Exhibit 99.2
SL Green Realty Corp.
Third Quarter 2006
Supplemental Data
September 30, 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 September 30, 2006 that will subsequently be released on Form 10-Q to be filed on or before November 9, 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 |
| 18-21 |
|
|
|
|
|
Selected Financial Data |
| 22-25 |
|
|
|
|
|
Summary of Debt and Ground Lease Arrangements |
| 26-27 |
|
|
|
|
|
Mortgage Investments and Preferred Equity |
| 28-29 |
|
|
|
|
|
Property Data |
|
|
|
Composition of Property Portfolio |
| 30 |
|
Top Tenants |
| 31 |
|
Tenant Diversification |
| 32 |
|
Leasing Activity Summary |
| 33-34 |
|
Lease Expiration Schedule |
| 35 |
|
|
|
|
|
Summary of Acquisition/Disposition Activity |
| 36-37 |
|
Supplemental Definitions |
| 38 |
|
Corporate Information |
| 39 |
|
|
|
|
|
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
THIRD Quarter 2006 UNAUDITED |
FINANCIAL RESULTS
Funds From Operations, or FFO, available to common stockholders totaled $55.5 million, or $1.13 per share for the third quarter ended September 30, 2006, consistent with the same quarter in 2005 when FFO totaled $51.7 million, or $1.13 per share. The results for 2005 include an incentive fee of $10.8 million ($0.24 per share). Excluding the incentive fee, FFO for the quarter ended September 30, 2006 would have increased approximately 35.8% over the same quarter in 2005.
Net income available for common stockholders totaled $118.7 million, or $2.53 per share (diluted) for the third quarter ended September 30, 2006. Net income available to common stockholders totaled $37.3 million, or $0.87 per share in the same quarter in 2005. 2006 year-to-date results include gains on sale of $2.08 per share compared to gains on sale of $1.04 per share in 2005.
Funds available for distribution, or FAD, for the third quarter 2006 decreased to $0.81 per share (diluted) versus $0.83 per share (diluted) in the prior year, a 2.4% decrease.
The Company’s dividend payout ratio was 53.16% of FFO and 73.75% of FAD before third cycle leasing costs.
All per share amounts are presented on a diluted basis.
CONSOLIDATED RESULTS
Total quarterly revenues increased 19.7% in the third quarter to $138.4 million compared to $115.6 million in the prior year. The $22.8 million growth in revenue resulted primarily from the following items:
• $12.1 million increase from 2006 and 2005 acquisitions,
• $11.9 million increase from same-store properties,
• $5.1 million increase in preferred equity and investment income, and
• $6.3 million decrease in other revenue, which was primarily due to an incentive fee earned in 2005 ($10.8 million) which was partially offset by fees earned from Gramercy ($2.6 million).
The Company’s earnings before interest, taxes, depreciation and amortization, or EBITDA, increased by $6.6 million (9.6%) to $75.3 million. The following items drove EBITDA improvements:
• $8.2 million increase from 2006 and 2005 acquisitions.
• $4.4 million increase from same-store properties.
• $5.1 million increase in preferred equity and investment income. The weighted-average structured finance investment balance for the quarter decreased to $351.3 million from $413.6 million in the prior year. The weighted-average yield for the quarter was 10.32% compared to 10.27% in the prior year.
• $3.6 million decrease from reductions in equity in net income from unconsolidated joint ventures primarily due to
5
FINANCIAL HIGHLIGHTS
THIRD Quarter 2006 UNAUDITED |
our investments at 1515 Broadway ($3.0 million), 1221 Avenue of the Americas ($2.1 million) and the Mack-Green joint venture ($2.1 million). This was partially offset by increases at Gramercy ($1.5 million), 485 Lexington Avenue ($0.7 million), 100 Park Avenue ($0.8 million) and One Park Avenue ($0.4 million).
• $1.0 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.
• $6.5 million decrease in non-real estate revenues net of expenses, primarily due to an incentive fee earned in 2005 ($10.8 million) which was partially offset by fee income from Gramercy ($2.6 million).
FFO before minority interests improved $3.8 million primarily as a result of:
• $6.6 million increase in EBITDA,
• $0.6 million decrease in FFO from unconsolidated joint ventures, discontinued operations and non-real estate depreciation, and
• $3.4 million decrease from higher interest expense.
SAME-STORE RESULTS
Consolidated Properties
Same-store third quarter 2006 GAAP NOI increased $4.5 million (11.1%) to $45.3 million compared to the prior year. Operating margins after ground rent increased from 46.7% to 47.6%.
The $4.5 million increase in GAAP NOI was primarily due to:
• $4.8 million (6.7%) increase in rental revenue primarily due to improved leasing,
• $2.7 million (19.3%) increase in escalation and reimbursement revenue primarily due to operating expense and real estate tax recoveries,
• $0.6 million (62.4%) increase in investment and other income,
• $2.8 million (11.3%) increase in operating expenses, primarily driven by increases in payroll, utilities and insurance costs, and
• $0.8 million (4.9%) increase in real estate taxes.
Joint Venture Properties
The Joint Venture properties third quarter 2006 GAAP NOI increased $0.4 million (1.5%) to $24.9 million compared to the prior year. Operating margins after ground rent decreased from 56.9% to 55.8%.
The $0.4 million increase in GAAP NOI was primarily due to:
• $0.7 million (2.1%) increase in rental revenue primarily due to improved leasing,
• $1.2 million (16.4%) increase in escalation and reimbursement revenue primarily due to electric
6
FINANCIAL HIGHLIGHTS
THIRD Quarter 2006 UNAUDITED |
reimbursements and real estate tax and operating expense recoveries,
• $0.3 million (11.7%) decrease in other income,
• $0.4 million (7.5 %) increase in real estate taxes, and
• $0.8 million (6.3%) increase in operating expenses primarily driven by increases in utilities and insurance.
STRUCTURED FINANCE ACTIVITY
As of September 30, 2006, our structured finance and preferred equity investments totaled $347.6 million. The weighted average balance outstanding for the third quarter of 2006 was $351.3 million. During the third quarter of 2006 the weighted average yield was 10.32%.
During the third quarter 2006, the Company originated $32.5 million of structured finance investments with an initial yield of 11.69%. In addition, the Company received redemptions totaling approximately $19.2 million that were yielding 10.97%.
QUARTERLY LEASING HIGHLIGHTS
Vacancy at June 30, 2006 was 778,228 useable square feet net of holdover tenants. During the quarter, 337,061 additional useable office, retail and storage square feet became available at an average escalated cash rent of $44.86 per rentable square foot. The Company sold 2,725 of available usable square feet in connection with the closing of the 1140 Avenue of the Americas transaction. Space available to lease during the quarter totaled 1,112,564 useable square feet, or 6.0% of the total portfolio.
During the third quarter, 56 office leases, including early renewals, were signed totaling 586,223 rentable square feet. New cash rents averaged $62.67 per rentable square foot. Replacement rents were 25.8% higher than rents on previously occupied space, which had fully escalated cash rents averaging $49.81 per rentable square foot. The average lease term was 6.4 years and average tenant concessions were 1.9 months of free rent with a tenant improvement allowance of $14.90 per rentable square foot.
The Company also signed 6 retail and storage leases, including early renewals, for 62,273 rentable square feet. The average lease term was 14.7 years and the average tenant concessions were 5.4 months of free rent with a tenant improvement allowance of $31.73 per rentable square foot.
REAL ESTATE ACTIVITY
Real estate investment transactions entered into during the third quarter totaled approximately $6.2 billion and included:
• In August 2006, the Company announced that it had entered into an agreement to acquire Reckson Associates Realty Corp. (NYSE: RA) for approximately $6.0 billion. The transaction includes the acquisition of thirty properties encompassing approximately 9.2 million square feet, of which 5
7
FINANCIAL HIGHLIGHTS
THIRD Quarter 2006 UNAUDITED |
properties encompassing approximately 4.2 million square feet are located in Manhattan. The transaction, which is subject to approval by the Reckson shareholders as well as customary closing conditions, is scheduled to close in the first quarter of 2007. Simultaneously, the Company also announced that it had entered into an agreement to sell approximately $2.1 billion of the Reckson assets to an asset purchasing venture which includes certain members of Reckson’s senior management as well as Marathon Asset Management LLC. Additional details on the transaction can be found in the Registration Statement filed on Form S-4 which was declared effective by the Securities and Exchange Commission in October 2006.
• During the third quarter of 2006, SL Green also closed on the previously announced sales of 286 Madison Avenue, 290 Madison Avenue and 1140 Avenue of the Americas. The properties, which encompass approximately 340,000 square feet, were sold for an aggregate of $160.5 million. These asset sales generated gains of approximately $94.6 million, or $2.02 per share.
Investment In Gramercy Capital Corp.
At September 30, 2006, the book value of the Company’s investment in Gramercy totaled $117.2 million. Fees earned from various arrangements between the Company and Gramercy totaled approximately $6.2 million for the quarter ended September 30, 2006, including an incentive fee of $1.8 million earned as a result of Gramercy’s FFO (as defined in the organizational documents of Gramercy) exceeding the 9.5% annual return on equity performance threshold. For the nine months ended September 30, 2006, the Company earned $16.4 million in fees from Gramercy. The Company’s share of FFO generated from its investment in Gramercy totaled approximately $4.1 million and $11.0 million for the three and nine months ended September 30, 2006, respectively, compared to $2.6 million and $5.9 million for the same periods in the prior year.
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 September 30, 2006, the Company’s MG&A includes approximately $2.2 million of costs associated with Gramercy. MG&A for this quarter also includes approximately $0.4 million of expense associated with the Company’s 2006 outperformance plan.
Financing/ Capital Activity
In July 2006, the Company sold 2.5 million shares of its common stock for net proceeds, after deducting underwriting discounts, commissions and transaction expenses, of approximately $268.5 million.
In anticipation of the closing of the Reckson acquisition, the Company has received approximately $2.1 billion of financing commitments. The Company entered into a $150.0 million
8
FINANCIAL HIGHLIGHTS
THIRD Quarter 2006 UNAUDITED |
forward-starting swap in order to reduce the Company’s exposure to floating rate debt upon consummation of the Reckson transaction. The balance of the purchase price is expected to be funded through the issuance of approximately 9 million shares of SL Green common stock, and the assumption of Reckson’s existing debt.
In October 2006, the Company formed Belmont Insurance Company, an insurance captive. The captive, which received licensing from the New York State Insurance Department, was formed to insure a portion of certain risks of SL Green. It is currently licensed to write up to $100 million of coverage for SL Green.
Green Loan Services LLC (GLS), an affiliate of SL Green Realty Corp. has been designated a Special Servicer by Standard & Poor’s. Established in 2005 to serve as the Special Servicer for Gramercy Real Estate CDO 2005-1 Ltd., the first CDO issued by Gramercy Capital Corp., GLS services owned-loan portfolios acquired through SL Green’s and Gramercy’s structured finance businesses, and also provides servicing work emanating from SL Green’s third-party investor relationships. In addition, GLS acts as the Special Servicer for six large CMBS loans secured by Manhattan office properties in which SL Green owns the B notes.
Dividends
On September 21, 2006, the Company declared a dividend of $0.60 per common share for the third quarter 2006. The dividend was payable October 13, 2006 to stockholders of record on the close of business on September 29, 2006. This distribution reflects the regular quarterly dividend, which is the equivalent of an annualized distribution of $2.40 per common share.
