NEW YORK–(BUSINESS WIRE)–
SL Green Realty Corp. (NYSE:SLG):
Financial and Operating Highlights
-
Third quarter 2016 net income attributable to common stockholders
of $0.34 per share compared to third quarter 2015 net income
attributable to common stockholders of $1.64 per share. Third quarter
2015 net income attributable to common stockholders includes $155.8
million, or $1.50 per share, of net gains recognized from the sale of
real estate.
-
Third quarter 2016 FFO of $1.63 per share net of transaction
related costs of $0.05 per share compared to third quarter 2015 FFO of
$1.65 per share net of transaction related costs of $0.06 per share.
Third quarter 2016 FFO includes $41.1 million, or $0.39 per share, of
additional income related to the recapitalization of a debt
investment, offset by $19.6 million, or $0.19 per share, of lost
income and accounting write-offs related to space previously leased to
Aeropostale at 1515 Broadway.
-
Combined same-store cash NOI increased 6.0% for the first nine
months of 2016 as compared to the same period in the prior year.
-
Signed 41 Manhattan office leases covering 1,282,518 square feet
during the third quarter. The mark-to-market on signed Manhattan
office leases was 28.6% higher in the third quarter than the
previously fully escalated rents on the same spaces.
-
Signed 22 Suburban office leases covering 156,002 square feet
during the third quarter. The mark-to-market on signed Suburban office
leases was 4.4% higher in the third quarter than the previous fully
escalated rents on the same spaces.
-
Manhattan same-store occupancy, inclusive of leases signed but not
yet commenced, was 97.5% as of September 30, 2016 as compared to 97.3%
as of September 30, 2015 and 97.4% as of June 30, 2016.
Investing Highlights
-
Closed on the sale of a 40% interest in Eleven Madison Avenue for a
total gross asset valuation of $2.6 billion, inclusive of the costs
associated with lease stipulated improvements to the property. The
Company received $484.2 million in net proceeds from the sale.
-
In October, closed on the sale of a 49% interest in 400 East 57th
Street for a total gross asset valuation of $170.0 million. The
Company recognized net proceeds of $65.0 million from the
recapitalization of the property which included obtaining a new
10-year $100 million mortgage loan with a fixed interest rate of 3.0%.
The new mortgage replaces the previous $66.7 million mortgage loan,
which bore interest at a fixed rate of 4.13%.
-
Closed on the previously announced sale of 500 West Putnam Avenue
in Greenwich, Connecticut, for a total gross asset valuation of $41.0
million. The Company recognized net proceeds of $39.5 million from the
sale.
-
Originated new debt and preferred equity investments totaling
$472.0 million in the third quarter, of which $434.5 million was
retained at a yield of 9.2%.
Financing Highlights
-
Closed on $1.5 billion of construction financing for One Vanderbilt
Avenue. The facility has a term of up to 7 years and bears interest at
a floating rate of 3.50% over LIBOR, with the ability to reduce the
spread to as low as 3.00% upon achieving certain pre-leasing and
completion milestones.
-
Closed on an expansion of the term loan portion of the Company’s
unsecured corporate credit facility by $250.0 million, increasing the
total facility size to $2.783 billion.
-
Together with our joint venture partner, closed on a $97.0 million
refinancing of 650 Fifth Avenue, which replaces the previous $65.0
million mortgage.
Summary
SL Green Realty Corp. (the “Company”) (NYSE:SLG) today reported net
income attributable to common stockholders for the quarter ended
September 30, 2016 of $34.3 million, or $0.34 per share as compared to
net income attributable to common stockholders of $163.7 million,
or $1.64 per share for the same quarter in 2015. Net income attributable
to common stockholders for the quarter ended September 30, 2016 includes
$0.6 million, or $0.01 per share, of net gains recognized from the sale
of real estate as compared to $155.8 million, or $1.50 per share, of net
gains recognized from the sale of real estate for the same quarter in
2015.
The Company also reported net income attributable to common stockholders
for the nine months ended September 30, 2016 of $190.9 million, or $1.90
per share as compared to net income attributable to common stockholders
of $167.8 million, or $1.68 per share for the same period in
2015. Net income attributable to common stockholders for the nine months
ended September 30, 2016 includes $244.0 million, or $2.33 per share, of
net gains recognized from the sale of real estate as compared to $169.5
million, or $1.64 per share, of net gains recognized from the sale of
real estate for the same period in 2015.
