Exhibit 99.2
SL Green Realty Corp.
Second Quarter 2004
Supplemental Data
June 30, 2004
SL Green Realty Corp. is a fully integrated, self-administered and self-managed Real Estate Investment Trust (REIT) that primarily owns, manages, leases, acquires and repositions office properties in emerging, high-growth submarkets of Manhattan.
• SL Green’s common stock is listed on the New York Stock Exchange, and trades under the symbol SLG.
• SL Green maintains an internet site at www.slgreen.com at which most key investor relations data pertaining to dividend declaration, payout, current and historic share price, etc. can be found. Such information is not reiterated in this supplemental financial package. This supplemental financial package is available through the Company’s Internet site.
• This data is presented to supplement audited and unaudited regulatory filings of the Company and should be read in conjunction with those filings. The financial data herein is unaudited and is provided from the prospective of timeliness to assist readers of quarterly and annual financial filings. As such, data otherwise contained in future regulatory filings covering the same period may be restated from the data presented herein.
Questions pertaining to the information contained herein should be referred to Gregory F. Hughes at greg.hughes@slgreen.com or at 212-594-2700.
This report includes certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this report that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), expansion and other development trends of the real estate industry, business strategies, expansion and growth of the Company’s operations and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, general economic and business conditions, the business opportunities that may be presented to and pursued by the Company, changes in laws or regulations and other factors, many of which are beyond the control of the Company. Any such statements are not guarantees of future performance and actual results or developments may differ materially from those anticipated in the forward-looking statements.
The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the quarter ended June 30, 2004 that will subsequently be released on Form 10-Q to be filed on or before August 10, 2004.
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TABLE OF CONTENTS
Highlights of Current Period Financial Performance |
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Unaudited Financial Statements |
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Mortgage Investments and Preferred Equity |
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Composition of Property Portfolio |
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SL Green Realty Corp. (the “Company”) was formed on August 20, 1997 to continue the commercial real estate business of S.L. Green Properties Inc. founded in 1980 by Stephen L. Green, our current Chairman. For more than 20 years SL Greenhas been engaged in the business of owning, managing, leasing, acquiring and repositioning office properties in Manhattan. The Company’s investment focus is to create value through the acquisition, redevelopment and repositioning of Manhattan office properties and releasing and managing these properties for maximum cash flow.
Looking forward, SL Green Realty Corp. will continue its opportunistic investment philosophy through three established business lines: investment in long-term core properties, investment in opportunistic assets and structured finance investments. This three-legged investment strategy will allow SL Green to balance the components of its portfolio to take advantage of each stage in the business cycle.
Today, the Company is the only fully integrated, self-managed, self-administered Real Estate Investment Trust (REIT) exclusively focused on owning and operating office buildings in Manhattan. SL Green is a pure play for investors to own a piece of New York.
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SECOND QUARTER 2004
UNAUDITED
FINANCIAL RESULTS
Funds From Operations (FFO) before minority interests, for the second quarter 2004 totaled $44.1 million, or $1.04 per share (diluted), a 20% increase compared to the same quarter in 2003 when FFO totaled $33.9 million, or $0.87 per share (diluted).
Net income available for common shareholders for the second quarter 2004 totaled $45.4 million, or $1.13 per share (diluted), an increase of $0.63 per share as compared to the same quarter in 2003 when net income totaled $15.5 million, or $0.49 per share (diluted).
The increase in net income in the second quarter 2004 is primarily due to the $22.0 million ($0.52 per share) gain recognized on the recapitalization of One Park Avenue.
Funds available for distribution (FAD) for the second quarter 2004 increased to $0.72 share per share (diluted) versus $0.60 per share (diluted) in the prior year, a 20% increase. The increase is primarily due to the $0.17 per share increase in FFO partially off-set by higher tenant improvements and leasing commissions.
The Company’s dividend payout ratio was 48% of FFO and 70% of FAD before first cycle leasing costs.
CONSOLIDATED RESULTS
Total quarterly revenues increased 20% in the second quarter to $89.4 million, compared to $74.4 million last year. The $15.0 million growth in revenue resulted from the following items:
• $5.8 million in other income, primarily due to the incentive distribution recognized from the recapitalization of One Park Avenue
• $5.1 million increase in preferred and investment income
• $3.8 million increase from 2003 acquisitions
• $1.2 million increase from same-store properties
• $0.9 million decrease-other
The Company’s EBITDA increased $15.8 million to $57.4 million; margins before ground rent increased to 82.8% compared to 64.2% for the same period last year. The following items drove EBITDA improvements:
(1) Consolidated GAAP NOI (before discontinued operations) increased $8.1 million:
• $7.2 million increase from the equity in income from unconsolidated joint ventures primarily due to the December 2003 acquisition of 1221 Avenue of the Americas ($7.4 million). The increase was partially offset by lower affiliate income and reserves.
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• $0.5 million increase in same-store results (see below)
• $0.4 million increase from 2003 property acquisitions of 461 Fifth Avenue (October 2003) net of reserves.
(2) $5.1 million increase in investment and preferred income primarily due to the recognition of accelerated origination and exit fees related to the early redemption of several mortgage investments, and an increase in the weighted-average asset balance from $120.0 million to $235.2 million. The weighted-average yield decreased from 12.4% to 10.2%.
(3) $3.8 million increase in other income (excluding $2.0 million of service corporation revenue) is due to an One Park Avenue incentive distribution totaling $4.3 million, partially offset by lower lease buy-out income and lower asset management fees.
(4) $1.7 million decrease from higher MG&A expense.
FFO available to common shareholders improved $10.3 million primarily as a result of:
• $15.8 million increase in EBITDA
• $2.3 million increase in FFO adjustment from unconsolidated joint ventures primarily due to increased depreciation expense from 1221 Avenue of the Americas
• $1.3 million decrease in FFO from discontinued operations
• $3.4 million decrease from perpetual preferred stock dividends
• $3.0 million decrease from higher interest expense
• $0.1 million increase from lower amortization of finance costs
The $3.0 million increase in interest expense was primarily associated with additional debt used to fund new investment activity ($3.0 million) and higher interest costs associated with property-level refinancings ($1.7 million) which were partially offset by reduced loan balances due to previous disposition activity ($0.8 million) and proceeds from the Company’s common and preferred stock offerings and other ($0.9 million).
SAME-STORE RESULTS
Same-store second quarter GAAP NOI increased $0.5 million (2%) to $29.3 million in 2004 due to a $1.1 million increase in rental revenue partially offset by a $0.7 million increase in operating expenses. Operating margins after ground rent were essentially flat decreasing 0.1% to 51.7%.
The $1.1 million increase in revenue was due to:
• $2.1 million increase in rental revenue primarily due to improved leasing at 420 Lexington Avenue and 555 West 57th Street.
• $0.5 million decrease in escalation and reimbursement revenue primarily due to real estate tax and utility reimbursements
• $0.1 million increase from lower straight-line credit loss reserves
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• $0.6 million reduction in signage rent and lease buy-out income
The $0.7 million (3%) increase in same-store operating expenses resulted from:
• $0.5 million (6%) increase in real estate taxes primarily due to higher property value assessments.
• $0.3 million (14%) increase in condominium, management, professional and advertising costs
• $0.3 million (4%) increase in repairs, maintenance and payroll costs
• $0.4 million (8%) decrease in utility costs
QUARTERLY LEASING HIGHLIGHTS
Vacancy at June 30, 2004 was 574,532 useable square feet net of holdover tenants. During the quarter, 263,172 additional usable office, retail and storage square feet became available at an average escalated cash rent of $36.97 per rentable square foot. Space available before holdovers to lease during the quarter totaled 837,704 useable square feet, or 5.4% of the total portfolio.
During the second quarter, 61 leases were signed totaling 220,671 usable square feet. New cash rents averaged $33.69 per rentable square foot. Replacement rents were 7% less than rents on previously occupied space, which had fully escalated cash rents averaging $36.06 per rentable square foot. The average lease term was 8.1 years and average tenant concessions were 1.9 months of free rent with a tenant improvement allowance of $22.15 per rentable square foot. Including early renewals and excluding holdover tenants, the tenant renewal rate was 50% based on square feet expiring. 34 leases have expired comprising 62,093 useable square feet that are in a holdover status. This results in 554,940 useable square feet (net of holdovers) remaining available as of June 30, 2004.
The Company signed 12 office leases for 62,013 useable square feet that were for early renewals. The early renewals for space were not scheduled to become available until after the fourth quarter of 2004. The Company renewed the current office tenants at an average cash rent of $34.18 per rentable square foot, representing an increase of 23% above the previously fully escalated rents of $27.73. The average lease term extension on the office early renewals was 9.4 years with a tenant improvement allowance of $12.40 per rentable square foot and 0.6 months of free rent.
REAL ESTATE ACTIVITY
750 Third Avenue and 485 Lexington Avenues
In June 2004, we announced that we had entered into an agreement to acquire two office buildings, comprising 1.7 million square feet, located at 750 Third Avenue (“750 Third”) and 485 Lexington Avenue (“485 Lexington”) for $480.0 million, or $282 million per square foot. The properties are being acquired from TIAA-CREF, a national financial services
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company. The transaction is expected to close in the third quarter of 2004. The properties will be acquired separately by two SL Green-controlled entities.
750 Third will be purchased by us as a wholly-owned asset for $255.0 million. The acquisition will initially be funded by proceeds from our unsecured revolving credit facility. At closing, TIAA-CREF, a AAA-rated company, will enter into an operating lease for the entire building. At the expiration of such operating lease, in December 2005, the building will be approximately 25% vacant. The majority of such vacancy will be in the upper tower floors of the property.
485 Lexington will be acquired in a joint venture with The City Investment Fund. We expect to own approximately 30.0% of the equity interests in the property. The allocated price for 485 Lexington is $225.0 million. The joint venture has arranged for a loan facility to fund 75% of the acquisition and anticipated re-tenanting costs of 485 Lexington. Consistent with our prior joint venture arrangements, we will be the operating partner and day-to-day manager of the venture and will be entitled to management fees, leasing commissions and incentive fees. At closing, TIAA-CREF will enter into an operating lease for the entire building. Upon expiration of the operating lease in December 2005, it is anticipated that TIAA-CREF will vacate all of the space it occupies in 485 Lexington (approximately 870,000 square feet).
One Park Avenue
In May 2004, Credit Suisse First Boston LLC, through a wholly owned affiliate, acquired a 75% interest in One Park. The interest was acquired from a joint venture comprised of SITQ and us. Simultaneous with the closing of the acquisition, the new joint venture completed a refinancing of the property with an affiliate of Credit Suisse First Boston.
Credit Suisse First Boston’s affiliated entity acquired its equity interest for $60.0 million. The acquisition was based on a total capitalization of approximately $318.5 million, or $344 per square foot. The $238.5 million 10-year interest only loan bears interest at a fixed rate of 5.8% and replaced the existing $150.0 million floating rate loan, which was scheduled to mature in January 2005. We received $83.0 million in net proceeds from the recapitalization. Net proceeds, which were used to pay down our unsecured revolving credit facility, included an incentive fee of approximately $4.3 million earned pursuant to the prior joint venture agreement with SITQ.
We have retained a 16.7% interest in the new venture, which may be increased substantially based upon the financial performance of the property. We will manage the venture, in addition to continuing our responsibility of leasing and managing the property.
We accounted for the transaction as a sale of interests and recognized a gain on sale of approximately $22 million. Our initial book basis in the new joint venture will be
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approximately $4.3 million and it will be accounted for under the equity method.
125 Broad Street
In June 2004, the Company exercised an option to acquire its share of the fee position at 125 Broad Street for approximately $6.0 million.
Structured Finance Activity
As of June 30, 2004, the par value of the Company’s structured finance and preferred equity investments totaled $264.3 million. The weighted average balance outstanding for the second quarter of 2004 was $235.2 million. During the second quarter of 2004, the weighted average yield was 10.2%.
During the second quarter of 2004, the Company originated $117.4 million of structured finance investments with an initial yield of approximately 10.1%. The Company also received redemptions totaling $129.6 million that was yielding 13.2%.
Financing/ Capital Activity
Series D Perpetual Preferred Stock
In April 2004, we priced a public offering of 2,450,000 shares of our 7.875% Series D Cumulative Redeemable Preferred Stock, or Series D preferred stock with a mandatory liquidation preference of $25.00 per share. Net proceeds from this offering (approximately $59.0 million) were used principally to repay amounts outstanding under our secured and unsecured revolving credit facilities. The Series D preferred stock receives annual dividends of $1.96875 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. On or after May 27, 2009, we may redeem the Series D preferred stock for cash at our option. In July 2004, we issued an additional 1,550,000 shares of our Series D preferred stock with net proceeds to us of approximately $37.3 million. The gross proceeds from these offerings were $100 million.
1515 Broadway Refinance
In June 2004, we refinanced 1515 Broadway with a $425.0 million first mortgage. The interest only mortgage has an interest rate of 90 basis points over the 30-day LIBOR. The all-in blended weighted average effective interest rate was 3.84% for the quarter ended June 30, 2004. The mortgage matures in July 2006 and is subject to three one-year as-of-right renewal options. This loan replaced the $335 million loan, which bore interest at 190 basis points over LIBOR.
1250 Broadway Refinancing
In July 2004, we refinanced 1250 Broadway with a $115 million first mortgage. The interest-only mortgage has an interest rate of 120 basis points over the 30-day LIBOR. The mortgage matures in August 2006 and is subject to three one-
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year as-of-right renewal options. This loan replaced the $85 million loan, which bore interest at 250 basis points over LIBOR.
485 Lexington Avenue Financing
The Company has received a $240 million commitment to finance the acquisition and redevelopment of 485 Lexington Avenue. The loan, which will bear interest at 200 basis points over the 30-day LIBOR, is for three years and has two one-year extension options. The loan, which is expected to close during the third quarter, is subject to customary closing conditions. At closing, the Company is expected to draw approximately $170 million to fund the acquisition.
Other
Dividends
On June 15, 2003, the Company declared a dividend distribution of $0.50 per common share for the second quarter 2004. This distribution reflects the regular quarterly dividend, which is the equivalent of an annualized distribution of $2.00 per common share.
On June 15, 2003, the Company also declared a dividend on the Company’s Series C preferred stock for the period April 15, 2004 through and including July 14, 2004, of $0.4766 per share, payable July 15, 2004 to shareholders of record on the close of business on June 30, 2004. The distribution reflects the regular quarterly dividend, which is the equivalent of an annualized distribution of $1.90625 per Series C preferred stock.
On June 15, 2004, the Company also declared a dividend on the Company’s Series D preferred stock for the period May 27, 2004 through and including July 14, 2004, of $0.2625 per share, payable July 15, 2004 to shareholders of record on the close of business on June 30, 2004. The distribution reflects the regular annualized distribution of $1.96875, pro rated for the period during which the Series D preferred stock was outstanding.
Consolidation of Affiliate
In connection with recently enacted accounting pronouncements (FIN 46) the Company has consolidated the results of its previously unconsolidated affiliate. The consolidation is effective July 1, 2003 and is not retroactive for the three and six months ended December 31, 2003. The consolidated affiliate revenue totaled $2.0 million and consolidated expenses totaled $1.8 for the three months ended June 30, 2004.
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OTHER
Annually, the Company adjusts the same-store pool to include
all properties owned for a minimum of twelve months (since January 1, 2003). The 2004 same-store pool will include the following wholly owned properties:
2004 SAME-STORE
673 First Avenue
470 Park Avenue South
555 West 57th Street
711 Third Avenue
286 Madison Avenue
110 East 42nd Street
1140 Avenue of the Americas
1466 Broadway
440 Ninth Avenue
1372 Broadway
290 Madison Avenue
317 Madison Avenue
420 Lexington Avenue
70 West 36th Street
1414 Avenue of the Americas
292 Madison Avenue
17 Battery Place North
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SL Green Realty Corp.
Key Financial Data
June 30, 2004
( Dollars in Thousands Except Per Share and Sq. Ft.)
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| As of or for the three months ended |
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| 6/30/2004 |
| 3/31/2004 |
| 12/31/2003 |
| 9/30/2003 |
| 6/30/2003 |
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Earnings Per Share |
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Net income available to common shareholders - diluted |
| $ | 1.13 |
| $ | 0.40 |
| $ | 0.58 |
| $ | 0.59 |
| $ | 0.49 |
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Funds from operations available to common shareholders - diluted |
| $ | 1.04 |
| $ | 0.83 |
| $ | 0.89 |
| $ | 0.87 |
| $ | 0.87 |
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Funds available for distribution to common shareholders - diluted |
| $ | 0.72 |
| $ | 0.56 |
| $ | 0.56 |
| $ | 0.68 |
| $ | 0.60 |
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Common Share Price & Dividends |
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At the end of the period |
| $ | 46.80 |
| $ | 47.70 |
| $ | 41.05 |
| $ | 36.11 |
| $ | 34.89 |
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High during period |
| $ | 48.20 |
| $ | 47.78 |
| $ | 41.05 |
| $ | 37.42 |
| $ | 36.00 |
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Low during period |
| $ | 40.24 |
| $ | 41.12 |
| $ | 36.12 |
| $ | 34.52 |
| $ | 31.47 |
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Common dividends per share |
| $ | 0.500 |
| $ | 0.500 |
| $ | 0.500 |
| $ | 0.465 |
| $ | 0.465 |
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FFO Payout Ratio |
| 48.09 | % | 60.03 | % | 56.42 | % | 54.58 | % | 53.29 | % | |||||
FAD Payout Ratio |
| 69.87 | % | 89.68 | % | 89.42 | % | 68.00 | % | 77.59 | % | |||||
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Common Shares & Units |
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Common shares outstanding |
| 38,692 |
| 38,551 |
| 36,016 |
| 35,876 |
| 31,173 |
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Units outstanding |
| 2,225 |
| 2,225 |
| 2,306 |
| 2,306 |
| 2,306 |
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Total shares and units outstanding |
| 40,917 |
| 40,776 |
| 38,322 |
| 38,182 |
| 33,479 |
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Weighted average common shares and units outstanding - basic |
| 38,638 |
| 37,978 |
| 35,957 |
| 31,269 |
| 31,082 |
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Weighted average common shares and units outstanding - diluted |
| 42,456 |
| 42,010 |
| 39,764 |
| 39,186 |
| 38,819 |
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Market Capitalization |
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Market value of common equity |
| $ | 1,914,902 |
| $ | 1,945,017 |
| $ | 1,573,114 |
| $ | 1,378,753 |
| $ | 1,168,094 |
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Liquidation value of preferred equity |
| 218,750 |
| 157,500 |
| 157,500 |
| — |
| 115,000 |
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Consolidated debt |
| 919,080 |
| 1,060,428 |
| 1,119,449 |
| 792,426 |
| 762,530 |
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Consolidated market capitalization |
| $ | 3,052,732 |
| $ | 3,162,945 |
| $ | 2,850,063 |
| $ | 2,171,179 |
| $ | 2,045,624 |
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SLG portion JV debt |
| 496,542 |
| 489,940 |
| 473,558 |
| 402,635 |
| 396,047 |
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Combined market capitalization |
| $ | 3,549,274 |
| $ | 3,652,885 |
| $ | 3,323,621 |
| $ | 2,573,814 |
| $ | 2,441,671 |
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Consolidated debt to market capitalization |
| 30.11 | % | 33.53 | % | 39.28 | % | 36.50 | % | 37.28 | % | |||||
Combined debt to market capitalization |
| 39.88 | % | 42.44 | % | 47.93 | % | 46.43 | % | 47.45 | % | |||||
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Consolidated debt service coverage |
| 4.05 |
| 3.68 |
| 3.71 |
| 3.83 |
| 3.61 |
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Consolidated fixed charge coverage |
| 2.78 |
| 2.59 |
| 2.83 |
| 2.66 |
| 2.55 |
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Combined fixed charge coverage |
| 2.46 |
| 2.49 |
| 2.67 |
| 2.44 |
| 2.36 |
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Portfolio Statistics |
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Directly owned buildings |
| 20 |
| 20 |
| 20 |
| 19 |
| 20 |
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Joint venture buildings |
| 7 |
| 7 |
| 6 |
| 6 |
| 6 |
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| 27 |
| 27 |
| 26 |
| 25 |
| 26 |
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Directly owned square footage |
| 8,170,000 |
| 8,170,000 |
| 8,170,000 |
| 7,970,000 |
| 8,225,000 |
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Joint venture square footage |
| 7,274,000 |
| 7,274,000 |
| 6,902,000 |
| 4,635,000 |
| 4,635,000 |
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| 15,444,000 |
| 15,444,000 |
| 15,072,000 |
| 12,605,000 |
| 12,860,000 |
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Quarter end occupancy-portfolio |
| 96.6 | % | 96.3 | % | 95.8 | % | 95.5 | % | 95.5 | % | |||||
Quarter end occupancy- same store |
| 97.0 | % | 96.9 | % | 95.8 | % | 97.5 | % | 97.3 | % | |||||
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SL Green Realty Corp.