On September 21, 2006, the Company also approved a distribution on its Series C preferred stock for the period July 15, 2006 through and including October 14, 2006, of $0.4766 per share, payable October 13, 2006 to stockholders of record on the close of business on September 29, 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 September 21, 2006, the Company also approved a distribution on its Series D preferred stock for the period July 15, 2006 through and including October 14, 2006, of $0.4922 per share, payable October 13, 2006 to stockholders of record on the close of business on September 29, 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 September 30, 2006 (Dollars in Thousands Except Per Share and Sq. Ft.) |
|
| As of or for the three months ended |
| |||||||||||||
|
| 9/30/2006 |
| 6/30/2006 |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
| |||||
Net income available to common shareholders - diluted |
| $ | 2.53 |
| $ | 0.65 |
| $ | 0.54 |
| $ | 0.48 |
| $ | 0.87 |
|
Funds from operations available to common shareholders - diluted |
| $ | 1.13 |
| $ | 1.22 |
| $ | 1.08 |
| $ | 1.02 |
| $ | 1.13 |
|
Funds available for distribution to common shareholders - diluted |
| $ | 0.81 |
| $ | 0.94 |
| $ | 0.80 |
| $ | 0.67 |
| $ | 0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Common Share Price & Dividends |
|
|
|
|
|
|
|
|
|
|
| |||||
At the end of the period |
| $ | 111.70 |
| $ | 109.47 |
| $ | 101.50 |
| $ | 76.39 |
| $ | 68.18 |
|
High during period |
| $ | 115.90 |
| $ | 109.47 |
| $ | 103.09 |
| $ | 77.14 |
| $ | 70.10 |
|
Low during period |
| $ | 107.17 |
| $ | 95.31 |
| $ | 77.70 |
| $ | 63.80 |
| $ | 64.76 |
|
Common dividends per share |
| $ | 0.60 |
| $ | 0.60 |
| $ | 0.60 |
| $ | 0.60 |
| $ | 0.54 |
|
FFO Payout Ratio |
| 53.16% |
| 49.20 | % | 55.53 | % | 58.65 | % | 47.70 | % | |||||
FAD Payout Ratio |
| 73.75% |
| 63.91 | % | 75.40 | % | 89.03 | % | 64.78 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Common Shares & Units |
|
|
|
|
|
|
|
|
|
|
| |||||
Common shares outstanding |
| 45,774 |
| 43,226 |
| 43,133 |
| 42,456 |
| 41,942 |
| |||||
Units outstanding |
| 2,219 |
| 2,219 |
| 2,263 |
| 2,427 |
| 2,502 |
| |||||
Total shares and units outstanding |
| 47,993 |
| 45,445 |
| 45,396 |
| 44,883 |
| 44,444 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted average common shares and units outstanding - basic |
| 47,495 |
| 45,421 |
| 45,169 |
| 44,596 |
| 44,426 |
| |||||
Weighted average common shares and units outstanding - diluted |
| 49,215 |
| 46,901 |
| 46,608 |
| 45,820 |
| 45,674 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Market Capitalization |
|
|
|
|
|
|
|
|
|
|
| |||||
Market value of common equity |
| $ | 5,360,818 |
| $ | 4,974,864 |
| $ | 4,607,694 |
| $ | 3,428,612 |
| $ | 3,030,192 |
|
Liquidation value of preferred equity |
| 257,500 |
| 257,500 |
| 257,500 |
| 257,500 |
| 257,500 |
| |||||
Consolidated debt |
| 1,975,325 |
| 1,853,644 |
| 1,693,907 |
| 1,542,252 |
| 1,626,640 |
| |||||
Consolidated market capitalization |
| $ | 7,593,643 |
| $ | 7,086,008 |
| $ | 6,559,101 |
| $ | 5,228,364 |
| $ | 4,914,332 |
|
SLG portion JV debt |
| 1,181,397 |
| 1,179,332 |
| 1,111,160 |
| 1,040,265 |
| 911,959 |
| |||||
Combined market capitalization |
| $ | 8,775,040 |
| $ | 8,265,340 |
| $ | 7,670,261 |
| $ | 6,268,629 |
| $ | 5,826,291 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated debt to market capitalization |
| 26.01% |
| 26.16 | % | 25.83 | % | 29.50 | % | 33.10 | % | |||||
Combined debt to market capitalization |
| 35.97% |
| 36.70 | % | 36.57 | % | 41.20 | % | 43.57 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated debt service coverage |
| 3.38 |
| 3.63 |
| 3.55 |
| 3.53 |
| 3.70 |
| |||||
Consolidated fixed charge coverage |
| 2.47 |
| 2.59 |
| 2.45 |
| 2.39 |
| 2.55 |
| |||||
Combined fixed charge coverage |
| 1.93 |
| 2.03 |
| 1.95 |
| 1.93 |
| 2.07 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Portfolio Statistics |
|
|
|
|
|
|
|
|
|
|
| |||||
Directly owned office buildings |
| 20 |
| 23 |
| 22 |
| 21 |
| 21 |
| |||||
Joint venture office buildings |
| 7 |
| 7 |
| 7 |
| 7 |
| 7 |
| |||||
|
| 27 |
| 30 |
| 29 |
| 28 |
| 28 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Directly owned square footage |
| 9,625,000 |
| 9,965,000 |
| 9,805,000 |
| 9,345,000 |
| 9,345,000 |
| |||||
Joint venture square footage |
| 8,814,900 |
| 8,814,900 |
| 8,814,900 |
| 8,814,900 |
| 8,814,900 |
| |||||
|
| 18,439,900 |
| 18,779,900 |
| 18,619,900 |
| 18,159,900 |
| 18,159,900 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Quarter end occupancy-portfolio |
| 96.1% |
| 95.9 | % | 95.2 | % | 96.7 | % | 96.0 | % | |||||
Quarter end occupancy- same store - wholly owned |
| 97.0% |
| 96.8% |
| 96.1 | % | 96.0 | % | 94.9 | % | |||||
Quarter end occupancy- same store - combined (wholly owned + joint venture) |
| 96.9% |
| 96.9% |
| 96.3 | % | 96.5 | % | 96.0 | % |
10
| SL Green Realty Corp. Key Financial Data September 30, 2006 (Dollars in Thousands Except Per Share and Sq. Ft.) |
|
| As of or for the three months ended |
| |||||||||||||
|
| 9/30/2006 |
| 6/30/2006 |
| 3/31/2006 |
| 12/31/05 |
| 9/30/2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Selected Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
| |||||
Real estate assets before depreciation |
| $ | 2,824,688 |
| $ | 2,634,724 |
| $ | 2,343,714 |
| $ | 2,222,922 |
| $ | 2,183,267 |
|
Investments in unconsolidated joint ventures |
| $ | 549,040 |
| $ | 571,418 |
| $ | 533,145 |
| $ | 543,189 |
| $ | 659,860 |
|
Structured finance investments |
| $ | 347,558 |
| $ | 333,989 |
| $ | 466,173 |
| $ | 400,076 |
| $ | 400,049 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Assets |
| $ | 4,226,806 |
| $ | 3,691,952 |
| $ | 3,482,532 |
| $ | 3,309,777 |
| $ | 3,352,330 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed rate & hedged debt |
| $ | 1,418,106 |
| $ | 1,419,065 |
| $ | 1,254,116 |
| $ | 1,255,141 |
| $ | 1,256,095 |
|
Variable rate debt |
| 462,219 |
| 339,579 |
| 439,791 |
| 287,111 |
| 370,545 |
| |||||
Total consolidated debt |
| $ | 1,880,325 |
| $ | 1,758,644 |
| $ | 1,693,907 |
| $ | 1,542,252 |
| $ | 1,626,640 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Liabilities |
| $ | 2,239,912 |
| $ | 2,090,786 |
| $ | 1,893,838 |
| $ | 1,751,275 |
| $ | 1,821,699 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed rate & hedged debt-including SLG portion of JV debt |
| $ | 1,957,206 |
| $ | 1,958,896 |
| $ | 1,768,857 |
| $ | 1,741,225 |
| $ | 1,732,776 |
|
Variable rate debt - including SLG portion of JV debt |
| 1,104,516 |
| 979,080 |
| 1,036,210 |
| 841,292 |
| 805,823 |
| |||||
Total combined debt |
| $ | 3,061,722 |
| $ | 2,937,976 |
| $ | 2,805,067 |
| $ | 2,582,517 |
| $ | 2,538,599 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Selected Operating Data |
|
|
|
|
|
|
|
|
|
|
| |||||
Property operating revenues |
| $ | 113,124 |
| $ | 104,004 |
| $ | 97,948 |
| $ | 90,531 |
| $ | 88,049 |
|
Property operating expenses |
| 58,867 |
| 53,269 |
| 52,824 |
| 46,583 |
| 46,686 |
| |||||
Property operating NOI |
| $ | 54,257 |
| $ | 50,735 |
| $ | 45,124 |
| $ | 43,948 |
| $ | 41,363 |
|
NOI from discontinued operations |
| 1,674 |
| 2,079 |
| 1,694 |
| 2,601 |
| 2,055 |
| |||||
Total property operating NOI |
| $ | 55,931 |
| $ | 52,814 |
| $ | 46,818 |
| $ | 46,549 |
| $ | 43,418 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
SLG share of Property NOI from JVs |
| $ | 36,587 |
| $ | 33,834 |
| $ | 32,130 |
| $ | 31,595 |
| $ | 32,770 |
|
SLG share of FFO from Gramercy Capital |
| $ | 4,125 |
| $ | 3,694 |
| $ | 3,168 |
| $ | 3,205 |
| $ | 2,610 |
|
Structured finance income |
| $ | 15,714 |
| $ | 17,305 |
| $ | 13,479 |
| $ | 11,266 |
| $ | 10,652 |
|
Other income |
| $ | 9,517 |
| $ | 11,475 |
| $ | 9,900 |
| $ | 8,337 |
| $ | 16,897 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Marketing general & administrative expenses |
| $ | 13,829 |
| $ | 13,257 |
| $ | 12,986 |
| $ | 11,965 |
| $ | 13,418 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated interest |
| $ | 24,764 |
| $ | 22,901 |
| $ | 18,850 |
| $ | 20,100 |
| $ | 20,580 |
|
Combined interest |
| $ | 43,990 |
| $ | 40,088 |
| $ | 34,428 |
| $ | 34,642 |
| $ | 33,487 |
|
Preferred Dividend |
| $ | 4,969 |
| $ | 4,969 |
| $ | 4,969 |
| $ | 4,969 |
| $ | 4,969 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Office Leasing Statistics |
|
|
|
|
|
|
|
|
|
|
| |||||
Total office leases signed |
| 56 |
| 57 |
| 65 |
| 55 |
| 58 |
| |||||
Total office square footage leased |
| 586,223 |
| 427,862 |
| 539,399 |
| 963,087 |
| 341,458 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average rent psf |
| $ | 62.67 |
| $ | 46.40 |
| $ | 37.74 |
| $ | 46.89 |
| $ | 43.79 |
|
Escalated rents psf |
| $ | 49.81 |
| $ | 42.08 |
| $ | 32.33 |
| $ | 38.99 |
| $ | 41.68 |
|
Percentage of rent over escalated |
| 25.8 | % | 10.3 | % | 16.7 | % | 20.3 | % | 5.1 | % | |||||
Tenant concession packages psf |
| $ | 14.90 |
| $ | 24.89 |
| $ | 12.91 |
| $ | 39.57 |
| $ | 30.74 |
|
Free rent months |
| 1.9 |
| 2.5 |
| 2.1 |
| 6.2 |
| 2.7 |
|
11
COMPARATIVE BALANCE SHEETS
Unaudited ($000’s omitted) |
Assets |
| 9/30/2006 |
| 6/30/2006 |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| |||||
Commercial real estate properties, at cost: |
|
|
|
|
|
|
|
|
|
|
| |||||
Land & land interests |
| $ | 349,073 |
| $ | 302,821 |
| $ | 270,351 |
| $ | 288,239 |
| $ | 288,080 |
|
Buildings & improvements fee interest |
| 1,671,234 |
| 1,477,106 |
| 1,365,554 |
| 1,440,584 |
| 1,408,858 |
| |||||
Buildings & improvements leasehold |
| 705,900 |
| 703,843 |
| 695,601 |
| 481,891 |
| 474,121 |
| |||||
Buildings & improvements under capital lease |
| 12,208 |
| 12,208 |
| 12,208 |
| 12,208 |
| 12,208 |
| |||||
|
| $ | 2,738,415 |
| $ | 2,495,978 |
| $ | 2,343,714 |
| $ | 2,222,922 |
| $ | 2,183,267 |
|
Less accumulated depreciation |
| (253,136 | ) | (236,727 | ) | (231,561 | ) | (219,295 | ) | (205,443 | ) | |||||
|
| $ | 2,485,279 |
| $ | 2,259,251 |
| $ | 2,112,153 |
| $ | 2,003,627 |
| $ | 1,977,824 |
|
Other Real Estate Investments: |
|
|
|
|
|
|
|
|
|
|
| |||||
Investment in unconsolidated joint ventures |
| 549,040 |
| 571,418 |
| 533,145 |
| 543,189 |
| 659,860 |
| |||||
Structured finance investments |
| 347,558 |
| 333,989 |
| 466,173 |
| 400,076 |
| 400,049 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Assets held for sale |
| 121,962 |
| 170,173 |
| — |
| — |
| — |
| |||||
Cash and cash equivalents |
| 176,444 |
| 14,184 |
| 20,535 |
| 24,104 |
| 14,193 |
| |||||
Restricted cash |
| 227,482 |
| 61,663 |
| 59,489 |
| 60,750 |
| 56,215 |
| |||||
Tenant and other receivables, net of $12,608 reserve at 9/30/06 |
| 32,037 |
| 27,115 |
| 21,011 |
| 23,722 |
| 21,928 |
| |||||
Related party receivables |
| 9,563 |
| 8,330 |
| 6,329 |
| 7,707 |
| 3,598 |
| |||||
Deferred rents receivable, net of reserve for tenant credit loss of $10,298 at 9/30/06 |
| 85,242 |
| 81,561 |
| 80,249 |
| 75,294 |
| 73,983 |
| |||||
Deferred costs, net |
| 74,223 |
| 73,747 |
| 77,145 |
| 79,428 |
| 68,518 |
| |||||
Other assets |
| 117,976 |
| 90,521 |
| 106,303 |
| 91,880 |
| 76,162 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Assets |
| $ | 4,226,806 |
| $ | 3,691,952 |
| $ | 3,482,532 |
| $ | 3,309,777 |
| $ | 3,352,330 |
|
12
COMPARATIVE BALANCE SHEETS
Unaudited ($000’s omitted) |
|
| 9/30/2006 |
| 6/30/2006 |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| |||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
| |||||
Mortgage notes payable |
| $ | 1,255,325 |
| $ | 1,078,999 |
| $ | 912,262 |
| $ | 885,252 |
| $ | 866,640 |
|
Unsecured & Secured term loans |
| 525,000 |
| 525,000 |
| 525,000 |
| 525,000 |
| 525,000 |
| |||||
Revolving credit facilities |
| — |
| 54,645 |
| 156,645 |
| 32,000 |
| 135,000 |
| |||||
Accrued interest |
| 9,353 |
| 7,991 |
| 7,706 |
| 7,711 |
| 7,589 |
| |||||
Accounts payable and accrued expenses |
| 96,741 |
| 84,977 |
| 69,079 |
| 87,390 |
| 77,329 |
| |||||
Deferred revenue |