The Company reported funds from operations, or FFO, for the quarter
ended September 30, 2016 of $171.6 million, or $1.63 per share, net of
transaction related costs of $5.6 million, or $0.05 per share, as
compared to FFO for the same period in 2015 of $171.5 million, or $1.65
per share, net of transaction related costs of $5.9 million, or $0.06
per share. Third quarter 2016 FFO includes $41.1 million, or $0.39 per
share, of additional income related to the recapitalization of a debt
investment, offset by $19.6 million, or $0.19 per share, of lost income
and accounting write-offs related to space previously leased to
Aeropostale at 1515 Broadway.
The Company also reported FFO for the nine months ended September 30,
2016 of $719.1 million, or $6.86 per share, net of transaction related
costs of $9.0 million, or $0.09 per share, as compared to FFO for the
same period in 2015 of $494.6 million, or $4.77 per share, net of
transaction related costs of $10.1 million, or $0.10 per share.
All per share amounts in this press release are presented on a diluted
basis.
Operating and Leasing Activity
For the quarter ended September 30, 2016, the Company reported
consolidated revenues and operating income of $416.7 million and $232.8
million, respectively, compared to $432.1 million and $258.5 million,
respectively, for the same period in 2015. For the nine months ended
September 30, 2016, the Company reported consolidated revenues and
operating income of $1.5 billion and $974.6 million, respectively,
compared to $1.2 billion and $742.8 million, respectively, for the same
period in 2015.
Same-store cash NOI on a combined basis increased by 1.6% to $177.4
million for the quarter ended September 30, 2016 as compared to the same
period in 2015. For the quarter, consolidated property same-store cash
NOI increased by 1.7% to $158.1 million and unconsolidated joint venture
property same-store cash NOI increased by 0.3% to $19.4 million in 2016
as compared to the same period in 2015.
Same-store cash NOI on a combined basis increased by 6.0% to $538.6
million for the nine months ended September 30, 2016 as compared to
$508.0 million for the same period in 2015. For the nine months ended
September 30, 2016, consolidated property same-store cash NOI increased
by 6.0% to $480.0 million and unconsolidated joint venture property
same-store cash NOI increased by 6.2% to $58.6 million, as compared to
the same period in 2015.
During the third quarter, the Company signed 41 office leases in its
Manhattan portfolio totaling 1,282,518 square feet. Twenty-seven leases
comprising 1,113,043 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 $74.34 per rentable
square foot, representing a 28.6% 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 15.7 years and
average tenant concessions were 4.8 months of free rent with a tenant
improvement allowance of $54.51 per rentable square foot.
During the first nine months of 2016, the Company signed 138 office
leases in its Manhattan portfolio totaling 2,753,254 square feet. One
hundred eight leases comprising 2,421,221 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
$71.09 per rentable square foot, representing a 28.5% 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 nine
months of 2016 was 12.4 years and average tenant concessions were 4.1
months of free rent with a tenant improvement allowance of $45.65 per
rentable square foot.
Manhattan same-store occupancy was 97.5% at September 30, 2016,
inclusive of 238,234 square feet of leases signed but not yet commenced
as compared to 97.3% at September 30, 2015 and 97.4% at June 30, 2016.
During the third quarter, the Company signed 22 office leases in its
Suburban portfolio totaling 156,002 square feet. Nine leases comprising
the remaining 54,514 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 $33.09 per rentable
square foot, representing a 4.4% increase 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 6.6 years and
average tenant concessions were 6.1 months of free rent with a tenant
improvement allowance of $23.99 per rentable square foot.
During the first nine months of 2016, the Company signed 65 office
leases in its Suburban portfolio totaling 555,933 square feet.
Thirty-seven leases comprising the remaining 334,179 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 $38.72 per rentable square foot, representing a 5.3%
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 nine months of 2016 was 7 years and average tenant concessions
were 6.4 months of free rent with a tenant improvement allowance of
$27.52 per rentable square foot.
Same-store occupancy for the Company’s Suburban portfolio was 85.4% at
September 30, 2016, inclusive of 67,639 square feet of leases signed but
not yet commenced as compared to 84.3% at September 30, 2015 and 83.9%
at June 30, 2016.