Key Financial Data
June 30, 2004
( Dollars in Thousands Except Per Share and Sq. Ft.)
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| As of or for the three months ended |
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| 6/30/2004 |
| 3/31/2004 |
| 12/31/2003 |
| 9/30/2003 |
| 6/30/2003 |
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Selected Balance Sheet Data |
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Real estate assets before depreciation |
| $ | 1,370,329 |
| $ | 1,355,880 |
| $ | 1,346,431 |
| $ | 1,273,606 |
| $ | 1,266,476 |
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Investments in unconsolidated joint ventures |
| $ | 502,658 |
| $ | 600,002 |
| $ | 590,064 |
| $ | 205,821 |
| $ | 216,620 |
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Structured finance investments |
| $ | 264,296 |
| $ | 276,538 |
| $ | 218,989 |
| $ | 167,954 |
| $ | 125,517 |
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Total Assets |
| $ | 2,256,614 |
| $ | 2,295,883 |
| $ | 2,261,841 |
| $ | 1,765,147 |
| $ | 1,725,583 |
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Fixed rate & hedged debt |
| $ | 884,180 |
| $ | 782,428 |
| $ | 783,449 |
| $ | 539,426 |
| $ | 540,352 |
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Variable rate debt |
| 34,900 |
| 278,000 |
| 336,000 |
| 253,000 |
| 222,178 |
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Total consolidated debt |
| $ | 919,080 |
| $ | 1,060,428 |
| $ | 1,119,449 |
| $ | 792,426 |
| $ | 762,530 |
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Total Liabilities |
| $ | 1,069,335 |
| $ | 1,210,662 |
| $ | 1,256,268 |
| $ | 926,791 |
| $ | 900,433 |
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Fixed rate & hedged debt-including SLG portion JV debt |
| $ | 1,151,772 |
| $ | 1,010,358 |
| $ | 1,011,507 |
| $ | 767,611 |
| $ | 671,949 |
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Variable rate debt - including SLG portion JV debt |
| 263,850 |
| 540,010 |
| 581,500 |
| 427,450 |
| 486,628 |
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Total combined debt |
| $ | 1,415,622 |
| $ | 1,550,368 |
| $ | 1,593,007 |
| $ | 1,195,061 |
| $ | 1,158,577 |
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Selected Operating Data |
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Property operating revenues |
| $ | 73,901 |
| $ | 71,371 |
| $ | 73,073 |
| $ | 73,352 |
| $ | 69,751 |
|
Property operating expenses |
| 38,454 |
| 39,562 |
| 36,821 |
| 38,713 |
| 33,534 |
| |||||
Property operating NOI |
| $ | 35,447 |
| $ | 31,809 |
| $ | 36,252 |
| $ | 34,639 |
| $ | 36,217 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
SLG share of Property NOI from JVs |
| $ | 22,412 |
| $ | 22,174 |
| $ | 12,886 |
| $ | 12,094 |
| $ | 12,334 |
|
Structured finance income |
| $ | 8,562 |
| $ | 13,829 |
| $ | 9,861 |
| $ | 3,860 |
| $ | 3,449 |
|
Other income |
| $ | 6,982 |
| $ | 2,490 |
| $ | 3,668 |
| $ | 4,113 |
| $ | 1,164 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Marketing general & administrative expenses |
| $ | 4,467 |
| $ | 10,903 |
| $ | 8,048 |
| $ | 2,994 |
| $ | 2,804 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated interest |
| $ | 14,578 |
| $ | 14,830 |
| $ | 12,683 |
| $ | 10,991 |
| $ | 11,817 |
|
Combined interest |
| $ | 19,616 |
| $ | 19,944 |
| $ | 17,366 |
| $ | 15,978 |
| $ | 16,547 |
|
Preferred Dividend & Accretion |
| $ | 3,446 |
| $ | 3,000 |
| $ | 625 |
| $ | 2,224 |
| $ | 2,431 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Office Leasing Statistics |
|
|
|
|
|
|
|
|
|
|
| |||||
Total office leases signed |
| 70 |
| 59 |
| 62 |
| 69 |
| 68 |
| |||||
Total office square footage leased |
| 341,730 |
| 251,144 |
| 664,716 |
| 275,434 |
| 311,388 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average rent psf |
| $ | 32.43 |
| $ | 30.98 |
| $ | 31.27 |
| $ | 34.55 |
| $ | 30.89 |
|
Escalated rents psf |
| $ | 32.95 |
| $ | 30.22 |
| $ | 30.71 |
| $ | 32.85 |
| $ | 28.58 |
|
Percentage of rent over escalated |
| -1.6 | % | 2.5 | % | 1.8 | % | 5.2 | % | 8.1 | % | |||||
Tenant concession packages psf |
| $ | 20.34 |
| $ | 26.21 |
| $ | 22.43 |
| $ | 16.49 |
| $ | 20.15 |
|
Free rent months |
| 1.4 |
| 1.9 |
| 1.1 |
| 1.1 |
| 1.7 |
| |||||
13
COMPARATIVE BALANCE SHEETS
Unaudited
(000’s omitted)
|
| 6/30/2004 |
| 6/30/2003 |
| +/- |
| 3/31/2004 |
| +/- |
| 12/31/2003 |
| +/- |
| |||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Commercial real estate properties, at cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Land & land interests |
| $ | 174,625 |
| $ | 167,793 |
| $ | 6,832 |
| $ | 168,660 |
| $ | 5,965 |
| $ | 168,032 |
| $ | 6,593 |
|
Buildings & improvements fee interest |
| 862,527 |
| 839,139 |
| 23,388 |
| 857,278 |
| 5,249 |
| 849,013 |
| 13,514 |
| |||||||
Buildings & improvements leasehold |
| 320,969 |
| 247,336 |
| 73,633 |
| 317,734 |
| 3,235 |
| 317,178 |
| 3,791 |
| |||||||
Buildings & improvements under capital lease |
| 12,208 |
| 12,208 |
| — |
| 12,208 |
| — |
| 12,208 |
| — |
| |||||||
|
| $ | 1,370,329 |
| $ | 1,266,476 |
| $ | 103,853 |
| $ | 1,355,880 |
| $ | 14,449 |
| $ | 1,346,431 |
| $ | 23,898 |
|
Less accumulated depreciation |
| (175,601 | ) | (136,836 | ) | (38,765 | ) | (165,333 | ) | (10,268 | ) | (156,768 | ) | (18,833 | ) | |||||||
|
| $ | 1,194,728 |
| $ | 1,129,640 |
| $ | 65,088 |
| $ | 1,190,547 |
| $ | 4,181 |
| $ | 1,189,663 |
| $ | 5,065 |
|
Other Real Estate Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Investment in unconsolidated joint ventures |
| 502,658 |
| 216,620 |
| 286,038 |
| 600,002 |
| (97,344 | ) | 590,064 |
| (87,406 | ) | |||||||
Mortgage loans receivable |
| 239,070 |
| 104,185 |
| 134,885 |
| 191,912 |
| 47,158 |
| 127,328 |
| 111,742 |
| |||||||
Preferred equity investments |
| 25,226 |
| 21,332 |
| 3,894 |
| 84,626 |
| (59,400 | ) | 91,661 |
| (66,435 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
| — |
|
|
|
|
|
|
|
|
| |||||||
Assets held for sale |
| — |
| 50,088 |
| (50,088 | ) | — |
| — |
| — |
| — |
| |||||||
Cash and cash equivalents |
| 65,045 |
| 16,810 |
| 48,235 |
| 22,393 |
| 42,652 |
| 38,546 |
| 26,499 |
| |||||||
Restricted cash: |
|
|
|
|
| — |
|
|
| — |
|
|
|
|
| |||||||
Tenant security |
| 19,029 |
| 20,654 |
| (1,625 | ) | 22,472 |
| (3,443 | ) | 21,584 |
| (2,555 | ) | |||||||
Escrows & other |
| 22,839 |
| 41,181 |
| (18,342 | ) | 25,296 |
| (2,457 | ) | 37,958 |
| (15,119 | ) | |||||||
Tenant and other receivables, net of $7,837 reserve at 6/30/04 |
| 14,347 |
| 10,448 |
| 3,899 |
| 14,333 |
| 14 |
| 13,165 |
| 1,182 |
| |||||||
Related party receivables |
| 4,509 |
| 3,945 |
| 564 |
| 3,524 |
| 985 |
| 6,610 |
| (2,101 | ) | |||||||
Deferred rents receivable, net of reserve for |
|
|
|
|
| — |
|
|
| — |
|
|
| — |
| |||||||
tenant credit loss of $7,597 at 6/30/04 |
| 66,811 |
| 58,834 |
| 7,977 |
| 64,562 |
| 2,249 |
| 63,131 |
| 3,680 |
| |||||||
Investment in and advances to affiliates |
| — |
| 3,133 |
| (3,133 | ) | — |
| — |
| — |
| — |
| |||||||
Deferred costs, net |
| 44,831 |
| 37,694 |
| 7,137 |
| 44,379 |
| 452 |
| 39,277 |
| 5,554 |
| |||||||
Other assets |
| 57,521 |
| 11,019 |
| 46,502 |
| 31,837 |
| 25,684 |
| 42,854 |
| 14,667 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Assets |
| $ | 2,256,614 |
| $ | 1,725,583 |
| $ | 531,031 |
| $ | 2,295,883 |
| $ | (39,269 | ) | $ | 2,261,841 |
| $ | (5,227 | ) |
14
|
| 6/30/2004 |
| 6/30/2003 |
| +/- |
| 3/31/2004 |
| +/- |
| 12/31/2003 |
| +/- |
| |||||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Mortgage notes payable |
| $ | 514,180 |
| $ | 620,530 |
| $ | (106,350 | ) | $ | 515,018 |
| $ | (838 | ) | $ | 515,871 |
| $ | (1,691 | ) |
Unsecured & Secured term loans |
| 300,000 |
| 100,000 |
| 200,000 |
| 367,410 |
| (67,410 | ) | 367,578 |
| (67,578 | ) | |||||||
Revolving credit facilities |
| 104,900 |
| 42,000 |
| 62,900 |
| 178,000 |
| (73,100 | ) | 236,000 |
| (131,100 | ) | |||||||
Derivative Instruments-fair value |
| 1,277 |
| 12,829 |
| (11,552 | ) | 11,518 |
| (10,241 | ) | 9,009 |
| (7,732 | ) | |||||||
Accrued interest payable |
| 4,135 |
| 3,158 |
| 977 |
| 4,788 |
| (653 | ) | 3,500 |
| 635 |
| |||||||
Accounts payable and accrued expenses |
| 57,801 |
| 44,951 |
| 12,850 |
| 46,953 |
| 10,848 |
| 43,835 |
| 13,966 |
| |||||||
Deferred revenue |
| 8,599 |
| 6,464 |
| 2,135 |
| 8,623 |
| (24 | ) | 8,526 |
| 73 |
| |||||||
Capitalized lease obligations |
| 16,328 |
| 16,012 |
| 316 |
| 16,247 |
| 81 |
| 16,168 |
| 160 |
| |||||||
Deferred land lease payable |
| 15,486 |
| 14,946 |
| 540 |
| 15,326 |
| 160 |
| 15,166 |
| 320 |
| |||||||
Dividend and distributions payable |
| 23,447 |
| 17,923 |
| 5,524 |
| 24,003 |
| (556 | ) | 18,647 |
| 4,800 |
| |||||||
Liabilities related to assets held for sale |
| — |
| 748 |
| (748 | ) | — |
| — |
| — |
| — |
| |||||||
Security deposits |
| 23,182 |
| 20,872 |
| 2,310 |
| 22,776 |
| 406 |
| 21,968 |
| 1,214 |
| |||||||
Total Liabilities |
| $ | 1,069,335 |
| $ | 900,433 |
| $ | 168,902 |
| $ | 1,210,662 |
| $ | (141,327 | ) | $ | 1,256,268 |
| $ | (186,933 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Minority interest (2,225 units outstanding) at 6/30/04 |
| 54,240 |
| 54,164 |
| 76 |
| 52,756 |
| 1,484 |
| 54,791 |
| (551 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
8% Preferred Income Equity Redeemable Shares $0.01 par value, $25.00 mandatory liquidation preference |
| — |
| 111,984 |
| (111,984 | ) | — |
| — |
| — |
| — |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
7.625% Series C Perpetual Preferred Shares |
| 151,981 |
| — |
| 151,981 |
| 151,981 |
| — |
| 151,981 |
| (0 | ) | |||||||
7.875% Series D Perpetual Preferred Shares |
| 58,873 |
| — |
| 58,873 |
| — |
| 58,873 |
| 0 |
| 58,873 |
| |||||||
Common stock, $.01 par value 100,000 shares authorized, 38,692 issued and outstanding at 6/30/04 |
| 387 |
| 311 |
| 76 |
| 385 |
| 2 |
| 360 |
| 27 |
| |||||||
Additional paid – in capital |
| 830,821 |
| 609,321 |
| 221,500 |
| 825,842 |
| 4,979 |
| 728,882 |
| 101,939 |
| |||||||
Deferred compensation plans |
| (17,051 | ) | (8,608 | ) | (8,443 | ) | (17,642 | ) | 591 |
| (8,446 | ) | (8,605 | ) | |||||||
Accumulated other comprehensive income/(loss) |
| 6,337 |
| (12,702 | ) | 19,039 |
| (3,704 | ) | 10,041 |
| (961 | ) | 7,298 |
| |||||||
Retained earnings |
| 101,691 |
| 70,680 |
| 31,011 |
| 75,603 |
| 26,088 |
| 78,966 |
| 22,725 |
| |||||||
Total Stockholders’ Equity |
| $ | 1,133,039 |
| $ | 659,002 |
| $ | 474,037 |
| $ | 1,032,465 |
| $ | 100,574 |
| $ | 950,782 |
| $ | 182,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total Liabilities and Stockholders’ Equity |
| $ | 2,256,614 |
| $ | 1,725,583 |
| $ | 531,031 |
| $ | 2,295,883 |
| $ | (39,269 | ) | $ | 2,261,841 |
| $ | (5,227 | ) |
15
COMPARATIVE STATEMENTS OF OPERATIONS
($000’s omitted)
|
| Three Months Ended |
| Three Months Ended |
| Six Months Ended |
| ||||||||||
|
| Jun-04 |
| Jun-03 |
| +/- |
| % |
| Mar-04 |
| % |
| Jun-04 |
| Jun-03 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue, net |
| 61,366 |
| 57,021 |
| 4,345 |
| 8 | % | 60,262 |
| 2 | % | 121,628 |
| 107,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free rent |
| 1,596 |
| 1,695 |
| (99 | ) | -6 | % | 1,528 |
| 4 | % | 3,124 |
| 3,021 |
|
Amortization of free rent |
| (1,177 | ) | (1,165 | ) | (12 | ) | 1 | % | (1,145 | ) | 3 | % | (2,322 | ) | (1,907 | ) |
Net free rent |
| 419 |
| 530 |
| (111 | ) | -21 | % | 383 |
| 9 | % | 802 |
| 1,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent |
| 2,201 |
| 2,180 |
| 21 |
| 1 | % | 1,863 |
| 18 | % | 4,064 |
| 3,557 |
|
FAS 141 Revenue Adjustment |
| (58 | ) | (55 | ) | (3 | ) | 0 | % | (58 | ) | 0 | % | (116 | ) | (55 | ) |
Allowance for S/L tenant credit loss |
| (451 | ) | (367 | ) | (84 | ) | 23 | % | (939 | ) | -52 | % | (1,390 | ) | (776 | ) |
Escalation and reimbursement revenues |
| 10,372 |
| 10,022 |
| 350 |
| 3 | % | 9,790 |
| 6 | % | 20,162 |
| 18,200 |
|
Signage rent |
| 52 |
| 407 |
| (355 | ) | -87 | % | 70 |
| -26 | % | 122 |
| 732 |
|