| 63,358 |
| 49,045 |
| 30,759 |
| 25,691 |
| 25,596 |
| |||||
Capitalized lease obligations |
| 16,359 |
| 16,325 |
| 16,292 |
| 16,260 |
| 16,228 |
| |||||
Deferred land lease payable |
| 16,782 |
| 16,625 |
| 16,469 |
| 16,312 |
| 16,179 |
| |||||
Dividend and distributions payable |
| 33,247 |
| 31,725 |
| 31,408 |
| 31,103 |
| 28,176 |
| |||||
Security deposits |
| 28,368 |
| 30,075 |
| 28,218 |
| 24,556 |
| 23,962 |
| |||||
Liabilities related to assets held for sale |
| 95,379 |
| 95,379 |
| — |
| — |
| — |
| |||||
Junior subordinated deferrable interest debentures |
| 100,000 |
| 100,000 |
| 100,000 |
| 100,000 |
| 100,000 |
| |||||
Total Liabilities |
| $ | 2,239,912 |
| $ | 2,090,786 |
| $ | 1,893,838 |
| $ | 1,751,275 |
| $ | 1,821,699 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Minority interest in other partnerships |
| 56,929 |
| 37,164 |
| 34,693 |
| 25,012 |
| 14,493 |
| |||||
Minority interest in operating partnership (2,219 units outstanding) at 9/30/06 |
| 71,910 |
| 67,498 |
| 68,982 |
| 74,049 |
| 76,625 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
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, |
|
|
|
|
|
|
|
|
|
|
| |||||
45,774 issued and outstanding at 9/30/06 |
| 458 |
| 432 |
| 431 |
| 425 |
| 419 |
| |||||
Additional paid – in capital |
| 1,268,491 |
| 991,241 |
| 983,144 |
| 959,858 |
| 936,923 |
| |||||
Accumulated other comprehensive income |
| 13,060 |
| 20,009 |
| 19,750 |
| 15,316 |
| 13,691 |
| |||||
Retained earnings |
| 327,744 |
| 236,520 |
| 233,392 |
| 235,540 |
| 240,178 |
| |||||
Total Stockholders’ Equity |
| $ | 1,858,055 |
| $ | 1,496,504 |
| $ | 1,485,019 |
| $ | 1,459,441 |
| $ | 1,439,513 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Liabilities and Stockholders’ Equity |
| $ | 4,226,806 |
| $ | 3,691,952 |
| $ | 3,482,532 |
| $ | 3,309,777 |
| $ | 3,352,330 |
|
13
COMPARATIVE STATEMENTS OF OPERATIONS
Unaudited ($000’s omitted) |
|
| Three Months Ended |
| Three Months Ended |
| Nine Months Ended |
| |||||||||
|
| September 30, |
| September 30, |
| June 30, |
| September 30, |
| September 30, |
| |||||
|
| 2006 |
| 2005 |
| 2006 |
| 2006 |
| 2005 |
| |||||
Revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
Rental revenue, net |
| $ | 93,233 |
| $ | 72,575 |
| $ | 87,746 |
| $ | 263,904 |
| $ | 210,972 |
|
Escalation and reimbursement revenues |
| 19,891 |
| 15,474 |
| 16,258 |
| 51,171 |
| 39,553 |
| |||||
Investment income |
| 15,714 |
| 10,652 |
| 17,305 |
| 46,499 |
| 33,723 |
| |||||
Other income |
| 9,517 |
| 16,897 |
| 11,475 |
| 30,892 |
| 29,805 |
| |||||
Total Revenues, net |
| 138,355 |
| 115,598 |
| 132,784 |
| 392,466 |
| 314,053 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Equity in net income from unconsolidated joint ventures |
| 9,679 |
| 13,250 |
| 10,596 |
| 30,244 |
| 38,643 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating expenses |
| 34,920 |
| 27,213 |
| 29,258 |
| 93,662 |
| 72,529 |
| |||||
Ground rent |
| 4,846 |
| 4,835 |
| 4,921 |
| 14,687 |
| 14,089 |
| |||||
Real estate taxes |
| 19,101 |
| 14,638 |
| 19,090 |
| 56,613 |
| 43,553 |
| |||||
Marketing, general and administrative |
| 13,829 |
| 13,418 |
| 13,257 |
| 40,072 |
| 32,250 |
| |||||
Total Operating Expenses |
| 72,696 |
| 60,104 |
| 66,526 |
| 205,034 |
| 162,421 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
EBITDA |
| 75,338 |
| 68,744 |
| 76,854 |
| 217,676 |
| 190,275 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest |
| 24,764 |
| 20,580 |
| 22,901 |
| 66,515 |
| 57,253 |
| |||||
Amortization of deferred financing costs |
| 1,140 |
| 1,887 |
| 1,242 |
| 3,096 |
| 3,586 |
| |||||
Depreciation and amortization |
| 19,289 |
| 14,763 |
| 17,938 |
| 53,493 |
| 42,779 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income Before Minority Interest and Items |
| 30,145 |
| 31,514 |
| 34,773 |
| 94,572 |
| 86,657 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income from discontinued operations |
| 1,595 |
| 1,415 |
| 1,786 |
| 4,497 |
| 4,530 |
| |||||
Gain on sale of discontinued operations |
| 94,631 |
| — |
| — |
| 94,410 |
| 33,856 |
| |||||
Equity in net gain on sale of joint venture property |
| — |
| 11,550 |
| — |
| — |
| 11,550 |
| |||||
Minority interest |
| (2,713 | ) | (2,180 | ) | (2,530 | ) | (7,092 | ) | (4,979 | ) | |||||
Net Income |
| 123,658 |
| 42,299 |
| 34,029 |
| 186,387 |
| 131,614 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Dividends on perpetual preferred shares |
| 4,969 |
| 4,969 |
| 4,969 |
| 14,906 |
| 14,906 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net Income Available For Common Shareholders |
| $ | 118,689 |
| $ | 37,330 |
| $ | 29,060 |
| $ | 171,481 |
| $ | 116,708 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings per Share |
|
|
|
|
|
|
|
|
|
|
| |||||
Net income per share (basic) |
| $ | 2.62 |
| $ | 0.89 |
| $ | 0.67 |
| $ | 3.92 |
| $ | 2.80 |
|
Net income per share (diluted) |
| $ | 2.53 |
| $ | 0.87 |
| $ | 0.65 |
| $ | 3.78 |
| $ | 2.72 |
|
14
COMPARATIVE COMPUTATION OF FFO AND FAD Unaudited ($000’s omitted - except per share data) |
|
| Three Months Ended |
| Three Months Ended |
| Nine Months Ended |
| ||||||||||
|
| September 30, |
| September 30, |
| June 30, |
| September 30, |
| September 30, |
| ||||||
|
| 2006 |
| 2005 |
| 2006 |
| 2006 |
| 2005 |
| ||||||
Funds from operations |
|
|
|
|
|
|
|
|
|
|
| ||||||
Net Income before Minority Interests and Items |
| $ | 30,145 |
| $ | 31,514 |
| $ | 34,773 |
| $ | 94,572 |
| $ | 86,657 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Add: | Depreciation and amortization |
| 19,289 |
| 14,763 |
| 17,938 |
| 53,493 |
| 42,779 |
| |||||
| FFO from discontinued operations |
| 1,674 |
| 2,054 |
| 2,079 |
| 5,447 |
| 6,403 |
| |||||
| FFO adjustment for joint ventures |
| 9,648 |
| 8,549 |
| 7,613 |
| 25,241 |
| 22,282 |
| |||||
Less: | Dividends on preferred shares |
| 4,969 |
| 4,969 |
| 4,969 |
| 14,906 |
| 14,906 |
| |||||
| Non real estate depreciation and amortization |
| 240 |
| 207 |
| 240 |
| 747 |
| 577 |
| |||||
| Funds From Operations |
| $ | 55,547 |
| $ | 51,704 |
| $ | 57,194 |
| $ | 163,100 |
| $ | 142,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
| Funds From Operations - Basic per Share |
| $ | 1.17 |
| $ | 1.16 |
| $ | 1.26 |
| $ | 3.54 |
| $ | 3.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
| Funds From Operations - Diluted per Share |
| $ | 1.13 |
| $ | 1.13 |
| $ | 1.22 |
| $ | 3.42 |
| $ | 3.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Funds Available for Distribution |
|
|
|
|
|
|
|
|
|
|
| ||||||
FFO |
|
| $ | 55,547 |
| $ | 51,704 |
| $ | 57,194 |
| 163,100 |
| 142,638 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Add: | Non real estate depreciation and amortization |
| 240 |
| 207 |
| 240 |
| 747 |
| 577 |
| |||||
| Amortization of deferred financing costs |
| 1,140 |
| 1,887 |
| 1,242 |
| 3,096 |
| 3,586 |
| |||||
| Non-cash deferred compensation |
| 2,113 |
| 1,086 |
| 2,569 |
| 6,978 |
| 3,133 |
| |||||
Less: | FAD adjustment for Joint Ventures |
| 6,139 |
| 5,206 |
| 3,618 |
| 12,197 |
| 15,477 |
| |||||
| FAD adjustment for discontinued operations |
| 15 |
| 37 |
| 15 |
| 30 |
| 63 |
| |||||
| Straight-line rental income and other non cash adjustments |
| 4,517 |
| 4,144 |
| 5,164 |
| 15,303 |
| 14,129 |
| |||||
| Second cycle tenant improvements |
| 4,989 |
| 4,310 |
| 6,014 |
| 14,970 |
| 13,698 |
| |||||
| Second cycle leasing commissions |
| 976 |
| 2,601 |
| 785 |
| 5,733 |
| 6,873 |
| |||||
| Revenue enhancing recurring CAPEX |
| 138 |
| 73 |
| — |
| 427 |
| 183 |
| |||||
| Non- revenue enhancing recurring CAPEX |
| 2,228 |
| 440 |
| 1,617 |
| 4,104 |
| 746 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Funds Available for Distribution |
| $ | 40,038 |
| $ | 38,073 |
| $ | 44,032 |
| $ | 121,157 |
| $ | 98,766 |
| |
| Diluted per Share |
| $ | 0.81 |
| $ | 0.83 |
| $ | 0.94 |
| $ | 2.54 |
| $ | 2.17 |
|
First Cycle Leasing Costs |
|
|
|
|
|
|
|
|
|
|
| ||||||
| Tenant improvements |
| 1,091 |
| 2,459 |
| 824 |
| 3,306 |
| 3,717 |
| |||||
| Leasing commissions |
| 296 |
| 214 |
| 465 |
| 3,834 |
| 2,882 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Funds Available for Distribution after First Cycle Leasing Costs |
| $ | 38,651 |
| $ | 35,400 |
| $ | 42,743 |
| $ | 114,017 |
| $ | 92,167 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Funds Available for Distribution per Diluted Weighted Average Unit and Common Share |
| $ | 0.79 |
| $ | 0.78 |
| $ | 0.91 |
| $ | 2.39 |
| $ | 2.03 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Redevelopment Costs |
| 3,366 |
| $ | 2,971 |
| 4,113 |
| $ | 9,415 |
| $ | 5,808 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Payout Ratio of Funds From Operations |
| 53.16 | % | 47.70 | % | 49.20 | % | 52.66 | % | 51.59 | % | ||||||
Payout Ratio of Funds Available for Distribution Before First Cycle Leasing Costs |
| 73.75 | % | 64.78 | % | 63.91 | % | 70.89 | % | 74.51 | % |
15
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY Unaudited ($000’s omitted) |
|
|
|
|
|
|
|
|
|
|
|
| Accumulated |
|
|
| |||||||
|
| Series C |
| Series D |
|
|
|
|
|
|
| Other |
|
|
| |||||||
|
| Preferred |
| Preferred |
|
|
| Additional |
| Retained |
| Comprehensive |
|
|
| |||||||
|
| Stock |
| Stock |
| Common Stock |
| Paid-In Capital |
| Earnings |
| Income |
| TOTAL |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Balance at December 31, 2005 |
| $ | 151,981 |
| $ | 96,321 |
| $ | 425 |
| $ | 959,858 |
| $ | 235,540 |
| $ | 15,316 |
| $ | 1,459,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net Income |
|
|
|
|
|
|
|
|
| 186,387 |
|
|
| 186,387 |
| |||||||
Preferred Dividend |
|
|
|
|
|
|
|
|
| (14,906 | ) |
|
| (14,906 | ) | |||||||
Exercise of employee stock options |
|
|
|
|
| 4 |
| 13,515 |
|
|
|
|
| 13,519 |
| |||||||
Stock-based compensation fair value |
|
|
|
|
|
|
| 3,405 |
|
|
|
|
| 3,405 |
| |||||||
Cash distributions declared ($1.80 per common share) |
|
|
|
|
|
|
|
|
| (79,277 | ) |
|
| (79,277 | ) | |||||||
Comprehensive Income - Unrealized gain of derivative instruments |
|
|
|
|
|
|
|
|
|
|
| (2,256 | ) | (2,256 | ) | |||||||
Redemption of units and dividend reinvestment proceeds |
|
|
|
|
| 3 |
| 15,565 |
|
|
|
|
| 15,568 |
| |||||||
Net proceeds from common stock offering |
|
|
|
|
| 25 |
| 268,471 |
|
|
|
|
| 268,496 |
| |||||||
Deferred compensation plan |
|
|
|
|
| 1 |
| 380 |
|
|
|
|
| 381 |
| |||||||
Amortization of deferred compensation |
|
|
|
|
|
|
| 7,297 |
|
|
|
|
| 7,297 |
| |||||||
Balance at September 30, 2006 |
| $ | 151,981 |
| $ | 96,321 |
| $ | 458 |
| $ | 1,268,491 |
| $ | 327,744 |
| $ | 13,060 |
| $ | 1,858,055 |
|
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 |
| 3,317,950 |
| (208,261 | ) | — |
| 3,109,689 |
| — |
| 3,109,689 |
|
Share Count at September 30, 2006 - Basic |
| 45,773,779 |
| 2,218,525 |
| — |
| 47,992,304 |
| — |
| 47,992,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighting Factor |
| (1,989,372 | ) | 34,266 |
| 1,681,292 |
| (273,814 | ) |
|
| (273,814 | ) |
Weighted Average Share Count at September 30, 2006 - Diluted |
| 43,784,407 |
| 2,252,791 |
| 1,681,292 |
| 47,718,490 |
| — |
| 47,718,490 |
|
16
TAXABLE INCOME Unaudited ($000’s omitted) |
|
| Nine Months Ended |
| ||||
|
| September 30, |
| September 30, |
| ||
|
| 2006 |
| 2005 |
| ||
|
|
|
|
|
| ||
Net Income Available For Common Shareholders |
| $ | 171,481 |
| $ | 116,708 |
|
Book/Tax Depreciation Adjustment |
| (22,671 | ) | 3,318 |
| ||
Book/Tax Gain Recognition Adjustment |
| (3,555 | ) | (47,450 | ) | ||
Book/Tax JV Net equity adjustment |
| 17,341 |
| 3,902 |
| ||
Other Operating Adjustments |
| (41,366 | ) | (7,101 | ) | ||
C-corp Earnings |
| (2,931 | ) | (1,179 | ) | ||
Taxable Income (Projected) |
| $ | 118,299 |
| $ | 68,198 |
|
|
|
|
|
|
| ||
Dividend per share |
| $ | 1.80 |
| $ | 1.62 |
|
Estimated payout of taxable income |
| 70 | % | 100 | % | ||
|
|
|
|
|
| ||
Shares outstanding - basic |
| 45,774 |
| 41,942 |
|
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.