Significant leases that were signed during the third quarter included:
-
Renewal on 603,650 square feet with Penguin Random House at 1745
Broadway, bringing the remaining lease term to 16.8 years;
-
New lease on 308,115 square feet with Visiting Nurse Service of New
York at 220 East 42nd Street for 30.5 years;
-
Renewal on 64,111 square feet with Omnicom Group at 220 East 42nd
Street bringing the remaining lease terms to 15.6 years;
-
Renewal on 28,650 square feet with Newmark & Company at 110 East 42nd
Street bringing the remaining lease terms to 15.1 years;
-
New lease on 34,393 square feet with Pace University at 100 Summit
Lake Drive in Valhalla, New York, for 11.0 years; and
-
New lease on 16,210 square feet with Canon U.S.A, Inc. at 125 Chubb
Way, Lyndhurst, New Jersey, for 7.8 years.
Marketing, general and administrative, or MG&A, expenses for the quarter
ended September 30, 2016 were $25.5 million, or 5.2% of total combined
revenues and an annualized 53 basis points of total combined assets.
Real Estate Investment Activity
In October, the Company closed on the sale of a 49% interest in the
entity that owns 400 East 57th Street at a gross asset valuation of
$170.0 million and obtained a new 10-year $100 million mortgage loan,
which bears interest at a fixed rate of 3.0%, replacing the previous
$66.7 million mortgage loan, which bore interest at a fixed rate of
4.13%. The Company recognized net proceeds of $65.0 million from the
recapitalization of the property.
In August, the Company closed on the sale of a 40% interest in Eleven
Madison Avenue to PGIM Real Estate, the real estate investment business
of PGIM, Inc., the global investment management businesses of Prudential
Financial, Inc. (NYSE: PRU) for a total gross asset valuation of $2.6
billion, inclusive of the costs associated with lease stipulated
improvements to the property. PGIM Real Estate has a one-year option to
acquire an additional 9% stake in the venture at the same total gross
property valuation of $2.6 billion. The Company received $484.2 million
in cash proceeds from the sale. The partnership is seeking a
modification to the mortgage on the property, which, if not obtained
within six months after the closing, may result in the Company
repurchasing the sold interest. The modification is expected to be
granted during the fourth quarter of 2016.
In July, the Company sold 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 $1.5 billion at September 30, 2016 at a weighted
average current yield of 9.2%, excluding $0.3 billion of debt and
preferred equity investments that are included in other balance sheet
line items for accounting purposes. During the third quarter, the
Company originated new debt and preferred equity investments totaling
$472.0 million, of which $434.5 million was retained and $309.6 million
was funded, at a weighted average current yield of 9.2%. During the
third quarter, the Company recorded $239.3 million of principal
reductions from investments that were repaid and sold/syndicated.
Financing Activity
In September, the Company closed on $1.5 billion of construction
financing for One Vanderbilt Avenue. The facility, which paves the way
for the development of the 1,401 foot tower adjacent to Grand Central
Terminal, was led by Wells Fargo Bank, N.A. as Administrative Agent, The
Bank of New York Mellon, JP Morgan Chase Bank, TD Bank, N.A., and Bank
of China, as Syndication Agents, and Landesbank Baden-Württemberg as
Documentation Agent, has a term of up to 7 years and bears interest at a
floating interest rate of 3.50% over LIBOR, with the ability to reduce
the spread to as low as 3.00% upon achieving certain pre-leasing and
completion milestones.
In September, the Company closed on the expansion of its unsecured
corporate credit facility by $250.0 million, to $2.783 billion. The term
loan portion of the facility, which matures in June 2019, has been
increased from $933.0 million to $1.183 billion while the revolving line
of credit portion of the facility, which matures in March 2020, remains
at $1.6 billion.
In July, the Company, along with its joint venture partner, closed on
the refinancing of 650 Fifth Avenue. The $97.0 million facility has a
2-year term (subject to two 1-year extension options), carries a
floating interest rate of LIBOR plus 3.75%, and replaces the
previous $65.0 million of indebtedness on the property.
Dividends
During the third 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 October 17, 2016 to
shareholders of record on the close of business on September 30, 2016;
and
-
$0.40625 per share on the Company’s 6.50% Series I Cumulative
Redeemable Preferred Stock for the period July 15, 2016 through and
including October 14, 2016, which was paid on October 17, 2016 to
shareholders of record on the close of business on September 30, 2016,
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 5, 2016 in New York City beginning at 9:00am EST.