Preferred equity investment income |
| 2,138 |
| 731 |
| 1,407 |
| 192 | % | 4,044 |
| -47 | % | 6,182 |
| 2,287 |
|
Investment income |
| 6,424 |
| 2,718 |
| 3,706 |
| 136 | % | 9,785 |
| -34 | % | 16,209 |
| 6,079 |
|
Other income |
| 6,982 |
| 1,164 |
| 5,818 |
| 500 | % | 2,490 |
| 180 | % | 9,472 |
| 2,863 |
|
Total Revenues, net |
| 89,445 |
| 74,351 |
| 15,094 |
| 20 | % | 87,690 |
| 2 | % | 177,135 |
| 141,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss from affiliates |
| — |
| (99 | ) | 99 |
| -100 | % | — |
| 0 | % | — |
| (196 | ) |
Equity in income from unconsolidated joint ventures |
| 10,834 |
| 3,651 |
| 7,183 |
| 197 | % | 10,551 |
| 3 | % | 21,385 |
| 7,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
| 22,249 |
| 19,313 |
| 2,936 |
| 15 | % | 23,355 |
| -5 | % | 45,604 |
| 35,998 |
|
Ground rent |
| 3,866 |
| 3,266 |
| 600 |
| 18 | % | 3,866 |
| 0 | % | 7,732 |
| 6,430 |
|
Real estate taxes |
| 12,339 |
| 10,955 |
| 1,384 |
| 13 | % | 12,341 |
| 0 | % | 24,680 |
| 20,584 |
|
Marketing, general and administrative |
| 4,467 |
| 2,804 |
| 1,663 |
| 59 | % | 10,903 |
| -59 | % | 15,370 |
| 5,990 |
|
Total Operating Expenses |
| 42,921 |
| 36,338 |
| 6,583 |
| 18 | % | 50,465 |
| -15 | % | 93,386 |
| 69,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
| 57,358 |
| 41,565 |
| 15,793 |
| 38 | % | 47,776 |
| 20 | % | 105,134 |
| 79,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
| 14,740 |
| 11,723 |
| 3,017 |
| 26 | % | 14,989 |
| -2 | % | 29,729 |
| 21,374 |
|
FAS 141 Interest Adjustment |
| (162 | ) | (149 | ) | (13 | ) | 0 | % | (159 | ) | 2 | % | (321 | ) | (149 | ) |
Depreciation and amortization |
| 13,318 |
| 11,573 |
| 1,745 |
| 15 | % | 13,048 |
| 2 | % | 26,366 |
| 22,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Minority Interest and Items |
| 29,462 |
| 18,418 |
| 11,044 |
| 60 | % | 19,898 |
| 48 | % | 49,360 |
| 36,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations |
| — |
| 958 |
| (958 | ) | -100 | % | — |
| 0 | % | — |
| 2,691 |
|
Gain on sale of Discontinued Operations |
| — |
| (300 | ) | 300 |
| -100 | % | — |
| 0 | % | — |
| 17,524 |
|
Equity in net gain on sale of joint venture property |
| 22,012 |
| — |
| 22,012 |
| 0 | % | — |
| 0 | % | 22,012 |
| — |
|
Minority interest - OP |
| (2,643 | ) | (1,103 | ) | (1,540 | ) | 140 | % | (943 | ) | 180 | % | (3,586 | ) | (2,165 | ) |
Net Income |
| 48,831 |
| 17,973 |
| 30,858 |
| 172 | % | 18,955 |
| 158 | % | 67,786 |
| 54,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on convertible preferred shares |
| — |
| 2,300 |
| (2,300 | ) | -100 | % | — |
| 0 | % | — |
| 4,600 |
|
Dividends on perpetual preferred shares |
| 3,446 |
| — |
| 3,446 |
| 0 | % | 3,000 |
| 15 | % | 6,446 |
| — |
|
Preferred stock accretion |
| — |
| 131 |
| (131 | ) | -100 | % | — |
| 0 | % | — |
| 262 |
|
Net Income Available For Common Shareholders |
| 45,385 |
| 15,542 |
| 29,843 |
| 192 | % | 15,955 |
| 184 | % | 61,340 |
| 49,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MG&A to Real Estate Revenue, net |
| 6.04 | % | 4.02 | % |
|
|
|
| 15.26 | % |
|
| 10.57 | % | 4.61 | % |
MG&A to Total Revenue, net |
| 4.99 | % | 3.77 | % |
|
|
|
| 12.43 | % |
|
| 8.68 | % | 4.25 | % |
Operating Expense to Real Estate Revenue, net |
| 30.08 | % | 27.67 | % |
|
|
|
| 32.70 | % |
|
| 31.37 | % | 27.72 | % |
EBITDA to Real Estate Revenue, net |
| 77.55 | % | 59.55 | % |
|
|
|
| 66.89 | % |
|
| 72.31 | % | 61.34 | % |
EBITDA before Ground Rent to Real Estate Revenue, net |
| 82.78 | % | 64.23 | % |
|
|
|
| 72.30 | % |
|
| 77.63 | % | 66.30 | % |
16
|
| Three Months Ended |
| Three Months Ended |
| Six Months Ended |
| ||||||||||
|
| Jun-04 |
| Jun-03 |
| +/- |
| % |
| Mar-04 |
| % |
| Jun-04 |
| Jun-03 |
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share (basic) |
| 1.18 |
| 0.50 |
| 0.68 |
| 136 | % | 0.42 |
| 181 | % | 1.60 |
| 1.60 |
|
Net income per share (diluted) |
| 1.13 |
| 0.49 |
| 0.64 |
| 131 | % | 0.40 |
| 183 | % | 1.54 |
| 1.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Available For Common Shareholders |
| 45,385 |
| 15,542 |
| 29,843 |
| 192 | % | 15,955 |
| 184 | % | 61,340 |
| 49,458 |
|
Book/Tax Depreciation Adjustment |
| 2,306 |
| 2,047 |
| 259 |
| 13 | % | 2,163 |
| 7 | % | 4,469 |
| 4,593 |
|
Book/Tax Gain Recognition Adjustment |
| (21,112 | ) | — |
| (21,112 | ) | 0 | % | — |
| 0 | % | (21,112 | ) | (12,827 | ) |
Book/Tax JV Net equity adjustment |
| 691 |
|
|
| 691 |
| 0 | % | 3,172 |
| -78 | % | 3,863 |
| — |
|
Other Operating Adjustments |
| (1,394 | ) | (2,455 | ) | 1,061 |
| -43 | % | (2,034 | ) | -31 | % | (3,428 | ) | (6,555 | ) |
C-corp Earnings |
| 66 |
| 99 |
| (33 | ) | -33 | % | 339 |
| -81 | % | 405 |
| 196 |
|
Taxable Income |
| 25,942 |
| 15,233 |
| 10,709 |
| 70 | % | 19,595 |
| 32 | % | 45,537 |
| 34,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend per share |
| 0.500 |
| 0.465 |
| 0.035 |
| 8 | % | 0.500 |
| 0 | % | 1.00 |
| 0.93 |
|
Estimated payout of taxable income |
| 76 | % | 110 | % | -34.00 | % | -31 | % | 97 | % | -22 | % | 85 | % | 96 | % |
Basic weighted average common shares |
| 38,638 |
| 31,082 |
| 7,556 |
| 24 | % | 37,978 |
| 2 | % | 38,308 |
| 30,895 |
|
Diluted weighted average common shares and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common share equivalents outstanding |
| 42,456 |
| 38,819 |
| 3,637 |
| 9 | % | 42,010 |
| 1 | % | 42,215 |
| 38,512 |
|
Payout of Taxable Income Analysis:
Estimated taxable income is derived from net income less straightline rent, free rent net of amortization of free rent, plus tax gain on sale of properties, credit loss, straightline ground rent and the difference between tax and GAAP depreciation. The Company has deferred the taxable gain on the sales 29 West 35th Street, 17 Battery Place South, 90 Broad Street, 50 West 23rd Street, 1370 Broadway, and 1412 Broadway through 1031 exchanges. In addition, the Company has deferred substantially all of the taxable gain resulting from the sale of an interest in One Park Avenue.
17
Balance sheet for unconsolidated joint ventures
Unaudited
(000’s omitted)
|
| June 30, 2004 |
| June 30, 2003 |
| ||||
|
| Total Property |
| SLG Property Interest |
| Total Property |
| SLG Property Interest |
|
Land & land interests |
| 440,996 |
| 193,274 |
| 216,995 |
| 115,709 |
|
Buildings & improvements |
| 1,835,709 |
| 808,492 |
| 909,754 |
| 484,605 |
|
|
| 2,276,705 |
| 1,001,766 |
| 1,126,749 |
| 600,314 |
|
Less accumulated depreciation |
| (68,651 | ) | (35,186 | ) | (50,549 | ) | (26,466 | ) |
|
|
|
|
|
|
|
|
|
|
Net Real Estate |
| 2,208,054 |
| 966,580 |
| 1,076,200 |
| 573,848 |
|
|
|
|
| — |
|
|
|
|
|
Cash and cash equivalents |
| 75,209 |
| 36,034 |
| 31,671 |
| 16,357 |
|
Restricted cash |
| 26,622 |
| 13,339 |
| 30,346 |
| 16,110 |
|
Tenant receivables, net of $641 reserve |
| 8,563 |
| 3,604 |
| 4,778 |
| 2,594 |
|
Deferred rents receivable, net of reserve for tenant credit loss of $995 at 6/30/04 |
| 23,019 |
| 11,887 |
| 18,407 |
| 9,646 |
|
Deferred costs, net |
| 15,168 |
| 7,883 |
| 12,328 |
| 6,580 |
|
Other assets |
| 20,337 |
| 9,382 |
| 14,939 |
| 8,151 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
| 2,376,972 |
| 1,048,709 |
| 1,188,669 |
| 633,286 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan payable |
| 1,132,850 |
| 496,542 | references pages 22 & 25 | 741,993 |
| 395,712 |
|
Derivative Instruments-fair value |
| (38 | ) | (21 | ) | (0 | ) | (0 | ) |
Accrued interest payable |
| 3,552 |
| 1,500 |
| 2,063 |
| 1,069 |
|
Accounts payable and accrued expenses |
| 56,085 |
| 25,819 |
| 15,888 |
| 8,222 |
|
Security deposits |
| 6,903 |
| 3,279 |
| 5,454 |
| 2,749 |
|
Contributed Capital (1) |
| 1,177,620 |
| 521,590 | references page 14 | 423,271 |
| 225,534 |
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
| 2,376,972 |
| 1,048,709 |
| 1,188,669 |
| 633,286 |
|
As of June 30, 2004 the Company has seven joint venture interests representing a 50% interest in 180 Madison Avenue acquired in December 2000, a 55% interest in 1250 Broadway acquired in September 2001, a 50% interest in 100 Park Avenue acquired in February 2000, a 16.7% interest in 1 Park Avenue reduced from 55% in May 2004, a 55% interest in 1515 Broadway acquired in May 2002, 45% interest in 1221 Avenue of the Americas acquired in December 2003, and 35% interest in 19 W. 44th Street acquired in March 2004. These interests are accounted for on the equity method of accounting and, therefore, are not consolidated into the company’s financial statements. Additional detail is available on page 36.
(1) Contributed capital includes adjustments to capital to reflect our share of capital based on implied sales prices of partially sold or contributed properties. Our investment in unconsolidated joint ventures reflects our actual contributed capital based on cash activity and may also include our share of deferred gains from partial joint venture sales.
18
JOINT VENTURE STATEMENTS
Statements of operations for unconsolidated joint ventures
Unaudited
(000’s omitted)
|
| Three Months Ended June 30, 2004 |
| Three Months Ended June 30, 2003 |
| ||||||||
|
| Total Property |
| SLG |
| SLG |
| Total Property |
| SLG |
| SLG |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Revenue, net |
| 64,283 |
| 30,028 |
|
|
| 33,108 |
| 17,586 |
|
|
|
Free rent |
| 1,345 |
| 699 |
|
|
| 930 |
| 499 |
|
|
|
Amortization of free rent |
| (174 | ) | (93 | ) |
|
| (284 | ) | (146 | ) |
|
|
Net free rent |
| 1,171 |
| 606 |
|
|
| 646 |
| 353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent |
| 3,357 |
| 1,507 |
|
|
| 1,866 |
| 996 |
|
|
|
FAS 141 Adjustment |
| 488 |
| 230 |
|
|
| — |
| — |
|
|
|
Allowance for S/L tenant credit loss |
| (560 | ) | (259 | ) |
|
| (265 | ) | (140 | ) |
|
|
Escalation and reimbursement revenues |
| 12,744 |
| 6,119 |
|
|
| 8,132 |
| 4,313 |
|
|
|
Investment income |
| 90 |
| 48 |
|
|
| 142 |
| 76 |
|
|
|
Other income |
| 345 |
| 180 |
|
|
| 9 |
| 5 |
|
|
|
Total Revenues, net |
| 81,918 |
| 38,459 |
|
|
| 43,638 |
| 23,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
| 19,465 |
| 9,221 |
|
|
| 12,252 |
| 6,510 |
|
|
|
Real estate taxes |
| 14,390 |
| 6,826 |
|
|
| 8,186 |
| 4,345 |
|
|
|
Total Operating Expenses |
| 33,855 |
| 16,047 |
|
|
| 20,438 |
| 10,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NOI |
| 48,063 |
| 22,412 |
|
|
| 23,200 |
| 12,334 |
|
|
|
Cash NOI |
| 44,095 |
| 20,558 |
|
|
| 20,953 |
| 11,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
| 11,175 |
| 5,038 |
|
|
| 8,964 |
| 4,730 |
|
|
|
Depreciation and amortization |
| 13,683 |
| 6,540 |
|
|
| 7,432 |
| 3,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
| 23,205 |
| 10,834 |
| references page 16 |
| 6,804 |
| 3,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Real Estate Depreciation |
| 12,288 |
| 5,780 |
| references page 21 |
| 6,485 |
| 3,438 |
|
|
|
Plus: Management & Leasing Fees |
| — |
| — |
| 116 |
| — |
| — |
| 50 |
|
Funds From Operations |
| 35,493 |
| 16,614 |
|
|
| 13,289 |
| 7,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAD Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Non Real Estate Depreciation |
| 1,395 |
| 760 |
|
|
| 947 |
| 515 |
|
|
|
Plus: 2% Allowance for S/L Tenant Credit Loss |
| 560 |
| 259 |
|
|
| 265 |
| 164 |
|
|
|
Less: Net FAS 141 Adjustment |
| (488 | ) | (230 | ) |
|
|
|
|
|
|
|
|
Less: Free and S/L Rent |
| (4,528 | ) | (2,112 | ) |
|
| (2,512 | ) | (1,349 | ) |
|
|
Less: Second Cycle Tenant Improvement, |
| (2,071 | ) | (1,085 | ) |
|
| (839 | ) | (430 | ) |
|
|
Less: Second Cycle Leasing Commissions |
| (1,121 | ) | (588 | ) |
|
| (199 | ) | (100 | ) |
|
|
Less: Recurring Capex |
| (425 | ) | (209 | ) |
|
| (87 | ) | (45 | ) |
|
|
FAD Adjustment |
| (6,678 | ) | (3,205 | ) |
|
| (2,425 | ) | (1,245 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense to Real Estate Revenue, net |
| 23.87 | % | 24.10 | % |
|
| 28.00 | % | 28.00 | % |
|
|
GAAP NOI to Real Estate Revenue, net |
| 58.93 | % | 58.58 | % |
|
| 53.03 | % | 53.05 | % |
|
|
Cash NOI to Real Estate Revenue, net |
