UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K
xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 20172022
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                to                
Commission File Number: 1-13199 (SL Green Realty Corp.)
Commission File Number: 33-167793-02 (SL Green Operating Partnership, L.P.)

SL GREEN REALTY CORP.
SL GREEN OPERATING PARTNERSHIP, L.P.
(Exact name of registrant as specified in its charter)

SL Green Realty Corp.Maryland13-395675513-3956775
SL Green Operating Partnership, L.P.Delaware13-3960938
(State or other jurisdiction of

incorporation or organization)
(I.R.S. Employer

Identification No.)
420 LexingtonOne Vanderbilt Avenue, New York, NY 1017010017
(Address of principal executive offices—Zip Code)


(212) 594-2700
(Registrant's telephone number, including area code)

SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
RegistrantTrading SymbolTitle of Each ClassName of Each Exchange on Which Registered
SL Green Realty Corp.SLGCommon Stock, $0.01 par valueNew York Stock Exchange
SL Green Realty Corp.
SLG.PRI
6.500% Series I Cumulative Redeemable
Preferred Stock, $0.01 par value
$25.00 mandatory liquidation preference
New York Stock Exchange

SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. 
SL Green Realty Corp.    Yes x    No oSL Green Operating Partnership, L.P.    Yes o    No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. 
SL Green Realty Corp.    Yes o    No xSL Green Operating Partnership, L.P.    Yes o    No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 
SL Green Realty Corp.    Yes x    No oSL Green Operating Partnership, L.P.    Yes x    No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 
SL Green Realty Corp.     Yes x    No oSL Green Operating Partnership, L.P.    Yes x    No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. 
SL Green Realty Corp.    oSL Green Operating Partnership, L.P.    o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
SL Green Realty Corp.
Large Accelerated FilerxAccelerated Filero
Non-Accelerated Filero
Smaller Reporting Company☐Emerging Growth Company☐
Large accelerated filerxAccelerated filero
Non-accelerated filero (Do not check if a smaller reporting company)
Smaller Reporting CompanyoEmerging Growth Companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.☒
SL Green Operating Partnership, L.P.
Large Accelerated FileroAccelerated Filero
Non-accelerated filerx
Smaller Reporting Company☐Emerging Growth Company☐
Large accelerated fileroAccelerated filero
Non-accelerated filerx (Do not check if a smaller reporting company)
Smaller Reporting CompanyoEmerging Growth Companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.o
Indicate by check mark whether any of those error corrections are restatments that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §201.10D-1(b).o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). 
SL Green Realty Corp.    Yes o☐    No xSL Green Operating Partnership, L.P.    Yes o☐    No x
The aggregate market value of the common stock held by non-affiliates of SL Green Realty Corp. (92,294,537(57,803,185 shares) was $9.8$2.7 billion based on the quoted closing price on the New York Stock Exchange for such shares on June 30, 2017.2022.
As of February 22, 2018, 90,327,09815, 2023, 64,365,509 shares of SL Green Realty Corp.'s common stock, par value $0.01 per share, were outstanding. As of February 22, 2018, 1,468,43815, 2023, 306,987 common units of limited partnership interest of SL Green Operating Partnership, L.P. were held by non-affiliates. There is no established trading market for such units.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the SL Green Realty Corp.'s Proxy Statement for its 20182022 Annual Stockholders' Meeting to be filed within 120 days after the end of the Registrant's fiscal year are incorporated by reference into Part III of this Annual Report on Form 10-K.






EXPLANATORY NOTE


This report combines the annual reports on Form 10-K for the year ended December 31, 20172022 of SL Green Realty Corp. and SL Green Operating Partnership, L.P. Unless stated otherwise or the context otherwise requires, references to "SL Green Realty Corp.," the "Company" or "SL Green" mean SL Green Realty Corp. and its consolidated subsidiaries;subsidiaries, including SL Green Operating Partnership, L.P.; and references to "SL Green Operating Partnership, L.P.," the "Operating Partnership" or "SLGOP" mean SL Green Operating Partnership, L.P. and its consolidated subsidiaries. The terms "we," "our" and "us" mean the Company and all the entities owned or controlled by the Company, including the Operating Partnership.
The Company is a Maryland corporation which operates as a self-administered and self-managed real estate investment trust, or REIT, and is the sole managing general partner of the Operating Partnership. As a general partner of the Operating Partnership, the Company has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Operating Partnership.
As of December 31, 2017,2022, the Company owns 95.42%94.61% of the outstanding general and limited partnership interest in the Operating Partnership. The Company alsoPartnership and owns 9,200,000 Series I Preferred Units of the Operating Partnership. As of December 31, 2017,2022, noncontrolling investors held, in aggregate a 4.58%5.39% limited partnership interest in the Operating Partnership. We refer to these interests as the noncontrolling interests in the Operating Partnership.
The Company and the Operating Partnership are managed and operated as one entity. The financial results of the Operating Partnership are consolidated into the financial statements of the Company. The Company has no significant assets other than its investment in the Operating Partnership. Substantially all of our assets are held by, and our operations are conducted through, the Operating Partnership. Therefore, the assets and liabilities of the Company and the Operating Partnership are substantially the same.
Noncontrolling interests in the Operating Partnership, stockholders' equity of the Company and partners' capital of the Operating Partnership are the main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership. The common limited partnership interests in the Operating Partnership not owned by the Company are accounted as noncontrolling interests, within mezzanine equity, in the Company's and the Operating Partnership's consolidated financial statements.
We believe combining the annual reports on Form 10-K of the Company and the Operating Partnership into this single report results in the following benefits:
•Combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
•Combined reports eliminate duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company's disclosure applies to both the Company and the Operating Partnership; and
•Combined reports create time and cost efficiencies through the preparation of one combined report instead of two separate reports.
To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:
•consolidated financial statements; and
•the following notes to the consolidated financial statements:
◦Note 11, Noncontrolling Interests on the Company’s Consolidated Financial Statements;
◦Note 12, Stockholders' Equity of the Company;
◦Note 13, Partners' Capital of the Operating Partnership;
◦Note 22, Quarterly Financial Data of the Company (unaudited); and
◦Note 23, Quarterly Financial Data of the Operating Partnership (unaudited).
◦Note 11, Noncontrolling Interests on the Company’s Consolidated Financial Statements;
◦Note 12, Stockholders' Equity of the Company; and
◦Note 13, Partners' Capital of the Operating Partnership;

This report also includes separate Part II, Item 5. Market for Registrants' Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities, Item 6. Selected Financial Data and Item 9A. Controls and Procedures sections and separate Exhibit 31 and 32 certifications for each of the Company and the Operating Partnership, respectively, in order to establish that the Chief Executive Officer and the Chief Financial Officer of the Company, in both their capacity as the principal executive officer and principal financial officer of the Company and the principal executive officer and principal financial officer of the general partner of the Operating Partnership, have made the requisite certifications and that the Company and the Operating Partnership are compliant with Rule 13a-15 and Rule 15d-15 of the Securities Exchange Act of 1934, as amended.amended, or the Exchange Act.







SL GREEN REALTY CORP. AND SL GREEN OPERATING PARTNERSHIP, L.P.
TABLE OF CONTENTS


PART I
4
1213
2324
2425
3331
3331
PART II
3432
Item 6.
Selected Financial Data - SL Green Realty Corp.
36
Selected Financial Data - SL Green Operating Partnership, L.P.
4034
6655
6857
144128
144129
148133
PART III
149134
149134
149134
149134
149134
PART IV
150135
156140



Table of Contents



PART I


ITEM 1. BUSINESS


General
SL Green Realty Corp. is a self-managed real estate investment trust, or REIT, engaged in the acquisition, development, redevelopment, repositioning, ownership, management and operation of commercial and residential real estate properties, principally office properties, located in the New York metropolitan area.area, principally in Manhattan, a borough of New York City. We were formed in June, 1997 for the purpose of continuing the commercial real estate business of S.L. Green Properties, Inc., our predecessor entity. S.L. Green Properties, Inc., which was founded in 1980 by Stephen L. Green, who serves as a member and the chairman emeritus of the Company's Chairman,board of directors, had been engaged in the business of owning, managing, leasing, acquiring, and repositioning office properties in Manhattan, a borough of New York City. Reckson Associates Realty Corp., or Reckson, and Reckson Operating Partnership, L.P., or ROP, are wholly-owned subsidiaries of SL Green Realty Corp.Manhattan.
As of December 31, 2017,2022, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:
ConsolidatedUnconsolidatedTotal
LocationProperty TypeNumber of PropertiesApproximate Square FeetNumber of PropertiesApproximate Square FeetNumber of PropertiesApproximate Square Feet
Weighted Average Occupancy(1)
Commercial:
ManhattanOffice13 9,963,138 12 13,998,381 25 23,961,519 90.7 %
Retail2 17,888 9 301,996 11 319,884 91.2 %
Development/Redevelopment(1)5 1,685,215 3 2,746,241 8 4,431,456 N/A
20 11,666,241 24 17,046,618 44 28,712,859 90.7 %
SuburbanOffice7 862,800 — — 7 862,800 79.3 %
Total commercial properties27 12,529,041 24 17,046,618 51 29,575,659 90.3 %
Residential:
ManhattanResidential(2)1 140,382 — — 1 140,382 89.5 %
Total portfolio28 12,669,423 24 17,046,618 52 29,716,041 90.3 %
    Consolidated Unconsolidated Total
Location Property Type Number of Properties Approximate Square Feet Number of Properties Approximate Square Feet Number of Properties Approximate Square Feet 
Weighted Average Occupancy(1)
Commercial:              
Manhattan Office 23
(2)14,304,606
 9
 10,356,864
 32
 24,661,470
 93.9%
  Retail 4
(3)302,583
 9
 347,970
 13
 650,553
 94.5%
  Development/Redevelopment 7
 158,985
 4
 770,514
 11
 929,499
 63.8%
  Fee Interest 1
 176,530
 1
 —
 2
 176,530
 100.0%
    35
 14,942,704
 23
 11,475,348
 58
 26,418,052
 92.9%
Suburban Office 20
(4)3,013,200
 2
 640,000
 22
 3,653,200
 84.0%
  Retail 1
 52,000
 —
 —
 1
 52,000
 100.0%
  Development/Redevelopment 1
 1,000
 1

—
 2
 1,000
 100.0%
    22
 3,066,200
 3
 640,000
 25
 3,706,200
 84.3%
Total commercial properties 57
 18,008,904
 26
 12,115,348
 83
 30,124,252
 91.8%
Residential:                
Manhattan Residential 3
(3)472,105
 12
 2,656,856
 15
 3,128,961
 87.6%
Suburban Residential —
 —
 —
 —
 —
 —
 —%
Total residential properties 3
 472,105
 12
 2,656,856
 15
 3,128,961
 87.6%
Total portfolio 60
 18,481,009
 38
 14,772,204
 98
 33,253,213
 91.4%
(1)The weighted average occupancy for commercial properties represents the total occupied square feet divided by total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by total available units. Properties under construction are not included in the calculation of weighted average occupancy.
(1)The weighted average occupancy for commercial properties represents the total occupied square feet divided by total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by total available units.
(2)Includes the property at 600 Lexington Avenue in New York, New York which was classified as held for sale at December 31, 2017.
(3)As of December 31, 2017, we owned a building that was comprised of approximately 270,132 square feet of retail space and approximately 222,855 square feet of residential space. For the purpose of this report, we have included the building in the number of retail properties we own. However, we have included only the retail square footage in the retail approximate square footage, and have listed the balance of the square footage as residential square footage.
(4)Includes the properties at 115-117 Stevens Avenue in Valhalla, New York, and 1-6 International Drive in Rye Brook, New York which are classified as held for sale at December 31, 2017.
(2)As of December 31, 2022, we owned a building at 7 Dey Street / 185 Broadway that was comprised of approximately 140,382 square feet (unaudited) of residential space and approximately 50,206 square feet (unaudited) of office and retail space. For the purpose of this report, we have included this building in the number of residential properties we own. However, we have included only the residential square footage in the residential approximate square footage, and have listed the balance of the square footage as development square footage.
As of December 31, 2017,2022, we also managed anone office building with approximately 336,000 square feet, which is owned by a third party encompassing approximately 0.3 million square feet, and held debt and preferred equity investments with a book value of $2.3 billion, including $0.2 billion of$623.3 million, excluding debt and preferred equity investments and other financing receivables totaling $8.5 million that are included in balance sheet line items other than the Debt and Preferred Equity Investmentspreferred equity investments line item.
Our corporate offices are located in midtown Manhattan at 420 LexingtonOne Vanderbilt Avenue, New York, New York 10170.10017. As of December 31, 2017,2022, we employed 1,137 employees, 303 of whom were employed in our corporate staff consisted of 310 persons, including 211 professionals experienced in all aspects of commercial real estate.offices. We can be contacted at (212) 594-2700. We maintain a website at www.slgreen.com. On our website, you can obtain, free of charge, a copy of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we file such material electronically with, or furnish it to, the Securities and Exchange Commission, or the SEC. We have also made available on our website our audit committee charter, compensation

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committee charter, nominating and corporate governance committee charter, code of business conduct and ethics and corporate governance principles. We do not intend for information contained on our website to be part of this annual report on Form 10-K. You can also read and copy any materials we file with the SEC at its Public Reference Room at 100 F Street, NE, Washington, DC 20549 (1-800-SEC-0330). The SEC maintains a website (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
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Unless the context requires otherwise, all references to the "Company," "SL Green," "we," "our" and "us" in this annual report means SL Green Realty Corp., a Maryland corporation, and one or more of its subsidiaries, including the Operating Partnership, or, as the context may require, SL Green only or the Operating Partnership only, and "S.L. Green Properties" means S.L. Green Properties, Inc., a New York corporation, as well as the affiliated partnerships and other entities through which Stephen L. Green historically conducted commercial real estate activities.
Corporate Structure
In connection with the Company's initial public offering, or IPO, in August 1997, the Operating Partnership received a contribution of interests in real estate properties as well as a 95% economic, non-voting interest in the management, leasing and construction companies affiliated with S.L. Green Properties. We refer to these management, leasing and construction entities, which are owned by S.L. Green Management Corp, as the "Service Corporation." The Company is organized so as to qualify, and has elected to qualify as a REIT, under the Internal Revenue Code of 1986, as amended, or the Code.
Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. We are the sole managing general partner of the Operating Partnership, and as of December 31, 2017,2022, we owned 95.42%94.61% of its economic interests. All of the management and leasing operations with respect to our wholly-owned properties are conducted through SL Green Management LLC, or Management LLC. The Operating Partnership owns a 100% interest inof Management LLC.
In order to maintain the Company's qualification as a REIT while realizing income from management, leasing and construction contracts with third parties and joint venture properties, all of these service operations are conducted through the S.L. Green Management Corp, or the Service Corporation, a consolidated variable interest entity. We, through our Operating Partnership, receive substantially all of the cash flow from the Service Corporation's operations. All of the voting common stock of the Service Corporation is held by an entity owned and controlled by Stephen L. Green, who serves as a member and as the chairman emeritus of the Company's boardBoard of directors.Directors.
Business and Growth Strategies
SL Green, is New York City'sManhattan's largest owner of commercialoffice real estate, and an investment-grade S&P 500 company that is focused primarily on owning, managingthe acquisition, development, redevelopment, repositioning, ownership, management, and maximizing the valueoperation of Manhattan commercial properties, principally office properties.
Our core business is the ownership of high quality commercial properties and our primary business objective is to maximize the total return to stockholders, through growth in net income attributable to common stockholders, and funds from operations, or FFO, and through asset value appreciation. The commercial real estate expertise resulting from owning, operating, investing, developing, redeveloping and lending on real estate in Manhattan for over 37 yearsmany decades has enabled us to invest in a collection of premier office and retail properties, selected multifamilyretail and residential assets, and high qualityhigh-quality debt and preferred equity investments. We also own high quality office properties in the New York metropolitan area.
We are led by a strong, experienced management team that provides a foundation of skills in all aspects of real estate, including acquisitions, dispositions, management, leasing, development, redevelopment, and financing.estate. It is with this team that we have achieved a market leading position in our targeted submarkets.
We seek to enhance the value of our company by executing strategies that include the following:
•Leasing and property management, which capitalizes on our extensive presence and knowledge of the marketplaces in which we operate;
•Acquiring office, retail and residential properties and employing our local market skills to reposition these assets to create incremental cash flow and capitalvalue appreciation;
•Identifying properties well suited for development/redevelopment and maximizingin order to maximize the value of those properties through development/redevelopment or reconfiguration to match current workplace, retail and housing trends;
•Investing in debt and preferred equity positions that generate consistently strong risk-adjusted returns, increase the breadth of our market insight, foster key market relationships and source potential future investment opportunities;
•Executing dispositions through sales or joint ventures that harvest embedded equity which has been generated through management's value enhancing activities; and
•Maintaining a prudently levered, liquid balance sheet with consistent access to diversified sources of property level and corporate capital.

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Leasing and Property Management
We seek to capitalize on our management's extensive knowledge of Manhattan and the New York City and surrounding suburban marketsmetropolitan area and the needs of our tenants through proactive leasing and management programs, which include: (i) use of in-depth market experience resulting from managing and leasing tens of millions of square feet of office, retail and residential space since the Company was founded, predominantly in Manhattan;founded; (ii) careful tenant management, which results in a high tenant retention rate, long average lease terms and a manageable lease expiration schedule; (iii) utilization of an extensive network of third-party brokers to supplement our in-house leasing team; (iv) use of comprehensive building management analysis and planning; and (v) a commitment to tenant satisfaction by understanding and appreciating our tenant's businesses and the environment in which they are operating, while providing high quality tenant services at competitive rental rates.
We believe that our proactive leasing efforts have directly contributed to our average portfolio occupancy consistently exceeding the market average.
Property Acquisitions
We acquire core properties for long-term value appreciation and earnings growth. We also acquire non-core properties that are typically held for shorter periods during which we intend to create significant increases in value. This strategy has resulted in capital gains that increase our investment capital base. In implementing this strategy, we continually evaluate potential acquisition opportunities. These opportunities may come from new properties as well as acquisitionsthe acquisition of properties in which we already hold a joint venture interest or, from time to time, from our debt and preferred equity investments.
Through intimate knowledge of our marketsmarket, we have developed an ability to source transactions with superior risk-adjusted returns by capturing off-market opportunities. In rising markets, we primarily seek to acquire strategic vacancies that provide the opportunity to take advantage of our exceptional leasing and repositioning capabilities to increase cash flow and property value. In stable or falling markets, we primarily target assets featuring credit tenancies with fully escalated in-place rents to provide cash flow stability near-term and the opportunity for increases over time.
Management’s breadth of activities and expertise in New York City has also enabled us to identify and acquire retail properties in prime Manhattan locations.  Combining our real estate skills and ability to attract premier tenants has resulted in transactions that have provided significant capital appreciation.  This same market penetration has permitted us to grow a portfolio of high quality, well-located multifamily properties
We believe that we have many advantages over our competitors in acquiring core and non-core properties, both directly and through our joint venture program that includes a predominance of high qualityhigh-quality institutional investors. Those advantages include: (i) senior management's average 29 years oflong-tenured experience leading a full-service, fully-integratedfully integrated real estate company focused, principally, on the Manhattan market; (ii) the ability to offer tax-advantagedtax-efficient structures to sellers through the exchange of ownership interests, including units in our Operating Partnership; and (iii) the ability to underwrite and close transactions on an expedited basis even when the transaction requiresinvolves a complicated structure.
Property Dispositions
We continually evaluate our portfolio to identify those properties that are most likely to meet our long-term earnings and cash flow growth objectives and contribute to increasing portfolio value. Properties that no longer meet our objectives are evaluated for sale or in certain cases, joint venture, to release equity created through management's value enhancement programs or to take advantage of attractive market valuations.
We seek to efficiently deploy the capital proceeds generated from these dispositions into other property acquisitions, anddevelopment or redevelopment projects or debt and preferred equity investments that we expect will provide enhanced future capital gains and earnings growth opportunities. Management may also elect to utilize the capital proceeds from these dispositions to repurchase shares of our common stock, repay existing indebtedness of the Company or its subsidiaries, repurchase shares of our common stock, or increase cash liquidity.
Property Repositioning
Our extensive knowledge of the marketsmarket in which we operate and our ability to efficiently plan and execute capital projects provide the expertise to enhance returns by repositioning properties that are underperforming. Many of the properties we own or seek to acquire feature unique architectural design elements including large floor plates, andor other amenities and characteristics that can be appealing to tenants when fully exploited. Our strategic investment in these properties, combined with our active management and pro-active leasing, provide the opportunity to creatively meet market needs and generate favorable returns.
Development / Redevelopment
Our constant interactions with tenants and other market participants keep us abreast of innovations in workplace layout, store design and smart living. We leverage this information to identify properties primed for development or redevelopment to meet these demands and unlock value. Our deep visibility into the market allows us to acquire locations before others see the opportunity. The expertise and relationships that we have built from managing complex construction projects in New York City

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and its surrounding areas allow us to cost efficiently add new and renovated assets of the highest quality and desirability to our operating portfolio.
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Debt and Preferred Equity Investments
We invest in well-collateralized debt and preferred equity investments in the markets in which we operate, primarilyprincipally New York City, that generate attractive yields. See Note 5, "Debt and Preferred Equity Investments," in the accompanying consolidated financial statements. Knowledge of our markets and our leasing and asset management expertise provide underwriting capabilities that enable a highly educated assessment of risk and return. The benefits of this investment program, which has a carefully managed aggregate size, net of anticipated payoffs, generally not to exceed 10% of our total enterprise value, include the following:
•Our typical investments provide high current returns at conservative exposure levels and, in certain cases, the potential for future capital gains. Because we are the largest commercial property owner in Manhattan, ourOur expertise and operating capabilities provide both insight and operating skills that mitigate risk.
•In certain instances, these investments may serve as a potential source of real estate acquisitions for us when a borrower seeks an efficient off-market transaction. Ownership knows that we are fully familiar with the asset through our existing investment, and that we can close more efficiently and quickly than others.us. Property owners may also provide us the opportunity to consider off-market transactions involving other properties they own because we have previously provided debt or preferred equity financing to them.
These investments are•Our debt and preferred equity investment strategy is concentrated in Manhattan, which helps us gain market insight, awareness of upcoming investment opportunities and foster key relationships that may provide access to future investment opportunities.
Capital Resources
Our objective is to maintain multiple sources of efficient corporate and property level capital to obtain the most appropriate and lowest cost of capital. This objective is supported by:
•Property operations that generally provide stable and growing cash flows through market cycles, due to favorable supply/demand metrics in Manhattan, long average lease terms, high credit quality tenants and superior leasing, operating and asset management skills;
•Concentration of our activities in a Manhattan market that is consistently attractive to property investors and lenders through market cycles relative to other markets;
•Maintaining strong corporate liquidity and careful management of future debt maturities; and
•Maintaining access to corporate capital markets through balanced financing and investment activities that result in strong balance sheet and cash flow metrics.
Manhattan Office Market Overview
Manhattan is by far the largest office market in the United States containing more rentable square feet than the next four largest central business district office markets combined. The properties in our portfolio are concentrated in some of Manhattan's most prominent midtown locations.
According to Cushman and Wakefield Research Services as of December 31, 2017,2022, Manhattan has a total office inventory of approximately 399.0414.6 million square feet, including approximately 243.1258.4 million square feet in midtown. We estimate that approximately 18.3 million square feetThe properties in our portfolio are primarily concentrated in some of new construction class-A buildings over 250,000 square feet will become available between 2018 and 2022 in Manhattan, approximately 45.4% of which is pre-leased. We estimate that this increase is partially offset by approximately 4.4 million square feet which will be converted from office use to an alternative use. This will add only approximately 0.7% per year to Manhattan's total inventory, net of conversions, over the next five years.most prominent midtown locations.
While the near-term addition of new supply to the Manhattan office inventory is expected to be nominal relative to the size of the overall market, we view any additionalnew supply in locations near a variety of transportation options as a positive to the Manhattan office market given the older vintage of the majority of Manhattan’s office inventory and the increasing desire of certain tenants to occupy new, high quality, efficient office space which often isn’t availablethat provides for easy commutability for their employees.
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Leasing activity in older vintage properties. In addition, Manhattan’s office inventory has only grown by approximately 8.3Manhattan improved significantly in 2022. According to Cushman and Wakefield Research Services, the total volume of leases signed in Manhattan for the years ended December 31, 2022 and 2021 was 24.3 million and 18.6 million square feet, overrespectively. Manhattan's diverse tenant base is exemplified by the last 25-30 years.following tables, which show the percentage of leasing volume attributable to each industry:
Percent of Manhattan Leasing Volume (1)
Industry20222021
Financial Services40.1 %29.9 %
Technology, Advertising, Media, and Information ("TAMI")18.2 %33.4 %
Professional Services11.4 %6.0 %
Public Sector7.9 %4.2 %
Legal Services7.6 %6.9 %
Retail/Wholesale5.7 %7.1 %
Health Services4.2 %5.7 %
Other4.9 %6.8 %
(1)Source: Cushman and Wakefield Research Services
General Terms of Leases in the Manhattan Markets
Leases entered into for space in Manhattan typically contain terms that may not be contained in leases in other U.S. office markets. The initial term of leases entered into for space in Manhattan is generally seven to fifteen years. Tenants leasing space in excess of 10,000 square feet for an initial term of 10 years or longer often will negotiate an option to extend the term of the lease for one or two renewal periods, typically for a term of five years each. The base rent during the initial term often will provide for agreed-upon periodic increases over the term of the lease. Base rent for renewal terms is most often based upon the then fair

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market rental value of the premises as of the commencement date of the applicable renewal term (generally determined by binding arbitration in the event the landlord and the tenant are unable to mutually agree upon the fair market value), though base rent for a renewal period may be set at 95% of the then fair market rent. Very infrequently, leases may contain termination options whereby a tenant can terminate the lease obligation before the lease expiration date uponwith payment of a penalty together with repayment of the unamortized portion of the landlord's transaction costs (e.g., brokerage commissions, free rent periods, tenant improvement allowances, etc.).
In addition to base rent, a tenant will generally also pay its pro rata share of increases in real estate taxes and operating expenses for the building over a base year, which is typically the year during which the term of the lease commences, based upon the tenant's proportionate occupancy of the building. In some smaller leases (generally less than 10,000 square feet), in lieu of paying additional rent based upon increases in building operating expenses, base rent will be increased each year during the lease term by a set percentage on a compounding basis (though the tenant will still pay its pro rata share of increases in real estate taxes over a base year).
Tenants typically receive a free rent period following commencement of the lease term, which in some cases may coincide with the tenant's construction period.
The landlord most often supplies electricity either on a sub-metered basis at the landlord's cost plus a fixed percentage or on a rent inclusion basis (i.e., a fixed fee is added to the base rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services, other than electricity, such as heat, air conditioning, freight elevator service during business hours and base building cleaning typically are provided at no additional cost, but are included in the building's operating expenses. The tenant will typically pay additional rentamounts only for services whichthat exceed base building services or for services whichthat are provided other than during normal business hours.
In a typical lease for a new tenant renting in excess of 10,000 square feet, the landlord will deliver the premises with existing improvements demolished. In such instances, the landlord will typically provide a tenant improvement allowance, which is a fixed sum that the landlord makes available to the tenant to reimburse the tenant for all or a portion of the tenant's initial construction of its premises. Such sum typically is payable as work progresses, upon submission by the tenant of invoices for the cost of construction and lien waivers. However, in certain leases (most often for relatively small amounts of space), the landlord will construct the premises for the tenant at a cost to the landlord not to exceed an agreed upon amount with the tenant paying any amount in excess of the agreed upon amount. In addition, landlords may rent space to a tenant that is "pre-built" (i.e., space that was constructed by the landlord in advance of lease signing and is ready to for the tenant to move in with the tenant selecting paint and carpet colors).
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Occupancy
The following table sets forth the weighted average occupancy rates at our office properties based on space leased for properties owned by us as of December 31, 20172022:
 Leased Occupancy as of December 31,
Property20222021
Same-Store office properties - Manhattan (1)
91.2%93.0%
Manhattan office properties90.7%92.1%
Suburban office properties79.3%78.9%
Unconsolidated joint venture office properties94.3%94.1%
Portfolio (2)
90.3%91.6%
(1)All office properties located in Manhattan owned by us as of January 1, 2021 and 2016:still owned by us in the same manner as of December 31, 2022. Percent Occupied includes leases signed but not yet commenced.
(2)Excludes properties under development.
  Percent Occupied as of December 31,
Property 2017 2016
Same-Store properties (1) - Manhattan
 95.3% 95.9%
Same-Store properties (1) - Suburban
 87.2% 83.7%
Manhattan properties 93.9% 94.9%
Suburban properties 84.0% 80.7%
Unconsolidated Joint Venture Properties 95.4% 91.8%
Portfolio 92.6% 92.8%
(1)Same-Store properties represents all operating properties owned by us at January 1, 2016 and still owned by us in the same manner at December 31, 2017, which totaled 43 of our 60 consolidated operating properties.
Market Rent GrowthTrajectory
We are constantly evaluating our schedule of future lease expirations to mitigate occupancy risk while maximizing rent growth.net effective rents. We proactively manage future lease expirations based on our view of estimated current and future market conditions and asking rents. The following table sets forth our future lease expirations, excluding triple net leases, and management's estimates of market asking rents. Taking rents are typically lower than asking rents and may vary from building to building. There can be no assurances that our estimates of market rents are accurate or that market rents currently prevailing will not erode or outperform in the future.

ANNUAL LEASE EXPIRATIONS - MANHATTAN OPERATING PROPERTIES
Consolidated PropertiesJoint Venture Properties
Year of Lease ExpirationNumber of Expiring Leases (1)Rentable Square Footage of Expiring LeasesPercentage of Total
Sq. Ft.		 Annualized Cash Rent of Expiring Leases Annualized Cash Rent Per Square Foot of Expiring Leases
$/psf (2)		Current Weighted Average Asking Rent
$/psf (3)		Number of Expiring Leases (2)Rentable Square Footage of Expiring LeasesPercentage of Total
Sq. Ft.		 Annualized Cash Rent of Expiring Leases Annualized Cash Rent Per Square Foot of Expiring Leases
$/psf (2)		Current Weighted Average Asking Rent $/psf (3)
2022 (4)13 53,301 0.60 %$4,079,391$76.53 $69.29 5 53,011 0.40 %$3,872,976 $73.06 $68.96 
1st Quarter 202312 161,834 1.80 %$13,445,071$83.08 $83.87 7 468,045 3.50 %$38,824,470 $82.95 $70.54 
2nd Quarter 202318 150,621 1.70 %11,880,107 78.87 75.01 3 26,097 0.20 %2,298,635 88.08 82.75 
3rd Quarter 202321 210,174 2.30 %10,045,563 47.80 81.88 6 51,515 0.40 %5,701,294 110.67 99.92 
4th Quarter 202321 411,436 4.60 %25,311,876 61.52 66.25 8 126,298 0.90 %12,818,602 101.49 76.94 
Total 202372 934,065 10.40 %$60,682,617$64.97 $74.23 24 671,955 5.00 %$59,643,001 $88.76 $74.47 
202457 449,778 5.00 %$26,549,129$59.03$56.7730 1,014,470 7.60 %$112,022,038 $110.42 $79.55 
202562 497,644 5.60 %43,715,047 87.84 70.36 26 425,848 3.20 %41,695,535 97.91 85.76 
202648 1,068,123 11.90 %87,743,733 82.15 76.49 35 587,690 4.40 %63,670,124 108.34 91.64 
202756 718,866 8.00 %57,264,515 79.66 70.68 26 283,795 2.10 %38,193,157 134.58 110.46 
202833 661,497 7.40 %48,905,505 73.93 70.06 30 294,902 2.20 %32,090,762 108.82 104.10 
202921 400,505 4.50 %27,172,272 67.85 63.50 17 884,966 6.60 %66,377,729 75.01 75.37 
203021 801,723 9.00 %54,260,411 67.68 66.24 18 455,760 3.40 %45,619,919 100.10 89.52 
203116 474,630 5.30 %34,630,194 72.96 77.71 23 2,802,003 21.00 %205,840,767 73.46 76.24 
Thereafter62 2,885,420 32.30 %189,149,932 65.55 66.89 76 5,869,628 44.10 %535,962,560 91.31 97.11 
461 8,945,552 100.00 %$634,152,746$70.89 $69.40 310 13,344,028 100.00 %$1,204,988,568 $90.30 $88.27 
NOTE: Data excludes space currently occupied by SL Green's corporate offices
8(1)Tenants may have multiple leases.
Table(2)Represents in place annualized rent allocated by year of Contentsexpiration.

(3)Management's estimate of current average asking rents for currently occupied space as of December 31, 2022. Taking rents are typically lower than asking rents and may vary from property to property.

(4)Includes month to month holdover tenants that expired prior to December 31, 2022.

  ANNUAL LEASE EXPIRATIONS - MANHATTAN OPERATING PROPERTIES
  Consolidated Properties Joint Venture Properties
Year of Lease Expiration Number of Expiring Leases (2)
Rentable Square Footage of Expiring Leases
Percentage of Total
Sq. Ft.

 Annualized Cash Rent of Expiring Leases
 
 Annualized Cash Rent Per Square Foot of Expiring Leases
$/psf (3)

Current Weighted Average Asking Rent
$/psf (4)

 Number of Expiring Leases (2)
Rentable Square Footage of Expiring Leases
Percentage of Total
Sq. Ft.

 Annualized Cash Rent of Expiring Leases
 
 Annualized Cash Rent Per Square Foot of Expiring Leases
$/psf (3)

Current Weighted Average Asking Rent $/psf (4)
                 
2017 (1)
 9
10,006
0.07%$460,049 
$45.98

$50.24
 2
9,390
0.09%
$838,610
 
$89.31

$86.81
                 
1st Quarter 2018 
 19
175,633
1.28%$19,756,616 
$112.49

$147.33
 4
32,921
0.32%
$3,149,806
 
$95.68

$88.74
2nd Quarter 2018 
 12
22,359
0.16%1,157,748
 51.78
49.77
 4
17,004
0.17%1,326,190
 77.99
72.98
3rd Quarter 2018 15
205,231
1.49%14,262,717
 69.50
72.89
 6
34,434
0.34%3,115,836
 90.49
71.64
4th Quarter 2018 26
127,928
0.93%10,383,082
 81.16
80.69
 10
85,572
0.83%9,956,499
 116.35
84.55
                 
Total 2018 72
531,151
3.86%$45,560,163 
$85.78

$98.41
 24
169,931
1.66%
$17,548,331
 
$103.27

$81.59
                 
2019 82
1,044,922
7.61%
$76,410,441
 
$73.13

$70.38
 26
441,261
4.30%
$35,603,350
 
$80.69

$84.85
2020 98
2,328,968
16.95%154,071,400
 66.15
70.50
 23
311,702
3.03%20,180,982
 64.74
70.73
2021 98
1,786,589
13.01%116,415,234
 65.16
67.50
 29
369,113
3.59%24,084,040
 65.25
74.12
2022 100
1,143,613
8.32%76,759,862
 67.12
75.58
 31
289,323
2.82%24,224,560
 83.73
86.48
2023 48
832,935
6.06%49,899,730
 59.91
64.56
 15
468,914
4.57%37,810,443
 80.63
77.77
2024 31
278,486
2.03%19,641,171
 70.53
74.41
 17
990,382
9.64%95,723,469
 96.65
86.24
2025 32
550,101
4.00%54,587,969
 99.23
95.42
 16
591,141
5.76%45,575,954
 77.10
81.52
2026 29
799,693
5.82%51,742,849
 64.70
68.62
 15
432,478
4.21%43,371,726
 100.29
109.34
Thereafter 112
4,430,805
32.27%260,536,204
 58.80
65.81
 48
6,197,422
60.33%419,550,447
 67.70
83.66
  711
13,737,269
100.00%$906,085,072 
$65.96

$70.68
 246
10,271,057
100.00%
$764,511,912
 
$74.43

$83.96
  ANNUAL LEASE EXPIRATIONS - SUBURBAN OPERATING PROPERTIES
  Consolidated Properties Joint Venture Properties
Year of Lease Expiration Number of Expiring Leases (2)
Rentable Square Footage of Expiring Leases
Percentage of Total
Sq. Ft.

 Annualized Cash Rent of Expiring Leases
 
 Annualized Cash Rent Per Square Foot of Expiring Leases
$/psf (3)

Current Weighted Average Asking Rent
$/psf (4)

 Number of Expiring Leases (2)
Rentable Square Footage of Expiring Leases
Percentage of Total
Sq. Ft.

 Annualized Cash Rent of Expiring Leases
 
 Annualized Cash Rent Per Square Foot of Expiring Leases
$/psf (3)

Current Weighted Average Asking Rent
$/psf (4)

                 
2017 (1)
 14
53,994
2.20%$2,309,173 $42.77$38.00 3
19,684
4.50%$771,937 $39.22$35.61
                 
1st Quarter 2018 14
55,557
2.27%
$1,753,503
 
$31.56

$30.49
 —
—
—%
$—
 
$—

$—
2nd Quarter 2018 6
31,525
1.29%981,528
 31.13
32.05
 —
—
—%—
 —
—
3rd Quarter 2018 10
49,044
2.00%1,672,657
 34.11
34.13
 —
—
—%—
 —
—
4th Quarter 2018 9
68,782
2.81%2,243,941
 32.62
36.31
 —
—
—%—
 —
—
                 
Total 2018 39
204,908
8.37%
$6,651,629
 
$32.46

$33.55
 —
—
—%
$—
 
$—

$—
                 
2019 37
395,568
16.15%
$11,387,110
 
$28.79

$29.12
 8
39,354
9.00%
$1,322,125
 
$33.60

$36.00
2020 46
284,734
11.63%9,905,255
 34.79
35.64
 5
47,964
10.96%1,837,847
 38.32
35.67
2021 32
296,334
12.10%9,716,915
 32.79
32.85
 5
104,296
23.84%4,001,316
 38.36
36.00
2022 28
124,214
5.07%4,579,117
 36.86
39.02
 2
18,012
4.12%658,428
 36.55
36.00
2023 24
193,443
7.90%6,604,408
 34.14
33.29
 3
52,010
11.89%1,956,588
 37.62
35.80
2024 6
113,413
4.63%3,220,430
 28.40
28.46
 2
52,707
12.05%1,860,324
 35.30
36.00
2025 10
109,013
4.45%3,434,309
 31.50
33.51
 1
1,729
0.40%59,040
 34.15
36.00
2026 15
284,252
11.61%9,523,950
 33.51
33.18
 4
88,854
20.31%3,009,736
 33.87
35.96
Thereafter 21
389,273
15.89%10,526,113
 27.04
27.96
 1
12,862
2.93%417,546
 32.46
36.00
  272
2,449,146
100.00%
$77,858,409
 
$31.79

$32.18
 34
437,472
100.00%
$15,894,887
 
$36.33

$35.91
(1)Includes month to month holdover tenants that expired prior to December 31, 2017.
(2)Tenants may have multiple leases.
(3)Represents in place annualized rent allocated by year of expiration.
(4)Management's estimate of current average asking rents for currently occupied space as of December 31, 2017. Taking rents are typically lower than asking rents and may vary from property to property.
Industry Segments
The Company is a REIT that is engaged in the acquisition, development, redevelopment, repositioning, ownership, management and operation of commercial and residential real estate properties, principally office properties, located in the New York metropolitan area, principally Manhattan, and has two reportable segments: real estate and debt and preferred equity investments. Our industry segments are discussed in Note 21, "Segment Information," in the accompanying consolidated financial statements.
At
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As of December 31, 2017,2022, our real estate portfolio was primarilyprincipally located in one geographical market, theManhattan, a borough of New York metropolitan area.City. The Company's primary sources of real estate revenue are generated from tenant rents, and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of cleaning, security, maintenance, utility costs, real estate taxes and, at certain properties, ground rent expense. As of December 31, 2017,2022, one tenant in our office portfolio, Paramount Global (formerly ViacomCBS Inc.), contributed 8.0%5.4% of our share of annualized

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cash rent. No other tenant contributed more than 5.0% of our share of annualized cash rent. No property contributed in excess of 10.0% of our consolidated total revenue for 2017.2022.
AtAs of December 31, 2017,2022, we held debt and preferred equity investments with a book value of $2.3 billion, including $0.2 billion of$623.3 million, excluding debt and preferred equity investments and other financing receivables totaling $8.5 million that are included in balance sheet line items other than the Debt and Preferred Equity Investmentspreferred equity investments line item. AtAs of December 31, 2017,2022, the assets underlying our debt and preferred equity investments were located in the New York metropolitan area.City. The primary sources of debt and preferred equity revenue are generated from interest and fee income.
EmployeesHuman Capital
AtOur employees are our most important asset. As we navigated through the challenges of the COVID-19 pandemic, we implemented new employee programs and physical office space enhancements to keep employees healthy, safe, and focused. Through the commitment of our employees, we have remained fully operational for all tenants, including the essential businesses that fill our buildings, and we were among the first employers in New York City to return 100% of our employees to the office in June 2020.
We are focused on fostering an inclusive workforce that attracts and retains highly talented and diverse individuals. We are dedicated to creating a diverse workplace where employees feel valued and accepted regardless of race, color, religion, national origin, gender, sexual orientation, age, disability, or veteran status. We have a dual-track performance management program, which includes both ongoing goal setting and annual performance reviews for all employees. Communication, teamwork, and collaboration are the fundamental attributes that are the foundation of our company culture. We promote the professional development of our employees by offering opportunities to participate in trainings and continuing education programs. We also offer a leading benefits package that includes extensive medical coverage, mental health and wellness services, paternal benefits, and financial resources.
Our compensation program is designed to incentivize employees by offering competitive compensation comprised of fixed and variable pay including base salaries and cash bonuses. Many of our employees also receive equity awards that are subject to vesting over a multi-year period based on continued service. We believe these equity awards serve as an additional retention tool for our employees. By cultivating a work culture that prioritizes our people through training, diversity, education, and volunteerism, we have been able to retain a long-tenured staff with 44% of current employees having a tenure of five years or more and a management team that has an average tenure of 20.3 years.
As of December 31, 2017,2022, we employed 1,0651,137 employees, 212303 of whom were managers and professionals, 754 of whom were hourly-paid employees involvedemployed in building operations and 99 of whom were clerical, data processing and other administrative employees.our corporate offices. There are currently sixfive collective bargaining agreements which cover the union workforce that services substantially all of our properties.
Climate Change
Our assessment of climate-related issues includes physical risks, transitions risks, and associated opportunities. We believe our sustained focus on Environmental, Social and Governance ("ESG") issues has led to effective risk-management practices that influence strategic decisions.
The Company takes a proactive approach to climate-related risk management throughout the organization. ESG considerations are embedded into our governance structure and management responsibilities, driving our climate-related risk assessment processes and enabling comprehensive risk mitigation responses to be implemented in all relevant business segments across short-term (0-1 year), medium-term (1-15 years), and long-term (15-40 years) time horizons.
With our roots in New York City, we are at the center of one of the world's most ambitious climate legislative environments. Through the Climate Leadership and Community Protection Act signed into law in 2019, New York State mandated the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040. New York City enacted Local Law 97 (LL97) in 2019 under the Climate Mobilization Act, setting carbon caps for large buildings starting in 2024 as part of a broader commitment to reducing greenhouse gas emissions by 40% by 2030, and by 80% by 2050. We do not anticipate any material financial impact on our portfolio in the first compliance period of 2024 to 2029.
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The Company has demonstrated a commitment to transparency on climate issues via annual public reporting informed by widely-adopted frameworks, including Global Reporting Initiative ("GRI"), Global Real Estate Benchmark ("GRESB"), Sustainability Accounting Standards Board ("SASB"), and the CDP (formerly the Carbon Disclosure Project). In 2021, the Company released its first Task Force on Climate-related Financial Disclosures ("TCFD") report structured in accordance with the 11 TCFD recommendations covering its climate governance, strategy, management, and metrics. This report, along with the Company's current ESG Report, is available under "Reports & Resources" in the "Sustainability" section on our website. The Company is also committed to setting near-term Scope 1 and Scope 2 science-based emissions reduction targets with the SBTi, which are currently in the validation process. Our goal is to reduce emissions for our operationally controlled portfolio to align it with the 1.5 degree Celsius climate scenario.
Highlights from 20172022
Our significant achievements from 20172022 included:
Corporate
Repurchased 8.3 million shares of our common stock under our share repurchase program at an average price of $101.64 per share and increased the size of our share repurchase program by $500 million to $1.5 billion.
Executed a Guaranteed Maximum Price contract, secured a New Building Permit and commenced vertical construction at One Vanderbilt.
Leasing
•Signed 191141 Manhattan office leases covering approximately 1.52.1 million square feet. The mark-to-market on signed Manhattan office leases was 11.3% higher in 2017 than the previously fully escalated rents on the same spaces.
Signed 89 Suburban office leases covering approximately 0.5 million square feet. The mark-to-market on signed Suburban office leases was 2.9% higher in 2017 than the previously fully escalated rents on the same spaces.
Signed long-term leases with DZ Bank and DVB Bank at One Vanderbilt for a total of 35,382 square feet. The 15-year leases cover the entire 26th floor of the 58-story skyscraper currently being constructed next to Grand Central Terminal.
Signed leases with LINE FRIENDS for 7,711 square feet, of which 4,629 square feet is at-grade, and Viacom for 8,700 square feet at 1515 Broadway for the retail space previously occupied by Aeropostale.
•Signed a new lease with Ascensia Diabetes Care USFranklin Templeton for 347,474 square feet at One Madison Avenue.
•Signed a renewal and expansion lease with Kinney Systems, Inc. for 65,00064,926 square feet at 555 West 57th Street.
•Signed a new lease with International Business Machines Corporation ("IBM") for 328,000 square feet at One Madison Avenue.
•Signed a new lease with a global information services company for 236,026 square feet at 100 Summit Lake Drive in Valhalla, New YorkPark Avenue.
•Signed a lease renewal with UN Women for 11.0 years.85,522 square feet at 220 East 42nd Street.    
Acquisitions
Together with private investment manager RXR Realty closed•Closed on the acquisition of a combined 48.7% interest in Worldwide Plaza based on a gross asset valuation of $1.725 billion. The acquisition allows the Company to expand its footprint on Manhattan's West Side through investing in a Class A asset that is fully leased to institutional tenants.
Dispositions
Closed on the sale of a 27.6% interest in One Vanderbilt to the National Pension Service of Korea ("NPS") and a 1.4% interest to Hines Interest LP ("Hines").
Closed on the sale of a 30% interest in 1515 Broadway245 Park Avenue at a gross asset valuation of $1.950 billion, pursuant$2.0 billion. The Company previously had a preferred equity investment in the property with a book value of $195.6 million.
•Converted the previous mezzanine debt investment in 5 Times Square to a 31.55% common equity interest. The Company's mezzanine debt investment in the property had a book value of $139.1 million.
•Closed on the acquisition of 450 Park Avenue for $445.0 million in a newly formed joint venture. The Company retained a 25.1% in the property.
Dispositions
•Together with our joint venture partner, entered into an agreement to sell interests totaling 43%.the retail condominiums at 121 Greene Street for a gross sales price of $14.0 million. The balance of the transaction closedis expected to close in the first quarter of 2018.2023.
Entered into an agreement to sell 600 Lexington Avenue for a gross asset valuation of $305.0 million. The transaction closed in January 2018.
•Closed on the sale of 16 Court Street in Brooklyn, New York414,317 square feet of office leasehold condominium units at 885 Third Avenue for a gross asset valuationtotal consideration of $171.0$300.4 million. The Company retained the remaining 218,796 square feet of the building.
•Closed on the sale of 680-750 Washington Boulevard, in Stamford, Connecticut,the vacant office condominium at 609 Fifth Avenue for a gross asset valuationsales price of $97.0$100.5 million.
•Conveyed 1591-1597 Broadway for a gross sales price of $121.0 million.
•Together with our joint venture partner, closed on the sale of 1080 Amsterdam Avenue for a gross sales price of $42.5 million. Simultaneously, the Company sold its remaining interests in the Stonehenge portfolio for gross consideration of $1.0 million.
•Closed on the sale of 102 Greene Street707 Eleventh Avenue for a gross asset valuationsales price of $43.5$95.0 million.
Finance
•Closed on a new $400.0 million corporate unsecured term loan facility. The facility matures in April 2024, as fully extended. In January 2023, the salefacility was increased by $25.0 million to $425.0 million.
•Refinanced the mortgage loan on 100 Church Street. The new $370.0 million mortgage loan, which replaced the previous $197.8 million mortgage, has a term of 125 Chubb Avenue in Lyndhurst, New Jersey, forup to 5 years and bears interest at a gross asset valuationfloating rate of $29.5 million.2.00% over Term SOFR.

•Executed $2.9 billion of LIBOR or SOFR swaps and caps to mitigate the effect of rising interest rates. As a result of executed derivatives, the Company's share of net floating rate debt exposure was reduced to $1.1 billion, equating to 9.1% of total combined debt, as of December 31, 2022.
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Closed on the sale of 520 White Plains Road in Tarrytown, New York, for a gross asset valuation of $21.0 million
Sold 4,774,220 common shares of New York REIT, Inc., or NYRT, representing the Company's total holdings, generating a $3.3 million gain.
Debt and Preferred Equity Investments
Originated and retained, or acquired, $1.3 billion•Funded $100.5 million in debt and preferred equity investments, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization, and recorded $813$565.9 million of proceeds from sales, repayments and participations.
Corporate
Finance
Fitch Ratings upgraded•Repurchased 2.0 million shares of our common stock and redeemed 0.8 million units of our Operating Partnership under our $3.5 billion share repurchase program at an average price of $70.24 per share. From program inception through December 31, 2022, we have repurchased a total of 36.1 million shares of our common stock and redeemed 2.6 million units of our Operating Partnership under the corporate credit ratings for the Company.
Returned to the public unsecured debt markets withprogram at an issuanceaverage price of $500.0 million of 5-year, 3.25% senior unsecured notes.
Issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The Notes priced at 105.334% plus accrued interest with a yield to maturity of 3.298%.
Refinanced, extended, and expanded our unsecured corporate credit facility by $217 million, to $3.0 billion. The new facility, which reduced overall borrowing costs, includes a $1.5 billion revolving line of credit and $1.3 billion funded term loan component that both mature in 2023 as well as a new $200.0 million 7-year term loan component that matures in 2024.
Closed on a new $300.0 million debt and preferred equity liquidity facility, which provides for favorable financing of senior mortgage loan investments. The new facility has a 1-year term with two 1-year extension options.
In conjunction with our acquisition of an interest in Worldwide Plaza, together with our joint venture partners, closed on a $1.2 billion financing of the property. The new loan has a term of 10 years and carries a fixed interest rate of 3.98%.
Together with our joint venture partner, closed on a $1.2 billion refinancing of 280 Park Avenue, which bears interest at a floating rate of 1.73% over LIBOR. The new loan matures in 2024, as extended, and replaces the previous $900.0 million of indebtedness on the property.
Together with our joint venture partner, closed on $275.0 million of financing of 650 Fifth Avenue. The financing matures in October 2022 and is comprised of a $210.0 million mortgage that carries a fixed interest rate of 4.460% and a $65.0 million mezzanine loan that carries a fixed interest rate of 5.450%.
Together with our joint venture partner, closed on a $195.0 million refinancing of 1552 Broadway, which bears interest at a floating rate of 2.65% over LIBOR. The new loan matures in 2022, as extended, and replaces the previous $185.4 million of indebtedness on the property.
Together with our joint venture partner, closed on a $195.0 million refinancing of 55 West 46th Street, known as Tower 46, which bears interest at a floating rate of 2.125% over LIBOR. The new loan matures in 2023, as extended, and replaces the previous $165.6 million of indebtedness on the property.
Together with our joint venture partner, closed on a $170.0 million refinancing of 10 East 53rd Street, which bears interest at a floating rate of 2.25% over LIBOR. The new mortgage has a 3-year term with two 1-year extension options and replaces the previous $125.0 million of mortgage indebtedness on the property.
Together with our joint venture partner, closed on a $35.5 million financing of 1080 Amsterdam Avenue. The new mortgage has a 5-year term and carries a fixed effective interest rate of 3.50%.

$87.51 per share.
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ITEM 1A.    RISK FACTORS
Declines in the demand for office space in the New York City,metropolitan area, and in particular midtown Manhattan, as well as our Suburban markets, could adversely affect the value of our real estate portfolio and our results of operations and, consequently, our ability to service current debt and to pay dividends and distributions to security holders.
TheA significant majority of our property holdings are comprised of commercial office properties located in midtown Manhattan. Our property holdings also include a number ofsome retail properties and multifamily residential properties. As a result of the concentration of our holdings, our business is dependent on the condition of the New York Citymetropolitan area economy in general and the market for office space in midtown Manhattan in particular. Future weakness and uncertainty in the New York Citymetropolitan area economy could materially reduce the value of our real estate portfolio and our rental revenues, and thus adversely affect our cash flow and our ability to service currentour debt obligations and to pay dividends and distributions to security holders. Similarly, future weakness
The COVID-19 pandemic caused severe disruptions with wide ranging impacts to virtually every segment of society and uncertaintythe global economy. Office companies in particular have been affected by the increased acceptance of flexible or hybrid work schedules, allowing employees to work remotely and collaborate through video or teleconferencing instead of in-office attendance. The continuation or further increase to remote work policies and flexible work arrangements may cause office tenants to reassess their long-term physical needs, which would have an adverse effect on our suburban markets could adversely affect ourbusiness, results of operations, liquidity, cash flowflows, prospects, and our ability to service current debtachieve forward-looking targets and to pay dividends and distributions to security holders.expectations.
We may be unable to renew leases or relet space as leases expire.
If tenants decide not to renew their leases upon expiration, we may not be able to relet the space. Even if tenants do renew or we can relet the space, the terms of a renewal or new lease, taking into account among other things, the cost of improvements to the property and leasing commissions, may be less favorable than the terms in the expired leases. As of December 31, 2017,2022, approximately 50.7% and approximately 17.0%40.8% of the rentable square feet at our consolidated properties and approximately 23.5% of the rentable square feet at our unconsolidated joint venture properties are scheduled to expire by December 31, 2022 at our consolidated properties and unconsolidated joint venture properties, respectively, and as2027. As of December 31, 2017,2022, these leases had annualized escalated rent totaling $514.2$305.2 million and $131.1$438.1 million, respectively. In addition, changes in space utilization by tenants may impact our ability to renew or relet space without the needcause us to incur substantial costs in renovating or redesigning the internal configuration of the relevant property.property in order to renew or relet space. If we are unable to promptly renew the leases or relet the space at similar rates or if we incur substantial costs in renewing or reletting the space, our cash flow and ability to service our debt obligations and pay dividends and distributions to security holders could be adversely affected.
We face significant competition for tenants.
The leasing of real estate is highly competitive. The principal competitive factors are rent, location, lease term, lease concessions, services provided and the nature and condition of the property to be leased. We directly compete with all owners, developers and operators of similar space in the areas in which our properties are located.
Our commercial office properties are concentrated in highly developed areas of midtown Manhattan and certain Suburban central business districts, or CBDs.the New York metropolitan area. Manhattan is the largest office market in the United States. The number of competitive office properties in Manhattan and CBDs in which our Suburban properties are located,the New York metropolitan area, which may be newer or better located than our properties, could have a material adverse effect on our ability to lease office space at our properties, and on the effective rents we are able to charge.
The expiration of long term leases or operating sublease interests where we do not own a fee interest in the land could adversely affect our results of operations.
Our interests in 420 Lexington Avenue, 461 Fifth Avenue, 711 Third Avenue, 625 Madison Avenue, 1185 Avenue of the Americas, 1080 Amsterdam Avenue, and 30 East 40th Street, all in Manhattan, and 1055 Washington Avenue, Stamford, Connecticut,certain properties are entirely or partially comprised of either long-term leasehold or operating sublease interests in the land and the improvements, rather than by ownership of fee interest in the land.
We have As of December 31, 2022, the ability to acquire the fee position at 461 Fifth Avenue for a fixed price on a specific date and own 50% of the fee position at 711 Third Avenue. The average remaining termexpiration dates of these long-term leases asrange from 2043 to 2119, including the effect of December 31, 2017, including our unilateral extension rights onat each of the properties, is 50 years.these properties. Pursuant to the leasehold arrangements, we, as tenant under the long-term leasehold or the operating sublease, perform the functions traditionally performed by landlords with respect to our subtenants. We are responsible for not only collecting rent from our subtenants, but also maintaining the property and paying expenses relating to the property. OurAnnualized cash rents, including our share of joint venture annualized cash rents, of the commercial officefrom properties held through long-term leases or operating sublease interests atas of December 31, 20172022 totaled $295.4$258.2 million, or 22.0%18.3%, of our share of total Portfolio annualized cash rent. Unless we purchase a fee interest in the underlying land or extend the terms of these leases prior to expiration, we will lose our right tono longer operate these properties upon expiration of the leases, which could adversely affect our financial condition and results of operations. Rent payments under leasehold or operating sublease interests are adjusted, within the parameters of the contractual arrangements, at certain intervals. Rent adjustments may result in higher rents that could adversely affect our financial condition and results of operation.

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We rely on five large properties for a significant portion of our revenue.
Five of our properties, One Vanderbilt Avenue, 245 Park Avenue, 11 Madison Avenue, 1185 Avenue of the Americas, 1515 Broadway, 420 Lexington Avenue, and 1 Madison Avenue1515 Broadway accounted for 32.8%40.0% of our Portfolio annualized cash rent, which includes our share of joint venture annualized cash rent, as of December 31, 2017.2022.
Our revenue and cash available to service debt obligations and for distribution to our stockholders would be materially adversely affected if any of these properties were materially damaged or destroyed. Additionally, our revenue and cash available to service debt obligations and for distribution to our stockholders would be materially adversely affected if tenants at these properties fail to timely make rental payments due to adverse financial conditions or otherwise, default under their leases or file for bankruptcy or become insolvent.
Our results of operations rely on major tenants and insolvency or bankruptcy of these or other tenants could adversely affect our results of operations.
Giving effect to leases in effect as of December 31, 20172022 for consolidated properties and unconsolidated joint venture properties, as of that date, our five largest tenants, based on annualized cash rent, accounted for 18.0%14.1% of our share of Portfolio annualized cash rent, with two tenants, Credit Suisse Securities (USA) LLC, and Viacom Internationalone tenant, Paramount Global (formerly ViacomCBS Inc.), accounting for 8.0%, and 4.4%5.4% of our share of Portfolio annualized cash rent, respectively.rent. Our business and results of operations would be adversely affected if any of our major tenants became insolvent, declared bankruptcy, or otherwise refused to pay rent in a timely fashion or at all. In addition, if business conditions in the industries in which our tenants are concentrated deteriorate, or economic volatility has a disproportionate impact on our tenants, we may experience increases in past due accounts, defaults, lower occupancy and reduced effective rents across tenants in such industries, which could in turn have an adverse effect on our business and results of operations.
Construction is in progress at our ground-up development project, One Vanderbilt.projects.
The Company continues its significant ground-upCompany's development project, One Vanderbilt. Construction of the project will not be completed for several years. As with any ground-up development project, unforeseen delaysprojects are subject to internal and otherexternal factors which may affect construction progress. Unforeseen matters could further delay completion, result in increased costs or otherwise have a material effect on our results of operations. In addition, the extended time frame to complete the project willthese projects could cause the projectthem to be subject to shifts and trends in the real estate market which may not be consistent with our current business plans for this property.the properties.
We are subject to risks that affect the retail environment.
Approximately 4.9%While only 3.5% of our Portfolio annualized cash rent is generated by retail properties, principally in Manhattan. As a result,Manhattan, we are subject to risks that affect the retail environment generally, including the level of consumer spending and preferences, consumer confidence, andelectronic retail competition, levels of tourism in Manhattan.Manhattan, and governmental measures aimed at slowing the spread of COVID-19. These factors could adversely affect the financial condition of our retail tenants and the willingness of retailers to lease space in our retail properties, which could in turn have an adverse effect on our business and results of operations.
AdverseWe are subject to the risk of adverse changes in economic and geopolitical conditions in general and the commercial office markets in particular could have a material adverse effect on our results of operations and financial condition and, consequently, our ability to service debt obligations and to pay dividends and distributions to security holders.particular.
Our business may behas been affected by the ongoing volatility in the U.S. financial and credit markets and other market, economic, or political challenges experienced by the U.S. economy or the real estate industry as a whole, including changes in law and policy accompanying the new administration and uncertainty in connection with any such changes. Future periodsPeriods of economic weakness couldor volatility result in reduced access to credit and/or wider credit spreads. Economic or political uncertainty, including concern about growth and the stability of the markets generally may lead manyand changes in interest rates, have led lenders and institutional investors to reduce and, in some cases, cease to provide funding to borrowers, which could adversely affectaffects our liquidity and financial condition, and the liquidity and financial condition of our tenants. Specifically, our business, may belike other real estate businesses, is affected by the following conditions:
•significant job losses or declining rates of job creation, which may decrease demand for our office space, causing market rental rates and property values to be negatively impacted;
our•the ability to borrow on terms and conditions that we find acceptable, may be limited, which could reducereduces our ability to pursue acquisition and development opportunities and refinance existing debt, reducing our returns from both our existing operations and our acquisition and development activities and increasing our future interest expense; and
•reduced values of our properties, which may limitlimits our ability to dispose of assets at attractiveacceptable prices orand to obtain debt financing secured by our properties and may reduce the availabilityproperties.
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Leasing office space to smaller and growth-oriented businesses could adversely affect our cash flow and results of operations.
Some of the tenants in our properties are smaller, growth-oriented businesses that may not have the financial strength of larger corporate tenants. Smaller companies generally experience a higher rate of failure than larger businesses. Growth-oriented

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firms may also seek other office space as they develop. Leasing office space to these companies could createcreates a higher risk of tenant defaults, turnover and bankruptcies, which could adversely affect our cash flow and results of operations.
We may suffer adverse consequences if our revenues decline since our operating costs do not necessarily decline in proportion to our revenue.
We earn a significant portion of our income from renting our properties. Our operating costs, however, do not necessarily fluctuate in direct proportion to changes in our rental revenue. As a result, our costs will not necessarilyIf revenues decline even if our revenues do. In such event,more than expenses, we may be forced to borrow to cover our costs, we may incur losses or we may not have cash available to service our debt obligations and to pay dividends and distributions to security holders.
Competition for acquisitions may reduce the number of acquisition opportunities available to us and increase the costs of those acquisitions.
We may acquire properties when we are presented with attractive opportunities. We may face competition for acquisition opportunities from other investors, particularly those investors who are willing to incur more leverage, and this competition may adversely affect us by subjecting us to the following risks:
•an inability to acquire a desired property because of competition from other well-capitalized real estate investors, including publicly traded and privately held REITs, private real estate funds, domestic and foreign financial institutions, life insurance companies, sovereign wealth funds, pension trusts, partnerships and individual investors; and
•an increase in the purchase price for such acquisition property.
If we are unable to successfully acquire additional properties, our ability to grow our business could be adversely affected. In addition, increases in the cost of acquisition opportunities could adversely affect our results of operations.
We face risks associated with property acquisitions.
Our business strategy relies upon the acquisition of interests in properties, individual properties and portfolios of properties, including large portfolios that could significantly increase our size and alter our capital structure. Our acquisition activities may not be successful if we are unable to meet required closing conditions or unable to finance acquisitions and developments of properties on favorable terms or at all. Additionally, we have less visibility into the future performance of acquired properties than properties that we have owned for a period of time, and therefore, recently acquired properties may not be as profitable as our existing portfolio.
Further, we may acquire properties subject to both known and unknown liabilities and without any recourse, or with only limited recourse to the seller. As a result, if a liability were asserted against us arising from our ownership of those properties, we might have to pay substantial sums to settle it, which could adversely affect our cash flow. Unknown liabilities with respect to properties acquired might include:
•claims by tenants, vendors or other persons arising from dealing with the former owners of the properties;
•liabilities incurred in the ordinary course of business;
•claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties; and
•liabilities for clean-up of undisclosed environmental contamination.
Limitations on our ability to sell or reduce the indebtedness on specific properties could adversely affect the value of our common stock.
In connection with past and future acquisitions of interests in properties, we have or may agree to restrictions on our ability to sell or refinance the acquired properties for certain periods. These limitations could result in us holding properties which we would otherwise sell, or prevent us from paying down or refinancing existing indebtedness, any of which may have adverse consequences on our business and result in a material adverse effect on our financial condition and results of operations.

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Potential losses may not be covered by insurance.
We maintain “all-risk” property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism, excluding nuclear, biological, chemical, and radiological terrorism ("NBCR")), within threetwo property insurance programs and liability insurance. Separate property and liability coverage may be purchased on a stand-alone basis for certain assets, such as the development projects. Additionally, one of One Vanderbilt. Additionally, our captive insurance company,companies, Belmont Insurance Company, or Belmont, provides coverage for NBCR terrorist acts above a specified trigger, although iftrigger. Belmont's retention is reinsured by our other captive insurance company, Ticonderoga Insurance Company ("Ticonderoga"). If Belmont isor Ticonderoga are required to pay a claim under our insurance policies, we would ultimately record the loss to the extent of Belmont's required payment. However, therepayments. There is no assurance that in the future we will be able to procure coverage at a reasonable cost. Further, if we experience losses that are uninsured or that exceed policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. Additionally, our debt instruments contain customary covenants requiring us to maintain insurance and we could default under our debt our instruments if the cost and/or availability of certain types of insurance make it impractical or impossible to comply with such covenants relating to insurance. Belmont providesand Ticonderoga provide coverage solely on properties owned, in whole or in part, by the Company or its affiliates.
Furthermore, with respect to certain of our properties, including certain properties held by joint ventures or subject to triple net leases, insurance coverage is obtained by a third-party and we do not control the coverage. While we may have agreements with such third parties to maintain adequate coverage and we monitor these policies, such coverage ultimately may not be maintained or adequately cover our risk of loss.
The occurrence of a terrorist attack may adversely affect the value of our properties and our ability to generate cash flow.
Our operations are primarily concentrated in the New York metropolitan area. In the aftermath of a terrorist attack or other acts of terrorism or war, tenants in the New York metropolitan area may choose to relocate their business to less populated, lower-profile areas of the United States that those tenants believe are not as likely to be targets of future terrorist activity. In addition, economic activity could decline as a result of terrorist attacks or other acts of terrorism or war, or the perceived threat of such acts. Each of these impacts could in turn trigger a decrease in the demand for space in the New York metropolitan area, which could increase vacancies in our properties and force us to lease our properties on less favorable terms. While under the Terrorism Risk Insurance Program Reauthorization Act of 2015,2019, insurers must make terrorism insurance available under their property and casualty insurance policies, this legislation does not regulate the pricing of such insurance. The absence of affordable terrorism insurance coverage may adversely affect the general real estate lending market, lending volume and the market's overall liquidity and, in the event of an uninsured loss, we could lose all or a portion of our assets. Furthermore, we may also experience increased costs in relation to security equipment and personnel. As a result, the value of our properties and our results of operations could materially decline.
We face possible risks associated with the natural disasters and the physical effects of climate change.
We are subject to risks associated with natural disasters and the physical effects of climate change, which can include storms, hurricanes and flooding, any of which could have a material adverse effect on our properties, operations and business. To the extent climate change causes changes in weather patterns, our markets could experience increases in storm intensity and rising sea-levels. Over time, these conditions could result in declining demand for office space in our buildings or theour inability of us to operate the buildings at all. Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy at our properties and requiring us to expend funds as we seek to repair and protect our properties against such risks. There can be no assurance thatAny of these direct or indirect effects of climate change will notmay have a material adverse effect on our properties, operations or business.
We depend on dividends and distributions from our direct and indirect subsidiaries.
Substantially all of our assets are held through subsidiaries of our Operating Partnership. Our Operating Partnership’s cash flow is dependent on cash distributionsmay incur significant costs to it by its subsidiaries,comply with climate change initiatives, and in turn, substantially allparticular those implemented in New York City.
Numerous states and municipalities have adopted laws and policies on climate change and emission reduction targets. In particular, through the Climate Leadership and Community Protection Act signed into law in 2019, New York State mandated the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040. New York City enacted Local Law 97 (LL97) in 2019 under the Climate Mobilization Act, setting carbon caps for large buildings starting in 2024 as part of a broader commitment to reducing greenhouse gas emissions by 40% by 2030, and by 80% by 2050. As our cash flowportfolio is dependent on cash distributionsprincipally located in Manhattan, our business is subject to transition risks related to these climate change policies. If we are unable to meet the required emissions reductions, we may be subject to material fines that will continue to be assessed each year we fail to comply. Additionally, even if we can achieve compliance under LL97 in a given year, it is not a certainty that we will remain in compliance in subsequent years. And, costs of compliance or penalties may be significant.
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We face potential conflicts of interest.
There are potential conflicts of interest between us and Stephen L. Green.
There is a potential conflict of interest relating to the disposition of certain property contributed to us by Stephen L. Green and affiliated entities in our Operating Partnership. The creditors of eachinitial public offering. Mr. Green serves as a member and as the chairman emeritus of our directBoard of Directors. If we sell a property in a transaction in which a taxable gain is recognized, for tax purposes the built-in gain would be allocated solely to him and indirect subsidiaries are entitlednot to paymentus. As a result, Mr. Green has a conflict of that subsidiary’s obligations to them, when due and payable, before distributions may be made by that subsidiary to its equity holders.
Therefore,interest if the sale of a property he contributed is in our Operating Partnership’s ability to make distributions to holders of its partnership units depends on its subsidiaries’ ability first to satisfy their obligations to their creditors and then to make distributions to our Operating Partnership. Likewise, our ability to pay dividends to holders of common stock and preferred stock depends on our Operating Partnership’s ability first to satisfy its obligations to its creditors and make distributions payable to holders of preferred units and then to make distributions to us.
Furthermore, the holders of preferred partnership units of our Operating Partnership are entitled to receive preferred distributions before payment of distributions to holders of common units of our Operating Partnership, including us. Thus, our ability to pay cash dividends to our shareholders and satisfy our debt obligations depends on our Operating Partnership’s ability

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first to satisfy its obligations to its creditors and make distributions to holders of its preferred partnership units and then to holders of its common units, including us.best interest but not his.
In addition, our participationMr. Green's tax basis includes his share of debt, including mortgage indebtedness, owed by the Operating Partnership. If the Operating Partnership were to retire such debt, then he would experience a decrease in anyhis share of liabilities, which, for tax purposes, would be treated as a distribution of cash to him. To the assetsextent the deemed distribution of anycash exceeded his tax basis, he would recognize gain. As a result, Mr. Green has a conflict of interest if the refinancing of indebtedness is in our direct or indirect subsidiaries upon any liquidation, reorganization or insolvency is only after the claims of the creditors, including trade creditors and preferred security holders, are satisfied.best interest but not his.
RISKS RELATED TO OUR LIQUIDITY AND CAPITAL RESOURCES
Debt financing, financial covenants, degree of leverage, and increases in interest rates could adversely affect our economic performance.
Scheduled debt payments could adversely affect our results of operations.
Cash flow could be insufficient to pay dividends and meet the payments of principal and interest required under our current mortgages, our 20172021 credit facility, 2022 term loan, our senior unsecured notes, our debentures and indebtedness outstanding at our joint venture properties. The total principal amount of our outstanding consolidated indebtedness was $5.9$5.6 billion as of December 31, 2017,2022, consisting of $1.5$1.7 billion in unsecured bank term loans, (or "Term Loan A" and "Term Loan B"), $1.4$0.1 billion under our senior unsecured notes, $0.1 billion of junior subordinated deferrable interest debentures, $2.9$3.2 billion of non-recourse mortgages and loans payable on certain of our properties and debt and preferred equity investments, $40.0$450.0 million drawn under our revolving credit facility, and $11.8$2.0 million of outstanding letters of credit. In addition, we could increase the amount of our outstanding consolidated indebtedness in the future, in part by borrowing under the revolving credit facility portion of our 20172021 credit facility. As of December 31, 2017,2022, the total principal amount of non-recourse indebtedness outstanding at the joint venture properties was $9.5$12.5 billion, of which our proportionate share was $4.2$6.2 billion. As of December 31, 2017,2022, we had no recourse indebtedness outstanding at our unconsolidated joint venture properties.
If we are unable to make payments under our 20172021 credit facility and 2022 term loan, all amounts due and owing at such time shall accrue interest at a per annum rate equal to 2% higher than the rate at which each draw was made.applicable immediately prior to the default. If we are unable to make payments under our senior unsecured notes, the principal and unpaid interest will become immediately payable. If a property is mortgaged to secure payment of indebtedness and we are unable to meet mortgage payments, the mortgagee could foreclose on the property, resulting in loss of income and asset value. Foreclosure on mortgaged properties or an inability to make payments under our 20172021 credit facility, 2022 term loan or our senior unsecured notes could trigger defaults under the terms of our other financings, making such financings at risk of being declared immediately payable, and would have a negative impact on our financial condition and results of operations.
We may not be able to refinance existing indebtedness, which may require substantial principal payments at maturity. $164.8$260.1 million of consolidated mortgage debt and $187.7 million$1.1 billion of unconsolidated joint venture debt is scheduled to mature in 20182023 after giving effect to our as-of-right extension options and repayments and refinancing of consolidated and joint venture debt between December 31, 20172022 and February 22, 201815, 2023 as discussed in the "Financial Statements and Supplementary Data" section. At the present time, we intend to repay, refinance, or exercise extension options on the debt associated with our properties on or prior to their respective maturity dates. At the time of refinancing, prevailing interest rates or other factors, such as the possible reluctance of lenders to make commercial real estate loans, may result in higher interest rates. Increased interest expense on the extended or refinanced debt would adversely affect cash flow and our ability to service debt obligations and pay dividends and distributions to security holders. If any principal payments due at maturity cannot be repaid, refinanced or extended, our cash flow will not be sufficient to repay maturing or accelerated debt.
Financial covenants could adversely affect our ability to conduct our business.
The mortgages and mezzanine loans on our properties generally contain customary negative covenants that limit our ability to further mortgage the properties, to enter into material leases without lender consent or materially modify existing leases, among other things. In addition, our 20172021 credit facility, 2022 term loan and senior unsecured notes contain restrictions and requirements on our method of operations. Our 20172021 credit facility and our unsecured notes also require us to maintain designated ratios, including but not limited to, total debt-to-assets, debt service coverage and unencumbered assets-to-unsecured debt. These restrictions could adversely affect operations (including reducing our flexibility and our ability to incur additional debt), our ability to pay debt obligations and our ability to pay dividends and distributions to security holders.
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Rising interest rates could adversely affect our cash flow.
Advances under our 20172021 credit facility, 2022 term loan and certain property-level mortgage debt bear interest at a variable rate. OurAfter giving effect to derivatives, our consolidated variable rate borrowings totaled $1.6$0.5 billion atas of December 31, 2017.2022. In addition, we could increase the amount of our outstanding variable rate debt in the future, in part by borrowing additional amounts under our 20172021 credit facility. Borrowings under our revolving credit facility and three term loans bore interest at the 30-day LIBOR,adjusted term SOFR plus spreads of 100 basis points, 11010 basis points, and 165the applicable spreads of 105 basis points, 120 basis points, 125 basis points, and 140 basis points, respectively, atas of December 31, 2017.2022. As of December 31, 2017,2022, borrowings under our term loans and junior subordinated deferrable interest debentures totaled $1.5$1.7 billion and $100.0 million, respectively. We may incur indebtedness in the future that also bears interest at a variable rate or may be required to refinance our debt at higher rates. AtIf we were to incur variable rate indebtedness in the future, we may seek to enter into derivative instruments to mitigate the effect of such variable rate debt. However, such derivative instruments may not be available on favorable terms or at all. As of December 31, 2017,2022, a hypothetical 100 basis point increase in interest rates across each of our variable interest rate instruments, including our variable rate debt and preferred equity investments which mitigate our exposure to interest rate changes, would increase our net

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annual interest costs by $2.7$3.5 million and would increase our share of joint venture annual interest costs by $17.2$6.5 million. Our joint ventures may also incur variable rate debt and face similar risks. Accordingly, increases in interest rates could adversely affect our results of operations and financial conditions and our ability to continue to pay dividends and distributions to security holders.
The planned phasing out of LIBOR may affect our financial results.
In March 2021, ICE Benchmark Administration, the administrator of LIBOR, with the support of the Federal Reserve Board and the FCA, announced plans to extend the publication of certain USD LIBOR settings until June 30, 2023 after which LIBOR reference rates will cease to be provided. It is not possible to predict the effect of these changes or the establishment of alternative reference rates.
The Alternative Reference Rate Committee ("ARRC"), a committee convened by the Federal Reserve that includes major market participants, and on which the SEC staff and other regulators participate, has proposed an alternative rate, the Secured Overnight Financing Rate (“SOFR”), to replace U.S. Dollar LIBOR. Any changes announced by the FCA, ARRC, other regulators or any other successor governance or oversight body, or future changes adopted by such body, in the method pursuant to which U.S. Dollar LIBOR, SOFR, or any other alternative rates are determined may result in a sudden or prolonged increase or decrease in the reported LIBOR rates. If that were to occur, the levels of interest payments we incur and interest payments we receive may change. It is also uncertain whether SOFR or any other alternative rate will gain market acceptance and may result in, among other things, volatility or illiquidity in markets for instruments that currently rely on LIBOR. In addition, although certain of our LIBOR based obligations and investments provide for alternative methods of calculating the interest rate if LIBOR is not reported, uncertainty as to the extent and manner of future changes may result in interest rates and/or payments that are higher than, lower than or that do not otherwise correlate over time with the interest rates and/or payments that would have been made on our obligations if LIBOR rate was available in its current form. We may also need to renegotiate our LIBOR based obligations, which we may not be successful in doing on a timely basis or on terms acceptable to us.
Borrowings under our existing term loan and revolving credit facilities bear interest at a rate based on the term SOFR, which is a relatively new reference rate. The publication of SOFR began in April 2019, and, therefore, it has a very limited history. The future performance of SOFR cannot be predicted based on the limited historical performance. Since the initial publication of SOFR, changes in SOFR have, on occasion, been more volatile than changes in other benchmark or market rates, such as US dollar LIBOR. As a result, the amount of interest we may pay on our credit facilities is difficult to predict.
Failure to hedge effectively against interest rate changes may adversely affect results of operations.
The interest rate hedge instruments we use to manage some of our exposure to interest rate volatility involve risk and counterparties may fail to honor their obligationsperform under these arrangements. In addition, these arrangements may not be effective in reducing our exposure to interest rate changes and whenchanges. When existing interest rate hedges terminate, we may incur increased costs in putting in place further interest rate hedges. Failure to hedge effectively against interest rate changes may adversely affect our results of operations.
Increases in our level of indebtednessleverage could adversely affect our stock price.
Our organizational documents do not contain any limitation on the amount of indebtedness we may incur. As of December 31, 2017, assuming the conversion of all outstanding units of the Operating Partnership into shares of our common stock, our combined debt-to-market capitalization ratio, including our share of joint venture debt, was 49.4%. Our market capitalization is variable and does not necessarily reflect the fair market value of our assets at all times. We also consider many factors other than market capitalization inwhen making decisions regarding the incurrence of indebtedness, such as the purchase price of properties to be acquired with debt financing, the estimated market value of our properties upon refinancing and the ability of particular properties and our business as a whole to generate cash flow to cover expected debt service. Any changes that increase our debt-to-market capitalization percentageleverage could be viewed negatively by investors. Asinvestors and could have a result,material effect on our stockfinancial condition, results of operations, cash flows, the trading price could decrease.of our securities and our ability to pay dividends and distributions to security holders.
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A downgrade in our credit ratings could materially adversely affect our business and financial condition.
Our credit rating and the credit ratings assigned to our debt securities and our preferred stock could change based upon, among other things, our results of operations and financial condition. These ratings are subject to ongoing evaluation by credit rating agencies, and any rating could be changed or withdrawn by a rating agency in the future if, in its judgment, circumstances warrant such action. Moreover, these credit ratings are not recommendations to buy, sell or hold our common stock or any other securities. If any of the credit rating agencies that have rated our securities downgrades or lowers its credit rating, or if any credit rating agency indicates that it has placed any such rating on a “watch list” for a possible downgrading or lowering, or otherwise indicates that its outlook for that rating is negative, such action could have a material adverse effect on our costs and availability of funding, which could in turn have a material adverse effect on our financial condition, results of operations, cash flows, the trading price of our securities and our ability to satisfy our debt service obligations and to pay dividends and distributions to security holders.
Debt and preferred equity investments could cause us to incur expenses, which could adversely affect our results of operations.
We held first mortgages, mezzanine loans, junior participations and preferred equity interests with an aggregate net book value of $2.3 billion at$623.3 million as of December 31, 2017.2022. Some of these instruments may behave some recourse to their sponsors, while others are limited to the collateral securing the loan. In the event of a default under these obligations, we may have to take possession of the collateral securing these interests. Borrowers may contest enforcement of foreclosure or other remedies, seek bankruptcy protection against such enforcement and/or bring claims for lender liability in response to actions to enforce their obligations to us. Declines in the value of the property may prevent us from realizing an amount equal to our investment upon foreclosure or realization even if we make substantial improvements or repairs to the underlying real estate in order to maximize such property's investment potential. In addition, we may invest in mortgage-backed securities and other marketable securities.
Our debt and preferred equity investments are carried at the net amounts expected to be collected. We maintain and regularly evaluate the need for reserves to protect against potential future credit losses. Our reserves reflect management's judgment of the probability and severity of losses and the value of the underlying collateral. We cannot be certain that our judgment will prove to be correct and that our reserves will be adequate over time to protect against future credit losses because of unanticipated adverse changes in the economy or events adversely affecting specific properties, assets, tenants, borrowers, industries in which our tenants and borrowers operate or markets in which our tenants and borrowers or their properties are located. As of December 31, 2017, we had no recorded reserves for possible credit losses. IfThe ultimate resolutions may differ from our reserves for credit losses prove inadequate,expectation, and we could suffer losses which would have a material adverse effect on our financial performance, the market pricestrading price of our securities and our ability to pay dividends and distributions to security holders.
Joint investments could be adversely affected by our lack of sole decision-making authority and reliance upon a co-venturer's financial condition.
We co-invest with third parties through partnerships, joint ventures, co-tenancies or other structures, and by acquiring non-controlling interests in, or sharing responsibility for managing the affairs of, a property, partnership, joint venture, co-tenancy or other entity. Therefore, we may not be in a position to exercise sole decision-making authority regarding such property, partnership, joint venture or other entity. Investments in partnerships, joint ventures, or other entities may involve risks not present were a third

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party not involved, including the possibility that our partners, co-tenants or co-venturers might become bankruptfile for bankruptcy protection or otherwise fail to fund their share of required capital contributions. Additionally, our partners or co-venturers might at any time have economic or other business interests or goals which are competitive or inconsistent with our business interests or goals. These investments may also have the potential risk of impasses on decisions such as a sale, because neither we, nor the partner, co-tenant or co-venturer would have full control over the partnership or joint venture. In addition, we may in specific circumstances be liable for the actions of our third-party partners, co-tenants or co-venturers. As of December 31, 2017,2022, we had an aggregate cost basis in these joint ventures totaling $2.4$3.2 billion.
Certain of our joint venture agreements contain terms in favor of our partners that could have an adverse effect on the value of our investments in the joint ventures.
Each of our joint venture agreements has been individually negotiated with our partner in the joint venture and, in some cases, we have agreed to terms that are more favorable to our partner in the joint venture than to us. For example, our partner may be entitled to a specified portion of the profits of the joint venture before we are entitled to any portion of such profits. We may also enter into similar arrangements in the future. These rights may permit our partner in a particular joint venture to obtain a greater benefit from the value or profits
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Table of the joint venture than us, which could have an adverse effect on the value of our investment in the joint venture and on our financial condition and results of operations.Contents
We may incur costs to comply with governmental laws and regulations.
We are subjectdependent on external sources of capital.
We need a substantial amount of capital to various federal, stateoperate and local environmentalgrow our business. This need is exacerbated by the distribution requirements imposed on us for SL Green to qualify as a REIT. We therefore rely on third-party sources of capital, which may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of things, including the market's perception of our growth potential and health and safety laws that can impose liability onour current and former property ownerspotential future earnings. In addition, we may raise money in the public equity and debt markets and our ability to do so will depend upon the general conditions prevailing in these markets. At any time, conditions may exist which effectively prevent us, or operators for the clean-up of certain hazardous substances released on a property or of contamination at any facility (e.g., a landfill) to which we have sent hazardous substances for treatment or disposal, without regard to fault or whether the release or disposal wasREITs in compliance with law. Being held responsible for such a clean-up couldgeneral, from accessing these markets. Moreover, additional equity offerings may result in significant costsubstantial dilution of our stockholders' interests, and additional debt financing may substantially increase our leverage.
RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE
We depend on dividends and distributions from our direct and indirect subsidiaries.
Substantially all of our assets are held through subsidiaries of our Operating Partnership. We are, therefore, dependent on the results of operations of our subsidiaries and their ability to provide us with cash, whether in the form of dividends paid through our Operating Partnership, loans or otherwise, to meet our obligations and to pay any dividends to our equity holders. Any distributions to us and have a material adverse effect on our financial condition and results of operations.
Our propertiesfrom those subsidiaries may be subject to risks relatingcontractual and other restrictions, including such subsidiaries' obligations to current or future laws, including laws benefiting disabled persons, such as the Americans with Disabilities Act, or ADA,their creditors, and state or local zoning, construction or other regulations. Compliance with such laws may require significant property modifications in the future, which could be costlysubject to other business and non-compliance could result in fines being levied against us in the future. Such costs could have an adverse impact onoperational considerations. Additionally, our cash flows andOperating Partnership's ability to pay dividendsdistribute to stockholders.us any cash that it receives from our subsidiaries will also depend on its ability to first satisfy its obligations to its creditors and make distributions payable to holders of its outstanding preferred units and any additional preferred units it may issue from time to time.
In addition, our participation in any distribution of the assets of any of our direct or indirect subsidiaries upon any liquidation, reorganization or insolvency is only after the claims of the creditors, including trade creditors and preferred security holders, are satisfied.
Our charter documents, debt instruments and applicable law may hinder any attempt to acquire us, which could discourage takeover attempts and prevent our stockholders from receiving a premium over the market price of our stock.
Provisions of our charter and bylaws could inhibit changes in control.
A change of control of our company could benefit stockholders by providing them with a premium over the then-prevailing market price of our stock. However, provisions contained in our charter and bylaws may delay or prevent a change in control of our company. These provisions, discussed more fully below, are:
staggered board of directors;•Ownership limitations;
ownership limitations; and
the board of directors' ability to issue additional common stock and preferred stock without stockholder approval.
Our board of directors is currently staggered into three separate classes.
Our board of directors is currently divided into three classes, with directors in each such class serving staggered three year terms. The terms of the class I, class II and class III directors expire in 2018, 2019 and 2020, respectively. Our staggered board•Maryland takeover statutes that may deterprevent a change in control because of the increased time period necessary for a third-party to acquire control of our company; and
•Contractual provisions that limit the board.
However, atassumption of certain of our 2017 Annual Meeting of Stockholders, held on June 1, 2017, our stockholders voted to declassify the board of directors. Beginning with the 2018 Annual Meeting of Stockholders, our board of directors will be elected for terms ending at the next annual meeting of stockholders following their election (rather than the third annual meeting following their election) and until their successors are duly elected and qualify. By the 2020 Annual Meeting of Stockholders, our board of directors will be fully declassified.debt.
We have a stock ownership limit.
To remain qualified as a REIT for federal income tax purposes, not more than 50% in value of our outstanding capital stock may be owned by five or fewer individuals at any time during the last half of any taxable year. For this purpose, stock may be "owned" directly, as well as indirectly under certain constructive ownership rules, including, for example, rules that attribute stock held by one shareholder to another shareholder. In part to avoid violating this rule regarding stock ownership limitations and maintain our REIT qualification, our charter prohibits direct or indirect ownership by any single stockholder of more than 9.0% in value or number of shares of our common stock. Limitations on the ownership of preferred stock may also be imposed by us.