The 2006 estimated taxable income includes approximately $94.4 million of gains from asset sales. We expect to defer these gains for tax purposes through the use of various tax planning strategies. |
17
JOINT VENTURE STATEMENTS
Balance Sheet for Unconsolidated Property Joint Ventures Unaudited ($000’s omitted) |
|
| September 30, 2006 |
| September 30, 2005 |
| ||||||||
|
| Total Property |
| SLG Property Interest |
| Total Property |
| SLG Property Interest |
| ||||
Land & land interests |
| $ | 647,117 |
| $ | 292,830 |
| $ | 647,784 |
| $ | 287,853 |
|
Buildings & improvements fee interest |
| 2,907,955 |
| 1,308,663 |
| 2,690,114 |
| 1,195,595 |
| ||||
Buildings & improvements leasehold |
| 21,838 |
| 9,827 |
| — |
| — |
| ||||
|
| 3,576,910 |
| 1,611,320 |
| 3,337,898 |
| 1,483,448 |
| ||||
Less accumulated depreciation |
| (207,307 | ) | (97,634 | ) | (135,238 | ) | (64,230 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Real Estate | �� | 3,369,603 |
| 1,513,686 |
| 3,202,660 |
| 1,419,218 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents |
| 97,041 |
| 45,008 |
| 51,070 |
| 21,879 |
| ||||
Restricted cash |
| 31,150 |
| 14,643 |
| 29,938 |
| 12,096 |
| ||||
Tenant receivables, net of $1,746reserve at 9/30/06 |
| 12,506 |
| 5,855 |
| 5,824 |
| 2,692 |
| ||||
Deferred rents receivable, net of reserve for tenant credit loss of $2,492at 9/30/06 |
| 75,107 |
| 35,817 |
| 50,403 |
| 24,743 |
| ||||
Deferred costs, net |
| 77,783 |
| 33,083 |
| 48,127 |
| 23,298 |
| ||||
Other assets |
| 37,057 |
| 17,313 |
| 30,814 |
| 14,388 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total Assets |
| $ | 3,700,247 |
| $ | 1,665,405 |
| $ | 3,418,836 |
| $ | 1,518,314 |
|
|
|
|
|
|
|
|
|
|
| ||||
Mortgage loans payable |
| $ | 2,587,061 |
| $ | 1,181,397 |
| $ | 2,015,470 |
| $ | 911,959 |
|
Derivative Instruments-fair value |
| — |
| — |
| 25 |
| 14 |
| ||||
Accrued interest payable |
| 11,811 |
| 5,278 |
| 6,533 |
| 3,017 |
| ||||
Accounts payable and accrued expenses |
| 63,878 |
| 29,265 |
| 63,529 |
| 27,107 |
| ||||
Security deposits |
| 7,543 |
| 3,557 |
| 6,320 |
| 2,997 |
| ||||
Contributed Capital (1) |
| 1,029,954 |
| 445,908 |
| 1,326,959 |
| 573,220 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total Liabilities and Equity |
| $ | 3,700,247 |
| $ | 1,665,405 |
| $ | 3,418,836 |
| $ | 1,518,314 |
|
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 |
|
|
|
|
| |||||||
|
| Three Months Ended September 30, 2006 |
| June 30, 2006 |
| Three Months Ended September 30, 2005 |
| |||||||||||
|
|
|
| SLG |
| SLG |
|
|
| SLG |
| |||||||
|
| Total Property |
| Property Interest |
| Property Interest |
| Total Property |
| Property Interest |
| |||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
| |||||||
Rental Revenue, net |
| $ | 93,471 |
| $ | 46,957 |
| $ | 44,459 |
| $ | 91,681 |
| $ | 40,692 |
| ||
Escalation and reimbursement revenues |
| 18,231 |
| 9,311 |
| 9,025 |
| 17,222 |
| 7,447 |
| |||||||
Investment and other income |
| 7,621 |
| 2,821 |
| 835 |
| 5,624 |
| 2,603 |
| |||||||
Total Revenues, net |
| $ | 119,323 |
| $ | 59,089 |
| $ | 54,319 |
| $ | 114,527 |
| $ | 50,742 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
| |||||||
Operating expenses |
| $ | 26,919 |
| $ | 13,585 |
| $ | 11,835 |
| $ | 23,792 |
| $ | 10,765 |
| ||
Ground rent |
| 225 |
| 101 |
| 101 |
| — |
| — |
| |||||||
Real estate taxes |
| 17,706 |
| 8,816 |
| 8,549 |
| 15,983 |
| 7,207 |
| |||||||
Total Operating Expenses |
| $ | 44,850 |
| $ | 22,502 |
| $ | 20,485 |
| $ | 39,775 |
| $ | 17,972 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
GAAP NOI |
| $ | 74,473 |
| $ | 36,587 |
| $ | 33,834 |
| $ | 74,752 |
| $ | 32,770 |
| ||
Cash NOI |
| $ | 64,463 |
| $ | 31,592 |
| $ | 30,533 |
| $ | 67,627 |
| $ | 29,909 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest |
| 36,061 |
| 19,226 |
| 17,187 |
| 28,689 |
| 12,907 |
| |||||||
Amortization of deferred financing costs |
| 1,200 |
| 694 |
| 760 |
| 1,421 |
| 617 |
| |||||||
Depreciation and amortization |
| 21,402 |
| 10,625 |
| 8,491 |
| 18,403 |
| 8,146 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net Income |
| $ | 15,810 |
| $ | 6,042 |
| $ | 7,396 |
| $ | 26,239 |
| $ | 11,100 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Plus: Real estate depreciation |
| 21,400 |
| 10,624 |
| 8,491 |
| 18,403 |
| 8,146 |
| |||||||
Funds From Operations |
| $ | 37,210 |
| $ | 16,666 |
| $ | 15,887 |
| $ | 44,642 |
| $ | 19,246 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
FAD Adjustments: |
|
|
|
|
|
|
|
|
|
|
| |||||||
Plus: Non real estate depreciation and amortization |
| $ | 1,202 |
| $ | 695 |
| $ | 760 |
| $ | 1,421 |
| $ | 617 |
| ||
Less: Straight-line rental income and other non-cash adjustments |
| (10,010 | ) | (4,995 | ) | (3,302 | ) | (7,125 | ) | (2,861 | ) | |||||||
Less: Second cycle tenant improvement |
| (74 | ) | (45 | ) | (569 | ) | (4,523 | ) | (2,030 | ) | |||||||
Less: Second cycle leasing commissions |
| (3,561 | ) | (1,553 | ) | (128 | ) | (1,610 | ) | (748 | ) | |||||||
Less: Recurring CAPEX |
| (426 | ) | (241 | ) | (379 | ) | (389 | ) | (184 | ) | |||||||
FAD Adjustment |
| $ | (12,869 | ) | $ | (6,139 | ) | $ | (3,618 | ) | $ | (12,226 | ) | $ | (5,206 | ) | ||
19
JOINT VENTURE STATEMENTS
Statements of Operations for Unconsolidated Property Joint Ventures Unaudited ($000’s omitted) |
|
| Nine Months Ended September 30, 2006 |
| Nine Months Ended September 30, 2005 |
| ||||||||
|
|
|
| SLG |
|
|
| SLG |
| ||||
|
| Total Property |
| Property Interest |
| Total Property |
| Property Interest |
| ||||
Revenues |
|
|
|
|
|
|
|
|
| ||||
Rental Revenue, net |
| $ | 272,431 |
| $ | 134,006 |
| $ | 253,092 |
| $ | 114,070 |
|
Escalation and reimbursement revenues |
| 55,103 |
| 27,388 |
| 45,095 |
| 20,595 |
| ||||
Investment and other income |
| 11,193 |
| 4,634 |
| 6,298 |
| 3,017 |
| ||||
Total Revenues, net |
| $ | 338,727 |
| $ | 166,028 |
| $ | 304,485 |
| $ | 137,682 |
|
|
|
|
|
|
|
|
|
|
| ||||
Expenses |
|
|
|
|
|
|
|
|
| ||||
Operating expenses |
| $ | 75,676 |
| $ | 37,397 |
| $ | 64,592 |
| $ | 29,695 |
|
Ground rent |
| 675 |
| 303 |
| — |
| — |
| ||||
Real estate taxes |
| 52,727 |
| 25,777 |
| 47,814 |
| 21,877 |
| ||||
Total Operating Expenses |
| $ | 129,078 |
| $ | 63,477 |
| $ | 112,406 |
| $ | 51,572 |
|
|
|
|
|
|
|
|
|
|
| ||||
GAAP NOI |
| $ | 209,649 |
| $ | 102,551 |
| $ | 192,079 |
| $ | 86,110 |
|
Cash NOI |
| $ | 184,894 |
| $ | 91,519 |
| $ | 170,792 |
| $ | 76,611 |
|
|
|
|
|
|
|
|
|
|
| ||||
Interest |
| 99,877 |
| 51,991 |
| 66,985 |
| 29,414 |
| ||||
Amortization of deferred financing costs |
| 4,012 |
| 2,225 |
| 3,577 |
| 1,630 |
| ||||
Depreciation and amortization |
| 56,611 |
| 27,568 |
| 48,536 |
| 21,578 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income |
| $ | 49,149 |
| $ | 20,767 |
| $ | 72,981 |
| $ | 33,488 |
|
|
|
|
|
|
|
|
|
|
| ||||
Plus: Real estate depreciation |
| 56,609 |
| 27,567 |
| 48,536 |
| 21,578 |
| ||||
Funds From Operations |
| $ | 105,758 |
| $ | 48,334 |
| $ | 121,517 |
| $ | 55,066 |
|
|
|
|
|
|
|
|
|
|
| ||||
FAD Adjustments: |
|
|
|
|
|
|
|
|
| ||||
Plus: Non real estate depreciation and amortization |
| $ | 4,014 |
| $ | 2,226 |
| $ | 3,577 |
| $ | 1,630 |
|
Less: Straight-line rental income and other non-cash adjustments |
| (24,750 | ) | (11,030 | ) | (21,186 | ) | (9,496 | ) | ||||
Less: Second cycle tenant improvement |
| (2,168 | ) | (1,016 | ) | (10,294 | ) | (4,442 | ) | ||||
Less: Second cycle leasing commissions |
| (4,013 | ) | (1,740 | ) | (5,785 | ) | (2,907 | ) | ||||
Less: Recurring CAPEX |
| (1,145 | ) | (637 | ) | (535 | ) | (261 | ) | ||||
FAD Adjustment |
| $ | (28,062 | ) | $ | (12,197 | ) | $ | (34,223 | ) | $ | (15,476 | ) |
20
Gramercy Joint Venture Statements
Unaudited ($000’s omitted) |
Balance Sheets
|
| September 30, |
| June 30, |
| ||
|
| 2006 |
| 2006 |
| ||
Assets |
|
|
|
|
| ||
Cash |
| $ | 39,842 |
| $ | 38,055 |
|
Loans and other lending investments, net |
| 2,064,058 |
| 1,655,566 |
| ||
Investment in joint ventures |
| 58,512 |
| 59,243 |
| ||
Operating real estate, net |
| 94,298 |
| 83,988 |
| ||
Other assets |
| 283,244 |
| 130,784 |
| ||
Total Assets |
| $ | 2,539,954 |
| $ | 1,967,636 |
|
|
|
|
|
|
| ||
Liabilities and Stockholders’ Equity |
|
|
|
|
| ||
Repurchase agreement |
| $ | 58,739 |
| $ | 393,170 |
|
Collateralized debt obligation |
| 1,714,250 |
| 810,500 |
| ||
Mortgage note payable |
| 94,525 |
| 94,525 |
| ||
Other liabilities |
| 68,649 |
| 61,153 |
| ||
Junior subordinated deferrable interest debentures |
| 150,000 |
| 150,000 |
| ||
Total Liabilities |
| 2,086,163 |
| 1,509,348 |
| ||
|
|
|
|
|
| ||
Minority interest in operating real estate |
|
|
|
|
| ||
|
|
|
|
|
| ||
Stockholders’ Equity |
|
|
|
|
| ||
Total stockholders’ equity |
| 453,791 |
| 458,288 |
| ||
|
|
|
|
|
| ||
Total Liabilities and Stockholders’ Equity |
| $ | 2,539,954 |
| $ | 1,967,636 |
|
|
|
|
|
|
| ||
Total Outstanding Shares |
| 25,835 |
| 25,818 |
| ||
|
|
|
|
|
| ||
Total SLG Shares |
| 6,418 |
| 6,418 |
| ||
|
|
|
|
|
| ||
SLG Investment in Gramercy at Cost |
| $ | 113,682 |
| $ | 113,682 |
|
Income Statements
|
| Three Months Ended |
| Nine Months Ended |
| ||||||||
|
| September 30, |
| September 30, |
| September 30, |
| September 30, |
| ||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
Revenues |
|
|
|
|
|
|
|
|
| ||||
Investment Income |
| $ | 45,299 |
| $ | 21,060 |
| $ | 116,313 |
| $ | 46,999 |
|
Rental Revenue - net |
| — |
| 314 |
| 914 |
| 314 |
| ||||
Other income |
| 5,156 |
| 5,218 |
| 13,724 |
| 8,727 |
| ||||
Total revenues |
| 50,455 |
| 26,592 |
| 130,951 |
| 56,040 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Expenses |
|
|
|
|
|
|
|
|
| ||||
Interest |
| 25,782 |
| 11,250 |
| 64,280 |
| 20,316 |
| ||||
Management fees |
| 4,409 |
| 2,726 |
| 11,793 |
| 6,264 |
| ||||
Incentive fees |
| 1,822 |
| 1,038 |
| 4,592 |
| 1,038 |
| ||||
Depreciation and amortization |
| 278 |
| 105 |
| 962 |
| 232 |
| ||||
Marketing, general and administrative |
| 2,169 |
| 1,456 |
| 7,719 |
| 4,722 |
| ||||
Provision for loan loss |
| (70 | ) | 430 |
| 430 |
| 955 |
| ||||
Total expenses |
| 34,390 |
| 17,005 |
| 89,776 |
| 33,527 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations before equity in net loss |
|
|
|
|
|
|
|
|
| ||||
of unconsolidated joint ventures, minority interest and taxes |
| 16,065 |
| 9,587 |
| 41,175 |
| 22,513 |
| ||||
Equity in net loss of unconsolidated joint ventures |
| (734 | ) | (510 | ) | (2,090 | ) | (914 | ) | ||||
Income from continuing operations before minority interest and taxes |
| 15,331 |
| 9,077 |
| 39,085 |
| 21,599 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Provision for taxes |
| (795 | ) | (500 | ) | (1,178 | ) | (1,000 | ) | ||||
Net income available to common shareholders |
| 14,536 |
| 8,577 |
| 37,907 |
| 20,599 |
| ||||
Plus: Real estate depreciation |
| 1,948 |
| 1,870 |
| 6,045 |
| 3,070 |
| ||||
FFO |
| $ | 16,484 |
| $ | 10,447 |
| $ | 43,952 |
| $ | 23,669 |
|
|
|
|
|
|
|
|
|
|
| ||||
SLG share of net income |
| $ | 3,638 |
| $ | 2,144 |
| $ | 9,478 |
| $ | 5,150 |
|
|
|
|
|
|
|
|
|
|
| ||||
SLG share of FFO |
| $ | 4,125 |
| $ | 2,610 |
| $ | 10,987 |
| $ | 5,919 |
|
GKK Manager
|
| Three Months Ended |
| Nine Months Ended |
| ||||||||
|
| September 30, |
| September 30, |
| September 30, |