For more information on the Conference, please email SLG2016@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 20, 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 85055428.
A replay of the call will be available 7 days after the call by dialing
(855) 859-2056 using pass-code 85055428. A webcast replay will also be
available in the Investors section of the SL Green Realty Corp. website
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 September 30, 2016, SL
Green held interests in 125 Manhattan buildings totaling 46.6 million
square feet. This included ownership interests in 28.1 million square
feet of commercial buildings and debt and preferred equity investments
secured by 18.6 million square feet of buildings. In addition, SL Green
held ownership interests in 30 suburban buildings totaling 4.8 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.
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SL GREEN REALTY CORP. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
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(unaudited and in thousands, except per share data) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
September 30, |
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2016 |
|
2015 |
2016 |
|
2015 |
|||||||||||
|
Revenues: |
||||||||||||||||
|
Rental revenue, net |
$ |
281,482 |
$ |
318,465 |
$ |
1,043,898 |
$ |
926,020 |
||||||||
|
Escalation and reimbursement |
53,130 |
48,254 |
147,357 |
130,630 |
||||||||||||
|
Investment income |
75,396 |
49,328 |
174,347 |
136,588 |
||||||||||||
|
Other income |
6,673 |
|
16,019 |
|
124,137 |
|
44,201 |
|
||||||||
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Total revenues |
416,681 |
432,066 |
1,489,739 |
1,237,439 |
||||||||||||
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Expenses: |
||||||||||||||||
|
Operating expenses, including related party expenses of $5,042 and $15,171 in 2016 and $5,238 and $13,415 in 2015. |
79,425 |
78,648 |
234,269 |
225,539 |
||||||||||||
|
Real estate taxes |
64,133 |
61,009 |
187,931 |
173,018 |
||||||||||||
|
Ground rent |
8,338 |
8,252 |
24,953 |
24,526 |
||||||||||||
|
Interest expense, net of interest income |
72,565 |
84,141 |
256,326 |
235,694 |
||||||||||||
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Amortization of deferred financing costs |
4,815 |
7,160 |
20,180 |
19,727 |
||||||||||||
|
Depreciation and amortization |
112,665 |
146,185 |
717,015 |
454,087 |
||||||||||||
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Transaction related costs |
2,593 |
5,829 |
5,987 |
10,039 |
||||||||||||
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Marketing, general and administrative |
25,458 |
|
23,475 |
|
73,974 |
|
72,139 |
|
||||||||
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Total expenses |
369,992 |
|
414,699 |
|
1,520,635 |
|
1,214,769 |
|
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Income (loss) 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 |
46,689 |
17,367 |
(30,896 |
) |
22,670 |
|||||||||||
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Equity in net (loss) income from unconsolidated joint ventures |
(3,968 |
) |
3,627 |
11,969 |
10,651 |
|||||||||||
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Equity in net gain on sale of interest in unconsolidated joint venture/real estate |
225 |
15,281 |
43,588 |
16,050 |
||||||||||||
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Gain on sale of real estate, net |
397 |
159,704 |
210,750 |
159,704 |
||||||||||||
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Depreciable real estate reserves |
— |
(19,226 |
) |
(10,387 |
) |
(19,226 |
) |
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Loss on sale of marketable securities |
— |
— |
(83 |
) |
— |
|||||||||||
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Loss on early extinguishment of debt |
— |
|
— |
|
— |
|
(49 |
) |
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Income from continuing operations |
43,343 |
176,753 |
224,941 |
189,800 |