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Our board of directors has the discretion to raise or waive this limitation on ownership for any stockholder if deemed to be in our best interest. Our board of directors has granted such waivers from time to time. To obtain a waiver, a stockholder must present the board and our tax counsel with evidence that ownership in excess of this limit will not affect our present or future REIT status.
Absent any exemption or waiver, stock acquired or held in excess of the limit on ownership will be transferred to a trust for the exclusive benefit of a designated charitable beneficiary, and the stockholder's rights to distributions and to vote would terminate. The stockholder would be entitled to receive, from the proceeds of any subsequent sale of the shares transferred to the charitable trust, the lesser of: the price paid for the stock or, if the owner did not pay for the stock, the market price of the stock on the date of the event causing the stock to be transferred to the charitable trust; and the amount realized from the sale.
This limitation on ownership of stock could delay or prevent a change in control of our company.
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Maryland takeover statutes may prevent a change of control of our company, which could depress our stock price.
Under the Maryland General Corporation Law, or the MGCL, "business combinations" between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, stockshare exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:
•any person who beneficially owns 10% or more of the voting power of the corporation's outstanding voting stock; or
•an affiliate or associate of the corporation who, at any time within the two-yeartwo year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation.
A person is not an interested stockholder under the statute if the board of directors approves in advance the transaction by which he otherwise would have become an interested stockholder.
After the five-yearfive year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:
•80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation, voting together as a single group; and
•two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.
The business combination statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer, including potential acquisitions that might involve a premium price for our common stock or otherwise be in the best interest of our stockholders.
In addition, Maryland lawthe MGCL provides that holders of "control shares" of a Maryland corporation acquired in a "control share acquisition" will not have voting rights with respect to the control shares except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter, excluding shares of stock owned by the acquiror, by officers of the corporation or by directors who are employees of the corporation, under the Maryland Control Share Acquisition Act.corporation. "Control shares" means voting shares of stock that, if aggregated with all other shares of stock owned by the acquiror or in respect of which the acquiror is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting power: (i) one-tenth or more but less than one-third; (ii) one-third or more but less than a majority; or (iii) a majority or more of all voting power. A "control share acquisition" means the acquisition of ownership of, or the power to direct the exercise of voting power with respect to, issued and outstanding control shares, subject to certain exceptions.
We have opted out of thesethe "business combinations" and "control shares" provisions of the MGCL with respect to business combinations and control share acquisitions, by resolution of our board of directors and a provision in our bylaws, respectively. However, in the future, our board of directors may reverse its decision by resolution and elect to opt in to the MGCL's business combination provisions, or amend our bylaws and elect to opt in to the MGCL's control share provisions.
Additionally, other provisions of the MGCL permitspermit our board of directors, without stockholder approval and regardless of what is provided in our charter or bylaws, to implement certain other takeover defenses, some of which have not been implemented bythrough provisions in our boardcharter or bylaws unrelated to the provisions of directors.the MGCL. Such takeover defenses, ifto the extent implemented now or in the future, may have the effect of inhibiting a third party from making us an acquisition proposal or of delaying, deferring or preventing a change in our control under circumstances that otherwise could provide our stockholders with an opportunity to realize a premium over the then-current market price.

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Contractual provisions that limit the assumption of certain of our debt may prevent a change in control.
Certain of our consolidated debt is not assumable and may be subject to significant prepayment penalties. These limitations could deter a change in control of our company.
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SL Green's failure to qualify as a REIT would be costly and would have a significant effect on the value of our securities.
We believe we have operated in a manner for SL Green to qualify as a REIT for federal income tax purposes and intend to continue to so operate. Many of the REIT compliance requirements, however, are highly technical and complex. The determination that SL Green is a REIT requires an analysis of factual matters and circumstances. These matters, some of which are not totally within our control, can affect SL Green's qualification as a REIT. For example, to qualify as a REIT, at least 95% of our gross income must come from designated sources that are listed in the applicable tax laws. We are also required to distribute to stockholders at least 90% of our REIT taxable income excluding capital gains. The fact that we hold our assets through the Operating Partnership and its subsidiaries further complicates the application of the REIT requirements. Even a technical or inadvertent mistake could jeopardize our REIT status. Furthermore, Congress and the Internal Revenue Service, or the IRS, might make changes to the tax laws and regulations that make it more difficult, or impossible, for us to remain qualified as a REIT.
If SL Green fails to qualify as a REIT, the funds available for distribution to our stockholders would be substantially reduced as we would not be allowed a deduction for dividends paid to our stockholders in computing our taxable income and would be subject to federal income tax at regular corporate rates and possibly increased state and local taxes.
Also, unless the IRS grants us relief under specific statutory provisions, SL Green would remain disqualified as a REIT for four years following the year in which SL Green first failed to qualify. If SL Green failed to qualify as a REIT, SL Green would have to pay significant income taxes and would therefore have less money available for investments, to service debt obligations or to pay dividends and distributions to security holders. This would have a significant adverse effect on the value of our securities. In addition, the REIT tax laws would no longer obligate us to make any distributions to stockholders. As a result of all these factors, if SL Green fails to qualify as a REIT, this could impair our ability to expand our business and raise capital.
We may in the future pay taxable dividends on our common stock in common stock and cash.
In order to qualify as a REIT, we are required to annually distribute to our stockholders at least 90% of our REIT taxable income, excluding net capital gains. In order to avoid taxation of our income, we are required to annually distribute to our stockholders all of our taxable income, including net capital gains. In order to satisfy these requirements, we have, and in the future may make distributions that are payable partly in cash and partly in shares of our common stock. If we pay such a dividend, taxable stockholders would be required to include the entire amount of the dividend, including the portion paid with shares of common stock, as income to the extent of our current and accumulated earnings and profits, and may be required to pay income taxes with respect to such dividends in excess of the cash dividends received.
RISKS RELATED TO LEGAL AND REGULATORY MATTERS
We may incur costs to comply with governmental laws and regulations.
We are subject to various federal, state and local environmental and health and safety laws that can impose liability on current and former property owners or operators for the clean-up of certain hazardous substances released on a property or of contamination at any facility (e.g., a landfill) to which we have sent hazardous substances for treatment or disposal, without regard to fault or whether the release or disposal was in compliance with law. Being held responsible for such a clean-up could result in significant cost to us and have a material adverse effect on our financial condition and results of operations.
Our properties may be subject to risks relating to current or future laws, including laws benefiting disabled persons, such as the Americans with Disabilities Act, or ADA, and state or local zoning, construction or other regulations. Compliance with such laws may require significant property modifications in the future, which could be costly. Non-compliance could result in fines being levied against us in the future.
Compliance with changing or new regulations applicable to corporate governance and public disclosure may result in additional expenses, or affect our operations.
Changing or new laws, regulations and standards relating to corporate governance and public disclosure, including SEC regulations and NYSE rules, can create uncertainty for public companies. These changed or new laws, regulations and standards are subject to varying interpretations in many cases due to their lack of specificity. As a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies, which could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We are committed to maintaining high standards of corporate governance and public disclosure. If our efforts to comply with new or changed laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, our reputation may be harmed.
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Our efforts to comply with evolving laws, regulations and standards have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities. In particular, our continued efforts to comply with Section 404 of the Sarbanes-Oxley Act of 2002 and the related regulations regarding our required assessment of our internal controls over financial reporting and our external auditors' audit of that assessment have required the commitment of significant financial and managerial resources. We expect these efforts to require the continued commitment of significant resources. Further, our directors, chief executive officer and chief financial officer could face an increased risk of personal liability in connection with the performance of their duties. As a result, we may have difficulty attracting and retaining qualified directors and executive officers, which could harm our business.
Our property taxes could increase due to reassessment or property tax rate changes.
We are required to pay real property taxes or payments in lieu of taxes in respect of our properties and such taxes may increase as our properties are reassessed by taxing authorities or as property tax rates change. An increase in the assessed value of our properties or our property tax rates could adversely impact our financial condition, results of operations and our ability to satisfy our debt service obligations and to pay dividends and distributions to our security holders.
GENERAL RISK FACTORS
The trading price of our common stock has been and may continue to be subject to wide fluctuations.
Between January 1, 2022 and December 31, 2022, the closing sale price of our common stock on the New York Stock Exchange, or the NYSE, ranged from $32.94 to $83.95 per share. Our stock price may fluctuate in response to a number of events and factors, such as those described elsewhere in this "Risk Factors" section. Equity issuances or buybacks by us or the perception that such issuances or buybacks may occur may also affect the market price of our common stock.
Future issuances of common stock, preferred stock and convertible debt could dilute existing stockholders' interests.
Our charter authorizes its boardour Board of directorsDirectors to issue additional shares of common stock, preferred stock and convertible equity or debt without stockholder approval and without the requirement to offer rights of pre-emption to existing stockholders. Any such issuance could dilute our existing stockholders' interests. Also, any future series of preferred stock may have voting provisions that could delay or prevent a change of control of our company.
Changes in market conditions could adversely affect the market price of our common stock.
As with other publicly traded equity securities, the value of our common stock depends on various market conditions, which may change from time to time. In addition to the current economic environment and future volatility in the securities and credit markets, the following market conditions may affect the value of our common stock:
•the general reputation of REITs and the attractiveness of our equity securities in comparison to other equity securities, including securities issued by other real estate-based companies;
•our financial performance; and
•general stock and bond market conditions.
The market value of our common stock is based on a number of factors including, but not limited to, the market's perception of the current and future value of our assets, our growth potential and our current and potential future earnings and cash dividends. Consequently, our common stock may trade at prices that are higher or lower than our net asset value per share of common stock.
The trading price of our common stock has been and may continue to be subject to wide fluctuations.
Between January 1, 2017 and December 31, 2017, the closing sale price of our common stock on the New York Stock Exchange, or the NYSE, ranged from $94.15 to $113.75 per share. On February 22, 2018, the closing sale price of our common stock on the NYSE was $95.91. Our stock price may fluctuate in response to a number of events and factors, such as those described elsewhere in this "Risk Factors" section. Additionally, the amount of our leverage may hinder the demand for our common stock, which could have a material adverse effect on the market price of our common stock. Equity issuances or buybacks by us or the perception that such issuances or buybacks may occur may also affect the market price of our common stock.
We may in the future pay taxable dividends on our common stock in common stock and cash.
In order to qualify as a REIT, we are required to annually distribute to our stockholders at least 90% of our REIT taxable income, excluding net capital gain. In order to avoid taxation of our income, we are required to annually distribute to our stockholders all of our taxable income, including net capital gain. In order to satisfy these requirements, we may make distributions that are payable partly in cash and partly in shares of our common stock. If we pay such a dividend, taxable stockholders would be required to include the entire amount of the dividend, including the portion paid with shares of common stock, as income to the extent of

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our current and accumulated earnings and profits, and may be required to pay income taxes with respect to such dividends in excess of the cash dividends received.
We are dependent on external sources of capital.
We need a substantial amount of capital to operate and grow our business. This need is exacerbated by the distribution requirements imposed on us for SL Green to qualify as a REIT. We therefore rely on third-party sources of capital, which may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of things, including the market's perception of our growth potential and our current and potential future earnings. In addition, we anticipate raising money in the public equity and debt markets with some regularity and our ability to do so will depend upon the general conditions prevailing in these markets. At any time, conditions may exist which effectively prevent us, or REITs in general, from accessing these markets. Moreover, additional equity offerings may result in substantial dilution of our stockholders' interests, and additional debt financing may substantially increase our leverage.
Our property taxes could increase due to reassessment or property tax rate changes.
We are required to pay real property taxes in respect of our properties and such taxes may increase as our properties are reassessed by taxing authorities or as property tax rates change. An increase in the assessed value of our properties or our property tax rates could adversely impact our financial condition, results of operations and our ability to satisfy our debt service obligations and to pay dividends and distributions to our security holders.
We face potential conflicts of interest.
There are potential conflicts of interest between us and Stephen L. Green.
There is a potential conflict of interest relating to the disposition of certain property contributed to us by Stephen L. Green, and affiliated entities in our initial public offering. Mr. Green serves as the chairman of our board of directors and is an executive officer. If we sell a property in a transaction in which a taxable gain is recognized, for tax purposes the built-in gain would be allocated solely to him and not to us. As a result, Mr. Green has a conflict of interest if the sale of a property he contributed is in our best interest but not his.
In addition, Mr. Green's tax basis includes his share of debt, including mortgage indebtedness, owed by the Operating Partnership. If the Operating Partnership were to retire such debt, then he would experience a decrease in his share of liabilities, which, for tax purposes, would be treated as a distribution of cash to him. To the extent the deemed distribution of cash exceeded his tax basis, he would recognize gain. As a result, Mr. Green has a conflict of interest if the refinancing of indebtedness is in our best interest but not his.
Members of management may have a conflict of interest over whether to enforce terms of agreements with entities which Mr. Green, directly or indirectly, has an affiliation.
Alliance Building Services, or Alliance, and its affiliates are partially owned by Gary Green, a son of Stephen L. Green, the chairman of our board of directors, and provide services to certain properties owned by us. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide cleaning, extermination, security, messenger, and restoration services, respectively. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.
Our company and our tenants accounted for 24.72% of Alliance's 2017 estimated total revenue, based on information provided to us by Alliance. While we believe that the contracts pursuant to which these services are provided were the result of arm's length negotiations, there can be no assurance that the terms of such agreements, or dealings between the parties during the performance of such agreements, will be as favorable to us as those which could be obtained from unaffiliated third parties providing comparable services under similar circumstances.
SL Green's failure to qualify as a REIT would be costly and would have a significant effect on the value of our securities.
We believe we have operated in a manner for SL Green to qualify as a REIT for federal income tax purposes and intend to continue to so operate. Many of the REIT compliance requirements, however, are highly technical and complex. The determination that SL Green is a REIT requires an analysis of factual matters and circumstances. These matters, some of which are not totally within our control, can affect SL Green's qualification as a REIT. For example, to qualify as a REIT, at least 95% of our gross income must come from designated sources that are listed in the REIT tax laws. We are also required to distribute to stockholders at least 90% of our REIT taxable income excluding capital gains. The fact that we hold our assets through the Operating Partnership and its subsidiaries further complicates the application of the REIT requirements. Even a technical or inadvertent mistake could

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jeopardize our REIT status. Furthermore, Congress and the Internal Revenue Service, or the IRS, might make changes to the tax laws and regulations that make it more difficult, or impossible, for us to remain qualified as a REIT.
If SL Green fails to qualify as a REIT, the funds available for distribution to our stockholders would be substantially reduced as we would not be allowed a deduction for dividends paid to our stockholders in computing our taxable income and would be subject to federal income tax at regular corporate rates and we could be subject to the federal alternative minimum tax and possibly increased state and local taxes.
Also, unless the IRS grants us relief under specific statutory provisions, SL Green would remain disqualified as a REIT for four years following the year in which SL Green first failed to qualify. If SL Green failed to qualify as a REIT, SL Green would have to pay significant income taxes and would therefore have less money available for investments, to service debt obligations or to pay dividends and distributions to security holders. This would have a significant adverse effect on the value of our securities. In addition, the REIT tax laws would no longer obligate us to make any distributions to stockholders. As a result of all these factors, if SL Green fails to qualify as a REIT, this could impair our ability to expand our business and raise capital
Changes to U.S. federal income tax laws could materially and adversely affect us and our stockholders.
The recently enacted Tax CutsU.S. federal income tax laws and Jobs Act (the ‘‘Tax Act’’) makes substantial changes to the Code. Among those changes are a significant permanent reduction in the generally applicable corporate tax rate, changes in the taxation of individuals and other non-corporate taxpayers that generally but not universally reduce their taxes on a temporary basis subject to ‘‘sunset’’ provisions, the elimination or modification of various currently allowed deductions (including substantial limitations on the deductibility of interest and, in the case of individuals, the deduction for personal state and local taxes), and preferential rates of taxation on most ordinary REIT dividends and certain business income derived by non-corporate taxpayers in comparison to other ordinary income recognized by such taxpayers. The Tax Act also imposes certain additional limitations on the deduction of net operating losses, which may in the future cause us to be required to make distributions that will be taxable to our stockholders to the extent of our current or accumulated earnings and profits in order to comply with the annual REIT distribution requirements. The effect of these, and the many other, changes made in the Tax Act is highly uncertain, both in terms of their direct effect on the taxation of an investment in our common stock and their indirect effect on the value of our assets or market conditions generally. Furthermore, many of the provisions of the Tax Act will require guidance through the issuance of Treasury regulations in order to assess their effect. There may be a substantial delay before such regulations are promulgated, increasing the uncertainty as to the ultimate effect of the statutory amendments on us. It is also likely that there will be technical corrections legislation proposed with respect to the Act this year, the effect of which cannot be predicted and may be adverse to us or our stockholders.
Additionally, the rules dealing with U.S. federal income taxation are continually under review by Congress, the IRS, and the U.S. Department of the Treasury. Any such changes could have an adverse effect on an investment in our shares or on the market value or the resale potential of our assets.
Loss of our key personnel could harm our operations and our stock price.
We are dependent on the efforts of Marc Holliday, our chairman and chief executive officer, and Andrew W. Mathias, our president. These officers have employment agreements which expire in January 20192025 and December 2018,2023, respectively. A loss of the services of either of these individuals could adversely affect our operations and could be negatively perceived by the market resulting in a decrease in our stock price.
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Table of Contents

Our business and operations would suffer in the event of system failures or cyber security attacks.
Despite system redundancy, the implementation of security measures and the existence of a disaster recovery plan for our internal information technology systems, our systems are vulnerable to a number of risks including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cyber attacks and intrusions, such as computer viruses, malware, attachments to e-mails, intrusion and unauthorized access, including from persons inside our organization or from persons outside our organization with access to our systems. The risk of a security breach or disruption, particularly through cyber attacks and intrusions, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and instructions from around the world have increased. Our systems are critical to the operation of our business and any system failure, accident or security breach that causes interruptions in our operations could result in a material disruption to our business. We may also incur additional costs to remedy damages caused by such disruptions. Although we make efforts to maintain the security and integrity of our systems and have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. Any compromise of our security could also result in a violation of applicable privacy and other laws, significant legal and financial exposure, damage to our reputation, loss or misuse of the information (which may be confidential, proprietary and/or commercially sensitive in nature) and a loss of confidence in our security measures, which could harm our business.

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Table of Contents


Forward-looking statements may prove inaccurate.
See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations—Forward-looking Information," for additional disclosure regarding forward-looking statements.
ITEM 1B.    UNRESOLVED STAFF COMMENTS
As of December 31, 2017,2022, we did not have any unresolved comments with the staff of the SEC.

24
23
Table of Contents



ITEM 2.    PROPERTIES
Our Portfolio
General
As of December 31, 2017,2022, we owned or held interests in 2313 consolidated commercial office buildings encompassing approximately 14.310.0 million rentable square feet and nine12 unconsolidated commercial office buildings encompassing approximately 10.414.0 million rentable square feet located primarily in midtown Manhattan. Many of these buildings include some amount of retail space on the lower floors, as well as basement/storage space. As of December 31, 2017,2022, our portfolio also included ownership interests in 20one consolidated property, encompassing seven commercial office buildings encompassingtotaling approximately 3.00.9 million rentable square feet, and two unconsolidated commercial office buildings encompassing approximately 640,000 rentable square feet located outside of Manhattan. Wein Stamford Connecticut, which we refer to these buildings as our Suburban properties.property. Some of these buildings also include a small amount of retail space on the lower floors, as well as basement/storage space.
As of December 31, 2017,2022, we also owned investmentsor held interests in 1411 prime retail properties encompassing approximately 702,5530.3 million square feet, thirteen8 buildings in some stagediffering stages of development or redevelopment encompassing approximately 930,4994.4 million square feet, 15and 1 residential buildingsbuilding encompassing 3,554209 units (approximately 3,128,9610.1 million square feet) and two land interests under building improvements that are leased to a third party, encompassing approximately 176,530 square feet.. In addition, we manage one office building owned by a third partyparties encompassing approximately 336,0000.3 million square feet and held debt and preferred equity investments with a book value of $2.3 billion including $0.2 billion$623.3 million, excluding $8.5 million of investments recorded in balance sheet line items other than the Debt and Preferred Equity Investmentspreferred equity investments line item.
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Table of Contents

The following tables set forth certain information with respect to each of the Manhattan and Suburban office, prime retail, residential, development and redevelopment properties and land interest in the portfolio as of December 31, 2017:2022 (dollars in thousands):
Manhattan PropertiesYear Built/
Renovated		City/ TownApproximate
Rentable
Square
Feet		Percent
Occupied (1)		Annualized
Cash
Rent
(2)		Percent
of Portfolio
Annualized
Cash
Rent (3)		Number
of
Tenants		Annualized
Cash
Rent per
Leased
Square
Foot (4)
CONSOLIDATED OFFICE PROPERTIES
"Same Store"
100 Church Street1959/2010Downtown1,047,500 90.3%$45,818 3.6%18$45.38 
110 Greene Street1908/1920Soho223,600 86.116,452 1.35390.60 
125 Park Avenue1923/2006Grand Central604,245 95.745,962 3.62574.43 
304 Park Avenue South1930Midtown South215,000 100.018,231 1.4784.20 
420 Lexington Ave (Graybar)1927/1999Grand Central North1,188,000 85.080,559 6.316964.67 
461 Fifth Avenue1988Midtown200,000 77.114,311 1.11389.09 
485 Lexington Avenue1956/2006Grand Central North921,000 76.647,744 3.72768.20 
555 West 57th Street1971Midtown West941,000 96.853,847 4.2952.41 
711 Third Avenue (5)
1955Grand Central North524,000 94.735,735 2.82264.88 
810 Seventh Avenue1970Times Square692,000 86.542,664 3.34274.16 
1185 Avenue of the Americas1969Rockefeller Center1,062,000 69.365,087 5.11284.36 
1350 Avenue of the Americas1966Rockefeller Center562,000 88.140,301 3.24482.07 
Subtotal / Weighted Average8,180,345 86.0%$506,711 39.6%441
"Non Same Store"
245 Park Avenue1966Park Avenue1,782,793 83.9%$127,442 10.0%17$91.18 
Subtotal / Weighted Average1,782,793 83.9%$127,442 10.0%17
Total / Weighted Average Manhattan Consolidated Office Properties9,963,138 85.7%$634,153 49.6%458$70.89 
UNCONSOLIDATED OFFICE PROPERTIES
"Same Store"
2 Herald Square—51.00%1909Herald Square369,000 84.6%$30,952 1.2%5$97.28 
10 East 53rd Street—55.00%1972/2014Plaza District354,300 96.031,717 1.43986.24 
11 Madison Avenue—60.00%1929Park Avenue South2,314,000 96.4166,939 7.8975.84 
100 Park Avenue—50.00%1950/1980Grand Central South834,000 84.260,820 2.43681.88 
280 Park Avenue—50.00%1961Park Avenue1,219,158 95.9130,909 5.138106.88 
800 Third Avenue—60.50%1972/2006Grand Central North526,000 84.235,896 1.73776.03 
919 Third Avenue—51.00%1970Grand Central North1,454,000 99.9114,175 4.6873.13 
1515 Broadway—56.90%1972Times Square1,750,000 99.7131,316 5.8773.68 
Worldwide Plaza—25.00%1989/2013Westside2,048,725 91.7143,914 2.82182.42 
Subtotal / Weighted Average10,869,183 94.5%$846,638 32.8%200
"Non Same Store"
One Vanderbilt Avenue—71.01%2020Grand Central1,657,198 96.8%$254,573 14.1%38$161.83 
220 East 42nd Street—51.00%1929Grand Central1,135,000 92.6%70,233 2.83663.71 
450 Park Avenue—25.10%1972Park Avenue337,000 79.833,545 0.722133.18 
Subtotal / Weighted Average3,129,198 93.4%$358,351 17.6%96
Total / Weighted Average Unconsolidated Office Properties13,998,381 94.3%$1,204,989 50.4%296$90.30 
Manhattan Office Grand Total / Weighted Average23,961,519 90.7%$1,839,142 100.0%754
Manhattan Office Grand Total—SLG share of Annualized Rent$1,278,993 100.0%
Manhattan Office Same Store Occupancy %—Combined19,049,528 90.9%
26
Manhattan Properties 
Year Built/
Renovated
 SubMarket 
Approximate
Rentable
Square
Feet
 Percent
of Portfolio
Rentable
Square
Feet		 
Percent
Occupied (1)
 
Annualized
Cash
Rent
(2)
 
Percent
of Portfolio
Annualized
Cash
Rent (3)
 
Number
of
Tenants
 
Annualized
Cash
Rent per
Leased
Square
Foot (4)
CONSOLIDATED OFFICE PROPERTIES              
"Same Store"                  
100 Church Street 1959/2010 Downtown 1,047,500
 3.7% 99.6% $43,580,454
 3.3% 18 $39.78
110 East 42nd Street 1921 Grand Central 215,400
 0.8 74.0 9,076,176
 0.7 22 56.92
125 Park Avenue 1923/2006 Grand Central 604,245
 2.1 99.6 41,455,375
 3.1 26 65.22
220 East 42nd Street 1929 Grand Central 1,135,000
 4.0 60.7 39,689,240
 3.0 31 55.74
304 Park Avenue South 1930 Midtown South 215,000
 0.8 100.0 15,793,271
 1.2 12 74.29
420 Lexington Ave (Graybar) 1927/1999 Grand Central North 1,188,000
 4.2 95.3 79,973,361
 6.0 203 57.83
461 Fifth Avenue (5)
 1988 Midtown 200,000
 0.7 96.6 18,244,987
 1.4 9 90.91
485 Lexington Avenue 1956/2006 Grand Central North 921,000
 3.2 68.2 46,056,664
 3.4 26 72.16
555 West 57th Street 1971 Midtown West 941,000
 3.3 99.9 41,998,657
 3.1 9 41.10
609 Fifth Avenue 1925/1990 Rockefeller Center 160,000
 0.6 67.8 15,124,408
 1.1 11 136.80
625 Madison Avenue 1956/2002 Plaza District 563,000
 2.0 98.8 61,526,979
 4.6 25 106.60
635 Sixth Avenue 1902 Midtown South 104,000
 0.4 100.0 9,342,629
 0.7 2 99.08
641 Sixth Avenue 1902 Midtown South 163,000
 0.6 100.0 14,268,905
 1.1 6 84.13
711 Third Avenue—50.00%(6)
 1955 Grand Central North 524,000
 1.8 86.2 30,998,203
 2.3 18 60.68
750 Third Avenue 1958/2006 Grand Central North 780,000
 2.7 98.8 48,691,192
 3.6 29 60.25
810 Seventh Avenue 1970 Times Square 692,000
 2.4 97.9 48,572,282
 3.6 50 67.09
919 Third Avenue—51.00% 1970 Grand Central North 1,454,000
 5.1 100.0 98,500,512
 3.8 9 65.79
1185 Avenue of the Americas 1969 Rockefeller Center 1,062,000
 3.7 98.1 94,475,380
 7.1 15 88.34
1350 Avenue of the Americas 1966 Rockefeller Center 562,000
 2.0 90.0 41,108,087
 3.1 34 77.39
1 Madison Avenue 1960/2002 Park Avenue South 1,176,900
 4.1 100.0 74,847,881
 5.6 2 63.23
Added to Same Store in 2017              

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Table of Contents



Suburban PropertiesYear Built/
Renovated		City/ TownApproximate
Rentable
Square
Feet		Percent
Occupied (1)		Annualized
Cash
Rent
(2)		Percent
of Portfolio
Annualized
Cash
Rent (3)		Number
of
Tenants		Annualized
Cash
Rent per
Leased
Square
Foot (4)
CONSOLIDATED OFFICE PROPERTIES
"Same Store" Connecticut
Landmark Square1973-1984Stamford862,800 79.3%$19,560 100.0%107$34.44 
Connecticut Subtotal/Weighted Average862,800 79.3%$19,560 100.0%107
Total / Weighted Average Consolidated Office Properties862,800 79.3%$19,560 100.0%107
Suburban Grand Total / Weighted Average862,800 79.3%$19,560 107
Suburban Office Grand Total—SLG share of Annualized Rent$19,560 100.0%
Suburban Office Same Store Occupancy %—Combined862,800 79.3%

Year Built/
Renovated		City/ TownApproximate
Rentable
Square
Feet		Percent
Occupied (1)		Annualized
Cash
Rent
(2)		Percent of Portfolio
Annualized
Cash
Rent (3)		Number
of
Tenants		Annualized
Cash
Rent per
Leased
Square
Foot (4)
PRIME RETAIL
"Same Store" Prime Retail
11 West 34th Street—30.00%1920/2010Herald Square/Penn Station17,150 100.0%$3,362 2.1%1$301.56 
21 East 66th Street—32.28%1921Plaza District13,069 100.02,149 1.41353.81 
115 Spring Street— 51.00%1900Soho5,218 100.03,887 4.11744.84 
121 Greene Street—50.00%1887Soho7,131 100.01,430 1.52200.53 
650 Fifth Avenue— 50.00%1977-1978Plaza District69,214 100.038,256 39.21552.72 
717 Fifth Avenue—10.92%1958/2000Midtown/Plaza District119,550 90.450,649 11.35451.21 
719 Seventh Avenue—75.00%1927Times Square10,040 —— ——— 
1552-1560 Broadway—50.00%1926/2014Times Square57,718 88.329,885 30.63662.44 
Added to Same Store in 2022
85 Fifth Avenue—36.30%1901/1979Midtown South12,946 100.02,100 1.61160.40 
Subtotal/Weighted Average312,036 90.9%$131,718 91.8%15
"Non Same Store" Prime Retail
690 Madison Avenue—100.00%1879/1996/2009Plaza District7,848 100.0%$4,000 8.2%1$509.68 
Subtotal/Weighted Average7,848 100.0%$4,000 8.2%1
Total / Weighted Average Prime Retail Properties319,884 91.2%$135,718 100.0%16
DEVELOPMENT/REDEVELOPMENT
5 Times Square2002Times Square1,127,931 22.5%$24,824 15.3%2$96.87 
19 East 65th Street1928-1940Plaza District14,639 5.532 0.1140.22 
185 Broadway2021Lower Manhattan50,206 25.93,220 6.33263.19 
625 Madison Avenue1956/2002Plaza District563,000 18.113,180 25.717129.52 
750 Third Avenue1958/2006Grand Central North780,000 24.013,251 25.82262.42 
885 Third Avenue1986/2006Midtown / Plaza District218,796 76.513,752 26.81382.67 
15 Beekman—20.00% (6)
N/ALower Manhattan221,884 N/AN/AN/AN/A— 
One Madison Avenue—25.50% (7)
N/AMidtown South1,396,426 N/AN/AN/AN/A— 
760 Madison1996/2012Plaza District58,574 N/AN/AN/AN/A— 
Total / Weighted Average Development/Redevelopment Properties4,431,456 26.3%$68,259 100.0%58
27
Manhattan Properties 
Year Built/
Renovated
 SubMarket 
Approximate
Rentable
Square
Feet
 Percent
of Portfolio
Rentable
Square
Feet		 
Percent
Occupied (1)
 
Annualized
Cash
Rent
(2)
 
Percent
of Portfolio
Annualized
Cash
Rent (3)
 
Number
of
Tenants
 
Annualized
Cash
Rent per
Leased
Square
Foot (4)
30 East 40th Street—60.00% 1927 Grand Central South 69,446
 0.2% 91.4% 4,632,444
 0.2% 54 71.21
110 Greene Street—90.00% 1908/1920 Soho 223,600
 0.8 76.5 11,606,808
 0.8 58 79.79
600 Lexington Avenue 1983/2009 Grand Central North 303,515
 1.1 90.7 21,196,477
 1.6 31 77.79
Subtotal / Weighted Average 14,304,606
 50.3% 91.7% $910,760,372
 64.3% 700  
Total / Weighted Average Manhattan Consolidated Office Properties 14,304,606
 50.3% 91.7% $910,760,372
 64.3% 700  
UNCONSOLIDATED OFFICE PROPERTIES              
"Same Store"                  
3 Columbus Circle—48.90% 1927/2010 Columbus Circle 530,981
 1.9% 91.1% $45,971,004
 1.7% 32 $95.79
100 Park Avenue—50.00% 1950/1980 Grand Central South 834,000
 2.9 93.4 64,675,661
 2.4 38 76.81
521 Fifth Avenue—50.50% 1929/2000 Grand Central 460,000
 1.6 90.2 29,572,060
 1.1 43 66.80
800 Third Avenue—60.50% 1972/2006 Grand Central North 526,000
 1.8 95.0 35,470,586
 1.6 42 66.09
1745 Broadway—56.88% 2003 Midtown 674,000
 2.4 100.0 45,633,156
 1.9 1 70.79
Added to Same Store in 2017              
280 Park Avenue—50.00% 1961 Park Avenue 1,219,158
 4.3 93.0 119,310,708
 4.5 38 99.95
Subtotal / Weighted Average 4,244,139
 14.9% 93.9% $340,633,175
 13.2% 194  
"Non Same Store"              
11 Madison Avenue—60.00% 1929 Park Avenue South 2,314,000
 8.1% 100.0% $158,248,890
 7.1% 9 $69.38
1515 Broadway—69.87% 1972 Times Square 1,750,000
 6.1 98.4 133,683,884
 7.0 13 72.87
World Wide Plaza—24.35% 1989/2013 Westside 2,048,725
 7.2 98.5 131,945,964
 2.4 28 65.45
Subtotal / Weighted Average 6,112,725
 21.4% 99.0% $423,878,738
 16.5% 50  
Total / Weighted Average Unconsolidated Office Properties 10,356,864
 36.3% 96.9% $764,511,913
 29.7% 244  
Manhattan Office Grand Total / Weighted Average 24,661,470
 86.6% 93.9% $1,675,272,285
 94.0% 944  
Manhattan Office Grand Total—SLG share of Annualized Rent       $1,256,961,098
 94.0%    
Manhattan Office Same Store Occupancy %—Combined 18,548,745
 75.2% 92.2%        

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Table of Contents



City/ TownUseable Sq. FeetTotal Units
Percent
Occupied (1)
Annualized Cash
Rent (2)
Average
Monthly Rent
Per Unit
RESIDENTIAL     
"Non Same Store" Residential
7 Dey StreetLower Manhattan140,382 209 89.5 %$11,019 $4,910 
Subtotal/Weighted Average140,382 209 89.5 %$11,019 $4,910 
Total / Weighted Average Residential Properties140,382 209 89.5 %$11,019 $4,910 
(1)Excludes leases signed but not yet commenced as of December 31, 2022.
Suburban Properties 
Year Built/
Renovated
 SubMarket 
Approximate
Rentable
Square
Feet
 Percent
of Portfolio
Rentable
Square
Feet		 
Percent
Occupied (1)
 
Annualized
Cash
Rent
(2)
 
Percent
of Portfolio
Annualized
Cash
Rent (3)
 
Number
of
Tenants
 
Annualized
Cash
Rent per
Leased
Square
Foot (4)
CONSOLIDATED OFFICE PROPERTIES              
"Same Store" Westchester, NY              
1100 King Street 1983-1986 Rye Brook, Westchester 540,000
 1.9% 70.9% $9,746,073
 0.7% 35 $26.48
115-117 Stevens Avenue 1984 Valhalla, Westchester 178,000
 0.6 67.3% 2,285,316
 0.2 12 23.16
100 Summit Lake Drive 1988 Valhalla, Westchester 250,000
 0.9 92.2% 5,872,032
 0.4 13 25.91
200 Summit Lake Drive 1990 Valhalla, Westchester 245,000
 0.9 87.5% 5,508,464
 0.4 8 26.53
500 Summit Lake Drive 1986 Valhalla, Westchester 228,000
 0.8 100.0% 6,032,268
 0.5 8 28.21
360 Hamilton Avenue 2000 White Plains, Westchester 384,000
 1.3 99.3% 14,989,967
 1.1 22 39.40
Westchester, NY Subtotal/Weighted Average 1,825,000
 6.4% 85.3% $44,434,120
 3.3% 98  
"Same Store" Connecticut              
Landmark Square 1973-1984 Stamford, Connecticut 862,800
 3.0% 90.5% $23,284,467
 1.8% 125 $35.22
1055 Washington Boulevard 1987 Stamford, Connecticut 182,000
 0.6 80.9 5,526,636
 0.4 21 36.36
1010 Washington Boulevard 1988 Stamford, Connecticut 143,400
 0.5 94.6 4,613,187
 0.3 27 32.77
Connecticut Subtotal/Weighted Average 1,188,200
 4.1% 89.5% $33,424,290
 2.5% 173  
Total / Weighted Average Consolidated Office Properties 3,013,200
 10.5% 87.0% $77,858,410
 5.8% 271  
UNCONSOLIDATED OFFICE PROPERTIES              
"Non Same Store"                  
Jericho Plaza—11.67% 1980 Jericho, New York 640,000
 2.2% 70.3% $15,894,888
 0.1% 32 $36.33
Total / Weighted Average Unconsolidated Office Properties 640,000
 2.2% 70.3% $15,894,888
 0.1% 32  
Suburban Grand Total / Weighted Average 3,653,200
 12.7% 84.0% $93,753,298
   303  
Suburban Office Grand Total—SLG share of Annualized Rent       $79,713,343
 5.9%    
Suburban Office Same Store Occupancy %—Combined 3,013,200
 82.5% 87.0%        
Portfolio Office Grand Total 28,314,670
 100.0%   $1,769,025,583
   1,220  
Portfolio Office Grand Total—SLG Share of Annualized Rent       $1,336,674,441
 100.0%    
                   
(2)Annualized Cash Rent represents the monthly contractual rent under existing leases as of December 31, 2022 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date.

(3)Includes our share of unconsolidated joint venture annualized cash rent.

(4)Annualized Cash Rent Per Leased Square Foot represents Annualized Cash Rent, as described in footnote (1) above, presented on a per leased square foot basis.

(5)The Company owns 100% of the leasehold interest and 50% of the fee interest.

(6)The 0.2 million square foot development, which includes academic space and dormitory space and is 100% pre-leased to Pace University, has a total budget of $219.5 million. Delivery of the academic space was delivered in the fourth quarter of 2022 and delivery of the dormitory space is expected in the third quarter of 2023. As of December 31, 2022, $68.3 million of the budget remains to be spent, comprised of $30.0 million of partners' equity and $38.3 million of financing available under the project's construction facility.













26
Table(7)The 1.4 million square foot redevelopment, which is anticipated to be completed in the fourth quarter of Contents


  
Year Built/
Renovated
 SubMarket 
Approximate
Rentable
Square
Feet
 Percent
of Portfolio
Rentable
Square
Feet		 
Percent
Occupied (1)
 
Annualized
Cash
Rent
(2)
 Percent of Portfolio
Annualized
Cash
Rent (3)		 Number
of
Tenants		 
Annualized
Cash
Rent per
Leased
Square
Foot (4)
PRIME RETAIL                  
"Same Store" Prime Retail                
11 West 34th Street—30.00% 1920/2010 Herald Square/Penn Station 17,150
 2.4% 100.0% $2,837,719
 1.2% 1 $254.50
21 East 66th Street—32.28% 1921 Plaza District 13,069
 1.9 100.0 3,844,536
 1.7 1 294.17
121 Greene Street—50.00% 1887 Soho 7,131
 1.0 100.0 1,523,544
 1.0 2 213.65
315 West 33rd Street—The Olivia 2000 Penn Station 270,132
 38.5 100.0 17,179,582
 23.6 10 62.42
717 Fifth Avenue—10.92% 1958/2000 Midtown/Plaza District 119,550
 17.0 100.0 45,574,074
 6.9 6 368.47
724 Fifth Avenue—50.00% 1921 Plaza District 65,010
 9.3 84.7 24,353,331
 16.8 8 421.96
752 Madison Avenue 1996/2012 Plaza District 21,124
 3.0 100.0 14,135,652
 19.4 1 669.17
762 Madison Avenue—90.00% 1910 Plaza District 6,109
 0.9 100.0 1,874,162
 2.3 5 278.52
Williamsburg Terrace 2010 Brooklyn, New York 52,000
 7.4 100.0 1,796,348
 2.5 3 34.52
Added to Same Store in 2017            
131-137 Spring Street—20.00% 1915 SoHo 68,342
 9.7 89.6 12,612,958
 3.5 8 203.60
Subtotal/Weighted Average 639,617
 91.1% 97.3% $125,731,906
 78.9% 45  
"Non Same Store" Prime Retail                
115 Spring Street 1900 SoHo 5,218
 0.7% 100.0% $2,903,400
 4.0% 1 $556.42
1552-1560 Broadway—50.00% 1926/2014 Times Square 57,718
 8.2 67.5 24,810,708
 17.1 2 636.71
Subtotal/Weighted Average 62,936
 8.9% 70.2% $27,714,108
 21.1% 3  
Total / Weighted Average Prime Retail Properties 702,553
 100.0% 94.9% $153,446,014
 100.0% 48  
DEVELOPMENT/REDEVELOPMENT              
One Vanderbilt(7)
 N/A Grand Central —
 —% —% $—
 —% — $—
10 East 53rd Street— 55.00% 1972/2014 Plaza District 354,300
 38.0 77.6 26,292,903
 38.5 34 89.76
19-21 East 65th Street 1928-1940 Plaza District 23,610
 3.0 17.0 230,954
 0.6 8 32.40
5-7 Dey Street, 183 & 187 Broadway 1921 Lower Manhattan 82,700
 9.0 — —
 — — —
562 Fifth Avenue 1920 Plaza District 42,635
 5.0 100.0 2,100,000
 5.6 1 49.26
650 Fifth Avenue— 50.00% 1977-1978 Plaza District 69,214
 7.0 100.0 33,190,000
 44.2 1 479.53
719 Seventh Avenue—75.00% 1927 Times Square 10,040
 1.0 — —
 — — —
175-225 Third Avenue—95.00% 1972/1998 Brooklyn, New York —
 — — —
 — — —
55 West 46th Street—25.00% 2009 Midtown 347,000
 37.0 58.2 16,359,724
 10.9 7 93.57
1640 Flatbush Avenue 1966 Brooklyn, New York 1,000
 — 100.0 85,152
 0.2 1 85.15
Total / Weighted Average Development/Redevelopment Properties 930,499
 100.0% 63.8% $78,258,733
 100.0% 52  
               
  Year Built/
Renovated		 SubMarket Approximate
Rentable
Square
Feet		 Percent
of Portfolio
Rentable
Square
Feet		 Percent
Occupied (1)		 Annualized
Cash
Rent
(2)		 Percent of Portfolio
Annualized
Cash
Rent (3)		 Number
of
Tenants		 Annualized
Cash
Rent per
Leased
Square
Foot (4)
LAND              
635 Madison Avenue   Plaza District 176,530
 100% 100.0% $3,677,574
 100%    
Total / Weighted Average Land 176,530
 100% 86.8% $3,677,574
 100%    

27
Table2023, has a total budget of Contents$2.3 billion. As of December 31, 2022, $1.4 billion of the budget remains to be spent, comprised of $0.6 billion of partners' equity and $0.8 billion of financing available under the project's construction facility.


    Useable Sq. Feet Total Units 
Percent
Occupied (1)
 
Annualized Cash
Rent (2)
 
Average
Monthly Rent
Per Unit
RESIDENTIAL          
"Same Store" Residential            
315 West 33rd Street Penn Station 222,855
 333
 85.9% $14,242,394
 $4,164
400 East 57th Street—41.00% Upper East Side 290,482
 259
 92.3
 11,670,572
 3,527
400 East 58th Street—90.00% Upper East Side 140,000
 126
 96.8
 5,624,243
 3,488
1080 Amsterdam - 92.50% Upper West Side 82,250
 97
 99.0
 4,863,358
 3,987
Added to Same Store        
Stonehenge Portfolio   1,439,016
 1,536
 94.1% $72,473,697
 $3,596
Subtotal/Weighted Average 2,174,603
 2,351
 93.1% $108,874,264
 $3,674
"Non Same Store" Residential            
Upper East Side Residential—95.10% Upper East Side 27,000
 28
 42.9% $641,425
 $1,167
605 West 42nd Street—20.00% Midtown West 927,358
 1,175
 77.6
 50,627,885
 4,070
Subtotal/Weighted Average   954,358
 1,203
 76.8% $51,269,310
 $4,033
Total / Weighted Average Residential Properties 3,128,961
 3,554
 87.6% $160,143,574
 $3,780
(1)Excludes leases signed but not yet commenced as of December 31, 2017.
(2)Annualized Cash Rent represents the monthly contractual rent under existing leases as of December 31, 2017 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2017 for the 12 months ending December 31, 2018 will reduce cash rent by $13.9 million for our consolidated properties and $22.9 million for our unconsolidated properties.
(3)Includes our share of unconsolidated joint venture annualized cash rent.
(4)Annualized Cash Rent Per Leased Square Foot represents Annualized Cash Rent, as described in footnote (1) above, presented on a per leased square foot basis.
(5)The Company has an option to acquire the fee interest for a fixed price on a specific date.
(6)The Company owns 50% of the fee interest.
(7)The 1,730,989 gross square foot project, which is anticipated to be completed by the third quarter of 2020, has a total development budget, including land mark-up, of $3.17 billion excluding fees paid to the Company and up to $50.0 million in discretionary owner contingencies. As of December 31, 2017, $1.97 billion of the budget remains to be spent, comprised of $827.8 million of partners’ equity, and $1.14 billion of financing available under the project’s construction facility.
Historical Occupancy
Historically, we have consistently achieved consistentlymaterially higher occupancy rates in our Manhattan portfolio as compared to the overall midtown markets,Manhattan market, as shown over the last five years in the following table:

Occupancy Rate of
Manhattan Operating
Portfolio(1)		Occupancy Rate of
Class A
Office Properties
in the Midtown Manhattan
Markets(2)(3)		Occupancy Rate of
Class B
Office Properties
in the Midtown Manhattan
Markets(2)(3)
December 31, 202290.7 %78.4 %76.6 %
December 31, 202192.1 %80.6 %77.1 %
December 31, 202092.4 %85.0 %81.1 %
December 31, 201994.5 %88.8 %87.4 %
December 31, 201894.5 %91.1 %89.4 %
 
Leased
Occupancy Rate of
Manhattan Operating
Portfolio(1)
 
Occupancy Rate of
Class A
Office Properties
in the Midtown
Markets(2)(3)
 
Occupancy Rate of
Class B
Office Properties
in the Midtown
Markets(2)(3)
December 31, 201793.9% 90.5% 90.3%
December 31, 201694.9% 90.0% 92.2%
December 31, 201594.2% 90.9% 91.3%
December 31, 201495.3% 89.4% 91.6%
December 31, 201394.3% 88.3% 89.1%
(1)Includes our consolidated and unconsolidated Manhattan office properties.
(1)Includes leases signed but not yet commenced as of the relevant date in our wholly-owned and joint venture properties.
(2)Includes vacant space available for direct lease and sublease. Source: Cushman & Wakefield.
(3)
(2)Includes vacant space available for direct lease and sublease. Source: Cushman & Wakefield.
(3)The term "Class B" is generally used in the Manhattan office market to describe office properties that are more than 25 years old but that are in good physical condition, enjoy widespread acceptance by high-quality tenants and are situated in desirable locations in Manhattan. Class B office properties can be distinguished from Class A properties in that Class A properties are generally newer properties with higher finishes and frequently obtain the highest rental rates within their markets.

28
Table of Contents


Historically we have achieved consistently higher occupancy rates in our Westchester County and Connecticut portfolios in comparison to the overall Westchester County and Stamford, Connecticut, CBD markets, as shown over the last five years in the following table:Manhattan office market to describe office properties that are more than 25 years old but that are in good physical condition, enjoy widespread acceptance by high-quality tenants and are situated in desirable locations in Manhattan. Class B office properties can be distinguished from Class A properties in that Class A properties are generally newer properties with higher finishes and frequently obtain the highest rental rates within their markets.
  
Leased
Occupancy Rate of
Westchester
Operating Portfolio(1)
 
Occupancy Rate of
Class A
Office Properties
in the Westchester
Market(2)
 
Percent of
Connecticut
Portfolio
Leased(1)
 
Occupancy Rate of
Class A
Office Properties
in the Stamford CBD
Market(2)
December 31, 2017 85.3% 77.5% 89.5% 73.4%
December 31, 2016 81.9% 75.1% 87.5% 73.7%
December 31, 2015 77.5% 76.0% 84.1% 79.9%
December 31, 2014 78.8% 76.6% 83.6% 75.7%
December 31, 2013 78.1% 79.4% 80.5% 74.7%
(1)Includes leases signed but not yet commenced as of the relevant date in our wholly-owned and joint venture properties.
(2)Includes vacant space available for direct lease and sublease. Source: Cushman & Wakefield.
Lease Expirations
Leases in our Manhattan portfolio, as at many other Manhattan office properties, typically have an initial term of seven to fifteen years, compared to typical lease terms of five to ten years in other large U.S. office markets. For the five years ending December 31, 2022,2027, the average annual lease expirations at our Manhattan consolidated and unconsolidated operating properties is expected to be approximately 1.40.8 million square feet and approximately 0.30.6 million square feet, respectively, representing an average annual expiration rate of approximately 10.0%8.3% and approximately 3.1%4.6%, respectively, per year (assuming no tenants exercise renewal or cancellation options and there are no tenant bankruptcies or other tenant defaults).
The following tables set forth a schedule of the annual lease expirations at our Manhattan consolidated and unconsolidated operating properties, respectively, with respect to leases in place as of December 31, 20172022 for each of the next ten years and thereafter (assuming that no tenants exercise renewal or cancellation options and that there are no tenant bankruptcies or other tenant defaults):
28
Manhattan Consolidated
Operating Properties
Year of Lease Expiration
 
Number
of
Expiring
Leases(1)
 
Square
Footage
of
Expiring
Leases
 
Percentage
of
Total
Leased
Square
Feet
 
Annualized
Cash Rent
of
Expiring
Leases(2)
 
Percentage
of
Annualized
Cash Rent
of
Expiring
Leases
 
Annualized
Cash Rent
Per
Leased
Square
Foot of
Expiring
Leases(3)
2018(4)
 81
 541,157
 3.9% $46,020,213
 5.1% $85.04
2019 82
 1,044,922
 7.6
 76,410,441
 8.4
 73.13
2020 98
 2,328,968
 17.0
 154,071,400
 17.0
 66.15
2021 98
 1,786,589
 13.0
 116,415,234
 12.8
 65.16
2022 100
 1,143,613
 8.3
 76,759,862
 8.5
 67.12
2023 48
 832,935
 6.1
 49,899,730
 5.5
 59.91
2024 31
 278,486
 2.0
 19,641,171
 2.2
 70.53
2025 32
 550,101
 4.0
 54,587,969
 6.0
 99.23
2026 29
 799,693
 5.8
 51,742,849
 5.7
 64.70
2027 & thereafter 112
 4,430,805
 32.3
 260,536,204
 28.8
 58.80
Total/weighted average 711
 13,737,269
 100.0% $906,085,073
 100.0% $65.96
(1)Tenants may have multiple leases.
(2)Annualized Cash Rent of Expiring Leases represents the monthly contractual rent under existing leases as of December 31, 2017 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2017 for the 12 months ending December 31, 2018 will reduce cash rent by $10.6 million for the properties.
(3)Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per leased square foot basis.
(4)Includes approximately 10,006 square feet and annualized cash rent of $0.5 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2017.

29
Table of Contents



Manhattan Consolidated
Operating Properties
Year of Lease Expiration
Number
of
Expiring
Leases (1)
Square
Footage
of
Expiring
Leases		Percentage
of
Total
Leased
Square
Feet
Annualized
Cash Rent
of
Expiring
Leases (2)
Percentage
of
Annualized
Cash Rent
of
Expiring
Leases
Annualized
Cash Rent
Per
Leased
Square
Foot of
Expiring
Leases (3)
2023(4)
85 987,366 11.0 %$64,762,008 10.2 %$65.59 
202457 449,778 5.0 26,549,129 4.2 59.03 
202562 497,644 5.6 43,715,047 6.9 87.84 
202648 1,068,123 11.9 87,743,733 13.8 82.15 
202756 718,866 8.0 57,264,515 9.0 79.66 
202833 661,497 7.4 48,905,505 7.7 73.93 
202921 400,505 4.5 27,172,272 4.3 67.85 
203021 801,723 9.0 54,260,411 8.6 67.68 
203116 474,630 5.3 34,630,194 5.5 72.96 
2032 & thereafter62 2,885,420 32.3 189,149,932 29.8 65.55 
Total/weighted average461 8,945,552 100.0 %$634,152,746 100.0 %$70.89 
(1)Tenants may have multiple leases.
Manhattan Unconsolidated
Operating Properties
Year of Lease Expiration
 
Number
of
Expiring
Leases(1)
 
Square
Footage
of
Expiring
Leases
 
Percentage
of
Total
Leased
Square
Feet
 
Annualized
Cash Rent
of
Expiring
Leases(2)
 
Percentage
of
Annualized
Cash Rent
of
Expiring
Leases
 
Annualized
Cash Rent
Per
Leased
Square
Foot of
Expiring
Leases(3)
2018(4)
 26
 179,321
 1.7% $18,386,941
 2.4% $102.54
2019 26
 441,261
 4.3
 35,603,350
 4.7
 80.69
2020 23
 311,702
 3.0
 20,180,982
 2.6
 64.74
2021 29
 369,113
 3.6
 24,084,040
 3.2
 65.25
2022 31
 289,323
 2.8
 24,224,560
 3.2
 83.73
2023 15
 468,914
 4.6
 37,810,443
 4.9
 80.63
2024 17
 990,382
 9.6
 95,723,469
 12.5
 96.65
2025 16
 591,141
 5.8
 45,575,954
 6.0
 77.10
2026 15
 432,478
 4.2
 43,371,726
 5.7
 100.29
2027 & thereafter 48
 6,197,422
 60.4
 419,550,447
 54.8
 67.70
Total/weighted average 246
 10,271,057
 100.0% $764,511,912
 100.0% $74.43
(1)Tenants may have multiple leases.
(2)(2)Annualized Cash Rent of Expiring Leases represents the monthly contractual rent for December 2022 under existing leases as of December 31, 2017 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2017 for the 12 months ending December 31, 2018 will reduce cash rent by $20.3 million for the joint venture properties.
(3)Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per leased square foot basis.
(4)Includes approximately 9,390 square feet and annualized cash rent of $0.8 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2017.

30
Table of Contents


Leases in our Suburban portfolio, as at many other suburban office properties, typically have an initial term of five to ten years. For the five years ending December 31, 2022, the average annual lease expirations at our Suburban consolidated and unconsolidated operating properties is expected to be approximately 0.3 million square feet and approximately 0.1 million square feet, respectively, representing an average annual expiration rate of approximately 11.1% per year and approximately 10.5%, respectively, per year (assuming no tenants exercise renewal or cancellation options and there are no tenant bankruptcies or other tenant defaults).
The following tables set forth a schedule of the annual lease expirations at our Suburban consolidated and unconsolidated operating properties, respectively, with respect to leases in place as of December 31, 20172022 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date.
(3)Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per leased square foot basis.
(4)Includes approximately 53,301 square feet and annualized cash rent of $4.1 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2022.
Manhattan Unconsolidated
Operating Properties
Year of Lease Expiration
Number
of
Expiring
Leases(1)
Square
Footage
of
Expiring
Leases		Percentage
of
Total
Leased
Square
Feet
Annualized
Cash Rent
of
Expiring
Leases(2)
Percentage
of
Annualized
Cash Rent
of
Expiring
Leases
Annualized
Cash Rent
Per
Leased
Square
Foot of
Expiring
Leases(3)
2023(4)
29 724,966 5.4 %$63,515,977 5.3 %$87.61 
202430 1,014,470 7.6 112,022,038 9.3 110.42 
202526 425,848 3.2 41,695,535 3.5 97.91 
202635 587,690 4.4 63,670,124 5.3 108.34 
202726 283,795 2.1 38,193,157 3.2 134.58 
202830 294,902 2.2 32,090,762 2.6 108.82 
202917 884,966 6.6 66,377,729 5.5 75.01 
203018 455,760 3.4 45,619,919 3.8 100.10 
203123 2,802,003 21.0 205,840,767 17.1 73.46 
2032 & thereafter76 5,869,628 44.1 535,962,560 44.4 91.31 
Total/weighted average310 13,344,028 100.0 %$1,204,988,568 100.0 %$90.30 
(1)Tenants may have multiple leases.
(2)Annualized Cash Rent of Expiring Leases represents the monthly contractual rent for eachDecember 2022 under existing leases as of the next ten yearsDecember 31, 2022 multiplied by 12. This amount reflects total rent before any rent abatements and thereafter (assuming that noincludes expense reimbursements, which may be estimated as of such date.
(3)Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per leased square foot basis.
(4)Includes approximately 53,011 square feet and annualized cash rent of $3.9 million occupied by month-to-month holdover tenants exercise renewal or cancellation options and that there are no tenant bankruptcies or other tenant defaults):whose leases expired prior to December 31, 2022.
29
Suburban Consolidated Operating Properties
Year of Lease Expiration
 
Number
of
Expiring
Leases(1)
 
Square
Footage
of
Expiring
Leases
 
Percentage
of
Total
Leased
Square
Feet
 
Annualized
Cash Rent
of
Expiring
Leases(2)
 
Percentage
of
Annualized
Cash Rent
of
Expiring
Leases
 
Annualized
Cash Rent
Per
Leased
Square
Foot of
Expiring
Leases(3)
2018(4)
 53
 258,902
 10.6% $8,960,802
 11.5% $34.61
2019 37
 395,568
 16.2
 11,387,110
 14.6
 28.79
2020 46
 284,734
 11.6
 9,905,255
 12.7
 34.79
2021 32
 296,334
 12.1
 9,716,915
 12.5
 32.79
2022 28
 124,214
 5.1
 4,579,117
 5.9
 36.86
2023 24
 193,443
 7.9
 6,604,408
 8.5
 34.14
2024 6
 113,413
 4.6
 3,220,430
 4.1
 28.40
2025 10
 109,013
 4.5
 3,434,309
 4.4
 31.50
2026 15
 284,252
 11.6
 9,523,950
 12.2
 33.51
2027 & thereafter 21
 389,273
 15.8
 10,526,113
 13.6
 27.04
Total/weighted average 272
 2,449,146
 100.0% $77,858,409
 100.0% $31.79
(1)Tenants may have multiple leases.
(2)Annualized Cash Rent of Expiring Leases represents the monthly contractual rent under existing leases as of December 31, 2017 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2017 for the 12 months ending December 31, 2018 will reduce cash rent by $3.4 million for the properties.
(3)Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per leased square foot basis.
(4)Includes approximately 53,994 square feet and annualized cash rent of $2.3 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2017.
Suburban Unconsolidated Operating Properties
Year of Lease Expiration
 
Number
of
Expiring
Leases(1)
 
Square
Footage
of
Expiring
Leases
 
Percentage
of
Total
Leased
Square
Feet
 
Annualized
Cash Rent
of
Expiring
Leases(2)
 
Percentage
of
Annualized
Cash Rent
of
Expiring
Leases
 
Annualized
Cash Rent
Per
Leased
Square
Foot of
Expiring
Leases(3)
2018(4)
 3
 19,684
 4.5% $771,937
 4.9% $39.22
2019 8
 39,354
 9.0
 1,322,125
 8.3
 33.60
2020 5
 47,964
 11.0
 1,837,847
 11.6
 38.32
2021 5
 104,296
 23.9
 4,001,316
 25.2
 38.37
2022 2
 18,012
 4.1
 658,428
 4.1
 36.56
2023 3
 52,010
 11.9
 1,956,588
 12.3
 37.62
2024 2
 52,707
 12.0
 1,860,324
 11.7
 35.30
2025 1
 1,729
 0.4
 59,040
 0.4
 34.15
2026 4
 88,854
 20.3
 3,009,736
 18.9
 33.87
2027 & thereafter 1
 12,862
 2.9
 417,546
 2.6
 32.46
Total/weighted average 34
 437,472
 100.0% $15,894,887
 100.0% $36.33

31



(1)Tenants may have multiple leases.
(2)
Annualized Cash Rent of Expiring Leases represents the monthly contractual rent under existing leases as of December 31, 2017 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2017 for the 12 months ending December 31, 2018 will reduce cash rent by $2.6 million for the joint venture properties.
(3)Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per leased square foot basis.
(4)Includes approximately 19,684 square feet and annualized cash rent of $0.8 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2017.
Tenant Diversification
AtAs of December 31, 2017,2022, our Manhattan and Suburban office properties were leased to 1,220935 tenants, which are engaged in a variety of businesses, including, but not limited to, professional services, financial services, media, apparel, business services and government/non-profit. The following table sets forth information regarding the leases with respect to the 3020 largest tenants in our Manhattan and Suburban office properties, which are not intended to be representative of our tenants as a whole, based on the amount of our share of annualized cash rent as of December 31, 2017:2022:
Tenant NamePropertyLease Expiration  Total Rentable Square FeetAnnualized Cash RentSLG Share of Annualized Cash Rent ($)
% of SLG Share of Annualized Cash Rent (1)
Annualized Rent PSF
Paramount Global (formerly ViacomCBS Inc.)1515 BroadwayJune 20311,603,126 $101,312 $57,748 4.1 %$63.20 
555 West 57th StreetDecember 2023317,851 16,881 16,880 1.2 %53.11 
1515 BroadwayMarch 20289,106 2,062 1,176 0.1 %226.48 
Worldwide PlazaJanuary 202732,598 2,525 630 — %77.46 
1,962,681 $122,780 $76,434 5.4 %$62.56 
Credit Suisse Securities (USA), Inc.11 Madison AvenueMay 20371,184,762 $75,380 $45,228 3.2 %$63.62 
Sony Corporation11 Madison AvenueJanuary 2031578,791 $50,205 $30,123 2.1 %$86.74 
Debevoise & Plimpton, LLP919 Third AvenueFebruary 2023527,433 $46,826 $23,881 1.7 %$88.78 
TD Bank US Holding CompanyOne Vanderbilt AvenueJuly 2041193,159 $24,837 $17,637 1.3 %$128.59 
One Vanderbilt AvenueAugust 20416,843 3,217 2,284 0.2 %470.04 
125 Park AvenueOctober 20236,234 2,027 2,027 0.1 %325.12 
125 Park AvenueOctober 203026,536 1,824 1,824 0.1 %68.72 
232,772 $31,905 $23,772 1.7 %$137.06 
Carlyle Investment Management LLCOne Vanderbilt AvenueSeptember 2036194,702 $32,471 $23,058 1.6 %$166.77 
The City of New York100 Church StreetMarch 2034510,007 $20,622 $20,622 1.5 %$40.43 
King & Spalding1185 Avenue of the AmericasOctober 2025218,275 $20,573 $20,573 1.5 %$94.25 
Metro-North Commuter Railroad Company420 Lexington AvenueNovember 2034344,873 $20,058 $20,058 1.5 %$58.16 
420 Lexington AvenueJanuary 20277,537 444 444 — %58.89 
352,410 $20,502 $20,502 1.5 %$58.18 
WME IMG, LLC304 Park AvenueApril 2028174,069 $13,477 $13,477 1.0 %$77.42 
11 Madison AvenueSeptember 2030104,618 10,358 6,215 0.4 %99.01 
278,687 $23,835 $19,692 1.4 %$85.52 
Nike Retail Services, Inc.650 Fifth AvenueJanuary 203369,214 $38,256 $19,128 1.4 %$552.72 
Bloomberg L.P.919 Third AvenueFebruary 2029557,208 $35,903 $18,311 1.3 %$64.43 
Ares Management LLC245 Park AvenueMay 2026175,042 $17,777 $17,777 1.3 %$101.56 
Cravath, Swaine & Moore LLPWorldwide PlazaAugust 2024617,135 $70,102 $17,490 1.2 %$113.59 
Cooperatieve Rabobank UA245 Park AvenueSeptember 2026109,657 $16,844 $16,844 1.2 %$153.61 
McDermott Will & Emery LLPOne Vanderbilt AvenueMarch 2042146,642 $23,309 $16,551 1.2 %$158.95 
420 Lexington AvenueOctober 204110,043 615 615 — %61.25 
156,685 $23,924 $17,166 1.2 %$152.69 
Toronto Dominion BankOne Vanderbilt AvenueDecember 2042142,892 $18,757 $13,320 0.9 %$131.27 
125 Park AvenueOctober 204152,450 3,476 3,476 0.3 %66.27 
195,342 $22,233 $16,796 1.2 %$111.04 
Stone Ridge Holdings Group LPOne Vanderbilt AvenueDecember 203797,652 $21,428 $15,216 1.1 %$219.43 
30
TenantProperties Lease Expiration 
Total
Leased
Square Feet
 
Percentage
of
Aggregate Office
Portfolio
Leased
Square
Feet
 
Percentage
of our Share of
Aggregate
Portfolio
Annualized
Cash Rent
Credit Suisse Securities (USA), Inc.1 Madison Avenue, 11 Madison Avenue &
1055 Washington Blvd		 2019, 2020 & 2037 2,415,247
 8.5% 8.0%
Viacom International, Inc.1515 Broadway 2028 & 2031 1,479,390
 5.2
 4.4
Ralph Lauren Corporation625 Madison Avenue 2019 386,785
 1.4
 2.0
Sony Corporation11 Madison Avenue 2031 578,791
 2.0
 1.8
Penguin Random House, Inc.1745 Broadway 2020 & 2033 644,598
 2.3
 1.8
Debevoise & Plimpton, LLP919 Third Avenue 2021 577,438
 2.0
 1.6
The City of New York100 Church Street & 420 Lexington Avenue   2030 & 2034 513,145
 1.8
 1.2
Advance Magazine Group, Fairchild Publications750 Third Avenue & 485 Lexington Avenue 2021 339,195
 1.2
 1.2
Metro-North Commuter Railroad Company110 East 42nd Street & 420 Lexington Avenue 2021 & 2034 328,957
 1.2
 1.2
Nike Retail Services, Inc.650 Fifth Avenue 2033 69,214
 0.2
 1.1
News America Incorporated1185 Avenue of the Americas 2020 165,086
 0.6
 1.1
Giorgio Armani Corporation717 Fifth Avenue, 752-760 Madison Avenue & 762 Madison Avenue 2022 & 2024 69,328
 0.2
 1.1
King & Spalding1185 Avenue of the Americas 2025 159,943
 0.6
 1.1
C.B.S. Broadcasting, Inc.555 West 57th Street & Worldwide Plaza 2023 & 2027 371,125
 1.3
 1.0
Omnicom Group, Inc., Cardinia Real Estate220 East 42nd Street & 1055 Washington Blvd. 2028 & 2032 254,914
 0.9
 1.0
Amerada Hess Corp.1185 Avenue of the Americas 2027 181,569
 0.6
 1.0
Cravath, Swaine & Moore LLPWorldwide Plaza 2024 617,134
 2.2
 1.0
National Hockey League1185 Avenue of the Americas 2022 148,217
 0.5
 1.0
WME IMG, LLC11 Madison Avenue & 304 Park Avenue 2028 & 2030 214,707
 0.8
 0.9
Nomura Holding America Inc.810 Seventh Avenue, Worldwide Plaza & 1100 King Street Blgd 5 2026, 2028 & 2033 888,762
 3.1
 0.8
Infor (USA) Inc.635 Sixth Avenue & 641 Sixth Avenue 2022, 2025, 2026 & 2027 149,119
 0.5
 0.8
The Travelers Indemnity Company485 Lexington Avenue 2021 176,838
 0.6
 0.8
RSM McGladrey, Inc.1185 Avenue of the Americas 2018 164,771
 0.6
 0.8
Prada USA Corp724 Fifth Avenue 2028 20,760
 0.1
 0.7

32



Hess Corp1185 Avenue of the AmericasDecember 2027167,169 $15,101 $15,101 1.1 %$90.34 
BMW of Manhattan, Inc.555 West 57th StreetJuly 2032226,556 $12,737 $12,737 0.9 %$56.22 
Total8,412,180 $719,404 $470,451 33.5 %$85.52 
Yelp, Inc.11 Madison Avenue 2025 191,797
 0.7
 0.7
EisnerAmper, LLP750 Third Avenue 2020 152,961
 0.5
 0.7
Schulte, Roth & Zabel LLP919 Third Avenue 2036 263,186
 0.9
 0.6
Newmark & Company Real Estate Inc.125 Park Avenue & 110 East 42nd Street 2031 162,804
 0.6
 0.6
HF Management Services LLC100 Church Street 2032 230,394
 0.8
 0.6
KPMG LLP1350 Avenue of the Americas 2026 112,061
 0.4
 0.6
Total    12,028,236
 42.3% 41.2%
(1)SLG Share of Annualized Cash Rent includes Manhattan, Suburban, Retail, Residential, and Development / Redevelopment properties.
Environmental Matters
We engaged independent environmental consulting firms to perform Phase I environmental site assessments have been prepared on the properties in our portfolio, in order to assess existing environmental conditions. All of the Phase I assessments met the American Society for Testing and Materials (ASTM) Standard. Under the ASTM Standard, a Phase I environmental site assessment consists of a site visit, an historical record review, a review of regulatory agency data bases and records, and interviews with on-site personnel, with the purpose of identifying potential environmental concerns associated with real estate. These environmental site assessments did not reveal any known environmental liability that we believe will have a material adverse effect on our results of operations or financial condition.
ITEM 3.    LEGAL PROCEEDINGS
As of December 31, 2017,2022, the Company and the Operating Partnership were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio which if adversely determined could have a material adverse impact on us.
ITEM 4. MINE SAFETY DISCLOSURES
Not Applicable.

