Exhibit 99.2
SL Green Realty Corp.
First Quarter 2006
Supplemental Data
March 31, 2006
SL Green Realty Corp. is a fully integrated, self-administered and self-managed Real Estate Investment Trust, or REIT, that primarily acquires, owns, manages, leases 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 Investor Relations at investor.relations@slgreen.com or at 212-216-1601.
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 March 31, 2006 that will subsequently be released on Form 10-Q to be filed on or before May 10, 2006.
2
TABLE OF CONTENTS
Highlights of Current Period Financial Performance |
|
|
|
Unaudited Financial Statements |
|
Corporate Profile | 4 |
Financial Highlights | 5-11 |
Balance Sheets | 12-13 |
Statements of Operations | 14 |
Funds From Operations | 15 |
Statement of Stockholders’ Equity | 16 |
Taxable Income | 17 |
Joint Venture Statements | 18-20 |
|
|
Selected Financial Data | 21-24 |
|
|
Summary of Debt and Ground Lease Arrangements | 25-26 |
|
|
Mortgage Investments and Preferred Equity | 27-28 |
|
|
Property Data |
|
Composition of Property Portfolio | 29 |
Top Tenants | 30 |
Tenant Diversification | 31 |
Leasing Activity Summary | 32-33 |
Lease Expiration Schedule | 34 |
|
|
Summary of Acquisition/Disposition Activity | 35-36 |
Supplemental Definitions | 37 |
Corporate Information | 38 |
|
|
3
CORPORATE PROFILE
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 25 years SL Green has 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. With the formation of Gramercy Capital Corp., or Gramercy, (NYSE: GKK) in 2004, there will be a reduced focus on direct structured finance investments by the Company. 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, or 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.
4
FINANCIAL HIGHLIGHTS
FIRST QUARTER 2006 UNAUDITED |
|
FINANCIAL RESULTS
Funds From Operations, or FFO, available to common stockholders totaled $50.4 million, or $1.08 per share for the first quarter ended March 31, 2006, a 9.1% increase over the same quarter in 2005 when FFO totaled $44.6 million, or $0.99 per share.
Net income available for common stockholders totaled $23.7 million, or $0.54 per share (diluted) for the first quarter ended March 31, 2006. Net income available to common stockholders totaled $22.9 million, or $0.54 per share in the same quarter in 2005.
Funds available for distribution, or FAD, for the first quarter 2006 increased to $0.80 per share (diluted) versus $0.65 per share (diluted) in the prior year, a 23.1% increase.
The Company’s dividend payout ratio was 55.5% of FFO and 75.4% of FAD before first cycle leasing costs.
All per share amounts are presented on a diluted basis.
CONSOLIDATED RESULTS
Total quarterly revenues increased 25.1% in the first quarter to $125.2 million compared to $100.1 million in the prior year. The $25.1 million growth in revenue resulted primarily from the following items:
• $7.8 million increase from 2006 and 2005 acquisitions,
• $12.1 million increase from same-store properties,
• $2.9 million increase in other revenue, which was primarily due to fees earned from Gramercy ($0.9 million), and
• $2.3 million increase in preferred equity and investment income.
The Company’s earnings before interest, taxes, depreciation and amortization, or EBITDA, increased by $6.1 million (9.9%) to $67.2 million. The following items drove EBITDA improvements:
• $4.6 million increase from 2006 and 2005 acquisitions.
• $3.7 million increase from same-store properties.
• $2.3 million increase in preferred equity and investment income. The weighted-average structured finance investment balance for the quarter increased to $453.1 million from $363.2 million in the prior year. The weighted-average yield for the quarter was 10.3% compared to 10.4% in the prior year.
• $2.1 million decrease from the equity in net income from unconsolidated joint ventures primarily due to our investments at 1515 Broadway ($2.6 million), 1250 Broadway ($0.5 million) and One Madison Avenue-South Building ($0.5 million). This was partially offset by increases at Gramercy ($1.5 million).
• $4.7 million decrease from higher MG&A expense. This is primarily due to higher compensation costs at GKK Manager LLC which is consolidated into the accounts of SL Green.
5
• $2.3 million increase in non-real estate revenues net of expenses, primarily due to fee income from Gramercy ($0.9 million).
FFO before minority interests improved $5.8 million primarily as a result of:
• $6.1 million increase in EBITDA,
• $1.9 million increase in FFO from unconsolidated joint ventures,
• $1.7 million decrease from higher interest expense, and
• $0.5 million decrease from discontinued operations and non-real estate depreciation.
SAME-STORE RESULTS
Consolidated Properties
Same-store first quarter 2006 GAAP NOI increased $3.6 million (8.7%) to $45.8 million compared to the prior year. Operating margins after ground rent decreased from 50.7% to 48.2%.
The $3.6 million increase in GAAP NOI was primarily due to:
• $8.1 million (11.7%) increase in rental revenue primarily due to improved leasing,
• $2.9 million (26.0%) increase in escalation and reimbursement revenue primarily due to electric reimbursements,
• $1.0 million (93.5%) increase in other income, and
• $4.9 million (19.2%) increase in operating expenses, primarily driven by increases in utilities and ground rent expense, and
• $3.5 million (24.7%) increase in real estate taxes.
Joint Venture Properties
Joint Venture properties first quarter 2006 GAAP NOI increased $0.6 million (2.6%) to $23.2 million compared to the prior year. Operating margins after ground rent decreased from 56.4% to 54.3%.
The $0.6 million increase in GAAP NOI was primarily due to:
• $0.6 million (1.7%) increase in rental revenue primarily due to improved leasing,
• $1.9 million (28.0%) increase in escalation and reimbursement revenue primarily due to electric reimbursements and real estate tax and operating expense recoveries,
• $0.4 million (872.7%) increase in other income,
• $0.7 million (8.7%) increase in real estate taxes, and
• $1.6 million (16.4%) increase in operating expenses primarily driven by increases in utilities and insurance.
6
STRUCTURED FINANCE ACTIVITY
As of March 31, 2006, our structured finance and preferred equity investments totaled $466.2 million. The weighted average balance outstanding for the first quarter of 2006 was $453.1 million. During the first quarter of 2006 the weighted average yield was 10.3%.
During the first quarter 2006, the Company originated $65.9 million of structured finance investments with an initial yield of 9.1%. This includes an investment in a New York City commercial office property, which Gramercy elected not to make.
In March, 2006, Mack-Cali Realty Corporation agreed to acquire The Gale Company’s interests in the New Jersey properties constituting the Bellmeade portfolio, which interests are in substantially all of the entities in which the Company has a $75.0 million preferred equity investment. As a result of this transaction, the Company expects that a substantial portion of its preferred equity investment will be repaid. This transaction, which is subject to customary closing conditions, is expected to close during the second quarter of 2006.
QUARTERLY LEASING HIGHLIGHTS
Vacancy at December 31, 2005 was 603,960 useable square feet net of holdover tenants. During the quarter, 598,601 additional useable office, retail and storage square feet became available at an average escalated cash rent of $35.80 per rentable square foot. Space available to lease during the quarter totaled 1,214,649 useable square feet, or 6.5% of the total portfolio.
During the first quarter, 65 office leases, including early renewals, were signed totaling 539,399 rentable square feet. New cash rents averaged $37.74 per rentable square foot. Replacement rents were 16.7% higher than rents on previously occupied space, which had fully escalated cash rents averaging $32.33 per rentable square foot. The average lease term was 6.7 years and average tenant concessions were 2.1 months of free rent with a tenant improvement allowance of $12.91 per rentable square foot.
The Company also signed 6 retail and storage leases, including early renewals, for 27,007 rentable square feet. The average lease term was 9.6 years and the average tenant concessions were 5.1 months of free rent with a tenant improvement allowance of $1.55 per rentable square foot.
REAL ESTATE ACTIVITY
Real estate investment transactions entered into during the first quarter totaled approximately $240.0 million and included:
• The Company entered into a long term operating net leasehold interest in 521 Fifth Avenue – a 40-story, 460,000-square-foot office building – with an ownership group led by RFR Holding LLC, RFR, which retained fee ownership of the property. The
7
Company also purchased an option to acquire fee ownership of the property in five years for $15.0 million. Assuming the Company exercises its option, the total cost would be $225 million. The acquisition was financed with a $140.0 million loan and proceeds drawn under our revolving credit facility.
• The Company, along with Credit Suisse, Ian Schrager and RFR entered into a joint venture arrangement for the redevelopment and residential conversion of One Madison Avenue’s North Tower, also known as “The Clock Tower.” Under the terms of the venture, the Company will retain a 30% interest in the Clock Tower. The arrangement provides Ian Schrager and RFR with the ability to increase its ownership interest if certain incentive return thresholds are achieved.
Investment In Gramercy Capital Corp.
At March 31, 2006, the Company’s investment in Gramercy was $93.6 million. Fees earned from various arrangements between the Company and Gramercy totaled approximately $4.7 million for the quarter ended March 31, 2006, including an incentive fee of $1.2 million earned as a result of Gramercy’s FFO exceeding the 9.5% annual return on equity performance threshold. The Company’s share of FFO generated from its investment in Gramercy totaled approximately $3.2 million for the quarter ended March 31, 2006.
The Company’s marketing, general and administrative, or MG&A, expenses include the consolidation of the expenses of its subsidiary GKK Manager LLC, the entity which manages and advises Gramercy. For the quarter ended March 31, 2006, the Company’s MG&A includes approximately $2.6 million of costs associated with Gramercy.
FINANCING/ CAPITAL ACTIVITY
In January 2006, the Company, through a joint venture with The City Investment Fund, L.P., or CIF, and The Witkoff group, recapitalized 485 Lexington Avenue. The joint venture obtained a $390.0 million three year loan, which bears interest at LIBOR plus 1.35%, and which can be extended for an additional two years. HSH Nordbank AG, New York Branch fully underwrote the $390.0 million financing. The initial funding of the loan was approximately $293.0 million which was used to repay the existing loan, return 100% of the partners invested capital and provide for a return on capital that exceeded the performance thresholds established with CIF. The balance of the loan will be used to fund the remaining renovations, lease up and tenant improvements for the building. As a result of exceeding the performance thresholds established with CIF, the Company’s economic stake in the property increased from 30% to 50%. The Company used its portion of the refinancing proceeds to repay its 2005 unsecured revolving credit facility and for new investments.
8
Dividends
On March 22, 2006, the Company declared a dividend of $0.60 per common share for the first quarter 2006. The dividend was payable April 14, 2006 to stockholders of record on the close of business on March 31, 2006. This distribution reflects the regular quarterly dividend, which is the equivalent of an annualized distribution of $2.40 per common share.
On March 22, 2006, the Company also approved a distribution on it’s Series C preferred stock for the period January 15, 2006 through and including April 14, 2006, of $0.4766 per share, payable April 14, 2006 to stockholders of record on the close of business on March 31, 2006. The distribution reflects the regular quarterly distribution, which is the equivalent of an annualized distribution of $1.90625 per Series C preferred stock.
On March 22, 2006, the Company also approved a distribution on it’s Series D preferred stock for the period January 15, 2006 through and including April 14, 2006, of $0.4922 per share, payable April 14, 2006 to stockholders of record on the close of business on March 31, 2006. The distribution reflects the regular quarterly distribution, which is the equivalent of an annualized distribution of $1.96875 per Series D preferred stock.
9
SL Green Realty Corp.
Key Financial Data
March 31, 2006
(Dollars in Thousands Except Per Share and Sq. Ft.)
