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

FORM 10-Q
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2023March 31, 2024
OR
    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.Maryland13-3956775
SL Green Operating Partnership, L.P.Delaware13-3960938
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
One Vanderbilt Avenue, New York, NY 10017
(Address of principal executive offices—Zip Code)

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


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 o            SL Green Operating Partnership, L.P.    Yes x    No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). 
SL Green Realty Corp.     Yes x    No o            SL Green Operating Partnership, L.P.    Yes x    No 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 filer
Non-accelerated filer
Smaller Reporting Companyreporting companyEmerging Growth Companygrowth company
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.
SL Green Operating Partnership, L.P.
Large accelerated filerAccelerated filer
Non-accelerated filerx
Smaller Reporting Companyreporting companyEmerging Growth Companygrowth company
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.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 
SL Green Realty Corp.    Yes     No x            SL Green Operating Partnership, L.P.    Yes     No x
Securities registered pursuant to Section 12(b) of the Act:
RegistrantTrading SymbolSymbol(s)Title 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.PRI6.500% Series I Cumulative Redeemable Preferred Stock, $0.01 par valueNew York Stock Exchange
As of AugustMay 2, 2023, 64,387,9722024, 64,805,769 shares of SL Green Realty Corp.'s common stock, par value $0.01 per share, were outstanding. As of AugustMay 2, 2023, 306,9872024, 306,110 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.




EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended June 30, 2023March 31, 2024 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, 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 June 30, 2023,March 31, 2024, the Company owns 93.82%93.62% of the outstanding general and limited partnership interest in the Operating Partnership and owns 9,200,000 Series I Preferred Units of the Operating Partnership. As of June 30, 2023,March 31, 2024, noncontrolling investors held, in aggregate, a 6.18%6.38% 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 quarterly reports on Form 10-Q 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; and
Note 13, Partners' Capital of the Operating Partnership.
This report also includes separate Part I, Item 4. 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, or the Exchange Act.



SL GREEN REALTY CORP. AND SL GREEN OPERATING PARTNERSHIP, L.P.
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION 
Item 1.FINANCIAL STATEMENTS
FINANCIAL STATEMENTS OF SL GREEN REALTY CORP.
Consolidated Balance Sheets as of June 30, 2023March 31, 2024 (unaudited) and December 31, 20222023
Consolidated Statements of Operations for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)
Consolidated Statements of Comprehensive Income (Loss) Income for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)
Consolidated Statements of Equity for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)
Consolidated Statements of Cash Flows for the sixthree months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)
FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P.
Consolidated Balance Sheets as of June 30, 2023March 31, 2024 (unaudited) and December 31, 20222023
Consolidated Statements of Operations for the three and six months ended June 30,March 31, 2024 and 2023 (unaudited)
Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 20222023 (unaudited)
Consolidated Statements of Comprehensive (Loss) IncomeCapital for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)
Consolidated Statements of CapitalCash Flows for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)
Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (unaudited)
Notes to Consolidated Financial Statements (unaudited)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures about Market Risk
Controls and Procedures (SL Green Realty Corp. and SL Green Operating Partnership, L.P.)
PART II.OTHER INFORMATION
Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Other Information
Exhibits
Signatures


Table of Contents


SL GREEN REALTY CORP. AND SL GREEN OPERATING PARTNERSHIP, L.P.

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

4

Table of Contents

SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands)
June 30, 2023December 31, 2022
(unaudited)
March 31, 2024March 31, 2024December 31, 2023
(unaudited)
Assets
Assets
AssetsAssets
Commercial real estate properties, at cost:Commercial real estate properties, at cost:
Commercial real estate properties, at cost:
Commercial real estate properties, at cost:
Land and land interests
Land and land interests
Land and land interests
Land and land interests
$1,071,469 $1,576,927 
Building and improvements
Building and improvements
3,494,853 4,903,776 
Building leasehold and improvements
Building leasehold and improvements
1,397,573 1,691,831 
Right of use asset - operating leasesRight of use asset - operating leases953,236 1,026,265 
6,917,131 9,198,799 
Right of use asset - operating leases
Right of use asset - operating leases
7,192,652
Less: accumulated depreciation
Less: accumulated depreciation
(1,950,028)(2,039,554)
4,967,103 7,159,245 
5,114,449
Assets held for sale
Cash and cash equivalentsCash and cash equivalents191,979 203,273 
Restricted cashRestricted cash119,080 180,781 
Investments in marketable securitiesInvestments in marketable securities9,797 11,240 
Tenant and other receivablesTenant and other receivables36,657 34,497 
Related party receivablesRelated party receivables28,955 27,352 
Deferred rents receivableDeferred rents receivable260,625 257,887 
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,645 and $1,811 and allowances of $13,520 and $6,630 in 2023 and 2022, respectively636,476 623,280 
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,623 and $1,630 and allowances of $13,520 and $13,520 in 2024 and 2023, respectively
Investments in unconsolidated joint venturesInvestments in unconsolidated joint ventures3,228,663 3,190,137 
Deferred costs, netDeferred costs, net112,347 121,157 
Other assetsOther assets449,606 546,945 
Total assets (1)
Total assets (1)
$10,041,288 $12,355,794 
LiabilitiesLiabilities
Mortgages and other loans payable, net
Mortgages and other loans payable, net
Mortgages and other loans payable, netMortgages and other loans payable, net$1,513,406 $3,227,563 
Revolving credit facility, netRevolving credit facility, net423,985 443,217 
Unsecured term loans, netUnsecured term loans, net1,667,784 1,641,552 
Unsecured notes, netUnsecured notes, net99,744 99,692 
Accrued interest payableAccrued interest payable15,711 14,227 
Other liabilitiesOther liabilities330,799 236,211 
Accounts payable and accrued expensesAccounts payable and accrued expenses116,700 154,867 
Deferred revenueDeferred revenue125,589 272,248 
Lease liability - financing leasesLease liability - financing leases104,870 104,218 
Lease liability - operating leasesLease liability - operating leases890,305 895,100 
Dividend and distributions payableDividend and distributions payable21,750 21,569 
Security depositsSecurity deposits49,877 50,472 
Liabilities related to assets held for sale
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securitiesJunior subordinated deferrable interest debentures held by trusts that issued trust preferred securities100,000 100,000 
Total liabilities (1)
Total liabilities (1)
5,460,520 7,260,936 
5

Table of Contents

SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands)
June 30, 2023December 31, 2022
(unaudited)
March 31, 2024March 31, 2024December 31, 2023
(unaudited)
Commitments and contingencies
Commitments and contingencies
Commitments and contingenciesCommitments and contingencies
Noncontrolling interests in Operating PartnershipNoncontrolling interests in Operating Partnership254,434 269,993 
Preferred unitsPreferred units166,501 177,943 
EquityEquity
Equity
Equity
SL Green stockholders' equity:SL Green stockholders' equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2023 and December 31, 2022221,932 221,932 
Common stock, $0.01 par value, 160,000 shares authorized and 65,447 and 65,440 issued and outstanding at June 30, 2023 and December 31, 2022, respectively (including 1,060 and 1,060 shares held in treasury at June 30, 2023 and December 31, 2022, respectively)656 656 
SL Green stockholders' equity:
SL Green stockholders' equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2024 and December 31, 2023
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2024 and December 31, 2023
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2024 and December 31, 2023
Common stock, $0.01 par value, 160,000 shares authorized and 65,866 and 65,786 issued and outstanding at March 31, 2024 and December 31, 2023, respectively (including 1,060 and 1,060 shares held in treasury at March 31, 2024 and December 31, 2023, respectively)
Additional paid-in-capitalAdditional paid-in-capital3,805,704 3,790,358 
Treasury stock at costTreasury stock at cost(128,655)(128,655)
Accumulated other comprehensive incomeAccumulated other comprehensive income57,769 49,604 
Retained earnings135,518 651,138 
Retained deficit
Total SL Green stockholders' equityTotal SL Green stockholders' equity4,092,924 4,585,033 
Noncontrolling interests in other partnershipsNoncontrolling interests in other partnerships66,909 61,889 
Total equityTotal equity4,159,833 4,646,922 
Total liabilities and equityTotal liabilities and equity$10,041,288 $12,355,794 
(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 $41.2 million of land, $39.4 million and $41.0 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $4.9 million and $4.4 million of accumulated depreciation, $666.2 million and $599.2 million of other assets included in other line items, $49.9 million and $49.8 million of real estate debt, net, $0.2 million and $0.2 million of accrued interest payable, $— million and $— million of lease liabilities, and $177.1 million and $146.4 million of other liabilities included in other line items as of June 30, 2023 and December 31, 2022, respectively.
(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: $120.4 million and $41.2 million of land, $81.3 million and $40.5 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $5.7 million and $5.4 million of accumulated depreciation, $785.1 million and $676.9 million of other assets included in other line items, $254.3 million and $50.0 million of real estate debt, net, $2.7 million and $0.9 million of accrued interest payable, $— million and $— million of lease liabilities, and $332.5 million and $306.5 million of other liabilities included in other line items as of March 31, 2024 and December 31, 2023, respectively.
(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: $120.4 million and $41.2 million of land, $81.3 million and $40.5 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $5.7 million and $5.4 million of accumulated depreciation, $785.1 million and $676.9 million of other assets included in other line items, $254.3 million and $50.0 million of real estate debt, net, $2.7 million and $0.9 million of accrued interest payable, $— million and $— million of lease liabilities, and $332.5 million and $306.5 million of other liabilities included in other line items as of March 31, 2024 and December 31, 2023, respectively.
(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: $120.4 million and $41.2 million of land, $81.3 million and $40.5 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $5.7 million and $5.4 million of accumulated depreciation, $785.1 million and $676.9 million of other assets included in other line items, $254.3 million and $50.0 million of real estate debt, net, $2.7 million and $0.9 million of accrued interest payable, $— million and $— million of lease liabilities, and $332.5 million and $306.5 million of other liabilities included in other line items as of March 31, 2024 and December 31, 2023, respectively.


The accompanying notes are an integral part of these consolidated financial statements.
6

Table of Contents

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

Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
2023202220232022 20242023
RevenuesRevenues
Rental revenue, netRental revenue, net$185,945 $155,232 $380,987 $311,263 
Rental revenue, net
Rental revenue, net
SUMMIT Operator revenue
SUMMIT Operator revenue
SUMMIT Operator revenue
Investment incomeInvestment income9,103 20,407 18,160 40,295 
Other incomeOther income26,022 25,806 45,498 37,851 
Total revenuesTotal revenues221,070 201,445 444,645 389,409 
ExpensesExpenses
Operating expenses, including related party expenses of $0 and $1 in 2023, and $3,172 and $5,695 in 202246,957 39,557 99,021 82,140 
Operating expenses, including related party expenses of $0 in 2024, and $1 in 2023
Operating expenses, including related party expenses of $0 in 2024, and $1 in 2023
Operating expenses, including related party expenses of $0 in 2024, and $1 in 2023
Real estate taxesReal estate taxes39,885 30,819 81,268 61,566 
Operating lease rentOperating lease rent6,655 6,477 12,956 13,041 
SUMMIT Operator expenses
Interest expense, net of interest incomeInterest expense, net of interest income40,621 14,960 82,274 30,030 
Amortization of deferred financing costsAmortization of deferred financing costs2,154 1,917 4,175 3,865 
SUMMIT Operator tax (benefit) expense
Depreciation and amortizationDepreciation and amortization69,084 46,914 147,632 93,897 
Loan loss and other investment reserves, net of recoveriesLoan loss and other investment reserves, net of recoveries — 6,890 — 
Transaction related costsTransaction related costs33 917 29 
Marketing, general and administrativeMarketing, general and administrative22,974 23,522 46,259 48,298 
Total expensesTotal expenses228,363 164,167 481,392 332,866 
Equity in net loss from unconsolidated joint ventures(21,932)(4,550)(29,344)(9,265)
Equity in net loss on sale of interest in unconsolidated joint venture/real estate (131)(79)(131)
Equity in net income (loss) from unconsolidated joint ventures
Equity in net income (loss) from unconsolidated joint ventures
Equity in net income (loss) from unconsolidated joint ventures
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate
Purchase price and other fair value adjustmentsPurchase price and other fair value adjustments(17,409)(6,168)(17,170)(6,231)
Loss on sale of real estate, netLoss on sale of real estate, net(26,678)(64,378)(28,329)(65,380)
Depreciable real estate reserves and impairmentDepreciable real estate reserves and impairment(305,916)— (305,916)— 
Income from continuing operations
Income from continuing operations
Income from continuing operations
Net income (loss)
Net loss(379,228)(37,949)(417,585)(24,464)
Net loss (income) attributable to noncontrolling interests:
Net income (loss)
Net income (loss)
Net loss attributable to noncontrolling interests:
Noncontrolling interests in the Operating Partnership
Noncontrolling interests in the Operating Partnership
Noncontrolling interests in the Operating PartnershipNoncontrolling interests in the Operating Partnership23,582 2,813 25,919 2,321 
Noncontrolling interests in other partnershipsNoncontrolling interests in other partnerships1,040 (3,404)2,665 (3,261)
Preferred units distributionsPreferred units distributions(1,851)(1,599)(3,449)(3,246)
Net loss attributable to SL Green(356,457)(40,139)(392,450)(28,650)
Net income (loss) attributable to SL Green
Perpetual preferred stock dividendsPerpetual preferred stock dividends(3,737)(3,737)(7,475)(7,475)
Net loss attributable to SL Green common stockholders$(360,194)$(43,876)$(399,925)$(36,125)
Net income (loss) attributable to SL Green common stockholders
Basic loss per share$(5.63)$(0.70)$(6.25)$(0.58)
Basic earnings (loss) per share
Diluted loss per share$(5.63)$(0.70)$(6.25)$(0.58)
Basic earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share
Diluted earnings (loss) per share
Diluted earnings (loss) per share
Basic weighted average common shares outstandingBasic weighted average common shares outstanding64,102 63,798 64,091 63,987 
Basic weighted average common shares outstanding
Basic weighted average common shares outstanding
Diluted weighted average common shares and common share equivalents outstandingDiluted weighted average common shares and common share equivalents outstanding68,341 69,020 68,263 69,422 
    
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 Comprehensive Income (Loss) Income
(unaudited, in thousands)
Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Net loss$(379,228)$(37,949)$(417,585)$(24,464)
Other comprehensive income:
Increase in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments41,322 17,323 10,263 60,890 
Decrease in unrealized value of marketable securities(476)(454)(1,444)(2,247)
Other comprehensive income40,846 16,869 8,819 58,643 
Comprehensive (loss) income(338,382)(21,080)(408,766)34,179 
Net loss (income) attributable to noncontrolling interests and preferred units distributions22,771 (2,190)25,135 (4,186)
Other comprehensive income attributable to noncontrolling interests(2,505)(1,013)(654)(3,290)
Comprehensive (loss) income attributable to SL Green$(318,116)$(24,283)$(384,285)$26,703 
Three Months Ended March 31,
 20242023
Net income (loss)$18,389 $(38,357)
Other comprehensive income (loss):
Increase (decrease) in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments23,214 (31,059)
Increase (decrease) in unrealized value of marketable securities1,082 (968)
Other comprehensive income (loss)24,296 (32,027)
Comprehensive income (loss)42,685 (70,384)
Net (income) loss attributable to noncontrolling interests and preferred units distributions(1,510)2,364 
Other comprehensive (income) loss attributable to noncontrolling interests(1,622)1,851 
Comprehensive income (loss) attributable to SL Green$39,553 $(66,169)


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

8

Table of Contents

SL Green Realty Corp.
Consolidated Statements of Equity
(unaudited, 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
Retained
Earnings
Noncontrolling
Interests
Total
Balance at March 31, 2023$221,932 64,373 $656 $3,798,101 $(128,655)$19,428 $549,024 $68,688 $4,529,174 
Net loss(356,457)(1,040)(357,497)
Other comprehensive income38,341 38,341 
Preferred dividends(3,737)(3,737)
DRSPP proceeds158 158 
Reallocation of noncontrolling interest in the Operating Partnership(1,051)(1,051)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings7,445 7,445 
Contributions to consolidated joint venture interests(112)(112)
Cash distributions to noncontrolling interests(627)(627)
Cash distributions declared ($0.812 per common share, none of which represented a return of capital for federal income tax purposes)(52,261)(52,261)
Balance at June 30, 2023$221,932 64,387 $656 $3,805,704 $(128,655)$57,769 $135,518 $66,909 $4,159,833 
SL Green Realty Corp. Stockholders
Common Stock
Series I
Preferred
Stock
SharesPar
Value
Additional
Paid-
In-Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Earnings
Noncontrolling
Interests
Total
Balance at March 31, 2022$221,932 64,124 $653 $3,792,689 $(128,655)$(7,261)$846,646 $13,111 $4,739,115 
Net loss(40,139)3,404 (36,735)
Other comprehensive income15,856 15,856 
Preferred dividends(3,737)(3,737)
DRSPP proceeds110 110 
Reallocation of noncontrolling interest in the Operating Partnership37,938 37,938 
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings176 8,473 8,475 
Contributions to consolidated joint venture interests51,348 51,348 
Cash distributions to noncontrolling interests(2,897)(2,897)
Cash distributions declared ($0.932 per common share, none of which represented a return of capital for federal income tax purposes)(60,709)(60,709)
Balance at June 30, 2022$221,932 64,302 $655 $3,801,272 $(128,655)$8,595 $779,999 $64,966 $4,748,764 
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Table of Contents

SL Green Realty Corp.
Consolidated Statements of Equity
(unaudited, in thousands, except per share data)
SL Green Realty Corp. StockholdersSL Green Realty Corp. Stockholders 
Common Stock
Series I
Preferred
Stock
Series I
Preferred
Stock
Series I
Preferred
Stock
SharesPar
Value
Additional
Paid-
In-Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Deficit
Noncontrolling
Interests
Total
Balance at December 31, 2023
Net income
Net income
Net income
Acquisition of subsidiary interest
Other comprehensive income
Perpetual preferred stock dividends
DRSPP proceeds
Reallocation of noncontrolling interest in the Operating Partnership
Reallocation of noncontrolling interest in the Operating Partnership
Reallocation of noncontrolling interest in the Operating Partnership
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
SL Green Realty Corp. Stockholders 
Common Stock
Series I
Preferred
Stock
SharesPar
Value
Additional
Paid-
In-Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Earnings
Noncontrolling
Interests
Total
Balance at December 31, 2022$221,932 64,380 $656 $3,790,358 $(128,655)$49,604 $651,138 $61,889 $4,646,922 
Consolidation of joint venture interest
Consolidation of joint venture interest
Consolidation of joint venture interest
Cash distributions to noncontrolling interests
Cash distributions declared ($0.750 per common share, none of which represented a return of capital for federal income tax purposes)
Cash distributions declared ($0.750 per common share, none of which represented a return of capital for federal income tax purposes)
Cash distributions declared ($0.750 per common share, none of which represented a return of capital for federal income tax purposes)
Balance at March 31, 2024
SL Green Realty Corp. Stockholders
SL Green Realty Corp. Stockholders
SL Green Realty Corp. Stockholders
Common Stock
Common Stock
Common Stock
Series I
Preferred
Stock
Series I
Preferred
Stock
Series I
Preferred
Stock
SharesPar
Value
Additional
Paid-
In-Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Earnings
Noncontrolling
Interests
Total
Balance at December 31, 2022
Net lossNet loss(392,450)(2,665)(395,115)
Other comprehensive income8,165 8,165 
Preferred dividends(7,475)(7,475)
Other comprehensive loss
Other comprehensive loss
Other comprehensive loss
Perpetual preferred stock dividends
DRSPP proceedsDRSPP proceeds12 342 342 
Reallocation of noncontrolling interest in the Operating PartnershipReallocation of noncontrolling interest in the Operating Partnership(11,198)(11,198)
Reallocation of noncontrolling interest in the Operating Partnership
Reallocation of noncontrolling interest in the Operating Partnership
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
Deferred compensation plan and stock awards, net of forfeitures and tax withholdingsDeferred compensation plan and stock awards, net of forfeitures and tax withholdings(5)15,004 15,004 
Contributions to consolidated joint venture interestsContributions to consolidated joint venture interests8,448 8,448 
Cash distributions to noncontrolling interests(763)(763)
Cash distributions declared ($1.625 per common share, none of which represented a return of capital for federal income tax purposes)(104,497)(104,497)
Balance at June 30, 2023$221,932 64,387 $656 $3,805,704 $(128,655)$57,769 $135,518 $66,909 $4,159,833 
SL Green Realty Corp. Stockholders
Common Stock
Series I
Preferred
Stock
SharesPar
Value
Additional
Paid-
In-Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Earnings
Noncontrolling
Interests
Total
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(28,650)3,261 (25,389)
Other comprehensive income55,353 55,353 
Preferred dividends(7,475)(7,475)
DRSPP proceeds199 199 
Reallocation of noncontrolling interest in the Operating Partnership(5,085)(5,085)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings204 13,528 13,531 
Repurchases of common stock(1,971)(20)(114,979)(36,198)(151,197)
Contributions to consolidated joint venture interestsContributions to consolidated joint venture interests51,348 51,348 
Contributions to consolidated joint venture interests
Cash distributions to noncontrolling interestsCash distributions to noncontrolling interests(3,020)(3,020)
Issuance of special dividend paid primarily in stock1,961 163,115 (2,495)160,620 
Cash distributions declared ($1.865 per common share, none of which represented a return of capital for federal income tax purposes)(118,374)(118,374)
Balance at June 30, 2022$221,932 64,302 $655 $3,801,272 $(128,655)$8,595 $779,999 $64,966 $4,748,764 
Cash distributions to noncontrolling interests
Cash distributions to noncontrolling interests
Cash distributions declared ($0.812 per common share, none of which represented a return of capital for federal income tax purposes)
Cash distributions declared ($0.812 per common share, none of which represented a return of capital for federal income tax purposes)
Cash distributions declared ($0.812 per common share, none of which represented a return of capital for federal income tax purposes)
Balance at March 31, 2023

The accompanying notes are an integral part of these consolidated financial statements.
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SL Green Realty Corp.
Consolidated Statements of Cash Flows
(unaudited, in thousands, except per share data)
Six Months Ended June 30,
20232022
Three Months Ended March 31,Three Months Ended March 31,
202420242023
Operating ActivitiesOperating Activities
Net loss$(417,585)$(24,464)
Adjustments to reconcile net loss to net cash provided by operating activities:
Net income (loss)
Net income (loss)
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortizationDepreciation and amortization151,807 97,762 
Equity in net loss from unconsolidated joint ventures29,344 9,265 
Depreciation and amortization
Depreciation and amortization
Equity in net (income) loss from unconsolidated joint ventures
Distributions of cumulative earnings from unconsolidated joint venturesDistributions of cumulative earnings from unconsolidated joint ventures409 343 
Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate79 131 
Equity in net (gain) loss on sale of interest in unconsolidated joint venture interest/real estate
Purchase price and other fair value adjustmentsPurchase price and other fair value adjustments17,170 6,231 
Depreciable real estate reserves and impairmentDepreciable real estate reserves and impairment305,916 — 
Loss on sale of real estate, netLoss on sale of real estate, net28,329 65,380 
Loan loss reserves and other investment reserves, net of recoveriesLoan loss reserves and other investment reserves, net of recoveries6,890 — 
Deferred rents receivableDeferred rents receivable(14,357)1,075 
Deferred rents receivable
Deferred rents receivable
Non-cash lease expenseNon-cash lease expense10,550 12,080 
Other non-cash adjustmentsOther non-cash adjustments(2,523)(10,406)
Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Tenant and other receivables
Tenant and other receivables
Tenant and other receivablesTenant and other receivables(3,805)14,767 
Related party receivablesRelated party receivables(893)1,458 
Deferred lease costsDeferred lease costs(5,891)(6,922)
Other assetsOther assets1,235 (2,651)
Accounts payable, accrued expenses, other liabilities and security depositsAccounts payable, accrued expenses, other liabilities and security deposits2,697 19,767 
Deferred revenueDeferred revenue(585)(2,672)
Lease liability - operating leasesLease liability - operating leases(4,795)1,291 
Net cash provided by operating activities103,992 182,435 
Net cash (used in) provided by operating activities
Investing ActivitiesInvesting Activities
Additions to land, buildings and improvementsAdditions to land, buildings and improvements(134,190)(126,957)
Additions to land, buildings and improvements
Additions to land, buildings and improvements
Acquisition deposits and deferred purchase price
Investments in unconsolidated joint venturesInvestments in unconsolidated joint ventures(46,977)(135,365)
Distributions in excess of cumulative earnings from unconsolidated joint venturesDistributions in excess of cumulative earnings from unconsolidated joint ventures72,823 64,976 
Net proceeds from disposition of real estate/joint venture interestNet proceeds from disposition of real estate/joint venture interest97,563 353,853 
Other investmentsOther investments(17,779)1,507 
Other investments
Other investments
Origination of debt and preferred equity investmentsOrigination of debt and preferred equity investments(10,308)(29,095)
Repayments or redemption of debt and preferred equity investments 6,405 
Net cash (used in) provided by investing activities(38,868)135,324 
Net cash used in investing activities
Net cash used in investing activities
Net cash used in investing activities
1110