||||||||||||
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Net income from discontinued operations |
— |
— |
— |
427 |
||||||||||||
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Gain on sale of discontinued operations |
— |
|
— |
|
— |
|
12,983 |
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Net income |
43,343 |
176,753 |
224,941 |
203,210 |
||||||||||||
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Net income attributable to noncontrolling interests in the Operating Partnership |
(1,663 |
) |
(6,467 |
) |
(8,171 |
) |
(6,634 |
) |
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Net income attributable to noncontrolling interests in other partnerships |
(836 |
) |
(665 |
) |
(6,245 |
) |
(13,217 |
) |
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Preferred unit distributions |
(2,854 |
) |
(2,225 |
) |
(8,382 |
) |
(4,316 |
) |
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Net income attributable to SL Green |
37,990 |
167,396 |
202,143 |
179,043 |
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Perpetual preferred stock dividends |
(3,738 |
) |
(3,738 |
) |
(11,213 |
) |
(11,214 |
) |
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Net income attributable to SL Green common stockholders |
$ |
34,252 |
|
$ |
163,658 |
|
$ |
190,930 |
|
$ |
167,829 |
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Earnings Per Share (EPS) |
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Net income per share (Basic) |
$ |
0.34 |
|
$ |
1.64 |
|
$ |
1.91 |
|
$ |
1.69 |
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Net income per share (Diluted) |
$ |
0.34 |
|
$ |
1.64 |
|
$ |
1.90 |
|
$ |
1.68 |
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Funds From Operations (FFO) |
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FFO per share (Basic) |
$ |
1.64 |
|
$ |
1.66 |
|
$ |
6.89 |
|
$ |
4.80 |
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FFO per share (Diluted) |
$ |
1.63 |
|
$ |
1.65 |
|
$ |
6.86 |
|
$ |
4.77 |
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Basic ownership interest |
||||||||||||||||
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Weighted average REIT common shares for net income per share |
100,233 |
99,621 |
100,140 |
99,205 |
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Weighted average partnership units held by noncontrolling interests |
4,497 |
|
3,901 |
|
4,272 |
|
3,924 |
|
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Basic weighted average shares and units outstanding |
104,730 |
|
103,522 |
|
104,412 |
|
103,129 |
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Diluted ownership interest |
||||||||||||||||
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Weighted average REIT common share and common share equivalents |
100,646 |
100,028 |
100,489 |
99,685 |
||||||||||||
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Weighted average partnership units held by noncontrolling interests |
4,497 |
|
3,901 |
|
4,272 |
|
3,924 |
|
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Diluted weighted average shares and units outstanding |
105,143 |
|
103,929 |
|
104,761 |
|
103,609 |
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SL GREEN REALTY CORP. |
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except per share data) |
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September 30, |
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December 31, |
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2016 |
2015 |
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Assets |
(Unaudited) |
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Commercial real estate properties, at cost: |
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Land and land interests |
$ |
3,347,482 |
$ |
4,779,159 |
||||
|
Building and improvements |
7,777,647 |
10,423,739 |
||||||
|
Building leasehold and improvements |
1,436,287 |
1,431,259 |
||||||
|
Properties under capital lease |
47,445 |
|
47,445 |
|
||||
|
12,608,861 |
16,681,602 |