|
| As of or for the three months ended |
| |||||||||||||
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
| |||||
Net income available to common shareholders - diluted |
| $ | 0.54 |
| $ | 0.48 |
| $ | 0.87 |
| $ | 1.31 |
| $ | 0.54 |
|
Funds from operations available to common shareholders - diluted |
| $ | 1.08 |
| $ | 1.02 |
| $ | 1.13 |
| $ | 1.02 |
| $ | 0.99 |
|
Funds available for distribution to common shareholders - diluted |
| $ | 0.80 |
| $ | 0.67 |
| $ | 0.83 |
| $ | 0.69 |
| $ | 0.65 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Common Share Price & Dividends |
|
|
|
|
|
|
|
|
|
|
| |||||
At the end of the period |
| $ | 101.50 |
| $ | 76.39 |
| $ | 68.18 |
| $ | 64.50 |
| $ | 56.22 |
|
High during period |
| $ | 103.09 |
| $ | 77.14 |
| $ | 70.10 |
| $ | 66.05 |
| $ | 59.74 |
|
Low during period |
| $ | 77.70 |
| $ | 63.80 |
| $ | 64.76 |
| $ | 55.38 |
| $ | 52.70 |
|
Common dividends per share |
| $ | 0.60 |
| $ | 0.60 |
| $ | 0.54 |
| $ | 0.54 |
| $ | 0.54 |
|
FFO Payout Ratio |
| 55.53 | % | 58.65 | % | 47.70 | % | 52.99 | % | 54.73 | % | |||||
FAD Payout Ratio |
| 75.40 | % | 89.03 | % | 64.78 | % | 78.57 | % | 82.90 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Common Shares & Units |
|
|
|
|
|
|
|
|
|
|
| |||||
Common shares outstanding |
| 43,133 |
| 42,456 |
| 41,942 |
| 41,830 |
| 41,622 |
| |||||
Units outstanding |
| 2,263 |
| 2,427 |
| 2,502 |
| 2,512 |
| 2,531 |
| |||||
Total shares and units outstanding |
| 45,396 |
| 44,883 |
| 44,444 |
| 44,342 |
| 44,153 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted average common shares and units outstanding - basic |
| 45,169 |
| 44,596 |
| 44,426 |
| 44,303 |
| 43,833 |
| |||||
Weighted average common shares and units outstanding - diluted |
| 46,608 |
| 45,820 |
| 45,674 |
| 45,505 |
| 45,160 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Market Capitalization |
|
|
|
|
|
|
|
|
|
|
| |||||
Market value of common equity |
| $ | 4,607,694 |
| $ | 3,428,612 |
| $ | 3,030,192 |
| $ | 2,860,059 |
| $ | 2,482,282 |
|
Liquidation value of preferred equity |
| 257,500 |
| 257,500 |
| 257,500 |
| 257,500 |
| 257,500 |
| |||||
Consolidated debt |
| 1,693,907 |
| 1,542,252 |
| 1,626,640 |
| 1,493,753 |
| 1,315,315 |
| |||||
Consolidated market capitalization |
| $ | 6,559,101 |
| $ | 5,228,364 |
| $ | 4,914,332 |
| $ | 4,611,312 |
| $ | 4,055,097 |
|
SLG portion JV debt |
| 1,111,160 |
| 1,040,265 |
| 911,959 |
| 928,334 |
| 564,945 |
| |||||
Combined market capitalization |
| $ | 7,670,261 |
| $ | 6,268,629 |
| $ | 5,826,291 |
| $ | 5,539,646 |
| $ | 4,620,042 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated debt to market capitalization |
| 25.83 | % | 29.50 | % | 33.10 | % | 32.39 | % | 32.44 | % | |||||
Combined debt to market capitalization |
| 36.57 | % | 41.20 | % | 43.57 | % | 43.72 | % | 40.70 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated debt service coverage |
| 3.55 |
| 3.53 |
| 3.70 |
| 3.54 |
| 3.65 |
| |||||
Consolidated fixed charge coverage |
| 2.45 |
| 2.39 |
| 2.55 |
| 2.40 |
| 2.43 |
| |||||
Combined fixed charge coverage |
| 1.95 |
| 1.93 |
| 2.07 |
| 2.03 |
| 2.16 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Portfolio Statistics |
|
|
|
|
|
|
|
|
|
|
| |||||
Directly owned office buildings |
| 22 |
| 21 |
| 21 |
| 21 |
| 21 |
| |||||
Joint venture office buildings |
| 7 |
| 7 |
| 7 |
| 8 |
| 8 |
| |||||
|
| 29 |
| 28 |
| 28 |
| 29 |
| 29 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Directly owned square footage |
| 9,805,000 |
| 9,345,000 |
| 9,345,000 |
| 9,345,000 |
| 9,164,000 |
| |||||
Joint venture square footage |
| 8,814,900 |
| 8,814,900 |
| 8,814,900 |
| 9,079,900 |
| 8,195,000 |
| |||||
|
| 18,619,900 |
| 18,159,900 |
| 18,159,900 |
| 18,424,900 |
| 17,359,000 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Quarter end occupancy-portfolio |
| 95.2 | % | 96.7 | % | 96.0 | % | 95.9 | % | 95.7 | % | |||||
Quarter end occupancy- same store - wholly owned |
| 96.1 | % | 96.0 | % | 94.9 | % | 95.3 | % | 95.0 | % | |||||
Quarter end occupancy- same store - combined (wholly owned + joint venture) |
| 96.3 | % | 96.5 | % | 96.0 | % | 96.5 | % | 96.3 | % |
10
|
| As of or for the three months ended |
| |||||||||||||
|
| 3/31/2006 |
| 12/31/05 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Selected Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
| |||||
Real estate assets before depreciation |
| $ | 2,343,714 |
| $ | 2,222,922 |
| $ | 2,183,267 |
| $ | 2,049,820 |
| $ | 1,859,431 |
|
Investments in unconsolidated joint ventures |
| $ | 533,145 |
| $ | 543,189 |
| $ | 659,860 |
| $ | 638,336 |
| $ | 579,194 |
|
Structured finance investments |
| $ | 466,173 |
| $ | 400,076 |
| $ | 400,049 |
| $ | 396,862 |
| $ | 375,099 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Assets |
| $ | 3,482,532 |
| $ | 3,309,777 |
| $ | 3,352,330 |
| $ | 3,154,845 |
| $ | 2,932,962 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed rate & hedged debt |
| $ | 1,254,116 |
| $ | 1,255,141 |
| $ | 1,256,095 |
| $ | 1,256,978 |
| $ | 1,025,315 |
|
Variable rate debt |
| 439,791 |
| 287,111 |
| 370,545 |
| 236,775 |
| 290,000 |
| |||||
Total consolidated debt |
| $ | 1,693,907 |
| $ | 1,542,252 |
| $ | 1,626,640 |
| $ | 1,493,753 |
| $ | 1,315,315 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Liabilities |
| $ | 1,893,838 |
| $ | 1,751,275 |
| $ | 1,821,699 |
| $ | 1,668,824 |
| $ | 1,483,395 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed rate & hedged debt-including SLG portion of JV debt |
| $ | 1,768,857 |
| $ | 1,741,225 |
| $ | 1,732,776 |
| $ | 1,756,389 |
| $ | 1,245,569 |
|
Variable rate debt - including SLG portion of JV debt |
| 1,036,210 |
| 841,292 |
| 805,823 |
| 665,698 |
| 634,691 |
| |||||
Total combined debt |
| $ | 2,805,067 |
| $ | 2,582,517 |
| $ | 2,538,599 |
| $ | 2,422,087 |
| $ | 1,880,260 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Selected Operating Data |
|
|
|
|
|
|
|
|
|
|
| |||||
Property operating revenues |
| $ | 101,823 |
| $ | 94,975 |
| $ | 92,075 |
| $ | 87,771 |
| $ | 82,189 |
|
Property operating expenses |
| 55,022 |
| 48,442 |
| 48,660 |
| 44,427 |
| 42,829 |
| |||||
Property operating NOI |
| $ | 46,801 |
| $ | 46,533 |
| $ | 43,415 |
| $ | 43,344 |
| $ | 39,360 |
|
NOI from discontinued operations |
| — |
| — |
| — |
| 117 |
| 684 |
| |||||
Total property operating NOI |
| $ | 46,801 |
| $ | 46,533 |
| $ | 43,415 |
| $ | 43,461 |
| $ | 40,044 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
SLG share of Property NOI from JVs |
| $ | 32,130 |
| $ | 31,595 |
| $ | 32,770 |
| $ | 29,813 |
| $ | 23,527 |
|
SLG share of FFO from Gramercy Capital |
| $ | 3,168 |
| $ | 3,205 |
| $ | 2,610 |
| $ | 2,164 |
| $ | 1,143 |
|
Structured finance income |
| $ | 13,479 |
| $ | 11,267 |
| $ | 10,652 |
| $ | 11,925 |
| $ | 11,147 |
|
Other income |
| $ | 9,917 |
| $ | 8,352 |
| $ | 16,899 |
| $ | 6,156 |
| $ | 6,776 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Marketing general & administrative expenses |
| $ | 12,986 |
| $ | 11,965 |
| $ | 13,418 |
| $ | 10,594 |
| $ | 8,238 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated interest |
| $ | 18,850 |
| $ | 20,100 |
| $ | 20,580 |
| $ | 19,479 |
| $ | 17,366 |
|
Combined interest |
| $ | 34,428 |
| $ | 34,642 |
| $ | 33,487 |
| $ | 29,930 |
| $ | 23,422 |
|
Preferred Dividend |
| $ | 4,969 |
| $ | 4,969 |
| $ | 4,969 |
| $ | 4,969 |
| $ | 4,969 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Office Leasing Statistics |
|
|
|
|
|
|
|
|
|
|
| |||||
Total office leases signed |
| 65 |
| 55 |
| 58 |
| 71 |
| 55 |
| |||||
Total office square footage leased |
| 539,399 |
| 963,087 |
| 341,458 |
| 386,134 |
| 415,806 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average rent psf |
| $ | 37.74 |
| $ | 46.89 |
| $ | 43.79 |
| $ | 43.49 |
| $ | 40.60 |
|
Escalated rents psf |
| $ | 32.33 |
| $ | 38.99 |
| $ | 41.68 |
| $ | 42.75 |
| $ | 38.69 |
|
Percentage of rent over escalated |
| 16.7 | % | 20.3 | % | 5.1 | % | 1.7 | % | 4.9 | % | |||||
Tenant concession packages psf |
| $ | 12.91 |
| $ | 39.57 |
| $ | 30.74 |
| $ | 14.65 |
| $ | 31.64 |
|
Free rent months |
| 2.1 |
| 6.2 |
| 2.7 |
| 2.3 |
| 4.6 |
|
11
COMPARATIVE BALANCE SHEETS
Unaudited |
|
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
Assets |
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial real estate properties, at cost: |
|
|
|
|
|
|
|
|
|
|
| |||||
Land & land interests |
| $ | 270,351 |
| $ | 288,239 |
| $ | 288,080 |
| $ | 264,696 |
| $ | 224,943 |
|
Buildings & improvements fee interest |
| 1,365,554 |
| 1,440,584 |
| 1,408,858 |
| 1,301,193 |
| 1,135,318 |
| |||||
Buildings & improvements leasehold |
| 695,601 |
| 481,891 |
| 474,121 |
| 471,723 |
| 472,558 |
| |||||
Buildings & improvements under capital lease |
| 12,208 |
| 12,208 |
| 12,208 |
| 12,208 |
| 12,208 |
| |||||
|
| $ | 2,343,714 |
| $ | 2,222,922 |
| $ | 2,183,267 |
| $ | 2,049,820 |
| $ | 1,845,027 |
|
Less accumulated depreciation |
| (231,561 | ) | (219,295 | ) | (205,443 | ) | (192,249 | ) | (179,180 | ) | |||||
|
| $ | 2,112,153 |
| $ | 2,003,627 |
| $ | 1,977,824 |
| $ | 1,857,571 |
| $ | 1,665,847 |
|
Other Real Estate Investments: |
|
|
|
|
|
|
|
|
|
|
| |||||
Investment in unconsolidated joint ventures |
| 533,145 |
| 543,189 |
| 659,860 |
| 638,336 |
| 579,194 |
| |||||
Structured finance investments |
| 466,173 |
| 400,076 |
| 400,049 |
| 396,862 |
| 375,099 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Assets held for sale |
| — |
| — |
| — |
| — |
| 16,486 |
| |||||
Cash and cash equivalents |
| 20,535 |
| 24,104 |
| 14,193 |
| 1,978 |
| 16,789 |
| |||||
Restricted cash |
| 59,489 |
| 60,750 |
| 56,215 |
| 62,136 |
| 53,410 |
| |||||
Tenant and other receivables, net of $9,491 reserve at 3/31/06 |
| 21,011 |
| 23,722 |
| 21,928 |
| 18,011 |
| 16,174 |
| |||||
Related party receivables |
| 6,329 |
| 7,707 |
| 3,598 |
| 3,978 |
| 4,519 |
| |||||
Deferred rents receivable, net of reserve for tenant credit loss of $9,450 at 3/31/06 |
| 80,249 |
| 75,294 |
| 73,983 |
| 70,064 |
| 64,074 |
| |||||
Deferred costs, net |
| 77,145 |
| 79,428 |
| 68,518 |
| 60,700 |
| 55,041 |
| |||||
Other assets |
| 106,303 |
| 91,880 |
| 76,162 |
| 45,209 |
| 86,329 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Assets |
| $ | 3,482,532 |
| $ | 3,309,777 |
| $ | 3,352,330 |
| $ | 3,154,845 |
| $ | 2,932,962 |
|
12
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
| |||||
Mortgage notes payable |
| $ | 912,262 |
| $ | 885,252 |
| $ | 866,640 |
| $ | 770,023 |
| $ | 600,315 |
|
Unsecured & Secured term loans |
| 525,000 |
| 525,000 |
| 525,000 |
| 525,000 |
| 425,000 |
| |||||
Revolving credit facilities |
| 156,645 |
| 32,000 |
| 135,000 |
| 98,730 |
| 290,000 |
| |||||
Derivative Instruments-fair value |
| — |
| — |
| — |
| 1,078 |
| — |
| |||||
Accrued interest |
| 7,706 |
| 7,711 |
| 7,589 |
| 6,909 |
| 5,768 |
| |||||
Accounts payable and accrued expenses |
| 69,079 |
| 87,390 |
| 77,329 |
| 66,759 |
| 60,869 |
| |||||
Deferred revenue |
| 30,759 |
| 25,691 |
| 25,596 |
| 16,406 |
| 19,558 |
| |||||
Capitalized lease obligations |
| 16,292 |
| 16,260 |
| 16,228 |
| 16,166 |
| 16,106 |
| |||||
Deferred land lease payable |
| 16,469 |
| 16,312 |
| 16,179 |
| 16,043 |
| 15,883 |
| |||||
Dividend and distributions payable |
| 31,408 |
| 31,103 |
| 28,176 |
| 28,122 |
| 28,026 |
| |||||
Security deposits |
| 28,218 |
| 24,556 |
| 23,962 |
| 23,588 |
| 21,870 |
| |||||
Junior subordinated deferrable interest debentures |
| 100,000 |
| 100,000 |
| 100,000 |
| 100,000 |
| — |
| |||||
Total Liabilities |
| $ | 1,893,838 |
| $ | 1,751,275 |
| $ | 1,821,699 |
| $ | 1,668,824 |
| $ | 1,483,395 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Minority interest in other partnerships |
| 34,693 |
| 25,012 |
| 14,493 |
| 724 |
| 702 |
| |||||
Minority interest in operating partnership (2,263 units outstanding) at 3/31/06 |
| 68,982 |
| 74,049 |
| 76,625 |
| 76,061 |
| 74,557 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
| |||||
7.625% Series C Perpetual Preferred Shares |
| 151,981 |
| 151,981 |
| 151,981 |
| 151,981 |
| 151,981 |
| |||||
7.875% Series D Perpetual Preferred Shares |
| 96,321 |
| 96,321 |
| 96,321 |
| 96,321 |
| 96,321 |
| |||||
Common stock, $.01 par value 100,000 shares authorized, 43,133 issued and outstanding at 3/31/06 |
| 431 |
| 425 |
| 419 |
| 418 |
| 416 |
| |||||
Additional paid – in capital |
| 983,144 |
| 959,858 |
| 936,923 |
| 928,900 |
| 918,810 |
| |||||
Accumulated other comprehensive income |
| 19,750 |
| 15,316 |
| 13,691 |
| 6,118 |
| 15,164 |
| |||||
Retained earnings |
| 233,392 |
