating Data: ⁽¹⁾
Net rentable area at end of period (in 000’s)	24,028	21,905
Portfolio percentage leased at end of period	94.5%	95.3%
Same-Store percentage leased at end of period	96.6%	94.7%
Number of properties in operation	32	30

Office square feet where leases commenced during quarter (rentable)	289,016	729,315
Average mark-to-market percentage-office	26.8%	18.9%
Average starting cash rent per rentable square foot-office	$70.45	$64.20

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

View source version on businesswire.com: http://www.businesswire.com/news/home/20151021006740/en/

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

Financial Officer

Source: SL Green Realty Corp.

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