|||||||
|
Less accumulated depreciation |
(2,190,142 |
) |
(2,060,706 |
) |
||||
|
10,418,719 |
14,620,896 |
|||||||
|
Assets held for sale |
117,159 |
34,981 |
||||||
|
Cash and cash equivalents |
405,896 |
255,399 |
||||||
|
Restricted cash |
100,195 |
233,578 |
||||||
|
Investment in marketable securities |
60,352 |
45,138 |
||||||
|
Tenant and other receivables, net of allowance of $18,278 and $17,618 in 2016 and 2015, respectively |
55,976 |
63,491 |
||||||
|
Related party receivables |
14,840 |
10,650 |
||||||
|
Deferred rents receivable, net of allowance of $24,922 and $21,730 in 2016 and 2015, respectively |
430,642 |
498,776 |
||||||
|
Debt and preferred equity investments, net of discounts and deferred origination fees of $14,630 and $18,759 in 2016 and 2015, respectively |
1,453,234 |
1,670,020 |
||||||
|
Investments in unconsolidated joint ventures |
1,860,912 |
1,203,858 |
||||||
|
Deferred costs, net |
252,179 |
239,920 |
||||||
|
Other assets |
620,838 |
|
850,939 |
|
||||
|
Total assets |
$ |
15,790,942 |
|
$ |
19,727,646 |
|
||
|
|
||||||||
|
Liabilities |
||||||||
|
Mortgages and other loans payable |
$ |
4,024,896 |
$ |
6,992,504 |
||||
|
Revolving credit facility |
— |
994,000 |
||||||
|
Term loan and senior unsecured notes |
2,313,616 |
2,319,244 |
||||||
|
Deferred financing costs, net |
(87,591 |
) |
(130,295 |
) |
||||
|
Total debt, net of deferred financing costs |
6,250,921 |
10,175,453 |
||||||
|
Accrued interest payable |
30,734 |
42,406 |
||||||
|
Other liabilities |
218,404 |
168,477 |
||||||
|
Accounts payable and accrued expenses |
178,946 |
196,213 |
||||||
|
Deferred revenue |
237,548 |
399,102 |
||||||
|
Capitalized lease obligations |
41,951 |
41,360 |
||||||
|
Deferred land leases payable |
2,419 |
1,783 |
||||||
|
Dividend and distributions payable |
81,392 |
79,790 |
||||||
|
Security deposits |
67,709 |
68,023 |
||||||
|
Liabilities related to assets held for sale |
65,520 |
29,000 |
||||||
|
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities |
100,000 |
|
100,000 |
|
||||
|
Total liabilities |
7,275,544 |
11,301,607 |
||||||
|
|
||||||||
|
Commitments and contingencies |
— |
— |
||||||
|
Noncontrolling interest in the Operating Partnership |
490,440 |
424,206 |
||||||
|
Preferred units |
302,310 |
282,516 |
||||||
|
|
||||||||
|
Equity |
||||||||
|
Stockholders’ equity: |
||||||||
|
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both September 30, 2016 and December 31, 2015 |
221,932 |
221,932 |
||||||
|
Common stock, $0.01 par value 160,000 shares authorized, 101,319 and 100,063 issued and outstanding at September 30, 2016 and December 31, 2015, respectively (including 1,055 and 87 shares held in Treasury at September 30, 2016 and December 31, 2015, respectively) |
1,013 |
1,001 |
||||||
|
Additional paid-in capital |
5,596,026 |
5,439,735 |
||||||
|
Treasury stock at cost |
(124,049 |
) |
(10,000 |
) |
||||
|
Accumulated other comprehensive loss |
(14,074 |
) |
(8,749 |
) |
||||
|
Retained earnings |
1,612,707 |
|
1,643,546 |
|
||||
|
Total SL Green Realty Corp. stockholders’ equity |
7,293,555 |
7,287,465 |
||||||
|
Noncontrolling interests in other partnerships |
429,093 |
|
431,852 |
|
||||
|
Total equity |
7,722,648 |
|
7,719,317 |
|
||||
|
Total liabilities and equity |
$ |
15,790,942 |
|
$ |
19,727,646 |
|
||
|
|
||||||||
|
|
|||||||||||||||||||||
|
SL GREEN REALTY CORP. |
|||||||||||||||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||
|
(unaudited and in thousands, except per share data) |
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||
|
September 30, |
|||||||||||||||||||||
|
2016 |
2015 |
||||||||||||||||||||
|
FFO Reconciliation: |
|||||||||||||||||||||
|
Net income attributable to SL Green common stockholders |
$ |
34,252 |
$ |
163,658 |
|||||||||||||||||
|
Add: |
|||||||||||||||||||||
|
Depreciation and amortization |
112,665 |
146,185 |
|||||||||||||||||||
|
Joint venture depreciation and noncontrolling interest adjustments |
23,349 |
10,796 |
|||||||||||||||||||
|