| 54.07 | % | 53.73 | % |
|
| 47.89 | % | 47.85 | % |
|
|
19
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
($000’s omitted)
|
| Series C |
| Series D |
| Common Stock |
| Additional |
| Retained Earnings |
| Deferred |
| Accumulated |
| TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2002 |
| 0 |
| 0 |
| 304 |
| 592,585 |
| 50,058 |
| (5,562 | ) | (10,740 | ) | 626,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
| 98,159 |
|
|
|
|
| 98,159 |
|
Preferred Dividend and Accretion |
|
|
|
|
|
|
|
|
| (7,712 | ) |
|
|
|
| (7,712 | ) |
Exercise of employee stock options |
|
|
|
|
| 3 |
| 7,589 |
|
|
|
|
|
|
| 7,592 |
|
Stock based compensation - fair value |
|
|
|
|
|
|
| 632 |
|
|
|
|
|
|
| 632 |
|
Cash distributions declared ($1.895 per common share) |
|
|
|
|
|
|
|
|
| (61,539 | ) |
|
|
|
| (61,539 | ) |
Comprehensive Income - Unrealized gain of derivative instruments |
|
|
|
|
|
|
|
|
|
|
|
|
| 9,779 |
| 9,779 |
|
Dividend reinvestment plan |
|
|
|
|
| 1 |
| 3,650 |
|
|
|
|
|
|
| 3,651 |
|
Redemption of operating partnership units |
|
|
|
|
| 3 |
| 5,699 |
|
|
|
|
|
|
| 5,702 |
|
Conversion of preferred stock |
|
|
|
|
| 47 |
| 112,059 |
|
|
|
|
|
|
| 112,106 |
|
Net proceeds from preffered stock offering |
| 151,981 |
|
|
|
|
|
|
|
|
|
|
|
|
| 151,981 |
|
Deferred compensation plan |
|
|
|
|
| 2 |
| 6,668 |
|
|
| (6,670 | ) |
|
| — |
|
Amortization of deferred compensation |
|
|
|
|
|
|
|
|
|
|
| 3,786 |
|
|
| 3,786 |
|
Balance at December 31, 2003 |
| 151,981 |
| — |
| 360 |
| 728,882 |
| 78,966 |
| (8,446 | ) | (961 | ) | 950,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
| 67,786 |
|
|
|
|
| 67,786 |
|
Preferred Dividend |
|
|
|
|
|
|
|
|
| (6,446 | ) |
|
|
|
| (6,446 | ) |
Exercise of employee stock options |
|
|
|
|
| 4 |
| 9,214 |
|
|
|
|
|
|
| 9,218 |
|
Stock based compensation fair value |
|
|
|
|
|
|
| 519 |
|
|
|
|
|
|
| 519 |
|
Cash distributions declared ($1.00 per common share) |
|
|
|
|
|
|
|
|
| (38,615 | ) |
|
|
|
| (38,615 | ) |
Comprehensive Income - Unrealized gain of derivative instruments |
|
|
|
|
|
|
|
|
|
|
|
|
| 7,298 |
| 7,298 |
|
Dividend reinvestment plan |
|
|
|
|
| 1 |
| 2,585 |
|
|
|
|
|
|
| 2,586 |
|
Redemption of operating partnership units |
|
|
|
|
| 1 |
| 1,911 |
|
|
|
|
|
|
| 1,912 |
|
Net proceeds from issuance of common stock |
|
|
|
|
| 18 |
| 73,617 |
|
|
|
|
|
|
| 73,635 |
|
Net proceeds from preferred stock offering |
|
|
| 58,873 |
|
|
|
|
|
|
|
|
|
|
| 58,873 |
|
Deferred compensation plan |
|
|
|
|
| 3 |
| 14,093 |
|
|
| (14,096 | ) |
|
| — |
|
Amortization of deferred compensation |
|
|
|
|
|
|
|
|
|
|
| 5,491 |
|
|
| 5,491 |
|
Balance at June 30, 2004 |
| 151,981 |
| 58,873 |
| 387 |
| 830,821 |
| 101,691 |
| (17,051 | ) | 6,337 |
| 1,133,039 |
|
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION
|
| Common Stock |
| OP Units |
| Stock-Based |
| Sub-total |
| Preferred Stock |
| Diluted Shares |
|
Share Count at December 31, 2003 |
| 36,015,791 |
| 2,305,955 |
| — |
| 38,321,746 |
| — |
| 38,970,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD share activity |
| 2,676,085 |
| (81,250 | ) | — |
| 2,594,835 |
| — |
| 2,594,835 |
|
Share Count at June 30, 2004 - Basic |
| 38,691,876 |
| 2,224,705 |
| — |
| 40,916,581 |
| — |
| 40,916,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilution Factor |
| (384,024 | ) | 30,547 |
| 1,651,988 |
| 1,298,511 |
|
|
| 1,298,511 |
|
Weighted Average Share Count at June 30, 2004 - Diluted |
| 38,307,852 |
| 2,255,252 |
| 1,651,988 |
| 42,215,092 |
| — |
| 42,215,092 |
|
20
COMPARATIVE COMPUTATION OF FFO AND FAD
Unaudited
($000’s omitted - except per share data)
|
|
|
| Three Months Ended |
| Three Months Ended |
| Six Months Ended |
| ||||||||||
|
|
|
| Jun-04 |
| Jun-03 |
| % |
| Mar-04 |
| % |
| Jun-04 |
| Jun-03 |
| % |
|
Funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net Income before Minority Interests and Items |
| 29,462 |
| 18,418 |
| 60 | % | 19,898 |
| 48 | % | 49,360 |
| 36,269 |
| 36 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: |
| Depreciation and Amortization |
| 13,318 |
| 11,573 |
| 15 | % | 13,048 |
| 2 | % | 26,366 |
| 22,163 |
| 19 | % |
|
| FFO from Discontinued Operations |
| — |
| 1,333 |
| -100 | % | — |
| 0 | % | — |
| 3,517 |
| -100 | % |
|
| FFO adjustment for Joint Ventures |
| 5,780 |
| 3,438 |
| 68 | % | 6,000 |
| -4 | % | 11,780 |
| 6,825 |
| 73 | % |
Less: |
| Dividends on Convertible Preferred Shares |
| — |
| 2,300 |
| -100 | % | — |
| 0 | % | — |
| 4,600 |
| -100 | % |
|
| Dividends on Perpetual Preferred Shares |
| 3,446 |
| — |
| 0 | % | 3,000 |
| 15 | % | 6,446 |
| — |
| 0 | % |
|
| Non Real Estate Depreciation/Amortization of Finance Costs |
| 968 |
| 886 |
| 9 | % | 956 |
| 1 | % | 1,924 |
| 2,371 |
| -19 | % |
|
| Funds From Operations - Basic |
| 44,146 |
| 31,576 |
| 40 | % | 34,990 |
| 26 | % | 79,136 |
| 61,804 |
| 28 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funds From Operations - Basic per Share |
| 1.08 |
| 0.94 |
| 15 | % | 0.87 |
| 24 | % | 1.95 |
| 2.00 |
| -2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: |
| Dividends on Convertible Preferred Shares |
| — |
| 2,300 |
| -100 | % | — |
| 0 | % | — |
| 4,600 |
| -100 | % |
|
| Funds From Operations - Diluted |
| 44,146 |
| 33,876 |
| 30 | % | 34,990 |
| 26 | % | 79,136 |
| 66,404 |
| 19 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funds From Operations - Diluted per Share |
| 1.04 |
| 0.87 |
| 20 | % | 0.83 |
| 25 | % | 1.87 |
| 1.72 |
| 9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds Available for Distribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
FFO |
|
|
| 44,146 |
| 33,876 |
| 30 | % | 34,990 |
| 26 | % | 79,136 |
| 66,404 |
| 19 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: |
| Non Real Estate Depreciation |
| 968 |
| 886 |
| 9 | % | 956 |
| 1 | % | 1,924 |
| 2,371 |
| -19 | % |
|
| Allowance for S/L tenant credit loss |
| 451 |
| 367 |
| 23 | % | 939 |
| -52 | % | 1,390 |
| 776 |
| 79 | % |
|
| Straight-line Ground Rent |
| 160 |
| 160 |
| 0 | % | 160 |
| 0 | % | 320 |
| 320 |
| 0 | % |
|
| Non-cash Deferred Compensation |
| 591 |
| 616 |
| -4 | % | 4,900 |
| -88 | % | 5,491 |
| 1,232 |
| 346 | % |
Less: |
| FAD adjustment for Joint Ventures |
| 3,205 |
| 1,245 |
| 157 | % | 3,561 |
| -10 | % | 6,766 |
| 4,686 |
| 44 | % |
|
| FAD adjustment for Discontinued Operations |
| — |
| 130 |
| -100 | % | — |
| 0 | % | — |
| 280 |
| -100 | % |
|
| Straight-line Rental Income |
| 2,201 |
| 2,180 |
| 1 | % | 1,863 |
| 18 | % | 4,064 |
| 3,556 |
| 14 | % |
|
| Net FAS 141 Adjustment |
| 104 |
| 93 |
| 12 | % | 101 |
| 3 | % | 205 |
| 93 |
| 120 | % |
|
| Free Rent - Occupied (Net of Amortization, incl. First Cycle) |
| 419 |
| 530 |
| -21 | % | 383 |
| 9 | % | 802 |
| 1,114 |
| -28 | % |
|
| Amortization of Mortgage Investment Discount |
| 17 |
| 40 |
| -57 | % | 44 |
| -61 | % | 61 |
| 122 |
| -50 | % |
|
| Second Cycle Tenant Improvements |
| 6,680 |
| 5,704 |
| 17 | % | 6,952 |
| -4 | % | 13,632 |
| 7,164 |
| 90 | % |
|
| Second Cycle Leasing Commissions |
| 2,395 |
| 1,697 |
| 41 | % | 5,240 |
| -54 | % | 7,635 |
| 3,153 |
| 142 | % |
|
| Revenue Enhancing Recurring CAPEX |
| 167 |
| 137 |
| 21 | % | 62 |
| 169 | % | 229 |
| 312 |
| -27 | % |
|
| Non- Revenue Enhancing Recurring CAPEX |
| 744 |
| 886 |
| -16 | % | 317 |
| 135 | % | 1,061 |
| 1,249 |
| -15 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds Available for Distribution |
| 30,384 |
| 23,263 |
| 31 | % | 23,422 |
| 30 | % | 53,806 |
| 49,374 |
| 9 | % | ||
|
| Diluted per Share |
| 0.72 |
| 0.60 |
| 20 | % | 0.56 |
| 28 | % | 1.27 |
| 1.28 |
| -1 | % |
First Cycle Leasing Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Tenant Improvement |
| 144 |
| 2,304 |
| -94 | % | 48 |
| 199 | % | 192 |
| 2,304 |
| -92 | % |
|
| Leasing Commissions |
| — |
| 261 |
| -100 | % | — |
| 0 | % | — |
| 261 |
| -100 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds Available for Distribution after First Cycle Leasing Costs |
| 30,240 |
| 20,698 |
| 47 | % | 23,374 |
| 29 | % | 53,614 |
| 46,809 |
| 15 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds Available for Distribution per Diluted Weighted Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Unit and Common Share |
| 0.71 |
| 0.53 |
| 35 | % | 0.56 |
| 28 | % | 1.27 |
| 1.22 |
| 5 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redevelopment Costs |
| 1,203 |
| 3,712 |
| -68 | % | 876 |
| 37 | % | 2,079 |
| 4,347 |
| -52 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payout Ratio of Funds From Operations |
| 48.09 | % | 53.29 | % |
|
| 60.03 | % |
|
| 53.34 | % | 53.94 | % |
|
| ||
Payout Ratio of Funds Available for Distribution |
| 69.87 | % | 77.59 | % |
|
| 89.68 | % |
|
| 78.46 | % | 72.54 | % |
|
| ||
21
Capitalization Analysis
Unaudited
($000’s omitted)
|
| June 30, |
| March 31, |
| December 31, |
| ||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
|
Market Capitalization |
|
|
|
|
|
|
|
|
|
Common Equity: |
|
|
|
|
|
|
|
|
|
Common Shares Outstanding |
| 38,692 |
| 31,173 |
| 38,551 |
| 36,016 |
|
OP Units Outstanding |
| 2,225 |
| 2,306 |
| 2,225 |
| 2,306 |
|
Total Common Equity (Shares and Units) |
| 40,917 |
| 33,479 |
| 40,776 |
| 38,322 |
|
Share Price (End of Period) |
| 46.80 |
| 34.89 |
| 47.70 |
| 41.05 |
|
Equity Market Value |
| 1,914,902 |
| 1,168,094 |
| 1,945,017 |
| 1,573,114 |
|
Preferred Equity at Liquidation Value: |
| 218,750 |
| 115,000 |
| 157,500 |
| 157,500 |
|
Real Estate Debt |
|
|
|
|
|
|
|
|
|
Property Level Mortgage Debt |
| 514,180 |
| 620,530 |
| 515,018 |
| 515,871 |
|
Company’s portion of Joint Venture Mortgages |
| 496,542 |
| 396,047 |
| 489,940 |
| 473,558 |
|
Outstanding Balance on - Term Loans |
| 300,000 |
| 100,000 |
| 367,410 |
| 367,578 |
|
Outstanding Balance on – Secured Credit Lines |
| 104,900 |
| 7,000 |
| 100,000 |
| 66,000 |
|
Outstanding Balance on – Unsecured Credit Line |
| — |
| 35,000 |
| 78,000 |
| 170,000 |
|
Total Combined Debt |
| 1,415,622 |
| 1,158,577 |
| 1,550,368 |
| 1,593,007 |
|
Total Market Cap (Debt & Equity) |
| 3,549,274 |
| 2,441,671 |
| 3,652,885 |
| 3,323,621 |
|
Availability |
|
|
|
|
|
|
|
|
|
Senior Unsecured Line of Credit |
|
|
|
|
|
|
|
|
|
Maximum Line Available |
| 300,000 |
| 300,000 |
| 300,000 |
| 300,000 |
|
Letters of Credit issued |
| 4,000 |
| 5,000 |
| 4,000 |
| 4,000 |
|
Outstanding Balance |
| — |
| 35,000 |
| 78,000 |
| 170,000 |
|
Net Line Availability |
| 296,000 |
| 260,000 |
| 218,000 |
| 126,000 |
|
Term Loans |
|
|
|
|
|
|
|
|
|
Maximum Available |
| 300,000 |
| 200,000 |
| 367,410 |
| 367,578 |
|
Outstanding Balance |
| 300,000 |
| 100,000 |
| 367,410 |
| 367,578 |
|
Net Availability |
| — |
| 100,000 |
| — |
| — |
|
Secured Lines of Credit |
|
|
|
|
|
|
|
|
|
Maximum Line Available |
| 143,900 |
| 75,000 |
| 125,000 |
| 75,000 |
|
Outstanding Balance |
| 104,900 |
| 7,000 |
| 100,000 |
| 66,000 |
|
Net Line Availability |
| 39,000 |
| 68,000 |
| 25,000 |
| 9,000 |
|
Maximum availability under Lines of Credit & Term Loans |
| 335,000 |
| 428,000 |
| 243,000 |
| 135,000 |
|
Ratio Analysis |
|
|
|
|
|
|
|
|
|
Consolidated Basis |
|
|
|
|
|
|
|
|
|
Debt to Market Cap Ratio |
| 30.11 | % | 37.28 | % | 33.53 | % | 39.28 | % |
Debt to Gross Real Estate Book Ratio (1) |
| 59.95 | % | 57.92 | % | 71.48 | % | 81.21 | % |
Secured Real Estate Debt to Secured Assets Gross Book (1) |
| 74.63 | % | 69.89 | % | 76.00 | % | 76.59 | % |
Unsecured Debt to Unencumbered Assets-Gross Book Value (1) |
| 29.66 | % | 31.85 | % | 56.77 | % | 56.92 | % |
Secured Line of Credit to Structured Finance Assets (1) |
| 39.69 | % | 5.58 | % | 36.16 | % | 30.14 | % |
Joint Ventures Allocated |
|
|
|
|
|
|
|
|
|
Combined Debt to Market Cap Ratio |
| 39.88 | % | 47.45 | % | 42.44 | % | 47.93 | % |
Debt to Gross Real Estate Book Ratio (1) |
| 55.54 | % | 60.48 | % | 61.84 | % | 114.45 | % |
Secured Debt to Secured Assets Gross Book (1, 2) |
| 60.30 | % | 68.34 | % | 59.84 | % | 146.89 | % |
(1) Excludes property level capital obligations.
(2) Secured debt ratio includes only property level secured debt.