| 235,540 |
| 240,178 |
| 225,498 |
| 191,616 |
| |||||
Total Stockholders’ Equity |
| $ | 1,485,019 |
| $ | 1,459,441 |
| $ | 1,439,513 |
| $ | 1,409,236 |
| $ | 1,374,308 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Liabilities and Stockholders’ Equity |
| $ | 3,482,532 |
| $ | 3,309,777 |
| $ | 3,352,330 |
| $ | 3,154,845 |
| $ | 2,932,962 |
|
13
COMPARATIVE STATEMENTS OF OPERATIONS
Unaudited |
|
|
| Three Months Ended |
| Three Months Ended |
| Three Months Ended |
| ||||||
|
| March 31, |
| March 31, |
| December 31, |
| September 30, |
| ||||
Revenues |
|
|
|
|
|
|
|
|
| ||||
Rental revenue, net |
| $ | 86,186 |
| $ | 70,555 |
| $ | 78,126 |
| $ | 75,717 |
|
Escalation and reimbursement revenues |
| 15,637 |
| 11,634 |
| 16,849 |
| 16,358 |
| ||||
Investment income |
| 13,479 |
| 11,147 |
| 11,267 |
| 10,652 |
| ||||
Other income |
| 9,917 |
| 6,776 |
| 8,352 |
| 16,899 |
| ||||
Total Revenues, net |
| 125,219 |
| 100,112 |
| 114,594 |
| 119,626 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Equity in net income from unconsolidated joint ventures |
| 9,968 |
| 12,059 |
| 10,706 |
| 13,250 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses |
| 30,890 |
| 23,858 |
| 28,048 |
| 28,452 |
| ||||
Ground rent |
| 5,008 |
| 4,516 |
| 5,249 |
| 4,922 |
| ||||
Real estate taxes |
| 19,124 |
| 14,455 |
| 15,145 |
| 15,286 |
| ||||
Marketing, general and administrative |
| 12,986 |
| 8,238 |
| 11,965 |
| 13,418 |
| ||||
Total Operating Expenses |
| 68,008 |
| 51,067 |
| 60,407 |
| 62,078 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
EBITDA |
| 67,179 |
| 61,104 |
| 64,893 |
| 70,798 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest |
| 18,850 |
| 17,194 |
| 20,100 |
| 20,580 |
| ||||
Amortization of deferred financing costs |
| 714 |
| 793 |
| 875 |
| 1,887 |
| ||||
Depreciation and amortization |
| 16,784 |
| 14,041 |
| 16,379 |
| 15,317 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income Before Minority Interest and Items |
| 30,831 |
| 29,076 |
| 27,539 |
| 33,014 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from discontinued operations |
| — |
| 379 |
| — |
| — |
| ||||
Gain on sale of discontinued operations |
| — |
| — |
| — |
| — |
| ||||
Equity in net gain on sale of joint venture property |
| — |
| — |
| — |
| 11,550 |
| ||||
Minority interest |
| (2,130 | ) | (1,576 | ) | (1,734 | ) | (2,265 | ) | ||||
Net Income |
| 28,701 |
| 27,879 |
| 25,805 |
| 42,299 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Dividends on perpetual preferred shares |
| 4,969 |
| 4,969 |
| 4,969 |
| 4,969 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income Available For Common Shareholders |
| $ | 23,732 |
| $ | 22,910 |
| $ | 20,836 |
| $ | 37,330 |
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings per Share |
|
|
|
|
|
|
|
|
| ||||
Net income per share (basic) |
| $ | 0.55 |
| $ | 0.56 |
| $ | 0.49 |
| $ | 0.89 |
|
Net income per share (diluted) |
| $ | 0.54 |
| $ | 0.54 |
| $ | 0.48 |
| $ | 0.87 |
|
14
COMPARATIVE COMPUTATION OF FFO AND FAD
Unaudited
($000’s omitted - except per share data) |
|
|
| Three Months Ended |
| Three Months Ended |
| Three Months Ended |
| |||||||
|
| March 31, |
| March 31, |
| December 31, |
| September 30, |
| |||||
Funds from operations |
|
|
|
|
|
|
|
|
| |||||
Net Income before Minority Interests and Items |
| $ | 30,831 |
| $ | 29,076 |
| $ | 27,539 |
| $ | 33,014 |
| |
|
|
|
|
|
|
|
|
|
| |||||
Add: | Depreciation and amortization |
| 16,784 |
| 14,041 |
| 16,379 |
| 15,317 |
| ||||
| FFO from discontinued operations |
| — |
| 512 |
| — |
| — |
| ||||
| FFO adjustment for joint ventures |
| 7,980 |
| 6,082 |
| 8,130 |
| 8,549 |
| ||||
Less: | Dividends on preferred shares |
| 4,969 |
| 4,969 |
| 4,969 |
| 4,969 |
| ||||
| Non real estate depreciation and amortization |
| 268 |
| 181 |
| 205 |
| 207 |
| ||||
| Funds From Operations |
| $ | 50,358 |
| $ | 44,561 |
| $ | 46,874 |
| $ | 51,704 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Funds From Operations - Basic per Share |
| $ | 1.11 |
| $ | 1.02 |
| $ | 1.05 |
| $ | 1.16 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Funds From Operations - Diluted per Share |
| $ | 1.08 |
| $ | 0.99 |
| $ | 1.02 |
| $ | 1.13 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Funds Available for Distribution |
|
|
|
|
|
|
|
|
| |||||
FFO |
|
| $ | 50,358 |
| $ | 44,561 |
| $ | 46,874 |
| $ | 51,704 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Add: | Non real estate depreciation and amortization |
| 268 |
| 181 |
| 205 |
| 207 |
| ||||
| Amortization of deferred financing costs |
| 714 |
| 793 |
| 875 |
| 1,887 |
| ||||
| Non-cash deferred compensation |
| 2,296 |
| 983 |
| 1,086 |
| 1,086 |
| ||||
Less: | FAD adjustment for Joint Ventures |
| 2,440 |
| 5,012 |
| 5,658 |
| 5,206 |
| ||||
| FAD adjustment for discontinued operations |
| — |
| (11 | ) | — |
| — |
| ||||
| Straight-line rental income and other non cash adjustments |
| 5,622 |
| 4,948 |
| 2,427 |
| 4,181 |
| ||||
| Second cycle tenant improvements |
| 3,967 |
| 4,148 |
| 5,626 |
| 4,310 |
| ||||
| Second cycle leasing commissions |
| 3,972 |
| 2,904 |
| 1,159 |
| 2,601 |
| ||||
| Revenue enhancing recurring CAPEX |
| 289 |
| 22 |
| 595 |
| 73 |
| ||||
| Non- revenue enhancing recurring CAPEX |
| 259 |
| 76 |
| 2,696 |
| 440 |
| ||||
|
|
|
|
|
|
|
|
|
| |||||
Funds Available for Distribution |
| $ | 37,087 |
| $ | 29,418 |
| $ | 30,879 |
| $ | 38,073 |
| |
| Diluted per Share |
| $ | 0.80 |
| $ | 0.65 |
| $ | 0.67 |
| $ | 0.83 |
|
First Cycle Leasing Costs |
|
|
|
|
|
|
|
|
| |||||
| Tenant improvements |
| 1,391 |
| 138 |
| 5,065 |
| 2,459 |
| ||||
| Leasing commissions |
| 3,073 |
| 895 |
| 3,179 |
| 214 |
| ||||
|
|
|
|
|
|
|
|
|
| |||||
Funds Available for Distribution after First Cycle Leasing Costs |
| $ | 32,623 |
| $ | 28,385 |
| $ | 22,635 |
| $ | 35,400 |
| |
|
|
|
|
|
|
|
|
|
| |||||
Funds Available for Distribution per Diluted Weighted Average Unit and Common Share |
| $ | 0.70 |
| $ | 0.63 |
| $ | 0.49 |
| $ | 0.78 |
| |
|
|
|
|
|
|
|
|
|
| |||||
Redevelopment Costs |
| $ | 1,936 |
| $ | 429 |
| $ | 5,124 |
| $ | 2,971 |
| |
|
|
|
|
|
|
|
|
|
| |||||
Payout Ratio of Funds From Operations |
| 55.53 | % | 54.73 | % | 58.65 | % | 47.70 | % | |||||
Payout Ratio of Funds Available for Distribution Before First Cycle Leasing Costs |
| 75.40 | % | 82.90 | % | 89.03 | % | 64.78 | % |
15
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
Unaudited
($000’s omitted) |
|
|
| Series C |
| Series D |
| Common Stock |
| Additional |
| Retained |
| Accumulated |
| TOTAL |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Balance at December 31, 2005 |
| $ | 151,981 |
| $ | 96,321 |
| $ | 425 |
| $ | 959,858 |
| $ | 235,540 |
| $ | 15,316 |
| $ | 1,459,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net Income |
|
|
|
|
|
|
|
|
| 28,701 |
|
|
| 28,701 |
| |||||||
Preferred Dividend |
|
|
|
|
|
|
|
|
| (4,969 | ) |
|
| (4,969 | ) | |||||||
Exercise of employee stock options and redemption of units |
|
|
|
|
| 5 |
| 16,560 |
|
|
|
|
| 16,565 |
| |||||||
Stock-based compensation fair value |
|
|
|
|
|
|
| 739 |
|
|
|
|
| 739 |
| |||||||
Cash distributions declared ($0.60 per common share) |
|
|
|
|
|
|
|
|
| (25,880 | ) |
|
| (25,880 | ) | |||||||
Comprehensive Income - Unrealized gain of derivative instruments |
|
|
|
|
|
|
|
|
|
|
| 4,434 |
| 4,434 |
| |||||||
Dividend reinvestment plan |
|
|
|
|
|
|
| 3,421 |
|
|
|
|
| 3,421 |
| |||||||
Deferred compensation plan |
|
|
|
|
| 1 |
| 269 |
|
|
|
|
| 270 |
| |||||||
Amortization of deferred compensation |
|
|
|
|
|
|
| 2,297 |
|
|
|
|
| 2,297 |
| |||||||
Balance at March 31, 2006 |
| $ | 151,981 |
| $ | 96,321 |
| $ | 431 |
| $ | 983,144 |
| $ | 233,392 |
| $ | 19,750 |
| $ | 1,485,019 |
|
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, 2005 |
| 42,455,829 |
| 2,426,786 |
| — |
| 44,882,615 |
| — |
| 44,882,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD share activity |
| 677,281 |
| (163,489 | ) |
|
| 513,792 |
|
|
| 513,792 |
|
Share Count at March 31, 2006 - Basic |
| 43,133,110 |
| 2,263,297 |
| — |
| 45,396,407 |
| — |
| 45,396,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighting Factor |
| (274,619 | ) | 47,230 |
| 1,438,979 |
| 1,211,590 |
|
|
| 1,211,590 |
|
Weighted Average Share Count at March 31, 2006 - Diluted |
| 42,858,491 |
| 2,310,527 |
| 1,438,979 |
| 46,607,997 |
| — |
| 46,607,997 |
|
16
TAXABLE INCOME
Unaudited
($000’s omitted) |
|
|
| Three Months Ended |
| ||||
|
| March 31, |
| March 31, |
| ||
|
|
|
|
|
| ||
Net Income Available For Common Shareholders |
| $ | 23,732 |
| $ | 22,910 |
|
Book/Tax Depreciation Adjustment |
| 4,205 |
| 891 |
| ||
Book/Tax Gain Recognition Adjustment |
| — |
| — |
| ||
Book/Tax JV Net equity adjustment |
| (1,060 | ) | 106 |
| ||
Other Operating Adjustments |
| (144 | ) | (695 | ) | ||
C-corp Earnings |
| (960 | ) | (571 | ) | ||
Taxable Income (Projected) |
| $ | 25,773 |
| $ | 22,641 |
|
|
|
|
|
|
| ||
Dividend per share |
| $ | 0.60 |
| $ | 0.54 |
|
Estimated payout of taxable income |
| 100 | % | 99 | % | ||
|
|
|
|
|
| ||
Shares outstanding - basic |
| 43,133 |
| 41,622 |
|
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,1412 Broadway, 17 Battery Place North and 1466 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
JOINT VENTURE STATEMENTS
Balance Sheet for Unconsolidated Property Joint Ventures Unaudited ($000’s omitted) |
|
|
| March 31, 2006 |
| March 31, 2005 |
| ||||||||
|
| Total Property |
| SLG Property Interest |
| Total Property |
| SLG Property Interest |
| ||||
Land & land interests |
| $ | 671,724 |
| $ | 295,034 |
| $ | 486,338 |
| $ | 206,876 |
|
Buildings & improvements fee interest |
| 2,835,766 |
| 1,240,468 |
| 2,033,873 |
| 869,856 |
| ||||
Buildings & improvements leasehold |
| 20,060 |
| 9,027 |
| — |
| — |
| ||||
|
| 3,527,550 |
| 1,544,529 |
| 2,520,211 |
| 1,076,732 |
| ||||
Less accumulated depreciation |
| (170,920 | ) | (80,141 | ) | (108,639 | ) | (52,495 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Real Estate |
| 3,356,630 |
| 1,464,388 |
| 2,411,572 |
| 1,024,237 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents |
| 56,652 |
| 24,417 |
| 53,898 |
| 24,092 |
| ||||
Restricted cash |
| 24,862 |
| 11,445 |
| 35,978 |
| 16,078 |
| ||||
Tenant receivables, net of $2,014 reserve at 3/31/06 |
| 10,053 |
| 4,922 |
| 6,559 |
| 3,312 |
| ||||
Deferred rents receivable, net of reserve for tenant credit loss of $2,201 at 3/31/06 |
| 61,342 |
| 29,412 |
| 40,525 |
| 19,931 |
| ||||
Deferred costs, net |
| 79,410 |
| 33,422 |
| 33,173 |
| 15,442 |
| ||||
Other assets |
| 44,678 |
| 18,592 |
| 21,557 |
| 9,900 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total Assets |
| $ | 3,633,627 |
| $ | 1,586,598 |
| $ | 2,603,262 |
| $ | 1,112,992 |
|
|
|
|
|
|
|
|
|
|
| ||||
Mortgage loans payable |
| $ | 2,496,212 |
| $ | 1,111,160 |
| $ | 1,336,728 |
| $ | 564,945 |
|
Derivative Instruments-fair value |
| — |
| — |
| 25 |
| 14 |
| ||||
Accrued interest payable |
| 11,198 |
| 4,875 |
| 5,358 |
| 2,225 |
| ||||
Accounts payable and accrued expenses |
| 65,266 |
| 28,610 |
| 59,598 |
| 26,708 |
| ||||
Security deposits |
| 6,509 |
| 3,064 |
| 9,783 |
| 4,492 |
| ||||
Contributed Capital (1) |
| 1,054,442 |
| 438,889 |
| 1,191,770 |
| 514,608 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total Liabilities and Equity |
| $ | 3,633,627 |
| $ | 1,586,598 |
| $ | 2,603,262 |
| $ | 1,112,992 |
|
As of March 31, 2006 the Company has ten unconsolidated joint venture interests including a 55% interest in 1250 Broadway, a 50% interest in 100 Park Avenue, a 16.67% interest in 1 Park Avenue, a 68.5% economic interest in 1515 Broadway increased from 55% in December 2005, a 45% interest in 1221 Avenue of the Americas, a 50% economic interest in 485 Lexington Avenue increased from 30% in January 2006, a 55% interest in the South Building of 1 Madison Avenue, a 30% interest in the Clock Tower of 1 Madison Avenue, a 10% interest in 55 Corporate Drive and a 45% interest in 379 West Broadway. These interests are accounted for on the equity method of accounting and, therefore, are not consolidated into the company’s financial statements.
As we have been designated as the primary beneficiary under FIN 46(R), we have consolidated the accounts of the following four joint ventures including a 50% interest in 1551/1555 Broadway and 21 West 34th Street, a 50% interest in 141 Fifth Avenue, a 45% interest in 1604 Broadway and a 50% interest in 25-29 West 34th Street.
(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 venture reflects our actual contributed capital base.