31
33

PART II
ITEM 5.    MARKET FOR REGISTRANTS' COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
SL GREEN REALTY CORP.
Our common stock trades on the New York Stock Exchange, or the NYSE, under the symbol "SLG." On February 22, 2018,15, 2023, the reported closing sale price per share of common stock on the NYSE was $95.91$40.14 and there were 349475 holders of record of our common stock. The table below sets forth the quarterly high and low closing sales prices
SL GREEN OPERATING PARTNERSHIP, L.P.
As of the common stock on the NYSE and the dividends declared by us with respect to the periods indicated.
 2017 2016
Quarter EndedHigh Low Dividends High Low Dividends
March 31$113.75
 $104.62
 $0.775
 $110.92
 $80.54
 $0.72
June 30$109.73
 $101.03
 $0.775
 $106.72
 $95.51
 $0.72
September 30$107.52
 $95.45
 $0.775
 $119.20
 $102.56
 $0.72
December 31$105.01
 $94.15
 $0.8125
 $112.89
 $94.23
 $0.775
If dividends are declared in a quarter, those dividends are generally paid during the subsequent quarter. We expect to continue our policy of distributing our taxable income through regular cash dividends on a quarterly basis, although there is no assurance as to future dividends because they depend on future earnings, capital requirements and financial condition. See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations—Dividends/Distributions," for additional information regarding our dividends.
UNITS
At December 31, 2017,2022, there were 4,452,9793,670,343 units of limited partnership interest of the Operating Partnership outstanding and held by persons other than the Company, which received distributions per unit of the same amount and in the same manner as dividends per share were distributed to common stockholders.
SL GREEN OPERATING PARTNERSHIP, L.P.
There is no established public trading market for the common units of the Operating Partnership. On February 22, 2018,15, 2023, there were 4054 holders of record and 95,042,43668,563,622 common units outstanding, 90,327,09864,365,509 of which were held by SL Green. The table below sets forth the quarterly distributions paid by the Operating Partnership to holders of its common units with respect to the periods indicated.
  Distributions
Quarter Ended 2017 2016
March 31 $0.775
 $0.72
June 30 $0.775
 $0.72
September 30 $0.775
 $0.72
December 31 $0.8125
 $0.775
SL Green expects to pay dividends to its stockholders on a quarterly basis based on the distributions from the Operating Partnership to it primarily from property revenues net of operating expenses or, if necessary, from working capital or borrowings. If SL Green declares a dividend, such dividend is generally paid in the subsequent quarter.
In order for SL Green to maintain its qualification as a REIT, it must make annual distributions to its stockholders of at least 90% of its taxable income (not including net capital gains). SL Green has adopted a policy of paying regular quarterly dividends on its common stock, and the Operating Partnership has adopted a policy of paying regular quarterly distributions to its common units corresponding toin the same amount as dividends paid by SL Green. Cash distributions have been paid on the common stock of SL Green and the common units of the Operating Partnership since the initial public offering of SL Green. Distributions are declared at the discretion of the boardBoard of directorsDirectors of SL Green and depend on actual and anticipated cash from operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code and other factors SL Green’s boardBoard of directorsDirectors may consider relevant.
Each time SL Green issues shares of stock (other than in exchange for common units of limited partnership interest of the Operating Partnership, or OP Units, when such OP Units are presented for redemption), it contributes the proceeds of such issuance

34

to the Operating Partnership in return for an equivalent number of units of limited partnership interest with rights and preferences analogous to the shares issued.
ISSUER PURCHASES OF EQUITY SECURITIES
None.In August 2016, our Board of Directors approved a share repurchase program under which we could buy up to$1.0 billion of shares of our common stock. The Board of Directors has since authorized fiveseparate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.
As of December 31, 2022, share repurchases, excluding the redemption of OP Units, executed under the program were as follows:
PeriodShares repurchasedAverage price paid per shareCumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 20177,865,206$107.817,865,206
Year ended 20189,187,480$102.0617,052,686
Year ended 20194,333,260$88.6921,385,946
Year ended 20208,276,032$64.3029,661,978
Year ended 20214,474,649$75.4434,136,627
Year ended 20221,971,092$76.6936,107,719
32

SALE OF UNREGISTERED AND REGISTERED SECURITIES; USE OF PROCEEDS FROM REGISTERED SECURITIES
During the years ended December 31, 2017, 2016,2022 and 2015,2021, we issued 201,696, 292,291 and 482,311did not issue any shares of our common stock respectively,to holders of units of limited partnership interest in the Operating Partnership upon the redemption of such units pursuant to the partnership agreement of the Operating Partnership. During the year ended December 31, 2020, we issued 95,094 shares of our common stock to holders of units of limited partnership interest in the Operating Partnership upon the redemption of such units pursuant to the partnership agreement of the Operating Partnership. The issuance of such shares was exempt from registration under the Securities Act, pursuant to the exemption contemplated by Section 4(a)(2) thereof for transactions not involving a public offering. The units were exchanged for an equal number of shares of our common stock.
The following table summarizes information, as of December 31, 2017,2022, relating to our equity compensation plans pursuant to which shares of our common stock or other equity securities may be granted from time to time.
Number of securities
to be issued
upon exercise
of outstanding
options, warrants
and rights		Weighted
average
exercise
price of
outstanding
options,
warrants and
rights		Number of securities
remaining available
for future
issuance under
equity compensation
plans (excluding
securities reflected
in column (a))
Plan category(a)(b)(c)
Equity compensation plans approved by security holders (1)
4,031,855 (2)$97.59 (3)6,570,148 (4)
Equity compensation plans not approved by security holders— — — 
Total4,031,855 $97.59 6,570,148 
(1)Includes our Fifth Amended and Restated 2005 Stock Option and Incentive Plan, Amended 1997 Stock Option and Incentive Plan, as amended, and 2008 Employee Stock Purchase Plan.
(2)Includes (i) 313,480 shares of common stock issuable upon the exercise of outstanding options (313,480 of which are vested and exercisable), (ii) 192,638 phantom stock units that may be settled in shares of common stock (192,638 of which are vested), (iii) 2,705,720 LTIP units that, upon the satisfaction of certain conditions, are convertible into common units, which may be presented to us for redemption and acquired by us for shares of our common stock (1,419,640 of which are vested).
(3)Because there is no exercise price associated with restricted stock units, phantom stock units or LTIP units, these awards are not included in the weighted-average exercise price calculation.
(4)Balance is after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units. The number of securities remaining available consists of shares remaining available for issuance under our 2008 Employee Stock Purchase Plan and Fifth Amended and Restated 2005 Stock Option and Incentive Plan.


33
 
Number of securities
to be issued
upon exercise
of outstanding
options, warrants
and rights
 
Weighted
average
exercise
price of
outstanding
options,
warrants and
rights
 
Number of securities
remaining available
for future
issuance under
equity compensation
plans (excluding
securities reflected
in column (a))
 
Plan category(a) (b) (c) 
Equity compensation plans approved by security holders (1)
3,917,900
(2)$94.33
(3)8,715,196
(4)
Equity compensation plans not approved by security holders—
 —
 —
 
Total3,917,900
 $94.33
 8,715,196
 
(1)Includes our Fourth Amended and Restated 2005 Stock Option and Incentive Plan, Amended 1997 Stock Option and Incentive Plan, as amended, and 2008 Employee Stock Purchase Plan.
(2)Includes (i) 1,548,719 shares of common stock issuable upon the exercise of outstanding options (800,902 of which are vested and exercisable), (ii) 10,750 restricted stock units and 99,853 phantom stock units that may be settled in shares of common stock (99,853 of which are vested), (iii) 2,205,600 LTIP units that, upon the satisfaction of certain conditions, are convertible into common units, which may be presented to us for redemption and acquired by us for shares of our common stock (1,465,100 of which are vested).
(3)Because there is no exercise price associated with restricted stock units, phantom stock units or LTIP units, these awards are not included in the weighted-average exercise price calculation.
(4)Balance is after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units. The number of securities remaining available consists of shares remaining available for issuance under our 2008 Employee Stock Purchase Plan and Third Amended and Restated 2005 Stock Option and Incentive Plan.


35

ITEM 6.    SELECTED FINANCIAL DATA
The following table sets forth our selected financial data and should be read in conjunction with our Financial Statements and notes thereto included in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 8, "Financial Statements and Supplementary Data" in this Form 10-K.

36

SL GREEN REALTY CORP.

 Year Ended December 31,
Operating Data2017 2016 2015 2014 2013
(in thousands, except per share data)         
Total revenue$1,511,473
 $1,863,981
 $1,662,829
 $1,519,978
 $1,371,065
Operating expenses293,364
 312,859
 301,624
 282,283
 276,589
Real estate taxes244,323
 248,388
 232,702
 217,843
 203,076
Ground rent33,231
 33,261
 32,834
 32,307
 31,951
Interest expense, net of interest income257,045
 321,199
 323,870
 317,400
 310,894
Amortization of deferred finance costs16,498
 24,564
 27,348
 22,377
 15,855
Depreciation and amortization403,320
 821,041
 560,887
 371,610
 324,461
Transaction related costs(1,834) 7,528
 11,430
 8,707
 3,985
Marketing, general and administrative100,498
 99,759
 94,873
 92,488
 86,192
Total expenses1,346,445
 1,868,599
 1,585,568
 1,345,015
 1,253,003
Equity in net income from unconsolidated joint ventures21,892
 11,874
 13,028
 26,537
 9,921
Equity in net gain on sale of interest in unconsolidated joint venture/real estate16,166
 44,009
 15,844
 123,253
 3,601
Purchase price fair value adjustment—
 —
 40,078
 67,446
 (2,305)
Gain on sale of real estate, net73,241
 238,116
 175,974
 —
 —
Gain (loss) on sale of investment in marketable securities3,262
 (83) —
 3,895
 (65)
Depreciable real estate reserves(178,520) (10,387) (19,226) —
 —
Loss on early extinguishment of debt—
 —
 (49) (32,365) (18,518)
Income from continuing operations101,069
 278,911
 302,910
 363,729
 110,696
Discontinued operations—
 —
 14,549
 182,134
 40,587
Net income101,069
 278,911
 317,459
 545,863
 151,283
Net income attributable to noncontrolling interest in the Operating Partnership(3,995) (10,136) (10,565) (18,467) (3,023)
Net loss (income) attributable to noncontrolling interests in other partnerships15,701
 (7,644) (15,843) (6,590) (10,629)
Preferred unit distributions(11,401) (11,235) (6,967) (2,750) (2,260)
Net income attributable to SL Green101,374
 249,896
 284,084
 518,056
 135,371
Preferred stock redemption costs—
 —
 —
 —
 (12,160)
Perpetual preferred stock dividends(14,950) (14,950) (14,952) (14,952) (21,881)
Net income attributable to SL Green common stockholders$86,424
 $234,946
 $269,132
 $503,104
 $101,330
Net income per common share—Basic$0.88
 $2.35
 $2.71
 $5.25
 $1.10
Net income per common share—Diluted$0.87
 $2.34
 $2.70
 $5.23
 $1.10
Cash dividends declared per common share$3.1375
 $2.94
 $2.52
 $2.10
 $1.49
Basic weighted average common shares outstanding98,571
 100,185
 99,345
 95,774
 92,269
Diluted weighted average common shares and common share equivalents outstanding103,403
 104,881
 103,734
 99,696
 95,266

37

 As of December 31,
Balance Sheet Data (in thousands)2017 2016 2015 2014 2013
Commercial real estate, before accumulated depreciation$10,206,122
 $12,743,332
 $16,681,602
 $14,069,141
 $12,333,780
Total assets13,982,904
 15,857,787
 19,727,646
 17,096,587
 14,959,001
Mortgages and other loans payable, revolving credit facilities, term loans and senior unsecured notes and trust preferred securities, net5,855,132
 6,481,666
 10,275,453
 8,178,787
 6,919,908
Noncontrolling interests in the Operating Partnership461,954
 473,882
 424,206
 496,524
 265,476
Total equity6,589,454
 7,750,911
 7,719,317
 7,459,216
 7,016,876
 Year Ended December 31,
Other Data (in thousands)2017 2016 2015 2014 2013
Net cash provided by operating activities548,373
 634,714
 526,484
 490,381
 386,203
Net cash (used in) provided by investing activities(18,851) 2,122,570
 (2,265,911) (796,835) (628,435)
Net cash (used in) provided by financing activities(681,077) (2,733,240) 1,713,417
 381,171
 258,940
Funds from operations available to all stockholders(1)
667,294
 869,855
 661,825
 583,036
 490,255
(1)FFO is a widely recognized non-GAAP measure of REIT performance. The Company computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended, defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), excluding gains (or losses) from sales of properties and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based bonuses for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, and interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including our ability to make cash distributions
A reconciliation of FFO to net income computed in accordance with GAAP is included in Item 7, of "Management's Discussion and Analysis of Financial Condition and Results of Operations—Funds From Operations."

38

SL GREEN OPERATING PARTNERSHIP, L.P.
 Year Ended December 31,
Operating Data2017 2016 2015 2014 2013
(in thousands, except per unit data)         
Total revenue$1,511,473
 $1,863,981
 $1,662,829
 $1,519,978
 $1,371,065
Operating expenses293,364
 312,859
 301,624
 282,283
 276,589
Real estate taxes244,323
 248,388
 232,702
 217,843
 203,076
Ground rent33,231
 33,261
 32,834
 32,307
 31,951
Interest expense, net of interest income257,045
 321,199
 323,870
 317,400
 310,894
Amortization of deferred finance costs16,498
 24,564
 27,348
 22,377
 15,855
Depreciation and amortization403,320
 821,041
 560,887
 371,610
 324,461
Loan loss and other investment reserves, net of recoveries

 

 

 —
 —
Transaction related costs(1,834) 7,528
 11,430
 8,707
 3,985
Marketing, general and administrative100,498
 99,759
 94,873
 92,488
 86,192
Total expenses1,346,445
 1,868,599
 1,585,568
 1,345,015
 1,253,003
Equity in net income from unconsolidated joint ventures21,892
 11,874
 13,028
 26,537
 9,921
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate16,166
 44,009
 15,844
 123,253
 3,601
Purchase price fair value adjustment—
 —
 40,078
 67,446
 (2,305)
Gain on sale of real estate, net73,241
 238,116
 175,974
 —
 —
Gain (loss) on sale of investment in marketable securities3,262
 (83) —
 3,895
 —
Depreciable real estate reserves(178,520) (10,387) (19,226) —
 —
Loss on early extinguishment of debt—
 —
 (49) (32,365) (18,518)
Income from continuing operations101,069
 278,911
 302,910
 363,729
 110,761
Discontinued operations—
 —
 14,549
 182,134
 40,587
Net income101,069
 278,911
 317,459
 545,863
 151,348
Net loss (income) attributable to noncontrolling interests in other partnerships15,701
 (7,644) (15,843) (6,590) (10,629)
Preferred unit distributions(11,401) (11,235) (6,967) (2,750) (2,260)
Net income attributable to SLGOP105,369
 260,032
 294,649
 536,523
 138,459
Preferred unit redemption costs—
 —
 —
 —
 (12,160)
Perpetual preferred unit distributions(14,950) (14,950) (14,952) (14,952) (21,881)
Net income attributable to SLGOP common stockholders$90,419
 $245,082
 $279,697
 $521,571
 $104,418
Net income per common unit—Basic$0.88
 $2.35
 $2.71
 $5.25
 $1.10
Net income per common unit—Diluted$0.87
 $2.34
 $2.70
 $5.23
 $1.10
Cash dividends declared per common unit$3.1375
 $2.94
 $2.52
 $2.10
 $1.49
Basic weighted average common units outstanding103,127
 104,508
 103,244
 99,288
 95,004
Diluted weighted average common units and common units equivalents outstanding103,403
 104,881
 103,734
 99,696
 95,266
 As of December 31,
Balance Sheet Data (in thousands)2017 2016 2015 2014 2013
Commercial real estate, before accumulated depreciation$10,206,122
 $12,743,332
 $16,681,602
 $14,069,141
 $12,333,780
Total assets13,982,904
 15,857,787
 19,727,646
 17,096,587
 14,959,001
Mortgages and other loans payable, revolving credit facilities, term loans and senior unsecured notes and trust preferred securities, net5,855,132
 6,481,666
 10,275,453
 8,178,787
 6,919,908
Total capital6,589,454
 7,750,911
 7,719,317
 7,459,216
 7,282,352

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ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
SL Green Realty Corp., which is referred to as SL Green or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the acquisition, development, redevelopment, repositioning, ownership, management and operation of commercial and residential real estate properties, principally office properties, located in the New York metropolitan area.area, principally Manhattan. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
Reckson Associates Realty Corp., or Reckson, and Reckson Operating Partnership, L.P. or ROP, are wholly-owned subsidiaries of the SL Green Realty Corp.
The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements appearing in Item 8 of this Annual Report on Form 10-K. A discussion of our results of operations for the year ended December 31, 2021 compared to the year ended December 31, 2020 is included in Part II, Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 18, 2022, and is incorporated by reference into this Annual Report on Form 10-K.
Leasing and Operating
In 2017,As of December 31, 2022, our same-store Manhattan office property occupancy based oninclusive of leases signed but not commenced, was 95.3%91.2% compared to 95.9% in the prior year.93.0% as of December 31, 2021. We signed office leases in Manhattan encompassing approximately 1.52.1 million square feet, of which approximately 0.90.8 million square feet represented office leases that replaced previously occupied space. Our mark-to-market on these approximately 1.5 million square feet of signed Manhattan office leases that replaced previously occupied space was 11.3% for 2017.
According to Cushman & Wakefield, new leasing activity in Manhattan improved significantly in 2017 totaled2022 totaling approximately 30.524.3 million square feet. Of the total 20172022 leasing activity in Manhattan, the Midtown submarket accounted for approximately 19.716.5 million square feet, or approximately 64.6%67.9%. Manhattan's overall office vacancy decreasedwent from 9.3% at20.4% as of December 31, 20162021 to 8.9% at22.2% as of December 31, 2017.2022. Overall average asking rents in Manhattan decreasedincreased in 20172022 by 0.8%2.8% from $72.82$69.67 per square foot atas of December 31, 20162021 to $72.25$71.62 per square foot atas of December 31, 2017,2022, while Manhattan Class A asking rents increased to $79.05$78.72 per square foot, up 0.8%3.2% from $78.43 one year ago.$76.29 as of December 31, 2021.
Acquisition and Disposition Activity
Overall Manhattan sales volume decreasedincreased by 45.5%10.2% in 20172022 to $21.6$23.0 billion as compared to $39.6$20.9 billion in 2016. Consistent with our multi-faceted approach to property acquisitions,2021. In 2022, we selectively sourced the purchase of an interest in Worldwide Plaza, a Class A asset located in Midtown Manhattan.
We also continued to take advantage of significant interest by both international and domestic institutions and individuals seeking ownership interests in Manhattan properties to sell assets, disposing of a significant volumedispose of properties that were considered non-core or had a more limited growth opportunities,trajectory, raising efficiently priced capital that was used primarily for debt reduction and stock repurchases.reduction. During the year, we soldclosed on the sales of all or parta portion of our interestinterests in 680-750 Washington Boulevard, 102 Greene Street, 520 White Plains Road, 16 Court Street,707 Eleventh Avenue, 1080 Amsterdam Avenue, the Stonehenge Portfolio, 1591-1597 Broadway, 609 Fifth Avenue and 125 Chubb885 Third Avenue - Office Condominium Units for total gross valuations of $362.0$660.6 million, and sold a 30.13% interest in 1515 Broadway at a gross valuationgenerating net proceeds to the Company of $1.95 billion, which did not meet the criteria for sale accounting in 2017. We achieved sale accounting upon adoption of ASC 610-20 in January 2018 and closed on the sale of an additional 12.87% interest in this property in February 2018. Additionally, in 2017 we entered a contract to sell 600 Lexington Avenue for a gross asset valuation of $305.0$582.5 million. This transaction closed in January 2018.
Debt and Preferred Equity
In 20162021 and 2017,2022, in our debt and preferred equity portfolio we continued to focus on the origination ofunderwriting financings typically in the form of mezzanine debt, for owners, acquirers or developers of properties in the markets in which we operate, primarily the New York metropolitan area. ThisCity. At the same time, we selectively sold certain investments, some investments were repaid, and we converted some investments into equity ownership, the proceeds of which were utilized to repurchase shares of common stock or for debt repayment. Our investment strategy provides us with the opportunity to fill a need for additional debt financing, while achieving attractive risk adjusted returns to us on the investments and receiving a significant amount of additional information on the New York metropolitan areaCity real estate market. The typical investments made by us during 2016 and 2017 were to reputable owners or acquirers which have sizable equity subordinate to our last dollar exposure. During 2017,2022, our debt and preferred equity activities included purchases and originations,funding of $100.5 million, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization, and $565.9 million of $1,287 million,sales, redemptions and sales, redemption and participations of $813 million.

participations.
For descriptions of significant activities in 2017,2022, refer to "Part I, Item 1. Business - Highlights from 2017.2022."

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Critical Accounting Policies and Estimates
Our discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, and contingencies as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We evaluate our assumptions and estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.
Investment in Commercial Real Estate Properties
Real estate properties are presented at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of properties are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments,investments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.
We recognize the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests in an acquired entity by allocating the purchase price, including transaction costs, at their respective fair values on the acquisition date.
We allocate the purchase price of real estate to land and building (inclusive of tenant improvements) and, if determined to be material, intangibles, such as the value of above- and below-market leases and origination costs associated with the in-place leases.
The allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed involves subjectivity as the allocations are based on an analysis of the respective fair values. In determining the fair value of the real estate acquired, the Company will use a third-party valuation which primarily utilizes cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. We assess fair value of the acquired leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. The determined and allocated fair values to the real estate acquired will affect the amount of depreciation and amortization we record over the respective estimated useful lives or term of the lease.
The Company classifies those leases under which the Company is the lessee at lease commencement as finance or operating leases. Leases qualify as finance leases if i) the lease transfers ownership of the asset at the end of the lease term, ii) the lease grants an option to purchase the asset that we are reasonably certain to exercise, iii) the lease term is for a major part of the remaining economic life of the asset, or iv) the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. On the consolidated statements of operations, operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense.
We incur a variety of costs in the development and leasing of our properties. After the determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include, but are not limited to, pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year after major construction activity ceases. We cease capitalization on the portions substantially completed and occupied or held available for occupancy and capitalize only those costs associated with the portions under construction.
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On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be other than temporarily impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property.property as calculated in accordance with ASC 820. We assess for impairment indicators based on factors such as, among other things, market conditions, occupancy rates, rental payment collections, and operating performance of the asset. If indicators of impairment are present, we evaluate real estate investments for potential impairment primarily utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts.
We also evaluate our real estate properties for impairment when a property has been classified as held for sale. Real estate assets held for sale are valued at the lower of their carrying value or fair value less costs to sell and depreciation expense is no longer recorded. See Note 4, "Properties Held for Sale and Dispositions."
Investments in Unconsolidated Joint Ventures
We account for our investments in unconsolidated joint ventures under the equity method of accounting in cases where we exercise significant influence over, but do not control, these entities and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are variable interest entities (each, a "VIE") and where we are considered to be the primary beneficiary. In all these joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these VIE entities. Determining control of the entities can be subjective in assessing which activities of the joint venture most significantly impact the economic performance and whether the rights of the joint venture partner are protective or participating. In making this determination, any new or amended joint venture agreement is assessed by the Company for the activities that most significantly impact the joint venture’s economic performance based on the business purpose and design of the venture. We assess the rights that are conveyed to us in the agreement and evaluate whether we are provided with participating or protective rights over the activities that most significantly impact the entity’s economic performance. We also assess the rights of our joint venture partner. Such participating rights include, among other things, the right to approve/amend the annual budget, leasing of the property to a significant tenant, and approval of tax returns and auditors. If our joint venture partner has substantive participating rights and we are determined not to be the primary beneficiary, we do not consolidate the entity.
These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Equity in net income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in each joint venture.venture and includes adjustments related to basis differences in accounting for the investment. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. NoneWe generally finance our joint ventures with non-recourse debt. In certain cases we may provide guarantees or master leases for tenant space, which terminate upon the satisfaction of specified circumstances or repayment of the joint venture debt is recourse to us. The Company has performance guarantees under master leases at two joint ventures. See Note 6, "Investments in Unconsolidated Joint Ventures."underlying loans.
We assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on theeach joint ventures' actual and projected discounted cash flows. We do not believe that the values of any of our equity investments were impaired atas of December 31, 2017.

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2022.
We may originate loans for real estate acquisition, development and construction ("ADC loans") where we expect to receive some of the residual profit from such projects. When the risk and rewards of these arrangements are essentially the same as an investor or joint venture partner, we account for these arrangements as real estate investments under the equity method of accounting for investments. Otherwise, we account for these arrangements consistent with the accounting for our debt and preferred equity investments.
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Lease Classification
Lease classification for leases under which the Company is the lessor is evaluated at lease commencement and leases not classified as sales-type leases or direct financing leases are classified as operating leases. Leases qualify as sales-type leases if the contract includes either transfer of ownership clauses, certain purchase options, a lease term representing a major part of the economic life of the asset, or the present value of the lease payments and residual guarantees provided by the lessee exceeds substantially all of the fair value of the asset. Additionally, leasing an asset so specialized that it is not deemed to have any value to the Company at the end of the lease term may also result in classification as a sales-type lease. Leases qualify as direct financing leases when the present value of the lease payments and residual value guarantees provided by the lessee and unrelated third parties exceeds substantially all of the fair value of the asset and collection of the payments is probable.
Revenue Recognition
Rental revenue for operating leases is recognized on a straight-line basis over the term of the lease. lease and we have determined that the collectability of substantially all of the lease payments are probable. If collectability of substantially all of the lease payments is assessed as not probably, rental revenue is recognized only upon actual receipt. The Company assesses the probability of collecting substantially all payments under its leases based on multiple factors, including, among other things, payment history of the lessee, the credit rating of the lessee, historical operations and trends within the lessee’s industry, current and future economic conditions. If collectability of substantially all of the lease payments is assessed as not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current-period adjustment to rental revenue. A subsequent change in the assessment of collectability to probable may result in a current-period adjustment to rental revenue for any difference between the rental revenue that would have been recognized if collectability had always been assessed as probable and the rental revenue recognized to date.
Rental revenue recognition commences when the leased space is available for its intended use by the lessee. To determine whether the leased space is available for its intended use by the lessee, management evaluates whether we are the owner of tenant improvements for accounting purposes or the tenant is. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space.
The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the consolidated balance sheets. We establish,
In addition to base rent, our tenants also generally will pay their pro rata share of increases in real estate taxes and certain operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in certain building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) are typically provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours. These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current basis, an allowanceyear are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for future potential tenant credit losses, whichthe current year.
Rental revenue is recognized if collectability is probable. If collectability of substantially all of the lease payments is assessed as not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current-period adjustment to rental revenue. A subsequent change in the assessment of collectability to probable may occur against this account. result in a current-period adjustment to rental revenue for any difference between the rental revenue that would have been recognized if collectability had always been assessed as probable and the rental revenue recognized to date.
The balance reflected onCompany provides its tenants with certain customary services for lease contracts such as common area maintenance and general security. We have elected to combine the consolidated balance sheets is netnon-lease components with the lease components of such allowance.our operating lease agreements and account for them as a single lease component in accordance with ASC 842.
We record a gain or loss on sale of real estate assets when title is conveyed towe no longer have a controlling financial interest in the buyer, subject toentity owning the buyer's financial commitment being sufficient to provide economic substance toreal estate, a contract exists with a third party and that third party has control of the sale and provided that we have no substantial economic involvement with the buyer.assets acquired.
Interest
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Investment income on debt and preferred equity investments is accrued based on the contractual terms of the instruments and when in the opinion of management, it is deemed collectible. Some debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest is ultimately collectible, based on the underlying collateral and operations of the borrower.collectible. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.
The Company assesses the probability of a borrower’s ability to repay the debt and preferred equity investment similar to the factors noted above. We consider a debt and preferred equity investment to be past due when amounts contractually due have not been paid. Debt and preferred equity investments are placed on a non-accrual status at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of interest income becomes doubtful. Interest income recognition is resumed on any debt or preferred equity investment that is on non-accrual status when such debt or preferred equity investment becomes contractually current and performance is demonstrated to be resumed.
Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as an adjustment to the interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cash flows through the expected maturity date of the related investment. If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt investments acquired at a discount for credit quality, the difference between contractual cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which is expected, are also recognized over the term of the loan as an adjustment to yield.
We consider a debt and preferred equity investment to be past due when amounts contractually due have not been paid. Debt and preferred equity investments are placed on a non-accrual status at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of interest income becomes doubtful. Interest income recognition is resumed on any debt or preferred equity investment when the performance of such non-accrual debt or preferred equity investment is resumed when such non-accrual debt or preferred equity investment becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received.
We may syndicate a portion of the loans that we originate or sell the loans individually. When a transaction meets the criteria for sale accounting, we derecognize the loan sold and recognize gain or loss based on the difference between the sales price and the carrying value of the loan sold. Any related unamortized deferred origination fees, original issue discounts, loan origination costs, discounts or premiums at the time of sale are recognized as an adjustment to the gain or loss on sale, which is included in investment income on the consolidated statement of operations. Any fees received at the time of sale or syndication are recognized as part of investment income.
Asset management fees are recognized on a straight-line basis over the term of the asset management agreement.
Allowance for Doubtful AccountsDebt and Preferred Equity Investments
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our tenants to make required payments. If the financial condition of a specific tenant were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required.
Reserve for Possible Credit Losses
The expense for possible credit losses in connection with debtDebt and preferred equity investments are presented at the net amount expected to be collected in accordance with ASC 326. An allowance for loan losses is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected through the expected maturity date of such investments. The expense for loan loss and other investment reserves is the charge to earnings to increaseadjust the allowance for possible creditloan losses to the level thatappropriate level. Amounts are written off from the allowance when we estimatede-recognize the related investment either as a result of a sale of the investment or acquisition of equity interests in the collateral.
The Company evaluates the amount expected to be adequate,collected based on Level 3current market and economic conditions, historical loss information, and reasonable and supportable forecasts. The Company's assumptions are derived from both internal data considering delinquencies, loss experience and collateral quality. Other factors consideredexternal data which may include, geographic trends, product diversification,among others, governmental economic projections for the sizeNew York City Metropolitan area, public data on recent transactions and filings for securitized debt instruments. This information is aggregated by asset class and adjusted for duration. Based on these inputs, loans are evaluated at the individual asset level. In certain instances, we may also use a probability-weighted model that considers the likelihood of multiple outcomes and the amount expected to be collected for each outcome.
The evaluation of the portfolio and current economic conditions. Based upon these factors, we establish a provision for possible credit loss on each individual investment. When it is probable that we will be unable to collect all amounts contractually due,deterioration associated with the investment is considered impaired.
Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fairperformance and/or value of the collateral. Any deficiency betweenunderlying collateral property as well as the carrying amount of an assetfinancial and the calculated valueoperating capability of the collateral is charged to expense. We continue to assess or adjust our estimates based on circumstances of a loanborrower/sponsor requires significant judgment, which include both asset level and market assumptions over the underlying collateral. If additional information reflects increased recovery of our investment, we will adjust our reserves accordingly. There were no loan reserves recorded during the years ended December 31, 2017, 2016, and 2015.

relevant time period.
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In addition, quarterly, the Company assigns each loan a risk rating. Based on a 3-point scale, loans are rated “1” through “3,” from lower risk to higher risk, which ratings are defined as follows: 1 - Low Risk Assets - Low probability of loss, 2 - Watch List Assets - Higher potential for loss, 3 - High Risk Assets - Loss more likely than not. Loans with risk ratings of 2 or 3 are evaluated to determine whether the expected risk of loss is appropriately captured through the combination of our expectations of current conditions, historical loss information and supportable forecasts described above or whether risk characteristics specific to the loan warrant the use of a probability-weighted model.
Debt and preferred equityFinancing investments that are classified as held for sale are carried at the lower of costexpected amount to be collected or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its expected amount to be collected.
Other financing receivables that are included in balance sheet line items other than the Debt and preferred equity investments line are also measured at the net carrying valueamount expected to the be collected.
Accrued interest receivable amounts related to these debt and preferred equity investments held to maturity. For these reclassified investments,investment and other financing receivables are recorded at the difference between the current carrying value and thenet amount expected cash to be collected at maturity will be accreted into income overwithin Other assets in the remaining termconsolidated balance sheets. Write offs of the investment.
Derivative Instruments
In the normal course of business, we use a variety of commonly used derivative instruments, suchaccrued interest receivables are recognized as interest rate swaps, caps, collarsan expense for loan loss and floors, to manage, or hedge, interest rate risk. Effectiveness is essential for those derivatives that we intend to qualify for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract.
To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option pricing models, replacement cost, and termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

other investment reserves.
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Results of Operations
Reconciliation of Net Income to Same-Store Operating Income
We present Same-Store Operating Income because we believe that this measure, when taken together with the corresponding GAAP financial measures and our reconciliation, provides investors with meaningful information regarding the operating performance of properties. When operating performance is compared across multiple periods, the investor is provided with information not immediately apparent from net income that is determined in accordance with GAAP. Same-Store Operating Income provides information on trends in the revenue generated and expenses incurred in operating our properties, unaffected by the cost of leverage, depreciation, amortization, and other net income components. We use this metric internally as a performance measure. This measure is not an alternative to net income (determined in accordance with GAAP) and same-store performance should not be considered an alternative to GAAP net income performance.
Comparison of the year ended December 31, 20172022 to the year ended December 31, 2016
For properties owned since January 1, 2016 and still owned and operated at December 31, 2017, Same-Store NOI is determined as follows (in millions):
  Year Ended
  December 31,
(in millions) 2017 2016 
Net income $101.1
 $278.9
 
Equity in net gain on sale of interest in unconsolidated joint venture/real estate (16.2) (44.0) 
Gain on sale of real estate, net (73.2) (238.1) 
Depreciable real estate reserves 178.5
 10.4
 
(Loss) gain on sale of investment in marketable securities (3.3) 0.1
 
Depreciation and amortization 403.3
 821.0
 
Interest expense, net of interest income 257.0
 321.2
 
Amortization of deferred financing costs 16.5
 24.6
 
Operating income 863.7
 1,174.1
 
Less: Operating income from other properties/affiliates (250.8) (558.7) 
Same-store operating income $612.9
 $615.4
 
Comparison of the year ended December 31, 2016 to the year ended December 31, 2015
For properties owned since January 1, 2015 and still owned and operated at December 31, 2016, Same-Store NOI is determined as follows (in millions):
  Year Ended
  December 31,
(in millions) 2016 2015 
Net income $278.9
 $317.5
 
Equity in net gain on sale of interest in unconsolidated joint venture/real estate (44.0) (15.8) 
Gain on sale of real estate, net (238.1) (176.0) 
Depreciable real estate reserves 10.4
 19.2
 
Gain (loss) on sale of investment in marketable securities 0.1
 —
 
Depreciation and amortization 821.0
 560.9
 
Interest expense, net of interest income 321.2
 323.9
 
Amortization of deferred financing costs 24.6
 27.3
 
Operating income 1,174.1
 1,057.0
 
Less: Operating income from other properties/affiliates (503.6) (388.2) 
Same-store operating income $670.5
 $668.8
 

44

Results of Operations
Comparison of the year ended December 31, 2017 to the year ended December 31, 20162021
The following comparison for the year ended December 31, 2017,2022, or 2017,2022, to the year ended December 31, 2016,2021, or 2016,2021, makes reference to the effect of the following:

i.“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2016 and still owned by us in the same manner at December 31, 2017 (Same-Store Properties totaled 43 of our 60 consolidated operating properties),
ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2017 and 2016 and all non-Same-Store Properties, including properties that are under development, redevelopment or were deconsolidated during the period,
iii."Disposed Properties" which represents all properties or interests in properties sold or partially sold in 2017 and 2016, and
iv.“Other,” which represents corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.

  Same-Store Disposed Other Consolidated
(in millions) 2017 2016 
$
Change
 
%
Change
 2017 2016 2017 2016 2017 2016 
$
Change
 
%
Change
Rental revenue $961.8
 $942.6
 $19.2
 2.0 % $121.1
 $360.7
 $18.1
 $20.5
 $1,101.0
 $1,323.8
 $(222.8) (16.8)%
Escalation and reimbursement 131.4
 142.0
 (10.6) (7.5)% 40.1
 52.7
 1.4
 2.2
 172.9
 196.9
 (24.0) (12.2)%
Investment income —
 —
 —
 — % —
 —
 193.9
 213.0
 193.9
 213.0
 (19.1) (9.0)%
Other income 8.9
 6.8
 2.1
 30.9 % 0.5
 94.3
 34.3
 29.2
 43.7
 130.3
 (86.6) (66.5)%
Total revenues 1,102.1
 1,091.4
 10.7
 1.0 % 161.7
 507.7
 247.7
 264.9
 1,511.5
 1,864.0
 (352.5) (18.9)%
                         
Property operating expenses 482.6
 474.2
 8.4
 1.8 % 65.3
 98.7
 23.0
 21.6
 570.9
 594.5
 (23.6) (4.0)%
Transaction related costs —
 —
 —
 — % —
 —
 (1.8) 7.5
 (1.8) 7.5
 (9.3) (124.0)%
Marketing, general and administrative —
 —
 —
 — % —
 —
 100.5
 99.8
 100.5
 99.8
 0.7
 0.7 %
  482.6
 474.2
 8.4
 1.8 % 65.3
 98.7
 121.7
 128.9
 669.6
 701.8
 (32.2) (4.6)%
                         
Operating income before equity in net income from unconsolidated joint ventures $619.5
 $617.2
 $2.3
 0.4 % $96.4
 $409.0
 $126.0
 $136.0
 $841.9
 $1,162.2
 $(320.3) (27.6)%
                         
Other income (expenses):                        
Interest expense and amortization of deferred financing costs, net of interest income                 (273.6) (345.8) 72.2
 (20.9)%
Depreciation and amortization                 (403.3) (821.0) 417.7
 (50.9)%
Equity in net income from unconsolidated joint ventures                 21.9
 11.9
 10.0
 84.0 %
Equity in net gain on sale of interest in unconsolidated joint venture/real estate                 16.2
 44.0
 (27.8) (63.2)%
Gain on sale of real estate, net                 73.2
 238.1
 (164.9) (69.3)%
Depreciable real estate reserves                 (178.5) (10.4) (168.1) 1,616.3 %
Gain (loss) on sale of investment in marketable securities                 3.3
 (0.1) 3.4
 (3,400.0)%
Net income                 $101.1
 $278.9
 $(177.8) (63.8)%
i.“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2021 and still owned by us in the same manner as of December 31, 2022 (Same-Store Properties totaled 20 of our 28 consolidated operating properties),
ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2022 and 2021 and all non-Same-Store Properties, including properties that are under development or redevelopment,
iii."Disposed Properties" which represents all properties or interests in properties sold in 2022 and 2021, and
iv.“Other,” which represents properties where we sold an interest resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.
 Same-StoreDisposedOtherConsolidated
(in millions)20222021$
Change		%
Change		202220212022202120222021$
Change		%
Change
Rental revenue$556.7 $530.0 $26.7 5.0 %$0.9 $38.9 $113.9 $109.3 $671.5 $678.2 $(6.7)(1.0)%
Investment income— — — — %— — 81.1 80.3 81.1 80.3 0.8 1.0 %
Other income3.9 3.9 — — %10.4 27.5 59.8 54.1 74.1 85.5 (11.4)(13.3)%
Total revenues560.6 533.9 26.7 5.0 %11.3 66.4 254.8 243.7 826.7 844.0 (17.3)(2.0)%
Property operating expenses266.7 260.1 6.6 2.5 %2.0 17.5 70.5 68.9 339.2 346.5 (7.3)(2.1)%
Transaction related costs— 0.2 (0.2)(100.0)%— — 0.4 3.6 0.4 3.8 (3.4)(89.5)%
Marketing, general and administrative— — — — %— — 93.8 94.9 93.8 94.9 (1.1)(1.2)%
266.7 260.3 6.4 2.5 %2.0 17.5 164.7 167.4 433.4 445.2 (11.8)(2.7)%
Other income (expenses):
Interest expense and amortization of deferred financing costs, net of interest income$(97.3)$(82.3)$(15.0)18.2 %
Depreciation and amortization(215.3)(216.9)1.6 (0.7)%
Equity in net loss from unconsolidated joint ventures(58.0)(55.4)(2.6)4.7 %
Equity in net loss on sale of interest in unconsolidated joint venture/real estate(0.1)(32.8)32.7 (99.7)%
Purchase price and other fair value adjustments(8.1)210.1 (218.2)(103.9)%
(Loss) gain on sale of real estate, net(84.5)287.4 (371.9)(129.4)%
Depreciable real estate reserves and impairments(6.3)(23.8)17.5 (73.5)%
Loss on early extinguishment of debt— (1.6)1.6 (100.0)%
Loan loss and other investment reserves, net of recoveries— (2.9)2.9 (100.0)%
Net (loss) income$(76.3)$480.6 $(556.9)(115.9)%
Rental Escalation and Reimbursement RevenuesRevenue
Rental revenues decreased primarily due to the deconsolidation of 220 East 42nd Street as a result of Disposed Properties ($239.7 million), which included 388-390 Greenwich Street and the effectsale of the partial sale and deconsolidation of 11 Madison Avenue ina joint venture interest during the third quarter of 2016.2021 ($39.0 million), our Disposed Properties ($37.9 million) and properties moved into redevelopment ($23.4 million). This decrease was offset by increased rental revenue atthe acquisition of 245 Park Avenue ($54.3 million), a higher contribution from our Same-Store Properties ($19.126.7 million), and by 1515 Broadway which, in 2016, recognized accounting write-offsa higher contribution from our other Acquired Properties ($17.411.3 million) related to the space previously leased to Aeropostale following the tenant's bankruptcy.

.
45
40



Escalation and reimbursement revenue decreased primarily as a result of Disposed Properties ($12.7 million) and lower recoveries at our Same-Store properties ($10.6 million).
The following table presents a summary of the commenced leasing activity for the year ended December 31, 20172022 in our Manhattan and Suburban portfolio:
 Usable
SF		Rentable
SF
New
Cash
Rent (per
rentable
SF) (1)
Prev.
Escalated
Rent (per
rentable
SF) (2)
TI/LC
per
rentable
SF		Free
Rent (in
months)		Average
Lease
Term (in
years)
Manhattan       
Space available at beginning of the year1,638,009       
Acquired vacancies219,632 
Property out of redevelopment107,612 
Space which became available during the year(3)
      
•       Office1,095,429       
•       Retail185,458       
•       Storage23,863       
 1,304,750       
Total space available3,270,003       
Leased space commenced during the year:       
•       Office(4)
841,915 912,917 $77.53 $74.72 $88.64 8.8 9.5 
•       Retail156,178 164,763 $73.69 $86.66 $43.61 3.9 8.4 
•       Storage7,577 7,832 $25.92 $27.47 $2.36 3.8 5.5 
Total leased space commenced1,005,670 1,085,512 $76.58 $76.61 $81.18 8.0 9.3 
Total available space at end of year2,264,333       
Early renewals      
•       Office181,368 202,336 $72.34 $73.85 $45.63 5.7 7.1 
•       Retail23,789 24,642 $236.36 $238.28 $— — 4.3 
•       Storage4,176 4,183 $31.89 $30.30 $— 4.3 6.7 
Total early renewals209,333 231,161 $89.10 $90.59 $39.94 5.1 6.8 
Total commenced leases, including replaced previous vacancy  
•       Office1,115,253 $76.59 $74.51 $80.83 8.3 9.0
•       Retail 189,405 $94.85 $108.77 $37.94 3.4 7.9
•       Storage 12,015 $28.00 $28.69 $1.54 4.0 5.9
Total commenced leases 1,316,673 $78.77 $79.83 $73.94 7.5 8.8
 
Usable
SF
 
Rentable
SF
 
New
Cash
Rent (per
rentable
SF) (1)
 
Prev.
Escalated
Rent (per
rentable
SF) (2)
 
TI/LC
per
rentable
SF
 
Free
Rent (in
months)
 
Average
Lease
Term (in
years)
Manhattan 
  
  
  
  
  
  
Space available at beginning of the year1,149,571
  
  
  
  
  
  
Space which became available during the year(3)
   
  
  
  
  
  
•       Office1,181,119
  
  
  
  
  
  
•       Retail29,739
  
  
  
  
  
  
•       Storage16,594
  
  
  
  
  
  
 1,227,452
  
  
  
  
  
  
Total space available2,377,023
  
  
  
  
  
  
Leased space commenced during the year: 
  
  
  
  
  
  
•       Office(4)
806,688
 884,513
 $73.59
 $62.13
 $56.80
 4.6
 8.2
•       Retail33,257
 63,710
 $297.35
 $251.55
 $37.72
 6.5
 13.1
•       Storage34,840
 5,560
 $36.32
 $48.86
 $1.92
 1.9
 7.4
Total leased space commenced874,785
 953,783
 $88.32
 $82.88
 $55.20
 4.7
 8.5
              
Total available space at end of year1,502,238
  
  
  
  
  
  
              
Early renewals 
    
  
  
  
  
•       Office281,039
 285,889
 $79.07
 $73.96
 $11.46
 1.9
 4.5
•       Retail45,652
 35,089
 $73.96
 $50.53
 $2.01
 0.1
 5.5
•       Storage2,730
 2,817
 $29.44
 $30.52
 $—
 1.3
 3.2
Total early renewals329,421
 323,795
 $78.09
 $71.04
 $10.34
 1.7
 4.6
              
Total commenced leases, including replaced previous vacancy 
  
          
•       Office  1,170,402
 $74.93
 $66.58
 $45.72
 3.9
 7.3
•       Retail 
 98,799
 $218.01
 $176.40
 $25.04
 4.2
 10.4
•       Storage 
 8,377
 $34.00
 $38.77
 $1.27
 1.7
 6.0
Total commenced leases 
 1,277,578
 $85.73
 $78.42
 $43.83
 3.9
 7.5
(1)Annual initial base rent.

(2)Escalated rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment.
46
Table of Contents(3)Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants held over.

(4)Average starting office rent excluding new tenants replacing vacancies was $70.79 per rentable square feet for 623,803 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $71.17 per rentable square feet for 826,139 rentable square feet.

 
Usable
SF
 
Rentable
SF
 
New
Cash
Rent (per
rentable
SF) (1)
 
Prev.
Escalated
Rent (per
rentable
SF) (2)
 
TI/LC
per
rentable
SF
 
Free
Rent (in
months)
 
Average
Lease
Term (in
years)
Suburban 
  
  
  
  
  
  
Space available at beginning of year965,021
  
  
  
  
  
  
Sold Vacancies(222,250)            
Properties placed in service—
            
Space which became available during the year(3)
   
  
  
  
  
  
•       Office246,565
  
  
  
  
  
  
•       Retail1,338
  
  
  
  
  
  
•       Storage2,866
  
  
  
  
  
  
 250,769
  
  
  
  
  
  
Total space available993,540
  
  
  
  
  
  
Leased space commenced during the year: 
    
  
  
  
  
•       Office(5)
334,739
 345,633
 $31.62
 $35.13
 $34.99
 6.2
 7.5
•       Retail338
 338
 $33.00
 $33.00
 $—
 —
 5.0
•       Storage2,791
 2,858
 $17.42
 $13.92
 $10.13
 0.9
 4.7
Total leased space commenced337,868
 348,829
 $31.51
 $34.79
 $34.75
 6.2
 7.5
              
Total available space at end of the year655,672
  
          
              
Early renewals 
  
          
•       Office181,288
 183,331
 $32.21
 $32.86
 $8.05
 4.1
 4.2
•       Storage2,213
 2,213
 $17.01
 $16.52
 $—
 —
 4.8
Total early renewals183,501
 185,544
 $32.03
 $32.67
 $7.96
 4.0
 4.2
              
Total commenced leases, including replaced previous vacancy 
  
  
  
  
  
  
•       Office 
 528,964
 $31.83
 $33.76
 $25.65
 5.5
 6.3
•       Retail 
 338
 $33.00
 $33.00
 $—
 —
 5.0
•       Storage 
 5,071
 $17.24
 $15.31
 $5.71
 0.5
 4.7
Total commenced leases 
 534,373
 $31.69
 $33.51
 $25.45
 5.4
 6.3
(1)Annual initial base rent.
(2)Escalated rent is calculated as total annual income less electric charges.
(3)Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants held over.
(4)Average starting office rent excluding new tenants replacing vacancies was $70.21 per rentable square feet for 120,566 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $72.83 per rentable square feet for 217,384 rentable square feet.
(5)Average starting office rent excluding new tenants replacing vacancies was $37.88 per rentable square feet for 25,866 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $35.19 per rentable square feet for 96,688 rentable square feet.
Investment Income
Investment income decreasedincreased primarily as a result of additional income recognized froman increase in the recapitalizationweighted average yield of aour debt and preferred equity investments due to recognition of previously unrecorded default interest on our preferred equity investment ($41.0 million)at 245 Park Avenue in the third quarter of 2016, partially offset by income related to our preferred equity investment in 885 Third Avenue ($16.9 million) and a larger weighted average book balance.2022. For the twelve monthsyears ended December 31, 2017,2022 and 2021, the weighted average balance of our debt and preferred equity investment balance outstandingportfolio and the weighted average yield were $1.9$1.0 billion and 9.3% excluding our investment in Two Herald Square which was put on non-accrual in August 2017,8.3%, respectively, compared to $1.5$1.1 billion and 9.7%7.1%, respectively, for the same period in 2016.respectively. As of December 31, 2017,2022, the debt and preferred equity investmentsinvestment portfolio had a weighted average term to maturity of 2.21.4 years excluding extension options and our investment in Two Herald Square.options.
Other Income
Other income decreased primarily due to lower lease termination income for the year ended December 31, 2022 ($5.4 million) as compared to the same period in 2021 ($22.6 million), and a resultdecrease in acquisition fee income related to joint venture properties ($2.5 million). This decrease was offset by an increase in construction fee income ($6.2 million), and income related to the resolution of the termination fee earnedCompany's investment in connection with the termination of the lease with Citigroup, Inc. at 388-390 Greenwich in 20161591-1597 Broadway ($94.05.0 million) and promote income earned in connection with the sale of 33

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47
41



Beekman in the second quarter of 2016 ($10.8 million). The decrease was partially offset by net fees recognized in connection with the One Vanderbilt venture in 2017 ($13.3 million).
Property Operating Expenses
Property operating expenses decreased primarily asdue to the sale of a resultjoint venture interest and deconsolidation of Disposed Properties220 East 42nd Street ($33.412.9 million) partially offset by increasedin the third quarter of 2021, and reduced real estate taxes at our Same-Store Properties ($8.2 million).
Transaction Related Costs
The decrease in transaction related costs in 2017 is primarily due to the adoption of ASU No. 2017-01 in 2017, which clarified the definition of a business Further decreases resulted from reduced variable expenses and provided guidance to assist in determining whether transactions should be accounted for as acquisitions of assets or businesses. Following the adoption of the guidance, most of our real estate acquisitions are considered asset acquisitionstaxes at our Disposed Properties ($7.9 million and transaction costs are therefore capitalized to the investment basis when they would have previously been expensed under the previous guidance. Transaction costs expensed in 2017 relate primarily to transactions that are not moving forward for which any costs incurred are expensed.$7.3 million, respectively), partially offset by increased variable expenses at our Same-Store Properties ($14.7 million) and increasesd real estate taxes and variable expenses at our Acquired Properties ($6.8 million and $5.6 million, respectively).
Marketing, General and Administrative Expenses
Marketing, general and administrative expenses decreased to $93.8 million for the year ended December 31, 2017 were $100.5 million, including a $4.1 million charge related to forfeiture of the Company's 2014 Outperformance Plan awards, or 5.3% of total combined revenues, including our share of joint venture revenues, and 53 basis points of total combined assets, including our share of joint venture assets2022, compared to $99.8$94.9 million or 4.7% of total revenues including our share of joint venture revenues, and 53 basis points of total combined assets including our share of joint venture assets for 2016.the same period in 2021 due to reduced compensation expense.
Interest Expense and Amortization of Deferred Financing Costs, Net of Interest Income
Interest expense and amortization of deferred financing costs, net of interest income, decreasedincreased primarily due to acquiring 245 Park Avenue in the third quarter of 2022 ($21.9 million) and a significant increase in average LIBOR and SOFR rates during the year ended December 31, 2022 as a resultcompared to the year ended December 31, 2021 ($24.6 million), which was primarily due to term loans ($9.8 million) and the revolving credit facility ($8.4 million). These increases were offset by the deconsolidation of 220 East 42nd Street ($11.1 million) in the Disposed Propertiesthird quarter of 2021, repayments of unsecured bonds ($72.210.9 million)., the partial repayment of term loans ($6.2 million) in the fourth quarter of 2021, and the sale of 1080 Amsterdam Avenue ($2.5 million) in the second quarter of 2022. The weighted average consolidated debt balance outstanding was $6.6$4.6 billion for the year ended December 31, 2017 from $8.52022, compared to $4.8 billion for the year ended December 31, 2016.2021. The consolidated weighted average interest rate was 4.00%3.55% for the year ended December 31, 20172022, as compared to 3.82%2.93% for the year ended December 31, 2016.2021.
Depreciation and Amortization
Depreciation and amortization decreased primarily due to our Disposed Properties ($15.1 million) and to the deconsolidation of 220 East 42nd Street ($9.5 million) as a result of the Disposed Properties ($448.9 million),interest sale during the third quarter of 2021, partially offset by acceleratedincreased depreciation and amortization at 5-7 Dey Street, 183 & 187 Broadway upon the commencement of demolition of theour Acquired properties ($32.025.3 million).
Equity in Net Income in Unconsolidated Joint Venture/Real Estatenet loss from unconsolidated joint ventures
Equity in net incomeloss from unconsolidated joint ventures increased primarily as a result of the sale of a 40%increased interest in 11 Madison in the third quarter of 2016expense across our joint venture portfolio ($13.0 million), as well as higher net income contributions from 1745 Broadway ($7.328.3 million) and 605 Westa decrease in income from operations at Worldwide Plaza ($3.7 million), 450 Park Avenue ($3.2 million) and 919 Third Avenue ($3.1 million). This was offset by an increase in income from operations at One Vanderbilt Avenue ($28.6 million), 1515 Broadway ($6.3 million) and 220 East 42nd Street ($3.5 million) in 2017. These increases were partially offset by lower net income contributions from 280 Park Avenue ($5.7 million) as a result of the write off of deferred financing costs in conjunction with the refinancing of the debt on the property, reduced occupancy at 3 Columbus Circle ($3.9 million), and revenues from a debt and preferred equity investment that was contributed to a joint venture in the first quarter of 2016, and repaid in the second quarter of 2017 ($2.75.0 million).
Equity in Net Gainnet loss on Salesale of Interestinterest in Unconsolidated Joint Venturesunconsolidated joint venture/real estate
During the year ended December 31, 20162022, we recognized a gainloss on the sale related to our interests in 747 Madison Avenue ($13.0 million), 102 Greene Street ($0.3 million) and part of our interest in the Stonehenge Portfolio ($0.9 million). The sale of 747 Madison, which occurred in 2014, did not meet the criteria for sale accounting at that time and, therefore, remained on our consolidated financial statement until the criteria was met in the second quarter of 2017.Portfolio. During the year ended December 31, 2016,2021, we recognized losses on the sales of our interest in which we recognizedOne Madison Avenue ($26.9 million), 55 West 46th Street ($15.3 million) and 400 East 57th Street ($1.5 million), offset by a gain on the sale of our interestsinterest in 33 Beekman605 West 42nd Street ($33.0 million), 7 Renaissance Square ($4.2 million), 1 Jericho ($3.3 million) and EOP Denver ($3.18.3 million).
Gain on Sale of Real Estate, NetPurchase price and other fair value adjustments
During the year ended December 31, 2017,2022, we recognizedrecorded a gain on sale associated with the sale of the property at 16 Court Street ($64.9 million),$6.4 million fair value adjustment related to an investment in marketable securities and the partial sale of the property at 102 Greene Street ($4.9 million). This gain was partially offset by a loss on the sale of 885 Third Avenue ($8.8 million) which closed in 2016, but was only recognized in the second quarter of 2017 due$1.7 million fair value adjustment related to the salederivatives that are not meeting the criteria for sale accounting under the full accrual method in ASC 360-20 until the second quarter of 2017.designated as hedges. During the year ended December 31, 20162021, we recognizedrecorded a $206.8 million fair value adjustment related to the 51.0% interest we retained in 220 East 42nd Street, which was deconsolidated when a 49.0% joint venture interest was sold.
(Loss) gain on sale associated with the sales of 388-390 Greenwich ($206.5 million), a 49% interest in 400 East 57th Street ($23.9 million), 248-252 Bedford Avenue in Brooklyn, New York ($15.3 million), and a 40% interest in 11 Madison Avenue ($3.6 million), partially offset by the loss on the sale of 7 International Drive, Westchester County, NY ($6.9 million).

48

Depreciable Real Estate Reservesreal estate, net
During the year ended December 31, 2017,2022, we recordedrecognized losses on the sales of 609 Fifth Avenue ($80.2 million), 885 Third Avenue ($24.0 million) and 707 Eleventh Avenue ($0.8 million), offset by a $178.5 milliongain on the sale of depreciable real estate reserves related to Reckson Executive Park, Stamford Towers, 125 Chubb1080 Amsterdam Avenue in Lyndhurst, NJ, 115-117 Stevens Avenue in Valhalla, New York, 520 White Plains Road in Tarrytown, NY, and our investment in Jericho Plaza.($17.9 million). During the year ended December 31, 2016,2021, we recognized gains on the sale of a 49.0% joint venture interest in 220 East 42nd Street ($172.7 million), and the sales of 635-641 Sixth Avenue ($99.2 million) and 410 Tenth Avenue ($15.7 million).
42

Depreciable Real Estate Reserves and Impairments
During the year ended December 31, 2022, we recognized depreciable real estate reserves and impairments related to 500 West Putnam121 Greene Street ($10.46.3 million) as the investment was under contract for sale as of December 31, 2022. During the year ended December 31, 2021, we recognized depreciable real estate reserves and impairments related to 400 East 57th Street ($5.7 million), as well as investments under contract for sale as of December 31, 2021 in 707 Eleventh Avenue ($15.0 million) and the Stonehenge Properties ($3.1 million).
Loan loss and other investment reserves, net of recoveries
During the year ended December 31, 2022, we did not recognize any loan loss and other investment reserves. During the year ended December 31, 2021, we recorded $2.9 million of loan loss and other investment reserves in conjunction with recording debt and preferred equity investments and other financing receivables at the net amount expected to be collected.
Comparison of the year ended December 31, 20162021 to the year ended December 31, 20152020
The followingFor a comparison of the year ended December 31, 2021 to the year ended December 31, 2020, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Form 10-K for the year ended December 31, 2016, or 2016, to the year ended December 31, 2015, or 2015, makes reference to the following:  (i) the effect of the “Same-Store Properties,”2021, which represents all operating properties owned by us at January 1, 2015 and still owned by us in the same manner at December 31, 2016 (Same-Store Properties totaled 55 of our 68 consolidated operating properties, representing 75.7% of our share of annualized cash rent), (ii) the effect of the “Acquisition Properties,” which represents all properties or interests in properties acquired in 2016 and 2015 and all non-Same-Store Properties, including properties that are under development, redevelopment or deconsolidated during the period, and (iii) “Other,” which represents corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc. Any assets sold or held for sale are excluded from the income from continuing operations and from the following discussion.

  Same-Store Acquisition Other Consolidated
(in millions) 2016 2015 
$
Change
 
%
Change
 2016 2015 2016 2015 2016 2015 
$
Change
 
%
Change
                         
Rental revenue $1,015.3
 $996.2
 $19.1
 1.9 % $144.9
 $46.6
 $163.6
 $203.2
 $1,323.8
 $1,246.0
 $77.8
 6.2 %
Escalation and reimbursement 180.2
 165.3
 14.9
 9.0 % 14.8
 7.2
 1.9
 6.0
 196.9
 178.5
 18.4
 10.3 %
Investment income —
 —
 —
 — % —
 0.1
 213.0
 181.0
 213.0
 181.1
 31.9
 17.6 %
Other income 6.9
 22.8
 (15.9) (69.7)% 1.3
 7.0
 122.1
 27.4
 130.3
 57.2
 73.1
 127.8 %
Total revenues 1,202.4
 1,184.3
 18.1
 1.5 % 161.0
 60.9
 500.6
 417.6
 1,864.0
 1,662.8
 201.2
 12.1 %
                         
Property operating expenses 530.1
 514.2
 15.9
 3.1 % 39.4
 13.5
 25.0
 39.5
 594.5
 567.2
 27.3
 4.8 %
Transaction related costs —
 —
 —
 — % 0.6
 7.9
 6.9
 3.5
 7.5
 11.4
 (3.9) (34.2)%
Marketing, general and administrative —
 —
 —
 — % —
 —
 99.8
 94.9
 99.8
 94.9
 4.9
 5.2 %
  530.1
 514.2
 15.9
 3.1 % 40.0
 21.4
 131.7
 137.9
 701.8
 673.5
 28.3
 4.2 %
                         
Net operating income $672.3
 $670.1
 $2.2
 0.3 % $121.0
 $39.5
 $368.9
 $279.7
 $1,162.2
 $989.3
 $172.9
 17.5 %
                         
Other income (expenses):                        
Interest expense and amortization of deferred financing costs, net of interest income                 (345.8) (351.2) 5.4
 (1.5)%
Depreciation and amortization                 (821.0) (560.9) (260.1) 46.4 %
Equity in net income from unconsolidated joint ventures                 11.9
 13.0
 (1.1) (8.5)%
Equity in net gain on sale of interest in unconsolidated joint venture/real estate                 44.0
 15.8
 28.2
 178.5 %
Purchase price fair value adjustment                 —
 40.1
 (40.1) (100.0)%
Gain on sale of real estate, net                 238.1
 176.0
 62.1
 35.3 %
Depreciable real estate reserves                 (10.4) (19.2) 8.8
 (45.8)%
Gain on sale of investment in marketable securities                 (0.1) —
 (0.1) 100.0 %
Income from continuing operation                 278.9
 302.9
 (24.0) (7.9)%
Net income from discontinued operations                 —
 0.4
 (0.4) (100.0)%
Gain on sale of discontinued operations                 —
 14.1
 (14.1) (100.0)%
Net income                 $278.9
 $317.4
 $(38.5) (12.1)%

49

Rental, Escalation and Reimbursement Revenues
Rental revenues increased primarily as a result of the properties acquired ($98.2 million), which included the acquisition of 11 Madison in the third quarter of 2015 togetherwas filed with the subsequent sale of a 40% interest in 11 Madison in the third quarter of 2016 ($59.2 million), the consolidation of 600 Lexington Avenue in the fourth quarter of 2015 ($19.3 million), and an increase in rents at our Same-Store Properties ($19.1 million). In addition, rental revenues increased as a result of the accelerated recognition of non-cash deferred income from 388-390 Greenwich Street as a result of Citigroup, Inc. ("Citi") exercising its option to purchase the property and entering into an agreement to accelerate the sale ($37.1 million). This increase was partially offset by the sale of 120 West 45th Street in the third quarter of 2015 ($18.3 million), the sale of 885 Third Avenue in the first quarter of 2016 ($11.9 million), as well as accounting write-offs ($17.4 million) and decreased cash revenue ($2.0 million) related to the space previously leased to Aeropostale at 1515 Broadway following the tenant's bankruptcy.SEC on February 18, 2022.
Escalation and reimbursement revenue increased primarily as a result of higher real estate tax recoveries at the Same-Store Properties ($14.9 million) and Acquisition Properties ($7.6 million) attributable to an increase in the related tax expense. This was partially offset by decreased real estate tax recoveries due to the sale of 120 West 45th Street ($2.3 million), and 140 Grand Street ($1.3 million).
Occupancy in our Same-Store Manhattan consolidated office operating portfolio, excluding leases signed but not yet commenced was 95.9% at December 31, 2016 as compared to 96.5% at December 31, 2015. Occupancy for our Same-Store Suburban consolidated office operating portfolio, excluding leases signed but not yet commenced, increased to 84.4% at December 31, 2016 as compared to 81.4% at December 31, 2015.
The following table presents a summary of the commenced leasing activity for the year ended December 31, 2016 in our Manhattan and Suburban portfolio:

50

 
Useable
SF
 
Rentable
SF
 
New
Cash
Rent (per
rentable
SF) (1)
 
Prev.
Escalated
Rent (per
rentable
SF) (2)
 
TI/LC
per
rentable
SF
 
Free
Rent (in
months)
 
Average
Lease
Term (in
years)
Manhattan 
  
  
  
  
  
  
Space available at beginning of the period1,395,967
  
  
  
  
  
  
Sold Vacancies—
            
Properties placed in service235,629
            
Space which became available during the period(3)
   
  
  
  
  
  
•       Office1,024,824
  
  
  
  
  
  
•       Retail83,256
  
  
  
  
  
  
•       Storage14,198
  
  
  
  
  
  
 1,122,278
  
  
  
  
  
  
Total space available2,753,874
  
  
  
  
  
  
Leased space commenced during the period: 
  
  
  
  
  
  
•       Office(4)
1,491,233
 1,605,582
 $68.68
 $60.35
 $56.85
 7.0
 10.5
•       Retail81,648
 94,236
 $173.91
 $167.67
 $50.16
 5.7
 16.3
•       Storage31,422
 31,758
 $24.01
 $25.12
 $37.46
 14.5
 12.4
Total leased space commenced1,604,303
 1,731,576
 $73.59
 $63.70
 $56.13
 7.1
 10.8
              
Total available space at end of period1,149,571
  
  
  
  
  
  
              
Early renewals 
    
  
  
  
  
•       Office1,600,623
 1,720,763
 $73.88
 $57.78
 $30.47
 3.5
 10.5
•       Retail100,324
 118,695
 $105.52
 $80.92
 $28.43
 0.6
 14.5
•       Storage13,757
 10,496
 $20.70
 $53.41
 $—
 0.2
 17.7
Total early renewals1,714,704
 1,849,954
 $75.60
 $59.24
 $30.17
 3.3
 10.8
              
Total commenced leases, including replaced previous vacancy 
  
          
•       Office  3,326,345
 $71.37
 $58.59
 $43.20
 5.2
 10.5
•       Retail 
 212,931
 $135.79
 $97.03
 $38.05
 2.9
 15.3
•       Storage 
 42,254
 $23.19
 $46.03
 $28.15
 10.9
 13.8
Total commenced leases 
 3,581,530
 $74.63
 $60.62
 $42.72
 5.1
 10.8

51

 
Useable
SF
 
Rentable
SF
 
New
Cash
Rent (per
rentable
SF) (1)
 
Prev.
Escalated
Rent (per
rentable
SF) (2)
 
TI/LC
per
rentable
SF
 
Free
Rent (in
months)
 
Average
Lease
Term (in
years)
Suburban 
  
  
  
  
  
  
Space available at beginning of period1,175,375
  
  
  
  
  
  
Sold Vacancies(63,292)            
Properties placed in service—
            
Space which became available during the period(3)
   
  
  
  
  
  
•       Office270,255
  
  
  
  
  
  
•       Retail2,336
  
  
  
  
  
  
•       Storage960
  
  
  
  
  
  
 273,551
  
  
  
  
  
  
Total space available1,385,634
  
  
  
  
  
  
Leased space commenced during the period: 
    
  
  
  
  
•       Office(5)
414,245
 418,217
 $31.65
 $35.05
 $39.27
 7.5
 8.9
•       Retail2,336
 2,336
 $31.04
 $31.04
 $6.47
 3.5
 9.3
•       Storage4,032
 4,415
 $13.28
 $11.05
 $—
 2.7
 6.2
Total leased space commenced420,613
 424,968
 $31.46
 $34.95
 $38.68
 7.4
 8.9
              
Total available space at end of the period965,021
  
          
              
Early renewals 
  
          
•       Office307,101
 316,196
 $38.30
 $36.61
 $15.48
 4.0
 4.9
•       Retail3,100
 3,134
 $225.00
 $185.76
 $—
 1.0
 7.0
•       Storage1,996
 1,996
 $10.57
 $10.57
 $—
 —
 3.7
Total early renewals312,197
 321,326
 $39.95
 $37.91
 $15.23
 3.9
 4.9
              
Total commenced leases, including replaced previous vacancy 
  
  
  
  
  
  
•       Office 
 734,413
 $34.51
 $36.05
 $29.03
 6.0
 7.2
•       Retail 
 5,470
 $142.17
 $119.69
 $2.76
 2.0
 8.0
•       Storage 
 6,411
 $12.43
 $10.64
 $—
 1.9
 5.4
Total commenced leases 
 746,294
 $35.11
 $36.84
 $28.58
 5.9
 7.2
(1)Annual initial base rent.
(2)Escalated rent is calculated as total annual income less electric charges.
(3)Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants held over.
(4)Average starting office rent excluding new tenants replacing vacancies was $63.17 per rentable square feet for 112,581 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $70.94 per rentable square feet for 154,379 rentable square feet.
(5)Average starting office rent excluding new tenants replacing vacancies was $37.65 per rentable square feet for 24,635 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $35.86 per rentable square feet for 63,040 rentable square feet.
Investment Income
Investment income increased primarily as a result of additional income recognized from the recapitalization of a debt investment ($41.0 million). This increase was partially offset by a lower weighted average yield and balance for the year ended December 31, 2016. For the twelve months ended December 31, 2016, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $1.5 billion and 9.7%, respectively, compared to $1.7 billion and 10.3%, respectively, for the same period in 2015. As of December 31, 2016, the debt and preferred equity investments had a fully extended weighted average term to maturity of 3.0 years.
Other Income
Other income increased primarily as a result of the lease termination fee earned in connection with the termination of the lease with Citi at 388-390 Greenwich Avenue ($94.0 million), and promote income earned in connection with the sale of 33

52

Beekman ($10.8 million), which was partially offset by a lease termination fee received at 919 Third Avenue in 2015 ($11.3 million).
Property Operating Expenses
Property operating expenses increased primarily as a result of properties acquired ($25.9 million), which includes the acquisition 11 Madison in the third quarter of 2015 together with the subsequent sale of a 40% interest in 11 Madison in the third quarter of 2016 ($9.9 million), the consolidation of 600 Lexington Avenue ($8.6 million) in the fourth quarter if 2015, and higher operating expenses at the Same-Store Properties ($15.5 million) primarily driven by real estate taxes ($13.5 million). These increases were partially offset by a decrease in expenses stemming from our sold properties ($17.7 million), which included the sale of 120 West 45th St in the third quarter of 2015 ($9.8 million).
Marketing, General and Administrative Expenses
Marketing, general and administrative expenses for the year ended December 31, 2016 were $99.8 million, or 4.7% of total combined revenues, including our share of joint venture revenues, and 53 basis points of total combined assets, including our share of joint venture assets compared to $94.9 million, or 5.0% of total revenues including our share of joint venture revenues, and 44 basis points of total combined assets including our share of joint venture assets for 2015.
Interest Expense and Amortization of Deferred Financing Costs, Net of Interest Income
Interest expense, net of interest income, decreased primarily as a result of the sale of 388-390 Greenwich Street in the second quarter of 2016 ($16.5 million), and the sale of 120 West 45th Street in the fourth quarter of 2015 ($7.7 million). These decreases were partially offset by the mortgage related to the acquisition of 11 Madison Avenue in the third quarter of 2015 ($20.8 million). The weighted average consolidated debt balance outstanding increased to $9.3 billion for the year ended December 31, 2016 from $9.2 billion for the year ended December 31, 2015. The weighted average interest rate was 3.87% for the year ended December 31, 2016 as compared to 3.78% for the year ended December 31, 2015.
Depreciation and Amortization
Depreciation and amortization increased primarily as a result of the accelerated depreciation expense related to 388-390 Greenwich Street as a result of Citi exercising its option to purchase the property and entering into an agreement to accelerate the sale ($329.7 million). The increase is also driven by the acquisition of 100% interest of 11 Madison in the third quarter of 2015 together with the subsequent sale of a 40% interest in 11 Madison in the third quarter of 2016 ($52.5 million). These increases were partially offset by the accelerated depreciation in 2015 related to vacating the properties that comprise the One Vanderbilt development site ($146.6 million).
Equity in Net Income in Unconsolidated Joint Venture/Real Estate
Equity in net income from unconsolidated joint ventures decreased primarily as a result of the sale of a 40% interest in 11 Madison in the third quarter of 2016. The sale did not meet the criteria for sale accounting until December 2016 resulting in recognition of the other partner's share of depreciation ($8.4 million) in addition to our share of the operations of the property. The decrease was partially offset by an increase at 1552-1560 Broadway ($4.6 million) as a result of the settlement in February 2016 of arbitration regarding a tenant's rent at the property and revenue from a debt and preferred equity investment that was contributed to a joint venture in the first quarter of 2016 ($4.5 million), and from the increase at 650 Fifth Avenue as a result of the loan refinance in the third quarter of 2016 ($3.6 million).
Equity in Net Gain on Sale of Interest in Unconsolidated Joint Ventures
During the year ended December 31, 2016 we recognized a gain on the sale of 33 Beekman Street ($33.0 million), 7 Renaissance Square ($4.2 million), 1 Jericho ($3.3 million) and EOP Denver ($3.1 million), compared to the year ended December 31, 2015, in which we recognized a gain on sale associated with the sale of our joint venture interest at 315 West 36th Street ($16.3 million), partially offset by a loss on the sale of our joint venture interest at the Meadows ($1.6 million).
Purchase Price Fair Value Adjustment
The purchase price fair value adjustment for the year ended December 31, 2015 was attributable to the acquisition of our joint venture partner's interest in 600 Lexington Avenue.
Gain on Sale of Real Estate
During the year ended December 31, 2016, we recognized a gain on sale associated with the sales of 388-390 Greenwich ($206.5 million), a 49% interest in 400 East 57th Street ($23.9 million), 248-252 Bedford Avenue in Brooklyn, New York ($15.3 million), and a 40% interest in 11 Madison Avenue ($3.6 million), partially offset by the loss on the sale of 7 International Drive, Westchester County, NY ($6.9 million). During the year ended December 31, 2015 we recognized a gain on sale associated with the sales of an 80% interest in 131-137 Spring Street ($101.1 million), 120 West 45th Street ($58.6 million), 570 & 574 Fifth Avenue ($24.6 million), partially offset by a loss on the sale of 885 Third Avenue ($6.6 million).