22
SELECTED FINANCIAL DATA
Property NOI and Coverage Ratios
Unaudited
($000’s omitted)
|
| Three Months Ended |
| Three Months Ended |
| Six Months Ended |
| ||||||||||||||||||
|
| Jun-04 |
| Jun-03 |
| +/- |
| % |
| Mar-04 |
| +/- |
| % |
| Jun-04 |
| Jun-03 |
| +/- |
| % |
| ||
Funds from operations |
| 44,146 |
| 31,576 |
| 12,570 |
| 40 | % | 34,990 |
| 9,156 |
| 26 | % | 79,136 |
| 61,804 |
| 17,332 |
| 28 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
| Non – Building Revenue |
| 19,498 |
| 7,723 |
| 11,775 |
| 152 | % | 20,685 |
| (1,187 | ) | -6 | % | 40,183 |
| 17,320 |
| 22,863 |
| 132 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: |
| Interest Expense (incl. Capital Lease Int.) |
| 14,740 |
| 11,966 |
| 2,774 |
| 23 | % | 14,989 |
| (249 | ) | -2 | % | 29,729 |
| 22,271 |
| 7,458 |
| 33 | % |
|
| Non Real Estate Depreciation |
| 968 |
| 886 |
| 82 |
| 9 | % | 956 |
| 12 |
| 1 | % | 1,924 |
| 2,349 |
| (425 | ) | -18 | % |
|
| MG&A Expense |
| 4,467 |
| 2,804 |
| 1,663 |
| 59 | % | 10,903 |
| (6,435 | ) | -59 | % | 15,370 |
| 5,990 |
| 9,380 |
| 157 | % |
|
| Preferred Dividend |
| 3,446 |
| 2,300 |
| 1,146 |
| 50 | % | 3,000 |
| 446 |
| 15 | % | 6,446 |
| 4,600 |
| 1,846 |
| 40 | % |
|
| GAAP NOI |
| 48,269 |
| 41,809 |
| 6,460 |
| 15 | % | 44,153 |
| 4,116 |
| 9 | % | 92,422 |
| 79,694 |
| 12,728 |
| 16 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Less: |
| Free Rent (Net of Amortization) |
| 1,025 |
| 411 |
| 614 |
| 149 | % | 886 |
| 139 |
| 16 | % | 1,911 |
| 1,635 |
| 276 |
| 17 | % |
|
| Net FAS 141 Adjustment |
| 334 |
| 93 |
| 241 |
| 259 | % | 292 |
| 42 |
| 14 | % | 626 |
| 93 |
| 533 |
| 573 | % |
|
| Straightline Revenue Adjustment |
| 3,708 |
| 3,239 |
| 469 |
| 14 | % | 3,428 |
| 280 |
| 8 | % | 7,136 |
| 5,780 |
| 1,356 |
| 23 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: |
| Allowance for S/L tenant credit loss |
| 710 |
| 367 |
| 343 |
| 93 | % | 939 |
| (229 | ) | -24 | % | 1,649 |
| 776 |
| 873 |
| 112 | % |
|
| Ground Lease Straight-line Adjustment |
| 160 |
| 160 |
| — |
| 0 | % | 160 |
| — |
| 0 | % | 320 |
| 320 |
| — |
| 0 | % |
|
| Cash NOI |
| 44,072 |
| 38,593 |
| 5,479 |
| 14 | % | 40,646 |
| 3,427 |
| 8 | % | 84,718 |
| 73,282 |
| 11,436 |
| 16 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real Estate Revenue, net |
| 74,410 |
| 72,157 |
| 2,253 |
| 3 | % | 72,368 |
| 2,042 |
| 3 | % | 146,778 |
| 136,671 |
| 10,107 |
| 7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of debt and fixed charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Interest on Fixed Rate Loans |
| 12,679 |
| 7,663 |
| 5,016 |
| 65 | % | 11,211 |
| 1,468 |
| 13 | % | 23,890 |
| 13,894 |
| 9,996 |
| 72 | % |
|
| Interest on Floating Rate Loans |
| 2,061 |
| 4,303 |
| (2,242 | ) | -52 | % | 3,778 |
| (1,717 | ) | -45 | % | 5,839 |
| 8,377 |
| (2,538 | ) | -30 | % |
|
| Fixed Amortization Principal Payments |
| 908 |
| 1,005 |
| (97 | ) | -10 | % | 1,068 |
| (160 | ) | -15 | % | 1,976 |
| 1,935 |
| 41 |
| 2 | % |
|
| Total Debt Service |
| 15,648 |
| 12,971 |
| 2,677 |
| 21 | % | 16,057 |
| (409 | ) | -3 | % | 31,705 |
| 24,206 |
| 7,499 |
| 31 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payments under Ground Lease Arrangements |
| 3,706 |
| 3,106 |
| 600 |
| 19 | % | 3,706 |
| — |
| 0 | % | 7,412 |
| 6,110 |
| 1,302 |
| 21 | % |
|
| Dividends on redeemable/convertible preferred shares |
| — |
| 2,300 |
| (2,300 | ) | -100 | % | — |
| — |
| 0 | % | — |
| 4,600 |
| (4,600 | ) | -100 | % |
|
| Dividends on perpetual preferred shares |
| 3,446 |
| — |
| 3,446 |
| 0 | % | 3,000 |
| 446 |
| 15 | % | 6,446 |
| — |
| 6,446 |
| 0 | % |
|
| Total Fixed Charges |
| 22,800 |
| 18,377 |
| 4,423 |
| 24 | % | 22,763 |
| 37 |
| 0 | % | 45,563 |
| 34,916 |
| 10,647 |
| 30 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
| 63,399 |
| 46,867 |
|
|
|
|
| 59,035 |
|
|
|
|
| 122,434 |
| 90,562 |
|
|
|
|
| ||
Interest Coverage Ratio |
| 4.30 |
| 3.92 |
|
|
|
|
| 3.94 |
|
|
|
|
| 4.12 |
| 4.07 |
|
|
|
|
| ||
Debt Service Coverage ratio |
| 4.05 |
| 3.61 |
|
|
|
|
| 3.68 |
|
|
|
|
| 3.86 |
| 3.74 |
|
|
|
|
| ||
Fixed Charge Coverage ratio |
| 2.78 |
| 2.55 |
|
|
|
|
| 2.59 |
|
|
|
|
| 2.69 |
| 2.59 |
|
|
|
|
| ||
23
SELECTED FINANCIAL DATA
2004 Same Store
Unaudited
($000’s omitted)
|
| Three Months Ended June 30, |
| Three Months Ended March 31, |
| ||||||||||||
|
| 2004 |
| 2003 |
| +/- |
| % |
| 2004 |
| +/- |
| % |
| ||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Rental Revenue |
| 48,660 |
| 46,535 |
| 2,125 |
| 5 | % | 47,540 |
| 1,120 |
| 2 | % | |
| Credit Loss |
| (334 | ) | (408 | ) | 74 |
| -18 | % | (831 | ) | 495 |
| -60 | % | |
| Signage Rent |
| 52 |
| 386 |
| (334 | ) | -86 | % | 50 |
| 2 |
| 4 | % | |
| Escalation & Reimbursement Revenues |
| 7,987 |
| 8,504 |
| (517 | ) | -6 | % | 7,864 |
| 123 |
| 2 | % | |
| Investment & Other Income |
| 103 |
| 295 |
| (192 | ) | -65 | % | 142 |
| (39 | ) | -28 | % | |
| Total Revenues |
| 56,468 |
| 55,312 |
| 1,156 |
| 2 | % | 54,765 |
| 1,703 |
| 3 | % | |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Operating Expense |
| 14,609 |
| 14,426 |
| 184 |
| 1 | % | 15,804 |
| (1,196 | ) | -8 | % | |
| Ground Rent |
| 3,159 |
| 3,159 |
| (0 | ) | 0 | % | 3,159 |
| 0 |
| 0 | % | |
| Real Estate Taxes |
| 9,308 |
| 8,815 |
| 493 |
| 6 | % | 9,306 |
| 2 |
| 0 | % | |
|
|
| 27,076 |
| 26,400 |
| 676 |
| 3 | % | 28,269 |
| (1,193 | ) | -4 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| EBITDA |
| 29,392 |
| 28,912 |
| 481 |
| 2 | % | 26,496 |
| 2,896 |
| 11 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Interest |
| 5,960 |
| 7,283 |
| (1,323 | ) | -18 | % | 6,305 |
| (345 | ) | -5 | % | |
| Depreciation & Amortization |
| 9,349 |
| 8,472 |
| 877 |
| 10 | % | 9,245 |
| 104 |
| 1 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Income Before Minority Interest |
| 14,083 |
| 13,157 |
| 926 |
| 7 | % | 10,946 |
| 3,137 |
| 29 | % | |
Plus: | Real Estate Depreciation & Amortization |
| 9,198 |
| 8,199 |
| 999 |
| 12 | % | 9,072 |
| 126 |
| 1 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| FFO |
| 23,281 |
| 21,356 |
| 1,925 |
| 9 | % | 20,018 |
| 3,263 |
| 16 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less: | Non – Building Revenue |
| 90 |
| 71 |
| 19 |
| 26 | % | 125 |
| (35 | ) | -28 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Plus: | Interest Expense |
| 5,960 |
| 7,283 |
| (1,323 | ) | -18 | % | 6,305 |
| (345 | ) | -5 | % | |
| Non Real Estate Depreciation |
| 151 |
| 273 |
| (122 | ) | -45 | % | 174 |
| (23 | ) | -13 | % | |
|
| GAAP NOI |
| 29,302 |
| 28,841 |
| 461 |
| 2 | % | 26,372 |
| 2,930 |
| 11 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cash Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Less: | Free Rent (Net of Amortization) |
| 496 |
| 258 |
| 238 |
| 92 | % | 461 |
| 35 |
| 8 | % | |
| Straightline Revenue Adjustment |
| 1,339 |
| 1,391 |
| (52 | ) | -4 | % | 1,063 |
| 276 |
| 26 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Plus: | Allowance for S/L tenant credit loss |
| 334 |
| 408 |
| (74 | ) | -18 | % | 831 |
| (495 | ) | -60 | % | |
| Ground Lease Straight-line Adjustment |
| 160 |
| 159 |
| 1 |
| 0 | % | 160 |
| — |
| 0 | % | |
|
| Cash NOI |
| 27,961 |
| 27,759 |
| 202 |
| 1 | % | 25,839 |
| 2,122 |
| 8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating Margins |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| GAAP NOI to Real Estate Revenue, net |
| 51.67 | % | 51.83 | % |
|
|
|
| 47.54 | % |
|
|
|
| |
| Cash NOI to Real Estate Revenue, net |
| 49.30 | % | 49.88 | % |
|
|
|
| 46.58 | % |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| GAAP NOI before Ground Rent/Real Estate Revenue, net |
| 57.24 | % | 57.51 | % |
|
|
|
| 53.24 | % |
|
|
|
| |
| Cash NOI before Ground Rent/Real Estate Revenue, net |
| 54.59 | % | 55.27 | % |
|
|
|
| 51.99 | % |
|
|
|
| |
24
DEBT SUMMARY SCHEDULE
Unaudited
($000’s omitted)
|
| Principal O/S |
| Coupon |
| Fixed |
| 2004 |
| Maturity |
| Due at |
| As-Of |
| Earliest |
|
Fixed rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured fixed Rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125 Broad Street |
| 75,864 |
| 8.29 | % | 7,058 |
| 717 |
| 10/11/2007 |
| 72,320 |
| — |
| Oct-03 |
|
673 First Avenue |
| 35,000 |
| 5.67 | % | 1,985 |
| — |
| 2/20/2013 |
| 29,863 |
| — |
| Feb-06 |
|
CIBC (against 1414 Ave. of Americas and 70 W. 36th St.) |
| 25,133 |
| 7.90 | % | 2,453 |
| 387 |
| 5/1/2009 |
| 12,196 |
| — |
| Apr-03 |
|
711 Third Avenue |
| 47,823 |
| 8.13 | % | 4,444 |
| 434 |
| 9/10/2005 |
| 47,247 |
| — |
| Jun-04 |
|
220 E 42nd Street |
| 210,000 |
| 5.23 | % | 11,360 |
| — |
| 11/1/2013 |
| 175,299 |
| — |
| Dec-06 |
|
420 Lexington Avenue |
| 120,360 |
| 8.44 | % | 12,563 |
| 1,871 |
| 11/1/2010 |
| 104,406 |
| — |
| Open |
|
|
| 514,180 |
| 6.86 | % | 39,863 |
| 3,409 |
|
|
| 441,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured fixed Rate Debt-Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Unsecured Term Loan (Libor + 150 bps) (1) |
| 100,000 |
| 3.83 | % | 3,830 |
| — |
| 12/29/2008 |
| 100,000 |
| — |
| Dec-04 |
|
Secured Credit Facilities - hedged (2) |
| 70,000 |
| 7.80 | % | — |
| — |
| 12/26/2006 |
| — |
| — |
| Nov-04 |
|
|
| 170,000 |
| 5.46 | % | 3,830 |
| — |
|
|
| 100,000 |
|
|
|
|
|
Unsecured fixed rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Unsecured Term Loan (Libor swap + 170bps) (3) |
| 200,000 |
| 5.06 | % | 10,119 |
| — |
| 6/1/2008 |
| 200,000 |
| — |
| Nov-05 |
|
|
| 200,000 |
| 5.06 | % | 10,119 |
| — |
|
|
| 200,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Rate Debt/Wtd Avg |
| 884,180 |
| 6.19 | % | 53,812 |
| 3,409 |
|
|
| 741,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured floating rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured Credit Facilities - unhedged (Libor + 170bps)(4) |
| 34,900 |
| 2.72 | % | — |
| — |
| 12/22/2006 |
| — |
| — |
| Open |
|
Total Floating Rate Secured Debt/Wtd Avg |
| 34,900 |
| 2.72 | % | — |
| — |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured floating rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Unsecured Line of Credit (Libor + 170 bps) |
| — |
| 0.00 | % | — |
| — |
| 3/20/2006 |
| — |
| — |
| Open |
|
Total Floating Rate Unsecured Debt/Wtd Avg |
| — |
| 0.00 | % | — |
| — |
|
|
| — |
|
|
|
|
|
Total Floating Rate Debt Outstanding |
| 34,900 |
| 2.72 | % |
|
|
|
|
|
| — |
|
|
|
|
|
Total Debt/Wtd Avg |
| 919,080 |
| 6.05 | % |
|
|
|
|
|
| 741,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Balance & Interest Rate |
| 971,925 |
| 5.86 | % |
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY OF JOINT VENTURE DEBT
|
| Principal O/S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Gross Principal |
| SLG Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint Venture Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
180 Madison JV |
| 45,000 |
| 22,455 |
| 4.57 | % | — |
| — |
| 7/9/2008 |
| 21,297 |
| — |
| Open |
|
1250 Broadway (Libor Swap of 4.03% + 250bps) (5) |
| 85,000 |
| 46,750 |
| 6.53 | % | 5,551 |
| — |
| 10/1/2004 |
| 46,750 |
| 10/1/2006 |
| Open |
|
1221 Avenue of Americas (Eurodollar + 95bps) |
| 175,000 |
| 78,750 |
| 2.01 | % | — |
| — |
| 12/29/2006 |
| 78,750 |
| — |
| Dec-04 |
|
1515 Broadway (Libor + 90 bps) (6) |
| 425,000 |
| 233,750 |
| 3.84 | % | — |
| — |
| 7/9/2006 |
| 233,750 |
| — |
| Open |
|
19 W 44th Street (Libor + 270bps) |
| 47,000 |
| 16,450 |
| 4.39 | % | — |
| — |
| 9/1/2005 |
| 16,450 |
| — |
| Open |
|
1 Park Avenue |
| 238,500 |
| 39,830 |
| 5.80 | % | — |
| — |
| 5/11/2006 |
| 39,830 |
| — |
| Open |
|
100 Park Avenue JV |
| 117,350 |
| 58,557 |
| 8.00 | % | 10,743 |
| 1,010 |
| 9/1/2010 |
| 53,637 |
| — |
| Open |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Joint Venture Debt/Wtd Avg |
| 1,132,850 |
| 496,542 |
| 4.50 | % | 16,294 |
| 1,010 |
|
|
| 490,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Balance & Interest Rate with SLG JV debt |
|
|
| 1,479,083 |
| 5.35 | % |
|
|
|
|
|
|
|
|
|
|
|
|
(1) There is a LIBOR swap on this loan of 2.33% through May 2006 and 4.65% from May 2006 through December 2008.
(2) This represents a collar which is hedging the secured credit facility at a LIBOR rate of 6.10% through November 4, 2004.
(3) WF term loan consists of three tranches all of which mature in June 2008. The blended rates on the step -up swaps for this loan are as follows: 3.57% on $100mm, 3.51% on $35mm, and 3.95% on $65mm.
(4) Secured credit facilities includes $18.9mm which is secured by a structured finance loan which matures in December 2004 and accrues interest expense at 200bps +Libor.Interest rate represents weighted interest rate between two facilities.
(5) Swap on 1250 mortgage executed on SLG portion only through January 11, 2005.
(6) Spread on 1515 is weighted for first mortgage and mezzanine pieces. In August 2002 a swap at a Libor of 2.29% was placed on $100mm of SL Green’s share of debt.
25
SUMMARY OF GROUND LEASE ARRANGEMENTS
Consolidated Statement (REIT)
($000’s omitted)
Property |
| 2004 Scheduled |
| 2005 Scheduled |
| 2006 Scheduled |
| 2007 Scheduled |
| Deferred Land |
| Year of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
673 First Avenue |
| 3,010 |
| 3,108 |
| 3,304 |
| 3,304 |
| 14,234 |
| 2037 |
|
1140 Avenue of Americas (2) |
| 348 |
| 348 |
| 348 |
| 348 |
| — |
| 2016 | (3) |
420 Lexington Avenue (2) |
| 7,074 |
| 7,074 |
| 7,074 |
| 7,074 |
| — |
| 2008 | (4) |
711 Third Avenue (2) (5) |
| 1,550 |
| 1,550 |
| 1,550 |
| 1,550 |
| 1,252 |
| 2032 |
|
461 Fifth Avenue |
| 1,787 |
| 1,787 |
| 894 |
| — |
| — |
| 2006 | (6) |
Total |
| 13,769 |
| 13,867 |
| 13,170 |
| 12,276 |
| 15,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized Lease |
|
|
|
|
|
|
|
|
|
|
|
|
|
673 First Avenue |
| 1,290 |
| 1,322 |
| 1,416 |
| 1,416 |
| 16,328 |
| 2037 |
|
(1) Per the balance sheet at June 30, 2004.
(2) These ground leases are classified as operating leases and, therefore, do not appear on the balance sheet as an obligation.
(3) The Company has a unilateral option to extend the ground lease for an additional 50 years to 2066.
(4) Subject to renewal at the Company’s option through 2029.
(5) Excludes portion payable to SL Green as owner of 50% leasehold.
(6) The Company has an option to extend the ground lease for 3 successive periods of twenty-one years each followed by a fourth period of fifteen years. The Company also has an option to purchase the ground lease for a fixed price on a specific date.
26
STRUCTURED FINANCE
($000’s omitted)
|
| Assets |
| Wtd Average |
| Wtd Average |
| Current |
| Libor |
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2003 |
| 125,518 |
| 120,010 |
| 12.40 | % | 12.01 | % | 1.08 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 70,021 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| — |
|
|
|
|
|
|
|
|
|
Redemptions |
| (27,584 | ) |
|
|
|
|
|
|
|
|
9/30/2003 |
| 167,954 |
| 128,030 |
| 11.27 | % | 11.35 | % | 1.05 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 1,955 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| 59,380 |
|
|
|
|
|
|
|
|
|
Redemptions |
| (10,300 | ) |
|
|
|
|
|
|
|
|
12/31/2003 |
| 218,989 |
| 169,393 |
| 11.53 | % | 11.91 | % | 1.12 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 80,020 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| (7,044 | ) |
|
|
|
|
|
|
|
|
Redemptions |
| (15,426 | ) |
|
|
|
|
|
|
|
|
3/31/2004 |
| 276,538 |
| 269,618 |
| 12.16 | % | 12.03 | % | 1.09 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 117,362 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| (59,400 | ) |
|
|
|
|
|
|
|
|
Redemptions |
| (70,204 | ) |
|
|
|
|
|
|
|
|
6/30/2004 |
| 264,296 |
| 235,153 |
| 10.19 | % | 10.10 | % | 1.37 | %(2) |
(1) Accretion includes original issue discounts and compounding investment income.
(2) At quarter end $110mm of assets have fixed index rates. The weighted average base rate is 2.57%.
27
Type of Investment |
| Quarter End Balance(1) |
| Senior Financing |
| Exposure Psf |
| Wtd Average |
| Current |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
Junior Mortgage Participation |
| $ | 129,730 |
| $ | 951,000 |
| $ | 214 |
| 9.20 | % | 9.16 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Mezzanine Debt |
| $ | 109,340 |
| $ | 514,000 |
| $ | 156 |
| 8.71 | % | 8.57 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Preferred Equity |
| $ | 25,226 |
| $ | 189,000 |
| $ | 162 |
| 11.93 | % | 11.85 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Balance as of 6/30/04 |
| $ | 264,296 |
| $ | 1,654,000 |
| $ | 185 |
| 10.19 | % | 10.10 | % |
Current Maturity Profile (2)
(1) Most investments are indexed to Libor and are prepayable at dates prior to maturity subject to certain prepayment penalties or fees.
(2) The weighted average maturity is 4.8 years.