18
JOINT VENTURE STATEMENTS
Statements of Operations for Unconsolidated Property Joint Ventures Unaudited ($000’s omitted) |
|
|
| Three Months Ended March 31, 2006 |
| Three Months Ended |
| Three Months Ended March 31, 2005 |
| |||||||||
|
| Total Property |
| SLG |
| SLG |
| Total Property |
| SLG |
| |||||
Revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
Rental Revenue, net |
| $ | 88,456 |
| $ | 42,590 |
| $ | 40,929 |
| $ | 75,632 |
| $ | 33,911 |
|
Escalation and reimbursement revenues |
| 18,992 |
| 9,052 |
| 8,374 |
| 13,952 |
| 6,526 |
| |||||
Investment and other income |
| 1,861 |
| 978 |
| 679 |
| 293 |
| 161 |
| |||||
Total Revenues, net |
| $ | 109,309 |
| $ | 52,620 |
| $ | 49,982 |
| $ | 89,877 |
| $ | 40,598 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Expenses |
|
|
|
|
|
|
|
|
|
|
| |||||
Operating expenses |
| $ | 24,724 |
| $ | 11,977 |
| $ | 11,048 |
| $ | 20,884 |
| $ | 9,746 |
|
Ground rent |
| 225 |
| 101 |
| 26 |
| — |
| — |
| |||||
Real estate taxes |
| 17,417 |
| 8,412 |
| 7,313 |
| 15,914 |
| 7,325 |
| |||||
Total Operating Expenses |
| $ | 42,366 |
| $ | 20,490 |
| $ | 18,387 |
| $ | 36,798 |
| $ | 17,071 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
GAAP NOI |
| $ | 66,943 |
| $ | 32,130 |
| $ | 31,595 |
| $ | 53,079 |
| $ | 23,527 |
|
Cash NOI |
| $ | 59,949 |
| $ | 29,394 |
| $ | 28,947 |
| $ | 46,471 |
| $ | 20,543 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest |
| 30,461 |
| 15,578 |
| 14,542 |
| 15,100 |
| 6,056 |
| |||||
Amortization of deferred financing costs |
| 1,433 |
| 771 |
| 737 |
| 1,012 |
| 473 |
| |||||
Depreciation and amortization |
| 17,653 |
| 8,452 |
| 8,303 |
| 13,859 |
| 6,081 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net Income |
| $ | 17,396 |
| $ | 7,329 |
| $ | 8,013 |
| $ | 23,108 |
| $ | 10,917 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Plus: Real estate depreciation |
| 17,653 |
| 8,452 |
| 8,300 |
| 13,859 |
| 6,081 |
| |||||
Funds From Operations |
| $ | 35,049 |
| $ | 15,781 |
| $ | 16,313 |
| $ | 36,967 |
| $ | 16,998 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
FAD Adjustments: |
|
|
|
|
|
|
|
|
|
|
| |||||
Plus: Non real estate depreciation and amortization |
| $ | 1,433 |
| $ | 771 |
| $ | 737 |
| $ | 1,012 |
| $ | 473 |
|
Less: Straight-line rental income and other non-cash adjustments |
| (6,992 | ) | (2,733 | ) | (2,464 | ) | (6,507 | ) | (2,983 | ) | |||||
Less: Second cycle tenant improvement |
| (827 | ) | (402 | ) | (2,262 | ) | (1,392 | ) | (666 | ) | |||||
Less: Second cycle leasing commissions |
| (197 | ) | (59 | ) | (1,331 | ) | (3,370 | ) | (1,816 | ) | |||||
Less: Recurring CAPEX |
| (50 | ) | (17 | ) | (338 | ) | (36 | ) | (20 | ) | |||||
FAD Adjustment |
| $ | (6,633 | ) | $ | (2,440 | ) | $ | (5,658 | ) | $ | (10,293 | ) | $ | (5,012 | ) |
19
Gramercy Joint Venture Statements
Unaudited
($000’s omitted)
Balance Sheets
|
| March 31, |
| December 31, |
| ||
Assets |
|
|
|
|
| ||
Cash |
| $ | 46,001 |
| $ | 70,576 |
|
Loans and other lending investments, net |
| 1,543,643 |
| 1,205,745 |
| ||
Investment in joint ventures |
| 57,373 |
| 58,040 |
| ||
Operating real estate, net |
| 53,059 |
| 51,173 |
| ||
Other assets |
| 103,568 |
| 84,276 |
| ||
Total Assets |
| $ | 1,803,644 |
| $ | 1,469,810 |
|
|
|
|
|
|
| ||
Liabilities and Stockholders’ Equity |
|
|
|
|
| ||
Repurchase agreement |
| $ | 377,193 |
| $ | 117,366 |
|
Collateralized debt obligation |
| 810,500 |
| 810,500 |
| ||
Mortgage note payable |
| 41,000 |
| 41,000 |
| ||
Other liabilities |
| 43,560 |
| 28,540 |
| ||
Junior subordinated deferrable interest debentures |
| 150,000 |
| 100,000 |
| ||
Total Liabilities |
| 1,422,253 |
| 1,097,406 |
| ||
|
|
|
|
|
| ||
Minority interest in operating real estate |
| 5,000 |
| — |
| ||
|
|
|
|
|
| ||
Stockholders’ Equity |
|
|
|
|
| ||
Total stockholders’ equity |
| 376,391 |
| 372,404 |
| ||
|
|
|
|
|
| ||
Total Liabilities and Stockholders’ Equity |
| $ | 1,803,644 |
| $ | 1,469,810 |
|
|
|
|
|
|
| ||
Total Outstanding Shares |
| 22,818 |
| 22,803 |
| ||
|
|
|
|
|
| ||
Total SLG Shares |
| 5,668 |
| 5,668 |
| ||
|
|
|
|
|
| ||
SLG Investment in Gramercy at Cost |
| $ | 93,619 |
| $ | 93,619 |
|
|
|
|
|
|
| ||
Income Statements |
| ||||||
|
|
|
|
|
| ||
|
| Three Months |
| Three Months |
| ||
Revenues |
|
|
|
|
| ||
Investment Income |
| $ | 31,879 |
| $ | 10,250 |
|
Rental Revenue - net |
| 914 |
| — |
| ||
Other income |
| 4,197 |
| 440 |
| ||
Total revenues |
| 36,990 |
| 10,690 |
| ||
|
|
|
|
|
| ||
Expenses |
|
|
|
|
| ||
Interest |
| 17,721 |
| 2,801 |
| ||
Management fees |
| 3,523 |
| 1,668 |
| ||
Incentive fees |
| 1,193 |
| — |
| ||
Depreciation and amortization |
| 455 |
| 22 |
| ||
Marketing, general and administrative |
| 2,770 |
| 1,633 |
| ||
Provision for loan loss |
| — |
| — |
| ||
Total expenses |
| 25,662 |
| 6,124 |
| ||
|
|
|
|
|
| ||
Income from continuing operations before equity in net loss of unconsolidated joint ventures and taxes |
| 11,328 |
| 4,566 |
| ||
Equity in net loss of unconsolidated joint ventures |
| (727 | ) | — |
| ||
Income from continuing operations before taxes |
| 10,601 |
| 4,566 |
| ||
Provision for taxes |
| (47 | ) | — |
| ||
Net income available to common shareholders |
| 10,554 |
| 4,566 |
| ||
Plus: Real estate depreciation |
| 2,117 |
| — |
| ||
FFO |
| $ | 12,671 |
| $ | 4,566 |
|
|
|
|
|
|
| ||
SLG share of net income |
| $ | 2,639 |
| $ | 1,143 |
|
|
|
|
|
|
| ||
SLG share of FFO |
| $ | 3,168 |
| $ | 1,143 |
|
|
|
|
|
|
|
|
|
|
| Three Months |
| Three Months |
| ||
GKK Manager |
|
|
|
|
| ||
Base management income |
| $ | 2,237 |
| $ | 1,213 |
|
Other fee income |
| 1,692 |
| 750 |
| ||
Marketing, general and administrative expenses |
| (1,947 | ) | (1,417 | ) | ||
Net Income before minority interest |
| 1,982 |
| 546 |
| ||
Less: minority interest |
| (669 | ) | (135 | ) | ||
SLG share of GKK Manager net income |
| 1,313 |
| 411 |
| ||
Servicing and administrative reimbursements |
| 782 |
| 464 |
| ||
Net management income and reimbursements from Gramercy |
| $ | 2,095 |
| $ | 875 |
|
20
SELECTED FINANCIAL DATA Capitalization Analysis Unaudited ($000’s omitted) |
|
|
|
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||||
Market Capitalization |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Common Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Common Shares Outstanding |
| 43,133 |
| 42,456 |
| 41,942 |
| 41,830 |
| 41,622 |
| ||||||||
| OP Units Outstanding |
| 2,263 |
| 2,427 |
| 2,502 |
| 2,512 |
| 2,531 |
| ||||||||
| Total Common Equity (Shares and Units) |
| 45,396 |
| 44,883 |
| 44,444 |
| 44,342 |
| 44,153 |
| ||||||||
| Share Price (End of Period) |
| $ | 101.50 |
| $ | 76.39 |
| $ | 68.18 |
| $ | 64.50 |
| $ | 56.22 |
| |||
| Equity Market Value |
| $ | 4,607,694 |
| $ | 3,428,612 |
| $ | 3,030,192 |
| $ | 2,860,059 |
| $ | 2,482,282 |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Preferred Equity at Liquidation Value: |
| 257,500 |
| 257,500 |
| 257,500 |
| 257,500 |
| 257,500 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Real Estate Debt |
|
|
|
|
|
|
|
|
|
|
| |||||||||
| Property Level Mortgage Debt |
| 912,262 |
| 885,252 |
| 866,640 |
| 770,023 |
| 600,315 |
| ||||||||
| Outstanding Balance on - Term Loans |
| 525,000 |
| 525,000 |
| 525,000 |
| 525,000 |
| 425,000 |
| ||||||||
| Outstanding Balance on – Secured Credit Line |
| — |
| — |
| — |
| 67,000 |
| 125,000 |
| ||||||||
| Outstanding Balance on – Unsecured Credit Line |
| 156,645 |
| 32,000 |
| 135,000 |
| 31,730 |
| 165,000 |
| ||||||||
| Junior Subordinated Deferrable Interest Debentures |
| 100,000 |
| 100,000 |
| 100,000 |
| 100,000 |
| — |
| ||||||||
| Total Consolidated Debt |
| 1,693,907 |
| 1,542,252 |
| 1,626,640 |
| 1,493,753 |
| 1,315,315 |
| ||||||||
| Company’s Portion of Joint Venture Debt |
| 1,111,160 |
| 1,040,265 |
| 911,959 |
| 928,334 |
| 564,945 |
| ||||||||
| Total Combined Debt |
| 2,805,067 |
| 2,582,517 |
| 2,538,599 |
| 2,422,087 |
| 1,880,260 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| Total Market Cap (Debt & Equity) |
| $ | 7,670,261 |
| $ | 6,268,629 |
| $ | 5,826,291 |
| $ | 5,539,646 |
| $ | 4,620,042 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Availability under Lines of Credit |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Senior Unsecured Line of Credit |
|
|
| 329,275 | (A) | 453,920 |
| 359,612 |
| 264,270 |
| 131,000 |
| |||||||
Term Loans |
|
|
| — |
| — |
| — |
| — |
| — |
| |||||||
Secured Line of Credit |
|
|
| — |
| — |
|
|
| 58,000 |
| — |
| |||||||
| Total Availability |
| $ | 329,275 |
| $ | 453,920 |
| $ | 359,612 |
| $ | 322,270 |
| $ | 131,000 |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
(A) As reduced by $14,080 letter of credit |
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Combined Capitalized Interest |
|
|
| $ | 4,291 |
| $ | 2,388 |
| $ | 2,161 |
| $ | 1,016 |
| $ | — |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Ratio Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Consolidated Basis |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Debt to Market Cap Ratio |
| 25.83 | % | 29.50 | % | 33.10 | % | 32.39 | % | 32.44 | % | |||||||
| Debt to Gross Real Estate Book Ratio (1) |
| 72.65 | % | 69.76 | % | 74.92 | % | 70.02 | % | 64.94 | % | |||||||
| Secured Real Estate Debt to Secured Assets Gross Book (1) |
| 72.62 | % | 75.60 | % | 75.41 | % | 75.39 | % | 66.77 | % | |||||||
| Unsecured Debt to Unencumbered Assets-Gross Book Value (1) |
| 54.55 | % | 44.28 | % | 55.21 | % | 45.26 | % | 52.09 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Joint Ventures Allocated |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Combined Debt to Market Cap Ratio |
| 36.57 | % | 41.20 | % | 43.57 | % | 43.72 | % | 40.70 | % | |||||||
| Debt to Gross Real Estate Book Ratio (1) |
| 72.37 | % | 69.82 | % | 69.46 | % | 66.69 | % | 60.33 | % | |||||||
| Secured Debt to Secured Assets Gross Book (1),(2) |
| 72.25 | % | 72.17 | % | 67.56 | % | 67.52 | % | 58.98 | % | |||||||
(1) Excludes property level capital obligations.
(2) Secured debt ratio includes only property level secured debt.
21
SELECTED FINANCIAL DATA Property NOI and Coverage Ratios Unaudited ($000’s omitted) |
|
|
| Three Months Ended |
| Three Months Ended |
| Three Months Ended |
| ||||||||
|
| March 31, |
| March 31, |
| December 31, |
| September 30, |
| ||||||
Property NOI |
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
| ||||||
Property Operating NOI |
| $ | 46,801 |
| $ | 39,360 |
| $ | 46,533 |
| $ | 43,415 |
| ||
NOI from Discontinued Operations |
| — |
| 684 |
| — |
| — |
| ||||||
Total Property Operating NOI - Consolidated |
| 46,801 |
| 40,044 |
| 46,533 |
| 43,415 |
| ||||||
SLG share of Property NOI from JVs |
| 32,130 |
| 23,527 |
| 31,595 |
| 32,770 |
| ||||||
GAAP NOI |
| $ | 78,931 |
| $ | 63,571 |
| $ | 78,128 |
| $ | 76,185 |
| ||
|
|
|
|
|
|
|
|
|
| ||||||
Less: | Free Rent (Net of Amortization) |
| 2,221 |
| 3,713 |
| 1,526 |
| 2,024 |
| |||||
| Net FAS 141 Adjustment |
| 789 |
| 693 |
| 845 |
| 587 |
| |||||
| Straightline Revenue Adjustment |
| 6,358 |
| 4,716 |
| 2,902 |
| 5,753 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
Plus: | Allowance for S/L tenant credit loss |
| 933 |
| 1,298 |
| 291 |
| 1,253 |
| |||||
| Ground Lease Straight-line Adjustment |
| 157 |
| 160 |
| 136 |
| 136 |
| |||||
Cash NOI |
| $ | 70,653 |
| $ | 55,907 |
| $ | 73,282 |
| $ | 69,210 |
| ||
|
|
|
|
|
|
|
|
|
| ||||||
Components of Debt Service and Fixed Charges |
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
| ||||||
Interest Expense |
| 19,039 |
| 17,368 |
| 20,284 |
| 20,760 |
| ||||||
Fixed Amortization Principal Payments |
| 1,025 |
| 895 |
| 954 |
| 883 |
| ||||||
Total Consolidated Debt Service |
| 20,064 |
| 18,263 |
| 21,238 |
| 21,643 |
| ||||||
|
|
|
|
|
|
|
|
|
| ||||||
Payments under Ground Lease Arrangements |
| 4,851 |
| 4,356 |
| 5,113 |
| 4,786 |
| ||||||
Dividend on perpetual preferred shares |
| 4,969 |
| 4,969 |
| 4,969 |
| 4,969 |
| ||||||
Total Consolidated Fixed Charges |
| 29,884 |
| 27,588 |
| 31,320 |
| 31,398 |
| ||||||
|
|
|
|
|
|
|
|
|
| ||||||
Adjusted EBITDA |
| 78,102 |
| 67,658 |
| 74,980 |
| 80,141 |
| ||||||
Interest Coverage Ratio |
| 3.72 |
| 3.84 |
| 3.70 |
| 3.86 |
| ||||||
Debt Service Coverage Ratio |
| 3.55 |
| 3.65 |
| 3.53 |
| 3.70 |
| ||||||
Fixed Charge Coverage Ratio |
| 2.45 |
| 2.43 |
| 2.39 |
| 2.55 |
| ||||||
22
SELECTED FINANCIAL DATA 2006 Same Store - Consolidated Unaudited ($000’s omitted) |
|
|
| Three Months Ended |
| Three Months Ended |
| Three Months Ended |
| |||||
|
| March 31, |
| March 31, |
| % |
| December 31, |
| September 30, |
| |
Revenues |
|
|
|
|
|
|
|
|
|
|
| |
| Rental Revenue, net |
| 77,872 |
| 69,741 |
| 12 | % | 71,091 |
| 70,616 |
|
| Escalation & Reimbursement Revenues |
| 14,252 |
| 11,314 |
| 26 | % | 15,522 |
| 14,926 |
|
| Investment Income |
| 227 |
| 146 |
| 55 | % | 229 |
| 200 |
|
| Other Income |
| 2,326 |
| 1,341 |
| 73 | % | 1,078 |
| 725 |
|
| Total Revenues |
| 94,677 |
| 82,542 |
| 15 | % | 87,920 |
| 86,467 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
| |
| Operating Expense |
| 25,828 |
| 21,278 |
| 21 | % | 23,224 |
| 24,002 |
|
| Ground Rent |
| 4,912 |
| 4,516 |
| 9 | % | 4,912 |
| 4,922 |
|
| Real Estate Taxes |
| 17,742 |
| 14,224 |
| 25 | % | 14,152 |
| 14,357 |
|
|
|
| 48,482 |
| 40,018 |
| 21 | % | 42,288 |
| 43,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
| 46,195 |
| 42,524 |
| 9 | % | 45,632 |
| 43,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense & Amortization of Financing costs |
| 10,954 |
| 10,277 |
| 7 | % | 11,152 |
| 11,169 |
|
| Depreciation & Amortization |
| 14,312 |
| 13,088 |
| 9 | % | 14,266 |
| 13,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income Before Minority Interest |