| September 30, |
| ||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
Base management income |
| $ | 2,704 |
| $ | 1,676 |
| $ | 7,441 |
| $ | 4,209 |
|
Other fee income |
| 2,583 |
| 1,038 |
| 6,360 |
| 1,786 |
| ||||
Marketing, general and administrative expenses |
| (2,223 | ) | (2,571 | ) | (6,159 | ) | (5,230 | ) | ||||
Net Income before minority interest |
| 3,064 |
| 143 |
| 7,642 |
| 765 |
| ||||
Less: minority interest |
| (1,047 | ) | (47 | ) | (2,612 | ) | (172 | ) | ||||
SLG share of GKK Manager net income |
| 2,017 |
| 96 |
| 5,030 |
| 593 |
| ||||
Servicing and administrative reimbursements |
| 949 |
| 610 |
| 2,592 |
| 1,617 |
| ||||
Net management income and reimbursements from Gramercy |
| $ | 2,966 |
| $ | 706 |
| $ | 7,622 |
| $ | 2,210 |
|
21
SELECTED FINANCIAL DATA
Capitalization Analysis Unaudited ($000’s omitted) |
|
| 9/30/2006 |
| 6/30/2006 |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| |||||
Market Capitalization |
|
|
|
|
|
|
|
|
|
|
| |||||
Common Equity: |
|
|
|
|
|
|
|
|
|
|
| |||||
Common Shares Outstanding |
| 45,774 |
| 43,226 |
| 43,133 |
| 42,456 |
| 41,942 |
| |||||
OP Units Outstanding |
| 2,219 |
| 2,219 |
| 2,263 |
| 2,427 |
| 2,502 |
| |||||
Total Common Equity (Shares and Units) |
| 47,993 |
| 45,445 |
| 45,396 |
| 44,883 |
| 44,444 |
| |||||
Share Price (End of Period) |
| $ | 111.70 |
| $ | 109.47 |
| $ | 101.50 |
| $ | 76.39 |
| $ | 68.18 |
|
Equity Market Value |
| $ | 5,360,818 |
| $ | 4,974,864 |
| $ | 4,607,694 |
| $ | 3,428,612 |
| $ | 3,030,192 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Preferred Equity at Liquidation Value: |
| 257,500 |
| 257,500 |
| 257,500 |
| 257,500 |
| 257,500 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Real Estate Debt |
|
|
|
|
|
|
|
|
|
|
| |||||
Property Level Mortgage Debt |
| 1,255,325 |
| 1,078,999 |
| 912,262 |
| 885,252 |
| 866,640 |
| |||||
Outstanding Balance on - Term Loans |
| 525,000 |
| 525,000 |
| 525,000 |
| 525,000 |
| 525,000 |
| |||||
Outstanding Balance on – Unsecured Credit Line |
| - |
| 54,645 |
| 156,645 |
| 32,000 |
| 135,000 |
| |||||
Junior Subordinated Deferrable Interest Debentures |
| 100,000 |
| 100,000 |
| 100,000 |
| 100,000 |
| 100,000 |
| |||||
Liability Held for Sale |
| 95,000 |
| 95,000 |
| — |
| — |
| — |
| |||||
Total Consolidated Debt |
| 1,975,325 |
| 1,853,644 |
| 1,693,907 |
| 1,542,252 |
| 1,626,640 |
| |||||
Company’s Portion of Joint Venture Debt |
| 1,181,397 |
| 1,179,332 |
| 1,111,160 |
| 1,040,265 |
| 911,959 |
| |||||
Total Combined Debt |
| 3,156,722 |
| 3,032,976 |
| 2,805,067 |
| 2,582,517 |
| 2,538,599 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Market Cap (Debt & Equity) |
| $ | 8,775,040 |
| $ | 8,265,340 |
| $ | 7,670,261 |
| $ | 6,268,629 |
| $ | 5,826,291 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Availability under Lines of Credit |
|
|
|
|
|
|
|
|
|
|
| |||||
Senior Unsecured Line of Credit |
| 486,482 | (A) | 431,837 |
| 329,275 |
| 453,920 |
| 359,612 |
| |||||
Term Loans |
| — |
| — |
| — |
| — |
| — |
| |||||
Total Availability |
| $ | 486,482 |
| $ | 431,837 |
| $ | 329,275 |
| $ | 453,920 |
| $ | 359,612 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Combined Capitalized Interest |
| $ | 5,069 |
| $ | 4,342 |
| $ | 4,291 |
| $ | 2,388 |
| $ | 2,161 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ratio Analysis |
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated Basis |
|
|
|
|
|
|
|
|
|
|
| |||||
Debt to Market Cap Ratio |
| 26.01 | % | 26.16 | % | 25.83 | % | 29.50 | % | 33.10 | % | |||||
Debt to Gross Real Estate Book Ratio |
| 69.65 | % | 69.79 | % | 72.65 | % | 69.76 | % | 74.92 | % | |||||
Secured Real Estate Debt to Secured Assets Gross Book |
| 75.11 | % | 74.76 | % | 72.62 | % | 75.60 | % | 75.41 | % | |||||
Unsecured Debt to Unencumbered Assets-Gross Book Value |
| 41.37 | % | 44.60 | % | 54.55 | % | 44.28 | % | 55.21 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Joint Ventures Allocated |
|
|
|
|
|
|
|
|
|
|
| |||||
Combined Debt to Market Cap Ratio |
| 35.97 | % | 36.70 | % | 36.57 | % | 41.20 | % | 43.57 | % | |||||
Debt to Gross Real Estate Book Ratio |
| 72.78 | % | 74.19 | % | 72.37 | % | 69.82 | % | 69.46 | % | |||||
Secured Debt to Secured Assets Gross Book |
| 74.26 | % | 74.13 | % | 72.25 | % | 72.17 | % | 67.56 | % |
(A) As reduced by $13,518 letter of credit
22
SELECTED FINANCIAL DATA
Property NOI and Coverage Ratios Unaudited ($000’s omitted) |
|
| Three Months Ended |
| Three Months Ended |
| Nine Months Ended |
| ||||||||||
|
| September 30, |
| September 30, |
| June 30, |
| September 30, |
| September 30, |
| ||||||
|
| 2006 |
| 2005 |
| 2006 |
| 2006 |
| 2005 |
| ||||||
Property NOI |
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Property Operating NOI |
| $ | 54,257 |
| $ | 41,363 |
| $ | 50,735 |
| $ | 150,113 |
| $ | 120,354 |
| |
NOI from Discontinued Operations |
| 1,674 |
| 2,055 |
| 2,079 |
| 5,447 |
| 4,890 |
| ||||||
Total Property Operating NOI - Consolidated |
| 55,931 |
| 43,418 |
| 52,814 |
| 155,560 |
| 125,244 |
| ||||||
SLG share of Property NOI from JVs |
| 36,587 |
| 32,770 |
| 33,834 |
| 102,551 |
| 86,110 |
| ||||||
GAAP NOI |
| $ | 92,518 |
| $ | 76,188 |
| $ | 86,648 |
| $ | 258,111 |
| $ | 211,354 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Less: | Free Rent (Net of Amortization) |
| 2,566 |
| 2,024 |
| 1,742 |
| 6,529 |
| 9,770 |
| |||||
| Net FAS 141 Adjustment |
| 1,004 |
| 587 |
| 1,052 |
| 2,845 |
| 1,919 |
| |||||
| Straightline Revenue Adjustment |
| 7,028 |
| 5,753 |
| 6,693 |
| 20,079 |
| 15,895 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Plus: | Allowance for S/L tenant credit loss |
| 1,000 |
| 1,253 |
| 951 |
| 2,884 |
| 3,796 |
| |||||
| Ground Lease Straight-line Adjustment |
| 157 |
| 136 |
| 157 |
| 471 |
| 456 |
| |||||
Cash NOI |
| $ | 83,077 |
| $ | 69,213 |
| $ | 78,269 |
| $ | 232,013 |
| $ | 188,022 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Components of Debt Service and Fixed Charges |
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Expense |
| 24,960 |
| 20,760 |
| 23,093 |
| 67,092 |
| 58,052 |
| ||||||
Fixed Amortization Principal Payments |
| 961 |
| 883 |
| 941 |
| 2,927 |
| 2,571 |
| ||||||
Total Consolidated Debt Service |
| 25,921 |
| 21,643 |
| 24,034 |
| 70,019 |
| 60,623 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Payments under Ground Lease Arrangements |
| 4,764 |
| 4,786 |
| 4,851 |
| 14,466 |
| 13,894 |
| ||||||
Dividend on perpetual preferred shares |
| 4,969 |
| 4,969 |
| 4,969 |
| 14,907 |
| 14,907 |
| ||||||
Total Consolidated Fixed Charges |
| 35,654 |
| 31,398 |
| 33,854 |
| 99,392 |
| 89,424 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Adjusted EBITDA |
| 89,660 |
| 80,141 |
| 88,942 |
| 256,704 |
| 220,201 |
| ||||||
Interest Coverage Ratio |
| 3.50 |
| 3.86 |
| 3.77 |
| 3.66 |
| 3.79 |
| ||||||
Debt Service Coverage Ratio |
| 3.38 |
| 3.70 |
| 3.63 |
| 3.51 |
| 3.63 |
| ||||||
Fixed Charge Coverage Ratio |
| 2.47 |
| 2.55 |
| 2.59 |
| 2.51 |
| 2.46 |
|
23
SELECTED FINANCIAL DATA 2006 Same Store - Consolidated Unaudited ($000’s omitted) |
|
|
|
| Three Months Ended |
| Three Months Ended |
| Nine Months Ended |
| ||||||||
|
|
|
| September 30, |
| September 30, |
|
|
| June 30, |
| September 30, |
| September 30, |
|
|
|
|
|
|
| 2006 |
| 2005 |
| % |
| 2006 |
| 2006 |
| 2005 |
| % |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental Revenue, net |
| 76,633 |
| 71,801 |
| 7 | % | 75,683 |
| 226,927 |
| 214,104 |
| 6 | % |
|
| Escalation & Reimbursement Revenues |
| 16,747 |
| 14,042 |
| 19 | % | 14,179 |
| 44,564 |
| 37,026 |
| 20 | % |
|
| Investment Income |
| 418 |
| 200 |
| 109 | % | 316 |
| 961 |
| 500 |
| 92 | % |
|
| Other Income |
| 1,081 |
| 723 |
| 50 | % | 360 |
| 3,750 |
| 2,428 |
| 54 | % |
|
| Total Revenues |
| 94,879 |
| 86,766 |
| 9 | % | 90,538 |
| 276,202 |
| 254,058 |
| 9 | % |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Expense |
| 28,026 |
| 25,188 |
| 11 | % | 23,381 |
| 75,825 |
| 68,812 |
| 10 | % |
|
| Ground Rent |
| 4,750 |
| 4,835 |
| -2 | % | 4,825 |
| 14,399 |
| 14,089 |
| 2 | % |
|
| Real Estate Taxes |
| 16,372 |
| 15,613 |
| 5 | % | 16,887 |
| 50,301 |
| 47,379 |
| 6 | % |
|
|
|
| 49,148 |
| 45,636 |
| 8 | % | 45,093 |
| 140,525 |
| 130,280 |
| 8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
| 45,731 |
| 41,130 |
| 11 | % | 45,445 |
| 135,677 |
| 123,778 |
| 10 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense & Amortization of Financing costs |
| 11,071 |
| 11,169 |
| -1 | % | 11,018 |
| 33,042 |
| 32,190 |
| 3 | % |
|
| Depreciation & Amortization |
| 14,150 |
| 13,114 |
| 8 | % | 14,066 |
| 42,011 |
| 38,560 |
| 9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income Before Minority Interest |
| 20,510 |
| 16,847 |
| 22 | % | 20,361 |
| 60,624 |
| 53,028 |
| 14 | % |
Plus: |
| Real Estate Depreciation & Amortization |
| 14,138 |
| 13,104 |
| 8 | % | 14,056 |
| 41,979 |
| 38,531 |
| 9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO |
| 34,648 |
| 29,951 |
| 16 | % | 34,417 |
| 102,603 |
| 91,559 |
| 12 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
| Non – Building Revenue |
| 464 |
| 379 |
| 22 | % | 531 |
| 1,386 |
| 1,069 |
| 30 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: |
| Interest Expense & Amortization of Financing costs |
| 11,071 |
| 11,169 |
| -1 | % | 11,018 |
| 33,042 |
| 32,190 |
| 3 | % |
|
| Non Real Estate Depreciation |
| 12 |
| 10 |
| 20 | % | 10 |
| 31 |
| 29 |
| 7 | % |
|
| GAAP NOI |
| 45,267 |
| 40,751 |
| 11 | % | 44,914 |
| 134,290 |
| 122,709 |
| 9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Less: |
| Free Rent (Net of Amortization) |
| 426 |
| 1,621 |
| -74 | % | 1,453 |
| 3,893 |
| 6,781 |
| -43 | % |
|
| Straightline Revenue Adjustment |
| 3,269 |
| 2,553 |
| 28 | % | 3,191 |
| 9,718 |
| 7,897 |
| 23 | % |
|
| Rental Income - FAS 141 |
| 293 |
| 293 |
| 0 | % | 289 |
| 867 |
| 867 |
| 0 | % |
Plus: |
| Allowance for S/L tenant credit loss |
| 638 |
| 883 |
| -28 | % | 696 |
| 2,015 |
| 2,752 |
| -27 | % |
|
| Ground Lease Straight-line Adjustment |
| 87 |
| 136 |
| -36 | % | 87 |
| 260 |
| 456 |
| -43 | % |
|
| Cash NOI |
| 42,004 |
| 37,303 |
| 13 | % | 40,764 |
| 122,087 |
| 110,372 |
| 11 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margins |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| GAAP NOI to Real Estate Revenue, net |
| 47.62 | % | 46.70 | % |
|
| 49.52 | % | 48.51 | % | 47.98 | % |
|
|
|
| Cash NOI to Real Estate Revenue, net |
| 44.19 | % | 42.74 | % |
|
| 44.94 | % | 44.10 | % | 43.16 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP NOI before Ground Rent/Real Estate Revenue, net |
| 52.62 | % | 52.24 | % |
|
| 54.84 | % | 53.71 | % | 53.49 | % |
|
|
|
| Cash NOI before Ground Rent/Real Estate Revenue, net |
| 49.10 | % | 48.13 | % |
|
| 50.17 | % | 49.21 | % | 48.49 | % |
|
|
24
SELECTED FINANCIAL DATA 2006 Same Store - Joint Venture Unaudited ($000’s omitted) |
|
|
|
| Three Months Ended |
| Nine Months Ended |
| ||||||||
|
|
|
| September 30, |
| September 30, |
|
|
| September 30, |
| September 30, |
|
|
|
|
|
|
| 2006 |
| 2005 |
| % |
| 2006 |
| 2005 |
| % |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Rental Revenue, net |
| 33,702 |
| 33,006 |
| 2 | % | 101,266 |
| 99,680 |
| 2 | % |
|
| Escalation & Reimbursement Revenues |
| 8,762 |