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SL Green Realty Corp.
Consolidated Statements of Cash Flows
(unaudited, in thousands, except per share data)
Three Months Ended March 31,Three Months Ended March 31,
202420242023
Financing Activities
Proceeds from mortgages and other loans payable
Proceeds from mortgages and other loans payable
Proceeds from mortgages and other loans payable
Repayments of mortgages and other loans payable
Proceeds from revolving credit facility, term loans and unsecured notes
Repayments of revolving credit facility, term loans and unsecured notes
Proceeds from stock options exercised and DRSPP issuance
Six Months Ended June 30,
20232022
Financing Activities
Proceeds from mortgages and other loans payable 184,196 
Repayments of mortgages and other loans payable(2,899)(91,770)
Proceeds from revolving credit facility and unsecured notes223,000 332,000 
Repayments of revolving credit facility and unsecured notes(218,000)(592,000)
Proceeds from stock options exercised and DRSPP issuance342 199 
Redemption of OP units
Repurchase of common stock (151,197)
Redemption of preferred stock(11,700)(17,968)
Redemption of OP units
Redemption of OP unitsRedemption of OP units(5,250)(18,334)
Distributions to noncontrolling interests in other partnershipsDistributions to noncontrolling interests in other partnerships(763)(3,020)
Contributions from noncontrolling interests in other partnershipsContributions from noncontrolling interests in other partnerships314 51,348 
Distributions to noncontrolling interests in the Operating PartnershipDistributions to noncontrolling interests in the Operating Partnership(7,550)(8,572)
Distributions to noncontrolling interests in the Operating Partnership
Distributions to noncontrolling interests in the Operating Partnership
Dividends paid on common and preferred stockDividends paid on common and preferred stock(114,983)(131,556)
Other obligations related to secured borrowing 77,874 
Tax withholdings related to restricted share awards (3,891)
Deferred loan costsDeferred loan costs(630)(4,991)
Net cash used in financing activities(138,119)(377,682)
Deferred loan costs
Deferred loan costs
Net cash provided by (used in) financing activities
Net cash provided by (used in) financing activities
Net cash provided by (used in) financing activities
Net decrease in cash, cash equivalents, and restricted cashNet decrease in cash, cash equivalents, and restricted cash(72,995)(59,923)
Cash, cash equivalents, and restricted cash at beginning of yearCash, cash equivalents, and restricted cash at beginning of year384,054 336,984 
Cash, cash equivalents, and restricted cash at end of periodCash, cash equivalents, and restricted cash at end of period$311,059 $277,061 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issuance of special dividend paid primarily in stock$ $160,620 
Tenant improvements and capital expenditures payable 10,295 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Fair value adjustment to noncontrolling interest in the Operating PartnershipFair value adjustment to noncontrolling interest in the Operating Partnership11,198 5,085 
Deconsolidation of a subsidiary101,351 — 
Fair value adjustment to noncontrolling interest in the Operating Partnership
Fair value adjustment to noncontrolling interest in the Operating Partnership
Consolidation of a subsidiary
Consolidation of a subsidiary
Consolidation of a subsidiary
Consolidation of mortgage loan payable
Acquisition of subsidiary interest from noncontrolling interest
Contribution to consolidated joint venture interestContribution to consolidated joint venture interest8,134 — 
Removal of fully depreciated commercial real estate propertiesRemoval of fully depreciated commercial real estate properties7,747 3,597 
Removal of fully depreciated commercial real estate properties
Removal of fully depreciated commercial real estate properties
Share repurchase or redemption payable
Share repurchase or redemption payable
Share repurchase or redemption payable
    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.
Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
20232022 20242023
Cash and cash equivalentsCash and cash equivalents$191,979 $189,360 
Restricted cashRestricted cash119,080 87,701 
Total cash, cash equivalents, and restricted cashTotal cash, cash equivalents, and restricted cash$311,059 $277,061 
The accompanying notes are an integral part of these consolidated financial statements.
1211

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SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands)

June 30, 2023December 31, 2022
(unaudited)
March 31, 2024March 31, 2024December 31, 2023
(unaudited)
Assets
Assets
AssetsAssets    
Commercial real estate properties, at cost:Commercial real estate properties, at cost:  Commercial real estate properties, at cost:  
Land and land interests
Land and land interests
$1,071,469 $1,576,927 
Building and improvements
Building and improvements
3,494,853 4,903,776 
Building leasehold and improvements
Building leasehold and improvements
1,397,573 1,691,831 
Right of use asset - operating leasesRight of use asset - operating leases953,236 1,026,265 
6,917,131 9,198,799 
Right of use asset - operating leases
Right of use asset - operating leases
7,192,652
Less: accumulated depreciation
Less: accumulated depreciation
(1,950,028)(2,039,554)
4,967,103 7,159,245 
5,114,449
Assets held for sale
Cash and cash equivalentsCash and cash equivalents191,979 203,273 
Restricted cashRestricted cash119,080 180,781 
Investments in marketable securitiesInvestments in marketable securities9,797 11,240 
Tenant and other receivablesTenant and other receivables36,657 34,497 
Related party receivablesRelated party receivables28,955 27,352 
Deferred rents receivableDeferred rents receivable260,625 257,887 
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,645 and $1,811 and allowances of $13,520 and $6,630 in 2023 and 2022, respectively636,476 623,280 
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,623 and $1,630 and allowances of $13,520 and $13,520 in 2024 and 2023, respectively
Investments in unconsolidated joint venturesInvestments in unconsolidated joint ventures3,228,663 3,190,137 
Deferred costs, netDeferred costs, net112,347 121,157 
Other assetsOther assets449,606 546,945 
Total assets (1)
Total assets (1)
$10,041,288 $12,355,794 
LiabilitiesLiabilities Liabilities 
Mortgages and other loans payable, netMortgages and other loans payable, net$1,513,406 $3,227,563 
Revolving credit facility, netRevolving credit facility, net423,985 443,217 
Unsecured term loans, netUnsecured term loans, net1,667,784 1,641,552 
Unsecured notes, netUnsecured notes, net99,744 99,692 
Accrued interest payableAccrued interest payable15,711 14,227 
Other liabilitiesOther liabilities330,799 236,211 
Accounts payable and accrued expensesAccounts payable and accrued expenses116,700 154,867 
Deferred revenueDeferred revenue125,589 272,248 
Lease liability - financing leasesLease liability - financing leases104,870 104,218 
Lease liability - operating leasesLease liability - operating leases890,305 895,100 
Dividend and distributions payableDividend and distributions payable21,750 21,569 
Security depositsSecurity deposits49,877 50,472 
Liabilities related to assets held for sale
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securitiesJunior subordinated deferrable interest debentures held by trusts that issued trust preferred securities100,000 100,000 
Total liabilities (1)
Total liabilities (1)
5,460,520 7,260,936 
Commitments and contingenciesCommitments and contingenciesCommitments and contingencies
Limited partner interests in SLGOP (4,238 and 3,670 limited partner common units outstanding at June 30, 2023 and December 31, 2022, respectively)254,434 269,993 
Limited partner interests in SLGOP (4,417 and 3,949 limited partner common units outstanding at March 31, 2024 and December 31, 2023, respectively)
Preferred unitsPreferred units166,501 177,943 
1312

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SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands)

June 30, 2023December 31, 2022
(unaudited)
March 31, 2024March 31, 2024December 31, 2023
(unaudited)
Capital
Capital
CapitalCapital    
SLGOP partners' capital:SLGOP partners' capital:  SLGOP partners' capital:  
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2023 and December 31, 2022221,932 221,932 
SL Green partners' capital (686 and 680 general partner common units and 63,701 and 63,700 limited partner common units outstanding at June 30, 2023 and December 31, 2022, respectively)3,813,223 4,313,497 
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2024 and December 31, 2023
SL Green partners' capital (692 and 687 general partner common units and 64,114 and 64,039 limited partner common units outstanding at March 31, 2024 and December 31, 2023, respectively)
Accumulated other comprehensive incomeAccumulated other comprehensive income57,769 49,604 
Total SLGOP partners' capitalTotal SLGOP partners' capital4,092,924 4,585,033 
Noncontrolling interests in other partnershipsNoncontrolling interests in other partnerships66,909 61,889 
Total capitalTotal capital4,159,833 4,646,922 
Total liabilities and capitalTotal liabilities and capital$10,041,288 $12,355,794 
(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 $41.2 million of land, $39.4 million and $41.0 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $4.9 million and $4.4 million of accumulated depreciation, $666.2 million and $599.2 million of other assets included in other line items, $49.9 million and $49.8 million of real estate debt, net, $0.2 million and $0.2 million of accrued interest payable, $— million and $— million of lease liabilities, and $177.1 million and $146.4 million of other liabilities included in other line items as of June 30, 2023 and December 31, 2022, respectively.
(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: $120.4 million and $41.2 million of land, $81.3 million and $40.5 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $5.7 million and $5.4 million of accumulated depreciation, $785.1 million and $676.9 million of other assets included in other line items, $254.3 million and $50.0 million of real estate debt, net, $2.7 million and $0.9 million of accrued interest payable, $— million and $— million of lease liabilities, and $332.5 million and $306.5 million of other liabilities included in other line items as of March 31, 2024 and December 31, 2023, respectively.
(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: $120.4 million and $41.2 million of land, $81.3 million and $40.5 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $5.7 million and $5.4 million of accumulated depreciation, $785.1 million and $676.9 million of other assets included in other line items, $254.3 million and $50.0 million of real estate debt, net, $2.7 million and $0.9 million of accrued interest payable, $— million and $— million of lease liabilities, and $332.5 million and $306.5 million of other liabilities included in other line items as of March 31, 2024 and December 31, 2023, respectively.
(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: $120.4 million and $41.2 million of land, $81.3 million and $40.5 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $5.7 million and $5.4 million of accumulated depreciation, $785.1 million and $676.9 million of other assets included in other line items, $254.3 million and $50.0 million of real estate debt, net, $2.7 million and $0.9 million of accrued interest payable, $— million and $— million of lease liabilities, and $332.5 million and $306.5 million of other liabilities included in other line items as of March 31, 2024 and December 31, 2023, respectively.


The accompanying notes are an integral part of these consolidated financial statements.
13

Table of Contents

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

Three Months Ended March 31,
 20242023
Revenues
Rental revenue, net$141,504 $195,042 
SUMMIT Operator revenue25,604 19,771 
Investment income7,403 9,057 
Other income13,371 21,894 
Total revenues187,882 245,764 
Expenses
Operating expenses, including related party expenses of $0 in 2024, and $1 in 202343,608 52,064 
Real estate taxes31,606 41,383 
Operating lease rent6,405 6,301 
SUMMIT Operator expenses21,858 20,688 
Interest expense, net of interest income31,173 41,653 
Amortization of deferred financing costs1,539 2,021 
SUMMIT Operator tax expense(1,295)1,267 
Depreciation and amortization48,584 78,782 
Loan loss and other investment reserves, net of recoveries 6,890 
Transaction related costs16 884 
Marketing, general and administrative21,313 23,285 
Total expenses204,807 275,218 
Equity in net income (loss) from unconsolidated joint ventures111,160 (7,412)
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate26,764 (79)
Purchase price and other fair value adjustments(50,492)239 
Loss on sale of real estate, net (1,651)
Depreciable real estate reserves and impairment(52,118)— 
Net income (loss)18,389 (38,357)
Net loss attributable to noncontrolling interests:
Noncontrolling interests in other partnerships1,294 1,625 
Preferred units distributions(1,903)(1,598)
Net income (loss) attributable to SLGOP17,780 (38,330)
Perpetual preferred unit dividends(3,738)(3,738)
Net income (loss) attributable to SLGOP common unitholders$14,042 $(42,068)
Basic earnings (loss) per unit$0.20 $(0.63)
Diluted earnings (loss) per unit$0.20 $(0.63)
Basic weighted average common units outstanding68,767 68,182 
Diluted weighted average common units and common unit equivalents outstanding70,095 68,182 


The accompanying notes are an integral part of these consolidated financial statements.
14

Table of Contents

SL Green Operating Partnership, L.P.
Consolidated Statements of OperationsComprehensive Income (Loss)
(unaudited, in thousands, except per unit data)thousands)

Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Revenues
Rental revenue, net$185,945 $155,232 $380,987 $311,263 
Investment income9,103 20,407 18,160 40,295 
Other income26,022 25,806 45,498 37,851 
Total revenues221,070 201,445 444,645 389,409 
Expenses
Operating expenses, including related party expenses of $0 and $1 in 2023, and $3,172 and $5,695 in 202246,957 39,557 99,021 82,140 
Real estate taxes39,885 30,819 81,268 61,566 
Operating lease rent6,655 6,477 12,956 13,041 
Interest expense, net of interest income40,621 14,960 82,274 30,030 
Amortization of deferred financing costs2,154 1,917 4,175 3,865 
Depreciation and amortization69,084 46,914 147,632 93,897 
Loan loss and other investment reserves, net of recoveries — 6,890 — 
Transaction related costs33 917 29 
Marketing, general and administrative22,974 23,522 46,259 48,298 
Total expenses228,363 164,167 481,392 332,866 
Equity in net loss from unconsolidated joint ventures(21,932)(4,550)(29,344)(9,265)
Equity in net loss on sale of interest in unconsolidated joint venture/real estate (131)(79)(131)
Purchase price and other fair value adjustments(17,409)(6,168)(17,170)(6,231)
Loss on sale of real estate, net(26,678)(64,378)(28,329)(65,380)
Depreciable real estate reserves and impairment(305,916)— (305,916)— 
Net loss(379,228)(37,949)(417,585)(24,464)
Net loss (income) attributable to noncontrolling interests:
Noncontrolling interests in other partnerships1,040 (3,404)2,665 (3,261)
Preferred units distributions(1,851)(1,599)(3,449)(3,246)
Net loss attributable to SLGOP(380,039)(42,952)(418,369)(30,971)
Perpetual preferred unit distributions(3,737)(3,737)(7,475)(7,475)
Net loss attributable to SLGOP common unitholders$(383,776)$(46,689)$(425,844)$(38,446)
Basic loss per unit$(5.63)$(0.70)$(6.25)$(0.58)
Diluted loss per unit$(5.63)$(0.70)$(6.25)$(0.58)
Basic weighted average common units outstanding68,341 67,900 68,263 68,099 
Diluted weighted average common units and common unit equivalents outstanding68,341 69,020 68,263 69,422 
Three Months Ended March 31,
 20242023
Net income (loss)$18,389 $(38,357)
Other comprehensive income (loss):
Increase (decrease) in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments23,214 (31,059)
Increase (decrease) in unrealized value of marketable securities1,082 (968)
Other comprehensive income (loss)24,296 (32,027)
Comprehensive income (loss)42,685 (70,384)
Net loss attributable to noncontrolling interests1,294 1,625 
Other comprehensive (income) loss attributable to noncontrolling interests(1,622)1,851 
Comprehensive income (loss) attributable to SLGOP$42,357 $(66,908)


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

15

Table of Contents

SL Green Operating Partnership, L.P.
Consolidated Statements of Comprehensive (Loss) IncomeCapital
(unaudited, in thousands)thousands, except per unit data)

Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Net loss$(379,228)$(37,949)$(417,585)$(24,464)
Other comprehensive income:
Increase in unrealized value of derivative instruments, including SLGOP's share of joint venture derivative instruments41,322 17,323 10,263 60,890 
Decrease in unrealized value of marketable securities(476)(454)(1,444)(2,247)
Other comprehensive income40,846 16,869 8,819 58,643 
Comprehensive (loss) income(338,382)(21,080)(408,766)34,179 
Net loss (income) attributable to noncontrolling interests1,040 (3,404)2,665 (3,261)
Other comprehensive income attributable to noncontrolling interests(2,505)(1,013)(654)(3,290)
Comprehensive (loss) income attributable to SLGOP$(339,847)$(25,497)$(406,755)$27,628 
 SL Green Operating Partnership Unitholders  
  Partners' Interest   
Series I
Preferred
Units
Common
Units
Common
Unitholders
Accumulated Other Comprehensive IncomeNoncontrolling
Interests
Total
Balance at December 31, 2023$221,932 64,726 $3,546,906 $17,477 $69,610 $3,855,925 
Net income16,879 (1,294)15,585 
Acquisition of subsidiary interest— (5,674)(5,674)
Other comprehensive income22,674 22,674 
Perpetual preferred unit dividends(3,738)(3,738)
DRSPP proceeds77 77 
Reallocation of noncontrolling interests in the Operating Partnership(42,841)(42,841)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings78 4,601 4,601 
Consolidation of joint venture interest6,678 6,678 
Cash distributions to noncontrolling interests(1,283)(1,283)
Cash distributions declared ($0.750 per common unit, none of which represented a return of capital for federal income tax purposes)(48,356)(48,356)
Balance at March 31, 2024$221,932 64,806 $3,473,528 $40,151 $68,037 $3,803,648 
SL Green Operating Partnership Unitholders
Partners' Interest
Series I
Preferred
Units
Common
Units
Common
Unitholders
Accumulated
Other
Comprehensive Income
Noncontrolling
Interests
Total
Balance at December 31, 2022$221,932 64,380 $4,313,497 $49,604 $61,889 $4,646,922 
Net loss(35,993)(1,625)(37,618)
Other comprehensive loss(30,176)(30,176)
Perpetual preferred unit dividends(3,738)(3,738)
DRSPP proceeds184 184 
Reallocation of noncontrolling interests in the operating partnership(10,147)(10,147)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings(12)7,559 7,559 
Contributions to consolidated joint venture interests8,560 8,560 
Cash distributions to noncontrolling interests(136)(136)
Cash distributions declared ($0.812 per common unit, none of which represented a return of capital for federal income tax purposes)(52,236)(52,236)
Balance at March 31, 2023$221,932 64,373 $4,219,126 $19,428 $68,688 $4,529,174 


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

16

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

 SL Green Operating Partnership Unitholders  
  Partners' Interest   
Series I
Preferred
Units
Common
Units
Common
Unitholders
Accumulated
Other
Comprehensive Loss
Noncontrolling
Interests
Total
Balance at March 31, 2023$221,932 64,373 $4,219,126 $19,428 $68,688 $4,529,174 
Net loss(356,457)(1,040)(357,497)
Other comprehensive income38,341 38,341 
Preferred distributions(3,737)(3,737)
DRSPP proceeds158 158 
Reallocation of noncontrolling interests in the Operating Partnership(1,051)(1,051)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings7,445 7,445 
Contribution to consolidated joint venture interests(112)(112)
Cash distributions to noncontrolling interests(627)(627)
Cash distributions declared ($0.812 per common unit, none of which represented a return of capital for federal income tax purposes)(52,261)(52,261)
Balance at June 30, 2023$221,932 64,387 $3,813,223 $57,769 $66,909 $4,159,833 
SL Green Operating Partnership Unitholders
Partners' Interest
Series I
Preferred
Units
Common
Units
Common
Unitholders
Accumulated
Other
Comprehensive Income
Noncontrolling
Interests
Total
Balance at March 31, 2022$221,932 64,124 $4,511,333 $(7,261)$13,111 $4,739,115 
Net loss(40,139)3,404 (36,735)
Other comprehensive income15,856 15,856 
Preferred distributions(3,737)(3,737)
DRSPP proceeds110 110 
Reallocation of noncontrolling interests in the operating partnership37,938 37,938 
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings176 8,475 8,475 
Contribution to consolidated joint venture interests51,348 51,348 
Cash distributions to noncontrolling interests(2,897)(2,897)
Cash distributions declared ($0.932 per common unit, none of which represented a return of capital for federal income tax purposes)(60,709)(60,709)
Balance at June 30, 2022$221,932 64,302 $4,453,271 $8,595 $64,966 $4,748,764 
17

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SL Green Operating Partnership, L.P.
Consolidated Statements of Capital
(unaudited, in thousands, except per unit data)
 SL Green Operating Partnership Unitholders  
  Partners' Interest   
Series I
Preferred
Units
Common
Units
Common
Unitholders
Accumulated Other Comprehensive IncomeNoncontrolling
Interests
Total
Balance at December 31, 2022$221,932 64,380 $4,313,497 $49,604 $61,889 $4,646,922 
Net loss(392,450)(2,665)(395,115)
Other comprehensive income8,165 8,165 
Preferred distributions(7,475)(7,475)
DRSPP proceeds12 342 342 
Reallocation of noncontrolling interests in the Operating Partnership(11,198)(11,198)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings(5)15,004 15,004 
Contributions to consolidated joint venture interests8,448 8,448 
Cash distributions to noncontrolling interests(763)(763)
Cash distributions declared ($1.625 per common unit, none of which represented a return of capital for federal income tax purposes)(104,497)(104,497)
Balance at June 30, 2023$221,932 64,387 $3,813,223 $57,769 $66,909 $4,159,833 
SL Green Operating Partnership Unitholders
Partners' Interest
Series I
Preferred
Units
Common
Units
Common
Unitholders
Accumulated
Other
Comprehensive Income
Noncontrolling
Interests
Total
Balance at December 31, 2021$221,932 64,105 $4,589,702 $(46,758)$13,377 $4,778,253 
Net loss(28,650)3,261 (25,389)
Other comprehensive income55,353 55,353 
Preferred distributions(7,475)(7,475)
DRSPP proceeds199 199 
Reallocation of noncontrolling interests in the operating partnership(5,085)(5,085)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings204 13,531 13,531 
Repurchases of common stock(1,971)(151,197)(151,197)
Contributions to consolidated joint venture interests51,348 51,348 
Cash distributions to noncontrolling interests(3,020)(3,020)
Issuance of special distribution paid primarily in units1,961 160,620 160,620 
Cash distributions declared ($1.865 per common unit, none of which represented a return of capital for federal income tax purposes)(118,374)(118,374)
Balance at June 30, 2022$221,932 64,302 $4,453,271 $8,595 $64,966 $4,748,764 