| 20,929 |
| 19,159 |
| 9 | % | 20,214 |
| 18,348 |
|
Plus: | Real Estate Depreciation & Amortization |
| 14,302 |
| 13,077 |
| 9 | % | 14,257 |
| 13,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO |
| 35,231 |
| 32,236 |
| 9 | % | 34,471 |
| 32,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: | Non – Building Revenue |
| 395 |
| 372 |
| 6 | % | 421 |
| 381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: | Interest Expense & Amortization of Financing costs |
| 10,954 |
| 10,277 |
| 7 | % | 11,152 |
| 11,169 |
|
| Non Real Estate Depreciation |
| 10 |
| 11 |
| -9 | % | 9 |
| 10 |
|
| GAAP NOI |
| 45,800 |
| 42,152 |
| 9 | % | 45,211 |
| 42,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Adjustments |
|
|
|
|
|
|
|
|
|
|
| |
Less: | Free Rent (Net of Amortization) |
| 1,998 |
| 2,466 |
| -19 | % | (736 | ) | 1,650 |
|
| Straightline Revenue Adjustment |
| 3,273 |
| 2,815 |
| 16 | % | 2,141 |
| 2,584 |
|
| Rental Income - FAS 141 |
| 285 |
| 285 |
| 0 | % | 293 |
| 293 |
|
Plus: | Allowance for S/L tenant credit loss |
| 680 |
| 950 |
| -28 | % | 110 |
| 894 |
|
| Ground Lease Straight-line Adjustment |
| 87 |
| 160 |
| -46 | % | 87 |
| 136 |
|
| Cash NOI |
| 41,011 |
| 37,696 |
| 9 | % | 43,710 |
| 39,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margins |
|
|
|
|
|
|
|
|
|
|
| |
| GAAP NOI to Real Estate Revenue, net |
| 48.23 | % | 50.71 | % |
|
| 51.61 | % | 49.21 | % |
| Cash NOI to Real Estate Revenue, net |
| 43.19 | % | 45.35 | % |
|
| 49.89 | % | 45.19 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP NOI before Ground Rent/Real Estate Revenue, net |
| 53.40 | % | 56.15 | % |
|
| 57.21 | % | 54.87 | % |
| Cash NOI before Ground Rent/Real Estate Revenue, net |
| 48.27 | % | 50.59 | % |
|
| 55.40 | % | 50.69 | % |
23
SELECTED FINANCIAL DATA Unaudited ($000’s omitted) |
|
|
| Three Months Ended |
| Three Months Ended |
| Three Months Ended |
| |||||
|
| March 31, |
| March 31, |
| % |
| December 31, |
| September 30, |
| |
Revenues |
|
|
|
|
|
|
|
|
|
|
| |
| Rental Revenue, net |
| 33,438 |
| 32,881 |
| 2 | % | 33,118 |
| 32,999 |
|
| Escalation & Reimbursement Revenues |
| 8,654 |
| 6,760 |
| 28 | % | 8,535 |
| 7,523 |
|
| Investment Income |
| 335 |
| 63 |
| 433 | % | 110 |
| 81 |
|
| Other Income |
| 433 |
| 47 |
| 820 | % | 450 |
| 2,371 |
|
| Total Revenues |
| 42,860 |
| 39,751 |
| 8 | % | 42,212 |
| 42,974 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
| |
| Operating Expense |
| 11,240 |
| 9,653 |
| 16 | % | 11,155 |
| 10,861 |
|
| Ground Rent |
| — |
| — |
|
|
| — |
| — |
|
| Real Estate Taxes |
| 8,128 |
| 7,474 |
| 9 | % | 7,582 |
| 7,481 |
|
|
|
| 19,367 |
| 17,127 |
| 13 | % | 18,737 |
| 18,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
| 23,493 |
| 22,624 |
| 4 | % | 23,475 |
| 24,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense & Amortization of Financing costs |
| 10,040 |
| 5,777 |
| 74 | % | 8,856 |
| 6,694 |
|
| Depreciation & Amortization |
| 5,990 |
| 5,621 |
| 7 | % | 5,918 |
| 6,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income Before Minority Interest |
| 7,463 |
| 11,226 |
| -34 | % | 8,701 |
| 11,660 |
|
Plus: | Real Estate Depreciation & Amortization |
| 5,990 |
| 5,621 |
| 7 | % | 5,918 |
| 5,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO |
| 13,453 |
| 16,847 |
| -20 | % | 14,619 |
| 17,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: | Non – Building Revenue |
| 340 |
| 66 |
| 413 | % | 117 |
| 84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: | Interest Expense & Amortization of Financing costs |
| 10,040 |
| 5,777 |
| 74 | % | 8,856 |
| 6,694 |
|
| Non Real Estate Depreciation |
| — |
| — |
|
|
| — |
| 402 |
|
| GAAP NOI |
| 23,153 |
| 22,558 |
| 3 | % | 23,358 |
| 24,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Adjustments |
|
|
|
|
|
|
|
|
|
|
| |
Less: | Free Rent (Net of Amortization) |
| (151 | ) | 1,318 |
| -111 | % | (414 | ) | 170 |
|
| Straightline Revenue Adjustment |
| 1,204 |
| 1,772 |
| -32 | % | 1,164 |
| 1,316 |
|
| FAS 141 |
| 245 |
| 245 |
| 0 | % | 245 |
| 245 |
|
Plus: | Allowance for S/L tenant credit loss |
| 123 |
| 319 |
| -61 | % | 51 |
| 261 |
|
| Ground Lease Straight-line Adjustment |
| — |
| — |
| 0 | % | — |
| — |
|
| Cash NOI |
| 21,979 |
| 19,542 |
| 12 | % | 22,416 |
| 23,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margins |
|
|
|
|
|
|
|
|
|
|
| |
| GAAP NOI to Real Estate Revenue, net |
| 54.29 | % | 56.39 | % |
|
| 55.42 | % | 57.17 | % |
| Cash NOI to Real Estate Revenue, net |
| 51.54 | % | 48.85 | % |
|
| 53.19 | % | 53.56 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP NOI before Ground Rent/Real Estate Revenue, net |
| 54.29 | % | 56.39 | % |
|
| 55.42 | % | 57.17 | % |
| Cash NOI before Ground Rent/Real Estate Revenue, net |
| 51.54 | % | 48.85 | % |
|
| 53.19 | % | 53.56 | % |
24
DEBT SUMMARY SCHEDULE
Unaudited ($000’s omitted) |
|
Fixed rate debt |
|
|
| Principal O/S |
| Coupon |
| 2006 |
| Maturity |
| Due at |
| As-Of |
| Earliest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured fixed Rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125 Broad Street |
|
|
| 74,572 |
| 8.29 | % | 803 |
| Oct-07 |
| 73,341 |
| — |
| Open |
|
673 First Avenue |
|
|
| 34,306 |
| 5.67 | % | 657 |
| Feb-13 |
| 28,984 |
| — |
| Feb-06 |
|
70 W. 36th Street |
|
|
| 11,359 |
| 7.87 | % | 214 |
| May-09 |
| 10,629 |
| — |
| Open |
|
711 Third Avenue |
|
|
| 120,000 |
| 4.99 | % | — |
| Jun-15 |
| 120,000 |
| — |
| Mar-15 |
|
220 E 42nd Street |
|
|
| 210,000 |
| 5.24 | % | — |
| Nov-13 |
| 182,394 |
| — |
| Dec-06 |
|
420 Lexington Avenue |
|
|
| 116,879 |
| 8.44 | % | 2,284 |
| Nov-10 |
| 104,691 |
| — |
| Open |
|
625 Madision Avenue |
|
|
| 102,000 |
| 6.27 | % | 166 |
| Nov-15 |
| 78,595 |
| — |
| Open |
|
|
|
|
| 669,116 |
| 6.32 | % | 4,124 |
|
|
| 598,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured fixed Rate Debt-Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Secured Term Loan (Libor + 125 bps) (1) |
|
|
| 160,000 |
| 4.12 | % | — |
| May-10 |
| 160,000 |
| — |
| — |
|
|
|
|
| 160,000 |
| 4.12 | % | — |
|
|
| 160,000 |
|
|
|
|
|
Unsecured fixed rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Unsecured Term Loan (Libor swap + 125bps) (2) |
|
|
| 325,000 |
| 4.64 | % | — |
| Aug-09 |
| 325,000 |
| — |
| Aug-07 |
|
Junior Subordinated Deferrable Interest Debentures |
|
|
| 100,000 |
| 5.61 | % | — |
| Jun-15 |
| 100,000 |
| — |
| — |
|
|
|
|
| 425,000 |
| 4.87 | % | — |
|
|
| 425,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Rate Debt/Wtd Avg |
| 1,254,116 |
| 5.55 | % | 4,124 |
|
|
| 1,183,634 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured floating rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Secured Term Loan (Libor + 125 bps) |
|
|
| 40,000 |
| 5.84 | % | — |
| May-10 |
| 40,000 |
| — |
| — |
|
1551/1555 Broadway & 21 W. 34th Street (Libor + 200 bps) (3) |
|
|
| 92,992 |
| 6.53 | % | — |
| Aug-08 |
| 92,992 |
| — |
| Open |
|
141 Fifth Avenue (Libor + 225 bps) (3) |
|
|
| 10,154 |
| 6.85 | % | — |
| Sep-07 |
| 10,154 |
| Sep-10 |
| — |
|
521 Fifth Avenue (Libor + 162.5 bps) |
|
|
| 140,000 |
| 6.55 | % | — |
| Oct-08 |
| 140,000 |
| — |
| Open |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 283,146 |
| 6.45 | % | — |
|
|
| 283,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured floating rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Unsecured Line of Credit (Libor + 95 bps) |
|
|
| 156,645 |
| 5.69 | % | — |
| Aug-08 |
| 156,645 |
| Aug-09 |
| Open |
|
|
|
|
| 156,645 |
| 5.69 | % | — |
|
|
| 156,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Floating Rate Debt/Wtd Avg |
| 439,791 |
| 6.18 | % | — |
|
|
| 439,791 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt/Wtd Avg |
| 1,693,907 |
| 5.71 | % | 4,124 |
|
|
| 1,623,425 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Balance & Interest Rate |
|
|
| 1,627,466 |
| 5.68 | % |
|
|
|
|
|
|
|
|
|
|
SUMMARY OF JOINT VENTURE DEBT
|
| Principal O/S |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Joint Venture Debt |
| Gross Principal |
| SLG Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
1250 Broadway (Libor + 120bps) |
| 115,000 |
| 63,250 |
| 5.73 | % | — |
| Aug-06 |
| 63,250 |
| Aug-09 |
| Open |
|
1221 Avenue of Americas (Libor + 75bps) (4) |
| 170,000 |
| 76,500 |
| 5.56 | % | — |
| Dec-10 |
| 76,500 |
| Dec-08 |
| Open |
|
1515 Broadway (Libor + 90 bps) |
| 625,000 |
| 343,750 |
| 5.46 | % | — |
| Nov-07 |
| 343,750 |
| Jul-09 |
| Open |
|
1 Park Avenue |
| 238,500 |
| 39,830 |
| 5.80 | % | — |
| May-14 |
| 39,830 |
| — |
| Open |
|
100 Park Avenue (3) |
| 135,998 |
| 67,863 |
| 6.52 | % | — |
| Nov-15 |
| 63,626 |
| — |
| Open |
|
485 Lexington Ave (Libor + 135bps) |
| 305,112 |
| 91,534 |
| 5.96 | % | — |
| Jan-09 |
| 91,534 |
| Jul-09 |
| Open |
|
1 Madison Avenue - South Building |
| 686,905 |
| 377,798 |
| 5.91 | % | 2,536 |
| Dec-20 |
| 220,755 |
| — |
| Jun-20 |
|
1 Madison Avenue - Clock Tower (Libor + 160bps) |
| 120,859 |
| 36,258 |
| 6.26 | % | — |
| Nov-07 |
| 36,258 |
| Nov-08 |
| Nov-06 |
|
55 Corporate Drive (Libor + 215bps) |
| 86,000 |
| 8,600 |
| 6.54 | % | — |
| Jun-07 |
| 8,600 |
| Jun-10 |
| Dec-06 |
|
379 West Broadway (Libor + 225bps) (3) |
| 12,838 |
| 5,777 |
| 6.85 | % | — |
| Dec-07 |
| 5,777 |
| Dec-10 |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Joint Venture Debt/Wtd Avg |
| 2,496,212 |
| 1,111,160 |
| 5.80 | % | 2,536 |
|
|
| 949,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Balance & Interest Rate with SLG JV debt |
|
|
| 2,692,734 |
| 5.72 | % |
|
|
|
|
|
|
|
|
|
|
(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) WF term loan consists of three tranches which mature in June 2008 and a fourth tranch which matures in August 2009. The blended rates on the step -up swaps for this loan are as follows: 3.57% on $100mm, 3.51% on $35mm, 3.95% on $65mm, and 4.21% on $125mm.
(3) Committed amount for 1551/1555 Broadway and 21 West 34th Street is $103.9mm, for 141 Fifth Avenue is $12.58mm, for 1 Madison Avenue is $205.1mm , for 100 Park is $175mm and for 379 West Broadway is $13.25mm.
(4) A swap at a LIROR of 4.76% was placed on $65mm of the loan through 2010.
25
SUMMARY OF GROUND LEASE ARRANGEMENTS
Consolidated Statement (REIT) ($000’s omitted) |
|
Property |
| 2006 Scheduled |
| 2007 Scheduled |
| 2008 Scheduled |
| 2009 Scheduled |
| Deferred Land |
| Year of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
673 First Avenue |
| 3,010 |
| 3,010 |
| 3,010 |
| 3,010 |
| 15,413 |
| 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 |
| 939 |
| 2032 |
|
461 Fifth Avenue (2) |
| 2,100 |
| 2,100 |
| 2,100 |
| 2,100 |
| — |
| 2027 | (6) |
625 Madison Avenue (2) |
| 4,613 |
| 4,613 |
| 4,613 |
| 4,613 |
| — |
| 2022 | (7) |
1604 Broadway (2) |
| 2,350 |
| 2,350 |
| 2,350 |
| 2,350 |
| 117 |
| 2021 | (8) |
Total |
| 21,045 |
| 21,045 |
| 21,045 |
| 21,045 |
| 16,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized Lease |
|
|
|
|
|
|
|
|
|
|
|
|
|
673 First Avenue |
| 1,416 |
| 1,416 |
| 1,416 |
| 1,416 |
| 16,292 |
| 2037 |
|
(1) Per the balance sheet at March 31, 2006
(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 purchase the ground lease for a fixed price on a specific date.
(7) Subject to renewal at the Company’s option through 2054.
(8) Subject to renewal at the Company’s option through 2036.The Company has a 45% interest in this property.
26
STRUCTURED FINANCE
($000’s omitted) |
|
|
| Assets |
| Wtd Average |
| Wtd Average |
| Current |
| Libor |
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2004 |
| 350,027 |
| 332,936 |
| 10.00 | % | 10.25 | % | 2.40 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 222 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| 25,000 |
|
|
|
|
|
|
|
|
|
Redemptions /Amortization |
| (150 | ) |
|
|
|
|
|
|
|
|
3/31/2005 |
| 375,099 |
| 363,189 |
| 10.43 | % | 10.69 | % | 2.87 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 58,250 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| 6,125 |
|
|
|
|
|
|
|
|
|
Redemptions /Amortization |
| (42,612 | ) |
|
|
|
|
|
|
|
|
6/30/2005 |
| 396,862 |
| 413,571 |
| 10.27 | % | 10.26 | % | 3.34 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| — |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| 58,000 |
|
|
|
|
|
|
|
|
|
Redemptions /Amortization |
| (54,813 | ) |
|
|
|
|
|
|
|
|
9/30/2005 |
| 400,049 |
| 398,433 |
| 10.26 | % | 10.34 | % | 3.86 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 152 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| — |
|
|
|
|
|
|
|
|
|
Redemptions /Amortization |
| (125 | ) |
|
|
|
|
|
|
|
|
12/31/2005 |
| 400,076 |
| 399,889 |
| 10.43 | % | 10.44 | % | 4.39 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 61,127 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| 5,000 |
|
|
|
|
|
|
|
|
|
Redemptions /Amortization |
| (30 | ) |
|
|
|
|
|
|
|
|
3/31/2006 |
| 466,173 |
| 453,085 |
| 10.27 | % | 10.57 | % | 4.83 | % |
(1) Accretion includes original issue discounts and compounding investment income.
27
Type of Investment |
| Quarter End Balance(1) |
| Senior Financing |
| Exposure Psf |
| Wtd Average |
| Current |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
Junior Mortgage Participation |
| $ | 139,790 |
| $ | 991,500 |
| $ | 247 |
| 10.43 | % | 10.82 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Mezzanine Debt |
| $ | 157,258 |
| $ | 454,000 |
| $ | 289 |
| 9.20 | % | 9.45 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Preferred Equity |
| $ | 169,125 |
| $ | 3,175,000 |
| $ | 133 |
| 11.21 | % | 11.59 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Balance as of 3/31/06 |
| $ | 466,173 |
| $ | 4,620,500 |
| $ | 194 |
| 10.27 | % | 10.57 | % |
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 maturity is 6.6 years.