| 7,525 |
| 16 | % | 26,016 |
| 21,117 |
| 23 | % |
|
| Investment Income |
| 517 |
| 81 |
| 542 | % | 1,176 |
| 240 |
| 390 | % |
|
| Other Income |
| 2,094 |
| 2,371 |
| -12 | % | 2,903 |
| 2,430 |
| 19 | % |
|
| Total Revenues |
| 45,075 |
| 42,983 |
| 5 | % | 131,361 |
| 123,467 |
| 6 | % |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Operating Expense |
| 11,676 |
| 10,863 |
| 7 | % | 33,732 |
| 29,610 |
| 14 | % |
|
| Ground Rent |
| — |
| — |
|
|
| — |
|
|
|
|
|
|
| Real Estate Taxes |
| 7,954 |
| 7,483 |
| 6 | % | 24,230 |
| 22,487 |
| 8 | % |
|
|
|
| 19,630 |
| 18,346 |
| 7 | % | 57,962 |
| 52,097 |
| 11 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
| 25,445 |
| 24,637 |
| 3 | % | 73,399 |
| 71,370 |
| 3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense & Amortization of Financing costs |
| 11,405 |
| 7,097 |
| 61 | % | 32,437 |
| 19,167 |
| 69 | % |
|
| Depreciation & Amortization |
| 6,142 |
| 5,877 |
| 4 | % | 18,177 |
| 17,310 |
| 5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income Before Minority Interest |
| 7,899 |
| 11,662 |
| -32 | % | 22,785 |
| 34,893 |
| -35 | % |
Plus: |
| Real Estate Depreciation & Amortization |
| 6,141 |
| 5,877 |
| 4 | % | 18,175 |
| 17,308 |
| 5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO |
| 14,040 |
| 17,539 |
| -20 | % | 40,960 |
| 52,201 |
| -22 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
| Non – Building Revenue |
| 521 |
| 84 |
| 520 | % | 1,192 |
| 252 |
| 373 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: |
| Interest Expense & Amortization of Financing costs |
| 11,405 |
| 7,097 |
| 61 | % | 32,437 |
| 19,167 |
| 69 | % |
|
| Non Real Estate Depreciation |
| 1 |
| 0 |
| 10 | % | 2 |
| 2 |
| 19 | % |
GAAP NOI |
| 24,924 |
| 24,553 |
| 2 | % | 72,207 |
| 71,118 |
| 2 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Less: |
| Free Rent (Net of Amortization) |
| 392 |
| 170 |
| 131 | % | 24 |
| 2,830 |
| -99 | % |
|
| Straightline Revenue Adjustment |
| 1,021 |
| 1,316 |
| -22 | % | 3,451 |
| 4,716 |
| -27 | % |
|
| FAS 141 |
| 245 |
| 245 |
| 0 | % | 733 |
| 733 |
| 0 | % |
Plus: |
| Allowance for S/L tenant credit loss |
| 154 |
| 261 |
| -41 | % | 383 |
| 809 |
| -53 | % |
|
| Ground Lease Straight-line Adjustment |
| — |
| — |
| — |
| — |
|
|
|
|
|
Cash NOI |
| 23,420 |
| 23,084 |
| 1 | % | 68,382 |
| 63,647 |
| 7 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margins |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| GAAP NOI to Real Estate Revenue, net |
| 55.75 | % | 56.89 | % |
|
| 55.31 | % | 57.34 | % |
|
|
|
| Cash NOI to Real Estate Revenue, net |
| 52.38 | % | 53.48 | % |
|
| 52.38 | % | 51.32 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP NOI before Ground Rent/Real Estate Revenue, net |
| 55.75 | % | 56.89 | % |
|
| 55.31 | % | 57.34 | % |
|
|
|
| Cash NOI before Ground Rent/Real Estate Revenue, net |
| 52.38 | % | 53.48 | % |
|
| 52.38 | % | 51.32 | % |
|
|
25
DEBT SUMMARY SCHEDULE
($000’s omitted) |
|
|
|
| Principal O/S |
|
|
| 2006 |
|
|
|
|
| As-Of |
|
|
|
|
|
|
| Outstanding |
|
|
| Principal |
| Maturity |
| Due at |
| Right |
| Earliest |
|
|
|
|
| 9/30/2006 (5) |
| Coupon |
| Repayment |
| Date |
| Maturity |
| Extension |
| Prepayment |
|
Fixed rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured fixed Rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125 Broad Street |
|
|
| 74,196 |
| 8.29 | % | 803 |
| Oct-07 |
| 73,341 |
| — |
| Open |
|
673 First Avenue |
|
|
| 33,986 |
| 5.67 | % | 657 |
| Feb-13 |
| 28,984 |
| — |
| Feb-06 |
|
70 W. 36th Street |
|
|
| 11,255 |
| 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 |
|
|
| 115,778 |
| 8.44 | % | 2,284 |
| Nov-10 |
| 104,691 |
| — |
| Open |
|
625 Madision Avenue |
|
|
| 102,000 |
| 6.27 | % | 166 |
| Nov-15 |
| 78,595 |
| — |
| Open |
|
609 Fifth Avenue |
|
|
| 102,000 |
| 5.85 | % | 209 |
| Oct-13 |
| 91,342 |
| — |
| Jul-13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 769,215 |
| 6.25 | % | 4,333 |
|
|
| 689,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured fixed Rate Debt-Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Secured Term Loan (Libor + 125 bps) (1) |
|
|
| 160,000 |
| 5.57 | % | — |
| May-10 |
| 154,923 |
| — |
| — |
|
609 Partners, LLC |
|
|
| 63,891 |
| 5.00 | % | — |
| Jun-16 |
| 63,891 |
| — |
| Jun-08 |
|
|
|
|
| 223,891 |
| 5.41 | % | — |
|
|
| 218,814 |
|
|
|
|
|
Unsecured fixed rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Unsecured Term Loan (Libor swap + 140bps) (2) |
|
|
| 325,000 |
| 5.07 | % | — |
| Aug-09 |
| 325,000 |
| — |
| Aug-07 |
|
Junior Subordinated Deferrable Interest Debentures |
|
|
| 100,000 |
| 5.61 | % | — |
| Jul-15 |
| 100,000 |
| — |
| — |
|
|
|
|
| 425,000 |
| 5.20 | % | — |
|
|
| 425,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Fixed Rate Debt/Wtd Avg |
| 1,418,106 |
| 5.80 | % | 4,333 |
|
|
| 1,333,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured floating rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Secured Term Loan (Libor + 125 bps) |
|
|
| 40,000 |
| 6.64 | % | — |
| May-10 |
| 40,000 |
| — |
| — |
|
1551/1555 Broadway & 21 W. 34th Street (Libor + 200 bps) (3) |
|
|
| 96,762 |
| 7.36 | % | — |
| Aug-08 |
| 96,762 |
| — |
| Open |
|
141 Fifth Avenue |
|
|
| 10,457 |
| 7.59 | % | — |
| Sep-07 |
| 10,457 |
| Sep-10 |
| — |
|
521 Fifth Avenue |
|
|
| 140,000 |
| 6.35 | % | — |
| Apr-11 |
| 140,000 |
| — |
| Open |
|
717 Fifth Avenue |
|
|
| 175,000 |
| 6.93 | % | — |
| Sep-08 |
| 175,000 |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 462,219 |
| 6.83 | % | — |
|
|
| 462,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured floating rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Unsecured Line of Credit |
|
|
| — |
| 6.43 | % | — |
| Sep-08 |
| — |
| Aug-09 |
| Open |
|
|
|
|
| — |
| 6.43 | % | — |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Floating Rate Debt/Wtd Avg |
| 462,219 |
| 6.83 | % | — |
|
|
| 462,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Debt/Wtd Avg |
| 1,880,325 |
| 6.06 | % | 4,333 |
|
|
| 1,796,009 |
|
|
|
|
|
Weighted Average Balance & Interest Rate |
|
|
| 1,766,470 |
| 6.00 | % |
|
|
|
|
|
|
|
|
|
|
SUMMARY OF JOINT VENTURE DEBT
|
| Principal O/S |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Gross Principal |
| SLG Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint Venture Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1250 Broadway (Libor + 120bps) |
| 115,000 |
| 63,250 |
| 6.56 | % | — |
| Aug-06 |
| 63,250 |
| Aug-09 |
| Open |
|
1221 Avenue of Americas (Libor + 75bps) (4) |
| 170,000 |
| 76,500 |
| 5.78 | % | — |
| Dec-10 |
| 76,500 |
| Dec-08 |
| Open |
|
1515 Broadway (Libor + 90 bps) |
| 625,000 |
| 343,750 |
| 6.24 | % | — |
| 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) |
| 175,000 |
| 87,325 |
| 6.52 | % | — |
| Nov-15 |
| 81,873 |
| — |
| Open |
|
485 Lexington Ave (Libor + 135bps) |
| 335,702 |
| 100,711 |
| 6.70 | % | — |
| Jan-09 |
| 100,711 |
| Jul-09 |
| Open |
|
1 Madison Avenue - South Building |
| 685,150 |
| 376,833 |
| 5.91 | % | 2,536 |
| May-20 |
| 222,492 |
| — |
| Jun-20 |
|
1 Madison Avenue - Clock Tower (Libor + 160bps) |
| 127,323 |
| 38,197 |
| 6.99 | % | — |
| Nov-07 |
| 38,197 |
| Nov-08 |
| Nov-06 |
|
379 West Broadway (Libor + 225bps) (3) |
| 12,838 |
| 5,777 |
| 7.59 | % | — |
| Dec-07 |
| 5,777 |
| Dec-10 |
| — |
|
Mack - Green Joint Venture |
| 102,550 |
| 49,224 |
| 7.86 | % | 254 |
| May-08 & Aug-14 |
| 45,398 |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Joint Venture Debt/Wtd Avg |
| 2,587,063 |
| 1,181,397 |
| 6.27 | % | 2,790 |
|
|
| 1,017,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Balance & Interest Rate with SLG JV debt |
|
|
| 2,945,506 |
| 6.11 | % |
|
|
|
|
|
|
|
|
|
|
(1) There is a LIBOR swap on this loan of 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 $112.7mm, 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) There is a LIBOR swap of 4.76% on $65mm of this loan.
(5) 55 Corporate Drive is excluded from this schedule since the property is classified as property held for sale.
26
SUMMARY OF GROUND LEASE ARRANGEMENTS Consolidated Statement (REIT) ($000’s omitted) |
|
| 2006 Scheduled |
| 2007 Scheduled |
| 2008 Scheduled |
| 2009 Scheduled |
| Deferred Land |
| Year of |
|
Property |
| Cash Payment |
| Cash Payment |
| Cash Payment |
| Cash Payment |
| Lease Obligations (1) |
| Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
673 First Avenue |
| 3,010 |
| 3,010 |
| 3,010 |
| 3,010 |
| 15,677 |
| 2037 |
|
420 Lexington Avenue (2) |
| 7,074 |
| 7,074 |
| 7,074 |
| 7,074 |
| — |
| 2008 | (3) |
711 Third Avenue (2) (4) |
| 1,550 |
| 1,550 |
| 1,550 |
| 1,550 |
| 849 |
| 2032 |
|
461 Fifth Avenue (2) |
| 2,100 |
| 2,100 |
| 2,100 |
| 2,100 |
| — |
| 2027 | (5) |
625 Madison Avenue (2) |
| 4,613 |
| 4,613 |
| 4,613 |
| 4,613 |
| — |
| 2022 | (6) |
1604 Broadway (2) |
| 2,350 |
| 2,350 |
| 2,350 |
| 2,350 |
| 256 |
| 2021 | (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
| 20,697 |
| 20,697 |
| 20,697 |
| 20,697 |
| 16,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized Lease |
|
|
|
|
|
|
|
|
|
|
|
|
|
673 First Avenue |
| 1,416 |
| 1,416 |
| 1,416 |
| 1,416 |
| 16,359 |
| 2037 |
|
(1) Per the balance sheet at September 30, 2006
(2) These ground leases are classified as operating leases and, therefore, do not appear on the balance sheet as an obligation.
(3) Subject to renewal at the Company’s option through 2029.
(4) Excludes portion payable to SL Green as owner of 50% leasehold.
(5) The Company has an option to purchase the ground lease for a fixed price on a specific date.
(6) Subject to renewal at the Company’s option through 2054.
(7) Subject to renewal at the Company’s option through 2036.The Company has a 45% interest in this property.
27
STRUCTURED FINANCE
|
|
|
| Assets |
| Wtd Average |
| Wtd Average |
| Current |
| Libor |
|
|
| Outstanding |
| Assets during quarter |
| Yield during quarter |
| Yield |
| Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 37,282 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| 7,000 |
|
|
|
|
|
|
|
|
|
Redemptions /Amortization |
| (176,466 | ) |
|
|
|
|
|
|
|
|
6/30/2006 |
| 333,989 |
| 409,728 |
| 10.31 | % | 10.04 | % | 5.33 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Originations/Accretion (1) |
| 288 |
|
|
|
|
|
|
|
|
|
Preferred Equity |
| 32,500 |
|
|
|
|
|
|
|
|
|
Redemptions /Amortization |
| (19,219 | ) |
|
|
|
|
|
|
|
|
9/30/2006 |
| 347,558 |
| 351,249 |
| 10.32 | % | 10.17 | % | 5.32 | % |
(1) Accretion includes original issue discounts and compounding investment income.
28
STRUCTURED FINANCE
|
|
Type of Investment |
| Quarter End Balance(1) |
| Senior Financing |
| Exposure Psf |
| Wtd Average |
| Current |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
Junior Mortgage Participation |
| $ | 85,418 |
| $ | 762,500 |
| $ | 236 |
| 11.18 | % | 10.93 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Mezzanine Debt |
| $ | 145,946 |
| $ | 675,000 |
| $ | 366 |
| 8.82 | % | 8.70 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Preferred Equity |
| $ | 116,194 |
| $ | 3,103,724 |
| $ | 190 |
| 11.68 | % | 11.47 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Balance as of 9/30/06 |
| $ | 347,558 |
| $ | 4,541,224 |
| $ | 253 |
| 10.32 | % | 10.17 | % |
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 6.9 years.