53

Depreciable Real Estate Reserves
During the year ended December 31, 2016, we recognized depreciable real estate reserves related to the sale of 500 West Putnam ($10.4 million), as compared to the same period in 2015 when we recognized depreciable real estate reserves related to the sale of two properties ($19.2 million).
Discontinued Operations
Discontinued operations for the year ended December 31, 2015 included the gain recognized on the sale of 180 Maiden Lane ($17.0 million) and the related results of operations. The Company adopted ASU 2014-08 effective January 1, 2015 which raised the threshold for disposals to qualify as discontinued operations to dispositions which represent a strategic shift in an entity’s operations. The guidance was applied prospectively for new disposals. As a result, the results of operations for 388-390 Greenwich Street, which was classified as held for sale at March 31, 2016, 500 West Putnam Avenue, which was classified as held for sale at June 30, 2016 and 400 East 57th Street which was held for sale at September 30, 2016, are included in continuing operations for year ended December 31, 2016.
Liquidity and Capital Resources
We currently expect that ourthe principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, acquisitions, development or redevelopment of properties, tenant improvements, leasing costs, common share repurchases, dividends to shareholders, distributions to unitholders, repurchases or repayments of outstanding indebtedness (which may include exchangeable debt) and for debt and preferred equity investments maywill include:
(1)Cash flow from operations;
(2)Cash on hand;
(3)Net proceeds from divestitures of properties and redemptions, participations and dispositions of debt and preferred equity investments;
(4)Borrowings under the 2017 credit facility;
(5)Other forms of secured or unsecured financing; and
(6)Proceeds from common or preferred equity or debt offerings by the Company, the Operating Partnership (including issuances of units of limited partnership interest in the Operating Partnership and Trust preferred securities) or ROP.
(1)Cash flow from operations;
(2)Cash on hand;
(3)Net proceeds from divestitures of properties and redemptions, participations, dispositions and repayments of debt and preferred equity investments;
(4)Borrowings under the revolving credit facility;
(5)Other forms of secured or unsecured financing; and
(6)Proceeds from common or preferred equity or debt offerings by the Company or the Operating Partnership (including issuances of units of limited partnership interest in the Operating Partnership and Trust preferred securities).
Cash flow from operations is primarily dependent upon the collectability of rent, the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent, operating escalations and recoveries from our tenants and the level of operating and other costs. Additionally, we believe that our debt and preferred equity investment program will continue to serve as a source of operating cash flow.
43

The combined aggregate principal maturities of our property mortgages and other loans payable, corporate obligations andthe 2021 credit facility, 2022 term loan, senior unsecured notes (net of discount), trust preferred securities, our share of joint venture debt, including as-of-right extension options and put options, estimated interest expense, and our obligations under our financing and operating leases, as of December 31, 2017 were2022 are as follows (in thousands):
20232024202520262027ThereafterTotal
Property mortgages and other loans$265,975 $337,237 $370,000 $— $2,262,750 $— $3,235,962 
Revolving credit facility— — — — 450,000 — 450,000 
Unsecured term loans— 600,000 — — 1,000,000 50,000 1,650,000 
Senior unsecured notes— — 100,000 — — — 100,000 
Trust preferred securities— — — — — 100,000 100,000 
Financing leases3,133 3,180 3,228 3,276 3,325 200,169 216,311 
Operating leases52,220 58,068 58,207 58,347 58,358 1,334,570 1,619,770 
Estimated interest expense248,404 215,483 180,664 154,702 54,636 37,163 891,052 
Joint venture debt1,155,465 894,655 1,466,750 226,224 299,417 2,130,404 6,172,915 
Total$1,725,197 $2,108,623 $2,178,849 $442,549 $4,128,486 $3,852,306 $14,436,010 
 2018 2019 2020 2021 2022 Thereafter Total
Property mortgages and other loans$153,593
 $42,289
 $703,018
 $11,656
 $208,003
 $1,656,623
 $2,775,182
MRA and FHLB facilities90,809
 —
 —
 —
 —
 —
 90,809
Corporate obligations250,000
 —
 250,000
 —
 800,000
 1,740,000
 3,040,000
Joint venture debt-our share200,250
 717,682
 473,809
 449,740
 223,330
 2,119,481
 4,184,292
Total$694,652
 $759,971
 $1,426,827
 $461,396
 $1,231,333
 $5,516,104
 $10,090,283
We estimate that for the year ending December 31, 2023, we expect to incur $82.0 million of recurring capital expenditures on existing consolidated properties and $117.5 million of development or redevelopment expenditures on existing consolidated properties, of which $1.2 million will be funded by construction financing facilities or loan reserves. We expect our share of capital expenditures at our joint venture properties will be $263.1 million, of which $160.7 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.
As of December 31, 2017,2022, we had $156.5liquidity of $1.0 billion, comprised of $800.0 million of availability under our revolving credit facility and $214.5 million of consolidated cash on hand, inclusive of $28.6$11.2 million of marketable securities. We expect to generate positiveThis liquidity excludes $143.8 million representing our share of cash flow from operations for the foreseeable future.at unconsolidated joint venture properties. We may seek to divest of properties, or interests in properties, or debt and preferred equity investments or access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all. Management believes that these sources of liquidity, if we are able to access them, along with potential refinancing opportunities for secured and unsecured debt, will allow us to satisfy our debt and other obligations, as described above, upon maturity, if not before.
We also have investments in several real estate joint ventures with various partners who we considerare generally considered to be financially stable and who have the ability to fund a capital call when needed.stable. Most of our joint ventures are financed with non-recourse debt. We believe that property level cash flows along with unfunded committed indebtedness and proceeds from the refinancing of outstanding secured indebtedness will be sufficient to fund the capital needs of our joint venture properties.

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Cash Flows
The following summary discussion of our cash flows is based on our consolidated statements of cash flows in "Item 1. Financial Statements" and is not meant to be an all-inclusive discussion of the changes in our cash flows for the years presented below.
Cash, restricted cash, and cash equivalents were $127.9$384.1 million and $279.4$337.0 million atas of December 31, 20172022 and 2016,2021, respectively, representing a decreaseincrease of $151.5$47.1 million. The decreaseincrease was a result of the following changes in cash flows (in thousands):
 Year Ended December 31,
 2017 2016 
(Decrease)
Increase
Net cash provided by operating activities$548,373
 $634,714
 $(86,341)
Net cash (used in) provided by investing activities$(18,851) $2,122,570
 $(2,141,421)
Net cash (used in) provided by financing activities$(681,077) $(2,733,240) $2,052,163
Year Ended December 31,
20222021(Decrease)
Increase
Net cash provided by operating activities$276,088 $255,979 $20,109 
Net cash provided by investing activities$425,805 $993,581 $(567,776)
Net cash used in financing activities$(654,823)$(1,285,371)$630,548 
Our principal sourcesources of operating cash flow is related to the leasing and operating ofare the properties in our consolidated and joint venture portfolios and our debt and preferred equity portfolio. Our properties provideThese sources generate a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service, and fund quarterly dividend and distribution requirements. Our debt and preferred equity investments and joint venture investments also provide a steady stream
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Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills, and invest in existing buildings that meet our investment criteria. During the year ended December 31, 2017,2022, when compared to the year ended December 31, 2016,2021, we used cash primarily for the following investing activities (in thousands):
Acquisitions of real estate$24,080
Capital expenditures and capitalized interest76,697
Escrow cash-capital improvements/acquisition deposits/deferred purchase price(95,873)
Joint venture investments(304,793)
Distributions from joint ventures123,534
Proceeds from sales of real estate/partial interest in property(1,830,037)
Debt and preferred equity and other investments(135,029)
Increase in net cash used in investing activities$(2,141,421)
Acquisitions of real estate$88,300 
Capital expenditures and capitalized interest1,716 
Joint venture investments(95,646)
Distributions from joint ventures(628,862)
Proceeds from sales of real estate/partial interest in property(25,230)
Cash and restricted cash assumed from acquisition of real estate investment60,494 
Cash assumed from consolidation of real estate investment(9,475)
Debt and preferred equity and other investments40,927 
Decrease in net cash provided by investing activities$(567,776)
Funds spent on capital expenditures, which are comprised of building and tenant improvements, decreased from $412.0$302.5 million for the year ended December 31, 20162021 to $335.3$300.8 million for the year ended December 31, 2017. The decrease in capital expenditures relates primarily2022 due to lower costs incurred in connection with theour development and redevelopment of properties.
We generally fund our investment activity through the sale of real estate, the sale of debt and preferred equity investments, property-level financing, our credit facilities, our MRA facilities, senior unsecured notes, convertible or exchangeable securities, and construction loans. From time to time, the Company may issue common or preferred stock, or the Operating Partnership may issue common or preferred units of limited partnership interest. During the year ended December 31, 2017,2022, when compared to the year ended December 31, 2016,2021, we used cash for the following financing activities (in thousands):
Proceeds from our debt obligations$378,291 
Repayments of our debt obligations26,680 
Net distribution to noncontrolling interests53,237 
Other financing activities15,970 
Proceeds from stock options exercised and DRSPP issuance(1,031)
Repurchase of common stock190,206 
Redemption of preferred stock(11,927)
Acquisition of subsidiary interest from noncontrolling interest(29,817)
Dividends and distributions paid8,939 
Decrease in net cash used in financing activities$630,548 
Proceeds from our debt obligations$1,921,465
Repayments of our debt obligations977,665
Net distribution to noncontrolling interests(4,706)
Other financing activities(27,947)
Proceeds from stock options exercised and DRSPP issuance8,428
Proceeds from sale of common stock—
Repurchase of common stock(806,302)
Redemption of preferred stock3,024
Dividends and distributions paid(19,464)
Increase in net cash provided by financing activities$2,052,163

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Capitalization
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2017, 92,803,2992022, 64,380,082 shares of common stock and no shares of excess stock were issued and outstanding.
StockShare Repurchase Program
In August 2016, our boardBoard of directorsDirectors approved a stock$1.0 billion share repurchase planprogram under which we cancould buy up to $1.0 billion of shares of our common stock. In December 2017, our boardThe Board of directorsDirectors has since authorized an increasefive separate $500.0 million increases to the size of this plan by an additional $500 millionthe share repurchase program in the fourth quarter of our common stock,2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing itthe total program size to a total$3.5 billion.
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As of shares.
At December 31, 20172022, share repurchases, excluding the redemption of OP units, executed under the planprogram were as follows:
PeriodNumber of shares purchasedAverage price paid per shareCumulative number of shares purchased as part of the repurchase plan or programs
Maximum approximate dollar value of shares that may yet be purchased under the plan (in millions) (1)
First quarter 201763,812$103.8463,812$1,493.4
Second quarter 20172,384,323$103.402,448,135$1,246.8
Third quarter 2017951,866$101.673,400,001$1,150.0
Fourth quarter 2017 (2)
4,942,410$100.768,342,411$652.0
(1)Reflective of $1.5 billion plan maximum as of December 31, 2017.
(2)Includes 413,700 shares of common stock repurchased by the Company in December 2017 that were settled in January 2018.
At-The-Market Equity Offering Program
In June 2014, the Company, along with the Operating Partnership, entered into an ATM Program to sell an aggregate of $300.0 million of our common stock. During the year ended December 31, 2015, we sold 895,956 shares of our common stock for aggregate net proceeds of $113.4 million comprising the remaining balance of this ATM Program. The net proceeds from these offerings were contributed to the Operating Partnership in exchange for 895,956 units of limited partnership interest of the Operating Partnership.
In March 2015, the Company, along with the Operating Partnership, entered into a new ATM Program to sell an aggregate of $300.0 million of our common stock. The Company did not make any sales of its common stock under an ATM program in the years ended December 31, 2016 and December 31, 2017.
PeriodShares repurchasedAverage price paid per shareCumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 20177,865,206$107.817,865,206
Year ended 20189,187,480$102.0617,052,686
Year ended 20194,333,260$88.6921,385,946
Year ended 20208,276,032$64.3029,661,978
Year ended 20214,474,649$75.4434,136,627
Year ended 20221,971,092$76.6936,107,719
Dividend Reinvestment and Stock Purchase Plan ("DRSPP")
In February 2015,2018, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the yearyears ended December 31, 2017, 2016,2022, 2021, and 2015,2020, respectively (in(dollars in thousands):
Year Ended December 31,
202220212020
Shares of common stock issued10,839 10,387 16,181 
Dividend reinvestments/stock purchases under the DRSPP$525 $738 $1,006 
 Year Ended December 31,
 2017 2016 2015
Common Stock Shares Issued2,141
 2,687
 775,760
Dividend reinvestments/stock purchases under the DRSPP$223
 $277
 $99,555
FourthFifth Amended and Restated 2005 Stock Option and Incentive Plan
The FourthFifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's boardBoard of directorsDirectors in April 20162022 and its stockholders in June 20162022 at the Company's annual meeting of stockholders. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,00032,210,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the 2005 Plan. As of December 31, 2017, 8.32022, 6.3 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units and phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.

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2011 Outperformance Plan
In August 2011, the compensation committee of the Company's board of directors approved the general terms of the SL Green Realty Corp. 2011 Outperformance Plan, or the 2011 Outperformance Plan. Participants in the 2011 Outperformance Plan could earn, in the aggregate, up to $85.0 million of LTIP Units in the Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2011. Under the 2011 Outperformance Plan, participants were entitled to share in a "performance pool" comprised of LTIP Units with a value equal to 10% of the amount by which our total return to stockholders during the three-year period exceeded a cumulative total return to stockholders of 25%, subject to the maximum of $85.0 million of LTIP Units; provided that if maximum performance was achieved, one-third of each award could be earned at any time after the beginning of the second year and an additional one-third of each award could be earned at any time after the beginning of the third year. LTIP Units earned under the 2011 Outperformance Plan were subject to vesting requirements, with 50% of any awards earned vesting on August 31, 2014 and the remaining 50% vesting on August 31, 2015, based on continued employment with us through such dates. Participants were not entitled to distributions with respect to LTIP Units granted under the 2011 Outperformance Plan unless and until they were earned. For LTIP Units that were earned, each participant was also entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of additional LTIP Units. Thereafter, distributions are paid currently with respect to all earned LTIP Units, whether vested or unvested. In June 2014, the compensation committee determined that maximum performance had been achieved during the third year of the performance period and, accordingly, 560,908 LTIP Units, representing two-thirds of each award, were earned, subject to vesting, under the 2011 Outperformance Plan. In September 2014, the compensation committee determined that maximum performance had been achieved for the full three-year performance period and, accordingly, 280,454 LTIP units, representing the final third of each award, were earned, subject to vesting, under the 2011 Outperformance Plan.
The cost of the 2011 Outperformance Plan ($26.7 million, subject to forfeitures) was amortized into earnings through the final vesting period. We recorded no compensation expense during the year ended December 31, 2017,no compensation expense during the year ended December 31, 2016, and $4.5 million during the year ended December 31, 2015 related to the 2011 Outperformance Plan.
2014 Outperformance Plan
In August 2014, the compensation committee of the Company's board of directors approved the general terms of the SL Green Realty Corp. 2014 Outperformance Plan, or the 2014 Outperformance Plan. Participants in the 2014 Outperformance Plan could earn, in the aggregate, up to 610,000 LTIP Units in our Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2014. Under the 2014 Outperformance Plan, two-thirds of the LTIP Units were subject to performance based vesting based on the Company’s absolute total return to stockholders and one-third of the LTIP Units were subject to performance based vesting based on relative total return to stockholders compared to the constituents of the MSCI REIT Index. LTIP Units earned under the 2014 Outperformance Plan were to be subject to continued vesting requirements, with 50% of any awards earned vesting on August 31, 2017 and the remaining 50% vesting on August 31, 2018, subject to continued employment with us through such dates. Participants were not entitled to distributions with respect to LTIP Units granted under the 2014 Outperformance Plan unless and until they are earned. If LTIP Units were earned, each participant would have been entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of cash or additional LTIP Units. Thereafter, distributions were paid currently with respect to all earned LTIP Units, whether vested or unvested.
Based on our performance, none of the LTIP Units granted under the 2014 Outperformance Plan were earned pursuant to the terms of the 2014 Outperformance Plan, and all units issued were forfeited in 2017.
The cost of the 2014 Outperformance Plan ($27.9 million subject to forfeitures), based on the portion of the 2014 Outperformance Plan granted prior to termination, was amortized into earnings through December 31, 2017. We recorded compensation expense of $13.6 million, $8.4 million, and $5.9 million during the years ended December 31, 2017, 2016, and 2015, respectively, related to the 2014 Outperformance Plan.
Deferred Compensation Plan for Directors
Under our Non-Employee Director's Deferral Program, which commenced July 2004, the Company's non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees, meeting fees and annual stock grant. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The program provides that a director's phantom stock units generally will be settled in an equal number of shares of common stock upon the earlier of (i) the January 1 coincident with or the next following such director's termination of service from the Board of Directors or (ii) a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the first business day of the respective quarter. Each participating non-employee director is also credited with dividend equivalents or phantom stock units based on the dividend rate for each quarter, which are either paid in cash currently or credited to the director’s account as additional phantom stock units.

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During the year ended December 31, 2017, 12,7272022, 27,436 phantom stock units were earned and 9,5099,571 shares of common stock were issued to our boardBoard of directors.Directors. We recorded compensation expense of $2.4$2.7 million during the year ended December 31, 20172022 related to the Deferred Compensation Plan. As of December 31, 2017,2022, there were 99,853192,638 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.
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Employee Stock Purchase Plan
In 2007, the Company's boardBoard of directorsDirectors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to increase their efforts to make our business more successful by providingprovide equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase the Company's shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. The Company filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2017, 104,5972022, 191,845 shares of our common stock had been issued under the ESPP.
Market Capitalization
At December 31, 2017, borrowings under our mortgages and other loans payable, 2017 credit facility, senior unsecured notes, trust preferred securities and our share of joint venture debt represented 49.4% of our combined market capitalization of $20.4 billion (based on a common stock price of $100.93 per share, the closing price of our common stock on the NYSE on December 31, 2017). Market capitalization includes our consolidated debt, common and preferred stock and the conversion of all units of limited partnership interest in the Operating Partnership, and our share of joint venture debt.
Indebtedness
The table below summarizes our consolidated mortgages and other loans payable, 20172021 credit facility, 2022 term loan, senior unsecured notes and trust preferred securities outstanding at as of December 31, 20172022 and 2016,2021, (amounts in thousands).
December 31,
Debt Summary:20222021
Balance
Fixed rate$2,695,814$1,974,324
Variable rate—hedged2,320,0001,300,000
Total fixed rate5,015,8143,274,324
Total variable rate520,148801,051
Total debt$5,535,962$4,075,375
Debt, preferred equity, and other investments subject to variable rate144,056294,970
Net exposure to variable rate debt376,092506,081
Percent of Total Debt:
Fixed rate90.6 %80.3 %
Variable rate (1)
9.4 %19.7 %
Total100.0 %100.0 %
Effective Interest Rate for the Year:
Fixed rate3.60 %3.14 %
Variable rate3.23 %2.11 %
Effective interest rate3.55 %3.02 %
 December 31,
Debt Summary:2017 2016
Balance   
Fixed rate$3,805,165
 $4,094,390
Variable rate—hedged500,000
 1,357,694
Total fixed rate4,305,165
 5,452,084
Total variable rate1,605,431
 1,105,585
Total debt$5,910,596
 $6,557,669
    
Debt, preferred equity, and other investments subject to variable rate1,325,166
 1,359,744
Net exposure to variable rate debt280,265
 (254,159)
    
Percent of Total Debt:
   
Fixed rate72.8% 83.1%
Variable rate27.2% 16.9%
Total100.0% 100.0%
Effective Interest Rate for the Year:   
Fixed rate4.31% 4.35%
Variable rate2.76% 2.10%
Effective interest rate4.00% 3.82%
(1)    Inclusive of the mitigating effect of our debt, preferred equity, and other investments subject to variable rates, the percent of total debt of our net exposure to variable rate debt was 7.0% and 13.4% as of December 31, 2022 and December 31, 2021, respectively.
The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (1.56%(4.39% and 0.77% at0.10% as of December 31, 20172022 and 2016,2021, respectively), and adjusted Term SOFR (4.30% and 0.05% as of December 31, 2022 and 2021, respectively). Our consolidated debt atas of December 31, 20172022 had a weighted average term to maturity of 5.383.76 years.

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Certain of our debt and equity investments and other investments, with a carrying valuevalues of $1.3 billion at$144.1 million as of December 31, 2017,2022 and $295.0 million as of December 31, 2021, are variable rate investments, which mitigate our exposure to interest rate changes on our unhedged variable rate debt. Inclusive of the mitigating effect of these investments, the net ratio of our variable rate debt to total debt was 7.0% and 13.4% as of December 31, 2022 and 2021, respectively.
Mortgage Financing
As of December 31, 2017,2022, our total mortgage debt (excluding our share of joint venture mortgage debt of $4.2$6.2 billion) consisted of $2.4$3.2 billion of fixed rate debt, including swapped variable rate debt, with an effective weighted average interest rate of 4.78%4.44% and $0.5$0.1 billion of variable rate debt with an effective weighted average interest rate of 3.28%3.72%.
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Corporate Indebtedness
20172021 Credit Facility
In November 2017,December 2021, we entered into an amendment to theamended and restated credit facility, referred to as the 2021 credit facility, that was previously amended by the Company in November 2017, or the 2017 credit facility, thatand was originally entered into by the Company in November 2012, or the 2012 credit facility. As of December 31, 2017,2022, the 20172021 credit facility consisted of a $1.5$1.25 billion revolving credit facility, a $1.3$1.05 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of March 31, 2022, March 31, 2023,May 15, 2026, May 15, 2027, and November 21, 2024, respectively. The revolving credit facility has two six-month as-of-right extension options to March 31, 2023.May 15, 2027. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.
As of December 31, 2017,2022, the 20172021 credit facility bore interest at a spread over 30-day LIBORadjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) 82.572.5 basis points to 155140 basis points for loans under the revolving credit facility, (ii) 9080 basis points to 175160 basis points for loans under Term Loan A, and (iii) 15085 basis points to 245165 basis points for loans under Term Loan B, in each case based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category.
AtAs of December 31, 2017,2022, the applicable spread over adjusted Term SOFR plus 10 basis points was 100105 basis points for the revolving credit facility, 110120 basis points for Term Loan A, and 165125 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of December 31, 2017,2022, the facility fee was 2025 basis points.
As of December 31, 2017,2022, we had $11.8$2.0 million of outstanding letters of credit, $40.0$450.0 million drawn under the revolving credit facility and $1.5$1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $1.4 billion$800.0 million under the 20172021 credit facility. AtAs of December 31, 20172022 and December 31, 2016,2021, the revolving credit facility had a carrying value of $30.3$443.2 million and $(6.3)$381.3 million, respectively, net of deferred financing costs. TheAs of December 31, 2016 carrying value represents deferred financing costs and is presented within other liabilities. At December 31, 20172022 and December 31, 2016,2021, the term loan facilities had a carrying value of $1.5$1.2 billion and $1.2 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2017 credit facility. ROP is a guarantor under the 20172021 credit facility.
The 20172021 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).
2022 Term Loan
In October 2022, we entered into a term loan agreement, referred to as the 2022 term loan. As of December 31, 2022, the 2022 term loan consisted of a $400.0 million term loan with a maturity date of October 6, 2023. The 2022 term loan has one six-month as-of-right extension option to April 6, 2024. We also have an option, subject to customary conditions, to increase the capacity of the 2022 term loan to $500.0 million on or before January 7, 2023 without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions. In January 2023, the 2022 term loan was increased by $25.0 million to $425.0 million.
As of December 31, 2022, the 2022 term loan bore interest at a spread over adjusted Term SOFR plus 10 basis points, ranging from 100 basis points to 180 basis points, in each case based on the credit rating assigned to the senior unsecured long-term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category. As of December 31, 2022, the applicable spread over adjusted Term SOFR plus 10 basis points was 140 basis points. As of December 31, 2022, the 2022 term loan had a carrying value of $398.2 million, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2022 term loan.
The 2022 term loan includes certain restrictions and covenants (see Restrictive Covenants below).
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Federal Home Loan Bank of New York ("FHLB") Facility
TheAs of December 31, 2020, the Company’s wholly-owned subsidiary, BelmontTiconderoga Insurance Company, or Belmont,Ticonderoga, a New YorkVermont licensed captive insurance company, was a member of the Federal Home Loan Bank of New York, or FHLBNY. In January 2017, allAs a member, Ticonderoga was able to borrow funds borrowed from the FHLBNY in the form of secured advances that bore interest at a floating rate. As a result of a Final Ruling from the Federal Housing Finance Authority, the regulator of the Federal Home Loan Bank system, all captive insurance company memberships were terminated as of February 2021. As such, all advances to Ticonderoga were repaid and Belmont's membership was terminated in February 2017.prior to such termination.
Master Repurchase AgreementsAgreement
The Company has entered into twoa Master Repurchase Agreements,Agreement, or MRAs,MRA, known as the 2016 MRA and 2017 MRA, which provideprovided us with the ability to sell certain debtmortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managingIn April 2018, we increased the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facilities permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to recollateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity through the 2017 credit facility, as defined above.
In June 2017, we entered into the 2017 MRA, with a maximum facility capacity offrom $300.0 million to $400.0 million. The facility bearsbore interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate and has an initial one year

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term, with two one year extension options. At December 31, 2017, the facility had a carrying value of $90.1 million, net of deferred financing costs.
In July 2016, we entered into a restated 2016 MRA, with a maximum facility capacity of $300.0 million.advanced rate. The facility bears interest ranging from 225matured in June 2022 and 400 basis points over 30-day LIBOR depending on the pledged collateral and has an initial two-year term, with a one year extension option. Since December 6, 2015, we have been required to pay monthly in arrears a 25 basis point fee on the excess of $150.0 million over the average daily balance during the period when the average daily balance is less than $150.0 million. At December 31, 2017, the facility had a carrying value of $(1.2) million, representing deferred financing costs presented within other liabilities.
At December 31, 2017 and 2016, the gross book value of the properties and debt and preferred equity investments collateralizing the mortgages and other loans payable,was not including assets held for sale, was approximately $4.8 billion and $6.0 billion, respectively.extended.
Senior Unsecured Notes
The following table sets forth our senior unsecured notes and other related disclosures as of December 31, 20172022 and 2016,2021, respectively, by scheduled maturity date (dollars in thousands):
IssuanceDecember 31,
2022
Unpaid
Principal
Balance		December 31,
2022
Accreted
Balance		December 31,
2021
Accreted
Balance		Interest Rate (1)Initial Term
(in Years)		Maturity Date
December 17, 2015 (2)
$100,000 $100,000 $100,000 4.27 %10December 2025
October 5, 2017 (3)
— — 499,913 3.25 %5October 2022
November 15, 2012— — 301,002 4.50 %10December 2022
$100,000 $100,000 $900,915 
Deferred financing costs, net(308)(1,607)
$100,000 $99,692 $899,308 
Issuance 
December 31,
2017
Unpaid
Principal
Balance
 
December 31,
2017
Accreted
Balance
 
December 31,
2016
Accreted
Balance
 
Coupon
Rate (1)
 
Initial Term
(in Years)
 Maturity Date
August 5, 2011 (2)
 $250,000
 $249,953
 $249,880
 5.00% 7 August 2018
March 16, 2010 (2)
 250,000
 250,000
 250,000
 7.75% 10 March 2020
October 5, 2017 (3)
 500,000
 499,489
 —
 3.25% 5 October 2022
November 15, 2012 (4)
 300,000
 305,163
 200,000
 4.50% 10 December 2022
December 17, 2015 (2)
 100,000
 100,000
 100,000
 4.27% 10 December 2025
October 12, 2010 (5)
 —
 —
 334,077
      
  $1,400,000
 $1,404,605
 $1,133,957
      
Deferred financing costs, net   (8,666) (5,642)      
  $1,400,000
 $1,395,939
 $1,128,315
      
(1)Interest rate as of December 31, 2022, taking into account interest rate hedges in effect during the period.
(1)Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.
(2)Issued by the Company, the Operating Partnership and ROP, as co-obligors.
(3)Issued by the Operating Partnership with the Company and ROP as guarantors.
(4)In October 2017, the Company, the Operating Partnership and ROP, as co-obligors, issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334%.
(5)In accordance with the terms of the indenture, the notes became exchangeable commencing September 14, 2017 and the Operating Partnership elected to settle exchanges in cash. In October 2017, all note holders elected to exchange the notes and the notes were repaid for $350.8 million, excluding accrued interest based on the applicable exchange rate.
(2)Issued by the Company and the Operating Partnership as co-obligors.
(3)Issued by the Operating Partnership with the Company as the guarantor.

Restrictive Covenants
The terms of the 20172021 credit facility, 2022 term loan and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that we will not, during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of December 31, 20172022 and 2016,2021, we were in compliance with all such covenants.

60

Junior Subordinated Deferrable Interest Debentures
In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments. The Trust preferred securities are redeemable at the option of the Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense.
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Interest Rate Risk
We are exposed to changes in interest rates primarily from our variable rate debt. Our exposure to interest rate fluctuations are managed through either the use of interest rate derivative instruments and/or through our variable rate debt and preferred equity investments. ABased on the debt outstanding as of December 31, 2022, a hypothetical 100 basis point increase in interest rates along the entirefloating rate interest rate curve for 2017 would increase our consolidated annual interest cost, net of interest income from variable rate debt and preferred equity investments, by $2.7$3.5 million and would increase our share of joint venture annual interest cost by $17.2$6.5 million. AtAs of December 31, 2017, 61.5%2022, $144.1 million, or 23.1%, of our $2.1$0.6 billion debt and preferred equity portfolio iswas indexed to LIBOR.
We recognize most derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through income. If a derivative is considered a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings.
Our long-term debt of $4.3$5.0 billion bears interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates. Our variable rate debt and variable rate joint venture debt as of December 31, 20172022 bore interest based on a spread to LIBOR of LIBOR plus 100145 basis points to LIBOR plus 415340 basis points.
Contractual Obligations
The combined aggregate principal maturitiespoints, and adjusted Term SOFR of mortgages and other loans payable, the 2017 credit facility, senior unsecured notes (net of discount), trust preferred securities, our share of joint venture debt, including as-of-right extension options and put options, estimated interest expense, and our obligations under our capital lease and ground leases, as of December 31, 2017 are as follows (in thousands):
 2018 2019 2020 2021 2022 Thereafter Total
Property mortgages and other loans$153,593
 $42,289
 $703,018
 $11,656
 $208,003
 $1,656,623
 $2,775,182
MRA facilities90,809
 —
 —
 —
 —
 —
 90,809
Revolving credit facility—
 —
 —
 —
 —
 40,000
 40,000
Unsecured term loans—
 —
 —
 —
 —
 1,500,000
 1,500,000
Senior unsecured notes250,000
 —
 250,000
 —
 800,000
 100,000
 1,400,000
Trust preferred securities—
 —
 —
 —
 —
 100,000
 100,000
Capital lease2,387
 2,411
 2,620
 2,794
 2,794
 819,894
 832,900
Ground leases31,049
 31,066
 31,436
 31,628
 29,472
 703,254
 857,905
Estimated interest expense226,815
 218,019
 184,376
 163,648
 155,398
 281,694
 1,229,950
Joint venture debt200,250
 717,682
 473,809
 449,740
 223,330
 2,119,481
 4,184,292
Total$954,903
 $1,011,467
 $1,645,259
 $659,466
 $1,418,997
 $7,320,946
 $13,011,038
115 basis points to 577 basis points.
Off-Balance Sheet Arrangements
We have off-balance sheet investments, including joint ventures and debt and preferred equity investments. These investments all have varying ownership structures. Substantially allA majority of our joint venture arrangements are accounted for under the equity method of accounting as we have the ability to exercise significant influence, but not control, over the operating and financial decisions of these joint venture arrangements. Our off-balance sheet arrangements are discussed in Note 5, "Debt and Preferred Equity Investments" and Note 6, "Investments in Unconsolidated Joint Ventures" in the accompanying consolidated financial statements.

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Capital Expenditures
We estimate that for the year ending December 31, 2018, we expect to incur $147.3 million of recurring capital expenditures and $108.8 million of development or redevelopment expenditures, net of loan reserves, (including tenant improvements and leasing commissions) on existing consolidated properties, and our share of capital expenditures at our joint venture properties, net of loan reserves, will be $502.7 million. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. We expect to fund these capital expenditures with operating cash flow, existing liquidity, or incremental borrowings. We expect our capital needs over the next twelve months and thereafter will be met through a combination of cash on hand, net cash provided by operations, potential asset sales, borrowings or additional equity or debt issuances.
Dividends/Distributions
We expect to pay dividends to our stockholders based on the distributions we receive from our Operating Partnership primarily from property revenues net of operating expenses or, if necessary, from working capital.Partnership.
To maintain our qualification as a REIT, we must pay annual dividends to our stockholders of at least 90% of our REIT taxable income, determined before taking into consideration the dividends paid deduction and net capital gains. We intend
Any dividend we pay may be in the form of cash, stock, or a combination thereof, subject to continueIRS limitations on the use of stock for dividends. Additionally, if our REIT taxable income in a particular year exceeds the amount of cash dividends we pay in that year, we may pay stock dividends in order to pay regular quarterly dividends tomaintain our stockholders. Based on our current annual dividend rate of $3.25 per share, we would pay $316.1 million in dividends to our common stockholders on an annual basis. REIT status and avoid certain REIT-level taxes.
Before we pay any cash dividend, whether for Federal income tax purposes or otherwise, which would only be paid out of available cash to the extent permitted under the 20172021 credit facility, 2022 term loan and senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.
Related Party Transactions
Cleaning/ Security/ Messenger and Restoration Services
Alliance Building Services, or Alliance, and its affiliates, arewhich provide services to certain properties owned by us, were previously partially owned by Gary Green, a son of Stephen L. Green, who serves as a member and as the chairman emeritus of our boardBoard of directors, and provide services to certain properties owned by us.Directors. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide cleaning, extermination, security, messenger, and restoration services, respectively. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.
Income earned from the profit participation, which is included in otherOther income on the consolidated statements of operations, was $3.9$1.4 million, $3.5$1.7 million and $3.8$1.4 million for the years ended December 31, 2017, 20162022, 2021 and 2015,2020, respectively.
We also recorded expenses, inclusive of capitalized expenses, of $22.6$8.6 million, $23.4$14.0 million and $21.3$13.3 million for the years ended December 31, 2017, 20162022, 2021 and 2015,2020, respectively, for these services (excluding services provided directly to tenants).
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Management Fees
S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. We received management fees from this entity of $0.5$0.6 million, $0.7 million and $0.5$0.6 million for the years ended December 31, 2017, 2016,2022, 2021 and 20152020 respectively.
One Vanderbilt Avenue Investment
In December 2016, we entered into agreements with entities owned and controlled by our Chairman and CEO, Marc Holliday, and our President, Andrew Mathias, pursuant to which they agreed to make an investment in our One Vanderbilt project (inclusive of the property and Summit One Vanderbilt) at the appraised fair market value for the interests acquired. This investment entitles these entities to receive approximately 1.50% - 1.80% and 1.00% - 1.20%, respectively, of any profits realized by the Company from its One Vanderbilt project in excess of the Company’s capital contributions. The entities have no right to any return of capital. Accordingly, subject to previously disclosed repurchase rights, these interests will have no value and will not entitle these entities to any amounts (other than limited distributions to cover tax liabilities incurred) unless and until the Company has received distributions from the One Vanderbilt project in excess of the Company’s aggregate investment in the project. In the event that the Company does not realize a profit on its investment in the project (or would not realize a profit based on the value at the time the interests are repurchased), the entities owned and controlled by Messrs. Holliday and Mathias will lose the entire amount of their investment. The entities owned and controlled by Messrs. Holliday and Mathias paid $1.4 million and $1.0 million, respectively, which equalequaled the fair market value of the interests acquired as of the date the investment agreements were entered into as determined by an independent third party appraisal that we obtained.
Messrs. Holliday and Mathias cannot monetizehave the right to tender their interests until afterin the project upon stabilization of the property (50% within three years after stabilization and 100% three years or more after stabilization). In addition, the agreement calls for us to repurchase these interests in the event of a sale of One Vanderbilt or a transactional change of control of the Company. We also have the right to

62

repurchase these interests on the seven-year7-year anniversary of the stabilization of the project or upon the occurrence of certain separation events prior to the stabilization of the project relating to each of Messrs. Holliday’s and Mathias’s continued service with us. The price paid upon monetizationa tender of the interests will equal the liquidation value of the interests at the time, with the value of One Vanderbilt being based on itsthe project's sale price, if applicable, or fair market value as determined by an independent third party appraiser. In 2022, stabilization of the property (but not Summit One Vanderbilt) was achieved. Therefore, Messrs. Holiday and Mathias exercised their rights to tender 50% of their interests in the property (but not Summit One Vanderbilt) for liquidation values of $17.9 million and $11.9 million, respectively, which were paid in July 2022.
One Vanderbilt Avenue Leases
In November 2018, we entered into a lease agreement with the One Vanderbilt Avenue joint venture covering certain floors at the property. In March 2021, the lease commenced and we relocated our corporate headquarters to the leased space. For the year ended December 31, 2022 and 2021 we recorded $3.0 million and $2.4 million, respectively, of rent expense under the lease. Additionally, in June 2021, we, through a wholly-owned subsidiary, entered into a lease agreement with the One Vanderbilt Avenue joint venture for Summit One Vanderbilt, which commenced operations in October 2021. For the year ended December 31, 2022, we recorded $33.0 million of rent expense under the lease, including percentage rent, of which $22.8 million was recognized as income as a component of Equity in net loss from unconsolidated joint ventures in our consolidated statements of operations. For the year ended December 31, 2021, we recorded $5.0 million of rent expense under the lease with no percentage rent. See Note 20, "Commitments and Contingencies."
Insurance
We maintain “all-risk” property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism, excluding nuclear, biological, chemical, and radiological terrorism ("NBCR")), within threetwo property insurance programs and liability insurance. Separate property and liability coverage may be purchased on a stand-alone basis for certain assets, such as the development projects. Additionally, one of One Vanderbilt. Additionally, our captive insurance company,companies, Belmont Insurance Company, or Belmont, provides coverage for NBCR terrorist acts above a specified trigger, although iftrigger. Belmont's retention is reinsured by our other captive insurance company, Ticonderoga Insurance Company ("Ticonderoga"). If Belmont isor Ticonderoga are required to pay a claim under our insurance policies, we would ultimately record the loss to the extent of Belmont's required payment.payments. However, there is no assurance that in the future we will be able to procure coverage at a reasonable cost. Further, if we experience losses that are uninsured or that exceed policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. Additionally, our debt instruments contain customary covenants requiring us to maintain insurance and we could default under our debt our instruments if the cost and/or availability of certain types of insurance make it impractical or impossible to comply with such covenants relating to insurance. Belmont providesand Ticonderoga provide coverage solely on properties owned by the Company or its affiliates.
51

Furthermore, with respect to certain of our properties, including properties held by joint ventures or subject to triple net leases, insurance coverage is obtained by a third-party and we do not control the coverage. While we may have agreements with such third parties to maintain adequate coverage and we monitor these policies, such coverage ultimately may not be maintained or adequately cover our risk of loss.
Funds from Operations
FFO is a widely recognized non-GAAP financial measure of REIT performance. The Company computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended in December 2018, defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), excluding gains (or losses) from sales of properties , and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based bonusescompensation for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and extraordinary items,real estate related impairment charges, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, and interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including our ability to make cash distributions.

63

FFO for the years ended December 31, 2017, 2016,2022, 2021, and 20152020 are as follows (in thousands):
Year Ended December 31,
202220212020
Net (loss) income attributable to SL Green common stockholders$(93,024)$434,804 $356,105 
Add:
Depreciation and amortization215,306 216,869 313,668 
Joint venture depreciation and noncontrolling interest adjustments252,893 249,087 205,869 
Net (loss) income attributable to noncontrolling interests(4,672)23,573 34,956 
Less:
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate(131)(32,757)2,961 
Depreciable real estate reserves and impairments(6,313)(23,794)(60,454)
(Loss) gain on sale of real estate, net(84,485)287,417 215,506 
Purchase price and other fair value adjustments— 209,443 187,522 
Depreciation on non-rental real estate assets2,605 2,790 2,338 
Funds from Operations attributable to SL Green common stockholders and unit holders$458,827 $481,234 $562,725 
Cash flows provided by operating activities$276,088 $255,979 $554,236 
Cash flows provided by investing activities$425,805 $993,581 $1,056,430 
Cash flows used in financing activities$(654,823)$(1,285,371)$(1,479,301)
 Year Ended December 31,
 2017 2016 2015
Net income attributable to SL Green common stockholders$86,424
 $234,946
 $269,132
Add:     
Depreciation and amortization403,320
 821,041
 560,887
Joint venture depreciation and noncontrolling interest adjustments102,334
 69,853
 34,226
Net (loss) income attributable to noncontrolling interests(11,706) 17,780
 26,408
Less:     
Gain on sale of real estate and discontinued operations73,241
 238,116
 190,096
Equity in net gain on sale of interest in unconsolidated joint venture/real estate16,166
 44,009
 15,844
Purchase price fair value adjustment—
 —
 40,078
Depreciable real estate reserves(178,520) (10,387) (19,226)
Depreciation on non-rental real estate assets2,191
 2,027
 2,036
Funds from Operations attributable to SL Green common stockholders and noncontrolling interests$667,294
 $869,855
 $661,825
Cash flows provided by operating activities$548,373
 $634,714
 $526,484
Cash flows (used in) provided by investing activities$(18,851) $2,122,570
 $(2,265,911)
Cash flows (used in) provided by financing activities$(681,077) $(2,733,240) $1,713,417
Inflation
Substantially all of our office leases provide for separate real estate tax and operating expense escalations as well as operating expense recoveries based on increases in the Consumer Price IndexCPI or other measures such as porters' wage. In addition, many of the leases provide for fixed base rent increases. We believe that inflationary increases will be at least partially offset by the contractual rent increases and expense escalations described above.
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Climate Change
With our roots in New York City, we are at the center of one of the world's most ambitious climate legislative environments. Through the Climate Leadership and Community Protection Act signed into law in 2019, New York State mandated the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040. New York City enacted Local Law 97 (LL97) in 2019 under the Climate Mobilization Act, setting carbon caps for large buildings starting in 2024 as part of a broader commitment to reducing greenhouse gas emissions by 40% by 2030, and by 80% by 2050. As our portfolio is principally located in Manhattan, these policy elements represent the most material sources of transition risks relevant to our business. We do not anticipate any material financial impact on our portfolio in the first compliance period of 2024 to 2029.
While SL Green's portfolio has not been substantially affected by climate-related events to New York City real estate, such as Hurricane Sandy in 2012, we have continued to develop our approach to physical climate risk assessment, management, and mitigation in order to manage and minimize the impacts of future events. We have conducted climate-related scenario analyses as part of our first Task Force on Climate-related Financial Disclosures ("TCFD") report published in 2021, which we made available on our website. The Company is also committed to setting near-term Scope 1 and Scope 2 science-based emissions reduction targets with the SBTi, which are currently in the validation process. Our goal is to reduce emissions for our operationally controlled portfolio to align it with the 1.5 degree Celsius climate scenario.
We consider the successful management and mitigation of climate-related risks across our portfolio as an opportunity to raise the financial value of our buildings and pass on these benefits to our stakeholders, tenants, and investors. We believe our investments over the last 20 years in energy efficiency improvements and greenhouse gas emissions reductions have minimized the impact of climate legislation on our portfolio and our active development pipeline sets the standard for sustainable new construction and responsible community engagement. We leverage years of operational excellence to incorporate innovative design and technological solutions. We also utilize recommendations from our portfolio-wide New York State Energy Research and Development Authority ("NYSERDA") emissions reduction study to help lower emissions from tenant spaces and base building operations. Together, these measures are expected to minimize our vulnerability to the physical risks of climate change, as well as transition risks covering policy and legal, market, technology, and reputational factors.
Accounting Standards Updates
The Accounting Standards Updates are discussed in Note 2, "Significant Accounting Policies - Accounting Standards Updates" in the accompanying consolidated financial statements.
Forward-Looking Information
This report 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 report that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate.
Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, 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 report are subject to a number of risks and uncertainties 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. These risks and uncertainties include:
•the effect of general economic, business and financial conditions, and their effect on the New York City real estate market in particular;
•dependence upon certain geographic markets;
•risks of real estate acquisitions, dispositions, developmentsdevelopment and redevelopment, including the cost of construction delays and cost overruns;

64

•risks relating to debt and preferred equity investments;
•availability and creditworthiness of prospective tenants and borrowers;
53

•bankruptcy or insolvency of a major tenant or a significant number of smaller tenants;tenants or borrowers;
•adverse changes in the real estate markets, including reduced demand for office space, increasing vacancy, and increasing availability of sublease space;
•availability of capital (debt and equity);
•unanticipated increases in financing and other costs, including a rise in interest rates;
•our ability to comply with financial covenants in our debt instruments;
•our ability to maintain itsour status as a REIT;
•risks of investing through joint venture structures, including the fulfillment by our partners of their financial obligations;
•the threat of terrorist attacks;
•our ability to obtain adequate insurance coverage at a reasonable cost and the potential for losses in excess of our insurance coverage, including as a result of environmental contamination; and
•legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.
Other factors and risks to our business, many of which are beyond our control, are described in other sections of this report and in our other filings with the SEC. WeExcept to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

54
65

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations—Market Rate Risk" for additional information regarding our exposure to interest rate fluctuations.
The table below presents the principal cash flows based upon maturity dates of our debt obligations and debt and preferred equity investments and the weighted-average interest rates by expected maturity dates, including as-of-right extension options, as of December 31, 20172022 (in thousands):
Long-Term Debt
Debt and Preferred
Equity Investments (1)
Fixed
Rate		Average
Interest
Rate		Variable
Rate		Average
Interest
Rate		AmountWeighted
Yield
2023$255,827 4.37 %$10,148 6.02 %$446,532 6.44 %
2024877,237 4.39 %60,000 5.12 %6,890 — %
2025470,000 4.31 %— 4.36 %30,000 8.52 %
2026— 4.26 %— 2.15 %— — %
20273,262,750 4.81 %450,000 — %119,858 6.55 %
Thereafter150,000 4.84 %— — %20,000 8.11 %
Total$5,015,814 4.34 %$520,148 5.12 %$623,280 6.54 %
Fair Value$4,784,691 $519,669 
 Long-Term Debt 
Debt and Preferred
Equity Investments (1)
 
 
Fixed
Rate
 
Average
Interest
Rate
 
Variable
Rate
 
Average
Interest
Rate
 Amount 
Weighted
Yield
 
2018$303,971
 4.45% $190,431
 3.12% $315,802
 10.44%
(2) 
201942,289
 4.42% —
 3.42% 456,524
 9.29% 
2020678,018
 4.11% 275,000
 3.49% 156,072
 9.83% 
202111,656
 3.99% —
 3.49% 532,558
 8.71% 
20221,008,003
 4.00% —
 3.63% 527,204
 9.24% 
Thereafter2,256,623
 4.26% 1,140,000
 4.14% 125,881
 8.31% 
Total$4,300,560
 4.22% $1,605,431
 3.42% $2,114,041
 9.13%
(2) 
Fair Value$4,421,866
   $1,612,224
       
(1)Our debt and preferred equity investments had an estimated fair value ranging between $0.6 billion and $0.6 billion as of December 31, 2022.
(1)Our debt and preferred equity investments had an estimated fair value ranging between $2.1 billion and $2.3 billion at December 31, 2017.
(2)Excludes loans secured by the leasehold interest in 2 Herald Square which were in maturity default at the time of acquisition in April and May 2017. The loans were put on non-accrual in August 2017 when one of the investors in the borrower did not repay the loan notwithstanding the approval to do so rendered by a court in a litigation separate from the foreclosure. No impairment was recorded as the Company believes that the fair value of the property exceeds the carrying amount of the loans. The loans had an outstanding balance including accrued interest of $259.3 million at the time that they were put on non accrual status.
The table below presents the principal cash flows based upon maturity dates of our share of our joint venture debt obligations and the weighted-average interest rates by expected maturity dates as of December 31, 20172022 (in thousands):
 Long Term Debt
 
Fixed
Rate
 
Average
Interest
Rate
 
Variable
Rate
 
Average
Interest
Rate
2018$12,491
 4.04% $187,759
 3.74%
2019108,642
 4.04% 609,040
 4.21%
202013,584
 4.04% 460,225
 4.63%
202114,150
 4.04% 435,590
 4.93%
2022223,299
 3.99% 31
 5.00%
Thereafter2,009,097
 3.88% 110,384
 4.63%
Total$2,381,263
 4.03% $1,803,029
 4.25%
Fair Value$2,344,362
   $1,827,427
  

Long Term Debt
Fixed
Rate		Average
Interest
Rate		Variable
Rate		Average
Interest
Rate
2023$634,563 4.04 %$520,902 8.51 %
2024738,175 3.83 %156,480 9.15 %
20251,449,386 3.57 %17,364 6.42 %
2026226,207 3.18 %17 6.00 %
2027299,400 3.14 %17 6.00 %
Thereafter2,130,301 2.86 %103 6.02 %
Total$5,478,032 3.68 %$694,883 8.78 %
Fair Value$3,552,398 $1,987,218  
66
55



The table below lists our consolidated derivative instruments, which are hedging variable rate debt, and their related fair values as of December 31, 20172022 (in thousands):
Asset
Hedged
 
Benchmark
Rate
 
Notional
Value
 
Strike
Rate
 
Effective
Date
 
Expiration
Date
 
Fair
Value
Asset
Hedged		Benchmark
Rate		Notional
Value		Strike
Rate		Effective
Date		Expiration
Date		Fair
Value
Interest Rate SwapCredit Facility LIBOR $200,000
 1.131% July 2016 July 2023 $10,747
Interest Rate SwapCredit FacilityLIBOR$100,000 0.212 %January 2021January 2023$333 
Interest Rate SwapCredit Facility LIBOR 100,000
 1.161% July 2016 July 2023 5,217
Interest Rate SwapCredit FacilitySOFR400,000 0.184 %January 2022February 20231,453 
Interest Rate SwapMortgage LIBOR 21,394
 12.000% January 2017 January 2019 167
Interest Rate SwapCredit FacilitySOFR50,000 0.633 %February 2022February 2023158 
Interest Rate CapMortgage LIBOR 137,500
 4.000% September 2017 September 2019 2
Interest Rate CapMortgageSOFR370,000 3.250 %December 2022June 20232,471 
Interest Rate CapInterest Rate CapMortgageSOFR370,000 3.250 %December 2022June 2023(2,465)
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR100,000 1.163 %November 2021July 20232,133 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR200,000 1.133 %November 2021July 20234,300 
Interest Rate CapInterest Rate CapMortgageLIBOR600,000 4.080 %September 2022September 2023(3,341)
Interest Rate CapInterest Rate CapMortgageLIBOR50,000 3.500 %October 2022September 2023505 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR200,000 4.739 %November 2022November 2023104 
Interest Rate CapInterest Rate CapMortgageSOFR196,717 3.500 %November 2022November 20232,232 
Interest Rate CapInterest Rate CapMortgageSOFR196,717 3.500 %November 2022November 2023(2,225)
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR150,000 2.700 %December 2021January 20243,249 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR200,000 4.590 %November 2022January 2024593 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR200,000 4.511 %November 2022January 2024750 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR150,000 2.721 %December 2021January 20265,848 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR200,000 2.762 %December 2021January 20267,601 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR100,000 3.003 %February 2023February 20273,264 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR100,000 2.833 %February 2023February 20273,888 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR50,000 2.563 %February 2023February 20272,441 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR200,000 2.691 %February 2023February 20278,823 
Interest Rate SwapInterest Rate SwapCredit FacilitySOFR300,000 2.966 %July 2023May 20277,514 
Interest Rate SwapCredit Facility LIBOR 100,000
 1.928% December 2017 November 2020 288
Interest Rate SwapMortgageSOFR370,000 3.888 %November 2022June 2027(1,900)
Interest Rate SwapCredit Facility LIBOR 100,000
 1.934% December 2017 November 2020 271
Interest Rate SwapCredit FacilitySOFR100,000 3.756 %January 2023January 2028(211)
Total Consolidated Hedges     $16,692
Total Consolidated Hedges$47,518 
In addition to these derivative instruments, some of our joint venture loan agreements require the joint venture to purchase interest rate caps on its debt. All such interest rate caps represented in aggregate an asset of $0.1$61.5 million atin the aggregate as of December 31, 2017.2022. We also swapped certain floating rate debt at some of our joint ventures. These swaps represented in aggregate an asset of $8.8$12.6 million atin the aggregate as of December 31, 2017.2022.

Asset
Hedged		Benchmark
Rate		Notional
Value		Strike
Rate		Effective
Date		Expiration
Date		Fair
Value
Interest Rate CapMortgageLIBOR$23,000 4.750 %January 2021January 2023$— 
Interest Rate CapMortgageLIBOR220,000 4.000 %February 2022February 202393 
Interest Rate CapMortgageLIBOR510,000 3.000 %December 2021June 20234,220 
Interest Rate CapMortgageSOFR267,000 4.000 %July 2022August 20231,289 
Interest Rate CapMortgageSOFR400,000 3.500 %September 2022September 20233,839 
Interest Rate CapMortgageLIBOR1,075,000 4.080 %September 2022September 20236,004 
Interest Rate CapMortgageLIBOR125,000 4.080 %September 2022September 2023698 
Interest Rate CapMortgageSOFR118,670 0.490 %February 2022May 202422,669 
Interest Rate CapMortgageSOFR118,670 0.490 %February 2022May 202422,652 
Interest Rate SwapMortgageSOFR177,000 1.669 %December 2022February 202612,576 
Total Unconsolidated Hedges$74,040 
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ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to Financial Statements and Schedules

FINANCIAL STATEMENTS OF SL GREEN REALTY CORP.
Report of Independent Registered Public Accounting Firm
(PCAOB ID: 42)
6958
Consolidated Balance Sheets as of December 31, 20172022 and 2016
2021
7060
Consolidated Statements of Operations for the years ended December 31, 2017, 20162022, 2021 and 20152020
7262
Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 20162022, 2021 and 20152020
7463
Consolidated Statements of Equity for the years ended December 31, 2017, 20162022, 2021 and 20152020
7564
Consolidated Statements of Cash Flows for the years ended December 31, 2017, 20162022, 2021 and 20152020
7766
FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P.
Report of Independent Registered Public Accounting Firm
(PCAOB ID: 42)
8069
Consolidated Balance Sheets as of December 31, 20172022 and 20162021
8171
Consolidated Statements of Operations for the years ended December 31, 2017, 20162022, 2021 and 20152020
8373
Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 20162022, 2021 and 20152020
8574
Consolidated Statements of Capital for the years ended December 31, 2017, 20162022, 2021 and 20152020
8675
Consolidated Statements of Cash Flows for the years ended December 31, 2017, 20162022, 2021 and 20152020
8776
Notes to Consolidated Financial Statements
9079
Schedules
Schedule II-Valuation and Qualifying Accounts for the years ended December 31, 2017, 2016 and 2015
140
Schedule III- Real Estate and Accumulated Depreciation as of December 31, 2017
2022
141126
All other schedules are omitted because they are not required or the required information is shown in the financial statements or notes thereto.


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Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of SL Green Realty Corp.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of SL Green Realty Corp. (the Company) as of December 31, 20172022 and 2016,2021, the related consolidated statements of operations, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2017,2022, and the related notes and financial statement schedulesschedule listed in the Index at Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 20172022 and 2016,2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017,2022, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2017,2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 23, 201816, 2023 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company'sCompany’s management. Our responsibility is to express an opinion on the Company'sCompany’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
58

Joint Venture Consolidation Assessment
Description of the MatterThe Company accounted for certain investments in real estate joint ventures under the equity method of accounting and consolidated certain other investments in real estate joint ventures. At December 31, 2022, the Company’s investments in unconsolidated joint ventures was $3.2 billion and noncontrolling interests in consolidated other partnerships was $61.9 million. As discussed in Note 2 to the consolidated financial statements, for each joint venture, the Company evaluated the rights provided to each party in the venture to assess the consolidation of the venture.
How We Addressed the Matter in Our Audit
Auditing management’s joint venture consolidation analyses was complex and highly judgmental due to the subjectivity in assessing which activities most significantly impact a joint venture’s economic performance based on the purpose and design of the entity over the duration of its expected life and assessing which party has rights to direct those activities. We tested the Company’s controls over the assessment of joint venture consolidation. For example, we tested controls over management's review of the consolidation analyses for newly formed ventures as well as controls over management's identification of reconsideration events which could trigger modified consolidation conclusions for existing ventures.

To test the Company’s consolidation assessment for real estate joint ventures, our procedures included, among others, reviewing new and amended joint venture agreements and discussing with management the nature of the rights conveyed to the Company through the joint venture agreements as well as the business purpose of the joint venture transactions. We reviewed management’s assessment of the activities that would most significantly impact the joint venture’s economic performance and evaluated whether the joint venture agreements provided participating or protective rights to the Company. We also evaluated transactions with the joint ventures for events which would require a reconsideration of previous consolidation conclusions.
 /s/ Ernst & Young LLP
We have served as the Company‘s auditor since 1997.
New York, New York
February 23, 2018

16, 2023
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SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands, except per share data)

December 31, 2022December 31, 2021
Assets
Commercial real estate properties, at cost:
Land and land interests$1,576,927 $1,350,701 
Building and improvements4,903,776 3,671,402 
Building leasehold and improvements1,691,831 1,645,081 
Right of use asset - operating leases1,026,265 983,723 
9,198,799 7,650,907 
Less: accumulated depreciation(2,039,554)(1,896,199)
7,159,245 5,754,708 
Assets held for sale— 140,855 
Cash and cash equivalents203,273 251,417 
Restricted cash180,781 85,567 
Investments in marketable securities11,240 34,752 
Tenant and other receivables34,497 47,616 
Related party receivables27,352 29,408 
Deferred rents receivable257,887 248,313 
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,811 and $5,057 and allowances of $6,630 and $6,630 in 2022 and 2021, respectively623,280 1,088,723 
Investments in unconsolidated joint ventures3,190,137 2,997,934 
Deferred costs, net121,157 124,495 
Other assets546,945 262,841 
Total assets (1)
$12,355,794 $11,066,629 
Liabilities
Mortgages and other loans payable, net$3,227,563 $1,394,386 
Revolving credit facility, net443,217 381,334 
Unsecured term loans, net1,641,552 1,242,002 
Unsecured notes, net99,692 899,308 
Accrued interest payable14,227 12,698 
Other liabilities236,211 195,390 
Accounts payable and accrued expenses154,867 157,571 
Deferred revenue272,248 107,275 
Lease liability - financing leases104,218 102,914 
Lease liability - operating leases895,100 851,370 
Dividend and distributions payable21,569 187,372 
Security deposits50,472 52,309 
Liabilities related to assets held for sale— 64,120 
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities100,000 100,000 
Total liabilities (1)
7,260,936 5,748,049 
Commitments and contingencies
Noncontrolling interests in Operating Partnership269,993 344,252 
Preferred units177,943 196,075 
60
 December 31, 2017 December 31, 2016
Assets   
Commercial real estate properties, at cost:   
Land and land interests$2,357,051
 $3,309,710
Building and improvements6,351,012
 7,948,852
Building leasehold and improvements1,450,614
 1,437,325
Properties under capital lease47,445
 47,445
 10,206,122
 12,743,332
Less: accumulated depreciation(2,300,116) (2,264,694)
 7,906,006
 10,478,638
Assets held for sale338,354
 —
Cash and cash equivalents127,888
 279,443
Restricted cash122,138
 90,524
Investments in marketable securities28,579
 85,110
Tenant and other receivables, net of allowance of $18,637 and $16,592 in 2017 and 2016, respectively57,644
 53,772
Related party receivables23,039
 15,856
Deferred rents receivable, net of allowance of $17,207 and $25,203 in 2017 and 2016, respectively365,337
 442,179
Debt and preferred equity investments, net of discounts and deferred origination fees of $25,507 and $16,705 in 2017 and 2016, respectively2,114,041
 1,640,412
Investments in unconsolidated joint ventures2,362,989
 1,890,186
Deferred costs, net226,201
 267,600
Other assets310,688
 614,067
Total assets (1)
$13,982,904
 $15,857,787
Liabilities   
Mortgages and other loans payable, net$2,837,282
 $4,073,830
Revolving credit facility, net30,336
 —
Unsecured term loans, net1,491,575
 1,179,521
Unsecured notes, net1,395,939
 1,128,315
Accrued interest payable38,142
 36,052
Other liabilities188,005
 206,238
Accounts payable and accrued expenses137,142
 190,583
Deferred revenue208,119
 217,955
Capital lease obligations42,843
 42,132
Deferred land leases payable3,239
 2,583
Dividend and distributions payable85,138
 87,271
Security deposits67,927
 66,504
Liabilities related to assets held for sale4,074
 —
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities100,000
 100,000
Total liabilities (1)
6,629,761
 7,330,984
Commitments and contingencies—
 —
Noncontrolling interests in Operating Partnership461,954
 473,882
Preferred units301,735
 302,010

70


SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands, except per share data)

December 31, 2022December 31, 2021
Equity
SL Green stockholders' equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both December 31, 2022 and 2021221,932 221,932 
Common stock, $0.01 par value, 160,000 shares authorized and 65,440 and 65,132 issued and outstanding at December 31, 2022 and 2021, respectively (including 1,060 and 1,027 shares held in treasury at December 31, 2022 and 2021, respectively)656 672 
Additional paid-in-capital3,790,358 3,739,409 
Treasury stock at cost(128,655)(126,160)
Accumulated other comprehensive income (loss)49,604 (46,758)
Retained earnings651,138 975,781 
Total SL Green stockholders' equity4,585,033 4,764,876 
Noncontrolling interests in other partnerships61,889 13,377 
Total equity4,646,922 4,778,253 
Total liabilities and equity$12,355,794 $11,066,629 
(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $41.2 million and $193.4 million of land, $41.0 million and $336.9 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $15.4 million of right of use assets, $4.4 million and $11.7 million of accumulated depreciation, $599.2 million and $574.4 million of other assets included in other line items, $49.8 million and $418.9 million of real estate debt, net, $0.2 million and $0.8 million of accrued interest payable, $— million and $15.3 million of lease liabilities, and $146.4 million and $145.2 million of other liabilities included in other line items as of December 31, 2022 and December 31, 2021, respectively.

 December 31, 2017 December 31, 2016
Equity   
SL Green stockholders' equity:   
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both December 31, 2017 and 2016221,932
 221,932
Common stock, $0.01 par value, 160,000 shares authorized and 93,858 and 101,617 issued and outstanding at December 31, 2017 and 2016, respectively (including 1,055 and 1,055 shares held in treasury at December 31, 2017 and 2016, respectively)939
 1,017
Additional paid-in-capital4,968,338
 5,624,545
Treasury stock at cost(124,049) (124,049)
Accumulated other comprehensive income18,604
 22,137
Retained earnings1,139,329
 1,578,893
Total SL Green stockholders' equity6,225,093
 7,324,475
Noncontrolling interests in other partnerships364,361
 426,436
Total equity6,589,454
 7,750,911
Total liabilities and equity$13,982,904
 $15,857,787
    
(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $398.0 million and $412.3 million of land, $1.4 billion and $1.5 billion of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $47.4 million and $47.4 million of properties under capital lease, $330.9 million and $327.2 million of accumulated depreciation, $221.0 million and $226.8 million of other assets included in other line items, $628.9 million and $621.8 million of real estate debt, net, $2.5 million and $2.2 million of accrued interest payable, $42.8 million and $42.1 million of capital lease obligations, and $56.8 million and $72.2 million of other liabilities included in other line items as of December 31, 2017 and December 31, 2016, respectively.



The accompanying notes are an integral part of these consolidated financial statements.

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SL Green Realty Corp.
Consolidated Statements of Operations
(in thousands, except per share data)





Year Ended December 31,
202220212020
Revenues
Rental revenue, net$671,500 $678,176 $804,423 
Investment income81,113 80,340 120,163 
Other income74,126 85,475 128,158 
Total revenues826,739 843,991 1,052,744 
Expenses
Operating expenses, including related party expenses of $5,701 in 2022, $12,377 in 2021 and $12,643 in 2020174,063 167,153 183,200 
Real estate taxes138,228 152,835 176,315 
Operating lease rent26,943 26,554 29,043 
Interest expense, net of interest income89,473 70,891 116,679 
Amortization of deferred financing costs7,817 11,424 11,794 
Depreciation and amortization215,306 216,869 313,668 
Loan loss and other investment reserves, net of recoveries— 2,931 35,298 
Transaction related costs409 3,773 503 
Marketing, general and administrative93,798 94,912 91,826 
Total expenses746,037 747,342 958,326 
Equity in net loss from unconsolidated joint ventures(57,958)(55,402)(25,195)
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate(131)(32,757)2,961 
Purchase price and other fair value adjustments(8,118)210,070 187,522 
(Loss) gain on sale of real estate, net(84,485)287,417 215,506 
Depreciable real estate reserves and impairments(6,313)(23,794)(60,454)
Loss on early extinguishment of debt— (1,551)— 
Net (loss) income(76,303)480,632 414,758 
Net loss (income) attributable to noncontrolling interests:
Noncontrolling interests in the Operating Partnership5,794 (25,457)(20,016)
Noncontrolling interests in other partnerships(1,122)1,884 (14,940)
Preferred units distributions(6,443)(7,305)(8,747)
Net (loss) income attributable to SL Green(78,074)449,754 371,055 
Perpetual preferred stock dividends(14,950)(14,950)(14,950)
Net (loss) income attributable to SL Green common stockholders$(93,024)$434,804 $356,105 
Basic (loss) earnings per share$(1.49)$6.57 $5.03 
Diluted (loss) earnings per share$(1.49)$6.50 $5.01 
Basic weighted average common shares outstanding63,917 65,740 70,397 
Diluted weighted average common shares and common share equivalents outstanding67,929 70,769 75,078 

  Year Ended December 31,
  2017 2016 2015
Revenues      
Rental revenue, net $1,100,993
 $1,323,767
 $1,245,981
Escalation and reimbursement 172,939
 196,858
 178,512
Investment income 193,871
 213,008
 181,128
Other income 43,670
 130,348
 57,208
Total revenues 1,511,473
 1,863,981
 1,662,829
Expenses      
Operating expenses, including $21,400 in 2017, $21,890 in 2016, $20,071 in 2015 of related party expenses 293,364
 312,859
 301,624
Real estate taxes 244,323
 248,388
 232,702
Ground rent 33,231
 33,261
 32,834
Interest expense, net of interest income 257,045
 321,199
 323,870
Amortization of deferred financing costs 16,498
 24,564
 27,348
Depreciation and amortization 403,320
 821,041
 560,887
Transaction related costs (1,834) 7,528
 11,430
Marketing, general and administrative 100,498
 99,759
 94,873
Total expenses 1,346,445
 1,868,599
 1,585,568
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, purchase price fair value adjustment, gain on sale of real estate, depreciable real estate reserves, gain (loss) on sale of marketable securities and loss on early extinguishment of debt 165,028
 (4,618) 77,261
Equity in net income from unconsolidated joint ventures 21,892
 11,874
 13,028
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 16,166
 44,009
 15,844
Purchase price fair value adjustment —
 —
 40,078
Gain on sale of real estate, net 73,241
 238,116
 175,974
Depreciable real estate reserves (178,520) (10,387) (19,226)
Gain (loss) on sale of investment in marketable securities 3,262
 (83) —
Loss on early extinguishment of debt —
 —
 (49)
Income from continuing operations 101,069
 278,911
 302,910
Net income from discontinued operations —
 —
 427
Gain on sale of discontinued operations —
 —
 14,122
Net income 101,069
 278,911
 317,459
Net (income) loss attributable to noncontrolling interests:      
Noncontrolling interests in the Operating Partnership (3,995) (10,136) (10,565)
Noncontrolling interests in other partnerships 15,701
 (7,644) (15,843)
Preferred units distributions (11,401) (11,235) (6,967)
Net income attributable to SL Green 101,374
 249,896
 284,084
Preferred stock redemption costs —
 —
 —
Perpetual preferred stock dividends (14,950) (14,950) (14,952)
Net income attributable to SL Green common stockholders $86,424
 $234,946
 $269,132
       

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Table of Contents

SL Green Realty Corp.
Consolidated Statements of Operations
(in thousands, except per share data)


  Year Ended December 31,
  2017 2016 2015
Amounts attributable to SL Green common stockholders:      
Income (loss) from continuing operations before purchase price fair value adjustment, gains on sale and discontinued operations $171,600
 $(25,552) $50,502
Purchase price fair value adjustment —
 —
 38,563
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 15,452
 42,189
 15,245
Net income from discontinued operations —
 —
 411
Gain on sale of discontinued operations —
 —
 13,588
Gain on sale of real estate, net 70,005
 228,266
 169,322
Depreciable real estate reserves (170,633) (9,957) (18,499)
Net income attributable to SL Green common stockholders $86,424
 $234,946
 $269,132
Basic earnings per share:      
Income (loss) from continuing operations before purchase price fair value adjustment, gains on sale and discontinued operations $1.74
 $(0.26) $0.51
Purchase price fair value adjustment —
 —
 0.39
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 0.16
 0.42
 0.15
Net income from discontinued operations —
 —
 —
Gain on sale of discontinued operations —
 —
 0.14
Gain on sale of real estate, net 0.71
 2.29
 1.71
Depreciable real estate reserves (1.73) (0.10) (0.19)
Net income attributable to SL Green common stockholders $0.88
 $2.35
 $2.71
Diluted earnings per share:      
Income (loss) from continuing operations before purchase price fair value adjustment, gains on sale and discontinued operations $1.74
 $(0.25) $0.51
Purchase price fair value adjustment —
 —
 0.39
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 0.16
 0.42
 0.15
Net income from discontinued operations —
 —
 —
Gain on sale of discontinued operations —
 —
 0.14
Gain on sale of real estate, net 0.71
 2.27
 1.70
Depreciable real estate reserves (1.74) (0.10) (0.19)
Net income attributable to SL Green common stockholders $0.87
 $2.34
 $2.70
Basic weighted average common shares outstanding 98,571
 100,185
 99,345
Diluted weighted average common shares and common share equivalents outstanding 103,403
 104,881
 103,734



The accompanying notes are an integral part of these consolidated financial statements.

62
73

SL Green Realty Corp.
Consolidated Statements of Comprehensive Income
(in thousands)
Year Ended December 31,
202220212020
Net (loss) income$(76,303)$480,632 $414,758 
Other comprehensive income (loss):
Increase (decrease) in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments103,629 21,427 (39,743)
(Decrease) increase in unrealized value of marketable securities(1,440)104 (1,318)
Other comprehensive income (loss)102,189 21,531 (41,061)
Comprehensive income25,886 502,163 373,697 
Net income attributable to noncontrolling interests and preferred units distributions(1,771)(30,878)(43,703)
Other comprehensive (income) loss attributable to noncontrolling interests(5,827)(1,042)2,299 
Comprehensive income attributable to SL Green$18,288 $470,243 $332,293 
 Year Ended December 31,
 2017 2016 2015
Net income$101,069
 $278,911
 $317,459
Other comprehensive income:     
Change in net unrealized gain (loss) on derivative instruments, including SL Green's share of joint venture net unrealized gain (loss) on derivative instruments1,040
 28,508
 (1,229)
Change in unrealized gain on marketable securities(4,667) 3,677
 (607)
Other comprehensive (loss) income(3,627) 32,185
 (1,836)
Comprehensive income97,442

311,096

315,623
Net loss (income) attributable to noncontrolling interests and preferred units distributions305
 (29,015) (33,375)
Other comprehensive income (loss) attributable to noncontrolling interests94
 (1,299) 67
Comprehensive income attributable to SL Green$97,841
 $280,782
 $282,315




The accompanying notes are an integral part of these consolidated financial statements.



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Table of Contents


SL Green Realty Corp.
Consolidated StatementStatements of Equity
(in thousands, except per share data)

SL Green Realty Corp. Stockholders
Common Stock
Series I
Preferred
Stock		SharesPar
Value		Additional
Paid-
In-Capital		Treasury
Stock		Accumulated
Other
Comprehensive Income (Loss)		Retained
Earnings		Noncontrolling
Interests		Total
Balance at December 31, 2019$221,932 74,672 $803 $4,286,395 $(124,049)$(28,485)$1,084,719 $75,883 $5,517,198 
Cumulative adjustment upon adoption of ASC
326		(39,184)(39,184)
Balance at January 1, 2020$221,932 74,672 $803 $4,286,395 $(124,049)$(28,485)$1,045,535 $75,883 $5,478,014 
Net income371,055 14,940 385,995 
Acquisition of subsidiary interest from noncontrolling interest(3,123)1,587 (1,536)
Other comprehensive loss(38,762)(38,762)
Preferred dividends(14,950)(14,950)
DRSPP proceeds16 1,006 1,006 
Conversion of units in the Operating Partnership for common stock95 1 8,743 8,744 
Reallocation of noncontrolling interest in the Operating Partnership32,598 32,598 
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings(33)— 25,271 25,271 
Repurchases of common stock(8,276)(88)(455,343)(76,831)(532,262)
Contributions to consolidated joint venture interests12,477 12,477 
Cash distributions to noncontrolling interests(78,855)(78,855)
Cash distributions declared ($4.9374 per common share, none of which represented a return of capital for federal income tax purposes)(341,945)(341,945)
Balance at December 31, 2020$221,932 66,474 $716 $3,862,949 $(124,049)$(67,247)$1,015,462 $26,032 $4,935,795 
Net income449,754 (1,884)447,870 
Other comprehensive income20,489 20,489 
Preferred dividends(14,950)(14,950)
DRSPP proceeds11 738 738 
Reallocation of noncontrolling interest in the Operating Partnership(9,851)(9,851)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings108 2 32,581 32,583 
Repurchases of common stock(4,474)(46)(281,206)(56,372)(337,624)
Proceeds from stock options exercised12 818 818 
Contributions to consolidated joint venture interests336 336 
Sale of interest in partially owned entity(4,476)(4,476)
Cash distributions to noncontrolling interests(6,631)(6,631)
Issuance of special dividend paid in
stock		1,974 123,529 (2,111)2,111 123,529 
Cash distributions declared ($6.2729 per common share, none of which represented a return of capital for federal income tax purposes)(410,373)(410,373)
Balance at December 31, 2021$221,932 64,105 $672 $3,739,409 $(126,160)$(46,758)$975,781 $13,377 $4,778,253 
Net loss(78,074)1,122 (76,952)
Acquisition of subsidiary interest from noncontrolling interest(29,742)(75)(29,817)
Other comprehensive income96,362 96,362 
Preferred dividends(14,950)(14,950)
DRSPP proceeds11 525 525 
Reallocation of noncontrolling interest in the Operating Partnership39,974 39,974 
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings274 4 32,030 32,034 
Repurchases of common stock(1,971)(20)(114,979)(36,198)(151,197)
Contributions to consolidated joint venture interests52,164 52,164 
Cash distributions to noncontrolling interests(4,699)(4,699)
64
 SL Green Realty Corp. Stockholders  
   Common Stock         


 
Series I
Preferred
Stock
 Shares 
Par
Value
 
Additional
Paid-
In-Capital
 
Treasury
Stock
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Noncontrolling
Interests
 Total
Balance at December 31, 2014 $221,932
 97,325
 $974
 $5,113,759
 $—
 $(6,980) $1,607,689
 $521,842
 $7,459,216
Net income             284,084
 15,843
 299,927
Acquisition of subsidiary interest from noncontrolling interest       (9,566)       (11,084) (20,650)
Other comprehensive loss           (1,769)     (1,769)
Preferred dividends             (14,952)   (14,952)
DRSPP proceeds   776
 8
 99,547
         99,555
Conversion of units of the Operating Partnership to common stock   483
 5
 55,692
         55,697
Reallocation of noncontrolling interest in the Operating Partnership             20,915
   20,915
Reallocation of capital account relating to sale               (10,143) (10,143)
Deferred compensation plan and stock award, net   168
 2
 243
     (3,227)   (2,982)
Amortization of deferred compensation plan       26,721
         26,721
Issuance of common stock   1,007
 10
 136,979
 (10,000)       126,989
Proceeds from stock options exercised   217
 2
 16,360
         16,362
Contributions to consolidated joint venture interests               35,178
 35,178
Cash distributions to noncontrolling interests               (119,784) (119,784)
Cash distributions declared ($2.52 per common share, none of which represented a return of capital for federal income tax purposes)             (250,963)   (250,963)
Balance at December 31, 2015 221,932
 99,976
 1,001
 5,439,735
 (10,000) (8,749) 1,643,546
 431,852
 7,719,317
Net income             249,896
 7,644
 257,540
Other comprehensive income           30,886
     30,886
Preferred dividends             (14,950)   (14,950)
DRSPP proceeds   2
 

 277
         277
Conversion of units of the Operating Partnership to common stock   295
 3
 31,803
         31,806
Reallocation of noncontrolling interest in the Operating Partnership             (4,222)   (4,222)
Deferred compensation plan and stock award, net   96
 1
 (1,989)     

   (1,988)
Amortization of deferred compensation plan       25,890
         25,890
Issuance of common stock   

 10
 113,999
 (114,049)       (40)
Proceeds from stock options exercised   193
 2
 14,830
         14,832
Contributions to consolidated joint venture interests               2,359
 2,359
Cash distributions to noncontrolling interests               (15,419) (15,419)
Cash distributions declared ($2.94 per common share, none of which represented a return of capital for federal income tax purposes)             (295,377)   (295,377)
Balance at December 31, 2016 221,932
 100,562
 1,017
 5,624,545
 $(124,049) $22,137
 1,578,893
 426,436
 7,750,911

75


SL Green Realty Corp.
Consolidated StatementStatements of Equity
(in thousands, except per share data)

SL Green Realty Corp. Stockholders
Common Stock
Series I
Preferred
Stock		SharesPar
Value		Additional
Paid-
In-Capital		Treasury
Stock		Accumulated
Other
Comprehensive Income (Loss)		Retained
Earnings		Noncontrolling
Interests		Total
Issuance of special dividend paid in
stock		1,961 163,115 (2,495)160,620 
Cash distributions declared ($3.6896 per common share, none of which represented a return of capital for federal income tax purposes)(235,395)(235,395)
Balance at December 31, 2022$221,932 64,380 $656 $3,790,358 $(128,655)$49,604 $651,138 $61,889 $4,646,922 
 SL Green Realty Corp. Stockholders  
   Common Stock         


 
Series I
Preferred
Stock
 Shares 
Par
Value
 
Additional
Paid-
In-Capital
 
Treasury
Stock
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Noncontrolling
Interests
 Total
Net income (loss)             101,374
 (15,701) 85,673
Other comprehensive loss           (3,533)   

 (3,533)
Preferred dividends             (14,950)   (14,950)
DRSPP proceeds   2
   223
         223
Conversion of units of the Operating Partnership to common stock   202
 2
 21,572
         21,574
Reallocation of noncontrolling interest in the Operating Partnership             5,712
   5,712
Equity component of repurchased exchangeable senior notes       (109,776)         (109,776)
Deferred compensation plan and stock award, net   87
 1
 (2,375)         (2,374)
Amortization of deferred compensation plan       32,161
         32,161
Repurchases of common stock   (8,342) (83) (621,324)     (226,641)   (848,048)
Proceeds from stock options exercised   292
 2
 23,312
         23,314
Contributions to consolidated joint venture interests               36,275
 36,275
Deconsolidation of partially owned entity               (30,203) (30,203)
Cash distributions to noncontrolling interests               (52,446) (52,446)
Cash distributions declared ($3.1375 per common share, none of which represented a return of capital for federal income tax purposes)             (305,059)   (305,059)
Balance at December 31, 2017 $221,932

92,803

$939

$4,968,338

$(124,049)
$18,604

$1,139,329

$364,361

$6,589,454



The accompanying notes are an integral part of these consolidated financial statements.