Net income attributable to noncontrolling interests |
2,499 |
7,132 |
|||||||||||||||||||
|
Less: |
|||||||||||||||||||||
|
Gain on sale of real estate and discontinued operations, net |
397 |
159,704 |
|||||||||||||||||||
|
Equity in net gain on sale of interest in unconsolidated joint venture/real estate |
225 |
15,281 |
|||||||||||||||||||
|
Depreciable real estate reserve |
— |
(19,226 |
) |
||||||||||||||||||
|
Depreciation on non-rental real estate assets |
509 |
|
500 |
|
|||||||||||||||||
|
Funds From Operations attributable to SL Green common stockholders and noncontrolling interests |
$ |
171,634 |
|
$ |
171,512 |
|
|||||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
Consolidated Properties |
|
Unconsolidated Joint |
||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
||||||||||||||||||||
|
September 30, |
September 30, |
||||||||||||||||||||
|
Operating income and Same-store NOI Reconciliation: |
2016 |
|
2015 |
2016 |
2015 |
||||||||||||||||
|
Income (loss) 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 |
$ |
46,689 |
$ |
17,367 |
$ |
(6,255 |
) |
$ |
1,169 |
||||||||||||
|
|
|||||||||||||||||||||
|
Equity in net income from unconsolidated joint ventures |
(3,968 |
) |
3,627 |
||||||||||||||||||
|
Depreciation and amortization |
112,665 |
146,185 |
56,890 |
38,144 |
|||||||||||||||||
|
Interest expense, net of interest income |
72,565 |
84,141 |
51,789 |
51,430 |
|||||||||||||||||
|
Amortization of deferred financing costs |
4,815 |
7,160 |
7,155 |
3,473 |
|||||||||||||||||
|
Loss on early extinguishment of debt |
— |
|
— |
|
— |
|
(248 |
) |
|||||||||||||
|
Operating income |
232,766 |
|
258,480 |
|
109,579 |
|
93,968 |
|
|||||||||||||
|
|
|||||||||||||||||||||
|
Marketing, general and administrative expense |
25,458 |
23,475 |
— |
— |
|||||||||||||||||
|
Net operating income from discontinued operations |
— |
— |
— |
— |
|||||||||||||||||
|
Transaction related costs, net |
2,593 |
5,829 |
5,359 |
604 |
|||||||||||||||||
|
Non-building revenue |
(77,962 |
) |
(55,707 |
) |
(8,990 |
) |
(2,990 |
) |
|||||||||||||
|
Equity in net income from unconsolidated joint ventures |
3,968 |
(3,627 |
) |
— |
— |
||||||||||||||||
|
Loss on early extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
(248 |
) |
||||||||||
|
Net operating income (NOI) |
$ |
186,823 |
$ |
228,450 |
$ |
105,948 |
$ |
91,334 |
|||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
NOI from discontinued operations |
— |
— |
— |
— |
|||||||||||||||||
|
NOI from other properties/affiliates |
(33,531 |
) |
(59,000 |
) |
(84,620 |
) |
(70,244 |
) |
|||||||||||||
|
Same-Store NOI |
153,292 |
|
169,450 |
|
21,328 |
|
21,090 |
|
|||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
Ground lease straight-line adjustment |
424 |
472 |
— |
— |
|||||||||||||||||
|
|
|||||||||||||||||||||
|
Straight-line and free rent |
(2,843 |
) |
(9,194 |
) |
(1,577 |
) |
(1,334 |
) |
|||||||||||||
|
Rental income – FAS 141 |
7,192 |
|
(5,330 |
) |
(388 |
) |
(454 |
) |
|||||||||||||
|
Same-store cash NOI |
$ |
158,065 |
|
$ |
155,398 |
|
$ |
19,363 |
|
$ |
19,302 |
|
|||||||||
|
|
|||||||||||||||||||||
|
SL GREEN REALTY CORP. |
|||||||||||||||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||
|
(unaudited and in thousands, except per share data) |
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
Nine Months Ended |
||||||||||||||||||||
|
September 30, |
|||||||||||||||||||||
|
2016 |
2015 |
||||||||||||||||||||
|
FFO Reconciliation: |
|||||||||||||||||||||
|
Net income attributable to SL Green common stockholders |
$ |
190,930 |
$ |
167,829 |
|||||||||||||||||
|
Add: |
|||||||||||||||||||||
|
Depreciation and amortization |
717,015 |
454,087 |
|||||||||||||||||||
|
Joint venture depreciation and noncontrolling interest adjustments |
42,191 |
23,853 |
|||||||||||||||||||
|
Net income attributable to noncontrolling interests |
14,416 |
19,851 |
|||||||||||||||||||
|
Less: |
|||||||||||||||||||||
|
Gain on sale of real estate and discontinued operations, net |
210,750 |
172,687 |
|||||||||||||||||||