28
SELECTED PROPERTY DATA |
|
Properties |
| SubMarket |
| Ownership |
| Usable |
| % of Total |
| Occupancy (%) |
| Annualized |
| Annualized Rent |
| Total |
| |||||||||||
Mar-06 |
| Dec-05 |
| Sep-05 |
| Jun-05 |
| Mar-05 | 100% |
| SLG | |||||||||||||||||
PROPERTIES 100% OWNED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
“Same Store” |
|
|
|
|
|
|
| % |
| % |
| % |
| % |
| % |
| % |
| $ |
| % |
| % |
|
|
| |
1140 Avenue of the Americas |
| Rockefeller Center |
| Leasehold Interest |
| 191,000 |
| 1 |
| 100.0 |
| 97.1 |
| 97.1 |
| 97.1 |
| 96.3 |
| 9,207,636 |
| 2 |
| 2 |
| 25 |
| |
110 East 42nd Street |
| Grand Central North |
| Fee Interest |
| 181,000 |
| 1 |
| 94.5 |
| 96.5 |
| 89.6 |
| 91.3 |
| 88.9 |
| 6,781,980 |
| 2 |
| 1 |
| 27 |
| |
125 Broad Street |
| Downtown |
| Fee Interest |
| 525,000 |
| 3 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 18,377,100 |
| 5 |
| 3 |
| 4 |
| |
1372 Broadway |
| Garment |
| Fee Interest |
| 508,000 |
| 3 |
| 86.4 |
| 84.1 |
| 84.1 |
| 99.2 |
| 99.4 |
| 15,985,536 |
| 4 |
| 3 |
| 24 |
| |
220 East 42nd Street |
| Midtown |
| Fee Interest |
| 1,135,000 |
| 6 |
| 99.5 |
| 99.5 |
| 99.6 |
| 99.0 |
| 97.9 |
| 39,554,928 |
| 10 |
| 7 |
| 40 |
| |
286 Madison Avenue |
| Grand Central South |
| Fee Interest |
| 112,000 |
| 1 |
| 100.0 |
| 99.8 |
| 98.8 |
| 96.9 |
| 93.6 |
| 4,113,504 |
| 1 |
| 1 |
| 39 |
| |
290 Madison Avenue |
| Grand Central South |
| Fee Interest |
| 37,000 |
| 0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 1,440,468 |
| 0 |
| 0 |
| 4 |
| |
292 Madison Avenue |
| Grand Central South |
| Fee Interest |
| 187,000 |
| 1 |
| 99.7 |
| 99.7 |
| 99.7 |
| 99.7 |
| 99.7 |
| 7,951,380 |
| 2 |
| 1 |
| 21 |
| |
317 Madison Avenue |
| Grand Central |
| Fee Interest |
| 450,000 |
| 2 |
| 93.7 |
| 93.7 |
| 86.4 |
| 85.2 |
| 86.9 |
| 17,944,392 |
| 5 |
| 3 |
| 88 |
| |
420 Lexington Ave (Graybar) |
| Grand Central North |
| Operating Sublease |
| 1,188,000 |
| 6 |
| 97.4 |
| 97.1 |
| 97.0 |
| 96.5 |
| 96.4 |
| 53,089,044 |
| 14 |
| 9 |
| 255 |
| |
440 Ninth Avenue |
| Garment |
| Fee Interest |
| 339,000 |
| 2 |
| 99.4 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 10,972,596 |
| 3 |
| 2 |
| 13 |
| |
461 Fifth Avenue |
| Midtown |
| Leasehold Interest |
| 200,000 |
| 1 |
| 89.7 |
| 89.7 |
| 89.7 |
| 89.7 |
| 90.3 |
| 10,778,316 |
| 3 |
| 2 |
| 17 |
| |
470 Park Avenue South |
| Park Avenue South/Flatiron |
| Fee Interest |
| 260,000 |
| 1 |
| 96.9 |
| 93.8 |
| 93.1 |
| 93.8 |
| 91.1 |
| 9,649,188 |
| 3 |
| 2 |
| 28 |
| |
555 West 57th Street |
| Midtown West |
| Fee Interest |
| 941,000 |
| 5 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 27,930,576 |
| 7 |
| 5 |
| 18 |
| |
625 Madison Avenue |
| Plaza District |
| Leasehold Interest |
| 563,000 |
| 3 |
| 91.7 |
| 91.7 |
| 83.3 |
| 77.0 |
| 76.4 |
| 35,913,708 |
| 9 |
| 6 |
| 39 |
| |
673 First Avenue |
| Grand Central South |
| Leasehold Interest |
| 422,000 |
| 2 |
| 77.8 |
| 77.8 |
| 77.8 |
| 80.8 |
| 80.8 |
| 10,775,652 |
| 3 |
| 2 |
| 10 |
| |
70 West 36th Street |
| Garment |
| Fee Interest |
| 151,000 |
| 1 |
| 95.2 |
| 96.1 |
| 96.7 |
| 96.7 |
| 98.2 |
| 4,275,888 |
| 1 |
| 1 |
| 28 |
| |
711 Third Avenue |
| Grand Central North |
| Operating Sublease (1) |
| 524,000 |
| 3 |
| 100.0 |
| 100.0 |
| 99.3 |
| 98.7 |
| 98.1 |
| 23,055,108 |
| 6 |
| 4 |
| 19 |
| |
750 Third Avenue |
| Grand Central North |
| Fee Interest |
| 780,000 |
| 4 |
| 98.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 33,613,008 |
| 9 |
| 6 |
| 18 |
| |
Subtotal / Weighted Average |
| 8,694,000 |
| 47 |
| 96.1 |
| 96.0 |
| 94.9 |
| 95.3 |
| 95.0 |
| $ | 341,410,008 |
| 89 |
| 59 |
| 717 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
19 West 44th Street |
| Midtown |
| Fee Interest |
| 292,000 |
| 2 |
| 98.1 |
| 96.8 |
| 95.8 |
| 92.2 |
| 92.2 |
| 10,847,196 |
| 3 |
| 2 |
| 67 |
| |
28 West 44th Street |
| Midtown |
| Fee Interest |
| 359,000 |
| 2 |
| 95.0 |
| 94.2 |
| 93.1 |
| 84.9 |
| 86.8 |
| 12,220,356 |
| 3 |
| 2 |
| 72 |
| |
521 Fifth Avenue |
| Midtown |
| Leasehold Interest |
| 460,000 |
| 2 |
| 97.4 |
| — |
| — |
| — |
| — |
| 17,584,728 |
| 5 |
| 3 |
| 52 |
| |
Subtotal / Weighted Average |
| 1,111,000 |
| 6 |
| 96.8 |
| 95.4 |
| 94.3 |
| 88.2 |
| 89.2 |
| $ | 40,652,280 |
| 11 |
| 7 |
| 191 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total / Weighted Average Properties 100% Owned |
|
|
| 9,805,000 |
| 53 |
| 96.2 |
| 96.0 |
| 94.9 |
| 94.8 |
| 94.6 |
| $ | 382,062,288 |
| 100 |
| 66 |
| 908 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PROPERTIES < 100% OWNED (Unconsolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
“Same Store” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1 Park Avenue - 16.7% |
| Grand Central |
| Fee Interest |
| 913,000 |
| 5 |
| 97.8 |
| 97.8 |
| 97.8 |
| 97.8 |
| 97.1 |
| 36,187,212 |
|
|
| 1 |
| 18 |
| |
1250 Broadway - 55% |
| Penn Station |
| Fee Interest |
| 670,000 |
| 4 |
| 95.8 |
| 95.8 |
| 95.5 |
| 95.3 |
| 94.8 |
| 22,235,892 |
|
|
| 2 |
| 35 |
| |
1515 Broadway - 55% |
| Times Square |
| Fee Interest |
| 1,750,000 |
| 9 |
| 100.0 |
| 100.0 |
| 100.0 |
| 99.6 |
| 99.6 |
| 81,771,600 |
|
|
| 10 |
| 12 |
| |
100 Park Avenue - 50% |
| Grand Central South |
| Fee Interest |
| 834,000 |
| 4 |
| 89.7 |
| 92.7 |
| 92.7 |
| 91.5 |
| 91.5 |
| 32,602,128 |
|
|
| 3 |
| 37 |
| |
1221 Avenue of the Americas - 45% |
| Rockefeller Center |
| Fee Interest |
| 2,550,000 |
| 14 |
| 96.5 |
| 96.5 |
| 96.2 |
| 97.7 |
| 97.7 |
| 127,658,088 |
|
|
| 10 |
| 24 |
| |
Subtotal / Weighted Average |
| 6,717,000 |
| 36 |
| 96.7 |
| 97.0 |
| 96.9 |
| 96.7 |
| 96.6 |
| $ | 300,454,920 |
|
|
| 26 |
| 126 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
485 Lexington Avenue - 30% |
| Grand Central North |
| Fee Interest |
| 921,000 |
| 5 |
| 71.2 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 32,376,144 |
|
|
| 3 |
| 6 |
| |
1 Madison Avenue - 55% |
| Park Avenue South |
| Fee Interest |
| 1,176,900 |
| 6 |
| 97.5 |
| 97.5 |
| 97.5 |
| 95.5 |
| - |
| 54,807,984 |
|
|
| 5 |
| 2 |
| |
Subtotal / Weighted Average |
| 2,097,900 |
| 11 |
| 86.0 |
| 98.6 |
| 98.6 |
| 97.5 |
| 100.0 |
| $ | 87,184,128 |
|
|
| 8 |
| 8 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total / Weighted Average Properties Less Than 100% Owned |
| 8,814,900 |
| 47 |
| 94.1 |
| 97.4 |
| 97.3 |
| 96.9 |
| 97.0 |
| $ | 387,639,048 |
|
|
| 34 |
| 134 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Grand Total / Weighted Average |
|
|
|
|
| 18,619,900 |
| 100 |
| 95.2 |
| 96.7 |
| 96.0 |
| 95.9 |
| 95.7 |
| $ | 769,701,336 |
|
|
|
|
| 1,042 |
|
Grand Total - SLG share of Annualized Rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 576,387,620 |
|
|
| 100 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Same Store Occupancy% - Combined |
|
|
|
|
| 15,411,000 |
| 83 |
| 96.3 |
| 96.5 |
| 96.0 |
| 96.5 |
| 96.3 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) Including Ownership of 50% in Building Fee. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
RETAIL & DEVELOPMENT PROPERTIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
1 Madison Avenue - Clock Tower - 30% |
| Park Avenue South |
| Fee Interest |
| 220,000 |
| 50 |
| — |
| — |
| — |
| — |
| — |
| N/A |
| N/A |
| N/A |
| N/A |
| |
1551-1555 Broadway - 50% |
| Times Square |
| Fee Interest |
| 23,600 |
| 5 |
| — |
| — |
| — |
| — |
| — |
| N/A |
| N/A |
| N/A |
| N/A |
| |
1604 Broadway - 45% |
| Times Square |
| Leasehold Interest |
| 41,100 |
| 9 |
| 17.2 |
| 17.2 |
| — |
| — |
| — |
| 2,090,340 |
| 26 |
| 12 |
| 2 |
| |
21 West 34th Street - 50% |
| Herald Square/Penn Station |
| Fee Interest |
| 20,100 |
| 5 |
| 25.0 |
| 100.0 |
| — |
| — |
| — |
| 577,572 |
| 7 |
| 4 |
| 1 |
| |
25-27 West 34th Street - 50% |
| Herald Square/Penn Station |
| Fee Interest |
| 21,700 |
| 5 |
| 30.7 |
| — |
| — |
| — |
| — |
| 943,788 |
| 12 |
| 6 |
| 3 |
| |
29 West 34th Street - 50% |
| Herald Square/Penn Station |
| Fee Interest |
| 29,300 |
| 7 |
| 74.4 |
| — |
| — |
| — |
| — |
| 1,042,896 |
| 13 |
| 6 |
| 7 |
| |
379 West Broadway - 45% |
| Cast Iron/Soho |
| Leasehold Interest |
| 62,006 |
| 14 |
| 100.0 |
| 100.0 |
| — |
| — |
| — |
| 2,651,040 |
| 33 |
| 15 |
| 7 |
| |
141 Fifth Avenue - 50% |
| Flat Iron |
| Fee Interest |
| 21,500 |
| 5 |
| 100.0 |
| 100.0 |
| 100.0 |
| — |
| — |
| 749,232 |
| 9 |
| 5 |
| 4 |
| |
Total / Weighted Average Retail/Development Properties |
| 439,306 |
| 100 |
| N/A |
| N/A |
| N/A |
| — |
| — |
| 8,054,868 |
| 100 |
| 47 |
| 24 |
|
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 |
| Credit |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Viacom International, Inc. |
| 1515 Broadway |
| 2008, 2010, 2012, 2013 & 2015 |
| 1,375,776 |
| $ | 68,068,908 |
| $ | 49.48 |
| 8.8 | % | $ | 46,593,168 |
| 8.1 | % | BBB |
|
Credit Suisse Securities (USA), LLC |
| 1 Madison Avenue |
| 2020 |
| 1,123,879 |
| 53,923,716 |
| $ | 47.98 |
| 7.0 | % | 29,658,044 |
| 5.1 | % | A+ |
| ||
Citigroup, N.A. |
| 125 Broad Street, 1 Park Avenue, 750 Third Avenue & 485 Lexington Avenue |
| 2007, 2010 & 2017 |
| 645,896 |
| 27,891,876 |
| $ | 43.18 |
| 3.6 | % | 19,847,813 |
| 3.4 | % | AA+ |
| ||
Morgan Stanley & Co. Inc. |
| 1221 Ave.of the Americas |
| Various |
| 496,249 |
| 31,512,876 |
| $ | 63.50 |
| 4.1 | % | 14,180,794 |
| 2.5 | % | A+ |
| ||
Societe Generale |
| 1221 Ave.of the Americas |
| Various |
| 486,663 |
| 23,697,324 |
| $ | 48.69 |
| 3.1 | % | 10,663,796 |
| 1.9 | % | AA- |
| ||
Omnicom Group |
| 220 East 42nd Street & 420 Lexington Avenue |
| 2008, 2009, 2010 & 2017 |
| 480,802 |
| 16,037,076 |
| $ | 33.35 |
| 2.1 | % | 16,037,076 |
| 2.8 | % | A- |
| ||
The McGraw Hill Companies, Inc. |
| 1221 Ave.of the Americas |
| Various |
| 420,328 |
| 18,443,640 |
| $ | 43.88 |
| 2.4 | % | 8,299,638 |
| 1.4 | % | A+ |
| ||
Advance Magazine Group |
| 750 Third Avenue, 485 Lexington Avenue |
| 2021 |
| 342,720 |
| 12,686,556 |
| $ | 37.02 |
| 1.6 | % | 11,437,950 |
| 2.0 | % |
|
| ||
Visiting Nurse Service of New York |
| 1250 Broadway |
| 2006 & 2018 |
| 290,741 |
| 8,476,824 |
| $ | 29.16 |
| 1.1 | % | 4,662,253 |
| 0.8 | % |
|
| ||
The City University of New York - CUNY |
| 555 West 57th Street & 28 West 44th Street |
| 2006, 2010, 2011, 2015 & 2016 |
| 233,580 |
| 7,678,716 |
| $ | 32.87 |
| 1.0 | % | 7,678,716 |
| 1.3 | % |
|
| ||
New York Presbyterian Hospital |
| 555 West 57th Street & 673 First Avenue |
| 2006, 2009, & 2021 |
| 231,888 |
| 7,230,468 |
| $ | 31.18 |
| 0.9 | % | 7,230,468 |
| 1.3 | % |
|
| ||
C.B.S. Broadcasting, Inc. |
| 555 West 57th Street |
| 2013 & 2017 |
| 231,585 |
| 7,315,692 |
| $ | 31.59 |
| 1.0 | % | 7,315,692 |
| 1.3 | % | BBB |
| ||
BMW of Manhattan |
| 555 West 57th Street |
| 2012 |
| 227,782 |
| 4,089,852 |
| $ | 17.96 |
| 0.5 | % | 4,089,852 |
| 0.7 | % |
|
| ||
Teachers Insurance & Annuity Association |
| 485 Lexington Avenue & 750 Third Avenue |
| 2006, 2008, 2009 & 2015 |
| 216,155 |
| 9,715,644 |
| $ | 44.95 |
| 1.3 | % | 9,109,986 |
| 1.6 | % | AAA |
| ||
The Travelers Indemnity Company |
| 485 Lexington Avenue |
| 2016 |
| 210,609 |
| 10,530,450 |
| $ | 50.00 |
| 1.4 | % | 5,265,225 |
| 0.9 | % | A+ |
| ||
Polo Ralph Lauren Corporation |
| 625 Madison Avenue |
| 2019 |
| 186,000 |
| 9,114,000 |
| $ | 49.00 |
| 1.2 | % | 9,114,000 |
| 1.6 | % | BBB |
| ||
The Columbia House Company |
| 1221 Ave.of the Americas |
| Various |
| 175,312 |
| 8,180,916 |
| $ | 46.66 |
| 1.1 | % | 3,681,412 |
| 0.6 | % | B2 |
| ||
The Mt. Sinai Hospital and NYU Hospital Centers |
| 1 Park Avenue & 625 Madison Ave. |
| 2013, 2015 & 2016 |
| 173,741 |
| 6,782,964 |
| $ | 39.04 |
| 0.9 | % | 1,724,136 |
| 0.3 | % |
|
| ||
The Segal Company |
| 1 Park Avenue |
| 2009 |
| 157,947 |
| 6,757,428 |
| $ | 42.78 |
| 0.9 | % | 1,126,463 |
| 0.2 | % |
|
| ||
J & W Seligman & Co., Incorporated |
| 100 Park Avenue |
| 2009 |
| 148,726 |
| 5,813,760 |
| $ | 39.09 |
| 0.8 | % | 2,906,880 |
| 0.5 | % | AAA |
| ||
Sonnenschein, Nath & Rosenthal |
| 1221 Ave.of the Americas |
| Various |
| 147,997 |
| 7,091,676 |
| $ | 47.92 |
| 0.9 | % | 3,191,254 |
| 0.6 | % |
|
| ||
Ross Procurement, Inc. |
| 1372 Broadway |
| 2016 |
| 138,130 |
| 4,292,472 |
| $ | 31.08 |
| 0.6 | % | 4,292,472 |
| 0.7 | % | BBB |
| ||
Altria Corporate Services |
| 100 Park Avenue |
| 2007 |
| 136,118 |
| 6,727,860 |
| $ | 49.43 |
| 0.9 | % | 3,363,930 |
| 0.6 | % | BBB+ |
| ||
Metro North Commuter Railroad Co. |
| 420 Lexington Avenue |
| 2008 & 2016 |
| 134,687 |
| 4,317,012 |
| $ | 32.05 |
| 0.6 | % | 4,317,012 |
| 0.7 | % | AAA |
| ||
Tribune Newspaper |
| 220 East 42nd Street |
| 2010 |
| 134,208 |
| 4,282,296 |
| $ | 31.91 |
| 0.6 | % | 4,282,296 |
| 0.7 | % | A- |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total |
| 7,171,743 |
| $ | 302,591,094 |
| $ | 42.19 |
| 39.3 | % | $ | 240,070,327 |
| 33.6 | % |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Wholly Owned Portfolio + Allocated JV Properties |
|
|
| 18,619,900 |
| $ | 769,701,336 |
| $ | 41.34 |
|
|
| $ | 576,387,620 |
|
|
|
|
|
(1) - 60% of Portfolio’s Largest Tenants have investment grade credit ratings. 26% of SLG Share of Annualized Rent is derived from these Tenants.