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Table of Contents


SL Green Realty Corp.
Consolidated Statements of Cash Flows
(in thousands, except per share data)



Year Ended December 31,
 202220212020
Operating Activities
Net (loss) income$(76,303)$480,632 $414,758 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization223,123 228,293 325,462 
Equity in net loss from unconsolidated joint ventures57,958 55,402 25,195 
Distributions of cumulative earnings from unconsolidated joint ventures780 824 679 
Equity in net loss (gain) on sale of interest in unconsolidated joint venture interest/real estate131 32,757 (2,961)
Purchase price and other fair value adjustments8,118 (210,070)(187,522)
Depreciable real estate reserves and impairments6,313 23,794 60,454 
Loss (gain) on sale of real estate, net84,485 (287,417)(215,506)
Loan loss reserves and other investment reserves, net of recoveries— 2,931 35,298 
Loss on early extinguishment of debt— 1,551 — 
Deferred rents receivable(5,749)(6,701)(7,582)
Non-cash lease expense22,403 17,234 11,984 
Other non-cash adjustments(5,676)37,164 15,178 
Changes in operating assets and liabilities:
Tenant and other receivables14,370 (20,561)(17,074)
Related party receivables6,666 (8,727)1,451 
Deferred lease costs(21,792)(10,117)(20,900)
Other assets(27,343)20,345 (26,137)
Accounts payable, accrued expenses, other liabilities and security deposits(30,839)(66,387)132,171 
Deferred revenue18,332 (1,727)20,657 
Change in lease liability - operating leases1,111 (33,241)(11,369)
Net cash provided by operating activities276,088 255,979 554,236 
Investing Activities
Acquisitions of real estate property$(64,491)$(152,791)$(86,846)
Additions to land, buildings and improvements(300,770)(302,486)(458,140)
Investments in unconsolidated joint ventures(184,518)(88,872)(70,315)
Distributions in excess of cumulative earnings from unconsolidated joint ventures141,742 770,604 124,572 
Net proceeds from disposition of real estate/joint venture interest626,364 651,594 1,112,382 
Cash and restricted cash assumed from acquisition of real estate investment60,494 — — 
Cash assumed from consolidation of real estate investment— 9,475 — 
Proceeds from sale or redemption of marketable securities15,626 4,528 — 
Purchases of marketable securities— (10,000)— 
Other investments1,432 40,200 32,479 
Origination of debt and preferred equity investments(51,367)(95,695)(360,953)
Repayments or redemption of debt and preferred equity investments181,293 167,024 763,251 
66
 Year Ended December 31,
 2017 2016 2015
Operating Activities     
Net income$101,069
 $278,911
 $317,459
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization419,818
 845,605
 588,238
Equity in net income from unconsolidated joint ventures(21,892) (11,874) (13,028)
Distributions of cumulative earnings from unconsolidated joint ventures20,309
 24,337
 40,759
Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate(16,166) (44,009) (15,844)
Purchase price fair value adjustment—
 —
 (40,078)
Depreciable real estate reserves178,520
 10,387
 19,226
Gain on sale of real estate, net(73,241) (238,116) (175,974)
Gain on sale of discontinued operations—
 —
 (14,122)
(Gain) loss on sale of investments in marketable securities(3,262) 83
 —
Loss on early extinguishment of debt—
 —
 49
Deferred rents receivable(38,009) 26,716
 (136,924)
Other non-cash adjustments (1)
17,196
 (150,913) (20,671)
Changes in operating assets and liabilities:     
Restricted cash—operations7,147
 (10,811) 11,289
Tenant and other receivables(5,717) 4,780
 (6,405)
Related party receivables(7,209) (5,183) 1,278
Deferred lease costs(41,939) (70,707) (61,005)
Other assets(23,068) 9,899
 18,501
Accounts payable, accrued expenses and other liabilities and security deposits(11,790) (35,628) 8,634
Deferred revenue and land leases payable46,607
 1,237
 5,102
Net cash provided by operating activities548,373
 634,714
 526,484
Investing Activities     
Acquisitions of real estate property(13,680) (37,760) (2,653,311)
Additions to land, buildings and improvements(335,253) (411,950) (406,442)
Escrowed cash—capital improvements/acquisition deposits/deferred purchase price(3,499) 92,374
 (101,000)
Investments in unconsolidated joint ventures(389,249) (84,456) (161,712)
Distributions in excess of cumulative earnings from unconsolidated joint ventures319,745
 196,211
 98,639
Proceeds from disposition of real estate/joint venture interest639,682
 2,469,719
 1,216,785
Proceeds from sale of marketable securities55,129
 6,965
 1,426
Purchases of marketable securities—
 (43,341) (7,769)
Other investments25,330
 7,704
 (15,806)
Origination of debt and preferred equity investments(1,129,970) (977,413) (756,939)
Repayments or redemption of debt and preferred equity investments812,914
 904,517
 520,218
Net cash (used in) provided by investing activities(18,851) 2,122,570
 (2,265,911)
      

77


SL Green Realty Corp.
Consolidated Statements of Cash Flows
(in thousands, except per share data)

Year Ended December 31,
 202220212020
Net cash provided by investing activities425,805 993,581 1,056,430 
Financing Activities
Proceeds from mortgages and other loans payable$381,980 $39,689 $1,181,892 
Repayments of mortgages and other loans payable(292,364)(375,044)(1,186,828)
Proceeds from revolving credit facility and senior unsecured notes1,524,000 1,488,000 1,495,000 
Repayments of revolving credit facility and senior unsecured notes(1,864,000)(1,808,000)(1,875,000)
Proceeds from stock options exercised and DRSPP issuance525 1,556 1,006 
Repurchase of common stock(151,197)(341,403)(528,483)
Redemption of preferred stock(17,967)(6,040)(82,750)
Redemption of OP units(40,901)(25,703)(27,342)
Distributions to noncontrolling interests in other partnerships(4,699)(6,631)(85,468)
Contributions from noncontrolling interests in other partnerships52,164 336 12,477 
Acquisition of subsidiary interest from noncontrolling interest(29,817)— (1,536)
Distributions to noncontrolling interests in the Operating Partnership(16,272)(15,749)(12,652)
Dividends paid on common and preferred stock(262,136)(271,075)(293,996)
Other obligation related to secured borrowing77,874 51,862 — 
Tax withholdings related to restricted share awards(3,915)(2,990)(4,752)
Deferred loan costs(8,098)(13,745)(70,036)
Principal payments of on financing lease liabilities— (434)(833)
Net cash used in financing activities(654,823)(1,285,371)(1,479,301)
Net increase (decrease) in cash, cash equivalents, and restricted cash47,070 (35,811)131,365 
Cash, cash equivalents, and restricted cash at beginning of year336,984 372,795 241,430 
Cash, cash equivalents, and restricted cash at end of period$384,054 $336,984 $372,795 
Supplemental cash flow disclosures:
Interest paid$169,519 $152,773 $201,348 
Income taxes paid$5,358 $4,405 $2,296 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Conversion of units in the Operating Partnership$— $— $8,744 
Redemption of units in the Operating Partnership for a joint venture sale— 27,586 — 
Exchange of preferred equity investment for real estate or equity in joint venture190,652 — 119,497 
Exchange of debt investment for real estate or equity in joint venture193,995 9,468 122,796 
Assumption of mortgage and mezzanine loans1,712,750 60,000 — 
Issuance of special dividend paid in stock160,620 121,418 — 
Tenant improvements and capital expenditures payable18,518 7,580 1,665 
Fair value adjustment to noncontrolling interest in the Operating Partnership39,974 9,851 32,598 
Investment in joint venture47,135 — — 
Deconsolidation of a subsidiary— 66,837 854,437 
Deconsolidation of a subsidiary mortgage— 510,000 5,593 
Mortgages assumed in connection with sale of real estate— — 250,000 
Seller financed purchases— — 100,000 
Debt and preferred equity investments302 8,372 9,014 
Transfer of assets related to assets held for sale— 140,855 — 
67
  Year Ended December 31,
  2017 2016 2015
 Financing Activities     
 Proceeds from mortgages and other loans payable$870,459
 $408,293
 $1,849,293
 Repayments of mortgages and other loans payable(902,460) (1,822,303) (781,236)
 Proceeds from revolving credit facility, term loans and senior unsecured notes
2,784,599
 1,325,300
 2,515,000
 Repayments of revolving credit facility, term loans and senior unsecured notes(2,276,782) (2,334,604) (1,706,007)
 Payment of debt extinguishment costs—
 —
 —
 Proceeds from stock options exercised and DRSPP issuance23,537
 15,109
 115,917
 Proceeds from sale of common stock—
 —
 124,761
 Repurchase of common stock(806,302) —
 —
 Redemption of preferred stock(275) (3,299) (200)
 Distributions to noncontrolling interests in other partnerships(52,446) (15,419) (119,784)
 Contributions from noncontrolling interests in other partnerships36,275
 2,359
 12,674
 Distributions to noncontrolling interests in the Operating Partnership(14,266) (12,671) (9,710)
 Dividends paid on common and preferred stock(333,543) (314,079) (257,378)
 Other obligations related to mortgage loan participations17,227
 59,150
 25,000
 Deferred loan costs and capitalized lease obligation(27,100) (41,076) $(54,913)
 Net cash (used in) provided by financing activities(681,077) (2,733,240) 1,713,417
 Net (decrease) increase in cash and cash equivalents(151,555) 24,044
 (26,010)
 Cash and cash equivalents at beginning of year279,443
 255,399
 281,409
 Cash and cash equivalents at end of period$127,888
 $279,443
 $255,399
       
 
(1) Included in Other non-cash adjustments is $172.4 million for the year ended December 31, 2016 for the amortization of the below-market lease at 388-390 Greenwich Street as a result of the tenant exercising their option to purchase the property and entering into an agreement to accelerate the sale.
 
 Supplemental cash flow disclosures:     
 Interest paid$273,819
 $344,295
 $345,110
 Income taxes paid$2,448
 $2,009
 $3,882
       
 Supplemental Disclosure of Non-Cash Investing and Financing Activities:     
 Issuance of units in the operating partnership25,723
 78,495
 30,506
 Redemption of units in the operating partnership21,574
 31,806
 55,697
 Derivative instruments at fair value4,397
 31,826
 1,816
 Exchange of debt investment for equity in joint venture—
 68,581
 10,151
 Acquisition of subsidiary interest from noncontrolling interest—
 —
 20,630
 Issuance of common stock relating to the real estate acquisition—
 —
 2,228
 Issuance of preferred units relating to the real estate acquisition—
 22,793
 211,601
 Tenant improvements and capital expenditures payable6,667
 15,972
 7,755
 Fair value adjustment to noncontrolling interest in operating partnership5,712
 4,222
 20,915
 Assumption of mortgage loan—
 —
 112,795
 Capital lease assets—
 —
 20,000
 Reclassification of development costs from other assets to real estate—
 —
 47,519
 
Deconsolidation of a subsidiary (1)
695,204
 1,226,425
 27,435
 Transfer of assets to assets held for sale611,809
 2,048,376
 34,981
 Transfer of liabilities related to assets held for sale5,364
 1,677,528
 29,000
 Consolidation of real estate investment—
 —
 158,566
 Removal of fully depreciated commercial real estate properties15,488
 31,474
 241,910
 Issuance of SLG's common stock to a consolidated joint venture—
 114,049
 10,000

78


SL Green Realty Corp.
Consolidated Statements of Cash Flows
(in thousands, except per share data)

 Year Ended December 31,
 2017 2016 2015
Contribution to consolidated joint venture by noncontrolling interest—
 —
 22,504
Share repurchase payable41,746
 —
 —
      
(1) $366.6 million of the 2017 amount relates to 1515 Broadway. In November 2017, the Company sold a 30.13% interest in 1515 Broadway to affiliates of Allianz Real Estate. The sale did not meet the criteria for sale accounting and as a result the property was accounted for under the profit sharing method. The Company achieved sale accounting upon adoption of ASC 610-20 in January 2018 and closed on the sale of an additional 12.87% interest in the property to Allianz in February 2018. See Note 6, "Investments in Unconsolidated Joint Ventures.".
Year Ended December 31,
 202220212020
Reversal of assets held for sale— — 391,664 
Transfer of liabilities related to assets held for sale— 64,120 — 
Extinguishment of debt in connection with property dispositions— 53,548 — 
Consolidation of real estate investment— 119,444 — 
Removal of fully depreciated commercial real estate properties30,359 19,831 66,169 
Sale of interest in partially owned entity— 4,476 — 
Distributions to noncontrolling interests— 358 6,613 
Share repurchase payable— — 3,779 
Recognition of sales-type leases and related lease liabilities— — 119,725 
Recognition of right of use assets and related lease liabilities57,938 537,344 61,990 
In December 2017, 2016 and 2015,2022, the Company declared quarterly distributionsa regular monthly distribution per share of $0.8125, $0.775$0.2708. This distribution was paid in January 2023. In December 2021, the Company declared a regular monthly distribution per share of $0.3108 that was paid in cash and $0.72, respectively.a special distribution per share of $2.4392 that was paid entirely in stock. These distributions were paid in January 2018, 20172022. In December 2020, the Company declared a regular monthly distribution per share of $0.3217 that was paid in cash and 2016, respectively.a special distribution per share of $1.7996 that was paid entirely in stock. These distributions were paid in January 2021.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
Year Ended
 202220212020
Cash and cash equivalents$203,273 $251,417 $266,059 
Restricted cash180,781 85,567 106,736 
Total cash, cash equivalents, and restricted cash$384,054 $336,984 $372,795 
The accompanying notes are an integral part of these consolidated financial statements.

68
79



Report of Independent Registered Public Accounting Firm
To the Partners of SL Green Operating Partnership, L.P.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of SL Green Operating Partnership, L.P. (the Operating Partnership) as of December 31, 20172022 and 2016,2021, the related consolidated statements of operations, comprehensive income, capital and cash flows for each of the three years in the period ended December 31, 2017,2022, and the related notes and financial statement schedulesschedule listed in the Index at Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Operating Partnership at December 31, 20172022 and 2016,2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017,2022, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)(PCAOB), the Operating Partnership's internal control over financial reporting as of December 31, 2017,2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 23, 201816, 2023 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Operating Partnership's management. Our responsibility is to express an opinion on the Operating Partnership's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

69

Joint Venture Consolidation Assessment
Description of the MatterThe Operating Partnership accounted for certain investments in real estate joint ventures under the equity method of accounting and consolidated certain other investments in real estate joint ventures. At December 31, 2022, the Operating Partnership’s investments in unconsolidated joint ventures was $3.2 billion and noncontrolling interests in consolidated other partnerships was $61.9 million. As discussed in Note 2 to the consolidated financial statements, for each joint venture, the Operating Partnership evaluated the rights provided to each party in the venture to assess the consolidation of the venture.
How We Addressed the Matter in Our Audit
Auditing management’s joint venture consolidation analyses was complex and highly judgmental due to the subjectivity in assessing which activities most significantly impact a joint venture’s economic performance based on the purpose and design of the entity over the duration of its expected life and assessing which party has rights to direct those activities. We tested the Operating Partnership’s controls over the assessment of joint venture consolidation. For example, we tested controls over management's review of the consolidation analyses for newly formed ventures as well as controls over management's identification of reconsideration events which could trigger modified consolidation conclusions for existing ventures.

To test the Operating Partnership’s consolidation assessment for real estate joint ventures, our procedures included, among others, reviewing new and amended joint venture agreements and discussing with management the nature of the rights conveyed to the Operating Partnership through the joint venture agreements as well as the business purpose of the joint venture transactions. We reviewed management’s assessment of the activities that would most significantly impact the joint venture’s economic performance and evaluated whether the joint venture agreements provided participating or protective rights to the Operating Partnership. We also evaluated transactions with the joint ventures for events which would require a reconsideration of previous consolidation conclusions.
/s/ Ernst & Young LLP
We have served as the Operating Partnership's auditor since 2010.
New York, New York
February 23, 2018

16, 2023
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SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands, except per unit data)

December 31, 2022December 31, 2021
Assets  
Commercial real estate properties, at cost:  
Land and land interests$1,576,927 $1,350,701 
Building and improvements4,903,776 3,671,402 
Building leasehold and improvements1,691,831 1,645,081 
Right of use asset - operating leases1,026,265 983,723 
9,198,799 7,650,907 
Less: accumulated depreciation(2,039,554)(1,896,199)
7,159,245 5,754,708 
Assets held for sale— 140,855 
Cash and cash equivalents203,273 251,417 
Restricted cash180,781 85,567 
Investments in marketable securities11,240 34,752 
Tenant and other receivables34,497 47,616 
Related party receivables27,352 29,408 
Deferred rents receivable257,887 248,313 
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,811 and $5,057 and allowances of $6,630 and $6,630 in 2022 and 2021, respectively623,280 1,088,723 
Investments in unconsolidated joint ventures3,190,137 2,997,934 
Deferred costs, net121,157 124,495 
Other assets546,945 262,841 
Total assets (1)
$12,355,794 $11,066,629 
Liabilities  
Mortgages and other loans payable, net$3,227,563 $1,394,386 
Revolving credit facility, net443,217 381,334 
Unsecured term loans, net1,641,552 1,242,002 
Unsecured notes, net99,692 899,308 
Accrued interest payable14,227 12,698 
Other liabilities236,211 195,390 
Accounts payable and accrued expenses154,867 157,571 
Deferred revenue272,248 107,275 
Lease liability - financing leases104,218 102,914 
Lease liability - operating leases895,100 851,370 
Dividend and distributions payable21,569 187,372 
Security deposits50,472 52,309 
Liabilities related to assets held for sale— 64,120 
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities100,000 100,000 
Total liabilities (1)
7,260,936 5,748,049 
Commitments and contingencies
Limited partner interests in SLGOP (3,670 and 3,782 limited partner common units outstanding at December 31, 2022 and 2021, respectively)269,993 344,252 
Preferred units177,943 196,075 
71
  December 31, 2017 December 31, 2016
Assets    
Commercial real estate properties, at cost:    
Land and land interests $2,357,051
 $3,309,710
Building and improvements 6,351,012
 7,948,852
Building leasehold and improvements 1,450,614
 1,437,325
Property under capital lease 47,445
 47,445
  10,206,122
 12,743,332
Less: accumulated depreciation (2,300,116) (2,264,694)
  7,906,006
 10,478,638
Assets held for sale 338,354
 —
Cash and cash equivalents 127,888
 279,443
Restricted cash 122,138
 90,524
Investments in marketable securities 28,579
 85,110
Tenant and other receivables, net of allowance of $18,637 and $16,592 in 2017 and 2016, respectively 57,644
 53,772
Related party receivables 23,039
 15,856
Deferred rents receivable, net of allowance of $17,207 and $25,203 in 2017 and 2016, respectively 365,337
 442,179
Debt and preferred equity investments, net of discounts and deferred origination fees of $25,507 and $16,705 in 2017 and 2016, respectively 2,114,041
 1,640,412
Investments in unconsolidated joint ventures 2,362,989
 1,890,186
Deferred costs, net 226,201
 267,600
Other assets 310,688
 614,067
Total assets (1)
 $13,982,904
 $15,857,787
Liabilities    
Mortgages and other loans payable, net $2,837,282
 $4,073,830
Revolving credit facility, net 30,336
 —
Unsecured term loans, net 1,491,575
 1,179,521
Unsecured notes, net 1,395,939
 1,128,315
Accrued interest payable 38,142
 36,052
Other liabilities 188,005
 206,238
Accounts payable and accrued expenses 137,142
 190,583
Deferred revenue 208,119
 217,955
Capital lease obligations 42,843
 42,132
Deferred land leases payable 3,239
 2,583
Dividend and distributions payable 85,138
 87,271
Security deposits 67,927
 66,504
Liabilities related to assets held for sale 4,074
 —
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities 100,000
 100,000
Total liabilities (1)
 6,629,761
 7,330,984
Commitments and contingencies —
 —
Limited partner interests in SLGOP (4,453 and 4,364 limited partner common units outstanding at December 31, 2017 and 2016, respectively) 461,954
 473,882
Preferred units 301,735
 302,010

81


SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands, except per unit data)

December 31, 2022December 31, 2021
Capital  
SLGOP partners' capital:  
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both December 31, 2022 and 2021221,932 221,932 
SL Green partners' capital (680 and 677 general partner common units, and 63,700 and 63,428 limited partner common units outstanding at December 31, 2022 and 2021, respectively)4,313,497 4,589,702 
Accumulated other comprehensive income (loss)49,604 (46,758)
Total SLGOP partners' capital4,585,033 4,764,876 
Noncontrolling interests in other partnerships61,889 13,377 
Total capital4,646,922 4,778,253 
Total liabilities and capital$12,355,794 $11,066,629 
(1) The Operating Partnership's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $41.2 million and $193.4 million of land, $41.0 million and $336.9 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $15.4 million of right of use assets, $4.4 million and $11.7 million of accumulated depreciation, $599.2 million and $574.4 million of other assets included in other line items, $49.8 million and $418.9 million of real estate debt, net, $0.2 million and $0.8 million of accrued interest payable, $— million and $15.3 million of lease liabilities, and $146.4 million and $145.2 million of other liabilities included in other line items as of December 31, 2022 and December 31, 2021, respectively.

  December 31, 2017 December 31, 2016
Capital    
SLGOP partners' capital:    
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both December 31, 2017 and 2016 221,932
 221,932
SL Green partners' capital (973 and 1,049 general partner common units, and 91,831 and 99,513 limited partner common units outstanding at December 31, 2017 and 2016, respectively) 5,984,557
 7,080,406
Accumulated other comprehensive income 18,604
 22,137
Total SLGOP partners' capital 6,225,093
 7,324,475
Noncontrolling interests in other partnerships 364,361
 426,436
Total capital 6,589,454
 7,750,911
Total liabilities and capital $13,982,904
 $15,857,787
     
     
(1) The Operating Partnership's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs: $398.0 million and $412.3 million of land, $1.4 billion and $1.5 billion of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $47.4 million and $47.4 million of properties under capital lease, $330.9 million and $327.2 million of accumulated depreciation, $221.0 million and $226.8 million of other assets included in other line items, $628.9 million and $621.8 million of real estate debt, net, $2.5 million and $2.2 million of accrued interest payable, $42.8 million and $42.1 million of capital lease obligations, and $56.8 million and $72.2 million of other liabilities included in other line items as of December 31, 2017 and December 31, 2016, respectively.



The accompanying notes are an integral part of these consolidated financial statements.

72
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SL Green Operating Partnership, L.P.
Consolidated Statements of Operations
(in thousands, except per unit data)





 Year Ended December 31,
 202220212020
Revenues
Rental revenue, net$671,500 $678,176 $804,423 
Investment income81,113 80,340 120,163 
Other income74,126 85,475 128,158 
Total revenues826,739 843,991 1,052,744 
Expenses
Operating expenses, including related party expenses of $5,701 in 2022, $12,377 in 2021 and $12,643 in 2020174,063 167,153 183,200 
Real estate taxes138,228 152,835 176,315 
Operating lease rent26,943 26,554 29,043 
Interest expense, net of interest income89,473 70,891 116,679 
Amortization of deferred financing costs7,817 11,424 11,794 
Depreciation and amortization215,306 216,869 313,668 
Loan loss and other investment reserves, net of recoveries— 2,931 35,298 
Transaction related costs409 3,773 503 
Marketing, general and administrative93,798 94,912 91,826 
Total expenses746,037 747,342 958,326 
Equity in net loss from unconsolidated joint ventures(57,958)(55,402)(25,195)
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate(131)(32,757)2,961 
Purchase price and other fair value adjustments(8,118)210,070 187,522 
(Loss) gain on sale of real estate, net(84,485)287,417 215,506 
Depreciable real estate reserves and impairments(6,313)(23,794)(60,454)
Loss on early extinguishment of debt— (1,551)— 
Net (loss) income(76,303)480,632 414,758 
Net loss (income) attributable to noncontrolling interests in other partnerships(1,122)1,884 (14,940)
Preferred unit distributions(6,443)(7,305)(8,747)
Net (loss) income attributable to SLGOP(83,868)475,211 391,071 
Perpetual preferred stock dividends(14,950)(14,950)(14,950)
Net (loss) income attributable to SLGOP common unitholders$(98,818)$460,261 $376,121 
Basic (loss) earnings per unit$(1.49)$6.57 $5.03 
Diluted (loss) earnings per unit$(1.49)$6.50 $5.01 
Basic weighted average common units outstanding67,929 69,727 74,493 
Diluted weighted average common units and common unit equivalents outstanding67,929 70,769 75,078 

  Year Ended December 31,
  2017 2016 2015
Revenues      
Rental revenue, net $1,100,993
 $1,323,767
 $1,245,981
Escalation and reimbursement 172,939
 196,858
 178,512
Investment income 193,871
 213,008
 181,128
Other income 43,670
 130,348
 57,208
Total revenues 1,511,473

1,863,981

1,662,829
Expenses      
Operating expenses, including $21,400 in 2017, $21,890 in 2016, $20,071 in 2015 of related party expenses 293,364
 312,859
 301,624
Real estate taxes 244,323
 248,388
 232,702
Ground rent 33,231
 33,261
 32,834
Interest expense, net of interest income 257,045
 321,199
 323,870
Amortization of deferred financing costs 16,498
 24,564
 27,348
Depreciation and amortization 403,320
 821,041
 560,887
Transaction related costs (1,834) 7,528
 11,430
Marketing, general and administrative 100,498
 99,759
 94,873
Total expenses 1,346,445
 1,868,599
 1,585,568
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, purchase price fair value adjustment, gain on sale of real estate, depreciable real estate reserves, gain (loss) on sale of marketable securities and loss on early extinguishment of debt 165,028
 (4,618) 77,261
Equity in net income from unconsolidated joint ventures 21,892
 11,874
 13,028
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 16,166
 44,009
 15,844
Purchase price fair value adjustment —
 —
 40,078
Gain on sale of real estate, net 73,241
 238,116
 175,974
Depreciable real estate reserves (178,520) (10,387) (19,226)
Gain (loss) on sale of investment in marketable securities 3,262
 (83) —
Loss on early extinguishment of debt —
 —
 (49)
Income from continuing operations 101,069
 278,911
 302,910
Net income from discontinued operations —
 —
 427
Gain on sale of discontinued operations —
 —
 14,122
Net income 101,069
 278,911
 317,459
Net (income) loss attributable to noncontrolling interests in other partnerships 15,701
 (7,644) (15,843)
Preferred unit distributions (11,401) (11,235) (6,967)
Net income attributable to SLGOP 105,369
 260,032
 294,649
Preferred stock redemption costs —
 —
 —
Perpetual preferred stock dividends (14,950) (14,950) (14,952)
Net income attributable to SLGOP common unitholders $90,419
 $245,082
 $279,697
       

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SL Green Operating Partnership, L.P.
Consolidated Statements of Operations
(in thousands, except per unit data)


  Year Ended December 31,
  2017 2016 2015
Amounts attributable to SLGOP common unitholders:      
Income (loss) from continuing operations before purchase price fair value adjustment, gains on sale and discontinued operations $179,532
 $(26,656) $52,478
Purchase price fair value adjustment —
 —
 40,078
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 16,166
 44,009
 15,844
Net income from discontinued operations —
 —
 427
Gain on sale of discontinued operations —
 —
 14,122
Gain on sale of real estate, net 73,241
 238,116
 175,974
Depreciable real estate reserves (178,520) (10,387) (19,226)
Net income attributable to SLGOP common unitholders
 $90,419
 $245,082
 $279,697
       
Basic earnings per unit:      
Income (loss) from continuing operations before gains on sale and discontinued operations $1.74
 $(0.26) $0.51
Purchase price fair value adjustment —
 —
 0.39
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 0.16
 0.42
 0.15
Net income from discontinued operations —
 —
 —
Gain on sale of discontinued operations —
 —
 0.14
Gain on sale of real estate, net 0.71
 2.29
 1.71
Depreciable real estate reserves (1.73) (0.10) (0.19)
Net income attributable to SLGOP common unitholders $0.88
 $2.35
 $2.71
Diluted earnings per unit:      
Income (loss) from continuing operations before gains on sale and discontinued operations $1.74
 $(0.25) $0.51
Purchase price fair value adjustment —
 —
 0.39
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 0.16
 0.42
 0.15
Net income from discontinued operations —
 —
 —
Gain on sale of discontinued operations —
 —
 0.14
Gain on sale of real estate, net 0.71
 2.27
 1.70
Depreciable real estate reserves (1.74) (0.10) (0.19)
Net income attributable to SLGOP common unitholders $0.87
 $2.34
 $2.70
Basic weighted average common units outstanding 103,127
 104,508
 103,244
Diluted weighted average common units and common unit equivalents outstanding 103,403
 104,881
 103,734



The accompanying notes are an integral part of these consolidated financial statements.



84
73

SL Green Operating Partnership, L.P.
Consolidated Statements of Comprehensive Income
(in thousands)
 Year Ended December 31,
 202220212020
Net (loss) income$(76,303)$480,632 $414,758 
Other comprehensive income (loss):
Increase (decrease) in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments103,629 21,427 (39,743)
(Decrease) increase in unrealized value of marketable securities(1,440)104 (1,318)
Other comprehensive income (loss)102,189 21,531 (41,061)
Comprehensive income25,886 502,163 373,697 
Net (income) loss attributable to noncontrolling interests(1,122)1,884 (14,940)
Other comprehensive (income) loss attributable to noncontrolling interests(5,827)(1,042)2,299 
Comprehensive income attributable to SLGOP$18,937 $503,005 $361,056 
  Year Ended December 31,
  2017 2016 2015
Net income $101,069
 $278,911
 $317,459
Other comprehensive income:      
Change in net unrealized gain (loss) on derivative instruments, including SLGOP's share of joint venture net unrealized gain (loss) on derivative instruments 1,040
 28,508
 (1,229)
Change in unrealized gain on marketable securities (4,667) 3,677
 (607)
Other comprehensive (loss) income (3,627) 32,185
 (1,836)
Comprehensive income 97,442
 311,096
 315,623
Net loss (income) attributable to noncontrolling interests 15,701
 (7,644) (15,843)
Other comprehensive income (loss) attributable noncontrolling interests 94
 (1,299) 67
Comprehensive income attributable to SLGOP $113,237
 $302,153
 $299,847




The accompanying notes are an integral part of these consolidated financial statements.



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SL Green Operating Partnership, L.P.
Consolidated StatementStatements of Capital
(in thousands, except per unit data)



 SL Green Operating Partnership Unitholders  
  Partners' Interest   
 Series I
Preferred
Units		Common
Units		Common
Unitholders		Accumulated
Other
Comprehensive Income (Loss)		Noncontrolling
Interests		Total
Balance at December 31, 2019$221,932 74,672 $5,247,868 $(28,485)$75,883 $5,517,198 
Cumulative adjustment upon adoption of ASC 326(39,184)(39,184)
Balance at January 1, 2020$221,932 74,672 $5,208,684 $(28,485)$75,883 $5,478,014 
Net income371,055 14,940 385,995 
Acquisition of subsidiary interest from noncontrolling interest(3,123)1,587 (1,536)
Other comprehensive loss(38,762)(38,762)
Preferred distributions(14,950)(14,950)
DRSPP proceeds16 1,006 1,006 
Conversion of common units95 8,744 8,744 
Reallocation of noncontrolling interests in the operating partnership32,598 32,598 
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings(33)25,271 25,271 
Repurchases of common units(8,276)(532,262)(532,262)
Contributions to consolidated joint venture interests12,477 12,477 
Cash distributions to noncontrolling interests(78,855)(78,855)
Cash distributions declared ($4.9374 per common unit, none of which represented a return of capital for federal income tax purposes)(341,945)(341,945)
Balance at December 31, 2020$221,932 66,474 $4,755,078 $(67,247)$26,032 $4,935,795 
Net income449,754 (1,884)447,870 
Other comprehensive income20,489 20,489 
Preferred distributions(14,950)(14,950)
DRSPP proceeds11 738 738 
Reallocation of noncontrolling interest in the operating partnership(9,851)(9,851)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings108 32,583 32,583 
Repurchases of common units(4,474)(337,624)(337,624)
Proceeds from stock options exercised12 818 818 
Contributions to consolidated joint venture interests336 336 
Sale of interest in partially owned entity(4,476)(4,476)
Cash distributions to noncontrolling interests(6,631)(6,631)
Issuance of special distribution paid in units1,974 123,529 123,529 
Cash distributions declared ($6.2729 per common unit, none of which represented a return of capital for federal income tax purposes)(410,373)(410,373)
Balance at December 31, 2021$221,932 64,105 $4,589,702 $(46,758)$13,377 $4,778,253 
Net loss(78,074)1,122 (76,952)
Acquisition of subsidiary interest from noncontrolling interest(29,742)(75)(29,817)
Other comprehensive income96,362 96,362 
Preferred distributions(14,950)(14,950)
DRSPP proceeds11 525 525 
Reallocation of noncontrolling interest in the operating partnership39,974 39,974 
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings274 32,034 32,034 
Repurchases of common units(1,971)(151,197)(151,197)
Contributions to consolidated joint venture interests52,164 52,164 
Cash distributions to noncontrolling interests(4,699)(4,699)
Issuance of special distribution paid in units1,961 160,620 160,620 
Cash distributions declared ($3.6896 per common unit, none of which represented a return of capital for federal income tax purposes)(235,395)(235,395)
Balance at December 31, 2022$221,932 64,380 $4,313,497 $49,604 $61,889 $4,646,922 

75
  SL Green Operating Partnership Unitholders    
    Partners' Interest      
  
Series I
Preferred
Units
 
Common
Units
 
Common
Unitholders
 Accumulated
Other
Comprehensive (Loss) Income		 
Noncontrolling
Interests
 Total
Balance at December 31, 2014 $221,932
 97,325
 $6,722,422
 $(6,980) $521,842
 $7,459,216
Net income     284,084
   15,843
 299,927
Acquisition of subsidiary interest from noncontrolling interest     (9,566)   (11,084) (20,650)
Other comprehensive (loss)       (1,769)   (1,769)
Preferred distributions     (14,952)     (14,952)
Conversion of common units   483
 55,697
     55,697
DRSPP proceeds   776
 99,555
     99,555
Reallocation of capital account relating to sale         (10,143) (10,143)
Reallocation of noncontrolling interests in the operating partnership     20,915
     20,915
Deferred compensation plan and stock award, net   168
 (2,982)     (2,982)
Amortization of deferred compensation plan     26,721
     26,721
Contribution to consolidated joint venture interests         35,178
 35,178
Contributions - net proceeds from common stock offering   1,007
 126,989
     126,989
Contributions - proceeds from stock options exercised   217
 16,362
     16,362
Cash distributions to noncontrolling interests         (119,784) (119,784)
Cash distributions declared ($2.52 per common unit, none of which represented a return of capital for federal income tax purposes)     (250,963)     (250,963)
Balance at December 31, 2015 221,932
 99,976
 7,074,282
 (8,749) 431,852
 7,719,317
Net income     249,896
   7,644
 257,540
Other comprehensive income       30,886
   30,886
Preferred distributions     (14,950)     (14,950)
DRSPP proceeds   2
 277
     277
Conversion of common units   295
 31,806
     31,806
Reallocation of noncontrolling interests in the operating partnership     (4,222)     (4,222)
Deferred compensation plan and stock award, net   96
 (1,988)     (1,988)
Amortization of deferred compensation plan     25,890
     25,890
Issuance of stock     (40)     (40)
Contribution to consolidated joint venture interests         2,359
 2,359
Contributions - proceeds from stock options exercised   193
 14,832
     14,832
Cash distributions to noncontrolling interests         (15,419) (15,419)
Cash distributions declared ($2.94 per common unit, none of which represented a return of capital for federal income tax purposes)     (295,377)     (295,377)
Balance at December 31, 2016 221,932

100,562

7,080,406

22,137

426,436

7,750,911
Net income (loss)     101,374
   (15,701) 85,673
Other comprehensive loss       (3,533)   (3,533)
Preferred dividends     (14,950)     (14,950)
DRSPP proceeds   2
 223
     223
Conversion of common units   202
 21,574
     21,574
Reallocation of noncontrolling interest in the Operating Partnership     5,712
     5,712
Equity component of repurchased exchangeable senior notes     (109,776)     (109,776)
Deferred compensation plan and stock award, net   87
 (2,374)     (2,374)
Amortization of deferred compensation plan     32,161
     32,161
Repurchases of common stock   (8,342) (848,048)     (848,048)
Proceeds from stock options exercised   292
 23,314
     23,314
Contributions to consolidated joint venture interests         36,275
 36,275
Deconsolidation of partially owned entity         (30,203) (30,203)
Cash distributions to noncontrolling interests         (52,446) (52,446)
Cash distributions declared ($3.1375 per common share, none of which represented a return of capital for federal income tax purposes)     (305,059)     (305,059)
Balance at December 31, 2017 $221,932
 92,803
 $5,984,557
 $18,604
 $364,361
 $6,589,454

86
Table of Contents


SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(in thousands)





 Year Ended December 31,
 202220212020
Operating Activities  
Net (loss) income$(76,303)$480,632 $414,758 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization223,123 228,293 325,462 
Equity in net loss from unconsolidated joint ventures57,958 55,402 25,195 
Distributions of cumulative earnings from unconsolidated joint ventures780 824 679 
Equity in net loss (gain) on sale of interest in unconsolidated joint venture interest/real estate131 32,757 (2,961)
Purchase price and other fair value adjustments8,118 (210,070)(187,522)
Depreciable real estate reserves and impairments6,313 23,794 60,454 
Loss (gain) on sale of real estate, net84,485 (287,417)(215,506)
Loan loss reserves and other investment reserves, net of recoveries— 2,931 35,298 
Loss on early extinguishment of debt— 1,551 — 
Deferred rents receivable(5,749)(6,701)(7,582)
Non-cash lease expense22,403 17,234 11,984 
Other non-cash adjustments(5,676)37,164 15,178 
Changes in operating assets and liabilities:
Tenant and other receivables14,370 (20,561)(17,074)
Related party receivables6,666 (8,727)1,451 
Deferred lease costs(21,792)(10,117)(20,900)
Other assets(27,343)20,345 (26,137)
Accounts payable, accrued expenses, other liabilities and security deposits(30,839)(66,387)132,171 
Deferred revenue18,332 (1,727)20,657 
Change in lease liability - operating leases1,111 (33,241)(11,369)
Net cash provided by operating activities276,088 255,979 554,236 
Investing Activities  
Acquisitions of real estate property$(64,491)$(152,791)$(86,846)
Additions to land, buildings and improvements(300,770)(302,486)(458,140)
Investments in unconsolidated joint ventures(184,518)(88,872)(70,315)
Distributions in excess of cumulative earnings from unconsolidated joint ventures141,742 770,604 124,572 
Net proceeds from disposition of real estate/joint venture interest626,364 651,594 1,112,382 
Cash and restricted cash assumed from acquisition of real estate investment60,494 — — 
Cash assumed from consolidation of real estate investment— 9,475 — 
Proceeds from sale or redemption of marketable securities15,626 4,528 — 
Purchases of marketable securities— (10,000)— 
Other investments1,432 40,200 32,479 
Origination of debt and preferred equity investments(51,367)(95,695)(360,953)
Repayments or redemption of debt and preferred equity investments181,293 167,024 763,251 
76
 Year Ended December 31,
 2017 2016 2015
Operating Activities     
Net income$101,069
 $278,911
 $317,459
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization419,818
 845,605
 588,238
Equity in net income from unconsolidated joint ventures(21,892) (11,874) (13,028)
Distributions of cumulative earnings from unconsolidated joint ventures20,309
 24,337
 40,759
Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate(16,166) (44,009) (15,844)
Purchase price fair value adjustment—
 —
 (40,078)
Depreciable real estate reserves178,520
 10,387
 19,226
Gain on sale of real estate, net(73,241) (238,116) (175,974)
Gain on sale of discontinued operations—
 —
 (14,122)
(Gain) loss on sale of investments in marketable securities(3,262) 83
 —
Loss on early extinguishment of debt—
 —
 49
Deferred rents receivable(38,009) 26,716
 (136,924)
Other non-cash adjustments (1)
17,196
 (150,913) (20,671)
Changes in operating assets and liabilities:     
Restricted cash—operations7,147
 (10,811) 11,289
Tenant and other receivables(5,717) 4,780
 (6,405)
Related party receivables(7,209) (5,183) 1,278
Deferred lease costs(41,939) (70,707) (61,005)
Other assets(23,068) 9,899
 18,501
Accounts payable, accrued expenses and other liabilities and security deposits(11,790) (35,628) 8,634
Deferred revenue and land leases payable46,607
 1,237
 5,102
Net cash provided by operating activities548,373
 634,714
 526,484
Investing Activities     
Acquisitions of real estate property(13,680) (37,760) (2,653,311)
Additions to land, buildings and improvements(335,253) (411,950) (406,442)
Escrowed cash—capital improvements/acquisition deposits/deferred purchase price(3,499) 92,374
 (101,000)
Investments in unconsolidated joint ventures(389,249) (84,456) (161,712)
Distributions in excess of cumulative earnings from unconsolidated joint ventures319,745
 196,211
 98,639
Net proceeds from disposition of real estate/joint venture interest639,682
 2,469,719
 1,216,785
Proceeds from sale of marketable securities55,129
 6,965
 1,426
Purchases of marketable securities—
 (43,341) (7,769)
Other investments25,330
 7,704
 (15,806)
Origination of debt and preferred equity investments(1,129,970) (977,413) (756,939)
Repayments or redemption of debt and preferred equity investments812,914
 904,517
 520,218
Net cash (used in) provided by investing activities(18,851) 2,122,570
 (2,265,911)
      

87


SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(in thousands)



 Year Ended December 31,
 202220212020
Net cash provided by investing activities425,805 993,581 1,056,430 
Financing Activities  
Proceeds from mortgages and other loans payable$381,980 $39,689 $1,181,892 
Repayments of mortgages and other loans payable(292,364)(375,044)(1,186,828)
Proceeds from revolving credit facility and senior unsecured notes1,524,000 1,488,000 1,495,000 
Repayments of revolving credit facility and senior unsecured notes(1,864,000)(1,808,000)(1,875,000)
Proceeds from stock options exercised and DRSPP issuance525 1,556 1,006 
Repurchase of common units(151,197)(341,403)(528,483)
Redemption of preferred units(17,967)(6,040)(82,750)
Redemption of OP units(40,901)(25,703)(27,342)
Distributions to noncontrolling interests in other partnerships(4,699)(6,631)(85,468)
Contributions from noncontrolling interests in other partnerships52,164 336 12,477 
Acquisition of subsidiary interest from noncontrolling interest(29,817)— (1,536)
Distributions paid on common and preferred units(278,408)(286,824)(306,648)
Other obligation related to secured borrowing77,874 51,862 — 
Tax withholdings related to restricted share awards(3,915)(2,990)(4,752)
Deferred loan costs(8,098)(13,745)(70,036)
Principal payments of on financing lease liabilities— (434)(833)
Net cash used in financing activities(654,823)(1,285,371)(1,479,301)
Net increase (decrease) in cash, cash equivalents, and restricted cash47,070 (35,811)131,365 
Cash, cash equivalents, and restricted cash at beginning of year336,984 372,795 241,430 
Cash, cash equivalents, and restricted cash at end of period$384,054 $336,984 $372,795 
Supplemental cash flow disclosures:   
Interest paid$169,519 $152,773 $201,348 
Income taxes paid$5,358 $4,405 $2,296 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Conversion of units in the Operating Partnership$— $— $8,744 
Redemption of units in the Operating Partnership for a joint venture sale— 27,586 — 
Exchange of preferred equity investment for real estate or equity in joint venture190,652 — 119,497 
Exchange of debt investment for real estate or equity in joint venture193,995 9,468 122,796 
Assumption of mortgage and mezzanine loans1,712,750 60,000 — 
Issuance of special distribution paid in units160,620 121,418 — 
Tenant improvements and capital expenditures payable18,518 7,580 1,665 
Fair value adjustment to noncontrolling interest in the Operating Partnership39,974 9,851 32,598 
Investment in joint venture47,135 — — 
Deconsolidation of a subsidiary— 66,837 854,437 
Deconsolidation of a subsidiary mortgage— 510,000 5,593 
Mortgages assumed in connection with sale of real estate— — 250,000 
Seller financed purchases— — 100,000 
Debt and preferred equity investments302 8,372 9,014 
Transfer of assets related to assets held for sale— 140,855 — 
77
  Year Ended December 31,
  2017 2016 2015
 Financing Activities     
 Proceeds from mortgages and other loans payable$870,459
 $408,293
 $1,849,293
 Repayments of mortgages and other loans payable(902,460) (1,822,303) (781,236)
 Proceeds from revolving credit facility, term loans and senior unsecured notes
2,784,599
 1,325,300
 2,515,000
 Repayments of revolving credit facility, term loans and senior unsecured notes(2,276,782) (2,334,604) (1,706,007)
 Payments of debt extinguishment costs—
 —
 —
 Proceeds from stock options exercised and DRSPP issuance23,537
 15,109
 115,917
 Net proceeds from sale of common stock—
 —
 124,761
 Repurchase of common stock(806,302) —
 —
 Redemption of preferred units(275) (3,299) (200)
 Distributions to noncontrolling interests in other partnerships(52,446) (15,419) (119,784)
 Contributions from noncontrolling interests in other partnerships36,275
 2,359
 12,674
 Distributions paid on common and preferred units(347,809) (326,750) (267,088)
 Other obligations related to mortgage loan participations17,227
 59,150
 25,000
 Deferred loan costs and capitalized lease obligation(27,100) (41,076) (54,913)
 Net cash (used in) provided by financing activities(681,077) (2,733,240) 1,713,417
 Net (decrease) increase in cash and cash equivalents(151,555) 24,044
 (26,010)
 Cash and cash equivalents at beginning of year279,443
 255,399
 281,409
 Cash and cash equivalents at end of period$127,888
 $279,443
 $255,399
       
 
(1) Included in Other non-cash adjustments is $172.4 million for the year ended December 31, 2016 for the amortization of the below-market lease at 388-390 Greenwich Street as a result of the tenant exercising their option to purchase the property and entering into an agreement to accelerate the sale.
 
 Supplemental cash flow disclosures: 
  
  
 Interest paid$273,819
 $344,295
 $345,110
 Income taxes paid$2,448
 $2,009
 $3,882
       
 Supplemental Disclosure of Non-Cash Investing and Financing Activities:     
 Issuance of units in the operating partnership25,723
 78,495
 30,506
 Redemption of units in the operating partnership21,574
 31,806
 55,697
 Derivative instruments at fair value4,397
 31,826
 1,816
 Exchange of debt investment for equity in joint venture—
 68,581
 10,151
 Acquisition of subsidiary interest from noncontrolling interest—
 —
 20,630
 Issuance of common stock relating to the real estate acquisition—
 —
 2,228
 Issuance of preferred units relating to the real estate acquisition—
 22,793
 211,601
 Tenant improvements and capital expenditures payable6,667
 15,972
 7,755
 Fair value adjustment to noncontrolling interest in the operating partnership5,712
 4,222
 20,915
 Assumption of mortgage loan—
 —
 112,795
 Capital lease assets—
 —
 20,000
 Reclassification of development costs from other assets to real estate—
 —
 47,519
 
Deconsolidation of a subsidiary (1)
695,204
 1,226,425
 27,435
 Transfer of assets to assets held for sale611,809
 2,048,376
 34,981
 Transfer of liabilities related to assets held for sale5,364
 1,677,528
 29,000
 Consolidation of real estate investment—
 —
 158,566
 Removal of fully depreciated commercial real estate properties15,488
 31,474
 241,910
 Issuance of SLG's common stock to a consolidated joint venture—
 114,049
 10,000

88


SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(in thousands)



 Year Ended December 31,
 2017 2016 2015
Contribution to consolidated joint venture by noncontrolling interest—
 —
 22,504
Share repurchase payable41,746
 —
 —
      
(1) $366.6 million of the 2017 amount relates to 1515 Broadway. In November 2017, the Company sold a 30.13% interest in 1515 Broadway to affiliates of Allianz Real Estate. The sale did not meet the criteria for sale accounting and as a result the property was accounted for under the profit sharing method. The Company achieved sale accounting upon adoption of ASC 610-20 in January 2018 and closed on the sale of an additional 12.87% interest in the property to Allianz in February 2018. See Note 6, "Investments in Unconsolidated Joint Ventures.".
 Year Ended December 31,
 202220212020
Reversal of assets held for sale— — 391,664 
Transfer of liabilities related to assets held for sale— 64,120 — 
Extinguishment of debt in connection with property dispositions— 53,548 — 
Consolidation of real estate investment— 119,444 — 
Removal of fully depreciated commercial real estate properties30,359 19,831 66,169 
Sale of interest in partially owned entity— 4,476 — 
Distributions to noncontrolling interests— 358 6,613 
Share repurchase payable— — 3,779 
Recognition of sales-type leases and related lease liabilities— — 119,725 
Recognition of right of use assets and related lease liabilities57,938 537,344 61,990 
In December 2017, 20162022, the Company declared a regular monthly distribution per share of $0.2708. This distribution was paid in January 2023. In December 2021, the Company declared a regular monthly distribution per share of $0.3108 that was paid in cash and 2015, SLGOP declared quarterly distributionsa special distribution per common unitshare of $0.8125, $0.775 and $0.72, respectively.$2.4392 that was paid entirely in stock. These distributions were paid in January 2018, 20172022. In December 2020, the Company declared a regular monthly distribution per share of $0.3217 that was paid in cash and 2016, respectively.a special distribution per share of $1.7996 that was paid entirely in stock. These distributions were paid in January 2021.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
Year Ended
 202220212020
Cash and cash equivalents$203,273 $251,417 $266,059 
Restricted cash180,781 85,567 106,736 
Total cash, cash equivalents, and restricted cash$384,054 $336,984 $372,795 
The accompanying notes are an integral part of these consolidated financial statements.



89
78

SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements
December 31, 20172022



1. Organization and Basis of Presentation
SL Green Realty Corp., which is referred to as the Company or SL Green, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Operating Partnership received a contribution of interest in the real estate properties, as well as 95% of the economic interest in the management, leasing and construction companies which are referred to as S.L. Green Management Corp, or the Service Corporation. All of the management, leasing and construction services that are provided to the properties that are wholly-owned by us and that are provided to certain joint ventures are conducted through SL Green Management LLC and S.L. Green Management Corp., respectively, which isare 100% owned by the Operating Partnership. The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT. A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to minimize the payment of Federal income taxes at the corporate level. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. The Company is the sole managing general partner of the Operating Partnership. As of December 31, 2017,2022, noncontrolling investors held, in the aggregate, a 4.58%5.39% limited partnership interest in the Operating Partnership. We refer to these interests as the noncontrolling interests in the Operating Partnership. The Operating Partnership is considered a variable interest entity, or VIE, in which we are the primary beneficiary. See Note 11, "Noncontrolling Interests on the Company's Consolidated Financial Statements."
Reckson Associates Realty Corp., or Reckson, and Reckson Operating Partnership, L.P., or ROP, are wholly-owned subsidiaries of SL Green Realty Corp.
As of On December 31, 2017,2022, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:
ConsolidatedUnconsolidatedTotal
LocationProperty
Type		Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)
Weighted Average Occupancy(1) (unaudited)
Commercial:
ManhattanOffice13 9,963,138 12 13,998,381 25 23,961,519 90.7 %
Retail2 17,888 9 301,996 11 319,884 91.2 %
Development/Redevelopment(1)5 1,685,215 3 2,746,241 8 4,431,456 N/A
20 11,666,241 24 17,046,618 44 28,712,859 90.7 %
SuburbanOffice7 862,800 — — 7 862,800 79.3 %
Total commercial properties27 12,529,041 24 17,046,618 51 29,575,659 90.3 %
Residential:
ManhattanResidential(2)1 140,382 — — 1 140,382 89.5 %
Total portfolio28 12,669,423 24 17,046,618 52 29,716,041 90.3 %
(1)The weighted average occupancy for commercial properties represents the total occupied square footage divided by the total square footage at acquisition.  The weighted average occupancy for residential properties represents the total occupied units divided by the total available units. Properties under construction are not included in the calculation of weighted average occupancy.
(2)As of December 31, 2022, we owned a building at 7 Dey Street / 185 Broadway that was comprised of approximately 140,382 square feet (unaudited) of residential space and approximately 50,206 square feet (unaudited) of office and retail space that is under development. For the purpose of this report, we have included this building in the number of residential properties we own. However, we have included only the residential square footage in the residential approximate square footage, and have listed the balance of the square footage as development square footage.
79
    Consolidated Unconsolidated Total  
Location 
Property
Type
 Number of Properties Approximate Square Feet (unaudited) Number of Properties Approximate Square Feet (unaudited) Number of Properties Approximate Square Feet (unaudited) 
Weighted Average Occupancy(1) (unaudited)
Commercial:              
Manhattan Office 23
(2)14,304,606
 9
 10,356,864
 32
 24,661,470
 93.9%
  Retail 4
(3)302,583
 9
 347,970
 13
 650,553
 94.5%
  Development/Redevelopment 7
 158,985
 4
 770,514
 11
 929,499
 63.8%
  Fee Interest 1
 176,530
 1
 —
 2
 176,530
 100.0%
    35
 14,942,704
 23
 11,475,348
 58
 26,418,052
 92.9%
Suburban Office 20
(4)3,013,200
 2
 640,000
 22
 3,653,200
 84.0%
  Retail 1
 52,000
 —
 —
 1
 52,000
 100.0%
  Development/Redevelopment 1
 1,000
 1

—
 2
 1,000
 100.0%
    22
 3,066,200
 3
 640,000
 25
 3,706,200
 84.3%
Total commercial properties 57
 18,008,904
 26
 12,115,348
 83
 30,124,252
 91.8%
Residential:                
Manhattan Residential 3
(3)472,105
 12
 2,656,856
 15
 3,128,961
 87.6%
Suburban Residential —
 —
 —
 —
 —
 —
 —%
Total residential properties 3
 472,105
 12
 2,656,856
 15
 3,128,961
 87.6%
Total portfolio 60
 18,481,009
 38
 14,772,204
 98
 33,253,213
 91.4%
(1)The weighted average occupancy for commercial properties represents the total occupied square feet divided by total square footage at acquisition.  The weighted average occupancy for residential properties represents the total occupied units divided by total available units.
(2)Includes the property at 600 Lexington Avenue in New York, New York which is classified as held for sale at December 31, 2017.

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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

(3)As of December 31, 2017, we owned a building that was comprised of approximately 270,132 square feet (unaudited) of retail space and approximately 222,855 square feet (unaudited) of residential space. For the purpose of this report, we have included the building in the number of retail properties we own. However, we have included only the retail square footage in the retail approximate square footage, and have listed the balance of the square footage as residential square footage.
(4)Includes the properties at 115-117 Stevens Avenue in Valhalla, New York, and 1-6 International Drive in Rye Brook, New York which are classified as held for sale at December 31, 2017.
As of December 31, 2017,2022, we also managed an approximately 336,000 square foot (unaudited)one office building owned by a third party encompassing approximately 0.3 million square feet (unaudited), and held debt and preferred equity investments with a book value of $2.3 billion, including $0.2 billion of$623.3 million, excluding debt and preferred equity investments and other financing receivables totaling $8.5 million that are included in balance sheet line items other than the Debt and Preferred Equity Investmentspreferred equity investments line item.
Partnership Agreement
In accordance with the partnership agreement of the Operating Partnership, or the Operating Partnership Agreement, we allocate all distributions and profits and losses in proportion to the percentage of ownership interests of the respective partners.partners, subject to the priority distributions with respect to preferred units and special provisions that apply to Long Term Incentive Plan ("LTIP") Units. As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to minimize any Federal income or excise tax at the Company level. Under the Operating Partnership Agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of ourSL Green's common stock on a one-for-one basis.
2. Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method. See Note 5, "Debt and Preferred Equity Investments" and Note 6, "Investments in Unconsolidated Joint Ventures." All significant intercompany balances and transactions have been eliminated.
We consolidate a variable interest entity, or VIE in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.
A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to us. Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and the presentation of net income is modified to present earnings and other comprehensive income attributed to controlling and noncontrolling interests.
We assess the accounting treatment for each joint venture and debt and preferred equity investment. This assessment includes a review of each joint venture or limited liability company agreement to determine the rights provided to each party and whether those rights are protective or participating. For all VIEs, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity's economic performance. In situations where we and our partner approve, among other things, the annual budget, receive a detailed monthly reporting package, meet on a quarterly basis to review the results of the joint venture, review and approve the joint venture's tax return before filing, and approve all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of the joint venture. Our joint venture agreements typically contain certain protective rights such as requiring partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.
In January 2018, the partnership agreement for our investment in the property at 919 Third Avenue was modified resulting in our partner now having substantive participating rights in the venture. As a result the investment will no longer be deemed a VIE and our investment in the property will be deconsolidated as of January 1, 2018. The Company will record its non-controlling interest at fair value. This fair value will be allocated to the assets and liabilities, including identified intangibles. Under this methodology, the leases are ascribed an in-place lease intangible value as well as an above or below market lease intangible value which will be amortized over the remaining term of the associated leases.

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

Investment in Commercial Real Estate Properties
Real estate properties are presented at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of properties are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.
We recognize the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests in an acquired entity at their respective fair values on the acquisition date. When we acquire our partner's equity interest in an existing unconsolidated joint venture and gain control over the investment, we record the consolidated investment at fair value. The difference between the book value of our equity investment on the purchase date and our share of the fair value of the investment's purchase price is recorded as a purchase price fair value adjustment in our consolidated statements of operations. See Note 3, "Property Acquisitions."
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
We allocate the purchase price of real estate to land and building (inclusive of tenant improvements) and, if determined to be material, intangibles, such as the value of above- and below-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building (inclusive of tenant improvements) over their estimated useful lives, which generally range from three3 years to 40 years. We amortize the amount allocated to the above- and below-market leases over the remaining term of the associated lease, which generally range from one1 year to 1415 years, and record it as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income. We amortize the amount allocated to the values associated with in-place leases over the expected term of the associated lease, which generally ranges from one1 year to 1415 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period. As of December 31, 2017,2022, the weighted average amortization period for above-market leases, below-market leases, and in-place lease costs is 6.06.3 years, 23.37.4 years, and 16.38.1 years, respectively.
The Company classifies those leases under which the Company is the lessee at lease commencement as finance or operating leases. Leases qualify as finance leases if the lease transfers ownership of the asset at the end of the lease term, the lease grants an option to purchase the asset that we are reasonably certain to exercise, the lease term is for a major part of the remaining economic life of the asset, or the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. At lease commencement the Company records a lease liability which is measured as the present value of the lease payments and a right of use asset which is measured as the amount of the lease liability and any initial direct costs incurred. The Company applies a discount rate to determine the present value of the lease payments. If the rate implicit in the lease is known, the Company uses that rate. If the rate implicit in the lease is not known, the Company uses a discount rate reflective of the Company’s collateralized borrowing rate given the term of the lease. To determine the discount rate, the Company employs a third party specialist to develop an analysis based primarily on the observable borrowing rates of the Company, other REITs, and other corporate borrowers with long-term borrowings. On the consolidated statements of operations, operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense. When applicable, the Company combines the consideration for lease and non-lease components in the calculation of the value of the lease obligation and right-of-use asset.
We incur a variety of costs in the development and leasing of our properties. After the determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include, but are not limited to, pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year after major construction activity ceases. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction.
Properties other than Right of use assets - operating leases are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:
CategoryTerm
Building (fee ownership)40 years
Building improvementsshorter of remaining life of the building or useful life
Building (leasehold interest)lesser of 40 years or remaining term of the lease
Property under capital leaseRight of use assets - financing leaseslesser of 40 years or remaining lease term
Furniture and fixturesfour4 to seven7 years
Tenant improvementsshorter of remaining term of the lease or useful life
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Right of use assets - operating leases are amortized over the remaining lease term. The amortization is made up of the principal amortization under the lease liability plus or minus the straight-line adjustment of the operating lease rent under ASC 842.
Depreciation expense (including amortization of capital lease assets)right of use assets - financing leases) totaled $365.3$190.1 million, $783.5$187.3 million, and $523.8$277.5 million for the years ended December 31, 2017, 20162022, 2021 and 2015,2020, respectively.
On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be other than temporarily impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

estimate of the aggregate future cash flows (undiscounted) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property.
property as calculated in accordance with Accounting Standards Codification, or ASC 820. We also evaluate our real estate properties for impairment when a property has been classified as held for sale. Real estate assets held for sale are valued at the lower of their carrying value or fair value less costs to sell and depreciation expense is no longer recorded. See Note 4, "Properties Held
For the years ended December 31, 2022 and 2020, we recognized $5.7 million and $5.9 million, respectively, of rental revenue for Salethe amortization of aggregate below-market leases in excess of above-market leases resulting from the allocation of the purchase price of the applicable properties. For the year ended December 31, 2021, we recognized a reduction of rental revenue of ($4.2 million) for the amortization of aggregate above-market leases in excess of below-market leases.
The following summarizes our identified intangible assets (acquired above-market leases and Dispositions."in-place leases) and intangible liabilities (acquired below-market leases) as of December 31, 2022 and 2021 (in thousands):
December 31,
20222021
Identified intangible assets (included in other assets):
Gross amount$403,552 $199,722 
Accumulated amortization(190,066)(182,643)
Net (1)
$213,486 $17,079 
Identified intangible liabilities (included in deferred revenue):
Gross amount$361,338 $212,767 
Accumulated amortization(212,191)(210,262)
Net (1)
$149,147 $2,505 
(1)    As of December 31, 2022, no net intangible assets and no net intangible liabilities were reclassified to assets held for sale and liabilities related to assets held for sale. As of December 31, 2021, $1.8 million of net intangible assets and no net intangible liabilities were reclassified to assets held for sale and liabilities related to assets held for sale.

The estimated annual amortization of acquired above-market leases, net of acquired (below-market) leases (a component of rental revenue), for each of the five succeeding years is as follows (in thousands):    
2023$(23,580)
2024(14,878)
2025(14,760)
2026(11,775)
2027(11,029)
The estimated annual amortization of all other identifiable assets (a component of depreciation and amortization expense) including tenant improvements for each of the five succeeding years is as follows (in thousands):
2023$65,130 
202438,982 
202537,298 
202631,381 
202725,058 
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Cash and Cash Equivalents
We consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.
Restricted Cash
Restricted cash primarily consists of security deposits held on behalf of our tenants, interest reserves, as well as capital improvement and real estate tax escrows required under certain loan agreements.
Fair Value Measurements
See Note 16, "Fair Value Measurements."
Investment in Marketable Securities
At acquisition, we designate a debt security as held-to-maturity, available-for-sale, or trading. As of December 31, 2017,2022, we did not have any debt securities designated as held-to-maturity or trading. We account for our available-for-sale securities at fair value pursuant to Accounting Standards Codification, or ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive income or loss. Any unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component.
The cost of bonds and marketable securities sold and the amount reclassified out of accumulated other comprehensive income (loss) into earnings is determined using the specific identification method. Credit losses are recognized in accordance with ASC 326. We account for our equity marketable securities at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported in net income.
AtAs of December 31, 20172022 and 2016,2021, we held the following marketable securities (in thousands):
December 31,
December 31,20222021
2017 2016
Equity marketable securities$—
 $48,315
Commercial mortgage-backed securities28,579
 36,795
Commercial mortgage-backed securities$11,240 $24,146 
Total marketable securities available-for-sale$28,579
 $85,110
Total marketable securities available-for-sale$11,240 $24,146 
Equity marketable securitiesEquity marketable securities$— $10,606 
Total investment in marketable securitiesTotal investment in marketable securities$11,240 $34,752 
The cost basis of the commercial mortgage-backed securities was $27.5$11.5 million and $36.0$23.0 million atas of December 31, 20172022 and 2016,2021, respectively. These securities mature at various times through 2035. 2030. All securities were in an unrealized loss position as of December 31, 2022 with an unrealized loss of $0.3 million and fair market value of $11.2 million. The securities were in a continuous loss position for less than 12 months. All securities were in an unrealized gain position as of December 31, 2021 except for one security, which had an unrealized loss of $0.6 million and a fair market value of $7.2 million, and was in a continuous unrealized loss position for more than 12 months. This marketable security was sold at par during the year ended December 31, 2022. We do not intend to sell our other securities, and it is more likely than not that we will not be required to sell the investment before the recovery of their amortized cost basis.
During the year ended December 31, 2022, we received aggregate net proceeds of $7.8 million from the sale of one debt marketable security and $3.7 million from the repayment of one debt marketable security. During the year ended December 31, 2021, we received aggregate net proceeds of $4.5 million from the repayment of one debt marketable security. During the year ended December 31, 2020, we did not dispose of any debt marketable securities.
We held no equity marketable securities as of December 31, 2017. The cost basis of2022 as we sold the one equity marketable securitiessecurity that was $43.3 million atheld as of December 31, 2016.
During2021 during the year ended December 31, 2017,2022, for which we disposed of marketable securities forreceived aggregate net proceeds of $55.1 million and realized a gain$4.2 million. We did not dispose of $3.3 million, which is included in gain (loss) on sale of investment inany equity marketable securities on the consolidated statements of operations.
Duringduring the year ended December 31, 2016, we disposed2021. We recognized $6.5 million of marketable securitiesrealized losses and $0.6 million of unrealized gains for aggregate net proceedsthe years ended December 31, 2022 and 2021, respectively.

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SL Green Realty Corp. and realized a loss of $0.1 million, which is included in gain (loss) on sale of investment in marketable securities on the consolidated statements of operations.SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Investments in Unconsolidated Joint Ventures
We account for our investments in unconsolidated joint ventures under the equity method of accounting in cases where we exercise significant influence over, but do not control, these entities and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are VIEsvariable interest entities (each, a "VIE") and where we are considered to be the primary beneficiary. In all these joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Equity in net income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in each joint venture.venture and includes adjustments related to basis differences in accounting for the investment. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest.

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. NoneWe generally finance our joint ventures with non-recourse debt. In certain cases we may provide guarantees or master leases, which terminate upon the satisfaction of specified circumstances or repayment of the joint venture debt is recourse to us. The Company has performance guarantees under master leases at two joint ventures. See Note 6, "Investments in Unconsolidated Joint Ventures."underlying loans.
We assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on theeach joint ventures' actual and projected discounted cash flows. We do not believe that the values of any of our equity investments were impaired at December 31, 2017.2022.
We may originate loans for real estate acquisition, development and construction ("ADC loans"), where we expect to receive some of the residual profit from such projects. When the risk and rewards of these arrangements are essentially the same as an investor or joint venture partner, we account for these arrangements as real estate investments under the equity method of accounting for investments. Otherwise, we account for these arrangements consistent with the accounting for our debt and preferred equity investments.
Deferred Lease Costs
Deferred lease costs consist of incremental fees and direct costs that would not have been incurred to execute operating leasesif the lease had not been obtained and are amortized on a straight-line basis over the related lease term. Certain of our employees provide leasing services to the wholly-owned properties. For the years ended December 31, 2017, 20162022, 2021 and 2015, $16.42020, $6.6 million, $15.4$6.2 million, and $15.4$5.4 million of their compensation, respectively, was capitalized and is amortized over an estimated average lease term of seven years.
Deferred Financing Costs
Deferred financing costs represent commitment fees, legal, title and other third party costs associated with obtaining commitments for financing which result in a closing of such financing. These costs are amortized over the terms of the respective agreements. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not close. Deferred debt issuancefinancing costs related to a recognized debt liability are presented in the consolidated balance sheet as a direct deduction from the carrying amount of that debt liability.
Lease Classification
Lease classification for leases under which the Company is the lessor is evaluated at lease commencement and leases not classified as sales-type leases or direct financing leases are classified as operating leases. Leases qualify as sales-type leases if the contract includes either transfer of ownership clauses, certain purchase options, a lease term representing a major part of the economic life of the asset, or the present value of the lease payments and residual guarantees provided by the lessee exceeds substantially all of the fair value of the asset. Additionally, leasing an asset so specialized that it is not deemed to have any value to the Company at the end of the lease term may also result in classification as a sales-type lease. Leases qualify as direct financing leases when the present value of the lease payments and residual value guarantees provided by the lessee and unrelated third parties exceeds substantially all of the fair value of the asset and collection of the payments is probable.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Revenue Recognition
Rental revenue for operating leases is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. In order for the tenant to take possession, the leased space must be substantially readyis available for its intended use. use by the lessee.
To determine whether the leased space is substantially readyavailable for its intended use by the lessee, management evaluates whether we are or the tenant isare the owner of tenant improvements for accounting purposes. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner (the tenant is the owner) of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space. When management concludes that we are the owner of tenant improvements for accounting purposes, we record amounts funded to construct the tenant improvements as a capital asset. For these tenant improvements, we record amounts reimbursed by tenants as a reduction of the capital asset. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, we record our contribution towards those improvements as a lease incentive, which is included in deferred costs, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease.
The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the consolidated balance sheets. We establish, on a current basis, an allowance for future potential tenant credit losses, which may occur against this account. The balance reflected on the consolidated balance sheets is net of such allowance.
In addition to base rent, our tenants also generally will pay variable rent which represents their pro rata share of increases in real estate taxes and certain operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in certain building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) are typically provided at no additional cost, with the tenant paying additional rent only for services which exceed base

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

building services or for services which are provided outside normal business hours. These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year.
WeRental revenue is recognized $20.3 million, $196.2 million,if collectability is probable. If collectability of substantially all of the lease payments is assessed as not probable, any difference between the rental revenue recognized to date and $38.7 millionthe lease payments that have been collected is recognized as a current-period adjustment to rental revenue. A subsequent change in the assessment of collectability to probable may result in a current-period adjustment to rental revenue for any difference between the years ended December 31, 2017, 2016, and 2015 respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties. Included in rental revenue that would have been recognized if collectability had always been assessed as probable and the rental revenue recognized to date.
The Company provides its tenants with certain customary services for lease contracts such as common area maintenance and general security. We have elected to combine the year ended December 31, 2016 is $172.4 million related tonon-lease components with the amortizationlease components of below-market leases at 388-390 Greenwich Streetour operating lease agreements and account for them as a result of the tenant exercising their option to purchase the property and entering into an agreement to accelerate the sale.
We recognized as a reduction to interest expense the amortization of the above-market rate mortgages assumed of $0.8 million, $2.8 million, and $2.3 million for the years ended December 31, 2017, 2016 and 2015, respectively.
The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of December 31, 2017 and 2016 (in thousands):
 December 31,
 2017 2016
Identified intangible assets (included in other assets):   
Gross amount$325,880
 $651,099
Accumulated amortization(277,038) (410,930)
Net(1)
$48,842
 $240,169
Identified intangible liabilities (included in deferred revenue):   
Gross amount$540,283
 $655,930
Accumulated amortization(402,583) (464,749)
Net(1)
$137,700
 $191,181
(1)As of December 31, 2017, $13.9 million net intangible assets and $4.1 million net intangible liabilities were reclassified to assets held for sale and liabilities related to assets held for sale.

The estimated annual amortization of acquired above-market leases, net of acquired (below-market) leases (asingle lease component of rental revenue), for each of the five succeeding years is as follows (in thousands):
2018 $(13,853)
2019 (13,250)
2020 (12,432)
2021 (3,950)
2022 (3,647)
The estimated annual amortization of all other identifiable assets (a component of depreciation and amortization expense) including tenant improvements for each of the five succeeding years is as follows (in thousands):
2018 $9,700
2019 7,716
2020 6,783
2021 3,927
2022 2,365
in accordance with ASC 842.
We record a gain or loss on sale of real estate assets when title is conveyed towe no longer have a controlling financial interest in the buyer, subject toentity owning the buyer's financial commitment being sufficient to provide economic substance toreal estate, a contract exists with a third party and that third party has control of the sale and provided that we have no substantial economic involvement with the buyer.assets acquired.
InterestInvestment income on debt and preferred equity investments is accrued based on the contractual terms of the instruments and when in the opinion of management, it is deemed collectible. Some debt and preferred equity investments provide for accrual of

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest is ultimately collectible, based on the underlying collateral and operations of the borrower.collectible. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.
Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as an adjustment to interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cash flows through the expected maturity date of the related investment. If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt investments acquired at a discount for credit quality, the difference between contractual cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which is expected, are also recognized over the term of the loan as an adjustment to yield.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
We consider a debt and preferred equity investment to be past due when amounts contractually due have not been paid. Debt and preferred equity investments are placed on a non-accrual status at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of interest income becomes doubtful. Interest income recognition is resumed on any non-accrual debt or preferred equity investment that is resumedon non-accrual status when such non-accrual debt or preferred equity investment becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received.
We may syndicate a portion of the loans that we originate or sell the loans individually. When a transaction meets the criteria for sale accounting, we derecognize the loan sold and recognize gain or loss based on the difference between the sales price and the carrying value of the loan sold. Any related unamortized deferred origination fees, original issue discounts, loan origination costs, discounts or premiums at the time of sale are recognized as an adjustment to the gain or loss on sale, which is included in investment income on the consolidated statement of operations. Any fees received at the time of sale or syndication are recognized as part of investment income.
Asset management fees are recognized on a straight-line basis over the term of the asset management agreement.
Allowance for Doubtful AccountsDebt and Preferred Equity Investments
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our tenants to make required payments. If the financial condition of a specific tenant were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required.
Reserve for Possible Credit Losses
The expense for possible credit losses in connection with debtDebt and preferred equity investments are presented at the net amount expected to be collected in accordance with ASC 326. An allowance for loan losses is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected through the expected maturity date of such investments. The expense for loan loss and other investment reserves is the charge to earnings to increaseadjust the allowance for possible creditloan losses to the level thatappropriate level. Amounts are written off from the allowance when we estimatede-recognize the related investment either as a result of a sale of the investment or acquisition of equity interests in the collateral.
The Company evaluates the amount expected to be adequate,collected based on Level 3current market and economic conditions, historical loss information, and reasonable and supportable forecasts. The Company's assumptions are derived from both internal data considering delinquencies, loss experience and collateral quality. Other factors consideredexternal data which may include, geographic trends, product diversification,among others, governmental economic projections for the sizeNew York City Metropolitan area, public data on recent transactions and filings for securitized debt instruments. This information is aggregated by asset class and adjusted for duration. Based on these inputs, loans are evaluated at the individual asset level. In certain instances, we may also use a probability-weighted model that considers the likelihood of multiple outcomes and the amount expected to be collected for each outcome.
The evaluation of the portfolio and current economic conditions. Based upon these factors, we establish a provision for possible credit loss on each individual investment. When it is probable that we will be unable to collect all amounts contractually due,deterioration associated with the investment is considered impaired.
Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the fairperformance and/or value of the collateral. Any deficiency betweenunderlying collateral property as well as the carrying amount of an assetfinancial and the calculated valueoperating capability of the collateralborrower/sponsor requires significant judgment, which include both asset level and market assumptions over the relevant time period.
In addition, quarterly, the Company assigns each loan a risk rating. Based on a 3-point scale, loans are rated “1” through “3,” from lower risk to higher risk, which ratings are defined as follows: 1 - Low Risk Assets - Low probability of loss, 2 - Watch List Assets - Higher potential for loss, 3 - High Risk Assets - Loss more likely than not. Loans with risk ratings of 2 or above are evaluated to determine whether the expected risk of loss is chargedappropriately captured through the combination of our expectations of current conditions, historical loss information and supportable forecasts described above or whether risk characteristics specific to expense. We continue to assess or adjust our estimates based on circumstancesthe loan warrant the use of a loan and the underlying collateral. If additional information reflects increased recovery of our investment, we will adjust our reserves accordingly. There were no loan reserves recorded during the years ended December 31, 2017, 2016, and 2015.probability-weighted model.
Debt and preferred equityFinancing investments that are classified as held for sale are carried at the lower of costexpected amount to be collected or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its expected amount to be collected.
Other financing receivables that are included in balance sheet line items other than the Debt and preferred equity investments line are also measured at the net carrying valueamount expected to be collected.
Accrued interest receivable amounts related to these debt and preferred equity investments held to maturity. For these reclassified investments,investment and other financing receivables are recorded at the difference between the current carrying value and thenet amount expected cash to be collected at maturity will be accreted into income overwithin Other assets in the remaining term of the investment.