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

18

Table of Contents

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

Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
20232022 20242023
Operating ActivitiesOperating Activities  Operating Activities  
Net loss$(417,585)$(24,464)
Adjustments to reconcile net loss to net cash provided by operating activities:
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortizationDepreciation and amortization151,807 97,762 
Equity in net loss from unconsolidated joint ventures29,344 9,265 
Depreciation and amortization
Depreciation and amortization
Equity in net (income) loss from unconsolidated joint ventures
Distributions of cumulative earnings from unconsolidated joint venturesDistributions of cumulative earnings from unconsolidated joint ventures409 343 
Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate79 131 
Equity in net (gain) loss on sale of interest in unconsolidated joint venture interest/real estate
Purchase price and other fair value adjustmentsPurchase price and other fair value adjustments17,170 6,231 
Depreciable real estate reserves and impairmentDepreciable real estate reserves and impairment305,916 — 
Loss on sale of real estate, netLoss on sale of real estate, net28,329 65,380 
Loan loss reserves and other investment reserves, net of recoveriesLoan loss reserves and other investment reserves, net of recoveries6,890 — 
Deferred rents receivableDeferred rents receivable(14,357)1,075 
Deferred rents receivable
Deferred rents receivable
Non-cash lease expenseNon-cash lease expense10,550 12,080 
Other non-cash adjustmentsOther non-cash adjustments(2,523)(10,406)
Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Tenant and other receivables
Tenant and other receivables
Tenant and other receivablesTenant and other receivables(3,805)14,767 
Related party receivablesRelated party receivables(893)1,458 
Deferred lease costsDeferred lease costs(5,891)(6,922)
Other assetsOther assets1,235 (2,651)
Accounts payable, accrued expenses, other liabilities and security depositsAccounts payable, accrued expenses, other liabilities and security deposits2,697 19,767 
Deferred revenueDeferred revenue(585)(2,672)
Lease liability - operating leasesLease liability - operating leases(4,795)1,291 
Net cash provided by operating activities103,992 182,435 
Net cash (used in) provided by operating activities
Investing ActivitiesInvesting Activities
Additions to land, buildings and improvementsAdditions to land, buildings and improvements(134,190)(126,957)
Additions to land, buildings and improvements
Additions to land, buildings and improvements
Acquisition deposits and deferred purchase price
Investments in unconsolidated joint venturesInvestments in unconsolidated joint ventures(46,977)(135,365)
Distributions in excess of cumulative earnings from unconsolidated joint venturesDistributions in excess of cumulative earnings from unconsolidated joint ventures72,823 64,976 
Net proceeds from disposition of real estate/joint venture interestNet proceeds from disposition of real estate/joint venture interest97,563 353,853 
Other investmentsOther investments(17,779)1,507 
Other investments
Other investments
Origination of debt and preferred equity investmentsOrigination of debt and preferred equity investments(10,308)(29,095)
Repayments or redemption of debt and preferred equity investments 6,405 
Net cash (used in) provided by investing activities(38,868)135,324 
Net cash used in investing activities
Net cash used in investing activities
Net cash used in investing activities
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SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(unaudited, in thousands)

Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
20232022 20242023
Financing ActivitiesFinancing Activities  Financing Activities  
Proceeds from mortgages and other loans payableProceeds from mortgages and other loans payable 184,196 
Repayments of mortgages and other loans payableRepayments of mortgages and other loans payable(2,899)(91,770)
Proceeds from revolving credit facility and unsecured notes223,000 332,000 
Repayments of revolving credit facility and unsecured notes(218,000)(592,000)
Proceeds from revolving credit facility, term loans and unsecured notes
Repayments of revolving credit facility, term loans and unsecured notes
Proceeds from stock options exercised and DRSPP issuanceProceeds from stock options exercised and DRSPP issuance342 199 
Repurchase of common units (151,197)
Redemption of preferred units(11,700)(17,968)
Redemption of OP units
Redemption of OP units
Redemption of OP unitsRedemption of OP units(5,250)(18,334)
Distributions to noncontrolling interests in other partnershipsDistributions to noncontrolling interests in other partnerships(763)(3,020)
Contributions from noncontrolling interests in other partnershipsContributions from noncontrolling interests in other partnerships314 51,348 
Distributions paid on common and preferred unitsDistributions paid on common and preferred units(122,533)(140,128)
Other obligations related to secured borrowing 77,874 
Tax withholdings related to restricted share awards (3,891)
Distributions paid on common and preferred units
Distributions paid on common and preferred units
Deferred loan costsDeferred loan costs(630)(4,991)
Net cash used in financing activities(138,119)(377,682)
Deferred loan costs
Deferred loan costs
Net cash provided by (used in) financing activities
Net cash provided by (used in) financing activities
Net cash provided by (used in) financing activities
Net decrease in cash, cash equivalents, and restricted cashNet decrease in cash, cash equivalents, and restricted cash(72,995)(59,923)
Cash, cash equivalents, and restricted cash at beginning of yearCash, cash equivalents, and restricted cash at beginning of year384,054 336,984 
Cash, cash equivalents, and restricted cash at end of periodCash, cash equivalents, and restricted cash at end of period$311,059 $277,061 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issuance of special distribution paid primarily in units$ $160,620 
Tenant improvements and capital expenditures payable 10,295 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Fair value adjustment to noncontrolling interest in the Operating PartnershipFair value adjustment to noncontrolling interest in the Operating Partnership11,198 5,085 
Deconsolidation of a subsidiary101,351 — 
Fair value adjustment to noncontrolling interest in the Operating Partnership
Fair value adjustment to noncontrolling interest in the Operating Partnership
Consolidation of a subsidiary
Consolidation of a subsidiary
Consolidation of a subsidiary
Consolidation of mortgage loan payable
Acquisition of subsidiary interest from noncontrolling interest
Contribution to consolidated joint venture interestContribution to consolidated joint venture interest8,134 — 
Removal of fully depreciated commercial real estate propertiesRemoval of fully depreciated commercial real estate properties7,747 3,597 
Removal of fully depreciated commercial real estate properties
Removal of fully depreciated commercial real estate properties
Share repurchase or redemption payable
Share repurchase or redemption payable
Share repurchase or redemption payable
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.
Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
20232022 20242023
Cash and cash equivalentsCash and cash equivalents$191,979 $189,360 
Restricted cashRestricted cash119,080 87,701 
Total cash, cash equivalents, and restricted cashTotal cash, cash equivalents, and restricted cash$311,059 $277,061 
The accompanying notes are an integral part of these consolidated financial statements.

2018


SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements
June 30, 2023March 31, 2024
(unaudited)
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 are 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 June 30, 2023,March 31, 2024, noncontrolling investors held, in the aggregate, a 6.18%6.38% 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."
On June 30, 2023,March 31, 2024, 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
LocationLocationProperty
Type
Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Weighted Average Leased Occupancy (1) (unaudited)
Location
LocationProperty
Type
Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Weighted Average Leased Occupancy (1) (unaudited)
Commercial:Commercial:
ManhattanManhattanOffice13 8,399,141 12 15,412,174 25 23,811,315 88.9 %
Manhattan
ManhattanOffice14 8,753,441 10 13,009,149 24 21,762,590 88.6 %
RetailRetail22,648 12,946 35,594 100.0 %
Development/RedevelopmentDevelopment/Redevelopment(2)880,771 1,959,426 2,840,197 N/A
Retail(2)17,888 294,865 10 312,753 91.0 %
Development/Redevelopment(1)1,466,419 3,115,241 4,581,660 N/A
19 9,883,448 24 18,822,280 43 28,705,728 N/A
17
17
17 9,656,860 13 14,981,521 30 24,638,381 88.6 %
SuburbanSuburbanOffice862,800 — — 862,800 78.4 %SuburbanOffice862,800 862,800 — — — — 862,800 862,800 73.8 73.8 %
Total commercial propertiesTotal commercial properties26 10,746,248 24 18,822,280 50 29,568,528 N/A
Total commercial properties
Total commercial properties24 10,519,660 13 14,981,521 37 25,501,181 88.0 %
Residential:Residential:
ManhattanManhattanResidential(2)140,382 — — 140,382 96.7 %
Manhattan
ManhattanResidential(2)140,382 221,884 362,266 99.6 %
Total portfolio27 10,886,630 24 18,822,280 51 29,708,910 N/A
Total core portfolio
Total core portfolio
Total core portfolio25 10,660,042 14 15,203,405 39 25,863,447 88.2 %
Alternative Strategy Portfolio
Alternative Strategy Portfolio
Alternative Strategy Portfolio17,888 3,694,956 10 3,712,844 66.1 %
(1)The weighted average leased occupancy for commercial properties represents the total leased square footage divided by the total square footage at acquisition.  The weighted average leased occupancy for residential properties represents the total leased units divided by the total available units. Properties under construction are not included in the calculation of weighted average leased occupancy.
(2)As of June 30, 2023,March 31, 2024, 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.
As of June 30, 2023,March 31, 2024, we also managed one office building and one retail building owned by a third partyparties encompassing approximately 0.30.4 million square feet (unaudited), and held debt and preferred equity investments with a book value of $636.5$352.3 million, excluding debt and preferred equity investments and other financing receivables totaling $8.5$4.8 million that are included in balance sheet line items other than the Debt and preferred equity investments line item.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
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, 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 SL Green's common stock on a one-for-one basis.
Basis of Quarterly Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the financial position of the Company and the Operating Partnership at June 30, 2023March 31, 2024 and the results of operations for the periods presented have been included. The operating results for the period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.2024. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 20222023 of the Company and the Operating Partnership.
The consolidated balance sheet at December 31, 20222023 has been derived from the audited financial statements as of that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
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 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.
Investment in Commercial Real Estate Properties
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 3 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 1 year to 15 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 1 year to 15 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 originationOrigination costs are amortized as an expense over the remaining life of the lease and tenant improvements are amortized over the shorter of the remaining life of the lease or useful life of the improvement (or charged against earnings if the lease is terminated prior to its contractual expiration date). WeWhen allocating the purchase price of real estate, we assess fair value of the 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. 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.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
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.
On a periodic basis, we assess whether there are any indications that the value of our real estate consolidated properties may be impaired or that their carrying value may not be recoverable. A consolidated property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted) and terminal value 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 fair value of the property as calculated in accordance with Accounting Standards Codification, or ASC 820. We also evaluate our real estate consolidated 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.
In April 2023,2024, the ground rent appraisal proceeding concludedCompany entered into an agreement to sell the property at 719 Seventh Avenue for our wholly-owned leasehold interest at 625 Madison Avenue.$30.5 million. The transaction is subject to customary conditions. As a result of that proceeding, the ground rent has been reset from the previous rent of $4.61 million per annum to a new rent of $20.25 million per annum, effective as of July 1, 2022. Following a strategic review of the property that addresses a range of relevant considerations, including the increase in ground rent to an amount substantially above what the Company believes is appropriate,pending sale, the Company recorded a $305.9$46.3 million charge to write downreduce the carrying value of its investment into the leasehold interest to zero incontracted purchase price for the quarter ending June 30, 2023,three months ended March 31, 2024, which is included in Depreciable real estate reserves and impairments in the consolidated statementstatements of operations.
For the three and six months ended June 30, 2023,March 31, 2024, we recognized additionala reduction of rental revenue of $6.2 million and $14.5 million, respectively,($0.1 million) for the amortization of aggregate below-marketabove-market leases in excess of above-marketbelow-market leases resulting from the allocation of the purchase price of the applicable properties. For the three and six months ended June 30, 2022,March 31, 2023, we recognized a reduction$8.2 million of rental revenue of ($0.2 million) and ($0.3 million), respectively, for the amortization of aggregate above-marketbelow-market leases in excess of below-marketabove-market leases.
The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of June 30, 2023March 31, 2024 and December 31, 20222023 (in thousands):
June 30, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
Identified intangible assets (included in other assets):Identified intangible assets (included in other assets):
Gross amount
Gross amount
Gross amountGross amount$189,680 $403,552 
Accumulated amortizationAccumulated amortization(183,769)(190,066)
NetNet$5,911 $213,486 
Identified intangible liabilities (included in deferred revenue):Identified intangible liabilities (included in deferred revenue):
Gross amountGross amount$205,394 $361,338 
Gross amount
Gross amount
Accumulated amortizationAccumulated amortization(201,911)(212,191)
NetNet$3,483 $149,147 
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.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
Fair Value Measurements
See Note 16, "Fair Value Measurements."
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
Investment in Marketable Securities
At acquisition, we designate a debt security as held-to-maturity, available-for-sale, or trading. As of June 30, 2023,March 31, 2024, 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 ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive income or loss. The cost of marketable securities sold and the amount reclassified out of accumulated other comprehensive income 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.
As of June 30, 2023March 31, 2024 and December 31, 2022,2023, we held the following marketable securities (in thousands):
June 30, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
Commercial mortgage-backed securitiesCommercial mortgage-backed securities$9,797 $11,240 
Total investment in marketable securitiesTotal investment in marketable securities$9,797 $11,240 
Total investment in marketable securities
Total investment in marketable securities
The cost basis of the commercial mortgage-backed securities was $11.5 million as of June 30, 2023March 31, 2024 and $11.5 million as of December 31, 2022.2023. These securities mature at various times through 2030. As of March 31, 2024, one security was in an unrealized gain position of $0.1 million with a fair market value of $5.4 million, and one security was in an unrealized loss position of $0.9 million with a fair market value of $5.3 million and was in a continuous unrealized loss position for more than 12 months. All securities were in an unrealized loss position as of June 30, 2023 and December 31, 20222023 with an unrealized loss of $1.7$1.9 million, and a fair market value of $9.8$9.6 million as of June 30, 2023, and an unrealized loss of $0.3 million and a fair value of $11.2 million as of December 31, 2022. The securities were in a continuous unrealized loss position for lessmore than 12 months as of June 30, 2023 and December 31, 2022.months. 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 investments before recovery of their amortized cost bases.
We did not dispose of any debt marketable securities during the three and six months ended June 30, 2023March 31, 2024 and 2022.2023.
We held no equity marketable securities as of June 30, 2023March 31, 2024 and December 31, 2022. We recognized $6.2 million and $6.2 million of unrealized losses for the three and six months ended June 30, 2022, respectively.2023.
Investments in Unconsolidated Joint Ventures
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 each joint ventures' actual and projected cash flows. WeAside from charges noted in Note 6, "Investments in Unconsolidated Joint Ventures," we do not believe that the values of any of our equity investments were impaired at June 30, 2023.March 31, 2024.
Deferred Lease Costs
Deferred lease costs consist of incremental fees and direct costs that would not have been incurred if the lease had not been obtained and are amortized on a straight-line basis over the related lease term.
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. Rental revenue recognition commences when the leased space is available for its intended use by the lessee.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
To determine whether the leased space is available for its intended use by the lessee, management evaluates whether we or the tenant are 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 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.
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 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.
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 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 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 non-lease components with the lease components of 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 we no longer have a controlling financial interest in the entity owning the real estate, a contract exists with a third party and that third party has control of the assets acquired.
Investment income on debt and preferred equity investments is accrued based on the contractual terms of the instruments and when 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 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.
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.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
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 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.
Revenues from the sale of SUMMIT tickets are recognized upon admission or ticket expirations. Deferred revenue related to unused and unexpired tickets as of March 31, 2024 and 2023 was $4.2 million and $3.2 million, respectively, and is included in Deferred revenue on the consolidated balance sheets.
Debt and Preferred Equity Investments
Debt 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 adjust the allowance for loan losses to the appropriate level. Amounts are written off from the allowance when we de-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 collected based on current market and economic conditions, historical loss information, and reasonable and supportable forecasts. The Company's assumptions are derived from both internal data and external data which may include, among others, governmental economic projections for the New 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 possible credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/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 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.
Financing investments that are classified as held for sale are carried at the expected 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 amount expected to be collected.
Accrued interest receivable amounts related to these debt and preferred equity investment and other financing receivables are recorded at the net amount expected to be collected within Other assets in the consolidated balance sheets. Accrued interest receivables that are written off are recognized as an expense in loan loss and other investment reserves.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
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.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
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.
We have elected, and may elect in the future, to treat certain of our 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, state and state incomelocal corporate tax liability for these entities.
During the three and six months ended June 30,March 31, 2024 and 2023, we recorded federal,Federal, state and local tax provisions totaling $2.0$0.7 million and $2.7$0.8 million, respectively.respectively, for these entities.
SUMMIT is also held in a TRS and pays Federal, state and local taxes. During the three and six monthsquarter ended June 30, 2022,March 31, 2024, we recorded federal,Federal, state and local tax provisions totaling $1.4 millionbenefit for SUMMIT of $1.3 million. During the quarter ended March 31, 2023, we recorded Federal, state and $2.3 million, respectively.local tax expense for SUMMIT of $1.3 million.
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.
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.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
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 New York City. See Note 5, "Debt and Preferred Equity Investments."
We perform initial and ongoing evaluations of the credit quality 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 associated with re-tenanting a space. The properties in our real estate portfolio are located in the New York metropolitan area, principally in Manhattan. Our tenants operate in various industries. Other than one tenant, Paramount Global (formerly ViacomCBS Inc.), which accounted for 5.8%5.5% of our share of annualized cash rent as of June 30, 2023,March 31, 2024, 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, for the three months ended June 30, 2023.March 31, 2024.
For the three months ended June 30, 2023,March 31, 2024, the following properties contributed more than 5.0% of our annualized cash rent from office properties, including our share of annualized cash rent from joint venture office properties:
PropertyThree months ended June 30, 2023March 31, 2024
One Vanderbilt Avenue15.2%
245 Park Avenue10.8%16.7%
11 Madison Avenue8.3%8.8%
420 Lexington Ave6.7%7.2%
1515 Broadway6.3%
280 Park Avenue5.7%6.7%
1185 Avenue of the Americas5.5%6.0%
245 Park Avenue5.6%
280 Park Avenue5.0%
Reclassification
Certain prior year balances have been reclassified to conform to our current year presentation.
As of December 31, 2023, SUMMIT met the criteria of a reportable operating segment pursuant to the guidance in ASC 280. Accordingly, we reclassified SUMMIT Operator revenue, SUMMIT Operator expenses, and SUMMIT Operator tax expense to separate financial statement line items in our consolidated statements of operations. These items were previously presented on a net basis in Other income. Additionally, the depreciation and amortization of SUMMIT assets are included in Depreciation and amortization in our consolidated statements of operations. Prior period balances have been reclassified to conform to the current period presentation.
Accounting Standards Updates
In March 2022,December 2023, the FASB issued ASU No. 2022-02 Financial Instruments2023-09 Income Taxes (Topic 740) - Credit Losses (Topic 326) Troubled Debt Restructurings and VintageImprovements to Income Tax Disclosures. The objective of the amendments in ASU 2022-02 eliminates the troubled debt restructuring recognition and measurement guidance and, instead, requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements2023-09 related to certain modificationsthe rate reconciliation and income taxes paid disclosures are to improve transparency of receivables made to borrowers experiencing financial difficulties. Additionally, ASU 2022-02 requires an entity to disclose current-period gross write-offsincome tax disclosures by yearrequiring consistent categories and greater disaggregation of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures requiredrate reconciliation, and income taxes paid disaggregated by jurisdiction. The amendment will require that public entities on an annual basis disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Additionally, the amendment will require that all entities in accordance with Subtopic 326-20, which requiresdisclose on an annual basis the amount of taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as disaggregated by individual jurisdictions that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination.meet a quantitative threshold. ASU 2022-022023-09 is effective prospectively for reportingannual periods beginning after December 15, 2022, including2024. Early adoption and retrospective application is permitted. We are currently evaluating the impact of the adoption of ASU 2023-09 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. ASU 2023-07 amends the reportable segment disclosure requirements to enhance disclosures about significant segment expenses. The objective of the amendment is to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendment will require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss (collectively referred to as the "significant expense principle"). Additionally, the amendment will require an entity to disclose an amount for "other segment items" by reportable segment and a description of its composition as well as require annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 in interim periods. Lastly, the amendment will require a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding to allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years beginning after December 15, 2024. Early adoption is permitted and should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of the adoption of ASU 2023-07 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.
In August 2023, the FASB issued ASU No. 2023-05 Business Combinations - Joint Venture Formations (Subtopic 805-60) Recognition and Initial Measurement. ASU 2023-05 addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The objectives of the amendments are to provide decision-useful information to investors and other allocators of capital in a joint venture's financial statements and reduce diversity in practice. The amendments require that a joint venture apply the following key adaptations from the business combinations guidance upon formation: (i) a joint venture is the formation of a new entity without an accounting acquirer, (ii) a joint venture measures its identifiable net assets and goodwill, if any, at the formation date, (iii) initial measurement of a joint venture's total net assets is equal to the fair value of 100 percent of the joint venture's equity, and (iv) a joint venture provides relevant disclosures. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted.permitted in any interim or annual period in which financial statements have not yet been issued, either prospectively or retrospectively. We are currently evaluating the impact of the adoption of ASU 2023-05 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.
In March 2020, the FASB issued ASU No. 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting and 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 No. 2022-06 in December 2022. The guidance may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company adoptedelected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to 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 presentation of derivatives consistent with past presentation. The impact of this guidance on January 1, 2023 and it did not have a material impact on the Company's consolidated financial statements.
3. Property Acquisitions and Consolidations
Property Acquisitions
During the sixthree months ended June 30, 2023,March 31, 2024, we did not acquire any properties from a third party.
Property Consolidations
The following table summarizes the properties consolidated during the three months ended March 31, 2024:
PropertyConsolidation DateProperty TypeApproximate Square FeetGross Asset Valuation
(in millions)
10 East 53rd Street (1)
March 2024Fee Interest354,300$236.0 
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
(1)In March 2024, the Company entered into an agreement to acquire its partner's 45.0% interest in the joint venture for cash consideration of $7.2 million, which is net of all outstanding debt obligations at contract signing. As a result of the contract terms, it was concluded that the joint venture is a VIE in which the Company is the primary beneficiary, and the investment was consolidated in our financial statements. Upon consolidating the entity, the assets and liabilities of the entity were recorded at fair value which resulted in the recognition of a fair value adjustment of ($55.7 million), which is included in Purchase price and other fair value adjustments in the consolidated statements of operations. Prior to March 2024, the investment was accounted for under the equity method. See Note 16, "Fair Value Measurements."
4. Properties Held for Sale and Property Dispositions
Properties Held for Sale
As of June 30, 2023, no properties wereMarch 31, 2024, Palisades Premier Conference Center was classified as held for sale.sale as we entered into an agreement to sell the property for $26.3 million. The sale is expected to close in the second quarter of 2024.
Property Dispositions
During the three months ended March 31, 2024, we did not dispose of any properties.
5. Debt and Preferred Equity Investments
Below is a summary of the activity in our debt and preferred equity investments for the three months ended March 31, 2024 and the twelve months ended December 31, 2023 (in thousands):
March 31, 2024December 31, 2023
Balance at beginning of year (1)
$346,745 $623,280 
Debt investment originations/fundings/accretion (2)
3,487 72,160 
Preferred equity investment originations/accretion (2)
2,115 8,142 
Redemptions/sales/syndications/equity ownership/amortization (349,947)
Net change in loan loss reserves (6,890)
Balance at end of period (1) (3)
$352,347 $346,745 
(1)Net of unamortized fees, discounts, and premiums.
(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)Includes two investments with a total carrying value of $49.8 million that are included in the Company's alternative strategy portfolio.
Below is a summary of our debt and preferred equity investments as of March 31, 2024 (dollars in thousands):
Floating RateFixed RateTotal Carrying ValueSenior Financing
Maturity (2)
TypeCarrying ValueFace Value
Interest Rate (1)
Carrying ValueFace ValueInterest Rate
Mezzanine Debt$172,232 $172,391 S + 4.95% - 12.38%$50,000 $50,000 8.00% - 8.40%$222,232 (3)$1,084,257 2024 - 2029
Preferred Equity  130,115 130,115 6.5%130,115 250,000 2027
Balance at end of period$172,232 $172,391 $180,115 $180,115 $352,347 $1,334,257 
(1)Floating interest rates are presented with the stated spread over Term SOFR ("S").
(2)Excludes available extension options to the extent they have not been exercised as of the date of this filing.
(3)Includes two investments with a total carrying value of $49.8 million that are included in the Company's alternative strategy portfolio.
The following table summarizesis a roll forward of our total allowance for loan losses for the properties disposed of during the sixthree months ended June 30, 2023:March 31, 2024 and the twelve months ended December 31, 2023 (in thousands):
March 31, 2024December 31, 2023
Balance at beginning of year$13,520 $6,630 
Current period provision for loan loss 6,890 
Balance at end of period (1)
$13,520 $13,520 
(1)As of March 31, 2024, all debt and preferred equity investments on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $49.8 million, which is included in the Company's alternative strategy portfolio.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
PropertyDisposition DateProperty TypeUnaudited Approximate Usable Square Feet
Sales Price (1)
(in millions)
Loss on Sale (2)
(in millions)
245 Park Avenue (3)
June 2023Fee Interest1,782,793 $1,995.0 $(28.3)
(1)Sales price represents the gross sales price for a property or the gross asset value for the saleAs of interests in a property.
(2)The loss on sale is net of $8.0 million of employee compensation accrued in connection with the realization of the investment gains during the six months ended June 30, 2023. The amounts do not include adjustments for expenses recorded in subsequent periods.
(3)In June 2023, the Company sold a 49.9% interest, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and deconsolidation of the 50.1% interest we retained. We recorded our retained investment at fair value which resulted in the recognition of a fair value adjustment of ($17.0 million), which is reflectedMarch 31, 2024, two investments that are in the Company's consolidated statements of operations within Purchase pricealternative strategy portfolio and other fairhave a total carrying value, adjustments. See Note 6, "Investments in Unconsolidated Joint Venture."
5. Debt and Preferred Equity Investments
Below is a summary of the activity in our debt and preferred equity investments for the six months ended June 30, 2023 and the twelve months ended December 31, 2022 (in thousands):
June 30, 2023December 31, 2022
Balance at beginning of year (1)
$623,280 $1,088,723 
Debt investment originations/fundings/accretion (2)
16,115 62,992 
Preferred equity investment originations/accretion (2)
3,971 37,505 
Redemptions/sales/syndications/equity ownership/amortization (565,940)
Net change in loan loss reserves(6,890)— 
Balance at end of period (1)
$636,476 $623,280 
(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 June 30, 2023 (dollars in thousands):
Floating RateFixed RateTotal Carrying ValueSenior FinancingWeighted Average Yield at End of Period
Maturity (1)
TypeCarrying ValueFace ValueInterest RateCarrying ValueFace ValueInterest Rate
Mezzanine Debt$154,528 $154,709 S + 4.95% - 13.25%$358,119 $373,104 7.00% - 14.30%$512,647 $1,724,174 5.96%2023 - 2029
Preferred Equity  123,829 123,829 6.5%123,829 250,000 6.55%2027
Balance at end of period$154,528 $154,709 $481,948 $496,933 $636,476 $1,974,174 
(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 six months ended June 30, 2023 and the twelve months ended December 31, 2022 (in thousands):
June 30, 2023December 31, 2022
Balance at beginning of year$6,630 $6,630 
Current period provision for loan loss6,890 — 
Balance at end of period (1)
$13,520 $6,630 
(1)As of June 30, 2023, all debt and preferred equity investments on non-accrual had an allowance for loan loss except for two debt investments with carrying values of $225.4 million and $50.0 million.