30
TENANT DIVERSIFICATION
Based on Base Rental Revenue | Based on Square Feet Leased |
|
|
|
|
31
Leasing Activity
Available Space |
|
Activity |
| Building Address |
|
| # of Leases |
| Usable SF |
| Rentable SF |
| Rent/Rentable SF ($'s)(1) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Vacancy at 12/31/05 |
|
|
|
|
|
| 603,960 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Add: Acquired Vacancies |
| 521 Fifth Avenue |
|
|
|
| 12,088 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Space which became available during the Quarter (A): |
|
|
|
|
|
|
|
|
| ||||
Office |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 317 Madison Avenue |
|
| 2 |
| 6,744 |
| 6,744 |
| $ | 38.13 |
|
|
| 485 Lexington Avenue |
|
| 4 |
| 269,286 |
| 269,286 |
| $ | 39.21 |
|
|
| 750 Third Avenue |
|
| 1 |
| 77,281 |
| 77,281 |
| $ | 41.19 |
|
|
| 100 Park Avenue |
|
| 3 |
| 60,646 |
| 64,018 |
| $ | 30.89 |
|
|
| 286 Madison Avenue |
|
| 2 |
| 7,785 |
| 7,964 |
| $ | 30.22 |
|
|
| 555 West 57th Street |
|
| 4 |
| 54,290 |
| 55,967 |
| $ | 29.61 |
|
|
| 70 West 36th Street |
|
| 4 |
| 10,475 |
| 10,475 |
| $ | 28.74 |
|
|
| 470 Park Ave South |
|
| 3 |
| 24,400 |
| 24,400 |
| $ | 33.19 |
|
|
| 1140 Sixth Avenue |
|
| 1 |
| 5,900 |
| 6,798 |
| $ | 36.13 |
|
|
| 110 East 42nd Street |
|
| 1 |
| 3,559 |
| 3,559 |
| $ | 25.84 |
|
|
| 19 West 44th Street |
|
| 4 |
| 11,178 |
| 11,178 |
| $ | 35.05 |
|
|
| 28 West 44th Street |
|
| 3 |
| 6,223 |
| 6,223 |
| $ | 28.84 |
|
|
| 711 Third Avenue |
|
| 1 |
| 4,975 |
| 5,100 |
| $ | 35.83 |
|
|
| 440 Ninth Avenue |
|
| 1 |
| 19,650 |
| 20,000 |
| $ | 26.40 |
|
|
| 420 Lexington Avenue |
|
| 6 |
| 21,651 |
| 26,009 |
| $ | 38.80 |
|
|
| Total/Weighted Average |
| 40 |
| 584,043 |
| 595,002 |
| $ | 36.33 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Retail |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 70 West 36th Street |
|
| 1 |
| 5,668 |
| 5,668 |
| $ | 17.89 |
|
|
| Total/Weighted Average |
| 1 |
| 5,668 |
| 5,668 |
| $ | 17.89 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Storage |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 317 Madison Avenue |
|
| 1 |
| 208 |
| 263 |
| $ | 21.50 |
|
|
| 70 West 36th Street |
|
| 1 |
| 4,008 |
| 4,008 |
| $ | 15.00 |
|
|
| 286 Madison Avenue |
|
| 1 |
| 505 |
| 505 |
| $ | 25.50 |
|
|
| 100 Park Avenue |
|
| 1 |
| 1,928 |
| 1,928 |
| $ | 15.88 |
|
|
| 1 Park Avenue |
|
| 1 |
| 154 |
| 154 |
| $ | 13.64 |
|
|
| 440 Ninth Avenue |
|
| 1 |
| 2,087 |
| 2,982 |
| $ | 10.00 |
|
|
| Total/Weighted Average |
| 6 |
| 8,890 |
| 9,840 |
| $ | 14.23 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Total Space became Available during the Quarter |
|
|
|
|
|
|
|
|
| ||
|
| Office |
| 40 |
| 584,043 |
| 595,002 |
| $ | 36.33 |
| |
|
| Retail |
| 1 |
| 5,668 |
| 5,668 |
| $ | 17.89 |
| |
|
| Storage |
| 6 |
| 8,890 |
| 9,840 |
| $ | 14.23 |
| |
|
|
|
|
| 47 |
| 598,601 |
| 610,510 |
| $ | 35.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Total Available Space |
|
|
|
| 1,214,649 |
|
|
|
|
|
(1) Escalated Rent is calculated as Total Annual Income less Electric Charges
(A) - Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants heldover.
32
Leasing Activity
Leased Space |
|
Activity |
| Building Address |
| # of Leases |
| Term |
| Usable SF |
| Rentable SF |
| New Cash Rent / |
| Prev. Escalated |
| TI / Rentable |
| Free Rent # of Months |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Available Space as of 12/31/05 |
|
|
|
|
| 1,214,649 |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 317 Madison Avenue |
| 2 |
| 5.2 |
| 6,816 |
| 8,044 |
| $ | 41.29 |
| $ | 32.36 |
| $ | 38.17 |
| 1.2 |
|
|
| 485 Lexington Avenue |
| 1 |
| 10.6 |
| 4,369 |
| 4,369 |
| $ | 50.00 |
| $ | 39.21 |
| $ | 55.00 |
| 7.5 |
|
|
| 750 Third Avenue |
| 4 |
| 12.2 |
| 62,000 |
| 62,000 |
| $ | 50.48 |
| $ | 41.19 |
| $ | 34.18 |
| 7.0 |
|
|
| 100 Park Avenue |
| 2 |
| 4.2 |
| 37,949 |
| 40,388 |
| $ | 44.92 |
| $ | 31.52 |
| $ | 1.62 |
| — |
|
|
| 286 Madison Avenue |
| 2 |
| 3.0 |
| 7,964 |
| 8,413 |
| $ | 31.35 |
| $ | 28.61 |
| $ | 4.45 |
| — |
|
|
| 555 West 57th Street |
| 4 |
| 11.5 |
| 54,290 |
| 64,733 |
| $ | 36.00 |
| $ | 26.44 |
| $ | 25.00 |
| 4.0 |
|
|
| 70 West 36th Street |
| 3 |
| 7.9 |
| 9,097 |
| 9,546 |
| $ | 26.29 |
| $ | 33.70 |
| $ | 16.60 |
| 3.3 |
|
|
| 470 Park Ave South |
| 3 |
| 5.8 |
| 18,167 |
| 19,677 |
| $ | 29.55 |
| $ | 33.04 |
| $ | 5.92 |
| 2.3 |
|
|
| 1140 Sixth Avenue |
| 2 |
| 5.0 |
| 11,453 |
| 11,309 |
| $ | 38.29 |
| $ | 36.13 |
| $ | 7.11 |
| 0.8 |
|
|
| 1372 Broadway |
| 1 |
| 9.8 |
| 11,822 |
| 12,129 |
| $ | 36.00 |
| $ | — |
| $ | 54.24 |
| 7.0 |
|
|
| 19 West 44th Street |
| 5 |
| 3.3 |
| 14,873 |
| 15,527 |
| $ | 34.96 |
| $ | 33.72 |
| $ | 2.52 |
| 1.4 |
|
|
| 28 West 44th Street |
| 5 |
| 4.9 |
| 9,174 |
| 8,161 |
| $ | 36.03 |
| $ | 30.86 |
| $ | 30.34 |
| 2.0 |
|
|
| 711 Third Avenue |
| 1 |
| 4.2 |
| 4,975 |
| 5,100 |
| $ | 36.53 |
| $ | 35.83 |
| $ | — |
| 1.0 |
|
|
| 440 Ninth Avenue |
| 1 |
| 6.5 |
| 19,650 |
| 23,121 |
| $ | 27.59 |
| $ | 22.84 |
| $ | 22.75 |
| 3.0 |
|
|
| 420 Lexington Avenue |
| 9 |
| 2.9 |
| 24,882 |
| 28,834 |
| $ | 36.32 |
| $ | 41.77 |
| $ | 10.97 |
| 2.0 |
|
|
| Total/Weighted Average |
| 45 |
| 7.8 |
| 297,481 |
| 321,351 |
| $ | 38.90 |
| $ | 33.22 |
| $ | 20.32 |
| 3.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 470 Park Ave South |
| 1 |
| 15.5 |
| 14,461 |
| 16,132 |
| $ | 30.99 |
| $ | — |
| $ | 2.60 |
| 6.0 |
|
|
| 70 West 36th Street |
| 1 |
| 10.0 |
| 5,668 |
| 5,905 |
| $ | 26.04 |
| $ | 17.89 |
| $ | — |
| 4.0 |
|
|
| Total/Weighted Average |
| 2 |
| 14.0 |
| 20,129 |
| 22,037 |
| $ | 29.66 |
| $ | 17.89 |
| $ | 1.90 |
| 5.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 70 West 36th Street |
| 1 |
| 10.0 |
| 4,008 |
| 4,034 |
| $ | 15.00 |
| $ | 15.00 |
| $ | — |
| 4.0 |
|
|
| 317 Madison Avenue |
| 2 |
| 9.3 |
| 272 |
| 431 |
| $ | 20.00 |
| $ | — |
| $ | — |
| — |
|
|
| 286 Madison Avenue |
| 1 |
| 2.6 |
| 505 |
| 505 |
| $ | 26.00 |
| $ | 25.50 |
| $ | — |
| — |
|
|
| Total/Weighted Average |
| 4 |
| 9.2 |
| 4,785 |
| 4,970 |
| $ | 16.55 |
| $ | 16.17 |
| $ | — |
| 3.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Leased Space |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Office (3) |
| 45 |
| 7.8 |
| 297,481 |
| 321,351 |
| $ | 38.90 |
| $ | 33.22 |
| $ | 20.32 |
| 3.3 |
|
|
| Retail |
| 2 |
| 14.0 |
| 20,129 |
| 22,037 |
| $ | 29.66 |
| $ | 17.89 |
| $ | 1.90 |
| 5.5 |
|
|
| Storage |
| 4 |
| 9.2 |
| 4,785 |
| 4,970 |
| $ | 16.55 |
| $ | 16.17 |
| $ | — |
| 3.2 |
|
|
| Total |
| 51 |
| 8.2 |
| 322,395 |
| 348,358 |
| $ | 37.99 |
| $ | 32.66 |
| $ | 18.87 |
| 3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total Available Space @ 3/31/06 |
|
|
|
|
| 892,254 |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Early Renewals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 317 Madison Avenue |
| 3 |
| 5.2 |
| 4,339 |
| 4,604 |
| $ | 38.35 |
| $ | 35.03 |
| $ | 5.08 |
| — |
|
|
| 220 East 42nd Street |
| 1 |
| 1.0 |
| 13,194 |
| 13,194 |
| $ | 35.82 |
| $ | 35.84 |
| $ | — |
| — |
|
|
| 1250 Broadway |
| 1 |
| 1.8 |
| 4,819 |
| 5,346 |
| $ | 40.00 |
| $ | 33.82 |
| $ | — |
| — |
|
|
| 555 West 57th Street |
| 1 |
| 7.0 |
| 7,015 |
| 8,160 |
| $ | 36.00 |
| $ | 20.49 |
| $ | — |
| 1.0 |
|
|
| 70 West 36th Street |
| 3 |
| 5.1 |
| 16,934 |
| 17,618 |
| $ | 28.00 |
| $ | 25.28 |
| $ | 0.89 |
| — |
|
|
| 470 Park Ave South |
| 1 |
| 5.4 |
| 9,735 |
| 9,860 |
| $ | 29.00 |
| $ | 30.66 |
| $ | 29.34 |
| 5.0 |
|
|
| 1372 Broadway |
| 1 |
| 5.7 |
| 126,001 |
| 130,075 |
| $ | 36.00 |
| $ | 29.64 |
| $ | — |
| — |
|
|
| 110 East 42nd Street |
| 1 |
| 5.0 |
| 13,238 |
| 13,238 |
| $ | 43.00 |
| $ | 43.45 |
| $ | — |
| — |
|
|
| 19 West 44th Street |
| 3 |
| 6.3 |
| 6,838 |
| 7,331 |
| $ | 34.80 |
| $ | 38.55 |
| $ | 14.60 |
| — |
|
|
| 28 West 44th Street |
| 1 |
| 1.3 |
| 888 |
| 888 |
| $ | 40.25 |
| $ | 39.72 |
| $ | — |
| — |
|
|
| 420 Lexington Avenue |
| 4 |
| 2.6 |
| 6,636 |
| 7,734 |
| $ | 45.39 |
| $ | 40.55 |
| $ | — |
| — |
|
|
| Total/Weighted Average |
| 20 |
| 5.1 |
| 209,637 |
| 218,048 |
| $ | 35.91 |
| $ | 31.15 |
| $ | 2.00 |
| 0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Renewals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Expired/Renewed |
| 12 |
| 4.2 |
| 58,307 |
| 61,388 |
| $ | 39.91 |
| $ | 32.25 |
| $ | 2.98 |
| 0.2 |
|
|
| Early Renewals Office |
| 20 |
| 5.1 |
| 209,637 |
| 218,048 |
| $ | 35.91 |
| $ | 31.15 |
| $ | 2.00 |
| 0.3 |
|
|
| Total |
| 32 |
| 4.9 |
| 267,944 |
| 279,436 |
| $ | 36.79 |
| $ | 31.39 |
| $ | 2.21 |
| 0.3 |
|
(1) Annual Base Rent
(2) Escalated Rent is calculated as Total Annual Income less Electric Charges
(3) Average starting office rent excluding new tenants replacing vacancies is $39.10/rsf for 291,137 rentable SF.
Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $37.74/rsf for 509,185 rentable SF.