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SL Green Realty Corp.consolidated balance sheets. Accrued interest receivables that are written off are recognized as an expense in loan loss and SL Green Operating Partnership, L.P.other investment reserves.
Notes to Consolidated Financial Statements (cont.)
December 31, 2017

Rent Expense
Rent expense is recognized on a straight-line basis over the initial term of the lease. The excess of the rent expense recognized over the amounts contractually due pursuant to the underlying lease is included in the deferred lease payableliability - operating leases on the consolidated balance sheets.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Underwriting Commissions and Costs
Underwriting commissions and costs incurred in connection with our stock offerings are reflected as a reduction of additional paid-in-capital.
Exchangeable Debt Instruments
The initial proceeds from exchangeable debt that may be settled in cash, including partial cash settlements, are bifurcated between a liability component and an equity component associated with the embedded conversion option. The objective of the accounting guidance is to require the liability and equity components of exchangeable debt to be separately accounted for in a manner such that the interest expense on the exchangeable debt is not recorded at the stated rate of interest but rather at an effective rate that reflects the issuer's conventional debt borrowing rate at the date of issuance. We calculate the liability component of exchangeable debt based on the present value of the contractual cash flows discounted at our comparable market conventional debt borrowing rate at the date of issuance. The difference between the principal amount and the fair value of the liability component is reported as a discount on the exchangeable debt that is accreted as additional interest expense from the issuance date through the contractual maturity date using the effective interest method. A portion of this additional interest expense may be capitalized to the development and redevelopment balances qualifying for interest capitalization each period. The liability component of the exchangeable debt is reported net of discounts on our consolidated balance sheets. We calculate the equity component of exchangeable debt based on the difference between the initial proceeds received from the issuance of the exchangeable debt and the fair value of the liability component at the issuance date. The equity component is included in additional paid-in-capital, net of issuance costs, on our consolidated balance sheets. We allocate issuance costs for exchangeable debt between the liability and the equity components based on their relative values.
Transaction Costs
In January 2017, we adopted ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business, which changed how we account for transaction costs. Prior to January 2017, transaction costs were expensed as incurred. Starting in January 2017, transactionTransaction costs for asset acquisitions are capitalized to the investment basis, which is then subject to a purchase price allocation based on relative fair value and transactionvalue. Transaction costs for business combinations or costs incurred on potential transactions whichthat are not consummated are expensed as incurred.
Income Taxes
SL Green is taxed as a REIT under Section 856(c) of the Code. As a REIT, SL Green generally is not subject to Federal income tax. To maintain its qualification as a REIT, SL Green must distribute at least 90% of its REIT taxable income to its stockholders and meet certain other requirements. If SL Green fails to qualify as a REIT in any taxable year, SL Green will be subject to Federal income tax on its taxable income at regular corporate rates. SL Green may also be subject to certain state, local and franchise taxes. Under certain circumstances, Federal income and excise taxes may be due on its undistributed taxable income.
The Operating Partnership is a partnership and, as a result, all income and losses of the partnership are allocated to the partners for inclusion in their respective income tax returns. The only provision for income taxes included in the consolidated statements of operations relates to the Operating Partnership’s consolidated taxable REIT subsidiaries. The Operating Partnership may also be subject to certain state, local and franchise taxes.
Pursuant to amendments to the Code that became effective January 1, 2001, weWe have elected, and may elect in the future, to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or TRSs. In general, TRSs may perform non-customary services for the tenants of the Company, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business. The TRSs generate income, resulting in Federal and state income tax liability for these entities.
During the years ended December 31, 2017, 20162022, 2021 and 2015,2020, we recorded Federal, state and local tax provisions of $4.3$3.7 million, $2.8 million, and $3.1$1.2 million, respectively. For the year ended December 31, 2017,2022, the Company paid distributions on its common stock of $3.10$6.17 per share which represented $1.24$2.56 per share of ordinary income and $1.86$1.17 per share of capital gains. For the year ended December 31, 2016,2021, the Company paid distributions on its common stock of $2.88$8.09 per share which represented $2.48$0.50 per share of ordinary income, and $0.40$5.92 per share of capital gains. For the year ended December 31, 2015,2020, the Company

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

paid distributions on its common stock of $2.40$5.54 per share which represented $0.00$1.84 per share of ordinary income and $2.40$3.06 per share of capital gains.
We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.
On December 22, 2017, the Tax Cuts and Jobs Act (the ‘‘Tax Act’’) was signed into law and makes substantial changes to the Code. Many of the provisions of the Tax Act will require guidance through the issuance of Treasury regulations in order to assess their effect. The Tax Act did not have a material impact on our financial statements for the year ended December, 31, 2017.
Stock-BasedStock Based Employee Compensation Plans
We have a stock-based employee compensation plan, described more fully in Note 14, "Share-based Compensation."
For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date the compensation committee of our Board of Directors authorizes the award, adopts any relevant performance measures and communicates the award to the employees. For programs with awards that vest based on the achievement of a performance condition or market condition, we determine whether it is probable that the performance condition will be met, and estimate compensation cost based on the fair value of the award at the applicable award date estimated using a binomial model or market quotes. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of the Company's common stock, at the current quoted market price, from certain key employees to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Awards can also be made in the form of a separate series of units of limited partnership interest in the Operating Partnership called long-term incentive plan units, or LTIP units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of the Company's common stock at the time of grant and are subject to such conditions and restrictions as the compensation committee of the Company's board of directors may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.
The Company's stock options are recorded at fair value at the time of issuance. Fair value of the stock options is determined using the Black-Scholes option pricing model. The Black-Scholes model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of the employee stock options.
Compensation cost for stock options, if any, is recognized over the vesting period of the award. Our policy is to grant options with an exercise price equal to the quoted closing market price of the Company's common stock on either the grant date or the date immediately preceding the grant date. Awards of stock or restricted stock are expensed as compensation over the benefit period based on the fair value of the stock on the grant date.
For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date the compensation committee of our board of directors authorizes the award, adopts any relevant performance measures and communicates the award to the employees. For programs with awards that vest based on the achievement of a performance condition or market condition, we determine whether it is probable that the performance condition will be met, and estimate compensation cost based on the fair value of the award at the applicable award date estimated using a binomial model or market quotes. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of the Company's common stock, at the current quoted market price, from certain key employees to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.
Awards can also be made in the form of a separate series of units of limited partnership interest in the Operating Partnership called long-term incentive plan units, or LTIP units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of the Company's common stock at the time of grant, and are subject to such conditions and restrictions as the compensation committee of the Company's board of directors may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.
Derivative Instruments
In the normal course of business, we use a variety of commonly used derivative instruments, such as interest rate swaps, caps, collars and floors, to manage, or hedge, interest rate risk. Effectiveness is essential for those derivatives that we intend to qualify for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract.
To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

pricing models, replacement cost, and termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.
In the normal course of business, we are exposed to the effect of interest rate changes and limit these risks by following established risk management policies and procedures including the use of derivatives. To address exposure to interest rates, derivatives are used primarily to fix the rate on debt based on floating-rate indices and manage the cost of borrowing obligations.
We use a variety of conventional derivative products. These derivatives typically include interest rate swaps, caps, collars and floors. We expressly prohibit the use of unconventional derivative instruments and using derivative instruments for trading or speculative purposes. Further, we have a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors.
We may employ swaps, forwards or purchased options to hedge qualifying forecasted transactions. Gains and losses related to these transactions are deferred and recognized in net income as interest expense in the same period or periods that the underlying transaction occurs, expires or is otherwise terminated.
Hedges that are reported at fair value and presented on the balance sheet could be characterized as cash flow hedges or fair value hedges. Interest rate caps and collars are examples of cash flow hedges. Cash flow hedges address the risk associated with future cash flows of interest payments. For all hedges held by us and which were deemed to be fully effective in meetingthat meet the hedging objectives established by our corporate policy governing interest rate risk management, no net gains or losses were reported in earnings. The changes in fair value of derivative instruments designated as hedge instruments are reflected in accumulated other comprehensive income.income (loss). For derivative instruments not designated as hedging instruments, the gain or loss, resulting from the change in the estimated fair value of the derivative instruments, is recognized in current earnings during the period of change.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Earnings per Share of the Company
The Company presents both basic and diluted earnings per share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or EPS. Basicunpaid). Under the two-class method, basic EPS excludes dilution and is computed by dividing netthe income or loss attributableavailable to common stockholders by the weighted averageweighted-average number of common stock shares outstanding duringfor the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. Diluted EPS also includes units of limited partnership interest. The dilutive effect of stock options is reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior notes as the conversion premium will be paid in cash.
Earnings per Unit of the Operating Partnership
The Operating Partnership presents both basic and diluted earnings per unit ("EPU") using the two-class method, which is an earnings allocation formula that determines EPU for common units and any participating securities according to dividends declared (whether paid or EPU. Basicunpaid). Under the two-class method, basic EPU excludes dilution and is computed by dividing netthe income or loss attributableavailable to common unitholders by the weighted averageweighted-average number of common units outstanding duringfor the period. Basic EPU includes participating securities, consisting of unvested restricted units that receive nonforfeitable dividends similar to shares of common units. Diluted EPU reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units, where such exercise or conversion would result in a lower EPU amount. The dilutive effect of unit options is reflected in the weighted average diluted outstanding units calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior notes as the conversion premium will be paid in cash.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Concentrations of Credit Risk
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable. We place our cash investments with high quality financial institutions. The collateral securing our debt and preferred equity investments is located in the New York metropolitan area.City. See Note 5, "Debt and Preferred Equity Investments."
We perform initial and ongoing evaluations of the credit evaluationsquality of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a potential source of funds to offset the economic costs associated with lost revenue from that tenant and the costs

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

associated with re-tenanting a space. The properties in our real estate portfolio are located in the New York metropolitan area. Thearea, principally in Manhattan. Our tenants located in our buildings operate in various industries. Other than one tenant, Credit Suisse Securities (USA)Paramount Global (formerly ViacomCBS Inc.), Inc., who accountswhich accounted for 8.0%5.4% of our share of annualized cash rent as of December 31, 2022, no other tenant in our portfolio accounted for more than 5.0% of our share of annualized cash rent, including our share of joint venture annualized cash rent, atas of December 31, 2017. 2022.
For the yearyears ended December 31, 2017, 7.1%, 7.1%, 7.0%, 6.0%,2022, 2021, and 5.6%2020, the following properties contributed more than 5.0% of our annualized cash rent for consolidatedfrom office properties, was attributable to 11 Madison Avenue, 1185 Avenueincluding our share of the Americas, 1515 Broadway, 420 Lexington Avenue, and One Madison Avenue, respectively. Annualized cash rent for all other consolidated properties was below 5.0%.
For the year ended December 31, 2016, 8.8%, 6.9%, 6.1%, 5.9%, and 5.6% of our annualized cash rent for consolidated properties was attributablefrom joint venture office properties:
Property2022Property2021Property2020
One Vanderbilt Avenue14.1%11 Madison Avenue10.8%11 Madison Avenue8.2%
245 Park Avenue10.0%420 Lexington Avenue8.3%420 Lexington Avenue7.5%
11 Madison Avenue7.8%1515 Broadway8.1%1185 Avenue of the Americas6.9%
420 Lexington Avenue6.3%1185 Avenue of the Americas8.0%1515 Broadway6.6%
1515 Broadway5.8%280 Park Avenue6.7%220 East 42nd Street5.9%
1185 Avenue of the Americas5.1%919 Third Avenue5.3%280 Park Ave5.4%
280 Park Avenue5.1%485 Lexington Avenue5.3%
555 West 57th Street5.2%
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Notes to 1515 Broadway, 1185 Avenue of the Americas, 11 Madison Avenue, 420 Lexington Avenue, and One Madison Avenue, respectively. For the year ended Consolidated Financial Statements (cont.)
December 31, 2015, 8.9%, 8.2%, 6.6%, 6.5%, and 5.6% of our annualized cash rent for consolidated properties was attributable to 1515 Broadway, 388-390 Greenwich Street, 1185 Avenue of the Americas, 11 Madison Avenue, and 420 Lexington Avenue, respectively.2022    
As of December 31, 2017, 68.4%2022, 58.1% of our work force is covered by sixfive collective bargaining agreements, and 55.0% of our work force, which services substantially all of our properties, is covered by a collective bargaining agreement, which expires in December 2019. Approximately 8.8%44.1% of our work force is covered by a collective bargaining agreement which expires inagreements that expire before December 2018.31, 2023. See Note 19, "Benefits Plans."
Reclassification
Certain prior year balances have been reclassified to conform to our current year presentation.
Accounting Standards Updates
In August 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. The amendments in the new standard will permit more flexibility in hedging interest rate risk for both variable rate and fixed rate financial instruments. The standard will also enhance the presentation of hedge results in the financial statements. The guidance is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company has not yet adopted the guidance, and does not expect a material impact on the Company’s consolidated financial statements when the new standard is implemented.
In May 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-09, Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting. The guidance clarifies the changes to the terms or conditions of a share-based payment award that require an entity to apply modification accounting in Topic 718. The guidance is effective for fiscal years beginning after December 15, 2017 and early adoption is permitted. The Company has not yet adopted the guidance, and does not expect a material impact on the Company’s consolidated financial statements when the new standard is implemented.
In January 2017,March 2022, the FASB issued ASU No. 2017-01, Business Combinations2022-02 Financial Instruments - Credit Losses (Topic 805): Clarifying326) Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the Definition of a Business. Thetroubled debt restructuring recognition and measurement guidance clarifies the definition of a business and, provides guidance to assist with determining whether transactions should be accounted for as acquisitions of assets or businesses. The main provision isinstead, requires that an acquiree is notentity evaluate whether the modification represents a business if substantially allnew loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulties. Additionally, ASU 2022-02 requires an entity to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the fair valuescope of the gross assets is concentrated in a single identifiable asset or group of assets. The Company adopted the guidance on the issuance date effective January 5, 2017. The Company expects that most of its real estate acquisitions willSubtopic 326-20. Gross write-off information must be considered asset acquisitions under the new guidance and that transaction costs will be capitalized to the investment basis which is then subject to a purchase price allocation based on relative fair value.
In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance will require entities to show the changes on the total cash, cash equivalents, restricted cash and restricted cash equivalentsincluded in the statementvintage disclosures required for entities in accordance with Subtopic 326-20, which requires that an entity disclose the amortized cost basis of cash flows. As a result, entities will no longer present transfers between these items on the statementfinancing receivables by credit-quality indicator and class of cash flows. The guidancefinancing receivable by year of origination. ASU 2022-02 is effective for fiscal yearsreporting periods beginning after December 15, 2017,2022, including interim periods within those fiscal years. Earlyyears, with early adoption is permitted. The Company has not yet adopted this new guidance and isWe are currently evaluating the impact of adoptingthe adoption of ASU 2022-02 on our consolidated financial statements, but do not believe the adoption of this newstandard will have a material impact on our consolidated financial statements.
In July 2021, the FASB issued ASU No. 2021-05 Leases (Topic 842) Lessors - Certain Leases with Variable Lease Payments. ASU 2021-05 amends the lease classification requirements for lessors when classifying and accounting standardfor a lease with variable lease payments that do not depend on a reference rate index or a rate. The update provides criteria, that if met, the lease would be classified and accounted for as an operating lease. ASU 2021-05 is effective for reporting periods beginning after December 15, 2021. The Company adopted this guidance on January 1, 2022 and it did not have a material impact on the Company’sCompany's consolidated financial statements.
In August 2016,2020, the FASB issued Accounting Standard Update, or "ASU," No. 2020-06 Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for reporting periods beginning after December 15, 2021. The Company adopted this guidance on January 1, 2022 and it did not have a material impact on the Company's consolidated financial statements.
In March 2020, the FASB issued ASU No. 2016-15, Statement2020-04 Reference Rate Reform (Topic 848) Facilitation of Cash Flows (Topic 230): Classificationthe Effects of Certain Cash ReceiptsReference Rate Reform on Financial Reporting and Cash Payments.then in January 2021, the FASB issued ASU No. 2021-01. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2024, which was extended from the original sunset date of December 31, 2022 when the FASB issued ASU provides finalNo. 2022-06 in December 2022. The guidance on eight cash flow issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, distributions received from equity method investees, separately identifiablemay be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows and applicationto assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the predominance principle, and others.presentation of derivatives consistent with past presentation. The amendments in the ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted theimpact of this guidance effective January 1, 2017 and there was nodid not have a material impact on the Company’sCompany's consolidated financial statements.

3. Property Acquisitions
2022 Acquisitions
The following table summarizes the properties acquired during the year ended December 31, 2022:
PropertyAcquisition DateProperty TypeApproximate Square FeetGross Asset Valuation
(in millions)
245 Park Avenue (1)
September 2022Fee Interest1,782,793$1,960.0 
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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

(1)On October 31, 2021, HNA, through an affiliated entity, filed for Chapter 11 bankruptcy protection on account of its investment in 245 Park Avenue, together with another asset in Chicago. On July 8, 2022, certain of the debtors and affiliates of SL Green entered into a Plan Sponsorship and Investment Agreement (the "Plan"), pursuant to which SL Green became the stalking horse bidder for the property. Since the debtors did not receive any qualifying bids for the property and the Plan was confirmed, SL Green acquired full ownership and control of the property in September 2022, at which time our outstanding preferred equity and accrued interest balance were credited to our equity investment in the property. We recorded the assets acquired and liabilities assumed at fair value. See Note 5, "Debt and Preferred Equity Investments" and Note 16, "Fair Value Measurements."

2021 Acquisitions
The following table summarizes the properties acquired during the year ended December 31, 2021:
PropertyAcquisition DateProperty TypeApproximate Square FeetGross Asset Valuation
(in millions)
885 Third Avenue (1)
January 2021Fee Interest625,000$387.9 
461 Fifth Avenue (2)
June 2021Fee Interest200,00028.0 
1591-1597 BroadwaySeptember 2021Fee Interest7,684121.0 
690 Madison Avenue (3)
September 2021Fee Interest7,84872.2 
(1)In June 2016,January 2021, pursuant to the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurementpartnership documents of Credit Losses on Financial Instruments. The guidance changes how entities will measure credit losses for mostour 885 Third Avenue investment, certain participating rights of the common member expired. As a result, it was determined that this investment is a VIE in which we are the primary beneficiary, and the investment was consolidated in our financial statements. Upon consolidating the entity, the assets and certain other instruments that are not measuredliabilities of the entity were recorded at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted after December 2018. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements.
In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvementsvalue. Prior to Employee Share-Based Payment Accounting. The guidance simplifies the accounting for share-based payment award transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted the guidance effective January 1, 2017 and there was no material impact on the Company’s consolidated financial statements.
In March 2016, the FASB issued ASU 2016-07, Investments Equity Method and Joint Ventures (Topic 323). The guidance eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date2021, the investment becomes qualified for equity method accounting. The Company adopted the guidance effective January 1, 2017 and there was no impact on the Company’s consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, Leases. The guidance requires lessees to recognize lease assets and lease liabilities for those leases classified as operating leases under the previous standard. Depending on the lease classification, lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. The accounting applied by a lessor is largely unchanged from that applied under the previous standard. One of the potential impacts on the Company may be the presentation and disclosure in the financial statements of non-lease components such as charges to tenants for a building’s operating expenses. As currently written, the guidance would require that the non-lease components be presented separately from the lease components in both the Consolidated Statements of Operations and Consolidated Balance Sheets. In January 2018, the FASB issued an exposure draft, Leases (Topic 842) Targeted Improvements, which would provide lessors with a practical expedient to not separate non-lease components from the related lease component under certain conditions. We anticipate the majority of our leases would qualify for the practical expedient. We expect this guidance to be finalized in 2018 and, as a result, we would adopt the practical expedient. Another impact is the measurement and presentation of ground leases under which the Company is lessee. The Company is required to record a liability for the obligation to make payments under the lease and an asset for the right to use the underlying asset during the lease term and will also apply the new expense recognition requirements given the lease classification. The Company is currently quantifying these impacts. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company expects to adopt this guidance January 1, 2019 and will apply the modified retrospective approach.
In January 2016, the FASB issued ASU 2016-01 (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity methodmethod. See Note 6, "Investments in Unconsolidated Joint Ventures" and Note 16, "Fair Value Measurements.
(2)In April 2021, the Company exercised its option to acquire the fee interest in the property from the ground lessor and the Company acquired the fee interest in June 2021. The Company held the leasehold interest in the property prior to exercising its option.
(3)In September 2021, the Company was the successful bidder for the fee interest in 690 Madison Avenue at the foreclosure of the asset. The property previously served as collateral for a debt and preferred equity investment. We recorded the assets acquired and liabilities assumed at fair value through earnings to record changes in instruments-specific credit risk for financial liabilities measured undervalue. See Note 5, "Debt and Preferred Equity Investments" and Note 16, "Fair Value Measurements."
2020 Acquisitions
The following table summarizes the fair value option in other comprehensive income, useproperties acquired during the exit price notion when measuring an instrument’s fair value for disclosure and to separately present financial assets and liabilities by measurement category and form of instrument on the balance sheet or in the notes to the financial statements. The guidance is effective for fiscal years beginning afteryear ended December 15, 2017, and for interim periods therein. 31, 2020:
PropertyAcquisition DateProperty TypeApproximate Square FeetGross Asset Valuation
(in millions)
762 Madison Avenue (1)
January 2020Fee Interest6,109$29.3 
707 Eleventh AvenueJanuary 2020Fee Interest159,72090.0 
15 Beekman (2)
January 2020Leasehold Interest98,412— 
590 Fifth Avenue (3)
October 2020Fee Interest103,300107.2 
(1)The Company hasacquired from our joint venture partner the remaining 10% interest in this property that the Company did not yet adopted this new guidancealready own.
(2)In January 2020, the Company entered into a 99-year ground lease of 126 Nassau Street and does not expectsubsequently renamed the property 15 Beekman. In August 2020, we entered into a material impact onpartnership as part of the Company’s consolidated financial statements when the new standard is implemented.
In May 2014, the FASB issued a new comprehensive revenue recognition guidance which requires us to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services (ASU 2014-09). The FASB also issued implementation guidance in March 2016, April 2016 and May 2016 - ASU’s 2016-08, 2016-10 and 2016-12, respectively. These ASUs are effective for annual and interim periods beginning after December 15, 2017. The Company will adopt this guidance January 1, 2018. Since the Company’s revenue is related to leasing activities, the adoptioncapitalization of this guidance will not havedevelopment project. See note 6, “Investment in Unconsolidated Joint Ventures.”
(3)The property previously served as collateral for a material impact on the consolidated financial statements. The new guidance is applicable to service contracts with joint ventures for which the Company earns property management fees, leasing commissionsdebt and developmentpreferred equity investment and construction fees. The adoption of this new guidance does not change the accounting for these fees as the pattern of recognition of revenue does not changewas acquired through a negotiated transaction with the new guidance. We will continue to

sponsor.
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December 31, 20172022    

recognize revenue over time on these contracts because the customer simultaneously receives and consumes the benefits provided by our performance. Thus, the analysis of our contracts under the new revenue recognition standard is consistent with our current revenue recognition model.
In February 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-05 to clarify the scope of asset derecognition guidance in Subtopic 610-20, which also provided guidance on accounting for partial sales of nonfinancial assets.  Subtopic 610-20 was issued in May 2014 as part of ASU 2014-09.  The Company will adopt this guidance January 1, 2018, and apply the modified retrospective approach.    Additionally, the Company will elect to adopt the practical expedient under ASC 606, Revenue from Contracts with Customers, which allows an entity to apply the guidance to only to contracts with non-customers that are open based on the ASU 360-20, Real Estate Sales, (i.e. failed sales) as of the adoption date.   The Company had one open contract in 2017 with a non-customer that will be evaluated under ASC 610-20.  The Company entered into an agreement to sell a portion of their interest in an entity that held a controlling interest in the property at 1515 Broadway.  Upon execution of the agreement in 2017, the transaction was evaluated under ASC 360-20, Real Estate Sales, and did not meet the criteria for sale accounting.  Upon adoption of ASC 606, this contract will have met the criteria for sale accounting under ASC 610-20 and will be recorded in the first quarter of 2018 as an adjustment to beginning retained earnings. Through the sale, the Company no longer retains a controlling interest, as defined in ASC 810, Consolidation, and the impact of this adjustment will be a gain of $0.6 billion from the sale of the partial interest and related step-up in basis to fair value of the non-controlling interest retained.  The Company will use the purchase price paid by the third party as an indicator of fair value. This purchase price will be allocated to the assets and liabilities, including identified intangibles.  Under this methodology the leases are ascribed an in-place lease intangible value as well as an above or below market lease intangible value which will be amortized over the remaining term of the associated leases.

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

3. Property Acquisitions
2017 Acquisitions
During the year ended December 31, 2017, we did not acquire any properties from a third party.
2016 Acquisitions
During the year ended December 31, 2016, the property listed below was acquired from a third party. The following summarizes our final allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of this acquisition (in thousands):
 183 Broadway
Acquisition DateMarch 2016
Ownership TypeFee Interest
Property TypeRetail/Residential
  
Purchase Price Allocation: 
Land$5,799
Building and building leasehold23,431
Above-market lease value—
Acquired in-place leases773
Other assets, net of other liabilities20
Assets acquired30,023
Mark-to-market assumed debt—
Below-market lease value(1,523)
Derivatives—
Liabilities assumed(1,523)
Purchase price$28,500
Net consideration funded by us at closing, excluding consideration financed by debt$28,500
Equity and/or debt investment held$—
Debt assumed$—
2015 Acquisitions
During the year ended December 31, 2016, we finalized the purchase price allocations for the following 2015 acquisitions based on facts and circumstances that existed at the acquisition date for each property (in thousands):

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December 31, 2017

 
600 Lexington Avenue (1)(2)
 
187 Broadway and
5 & 7 Dey Street (1)(3)
 
11 Madison Avenue (1)
 
110 Greene Street (1)(4)
 
Upper East Side Residential

(1)(5)
 
1640 Flatbush Avenue(1)
Acquisition DateDecember 2015 August 2015 August 2015 July 2015 June 2015 March 2015
Ownership TypeFee Interest Fee Interest Fee Interest Fee Interest Fee Interest Fee Interest
Property TypeOffice Residential/Retail Office Office Residential/Retail Retail
            
Purchase Price Allocation:           
Land$81,670
 $20,266
 $675,776
 $45,120
 $48,152
 $6,226
Building and building leasehold182,447
 42,468
 1,553,602
 215,470
 —
 501
Above-market lease value3,320
 17
 19,764
 —
 —
 —
Acquired in-place leases22,449
 3,621
 366,949
 8,967
 1,922
 146
Other assets, net of other liabilities—
 —
 —
 —
 —
 —
Assets acquired289,886
 66,372
 2,616,091
 269,557
 50,074
 6,873
Mark-to-market assumed debt(55) —
 —
 —
 —
 —
Below-market lease value(5,831) (3,226) (187,732) (14,557) —
 (73)
Derivatives—
 —
 —
 —
 —
 —
Liabilities assumed(5,886) (3,226) (187,732) (14,557) —
 (73)
Purchase price$284,000
 $63,146
 $2,428,359
 $255,000
 $50,074
 $6,800
Net consideration funded by us at closing, excluding consideration financed by debt$79,085
 $—
 $—
 $—
 $—
 $—
Equity and/or debt investment held$54,575
 $—
 $—
 $—
 $—
 $—
Debt assumed$112,795
 $—
 $—
 $—
 $—
 $—
(1)Based on our preliminary analysis of the purchase price, we had allocated $97.0 million and $180.2 million to land and building, respectively, at 600 Lexington Avenue, $22.1 million and $41.0 million to land and building, respectively, at 187 Broadway and 5&7 Dey Street, $849.9 million and $1.6 billion to land and building, respectively, at 11 Madison Avenue, $89.3 million and $165.8 million to land and building, respectively, at 110 Greene Street, and $17.5 million and $32.5 million to land and building, respectively, at the Upper Eastside Residential Property and $6.1 million and $0.7 million to land and building, respectively, at 1640 Flatbush Avenue. The impact to our consolidated statements of operations for the twelve months ended December 31, 2015 was an increase in rental revenue of $7.8 million for the amortization of aggregate below-market leases and an additional $18.5 million of depreciation expense.
(2)In December 2015, we acquired Canada Pension Plan Investment Board's 45% interest in this property, thereby consolidating full ownership of the property. The transaction valued the consolidated interests at $277.3 million. We recognized a purchase price fair value adjustment of $40.1 million upon closing of this transaction. This property, which we initially acquired in May 2010, was previously accounted for as an investment in unconsolidated joint ventures.
(3)We acquired this property for consideration that included the issuance of $10.0 million and $26.9 million aggregate liquidation preferences of Series R and S Preferred Units, respectively, of limited partnership interest of the Operating Partnership and cash.
(4)We acquired a 90.0% controlling interest in this property for consideration that included the issuance of $5.0 million and $6.7 million aggregate liquidation preferences of Series P and Q Preferred Units, respectively, of limited partnership interest of the Operating Partnership and cash.
(5)We, along with our joint venture partner, acquired this property for consideration that included the issuance of $13.8 million aggregate liquidation preference of Series N Preferred Units of limited partnership interest of the Operating Partnership and cash. We hold a 95.1% controlling interest in this joint venture.





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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

For business combinations achieved in stages, the acquisition-date fair value of our equity interest in a property immediately before the acquisition date is determined based on estimated cash flow projections that utilize available market information and discount and capitalization rates that we deem appropriate. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The acquisition-date fair value of the equity interest in 600 Lexington Avenue, which was acquired in 2015, immediately before the acquisition date and the resulting purchase price fair value adjustment, as determined in accordance with the methodology set out in the prior sentence, are as follows (in thousands):
 600 Lexington Avenue
Contract purchase price$284,000
Net consideration funded by us at closing, excluding consideration financed by debt(79,085)
Debt assumed(112,795)
Fair value of retained equity interest92,120
Equity and/or debt investment held(54,575)
Other(1)
2,533
Purchase price fair value adjustment$40,078
(1)Includes the acceleration of a deferred leasing commission from the joint venture to the Company.
Pro Forma Unaudited
The following table summarizes, on an unaudited pro forma basis, the results of operations of 11 Madison Avenue, which are included in the consolidated results of operations for year ended December 31, 2015 as though the acquisition of 11 Madison Avenue was completed on January 1, 2015. The supplemental pro forma data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods.
(in thousands, except per share/unit amounts) 
Actual revenues since acquisition$29,865
Actual net income since acquisition159
Pro forma revenues1,657,937
Pro forma income from continuing operations (1)
102,440
Pro forma basic earnings per share$0.76
Pro forma diluted earnings per share$0.75
Pro forma basic earnings per unit$0.76
Pro forma diluted earnings per unit$0.75
(1)The pro forma income from continuing operations for the year ended December 31, 2015 includes the effect of the incremental borrowings, including a $1.4 billion, 10-year, interest only, fixed rate mortgage financing carrying a per annum stated interest rate of 3.838% to complete the acquisition and the preliminary allocation of purchase price.

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

4. Properties Held for Sale and Property Dispositions
Properties Held for Sale
As of December 31, 2017, 600 Lexington Avenue in Manhattan, 115-117 Stevens Avenue in Valhalla, New York, and 1-6 International Drive in Rye Brook, New York2022, no properties were classified as held for sale. During the fourth quarter
As of 2017,December 31, 2021, 1080 Amsterdam Avenue and 707 Eleventh Avenue were classified as held for sale, as we
entered into an agreement to sell the property at 600 Lexington Avenue for a gross asset valuation of $305.0 million. Weproperties, which closed onin the sale of 600 Lexington Avenue in January 2018.
During the fourthfirst quarter of 2017, the2022. The Company recorded a $15.0 million charge of $17.8 million in connection with the reclassificationclassification of 115-117 Stevens707 Eleventh Avenue toas held for sale, and a charge of $69.1 million in connection with the reclassification of 1-6 International Drive to held for sale. These charges arewhich is included in depreciableDepreciable real estate reserves and impairments in the consolidated statement of operations.
The Company classified 16 Court Street in Brooklyn, New York and 125 Chubb Way in Lyndhurst, New Jersey as held for sale as of September 30, 2017; 125 Chubb Way in Lyndhurst, New Jersey and the properties at 680-750 Washington Boulevard in Stamford, Connecticut as held for sale as of June 30, 2017; and 520 White Plains Road in Tarrytown, NY and a 90% interest in 102 Greene Street in New York, NY as held for sale as of March 31, 2017.
Property Dispositions
The following table summarizes the properties sold during the years ended December 31, 2017, 2016,2022, 2021, and 2015:2020:
PropertyDisposition DateProperty TypeUnaudited Approximate Usable Square Feet
Sales Price (1)
(in millions)
(Loss) Gain on Sale (2)
(in millions)
885 Third Avenue - Office Condominium Units (3)
December 2022Fee / Leasehold Interest414,317 $300.4 $(24.0)
609 Fifth AvenueJune 2022Fee Interest138,563 100.5 (80.2)
1591-1597 BroadwayMay 2022Fee Interest7,684 121.0 (4.5)
1080 Amsterdam AvenueApril 2022Leasehold Interest85,250 42.7 17.9 
707 Eleventh AvenueFebruary 2022Fee Interest159,720 95.0 (0.8)
110 East 42nd StreetDecember 2021Fee Interest215,400 117.1 3.6 
590 Fifth AvenueOctober 2021Fee Interest103,300 103.0 (3.2)
220 East 42nd Street (4)
July 2021Fee Interest1,135,000 783.5 175.1 
635-641 Sixth AvenueJune 2021Fee Interest267,000 325.0 99.4 
106 Spring Street (5)
March 2021Fee Interest5,928 35.0 (2.8)
133 Greene Street (5)
February 2021Fee Interest6,425 15.8 0.2 
712 Madison Avenue (6)
January 2021Fee Interest6,600 43.0 (1.4)
30 East 40th StreetDecember 2020Leasehold Interest69,446 5.2 (1.6)
1055 Washington BoulevardDecember 2020Leasehold Interest182,000 23.8 (11.5)
Williamsburg TerraceDecember 2020Fee Interest52,000 32.0 11.8 
410 Tenth AvenueDecember 2020Fee Interest638,000 952.5 56.4 
400 East 58th StreetSeptember 2020Fee Interest140,000 62.0 8.3 
609 Fifth Avenue - Retail CondominiumMay 2020Fee Interest21,437 168.0 63.3 
315 West 33rd Street - The OliviaMarch 2020Fee Interest492,987 446.5 71.8 
(1)Sales price represents the gross sales price for a property or the gross asset valuation for interests in a property.
(2)The (losses) gains on sale are net of $11.2 million, $13.7 million, and $10.5 million of employee compensation accrued in connection with the realization of the investment dispositions during the years ended December 31, 2022, 2021, and 2020, respectively. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.
(3)In December 2022, the Company sold 414,317 square feet of office leasehold condominium units at the property. The Company retained the remaining 218,796 square feet of the building.
(4)In July 2021, the Company sold a 49% interest, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of the 51.0% interest we retained. We recorded our investment at fair value which resulted in the recognition of a fair value adjustment of $206.8 million, which is reflected in the Company's consolidated statements of operations within Purchase price and other fair value adjustments. See Note 6, "Investments in Unconsolidated Joint Ventures."
(5)In March 2021, the property was foreclosed by the lender.
(6)Disposition resulted from the ground lessee exercising its purchase option under a ground lease arrangement.

92
Property Disposition Date Property Type (unaudited) Approximate Usable Square Feet 
Sales Price(1)
(in millions)
 
Gain (Loss) on Sale(2)
(in millions)
1515 Broadway (3)
 December 2017 Office 1,750,000
 $1,950.0
 $—
125 Chubb Way (4)
 October 2017 Office 278,000
 29.5
 (26.1)
16 Court Street October 2017 Office 317,600
 171.0
 64.9
680-750 Washington Boulevard (5)
 July 2017 Office 325,000
 97.0
 (44.2)
520 White Plains Road (6)
 April 2017 Office 180,000
 21.0
 (14.6)
102 Greene Street (7)
 April 2017 Retail 9,200
 43.5
 4.9
400 East 57th Street October 2016 Residential 290,482
 83.3
 23.9
11 Madison Avenue (8)
 August 2016 Office 2,314,000
 2,605.0
 3.6
500 West Putnam (9)
 July 2016 Office 121,500
 41.0
 (10.4)
388 Greenwich June 2016 Office 2,635,000
 2,002.3
 206.5
7 International Drive May 2016 Land 31 Acres
 20.0
 (6.9)
248-252 Bedford Avenue February 2016 Residential 66,611
 55.0
 15.3
885 Third Avenue (10)
 February 2016 Land 607,000
 453.0
 (8.8)
140-150 Grand Street (11)
 December 2015 Office/Development 215,100
 32.0
 (20.1)
570 & 574 Fifth Avenue December 2015 Development 24,327
 125.4
 24.6
120 West 45th Street September 2015 Office 440,000
 365.0
 58.6
131-137 Spring Street (12)
 August 2015 Office 68,342
 277.8
 101.1
180 Maiden Lane January 2015 Office 1,090,000
 470.0
 17.0
(1)Sales price represents the actual sales price for an entire property or the gross asset valuation for interests in a property.
(2)The gain on sale for 16 Court Street, 102 Greene Street, 400 East 57th Street, 11 Madison Avenue, 388 Greenwich, 248-252 Bedford Avenue, 570 & 574 Fifth Avenue, 120 West 45th Street, 131-137 Spring Street, and 180 Maiden Lane are net of $2.5 million, $0.9 million, $1.0 million, $0.6 million, $1.6 million, $1.3 million, $4.0 million, $2.0 million, $4.1 million, and $0.8 million in employee compensation accrued in connection with the realization of these investment gains. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.
(3)In November 2017, the Company sold a 30.13% interest in 1515 Broadway to affiliates of Allianz Real Estate. The sale did not meet the criteria for sale accounting and as a result the property was accounted for under the profit sharing method. The Company achieved sale accounting upon adoption of ASC 610-20 in January 2018 and closed on the sale of an additional 12.87% interest in the property to Allianz in February 2018. See Note 6, "Investments in Unconsolidated Joint Ventures."
(4)The Company recorded a $26.1 million charge in 2017 that is included in depreciable real estate reserves in the consolidated statement of operations.
(5)The Company recorded a $44.2 million charge in 2017 that is included in depreciable real estate reserves in the consolidated statement of operations.
(6)The Company recorded a $14.6 million charge in 2017 that is included in depreciable real estate reserves in the consolidated statement of operations.
(7)In April 2017, we closed on the sale of a 90% interest 102 Greene Street and had subsequently accounted for our interest in the property as an investment

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December 31, 20172022    

in unconsolidated joint ventures. We sold the remaining 10% interest in September 2017. See Note 6, "Investments in Unconsolidated Joint Ventures."
(8)In August 2016, we sold a 40% interest in 11 Madison Avenue. The sale did not meet the criteria for sale accounting and, as a result, the property was accounted for under the profit sharing method. In November 2016, the Company obtained consent to the modifications to the mortgage on the property, which resulted in the Company achieving sale accounting on the transaction. See Note 6, "Investments in Unconsolidated Joint Ventures."
(9)The Company recorded a $10.4 million charge in 2016 that is included in depreciable real estate reserves in the consolidated statement of operations
(10)In February 2016, we closed on the sale of 885 Third Avenue. The sale did not meet the criteria for sale accounting and as a result the property remained on our consolidated financial statements until the criteria was met in April 2017.
(11)The Company recorded a $19.2 million charge in 2015 that is included in depreciable real estate reserves in the consolidated statement of operations.
(12)We sold an 80% interest in 131-137 Spring Street and have subsequently accounted for our interest in the properties as an investment in unconsolidated joint ventures. See Note 6, "Investments in Unconsolidated Joint Ventures."
Discontinued Operations
The Company adopted ASU 2014-08 effective January 1, 2015 which raised the threshold for disposals to qualify as discontinued operations to include only dispositions that represent a strategic shift in an entity’s operations. The guidance was applied prospectively for new disposals. Since adoption no disposals have been deemed to represent strategic shifts in the Company's operations and as a result, the results of operations of all disposals are included in continuing operations for all periods presented. Discontinued operations includes the results of operations of 180 Maiden Lane which was held for sale at December 31, 2014 and sold in January 2015.
The following table summarizes net income from discontinued operations for the years ended December 31, 2017, 2016, and 2015 respectively (in thousands):
 Year Ended December 31,
 2017 2016 2015
Revenues     
Rental revenue$—
 $—
 $236
Escalation and reimbursement revenues—
 —
 (127)
Other income—
 —
 —
Total revenues—
 —
 109
Operating expenses—
 —
 (631)
Real estate taxes—
 —
 250
Ground rent—
 —
 —
Transaction related costs—
 —
 (49)
Interest expense, net of interest income—
 —
 109
Amortization of deferred financing costs—
 —
 3
Depreciation and amortization—
 —
 —
Total expenses—
 —
 (318)
Net income from discontinued operations$—
 $—
 $427
5. Debt and Preferred Equity Investments
Below is the rollforward analysisa summary of the activity relating toin our debt and preferred equity investments for the years ended December 31, 2022 and 2021 (in thousands):
December 31, 2022December 31, 2021
Balance at beginning of year (1)
$1,088,723 $1,076,542 
Debt investment originations/fundings/accretion (2)
62,992 193,824 
Preferred equity investment originations/accretion (2)
37,505 13,220 
Redemptions/sales/syndications/equity ownership/amortization(565,940)(201,446)
Net change in loan loss reserves— 6,583 
Balance at end of period (1)
$623,280 $1,088,723 
(1)Net of unamortized fees, discounts, and premiums.
(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.
Below is a summary of our debt and preferred equity investments as of December 31, 20172022 (dollars in thousands):
Floating RateFixed RateTotal Carrying ValueSenior Financing
Maturity(1)
TypeCarrying ValueFace ValueInterest RateCarrying ValueFace ValueInterest Rate
Mezzanine Debt$144,056 $144,402 L + 4.95 - 12.38%$359,366 $367,461 7.00 - 14.30%$503,422 $1,691,780  2023 - 2029
Preferred Equity— — —119,858 119,858   6.50%119,858 250,000 2027
Balance at end of period$144,056 $144,402 $479,224 $487,319 $623,280 $1,941,780 
(1) Excludes available extension options to the extent they have not been exercised as of the date of this filing.
The following table is a roll forward of our total allowance for loan losses for the years ended December 31, 2022, 2021 and 20162020 (in thousands):
December 31,
202220212020
Balance at beginning of year$6,630 $13,213 $1,750 
Cumulative adjustment upon adoption of ASC 326— — 27,803 
Current period provision for loan loss— — 20,693 
Write-offs charged against the allowance— (6,583)(37,033)
Balance at end of period (1)
$6,630 $6,630 $13,213 
 December 31, 2017 December 31, 2016
Balance at beginning of period (1)
$1,640,412
 $1,670,020
Debt investment originations/accretion (2)
1,142,591
 1,009,176
Preferred Equity investment originations/accretion (2)
144,456
 5,698
Redemptions/sales/syndications/amortization (3)
(813,418) (1,044,482)
Balance at end of period (1)
$2,114,041
 $1,640,412
(1)As of December 31, 2022, all financing receivables on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $225.4 million.
(1)Net of unamortized fees, discounts, and premiums.
(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)Certain participations in debt investments that were sold or syndicated did not meet the conditions for sale accounting are included in other assets and other liabilities on the consolidated balance sheets.

As of December 31, 2022 and 2021, all debt and preferred equity investments were performing in accordance with their respective terms, with the exception of one investment with a carrying value, net of reserves, of $6.9 million, as discussed in the Debt Investments and Preferred Equity Investments tables further below.
No other financing receivables were 90 days past due as of December 31, 2022 and December 31, 2021.

107
93
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

The following table sets forth the carrying value of our debt and preferred equity investment portfolio by risk rating as of December 31, 2022 and 2021 (dollars in thousands):
Risk RatingDecember 31, 2022December 31, 2021
1 - Low Risk Assets - Low probability of loss$264,069 $644,489 
2 - Watch List Assets - Higher potential for loss352,321 437,344 
3 - High Risk Assets - Loss more likely than not6,890 6,890 
$623,280 $1,088,723 
The following table sets forth the carrying value of our debt and preferred equity investment portfolio by year of origination and risk rating as of December 31, 2022 (dollars in thousands):
As of December 31,
Risk Rating
2022(1)
2021(1)
2020(1)
Prior(1)
Total
1 - Low Risk Assets - Low probability of loss$— $— $174,985 $89,084 $264,069 
2 - Watch List Assets - Higher potential for loss— 77,109 — 275,212 352,321 
3 - High Risk Assets - Loss more likely than not— — — 6,890 6,890 
$— $77,109 $174,985 $371,186 $623,280 
(1) Year in which the investment was originated or acquired by us or in which a material modification occurred.
We have determined that we have one portfolio segment of financing receivables as of December 31, 2022 and 2021 comprised of commercial real estate which is primarily recorded in debt and preferred equity investments.
Included in Other assets is an additional amount of financing receivables representing loans to joint venture partners totaling $9.0 million and $10.5 million as of December 31, 2022 and 2021, respectively. The Company recorded no provisions for loan losses related to these financing receivables for the years ended December 31, 2022 and 2021, respectively. All of these loans have a risk rating of 2 and were performing in accordance with their respective terms. One loan with a carrying value of $5.8 million was put on non-accrual in July 2020 and remains on non-accrual as of December 31, 2022. No investment income has been recognized subsequent to it being put on non-accrual.
94
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Debt Investments
As of December 31, 20172022 and 2016,2021, we held the following debt investments with an aggregate weighted average current yield of 9.31%6.46%, excluding our investment in Two Herald Square, at as of December 31, 2017 (in2022 (dollars in thousands):
Loan TypeDecember 31, 2022
Future Funding
Obligations		December 31, 2022
Senior
Financing
December 31, 2022
Carrying Value (1)
December 31, 2021
Carrying Value (1)

Maturity
Date (2)
Fixed Rate Investments:
Mezzanine Loan (3)
$— $401,269 $225,367 $225,367 June 2023
Mezzanine Loan— 283,293 77,109 66,873 June 2023
Mezzanine Loan (4)(5)
— 105,000 13,366 13,366 June 2024
Mezzanine Loan— 95,000 30,000 30,000 January 2025
Mezzanine Loan— 85,000 20,000 20,000 December 2029
Mezzanine Loan— — — 43,521 
Mortgage Loan— — — 73,000 
Mezzanine Loan (6)
— — — 55,250 
Total fixed rate$— $969,562 $365,842 $527,377  
Floating Rate Investments:
Mezzanine Loan$— $275,000 $50,000 $49,998 April 2023
Mezzanine Loan3,761 54,000 8,243 8,050 May 2023
Mezzanine Loan17,924 207,134 46,884 30,802 May 2023
Mezzanine Loan— 186,084 39,083 37,511 July 2023
Mezzanine Loan (7)
— — — 133,735 
Mortgage and Mezzanine Loan— — — 34,874 
Total floating rate$21,685 $722,218 $144,210 $294,970  
Allowance for loan loss$— $— $(6,630)$(6,630)
Total$21,685 $1,691,780 $503,422 $815,717 
(1)Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2)Represents contractual maturity, excluding any extension options to the extent they have not been exercised as of the date of this filing.
(3)This loan was put on non-accrual in July 2020 and remains on non-accrual as of December 31, 2022. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower.
(4)Carrying value is net of a $12.0 million participation that was sold and did not meet the conditions for sale accounting, which is included in Other assets and Other liabilities on the consolidated balance sheets as a result.
(5)This loan went into default and was put on non-accrual in June 2020 and remains on non-accrual as of December 31, 2022. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower. Additionally, we determined the borrower entity to be a VIE in which we are not the primary beneficiary.
(6)In September 2022, the Company successfully acquired full ownership and control of the property at 245 Park Avenue. See below table and Note 3, "Property Acquisitions."
(7)In September 2022, the Company converted its mezzanine loan position secured by the equity interest in 5 Times Square to an equity interest in a joint venture partnership with the existing equity holders. See Note 6, " Investments in Unconsolidated Joint Ventures."
95
Loan Type 
December 31, 2017
Future Funding
Obligations
 
December 31, 2017
Senior
Financing
 
December 31, 2017
Carrying Value (1)
 
December 31, 2016
Carrying Value (1)
 

Maturity
Date (2)
Fixed Rate Investments:          
Mortgage/Jr. Mortgage Loan(3)
 $—
 $—
 $250,464
 $—
 April 2017
Mortgage Loan(4)
 —
 —
 26,366
 26,311
 February 2019
Mortgage Loan —
 —
 239
 380
 August 2019
Mezzanine Loan(5a)
 —
 1,160,000
 204,005
 —
 March 2020
Mezzanine Loan —
 15,000
 3,500
 3,500
 September 2021
Mezzanine Loan —
 147,000
 24,913
 —
 April 2022
Mezzanine Loan —
 86,976
 12,699
 12,692
 November 2023
Mezzanine Loan(5b)
 —
 115,000
 12,932
 12,925
 June 2024
Mezzanine Loan —
 95,000
 30,000
 30,000
 January 2025
Mezzanine Loan —
 340,000
 15,000
 15,000
 November 2026
Mezzanine Loan —
 1,657,500
 55,250
 —
 June 2027
Mezzanine Loan(6)
 —
 —
 —
 66,129
  
Jr. Mortgage Participation/Mezzanine Loan (7)
 —
 —
 —
 193,422
  
Total fixed rate $—
 $3,616,476
 $635,368
 $360,359
  
Floating Rate Investments:          
Mezzanine Loan(5c)(8)
 $795
 $—
 $15,148
 $15,051
 March 2018
Mezzanine Loan —
 40,000
 19,982
 19,913
 April 2018
Jr. Mortgage Participation —
 94,546
 34,947
 34,844
 April 2018
Mezzanine Loan 523
 20,523
 10,934
 10,863
 August 2018
Mortgage/Mezzanine Loan —
 —
 19,940
 19,840
 August 2018
Mortgage Loan —
 65,000
 14,955
 14,880
 August 2018
Mortgage/Mezzanine Loan(9)
 —
 —
 16,969
 16,960
 September 2018
Mezzanine Loan —
 37,500
 14,855
 14,648
 September 2018
Mortgage/Mezzanine Loan(10)
 391
 —
 23,609
 20,423
 October 2018
Mezzanine Loan 2,325
 45,025
 34,879
 34,502
 October 2018
Mezzanine Loan —
 335,000
 74,755
 74,476
 November 2018
Mezzanine Loan(5d)(8)
 —
 85,000
 15,381
 15,141
 December 2018
Mezzanine Loan(5e)(8)
 —
 65,000
 14,869
 14,656
 December 2018
Mezzanine Loan —
 33,000
 26,927
 26,850
 December 2018
Mezzanine Loan —
 175,000
 59,723
 56,114
 December 2018
Mezzanine Loan —
 45,000
 12,174
 12,104
 January 2019
Mortgage/Mezzanine Loan (5f)
 26,284
 —
 162,553
 —
 January 2019
Mezzanine Loan 5,372
 25,289
 8,550
 5,410
 January 2019
Mezzanine Loan —
 38,000
 21,939
 21,891
 March 2019
Mezzanine Loan 11
 174,947
 37,250
 —
 April 2019
Mezzanine Loan —
 265,000
 24,830
 24,707
 April 2019
Mortgage/Jr. Mortgage Participation Loan 27,617
 199,733
 71,832
 65,554
 August 2019

108
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

Preferred Equity Investments
As of December 31, 2022 and 2021, we held the following preferred equity investments with an aggregate weighted average current yield of 6.55% as of December 31, 2022 (dollars in thousands):
TypeDecember 31, 2022
Future Funding
Obligations		December 31, 2022
Senior
Financing
December 31, 2022
Carrying Value (1)
December 31, 2021
Carrying Value (1)

Mandatory
Redemption (2)
Preferred Equity$— $250,000 $119,858 $112,234 February 2027
Preferred Equity (3)
— — — 160,772 
Total Preferred Equity$— $250,000 $119,858 $273,006  
Allowance for loan loss$— $— $— $— 
Total$— $250,000 $119,858 $273,006 
(1)Carrying value is net of deferred origination fees.
(2)Represents contractual redemption, excluding any unexercised extension options.
(3)On October 31, 2021, HNA, through an affiliated entity, filed for Chapter 11 bankruptcy protection on account of its investment in 245 Park Avenue, together with another asset in Chicago. On July 8, 2022, certain of the debtors and affiliates of SL Green entered into the Plan, pursuant to which SL Green became the stalking horse bidder for the property. Since the debtors did not receive any qualifying bids for the property and the Plan was confirmed, SL Green acquired full ownership and control of the property in September 2022, at which time our outstanding preferred equity and accrued interest balance were credited to our equity investment in the property. See Note 3, "Property Acquisitions."
96
Loan Type 
December 31, 2017
Future Funding
Obligations
 
December 31, 2017
Senior
Financing
 
December 31, 2017
Carrying Value (1)
 
December 31, 2016
Carrying Value (1)
 

Maturity
Date (2)
Mezzanine Loan 2,034
 189,829
 37,851
 37,322
 September 2019
Mortgage/Mezzanine Loan 36,391
 —
 143,919
 111,819
 September 2019
Mezzanine Loan —
 350,000
 34,737
 —
 October 2019
Mortgage/Mezzanine Loan 25,643
 —
 43,845
 33,682
 January 2020
Mezzanine Loan(11)
 3,621
 555,379
 75,834
 125,911
 January 2020
Mezzanine Loan 6,913
 34,337
 11,259
 —
 July 2020
Mezzanine Loan(12)
 51,494
 310,654
 75,428
 63,137
 November 2020
Mortgage and Mezzanine Loan 42,510
 —
 88,989
 —
 December 2020
Mortgage and Mezzanine Loan —
 —
 35,152
 —
 December 2020
Jr. Mortgage Participation/Mezzanine Loan —
 60,000
 15,635
 15,606
 July 2021
Mezzanine Loan —
 280,000
 34,600
 —
 August 2022
Mortgage/Mezzanine Loan(13)
 —
 —
 —
 29,998
  
Mezzanine Loan(14)
 —
 —
 —
 64,505
  
Mezzanine Loan(15)
 —
 —
 —
 15,369
  
Mortgage/Mezzanine Loan(6)
 —
 —
 —
 32,847
  
Mortgage/Mezzanine Loan(6)
 —
 —
 —
 22,959
  
Mezzanine Loan(16)
 —
 —
 —
 14,957
  
Mortgage/Mezzanine Loan(17)
 —
 —
 —
 145,239
  
Total floating rate $231,924
 $3,523,762
 $1,334,250
 $1,232,178
  
Total $231,924
 $7,140,238
 $1,969,618
 $1,592,537
  
(1)Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2)Represents contractual maturity, excluding any unexercised extension options.
(3)These loans were purchased at par in April and May 2017 and were in maturity default at the time of acquisition. At the time the loans were purchased, the Company expected to collect all contractually required payments, including interest. In August 2017, the Company determined that it was probable that the loans would not be repaid in full and therefore, the loans were put on non-accrual status. No impairment was recorded as the Company believes that the fair value of the property exceeds the carrying amount of the loans. The loans had an outstanding balance, including accrued interest, of $259.3 million at the time that they were put on non-accrual status.
(4)In September 2014, we acquired a $26.4 million mortgage loan at a $0.2 million discount and a $5.7 million junior mortgage participation at a $5.7 million discount. The junior mortgage participation was a nonperforming loan at acquisition, is currently on non-accrual status and has no carrying value.
(5)Carrying value is net of the following amounts that were sold or syndicated, which are included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $1.2 million, (b) $12.0 million, (c) $5.1 million (d) $14.6 million, (e) $14.1 million, and (f) $21.2 million.
(6)This loan was repaid in June 2017.
(7)This loan was repaid in March 2017.
(8)This loan was extended in December 2017.
(9)This loan was extended in August 2017.
(10)This loan was extended in September 2017.
(11)$66.1 million of outstanding principal was syndicated in February 2017.
(12)This loan was extended in November 2017.
(13)This loan was repaid in December 2017.
(14)This loan was repaid in November 2017.
(15)This loan was repaid in September 2017.
(16)This loan was contributed to a joint venture in May 2017.
(17)This loan was repaid in January 2017.


109
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

Preferred Equity Investments
As of December 31, 2017 and 2016, we held the following preferred equity investments with an aggregate weighted average current yield of 6.99% at December 31, 2017 (in thousands):
Type 
December 31, 2017
Future Funding
Obligations
 December 31, 2017
Senior
Financing		 
December 31, 2017
Carrying Value (1)
 
December 31, 2016
Carrying Value (1)
 

Mandatory
Redemption (2)
Preferred Equity(3)
 $—
 $272,000
 $144,423
 $—
 April 2021
Preferred Equity(4)
 —
 —
 —
 9,982
  
Preferred Equity(5)
 —
 —
 —
 37,893
  
  $—
 $272,000
 $144,423
 $47,875
  
(1)Carrying value is net of deferred origination fees.
(2)Represents contractual maturity, excluding any unexercised extension options.
(3)In February 2016, we closed on the sale of 885 Third Avenue and retained a preferred equity position in the property. The sale did not meet the criteria for sale accounting under the full accrual method in ASC 360-20, Property, Plant and Equipment - Real Estate Sales. As a result the property remained on our consolidated balance sheet until the criteria was met in April 2017 at which time the property was deconsolidated and the preferred equity investment was recognized.
(4)This investment was redeemed in May 2017.
(5)This investment was redeemed in April 2017.
The following table is a rollforward of our total loan loss reserves at December 31, 2017, 2016 and 2015 (in thousands):
 December 31,
 2017 2016 2015
Balance at beginning of year$—
 $—
 $—
Expensed—
 —
 —
Recoveries—
 —
 —
Charge-offs and reclassifications—
 —
 —
Balance at end of period$—
 $—
 $—
At December 31, 2017, 2016 and 2015, all debt and preferred equity investments were performing in accordance with the terms of the relevant investments, with the exception of a mortgage and junior mortgage participation purchased in maturity default in May 2017 and April 2017, respectively, as discussed in subnote 3 of the Debt Investments table above and a junior mortgage participation acquired in September 2014, which was acquired for zero and has a carrying value of zero, as discussed in subnote 4 of the Debt Investments table above.
We have determined that we have one portfolio segment of financing receivables at December 31, 2017 and 2016 comprising commercial real estate which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling $65.5 million and $99.5 million at December 31, 2017 and 2016, respectively. No financing receivables were 90 days past due at December 31, 2017, with the exception of a mortgage and junior mortgage participation purchased in maturity default in May 2017 and April 2017, respectively, as discussed in subnote 3 of the Debt Investments table above.
6. Investments in Unconsolidated Joint Ventures
We have investments in several real estate joint ventures with various partners. As of December 31, 2017,2022, the book value of these investments was $3.2 billion, net of investments with negative book values totaling $110.2 million for which we have an implicit commitment to fund future capital needs.
As of December 31, 2022, 800 Third Avenue and 21 East 66th Street 605 West 42nd Street, 333 East 22nd Street, One Vanderbilt and certain properties within the Stonehenge Portfolio are VIEs in which we are not the primary beneficiary. Our net equity investment in these VIEs was $606.2 million as of December 31, 2017. As of December 31, 2016, 650 Fifth Avenue,2021, 800 Third Avenue, 21 East 66th Street, 605 West 42nd Street, 333 East 22nd Street, and certain properties within the Stonehenge Portfolio wereare VIEs in which we were not the primary beneficiary. Our net equity investment in these VIEs was $220.1$86.2 million as of December 31, 2016.2022 and $85.6 million as of December 31, 2021. Our maximum loss is limited to the amount of our equity investment in these VIEs. See the "Principles of Consolidation" section of Note 2, "Significant Accounting Policies". All other investments below are voting interest entities. As we do not control the joint ventures listed below, we account for them under the equity method of accounting.
The table below provides general information on each of our joint ventures as of December 31, 2017:

11097
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

The table below provides general information on each of our joint ventures as of December 31, 2022:
PropertyPartner
Ownership
Interest (1)
Economic
Interest (1)
Unaudited Approximate Square Feet
100 Park AvenuePrudential Real Estate Investors49.90%49.90%834,000 
717 Fifth AvenueWharton Properties / Private Investor10.92%10.92%119,500 
800 Third AvenuePrivate Investors60.52%60.52%526,000 
919 Third AvenueNew York State Teacher's Retirement System51.00%51.00%1,454,000 
11 West 34th StreetPrivate Investor / Wharton Properties30.00%30.00%17,150 
280 Park AvenueVornado Realty Trust50.00%50.00%1,219,158 
1552-1560 Broadway (2)
Wharton Properties50.00%50.00%57,718 
10 East 53rd StreetCanadian Pension Plan Investment Board55.00%55.00%354,300 
21 East 66th Street (3)
Private Investors32.28%32.28%13,069 
650 Fifth Avenue (4)
Wharton Properties50.00%50.00%69,214 
121 Greene Street (5)
Wharton Properties50.00%50.00%7,131 
11 Madison AvenuePGIM Real Estate60.00%60.00%2,314,000 
One Vanderbilt AvenueNational Pension Service of Korea / Hines Interest LP71.01%71.01%1,657,198 
Worldwide PlazaRXR Realty / New York REIT24.95%24.95%2,048,725 
1515 BroadwayAllianz Real Estate of America56.87%56.87%1,750,000 
2 Herald SquareIsraeli Institutional Investor51.00%51.00%369,000 
115 Spring StreetPrivate Investor51.00%51.00%5,218 
15 Beekman (6)
A fund managed by Meritz Alternative Investment Management20.00%20.00%221,884 
85 Fifth AvenueWells Fargo36.27%36.27%12,946 
One Madison Avenue (7)
National Pension Service of Korea / Hines Interest LP / International Investor25.50%25.50%1,048,700 
220 East 42nd StreetA fund managed by Meritz Alternative Investment Management51.00%51.00%1,135,000 
450 Park Avenue (8)
Korean Institutional Investor / Israeli Institutional Investor50.10%25.10%337,000 
5 Times Square (9)
RXR Realty led investment group31.55%31.55%1,131,735 
(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of December 31, 2022. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)The joint venture owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway.
(3)We hold a 32.28% interest in three retail units and one residential unit at the property and a 16.14% interest in two residential units at the property.
(4)The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.
(5)During the fourth quarter of 2022, the Company recorded a $6.3 million charge in connection with the pending sale of this investment for a gross consideration of approximately $14.0 million, which closed in February 2023. This charge is included in Depreciable real estate reserves and impairments in the consolidated statement of operations.
(6)In 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.
(7)In 2020, the Company admitted partners to the One Madison Avenue development project, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of our remaining 50.5% interest. We recorded our investment at fair value, which resulted in the recognition of a fair value adjustment of $187.5 million. The fair value of our investment was determined by the terms of the joint venture agreement governing the capitalization of the project. The partners have committed aggregate equity to the project totaling no less than $501.8 million and their ownership interest in the joint venture is based on their capital contributions, up to an aggregate maximum of 49.5%. As of December 31, 2022, the total of the two partners' ownership interests based on equity contributed was 40.0%. In 2021, the Company admitted an additional partner to the development project for a committed aggregate equity investment totaling no less than $259.3 million. The partner's indirect ownership interest in the joint venture is based on it's capital contributions, up to an aggregate maximum of 25.0%. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes and is included in Other liabilities in our consolidated balance sheets at December 31, 2022 and 2021.
(8)The 50.1% ownership interest reflected in this table is comprised of our 25.1% economic interest and a 25.0% economic interest held by a third-party. The third-party's economic interest is held within a joint venture that we consolidate and recognize in Noncontrolling interests in other partnerships on our consolidated balance sheet. An additional third-party owns the remaining 49.9% economic interest in the property.
(9)In September 2022, the Company converted its mezzanine loan position secured by the equity interest in 5 Times Square to an equity interest in a joint venture partnership with the existing equity holders. See Note 5, " Debt and Preferred Equity Investments."



98
PropertyPartner
Ownership
Interest (1)
Economic
Interest (1)
Unaudited Approximate Square Feet
Acquisition Date (2)
Acquisition
Price(2)
(in thousands)
100 Park AvenuePrudential Real Estate Investors49.90%49.90%834,000
February 2000$95,800
717 Fifth AvenueJeff Sutton/Private Investor10.92%10.92%119,500
September 2006251,900
800 Third AvenuePrivate Investors60.52%60.52%526,000
December 2006285,000
1745 BroadwayIvanhoe Cambridge, Inc.56.87%56.87%674,000
April 2007520,000
Jericho Plaza(3)
Onyx Equities/Credit Suisse11.67%11.67%640,000
April 2007210,000
11 West 34th Street
Private Investor/
Jeff Sutton
30.00%30.00%17,150
December 201010,800
3 Columbus Circle(4)
The Moinian Group48.90%48.90%741,500
January 2011500,000
280 Park AvenueVornado Realty Trust50.00%50.00%1,219,158
March 2011400,000
1552-1560 Broadway(5)
Jeff Sutton50.00%50.00%57,718
August 2011136,550
724 Fifth AvenueJeff Sutton50.00%50.00%65,010
January 2012223,000
10 East 53rd StreetCanadian Pension Plan Investment Board55.00%55.00%354,300
February 2012252,500
521 Fifth Avenue
Plaza Global
Real Estate Partners LP
50.50%50.50%460,000
November 2012315,000
21 East 66th Street(6)
Private Investors32.28%32.28%13,069
December 201275,000
650 Fifth Avenue(7)
Jeff Sutton50.00%50.00%69,214
November 2013—
121 Greene StreetJeff Sutton50.00%50.00%7,131
September 201427,400
175-225 Third Street Brooklyn, New YorkKCLW 3rd Street LLC/LIVWRK LLC95.00%95.00%—
October 201474,600
55 West 46th StreetPrudential Real Estate Investors25.00%25.00%347,000
November 2014295,000
Stonehenge Portfolio(8)
VariousVariousVarious1,439,016
February 201536,668
131-137 Spring StreetInvesco Real Estate20.00%20.00%68,342
August 2015277,750
605 West 42nd StreetThe Moinian Group20.00%20.00%927,358
April 2016759,000
11 Madison AvenuePGIM Real Estate60.00%60.00%2,314,000
August 20162,605,000
333 East 22nd Street(9)
Private Investors33.33%33.33%26,926
August 2016—
400 E 57th Street(10)
BlackRock, Inc and Stonehenge Partners51.00%41.00%290,482
October 2016170,000
One Vanderbilt(11)
National Pension Service of Korea/Hines Interest LP71.01%71.01%—
January 20173,310,000
Mezzanine Loan(12)
Private Investors33.33%33.33%—
May 201715,000
Worldwide Plaza(13)
RXR Realty / New York REIT / Private Investor24.35%24.35%2,048,725
October 20171,725,000
1515 Broadway(14)
Allianz Real Estate of America69.87%69.87%1,750,000
November 20171,950,000
(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of December 31, 2017. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)Acquisition date and price represent the date on which the Company initially acquired an interest in the joint venture and the actual or implied gross purchase price for the joint venture on that date. Acquisition date and price are not adjusted for subsequent acquisitions or dispositions of interest.
(3)During the fourth quarter of 2017, the Company recorded a $6.6 million charge in connection with this investment. This charge is included in depreciable real estate reserves in the consolidated statement of operations.
(4)As a result of the sale of a condominium interest in September 2012, Young & Rubicam, Inc., or Y&R, owns floors three through eight at the property. Because the joint venture has an option to repurchase these floors, the gain associated with this sale was deferred.
(5)The purchase price represents only the purchase of the 1552 Broadway interest which comprised approximately 13,045 square feet. The joint venture also owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway.
(6)We hold a 32.28% interest in three retail and two residential units at the property and a 16.14% interest in three residential units at the property.
(7)The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue. In connection with the ground lease obligation, SLG provided a performance guaranty and our joint venture partner executed a contribution agreement to reflect its pro rata obligation. In the event the property is converted into a condominium unit and the landlord elects the purchase option, the joint venture shall be obligated to acquire the unit at the then fair value.

111
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

(8)In March 2017, the Company sold a partial interest in the Stonehenge Portfolio as further described under Sale of Joint Venture Interest of Properties below. In February 2018, the Company, together with its joint venture partner, closed on the sale of one property from the Stonehenge Portfolio.
(9)The joint venture acquired a leasehold interest in the property in October 2016.
(10)In October 2016, the Company sold a 49% interest in this property to an investment account managed BlackRock, Inc. The Company's interest in the property was sold within a consolidated joint venture owned 90% by the Company and 10% by Stonehenge. The transaction resulted in the deconsolidation of the venture's remaining 51% interest in the property. The Company's joint venture with Stonehenge remains consolidated resulting in the combined 51% interest being shown within investments in unconsolidated joint ventures on the Company's balance sheet.
(11)In January 2017, the Company admitted two partners, National Pension Service of Korea and Hines Interest LP, into the One Vanderbilt development project. In April 2017, the criteria for deconsolidation were met, and the development is shown within investments in unconsolidated joint ventures. The partners have committed aggregate equity to the project totaling no less than $525 million and their ownership interest in the joint venture is based on their capital contributions, up to an aggregate maximum of 29.0%. At December 31, 2017 the total of the two partners' ownership interests based on equity contributed was 3.48%.
(12)In May 2017, the Company contributed a mezzanine loan secured by a commercial property in midtown Manhattan to a joint venture and retained a 33.33% interest in the venture. The carrying value is net of $10.0 million that was sold, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting. The loan matures in November 2018.
(13)In September 2017, the Company and RXR Realty formed a joint venture in which each partner owns a 50% interest. In October 2017, this joint venture purchased a 48.7% interest in the property known as Worldwide Plaza from New York REIT. New York REIT owns the remaining 51.3% with its existing partner.
(14)In November 2017, the Company sold a 30.13% interest in 1515 Broadway to affiliates of Allianz Real Estate. The sale did not meet the criteria for sale accounting and as a result the property was accounted for under the profit sharing method at December 31, 2017. Under the profit sharing method the Company recognized its share of the operations of the property and also recognized the other partner's share of depreciation. Included in equity in net income from unconsolidated joint ventures is $0.9 million of depreciation for the year ended December 31, 2017 representing the other partner's share of depreciation. The Company achieved sale accounting upon adoption of ASC 610-20 in January 2018 and closed on the sale of an additional 12.87% interest in the property to Allianz in February 2018.
Acquisition, Development and Construction Arrangements
Based on the characteristics of the following arrangements, which are similar to those of an investment, combined with the expected residual profit of not greater than 50%, we have accounted for these debt and preferred equity investments under the equity method. As of December 31, 2017 and 2016, the carrying value for acquisition, development and construction arrangements were as follows (in thousands):
Loan Type December 31, 2017 December 31, 2016 Maturity Date
Mezzanine Loan and Preferred Equity $100,000
 $100,000
 March 2018
Mezzanine Loan(1)
 44,823
 45,622
 February 2022
Mezzanine Loan(2)
 26,716
 24,542
 July 2036
  $171,539
 $170,164
  
(1)We have an option to convert our loan to an equity interest subject to certain conditions. We have determined that our option to convert the loan to equity is not a derivative financial instrument pursuant to GAAP.
(2)The Company has the ability to convert this loan into an equity position starting in 2021 and the borrower is able to force this conversion in 2024.
SaleDisposition of Joint Venture Interests or Properties
The following table summarizes the investments in unconsolidated joint ventures sold during the years ended December 31, 2017, 2016,2022, 2021, and 2015:2020:
PropertyOwnership Interest SoldDisposition DateGross Asset Valuation
(in millions)
(Loss) Gain
on Sale
(in millions) (1) (2)
Stonehenge PortfolioVariousApril 2022$1.0 $— 
400 East 57th Street (3)
41.00%September 2021133.5 (1.0)
605 West 42nd Street - Sky20.00%June 2021858.1 8.9 
55 West 46th Street - Tower 4625.00%March 2021275.0 (15.2)
885 Third Avenue (4)
N/AJanuary 2021N/AN/A
333 East 22nd Street33.33%December 20201.6 3.0 
Property Ownership Interest Disposition Date Type of Sale 
Gross Asset Valuation
(in thousands)(1)
 
Gain (Loss)
on Sale
(in thousands)(2)
102 Greene Street 10.00% September 2017 Ownership Interest $43,500
 $283
Stonehenge Portfolio (partial) Various March 2017 Ownership Interest 300,000
 871
EOP Denver 0.48% September 2016 Ownership Interest 180,700
 300
33 Beekman (3)
 45.90% May 2016 Property 196,000
 33,000
EOP Denver 4.79% March 2016 Ownership Interest 180,700
 2,800
7 Renaissance Square 50.00% March 2016 Property 20,700
 4,200
1 Jericho Plaza (4)
 66.11% February 2016 Ownership Interest 95,200
 3,300
The Meadows 50.00% August 2015 Property 121,100
 (1,600)
315 West 36th Street 35.50% September 2015 Ownership Interest 115,000
 16,300
(1)Represents the Company's share of the gain or loss

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
(2)For the year ended December 31, 2017

(1)Represents implied gross valuation for the joint venture or sales price of the property.
(2)Represents the Company's share of the gain or loss. The gain on sale is net of $0, $1.1 million, and $1.22021, the (losses) gains on sale are net of $1.4 million of employee compensation accrued in connection with the realization of the investment dispositions. There were no amounts accrued for employee compensation accrued in connection with the realization of these investment gains in the years ended December 31, 2017, 2016, and 2015, respectively. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.
(3)In connection with the sale of the property, we also recognized a promote of $10.8 million.
(4)Our ownership percentage was reduced in the first quarter of 2016, from 77.78% to 11.67%, upon completion of a restructuring of the joint venture.
In May 2017, our investment in a joint venture that owned two mezzanine notes secured by interests in the entity that owns 76 11th Avenue was repaid afteryears ended December 31, 2022 and 2020. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.
(3)In connection with our agreement to sell the joint venture received repaymentproperty in April 2021, we recorded a charge of $5.7 million, which is included in Depreciable real estate reserves and impairments in the consolidated statements of operations.
(4)In January 2021, pursuant to the partnership documents, certain participating rights of the underlying loans.
In May 2017,common member expired. As a result, it was determined that we recognized a gainare the primary beneficiary of $13.0 million related to the saleVIE and the investment was consolidated in May 2014 of our ownership interest in 747 Madison Avenue. The sale did not meet the criteria for sale accounting at that time and, therefore, remained on our consolidated financial statements. The sale criteria was met in May of 2017 resulting in recognition of the deferred gain on the sale.See Note 3, "Property Acquisitions."