28
SELECTED PROPERTY DATA
|
|
|
|
|
| Usable |
| % of Total |
| Occupancy (%) |
| Annualized |
| Annualized Rent |
| Total |
| |||||||||||
Properties |
| Submarket |
| Ownership |
|
|
| Jun-04 |
| Mar-04 |
| Dec-03 |
| Sep-03 |
| Jun-03 |
|
| 100% |
| SLG |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PROPERTIES 100% OWNED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
“Same Store” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1140 Avenue of the Americas |
| Rockefeller Center |
| Leasehold Interest |
| 191,000 |
| 1 |
| 96.4 |
| 95.8 |
| 96.0 |
| 96.0 |
| 97.8 |
| 8,411,988 |
| 3 |
| 2 |
| 23 |
| |
110 East 42nd Street |
| Grand Central |
| Fee Interest |
| 181,000 |
| 1 |
| 89.4 |
| 89.4 |
| 85.8 |
| 91.8 |
| 94.7 |
| 5,626,164 |
| 2 |
| 1 |
| 27 |
| |
1372 Broadway |
| Times Square South |
| Fee Interest |
| 508,000 |
| 3 |
| 99.6 |
| 99.5 |
| 99.5 |
| 99.6 |
| 99.6 |
| 16,187,184 |
| 6 |
| 4 |
| 27 |
| |
1414 Avenue of the Americas |
| Rockefeller Center |
| Fee Interest |
| 111,000 |
| 1 |
| 97.8 |
| 94.3 |
| 94.3 |
| 94.3 |
| 94.3 |
| 4,963,524 |
| 2 |
| 1 |
| 22 |
| |
1466 Broadway |
| Times Square |
| Fee Interest |
| 289,000 |
| 2 |
| 92.7 |
| 89.3 |
| 89.4 |
| 91.3 |
| 90.0 |
| 10,766,436 |
| 4 |
| 3 |
| 100 |
| |
17 Battery Place - North |
| World Trade/ Battery |
| Fee Interest |
| 419,000 |
| 3 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 10,210,716 |
| 4 |
| 3 |
| 7 |
| |
286 Madison Avenue |
| Grand Central South |
| Fee Interest |
| 112,000 |
| 1 |
| 88.4 |
| 87.9 |
| 89.1 |
| 89.7 |
| 91.3 |
| 3,435,192 |
| 1 |
| 1 |
| 39 |
| |
290 Madison Avenue |
| Grand Central South |
| Fee Interest |
| 37,000 |
| 0 |
| 71.8 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 951,216 |
| 0 |
| 0 |
| 3 |
| |
292 Madison Avenue |
| Grand Central South |
| Fee Interest |
| 187,000 |
| 1 |
| 99.7 |
| 95.4 |
| 88.7 |
| 93.0 |
| 91.0 |
| 7,565,004 |
| 3 |
| 2 |
| 20 |
| |
317 Madison Avenue |
| Grand Central |
| Fee Interest |
| 450,000 |
| 3 |
| 89.0 |
| 89.4 |
| 90.4 |
| 94.9 |
| 94.9 |
| 14,095,824 |
| 5 |
| 3 |
| 94 |
| |
420 Lexington Ave (Graybar) |
| Grand Central North |
| Operating Sublease |
| 1,188,000 |
| 8 |
| 98.4 |
| 98.2 |
| 94.1 |
| 97.5 |
| 96.2 |
| 50,310,264 |
| 18 |
| 12 |
| 265 |
| |
440 Ninth Avenue |
| Times Square South |
| Fee Interest |
| 339,000 |
| 3 |
| 98.7 |
| 100.0 |
| 100.0 |
| 100.0 |
| 98.9 |
| 10,442,712 |
| 4 |
| 3 |
| 17 |
| |
470 Park Avenue South |
| Park Avenue South/ Flatiron |
| Fee Interest |
| 260,000 |
| 2 |
| 88.9 |
| 88.4 |
| 85.7 |
| 94.7 |
| 94.5 |
| 7,889,604 |
| 3 |
| 2 |
| 24 |
| |
555 West 57th |
| Midtown West |
| Fee Interest |
| 941,000 |
| 6 |
| 99.8 |
| 99.8 |
| 99.8 |
| 99.9 |
| 100.0 |
| 24,347,520 |
| 9 |
| 6 |
| 19 |
| |
673 First Avenue |
| Grand Central South |
| Leasehold Interest |
| 422,000 |
| 2 |
| 99.1 |
| 99.8 |
| 99.8 |
| 99.8 |
| 99.8 |
| 13,219,740 |
| 5 |
| 3 |
| 14 |
| |
70 West 36th Street |
| Times Square South |
| Fee Interest |
| 151,000 |
| 1 |
| 98.8 |
| 98.8 |
| 96.8 |
| 96.8 |
| 96.3 |
| 4,112,340 |
| 1 |
| 1 |
| 32 |
| |
711 Third Avenue |
| Grand Central North |
| Operating Sublease (1) |
| 524,000 |
| 3 |
| 98.6 |
| 99.2 |
| 99.8 |
| 99.8 |
| 99.8 |
| 20,635,800 |
| 7 |
| 4 |
| 18 |
| |
Subtotal / Weighted Average |
|
|
| 6,310,000 |
| 41 |
| 97.0 |
| 96.9 |
| 95.8 |
| 97.5 |
| 97.3 |
| $ | 213,171,228 |
| 77 |
| 51 |
| 751 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
125 Broad Street |
| Downtown |
| Fee Interest |
| 525,000 |
| 4 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 16,377,144 |
| 6 |
| 4 |
| 4 |
| |
220 East 42nd Street |
| Grand Central East |
| Fee Interest |
| 1,135,000 |
| 7 |
| 94.5 |
| 94.5 |
| 94.5 |
| 94.5 |
| 94.5 |
| 35,563,740 |
| 13 |
| 9 |
| 44 |
| |
461 Fifth Avenue |
| Grand Central |
| Leasehold Interest |
| 200,000 |
| 1 |
| 90.7 |
| 97.1 |
| 93.9 |
| — |
| — |
| 11,625,672 |
| 4 |
| 3 |
| 19 |
| |
Subtotal / Weighted Average |
|
|
| 1,860,000 |
| 12 |
| 95.6 |
| 96.3 |
| 96.0 |
| 96.2 |
| 85.9 |
| $ | 63,566,556 |
| 23 |
| 16 |
| 67 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Total/ Weighted Average Properties 100% Owned |
|
|
| 8,170,000 |
| 53 |
| 96.7 |
| 96.8 |
| 95.8 |
| 97.3 |
| 97.0 |
| $ | 276,737,784 |
| 100 |
| 67 |
| 818 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PROPERTIES <100% OWNED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Unconsolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
180 Madison Avenue - 50% |
| Grand Central South |
| Fee Interest |
| 265,000 |
| 2 |
| 82.6 |
| 82.7 |
| 85.6 |
| 87.0 |
| 85.7 |
| 7,379,784 |
|
|
| 1 |
| 47 |
| |
1 Park Avenue - 16.7% |
| Grand Central South |
| Fee Interest |
| 913,000 |
| 6 |
| 94.6 |
| 94.6 |
| 91.1 |
| 86.0 |
| 85.9 |
| 33,187,188 |
|
|
| 1 |
| 16 |
| |
19 West 44th Street -35% |
| Grand Central |
| Fee Interest |
| 292,000 |
| 2 |
| 86.8 |
| 87.4 |
|
|
|
|
|
|
| 8,874,492 |
|
|
| 1 |
| 64 |
| |
1250 Broadway -55% |
| Penn Station |
| Fee Interest |
| 670,000 |
| 4 |
| 94.8 |
| 93.1 |
| 91.9 |
| 91.8 |
| 92.6 |
| 20,903,676 |
|
|
| 3 |
| 30 |
| |
100 Park Avenue - 50% |
| Grand Central South |
| Fee Interest |
| 834,000 |
| 5 |
| 98.4 |
| 98.3 |
| 97.6 |
| 95.8 |
| 95.8 |
| 32,356,668 |
|
|
| 4 |
| 40 |
| |
1515 Broadway - 55% |
| Times Square |
| Fee Interest |
| 1,750,000 |
| 11 |
| 96.0 |
| 94.8 |
| 96.2 |
| 95.8 |
| 97.0 |
| 68,114,027 |
|
|
| 9 |
| 11 |
| |
1221 Avenue of the Americas - 45% |
| Rockefeller Center |
| Fee Interest |
| 2,550,000 |
| 17 |
| 98.8 |
| 98.8 |
| 98.8 |
| — |
| — |
| 124,137,209 |
|
|
| 14 |
| 24 |
| |
Subtotal / Weighted Average |
|
|
| 7,274,000 |
| 47 |
| 96.1 |
| 95.7 |
| 92.6 |
| 92.6 |
| 93.0 |
| $ | 294,953,044 |
|
|
| 33 |
| 232 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Grand Total/ Weighted Average |
|
|
| 15,444,000 |
| 100 |
| 96.6 |
| 96.3 |
| 95.8 |
| 95.5 |
| 95.5 |
| $ | 571,690,828 |
|
|
|
|
| 1,050 |
| ||
Grand Total - SLG share of Annualized Rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 410,036,087 |
|
|
| 100 |
|
|
| ||
(1) Including Ownership of 50% in Building Fee
29
LARGEST TENANTS BY SQUARE FEET LEASED
Wholly Owned Portfolio + Allocated JV Properties
Tenant Name |
| Property |
| Lease |
| Total |
| Annualized |
| PSF |
| % of |
| SLG Share of |
| % of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Viacom International, Inc. |
| 1515 Broadway |
| 2006, 2008, 2009, |
| 1,292,059 |
| $ | 60,069,648 |
| $ | 46.49 |
| 10.5 | % | $ | 33,038,306 |
| 8.1 | % |
Morgan Stanley & Co. Inc. |
| 1221 Ave. of the Americas |
| Various |
| 496,249 |
| $ | 31,473,624 |
| $ | 63.42 |
| 5.5 | % | $ | 14,163,131 |
| 3.5 | % |
Societe Generale |
| 1221 Ave. of the Americas |
| Various |
| 486,662 |
| $ | 23,411,832 |
| $ | 48.11 |
| 4.1 | % | $ | 10,535,324 |
| 2.6 | % |
The McGraw Hill Companies, Inc. |
| 1221 Ave. of the Americas |
| Various |
| 443,399 |
| $ | 18,282,660 |
| $ | 41.23 |
| 3.2 | % | $ | 8,227,197 |
| 2.0 | % |
Omnicom Group |
| 220 East 42nd Street |
| 2008, 2009, 2010, 2017 |
| 419,111 |
| $ | 13,018,428 |
| $ | 31.06 |
| 2.3 | % | $ | 13,018,428 |
| 3.2 | % |
Salomon Smith Barney |
| 125 Broad Street |
| 2010 |
| 330,900 |
| $ | 10,821,564 |
| $ | 32.70 |
| 1.9 | % | $ | 10,821,564 |
| 2.6 | % |
Visting Nurse Services |
| 1250 Broadway |
| 2005, 2006 & 2011 |
| 252,331 |
| $ | 8,052,660 |
| $ | 31.91 |
| 1.4 | % | $ | 4,428,963 |
| 1.1 | % |
The City of New York |
| 17 Battery Place |
| 2012 |
| 249,854 |
| $ | 6,250,452 |
| $ | 25.02 |
| 1.1 | % | $ | 6,250,452 |
| 1.5 | % |
BMW of Manhattan, Inc. |
| 555 West 57th Street |
| 2012 |
| 227,782 |
| $ | 3,683,988 |
| $ | 16.17 |
| 0.6 | % | $ | 3,683,988 |
| 0.9 | % |
CBS, Inc. |
| 555 West 57th Street |
| 2013 |
| 188,583 |
| $ | 5,855,064 |
| $ | 31.05 |
| 1.0 | % | $ | 5,855,064 |
| 1.4 | % |
Altria Corp |
| 100 Park Avenue |
| 2007 |
| 175,887 |
| $ | 7,456,032 |
| $ | 42.39 |
| 1.3 | % | $ | 3,720,560 |
| 0.9 | % |
Columbia House Company |
| 1221 Ave. of the Americas |
| Various |
| 175,312 |
| $ | 8,084,376 |
| $ | 46.11 |
| 1.4 | % | $ | 3,637,969 |
| 0.9 | % |
City University of New York -CUNY |
| 555 West 57th Street |
| 2010, 2011, & 2015 |
| 171,733 |
| $ | 5,124,168 |
| $ | 29.84 |
| 0.9 | % | $ | 5,124,168 |
| 1.2 | % |
J&W Seligman & Co., Inc. |
| 100 Park Avenue |
| 2009 |
| 168,390 |
| $ | 6,073,668 |
| $ | 36.07 |
| 1.1 | % | $ | 3,030,760 |
| 0.7 | % |
Segal Company |
| 1 Park Avenue |
| 2009 |
| 157,947 |
| $ | 6,080,736 |
| $ | 38.50 |
| 1.1 | % | $ | 3,344,405 |
| 0.8 | % |
Sonnenschein, Nath, & Rosenthal |
| 1221 Ave. of the Americas |
| Various |
| 147,997 |
| $ | 6,954,168 |
| $ | 46.99 |
| 1.2 | % | $ | 3,129,376 |
| 0.8 | % |
New York Presbyterian Hospital |
| 555 West 57th Street & 673 First Ave |
| 2006, 2009, & 2021 |
| 140,961 |
| $ | 4,037,952 |
| $ | 28.65 |
| 0.7 | % | $ | 4,037,952 |
| 1.0 | % |
The Mt. Sinai & NYU Hospital Centers |
| 1 Park Avenue |
| 2013 & 2015 |
| 140,600 |
| $ | 5,046,288 |
| $ | 35.89 |
| 0.9 | % | $ | 842,730 |
| 0.2 | % |
Metro North Commuter Railroad Co. |
| 420 Lexington Avenue |
| 2008 & 2016 |
| 134,687 |
| $ | 4,098,912 |
| $ | 30.43 |
| 0.7 | % | $ | 4,098,912 |
| 1.0 | % |
Tribune Newspaper |
| 220 East 42nd Street |
| 2010 |
| 134,208 |
| $ | 4,039,584 |
| $ | 30.10 |
| 0.7 | % | $ | 4,039,584 |
| 1.0 | % |
St. Luke’s Roosevelt Hospital |
| 555 West 57th Street |
| 2014 |
| 134,150 |
| $ | 3,466,056 |
| $ | 25.84 |
| 0.6 | % | $ | 3,466,056 |
| 0.8 | % |
Ross Stores |
| 1372 Broadway |
| 2010 |
| 126,001 |
| $ | 3,562,140 |
| $ | 28.27 |
| 0.6 | % | $ | 3,562,140 |
| 0.9 | % |
JP Morgan Chase Bank |
| 1221 Ave. of the Americas |
| Various |
| 105,008 |
| $ | 3,073,884 |
| $ | 29.27 |
| 0.5 | % | $ | 1,383,248 |
| 0.3 | % |
Fahenstock & Co., Inc. |
| 125 Broad Street |
| 2013 |
| 103,991 |
| $ | 6,342,348 |
| $ | 60.99 |
| 1.1 | % | $ | 6,342,348 |
| 1.5 | % |
Minskoff/Nederlander JV (1) |
| 1515 Broadway |
| 2024 |
| 102,452 |
| $ | 210,000 |
| $ | 2.05 |
| 0.0 | % | $ | 115,500 |
| 0.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
TOTAL |
|
|
|
|
| 6,506,254 |
| $ | 254,570,232 |
| $ | 39.13 |
| 44.5 | % | $ | 159,898,125 |
| 39.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Wholly Owned Portfolio + Allocated JV Properties |
|
|
|
|
| 15,444,000 |
| $ | 571,690,828 |
| $ | 37.02 |
|
|
| $ | 410,036,087 |
|
|
|
(1) Minskoff/Nederlander JV pays percentage rent.
30
SECOND QUARTER 2004 - LEASING ACTIVITY
Available Space
Activity Type |
| Building Address |
| # of Leases |
| Usable SF |
| Rentable SF |
| Rent/Rentable SF ($’s)(1) |
|
Vacancy at 3/31/04 |
|
|
|
|
| 574,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expiring Space |
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison Avenue |
| 5 |
| 8,765 |
| 10,726 |
| 30.87 |
|
|
| 461 Fifth Avenue |
| 2 |
| 12,934 |
| 12,934 |
| 41.91 |
|
|
| 180 Madison Avenue |
| 5 |
| 19,544 |
| 24,306 |
| 25.49 |
|
|
| 100 Park Avenue |
| 4 |
| 16,194 |
| 20,785 |
| 37.53 |
|
|
| 286 Madison |
| 4 |
| 8,468 |
| 8,468 |
| 31.18 |
|
|
| 1414 Sixth Avenue |
| 4 |
| 4,523 |
| 4,827 |
| 50.03 |
|
|
| 673 First Avenue |
| 3 |
| 80,700 |
| 80,700 |
| 40.14 |
|
|
| 1140 Sixth Avenue |
| 2 |
| 5,154 |
| 7,042 |
| 28.02 |
|
|
| 1372 Broadway |
| 1 |
| 369 |
| 504 |
| 26.19 |
|
|
| 19 West 44th Street |
| 8 |
| 9,678 |
| 9,929 |
| 35.63 |
|
|
| 1221 Sixth Avenue |
| 1 |
| 279 |
| 279 |
| 42.44 |
|
|
| 711 Third Avenue |
| 1 |
| 2,886 |
| 2,886 |
| 2.65 |
|
|
| 440 Ninth Avenue |
| 1 |
| 34,262 |
| 22,500 |
| 32.34 |
|
|
| 1466 Broadway |
| 10 |
| 6,085 |
| 7,607 |
| 40.36 |
|
|
| 420 Lexington Avenue |
| 7 |
| 5,947 |
| 7,113 |
| 30.50 |
|
|
| Total/Weighted Average |
| 58 |
| 215,788 |
| 220,606 |
| 35.95 |
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
| 290 Madison |
| 1 |
| 10,389 |
| 11,017 |
| 46.85 |
|
|
| 220 East 42nd Street |
| 1 |
| 298 |
| 298 |
| 137.94 |
|
|
| Total/Weighted Average |
| 2 |
| 10,687 |
| 11,315 |
| 49.25 |
|
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
| 1515 Broadway |
| 1 |
| 640 |
| 640 |
| 20.00 |
|
|
| 220 East 42nd Street |
| 1 |
| 334 |
| 334 |
| 21.07 |
|
|
| 461 Fifth Avenue |
| 1 |
| 840 |
| 840 |
| 24.92 |
|
|
| 1466 Broadway |
| 2 |
| 809 |
| 883 |
| 18.00 |
|
|
| Total/Weighted Average |
| 5 |
| 2,623 |
| 2,697 |
| 21.01 |
|
Move Outs |
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
| 180 Madison Avenue |
| 3 |
| 2,973 |
| 3,218 |
| 41.78 |
|
|
| 1250 Broadway |
| 1 |
| 820 |
| 1,202 |
| 54.58 |
|
|
| 1414 Sixth Avenue |
| 1 |
| 2,309 |
| 3,251 |
| 41.60 |
|
|
| 1372 Broadway |
| 2 |
| 3,915 |
| 3,915 |
| 25.66 |
|
|
| 1466 Broadway |
| 4 |
| 4,483 |
| 4,926 |
| 41.06 |
|
|
| 420 Lexington Avenue |
| 5 |
| 9,169 |
| 12,267 |
| 44.91 |
|
|
| Total/Weighted Average |
| 16 |
| 23,669 |
| 28,779 |
| 41.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison |
| 1 |
| 978 |
| 1,036 |
| 13.00 |
|
|
| Total/Weighted Average |
| 1 |
| 978 |
| 1,036 |
| 13.00 |
|
Relocating Tenants |
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison |
| 1 |
| 7,635 |
| 7,635 |
| 41.16 |
|
|
| 420 Lexington Avenue |
| 1 |
| 1,792 |
| 2,722 |
| 36.50 |
|
|
| Total/Weighted Average |
| 2 |
| 9,427 |
| 10,357 |
| 39.94 |
|
Available Space |
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
| 76 |
| 248,884 |
| 259,742 |
| 36.69 |
|
Retail |
|
|
| 2 |
| 10,687 |
| 11,315 |
| 49.25 |
|
Storage |
|
|
| 6 |
| 3,601 |
| 3,733 |
| 18.79 |
|
|
| Total |
| 84 |
| 263,172 |
| 274,790 |
| 36.97 |
|
Available Space |
|
|
|
|
| 837,704 |
|
|
|
|
|
(1) Escalated Rent is calculated as Total Annual Income less Electric Charges.