|
Equity in net gain on sale of interest in unconsolidated joint venture/real estate |
43,588 |
16,050 |
|||||||||||||||||||
|
Depreciable real estate reserve |
(10,387 |
) |
(19,226 |
) |
|||||||||||||||||
|
Depreciation on non-rental real estate assets |
1,505 |
|
1,525 |
|
|||||||||||||||||
|
Funds From Operations attributable to SL Green common stockholders and noncontrolling interests |
$ |
719,096 |
|
$ |
494,584 |
|
|||||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
Consolidated Properties |
|
Unconsolidated Joint |
||||||||||||||||||
|
Nine Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
September 30, |
September 30, |
||||||||||||||||||||
|
Operating income and Same-store NOI Reconciliation: |
2016 |
|
2015 |
2016 |
2015 |
||||||||||||||||
|
Income (loss) 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 |
$ |
(30,896 |
) |
$ |
22,670 |
$ |
16,198 |
$ |
2,148 |
||||||||||||
|
|
|||||||||||||||||||||
|
Equity in net income from unconsolidated joint ventures |
11,969 |
10,651 |
|||||||||||||||||||
|
Depreciation and amortization |
717,015 |
454,087 |
132,035 |
109,022 |
|||||||||||||||||
|
Interest expense, net of interest income |
256,326 |
235,694 |
147,876 |
147,152 |
|||||||||||||||||
|
Amortization of deferred financing costs |
20,180 |
19,727 |
17,667 |
9,628 |
|||||||||||||||||
|
Loss on early extinguishment of debt |
— |
|
(49 |
) |
(1,606 |
) |
(1,081 |
) |
|||||||||||||
|
Operating income |
974,594 |
|
742,780 |
|
312,170 |
|
266,869 |
|
|||||||||||||
|
|
|||||||||||||||||||||
|
Marketing, general and administrative expense |
73,974 |
72,139 |
— |
— |
|||||||||||||||||
|
Net operating income from discontinued operations |
— |
427 |
— |
— |
|||||||||||||||||
|
Transaction related costs, net |
5,987 |
10,039 |
5,359 |
615 |
|||||||||||||||||
|
Non-building revenue |
(180,345 |
) |
(151,112 |
) |
(20,531 |
) |
(8,853 |
) |
|||||||||||||
|
Equity in net income from unconsolidated joint ventures |
(11,969 |
) |
(10,651 |
) |
— |
— |
|||||||||||||||
|
Loss on early extinguishment of debt |
— |
|
49 |
|
1,606 |
|
1,081 |
|
|||||||||||||
|
Net operating income (NOI) |
$ |
862,241 |
$ |
663,671 |
$ |
298,604 |
$ |
259,712 |
|||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
NOI from discontinued operations |
— |
— |
— |
— |
|||||||||||||||||
|
NOI from other properties/affiliates |
(364,355 |
) |
(160,909 |
) |
(233,642 |
) |
(198,555 |
) |
|||||||||||||
|
Same-Store NOI |
497,886 |
|
502,762 |
|
64,962 |
|
61,157 |
|
|||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
Ground lease straight-line adjustment |
1,359 |
1,415 |
— |
— |
|||||||||||||||||
|
|
|||||||||||||||||||||
|
Straight-line and free rent |
(18,937 |
) |
(38,181 |
) |
(5,172 |
) |
(4,551 |
) |
|||||||||||||
|
Rental income – FAS 141 |
(346 |
) |
(13,155 |
) |
(1,170 |
) |
(1,417 |
) |
|||||||||||||
|
Same-store cash NOI |
$ |
479,962 |
|
$ |
452,841 |
|
$ |
58,620 |
|
$ |
55,189 |
|
|||||||||
|
|
||||||||
|
SL GREEN REALTY CORP. |
||||||||
|
SELECTED OPERATING DATA-UNAUDITED |
||||||||
|
|
||||||||
|
|
September 30, |
|||||||
|
2016 |
|
2015 |
||||||
|
Manhattan Operating Data: (1) |
||||||||
|
Net rentable area at end of period (in 000’s) |
22,613 |
24,029 |
||||||
|
Portfolio percentage leased at end of period |
95.4 |
% |
94.5 |
% |
||||
|
Same-Store percentage leased at end of period |
96.3 |
% |
96.7 |
% |
||||
|
Number of properties in operation |
31 |
32 |
||||||
|
|
||||||||
|
Office square feet where leases commenced during quarter ended (rentable) |
1,195,004 |
289,016 |
||||||
|
Average mark-to-market percentage-office |
18.4 |
% |
26.8 |
% |
||||
|
Average starting cash rent per rentable square foot-office |
$ |
73.22 |
$ |
70.45 |
||||
|
|
||||||||
(1) Includes wholly-owned and joint venture properties.
SLG-EARN
View source version on businesswire.com: http://www.businesswire.com/news/home/20161019006440/en/
SL Green Realty Corp.
Matt DiLiberto
Chief Financial Officer
(212)
594-2700
Source: SL Green Realty Corp.
News Provided by Acquire Media