Joint Venture Mortgages and Other Loans Payable
We generally finance our joint ventures with non-recourse debt. In certain cases we have providedmay provide guarantees or master leases, for tenant space, which terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The first mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases atas of December 31, 20172022 and 2016,2021, respectively, are as follows (amounts(dollars in thousands):
99
Property 
Economic Interest (1)
 Maturity Date 
Interest
Rate (2)
 December 31, 2017 December 31, 2016
Fixed Rate Debt:           
521 Fifth Avenue 50.50% November 2019  3.73% $170,000
 $170,000
717 Fifth Avenue (3)
 10.92% July 2022  4.45% 300,000
 300,000
717 Fifth Avenue (3)
 10.92% July 2022  5.50% 355,328
 355,328
650 Fifth Avenue (4)
 50.00% October 2022  4.46% 210,000
 —
650 Fifth Avenue (4)
 50.00% October 2022  5.45% 65,000
 —
21 East 66th Street 32.28% April 2023  3.60% 12,000
 12,000
3 Columbus Circle 48.90% March 2025  3.61% 350,000
 350,000
1515 Broadway 69.87% March 2025  3.93% 872,528
 —
11 Madison Avenue 60.00% September 2025  3.84% 1,400,000
 1,400,000
800 Third Avenue 60.52% February 2026  3.37% 177,000
 177,000
400 East 57th Street 41.00% November 2026  3.00% 100,000
 100,000
Worldwide Plaza 24.35% November 2027  3.98% 1,200,000
 —
Stonehenge Portfolio (5)
 Various
 Various  4.17% 357,282
 362,518
1745 Broadway (6)
        —
 340,000
Total fixed rate debt        $5,569,138
 $3,566,846
Floating Rate Debt:           
Jericho Plaza (7)
 11.67% March 2018 L+4.15% $81,099
 $76,993
724 Fifth Avenue 50.00% April 2018 L+2.42% 275,000
 275,000
175-225 Third Street Brooklyn, New York 95.00% June 2018 Prime+1.00% 40,000
 40,000
280 Park Avenue 50.00% September 2019 L+1.73% 1,200,000
 900,000
121 Greene Street 50.00% November 2019 L+1.50% 15,000
 15,000
1745 Broadway (8)
 56.87% January 2020 L+1.85% 345,000
 —
10 East 53rd Street 55.00% February 2020 L+2.25% 170,000
 125,000
131-137 Spring Street 20.00% August 2020 L+1.55% 141,000
 141,000
1552 Broadway 50.00% October 2020 L+2.65% 195,000
 185,410
55 West 46th Street (9)
 25.00% November 2020 L+2.13% 171,444
 157,322
11 West 34th Street 30.00% January 2021 L+1.45% 23,000
 23,000
100 Park Avenue 49.90% February 2021 L+1.75% 360,000
 360,000
One Vanderbilt (10)
 71.01% September 2021 L+3.50% 355,535
 —

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

Property
Economic Interest (1)
Current Maturity Date
Final Maturity Date (2)
Interest
Rate (3)
December 31, 2022December 31, 2021
Fixed Rate Debt:
717 Fifth Avenue10.92 %
   July 2022 (4)
   July 2022 (4)
5.02%$655,328 $655,328 
650 Fifth Avenue50.00 %April 2023April 20235.45%65,000 — 
21 East 66th Street32.28 %April 2023April 20283.60%12,000 12,000 
919 Third Avenue51.00 %June 2023June 20235.12%500,000 500,000 
220 East 42nd Street51.00 %June 2023June 20255.75%510,000 — 
280 Park Avenue50.00 %September 2023September 20245.81%1,200,000 — 
5 Times Square31.55 %September 2024September 20267.00%400,000 — 
10 East 53rd Street55.00 %February 2025February 20255.35%220,000 — 
1515 Broadway56.87 %March 2025March 20253.93%782,321 801,845 
450 Park Avenue25.10 %June 2025June 20276.10%267,000 — 
11 Madison Avenue60.00 %September 2025September 20253.84%1,400,000 1,400,000 
One Madison Avenue (5)
25.50 %November 2025November 20263.94%467,008 — 
800 Third Avenue60.52 %February 2026February 20263.48%177,000 177,000 
Worldwide Plaza24.95 %November 2027November 20273.98%1,200,000 1,200,000 
One Vanderbilt Avenue71.01 %July 2031July 20312.95%3,000,000 3,000,000 
650 Fifth Avenue— 275,000 
Stonehenge Portfolio— 195,493 
Total fixed rate debt$10,855,657 $8,216,666 
Floating Rate Debt:
1552 Broadway50.00 %
December 2022 (6)
December 2022 (6)
L+2.65%$193,132 $193,132 
11 West 34th Street30.00 %
January 2023 (7)
January 2023 (7)
L+1.45%23,000 23,000 
650 Fifth Avenue50.00 %April 2023April 2023S+2.50%210,000 — 
121 Greene Street50.00 %May 2023May 2023S+2.10%12,550 13,228 
115 Spring Street51.00 %September 2023September 2023L+3.40%65,550 65,550 
2 Herald Square51.00 %November 2023November 2023S+2.06%182,500 200,989 
100 Park Avenue49.90 %December 2023December 2025L+2.25%360,000 360,000 
15 Beekman (8)
20.00 %January 2024July 2025L+1.50%86,738 43,566 
5 Times Square31.55 %September 2024September 2026S+5.77%495,924 — 
21 East 66th Street32.28 %June 2033June 2033T+2.75%586 632 
220 East 42nd Street— 510,000 
280 Park Avenue— 1,200,000 
10 East 53rd Street— 220,000 
One Madison Avenue— 169,629 
Total floating rate debt$1,629,980 $2,999,726 
Total joint venture mortgages and other loans payable$12,485,637 $11,216,392 
Deferred financing costs, net(136,683)(130,516)
Total joint venture mortgages and other loans payable, net$12,348,954 $11,085,876 
(1)Economic interest represents the Company's interests in the joint venture as of December 31, 2022. Changes in ownership or economic interests, if any, within the current year are disclosed in the notes to the investment in unconsolidated joint ventures table above.
Property 
Economic Interest (1)
 Maturity Date 
Interest
Rate (2)
 December 31, 2017 December 31, 2016
605 West 42nd Street 20.00% August 2027 L+1.44% 550,000
 539,000
21 East 66th Street 32.28% June 2033 1 Year Treasury+2.75% 1,648
 1,726
Stonehenge Portfolio Various
 April 2018 L+1.25% 55,340
 65,577
650 Fifth Avenue (11)
        —
 77,500
Total floating rate debt        $3,979,066
 $2,982,528
Total joint venture mortgages and other loans payable    $9,548,204
 $6,549,374
Deferred financing costs, net        (136,103) (95,408)
Total joint venture mortgages and other loans payable, net    $9,412,101
 $6,453,966
(1)Economic interest represents the Company's interests in the joint venture as of December 31, 2017. Changes in ownership or economic interests, if any, within the current year are disclosed in the notes to the investment in unconsolidated joint ventures note above.
(2)Interest rate as of December 31, 2017, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated interest rate spread over 30-day LIBOR, unless otherwise specified.
(3)These loans are comprised of a $300.0 million fixed rate mortgage loan and $355.3 million mezzanine loan. The mezzanine loan is subject to accretion(2)Reflects exercise of all available options. The ability to exercise extension options may be subject to certain conditions, including meeting tests based on the difference between contractual interest rate and contractual pay rate.
(4)
In November 2017, we closed on a $65.0 million mezzanine loan with a fixed interest rate of 545 basis points and a maturity date of October 2022. As a result, the $225.0 million mortgage loan was reduced to $210.0 million with a fixed interest rate of 446 basis points. These loans are now comprised of a $210.0 million fixed rate mortgage loan and $65.0 million fixed rate mezzanine loan.
(5)Amount is comprised of $33.8 million, $137.1 million, $171.6 million, and $14.8 million in fixed-rate mortgages that mature in January 2018, August 2019, June 2024, and February 2027, respectively. In January 2018, the fixed-rate mortgage set to mature in January 2018 was refinanced with a $38.0 million mortgage loan with a floating interest rate of 140 basis points over 30-day LIBOR and a maturity date of January 2021.
(6)In January 2017, this loan was refinanced with a floating rate loan as shown above.
(7)
The property secures a two year $100.0 million loan, of which $81.1 million is currently outstanding.
(8)
This loan has a committed amount of $375.0 million, of which $30.0 million was unfunded as of December 31, 2017.
(9)This loan has a committed amount of $195.0 million, of which $23.6 million was unfunded as of December 31, 2017.
(10)This loan is a $1.5 billion construction facility in connection with the development of One Vanderbilt. This facility bears interest at 350 basis points over 30-day LIBOR, with reductions based on meeting certain conditions, and has an initial five-year term with two one-year extension options. Advances under the loan are subject to incurred costs, funded equity, loan to value thresholds, and entering into construction contracts.
(11)In September 2017, this loan was refinanced with a fixed rate loan as shown above.
We act as the operating partnerperformance of the property.
(3)Interest rates as of December 31, 2022, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR ("L"), Term SOFR ("S") or 1-year Treasury ("T").
100
SL Green Realty Corp. and day-to-day managerSL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
(4)This loan matured in July 2022. The Company is in discussions with the lender on a resolution.
(5)The loan is a $1.25 billion construction facility with an initial term of five years with one, one year extension option. Advances under the loan are subject to costs incurred. In conjunction with the loan, we provided partial guarantees for all our joint ventures, except for Worldwide Plaza, 800 Third Avenue, Jericho Plaza, 280 Park Avenue, 3 Columbus Circle, 21 East 66th Street, 175-225 Third Street, 605 West 42nd Street, 400 East 57th Street,interest and principal payments, the Stonehenge Portfolio. amounts of which are based on certain construction milestones and operating metrics.
(6)In January 2023, the maturity date of the loan was extended by one month.
(7)This loan matured in February 2023. The Company is in discussions with the lender on a resolution.
(8)This loan is a $125.0 million construction facility. Advances under the loan are subject to costs incurred.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $22.6$24.0 million, $4.0$19.6 million and $3.4$15.8 million from these services, net of our ownership share of the joint ventures, for the years ended December 31, 2017, 2016,2022, 2021, and 2015,2020, respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.
The combined balance sheets for the unconsolidated joint ventures, atas of December 31, 20172022 and 2016,2021, are as follows (in thousands):

December 31, 2022December 31, 2021
Assets (1)
Commercial real estate property, net$15,989,642 $14,763,874 
Cash and restricted cash709,299 768,510 
Tenant and other receivables, related party receivables, and deferred rents receivable601,552 533,455 
Other assets2,551,426 1,776,030 
Total assets$19,851,919 $17,841,869 
Liabilities and equity (1)
Mortgages and other loans payable, net$12,348,954 $11,085,876 
Deferred revenue/gain1,077,901 1,158,242 
Lease liabilities1,000,356 980,595 
Other liabilities456,537 352,499 
Equity4,968,171 4,264,657 
Total liabilities and equity$19,851,919 $17,841,869 
Company's investments in unconsolidated joint ventures$3,190,137 $2,997,934 
(1)As of December 31, 2022, $547.6 million of net unamortized basis differences between the amount at which our investments are carried and our share of equity in net assets of the underlying property will be amortized through equity in net income (loss) from unconsolidated joint ventures over the remaining life of the underlying items having given rise to the differences.
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the years ended December 31, 2022, 2021, and 2020 are as follows (unaudited, in thousands):
Year Ended December 31,
202220212020
Total revenues$1,339,364 $1,228,364 $1,133,217 
Operating expenses240,002 203,332 180,201 
Real estate taxes252,806 225,104 220,633 
Operating lease rent26,152 22,576 24,134 
Interest expense, net of interest income431,865 342,910 325,500 
Amortization of deferred financing costs27,754 31,423 20,427 
Depreciation and amortization465,100 484,130 407,834 
Total expenses$1,443,679 $1,309,475 $1,178,729 
Loss on early extinguishment of debt(467)(2,017)(194)
Net loss before (loss) gain on sale$(104,782)$(83,128)$(45,706)
Company's equity in net loss from unconsolidated joint ventures$(57,958)$(55,402)$(25,195)
114
101
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

 December 31, 2017 December 31, 2016
Assets   
Commercial real estate property, net$12,822,133
 $9,131,717
Cash and restricted cash494,909
 328,455
Tenant and other receivables, related party receivables, and deferred rents receivable, net of allowance349,944
 232,778
Debt and preferred equity investments, net202,539
 336,164
Other assets1,407,806
 683,481
Total assets$15,277,331
 $10,712,595
Liabilities and members' equity   
Mortgages and other loans payable, net$9,412,101
 $6,453,966
Deferred revenue/gain985,648
 356,414
Other liabilities411,053
 391,500
Members' equity4,468,529
 3,510,715
Total liabilities and members' equity$15,277,331
 $10,712,595
Company's investments in unconsolidated joint ventures$2,362,989
 $1,890,186
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the years ended December 31, 2017, 2016, and 2015 are as follows (in thousands):
 Year Ended December 31,
 2017 2016 2015
Total revenues$904,230
 $712,689
 $576,845
Operating expenses157,610
 126,913
 106,613
Ground rent16,794
 14,924
 14,083
Real estate taxes142,774
 111,673
 89,734
Interest expense, net of interest income250,063
 197,741
 199,126
Amortization of deferred financing costs23,026
 24,829
 13,394
Transaction related costs146
 5,566
 615
Depreciation and amortization279,419
 199,011
 149,023
Total expenses$869,832
 $680,657
 $572,588
Loss on early extinguishment of debt(7,899) (1,606) (1,089)
Net income before gain on sale$26,499
 $30,426
 $3,168
Company's equity in net income from unconsolidated joint ventures$21,892
 $11,874
 $13,028
7. Deferred Costs
Deferred costs atas of December 31, 20172022 and 20162021 consisted of the following (in thousands):
December 31,
20222021
Deferred leasing costs$407,188 $400,419 
Less: accumulated amortization(286,031)(275,924)
Deferred costs, net$121,157 $124,495 

8. Mortgages and Other Loans Payable
 December 31,
 2017 2016
Deferred leasing costs$443,341
 $468,971
Less: accumulated amortization(217,140) (201,371)
Deferred costs, net$226,201
 $267,600
The mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments as of December 31, 2022 and 2021, respectively, were as follows (dollars in thousands):

PropertyCurrent Maturity Date
Final Maturity Date (1)
Interest
Rate (2)
December 31, 2022December 31, 2021
Fixed Rate Debt:
719 Seventh AvenueSeptember 2023September 20234.70%$50,000 $— 
7 Dey / 185 Broadway (3)
November 2023November 20237.59%200,000 — 
420 Lexington AvenueOctober 2024October 20403.99%283,064 288,660 
100 Church StreetJune 2025June 20275.89%370,000 — 
Landmark SquareJanuary 2027January 20274.90%100,000 100,000 
485 Lexington AvenueFebruary 2027February 20274.25%450,000 450,000 
245 Park AvenueJune 2027June 20274.22%1,712,750 — 
100 Church Street— 200,212 
1080 Amsterdam— 34,537 
Total fixed rate debt$3,165,814 $1,073,409 
Floating Rate Debt:
7 Dey / 185 Broadway (3)
November 2023November 2023S+2.85%$10,148 $— 
690 Madison AvenueJuly 2024July 2025L+1.50%60,000 60,000 
719 Seventh Avenue— 50,000 
609 Fifth Avenue— 52,882 
7 Dey / 185 Broadway (3)
— 198,169 
Total floating rate debt$70,148 $361,051 
Total fixed rate and floating rate debt$3,235,962 $1,434,460 
Mortgages reclassed to liabilities related to assets held for sale— (34,537)
Total mortgages and other loans payable$3,235,962 $1,399,923 
Deferred financing costs, net of amortization(8,399)(5,537)
Total mortgages and other loans payable, net$3,227,563 $1,394,386 
(1)Reflects exercise of all available options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(2)Interest rate as of December 31, 2022, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR ("L") or Term SOFR ("S"), unless otherwise specified.
(3)This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three year term with two one year extension options. Both extension options were exercised in October 2021 and 2022, respectively. Advances under the loan are subject to incurred costs and funded equity requirements..
As of December 31, 2022 and 2021, the gross book value of the properties collateralizing the mortgages and other loans payable was approximately $3.8 billion and $2.1 billion, respectively.
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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

8. Mortgages and Other Loans Payable
The first mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments at December 31, 2017 and 2016, respectively, were as follows (amounts in thousands):
Property 
Maturity
Date
 
Interest
Rate (1)
 December 31, 2017 December 31, 2016
Fixed Rate Debt:         
Unsecured Loan June 2018  4.81% $16,000
 $16,000
One Madison Avenue May 2020  5.91% 486,153
 517,806
762 Madison Avenue February 2022  5.00% 771
 7,694
100 Church Street July 2022  4.68% 217,273
 221,446
919 Third Avenue (2)
 June 2023  5.12% 500,000
 500,000
420 Lexington Avenue October 2024  3.99% 300,000
 300,000
400 East 58th Street (3)
 November 2026  3.00% 40,000
 40,000
Landmark Square January 2027  4.90% 100,000
 100,000
485 Lexington Avenue February 2027  4.25% 450,000
 450,000
1080 Amsterdam (4)
 February 2027  3.58% 36,363
 —
315 West 33rd Street February 2027  4.17% 250,000
 —
Series J Preferred Units (5)
 April 2051  3.75% 4,000
 4,000
1515 Broadway (6)
      —
 888,531
885 Third Avenue (7)
    
 —
 267,650
FHLBNY Facility (8)
      —
 105,000
FHLBNY Facility (8)
      —
 100,000
Total fixed rate debt      $2,400,560
 $3,518,127
Floating Rate Debt:         
719 Seventh Avenue (9)
 February 2018 L+3.05% $41,622
 $37,388
183, 187 Broadway & 5-7 Dey Street May 2018 L+2.70% 58,000
 58,000
2017 Master Repurchase Agreement June 2018 L+2.38% 90,809
 —
220 East 42nd Street October 2020 L+1.60% 275,000
 275,000
2016 Master Repurchase Agreement (10)
      —
 184,642
One Vanderbilt Avenue (11)
      —
 64,030
1080 Amsterdam (12)
      —
 3,525
Total floating rate debt      $465,431
 $622,585
Total fixed rate and floating rate debt      $2,865,991
 $4,140,712
Mortgages reclassed to liabilities related to assets held for sale      —
 —
Total mortgages and other loans payable      $2,865,991
 $4,140,712
Deferred financing costs, net of amortization      (28,709) (66,882)
Total mortgages and other loans payable, net      $2,837,282
 $4,073,830
(1)Interest rate as of December 31, 2017, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated interest rate spread over 30-day LIBOR, unless otherwise specified.
(2)We own a 51.0% controlling interest in the consolidated joint venture that is the borrower on this loan. In January 2018, the partnership agreement for our investment in the property at 919 Third Avenue was modified resulting in our partner now having substantive participating rights in the venture. As a result the investment will no longer be deemed a VIE and our investment in the property will be deconsolidated as of January 1, 2018.
(3)
The loan carries a fixed interest rate of 300 basis points for the first five years and is prepayable without penalty at the end of year five.
(4)
The loan is comprised of a $35.5 million mortgage loan and $0.9 million subordinate loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of year five.
(5)In connection with the acquisition of a commercial real estate property, the Operating Partnership issued $4.0 million, 3.75% Series J Preferred Units of limited partnership interest, or the Series J Preferred Units, with a mandatory liquidation preference of $1,000 per unit. The Series J Preferred Units are accounted for as debt because they can be redeemed in cash by the Operating Partnership on the earlier of (i) the date of the sale of the property or (ii) April 30, 2051 or at the option of the unitholders as provided for in the related agreement.

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

(6)In November 2017, the Company sold a 30.13% interest in 1515 Broadway to affiliates of Allianz Real Estate. The sale did not meet the criteria for sale accounting and as a result the property was accounted for under the profit sharing method. This property is presented as an unconsolidated joint venture as of December 31, 2017. The Company achieved sale accounting upon adoption of ASC 610-20 in January 2018 and closed on the sale of an additional 12.87% interest in the property to Allianz in February 2018.
(7)In February 2016, we closed on the sale of 885 Third Avenue. The sale did not meet the criteria for sale accounting at that time. In April 2017, the mortgage was refinanced by the buyer, resulting in the Company deconsolidating the property from its financial statements in the second quarter of 2017.
(8)The facility was repaid in January 2017.
(9)
In January 2018, we exercised an one year extension option to extend the maturity date to February 2019.
(10)The master repurchase agreement was repaid in October 2017.
(11)
In September 2016, we closed on a $1.5 billion construction facility in connection with the development of One Vanderbilt Avenue. In January 2017, we admitted two partners, National Pension Service of Korea and Hines Interest LP, into the One Vanderbilt Avenue development project. In April 2017, the criteria for deconsolidation were met, and the development is shown within investments in unconsolidated joint ventures. See Note 6, "Investments in Unconsolidated Joint Ventures".
(12)In January 2017, this loan was refinanced with a fixed rate loan as shown above.
At December 31, 2017 and 2016, the gross book value of the properties and debt and preferred equity investments collateralizing the mortgages and other loans payable, not including assets held for sale, was approximately $4.8 billion and $6.0 billion, respectively.
Federal Home Loan Bank of New York ("FHLB") Facility
TheAs of December 31, 2020, the Company’s wholly-owned subsidiary, BelmontTiconderoga Insurance Company, or Belmont,Ticonderoga, a New YorkVermont licensed captive insurance company, was a member of the Federal Home Loan Bank of New York, or FHLBNY. In January 2017, allAs a member, Ticonderoga was able to borrow funds borrowed from the FHLBNY in the form of secured advances that bore interest at a floating rate. As a result of a Final Ruling from the Federal Housing Finance Authority, the regulator of the Federal Home Loan Bank system, all captive insurance company memberships were terminated as of February 2021. As such, all advances to Ticonderoga were repaid and Belmont's membership was terminated in February 2017.prior to such termination.
Master Repurchase AgreementsAgreement
The Company has entered into twoa Master Repurchase Agreements,Agreement, or MRAs,MRA, known as the 2016 MRA and 2017 MRA, which provideprovided us with the ability to sell certain debtmortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managingIn April 2018, we increased the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facilities permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to recollateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity through the 2017 credit facility, as defined below.
In June 2017, we entered into the 2017 MRA, with a maximum facility capacity offrom $300.0 million to $400.0 million. The facility bearsbore interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate and has an initial one year term, with two one year extension options. At December 31, 2017, the facility had a carrying value of $90.1 million, net of deferred financing costs.
In July 2016, we entered into a restated 2016 MRA, with a maximum facility capacity of $300.0 million.advanced rate. The facility bears interest ranging from 225matured in June 2022 and 400 basis points over 30-day LIBOR depending on the pledged collateral and has an initial two-year term, with a one year extension option. Since December 6, 2015, we have been required to pay monthly in arrears a 25 basis point fee on the excess of $150.0 million over the average daily balance during the period when the average daily balance is less than $150.0 million. At December 31, 2017, the facility had a carrying value of $(1.2) million, representing deferred financing costs presented within other liabilities.was not extended.

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

9. Corporate Indebtedness
20172021 Credit Facility
In November 2017,December 2021, we entered into an amendment to theamended and restated credit facility, referred to as the 2021 credit facility, that was previously amended by the Company in November 2017, or the 2017 credit facility, thatand was originally entered into by the Company in November 2012, or the 2012 credit facility. As of December 31, 2017,2022, the 20172021 credit facility consisted of a $1.5$1.25 billion revolving credit facility, a $1.3$1.05 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of March 31, 2022, March 31, 2023,May 15, 2026, May 15, 2027, and November 21, 2024, respectively. The revolving credit facility has two six-month as-of-right extension options to March 31, 2023.May 15, 2027. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.
As of December 31, 2017,2022, the 20172021 credit facility bore interest at a spread over 30-day LIBORadjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) 82.572.5 basis points to 155140 basis points for loans under the revolving credit facility, (ii) 9080 basis points to 175160 basis points for loans under Term Loan A, and (iii) 15085 basis points to 245165 basis points for loans under Term Loan B, in each case based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category.
At
As of December 31, 2017,2022, the applicable spread over adjusted Term SOFR plus 10 basis points was 100105 basis points for the revolving credit facility, 110120 basis points for Term Loan A, and 165125 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long termlong-term indebtedness of the Company. As of December 31, 2017,2022, the facility fee was 2025 basis points.
As of December 31, 2017,2022, we had $11.8$2.0 million of outstanding letters of credit, $40.0$450.0 million drawn under the revolving credit facility and $1.5$1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $1.4 billion$800.0 million under the 20172021 credit facility. AtAs of December 31, 20172022 and December 31, 2016,2021, the revolving credit facility had a carrying value of $30.3$443.2 million and $(6.3)$381.3 million, respectively, net of deferred financing costs. TheAs of December 31, 2016 carrying value represents deferred financing costs and is presented within other liabilities. At December 31, 20172022 and December 31, 2016,2021, the term loan facilities had a carrying value of $1.5$1.2 billion and $1.2 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2017 credit facility. ROP is a guarantor under the 20172021 credit facility.
The 20172021 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
2022 Term Loan
In October 2022, we entered into a term loan agreement, referred to as the 2022 term loan. As of December 31, 2022, the 2022 term loan consisted of a $400.0 million term loan with a maturity date of October 6, 2023. The 2022 term loan has one six-month as-of-right extension option to April 6, 2024. We also have an option, subject to customary conditions, to increase the capacity of the 2022 term loan to $500.0 million on or before January 7, 2023 without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions. In January 2023, the 2022 term loan was increased by $25.0 million to $425.0 million.
As of December 31, 2022, the 2022 term loan bore interest at a spread over adjusted Term SOFR plus 10 basis points, ranging from 100 basis points to 180 basis points, in each case based on the credit rating assigned to the senior unsecured long-term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category. As of December 31, 2022, the applicable spread over adjusted Term SOFR plus 10 basis points was 140 basis points. As of December 31, 2022, the 2022 term loan had a carrying value of $398.2 million, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2022 term loan.
The 2022 term loan includes certain restrictions and covenants (see Restrictive Covenants below).
Senior Unsecured Notes
The following table sets forth our senior unsecured notes and other related disclosures as of December 31, 20172022 and 2016,2021, respectively, by scheduled maturity date (dollars in thousands):
IssuanceDecember 31,
2022
Unpaid
Principal
Balance		December 31,
2022
Accreted
Balance		December 31,
2021
Accreted
Balance
Interest Rate (1)
Initial Term
(in Years)		Maturity Date
December 17, 2015 (2)
$100,000 $100,000 $100,000 4.27 %10December 2025
October 5, 2017 (3)
— — 499,913 3.25 %5October 2022
November 15, 2012— — 301,002 4.50 %10December 2022
$100,000 $100,000 $900,915 
Deferred financing costs, net(308)(1,607)
$100,000 $99,692 $899,308 
Issuance 
December 31,
2017
Unpaid
Principal
Balance
 
December 31,
2017
Accreted
Balance
 
December 31,
2016
Accreted
Balance
 
Coupon
Rate (1)
 
Initial Term
(in Years)
 Maturity Date
August 5, 2011 (2)
 $250,000
 $249,953
 $249,880
 5.00% 7 August 2018
March 16, 2010 (2)
 250,000
 250,000
 250,000
 7.75% 10 March 2020
October 5, 2017 (3)
 500,000
 499,489
 —
 3.25% 5 October 2022
November 15, 2012 (4)
 300,000
 305,163
 200,000
 4.50% 10 December 2022
December 17, 2015 (2)
 100,000
 100,000
 100,000
 4.27% 10 December 2025
October 12, 2010 (5)
 —
 —
 334,077
      
  $1,400,000
 $1,404,605
 $1,133,957
      
Deferred financing costs, net   (8,666) (5,642)      
  $1,400,000
 $1,395,939
 $1,128,315
      
(1)Interest rate as of December 31, 2022, taking into account interest rate hedges in effect during the period.
(1)Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.
(2)Issued by the Company, the Operating Partnership and ROP, as co-obligors.
(3)Issued by the Operating Partnership with the Company and ROP as guarantors.
(4)
In October 2017, the Company, the Operating Partnership and ROP, as co-obligors, issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334%.

(2)Issued by the Company and the Operating Partnership as co-obligors.
(3)Issued by the Operating Partnership with the Company as the guarantor.
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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

(5)In accordance with the terms of the indenture, the notes became exchangeable commencing September 14, 2017 and the Operating Partnership elected to settle exchanges in cash. In October 2017, all note holders elected to exchange the notes and the notes were repaid for $350.8 million, excluding accrued interest based on the applicable exchange rate.
Restrictive Covenants
The terms of the 20172021 credit facility, 2022 term loan and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of December 31, 20172022 and 2016,2021, we were in compliance with all such covenants.
Junior Subordinated Deferrable Interest Debentures
In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments. The Trust preferred securities are redeemable at the option of the Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense.
Principal Maturities
Combined aggregate principal maturities of mortgages and other loans payable, 2017the 2021 credit facility, the 2022 term loan, trust preferred securities, senior unsecured notes and our share of joint venture debt as of December 31, 2017,2022, including as-of-right extension options and put options, were as follows (in thousands):
 
Scheduled
Amortization
 Principal 
Revolving
Credit
Facility
 Unsecured Term Loans 
Trust
Preferred
Securities
 
Senior
Unsecured
Notes
 Total 
Joint
Venture
Debt
2018$37,971
 $206,431
 $—
 $—
 $—
 $250,000
 $494,402
 $200,250
201942,289
 —
 —
 —
 —
 —
 42,289
 717,682
202023,487
 679,531
 —
 —
 —
 250,000
 953,018
 473,809
202111,656
 —
 —
 —
 —
 —
 11,656
 449,740
20229,448
 198,555
 —
 —
 —
 800,000
 1,008,003
 223,330
Thereafter16,675
 1,639,948
 40,000
 1,500,000
 100,000
 100,000
 3,396,623
 2,119,481
 $141,526
 $2,724,465
 $40,000
 $1,500,000
 $100,000
 $1,400,000
 $5,905,991
 $4,184,292
Scheduled
Amortization		PrincipalRevolving
Credit
Facility		Unsecured Term LoansTrust
Preferred
Securities		Senior
Unsecured
Notes		TotalJoint
Venture
Debt
2023$5,827 $260,148 $— $— $— $— $265,975 $1,155,465 
20244,488 332,749 — 600,000 — — 937,237 894,655 
2025— 370,000 — — — 100,000 470,000 1,466,750 
2026— — — — — — — 226,224 
2027— 2,262,750 450,000 1,000,000 — — 3,712,750 299,417 
Thereafter— — — 50,000 100,000 — 150,000 2,130,404 
$10,315 $3,225,647 $450,000 $1,650,000 $100,000 $100,000 $5,535,962 $6,172,915 
Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):
Year Ended December 31,
202220212020
Interest expense before capitalized interest$166,493 $145,197 $185,934 
Interest on financing leases4,555 5,448 8,091 
Interest capitalized(82,444)(78,365)(75,167)
Amortization of discount on assumed debt1,855 — — 
Interest income(986)(1,389)(2,179)
Interest expense, net$89,473 $70,891 $116,679 

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 Year Ended December 31,
 2017 2016 2015
Interest expense before capitalized interest$284,649
 $348,062
 $357,926
Interest capitalized(26,020) (24,067) (31,108)
Interest income(1,584) (2,796) (2,948)
Interest expense, net$257,045
 $321,199
 $323,870
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
10. Related Party Transactions
Cleaning/ Security/ Messenger and Restoration Services
Alliance Building Services, or Alliance, and its affiliates, arewhich provide services to certain properties owned by us, were previously partially owned by Gary Green, a son of Stephen L. Green, who serves as a member and as the chairman emeritus of our boardBoard of directors, and provide services to certain properties owned by us.Directors. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

cleaning, extermination, security, messenger, and restoration services, respectively. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.
Income earned from the profit participation, which is included in otherOther income on the consolidated statements of operations, was $3.9$1.4 million, $3.5$1.7 million and $3.8$1.4 million for the years ended December 31, 2017, 20162022, 2021 and 2015,2020, respectively.
We also recorded expenses, inclusive of capitalized expenses, of $22.6$8.6 million, $23.4$14.0 million and $21.3$13.3 million for the years ended December 31, 2017, 20162022, 2021 and 2015,2020, respectively, for these services (excluding services provided directly to tenants).
Management Fees
S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. We received management fees from this entity of $0.5$0.6 million, $0.7 million and $0.5$0.6 million for the years ended December 31, 2017, 2016,2022, 2021, and 20152020 respectively.
One Vanderbilt Avenue Investment
In December 2016, we entered into agreements with entities owned and controlled by our Chairman and CEO, Marc Holliday, and our President, Andrew Mathias, pursuant to which they agreed to make an investment in our One Vanderbilt project (inclusive of the property and Summit One Vanderbilt) at the appraised fair market value for the interests acquired. This investment entitles these entities to receive approximately 1.50% - 1.80% and 1.00% - 1.20%, respectively, of any profits realized by the Company from its One Vanderbilt project in excess of the Company’s capital contributions. The entities have no right to any return of capital. Accordingly, subject to previously disclosed repurchase rights, these interests will have no value and will not entitle these entities to any amounts (other than limited distributions to cover tax liabilities incurred) unless and until the Company has received distributions from the One Vanderbilt project in excess of the Company’s aggregate investment in the project. In the event that the Company does not realize a profit on its investment in the project (or would not realize a profit based on the value at the time the interests are repurchased), the entities owned and controlled by Messrs. Holliday and Mathias will lose the entire amount of their investment. The entities owned and controlled by Messrs. Holliday and Mathias paid $1.4 million and $1.0 million, respectively, which equalequaled the fair market value of the interests acquired as of the date the investment agreements were entered into as determined by an independent third party appraisal that we obtained.
Messrs. Holliday and Mathias cannot monetizehave the right to tender their interests until afterin the project upon stabilization of the property (50% within three years after stabilization and 100% three years or more after stabilization). In addition, the agreement calls for us to repurchase these interests in the event of a sale of One Vanderbilt or a transactional change of control of the Company. We also have the right to repurchase these interests on the seven-year7-year anniversary of the stabilization of the project or upon the occurrence of certain separation events prior to the stabilization of the project relating to each of Messrs. Holliday’s and Mathias’s continued service with us. The price paid upon monetizationa tender of the interests will equal the liquidation value of the interests at the time, with the value of One Vanderbilt being based on itsthe project's sale price, if applicable, or fair market value as determined by an independent third party appraiser. In 2022, stabilization of the property (but not Summit One Vanderbilt) was achieved. Therefore, Messrs. Holiday and Mathias exercised their rights to tender 50% of their interests in the property (but not Summit One Vanderbilt) for liquidation values of $17.9 million and $11.9 million, respectively, which were paid in July 2022.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
One Vanderbilt Avenue Leases
In November 2018, we entered into a lease agreement with the One Vanderbilt Avenue joint venture covering certain floors at the property. In March 2021, the lease commenced and we relocated our corporate headquarters to the leased space. For the years ended December 31, 2022 and 2021 we recorded $3.0 million and $2.4 million, respectively, of rent expense under the lease. Additionally, in June 2021, we, through a wholly-owned subsidiary, entered into a lease agreement with the One Vanderbilt Avenue joint venture for Summit One Vanderbilt, which commenced operations in October 2021. For the year ended December 31, 2022, we recorded $33.0 million of rent expense under the lease, including percentage rent, of which $22.8 million was recognized as income as a component of Equity in net loss from unconsolidated joint ventures in our consolidated statements of operations. For the year ended December 31, 2021, we recorded $5.0 million of rent expense under the lease with no percentage rent. See Note 20, "Commitments and Contingencies."
Other
We are entitled to receive fees for providing management, leasing, construction supervision, and asset management services to certain of our joint ventures as further described in Note 6, "Investments in Unconsolidated Joint Ventures".Ventures." Amounts due from joint ventures and related parties atas of December 31, 20172022 and 20162021 consisted of the following (in thousands):
December 31,
20222021
Due from joint ventures$26,812 $28,204 
Other540 1,204 
Related party receivables$27,352 $29,408 
 December 31,
 2017 2016
Due from joint ventures$15,025
 $1,240
Other8,014
 14,616
Related party receivables$23,039
 $15,856
11. Noncontrolling Interests on the Company's Consolidated Financial Statements
Noncontrolling interests represent the common and preferred units of limited partnership interest in the Operating Partnership not held by the Company as well as third party equity interests in our other consolidated subsidiaries. Noncontrolling interests in

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the Operating Partnership are shown in the mezzanine equity while the noncontrolling interests in our other consolidated subsidiaries are shown in the equity section of the Company’s consolidated financial statements.
Common Units of Limited Partnership Interest in the Operating Partnership
As of December 31, 20172022 and 2016,2021, the noncontrolling interest unit holders owned 4.58%5.39%, or 4,452,9793,670,343 units, and 4.16%5.57%, or 4,363,7163,781,565 units, of the Operating Partnership, respectively. AtAs of December 31, 2017, 4,452,9792022, 3,670,343 shares of our common stock were reserved for issuance upon the redemption of units of limited partnership interest of the Operating Partnership.
Noncontrolling interests in the Operating Partnership is recorded at the greater of its cost basis or fair market value based on the closing stock price of our common stock at the end of the reporting period.
Below is the rollforward analysisa summary of the activity relating to the noncontrolling interests in the Operating Partnership as offor twelve months ended December 31, 20172022 and 20162021 (in thousands):
December 31,
20222021
Balance at beginning of period$344,252 $358,262 
Distributions(16,272)(15,749)
Issuance of common units22,855 18,678 
Redemption and conversion of common units(40,901)(53,289)
Net (loss) income(5,794)25,457 
Accumulated other comprehensive income allocation5,827 1,042 
Fair value adjustment(39,974)9,851 
Balance at end of period$269,993 $344,252 
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 December 31,
 2017 2016
Balance at beginning of period$473,882
 $424,206
Distributions(14,266) (12,671)
Issuance of common units25,723
 78,495
Redemption of common units(21,574) (31,805)
Net income3,995
 10,136
Accumulated other comprehensive income allocation(94) 1,299
Fair value adjustment(5,712) 4,222
Balance at end of period$461,954
 $473,882
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Preferred Units of Limited Partnership Interest in the Operating Partnership
The Operating Partnership has 1,902,000 4.50% Series G Preferred UnitsBelow is a summary of the preferred units of limited partnership interest orin the Series G Preferred Units outstanding, with a liquidation preferenceOperating Partnership as of $25.00 per unit, which were issued in January 2012 in conjunction with an acquisition. The Series G Preferred unitholders receive annual dividends of $1.125 per unit paid on a quarterly basis and dividendsDecember 31, 2022:
IssuanceStated Distribution RateNumber of Units AuthorizedNumber of Units IssuedNumber of Units Outstanding
Annual Dividend Per Unit(1)
Liquidation Preference Per Unit(2)
Conversion Price Per Unit(3)
Date of Issuance
Series A (4)
3.50 %109,161 109,161 109,161 $35.0000 $1,000.00 $— August 2015
Series F7.00 %60 60 60 70.0000 1,000.00 29.12 January 2007
Series K3.50 %700,000 563,954 341,677 0.8750 25.00 134.67 August 2014
Series L4.00 %500,000 378,634 372,634 1.0000 25.00 — August 2014
Series P4.00 %200,000 200,000 200,000 1.0000 25.00 — July 2015
Series Q3.50 %268,000 268,000 268,000 0.8750 25.00 148.95 July 2015
Series R3.50 %400,000 400,000 400,000 0.8750 25.00 154.89 August 2015
Series S4.00 %1,077,280 1,077,280 1,077,280 1.0000 25.00 — August 2015
Series V3.50 %40,000 40,000 40,000 0.8750 25.00 — May 2019
Series W (5)
(6)1 1 1 (6)(6)(6)January 2020
(1)Dividends are cumulative, subject to certain provisions. The Series G Preferred
(2)Units are redeemable at any time at par for cash at the option of the unit holder unless otherwise specified.
(3)If applicable, units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) $88.50. The common units of limited partnership interestthe amount shown in the Operating Partnership may be redeemed in exchange for our common stock on a 1-to-1 basis. The Series G Preferred Units also provide the holder with the right to require the Operating Partnership to repurchase the Series G Preferred Units for cash before January 31, 2022.table.
The Operating Partnership has 60 Series F Preferred Units outstanding with a mandatory liquidation preference of $1,000.00 per unit.
The Operating Partnership has authorized up to 700,000 3.50% Series K Preferred Units of limited partnership interest, or the Series K Preferred Units, with a liquidation preference of $25.00 per unit. In August 2014, the Company issued 563,954 Series K Preferred Units in conjunction with an acquisition. The Series K Preferred unitholders receive annual dividends of $0.875 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series K Preferred Units can be redeemed at any time, at the option of the unitholder, either for cash or are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) $134.67.
The Operating Partnership has authorized up to 500,000 4.00% Series L Preferred Units of limited partnership interest, or the Series L Preferred Units, with a liquidation preference of $25.00 per unit. In August 2014, the Company issued 378,634 Series L Preferred Units in conjunction with an acquisition. The Series L Preferred unitholders receive annual dividends of $1.00 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series L Preferred Units can be redeemed at any time at par for cash at the option of the unitholder.
The Operating Partnership has authorized up to 1,600,000 3.75% Series M Preferred Units of limited partnership interest, or the Series M Preferred Units, with a liquidation preference of $25.00 per unit. In February 2015, the Company issued 1,600,000 Series M Preferred Units in conjunction with the acquisition of ownership interests in and relating to certain residential and retail

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December 31, 2017

real estate properties. The Series M Preferred unitholders receive annual dividends of $0.9375 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series M Preferred Units can be redeemed at any time at par for cash at the option of the unitholder.
The Operating Partnership has authorized up to 552,303 3.00% Series N Preferred Units of limited partnership interest, or the Series N Preferred Units, with a liquidation preference of $25.00 per unit. In June 2015, the Company issued 552,303 Series N Preferred Units in conjunction with an acquisition. The Series N Preferred unitholders receive annual dividends of $0.75 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series N Preferred Units can be redeemed at any time at par for cash at the option of the unitholder.
The Operating Partnership has authorized an aggregate of one 6.25% Series O Preferred Unit of limited partnership interest, or the Series O Preferred Unit. In June 2015, the Company issued the Series O Preferred Unit in connection with an acquisition.
The Operating Partnership has authorized up to 200,000 4.00% Series P Preferred Units of limited partnership interest, or the Series P Preferred Units, with a liquidation preference of $25.00 per unit. In July 2015, the Company issued 200,000 Series P Preferred Units in conjunction with an acquisition. The Series P Preferred unitholders receive annual dividends of $1.00 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series P Preferred Units can be redeemed at any time at par for cash at the option of the unitholder.
The Operating Partnership has authorized up to 268,000 3.50% Series Q Preferred Units of limited partnership interest, or the Series Q Preferred Units, with a liquidation preference of $25.00 per unit. In July 2015, the Company issued 268,000 Series Q Preferred Units in conjunction with an acquisition. The Series Q Preferred unitholders receive annual dividends of $0.875 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series Q Preferred Units can be redeemed at any time, at the option of the unitholder, either for cash or are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) $148.95.
The Operating Partnership has authorized up to 400,000 3.50% Series R Preferred Units of limited partnership interest, or the Series R Preferred Units, with a liquidation preference of $25.00 per unit. In August 2015, the Company issued 400,000 Series R Preferred Units in conjunction with an acquisition. The Series R Preferred unitholders receive annual dividends of $0.875 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series R Preferred Units can be redeemed at any time, at the option of the unitholder, either for cash or are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) $154.89.
The Operating Partnership has authorized up to 1,077,280 4.00% Series S Preferred Units of limited partnership interest, or the Series S Preferred Units, with a liquidation preference of $25.00 per unit. In August 2015, the Company issued 1,077,280 Series S Preferred Units in conjunction with an acquisition. The Series S Preferred unitholders receive annual dividends of $1.00 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series S Preferred Units can be redeemed at any time at par for cash at the option of the unitholder.
The Operating Partnership has authorized up to 230,000 2.75% Series T Preferred Units of limited partnership interest, or the Series T Preferred Units, with a liquidation preference of $25.00 per unit. In March 2016, the Company issued 230,000 Series T Preferred Units in conjunction with an acquisition. The Series T Preferred unitholders receive annual dividends of $0.6875 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series T Preferred Units can be redeemed at any time at par, at the option of the unitholder, either for cash or are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) $119.02.
The Operating Partnership has authorized up to 680,000 4.50% Series U Preferred Units of limited partnership interest, or the Series U Preferred Units, with a liquidation preference of $25.00 per unit. In March 2016, the Company issued 680,000 Series U Preferred Units in conjunction with an acquisition. The Series U Preferred unitholders initially receive annual dividends of $1.125 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The annual dividend is subject to reduction upon the occurrence of certain circumstances set forth in the terms of the Series U Preferred Units. The minimum annual dividend is $0.75 per unit. The Series U Preferred Units can be redeemed at any time at par for cash at the option of the unitholder.
Through(4)Issued through a consolidated subsidiary, we have authorized up to 109,161 3.50% Series A Preferred Units of limited partnership interest, or the Subsidiary Series A Preferred Units, with a liquidation preference of $1,000.00 per unit. In August 2015, the Company issued 109,161 Subsidiary Series A Preferred Units in conjunction with an acquisition.subsidiary. The Subsidiary Series A Preferred

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December 31, 2017

unitholders receive annual dividends of $35.00 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Subsidiary Series A Preferred Units can be redeemed at any time, at the option of the unitholder, either for cash orunits are convertible on a one-for-one basis, into the Series B Preferred Units of limited partnership interest, or the Subsidiary Series B Preferred Units. The Subsidiary Series B Preferred Units can be converted at any time, at the option of the unitholder, into a number of common stock equal to 6.71348 shares of common stock for each Subsidiary Series B Preferred Unit. As of December 31, 2017,2022, no Subsidiary Series B Preferred Units have been issued.
(5)The Series W preferred unit was issued in January 2020 in exchange for the then-outstanding Series O preferred unit. The holder of the Series W preferred unit is entitled to quarterly dividends in an amount calculated as (i) 1,350 multiplied by (ii) the current distribution per common unit of limited partnership in SL Green Operating Partnership. The holder has the right to require the Operating Partnership to repurchase the Series W unit for cash, or convert the Series W unit for Class B units, in each case at a price that is determined based on the closing price of the Company's common stock at the time such right is exercised. The unit's liquidation preference is the fair market value of the unit plus accrued distributions at the time of a liquidation event.

Below is the rollforward analysisa summary of the activity relating to the preferred units in the Operating Partnership as offor the twelve months ended December 31, 20172022 and 20162021 (in thousands):
December 31,
20222021
Balance at beginning of period$196,075 $202,169 
Issuance of preferred units— — 
Redemption of preferred units(17,967)(6,040)
Dividends paid on preferred units(6,198)(6,760)
Accrued dividends on preferred units6,033 6,706 
Balance at end of period$177,943 $196,075 
 December 31,
 2017 2016
Balance at beginning of period$302,010
 $282,516
Issuance of preferred units—
 22,793
Redemption of preferred units(275) (3,299)
Balance at end of period$301,735
 $302,010
12. Stockholders’ Equity of the Company
Common Stock
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01$0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01$0.01 per share. As of December 31, 2017, 92,803,2992022, 64,380,082 shares of common stock and no shares of excess stock were issued and outstanding.
Stock Repurchase Program
In August 2016, our board of directors approved a stock repurchase plan under which we can buy up to $1.0 billion of shares of our common stock. In December 2017, our board of directors authorized an increase to the size of this plan by an additional $500 million of our common stock, bringing it to a total of $1.5 billion of shares.
At December 31, 2017 repurchases under the plan were as follows:
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PeriodNumber of shares purchasedAverage price paid per shareCumulative number of shares purchased as part of the repurchase plan or programs
Maximum approximate dollar value of shares that may yet be purchased under the plan (in millions) (1)
First quarter 201763,812$103.8463,812$1,493.4
Second quarter 20172,384,323$103.402,448,135$1,246.8
Third quarter 2017951,866$101.673,400,001$1,150.0
Fourth quarter 2017 (2)
4,942,410$100.768,342,411$652.0
(1)Reflective of $1.5 billion plan maximum as of December 31, 2017.
(2)Includes 413,700 shares of common stock repurchased by the Company in December 2017 that were settled in January 2018.
At-The-Market Equity Offering Program
In July 2011, the Company, along with the Operating Partnership, entered into an "at-the-market" equity offering program, or ATM Program, to sell an aggregate of $250.0 million of our common stock. During the year ended December 31, 2015, we sold 25,659 shares of our common stock out of the remaining balance of the ATM Program for aggregate net proceeds of $2.8 million. The net proceeds from these offerings were contributed to the Operating Partnership in exchange for 25,659 units of limited partnership interest of the Operating Partnership.
In June 2014, the Company, along with the Operating Partnership, entered into an ATM Program to sell an aggregate of $300.0 million of our common stock. During the year ended December 31, 2015, we sold 895,956 shares of our common stock for aggregate net proceeds of $113.4 million comprising the remaining balance of this ATM Program. The net proceeds from these offerings

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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

Share Repurchase Program
were contributed to the Operating Partnership in exchange for 895,956 unitsIn August 2016, our Board of limited partnership interest of the Operating Partnership.
In March 2015, the Company, along with the Operating Partnership, entered intoDirectors approved a new ATM Program to sell an aggregate of $300.0 million$1.0 billion share repurchase program under which we can buy shares of our common stock. The Company did not make any salesBoard of its common stock under an ATMDirectors has since authorized fiveseparate $500.0 million increases to the size of the share repurchase program in the years endedfourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.
As of December 31, 2016 and December 31, 2017.2022, share repurchases executed under the program, excluding the redemption of OP units, were as follows:
PeriodShares repurchasedAverage price paid per shareCumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 20177,865,206$107.817,865,206
Year ended 20189,187,480$102.0617,052,686
Year ended 20194,333,260$88.6921,385,946
Year ended 20208,276,032$64.3029,661,978
Year ended 20214,474,649$75.4434,136,627
Year ended 20221,971,092$76.6936,107,719
Perpetual Preferred Stock
We have 9,200,000 shares of our 6.50% Series I Cumulative Redeemable Preferred Stock, or the Series I Preferred Stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series I Preferred stockholders receive annual dividends of $1.625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. We are entitled to redeem the Series I Preferred Stock at any time, in whole or from time to time in part, at par for cash at our option.cash. In August 2012, we received $221.9 million in net proceeds from the issuance of the Series I Preferred Stock, which were recorded net of underwriters' discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 9,200,000 units of 6.50% Series I Cumulative Redeemable Preferred Units of limited partnership interest, or the Series I Preferred Units.
Dividend Reinvestment and Stock Purchase Plan ("DRSPP")
In February 2015,2021, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the yearyears ended December 31, 2017, 2016,2022, 2021, and 2015,2020, respectively (in(dollars in thousands):
Year Ended December 31,
Year Ended December 31,202220212020
2017 2016 2015
Common Stock Shares Issued2,141
 2,687
 775,760
Shares of common stock issuedShares of common stock issued10,839 10,387 16,181 
Dividend reinvestments/stock purchases under the DRSPP$223
 $277
 $99,555
Dividend reinvestments/stock purchases under the DRSPP$525 $738 $1,006 
Earnings per Share
SL Green'sWe use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for the years ended December 31, 2017, 2016, and 2015 are computed as follows (in thousands):
 Year Ended December 31,
Numerator2017 2016 2015
Basic Earnings:     
Income attributable to SL Green common stockholders$86,424
 $234,946
 $269,132
Effect of Dilutive Securities:     
Redemption of units to common shares3,995
 10,136
 10,565
Diluted Earnings:     
Income attributable to SL Green common stockholders$90,419
 $245,082
 $279,697
 Year Ended December 31,
Denominator2017 2016 2015
Basic Shares:     
Weighted average common stock outstanding98,571
 100,185
 99,345
Effect of Dilutive Securities:     
Operating Partnership units redeemable for common shares4,556
 4,323
 3,899
Stock-based compensation plans276
 373
 490
Diluted weighted average common stock outstanding103,403
 104,881
 103,734
SL Green has excluded 1,092,870, 774,782 and 263,991 common stock equivalents fromand any participating securities according to dividends declared (whether paid or unpaid). Under the dilutedtwo-class method, basic EPS is computed by dividing the income available to common stockholders by the weighted-average number of common stock shares outstanding for the years ended December 31, 2017, 2016, and 2015 respectively, as they were anti-dilutive.

period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity.
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December 31, 20172022    

SL Green's earnings per share for the years ended December 31, 2022, 2021, and 2020 are computed as follows (in thousands):
Year Ended December 31,
Numerator202220212020
Basic Earnings:
(Loss) income attributable to SL Green common stockholders$(93,024)$434,804 $356,105 
Less: distributed earnings allocated to participating securities(2,219)(2,398)(1,685)
Less: undistributed earnings allocated to participating securities— (192)(137)
Net (loss) income attributable to SL Green common stockholders (numerator for basic earnings per share)$(95,243)$432,214 $354,283 
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable shares— 2,039 1,685 
Add back: undistributed earnings allocated to participating securities— 192 137 
Add back: Effect of dilutive securities (redemption of units to common shares)(5,794)25,457 20,016 
(Loss) income attributable to SL Green common stockholders (numerator for diluted earnings per share)$(101,037)$459,902 $376,121 
Year Ended December 31,
Denominator202220212020
Basic Shares:
Weighted average common stock outstanding63,917 65,740 70,397 
Effect of Dilutive Securities:
Operating Partnership units redeemable for common shares4,012 3,987 4,096 
Stock-based compensation plans— 705 441 
Contingently issuable shares— 337 144 
Diluted weighted average common stock outstanding67,929 70,769 75,078 
The Company has excluded 1,682,236 common stock equivalents from the calculation of diluted shares outstanding for the year ended December 31, 2022. The Company has excluded 948,017 and 1,676,825 of common stock equivalents from the calculation of diluted shares outstanding for the years ended December 31, 2021 and 2020, respectively.
13. Partners' Capital of the Operating Partnership
The Company is the sole managing general partner of the Operating Partnership and atas of December 31, 20172022 owned 92,803,29964,380,082 general and limited partnership interests in the Operating Partnership and 9,200,000 Series I Preferred Units. Partnership interests in the Operating Partnership are denominated as “common units of limited partnership interest” (also referred to as “OP Units”) or “preferred units of limited partnership interest” (also referred to as “Preferred Units”). All references to OP Units and Preferred Units outstanding exclude such units held by the Company. A holder of an OP Unit may present such OP Unit to the Operating Partnership for redemption at any time (subject to restrictions agreed upon at the issuance of OP Units to particular holders that may restrict such right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, the Operating Partnership must redeem such OP Unit in exchange for the cash equal to the then value of a share of common stock of the Company, except that the Company may, at its election, in lieu of cash redemption, acquire such OP Unit for one share of common stock. Because the number of shares of common stock outstanding at all times equals the number of OP Units that the Company owns, one share of common stock is generally the economic equivalent of one OP Unit, and the quarterly distribution that may be paid to the holder of an OP Unit equals the quarterly dividend that may be paid to the holder of a share of common stock. Each series of Preferred Units makes a distribution that is set in accordance with an amendment to the partnership agreement of the Operating Partnership. Preferred Units may also be convertible into OP Units at the election of the holder thereof or the Company, subject to the terms of such Preferred Units.
Net income (loss) allocated to the preferred unitholders and common unitholders reflects their pro rata share of net income (loss) and distributions.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Limited Partner Units
As of December 31, 2017,2022, limited partners other than SL Green owned 4.58%, or 4,452,9793,670,343 common units of the Operating Partnership.
Preferred Units
Preferred units not owned by SL Green are further described in Note 11, “Noncontrolling Interests on the Company’s Consolidated Financial Statements - Preferred Units of Limited Partnership Interest in the Operating Partnership.”
Earnings per Unit
The Operating Partnership's earnings per unit for the years ended December 31, 2017, 2016,2022, 2021, and 20152020 respectively are computed as follows (in thousands):
Year Ended December 31,
Numerator202220212020
Basic Earnings:
Net (loss) income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)$(98,818)$460,261 $376,121 
Less: distributed earnings allocated to participating securities(2,219)(2,398)(1,685)
Less: undistributed earnings allocated to participating securities— (192)(137)
Net (loss) income attributable to SLGOP common unitholders (numerator for basic earnings per unit)$(101,037)$457,671 $374,299 
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable shares— 2,590 1,822 
(Loss) income attributable to SLGOP common unitholders$(101,037)$460,261 $376,121 
 Year Ended December 31,
Numerator2017 2016 2015
Basic and Diluted Earnings:     
Income attributable to SLGOP common unitholders$90,419
 $245,082
 $279,697
Year Ended December 31,Year Ended December 31,
Denominator2017 2016 2015Denominator202220212020
Basic units:     Basic units:
Weighted average common units outstanding103,127
 104,508
 103,244
Weighted average common units outstanding67,929 69,667 74,493 
Effect of Dilutive Securities:     Effect of Dilutive Securities:
Stock-based compensation plans276
 373
 490
Stock-based compensation plans— 765 441 
Contingently issuable unitsContingently issuable units— 337 144 
Diluted weighted average common units outstanding103,403
 104,881
 103,734
Diluted weighted average common units outstanding67,929 70,769 75,078 
The Operating Partnership has excluded 1,092,870, 774,782, and 263,9911,682,236 common unit equivalents from the diluted units outstanding for the years ended December 31, 2017, 2016,2022. The Operating Partnership has excluded 948,017 and 2015 respectively, as they were anti-dilutive.1,676,825 common unit equivalents from the diluted units outstanding for the years ended December 31, 2021 and 2020, respectively.
14. Share-based Compensation
We have stock-basedshare-based employee and director compensation plans. Our employees are compensated through the Operating Partnership. Under each plan, whenever the Company issues common or preferred stock, the Operating Partnership issues an equivalent number of units of limited partnership interest of a corresponding class to the Company.

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December 31, 20172022    

Fourth Amended and Restated 2005 Stock Option and Incentive Plan
The FourthFifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's boardBoard of directorsDirectors in April 20162022 and its stockholders in June 20162022 at the Company's annual meeting of stockholders. The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights, cash-based awards and other equity-based awards. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,00032,210,000 fungible units may be granted under the 2005 Plan. Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 3.742.59 Fungible Units per share subject to such awards, (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five years from the date of grant counting as 0.730.84 fungible units per share subject to such awards, and (3) all other awards (e.g., ten-year10-year stock options) counting as 1.0 fungible units per share subject to such awards. Awards granted under the 2005 Plan prior to the approval of the fourthfifth amendment and restatement in June 20162022 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios. As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 27,030,00032,210,000 shares. If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares. Currently, unless the 2005 Plan has been previously terminated by the Company's boardBoard of directors,Directors, new awards may be granted under the 2005 Plan until June 2, 2026,1, 2032, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by the Company's stockholders. As of December 31, 2017, 8.32022, 6.3 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.
Stock Options and Class O LTIP Units
Options are granted under the plan with an exercise price at the fair market value of the Company's common stock on the date of grant and, subject to employment, generally expire five years or ten years from the date of grant, are not transferable other than on death, and generally vest in one year to five years commencing one year from the date of grant. We have also granted Class O LTIP Units, which are a class of LTIP Units in the Operating Partnership structured to provide economics similar to those of stock options. Class O LTIP Units, once vested, may be converted, at the election of the holder, into a number of common units of the Operating Partnership per Class O LTIP Unit determined by the increase in value of a share of the Company’s common stock at the time of conversion over a participation threshold, which equals the fair market value of a share of the Company’s common stock at the time of grant. Class O LTIP Units are entitled to distributions, subject to vesting, equal per unit to 10% of the per unit distributions paid with respect to the common units of the Operating Partnership.
The fair value of each stock option or LTIP Unit granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information with the following weighted average assumptions for grantsinformation. There were no options granted during the years ended December 31, 2017, 2016,2022, 2021, and 2015.2020.
A summary of the status of the Company's stock options as of December 31, 2022, 2021, and 2020 and changes during the years ended December 31, 2022, 2021, and 2020 are as follows:
202220212020
Options OutstandingWeighted Average
Exercise Price		Options OutstandingWeighted Average
Exercise Price		Options
Outstanding		Weighted
Average
Exercise
Price
Balance at beginning of year394,089 $100.56 761,686 $105.76 977,745 $108.57 
Exercised— — (11,314)72.30 — — 
Lapsed or canceled(80,609)112.14 (356,283)112.56 (216,059)118.49 
Balance at end of year313,480 $97.59 394,089 $100.56 761,686 $105.76 
Options exercisable at end of year313,480 $97.59 394,089 $100.56 760,743 $105.76 
The remaining weighted average contractual life of the options outstanding was 1.9 years and the remaining average contractual life of the options exercisable was 1.9 years.
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 2017 2016 2015
Dividend yield2.51% 2.37% 1.97%
Expected life4.4 years
 3.7 years
 3.6 years
Risk-free interest rate1.73% 1.57% 1.43%
Expected stock price volatility28.10% 26.76% 32.34%

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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

A summary of the status of the Company's stock options as of December 31, 2017, 2016, and 2015 and changes during the years ended December 31, 2017, 2016, and 2015 are as follows:
 2017 20162015
 Options Outstanding 
Weighted Average
Exercise Price
 Options Outstanding 
Weighted Average
Exercise Price
Options
Outstanding		 Weighted
Average
Exercise
Price
Balance at beginning of year$1,737,213
 $98.44
 $1,595,007
 $95.52
$1,462,726
 $87.98
Granted174,000
 105.66
 445,100
 105.86
389,836
 112.54
Exercised(292,193) 81.07
 (192,875) 76.90
(217,438) 74.69
Lapsed or canceled(70,301) 121.68
 (110,019) 123.86
(40,117) 98.61
Balance at end of year$1,548,719
 $101.48
 $1,737,213
 $98.44
$1,595,007
 $95.52
Options exercisable at end of year800,902
 $94.33
 748,617
 $87.72
589,055
 $89.85
Weighted average fair value of options granted during the year$3,816,652
  
 $8,363,036
  
$9,522,613
  
All options were granted with strike prices ranging from $20.67 to $137.18. The remaining weighted average contractual life of the options outstanding was 3.6 years and the remaining average contractual life of the options exercisable was 3.1 years.
During the years ended December 31, 2017, 2016,2022, 2021, and 2015,2020, we recognized no compensation expense for these options of $7.8 million, $8.9 million, and $8.0 million, respectively.related to options. As of December 31, 2017,2022, there was $8.6 million of totalno unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 1.5 years.options.
Stock-based CompensationRestricted Shares
Effective January 1, 1999, the Company implemented a deferred compensation plan, or the Deferred Plan, where shares issued under the Deferred Plan wereShares are granted to certain employees, including our executives, and vesting will occur annuallyoccurs upon the completion of a service period or our meeting established financial performance criteria. Annual vestingVesting occurs at rates ranging from 15% to 35% once performance criteria are reached.
A summary of the Company's restricted stock as of December 31, 2017, 2016,2022, 2021, and 20152020 and chargeschanges during the years ended December 31, 2017, 2016,2022, 2021, and 20152020 are as follows:
2017 2016 2015202220212020
Balance at beginning of year3,202,031
 3,137,881
 3,000,979
Balance at beginning of year3,459,363 3,337,545 3,362,456 
Granted96,185
 98,800
 143,053
Granted314,995 141,515 8,693 
Canceled—
 (34,650) (6,151)Canceled(16,184)(19,697)(33,604)
Balance at end of year3,298,216
 3,202,031
 3,137,881
Balance at end of year3,758,174 3,459,363 3,337,545 
Vested during the year95,736
 83,822
 87,081
Vested during the year118,255 122,759 125,064 
Compensation expense recorded$9,809,749
 $7,153,966
 $7,540,747
Compensation expense recorded$10,133,905 $8,497,054 $10,895,459 
Weighted average fair value of restricted stock granted during the year$9,905,986
 $10,650,077
 $16,061,201
Total fair value of restricted stock granted during the yearTotal fair value of restricted stock granted during the year$16,804,931 $9,214,531 $734,315 
The fair value of restricted stock that vested during the years ended December 31, 2017, 2016,2022, 2021, and 20152020 was $9.4$9.7 million, $7.6$11.3 million and $7.4$12.5 million, respectively. As of December 31, 2017,2022, there was $21.1$12.5 million of total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 2.22.0 years.
We granted LTIP Units, which include bonus, time-based and performance-based awards, with a fair value of $45.0 million and $55.0 million during the years ended December 31, 2022 and 2021, respectively. The grant date fair value of the LTIP Unit awards was calculated in accordance with ASC 718. A third-party consultant determined that the fair value of the LTIP Units has a discount to our common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP Units will reach parity with other common partnership units and the illiquidity due to transfer restrictions. As of December 31, 2022, there was $45.7 million of total unrecognized compensation expense related to the time-based and performance-based awards, which is expected to be recognized over a weighted average period of 1.6 years.
During the years ended December 31, 2022, 2021, and 2020, we recorded compensation expense related to bonus, time-based and performance-based awards of $43.5 million, $41.9 million, and $29.4 million, respectively.

For the years ended December 31, 2017, 2016,2022, 2021, and 2015, $7.22020, $1.8 million, $6.0$2.1 million, and $6.5$2.2 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.
We granted LTIP Units, which include bonus, time-based and performance based awards, with a fair value of $20.5 million and $34.9 million during the years ended December 31, 2017 and 2016, respectively. The grant date fair value of the LTIP Unit awards was calculated in accordance with ASC 718. A third party consultant determined the fair value of the LTIP Units to have a discount from our common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP Units

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

will reach parity with other common partnership units and the illiquidity due to transfer restrictions. As of December 31, 2017, there was $4.6 million of total unrecognized compensation expense related to the time-based and performance based LTIP Unit awards, which is expected to be recognized over a weighted average period of 1.5 years.
During the years ended December 31, 2017, 2016, and 2015, we recorded compensation expense related to bonus, time-based and performance based LTIP Unit awards of $26.1 million, $26.5 million, and $30.2 million, respectively.
2011 Outperformance Plan
In August 2011, the compensation committee of the Company's board of directors approved the general terms of the SL Green Realty Corp. 2011 Outperformance Plan, or the 2011 Outperformance Plan. Participants in the 2011 Outperformance Plan could earn, in the aggregate, up to $85.0 million of LTIP Units in the Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2011. Under the 2011 Outperformance Plan, participants were entitled to share in a "performance pool" comprised of LTIP Units with a value equal to 10% of the amount by which our total return to stockholders during the three-year period exceeded a cumulative total return to stockholders of 25%, subject to the maximum of $85.0 million of LTIP Units; provided that if maximum performance was achieved, one-third of each award could be earned at any time after the beginning of the second year and an additional one-third of each award could be earned at any time after the beginning of the third year. LTIP Units earned under the 2011 Outperformance Plan were subject to vesting requirements, with 50% of any awards earned vesting on August 31, 2014 and the remaining 50% vesting on August 31, 2015, based on continued employment with us through such dates. Participants were not entitled to distributions with respect to LTIP Units granted under the 2011 Outperformance Plan unless and until they were earned. For LTIP Units that were earned, each participant was also entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of additional LTIP Units. Thereafter, distributions are paid currently with respect to all earned LTIP Units, whether vested or unvested. In June 2014, the compensation committee determined that maximum performance had been achieved during the third year of the performance period and, accordingly, 560,908 LTIP Units, representing two-thirds of each award, were earned, subject to vesting, under the 2011 Outperformance Plan. In September 2014, the compensation committee determined that maximum performance had been achieved for the full three-year performance period and, accordingly, 280,454 LTIP units, representing the final third of each award, were earned, subject to vesting, under the 2011 Outperformance Plan.
The cost of the 2011 Outperformance Plan ($26.7 million, subject to forfeitures) was amortized into earnings through the final vesting period. We recorded no compensation expense during the year ended December 31, 2017, no compensation expense during the year ended December 31, 2016, and compensation expense of $4.5 million during the year ended December 31, 2015, related to the 2011 Outperformance Plan.
2014 Outperformance Plan
In August 2014, the compensation committee of the Company's board of directors approved the general terms of the SL Green Realty Corp. 2014 Outperformance Plan, or the 2014 Outperformance Plan. Participants in the 2014 Outperformance Plan could earn, in the aggregate, up to 610,000 LTIP Units in our Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2014. Under the 2014 Outperformance Plan, two-thirds of the LTIP Units were subject to performance based vesting based on the Company’s absolute total return to stockholders and one-third of the LTIP Units were subject to performance based vesting based on relative total return to stockholders compared to the constituents of the MSCI REIT Index. LTIP Units earned under the 2014 Outperformance Plan were to be subject to continued vesting requirements, with 50% of any awards earned vesting on August 31, 2017 and the remaining 50% vesting on August 31, 2018, subject to continued employment with us through such dates. Participants were not entitled to distributions with respect to LTIP Units granted under the 2014 Outperformance Plan unless and until they are earned. If LTIP Units were earned, each participant would have been entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of cash or additional LTIP Units. Thereafter, distributions were to be paid currently with respect to all earned LTIP Units, whether vested or unvested.
Based on our performance, none of the LTIP Units granted under the 2014 Outperformance Plan were earned pursuant to the terms of the 2014 Outperformance Plan, and all units issued were forfeited in 2017.
The cost of the 2014 Outperformance Plan ($27.9 million subject to forfeitures), based on the portion of the 2014 Outperformance Plan granted prior to termination, was amortized into earnings through December 31, 2017. We recorded compensation expense of $13.6 million, $8.4 million, and $5.9 million during the years ended December 31, 2017, 2016, and 2015, respectively, related to the 2014 Outperformance Plan.

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

Deferred Compensation Plan for Directors
Under our Non-Employee Director's Deferral Program, which commenced July 2004, the Company's non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees, meeting fees and annual stock grant. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The program provides that a director's phantom stock units generally will be settled in an equal number of shares of common stock upon the earlier of (i) the January 1 coincident with or the next following such director's termination of service from the Board of Directors or (ii) a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the first business day of the respective quarter. Each participating non-employee director is also credited with dividend equivalents or phantom stock units based on the dividend rate for each quarter, which are either paid in cash currently or credited to the director’s account as additional phantom stock units.
During the year ended December 31, 2017, 12,7272022, 27,436 phantom stock units were earned and 9,5099,571 shares of common stock were issued to our boardBoard of directors.Directors. We recorded compensation expense of $2.4$2.7 million during the year ended December 31, 20172022 related to the Deferred Compensation Plan. As of December 31, 2017,2022, there were 99,853192,638 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Employee Stock Purchase Plan
In 2007, the Company's boardBoard of directorsDirectors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to increase their efforts to make our business more successful by providingprovide equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase the Company's shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. The Company filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2017, 104,5972022, 191,845 shares of our common stock had been issued under the ESPP.

15. Accumulated Other Comprehensive Income (Loss)
The following tables set forth the changes in accumulated other comprehensive (loss) income by component as of December 31, 2022, 2021 and 2020 (in thousands):
Net unrealized gain (loss) on derivative instruments (1)
SL Green’s share of joint venture net unrealized gain (loss) on derivative instruments (2)
Net unrealized gain (loss) on marketable securitiesTotal
Balance at December 31, 2019$(22,780)$(7,982)$2,277 $(28,485)
Other comprehensive loss before reclassifications(48,532)(7,573)(1,256)(57,361)
Amounts reclassified from accumulated other comprehensive loss13,897 4,702 — 18,599 
Balance at December 31, 2020(57,415)(10,853)1,021 (67,247)
Other comprehensive income (loss) before reclassifications14,908 (18,015)96 (3,011)
Amounts reclassified from accumulated other comprehensive loss16,626 6,874 — 23,500 
Balance at December 31, 2021(25,881)(21,994)1,117 (46,758)
Other comprehensive income (loss) before reclassifications78,300 23,405 (1,359)100,346 
Amounts reclassified from accumulated other comprehensive income(4,619)635 — (3,984)
Balance at December 31, 2022$47,800 $2,046 $(242)$49,604 
(1)Amount reclassified from accumulated other comprehensive income (loss) is included in interest expense in the respective consolidated statements of operations. As of December 31, 2022 and 2021, the deferred net gains from these terminated hedges, which is included in accumulated other comprehensive income (loss) relating to net unrealized gain (loss) on derivative instruments, was ($0.5 million) and ($0.6 million), respectively.
(2)Amount reclassified from accumulated other comprehensive income (loss) is included in equity in net loss from unconsolidated joint ventures in the respective consolidated statements of operations.
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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

15. Accumulated Other Comprehensive Income
The following tables set forth the changes in accumulated other comprehensive income (loss) by component as of December 31, 2017, 2016 and 2015 (in thousands):
 
Net unrealized gain on derivative instruments (1)
 
SL Green’s share of joint venture net unrealized gain on derivative instruments (2)
 Net unrealized gain on marketable securities Total
Balance at December 31, 2014$(9,498) $(95) $2,613
 $(6,980)
Other comprehensive loss before reclassifications(11,143) (1,714) (610) (13,467)
Amounts reclassified from accumulated other comprehensive income10,481
 1,217
 —
 11,698
Balance at December 31, 2015(10,160) (592) 2,003
 (8,749)
Other comprehensive income before reclassifications13,534
 1,160
 3,517
 18,211
Amounts reclassified from accumulated other comprehensive income9,222
 3,453
 —
 12,675
Balance at December 31, 201612,596
 4,021
 5,520
 22,137
Other comprehensive (loss) income before reclassifications(1,618) 233
 (1,348) (2,733)
Amounts reclassified from accumulated other comprehensive income1,564
 766
 (3,130) (800)
Balance at December 31, 2017$12,542
 $5,020
 $1,042
 $18,604
(1)Amount reclassified from accumulated other comprehensive income (loss) is included in interest expense in the respective consolidated statements of operations. As of December 31, 2017 and 2016, the deferred net losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized loss on derivative instrument, was $3.2 million and $7.1 million, respectively.
(2)Amount reclassified from accumulated other comprehensive income (loss) is included in equity in net income from unconsolidated joint ventures in the respective consolidated statements of operations.
16. Fair Value Measurements
We are required to disclose fair value information with regard to certain of our financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practical to estimate fair value. The FASB guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. We measure and/or disclose the estimated fair value of certain financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. We follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. Our assessment of the significance of the particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
The following tables set forth the assets and liabilities that we measure at fair value on a recurring and non-recurring basis by their levels in the fair value hierarchy atas of December 31, 20172022 and 20162021 (in thousands):
December 31, 2022
TotalLevel 1Level 2Level 3
Assets:
Marketable securities available-for-sale$11,240 $— $11,240 $— 
Interest rate cap and swap agreements (included in Other assets)$57,660 $— $57,660 $— 
Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)$10,142 $— $10,142 $— 
 December 31, 2017
 Total Level 1 Level 2 Level 3
Assets:       
Marketable securities$28,579
 $—
 $28,579
 $—
Interest rate cap and swap agreements (included in other assets)$16,692
 $—
 $16,692
 $—

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

 December 31, 2016
 Total Level 1 Level 2 Level 3
Assets:       
Marketable securities$85,110
 $48,315
 $36,795
 $—
Interest rate cap and swap agreements (included in other assets)$21,090
 $—
 $21,090
 $—
Liabilities:       
Interest rate cap and swap agreements (included in accrued interest payable and other liabilities)$1
 $—
 $1
 $—
December 31, 2021
TotalLevel 1Level 2Level 3
Assets:
Marketable securities available-for-sale$24,146 $— $24,146 $— 
Interest rate cap and swap agreements (included in Other assets)$1,896 $— $1,896 $— 
Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)$29,912 $— $29,912 $— 
We determine other than temporary impairment inevaluate real estate investments and debt and preferred equity investments, including intangibles, for potential impairment primarily utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of which are classified as Level 3 inputs.
AsIn September 2022, the Company recorded at fair value the assets acquired and liabilities assumed at 245 Park Avenue. This fair value was determined using a third-party valuation which primarily utilized cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts, all of which are classified as Level 3 inputs.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2017, we held notes receivable totaling $250.0 million, which were purchased at par, and were in maturity default2022    
In September 2021, the Company was the successful bidder at the foreclosure of 690 Madison Avenue, at which time the company, at which time the Company's outstanding principal and accrued interest balance were credited to our equity investment in the property as it previously served as collateral for a debt and preferred equity investment. We recorded the assets acquired and liabilities assumed at fair value. This fair value was determined using a third-party valuation which primarily utilized cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of acquisition. which are classified as Level 3 inputs.
In August 2017,July 2021, the Company sold a 49% interest in its 220 East 42nd Street investment, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of the 51.0% interest we retained. We recorded our investment at fair value which resulted in the recognition of a fair value adjustment of $206.8 million during the year ended December 31, 2021. The fair value of our investment was determined by the terms of the joint venture agreement.
In January 2021, pursuant to the partnership documents of our 885 Third Ave investments, certain participating rights of the common member expired. As a result, it was determined that itthis investment is a VIE in which we are the primary beneficiary, and the investment was probable thatconsolidated in our financial statements. Upon consolidating the loans would not be repaid in fullentity, the assets and therefore, the loans were put on non-accrual status. The loans had an outstanding balance including accrued interest of $259.3 million at the time that they were put on non accrual status. The Company has initiated proceedings to foreclose on the property, and expects to take controlliabilities of the property unless the buyer is able to repay the principalentity were recorded at fair value. This fair value was determined using a third-party valuation which primarily utilized cash flow projections that apply, among other things, estimated revenue and interest, including default interestexpense growth rates, discount rates and fees, on the notes receivable in full prior to the completioncapitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of the foreclosure process. We believe the collateral value is sufficient to recover the carrying amounts of the notes receivable.which are classified as Level 3 inputs.
The marketableMarketable securities classified as Level 1 wereare derived from quoted prices in active markets. The valuation technique used to measure the fair value of the marketable securities classified as Level 2 were valued based on quoted market prices or model driven valuations using the significant inputs derived from or corroborated by observable market data. Marketable securities in an unrealized loss position are not considered to be other than temporarily impaired. We do not intend to sell these securities and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases.
The fair value of derivative instruments is based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well-recognized financial principles and reasonable estimates about relevant future market conditions, which are classified as Level 2 inputs.
The financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, debt and preferred equity investments, mortgages and other loans payable and other secured and unsecured debt. The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses reported in our consolidated balance sheets approximates fair value due to the short termshort-term nature of these instruments. The fair value of debt and preferred equity investments, which is classified as Level 3, is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. The fair value of borrowings, which is classified as Level 3, is estimated by discounting the contractual cash flows of each debt instrument to their present value using adjusted market interest rates, which is provided by a third-party specialist.