31
Leased Space
|
|
|
|
|
| Term |
|
|
|
|
| New Cash Rent / |
| Prev. Escalated Rent/ |
| T.I / |
| Free Rent |
|
Activity Type |
| Building Address |
| # of Leases |
| (Yrs) |
| Usable SF |
| Rentable SF |
| Rentable SF* |
| Rentable SF** |
| Rentable SF |
| # of Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available Space as 6/30/04 |
|
|
|
|
|
|
| 837,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renewing Tenants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison |
| 3 |
| 6.7 |
| 6,048 |
| 9,097 |
| 30.67 |
| 28.28 |
| 7.74 |
| 1.0 |
|
|
| 100 Park Avenue |
| 2 |
| 5.0 |
| 2,668 |
| 3,691 |
| 39.36 |
| 36.38 |
| — |
| 2.0 |
|
|
| 286 Madison Avenue |
| 1 |
| 5.0 |
| 1,375 |
| 1,375 |
| 28.00 |
| 29.51 |
| 10.46 |
| — |
|
|
| 673 First Avenue |
| 1 |
| 10.0 |
| 40,000 |
| 40,000 |
| 35.31 |
| 35.31 |
| 15.00 |
| — |
|
|
| 19 West 44th Street |
| 1 |
| 0.8 |
| 326 |
| 496 |
| 35.00 |
| 42.50 |
| — |
| — |
|
|
| 1466 Broadway |
| 1 |
| 1.0 |
| 267 |
| 267 |
| 40.45 |
| 41.85 |
| — |
| 1.0 |
|
|
| Total/Weighted Average |
| 9 |
| 8.9 |
| 50,684 |
| 54,926 |
| 34.65 |
| 34.17 |
| 12.47 |
| 0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocating Tenants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison Avenue |
| 1 |
| 5.8 |
| 858 |
| 1,278 |
| 39.51 |
| 40.22 |
| 5.09 |
| — |
|
|
| 420 Lexington Avenue |
| 1 |
| 7.0 |
| 2,720 |
| 3,886 |
| 36.50 |
| 39.61 |
| 31.71 |
| — |
|
|
| Total/Weighted Average |
| 2 |
| 6.7 |
| 3,578 |
| 5,164 |
| 37.24 |
| 39.76 |
| 25.12 |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Tenants Replacing Old Tenants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison Avenue |
| 2 |
| 10.2 |
| 4,560 |
| 6,895 |
| 25.52 |
| 17.56 |
| 20.90 |
| 3.5 |
|
|
| 180 Madison |
| 3 |
| 10.3 |
| 8,123 |
| 10,271 |
| 25.82 |
| 26.61 |
| 33.31 |
| 5.1 |
|
|
| 100 Park Avenue |
| 4 |
| 6.0 |
| 14,384 |
| 19,699 |
| 38.10 |
| 33.17 |
| 29.70 |
| 2.7 |
|
|
| 1250 Broadway |
| 3 |
| 8.6 |
| 11,938 |
| 17,399 |
| 33.00 |
| 27.77 |
| 32.70 |
| 4.8 |
|
|
| 286 Madison Avenue |
| 1 |
| 10.0 |
| 5,058 |
| 5,353 |
| 29.00 |
| 29.29 |
| 20.57 |
| 2.0 |
|
|
| 292 Madison Avenue |
| 1 |
| 7.0 |
| 8,113 |
| 10,536 |
| 31.00 |
| 26.84 |
| 53.53 |
| 1.0 |
|
|
| 1414 Sixth Avenue |
| 3 |
| 5.2 |
| 6,169 |
| 8,889 |
| 37.61 |
| 35.66 |
| 30.66 |
| 0.9 |
|
|
| 470 Park Avenue South |
| 1 |
| 1.3 |
| 1,261 |
| 1,840 |
| 33.00 |
| 30.00 |
| — |
| — |
|
|
| 673 First Avenue |
| 2 |
| 11.9 |
| 37,882 |
| 38,880 |
| 26.45 |
| 45.15 |
| 16.72 |
| — |
|
|
| 1372 Broadway |
| 3 |
| 4.3 |
| 4,189 |
| 4,306 |
| 41.13 |
| 25.68 |
| 0.17 |
| 0.1 |
|
|
| 440 Ninth Avenue |
| 1 |
| 5.3 |
| 7,500 |
| 9,500 |
| 20.00 |
| 35.08 |
| — |
| 3.0 |
|
|
| 1466 Broadway |
| 5 |
| 2.0 |
| 6,756 |
| 9,900 |
| 24.45 |
| 31.49 |
| 11.22 |
| 0.6 |
|
|
| 420 Lexington Avenue |
| 8 |
| 5.6 |
| 12,115 |
| 16,593 |
| 32.39 |
| 41.91 |
| 37.42 |
| 1.5 |
|
|
| Total/Weighted Average |
| 37 |
| 7.9 |
| 128,048 |
| 160,061 |
| 30.10 |
| 34.67 |
| 24.80 |
| 1.9 |
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1515 Broadway |
| 1 |
| 18.0 |
| 6,564 |
| 6,703 |
| 108.16 |
| 77.69 |
| — |
| 12.0 |
|
|
| 220 East 42nd Street |
| 1 |
| 10.0 |
| 298 |
| 298 |
| 120.00 |
| 137.94 |
| — |
| — |
|
|
| Total/Weighted Average |
| 2 |
| 17.7 |
| 6,862 |
| 7,001 |
| 108.66 |
| 80.25 |
| 15.95 |
| 11.5 |
|
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 220 East 42nd Street |
| 1 |
| 10.0 |
| 334 |
| 337 |
| 22.50 |
| 21.07 |
| — |
| — |
|
|
| Total/Weighted Average |
| 1 |
| 10.0 |
| 334 |
| 337 |
| 22.50 |
| 21.07 |
| — |
| — |
|
|
| Total/Weighted Average Office |
| 48 |
| 8.1 |
| 182,310 |
| 220,151 |
| 31.40 |
| 34.66 |
| 21.73 |
| 1.4 |
|
|
| Total/Weighted Average Retail |
| 2 |
| 17.7 |
| 6,862 |
| 7,001 |
| 108.66 |
| 80.25 |
| 0.0 |
| 11.5 |
|
|
| Total/Weighted Average Storage |
| 1 |
| 10.0 |
| 334 |
| 337 |
| 22.50 |
| 21.07 |
| 0.0 |
| 0.0 |
|
32
Activity Type |
| Building Address |
| # of Leases |
| Term |
| Usable SF |
| Rentable SF |
| New Cash Rent / |
| Prev. Escalated Rent/ |
| T.I / |
| Free Rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Tenants Replacing Vacancies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1515 Broadway |
| 1 |
| 6.0 |
| 13,557 |
| 14,164 |
| 40.00 |
| — |
| 27.41 |
| 6.0 |
|
|
| 180 Madison Avenue |
| 1 |
| 3.0 |
| 603 |
| 887 |
| 38.00 |
| — |
| 5.00 |
| 1.0 |
|
|
| 286 Madison Avenue |
| 1 |
| 3.0 |
| 588 |
| 840 |
| 28.00 |
| — |
| 48.04 |
| 1.0 |
|
|
| 1140 Sixth Avenue |
| 1 |
| 5.0 |
| 3,010 |
| 4,569 |
| 35.00 |
| — |
| 42.42 |
| 0.5 |
|
|
| 19 West 44th Street |
| 1 |
| 7.0 |
| 2,626 |
| 2,626 |
| 34.00 |
| — |
| 11.00 |
| 3.0 |
|
|
| 1466 Broadway |
| 5 |
| 6.8 |
| 9,528 |
| 13,928 |
| 29.27 |
| — |
| 33.12 |
| 1.2 |
|
|
| Total/Weighted Average |
| 10 |
| 6.1 |
| 29,912 |
| 37,014 |
| 34.60 |
| — |
| 30.18 |
| 3.1 |
|
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison Avenue |
| 1 |
| 2.8 |
| 1,253 |
| 1,924 |
| 7.00 |
| — |
| — |
|
|
|
|
| Total/Weighted Average |
| 1 |
| 2.8 |
| 1,253 |
| 1,924 |
| 7.00 |
| — |
| — |
| — |
|
Leased Space |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
Office |
|
|
| 58 |
| 7.8 |
| 212,222 |
| 257,165 |
| 31.86 |
| 34.66 |
| 22.95 |
| 1.7 |
|
Retail |
|
|
| 2 |
| 17.7 |
| 6,862 |
| 7,001 |
| 108.66 |
| 80.25 |
| — |
| 11.5 |
|
Storage |
|
|
| 1 |
| 3.8 |
| 1,587 |
| 2,261 |
| 9.31 |
| 21.07 |
| — |
| — |
|
|
| Total |
| 61 |
| 8.1 |
| 220,671 |
| 266,427 |
| 33.69 |
| 36.06 |
| 22.15 |
| 1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold Vacancies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-Total Available Space @ 6/30/04 |
|
|
|
|
|
|
| 617,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Holdover Tenants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison |
| 2 |
|
|
| 2,717 |
| 2,717 |
| 27.17 |
| 27.17 |
| — |
| — |
|
|
| 180 Madison Avenue |
| 4 |
|
|
| 13,350 |
| 16,631 |
| 25.34 |
| 25.34 |
| — |
| — |
|
|
| 286 Madison Avenue |
| 1 |
|
|
| 2,035 |
| 2,035 |
| 32.76 |
| 32.76 |
| — |
| — |
|
|
| 1414 Ave of Americas |
| 4 |
|
|
| 4,523 |
| 4,827 |
| 50.03 |
| 50.03 |
| — |
| — |
|
|
| 1140 Sixth Avenue |
| 1 |
|
|
| 3,398 |
| 4,424 |
| 27.64 |
| 27.64 |
| — |
| — |
|
|
| 1372 Broadway |
| 1 |
|
|
| 369 |
| 504 |
| 26.19 |
| 26.19 |
| — |
| — |
|
|
| 19 West 44th Street |
| 3 |
|
|
| 4,899 |
| 4,899 |
| 27.09 |
| 27.09 |
| — |
| — |
|
|
| 1221 Ave of Americas |
| 1 |
|
|
| 279 |
| 279 |
| 42.44 |
| 42.44 |
| — |
| — |
|
|
| 440 Ninth Avenue |
| 1 |
|
|
| 19,742 |
| 22,500 |
| 32.34 |
| 32.34 |
| — |
| — |
|
|
| 1466 Broadway |
| 6 |
|
|
| 3,877 |
| 4,860 |
| 38.34 |
| 38.34 |
| — |
| — |
|
|
| 420 Lexington Avenue |
| 6 |
|
|
| 4,615 |
| 5,464 |
| 29.18 |
| 29.18 |
| — |
| — |
|
|
|
|
| 30 |
|
|
| 59,804 |
| 69,140 |
| 31.19 |
| 31.19 |
| — |
| — |
|
33
Activity Type |
| Building Address |
| # of Leases |
| Term |
| Usable SF |
| Rentable SF |
| New Cash Rent / |
| Prev. Escalated Rent/ |
| T.I / |
| Free Rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1515 Broadway |
| 1 |
|
|
| 640 |
| 640 |
| 20.00 |
| 20.00 |
| — |
| — |
|
|
| 461 Fifth Avenue |
| 1 |
|
|
| 840 |
| 840 |
| 24.92 |
| 24.92 |
| — |
| — |
|
|
| 1466 Broadway |
| 2 |
|
|
| 809 |
| 883 |
| 18.00 |
| 18.00 |
| — |
| — |
|
|
|
|
| 4 |
|
|
| 2,289 |
| 2,363 |
| 21.00 |
| 21.00 |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Available Space @ 6/30/04 |
|
|
|
|
|
|
| 554,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Early Renewals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 317 Madison |
| 2 |
| 5.3 |
| 1,183 |
| 1,741 |
| 31.00 |
| 28.13 |
| 7.69 |
| — |
|
|
| 220 East 42nd Street |
| 1 |
| 12.0 |
| 22,089 |
| 29,928 |
| 39.00 |
| 25.00 |
| 25.00 |
| — |
|
|
| 180 Madison |
| 1 |
| 7.6 |
| 11,148 |
| 14,373 |
| 30.45 |
| 24.83 |
| 7.50 |
| — |
|
|
| 70 West 36th Street |
| 1 |
| 5.0 |
| 1,827 |
| 2,722 |
| 25.00 |
| 27.65 |
| — |
| — |
|
|
| 1140 Sixth Avenue |
| 1 |
| 7.0 |
| 5,599 |
| 5,714 |
| 35.00 |
| 39.19 |
| 16.73 |
| — |
|
|
| 1466 Broadway |
| 1 |
| 5.0 |
| 2,015 |
| 2,963 |
| 36.00 |
| 39.66 |
| 20.00 |
| 1.0 |
|
|
| 420 Lexington |
| 5 |
| 9.3 |
| 18,152 |
| 27,124 |
| 31.58 |
| 28.56 |
| 0.91 |
| 1.7 |
|
|
|
|
| 12 |
| 9.4 |
| 62,013 |
| 84,565 |
| 34.18 |
| 27.73 |
| 12.40 |
| 0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 461 Fifth Avenue |
| 1 |
| 10.0 |
| 1,751 |
| 1,850 |
| 150.00 |
| 118.00 |
| — |
| — |
|
|
|
|
| 1 |
| 10.0 |
| 1,751 |
| 1,850 |
| 150.00 |
| 118.00 |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 220 East 42nd Street |
| 1 |
| 12.0 |
| 3,658 |
| 3,658 |
| 19.50 |
| 20.00 |
| — |
| — |
|
|
|
|
| 1 |
| 12.0 |
| 3,658 |
| 3,658 |
| 19.50 |
| 20.00 |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renewals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expired/Renewed Office |
| 9 |
| 8.9 |
| 50,684 |
| 54,926 |
| 34.65 |
| 34.17 |
| 12.47 |
| 0.3 |
|
|
| Early Renewals Office |
| 12 |
| 9.4 |
| 62,013 |
| 84,565 |
| 34.18 |
| 27.73 |
| 12.40 |
| 0.6 |
|
|
| Early Renewals Retail |
| 1 |
| 10.0 |
| 1,751 |
| 1,850 |
| 150.00 |
| 118.00 |
| — |
| — |
|
|
| Early Renewals Storage |
| 1 |
| 12.0 |
| 3,658 |
| 3,658 |
| 19.50 |
| 20.00 |
| — |
| — |
|
|
| Total |
| 23 |
| 9.3 |
| 118,106 |
| 144,999 |
| 35.46 |
| 31.13 |
| 11.96 |
| 0.5 |
|
* Annual Base Rent
** Escalated Rent is calculated as Total Annual Income less Electric Charges.
34
ANNUAL LEASE EXPIRATIONS
Consolidated Properties
Year of Lease |
| Number of Expiring Leases** |
| Rentable |
| Percentage of |
| Annualized Rent |
| Annualized Rent Per |
| Year 2004 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
In 1st Quarter 2004* |
| 19 |
| 23,688 |
| 0.48 | % | $ | 752,580 |
| $ | 31.77 |
| $ | 35.46 |
|
In 2nd Quarter 2004* |
| 15 |
| 105,794 |
| 1.29 | % | $ | 3,826,188 |
| $ | 36.17 |
| $ | 32.48 |
|
In 3rd Quarter 2004 |
| 36 |
| 153,453 |
| 1.87 | % | $ | 4,730,328 |
| $ | 30.83 |
| $ | 35.00 |
|
In 4th Quarter 2004 |
| 35 |
| 111,397 |
| 1.36 | % | $ | 3,697,164 |
| $ | 33.19 |
| $ | 33.39 |
|
Total 2004 |
| 105 |
| 394,332 |
| 4.83 | % | $ | 13,006,260 |
| $ | 32.98 |
| $ | 33.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
In 1st Quarter 2005 |
| 45 |
| 136,732 |
| 1.67 | % | $ | 5,954,256 |
| $ | 43.55 |
| $ | 45.18 |
|
In 2nd Quarter 2005 |
| 34 |
| 86,896 |
| 1.06 | % | $ | 3,161,640 |
| $ | 36.38 |
| $ | 35.03 |
|
In 3rd Quarter 2005 |
| 35 |
| 153,436 |
| 1.87 | % | $ | 4,856,232 |
| $ | 31.65 |
| $ | 34.53 |
|
In 4th Quarter 2005 |
| 28 |
| 170,367 |
| 2.08 | % | $ | 5,554,728 |
| $ | 32.60 |
| $ | 34.15 |
|
Total 2005 |
| 142 |
| 547,431 |
| 6.70 | % | $ | 19,526,856 |
| $ | 35.67 |
| $ | 37.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
2006 |
| 108 |
| 595,384 |
| 7.29 | % | $ | 20,108,832 |
| $ | 33.77 |
| $ | 33.90 |
|
2007 |
| 101 |
| 360,919 |
| 4.42 | % | $ | 13,837,752 |
| $ | 38.34 |
| $ | 37.60 |
|
2008 |
| 105 |
| 636,751 |
| 7.79 | % | $ | 22,961,232 |
| $ | 36.06 |
| $ | 35.09 |
|
2009 |
| 63 |
| 650,800 |
| 7.97 | % | $ | 23,152,284 |
| $ | 35.58 |
| $ | 34.44 |
|
2010 |
| 63 |
| 1,527,602 |
| 18.70 | % | $ | 52,350,888 |
| $ | 34.27 |
| $ | 34.95 |
|
2011 |
| 31 |
| 359,000 |
| 4.39 | % | $ | 15,814,548 |
| $ | 44.05 |
| $ | 36.70 |
|
2012 |
| 27 |
| 765,758 |
| 9.37 | % | $ | 19,594,668 |
| $ | 25.59 |
| $ | 28.88 |
|
2013 |
| 36 |
| 737,475 |
| 9.03 | % | $ | 25,647,768 |
| $ | 34.78 |
| $ | 35.17 |
|
Thereafter |
| 71 |
| 1,594,915 |
| 19.52 | % | $ | 50,736,696 |
| $ | 31.69 |
| $ | 34.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 852 |
| 8,170,367 |
| 100.00 | % | $ | 276,737,784 |
| $ | 33.87 |
| $ | 34.53 |
|
* Includes month to month holdover tenants that expired prior to 6/30/04.