As of June 30, 2023, four investments with carrying values, net of reserves, of $308.1 million, $49.8 million, $39.0 million and $0.0 million were not performing in accordance with their respective terms. As of December 31, 2022, one investment2023, the same two investments with a total carrying value, net of reserves, of $6.9$49.8 million waswere not performing in accordance with itstheir respective terms. This is further discussed in the Debt Investments and Preferred Equity Investments tables below.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
No other financing receivables were 90 days past due as of June 30, 2023March 31, 2024 and December 31, 2022.2023.
The following table sets forth the carrying value of our debt and preferred equity investment portfolio by risk rating as of June 30, 2023March 31, 2024 and December 31, 20222023 (dollars in thousands):
Risk RatingRisk RatingJune 30, 2023December 31, 2022Risk RatingMarch 31, 2024December 31, 2023
1 - Low Risk Assets - Low probability of loss1 - Low Risk Assets - Low probability of loss$201,185 $264,069 
2 - Watch List Assets - Higher potential for loss435,291 352,321 
2 - Watch List Assets - Higher potential for loss (1)
3 - High Risk Assets - Loss more likely than not3 - High Risk Assets - Loss more likely than not 6,890 
$636,476 $623,280 
$
(1)Includes two investments with a total carrying value of $49.8 million that are included in the Company's alternative strategy portfolio.
The following table sets forth the carrying value of our debt and preferred equity investment portfolio by year of origination and risk rating as of June 30, 2023March 31, 2024 (dollars in thousands):
As of June 30, 2023
As of March 31, 2024As of March 31, 2024
Risk RatingRisk Rating
2023 (1)
2022 (1)
2021 (1)
Prior (1)(2)
TotalRisk Rating
2024 (1)
2023 (1)
2022 (1)
Prior (1)
Total
1 - Low Risk Assets - Low probability of loss1 - Low Risk Assets - Low probability of loss$— $— $— $201,185 $201,185 
2 - Watch List Assets - Higher potential for loss2 - Watch List Assets - Higher potential for loss— — 82,752 352,539 435,291 
3 - High Risk Assets - Loss more likely than not3 - High Risk Assets - Loss more likely than not— — — —  
$— $— $82,752 $553,724 $636,476 
$
(1)Year in which the investment was originated or acquired by us or in which a material modification occurred.
(2)DuringIncludes two investments with a total carrying value of $49.8 million that are included in the six months ended June 30, 2023, we recognized a $6.9 million provision for loan loss related to an investment originated prior to 2021.Company's alternative strategy portfolio.
We have determined that we have one portfolio segment of financing receivables as of June 30, 2023March 31, 2024 and December 31, 20222023 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 $9.2$5.8 million and $9.0$8.8 million as of June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively. The Company recorded no provisions for loan losses related to these financing receivables for the three and six months ended June 30, 2023March 31, 2024 and 2022.2023. 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 June 30, 2023. No investment income has been recognized subsequent to it being put on non-accrual.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
Debt Investments
    As of June 30, 2023March 31, 2024 and December 31, 2022,2023, we held the following debt investments with an aggregate weighted average current yield of 5.96%8.72% as of June 30, 2023March 31, 2024 (dollars in thousands):
Loan TypeLoan TypeJune 30, 2023
Future Funding
Obligations
June 30, 2023 Senior
Financing
June 30, 2023
Carrying Value (1)
December 31, 2022
Carrying Value
(1)
Maturity
Date
(2)
Loan TypeMarch 31, 2024
Future Funding
Obligations
March 31, 2024 Senior
Financing
March 31, 2024
Carrying Value (1)
December 31, 2023
Carrying Value
(1)
Maturity
Date
(2)
Fixed Rate Investments:Fixed Rate Investments:
Mezzanine Loan (3)
$ $399,460 $225,367 $225,367 June 2023
Mezzanine Loan (4)
 272,147 82,752 77,109 June 2023
Mezzanine Loan (5)(6)
 105,000 13,366 13,366 June 2024
Mezzanine Loan (3) (4) (6)
Mezzanine Loan (3) (4) (6)
Mezzanine Loan (3) (4) (6)
$ $105,000 $13,366 $13,366 June 2024
Mezzanine LoanMezzanine Loan 95,000 30,000 30,000 January 2025Mezzanine Loan 95,000 95,000 30,000 30,000 30,000 30,000 January 2025January 2025
Mezzanine LoanMezzanine Loan 85,000 20,000 20,000 December 2029Mezzanine Loan 85,000 85,000 20,000 20,000 20,000 20,000 December 2029December 2029
Total fixed rateTotal fixed rate$ $956,607 $371,485 $365,842  Total fixed rate$ $$285,000 $$63,366 $$63,366   
Floating Rate Investments:Floating Rate Investments:
Mezzanine Loan (7)
$ $275,000 $50,000 $50,000 April 2023
Mezzanine Loan (8)
 186,084 39,083 39,083 July 2023
Mezzanine Loan (5) (6)
Mezzanine Loan (5) (6)
Mezzanine Loan (5) (6)
$ $275,000 $50,000 $50,000 April 2023
Mezzanine LoanMezzanine Loan3,761 54,000 8,243 8,243 May 2024
Mezzanine LoanMezzanine Loan3,761 54,000 8,243 8,243 November 2023Mezzanine Loan370 284,173 284,173 64,624 64,624 62,333 62,333 May 2024May 2024
Mezzanine LoanMezzanine Loan7,618 252,483 57,356 46,884 May 2024Mezzanine Loan9,565 186,084 186,084 49,519 49,519 48,323 48,323 January 2026January 2026
Total floating rateTotal floating rate$11,379 $767,567 $154,682 $144,210  Total floating rate$13,696 $$799,257 $$172,386 $$168,899   
Allowance for loan lossAllowance for loan loss$ $ $(13,520)$(6,630)
TotalTotal$11,379 $1,724,174 $512,647 $503,422 
Total
Total
(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 June 30, 2023. No investment income has been recognized subsequent to it being put on non-accrual. The loan went into default in June 2023 and the Company is in discussions with the borrower with respect to the loan.
(4)This loan went into default in June 2023. The Company is in discussions with the borrower with respect to the loan.
(5)Carrying value is net of a $12.0 million participation that was sold and did not meet the conditions for sale accounting. That participation is included in Other assets and Other liabilities on the consolidated balance sheets as a result.
(6)(4)This loan went into default and was put on non-accrual in June 2020 and remains on non-accrual as of June 30, 2023.March 31, 2024. No investment income has been recognized subsequent to it being put on non-accrual. In the first quarter of 2023, the Company fully reserved the balance of the investment. Additionally, we determined the borrower entity to be a VIE, in which we are not the primary beneficiary.
(7)(5)This loan went into default and was put on non-accrual in January 2023 and remains on non-accrual as of June 30, 2023.March 31, 2024. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower with respect to the loan.
(8)(6)This loan went into defaultIncluded in April 2023. The Company is in discussions with the borrower with respect to the loan.Company's alternative strategy portfolio.

Preferred Equity Investments
As of June 30, 2023March 31, 2024 and December 31, 2022,2023, we held the following preferred equity investment with an aggregate weighted average current yield of 6.55% as of June 30, 2023March 31, 2024 (dollars in thousands):
TypeTypeJune 30, 2023
Future Funding
Obligations
June 30, 2023 Senior
Financing
June 30, 2023
Carrying Value (1)
December 31, 2022
Carrying Value
(1)
Mandatory Redemption (2)
TypeMarch 31, 2024
Future Funding
Obligations
March 31, 2024 Senior
Financing
March 31, 2024
Carrying Value (1)
December 31, 2023
Carrying Value
(1)
Mandatory Redemption (2)
Preferred EquityPreferred Equity$ $250,000 $123,829 $119,858 February 2027Preferred Equity$ $$250,000 $$130,115 $$128,000 February 2027February 2027
Allowance for loan lossAllowance for loan loss$ $ $ $— 
Allowance for loan loss
Allowance for loan loss
TotalTotal$ $250,000 $123,829 $119,858 
Total
Total
(1)Carrying value is net of deferred origination fees.
(2)Represents contractual redemption, excluding any unexercised extension options.

6. Investments in Unconsolidated Joint Ventures
We have investments in several real estate joint ventures with various partners. As of March 31, 2024, the book value of these investments was $3.0 billion, net of investments with negative book values totaling $144.6 million for which we have an implicit commitment to fund future capital needs.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
6. Investments in Unconsolidated Joint Ventures
We have investments in several real estate joint ventures with various partners. As of June 30, 2023, the book value of these investments was $3.2 billion, net of investments with negative book values totaling $122.5 million for which we have an implicit commitment to fund future capital needs.
As of June 30, 2023March 31, 2024 and December 31, 2022,2023, 800 Third Avenue and 21 East 66th Street625 Madison Avenue are VIEs in which we are not the primary beneficiary. Our net equity investment in these VIEs was $78.7$407.5 million and $86.2$437.9 million as of June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively. 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 June 30, 2023:March 31, 2024:
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 
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 (5)
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 (6)
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 (7)
Korean Institutional Investor / Israeli Institutional Investor50.10%25.10%337,000 
5 Times SquareRXR Realty led investment group31.55%31.55%1,131,735 
245 Park Avenue (8)
U.S. Affiliate of Mori Trust Co., Ltd50.10%50.10%1,782,793 
PropertyPartner
Ownership
Interest
(1)
Economic
Interest
(1)
Unaudited Approximate Square Feet
100 Park AvenuePrudential Real Estate Investors49.90%49.90%834,000 
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 Street (2)
Private Investor / Wharton Properties30.00%30.00%17,150 
280 Park AvenueVornado Realty Trust50.00%50.00%1,219,158 
1552-1560 Broadway (2) (3)
Wharton Properties50.00%50.00%57,718 
650 Fifth Avenue (2) (4)
Wharton Properties50.00%50.00%69,214 
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 Plaza (2)
RXR Realty / New York REIT24.95%24.95%2,048,725 
1515 BroadwayAllianz Real Estate of America56.87%56.87%1,750,000 
2 Herald Square (2) (5)
Israeli Institutional Investor95.00%95.00%369,000 
115 Spring Street (2)
Private 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 (2)
RXR Realty led investment group31.55%31.55%1,131,735 
245 Park Avenue (9)
U.S. Affiliate of Mori Trust Co., Ltd50.10%50.10%1,782,793 
625 Madison Avenue (10)
Private Investor90.43%90.43%563,000 
(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of June 30, 2023.March 31, 2024. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)Included in the Company's alternative strategy portfolio.
(3)The joint venture that owns 1552 Broadway also 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)In January 2024, the Company closed on the acquisition of interests in the joint venture that owns the leasehold interest for no consideration, which increases the Company's interest in the joint venture to 95.0%.
(6)In 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
(6)(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 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 June 30, 2023, 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. Thewith the partner's indirect ownership interest in the joint venture is based on its capital contributions, up to an aggregate maximum oftotaling 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 June 30, 2023March 31, 2024 and December 31, 2022.2023.
(7)(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.
(8)(9)In June 2023, the Company sold a 49.9% interest, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and deconsolidation of the 50.1% interest we retained. We recorded our investment at fair value which resulted in the recognition of a fair value adjustment of ($17.0 million) during the three and six monthsyear ended June 30,December 31, 2023. The fair value of our investment was determined by the terms of the joint venture agreement.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
(10)In September 2023, following a UCC foreclosure, the Company converted its previous mezzanine debt investments in the fee interest to a 90.43% ownership interest. In December 2023, together with its joint venture partner, the Company entered into a contract to sell the fee ownership in the property. In connection with this contract, the Company recorded a charge of $23.1 million for the year ended December 31, 2023. As of March 31, 2024, the transaction has not closed and the Company recorded an additional charge of $5.9 million for capital contributions required during the quarter, which is included in Depreciable real estate reserves and impairments in the consolidated statements of operations. This transaction is expected to close in the second quarter of 2024.
Disposition of Joint Venture Interests or Properties
The following table summarizes the investments in unconsolidated joint ventures sold during the sixthree months ended June 30, 2023:March 31, 2024:
PropertyPropertyOwnership Interest DisposedDisposition DateGross Asset Valuation (in millions)
Loss on Sale (in millions) (1)
PropertyOwnership Interest SoldDisposition DateGross Asset Valuation (in millions)
Gain on Sale (in millions) (1)
121 Greene Street50.0%February 2023$14.0 $(0.3)
717 Fifth Avenue
(1)Represents the Company's share of the loss.gain.