33
ANNUAL LEASE EXPIRATIONS |
|
|
| Consolidated Properties |
| Joint Venture Properties |
| ||||||||||||||||||||||||||
Year of Lease |
| Number of |
| Rentable |
| Percentage of |
| Annualized |
| Annualized Rent |
| Year 2006 |
| Number of |
| Rentable |
| Percentage of |
| Annualized |
| Annualized Rent |
| Year 2006 Weighted Average Asking Rent $/psf |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
In 1st Quarter 2006 (1) |
| 28 |
| 68,171 |
| 0.70 | % | $ | 2,210,136 |
| $ | 32.42 |
| $ | 42.67 |
| 3 |
| 7,994 |
| 0.10 | % | $ | 241,260 |
| $ | 30.18 |
| $ | 61.20 |
|
In 2nd Quarter 2006 |
| 34 |
| 163,652 |
| 1.67 | % | $ | 7,108,308 |
| $ | 43.44 |
| $ | 50.22 |
| 1 |
| 6,689 |
| 0.08 | % | $ | 66,888 |
| $ | 10.00 |
| $ | 38.00 |
|
In 3rd Quarter 2006 |
| 33 |
| 163,746 |
| 1.67 | % | $ | 5,914,368 |
| $ | 36.12 |
| $ | 38.69 |
| 6 |
| 106,454 |
| 1.30 | % | $ | 4,802,940 |
| $ | 45.12 |
| $ | 50.11 |
|
In 4th Quarter 2006 |
| 25 |
| 106,615 |
| 1.09 | % | $ | 3,821,004 |
| $ | 35.84 |
| $ | 46.11 |
| 2 |
| 64,685 |
| 0.79 | % | $ | 2,831,904 |
| $ | 43.78 |
| $ | 58.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total 2006 |
| 120 |
| 502,184 |
| 5.13 | % | $ | 19,053,816 |
| $ | 37.94 |
| $ | 44.56 |
| 12 |
| 185,822 |
| 2.26 | % | $ | 7,942,992 |
| $ | 42.75 |
| $ | 52.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
In 1st Quarter 2007 |
| 30 |
| 76,940 |
| 0.79 | % | $ | 2,996,508 |
| $ | 38.95 |
| $ | 48.90 |
| 2 |
| 4,281 |
| 0.05 | % | $ | 182,916 |
| $ | 42.73 |
| $ | 38.43 |
|
In 2nd Quarter 2007 |
| 37 |
| 147,495 |
| 1.51 | % | $ | 5,840,916 |
| $ | 39.60 |
| $ | 43.70 |
| 3 |
| 212,592 |
| 2.59 | % | $ | 14,594,268 |
| $ | 68.65 |
| $ | 68.47 |
|
In 3rd Quarter 2007 |
| 34 |
| 89,452 |
| 0.91 | % | $ | 4,006,656 |
| $ | 44.79 |
| $ | 48.54 |
| 3 |
| 25,260 |
| 0.31 | % | $ | 626,988 |
| $ | 24.82 |
| $ | 38.36 |
|
In 4th Quarter 2007 |
| 20 |
| 85,956 |
| 0.88 | % | $ | 3,461,556 |
| $ | 40.27 |
| $ | 85.10 |
| 3 |
| 159,480 |
| 1.94 | % | $ | 7,810,512 |
| $ | 48.97 |
| $ | 55.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total 2007 |
| 121 |
| 399,843 |
| 4.08 | % | $ | 16,305,636 |
| $ | 40.78 |
| $ | 54.68 |
| 11 |
| 401,613 |
| 4.89 | % | $ | 23,214,684 |
| $ | 57.80 |
| $ | 61.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
2008 |
| 128 |
| 788,621 |
| 8.05 | % | $ | 31,002,852 |
| $ | 39.31 |
| $ | 45.47 |
| 19 |
| 521,769 |
| 6.36 | % | $ | 22,019,784 |
| $ | 42.20 |
| $ | 61.86 |
|
2009 |
| 97 |
| 719,792 |
| 7.35 | % | $ | 32,002,740 |
| $ | 44.46 |
| $ | 47.60 |
| 20 |
| 566,541 |
| 6.90 | % | $ | 26,956,176 |
| $ | 47.58 |
| $ | 53.58 |
|
2010 |
| 143 |
| 1,629,528 |
| 16.64 | % | $ | 64,824,216 |
| $ | 39.78 |
| $ | 44.03 |
| 19 |
| 1,310,637 |
| 15.97 | % | $ | 62,716,848 |
| $ | 47.85 |
| $ | 62.83 |
|
2011 |
| 74 |
| 638,685 |
| 6.52 | % | $ | 29,858,460 |
| $ | 46.75 |
| $ | 47.75 |
| 6 |
| 143,083 |
| 1.74 | % | $ | 6,568,728 |
| $ | 45.91 |
| $ | 53.40 |
|
2012 |
| 52 |
| 774,610 |
| 7.91 | % | $ | 23,673,000 |
| $ | 30.56 |
| $ | 40.03 |
| 10 |
| 233,527 |
| 2.85 | % | $ | 9,405,628 |
| $ | 40.28 |
| $ | 51.95 |
|
2013 |
| 48 |
| 859,563 |
| 8.78 | % | $ | 32,568,576 |
| $ | 37.89 |
| $ | 44.04 |
| 7 |
| 1,089,987 |
| 13.28 | % | $ | 55,090,296 |
| $ | 50.54 |
| $ | 65.52 |
|
2014 |
| 30 |
| 382,514 |
| 3.91 | % | $ | 14,071,656 |
| $ | 36.79 |
| $ | 42.66 |
| 11 |
| 170,671 |
| 2.08 | % | $ | 13,675,512 |
| $ | 80.13 |
| $ | 98.21 |
|
2015 |
| 45 |
| 615,597 |
| 6.29 | % | $ | 25,465,236 |
| $ | 41.37 |
| $ | 46.75 |
| 13 |
| 440,652 |
| 5.37 | % | $ | 17,435,520 |
| $ | 39.57 |
| $ | 44.76 |
|
Thereafter |
| 84 |
| 2,481,867 |
| 25.34 | % | $ | 93,236,100 |
| $ | 37.57 |
| $ | 52.61 |
| 23 |
| 3,140,765 |
| 38.28 | % | $ | 142,612,880 |
| $ | 45.41 |
| $ | 73.68 |
|
|
| 942 |
| 9,792,804 |
| 100.00 | % | $ | 382,062,288 |
| $ | 39.01 |
| $ | 47.09 |
| 151 |
| 8,205,067 |
| 100.00 | % | $ | 387,639,048 |
| $ | 47.24 |
| $ | 65.61 |
|
(1) Includes month to month holdover tenants that expired prior to 3/31/06
(2) Tenants may have multiple leases.
(3) Represents in place annualized rent allocated by year of maturity.
34
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997 |
|
|
|
|
|
|
|
|
|
|
| % Leased |
| Acquisition |
| |||
|
| Property |
| Type of Ownership |
| Submarket |
| Net Rentable sf |
| at acquisition |
| 3/31/2006 |
| Price ($’s) (1) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1998 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Mar-98 |
| 420 Lexington |
| Operating Sublease |
| Grand Central |
| 1,188,000 |
| 83 |
| 97 |
| $ | 78,000,000 |
|
Mar-98 |
| 1466 Broadway |
| Fee Interest |
| Times Square |
| 289,000 |
| 87 |
| N/A |
| $ | 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 |
| 524,000 |
| 79 |
| 100 |
| $ | 65,600,000 |
|
Jun-98 |
| 440 9th Avenue |
| Fee Interest |
| Penn Station |
| 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 |
| — |
| — |
| — |
| $ | 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 |
|
|
|
|
|
|
| $ | 50,000,000 |
|
|
| 286 Madison Avenue |
|
|
|
|
| 112,000 |
| 99 |
| 100 |
|
|
| |
|
| 290 Madison Avenue |
|
|
|
|
| 36,800 |
| 86 |
| 100 |
|
|
| |
|
| 292 Madison Avenue |
|
|
|
|
| 187,000 |
| 97 |
| 100 |
|
|
| |
Aug-99 |
| 1250 Broadway - 50% JV |
| Fee Interest |
| Penn Station |
| 670,000 |
| 97 |
| 96 |
| $ | 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 |
| 834,000 |
| 97 |
| 90 |
| $ | 192,000,000 |
|
Dec-00 |
| 180 Madison Avenue |
| Fee Interest |
| Grand Central |
| 265,000 |
| 90 |
| N/A |
| $ | 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 |
| 913,000 |
| 97 |
| 98 |
| $ | 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 |
| 94 |
| $ | 105,600,000 |
|
Acquisition of JV Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sep-01 |
| 1250 Broadway - 49.9% JV (2) |
| Fee Interest |
| Penn Station |
| 670,000 |
| 98 |
| 96 |
| $ | 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 |
| 100 |
| $ | 483,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 483,500,000 |
|
2003 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Feb-03 |
| 220 East 42nd Street |
| Fee Interest |
| Grand Central |
| 1,135,000 |
| 92 |
| 100 |
| $ | 265,000,000 |
|
Mar-03 |
| 125 Broad Street |
| Fee Interest |
| Downtown |
| 525,000 |
| 100 |
| 100 |
| $ | 92,000,000 |
|
Oct-03 |
| 461 Fifth Avenue |
| Leasehold Interest |
| Midtown |
| 200,000 |
| 94 |
| 90 |
| $ | 60,900,000 |
|
Dec-03 |
| 1221 Ave of Americas -45% JV |
| Fee Interest |
| Rockefeller Center |
| 2,550,000 |
| 99 |
| 97 |
| $ | 1,000,000,000 |
|
|
|
|
|
|
|
|
| 4,410,000 |
|
|
|
|
| $ | 1,417,900,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2004 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Mar-04 |
| 19 West 44th Street -35% JV |
| Fee Interest |
| Midtown |
| 292,000 |
| 86 |
| 98 |
| $ | 67,000,000 |
|
Jul-04 |
| 750 Third Avenue |
| Fee Interest |
| Grand Central |
| 779,000 |
| 100 |
| 98 |
| $ | 255,000,000 |
|
Jul-04 |
| 485 Lexington Avenue - 30% JV |
| Fee Interest |
| Grand Central |
| 921,000 |
| 100 |
| 71 |
| $ | 225,000,000 |
|
Oct-04 |
| 625 Madison Avenue |
| Leasehold Interest |
| Plaza District |
| 563,000 |
| 68 |
| 92 |
| $ | 231,500,000 |
|
|
|
|
|
|
|
|
| 2,555,000 |
|
|
|
|
| $ | 778,500,000 |
|
2005 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Feb-05 |
| 28 West 44th Street |
| Fee Interest |
| Midtown |
| 359,000 |
| 87 |
| 95 |
| $ | 105,000,000 |
|
Apr-05 |
| 1 Madison Ave - 55% JV |
| Fee Interest |
| Park Avenue South |
| 1,177,000 |
| 96 |
| 98 |
| $ | 803,000,000 |
|
Apr-05 |
| 1 Madison Ave |
| Fee Interest |
| Park Avenue South |
| 267,000 |
| N/A |
| N/A |
| $ | 115,000,000 |
|
Jun-05 |
| 19 West 44th Street -remaining 65% |
| Fee Interest |
| Midtown |
| — |
|
|
| 98 |
| $ | 91,200,000 |
|
Jul-05 |
| 1551/1555 Broadway & 21 West 34th Street - 50% JV |
| Fee Interest |
| Times Square / Penn Station |
| 43,700 |
| N/A |
| N/A |
| $ | 102,500,000 |
|
Sep-05 |
| 141 Fifth Avenue - 50% JV |
| Fee Interest |
| Flatiron District |
| 21,500 |
| 90 |
| 100 |
| $ | 13,250,000 |
|
Nov-05 |
| 1604 Broadway - 45% JV |
| Leasehold Interest |
| Times Square |
| 41,100 |
| 17 |
| 17 |
| $ | 4,400,000 |
|
Dec-05 |
| 379 West Broadway - 45% JV |
| Leasehold Interest |
| Cast Iron / Soho |
| 62,006 |
| 100 |
| 100 |
| $ | 19,750,000 |
|
|
|
|
|
|
|
|
| 1,971,306 |
|
|
|
|
| $ | 1,229,950,000 |
|
2006 Acquisition |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Jan-06 |
| 25-29 West 34th Street - 50% JV |
| Fee interest |
| Herald Square / Penn Station |
| 51,000 |
| 56 |
| 56 |
| $ | 30,000,000 |
|
Mar-06 |
| 521 Fifth Avenue |
| Leasehold Interest |
| Midtown |
| 460,000 |
| 97 |
| 97 |
| $ | 210,000,000 |
|
(1) Acquisition price represents purchase price for consolidated acquisitions and purchase price or imputed value for joint venture properties.
(2) Current ownership interest is 55%. (From 9/1/01-10/31/01the company owned 99.8% of this property.)
35
SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999 |
|
|
| Property |
| Type of Ownership |
| Submarket |
| Net Rentable sf |
| Sales |
| Sales |
| ||
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 |
|
Oct-04 |
| 17 Battery Place North |
| Fee Interest |
| Financial |
| 419,000 |
| $ | 70,000,000 |
| $ | 167 |
|
Nov-04 |
| 1466 Broadway |
| Fee Interest |
| Times Square |
| 289,000 |
| $ | 160,000,000 |
| $ | 554 |
|
|
|
|
|
|
|
|
| 1,621,000 |
| $ | 548,500,000 |
|
|
| |
2005 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Apr-05 |
| 1414 Avenue of the Americas |
| Fee Interest |
| Plaza District |
| 111,000 |
| $ | 60,500,000 |
| $ | 545 |
|
Aug-05 |
| 180 Madison Avenue |
| Fee Interest |
| Grand Central |
| 265,000 |
| $ | 92,700,000 |
| $ | 350 |
|
|
|
|
|
|
|
|
| 376,000 |
| 153,200,000 |
|
|
|
(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.
36
SUPPLEMENTAL DEFINITIONS |
|
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 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 the total payments for interest, principal amortization, ground leases and preferred stock dividend.
Fixed charge coverage is adjusted EBITDA divided by fixed charge.
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 under the White Paper approved by the Board of Governors of NAREIT in April 2002 as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring and sales of properties, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
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.
Percentage leased represents the percentage of leased square feet, including month-to-month leases, to total rentable square feet owned, 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 TIs and LCs are tenant improvements, lease commissions, and other leasing costs incurred during leasing of second generation 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 at liquidation value. SLG’s share of total debt includes total consolidated debt plus SLG’s pro rata share of the debt of unconsolidated joint ventures less 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 an interest (e.g. joint ventures).
37
CORPORATE GOVERNANCE
Stephen L. Green
Chairman of the Board
Marc Holliday
CEO and President
Gregory F. Hughes
Chief Financial Officer
Andrew Mathias
Chief Investment Officer
Gerard Nocera
Chief Operating Officer
Andrew S. Levine
General Counsel and Secretary
Firm |
| Analyst |
| Phone |
| |
AG Edwards, Inc. |
| Dave Aubuchon |
| (314) 955-5452 |
| aubuchondl@agedwards.com |
Banc of America Securities, LLC |
| Ross Nussbaum |
| (212) 847-5668 |
| ross.nussbaum@bofasecurities.com |
Citigroup Smith Barney, Inc. |
| Jonathan Litt |
| (212) 816-0231 |
| jonathan.litt@citigroup.com |
Deutsche Bank Securities, Inc. |
| Louis W. Taylor |
| (212) 250-4912 |
| louis.taylor@db.com |
Goldman Sachs & Co. |
| Jonathan Habermann |
| (917) 343-4260 |
| jnathan.habermann@gs.com |
Green Street Advisors |
| Jim Sullivan |
| (949) 640-8780 |
| jsullivan@greenstreetadvisors.com |
JP Morgan Securities, Inc. |
| Anthony Paolone |
| (212) 622-6682 |
| anthony.paolone@jpmorgan.com |
Lehman Brothers Holdings, Inc. |
| David Harris |
| (212) 526-1790 |
| dharris4@lehman.com |
Merrill Lynch |
| Steve Sakwa |
| (212) 449-4396 |
| steve_sakwa@ml.com |
Raymond James Financial, Inc. |
| Paul D. Puryear |
| (727) 567-2253 |
| paul.puryear@raymondjames.com |
Stifel Nicolaus |
| John Guinee |
| (410) 454-5520 |
| jwguinee@lmus.leggmason.com |
Wachovia Securities, LLC |
| Christopher Haley |
| (443) 263-6773 |
| christopher.haley@wachovia.com |
SL Green Realty Corp. is followed by the analysts 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.
38