The following table provides the carrying value and fair value of these financial instruments as of December 31, 2022 and December 31, 2021 (in thousands):
December 31, 2022December 31, 2021
Carrying Value (1)
Fair Value
Carrying Value (1)
Fair Value
Debt and preferred equity investments$623,280 (2)$1,088,723 (2)
Fixed rate debt$5,015,814 $4,784,691 $3,274,324 $3,336,463 
Variable rate debt520,148 519,669 801,051 800,672 
Total debt$5,535,962 $5,304,360 $4,075,375 $4,137,135 
(1)Amounts exclude net deferred financing costs.
(2)As of December 31, 2022, debt and preferred equity investments had an estimated fair value ranging between $0.6 billion and $0.6 billion. As of December 31, 2021, debt and preferred equity investments had an estimated fair value ranging between $1.0 billion and $1.1 billion.
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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

The following table provides the carrying value and fair value of these financial instruments as of December 31, 2017 and December 31, 2016 (in thousands):
 December 31, 2017 December 31, 2016
 
Carrying Value (1)
 Fair Value 
Carrying Value (1)
 Fair Value
        
Debt and preferred equity investments$2,114,041
 
(2) 
 $1,640,412
 
(2) 
   

    
Fixed rate debt$4,305,165
 $4,421,866
 $5,452,084
 $5,722,494
Variable rate debt1,605,431
 1,612,224
 1,105,585
 1,110,110
 $5,910,596
 $6,034,090
 $6,557,669
 $6,832,604
(1)Amounts exclude net deferred financing costs.
(2)At December 31, 2017, debt and preferred equity investments had an estimated fair value ranging between $2.1 billion and $2.3 billion. At December 31, 2016, debt and preferred equity investments had an estimated fair value ranging between $1.6 billion and $1.8 billion.
Disclosure aboutDisclosures regarding fair value of financial instruments was based on pertinent information available to us as of December 31, 20172022 and 2016. Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such2021. Such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.
17. Financial Instruments: Derivatives and Hedging
In the normal course of business, we use a variety of commonly used derivative instruments, such as interest rate swaps, caps, collarcollars and floors, to manage, or hedge interest rate risk. We hedge our exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on existing debt. We recognize all derivatives on the balance sheetssheet at fair value. Derivatives that are not hedges are adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedge asset, liability, or firm commitment through earnings, or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value will be immediately recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows. Currently, all of our designated derivative instruments are effective hedging instruments.
The following table summarizes the notional value at inception and fair value of our consolidated derivative financial instruments at as of December 31, 20172022 based on Level 2 information. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (amounts(dollars in thousands).
Notional
Value		Strike
Rate		Effective
Date		Expiration
Date		Balance Sheet LocationFair
Value
Interest Rate Swap$100,000 0.212 %January 2021January 2023 Other Assets$333 
Interest Rate Swap400,000 0.184 %January 2022February 2023 Other Assets1,453 
Interest Rate Swap50,000 0.633 %February 2022February 2023 Other Assets158 
Interest Rate Cap370,000 3.250 %December 2022June 2023 Other Assets2,471 
Interest Rate Cap370,000 3.250 %December 2022June 2023 Other Liabilities(2,465)
Interest Rate Swap100,000 1.163 %November 2021July 2023 Other Assets2,133 
Interest Rate Swap200,000 1.133 %November 2021July 2023 Other Assets4,300 
Interest Rate Cap600,000 4.080 %September 2022September 2023 Other Liabilities(3,341)
Interest Rate Cap50,000 3.500 %October 2022September 2023 Other Assets505 
Interest Rate Swap200,000 4.739 %November 2022November 2023 Other Assets104 
Interest Rate Cap196,717 3.500 %November 2022November 2023 Other Assets2,232 
Interest Rate Cap196,717 3.500 %November 2022November 2023 Other Liabilities(2,225)
Interest Rate Swap150,000 2.700 %December 2021January 2024 Other Assets3,249 
Interest Rate Swap200,000 4.590 %November 2022January 2024 Other Assets593 
Interest Rate Swap200,000 4.511 %November 2022January 2024 Other Assets750 
Interest Rate Swap150,000 2.721 %December 2021January 2026 Other Assets5,848 
Interest Rate Swap200,000 2.762 %December 2021January 2026 Other Assets7,601 
Interest Rate Swap100,000 3.003 %February 2023February 2027 Other Assets3,264 
Interest Rate Swap100,000 2.833 %February 2023February 2027 Other Assets3,888 
Interest Rate Swap50,000 2.563 %February 2023February 2027 Other Assets2,441 
Interest Rate Swap200,000 2.691 %February 2023February 2027 Other Assets8,823 
Interest Rate Swap300,000 2.966 %July 2023May 2027 Other Assets7,514 
Interest Rate Swap370,000 3.888 %November 2022June 2027 Other Liabilities(1,900)
Interest Rate Swap100,000 3.756 %January 2023January 2028 Other Liabilities(211)
$47,518 
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
 
Notional
Value
 
Strike
Rate
 
Effective
Date
 
Expiration
Date
 Balance Sheet Location 
Fair
Value
Interest Rate Swap$200,000
 1.131% July 2016 July 2023 Other Assets $10,747
Interest Rate Swap100,000
 1.161% July 2016 July 2023 Other Assets 5,217
Interest Rate Swap21,394
 12.000% January 2017 January 2019 Other Assets 167
Interest Rate Cap137,500
 4.000% September 2017 September 2019 Other Assets 2
Interest Rate Swap100,000
 1.928% December 2017 November 2020 Other Assets 288
Interest Rate Swap100,000
 1.934% December 2017 November 2020 Other Assets 271
           $16,692
During the year ended December 31, 2022, we recorded a loss of $1.7 million based on the changes in the fair value of interest rate caps we sold, which is included in Purchase price and other fair value adjustments in the consolidated statements of operations. No interest rate caps were sold during the years ended December 31, 2021 and 2020. During the years ended December 31, 2017, 2016,2022, 2021, and 2015,2020, we recorded a $0.5losses of $0.3 million, loss, a $0.5$0.0 million, gain, and a $0.1 million, gain, respectively, on the changes in the fair value, which is included in interest expense in the consolidated statements of operations.
The Company frequently has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of December 31, 2017,2022, the fair value of derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was zero.$10.5 million. As of December 31, 2017,

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December 31, 2017

2022, the Company haswas not postedrequired to post any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of zero at $10.9 million as of December 31, 2017.2022.
Gains and losses on terminated hedges are included in accumulated other comprehensive income (loss), and are recognized into earnings over the term of the related mortgage obligation. Over time, the realized and unrealized gains and losses held in accumulated other comprehensive income (loss) will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that $0.5 million($35.9 million) of the current balance held in accumulated other comprehensive income (loss) will be reclassified intoin interest expense and $(0.3) million($11.6 million) of the portion related to our share of joint venture accumulated other comprehensive income (loss) will be reclassified into equity in net incomeloss from unconsolidated joint ventures within the next 12 months.
The following table presents the effect of our derivative financial instruments and our share of our joint ventures' derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of operations for the years ended December 31, 2017, 2016,2022, 2021, and 2015,2020, respectively (in thousands):
 Amount of Gain (Loss)
Recognized in
Other Comprehensive Income (Loss)		Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into IncomeAmount of Gain (Loss) Reclassified from
Accumulated Other Comprehensive Income (Loss) into Income
Year Ended
December 31,		Year Ended
December 31,
Derivative202220212020202220212020
Interest Rate Swaps/Caps$83,162 $15,643 $(51,244)Interest expense$4,989 $(17,602)$(14,569)
Share of unconsolidated joint ventures' derivative instruments24,783 (19,400)(7,977)Equity in net loss from unconsolidated joint ventures(673)(7,582)(4,911)
$107,945 $(3,757)$(59,221)$4,316 $(25,184)$(19,480)
The following table summarizes the notional value at inception and fair value of our joint ventures' derivative financial instruments as of December 31, 2022 based on Level 2 information. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands).
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
  
Amount of (Loss) Gain
Recognized in
Other Comprehensive Loss
(Effective Portion)
 Location of (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income 
Amount of Loss
Reclassified from
Accumulated Other Comprehensive Loss into Income
(Effective Portion)
 Location of (Loss) Gain Recognized in Income on Derivative 
Amount of (Loss) Gain 
Recognized into Income
(Ineffective Portion)
  Year Ended
December 31,		  Year Ended
December 31,		  Year Ended
December 31,
Derivative 2017 2016 2015  2017 2016 2015  2017 2016 2015
Interest Rate Swaps/Caps $(2,282) $14,616
 $(11,607) Interest expense $1,821
 $9,521
 $10,892
 Interest expense $5
 $(28) $(422)
Share of unconsolidated joint ventures' derivative instruments (200) 2,012
 (1,779) Equity in net income from unconsolidated joint ventures 1,035
 1,981
 1,265
 Equity in net income from unconsolidated joint ventures 55
 785
 (19)
  $(2,482) $16,628
 $(13,386)   $2,856
 $11,502
 $12,157
   $60
 $757
 $(441)
Notional ValueStrike RateEffective DateExpiration DateClassificationFair Value
Interest Rate Cap$23,000 4.750 %January 2021January 2023$— 
Interest Rate Cap220,000 4.000 %February 2022February 202393 
Interest Rate Cap510,000 3.000 %December 2021June 20234,220 
Interest Rate Cap267,000 4.000 %July 2022August 20231,289 
Interest Rate Cap400,000 3.500 %September 2022September 20233,839 
Interest Rate Cap1,075,000 4.080 %September 2022September 20236,004 
Interest Rate Cap125,000 4.080 %September 2022September 2023698 
Interest Rate Cap118,670 0.490 %February 2022May 202422,669 
Interest Rate Cap118,670 0.490 %February 2022May 202422,652 
Interest Rate Swap177,000 1.669 %December 2022February 202612,576 
$74,040 
18. RentalLease Income
The Operating Partnership is the lessor and the sublessor to tenants under operating leases with expiration dates ranging from January 1, 2018 to 2064.and sales-type leases. The minimum rental amounts due under the leases are generally either subject to scheduled fixed increases or adjustments. The leases generally also require that the tenants reimburse us for increases in certain operating costs and real estate taxes above their base year costs. Approximate future
Future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases in effect at December 31, 2017 for the consolidated properties, including consolidated joint venture properties, and our share of unconsolidated joint venture properties2022 are as follows (in thousands):
2023$596,648 
2024569,125 
2025543,287 
2026486,771 
2027415,123 
Thereafter1,718,650 
$4,329,604 
The components of lease income from operating leases in effect at December 31, 2022 and 2021 were as follows (in thousands):
Twelve Months Ended December 31,
20222021
Fixed lease payments$594,541 $600,474 
Variable lease payments82,676 73,542 
Total lease payments(1)
$677,217 $674,016 
Amortization of acquired above and below-market leases(5,717)4,160 
Total rental revenue$671,500 $678,176 
(1)Amounts include $222.1 million and $229.2 million of sublease income for the years ended December 31, 2022 and 2021, respectively.

The table below summarizes our investment in sales-type leases as of December 31, 2022:
PropertyYear of Current Expiration
Year of Final Expiration (1)
15 Beekman (2)
20892089
(1)Reflects exercise of all available renewal options.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
  
Consolidated
Properties
 
Unconsolidated
Properties
2018 $901,092
 $433,764
2019 865,254
 386,564
2020 790,714
 424,201
2021 657,283
 426,078
2022 558,993
 414,889
Thereafter 3,339,829
 3,102,309
  $7,113,165
 $5,187,805
(2)In August 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company for the building at 15 Beekman. See Note 6, "Investments in Unconsolidated Joint Ventures."
Future minimum lease payments to be received over the next five years and thereafter for our sales-type leases with initial terms in excess of one year as of December 31, 2022 are as follows (in thousands):
Sales-type leases
2023$3,133 
20243,180 
20253,228 
20263,276 
20273,325 
Thereafter200,169 
Total minimum lease payments$216,311 
Amount representing interest(111,988)
Investment in sales-type leases (1)
$104,323 
(1)This amount is included in Other assets in our consolidated balance sheets.
The components of lease income from sales-type leases during the years ended December 31, 2022 and 2021 were as follows (in thousands):
Twelve Months Ended December 31,
20222021
Interest income (1)
$4,389 $4,422 
(1)These amounts are included in Other income in our consolidated statements of operations.
19. Benefit Plans
The building employees are covered by multi-employer defined benefit pension plans and post-retirement health and welfare plans. We participate in the Building Service 32BJ, or Union, Pension Plan and Health Plan. The Pension Plan is a multi-employer, non-contributory defined benefit pension plan that was established under the terms of collective bargaining agreements between the Service Employees International Union, Local 32BJ, the Realty Advisory Board on Labor Relations, Inc. and certain other

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December 31, 2017

employees. This Pension Plan is administered by a joint board of trustees consisting of union trustees and employer trustees and operates under employer identification number 13-1879376. The Pension Plan year runs from July 1 to June 30. Employers contribute to the Pension Plan at a fixed rate on behalf of each covered employee. Separate actuarial information regarding such pension plans is not made available to the contributing employers by the union administrators or trustees, since the plans do not maintain separate records for each reporting unit. However, on September 27, 2020, September 28, 2015,2021 and September 28, 2016, and September 28, 2017,2022, the actuary certified that for the plan years beginning July 1, 2015,2020, July 1, 2016,2021 and July 1, 2017,2022, the Pension Plan was in critical or endangered status under the Pension Protection Act of 2006. The Pension Plan trustees adopted a rehabilitation plan consistent with this requirement. No surcharges have been paid to the Pension Plan as of December 31, 2017.2022. As of the date of this report, information was not yet available for the Pension Plan year ended June 30, 2022. For the Pension Plan years ended June 30, 2017, 2016,2021 and 2015,2020, the plan received contributions from employers totaling $257.8 million, $249.5$290.1 million and $221.9 million.$291.3 million, respectively. Our contributions to the Pension Plan represent less than 5.0% of total contributions to the plan.
The Health Plan was established under the terms of collective bargaining agreements between the Union, the Realty Advisory Board on Labor Relations, Inc. and certain other employers. The Health Plan provides health and other benefits to eligible participants employed in the building service industry who are covered under collective bargaining agreements, or other written agreements, with the Union. The Health Plan is administered by a Board of Trustees with equal representation by the employers and the Union and operates under employer identification number 13-2928869. The Health Plan receives contributions in accordance with collective bargaining agreements or participation agreements. Generally, these agreements provide that the employers contribute to the Health Plan at a fixed rate on behalf of each covered employee. As of the date of this report, information was not yet available for the Health Plan year ended June 30, 2022. For the Health Plan years ended, June 30, 2017, 2016,2021 and 2015,2020, the plan received contributions from employers totaling $1.3 billion, $1.2$1.5 billion and $1.1$1.6 billion, respectively. Our contributions to the Health Plan represent less than 5.0% of total contributions to the plan.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
Contributions we made to the multi-employer plans for the years ended December 31, 2017, 20162022, 2021 and 20152020 are included in the table below (in thousands):
Benefit Plan2017 2016 2015Benefit Plan202220212020
Pension Plan$3,856
 $3,979
 $2,732
Pension Plan$1,952 $1,994 $2,480 
Health Plan11,426
 11,530
 8,736
Health Plan6,386 6,333 7,688 
Other plans1,463
 1,583
 5,716
Other plans807 849 929 
Total plan contributions$16,745
 $17,092
 $17,184
Total plan contributions$9,145 $9,176 $11,097 
401(K) Plan
In August 1997, we implemented a 401(K) Savings/Retirement Plan, or the 401(K) Plan, to cover eligible employees of ours, and any designated affiliate. The 401(K) Plan permits eligible employees to defer up to 15% of their annual compensation, subject to certain limitations imposed by the Code. The employees' elective deferrals are immediately vested and non-forfeitable upon contribution to the 401(K) Plan. During 2003, we amended our 401(K) Plan to provide for discretionary matching contributions only. For 2017, 20162022, 2021 and 2015,2020, a matching contribution equal to 50%100% of the first 6%4% of annual compensation was made. For the year ended December 31, 2017, we made a matching contribution of $728,782. For the years ended December 31, 20162022, 2021 and 2015,2020, we made matching contributions of $566,000$1.5 million, $1.5 million, and $550,000,$1.7 million, respectively.
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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
20. Commitments and Contingencies
Legal Proceedings
As of December 31, 2017,2022, the Company and the Operating Partnership were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio which if adversely determined could have a material adverse impact on us.
Environmental Matters
Our management believes that the properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold.
Employment Agreements
We have entered into employment agreements with certain executives, which expire between December 2018July 2023 and February 2020.January 2025. The minimum cash-based compensation, including base salary and guaranteed bonus payments, associated with these employment agreements total $5.4$3.4 million for 2018. In addition these employment agreements provide for deferred compensation

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Notes to Consolidated Financial Statements (cont.)
December 31, 2017

awards based on our stock price and which were valued at $1.6 million on the grant date. The value of these awards may change based on fluctuations in our stock price.2023.
Insurance
We maintain “all-risk” property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism, excluding nuclear, biological, chemical, and radiological terrorism ("NBCR")), within threetwo property insurance programs and liability insurance. Separate property and liability coverage may be purchased on a stand-alone basis for certain assets, such as the development projects. Additionally, one of One Vanderbilt. Additionally, our captive insurance company,companies, Belmont Insurance Company, or Belmont, provides coverage for NBCR terrorist acts above a specified trigger, although iftrigger. Belmont's retention is reinsured by our other captive insurance company, Ticonderoga Insurance Company ("Ticonderoga"). If Belmont isor Ticonderoga are required to pay a claim under our insurance policies, we would ultimately record the loss to the extent of Belmont's required payment.payments. However, there is no assurance that in the future we will be able to procure coverage at a reasonable cost. Further, if we experience losses that are uninsured or that exceed policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. Additionally, our debt instruments contain customary covenants requiring us to maintain insurance and we could default under our debt our instruments if the cost and/or availability of certain types of insurance make it impractical or impossible to comply with such covenants relating to insurance. Belmont providesand Ticonderoga provide coverage solely on properties owned by the Company or its affiliates.
Furthermore, with respect to certain of our properties, including properties held by joint ventures or subject to triple net leases, insurance coverage is obtained by a third-party and we do not control the coverage. While we may have agreements with such third parties to maintain adequate coverage and we monitor these policies, such coverage ultimately may not be maintained or adequately cover our risk of loss.
Belmont had loss reserves of $5.5$3.1 million and $6.3$2.9 million as of December 31, 20172022 and 2016,2021, respectively. Ticonderoga had no loss reserves as of December 31, 2022 and 2021.
Capital and Ground LeasesLease Arrangements
In 2015,We are a tenant under leases for certain properties, including ground leases. These leases have expirations from 2033 to 2119, or 2043 to 2119 as fully extended. Certain leases offer extension options which we entered into a ground lease forassess against relevant economic factors to determine whether we are reasonably certain of exercising or not exercising the land and building located at 30 East 40th Streetoption. Lease payments associated with a lease term endingrenewal periods that we are reasonably certain will be exercised, if any, are included in August 2114. Based on our evaluationthe measurement of the arrangement under ASC 840, land was estimatedcorresponding lease liability and right of use asset.
Certain of our leases are subject to be approximately 63.6%rent resets, generally based on a percentage of the then fair market value, a fixed amount, or a percentage of the property. The portion attributablepreceding rent at specified future dates. Rent resets will be recognized in the periods in which they are incurred. Additionally, certain of our leases are subject to land was classified as operating lease with an expiration date of 2114 ($76.0 million total overpercentage rent arrangements based on thresholds established in the lease term attributed to ground rent) andagreement, such as percentage of sales at the remainder as a capital leaseproperty. Percentage rents will be recognized in the amount of $20.0 million.
The property located at 420 Lexington Avenue operates under a ground lease ($10.9 million of ground rent annually through December 2019, $11.2 million of ground rent annually through December 2029, and $12.3 million annually afterwards, subject to a one-time adjustment based on 6% of the fair value of the land) with an expiration date of 2050 and two options to renew for an additional 35 years.
The property located at 1080 Amsterdam Avenue operates under a ground and capital lease with an expiration date of 2111 ($41.6 million total over the lease term attributed to ground rent). Land was estimated to be 40.0% of the fair market value of the property,periods in which was classified as an operating lease. The remainder was classified as a capital lease.
The property located at 711 Third Avenue operates under an operating sub-lease with an expiration date of 2033 and five options to renew for an additional 10 years each. The ground rent was reset in July 2011. Following the reset, wethey are responsible for ground rent payments of $5.25 million annually through July 2016 and then $5.5 million annually thereafter on the 50% portion of the fee that we do not own.
The property located at 461 Fifth Avenue operates under a ground lease ($2.1 million of ground rent annually) with an expiration date of 2027 and two options to renew for an additional 21 years each, followed by a third option for 15 years. We also have an option to purchase the fee position for a fixed price on a specific date.
The property located at 625 Madison Avenue operates under a ground lease ($4.6 million of ground rent annually) with an expiration date of 2022 and two options to renew for an additional 23 years.
The property located at 1185 Avenue of the Americas operates under a ground lease ($6.9 million of ground rent annually) with an expiration date of 2043 and an option to renew for an additional 23 years.
The property located at 1055 Washington Boulevard operates under a ground lease ($0.6 million of ground rent annually) with an expiration date of 2090.

incurred.
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Notes to Consolidated Financial Statements (cont.)
December 31, 20172022    

The table below summarizes our current lease arrangements as of December 31, 2022:
Property (1)
Year of Current Expiration
Year of Final Expiration (2)
711 Third Avenue (3)
20332083
1185 Avenue of the Americas20432043
SL Green Headquarters at One Vanderbilt (4)
20432048
625 Madison Avenue20432054
420 Lexington Avenue20502080
Summit One Vanderbilt20582070
15 Beekman (5)(6)
21192119
(1)All leases are classified as operating leases unless otherwise specified.
(2)Reflects exercise of all available extension options.
(3)The Company owns 50% of the fee interest.
(4)In March 2021, the Company commenced its lease for its corporate headquarters at One Vanderbilt. See note 10, "Related Party Transactions."
(5)The Company has an option to purchase the ground lease for a fixed price on a specific date. The lease is classified as a financing lease.
(6)In August 2020, the Company entered into a long-term sublease with an unconsolidated joint venture as part of the capitalization of the 15 Beekman development project. See Note 6, "Investments in Unconsolidated Joint Ventures."
The following is a schedule of future minimum lease payments under capitalas evaluated in accordance with ASC 842 for our financing leases and non-cancellable operating leases with initial terms in excess of one year as of December 31, 20172022 (in thousands):
Financing leasesOperating leases
2023$3,133 $52,220 
20243,180 58,068 
20253,228 58,207 
20263,276 58,347 
20273,325 58,358 
Thereafter200,169 1,334,570 
Total minimum lease payments$216,311 $1,619,770 
Amount representing interest(112,093)— 
Amount discounted using incremental borrowing rate— (724,670)
Total lease liabilities excluding liabilities related to assets held for sale$104,218 $895,100 
Total lease liabilities$104,218 $895,100 

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Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
  Capital lease 
Non-cancellable
operating leases
2018 $2,387
 $31,049
2019 2,411
 31,066
2020 2,620
 31,436
2021 2,794
 31,628
2022 2,794
 29,472
Thereafter 819,894
 703,254
Total minimum lease payments $832,900
 $857,905
Amount representing interest (790,057)  
Capital lease obligations $42,843
  
The following table provides lease cost information for the Company's operating leases for the twelve months ended December 31, 2022 and 2021 (in thousands):
Twelve Months Ended December 31,
Operating Lease Costs20222021
Operating lease costs before capitalized operating lease costs$33,773 $30,270 
Operating lease costs capitalized(6,830)(3,716)
Operating lease costs, net (1)
$26,943 $26,554 
(1)This amount is included in Operating lease rent in our consolidated statements of operations.
The following table provides lease cost information for the Company's financing leases for the twelve months ended December 31, 2022 and 2021 (in thousands):
Twelve Months Ended December 31,
Financing Lease Costs20222021
Interest on financing leases before capitalized interest$4,555 $5,448 
Interest on financing leases capitalized— — 
Interest on financing leases, net (1)
4,555 5,448 
Amortization of right-of-use assets (2)
22,112 660 
Financing lease costs, net$26,667 $6,108 
(1)These amounts are included in Interest expense, net of interest income in our consolidated statements of operations.
(2)These amounts are included in Depreciation and amortization in our consolidated statements of operations.
As of December 31, 2022, the weighted-average discount rate used to calculate the lease liabilities was 4.51%. As of December 31, 2022, the weighted-average remaining lease term was 28 years, inclusive of purchase options expected to be exercised.
124
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2022    
21. Segment Information
The Company is a REIT engaged in all aspects of property ownership and management including investment, leasing operations, capital improvements, development, redevelopment, financing, construction and maintenance in the New York metropolitan area and havehas two reportable segments, real estate and debt and preferred equity.equity investments. We evaluate real estate performance and allocate resources based on earnings contribution to income from continuing operations.contributions.
The primary sources of revenue are generated from tenant rents, and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, insurance, real estate taxes and, at certain properties, ground rent expense (at certain applicable properties).expense. See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments.
Selected consolidated results of operations for the years ended December 31, 2017, 2016,2022, 2021, and 2015,2020, and selected asset information as of December 31, 20172022 and 2016,2021, regarding our operating segments are as follows (in thousands):
Real Estate SegmentDebt and Preferred Equity SegmentTotal Company
Total revenues
Years ended:
December 31, 2022$745,626 $81,113 $826,739 
December 31, 2021763,651 80,340 843,991 
December 31, 2020932,581 120,163 1,052,744 
Net (loss) income
Years ended:
December 31, 2022$(132,283)$55,980 $(76,303)
December 31, 2021412,393 68,239 480,632 
December 31, 2020354,353 60,405 414,758 
Total assets
As of:
December 31, 2022$11,727,418 $628,376 $12,355,794 
December 31, 20219,974,140 1,092,489 11,066,629 
  Real Estate Segment Debt and Preferred Equity Segment Total Company
Total revenues      
Years ended:      
December 31, 2017 $1,317,602
 $193,871
 $1,511,473
December 31, 2016 1,650,973
 213,008
 1,863,981
December 31, 2015 1,481,701
 181,128
 1,662,829
Income from continuing operations before 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, loss on early extinguishment of debt, and gain (loss) on sale of marketable securities      
Years ended:      
December 31, 2017 $16,557
 $170,363
 $186,920
December 31, 2016 (197,000) 204,256
 7,256
December 31, 2015 (71,634) 161,923
 90,289
Total assets      
As of:      
December 31, 2017 $11,696,560
 $2,286,344
 $13,982,904
December 31, 2016 13,868,672
 1,989,115
 15,857,787
Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income less allocated interest expense for the debt and preferred equity segment. Interest costs for the debt and preferred equity segment includesinclude any actual costs incurred for investments collateralizingborrowings on the MRA.2017 MRA and the FHLB Facility. Interest is imputed on the remaining investments

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SL Green Realty Corp. that do not collateralize the 2017 MRA and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2017

the FHLB Facility using our weighted average corporate borrowing cost. We also allocate loan loss reserves, net of recoveries, and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses to the debt and preferred equity segment sincebecause that segment does not have dedicated personnel and the use of personnel and resources is dependent on transaction volume between the two segments, andwhich varies period over period.between periods. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. For the years ended, December 31, 2016, 2015,2022, 2021, and 20142020 marketing, general and administrative expenses totaled $100.5$93.8 million, $99.8$94.9 million, and $94.9$91.8 million respectively. All other expenses, except interest, relate entirely to the real estate assets.
There were no transactions between the above two segments.
The table below reconciles income from continuing operations to net income for the years ended December 31, 2017, 2016, and 2015 (in thousands):
125
  Year ended December 31,
  2017 2016 2015
Income from continuing operations before 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, loss on early extinguishment of debt, and gain (loss) on sale of marketable securities $186,920
 $7,256
 $90,289
Equity in net gain on sale of interest in unconsolidated joint venture/real estate 16,166
 44,009
 15,844
Purchase price fair value adjustment —
 —
 40,078
Gain on sale of real estate, net 73,241
 238,116
 175,974
Depreciable real estate reserves (178,520) (10,387) (19,226)
Loss on early extinguishment of debt —
 —
 (49)
Gain (loss) on sale of investment in marketable securities 3,262
 (83) —
Income from continuing operations 101,069
 278,911
 302,910
Net income from discontinued operations —
 —
 427
Gain on sale of discontinued operations —
 —
 14,122
Net income $101,069
 $278,911
 $317,459

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2017

22. Quarterly Financial Data of the Company (unaudited)
Summarized quarterly financial data for the years ended December 31, 2017 and 2016 was as follows (in thousands, except for per share amounts):
2017 Quarter EndedDecember 31 September 30 June 30 March 31
Total revenues$361,342
 $374,600
—
$398,150
—
$377,381
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 (loss) on sale of real estate, depreciable real estate reserves and gain on the sale of investment in marketable securities$47,234
 $40,687
—
$32,401
—
$44,706
Equity in net income from unconsolidated joint ventures7,788
 4,078
—
3,412
—
6,614
Equity in net gain on sale of interest in unconsolidated joint venture/real estate—
 1,030
—
13,089
—
2,047
Gain (loss) on sale of real estate, net76,497
 —
—
(3,823)—
567
Depreciable real estate reserves(93,184) —
—
(29,064)—
(56,272)
Gain on the sale of investment in marketable securities—
 —
—
—
—
3,262
Noncontrolling interests and preferred unit distributions(6,616) (3,188)—
(4,056)—
14,165
Net income attributable to SL Green31,719

42,607


11,959


15,089
Perpetual preferred stock dividends(3,737) (3,738) (3,737)—
(3,738)
Net income attributable to SL Green common stockholders$27,982
 $38,869


$8,222


$11,351
Net income attributable to common stockholders per common share—basic$0.29
 $0.40
—
$0.08
—
$0.11
Net income attributable to common stockholders per common share—diluted$0.29
 $0.40
—
$0.08
—
$0.11
2016 Quarter EndedDecember 31 September 30 June 30 March 31
Total revenues$374,242
 $416,681
 $617,614
 $455,444
Income (loss) from continuing operations before equity in net (loss) 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, depreciable real estate reserves and loss on sale of marketable securities$26,278
 $46,689
 $(76,304) $(1,281)
Equity in net (loss) income from unconsolidated joint ventures(95) (3,968) 5,841
 10,096
Equity in net gain on sale of interest in unconsolidated joint venture/real estate421
 225
 33,448
 9,915
Gain on sale of real estate, net27,366
 397
 196,580
 13,773
Depreciable real estate reserves—
 —
 (10,387) —
Loss on the sale of investment in marketable securities—
 —
 (83) —
Noncontrolling interests and preferred unit distributions(6,217) (5,353) (11,901) (5,544)
Net income attributable to SL Green47,753

37,990

137,194
 26,959
Perpetual preferred stock dividends(3,737) (3,738) (3,737) (3,738)
Net income attributable to SL Green common stockholders$44,016
 $34,252
 $133,457
 $23,221
Net income attributable to common stockholders per common share—basic$0.44
 $0.34
 $1.33
 $0.23
Net income attributable to common stockholders per common share—diluted$0.44
 $0.34
 $1.33
 $0.23

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2017

23. Quarterly Financial Data of the Operating Partnership (unaudited)
Summarized quarterly financial data for the years ended December 31, 2017 and 2016 was as follows (in thousands, except for per share amounts):
2017 Quarter EndedDecember 31 September 30 June 30 March 31
Total revenues$361,342
 $374,600
—
$398,150
—
$377,381
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 (loss) on sale of real estate, depreciable real estate reserves and gain on the sale of investment in marketable securities$47,234
 $40,687
—
$32,401
—
$44,706
Equity in net income from unconsolidated joint ventures7,788
 4,078
—
3,412
—
6,614
Equity in net gain on sale of interest in unconsolidated joint venture/real estate—
 1,030
—
13,089
—
2,047
Gain (loss) on sale of real estate, net76,497
 —
—
(3,823)—
567
Depreciable real estate reserves(93,184) —
—
(29,064)—
(56,272)
Gain on the sale of investment in marketable securities—
 —
—
—
—
3,262
Noncontrolling interests and preferred unit distributions(5,328) (1,376)—
(3,637)—
14,641
Net income attributable to SLGOP33,007

44,419
—
12,378


15,565
Perpetual preferred units distributions(3,737) (3,738)—
(3,737)—
(3,738)
Net income attributable to SLGOP common unitholders$29,270

$40,681
—
$8,641
 $11,827
Net income attributable to common unitholders per common unit—basic$0.29
 $0.40
—
$0.08
—
$0.11
Net income attributable to common unitholders per common unit—diluted$0.29
 $0.40
—
$0.08
—
$0.11
2016 Quarter EndedDecember 31 September 30 June 30 March 31
Total revenues$374,242
 $416,681
 $617,614
 $455,444
Income (loss) from continuing operations before equity in net (loss) 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, depreciable real estate reserves and loss on the sale of investment in marketable securities$26,278
 $46,689
 $(76,304) $(1,281)
Equity in net (loss) income from unconsolidated joint ventures(95) (3,968) 5,841
 10,096
Equity in net gain on sale of interest in unconsolidated joint venture/real estate421
 225
 33,448
 9,915
Gain on sale of real estate, net27,366
 397
 196,580
 13,773
Depreciable real estate reserves—
 —
 (10,387) —
Loss on the sale of investment in marketable securities—
 —
 (83) —
Noncontrolling interests and preferred unit distributions(4,252) (3,690) (6,315) (4,622)
Net income attributable to SLGOP49,718
 39,653
 142,780
 27,881
Perpetual preferred units distributions(3,737) (3,738) (3,737) (3,738)
Net income attributable to SLGOP common unitholders$45,981
 $35,915
 $139,043
 $24,143
Net income attributable to common unitholders per common unit—basic$0.44
 $0.34
 $1.33
 $0.23
Net income attributable to common unitholders per common unit—diluted$0.44
 $0.34
 $1.33
 $0.23

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Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Schedule II - Valuation and Qualifying Accounts
December 31, 2017
(in thousands)


Column A Column B Column C Column D Column E
Description 
Balance at
Beginning of
Year
 
Additions
Charged Against
Operations
 
Uncollectible
Accounts
Written-off/Recovery (1)
 
Balance at
End of Year
Year Ended December 31, 2017        
Tenant and other receivables—allowance $16,592
 $6,106
 $(4,061) $18,637
Deferred rent receivable—allowance $25,203
 $2,321
 $(10,317) $17,207
Year Ended December 31, 2016        
Tenant and other receivables—allowance $17,618
 $10,630
 $(11,656) $16,592
Deferred rent receivable—allowance $21,730
 $13,620
 $(10,147) $25,203
Year Ended December 31, 2015        
Tenant receivables—allowance $18,068
 $8,139
 $(8,589) $17,618
Deferred rent receivable—allowance $27,411
 $2,789
 $(8,470) $21,730
(1) Includes the effect of properties that were sold and/or deconsolidated within the period.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Schedule III - Real Estate and Accumulated Depreciation
December 31, 20172022
(in thousands)

Column AColumn BColumn C
Initial Cost
Column D Cost
Capitalized
Subsequent To
Acquisition (1)
Column E Gross Amount at Which
Carried at Close of Period		Column FColumn GColumn HColumn I
Description (2)EncumbrancesLandBuilding &
Improvements		LandBuilding &
Improvements		LandBuilding &
Improvements (3)		TotalAccumulated DepreciationDate of
Construction		Date
Acquired		Life on 
Which
Depreciation is
Computed
420 Lexington Ave$283,064 $— $333,499 $— $225,456 $— $558,955 $558,955 $205,225 19273/1998Various
711 Third Avenue— 19,844 115,769 — 71,773 19,844 187,542 207,386 81,265 19555/1998Various
555 W. 57th Street— 18,846 140,946 — 4,499 18,846 145,445 164,291 91,729 19711/1999Various
461 Fifth Avenue— — 88,276 28,873 9,068 28,873 97,344 126,217 41,304 198810/2003Various
750 Third Avenue— 51,093 251,523 — 52,043 51,093 303,566 354,659 110,402 19587/2004Various
625 Madison Avenue— — 291,319 — 146,707 — 438,026 438,026 150,321 195610/2004Various
485 Lexington Avenue450,000 78,282 452,631 — (20,977)78,282 431,654 509,936 189,131 195612/2004Various
810 Seventh Avenue— 114,077 550,819 — 5,483 114,077 556,302 670,379 232,822 19701/2007Various
1185 Avenue of the Americas— — 791,106 — 131,034 — 922,140 922,140 375,907 19691/2007Various
1350 Avenue of the Americas— 90,941 431,517 — 8,487 90,941 440,004 530,945 182,958 19661/2007Various
1-6 Landmark Square (4)100,000 27,852 161,343 (6,939)(27,266)20,913 134,077 154,990 41,964 1973-19841/2007Various
7 Landmark Square (4)— 1,721 8,417 (1,337)(6,240)384 2,177 2,561 606 20071/2007Various
100 Church Street370,000 34,994 183,932 — 10,100 34,994 194,032 229,026 71,515 19591/2010Various
125 Park Avenue— 120,900 270,598 — 19,946 120,900 290,544 411,444 120,545 192310/2010Various
19 East 65th Street— 8,603 2,074 — 1,888 8,603 3,962 12,565 4 192901/2012Various
304 Park Avenue— 54,489 90,643 — 7,425 54,489 98,068 152,557 29,685 19306/2012Various
760 Madison Avenue (5)— 284,286 8,314 (2,450)107,078 281,836 115,392 397,228 4,991 1996/20127/2014Various
719 Seventh Avenue (6)50,000 41,180 46,232 — (4,724)41,180 41,508 82,688 4,388 19277/2014Various
110 Greene Street— 45,120 228,393 — 4,166 45,120 232,559 277,679 49,982 19107/2015Various
7 Dey / 185 Broadway (7)210,148 45,540 27,865 — 204,968 45,540 232,833 278,373 2,658 19218/2015Various
885 Third Avenue (8)— 138,444 244,040 (138,444)(136,174)— 107,866 107,866 6,664 198607/2020Various
690 Madison60,000 13,820 51,732 — 28 13,820 51,760 65,580 2,044 187909/2021Various
245 Park Avenue1,712,750 505,458 1,394,584 — 14,597 505,458 1,409,181 1,914,639 20,877 196609/2022Various
Other (9)— 1,734 16,224 — 610,711 1,734 626,935 628,669 22,567 
Total$3,235,962 $1,697,226 $6,181,796 $(120,297)$1,440,076 $1,576,927 $7,621,872 $9,198,799 $2,039,554 
(1)Includes depreciable real estate reserves and impairments recorded subsequent to acquisition.
(2)All properties located in New York, New York unless otherwise noted.
(3)Includes right of use lease assets.
(4)Property located in Connecticut.
(5)Includes amounts attributable to the property at 762 Madison Avenue, which is part of this development project.
(6)We own a 75.0% interest in this property.
(7)Properties at 5-7 Dey Street, 183 Broadway, and 185 Broadway were demolished in preparation of the development site for the 7 Dey / 185 Broadway project.
(8)In December 2022, the Company sold 414,317 square feet of office leasehold condominium units at the property. The Company retained the remaining 218,796 square feet of the building.
(9)Other includes tenant improvements of eEmerge, capitalized interest and corporate improvements.
126
Column A Column B 
Column C
Initial Cost
 
Column D Cost
Capitalized
Subsequent To
Acquisition
 
Column E Gross Amount at Which
Carried at Close of Period
 Column F Column G Column H Column I
Description Encumbrances Land 
Building &
Improvements
 Land 
Building &
Improvements
 Land 
Building &
Improvements
 Total Accumulated Depreciation 
Date of
Construction
 
Date
Acquired
 
Life on 
Which
Depreciation is
Computed
420 Lexington Ave(1) $300,000
 $—
 $107,832
 $—
 $253,314
 $—
 $361,146
 $361,146
 $157,502
 1927 3/1998 Various
711 Third Avenue(1)(2) —
 19,844
 42,499
 —
 66,553
 19,844
 109,052
 128,896
 39,396
 1955 5/1998 Various
555 W. 57th Street(1) —
 18,846
 78,704
 —
 61,424
 18,846
 140,128
 158,974
 64,281
 1971 1/1999 Various
220 East 42nd Street(1) 275,000
 50,373
 203,727
 635
 143,059
 51,008
 346,786
 397,794
 97,895
 1929 2/2003 Various
461 Fifth Avenue(1) —
 —
 62,695
 —
 16,185
 —
 78,880
 78,880
 28,378
 1988 10/2003 Various
750 Third Avenue(1) —
 51,093
 205,972
 —
 42,543
 51,093
 248,515
 299,608
 93,469
 1958 7/2004 Various
625 Madison Ave(1) —
 —
 246,673
 —
 43,175
 —
 289,848
 289,848
 107,791
 1956 10/2004 Various
485 Lexington Avenue(1) 450,000
 77,517
 326,825
 765
 110,648
 78,282
 437,473
 515,755
 168,921
 1956 12/2004 Various
609 Fifth Avenue(1) —
 36,677
 145,954
 —
 10,435
 36,677
 156,389
 193,066
 46,059
 1925 6/2006 Various
810 Seventh Avenue(1) —
 114,077
 476,386
 —
 71,735
 114,077
 548,121
 662,198
 162,606
 1970 1/2007 Various
919 Third Avenue(1)(3) 500,000
 223,529
 1,033,198
 35,410
 68,413
 258,939
 1,101,611
 1,360,550
 303,424
 1970 1/2007 Various
1185 Avenue of the Americas(1) —
 —
 728,213
 —
 47,793
 —
 776,006
 776,006
 242,681
 1969 1/2007 Various
1350 Avenue of the Americas(1) —
 91,038
 380,744
 (97) 41,911
 90,941
 422,655
 513,596
 124,638
 1966 1/2007 Various
100 Summit Lake Drive(4) —
 10,526
 43,109
 —
 11,215
 10,526
 54,324
 64,850
 16,963
 1988 1/2007 Various
200 Summit Lake Drive(4) —
 11,183
 47,906
 —
 11,177
 11,183
 59,083
 70,266
 18,818
 1990 1/2007 Various
500 Summit Lake Drive(4) —
 9,777
 39,048
 —
 6,358
 9,777
 45,406
 55,183
 13,074
 1986 1/2007 Various
360 Hamilton Avenue(4) —
 29,497
 118,250
 —
 15,392
 29,497
 133,642
 163,139
 39,811
 2000 1/2007 Various
1-6 Landmark Square(5) 100,000
 50,947
 195,167
 —
 51,515
 50,947
 246,682
 297,629
 70,120
 1973-1984 1/2007 Various
7 Landmark Square(5) —
 2,088
 7,748
 (367) 670
 1,721
 8,418
 10,139
 1,286
 2007 1/2007 Various
1010 Washington Boulevard(5) —
 7,747
 30,423
 —
 7,378
 7,747
 37,801
 45,548
 11,044
 1988 1/2007 Various
400 Summit Lake Drive(4) —
 38,889
 1
 285
 2
 39,174
 3
 39,177
 —
 --- 1/2007 N/A
1055 Washington Boulevard(5) —
 13,516
 53,228
 —
 8,390
 13,516
 61,618
 75,134
 18,075
 1987 6/2007 Various
1 Madison Avenue(1) 486,153
 172,641
 654,394
 905
 15,801
 173,546
 670,195
 843,741
 175,971
 1960 8/2007 Various
100 Church Street(1) 217,273
 32,494
 79,996
 2,500
 96,027
 34,994
 176,023
 211,017
 46,825
 1959 1/2010 Various
125 Park Avenue(1) —
 120,900
 189,714
 —
 74,660
 120,900
 264,374
 385,274
 65,529
 1923 10/2010 Various
Williamsburg(6) —
 3,677
 14,708
 2,523
 (4,550) 6,200
 10,158
 16,358
 1,865
 2010 12/2010 Various
110 East 42nd Street(1) —
 34,000
 46,411
 2,196
 27,253
 36,196
 73,664
 109,860
 17,603
 1921 5/2011 Various
400 East 58th Street(1)(7) 40,000
 17,549
 30,916
 —
 7,590
 17,549
 38,506
 56,055
 5,154
 1929 1/2012 Various
752 Madison Avenue(1) —
 282,415
 7,131
 1,871
 58
 284,286
 7,189
 291,475
 1,180
 1996/2012 1/2012 Various
762 Madison Avenue(1)(7) 771
 6,153
 10,461
 —
 131
 6,153
 10,592
 16,745
 1,627
 1910 1/2012 Various
19-21 East 65th Street(1)(7) —
 —
 7,389
 —
 364
 —
 7,753
 7,753
 1,141
 1928-1940 1/2012 Various
304 Park Avenue(1) —
 54,189
 75,619
 300
 14,550
 54,489
 90,169
 144,658
 16,445
 1930 6/2012 Various
635 Sixth Avenue(1) —
 24,180
 37,158
 163
 51,805
 24,343
 88,963
 113,306
 7,854
 1902 9/2012 Various
641 Sixth Avenue(1) —
 45,668
 67,316
 308
 6,029
 45,976
 73,345
 119,321
 12,097
 1902 9/2012 Various
1080 Amsterdam(1)(8) 36,363
 —
 27,445
 —
 20,489
 —
 47,934
 47,934
 4,216
 1932 10/2012 Various

141
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Schedule III - Real Estate and Accumulated Depreciation
December 31, 20172022
(in thousands)

Column A Column B 
Column C
Initial Cost
 
Column D Cost
Capitalized
Subsequent To
Acquisition
 
Column E Gross Amount at Which
Carried at Close of Period
 Column F Column G Column H Column I
Description Encumbrances Land 
Building &
Improvements
 Land 
Building &
Improvements
 Land 
Building &
Improvements
 Total Accumulated Depreciation 
Date of
Construction
 
Date
Acquired
 
Life on 
Which
Depreciation is
Computed
315 West 33rd Street (1) 250,000
 195,834
 164,429
 —
 11,583
 195,834
 176,012
 371,846
 19,966
 2000-2001 11/2013 Various
562 Fifth Avenue(1) —
 57,052
 10,487
 —
 1,213
 57,052
 11,700
 68,752
 3,596
 1909/1920/1921 11/2013 Various
719 Seventh Avenue(1)(9) 41,622
 41,850
 —
 2,336
 34,055
 44,186
 34,055
 78,241
 215
 1927 7/2014 Various
115 Spring Street(1) —
 11,078
 44,799
 —
 1,759
 11,078
 46,558
 57,636
 4,083
 1900 7/2014 Various
635 Madison(1) —
 205,632
 15,805
 —
 —
 205,632
 15,805
 221,437
 1,306
   9/2014 N/A
 1640 Flatbush Avenue(6) —
 6,226
 501
 —
 231
 6,226
 732
 6,958
 35
 1966 3/2015 Various
 One Vanderbilt (1)(10) —
 80,069
 116,557
 (80,069) (116,558) —
 (1) (1) —
 N/A 6/2001 - 11/2011 Various
 Upper East Side Residential (1)(11) —
 48,152
 —
 13,323
 —
 61,475
 —
 61,475
 —
 1930 6/2015 Various
 110 Greene Street (1)(7) —
 45,120
 215,470
 —
 9,611
 45,120
 225,081
 270,201
 15,693
 1910 7/2015 Various
 187 Broadway (1) —
 7,600
 9,412
 (7,600) (154) —
 9,258
 9,258
 9,258
 1969 8/2015 Various
 5-7 Dey Street (1) 58,000
 13,400
 34,175
 13,050
 10,481
 26,450
 44,656
 71,106
 34,136
 1921 8/2015 Various
 30 East 40th Street (1) —
 4,650
 20,000
 2
 4,197
 4,652
 24,197
 28,849
 534
 1927 8/2015 Various
183 Broadway(1) —
 5,799
 23,431
 (5,799) 923
 —
 24,354
 24,354
 24,354
 1920 3/2016 Various
Other(12) —
 922
 14,210
 (3) 2
 919
 14,212
 15,131
 3,201
     Various
Total $2,755,182
 $2,374,414
 $6,492,236
 $(17,363) $1,356,835
 $2,357,051
 $7,849,071
 $10,206,122
 $2,300,116
      
(1)Property located in New York, New York.
(2)We own a 50.0% interest in this property.
(3)We own a 51.0% interest in this property.
(4)Property located in Westchester County, New York.
(5)Property located in Connecticut.
(6)Property located in Brooklyn, New York.
(7)We own a 90.0% interest in this property.
(8)We own a 92.5% interest in this property.
(9)
We own a 75.0% interest in this property.
(10)Properties at 317 Madison Avenue, 331 Madison Avenue and 51 East 42nd Street were demolished in preparation of the development site for the One Vanderbilt project.
(11)We own a 95.1% interest in this property.
(12)Other includes tenant improvements of eEmerge, capitalized interest and corporate improvements.

142
Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Schedule III - Real Estate and Accumulated Depreciation
December 31, 2017
(in thousands)

The changes in real estate for the years ended December 31, 2017, 20162022, 2021 and 20152020 are as follows (in thousands):
 2017 2016 2015
Balance at beginning of year$12,743,332
 $16,681,602
 $14,069,141
Property acquisitions13,323
 29,230
 3,064,137
Improvements342,014
 426,060
 396,555
Retirements/disposals/deconsolidation(2,892,547) (4,393,560) (848,231)
Balance at end of year$10,206,122
 $12,743,332
 $16,681,602
202220212020
Balance at beginning of year$7,650,907 $7,355,079 $8,784,567 
Property acquisitions1,900,042 124,103 178,635 
Improvements335,413 296,876 481,327 
Retirements/disposals/deconsolidation(687,563)(125,151)(2,089,450)
Balance at end of year$9,198,799 $7,650,907 $7,355,079 
The aggregate cost of land, buildings and improvements, before depreciation, for Federal income tax purposes atas of December 31, 20172022 was $9.2$6.4 billion (unaudited).
The changes in accumulated depreciation, exclusive of amounts relating to equipment, autos, and furniture and fixtures, for the years ended December 31, 2017, 20162022, 2021 and 20152020 are as follows (in thousands):
202220212020
Balance at beginning of year$1,896,199 $1,956,077 $2,060,560 
Depreciation for year175,465 174,219 270,843 
Retirements/disposals/deconsolidation(32,110)(234,097)(375,326)
Balance at end of year$2,039,554 $1,896,199 $1,956,077 

127
 2017 2016 2015
Balance at beginning of year$2,264,694
 $2,060,706
 $1,905,165
Depreciation for year347,015
 353,502
 480,523
Retirements/disposals/deconsolidation(311,593) (149,514) (324,982)
Balance at end of year$2,300,116
 $2,264,694
 $2,060,706

143


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTNGACCOUNTING AND FINANCIAL DISCLOSURE
None.
128

ITEM 9A.    CONTROLS AND PROCEDURES
SL GREEN REALTY CORP.
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e) of the Exchange Act. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports. Also, the Company has investments in certain unconsolidated entities. As the Company does not control these entities, its disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those the Company maintains with respect to its consolidated subsidiaries.
As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation as of the end of the period covered by this report, the Company's Chief Executive Officer and Chief Financial Officer concluded that its disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.
Management's Report on Internal Control over Financial Reporting
The Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 20172022 based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (COSO). Based on that evaluation, the Company concluded that its internal control over financial reporting was effective as of December 31, 2017.2022.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.
The effectiveness of the Company's internal control over financial reporting as of December 31, 20172022 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which appears herein.
Changes in Internal Control over Financial Reporting
There have been no significant changes in the Company's internal control over financial reporting during the year ended December 31, 20172022 that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.
SL GREEN OPERATING PARTNERSHIP, L.P.
Evaluation of Disclosure Controls and Procedures
The Operating Partnership maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Operating Partnership's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Operating Partnership's management, including the Chief Executive Officer and Chief Financial Officer of the Operating Partnership's general partner, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of “disclosure controls and procedures” in Rule 13a-15(e) of the Exchange Act. Notwithstanding the foregoing, a control system, no matter how

144

well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Operating Partnership to disclose material information otherwise required to be set forth in the Operating Partnership's periodic reports. Also, the Operating Partnership has investments in certain unconsolidated entities. As the Operating Partnership does not control these entities, the Operating Partnership's disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those it maintains with respect to its consolidated subsidiaries.
129

As of the end of the period covered by this report, the Operating Partnership carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of the Operating Partnership's general partner, of the effectiveness of the design and operation of the Operating Partnership's disclosure controls and procedures. Based upon that evaluation as of the end of the period covered by this report, the Chief Executive Officer and Chief Financial Officer of the Operating Partnership's general partner concluded that the Operating Partnership's disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and disclosure of information relating to the Operating Partnership that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.
Management’s Report on Internal Control over Financial Reporting
The Operating Partnership is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15 (f) and 15d-15 (f). Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer of the Operating Partnership's general partner, the Operating Partnership conducted an evaluation of the effectiveness of its internal control over financial reporting as of December 31, 20172022 based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (COSO). Based on that evaluation, the Operating Partnership concluded that its internal control over financial reporting was effective as of December 31, 2017.2022.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.
The effectiveness of the Operating Partnership's internal control over financial reporting as of December 31, 20172022 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which appears herein.
Changes in Internal Control over Financial Reporting
There have been no significant changes in the Operating Partnership's internal control over financial reporting during the year ended December 31, 20172022 that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

130
145

Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of SL Green Realty Corp.
Opinion on Internal Control overOver Financial Reporting
We have audited SL Green Realty Corp.'s internal control over financial reporting as of December 31, 2017,2022, based on criteria established in Internal Control IntegratedControl-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, SL Green Realty Corp. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017,2022, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)(PCAOB), the 20172022 consolidated financial statements of the Company and our report dated February 23, 201816, 2023 expressed an unqualified opinion thereon.
Basis for Opinion
The Company'sCompany’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management'sManagement’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company'sCompany’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company'scompany’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company'scompany’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


/s/ Ernst & Young LLP
New York, New York
February 23, 201816, 2023



146
131

Report of Independent Registered Public Accounting Firm
To the Partners of SL Green Operating Partnership, L.P.
Opinion on Internal Control overOver Financial Reporting
We have audited SL Green Operating Partnership, L.P.'s internal control over financial reporting as of December 31, 2017,2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, SL Green Operating Partnership, L.P. (the Operating Partnership) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017,2022, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 20172022 consolidated financial statements of the Operating Partnership and our report dated February 23, 201816, 2023 expressed an unqualified opinion thereon.
Basis for Opinion
The Operating Partnership'sPartnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Operating Partnership's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company'scompany’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company'scompany’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


/s/ Ernst & Young LLP
New York, New York
February 23, 201816, 2023



147
132

ITEM 9B.    OTHER INFORMATION
None.

133
148

PART III
ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by Item 10 will be set forth in our Definitive Proxy Statement for our 20182023 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A under the Securities and Exchange Act of 1934, as amended, on or prior to April 30, 2018,2023, or the 20182023 Proxy Statement, and is incorporated herein by reference.
ITEM 11.    EXECUTIVE COMPENSATION
The information required by Item 11 will be set forth in the 20182023 Proxy Statement and is incorporated herein by reference.
ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The information required by Item 12 will be set forth in the 20182023 Proxy Statement and is incorporated herein by reference.
ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by Item 13 will be set forth under in the 20182023 Proxy Statement and is incorporated herein by reference.
ITEM 14.    PRINCIPAL ACCOUNTING FEES AND SERVICES
The information regarding principal accounting fees and services and the audit committee's pre-approval policies and procedures required by this Item 14 will be set forth in the 20182023 Proxy Statement and is incorporated herein by reference.

134
149

PART IV
ITEM 15. EXHIBITS, FINANCIAL STATEMENTS AND SCHEDULES
(a)(1) Consolidated Financial Statements
SL GREEN REALTY CORP.
Report of Independent Registered Public Accounting Firm
6958
Consolidated Balance Sheets as of December 31, 20172022 and 20162021
7060
Consolidated Statements of Operations for the years ended December 31, 2017, 20162022, 2021 and 20152020
7262
Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 20162022, 2021 and 20152020
7463
Consolidated Statements of Equity for the years ended December 31, 2017, 20162022, 2021 and 20152020
7564
Consolidated Statements of Cash Flows for the years ended December 31, 2017, 20162022, 2021 and 20152020
7766
SL GREEN OPERATING PARTNERSHIP, L.P.
Report of Independent Registered Public Accounting Firm
8069
Consolidated Balance Sheets as of December 31, 20172022 and 20162021
8171
Consolidated Statements of Operations for the years ended December 31, 2017, 20162022, 2021 and 20152020
8373
Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 20162022, 2021 and 20152020
8574
Consolidated Statements of Equity for the years ended December 31, 2017, 20162022, 2021 and 20152020
8675
Consolidated Statements of Cash Flows for the years ended December 31, 2017, 20162022, 2021 and 20152020
8776
Notes to Consolidated Financial Statements
9079
(a)(2)    Financial Statement Schedules
Schedule II—Valuation and Qualifying Accounts for the years ended December 31, 2017, 2016 and 2015
140
Schedule III—Real Estate and Accumulated Depreciation as of December 31, 20172022
141126
Schedules other than those listed are omitted as they are not applicable or the required or equivalent information has been included in the financial statements or notes thereto.
(a)(3)    In reviewing the agreements included as exhibits to this Annual Report on Form 10-K, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about us or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:
•should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
•have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
•may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
•were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about us may be found elsewhere in this Annual Report on Form 10-K and our other public filings, which are available without charge through the SEC's website at http://www.sec.gov.



150
135
Table of Contents





INDEX TO EXHIBITS
3.1

Articles of Restatement, incorporated by reference to the Company's Form 10-Q, dated July 11, 2014, filed with the SEC on August 11, 2014.
3.2

Articles of Amendment to the Company’s Articles of Restatement, incorporated by reference to the Company’s Form 8-K, dated July 18, 2017, filed with the SEC on July 18, 2017.
3.3

Articles of Amendment to the Company’s Articles of Restatement, incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K, dated January 20, 2021, filed with the SEC on January 20, 2021.
3.4
FourthArticles of Amendment to the Company’s Articles of Restatement, incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K, dated January 20, 2021, filed with the SEC on January 20, 2021.
3.5
Articles of Amendment to the Company's Articles of Restatement, incorporated by reference to Exhibit 3.1 to the Company's Form 8-K, dated January 21, 2022, filed with the SEC on January 21, 2022.
3.6
Articles of Amendment to the Company's Articles of Restatement, incorporated by reference to Exhibit 3.2 to the Company's Form 8-K, dated January 21, 2022, filed with the SEC on January 21, 2022.
3.7
Fifth Amended and Restated Bylaws of the Company, incorporated by reference to the Company's Form 8-K, dated March 23, 2016,December 21, 2018, filed with the SEC on March 23, 2016.December 28, 2018.
3.43.8

First Amendment to Fifth Amended and Restated Bylaws of the Company, effective as of May 11, 2020, incorporated by reference to the Company's Form 8-K, dated May 11, 2020, filed with the SEC on May 13, 2020.
3.9
Articles Supplementary Electing that SL Green Realty Corp. be Subject to Maryland General Corporations Law Section 3-804(c), incorporated by reference to the Company's Form 8-K, dated September 16, 2009, filed with the SEC on September 16, 2009.
3.53.10

Articles Supplementary reclassifying 4,600,000 shares of 8.0% Series A Convertible Cumulative Preferred Stock, 1,300,000 shares of Series B Junior Participating Preferred Stock and 4,000,000 shares of 7.875% Series D Cumulative Redeemable Preferred Stock into authorized preferred stock without further designation, incorporated by reference to the Company's Form 8-K, dated August 9, 2012, filed with the SEC on August 10, 2012.
3.63.11

Articles Supplementary classifying and designating 9,200,000 shares of the Company's 6.50% Series I Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, par value $0.01 per share, incorporated by reference to the Company's Form 8-K, dated August 9, 2012, filed with the SEC on August 10, 2012.
3.73.12

First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, incorporated by reference to the Company's Form 8-K, dated October 23, 2002, filed with the SEC on October 23, 2002.
3.83.13

First Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated May 14, 1998, incorporated by reference to the Company's Form 8-K, dated October 23, 2002, filed with the SEC on October 23, 2002.
3.93.14

Second Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed with the SEC on July 31, 2002.
3.103.15

Third Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated December 12, 2003, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2003, filed with the SEC on March 15, 2004.
3.11

Amended and Restated Fourth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of July 15, 2004, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004, filed with the SEC on March 15, 2005.
3.12

Fifth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of March 15, 2006, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2005, filed with the SEC on March 16, 2006.
3.133.16

Sixth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of June 30, 2006, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, filed with the SEC on August 10, 2006.
3.14

Seventh Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of January 25, 2007, incorporated by reference to the Company's Form 8-K, dated January 24, 2007, filed with the SEC on January 30, 2007.
3.153.17

Eighth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of January 20, 2010, incorporated by reference to the Company's Form 8-K, dated January 20, 2010, filed with the SEC on January 20, 2010.
3.163.18

Ninth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of November 30, 2011, incorporated by reference to the Company's Form 8-K, dated December 5, 2011, filed with the SEC on December 5, 2011.
3.17

Tenth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of January 31, 2012, incorporated by reference to the Company's Form 8-K, dated January 31, 2012, filed with the SEC on February 2, 2012.
3.183.19

Eleventh Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated March 6, 2012, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed with the SEC on May 10, 2012.
3.193.20

Twelfth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of August 10, 2012, incorporated by reference to the Company's Form 8-K, dated August 10, 2012, filed with the SEC on August 10, 2012.

151

3.203.21

Thirteenth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of April 2, 2014, incorporated by reference to the Company's Form 8-K, dated April 4, 2014, filed with the SEC on April 4, 2014.
3.21

Fourteenth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of July 1, 2014, incorporated by reference to the Company's Form 8-K, dated July 2, 2014, filed with the SEC on July 2, 2014.
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3.22

Fifteenth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of July 1, 2014, incorporated by reference to the Company's Form 8-K, dated July 2, 2014, filed with the SEC on July 2, 2014.
3.23

Sixteenth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as February 12, 2015, incorporated by reference to the Company's Form 8-K, dated February 12, 2015, filed with the SEC on February 13, 2015.
3.24

SeventeenthEighteenth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of June 19,25, 2015, incorporated by reference to the Company's Annual Report on Form 8-K, dated June 22, 2015,10-K for the year ended December 31, 2021, filed with the SEC on June 22, 2015.February 18, 2022.
3.253.24

Nineteenth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of July 22, 2015, incorporated by reference to the Company's Form 8-K, dated July 24, 2015, filed with the SEC on July 24, 2015.
3.263.25

Twentieth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of July 22, 2015, incorporated by reference to the Company's Form 8-K, dated July 24, 2015, filed with the SEC on July 24, 2015.
3.273.26

Twenty-First Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of August 20, 2015, incorporated by reference to the Company's Form 8-K, dated as of August 21, 2015, filed with the SEC on August 21, 2015.
3.283.27

Twenty-Second Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of August 20, 2015, incorporated by reference to the Company's Form 8-K, dated as of August 21, 2015, filed with the SEC on August 21, 2015.
3.293.28

Twenty-Third Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of March 28, 2016, incorporated by reference to the Company's Form 8-K, dated as of April 1, 2016, filed with the SEC on April 1, 2016.
3.30

Twenty-Fourth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of March 28, 2016, incorporated by reference to the Company's Form 8-K, dated as of April 1, 2016, filed with the SEC on April 1, 2016.
3.31

Twenty-Fifth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of June 17, 2016, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the SEC on November 9, 2016.
3.29
Twenty-Sixth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of May 1, 2019, incorporated by reference to the Company's Form 8-K, dated as of May 3, 2019, filed with the SEC on May 3, 2019.
3.30
Twenty-Seventh Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of January 8, 2020, incorporated by reference to the Company's Form 8-K, dated as of January 14, 2020, filed with the SEC on January 14, 2020.
3.31
Twenty-Eighth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of December 20, 2021, incorporated by reference to the Company's Form 8-K, dated as of December 20, 2021, filed with the SEC on December 22, 2021.
3.32
Twenty-Ninth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of October 26, 2022, incorporated by reference to the Company's Form 8-K, dated as of October 26, 2022, filed with the SEC on October 28, 2022.
4.1

Specimen Common Stock Certificate, incorporated by reference to the Company's Registration Statement on Form S-11 (No. 333-29329), declared effective by the SEC on August 14, 1997.
4.2

Form of stock certificate evidencing the 6.50% Series I Cumulative Redeemable Preferred Stock of the Company, liquidation preference $25.00 per share, par value $0.01 per share, incorporated by reference to the Company's Form 8-K, dated August 9, 2012, filed with the SEC on August 10, 2012.
4.3

Indenture, dated as of March 16, 2010, among ROP, as Issuer, the Company and the Operating Partnership, as Co-Obligors, and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated March 16, 2010, filed with the SEC on March 17, 2010.
4.4

Form of 7.75% Senior Note due 2020 of ROP, the Company and the Operating Partnership, incorporated by reference to the Company's Form 8-K, dated March 16, 2010, filed with the SEC on March 17, 2010.
4.5

Indenture, dated as of October 12, 2010, by and among the Operating Partnership, as Issuer, ROP, as Guarantor, the Company and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated October 12, 2010, filed with the SEC on October 14, 2010.
4.6

Indenture, dated as of August 5, 2011, among the Company, the Operating Partnership and ROP, as Co-Obligors, and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated August 5, 2011, filed with the SEC on August 5, 2011.
4.74.4

First Supplemental Indenture, dated as of August 5, 2011, among the Company, the Operating Partnership and ROP, as Co-Obligors, and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated August 5, 2011, filed with the SEC on August 5, 2011.
4.8

Form of 5.00% Senior Note due 2018 of the Company, the Operating Partnership and ROP, incorporated by reference to the Company's Form 8-K, dated August 5, 2011, filed with the SEC on August 5, 2011.

152

4.9

Second Supplemental Indenture, dated as of November 15, 2012, among the Company, the Operating Partnership and ROP, as Co-Obligors, and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated November 9, 2012, filed with the SEC on November 15, 2012.
4.104.5

Form of 4.50% Senior Note due 20182022 of the Company, the Operating Partnership and ROP, as Co-Obligors, incorporated by reference to the Company's Form 8-K, dated November 9, 2012, filed with the SEC on November 15, 2012.
4.114.6

Third Supplemental Indenture, dated as of December 28, 2018, among SL Green Realty Corp., SL Green Operating Partnership, L.P. and The Bank of New York Mellon, as Trustee, to the Indenture, dated as of August 5, 2011, among SL Green Realty Corp., SL Green Operating Partnership, L.P., Reckson Operating Partnership, L.P. and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated December 28, 2018, filed with the SEC on January 2, 2019.
4.7
Junior Subordinated Indenture, dated as of June 30, 2005, between the Operating Partnership and JPMorgan Chase Bank, National Association, as Trustee, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, filed with the SEC on August 9, 2005.
4.124.8

Indenture, dated as of October 5, 2017, among the Company, the Operating Partnership, ROP and Wells Fargo Securities, LLC and J.P. Morgan Securities LLC, as representatives of the several underwriters, incorporated by reference to the Company’s Form 8-K, dated October 5, 2017, filed with the SEC on October 5, 2017.
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Table of Contents

4.134.9

First Supplemental Indenture, dated as of October 5, 2017, among the Operating Partnership, as Issuer, the Company and ROP, as Guarantors, and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company’s Form 8-K, dated October 5, 2017, filed with the SEC on October 5, 2017.
4.144.10

Form of 3.250% Senior Note due 2022 of the Operating Partnership, incorporated by reference to the Company’s Form 8-K, dated October 5, 2017, filed with the SEC on October 5, 2017.
4.11
Description of the registrant's securities registered pursuant to section 12 of the Securities and Exchange Act of 1934, filed herewith
10.1

Amended and Restated Agreement of Limited Partnership of ROP, dated December 6, 1995, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2017, filed herewith.with the SEC on February 23, 2018.
10.2

Supplement to the Amended and Restated Agreement of Limited Partnership of ROP relating to the succession as a general partner of Wyoming Acquisition GP LLC, incorporated by reference to ROP's Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on March 31, 2008.
10.3

Registration Rights Agreement, dated as of March 26, 2007, by and among the Company, the Operating Partnership and the Initial Purchaser, incorporated by reference to the Company's Form 8-K, dated March 21, 2007, filed with the SEC on March 27, 2007.
10.4

Registration Rights Agreement, dated as of October 12, 2010, by and among the Operating Partnership, ROP, the Company and Citigroup Global Markets Inc., incorporated by reference to the Company's Form 8-K, dated October 12, 2010, filed with the SEC on October 14, 2010.
10.5

Form of Articles of Incorporation and Bylaws of SLS.L. Green Management Corp., incorporated by reference to the Company's Registration Statement on Form S-11 (No. 333-29329), declared effective by the SEC on August 14, 1997.
10.610.4

Form of Registration Rights Agreement between the Company and the persons named therein, incorporated by reference to the Company's Registration Statement on Form S-11 (No. 333-29329), declared effective by the SEC on August 14, 1997.
10.710.5

Amended and Restated Trust Agreement among the Operating Partnership, as depositor, JPMorgan Chase Bank, National Association, as property trustee, Chase Bank USA, National Association, as Delaware trustee, and the administrative trustees named therein, dated June 30, 2005, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, filed with the SEC on August 9, 2005.
10.810.6

SL Green Realty Corp. FourthFifth Amended and Restated 2005 Stock Option and Incentive Plan, incorporated by reference to Appendix A to the Company's definitive Proxy Statement on Schedule 14A filed on April 22, 201621, 2022
10.910.7

Amended and Restated Non-Employee Directors' Deferral Program, dated December 13, 2017, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2017, filed herewith.with the SEC on February 23, 2018.
10.1010.8

Amended and Restated Employment and Non-competition Agreement, dated December 24, 2010, between Stephen L. Green and the Company, incorporated by reference to the Company's Form 8-K, dated December 23, 2010, filed with the SEC on December 29, 2010.
10.1110.9

Deferred Compensation Agreement, dated December 18, 2009, between the Company and Stephen L. Green, incorporated by reference to the Company's Form 8-K, dated December 18, 2009, filed with the SEC on December 24, 2009.
10.1210.10

Deferred Compensation Agreement, dated December 24, 2010, between the Company and Stephen L. Green, incorporated by reference to the Company's Form 8-K, dated December 23, 2010, filed with the SEC on December 29, 2010.
10.1310.11

Amended and Restated Employment and Noncompetition Agreement, dated as of February 10, 2016, by and between SL Green Realty Corp. and Marc Holliday, incorporated by reference to the Company's Form 8-K, dated February 10, 2016, filed with the SEC on February 12, 2016.
10.14

Deferred Compensation Agreement (2013), dated as of September 12, 2013, by and between the Company and Marc Holliday, incorporated by reference to the Company’s Form 8-K, dated September 12, 2013, filed with the SEC on September 13, 2013.
10.1510.12

Deferred Compensation Agreement, dated as of February 10, 2016, by and between SL Green Realty Corp. and Marc Holliday, incorporated by reference to the Company's Form 8-K, dated February 10, 2016, filed with the SEC on February 12, 2016.

153

10.1610.13

Amended and Restated Employment and Noncompetition Agreement, dated as of November 8, 2013, between the Company and Andrew Mathias, incorporated by reference to the Company’s Form 8-K, dated November 8, 2013, filed with the SEC on November 8, 2013.
10.17

First Amendment to Amended and Restated Employment and Noncompetition Agreement, dated as of August 28, 2014, between the Company and Andrew Mathias, filed herewith.
10.18

Second Amendment to Amended and Restated Employment and Noncompetition Agreement, dated as of December 20, 2016, between the Company and Andrew Mathias, filed herewith.
10.19

Third Amendment to Amended and Restated Employment and Noncompetition Agreement, dated as of December 21, 2017, between the Company and Andrew Mathias, filed herewith.
10.20

Deferred Compensation Agreement (2014), dated as of November 8, 2013, between the Company and Andrew Mathias, incorporated by reference to the Company’s Form 8-K, dated November 8, 2013, filed with the SEC on November 8, 2013.
10.2110.14

Amended and Restated Employment and Noncompetition Agreement, dated as of February 10, 2016, by and between SL Green Realty Corp. and Andrew S. Levine, incorporated by reference to the Company's Form 8-K, dated February 10, 2016, filed with the SEC on February 12, 2016.
10.22

Amended and Restated Employment and Noncompetition Agreement, dated as of February 2, 2018,4, 2021, by and between the Company and Matthew DiLiberto, incorporated by reference to the Company’s Form 8-K, dated February 2, 2018,4, 2021, filed with the SEC on February 5, 2018.2021.
10.2310.15

Amended and Restated Employment and Noncompetition Agreement, dated as of December 31, 2021, by and between SL Green Realty Corp. and Marc Holliday, incorporated by reference to the Company's Form 8-K/A, dated December 31, 2021, filed with the SEC on January 6, 2022.
10.16
SecondLetter Agreement, dated as of April 30, 2018, by and between SL Green Realty Corp. and Marc Holliday, incorporated by reference to the Company's Form 8-K, dated April 27, 2018, filed with the SEC on May 3, 2018.
10.17
Amended and Restated Employment and Noncompetition Agreement, dated as of December 31, 2021, by and between SL Green Realty Corp. and Andrew Mathias, incorporated by reference to the Company's Form 8-K/A, dated December 31, 2021, filed with the SEC on January 6, 2022.
138
Table of Contents

10.18
Amended and Restated Employment and Noncompetition Agreement, dated as of December 31, 2021, by and between SL Green Realty Corp. and Andrew Levine, incorporated by reference to the Company's Form 8-K/A, dated December 31, 2021, filed with the SEC on January 6, 2022.
10.19
Chairman Emeritus Agreement, dated as of December 21, 2018, by and between SL Green Realty Corp. and Stephen L. Green, incorporated by reference to the Company's Form 8-K, dated December 21, 2018, filed with the SEC on December 28, 2018.
10.20
Third Amended and Restated Credit Agreement, dated as of November 21, 2017,December 6, 2021, by and among SL Green Realty Corp. and SL Green Operating Partnership, L.P., as Borrowers, each of the Lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent, Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., Deutsche Bank Securities Inc. and U.S.TD Bank, National Association,N.A., as joint lead arrangers and joint bookrunners for the Revolving Credit Facility and Term Loan A Facility, Merrill Lynch, Pierce, Fenner & Smith Incorporated andBofA Securities, Inc. BMO Capital Markets Corp., and The Bank of New York Mellon, as joint lead arrangers for the Revolving Credit Facility and Term Loan A Facility, JPMorgan Chase Bank, N.A., as syndication agent for the Revolving Credit Facility and Term Loan A Facility, Deutsche Bank Securities Inc., U.S.TD Bank National Association,N.A., Bank of America, N.A., and Bank of Montreal and The Bank of New York Mellon, as documentation agents for the Revolving Credit Facility and Term Loan A Facility, Wells Fargo Securities, LLC and U.S. Bank National Association, as joint lead arrangers and joint bookrunners for the Term Loan B Facility, U.S. Bank National Association, as syndication agent for the Term Loan B Facility, Wells Fargo Bank, National Association, as sustainability agent, and the other lenders and agents a party thereto, incorporated by reference to the Company's Form 8-K, dated November 27, 2017,December 6, 2021, filed with the SEC on November 27, 2017.December 8, 2021.
12.121.1

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends of SL Green Realty Corp., filed herewith.
12.2

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends of SL Green Operating Partnership, L.P., filed herewith.
21.1

Subsidiaries of SL Green Realty Corp., filed herewith.
21.2

Subsidiaries of SL Green Operating Partnership L.P., filed herewith.
23.1

Consent of Ernst & Young LLP for SL Green Realty Corp., filed herewith.
23.2

Consent of Ernst & Young LLP for SL Green Operating Partnership, L.P., filed herewith.
24.1

Power of Attorney for SL Green Realty Corp., included on the signature page of this Form 10-K.
24.2

Power of Attorney for SL Green Operating Partnership, L.P., included on the signature page of this Form 10-K.
31.1

Certification by the Chief Executive Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2

Certification by the Chief Financial Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.3

Certification by the Chief Executive Officer of the Company, the sole general partner of the Operating Partnership pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.4

Certification by the Chief Financial Officer of the Company, the sole general partner of the Operating Partnership pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.1

Certification by the Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.2

Certification by the Chief Financial Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.3

Certification by the Chief Executive Officer of the Company, the sole general partner of the Operating Partnership pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

154

32.4

Certification by the Chief Financial Officer of the Company, the sole general partner of the Operating Partnership pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
101.1101
The following financial statements from the SL Green Realty Corp. and SL Green Operating Partnership L.P. 's’s Annual Report on Form 10-K for the year ended December 31, 2017,2021, formatted in Inline XBRL: (i) Consolidated Balance Sheets, as of December 31, 2017 and 2016, (ii) Consolidated Statements of Operations, for the years ended December 31, 2017, 2016 and 2015, (iii) Consolidated Statements of Comprehensive Income, for the years ended December 31, 2017, 2016 and 2015, (iv) Consolidated StatementStatements of Equity, for the years ended December 31, 2017, 2016 and 2015 of the Company, (v) Consolidated StatementStatements of Capital, for the years ended December 31, 2017, 2016 and 2015 of the Operating Partnership (vi) Consolidated Statements of Cash Flows, for the years ended December 31, 2017, 2016 and 2015, and (vii) Notes to Consolidated Financial Statements, detail tagged and filed herewith.
104Cover Page Interactive Data File (formatted in Inline XBRL in Exhibit 101)





155
139

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SL GREEN REALTY CORP.
By:/s/ Matthew J. DiLiberto
Dated: February 23, 201816, 2023
Matthew J. DiLiberto
Chief Financial Officer

KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned officers and directors of SL Green Realty Corp. hereby severally constitute Marc Holliday and Matthew J. DiLiberto, and each of them singly, our true and lawful attorneys and with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, the Annual Report on Form 10-K filed herewith and any and all amendments to said Annual Report on Form 10-K, and generally to do all such things in our names and in our capacities as officers and directors to enable SL Green Realty Corp. to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys, or any of them, to said Annual Report on Form 10-K and any and all amendments thereto.





































156
140



Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:
SignaturesTitleDate
SignaturesTitleDate
/s/ Stephen L. GreenMarc HollidayChairman of the Board of DirectorsFebruary 23, 2018
Stephen L. Green
/s/ Marc Holliday
and Chief Executive Officer and Director
(Principal(Principal Executive Officer)
February 23, 201816, 2023
Marc Holliday
/s/ Andrew W. MathiasPresident and DirectorFebruary 23, 201816, 2023
Andrew W. Mathias
/s/ Matthew J. DiLiberto
Chief Financial Officer

(Principal Financial and Accounting Officer)
February 23, 201816, 2023
Matthew J. DiLiberto
/s/ Stephen L. GreenDirectorFebruary 16, 2023
Stephen L. Green
/s/ John H. Alschuler Jr.DirectorFebruary 23, 201816, 2023
John H. Alschuler, Jr.
/s/ Edwin T. Burton, IIIDirectorFebruary 23, 201816, 2023
Edwin T. Burton, III
/s/ John S. LevyDirectorFebruary 23, 201816, 2023
John S. Levy
/s/ Craig M. HatkoffDirectorFebruary 23, 201816, 2023
Craig M. Hatkoff
/s/ Betsy S. AtkinsDirectorFebruary 23, 201816, 2023
Betsy S. Atkins
/s/ Lauren B. DillardDirectorFebruary 23, 201816, 2023
Lauren B. Dillard
/s/ Carol BrownDirectorFebruary 16, 2023
Carol Brown

141
157

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SL GREEN OPERATING PARTNERSHIP, L.P.
By: SL Green Realty Corp.
/s/ Matthew J. DiLiberto
Dated: February 23, 201816, 2023By:
Matthew J. DiLiberto
Chief Financial Officer

KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned officers and directors of SL Green Realty Corp., the sole general partner of SL Green Operating Partnership, L.P., hereby severally constitute Marc Holliday and Matthew J. DiLiberto, and each of them singly, our true and lawful attorneys and with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, the Annual Report on Form 10-K filed herewith and any and all amendments to said Annual Report on Form 10-K, and generally to do all such things in our names and in our capacities as officers and directors to enable SL Green Operating Partnership, L.P. to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys, or any of them, to said Annual Report on Form 10-K and any and all amendments thereto.



















158
142



Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:
SignaturesTitleDate
SignaturesTitleDate
/s/ Stephen L. GreenMarc Holliday
Chairman of the Board of Directors and Chief Executive Officer of
SL Green, the sole general partner of
the Operating Partnership
February 23, 2018
Stephen L. Green
/s/ Marc HollidayChief Executive Officer and Director of
SL Green, the sole general partner of
the Operating Partnership (Principal Executive Officer)		February 23, 201816, 2023
Marc Holliday
/s/ Andrew W. MathiasPresident and Director of SL Green, the sole general partner of the Operating PartnershipFebruary 23, 201816, 2023
Andrew W. Mathias
/s/ Matthew J. DiLiberto
Chief Financial Officer of

SL Green, the sole general partner of

the Operating Partnership (Principal Financial and Accounting Officer)
February 23, 201816, 2023
Matthew J. DiLiberto
/s/ John H. Alschuler, Jr.Stephen L. Green
Director of SL Green, the sole general

partner of the Operating Partnership
February 23, 201816, 2023
Stephen L. Green
/s/ John H. Alschuler, Jr.
/s/ Edwin T. Burton, III
Director of SL Green, the sole general

partner of the Operating Partnership
February 23, 201816, 2023
John H. Alschuler, Jr.
/s/ Edwin T. Burton, III
/s/ John S. Levy
Director of SL Green, the sole general

partner of the Operating Partnership
February 23, 201816, 2023
Edwin T. Burton, III
/s/ John S. Levy
/s/ Craig M. Hatkoff
Director of SL Green, the sole general

partner of the Operating Partnership
February 23, 201816, 2023
John S. Levy
/s/ Craig M. Hatkoff
/s/ Betsy S. AtkinsDirector of SL Green, the sole general

partner of the Operating Partnership		February 23, 201816, 2023
Craig M. Hatkoff
/s/ Betsy S. Atkins
/s/ Lauren B. DillardDirector of SL Green, the sole general

partner of the Operating Partnership		February 23, 201816, 2023
Betsy S. Atkins
/s/ Lauren B. DillardDirector of SL Green, the sole general
partner of the Operating Partnership		February 16, 2023
Lauren B. Dillard
/s/ Carol BrownDirector of SL Green, the sole general
partner of the Operating Partnership		February 16, 2023
Carol Brown

159143