Joint Venture Mortgages and Other Loans Payable
We 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 underlying loans. The mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases as of June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively, are as follows (dollars in thousands):
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
Principal OutstandingPrincipal OutstandingPrincipal Outstanding
EconomicEconomicCurrent MaturityFinal MaturityInterestMarch 31, 2024December 31, 2023
PropertyProperty
Economic
Interest
(1)
Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
June 30, 2023December 31, 2022Property
Interest (1)
Date
Date (2)
Rate (3)
GrossSLG ShareGrossSLG Share
Fixed Rate Debt:Fixed Rate Debt:
717 Fifth Avenue10.92 %
   July 2022 (4)
5.02%$655,328 $655,328 
280 Park Avenue50.00 %September 2023September 20246.06%1,200,000 1,200,000 
650 Fifth Avenue50.00 %October 2023January 20245.45%65,000 65,000 
220 East 42nd Street220 East 42nd Street51.00 %June 2024June 20255.86%505,412 510,000 
5 Times Square31.55 %September 2024September 20267.20%444,711 400,000 
10 East 53rd Street55.00 %February 20255.35%220,000 220,000 
220 East 42nd Street
220 East 42nd Street
650 Fifth Avenue (4)
5 Times Square (4)
1515 Broadway1515 Broadway56.87 %March 20253.93%772,221 782,321 
115 Spring Street (4)
450 Park Avenue450 Park Avenue25.10 %June 2025June 20276.10%267,000 267,000 
11 Madison Avenue11 Madison Avenue60.00 %September 20253.84%1,400,000 1,400,000 
One Madison Avenue (5)
One Madison Avenue (5)
25.50 %November 2025November 20263.94%606,858 467,008 
15 Beekman
800 Third Avenue800 Third Avenue60.52 %February 20263.37%177,000 177,000 
919 Third Avenue919 Third Avenue51.00 %April 2026April 20286.11%500,000 500,000 
625 Madison Avenue (6)
245 Park Avenue245 Park Avenue50.10 %June 20274.30%1,768,000 — 
Worldwide Plaza24.95 %November 20273.98%1,200,000 1,200,000 
Worldwide Plaza (4)
One Vanderbilt AvenueOne Vanderbilt Avenue71.01 %July 20312.95%3,000,000 3,000,000 
21 East 66th Street 12,000 
10 East 53rd Street
717 Fifth Avenue
Total fixed rate debtTotal fixed rate debt $12,781,530 $10,855,657 
Floating Rate Debt:Floating Rate Debt:
11 West 34th Street30.00 %
February 2023 (4)
L+1.45%$23,000 $23,000 
115 Spring Street (6)
51.00 %September 2023L+3.40%65,550 65,550 
650 Fifth Avenue50.00 %October 2023January 2024S+2.25%210,000 210,000 
11 West 34th Street (4)
11 West 34th Street (4)
11 West 34th Street (4)
1552 Broadway (4)
100 Park Avenue
650 Fifth Avenue (4)
5 Times Square (4)
280 Park Avenue (11)
2 Herald Square2 Herald Square51.00 %November 2023S+2.06%182,500 182,500 
100 Park Avenue49.90 %December 2023December 2025S+2.36%360,000 360,000 
15 Beekman (7)
20.00 %January 2024July 2025L+1.50%109,440 86,738 
1552 Broadway50.00 %February 2024S+2.75%193,132 193,132 
5 Times Square31.55 %September 2024September 2026S+5.75%542,360 495,924 
21 East 66th Street32.28 %April 2027S+1.75%12,000 — 
21 East 66th Street32.28 %June 2033T+2.75%564 586 
121 Greene Street 12,550 
15 Beekman
Total floating rate debtTotal floating rate debt$1,698,546 $1,629,980 
Total joint venture mortgages and other loans payableTotal joint venture mortgages and other loans payable$14,480,076 $12,485,637 
Deferred financing costs, netDeferred financing costs, net(122,897)(136,683)
Total joint venture mortgages and other loans payable, netTotal joint venture mortgages and other loans payable, net$14,357,179 $12,348,954 
(1)Economic interest represents the Company's interests in the joint venture as of June 30, 2023.March 31, 2024. 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.
(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 operating performance of the property.
(3)Interest rates as of June 30, 2023,March 31, 2024, 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"). The Company is in discussions with lenders holding any remaining floating rate debt with a spread over LIBOR, to transition those loans to a spread over Term SOFR.
(4)As ofIncluded in the date of this filing, the loan is in maturity default. The Company is in discussions with the lender on a resolution.Company's alternative strategy portfolio.
(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, the Company provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics. In July 2023, the facility was modified, which will allow the partnership to utilize the final tranche of the facility for an expanded range of uses, including additional amenities funded by construction cost savings and for hedging activities in contemplation of a permanent financing.
(6)In August 2023, theRepresents $170.5 million of loan maturity was extended to March 2025principal and the interest rate was changed to a fixed interest rate$31.1 million of 5.50%.accrued interest.
(7)ThisThe Company's joint venture partner is in discussions with the lender on resoluteness, given that the loan is a $125.0 million construction facility. Advances underpast maturity.
(8)The Company is in discussions with the lender on resoluteness, given that the loan are subject to costs incurred.is past maturity.
(9)In April 2024, together with its joint venture partner, the Company exercised an extension option through December 2024.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
(10)As-of-right extension.
(11)In April 2024, together with our joint venture partner, closed on a modification and extension of the $1.075 billion securitized mortgage loan. The modification extended the maturity date to September 2026, with the partnership's option to extend to a fully extended maturity date of September 2028. The interest rate was maintained at 1.78% over Term SOFR, which the Company fixed at 5.91% for its share of the debt through the fully extended maturity date. The partnership separately modified and extended the $125.0 million mezzanine loan and subsequently repaid the loan for $62.5 million.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $8.3$4.9 million and $12.9$4.9 million from these services, net of our ownership share of the joint ventures, for the three and six months ended June 30,March 31, 2024 and 2023, respectively. We earned $3.0 million and $9.1 million from these services, net of our ownership share of the joint ventures, for the three and six months ended June 30, 2022, 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, at June 30, 2023March 31, 2024 and December 31, 20222023 are as follows (in thousands):
June 30, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
Assets (1)
Assets (1)
Commercial real estate property, net
Commercial real estate property, net
Commercial real estate property, netCommercial real estate property, net$17,981,673 $15,989,642 
Cash and restricted cashCash and restricted cash720,696 709,299 
Tenant and other receivables, related party receivables, and deferred rents receivableTenant and other receivables, related party receivables, and deferred rents receivable644,818 601,552 
Other assetsOther assets2,713,168 2,551,426 
Other assets
Other assets
Total assetsTotal assets$22,060,355 $19,851,919 
Liabilities and equity (1)
Liabilities and equity (1)
Mortgages and other loans payable, net
Mortgages and other loans payable, net
Mortgages and other loans payable, netMortgages and other loans payable, net$14,357,179 $12,348,954 
Deferred revenueDeferred revenue1,161,020 1,077,901 
Lease liabilitiesLease liabilities995,571 1,000,356 
Other liabilitiesOther liabilities516,566 456,537 
EquityEquity5,030,019 4,968,171 
Total liabilities and equityTotal liabilities and equity$22,060,355 $19,851,919 
Company's investments in unconsolidated joint venturesCompany's investments in unconsolidated joint ventures$3,228,663 $3,190,137 
(1)At June 30, 2023, $552.3March 31, 2024, $548.2 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 three and six months ended June 30,March 31, 2024 and 2023, and 2022, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
202420242023
Total revenuesTotal revenues$344,289 $331,699 $733,741 $666,965 
Operating expensesOperating expenses58,776 53,572 120,744 113,486 
Real estate taxesReal estate taxes66,124 59,394 131,864 120,116 
Operating lease rentOperating lease rent7,258 6,581 14,439 12,849 
Interest expense, net of interest incomeInterest expense, net of interest income129,154 98,317 258,631 193,230 
Amortization of deferred financing costsAmortization of deferred financing costs7,198 6,695 14,243 13,452 
Depreciation and amortizationDepreciation and amortization117,402 113,959 242,668 226,672 
Depreciation and amortization
Depreciation and amortization
Total expensesTotal expenses385,912 338,518 782,589 679,805 
Loss on early extinguishment of debt (467) (467)
Net loss before loss on sale$(41,623)$(7,286)$(48,848)$(13,307)
Company's equity in net loss from unconsolidated joint ventures$(21,932)$(4,550)$(29,344)$(9,265)
Gain on early extinguishment of debt
Net income (loss) before loss on sale
Company's equity in net income (loss) from unconsolidated joint ventures
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
7. Deferred Costs
Deferred costs as of June 30, 2023March 31, 2024 and December 31, 20222023 consisted of the following (in thousands):
June 30, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
Deferred leasing costsDeferred leasing costs$390,665 $407,188 
Less: accumulated amortizationLess: accumulated amortization(278,318)(286,031)
Deferred costs, netDeferred costs, net$112,347 $121,157 
8. Mortgages and Other Loans Payable
The mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments as of June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively, were as follows (dollars in thousands):
PropertyPropertyMaturity
Date
Final Maturity Date (1)
Interest
Rate (2)
June 30, 2023December 31, 2022PropertyMaturity
Date
Final Maturity Date (1)
Interest
Rate (2)
March 31, 2024December 31, 2023
Fixed Rate Debt:Fixed Rate Debt:
719 Seventh AvenueSeptember 20234.70%$50,000 $50,000 
7 Dey / 185 Broadway (3)
November 20237.59%200,000 200,000 
420 Lexington Avenue420 Lexington AvenueOctober 2024October 20403.99%280,165 283,064 
420 Lexington Avenue
420 Lexington Avenue
10 East 53rd Street
100 Church Street100 Church StreetJune 2025June 20275.89%370,000 370,000 
7 Dey / 185 Broadway
Landmark SquareLandmark SquareJanuary 20274.90%100,000 100,000 
485 Lexington Avenue485 Lexington AvenueFebruary 20274.25%450,000 450,000 
245 Park Avenue 1,712,750 
Total fixed rate debtTotal fixed rate debt$1,450,165 $3,165,814 
Floating Rate Debt:Floating Rate Debt:
7 Dey / 185 Broadway (3)
November 2023S+2.85%$10,148 $10,148 
690 Madison AvenueJuly 2024July 2025S+0.50%60,000 60,000 
690 Madison Avenue (4)
690 Madison Avenue (4)
690 Madison Avenue (4)
719 Seventh Avenue (4)(5)
Total floating rate debtTotal floating rate debt$70,148 $70,148 
Total mortgages and other loans payableTotal mortgages and other loans payable$1,520,313 $3,235,962 
Total mortgages and other loans payable
Total mortgages and other loans payable
Deferred financing costs, net of amortizationDeferred financing costs, net of amortization(6,907)(8,399)
Total mortgages and other loans payable, netTotal mortgages and other loans payable, net$1,513,406 $3,227,563 
(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 June 30, 2023,March 31, 2024, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over Term SOFR ("S"), unless otherwise specified.
(3)This loan is a $225.0As-of-right extension.
(4)Included in the Company's alternative strategy portfolio.
(5)In April 2024, the Company entered into an agreement to sell 719 Seventh Avenue. In connection with the sale, the Company will repay the existing $50.0 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.mortgage for $32.0 million.
As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the gross book value of the properties collateralizing the mortgages and other loans payable was approximately $1.9$2.0 billion and $3.8$1.9 billion, respectively.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
9. Corporate Indebtedness
2021 Credit Facility
In December 2021, we entered into an amended 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, and was originally entered into by the Company in November 2012, or the 2012 credit facility.2012. As of June 30, 2023,March 31, 2024, the 2021 credit facility consisted of a $1.25 billion revolving credit facility, a $1.05 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of 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 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 June 30, 2023,March 31, 2024, the 2021 credit facility bore interest at a spread over adjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) 72.5 basis points to 140 basis points for loans under the revolving credit facility, (ii) 80 basis points to 160 basis points for loans under Term Loan A, and (iii) 85 basis points to 165 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.
As of June 30, 2023,March 31, 2024, the applicable spread over adjusted Term SOFR plus 10 basis points for the 2021 credit facility was 105140 basis points for the revolving credit facility, 120160 basis points for Term Loan A, and 125165 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 June 30, 2023,March 31, 2024, the facility fee was 2530 basis points.
As of June 30, 2023,March 31, 2024, we had $2.0 million ofno outstanding letters of credit, $430.0$650.0 million drawn under the revolving credit facility and $1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $820.0$600.0 million under the 2021 credit facility. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the revolving credit facility had a carrying value of $424.0$645.1 million and $443.2$554.8 million, respectively, net of deferred financing costs. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the term loan facilities had a carrying value of $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 2021 credit facility.
The 2021 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 June 30, 2023, the 2022 term loan consisted of a $425.0 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 had 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 June 30, 2023, 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 June 30, 2023, the applicable spread over adjusted Term SOFR plus 10 basis points was 140 basis points. As of June 30, 2023 and December 31, 2022, the 2022 term loan had a carrying value of $423.7 million and $398.2 million, respectively, 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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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
Senior Unsecured Notes
The following table sets forth our senior unsecured notes and other related disclosures as of June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively, by scheduled maturity date (dollars in thousands):
IssuanceIssuanceJune 30, 2023
Unpaid
Principal
Balance
June 30, 2023
Accreted
Balance
December 31,
2022
Accreted
Balance
Interest
Rate (1)
Initial Term
(in Years)
Maturity DateIssuanceMarch 31, 2024
Unpaid
Principal
Balance
March 31, 2024
Accreted
Balance
December 31,
2023
Accreted
Balance
Interest
Rate (1)
Initial Term
(in Years)
Maturity Date
December 17, 2015 (2)
December 17, 2015 (2)
$100,000 $100,000 $100,000 4.27 %10December 2025
December 17, 2015 (2)
$100,000 $$100,000 $$100,000 4.27 4.27 %10December 2025
$
$100,000 $100,000 $100,000 
$
$
Deferred financing costs, netDeferred financing costs, net— (256)(308)
$100,000 $99,744 $99,692 
Deferred financing costs, net
Deferred financing costs, net
$
$
$
(1)Interest rate as of June 30, 2023.March 31, 2024.
(2)Issued by the Company and the Operating Partnership as co-obligors.co-obligors in a private placement.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
Restrictive Covenants
The terms of the 2021 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 June 30, 2023March 31, 2024 and December 31, 2022,2023, 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 26 basis points over the three-month Term SOFR. 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, the 2021 credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of March 31, 2024, including as-of-right extension options, were as follows (in thousands):
Scheduled
Amortization
PrincipalRevolving
Credit
Facility
Unsecured Term LoansTrust
Preferred
Securities
Senior
Unsecured
Notes
TotalJoint
Venture
Debt
Remaining 2024$2,987 $383,243 $— $200,000 $— $— $586,230 $1,488,241 
2025— 370,000 — — — 100,000 470,000 1,739,239 
2026— 190,148 — — — — 190,148 544,400 
2027— 550,000 650,000 1,050,000 — — 2,250,000 1,185,168 
2028— 205,000 — — — — 205,000 — 
Thereafter— — — — 100,000 — 100,000 2,130,300 
$2,987 $1,698,391 $650,000 $1,250,000 $100,000 $100,000 $3,801,378 $7,087,348 
Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):
Three Months Ended March 31,
20242023
Interest expense before capitalized interest$48,869 $64,843 
Interest on financing leases1,120 1,106 
Capitalized interest(17,949)(25,464)
Amortization of discount on assumed debt 1,487 
Interest income(867)(319)
Interest expense, net$31,173 $41,653 
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
Principal Maturities
Combined aggregate principal maturities of mortgages and other loans payable, the 2021 credit facility, the 2022 term loan, trust preferred securities, senior unsecured notes and our share of joint venture debt as of June 30, 2023, including as-of-right extension options, were as follows (in thousands):
Scheduled
Amortization
PrincipalRevolving
Credit
Facility
Unsecured Term LoansTrust
Preferred
Securities
Senior
Unsecured
Notes
TotalJoint
Venture
Debt
Remaining 2023$2,927 $260,149 $— $— $— $— $263,076 $527,899 
20244,488 332,749 — 625,000 — — 962,237 1,299,626 
2025— 370,000 — — — 100,000 470,000 1,604,151 
2026— — — — — — — 362,137 
2027— 550,000 430,000 1,000,000 — — 1,980,000 1,189,059 
Thereafter— — — 50,000 100,000 — 150,000 2,130,404 
$7,415 $1,512,898 $430,000 $1,675,000 $100,000 $100,000 $3,825,313 $7,113,276 
Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Interest expense before capitalized interest$65,932 $32,561 $130,774 $64,613 
Interest on financing leases1,110 1,116 2,216 2,353 
Interest capitalized(26,969)(18,351)(52,433)(36,292)
Amortization of discount on assumed debt1,355 — 2,842 — 
Interest income(807)(366)(1,125)(644)
Interest expense, net$40,621 $14,960 $82,274 $30,030 
10. Related Party Transactions
Cleaning/ Security/ Messenger and Restoration Services
Prior to 2023, Alliance Building Services, or Alliance, and its affiliates, which 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 Board of 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 while Alliance was partially owned by Gary Green prior to 2023, which is included in Other income on the consolidated statements of operations, was $0.7 million and $1.4 million for the three and six months ended June 30, 2022, respectively. We also recorded expenses, inclusive of capitalized expenses, of $4.3 million and $8.6 million for these services (excluding services provided directly to tenants) for the three and six months ended June 30, 2022, respectively.
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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
One Vanderbilt Avenue Investment
In December 2016, we entered into agreements with entities owned and controlled by our Chairman, Chief Executive Officer and CEO,Interim President, Marc Holliday, and our former President, Andrew Mathias, pursuant to which they agreed to make an investment in our One Vanderbilt project (inclusive of the property and SummitSUMMIT 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,a percentage of any profits realized by the Company from its One Vanderbilt project in excess of the Company’sCompany's capital contributions.contributions, of approximately 1.27% and 0.85%, respectively, on account of the property and 1.92% and 1.28%, respectively, on account of SUMMIT One Vanderbilt. The entities havehad no right to any return of capital. Accordingly, subject to previously disclosed repurchase rights, these interests will havehad no value and willthese entities were not entitle these entitiesentitled 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’sCompany'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 equaled 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 have the right to tender their interests in the project upon stabilization (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 7-yearseven-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 a tender of the interests will equal the liquidation value of the interests at the time, with the value being based on the 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 SummitSUMMIT One Vanderbilt) was achieved. Therefore, Messrs. Holiday and Mathias exercised their rights to tender 50% of their interests in the property (but not SummitSUMMIT One Vanderbilt) for liquidation values of $17.9 million and $11.9 million, respectively, which were paid in July 2022. In 2023, stabilization of SUMMIT One Vanderbilt was achieved.
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 three and six months ended June 30,March 31, 2024 and 2023, we recorded $0.7 million and $1.5 million, respectively, of rent expense under the lease. For the three and six months ended June 30, 2022, we recorded $0.7 million and $1.5 million, respectively, of rent expense under the lease. Additionally, in June 2021, we, through a wholly-ownedconsolidated subsidiary, we entered into a lease agreement with the One Vanderbilt Avenue joint venture for SummitSUMMIT One Vanderbilt, which commenced operations in October 2021. For the three and six months ended June 30,March 31, 2024 and 2023, we recorded $7.8$6.3 million and $14.1$6.3 million, respectively, of rent expense under the lease, including percentage rent, of which $5.2$4.1 million and $9.3$4.1 million, respectively, was recognized as income as a component of Equity in net lossincome (loss) from unconsolidated joint ventures in our consolidated statements of operations. ForSee Note 20, "Commitments and Contingencies."
719 Seventh Avenue
In April 2024, the three and six months ended June 30, 2022, we recorded $8.0Company entered into an arms-length arrangement to sell the property at 719 Seventh Avenue for $30.5 million and $17.7 million, respectively, of rent expense under the lease, including percentage rent,to a special purpose entity ("SPE"), of which $5.3our former President and current director, Andrew Mathias, is a partner. No amounts from the transaction will be payable to Mr. Mathias. Mr. Mathias is initially expected to own up to 40% of the equity of the SPE representing an investment by Mr. Mathias of up to approximately $7.0 million in the acquisition of the property. The transaction is subject to customary conditions.
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SL Green Realty Corp. and $11.9 million, respectively, was recognized as income in Equity in net loss from unconsolidated joint ventures in our consolidated statements of operations.SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
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." Amounts due from joint ventures, inclusive of our ownership share of the joint ventures, and related parties as of June 30, 2023March 31, 2024 and December 31, 20222023 consisted of the following (in thousands):
June 30, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
Due from joint venturesDue from joint ventures$28,151 $26,812 
OtherOther804 540 
Related party receivablesRelated party receivables$28,955 $27,352 
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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
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 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 June 30, 2023March 31, 2024 and December 31, 2022,2023, the noncontrolling interest unit holders owned 6.18%6.38%, or 4,238,0194,417,247 units, and 5.39%5.75%, or 3,670,3433,949,448 units, of the Operating Partnership, respectively. As of June 30, 2023, 4,238,019March 31, 2024, 4,417,247 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 a summary of the activity relating to the noncontrolling interests in the Operating Partnership for the sixthree months ended June 30, 2023March 31, 2024 and the twelve months ended December 31, 20222023 (in thousands):
June 30, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
Balance at beginning of periodBalance at beginning of period$269,993 $344,252 
DistributionsDistributions(7,550)(16,272)
Issuance of common unitsIssuance of common units11,308 22,855 
Redemption and conversion of common unitsRedemption and conversion of common units(5,250)(40,901)
Net loss(25,919)(5,794)
Accumulated other comprehensive (loss) income allocation654 5,827 
Net income (loss)
Accumulated other comprehensive income (loss) allocation
Fair value adjustmentFair value adjustment11,198 (39,974)
Balance at end of periodBalance at end of period$254,434 $269,993 
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
Preferred Units of Limited Partnership Interest in the Operating Partnership
Below is a summary of the preferred units of limited partnership interest in the Operating Partnership as of June 30, 2023:March 31, 2024:
IssuanceIssuanceStated 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 IssuanceIssuanceStated 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)
Series A (4)
5.00 %109,161 109,161 109,161 $50.0000 $1,000.00 $— August 2015
Series A (4)
5.00 %109,161 109,161 109,161 109,161 109,161 $$50.0000 $$1,000.00 $$— August 2015August 2015
Series FSeries F7.00 %60 60 60 70.0000 1,000.00 29.12 January 2007Series F7.00 %60 60 60 60 60 70.0000 70.0000 1,000.00 1,000.00 29.12 29.12 January 2007January 2007
Series KSeries K3.50 %700,000 563,954 341,677 0.8750 25.00 134.67 August 2014Series K3.50 %700,000 563,954 563,954 341,677 341,677 0.8750 0.8750 25.00 25.00 134.67 134.67 August 2014August 2014
Series LSeries L4.00 %500,000 378,634 372,634 1.0000 25.00 — August 2014Series L4.00 %500,000 378,634 378,634 372,634 372,634 1.0000 1.0000 25.00 25.00 — — August 2014August 2014
Series RSeries R3.50 %400,000 400,000 400,000 0.8750 25.00 154.89 August 2015Series R3.50 %400,000 400,000 400,000 400,000 400,000 0.8750 0.8750 25.00 25.00 154.89 154.89 August 2015August 2015
Series SSeries S4.00 %1,077,280 1,077,280 1,077,280 1.0000 25.00 — August 2015Series S4.00 %1,077,280 1,077,280 1,077,280 1,077,280 1,077,280 1.0000 1.0000 25.00 25.00 — — August 2015August 2015
Series V (5)
Series V (5)
3.50 %40,000 40,000 40,000 0.8750 25.00 — May 2019
Series V (5)
5.00 %40,000 40,000 40,000 40,000 40,000 1.2500 1.2500 25.00 25.00 — — May 2019May 2019
Series W (6)
Series W (6)
(6)(6)(6)(6)January 2020
Series W (6)
(6)(6)(6)(6)(6)(6)(6)January 2020January 2020
(1)Dividends are cumulative, subject to certain provisions.
(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) the amount shown in the table.
(4)Issued through a consolidated subsidiary. The units 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, after July 15, 2024 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 such, no Subsidiary Series B Preferred Units have been issued as of June 30, 2023.March 31, 2024
(5)The Series V Preferred Units are redeemable at any time after January 1, 2025 at par for cash at the option of the unit holder.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
(6)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 a summary of the activity relating to the preferred units in the Operating Partnership for the sixthree months ended June 30, 2023March 31, 2024 and the twelve months ended December 31, 20222023 (in thousands):
June 30, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
Balance at beginning of periodBalance at beginning of period$177,943 $196,075 
Issuance of preferred unitsIssuance of preferred units — 
Redemption of preferred unitsRedemption of preferred units(11,700)(17,967)
Dividends paid on preferred unitsDividends paid on preferred units(2,893)(6,198)
Accrued dividends on preferred unitsAccrued dividends on preferred units3,151 6,033 
Balance at end of periodBalance at end of period$166,501 $177,943 
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 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of June 30, 2023, 64,387,088March 31, 2024, 64,805,510 shares of common stock and no shares of excess stock were issued and outstanding.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
Share Repurchase Program
In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $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 June 30, 2023,March 31, 2024, share repurchases executed under the program, excluding the redemption of OP units, were as follows:
Period
Shares repurchased(1)
Average 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$76.6936,107,719
PeriodShares repurchasedAverage price paid per shareCumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2023$—36,107,719
Three months ended March 31, 2024$—36,107,719
(1)There were no share repurchases during the six months ended June 30, 2023.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
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. 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 2021,2024, the Company filed a new 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 three and six months ended June 30,March 31, 2024 and 2023, and 2022, respectively (dollars in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
202420242023
Shares of common stock issuedShares of common stock issued6,761 1,762 12,041 2,894 
Dividend reinvestments/stock purchases under the DRSPPDividend reinvestments/stock purchases under the DRSPP$158 $110 $342 $199 
Earnings per Share
We use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the income available to common stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
SL Green's earnings per share for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 are computed as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
NumeratorNumerator2023202220232022Numerator20242023
Basic Earnings:Basic Earnings:
Loss attributable to SL Green common stockholders$(360,194)$(43,876)$(399,925)$(36,125)
Income (loss) attributable to SL Green common stockholders
Income (loss) attributable to SL Green common stockholders
Income (loss) attributable to SL Green common stockholders
Less: distributed earnings allocated to participating securitiesLess: distributed earnings allocated to participating securities(407)(497)(813)(995)
Net loss attributable to SL Green common stockholders (numerator for basic earnings per share)$(360,601)$(44,373)$(400,738)$(37,120)
Net income (loss) attributable to SL Green common stockholders (numerator for basic earnings per share)
Net income (loss) attributable to SL Green common stockholders (numerator for basic earnings per share)
Net income (loss) attributable to SL Green common stockholders (numerator for basic earnings per share)
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable sharesAdd back: dilutive effect of earnings allocated to participating securities and contingently issuable shares (1,103) (806)
Add back: effect of dilutive securities (redemption of units to common shares)Add back: effect of dilutive securities (redemption of units to common shares)(24,081)(2,813)(25,919)(2,321)
Net loss attributable to SL Green common stockholders (numerator for diluted earnings per share)$(384,682)$(48,289)$(426,657)$(40,247)
Add back: effect of dilutive securities (redemption of units to common shares)
Add back: effect of dilutive securities (redemption of units to common shares)
Net income (loss) attributable to SL Green common stockholders (numerator for diluted earnings per share)
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
DenominatorDenominator2023202220232022Denominator20242023
Basic Shares:Basic Shares:
Weighted average common stock outstandingWeighted average common stock outstanding64,102 63,798 64,091 63,987 
Weighted average common stock outstanding
Weighted average common stock outstanding
Effect of Dilutive Securities:Effect of Dilutive Securities:
Operating Partnership units redeemable for common sharesOperating Partnership units redeemable for common shares4,239 4,102 4,172 4,112 
Operating Partnership units redeemable for common shares
Operating Partnership units redeemable for common shares
Stock-based compensation plansStock-based compensation plans 1,120  1,139 
Contingently issuable shares —  184 
Diluted weighted average common stock outstandingDiluted weighted average common stock outstanding68,341 69,020 68,263 69,422 
Diluted weighted average common stock outstanding
Diluted weighted average common stock outstanding
The Company has excluded 1,529,312135,000 and 1,381,5651,275,225 common stock equivalents from the calculation of diluted shares outstanding for the three and six months ended June 30,March 31, 2024 and 2023, respectively, as they were anti-dilutive. The Company has excluded 528,607 and 482,130 common stock equivalents from the calculation of diluted shares outstanding for the three and six months ended June 30, 2022, respectively, as they were anti-dilutive.
13. Partners' Capital of the Operating Partnership
The Company is the sole managing general partner of the Operating Partnership and at June 30, 2023March 31, 2024 owned 64,387,08864,805,510 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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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
Limited Partner Units
As of June 30, 2023,March 31, 2024, limited partners other than SL Green owned 6.18%6.38%, or 4,238,0194,417,247 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 three and six months ended June 30,March 31, 2024 and 2023, and 2022, respectively, are computed as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
NumeratorNumerator2023202220232022Numerator20242023
Basic Earnings:Basic Earnings:
Net loss attributable to SLGOP common unitholders (numerator for diluted earnings per unit)$(383,776)$(46,689)$(425,844)$(38,446)
Net income (loss) attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
Net income (loss) attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
Net income (loss) attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
Less: distributed earnings allocated to participating securitiesLess: distributed earnings allocated to participating securities(906)(497)(813)(995)
Net loss attributable to SLGOP common unitholders (numerator for basic earnings per unit)$(384,682)$(47,186)$(426,657)$(39,441)
Net income (loss) attributable to SLGOP common unitholders (numerator for basic earnings per unit)
Net income (loss) attributable to SLGOP common unitholders (numerator for basic earnings per unit)
Net income (loss) attributable to SLGOP common unitholders (numerator for basic earnings per unit)
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable sharesAdd back: dilutive effect of earnings allocated to participating securities and contingently issuable shares (1,103) (806)
Net loss attributable to SLGOP common unitholders (numerator for diluted earnings per unit)$(384,682)$(48,289)$(426,657)$(40,247)
Net income (loss) attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
Net income (loss) attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
Net income (loss) attributable to SLGOP common unitholders (numerator for diluted earnings per unit)

Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
DenominatorDenominator2023202220232022Denominator20242023
Basic units:Basic units:
Weighted average common units outstandingWeighted average common units outstanding68,341 67,900 68,263 68,099 
Weighted average common units outstanding
Weighted average common units outstanding
Effect of Dilutive Securities:Effect of Dilutive Securities:
Stock-based compensation plansStock-based compensation plans 1,120  1,139 
Contingently issuable units —  184 
Stock-based compensation plans
Stock-based compensation plans
Diluted weighted average common units outstandingDiluted weighted average common units outstanding68,341 69,020 68,263 69,422 
Diluted weighted average common units outstanding
Diluted weighted average common units outstanding
The Operating Partnership has excluded 1,529,312135,000 and 1,381,5651,275,225 common unit equivalents from the diluted units outstanding for the three and six months ended June 30,March 31, 2024 and 2023, respectively, as they were anti-dilutive. The Operating Partnership has excluded 528,607 and 482,130 common unit equivalents from the diluted units outstanding for the three and six months ended June 30, 2022, respectively, as they were anti-dilutive.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
14. Share-based Compensation
We have share-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.
The Fifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2022 and its stockholders in June 2022 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 32,210,000 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 2.59 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 0.84 fungible units per share subject to such awards, and (3) all other awards (e.g., 10-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 fifth amendment and restatement in June 2022 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 32,210,000 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 Board of Directors, new awards may be granted under the 2005 Plan until June 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 June 30, 2023, 5.6March 31, 2024, 3.0 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 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. There were no options granted during the sixthree months ended June 30, 2023March 31, 2024 or the year ended December 31, 2022.2023.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
A summary of the status of the Company's stock options as of June 30, 2023March 31, 2024 and December 31, 2022,2023, and changes during the sixthree months ended June 30, 2023March 31, 2024 and year ended December 31, 20222023 are as follows:
June 30, 2023December 31, 2022
Options OutstandingWeighted Average
Exercise Price
Options OutstandingWeighted Average
Exercise Price
March 31, 2024March 31, 2024December 31, 2023
Options OutstandingOptions OutstandingWeighted Average
Exercise Price
Options OutstandingWeighted Average
Exercise Price
Balance at beginning of periodBalance at beginning of period313,480 $97.59 394,089 $100.56 
Exercised
Exercised
ExercisedExercised  — — 
Lapsed or canceledLapsed or canceled(103,000)77.32 (80,609)112.14 
Balance at end of periodBalance at end of period210,480 $98.60 313,480 $97.59 
Options exercisable at end of periodOptions exercisable at end of period210,480 $98.60 313,480 $97.59 
The remaining weighted average contractual life of the options outstanding was 2.22.7 years and the remaining average contractual life of the options exercisable was 2.22.7 years.
During the three and six months ended June 30, 2023,March 31, 2024, we recognized no compensation expense related to options. During the three and six months ended June 30, 2022,March 31, 2023, we recognized no compensation expense related to options. As of June 30, 2023,March 31, 2024, there was no unrecognized compensation cost related to unvested stock options.
Restricted Shares
Shares aremay be granted to certain employees, including our executives, and vesting occurs upon the completion of a service period or our meeting established financial performance criteria. Vesting occurs at rates ranging from 15% to 35% once performance criteria are reached.
A summary of the Company's restricted stock as of June 30, 2023March 31, 2024 and December 31, 20222023 and changes during the sixthree months ended June 30, 2023March 31, 2024 and the year ended December 31, 2022,2023, are as follows:
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024
March 31, 2024December 31, 2023
Balance at beginning of periodBalance at beginning of period3,758,174 3,459,363 
GrantedGranted13,000 314,995 
Granted
Granted
Canceled
Canceled
CanceledCanceled(1,650)(16,184)
Balance at end of periodBalance at end of period3,769,524 3,758,174 
Balance at end of period
Balance at end of period
Vested during the period
Vested during the period
Vested during the periodVested during the period145,415 118,255 
Compensation expense recordedCompensation expense recorded$3,649,597 $10,133,905 
Compensation expense recorded
Compensation expense recorded
Total fair value of restricted stock granted during the periodTotal fair value of restricted stock granted during the period$483,860 $16,804,931 
Total fair value of restricted stock granted during the period
Total fair value of restricted stock granted during the period
The fair value of restricted stock that vested during the sixthree months ended June 30, 2023March 31, 2024 and the year ended December 31, 20222023 was $10.0$7.1 million and $9.7$10.2 million, respectively. As of June 30, 2023,March 31, 2024, there was $9.3$17.3 million of total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 1.62.2 years.
We granted LTIP Units, which include bonus, time-based and performance-based awards, with a fair value of $37.9$23.7 million and $45.0$38.1 million as of June 30, 2023March 31, 2024 and December 31, 2022,2023, 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 June 30, 2023,March 31, 2024, there was $61.1$42.1 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 1.71.8 years.
During the three and six months ended June 30,March 31, 2024, we recorded compensation expense related to bonus, time-based and performance-based awards of $6.2 million. During the three months ended March 31, 2023, we recorded compensation expense related to bonus, time-based and performance-based awards of $10.6 million and $20.6 million, respectively. During the three and six months ended June 30, 2022, we recorded compensation expense related to bonus, time-based and performance-based awards of $10.3 million and $20.3 million, respectively.$10.0 million.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
For the three and six months ended June 30, 2023,March 31, 2024, $0.3 million and $0.7 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options. For the three and six months ended June 30, 2022, $0.6March 31, 2023, $0.4 million and $0.9 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.
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 sixthree months ended June 30, 2023, 34,666March 31, 2024, 15,945 phantom stock units and 27,73925,590 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $0.2$2.1 million and $2.3$2.1 million during the three and six months ended June 30,March 31, 2024 and 2023, respectively, related to the Deferred Compensation Plan. We recorded compensation expense of $0.4 million and $2.2 million during the three and six months ended June 30, 2022, respectively, related to the Deferred Compensation Plan.
As of June 30, 2023,March 31, 2024, there were 225,659125,654 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.
Employee Stock Purchase Plan
In 2007, the Company's Board of Directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to provide 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 June 30, 2023, 208,881March 31, 2024, 217,081 shares of our common stock had been issued under the ESPP.
15. Accumulated Other Comprehensive Income
The following tables set forth the changes in accumulated other comprehensive income by component as of June 30, 2023March 31, 2024 (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 loss on marketable securitiesTotal
Balance at December 31, 2022$47,800 $2,046 $(242)$49,604 
Net unrealized gain (loss) on derivative instruments (1)
Net unrealized gain (loss) on derivative instruments (1)
SL Green’s share
of joint venture
net unrealized (loss) gain on derivative
instruments (2)
Net unrealized (loss) gain on marketable securitiesTotal
Balance at December 31, 2023
Other comprehensive income before reclassificationsOther comprehensive income before reclassifications25,937 8,961 (1,355)33,543 
Amounts reclassified from accumulated other comprehensive incomeAmounts reclassified from accumulated other comprehensive income(18,451)(6,927)— (25,378)
Balance at June 30, 2023$55,286 $4,080 $(1,597)$57,769 
Balance at March 31, 2024
(1)Amount reclassified from accumulated other comprehensive income is included in interest expense in the respective consolidated statements of operations. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the deferred net gains from these terminated hedges, which is included in accumulated other comprehensive income relating to net unrealized gain (loss) on derivative instruments, was ($0.40.3 million)and ($0.50.4 million), respectively.
(2)Amount reclassified from accumulated other comprehensive income is included in equity in net income (loss) from unconsolidated joint ventures in the respective consolidated statements of operations.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
(2)Amount reclassified from accumulated other comprehensive income is included in equity in net loss 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 as of June 30, 2023March 31, 2024 and December 31, 20222023 (in thousands):
June 30, 2023
TotalLevel 1Level 2Level 3
March 31, 2024March 31, 2024
TotalTotalLevel 1Level 2Level 3
Assets:Assets:
Marketable securities available-for-sale
Marketable securities available-for-sale
Marketable securities available-for-saleMarketable securities available-for-sale$9,797 $— $9,797 $— 
Interest rate cap and swap agreements (included in Other assets)Interest rate cap and swap agreements (included in Other assets)67,060 — 67,060 — 
Liabilities:Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)Interest rate cap and swap agreements (included in Other liabilities)$9,826 $— $9,826 $— 
Interest rate cap and swap agreements (included in Other liabilities)
Interest rate cap and swap agreements (included in Other liabilities)
December 31, 2022
TotalLevel 1Level 2Level 3
December 31, 2023December 31, 2023
TotalTotalLevel 1Level 2Level 3
Assets:Assets:
Marketable securities available-for-sale
Marketable securities available-for-sale
Marketable securities available-for-saleMarketable securities available-for-sale$11,240 $— $11,240 $— 
Interest rate cap and swap agreements (included in Other assets)Interest rate cap and swap agreements (included in Other assets)57,660 — 57,660 — 
Liabilities:Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)Interest rate cap and swap agreements (included in Other liabilities)$10,142 $— $10,142 $— 
Interest rate cap and swap agreements (included in Other liabilities)
Interest rate cap and swap agreements (included in Other liabilities)
We evaluate 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. Allcontracts, all of which are classified as Level 3 inputs.
In June 2023,March 2024, the Company sold a 49.9% interest inentered into an agreement to acquire its 245 Park Avenue investment, which resulted in the Company no longer retaining a controllingpartner's 45.0% interest in the entity, as defined in ASC 810, and deconsolidation10 East 53rd Street joint venture. As a result of the 50.1% interest we retained. Wecontract terms, it was concluded that the joint venture is a VIE in which the Company is the primary beneficiary, and the investment was consolidated in our financial statements. Upon consolidating the entity, the assets and liabilities of the entity were recorded our investment at fair value which resulted in the recognition of a fair value adjustment of ($17.055.7 million) during the three, which is included in Purchase price and six months ended June 30, 2023. Theother fair value adjustments in the consolidated statements of our investmentoperations. This fair value was determined byusing 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 the termssales comparison approach, which utilizes comparable sales, listings, and sales contracts. All of the joint venture agreement.which are classified as Level 3 inputs.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
Marketable securities classified as Level 1 are derived from quoted prices in active markets. The valuation technique used to measure the fair value of 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. 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-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 June 30, 2023March 31, 2024 and December 31, 20222023 (in thousands):
March 31, 2024March 31, 2024December 31, 2023
Carrying Value (1)
Carrying Value (1)
Fair Value
Carrying Value (1)
Fair Value
June 30, 2023December 31, 2022
Carrying Value (1)
Fair Value
Carrying Value (1)
Fair Value
Debt and preferred equity investments
Debt and preferred equity investments
Debt and preferred equity investmentsDebt and preferred equity investments$636,476 (2)$623,280 (2)$352,347 (2)(2)$346,745 (2)(2)
Fixed rate debtFixed rate debt$3,300,165 $3,219,163 $5,015,814 $4,784,691 
Variable rate debt525,148 523,901 520,148 519,669 
$3,825,313 $3,743,064 $5,535,962 $5,304,360 
Fixed rate debt
Fixed rate debt
Variable rate debt (3)
$
(1)Amounts exclude net deferred financing costs.
(2)As of June 30,March 31, 2024, debt and preferred equity investments had an estimated fair value of approximately $0.3 billion. As of December 31, 2023, debt and preferred equity investments had an estimated fair value ranging between $0.5 billion and $0.6of approximately $0.3 billion.
(3)As of DecemberMarch 31, 2022,2024, variable rate debt with a carrying value of $110.5 million and preferred equity investments had an estimated fair value ranging between $0.6 billion and $0.6 billion.of $109.4 million is included in the Company's alternative strategy portfolio.

Disclosures regarding fair value of financial instruments was based on pertinent information available to us as of June 30, 2023March 31, 2024 and December 31, 2022.2023. 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.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
17. Financial Instruments: Derivatives and Hedging
In the normal course of business, we use a variety of commonly used derivative instruments, such asincluding, but not limited to, interest rate swaps, caps, collars 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 sheet 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. 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 as of June 30, 2023March 31, 2024 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).
Notional
Value
Strike
Rate
Effective
Date
Expiration
Date
Balance Sheet LocationFair
Value
Interest Rate Swap$100,000 1.063 %November 2021July 2023Other Assets$336 
Interest Rate Swap200,000 1.033 %November 2021July 2023Other Assets677 
Notional
Value
Notional
Value
Strike
Rate
Effective
Date
Expiration
Date
Balance Sheet LocationFair
Value
Interest Rate CapInterest Rate Cap600,000 4.080 %September 2022September 2023Other Liabilities(1,413)
Interest Rate Cap50,000 3.386 %April 2023September 2023Other Assets219 
Interest Rate Swap200,000 4.739 %November 2022November 2023Other Assets402 
Interest Rate Cap196,717 3.500 %November 2022November 2023Other Assets1,315 
Interest Rate Cap196,717 3.500 %November 2022November 2023Other Liabilities(1,313)
Interest Rate Swap150,000 2.600 %December 2021January 2024Other Assets2,043 
Interest Rate Swap200,000 4.490 %November 2022January 2024Other Assets813 
Interest Rate Swap200,000 4.411 %November 2022January 2024Other Assets893 
Interest Rate CapInterest Rate Cap370,000 3.250 %June 2023June 2024Other Assets7,125 
Interest Rate CapInterest Rate Cap370,000 3.250 %June 2023June 2024Other Liabilities(7,100)
Interest Rate SwapInterest Rate Swap150,000 2.621 %December 2021January 2026Other Assets6,549 
Interest Rate SwapInterest Rate Swap200,000 2.662 %December 2021January 2026Other Assets8,587 
Interest Rate SwapInterest Rate Swap100,000 2.903 %February 2023February 2027Other Assets4,055 
Interest Rate SwapInterest Rate Swap100,000 2.733 %February 2023February 2027Other Assets4,619 
Interest Rate SwapInterest Rate Swap50,000 2.463 %February 2023February 2027Other Assets2,758 
Interest Rate SwapInterest Rate Swap200,000 2.591 %February 2023February 2027Other Assets10,184 
Interest Rate SwapInterest Rate Swap300,000 2.866 %July 2023May 2027Other Assets12,153 
Interest Rate SwapInterest Rate Swap150,000 3.524 %January 2024May 2027Other Assets1,497 
Interest Rate SwapInterest Rate Swap370,000 3.888 %November 2022June 2027Other Assets2,051 
Interest Rate Swap (1)
Interest Rate SwapInterest Rate Swap100,000 3.756 %January 2023January 2028Other Assets784 
$57,234 
Interest Rate Swap
$
(1) Quarterly changes in fair value recognized in the calculation of FFO.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
During the three and six months ended June 30,March 31, 2024, we recorded a gain of $5.2 million based on the changes in the fair value of a forward-starting interest rate swap, which is included in Purchase price and other fair value adjustments in the consolidated statements of operations. During the three months ended March 31, 2023, we recorded a lossgain of $0.4 million and $0.2 million based on the changes in the fair value of an interest rate cap 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 three and six months ended June 30, 2022. During the three and six months ended June 30, 2023,March 31, 2024, we recorded a loss of $0.1 million andless than $0.1 million on the changes in fair value, which is included in interest expense in the consolidated statements of operations. No gains or lossesDuring the three months ended March 31, 2023, we recorded a loss of $0.1 million on the changes in fair value, werewhich is included in interest expense in the consolidated statements of operations during the three and six months ended June 30, 2022.operations.
Certain agreements the Company has with each of its derivative counterparties contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of June 30, 2023,March 31, 2024, 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 $10.8 million.($8.1 million). As of June 30, 2023,March 31, 2024, the Company was not required 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 $10.8$8.5 million as of June 30, 2023.March 31, 2024.
Gains and losses on terminated hedges are included in accumulated other comprehensive income, 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 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 ($49.232.8 million) of the current balance held in accumulated other comprehensive income will be reclassified into interest expense and ($15.17.3 million) of the portion related to our share of joint venture accumulated other comprehensive income will be reclassified into equity in net loss 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 three months ended June 30,March 31, 2024 and 2023, and 2022, respectively (in thousands):
Amount of Gain Recognized in
Other Comprehensive (Loss) Income
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Gain Reclassified from
Accumulated Other
Comprehensive Income into Income
Three Months Ended June 30,Three Months Ended June 30,
Amount of Gain Recognized in
Other Comprehensive (Loss) Income
Location of Gain Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Gain Reclassified from
Accumulated Other
Comprehensive Income into Income
Three Months Ended March 31,Three Months Ended March 31,
DerivativeDerivative20232022Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income20232022
Interest Rate Swaps/CapsInterest Rate Swaps/Caps$45,626 $11,333 Interest expense$10,598 $(1,868)
Interest Rate Swaps/Caps
Interest Rate Swaps/Caps
Share of unconsolidated joint ventures' derivative instrumentsShare of unconsolidated joint ventures' derivative instruments11,036 3,289 Equity in net loss from unconsolidated joint ventures4,742 (833)
$56,662 $14,622 $15,340 $(2,701)
Share of unconsolidated joint ventures' derivative instruments
Share of unconsolidated joint ventures' derivative instruments
$
$
$
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 six months ended June 30, 2023 and 2022, respectively (in thousands):
 Amount of Gain Recognized in
Other Comprehensive (Loss) Income
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Gain Reclassified from
Accumulated Other
Comprehensive Income into Income
Six Months Ended June 30,Six Months Ended June 30,
Derivative2023202220232022
Interest Rate Swaps/Caps$27,713 $39,711 Interest expense$19,621 $(5,734)
Share of unconsolidated joint ventures' derivative instruments9,541 13,596 Equity in net loss from unconsolidated joint ventures7,370 (1,849)
$37,254 $53,307 $26,991 $(7,583)
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)

The following table summarizes the notional value at inception and fair value of our joint ventures' derivative financial instruments as of June 30, 2023March 31, 2024 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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Notional
Value
Strike
Rate
Effective
Date
Expiration
Date
ClassificationFair
Value
Interest Rate Cap$272,000 4.000 %July 2022August 2023Asset$338 
Interest Rate Cap444,711 3.500 %September 2022September 2023Asset1,588 
Interest Rate Cap1,075,000 4.080 %September 2022September 2023Asset2,461 
Interest Rate Cap125,000 4.080 %September 2022September 2023Asset286 
Interest Rate Cap220,000 4.000 %February 2023February 2024Asset1,784 
Interest Rate Cap378,467 0.490 %February 2022May 2024Asset18,340 
Interest Rate Cap378,467 0.490 %February 2022May 2024Asset18,339 
Interest Rate Cap505,412 3.000 %June 2023June 2024Asset10,966 
Interest Rate Swap250,000 3.608 %April 2023February 2026Asset5,095 
Interest Rate Swap250,000 3.608 %April 2023February 2026Asset5,095 
Interest Rate Swap177,000 1.555 %December 2022February 2026Asset12,603 
$76,895 
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
Notional
Value
Strike
Rate
Effective
Date
Expiration
Date
ClassificationFair
Value
Interest Rate Cap$501,650 0.490 %February 2022May 2024Asset$2,560 
Interest Rate Cap501,650 0.490 %February 2022May 2024Asset2,560 
Interest Rate Cap505,412 3.000 %June 2023June 2024Asset2,490 
Interest Rate Cap273,616 4.000 %August 2023August 2024Asset1,212 
Interest Rate Cap514,897 3.500 %September 2023September 2024Asset4,118 
Interest Rate Cap278,161 4.000 %May 2024November 2024Asset1,624 
Interest Rate Cap278,161 4.000 %May 2024November 2024Asset1,624 
Interest Rate Swap250,000 3.608 %April 2023February 2026Asset4,070 
Interest Rate Swap250,000 3.608 %April 2023February 2026Asset4,069 
Interest Rate Swap177,000 1.555 %December 2022February 2026Asset9,459 
$33,786 