**Tenants may have multiple leases.
**Represents current in place annualized rent allocated by year of maturity.
35
ANNUAL LEASE EXPIRATIONS
Joint Venture Properties
Year of Lease Expiration |
| Number of |
| Rentable Square |
| Percentage of |
| Annualized Rent |
| Annualized Rent Per |
| Year 2004 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
In 1st Quarter 2004* |
| 6 |
| 15,875 |
| 0.23 | % | $ | 371,484 |
| $ | 23.40 |
| $ | 38.87 |
|
In 2nd Quarter 2004* |
| 7 |
| 34,712 |
| 0.51 | % | $ | 1,220,069 |
| $ | 35.15 |
| $ | 53.29 |
|
In 3rd Quarter 2004 |
| 10 |
| 150,549 |
| 2.20 | % | $ | 4,115,363 |
| $ | 26.52 |
| $ | 39.74 |
|
In 4th Quarter 2004 |
| 6 |
| 15,556 |
| 0.23 | % | $ | 983,856 |
| $ | 63.25 |
| $ | 66.86 |
|
Total 2004 |
| 29 |
| 216,692 |
| 3.16 | % | $ | 6,690,772 |
| $ | 30.88 |
| $ | 43.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
In 1st Quarter 2005 |
| 14 |
| 182,198 |
| 2.66 | % | $ | 6,644,832 |
| $ | 36.47 |
| $ | 38.96 |
|
In 2nd Quarter 2005 |
| 9 |
| 164,313 |
| 2.40 | % | $ | 7,756,272 |
| $ | 47.20 |
| $ | 51.06 |
|
In 3rd Quarter 2005 |
| 6 |
| 80,416 |
| 1.17 | % | $ | 1,831,764 |
| $ | 22.78 |
| $ | 47.50 |
|
In 4th Quarter 2005 |
| 13 |
| 28,769 |
| 0.42 | % | $ | 1,071,768 |
| $ | 37.25 |
| $ | 39.57 |
|
Total 2005 |
| 42 |
| 455,696 |
| 6.66 | % | $ | 17,304,636 |
| $ | 37.97 |
| $ | 44.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
2006 |
| 35 |
| 406,878 |
| 5.94 | % | $ | 12,847,272 |
| $ | 31.58 |
| $ | 38.49 |
|
2007 |
| 20 |
| 483,403 |
| 7.06 | % | $ | 25,252,392 |
| $ | 52.24 |
| $ | 49.26 |
|
2008 |
| 26 |
| 553,937 |
| 8.09 | % | $ | 21,544,068 |
| $ | 38.89 |
| $ | 48.45 |
|
2009 |
| 23 |
| 651,296 |
| 9.51 | % | $ | 27,995,976 |
| $ | 42.99 |
| $ | 44.68 |
|
2010 |
| 18 |
| 1,333,670 |
| 19.48 | % | $ | 58,077,252 |
| $ | 43.55 |
| $ | 46.31 |
|
2011 |
| 6 |
| 170,550 |
| 2.49 | % | $ | 6,948,492 |
| $ | 40.74 |
| $ | 46.71 |
|
2012 |
| 8 |
| 158,759 |
| 2.32 | % | $ | 5,798,352 |
| $ | 36.52 |
| $ | 38.48 |
|
2013 |
| 8 |
| 949,932 |
| 13.87 | % | $ | 47,046,552 |
| $ | 49.53 |
| $ | 55.50 |
|
Thereafter |
| 39 |
| 1,466,122 |
| 21.41 | % | $ | 65,447,280 |
| $ | 44.66 |
| $ | 52.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 254 |
| 6,846,935 |
| 100.00 | % | $ | 294,953,044 |
| $ | 43.08 |
| $ | 48.27 |
|
* Includes month to month holdover tenants that expired prior to 6/30/04.
**Tenants may have multiple leases.
***Represents in place annualized rent allocated by year of maturity.
36
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997
|
|
|
|
|
|
|
|
|
| % Leased |
| Acquisition |
| |||
|
| Property |
| Type of Ownership |
| Submarket |
| Net Rentable sf |
| at acquisition |
| 6/30/2004 |
| Price ($’s) (1) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1998 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Mar-98 |
| 420 Lexington |
| Operating Sublease |
| Grand Central North |
| 1,188,000 |
| 83 |
| 98 |
| $ | 78,000,000 |
|
Mar-98 |
| 1466 Broadway |
| Fee Interest |
| Times Square |
| 289,000 |
| 87 |
| 93 |
| $ | 64,000,000 |
|
Mar-98 |
| 321 West 44th |
| Fee Interest |
| Times Square |
| 203,000 |
| 96 |
| N/A |
| $ | 17,000,000 |
|
May-98 |
| 711 3rd Avenue |
| Operating Sublease |
| Grand Central North |
| 524,000 |
| 79 |
| 99 |
| $ | 65,600,000 |
|
Jun-98 |
| 440 9th Avenue |
| Fee Interest |
| Times Square South |
| 339,000 |
| 76 |
| 99 |
| $ | 32,000,000 |
|
Aug-98 |
| 1412 Broadway |
| Fee Interest |
| Times Square South |
| 389,000 |
| 90 |
| N/A |
| $ | 82,000,000 |
|
|
|
|
|
|
|
|
| 2,932,000 |
|
|
|
|
| $ | 338,600,000 |
|
1999 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Jan-99 |
| 420 Lexington Leasehold |
| Sub-leasehold |
| Grand Central North |
|
|
|
|
| — |
| $ | 27,300,000 |
|
Jan-99 |
| 555 West 57th - 65% JV |
| Fee Interest |
| Midtown West |
| 941,000 |
| 100 |
| 100 |
| $ | 66,700,000 |
|
May-99 |
| 90 Broad Street - 35% JV |
| Fee Interest |
| Financial |
| 339,000 |
| 82 |
| N/A |
| $ | 34,500,000 |
|
May-99 |
| The Madison Properties: |
| Fee Interest |
| Grand Central South |
|
|
|
|
|
|
| $ | 50,000,000 |
|
|
| 286 Madison Avenue |
|
|
|
|
| 112,000 |
| 99 |
| 88 |
|
|
| |
|
| 290 Madison Avenue |
|
|
|
|
| 36,800 |
| 86 |
| 72 |
|
|
| |
|
| 292 Madison Avenue |
|
|
|
|
| 187,000 |
| 97 |
| 100 |
|
|
| |
Aug-99 |
| 1250 Broadway - 50% JV |
| Fee Interest |
| Penn Station |
| 670,000 |
| 97 |
| N/A |
| $ | 93,000,000 |
|
Nov-99 |
| 555 West 57th - remaining 35% |
| Fee Interest |
| Midtown West |
| — |
|
|
| 100 |
| $ | 34,100,000 |
|
|
|
|
|
|
|
|
| 2,285,800 |
|
|
|
|
| $ | 305,600,000 |
|
2000 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Feb-00 |
| 100 Park Avenue |
| Fee Interest |
| Grand Central South |
| 834,000 |
| 97 |
| 98 |
| $ | 192,000,000 |
|
Dec-00 |
| 180 Madison Avenue |
| Fee Interest |
| Grand Central South |
| 265,000 |
| 90 |
| 83 |
| $ | 41,250,000 |
|
Contribution to JV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
May-00 |
| 321 West 44th |
| Fee Interest |
| Times Square |
| 203,000 |
| 98 |
| N/A |
| $ | 28,400,000 |
|
|
|
|
|
|
|
|
| 1,302,000 |
|
|
|
|
| $ | 261,650,000 |
|
2001 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Jan-01 |
| 1370 Broadway |
| Fee Interest |
| Times Square South |
| 255,000 |
| 97 |
| N/A |
| $ | 50,500,000 |
|
Jan-01 |
| 1 Park Avenue |
| Various Interests |
| Grand Central South |
| 913,000 |
| 97 |
| 95 |
| $ | 233,900,000 |
|
Jan-01 |
| 469 7th Avenue - 35% JV |
| Fee Interest |
| Penn Station |
| 253,000 |
| 98 |
| N/A |
| $ | 45,700,000 |
|
Jun-01 |
| 317 Madison |
| Fee Interest |
| Grand Central |
| 450,000 |
| 95 |
| 89 |
| $ | 105,600,000 |
|
Acquisition of JV Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sep-01 |
| 1250 Broadway - 49.9% JV (2) |
| Fee Interest |
| Penn Station |
| 670,000 |
| 98 |
| 95 |
| $ | 126,500,000 |
|
|
|
|
|
|
|
|
| 2,541,000 |
|
|
|
|
| $ | 562,200,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2002 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
May-02 |
| 1515 Broadway - 55% JV |
| Fee Interest |
| Times Square |
| 1,750,000 |
| 98 |
| 96 |
| $ | 483,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 483,500,000 |
|
2003 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Feb-03 |
| 220 East 42nd Street |
| Fee Interest |
| United Nations |
| 1,135,000 |
| 92 |
| 95 |
| $ | 265,000,000 |
|
Mar-03 |
| 125 Broad Street |
| Fee Interest |
| Downtown |
| 525,000 |
| 100 |
| 100 |
| $ | 92,000,000 |
|
Oct-03 |
| 461 Fifth Avenue |
| Fee Interest |
| Grand Central |
| 200,000 |
| 94 |
| 91 |
| $ | 60,900,000 |
|
Dec-03 |
| 1221 Ave of Americas -45% JV |
| Fee Interest |
| Rockefeller Center |
| 2,550,000 |
| 99 |
| 99 |
| $ | 1,000,000,000 |
|
|
|
|
|
|
|
|
| 4,410,000 |
|
|
|
|
| $ | 1,417,900,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2004 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Mar-04 |
| 19 West 44th Street -35% JV |
| Fee Interest |
| Grand Central |
| 292,000 |
| 86 |
| 87 |
| $ | 67,000,000 |
|
(1) Acquisition price represents gross price for consolidated acquisitions as well as joint venture properties.
(2) Current ownership interest is 55%. (From 9/1/01-10/31/01 the company owned 99.8% of this property.)
37
SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999
|
|
|
|
|
|
|
|
|
| Sales |
| Sales |
| ||
|
| Property |
| Type of Ownership |
| Submarket |
| Net Rentable sf |
| Price ($’s) |
| Price ($’s/SF) |
| ||
2000 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Feb-00 |
| 29 West 35th Street |
| Fee Interest |
| Penn Station |
| 78,000 |
| $ | 11,700,000 |
| $ | 150 |
|
Mar-00 |
| 36 West 44th Street |
| Fee Interest |
| Grand Central |
| 178,000 |
| $ | 31,500,000 |
| $ | 177 |
|
May-00 |
| 321 West 44th Street - 35% JV |
| Fee Interest |
| Times Square |
| 203,000 |
| $ | 28,400,000 |
| $ | 140 |
|
Nov-00 |
| 90 Broad Street |
| Fee Interest |
| Financial |
| 339,000 |
| $ | 60,000,000 |
| $ | 177 |
|
Dec-00 |
| 17 Battery South |
| Fee Interest |
| Financial |
| 392,000 |
| $ | 53,000,000 |
| $ | 135 |
|
|
|
|
|
|
|
|
| 1,190,000 |
| $ | 184,600,000 |
| $ | 156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2001 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Jan-01 |
| 633 Third Ave |
| Fee Interest |
| Grand Central North |
| 40,623 |
| $ | 13,250,000 |
| $ | 326 |
|
May-01 |
| 1 Park Ave - 45% JV |
| Fee Interest |
| Grand Central South |
| 913,000 |
| $ | 233,900,000 |
| $ | 256 |
|
Jun-01 |
| 1412 Broadway |
| Fee Interest |
| Times Square South |
| 389,000 |
| $ | 90,700,000 |
| $ | 233 |
|
Jul-01 |
| 110 E. 42nd Street |
| Fee Interest |
| Grand Central |
| 69,700 |
| $ | 14,500,000 |
| $ | 208 |
|
Sep-01 |
| 1250 Broadway (1) |
| Fee Interest |
| Penn Station |
| 670,000 |
| $ | 126,500,000 |
| $ | 189 |
|
|
|
|
|
|
|
|
| 2,082,323 |
| $ | 478,850,000 |
| $ | 242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2002 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Jun-02 |
| 469 Seventh Avenue |
| Fee Interest |
| Penn Station |
| 253,000 |
| $ | 53,100,000 |
| $ | 210 |
|
|
|
|
|
|
|
|
| 253,000 |
| $ | 53,100,000 |
| $ | 210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2003 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Mar-03 |
| 50 West 23rd Street |
| Fee Interest |
| Chelsea |
| 333,000 |
| $ | 66,000,000 |
| $ | 198 |
|
Jul-03 |
| 1370 Broadway |
| Fee Interest |
| Times Square South |
| 255,000 |
| $ | 58,500,000 |
| $ | 229 |
|
Dec-03 |
| 321 W 44th Street |
| Fee Interest |
| Times Square |
| 203,000 |
| $ | 35,000,000 |
| $ | 172 |
|
|
|
|
|
|
|
|
| 791,000 |
| $ | 159,500,000 |
| $ | 202 |
|
2004 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
May-04 |
| 1 Park Avenue (2) |
| Fee Interest |
| Grand Central South |
| 913,000 |
| $ | 318,500,000 |
| $ | 349 |
|
(1) Company sold a 45% JV interest in the property at an implied $126.5mm sales price.
(2) Company sold a 75% JV interest in the property at an implied $318.5mm sales price.
38
Annualized rent is calculated as monthly base rent and escalations per the lease, as of a certain date, multiplied by 12.
Debt service coverage is adjusted EBITDA divided by total interest and principal payments.
Equity income/ (loss) from affiliates are generally accounted for on a cost basis and realized gains and losses are included in current earnings. For its investments in private companies, the Company periodically reviews its investments and management determines if the value of such investments have been permanently impaired. Permanent impairment losses for investments in public and private companies are included in current earnings.
Fixed charge is adjusted EBITDA divided by the total payments for ground leases and preferred stock.
Fixed charge coverage is adjusted EBITDA divided by total interest expense (including capitalized interest and debt premium amortization, but excluding finance cost amortization) plus preferred dividends and distributions.
Funds available for distribution (FAD) is defined as FFO plus non-real estate depreciation, 2% allowance for straight line credit loss, adjustment for straight line ground rent, non-cash deferred compensation, a pro-rata adjustment for FAD for SLG’s unconsolidated JV; less straight line rental income, free rent net of amortization, second cycle tenant improvement and leasing cost, and recurring building improvements.
Funds from operations (FFO) is defined as income from operations before minority interests, gains or losses from sales of real estate and extraordinary items plus real estate depreciation, an adjustment to derive SLG’s pro rata share of the FFO of unconsolidated joint ventures, and perpetual preferred stock dividends. In accordance with NAREIT White Paper on FFO, SLG includes the effects of straight-line rents in FFO.
Interest coverage is adjusted EBITDA divided by total interest expense.
Junior Mortgage Participations are subordinate interests in first mortgages.
Mezzanine Debt Loans are loans secured by ownership interests.
Operating earnings per share reflects income before minority interests and gains (losses) from dispositions of real estate and impairment reserves on assets held for sale and operating properties less minority interests’ share of income and preferred stock dividends if anti-dilutive.
Percentage leased represents the total percentage of total rentable square feet owned, which is leased, including month-to-month leases, as of the date reported. Space is considered leased when the tenant has either taken physical or economic occupancy.
Preferred Equity Investments are equity investments entitled to preferential returns that are senior to common equity.
Recurring capital expenditures represents non-incremental building improvements and leasing costs required to maintain current revenues. Recurring capital expenditures do not include immediate building improvements that were taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to “operating standard.”
Redevelopment costs are non-recurring capital expenditures incurred in order to improve buildings to SLG’s “operating standards.��� These building costs are taken into consideration during the underwriting for a given property’s acquisition.
Same-store NOI growth is the change in the NOI (excluding straight-line rents) of the same-store properties from the prior year reporting period to the current year reporting period.
Same-store properties include all properties that were owned during both the current and prior year reporting periods and excludes development properties prior to being stabilized for both the current and prior reporting period.
Second generation TI’s and LC’s are tenant improvements, lease commissions, and other leasing costs incurred during leasing of second generations space. Costs incurred prior to leasing available square feet are not included until such space is leased. Second generation space excludes square footage vacant at acquisition.
SLG’s share of total debt to market capitalization is calculated as SLG’s share of total debt divided by the sum of total debt plus market equity and preferred stock equity income redeemable shares. SLG’s share of total debt includes total consolidated debt plus SLG’s pro rata share of the debt of unconsolidated joint ventures less than JV partners’ share of debt. Market equity assumes conversion of all OP units into common stock.
Total square feet owned represents 100% of the square footage of properties either owned directly by SLG or in which SLG has a controlling interest (e.g. consolidated joint ventures).
39
CORPORATE GOVERNANCE
Stephen L. Green
Chairman of the Board
Marc Holliday
CEO and President
Gerard Nocera
Chief Operating Officer
Gregory F. Hughes
Chief Financial Officer
Andrew Mathias
Chief Investment Officer
Andrew S. Levine
General Counsel and Secretary
ANALYST COVERAGE
Firm |
| Analyst |
| Phone |
| |
AG Edwards |
| Dave Aubuchon |
| (314) 955-5452 |
| aubuchond@agedwards.com |
Corinthian Partners, LLC |
| Claus Hirsch |
| (212) 287-1565 |
| chirsch@corinthianpartners.com |
Credit Suisse First Boston |
| TBD |
| (212) 538-5250 |
| Jay.haberman@csfb.com |
Deutsche Banc Alex. Brown |
| Louis W. Taylor |
| (212) 469-4912 |
| louis.taylor@db.com |
Goldman Sachs |
| Carey Callaghan |
| (212) 902-4351 |
| carey.callaghan@gs.com |
KeyBanc Capital Markets |
| Frank Greywitt III |
| (216) 263-4795 |
| fgreywitt@mcdinvest.com |
Legg Mason Wood Walker, Inc. |
| David Fick |
| (410) 454-5018 |
| dmfick@leggmason.com |
Lehman Brothers, Inc. |
| David Shulman |
| (212) 526-3413 |
| dshulman@lehman.com |
J.P. Morgan Securities Inc. |
| Anthony Paolone |
| (212) 622-6682 |
| anthony.paolone@jpmorgan.com |
Prudential Securities |
| James W. Sullivan |
| (212) 778-2515 |
| jim_sullivan@prusec.com |
Raymond James & Associates |
| Paul Puryear |
| (727) 567-2253 |
| ppuryear@ecm.rjf.com |
Salomon Smith Barney |
| Jonathan Litt |
| (212) 816-0231 |
| jonathan.litt@ssmb.com |
Wachovia Securities |
| Christopher Haley |
| (443) 263-6773 |
| christopher.haley@wachovia.com |
SL Green Realty Corp. is followed by the analyst(s) listed above. Please note that any opinions, estimates or forecasts regarding SL Green Realty Corp.’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of SL Green Realty Corp. or its management. SL Green Realty Corp. does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.
40