29
SELECTED PROPERTY DATA |
|
|
|
|
|
| Usable |
| % of Total |
| Occupancy (%) |
| Annualized |
| Annualized Rent |
| Total |
| |||||||||||||
Properties |
| SubMarket |
| Ownership |
| Sq. Feet |
| Sq. Feet |
| Sep-06 |
| Jun-06 |
| Mar-06 |
| Dec-05 |
| Sep-05 |
| Rent ($’s) |
| 100% |
| SLG |
| Tenants |
| |||
PROPERTIES 100% OWNED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
“Same Store” |
|
| % |
| % |
| % |
| % |
| % |
| $ |
|
| % |
| % |
|
|
| |||||||||
110 East 42nd Street |
| Grand Central North |
| Fee Interest |
| 181,000 |
| 1 |
| 98.7 |
| 96.7 |
| 94.5 |
| 96.5 |
| 89.6 |
| 7,153,380 |
| 2 |
| 1 |
| 29 |
| |||
125 Broad Street |
| Downtown |
| Fee Interest |
| 525,000 |
| 3 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 18,297,540 |
| 5 |
| 3 |
| 4 |
| |||
1372 Broadway |
| Garment |
| Fee Interest |
| 508,000 |
| 3 |
| 85.7 |
| 85.7 |
| 86.4 |
| 84.1 |
| 84.1 |
| 15,930,696 |
| 4 |
| 3 |
| 20 |
| |||
220 East 42nd Street |
| Midtown |
| Fee Interest |
| 1,135,000 |
| 6 |
| 100.0 |
| 100.0 |
| 99.5 |
| 99.5 |
| 99.6 |
| 42,536,184 |
| 11 |
| 7 |
| 38 |
| |||
292 Madison Avenue |
| Grand Central South |
| Fee Interest |
| 187,000 |
| 1 |
| 99.7 |
| 99.7 |
| 99.7 |
| 99.7 |
| 99.7 |
| 7,853,568 |
| 2 |
| 1 |
| 19 |
| |||
317 Madison Avenue |
| Grand Central |
| Fee Interest |
| 450,000 |
| 2 |
| 91.7 |
| 94.6 |
| 93.7 |
| 93.7 |
| 86.4 |
| 18,261,768 |
| 5 |
| 3 |
| 86 |
| |||
420 Lexington Ave (Graybar) |
| Grand Central North |
| Operating Sublease |
| 1,188,000 |
| 6 |
| 98.9 |
| 98.0 |
| 97.4 |
| 97.1 |
| 97.0 |
| 56,261,244 |
| 14 |
| 9 |
| 255 |
| |||
440 Ninth Avenue |
| Garment |
| Fee Interest |
| 339,000 |
| 2 |
| 99.4 |
| 99.4 |
| 99.4 |
| 100.0 |
| 100.0 |
| 10,723,344 |
| 3 |
| 2 |
| 12 |
| |||
461 Fifth Avenue |
| Midtown |
| Leasehold Interest |
| 200,000 |
| 1 |
| 87.6 |
| 87.6 |
| 89.7 |
| 89.7 |
| 89.7 |
| 10,603,452 |
| 3 |
| 2 |
| 16 |
| |||
470 Park Avenue South |
| Park Avenue South/Flatiron |
| Fee Interest |
| 260,000 |
| 1 |
| 100.0 |
| 100.0 |
| 96.9 |
| 93.8 |
| 93.1 |
| 9,889,776 |
| 3 |
| 2 |
| 29 |
| |||
555 West 57th Street |
| Midtown West |
| Fee Interest |
| 941,000 |
| 5 |
| 99.9 |
| 99.9 |
| 100.0 |
| 100.0 |
| 100.0 |
| 28,343,460 |
| 7 |
| 5 |
| 16 |
| |||
625 Madison Avenue |
| Plaza District |
| Leasehold Interest |
| 563,000 |
| 3 |
| 99.0 |
| 99.0 |
| 91.7 |
| 91.7 |
| 83.3 |
| 38,735,580 |
| 10 |
| 6 |
| 34 |
| |||
673 First Avenue |
| Grand Central South |
| Leasehold Interest |
| 422,000 |
| 2 |
| 82.7 |
| 82.7 |
| 77.8 |
| 77.8 |
| 77.8 |
| 11,547,048 |
| 3 |
| 2 |
| 11 |
| |||
70 West 36th Street |
| Garment |
| Fee Interest |
| 151,000 |
| 1 |
| 98.2 |
| 96.0 |
| 95.2 |
| 96.1 |
| 96.7 |
| 4,450,788 |
| 1 |
| 1 |
| 27 |
| |||
711 Third Avenue |
| Grand Central North |
| Operating Sublease (1) |
| 524,000 |
| 3 |
| 100.0 |
| 96.1 |
| 100.0 |
| 100.0 |
| 99.3 |
| 23,765,436 |
| 6 |
| 4 |
| 19 |
| |||
750 Third Avenue |
| Grand Central North |
| Fee Interest |
| 780,000 |
| 4 |
| 98.0 |
| 98.0 |
| 98.0 |
| 100.0 |
| 100.0 |
| 34,476,336 |
| 9 |
| 6 |
| 18 |
| |||
Subtotal / Weighted Average |
| 8,354,000 |
| 45 |
| 97.0 |
| 96.8 |
| 96.1 |
| 96.0 |
| 94.9 |
| $ | 338,829,600 |
| 86 |
| 56 |
| 633 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
19 West 44th Street |
| Midtown |
| Fee Interest |
| 292,000 |
| 2 |
| 99.4 |
| 98.5 |
| 98.1 |
| 96.8 |
| 95.8 |
| 11,169,312 |
| 3 |
| 2 |
| 66 |
| |||
28 West 44th Street |
| Midtown |
| Fee Interest |
| 359,000 |
| 2 |
| 95.7 |
| 96.2 |
| 95.0 |
| 94.2 |
| 93.1 |
| 12,751,728 |
| 3 |
| 2 |
| 74 |
| |||
521 Fifth Avenue |
| Midtown |
| Leasehold Interest |
| 460,000 |
| 2 |
| 94.2 |
| 94.2 |
| 97.4 |
| — |
| — |
| 18,382,968 |
| 5 |
| 3 |
| 50 |
| |||
609 Fifth Avenue |
| Midtown |
| Fee Interest |
| 160,000 |
| 1 |
| 98.8 |
| 98.8 |
| — |
| — |
| — |
| 12,599,400 |
| 3 |
| 2 |
| 22 |
| |||
Subtotal / Weighted Average |
| 1,271,000 |
| 7 |
| 96.4 |
| 96.3 |
| 96.8 |
| 95.4 |
| 94.3 |
| $ | 54,903,408 |
| 14 |
| 9 |
| 212 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total / Weighted Average Properties 100% Owned |
| 9,625,000 |
| 52 |
| 96.9 |
| 96.8 |
| 96.2 |
| 96.0 |
| 94.9 |
| $ | 393,733,008 |
| 100 |
| 65 |
| 845 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
PROPERTIES < 100% OWNED (Unconsolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
“Same Store” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
1 Park Avenue - 16.7% |
| Grand Central |
| Fee Interest |
| 913,000 |
| 5 |
| 93.5 |
| 97.8 |
| 97.8 |
| 97.8 |
| 97.8 |
| 36,189,612 |
|
|
| 1 |
| 19 |
| |||
1250 Broadway - 55% |
| Penn Station |
| Fee Interest |
| 670,000 |
| 4 |
| 98.6 |
| 95.5 |
| 95.8 |
| 95.8 |
| 95.5 |
| 24,619,296 |
|
|
| 3 |
| 34 |
| |||
1515 Broadway - 55% |
| Times Square |
| Fee Interest |
| 1,750,000 |
| 9 |
| 99.0 |
| 99.6 |
| 100.0 |
| 100.0 |
| 100.0 |
| 84,841,980 |
|
|
| 10 |
| 10 |
| |||
100 Park Avenue - 50% |
| Grand Central South |
| Fee Interest |
| 834,000 |
| 5 |
| 93.3 |
| 93.8 |
| 89.7 |
| 92.7 |
| 92.7 |
| 34,223,640 |
|
|
| 3 |
| 36 |
| |||
1221 Avenue of the Americas - 45% |
| Rockefeller Center |
| Fee Interest |
| 2,550,000 |
| 14 |
| 97.3 |
| 96.6 |
| 96.5 |
| 96.5 |
| 96.2 |
| 139,376,616 |
|
|
| 10 |
| 25 |
| |||
Subtotal / Weighted Average |
|
|
|
|
| 6,717,000 |
| 36 |
| 96.8 |
| 97.1 |
| 96.7 |
| 97.0 |
| 96.9 |
| $ | 319,251,144 |
|
|
| 27 |
| 124 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
485 Lexington Avenue - 30% |
| Grand Central North |
| Fee Interest |
| 921,000 |
| 5 |
| 78.7 |
| 74.1 |
| 71.2 |
| 100.0 |
| 100.0 |
| 34,956,384 |
|
|
| 3 |
| 9 |
| |||
1 Madison Avenue - 55% |
| Park Avenue South |
| Fee Interest |
| 1,176,900 |
| 6 |
| 98.6 |
| 98.6 |
| 97.5 |
| 97.5 |
| 97.5 |
| 55,327,440 |
|
|
| 5 |
| 3 |
| |||
Subtotal / Weighted Average |
|
|
|
|
| 2,097,900 |
| 11 |
| 89.8 |
| 87.8 |
| 86.0 |
| 98.6 |
| 98.6 |
| $ | 90,283,824 |
|
|
| 8 |
| 12 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total / Weighted Average Properties Less Than 100% Owned |
| 8,814,900 |
| 48 |
| 95.2 |
| 94.9 |
| 94.1 |
| 97.4 |
| 97.3 |
| $ | 409,534,968 |
|
|
| 35 |
| 136 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Grand Total / Weighted Average |
| 18,439,900 |
| 100 |
| 96.1 |
| 95.9 |
| 95.2 |
| 96.7 |
| 96.0 |
| $ | 803,267,976 |
|
|
|
|
| 981 |
| ||||||
Grand Total - SLG share of Annualized Rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 601,882,409 |
|
|
| 100 |
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Same Store Occupancy % - Combined |
| 15,071,000 |
| 82 |
| 96.9 |
| 96.9 |
| 96.3 |
| 96.5 |
| 96.0 |
|
|
|
|
|
|
|
|
| |||||||
(1) Including Ownership of 50% in Building Fee.
RETAIL & DEVELOPMENT PROPERTIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
1 Madison Avenue - Clock Tower - 30% |
| Park Avenue South |
| Fee Interest |
| 220,000 |
| 43 |
| — |
| — |
| — |
| — |
| — |
| 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 |
| 8 |
| 17.2 |
| 17.2 |
| 17.2 |
| 17.2 |
| — |
| 2,288,676 |
| 11 |
| 5 |
| 2 |
| |
21 West 34th Street - 50% |
| Herald Square/Penn Station |
| Fee Interest |
| 20,100 |
| 4 |
| — |
| 25.0 |
| 25.0 |
| 100.0 |
| — |
| N/A |
| N/A |
| N/A |
| N/A |
| |
25-27 West 34th Street - 50% |
| Herald Square/Penn Station |
| Fee Interest |
| 21,700 |
| 4 |
| 30.7 |
| 30.7 |
| 30.7 |
| — |
| — |
| 1,000,620 |
| 5 |
| 3 |
| 3 |
| |
29 West 34th Street - 50% |
| Herald Square/Penn Station |
| Fee Interest |
| 29,300 |
| 6 |
| 69.1 |
| 74.4 |
| 74.4 |
| — |
| — |
| 943,488 |
| 5 |
| 2 |
| 6 |
| |
379 West Broadway - 45% |
| Cast Iron/Soho |
| Leasehold Interest |
| 62,006 |
| 12 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| — |
| 2,775,084 |
| 14 |
| 6 |
| 7 |
| |
717 Fifth Avenue - 92% |
| Midtown/Plaza District |
| Fee Interest |
| 76,400 |
| 15 |
| 63.1 |
| — |
| — |
| — |
| — |
| 12,147,276 |
| 61 |
| 56 |
| 8 |
| |
141 Fifth Avenue - 50% |
| Flat Iron |
| Fee Interest |
| 21,500 |
| 4 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 100.0 |
| 819,804 |
| 4 |
| 2 |
| 4 |
| |
Total / Weighted Average Retail/Development Properties |
| 515,706 |
| 100 |
| N/A |
| N/A |
| N/A |
| N/A |
| N/A |
| $ | 19,974,948 |
| 100 |
| 74 |
| 30 |
| ||||
30
LARGEST TENANTS BY SQUARE FEET LEASED |
Wholly Owned Portfolio + Allocated JV Properties |
|
|
|
|
|
|
|
|
|
|
| % of |
|
|
| ||||||||
|
|
|
|
|
| Total |
|
|
|
|
| % of |
| SLG Share of |
| SLG Share of |
|
|
| ||||
|
|
|
| Lease |
| Leased |
| Annualized |
| PSF |
| Annualized |
| Annualized |
| Annualized |
| Credit |
| ||||
Tenant Name |
| Property |
| Expiration |
| Square Feet |
| Rent ($) |
| Annualized |
| Rent |
| Rent($) |
| Rent |
| Rating (1) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Viacom International, Inc. |
| 1515 Broadway |
| 2008, 2010, 2012, 2013 & 2015 |
| 1,410,339 |
| $ | 72,624,156 |
| $ | 51.49 |
| 9.0 | % | $ | 49,711,235 |
| 8.3 | % | BBB |
| |
Credit Suisse Securities (USA), Inc. |
| 1 Madison Avenue |
| 2020 |
| 1,123,879 |
| 44,955,156 |
| $ | 40.00 |
| 5.6 | % | 24,725,336 |
| 4.1 | % | A+ |
| |||
Citigroup, N.A. |
| 125 Broad Street, 1 Park Avenue, 750 Third Avenue & 485 Lexington Avenue |
| 2007, 2010 & 2017 |
| 646,266 |
| 28,023,912 |
| $ | 43.36 |
| 3.5 | % | 19,916,619 |
| 3.3 | % | AA+ |
| |||
Morgan Stanley & Co. Inc. |
| 1221 Ave.of the Americas |
| Various |
| 605,426 |
| 43,128,833 |
| $ | 71.24 |
| 5.4 | % | 19,407,975 |
| 3.2 | % | A+ |
| |||
Omnicom Group |
| 220 East 42nd Street, 420 Lexington Avenue & 485 Lexington Avenue |
| 2008, 2009, 2010 & 2017 |
| 573,470 |
| 20,976,492 |
| $ | 36.58 |
| 2.6 | % | 20,976,492 |
| 3.5 | % | A- |
| |||
Societe Generale |
| 1221 Ave.of the Americas |
| Various |
| 486,663 |
| 25,680,288 |
| $ | 52.77 |
| 3.2 | % | 11,556,130 |
| 1.9% |
| AA- |
| |||