18. Lease Income
The Operating Partnership is the lessor and the sublessor to tenants under operating and sales-type leases. The minimum rental amounts due under the leases are generally 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.
The components of lease income from operating leases during the three and six months ended June 30,March 31, 2024 and 2023 and 2022 were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
202420242023
Fixed lease paymentsFixed lease payments$159,437 $136,673 $325,790 $273,255 
Variable lease paymentsVariable lease payments20,294 18,738 40,744 38,293 
Total lease payments (1)
Total lease payments (1)
$179,731 $155,411 $366,534 $311,548 
Amortization of acquired above and below-market leasesAmortization of acquired above and below-market leases6,214 (179)14,453 (285)
Total rental revenueTotal rental revenue$185,945 $155,232 $380,987 $311,263 
(1)Amounts include $48.9$48.4 million and $97.8$48.9 million of sublease income during the three and six months ended June 30,March 31, 2024 and 2023, and $58.0 million and $114.2 million of sublease income during the three and six months ended June 30, 2022, respectively.
The components of lease income from sales-type leases during the three and six months ended June 30,March 31, 2024 and 2023 and 2022 were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Interest income (1)
$1,109 $1,095 $2,215 $2,187 
Three Months Ended March 31,
20242023
Interest income (1)
$1,120 $1,106 
(1)These amounts are included in Other income in our consolidated statements of operations.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023
(unaudited)
19. Commitments and Contingencies
Legal Proceedings
As of June 30, 2023,March 31, 2024, 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.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2024
(unaudited)
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.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
June 30, 2023March 31, 2024
(unaudited)
20. Segment Information
The Company has twothree reportable segments, real estate, and debt and preferred equity investments. investments, and SUMMIT. In the fourth quarter of 2023, due to quantitative thresholds, SUMMIT was identified as a reportable segment. As such, prior period segment data has been restated to reflect SUMMIT as a reportable segment for comparative purposes.
We evaluate real estate performance and allocate resources based on earnings contributions.
The primary sources of revenue are generated from tenant rents, 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. See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments. SUMMIT currently operates one location at One Vanderbilt Avenue in midtown Manhattan with the primary source of revenue generated from ticket sales.
Selected consolidated results of operations for the three and six months ended June 30,March 31, 2024 and 2023, and 2022, and selected asset information as of June 30, 2023March 31, 2024 and December 31, 2022,2023, regarding our operating segments are as follows (in thousands):
Real Estate SegmentDebt and Preferred Equity SegmentTotal Company
Total revenues
Three months ended:
June 30, 2023$211,967 $9,103 $221,070 
June 30, 2022$181,038 $20,407 $201,445 
Six months ended:
June 30, 2023$426,485 $18,160 $444,645 
June 30, 2022$349,114 $40,295 $389,409 
Net (loss) income
Three months ended:
June 30, 2023$(378,422)$(806)$(379,228)
June 30, 2022$(53,408)$15,459 $(37,949)
Six months ended:
June 30, 2023$(423,723)$6,138 $(417,585)
June 30, 2022$(56,890)$32,426 $(24,464)
Total assets
As of:
June 30, 2023$9,400,102 $641,186 $10,041,288 
December 31, 2022$11,727,418 $628,376 $12,355,794 
Real Estate SegmentSUMMIT SegmentDebt and Preferred Equity SegmentTotal Company
Total revenues
Three months ended:
March 31, 2024$154,875 $25,604 $7,403 $187,882 
March 31, 2023$216,936 $19,771 $9,057 $245,764 
Net income (loss)
Three months ended:
March 31, 2024$12,727 $4,453 $1,209 $18,389 
March 31, 2023$(42,883)$(2,418)$6,944 $(38,357)
Total assets
As of:
March 31, 2024$8,946,952 $465,787 $351,553 $9,764,292 
December 31, 2023$8,716,738 $464,799 $349,644 $9,531,181 
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 because that segment does not have dedicated personnel and the use of personnel and resources is dependent on transaction volume between the twothree segments, andwhich varies between periods. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. SUMMIT segment incurs its own marketing, general and administrative expenses for its dedicated personnel, which are included in SUMMIT Operator expenses in the consolidated statement of operations. For the three and six months ended June 30,March 31, 2024, marketing, general and administrative expenses totaled $21.3 million. For the three months ended March 31, 2023, marketing, general and administrative expenses totaled $23.0 million and $46.3 million. For the three months ended June 30, 2022, marketing, general and administrative expenses totaled $23.5 million and $48.3$23.3 million. All other expenses, except interest and SUMMIT operator expenses, relate entirely to the real estate assets.
There were no transactions between the above two segments.three segments other than the SUMMIT lease with our One Vanderbilt Avenue joint venture, which is part of the real estate segment. See Note 10, "Related Party Transactions."
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ITEM 2. 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, primarily engaged in the ownership, management, operation, acquisition, development, redevelopment repositioning, ownership, management and operationrepositioning of commercial real estate properties, principally office properties, located in the New York metropolitan 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.
The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements appearing in this Quarterly Report on this Form 10-Q and in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2022.2023.
As of June 30, 2023,March 31, 2024, 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
Consolidated
Location
Location
LocationLocationProperty
Type
Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Weighted Average Leased Occupancy (1) (unaudited)Property
Type
Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Weighted Average Leased Occupancy (1) (unaudited)
Commercial:Commercial:
ManhattanManhattanOffice13 8,399,141 12 15,412,174 25 23,811,315 88.9 %
Manhattan
ManhattanOffice14 8,753,441 10 13,009,149 24 21,762,590 88.6 %
RetailRetail22,648 12,946 35,594 100.0 %
Development/RedevelopmentDevelopment/Redevelopment(2)880,771 1,959,426 2,840,197 N/A
Retail(2)17,888 294,865 10 312,753 91.0 %
Development/Redevelopment(1)1,466,419 3,115,241 4,581,660 N/A
19 9,883,448 24 18,822,280 43 28,705,728 N/A
17
17
17 9,656,860 13 14,981,521 30 24,638,381 88.6 %
SuburbanSuburbanOffice862,800 — — 862,800 78.4 %SuburbanOffice862,800 862,800 — — — — 862,800 862,800 73.8 73.8 %
Total commercial propertiesTotal commercial properties26 10,746,248 24 18,822,280 50 29,568,528 N/A
Total commercial properties
Total commercial properties24 10,519,660 13 14,981,521 37 25,501,181 88.0 %
Residential:Residential:
ManhattanManhattanResidential(2)140,382 — — 140,382 96.7 %
Manhattan
ManhattanResidential(2)140,382 221,884 362,266 99.6 %
Total portfolio27 10,886,630 24 18,822,280 51 29,708,910 N/A
Total core portfolio
Total core portfolio
Total core portfolio25 10,660,042 14 15,203,405 39 25,863,447 88.2 %
Alternative Strategy Portfolio
Alternative Strategy Portfolio
Alternative Strategy Portfolio17,888 3,694,956 10 3,712,844 66.1 %
(1)The weighted average leased occupancy for commercial properties represents the total leased square footage divided by the total square footage at acquisition.  The weighted average leased occupancy for residential properties represents the total leased units divided by the total available units. Properties under construction are not included in the calculation of weighted average leased occupancy.
(2)As of June 30, 2023,March 31, 2024, 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.
As of June 30, 2023,March 31, 2024, we also managed one office building and one retail building owned by a third partyparties encompassing approximately 0.30.4 million square feet (unaudited), and held debt and preferred equity investments with a book value excluding the impact of credit losses of $636.5$352.3 million, excluding approximately $8.54.8 million of debt and preferred equity investments and other financing receivables that are included in other balance sheet line items other than the Debt and preferred equity investments line item.
Critical Accounting Policies and Estimates
Refer to the 20222023 Annual Report on Form 10-K of the Company and the Operating Partnership for a discussion of our critical accounting policies and estimates, which include investment in commercial real estate properties, investment in unconsolidated joint ventures, lease classification, revenue recognition, and debt and preferred equity investments. During the three and six months ended June 30, 2023,March 31, 2024, there were no material changes to these policies.
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Results of Operations
Comparison of the three months ended June 30, 2023March 31, 2024 to the three months ended June 30, 2022March 31, 2023
The following comparison for the three months ended June 30, 2023,March 31, 2024, or 2023,2024, to the three months ended June 30, 2022,March 31, 2023, or 2022,2023, makes reference to the effect of the following:
i.“Same-Store Properties,” which represents all operating properties owned by us at January 1, 20222023 and still owned by us in the same manner as of June 30, 2023March 31, 2024 (Same-Store Properties totaled 20totaled 21 of our 27 consolidated operating buildings)properties),
ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 20232024 and 20222023 and all non-Same-Store Properties, including properties that are under development, redevelopment or redevelopment,were deconsolidated during the period,
iii."Disposed Properties," which represents all properties or interests in properties sold or partially sold in 20232024 and 2022,2023,
iv."Alternative Strategy Portfolio," which represents non-core assets, and
iv.v.“Other,” which represents properties where wethat were partially 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 Same-StoreDisposedOtherConsolidated
(in millions)(in millions)20232022$
Change
%
Change
202320222023202220232022$
Change
%
Change
(in millions)20242023$
Change
%
Change
202420232024202320242023$
Change
%
Change
Rental revenueRental revenue$135.7 $139.6 $(3.9)(2.8)%$— $— $50.2 $15.6 $185.9 $155.2 $30.7 19.8 %
Rental revenue
Rental revenue$134.6 $142.6 $(8.0)(5.6)%$— $— $6.9 $52.4 $141.5 $195.0 $(53.5)(27.4)%
SUMMIT Operator revenueSUMMIT Operator revenue— — — — %— — 25.6 19.8 25.6 19.8 5.8 — %
Investment incomeInvestment income— — — — %— — 9.1 20.4 9.1 20.4 (11.3)(55.4)%Investment income— — — — — — — %— — — 7.4 7.4 9.1 9.1 7.4 7.4 9.1 9.1 (1.7)(1.7)(18.7)(18.7)%
Other incomeOther income0.1 0.8 (0.7)(87.5)%— 5.0 25.9 20.0 26.0 25.8 0.2 0.8 %Other income1.2 0.7 0.7 0.5 0.5 71.4 71.4 %— — — 12.2 12.2 21.2 21.2 13.4 13.4 21.9 21.9 (8.5)(8.5)(38.8)(38.8)%
Total revenuesTotal revenues135.8 140.4 (4.6)(3.3)%— 5.0 85.2 56.0 221.0 201.4 19.6 9.7 %Total revenues135.8 143.3 143.3 (7.5)(7.5)(5.2)(5.2)%— — — 52.1 52.1 102.5 102.5 187.9 187.9 245.8 245.8 (57.9)(57.9)(23.6)(23.6)%
Property operating expensesProperty operating expenses66.0 64.8 1.2 1.9 %— 0.2 27.4 11.7 93.4 76.7 16.7 21.8 %
Property operating expenses
Property operating expenses70.4 71.9 (1.5)(2.1)%— 0.2 11.3 27.5 81.7 99.6 (17.9)(18.0)%
SUMMIT Operator expensesSUMMIT Operator expenses— — — — %— — 21.9 20.7 21.9 20.7 1.2 — %
Transaction related costsTransaction related costs— — — — %— — — — — — — 100.0 %Transaction related costs— — — — — — — %— — — — — 0.9 0.9 — — 0.9 0.9 (0.9)(0.9)(100.0)(100.0)%
Marketing, general and administrativeMarketing, general and administrative— — — — %— — 23.0 23.5 23.0 23.5 (0.5)(2.1)%Marketing, general and administrative— — — — — — — %— — — 21.3 21.3 23.3 23.3 21.3 21.3 23.3 23.3 (2.0)(2.0)(8.6)(8.6)%
66.0 64.8 1.2 1.9 %— 0.2 50.4 35.2 116.4 100.2 16.2 16.2 %
70.4 70.4 71.9 (1.5)(2.1)%— 0.2 54.5 72.4 124.9 144.5 (19.6)(13.6)%
Other income (expenses):Other income (expenses):
Other income (expenses):
Other income (expenses):
Interest expense and amortization of deferred financing costs, net of interest incomeInterest expense and amortization of deferred financing costs, net of interest income(42.8)(16.9)(25.9)153.3 %
Interest expense and amortization of deferred financing costs, net of interest income
Interest expense and amortization of deferred financing costs, net of interest income(32.7)(43.7)11.0 (25.2)%
SUMMIT Operator tax expenseSUMMIT Operator tax expense1.3 (1.3)2.6 (200.0)%
Depreciation and amortizationDepreciation and amortization(69.1)(46.9)(22.2)47.3 %Depreciation and amortization(48.6)(78.8)(78.8)30.2 30.2 (38.3)(38.3)%
Equity in net loss from unconsolidated joint ventures(21.9)(4.6)(17.3)376.1 %
Equity in net loss on sale of interest in unconsolidated joint venture/real estate— (0.1)0.1 (100.0)%
Equity in net income (loss) from unconsolidated joint venturesEquity in net income (loss) from unconsolidated joint ventures111.2 (7.4)118.6 (1,602.7)%
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estateEquity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate26.8 (0.1)26.9 (26,900.0)%
Purchase price and other fair value adjustmentsPurchase price and other fair value adjustments(17.4)(6.2)(11.2)180.6 %Purchase price and other fair value adjustments(50.5)0.2 0.2 (50.7)(50.7)(25,350.0)(25,350.0)%
Loss on sale of real estate, netLoss on sale of real estate, net(26.7)(64.4)37.7 (58.5)%Loss on sale of real estate, net— (1.7)(1.7)1.7 1.7 (100.0)(100.0)%
Depreciable real estate reserves and impairmentDepreciable real estate reserves and impairment(305.9)— (305.9)100.0 %Depreciable real estate reserves and impairment(52.1)— — (52.1)(52.1)100.0 100.0 %
Loan loss and other investment reserves, net of recoveries
Loan loss and other investment reserves, net of recoveries
Loan loss and other investment reserves, net of recoveries— (6.9)6.9 (100.0)%
Net income (loss)
Net loss$(379.2)$(37.9)$(341.3)900.5 %
Net income (loss)
Net income (loss)$18.4 $(38.4)$56.8 (147.9)%
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Rental Revenue
Rental revenues increaseddecreased due primarily due to the acquisitiondeconsolidation of 245 Park Avenue ($40.8 million) as a result of the sale of a joint venture interest during the thirdsecond quarter of 20222023 and a lower contribution from our Same-Store Properties ($36.38.0 million). due primarily to increased vacancy at 555 West 57th Street.
The following table presents a summary of the commenced leasing activity for the three months ended June 30, 2023March 31, 2024 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)
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)
ManhattanManhattan       Manhattan  
Space available at beginning of the periodSpace available at beginning of the period2,808,184      Space available at beginning of the period2,906,493     
Property in redevelopment— 
Property out of redevelopment— 
Space which became available during the period (3)
Space which became available during the period (3)
     
• Office(4)268,960       
• Retail1,456       
Space which became available during the period (3)
Space which became available during the period (3)
   
• Office• Office541,719  
• Storage
• Storage
• Storage• Storage801       1,831   
271,217        543,550   
Total space availableTotal space available3,079,401       Total space available3,450,043   
Leased space commenced during the period:Leased space commenced during the period:       Leased space commenced during the period:  
• Office(4)
• Office(4)
248,837 269,784 $74.74 $73.14 $64.18 9.0 6.0 
• Retail• Retail2,901 2,895 $259.07 $— $863.56 8.2 15.7 
• Storage• Storage1,419 1,429 $32.48 $5.91 $— — 4.3 
Total leased space commencedTotal leased space commenced253,157 274,108 $76.47 $72.90 $72.29 9.0 6.1 
Total available space at end of periodTotal available space at end of period2,826,244       
Total available space at end of period
Total available space at end of period3,269,814  
Early renewalsEarly renewals      
• Office132,522 144,468 $84.80 $85.58 $21.88 3.7 4.8 
• Retail298 392 $123.42 $119.17 $— — 7.0 
Early renewals
Early renewals   
• Office(4)
• Storage
• Storage
• Storage• Storage1,314 1,394 $32.20 $32.33 $— — 2.1 
Total early renewalsTotal early renewals134,134 146,254 $84.40 $85.16 $21.61 3.6 4.7 
Total commenced leases, including replaced previous vacancyTotal commenced leases, including replaced previous vacancy  
Total commenced leases, including replaced previous vacancy
Total commenced leases, including replaced previous vacancy
• Office
• Office
• Office• Office414,252 $78.25 $78.00 $49.43 7.2 5.6
• Retail• Retail 3,287 $242.89 $119.17 $760.57 7.2 14.6
• Storage• Storage 2,823 $32.34 $22.69 $— — 3.2 
Total commenced leasesTotal commenced leases 420,362 $79.23 $77.71 $54.66 7.1 5.6 
(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.
(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 $75.08$64.80 per rentable square feet for 225,43888,734 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $78.88$75.11 per rentable square feet for 369,906280,879 rentable square feet.

SUMMIT Operator revenue
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SUMMIT Operator revenues were higher for the three months ended March 31, 2024 as compared to the same period in 2023 due primarily to increased attendance.
Investment Income
Investment income decreased due to a lower weighted average debt and preferred equity investment balance and lower weighted average yield for the three months ended June 30, 2023March 31, 2024 as compared to the same period in 2022.2023. For the three months ended June 30, 2023,March 31, 2024, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $645.8$366.8 million and 5.8%7.8%, respectively, as compared to $1.1 billion$635.7 million and 7.3%5.8%, respectively, for the three months ended June 30, 2022.March 31, 2023.
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Other Income
Other income increaseddecreased due primarily to reduced lease termination income ($6.5 million), lower consulting fee income related to the 49.9% interest sale of 245 Park Avenue ($4.7 million), SUMMIT One Vanderbilt operations ($4.31.2 million) and an increasea decrease in special servicingmanagement and construction fee income ($3.60.9 million) duringfor the three months ended June 30, 2023. This increase was offset by income relatedMarch 31, 2024 as compared to the resolution of the Company's investment in 1591-1597 Broadway ($5.0 million) and fee income related to the acquisition of 450 Park Avenue ($4.7 million) that was recognized during the three months ended June 30, 2022.March 31, 2023.
Property Operating Expenses
Property operating expenses increaseddecreased due primarily due to acquiringthe deconsolidation of 245 Park Avenue in the thirdsecond quarter of 20222023 ($12.714.6 million), increased and reduced variable expenses at our Acquired Properties ($1.21.7 million), and increased real estate taxes at our Same-Store Properties ($1.1 million).Properties.
SUMMIT Operator expenses
SUMMIT Operator expenses were higher for the three months ended March 31, 2024 as compared to the same period in 2023 due to additional operating hours to accommodate demand, which increased variable costs such as labor, security, cleaning and maintenance costs.
Marketing, General and Administrative Expenses
Marketing, general and administrative expenses decreased to $23.0$21.3 million for the three months ended June 30, 2023, asMarch 31, 2024, compared to $23.5$23.3 million for the same period in 20222023, due to lower compensation related expenses.
Interest Expense and Amortization of Deferred Financing Costs, Net of Interest Income
Interest expense and amortization of deferred financing costs, net of interest income, increaseddecreased due to an increase in LIBOR and SOFR, acquiringthe deconsolidation of 245 Park Avenue in the thirdsecond quarter of 20222023 ($14.716.5 million), higher interest expense from and the repayment of unsecured corporate term loans ($9.21.9 million) in the third quarter of 2023. These decreases were offset primarily by higher SOFR and increased interest expense from the revolving credit facility ($6.64.1 million) due to an increasea higher balance, and a decrease in balances outstandinginterest capitalization in connection with properties that are under development ($2.2 million) during the three months ended June 30, 2023March 31, 2024 as compared to the three months ended June 30, 2022. These increases were offset primarily by repayments of unsecured bonds ($7.2 million) in the third and fourth quarters of 2022.March 31, 2023. The weighted average consolidated debt balance outstanding was $5.5$3.6 billion for the three months ended June 30, 2023,March 31, 2024, compared to $4.0$5.6 billion for the three months ended June 30, 2022.March 31, 2023. The consolidated weighted average interest rate was 4.59%5.19% for the three months ended June 30, 2023,March 31, 2024, as compared to 3.23%4.41% for the three months ended June 30, 2022.March 31, 2023.
SUMMIT Operator tax expense
The decrease in SUMMIT Operator tax expense for three months ended March 31, 2024 as compared to the same period in 2023 was attributable to a 2023 tax adjustment recorded in 2024.
Depreciation and Amortization
Depreciation and amortization increaseddecreased due primarily due to acquiringthe deconsolidation of 245 Park Avenue in the thirdsecond quarter of 20222023 ($20.328.2 million). as well as at our Acquired Properties ($2.5 million) during the three months ended March 31, 2024.
Equity in net lossincome (loss) from unconsolidated joint ventures
Equity in net lossincome (loss) from unconsolidated joint ventures increased due primarily as a result ofto increased interest expense across our joint venture portfolio ($13.6 million) and a decrease in income from operations at 919 Third Avenue ($4.5 million) and 450 Park Avenue ($2.1 million). This was partially offset by an increase in lease termination income at 2 Herald Square ($4.0121.4 million). as a result of the $141.7 million gain on discounted debt extinguishment at the property during the three months ended March 31, 2024, as compared to the same period in 2023, which included $20.3 million of income recognized for holdover rent, interest and reimbursement of attorneys' fees collected following the completion of legal proceedings against a former tenant and its guarantor. This increase was partially offset by a reduction of income at 919 Third Avenue ($5.0 million) due primarily to a reduction in lease termination income and increased interest expense.
Equity in net lossgain (loss) on sale of interest in unconsolidated joint venture/real estate
During the three months ended June 30, 2023,March 31, 2024, we did not sell any joint venture interests.recognized a gain on the sale of our interest in 717 Fifth Avenue ($26.9 million). During the three months ended June 30, 2022,March 31, 2023, we recognized a loss on the sale of our interest in the Stonehenge Portfolio.121 Greene Street ($0.3 million).
Purchase price and other fair value adjustments
During the three months ended June 30, 2023,March 31, 2024, we recorded a $17.0$55.7 million negative fair value adjustment relating to the 50.1% interest we retained in 245 Park Avenue, which was deconsolidated whenconsolidation of 10 East 53rd Street, partially offset by a 49.9% joint venture interest was sold.$5.2 million positive fair value adjustment related to a derivative that is not designated as a hedge. During the three months ended June 30, 2022,March 31, 2023, we recorded a $6.2 milliondid not record any significant purchase price and other fair value adjustment related to an investment in marketable securities.
Loss on sale of real estate, net
During the three months ended June 30, 2023, we recognized a loss on the sale of a 49.9% joint venture interest in 245 Park Avenue ($28.3 million). During the three months ended June 30, 2022, we recognized a loss on the sale of 609 Fifth Avenue ($80.2 million) offset by a gain on the sale of 1080 Amsterdam Avenue ($17.9 million).adjustments.
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Depreciable real estate reserves and impairment
During the three months ended June 30, 2023,March 31, 2024, we recognized depreciable real estate reserves and impairments at 719 Seventh Avenue ($46.3 million) to reduce the carrying value of our investment to the sale price per the contract that was entered into in April 2024. In addition, we recognized depreciable real estate reserves and impairments related to our investment at 625 Madison Avenue ($305.95.9 million) following a strategic review, which remained under contract for sale as of the property that addresses a range of relevant considerations, including the increase in ground rent to an amount substantially above what the Company believes is appropriate.March 31, 2024. During the three months ended June 30, 2022, we did not recognize any depreciable real estate reserves.
Comparison of the six months ended June 30,March 31, 2023, to the six months ended June 30, 2022
The following comparison for the six months ended June 30, 2023, or 2023, to the six months ended June 30, 2022, or 2022, makes reference to the effect of the following:
i.“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2022 and still owned by us in the same manner as of June 30, 2023 (Same-Store Properties totaled 20 of our 27 consolidated operating properties),
ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2023 and 2022 and all non-Same-Store Properties, including properties that are under development, redevelopment or were deconsolidated during the period,
iii."Disposed Properties," which represents all properties or interests in properties sold or partially sold in 2023 and 2022, and
iv.“Other,” which represents properties that were partially sold resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.
 Same-StoreDisposedOtherConsolidated
(in millions)20232022$
Change
%
Change
202320222023202220232022$
Change
%
Change
Rental revenue$275.3 $280.3 $(5.0)(1.8)%$— $0.9 $105.7 $30.1 $381.0 $311.3 $69.7 22.4 %
Investment income— — — — %— — 18.2 40.3 18.2 40.3 (22.1)(54.8)%
Other income0.8 1.0 (0.2)(20.0)%— 10.4 44.7 26.5 45.5 37.9 7.6 20.1 %
Total revenues276.1 281.3 (5.2)(1.8)%— 11.3 168.6 96.9 444.7 389.5 55.2 14.2 %
Property operating expenses135.6 129.6 6.0 4.6 %0.2 1.6 57.6 25.7 193.4 156.9 36.5 23.3 %
Transaction related costs— — — — %— — 0.9 — 0.9 — 0.9 100.0 %
Marketing, general and administrative— — — — %— — 46.3 48.3 46.3 48.3 (2.0)(4.1)%
135.6 129.6 6.0 4.6 %0.2 1.6 104.8 74.0 240.6 205.2 35.4 17.3 %
Other income (expenses):
Interest expense and amortization of deferred financing costs, net of interest income(86.4)(33.9)(52.5)154.9 %
Depreciation and amortization(147.6)(93.9)(53.7)57.2 %
Equity in net loss from unconsolidated joint ventures(29.3)(9.3)(20.0)215.1 %
Equity in net loss on sale of interest in unconsolidated joint venture/real estate(0.1)(0.1)— — %
Purchase price and other fair value adjustments(17.2)(6.2)(11.0)177.4 %
Loss on sale of real estate, net(28.3)(65.4)37.1 (56.7)%
Depreciable real estate reserves and impairment(305.9)— (305.9)100.0 %
Loan loss and other investment reserves, net of recoveries(6.9)— (6.9)100.0 %
Net loss$(417.6)$(24.5)$(393.1)1,604.5 %
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Rental Revenue
Rental revenues increased primarily due to the acquisition of 245 Park Avenue during the third quarter of 2022 ($77.0 million).
The following table presents a summary of the commenced leasing activity for the six months ended June 30, 2023 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 period2,264,333      
Property out of redevelopment51,490 
Property in redevelopment(56,718)
Space which became available during the period (3)
     
•       Office951,356       
•       Retail29,766       
•       Storage7,497       
 988,619       
Total space available3,247,724       
Leased space commenced during the period:       
•       Office(4)
415,382 449,982 $76.10 $75.00 $65.19 7.7 6.3 
•       Retail2,901 2,895 $259.07 $— $863.56 8.2 15.7 
•       Storage3,197 5,258 $31.00 $15.47 $— 5.2 13.4 
Total leased space commenced421,480 458,135 $76.74 $74.21 $69.48 7.7 6.5 
Total available space at end of period2,826,244       
Early renewals      
•       Office380,734 428,383 $69.35 $66.61 $30.09 3.9 5.5 
•       Retail8,391 9,517 $136.43 $128.98 $— — 7.0 
•       Storage5,146 5,554 $31.46 $33.07 $— 3.6 6.0 
Total early renewals394,271 443,454 $70.32 $67.53 $29.07 3.9 5.5 
Total commenced leases, including replaced previous vacancy  
•       Office878,365 $72.81 $70.24 $48.07 5.9 5.9 
•       Retail 12,412 $165.04 $128.98 $201.42 1.9 9.0 
•       Storage 10,812 $31.24 $25.28 $— 4.4 9.6 
Total commenced leases901,589 $73.58 $70.38 $49.61 5.8 6.0 
(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.
(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 $76.74 per rentable square feet for 325,564 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $72.54 per rentable square feet for 753,947 rentable square feet.
Investment Income
Investment income decreased due to a lower weighted average debt and preferred equity investment balance and lower weighted average yield for the six months ended June 30, 2023 as compared to the same period in 2022. For the six months ended June 30, 2023, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $0.6 million and 5.8%, respectively, as compared to $1.1 million and 7.3%, respectively, for the six months ended June 30, 2022.
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Other Income
Other income increased due to SUMMIT One Vanderbilt operations ($10.1 million), fee income related to the 49.9% joint venture interest sale of 245 Park Avenue ($4.7 million), an increase in special servicing income ($2.0 million), and lease termination income ($1.1 million) during the six months ended June 30, 2023 as compared to the six months ended June 30, 2022. This increase was offset by income related to the resolution of the Company's investment in 1591-1597 Broadway ($5.0 million) and fee income related to the acquisition of 450 Park Avenue ($4.7 million) during the six months ended June 30, 2022.
Property Operating Expenses
Property operating expenses increased primarily due to acquiring 245 Park Avenue in the third quarter of 2022 ($27.2 million), increased variable expenses ($3.7 million) and real estate taxes ($2.3 million) at our Same-Store Properties, and increased variable expenses at our Acquired Properties ($2.2 million).
Marketing, General and Administrative Expenses
Marketing, general and administrative expenses decreased to $46.3 million for the six months ended June 30, 2023, compared to $48.3 million for the same period in 2022, due to lower compensation related expenses.
Interest Expense and Amortization of Deferred Financing Costs, Net of Interest Income
Interest expense and amortization of deferred financing costs, net of interest income, increased due to an increase in LIBOR and SOFR, acquiring 245 Park Avenue in the third quarter of 2022 ($29.9 million), higher interest expense from unsecured corporate term loans ($18.2 million) and the revolving credit facility ($12.5 million) due to an increase in balances outstanding during the six months ended June 30, 2023 as compared to the six months ended June 30, 2022, and the refinancing of 100 Church ($6.4 million) in the second quarter of 2022. These increases were offset primarily by repayments of unsecured bonds ($14.4 million) in the third and fourth quarters of 2022. The weighted average consolidated debt balance outstanding was $5.6 billion for the six months ended June 30, 2023, compared to $4.1 billion for the six months ended June 30, 2022. The consolidated weighted average interest rate was 4.51% for the six months ended June 30, 2023, as compared to 3.12% for the six months ended June 30, 2022.
Depreciation and Amortization
Depreciation and amortization increased primarily due to acquiring 245 Park Avenue in the third quarter of 2022 ($48.5 million).
Equity in net loss from unconsolidated joint ventures
Equity in net loss from unconsolidated joint ventures increased primarily as a result of increased interest expense across our joint venture portfolio ($27.0 million) and a decrease in income from operations at 919 Third Avenue ($4.2 million), 450 Park Avenue ($3.9 million) and 1515 Broadway ($2.9 million). This was offset by an increase in income from operations at 2 Herald Square ($21.2 million) primarily due to holdover rent, interest, settlement income, lease termination income and reimbursement of attorneys' fees collected following the completion of legal proceedings against a former tenant and its guarantor.
Equity in net loss on sale of interest in unconsolidated joint venture/real estate
During the six months ended June 30, 2023, we recognized a loss on the sale of our interest in 121 Greene Street ($0.3 million). During the six months ended June 30, 2022, we recognized a loss on the sale of our interest in the Stonehenge Portfolio.
Purchase price and other fair value adjustments
During the six months ended June 30, 2023, we recorded a $17.0 million fair value adjustment relating to the 50.1% interest we retained in 245 Park Avenue, which was deconsolidated when a 49.9% joint venture interest was sold. During the six months ended June 30, 2022, we recorded a $6.2 million fair value adjustment related to an investment in marketable securities.
Loss on sale of real estate, net
During the six months ended June 30, 2023, we recognized a loss on the sale of a 49.9% joint venture interest in 245 Park Avenue ($28.3 million). During the six months ended June 30, 2022, we recognized losses on the sales of 609 Fifth Avenue ($80.2 million) and 707 Eleventh Avenue ($0.8 million), offset by a gain on the sale of 1080 Amsterdam Avenue ($17.9 million).
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Depreciable real estate reserves and impairment
During the six months ended June 30, 2023, we recognized depreciable real estate reserves and impairments related to 625 Madison Avenue ($305.9 million) following a strategic review of the property that addresses a range of relevant considerations, including the increase in ground rent to an amount substantially above what the Company believes is appropriate. During the six months ended June 30, 2022, we did not recognize any depreciable real estate reserves.
Loan loss and other investment reserves, net of recoveries
During the sixthree months ended June 30, 2023, we recorded $6.9 million of loan loss reserve on one debt and preferred equity investment. During the six months ended June 30, 2022,March 31, 2024, we did not recognize any loan loss and other investment reserves. During the three months ended March 31, 2023, we recorded a $6.9 million loan loss reserve on one debt and preferred equity investment.
Liquidity and Capital Resources
We currently expect that the 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, share repurchases,repurchase, dividends to shareholders, distributions to unitholders, repurchases or repayments of outstanding indebtedness, acquisitions and for debt and preferred equity investments will include:
(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. We alsoAdditionally, we believe that our debt and preferred equity investment program will continue to serve as a supplemental source of operating cash flow.
The combined aggregate principal maturities of mortgages and other loans payable, the 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 June 30, 2023March 31, 2024 are as follows (in thousands):
Remaining 20232024202520262027ThereafterTotal
Remaining 2024Remaining 20242025202620272028ThereafterTotal
Property mortgages and other loansProperty mortgages and other loans$263,076 $337,237 $370,000 $— $550,000 $— $1,520,313 
Revolving credit facilityRevolving credit facility— — — — 430,000 — 430,000 
Unsecured term loansUnsecured term loans— 625,000 — — 1,000,000 50,000 1,675,000 
Senior unsecured notesSenior unsecured notes— — 100,000 — — — 100,000 
Trust preferred securitiesTrust preferred securities— — — — — 100,000 100,000 
Financing leasesFinancing leases1,569 3,180 3,228 3,276 3,325 200,169 214,747 
Operating leasesOperating leases27,147 58,068 58,207 58,347 58,358 1,334,570 1,594,697 
Estimated interest expenseEstimated interest expense88,630 144,093 109,002 82,123 24,310 35,860 484,018 
Joint venture debtJoint venture debt527,899 1,299,626 1,604,151 362,137 1,189,059 2,130,404 7,113,276 
TotalTotal$908,321 $2,467,204 $2,244,588 $505,883 $3,255,052 $3,851,003 $13,232,051 
We estimate that for the remainder of the year ending December 31, 2023,2024, we expect to incur $30.6$50.2 million of leasing capital expenditures and $14.1 million of recurring capital expenditures on existing consolidated properties and $43.8properties. In addition, we expect to incur $63.8 million of development or redevelopment expenditures on existing consolidated properties, none of which $0.6 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 $119.9$163.8 million, of which $97.4$120.4 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.
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As of June 30, 2023,March 31, 2024, we had liquidity of $1.0$0.8 billion, comprised of $820.0$600.0 million of availability under our revolving credit facility and $201.8$206.7 million of consolidated cash on hand, inclusive of $9.8$10.7 million of marketable securities. This liquidity excludes $166.6$124.3 million representing our share of cash at unconsolidated joint venture properties. We may seek to divest of properties, 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 have investments in several real estate joint ventures with various partners who are generally considered to be financially 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.
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 periods presented below.
Cash, restricted cash, and cash equivalents were $311.1$318.5 million and $277.1$357.3 million as of June 30,March 31, 2024 and 2023, and 2022, respectively, representing a increasedecrease of $34.0$38.8 million. The increasedecrease was a result of the following changes in cash flows (in thousands):
Six Months Ended June 30,
20232022Change
Net cash provided by operating activities$103,992 $182,435 $(78,443)
Net cash (used in) provided by investing activities(38,868)135,324 (174,192)
Net cash used in financing activities(138,119)(377,682)239,563 
Three Months Ended March 31,
20242023(Decrease) Increase
Net cash (used in) provided by operating activities$(24,677)$42,349 $(67,026)
Net cash used in investing activities(3,713)(66,369)62,656 
Net cash provided by (used in) financing activities11,367 (2,772)14,139 
Our principal sources of operating cash flow are the properties in our consolidated and joint venture portfolios, third-party fees and our debt and preferred equity portfolio. These sources generate a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service and fund dividend and distribution requirements.
Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria. During the sixthree months ended June 30, 2023,March 31, 2024, when compared to the sixthree months ended June 30, 2022,March 31, 2023, we used cash primarily for the following investing activities (in thousands):
Capital expenditures and capitalized interest$(7,233)6,602 
Acquisition deposits and deferred purchase price(12,817)
Joint venture investments88,388 (845)
Distributions from joint ventures7,84729,733 
Proceeds from sales of real estate/partial interest in property(256,290)26,420 
Debt and preferred equity and other investments(6,904)13,563 
DecreaseIncrease in net cash provided by investing activities$(174,192)62,656 
Funds spent on capital expenditures, which are comprised of building and tenant improvements, increaseddecreased from $127.0$61.9 million for the sixthree months ended June 30, 2022March 31, 2023 to $134.2$55.3 million for the sixthree months ended June 30, 2023March 31, 2024 due to increaseddecreased spending on development and redevelopment properties.
We generally fund our investment activity through the sale of real estate, the sale or repayment of debt and preferred equity investments, property-level financing, our corporate credit facilities, or construction facilities. From time to time, the Company may issue common or preferred stock or equity-linked securities, or the Operating Partnership may issue common or preferred units of limited partnership interest.
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During the sixthree months ended June 30, 2023,March 31, 2024, when compared to the sixthree months ended June 30, 2022,March 31, 2023, we used cash for the following financing activities (in thousands):
Proceeds from our debt obligations$(293,196)(12,507)
Repayments of our debt obligations462,87137,972 
Net distribution to noncontrolling interests(47,755)(1,360)
Other financing activities(56,538)(13,090)
Proceeds from stock options exercised and DRSPP issuance143 (107)
Repurchase of common stock151,197 
Redemption of preferred stock6,268 
Dividends and distributions paid16,5733,231 
DecreaseIncrease in net cash used in financing activities$239,56314,139 
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 June 30, 2023, 64,387,088March 31, 2024, 64,805,510 shares of common stock and no shares of excess stock were issued and outstanding.
Share Repurchase Program
In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $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 June 30, 2023,March 31, 2024, share repurchases executed under the program, excluding the redemption of OP units, were as follows:
Period
Shares repurchased(1)
Average 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$76.6936,107,719
PeriodShares repurchasedAverage price paid per shareCumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2023$—36,107,719
Three months ended March 31, 2024$—36,107,719
(1)There were no share repurchases during the six months ended June 30, 2023.
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Dividend Reinvestment and Stock Purchase Plan ("DRSPP")
In February 2021,2024, the Company filed a new 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 three months ended June 30,March 31, 2024 and 2023, and 2022, respectively (dollars in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
202420242023
Shares of common stock issuedShares of common stock issued6,761 1,762 12,041 2,894 
Dividend reinvestments/stock purchases under the DRSPPDividend reinvestments/stock purchases under the DRSPP$158 $110 $342 $199 
Fifth Amended and Restated 2005 Stock Option and Incentive Plan
The Fifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2022 and its stockholders in June 2022 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 32,210,000 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 June 30, 2023, 5.6March 31, 2024, 3.0 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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Deferred Compensation Plan for Directors
During the sixthree months ended June 30, 2023, 34,666March 31, 2024, 15,945 phantom stock units and 27,73925,590 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $0.2$2.1 million and $2.3$2.1 million during the three and six months ended June 30,March 31, 2024 and 2023, respectively, related to the Deferred Compensation Plan. We recorded compensation expense of $0.4 million and $2.2 million during the three and six months ended June 30, 2022, respectively, related to the Deferred Compensation Plan.
As of June 30, 2023,March 31, 2024, there were 225,659125,654 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.
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Indebtedness
The table below summarizes our consolidated mortgages and other loans payable, 2021 credit facility, 2022 term loan, senior unsecured notes and trust preferred securities outstanding as of June 30, 2023March 31, 2024 and December 31, 2022,2023, (amounts in thousands).
Debt Summary:Debt Summary:June 30, 2023December 31, 2022Debt Summary:March 31, 2024December 31, 2023
BalanceBalance
Fixed rate
Fixed rate
Fixed rateFixed rate$930,165 $2,695,814 
Variable rate—hedgedVariable rate—hedged2,370,000 2,320,000 
Total fixed rateTotal fixed rate3,300,165 5,015,814 
Total variable rateTotal variable rate525,148 520,148 
Total debtTotal debt$3,825,313 $5,535,962 
Debt, preferred equity, and other investments subject to variable rateDebt, preferred equity, and other investments subject to variable rate$154,528 $144,056 
Debt, preferred equity, and other investments subject to variable rate
Debt, preferred equity, and other investments subject to variable rate
Net exposure to variable rate debtNet exposure to variable rate debt370,620 376,092 
Percent of Total Debt:
Percent of Total Debt:
Percent of Total Debt:
Percent of Total Debt:
Fixed rate
Fixed rate
Fixed rateFixed rate86.3 %90.6 %80.0 %92.3 %
Variable rate (1)
Variable rate (1)
13.7 %9.4 %
Variable rate (1)
20.0 %7.7 %
TotalTotal100.0 %100.0 %Total100.0 %100.0 %
Effective Interest Rate for the Year:Effective Interest Rate for the Year:
Fixed rateFixed rate4.34 %3.60 %
Fixed rate
Fixed rate4.77 %4.68 %
Variable rateVariable rate5.89 %3.23 %Variable rate6.74 %6.11 %
Effective interest rateEffective interest rate4.51 %3.55 %Effective interest rate5.19 %4.71 %
(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 10.1%16.2% and 7.0%3.0% as of June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively.
The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (5.22%adjusted Term SOFR (5.33% and 4.39%5.35% as of June 30, 2023March 31, 2024 and December 31, 2022, respectively), and adjusted Term SOFR (5.14% and 4.30% as of June 30, 2023, and December 31, 2022, respectively). Our consolidated debt as of June 30, 2023March 31, 2024 had a weighted average term to maturity of 2.922.30 years.
Certain of our debt and equity investments and other investments, with carrying values of $154.5$172.2 million as of June 30, 2023March 31, 2024 and $144.1$168.7 million as of December 31, 2022,2023, 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 10.1%16.2% and 7.0%3.0% as of June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively.
Corporate Indebtedness
2021 Credit Facility
In December 2021, we entered into an amended 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, and was originally entered into by the Company in November 2012, or the 2012 credit facility.2012. As of June 30, 2023,March 31, 2024, the 2021 credit facility consisted of a $1.25 billion revolving credit facility, a $1.05 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of 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 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
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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 June 30, 2023,March 31, 2024, the 2021 credit facility bore interest at a spread over adjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) 72.5 basis points to 140 basis points for loans under the revolving credit facility, (ii) 80 basis points to 160 basis points for loans under Term Loan A, and (iii) 85 basis points to 165 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.
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As of June 30, 2023,March 31, 2024, the applicable spread over adjusted Term SOFR plus 10 basis points for the 2021 credit facility was 105140 basis points for the revolving credit facility, 120160 basis points for Term Loan A, and 125165 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 June 30, 2023,March 31, 2024, the facility fee was 2530 basis points.
As of June 30, 2023,March 31, 2024, we had $2.0 million ofno outstanding letters of credit, $430.0$650.0 million drawn under the revolving credit facility and $1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $820.0$600.0 million under the 2021 credit facility. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the revolving credit facility had a carrying value of $424.0$645.1 million and $443.2$554.8 million, respectively, net of deferred financing costs. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the term loan facilities had a carrying value of $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 2021 credit facility.
The 2021 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 June 30, 2023, the 2022 term loan consisted of a $425.0 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 had 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 June 30, 2023, 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 June 30, 2023, the applicable spread over adjusted Term SOFR plus 10 basis points was 140 basis points. As of June 30, 2023 and December 31, 2022, the 2022 term loan had a carrying value of $423.7 million and $398.2 million, respectively, 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).
Restrictive Covenants
The terms of the 2021 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 June 30, 2023March 31, 2024 and December 31, 2022,2023, we were in compliance with all such covenants.
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 the use of interest rate derivative instruments and through our variable rate debt and preferred equity investments. As of March 31, 2024, $3.0 billion of our consolidated long-term debt and $5.9 billion of our share of joint venture long-term debt bears interest at fixed rates. Our variable rate debt and variable rate joint venture debt as of March 31, 2024 bore interest based on a spread to LIBOR of 145 basis points and Term SOFR of 50 basis points to 561 basis points. Based on the debt outstanding as of June 30, 2023,March 31, 2024, a hypothetical 100 basis point increase in the applicable floating rate interest rate curve would increase our consolidated annual interest cost, net of interest income from variable rate debt and preferred equity investments, by $3.5$5.5 million and would increase our share of joint venture annual interest cost by $6.7$11.1 million. As of June 30, 2023,March 31, 2024, $0.2 billion of our debt and preferred equity portfolio was indexed to SOFR.
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 (loss) until the hedged item is recognized in earnings.
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Our consolidated long-term debt of $3.3 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 June 30, 2023 bore interest based on a spread to LIBOR of 145 basis points to 340 basis points, and Term SOFR of 50 basis points to 575 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. A 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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Dividends/Distributions
We expect to pay dividends to our stockholders based on the distributions we receive from our Operating 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.
Any dividend we pay may be in the form of cash, stock or a combination thereof, subject to IRS 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 maintain our 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 2021 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.
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 two property insurance programs and liability insurance. Separate property and liability coverage may be purchased on a stand-alone basis for certain assets, such as development projects. Additionally, one of our captive insurance companies, Belmont Insurance Company, or Belmont, provides coverage for NBCR terrorist acts above a specified trigger. Belmont's retention is reinsured by our other captive insurance company, Ticonderoga Insurance Company ("Ticonderoga"). If Belmont or Ticonderoga are required to pay a claim under our insurance policies, we would ultimately record the loss to the extent of required 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 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 and 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.
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 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 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.
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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 compensation 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 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.
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FFO for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net loss attributable to SL Green common stockholders$(360,194)$(43,876)$(399,925)$(36,125)
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
202420242023
Net income (loss) attributable to SL Green common stockholders
Add:Add:
Depreciation and amortizationDepreciation and amortization69,084 46,914 147,632 93,897 
Depreciation and amortization
Depreciation and amortization
Joint venture depreciation and noncontrolling interest adjustmentsJoint venture depreciation and noncontrolling interest adjustments65,149 61,030 134,683 121,462 
Net (income) loss attributable to noncontrolling interests(24,622)591 (28,584)940 
Net loss attributable to noncontrolling interests
Less:Less:
Equity in net loss on sale of interest in unconsolidated joint venture/real estate (131)(79)(131)
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate
Purchase price and other fair value adjustments
Loss on sale of real estate, net
Depreciable real estate reserves and impairmentDepreciable real estate reserves and impairment(305,916)— (305,916)— 
Loss on sale of real estate, net(26,678)(64,378)(28,329)(65,380)
Purchase price and other fair value adjustments(17,013)— (17,013)— 
Depreciation on non-rental real estate assetsDepreciation on non-rental real estate assets600 415 1,234 1,136 
Funds from Operations attributable to SL Green common stockholders and unit holdersFunds from Operations attributable to SL Green common stockholders and unit holders$98,424 $128,753 $203,909 $244,549 
Cash flows provided by operating activities$61,643 $101,033 $103,992 $182,435 
Cash flows provided by (used in) investing activities27,501 121,828 (38,868)135,324 
Cash flows used in financing activities(135,347)(253,118)(138,119)(377,682)
Cash flows (used in) provided by operating activities
Cash flows used in investing activities
Cash flows provided by (used in) financing activities
InflationSeasonality
Substantially allOur business at SUMMIT is subject to tourism trends and weather conditions, resulting in some seasonal fluctuation. In 2023 and 2022, approximately 14.0% to 16.0% of our office leases provide for separate real estate tax and operating expense escalations as well as operating expense recoveries based on increasesannual SUMMIT revenue was realized in the CPI orfirst quarter, 24.0% to 26.0% was realized in the second quarter, 28.0% to 30.0% was realized in the third quarter, and 29.0% to 31.0% was realized in the fourth quarter. We do not consider any other measures such as porters' wage. In addition, manycomponents of the leases provide for fixed base rent increases. We believe that inflationary increases willour business to be at least partially offset by the contractual rent increases and expense escalations described above.subject to material seasonal fluctuations.
Accounting Standards Updates
The Accounting Standards Updates are discussed in Note 2, "Significant Accounting Policies-Accounting Standards Updates" in the accompanying consolidated financial statements.
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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;the New York City real estate market;
risks of real estate acquisitions, dispositions, development and redevelopment, including the cost of construction delays and cost overruns;
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risks relating to debt and preferred equity investments;
availability and creditworthiness of prospective tenants and borrowers;
bankruptcy or insolvency of a major tenant or a significant number of smaller 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 debt and equity capital (debtfor our operational needs and equity);investment strategy;
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 our 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. Except 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.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSUREDISCLOSURES ABOUT MARKET RISK
For quantitative and qualitative disclosuredisclosures about market risk, see Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operation - Interest Rate Risk" in this Quarterly Report on Form 10-Q for the three months ended June 30, 2023March 31, 2024 for the Company and the Operating Partnership and Item Item��7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk" in the Annual Report on Form 10-K for the year ended December 31, 20222023 for the Company and the Operating Partnership. Our exposures to market risk have not changed materially since December 31, 2022.2023.
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ITEM 4. 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.
Changes in Internal Control over Financial Reporting
There have been no significant changes in the Company's internal control over financial reporting during the quarter ended June 30, 2023March 31, 2024 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.
SL GREEN OPERATING PARTNERSHIP, L.P.
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.
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 quarter ended June 30, 2023March 31, 2024 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As of June 30, 2023,March 31, 2024, 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 1A. RISK FACTORS
As of June 30, 2023,March 31, 2024, there have been no material changes to the Risk Factors disclosed in "Part I. Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.2023.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $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 June 30, 2023,March 31, 2024 share repurchases executed under the program, excluding the redemption of OP units, were as follows:
Period
Shares repurchased(1)
Average 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$76.6936,107,719
(1)There were no share repurchases during the six months ended June 30, 2023.
PeriodShares repurchasedAverage price paid per shareCumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2023$—36,107,719
Three months ended March 31, 2024$—36,107,719
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
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ITEM 4. MINE SAFETY DISCLOSURES
Not Applicable.
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ITEM 5. OTHER INFORMATION
None.
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ITEM 6. EXHIBITS
Exhibits required by Item 601 of Regulation S-K are filed herewith or incorporated herein by reference and are listed in the attached Exhibit Index.
Exhibit No.Description
First Amendment to Amended and Restated Employment and Noncompetition Agreement, dated as of January 30, 2024, by and between SL Green Realty Corp. and Matthew DiLiberto, incorporated by reference to the Company's Form 8-K, dated January 30, 2024, filed with the SEC on February 2, 2024.
Certification by the Chairman and Chief Executive Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chief Financial Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chairman and 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.
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.
Certification by the Chairman and Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedfurnished herewith.
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, filedfurnished herewith.
Certification by the Chairman and 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, filedfurnished herewith.
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, filedfurnished herewith.
101 The following financial statements from SL Green Realty Corp. and SL Green Operating Partnership L.P.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023,March 31, 2024, formatted in Inline XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive (Loss) Income (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Capital (unaudited) (vi) Consolidated Statements of Cash Flows (unaudited), and (vii) Notes to Consolidated Financial Statements (unaudited), detail tagged and filed herewith.
104 Cover Page Interactive Data File (formatted as Inline XBRL in Exhibit 101)
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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: SL Green Realty Corp.
/s/ Matthew J. DiLiberto
Dated: AugustMay 3, 20232024 By: 
Matthew J. DiLiberto
Chief Financial Officer
(Principal Financial and Accounting Officer)
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:/s/ Matthew J. DiLiberto
Dated: AugustMay 3, 20232024  Matthew J. DiLiberto
Chief Financial Officer of SL Green, the sole general partner of the Operating Partnership (Principal Financial and Accounting Officer)

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