The McGraw Hill Companies, Inc. |
| 1221 Ave.of the Americas |
| Various |
| 420,328 |
| 20,007,564 |
| $ | 47.60 |
| 2.5 | % | 9,003,404 |
| 1.5 | % | A+ |
| |||
Advance Magazine Group |
| 750 Third Avenue & 485 Lexington Avenue |
| 2021 |
| 342,720 |
| 12,690,012 |
| $ | 37.03 |
| 1.6 | % | 11,441,406 |
| 1.9 | % |
|
| |||
Visiting Nurse Service of New York |
| 1250 Broadway |
| 2006 & 2018 |
| 295,870 |
| 9,616,908 |
| $ | 32.50 |
| 1.2 | % | 6,363,989 |
| 1.1 | % |
|
| |||
C.B.S. Broadcasting, Inc. |
| 555 West 57th Street |
| 2013 & 2017 |
| 253,316 |
| 8,630,352 |
| $ | 34.07 |
| 1.1 | % | 8,630,352 |
| 1.4 | % | BBB |
| |||
The City University of New York - CUNY |
| 555 West 57th Street & 28 West 44th Street |
| 2006, 2010, 2011, 2015 & 2016 |
| 234,487 |
| 7,995,120 |
| $ | 34.10 |
| 1.0 | % | 7,995,120 |
| 1.3 | % |
|
| |||
New York Presbyterian Hospital |
| 555 West 57th Street & 673 First Avenue |
| 2006, 2009, & 2021 |
| 234,352 |
| 7,278,216 |
| $ | 31.06 |
| 0.9 | % | 7,278,216 |
| 1.2 | % |
|
| |||
Polo Ralph Lauren Corporation |
| 625 Madison Avenue |
| 2019 |
| 234,207 |
| 11,415,468 |
| $ | 48.74 |
| 1.4 | % | 11,415,468 |
| 1.9 | % | BBB |
| |||
BMW of Manhattan |
| 555 West 57th Street |
| 2012 |
| 227,782 |
| 4,217,232 |
| $ | 18.51 |
| 0.5 | % | 4,217,232 |
| 0.7 | % |
|
| |||
The Travelers Indemnity Company |
| 485 Lexington Avenue |
| 2016 |
| 214,978 |
| 10,748,904 |
| $ | 50.00 |
| 1.3 | % | 5,374,452 |
| 0.9 | % | A+ |
| |||
Teachers Insurance & Annuity Association |
| 750 Third Avenue |
| 2008, 2009 & 2015 |
| 188,625 |
| 8,516,496 |
| $ | 45.15 |
| 1.1 | % | 8,516,496 |
| 1.4 | % | AAA |
| |||
The Columbia House Company |
| 1221 Ave.of the Americas |
| Various |
| 175,312 |
| 8,716,752 |
| $ | 49.72 |
| 1.1 | % | 3,922,538 |
| 0.7 | % | B2 |
| |||
The Mt. Sinai Hospital and NYU Hospital Centers |
| 1 Park Avenue & 625 Madison Avenue |
| 2013, 2015 & 2016 |
| 173,741 |
| 6,814,440 |
| $ | 39.22 |
| 0.8 | % | 1,677,775 |
| 0.3 | % |
|
| |||
The Segal Company |
| 1 Park Avenue |
| 2009 |
| 157,947 |
| 6,839,256 |
| $ | 43.30 |
| 0.9 | % | 1,140,104 |
| 0.2 | % |
|
| |||
J & W Seligman & Co., Incorporated |
| 100 Park Avenue |
| 2009 |
| 148,726 |
| 5,905,572 |
| $ | 39.71 |
| 0.7 | % | 2,952,786 |
| 0.5 | % | AAA |
| |||
Sonnenschein, Nath & Rosenthal |
| 1221 Ave.of the Americas |
| Various |
| 147,997 |
| 7,681,296 |
| $ | 51.90 |
| 1.0 | % | 3,456,583 |
| 0.6 | % |
|
| |||
Ross Procurement, Inc. |
| 1372 Broadway |
| 2016 |
| 138,130 |
| 4,322,436 |
| $ | 31.29 |
| 0.5 | % | 4,322,436 |
| 0.7 | % | BBB |
| |||
Altria Corporate Services |
| 100 Park Avenue |
| 2007 |
| 136,118 |
| 6,592,632 |
| $ | 48.43 |
| 0.8 | % | 3,296,316 |
| 0.5 | % | BBB+ |
| |||
Metro North Commuter Railroad Co. |
| 420 Lexington Avenue |
| 2008 & 2016 |
| 134,687 |
| 4,738,296 |
| $ | 35.18 |
| 0.6 | % | 4,738,296 |
| 0.8 | % | AAA |
| |||
Tribune Newspaper |
| 220 East 42nd Street |
| 2010 |
| 134,208 |
| 4,655,592 |
| $ | 34.69 |
| 0.6 | % | 4,655,592 |
| 0.8 | % | A- |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total |
|
|
|
|
| 8,839,574 |
| $ | 392,771,381 |
| $ | 44.43 |
| 48.9 | % | $ | 256,692,348 |
| 42.6 | % |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Wholly Owned Portfolio + Allocated JV Properties |
| 18,439,900 |
| $ | 803,267,976 |
| $ | 43.56 |
|
|
| $ | 601,882,409 |
|
|
|
|
| |||||
(1) - 64% of Portfolio’s Largest Tenants have investment grade credit ratings. 35% of SLG Share of Annualized Rent is derived from these Tenants.
31
TENANT DIVERSIFICATION |
|
32
Leasing Activity
|
Activity |
| Building Address |
| # of Leases |
| Usable SF |
| Rentable SF |
| Rent/Rentable SF ($ ’s)(1) |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Vacancy at 6/30/06 |
|
|
|
|
| 778,228 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Less: Sold Vacancies |
| 1140 Avenue of the Americas |
|
|
| (2,725 | ) |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Space which became available during the Quarter (A): |
|
|
|
|
|
|
|
|
| ||||
Office |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| 317 Madison Avenue |
| 3 |
| 12,994 |
| 13,709 |
| $ | 34.52 |
| |
|
| 1515 Broadway |
| 2 |
| 43,222 |
| 43,222 |
| $ | 35.41 |
| |
|
| 220 East 42nd Street |
| 2 |
| 13,713 |
| 13,713 |
| $ | 27.66 |
| |
|
| 1 Park Avenue |
| 2 |
| 38,186 |
| 37,850 |
| $ | 54.90 |
| |
|
| 100 Park Avenue |
| 2 |
| 9,908 |
| 9,908 |
| $ | 61.40 |
| |
|
| 1250 Broadway |
| 2 |
| 22,509 |
| 23,487 |
| $ | 31.28 |
| |
|
| 292 Madison Avenue |
| 1 |
| 4,480 |
| 4,480 |
| $ | 44.51 |
| |
|
| 110 East 42nd Street |
| 3 |
| 2,560 |
| 2,829 |
| $ | 37.85 |
| |
|
| 19 West 44th Street |
| 1 |
| 3,287 |
| 3,560 |
| $ | 40.00 |
| |
|
| 28 West 44th Street |
| 6 |
| 28,594 |
| 28,883 |
| $ | 33.27 |
| |
|
| 1221 Sixth Avenue |
| 3 |
| 61,528 |
| 61,528 |
| $ | 66.40 |
| |
|
| 440 Ninth Avenue |
| 1 |
| 19,656 |
| 22,000 |
| $ | 21.51 |
| |
|
| 521 Fifth Avenue |
| 1 |
| 5,822 |
| 5,822 |
| $ | 34.29 |
| |
|
| 420 Lexington Avenue |
| 9 |
| 10,863 |
| 10,672 |
| $ | 47.67 |
| |
|
| Total/Weighted Average |
| 38 |
| 277,322 |
| 281,663 |
| $ | 44.31 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Retail |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| 317 Madison Avenue |
| 1 |
| 2,879 |
| 2,971 |
| $ | 115.45 |
| |
|
| 1 Park Avenue |
| 1 |
| 50,000 |
| 50,000 |
| $ | 41.59 |
| |
|
| 420 Lexington Avenue |
| 1 |
| 3,531 |
| 5,372 |
| $ | 80.34 |
| |
|
| Total/Weighted Average |
| 3 |
| 56,410 |
| 58,343 |
| $ | 50.60 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Storage |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| 1515 Broadway |
| 1 |
| 145 |
| 145 |
| $ | 18.12 |
| |
|
| 1 Park Avenue |
| 2 |
| 3,184 |
| 3,184 |
| $ | 20.00 |
| |
|
| Total/Weighted Average |
| 3 |
| 3,329 |
| 3,329 |
| $ | 19.92 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total Space became Available during the Quarter |
|
|
|
|
|
|
|
|
| ||
|
| Office |
| 38 |
| 277,322 |
| 281,663 |
| $ | 44.31 |
| |
|
| Retail |
| 3 |
| 56,410 |
| 58,343 |
| $ | 48.92 |
| |
|
| Storage |
| 3 |
| 3,329 |
| 3,329 |
| $ | 19.92 |
| |
|
|
|
| 44 |
| 337,061 |
| 343,335 |
| $ | 44.86 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Total Available Space |
|
|
| 1,112,564 |
|
|
|
|
| ||
(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.
33
Leasing Activity
|
Activity |
| Building Address |
| # of Leases |
| Term |
| Usable SF |
| Rentable SF |
| New Cash Rent / |
| Prev. Escalated Rent/ |
| TI / Rentable SF |
| Free Rent # of |
| |||
Available Space as of 9/30/06 |
|
|
|
|
| 1,112,564 |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 317 Madison Avenue |
| 1 |
| 5.0 |
| 2,964 |
| 3,620 |
| $ | 40.00 |
| $ | 28.16 |
| $ | — |
| 2.0 |
|
|
| 485 Lexington Avenue |
| 3 |
| 7.5 |
| 41,357 |
| 41,357 |
| $ | 57.21 |
| $ | 39.21 |
| $ | 32.17 |
| 6.0 |
|
|
| 220 East 42nd Street |
| 1 |
| 10.7 |
| 13,713 |
| 13,956 |
| $ | 39.90 |
| $ | 27.18 |
| $ | 40.00 |
| 6.0 |
|
|
| 1515 Broadway |
| 2 |
| 3.8 |
| 33,410 |
| 34,563 |
| $ | 40.87 |
| $ | 32.83 |
| $ | 15.00 |
| — |
|
|
| 100 Park Avenue |
| 1 |
| 5.0 |
| 5,500 |
| 5,496 |
| $ | 54.00 |
| $ | 69.52 |
| $ | — |
| — |
|
|
| 1250 Broadway |
| 3 |
| 7.4 |
| 43,009 |
| 46,748 |
| $ | 35.74 |
| $ | 30.03 |
| $ | 23.53 |
| 3.5 |
|
|
| 292 Madison Avenue |
| 1 |
| 5.8 |
| 4,480 |
| 4,591 |
| $ | 38.00 |
| $ | 43.43 |
| $ | 18.13 |
| 2.0 |
|
|
| 70 West 36th Street |
| 1 |
| 9.4 |
| 3,449 |
| 3,865 |
| $ | 27.00 |
| $ | 23.71 |
| $ | 43.15 |
| 6.0 |
|
|
| 110 East 42nd Street |
| 5 |
| 4.9 |
| 6,179 |
| 7,240 |
| $ | 41.32 |
| $ | 26.65 |
| $ | 49.74 |
| 0.7 |
|
|
| 19 West 44th Street |
| 2 |
| 5.0 |
| 6,053 |
| 6,579 |
| $ | 36.77 |
| $ | 40.00 |
| $ | 26.00 |
| 0.5 |
|
|
| 28 West 44th Street |
| 6 |
| 8.7 |
| 26,496 |
| 29,841 |
| $ | 37.47 |
| $ | 30.48 |
| $ | 43.85 |
| 3.2 |
|
|
| 1221 Sixth Avenue |
| 4 |
| 11.2 |
| 78,738 |
| 80,968 |
| $ | 82.99 |
| $ | 65.25 |
| $ | 17.62 |
| 3.4 |
|
|
| 711 Third Avenue |
| 2 |
| 9.5 |
| 20,607 |
| 22,008 |
| $ | 47.85 |
| $ | 39.55 |
| $ | 42.62 |
| 5.0 |
|
|
| 440 Ninth Avenue |
| 1 |
| 1.6 |
| 19,656 |
| 23,121 |
| $ | 22.59 |
| $ | 20.47 |
| $ | — |
| 3.0 |
|
|
| 521 Fifth Avenue |
| 1 |
| 10.0 |
| 5,822 |
| 6,404 |
| $ | 50.00 |
| $ | 31.17 |
| $ | — |
| — |
|
|
| 420 Lexington Avenue |
| 12 |
| 4.5 |
| 21,331 |
| 34,456 |
| $ | 48.00 |
| $ | 53.66 |
| $ | 18.55 |
| 1.0 |
|
|
| Total/Weighted Average |
| 46 |
| 7.5 |
| 332,764 |
| 364,813 |
| $ | 51.14 |
| $ | 41.39 |
| $ | 23.58 |
| 3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 1 Park Avenue |
| 1 |
| 15.5 |
| 50,000 |
| 52,120 |
| $ | 36.50 |
| $ | 39.90 |
| $ | 35.00 |
| 6.0 |
|
|
| 420 Lexington Avenue |
| 1 |
| 10.0 |
| 3,531 |
| 5,372 |
| $ | 108.87 |
| $ | 80.34 |
| $ | — |
| — |
|
|
| Total/Weighted Average |
| 2 |
| 15.0 |
| 53,531 |
| 57,492 |
| $ | 43.26 |
| $ | 43.68 |
| $ | 31.73 |
| 5.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 1 Park Avenue |
| 1 |
| 3.0 |
| 2,103 |
| 2,973 |
| $ | 20.00 |
| $ | — |
| $ | 5.14 |
| — |
|
|
| 28 West 44th Street |
| 1 |
| 9.7 |
| 408 |
| 598 |
| $ | 25.00 |
| $ | — |
| $ | — |
| — |
|
|
| 485 Lexington Avenue |
| 1 |
| 11.0 |
| 370 |
| 370 |
| $ | 25.00 |
| $ | 39.21 |
| $ | — |
| — |
|
|
| Total/Weighted Average |
| 3 |
| 4.8 |
| 2,881 |
| 3,941 |
| $ | 21.23 |
| $ | 39.21 |
| $ | 3.88 |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Leased Space |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Office (3) |
| 46 |
| 7.5 |
| 332,764 |
| 364,813 |
| $ | 51.14 |
| $ | 41.39 |
| $ | 23.58 |
| 3.1 |
|
|
| Retail |
| 2 |
| 15.0 |
| 53,531 |
| 57,492 |
| $ | 43.26 |
| $ | 43.68 |
| $ | 31.73 |
| 5.4 |
|
|
| Storage |
| 3 |
| 4.8 |
| 2,881 |
| 3,941 |
| $ | 21.23 |
| $ | 39.21 |
| $ | 3.88 |
| — |
|
|
| Total |
| 51 |
| 8.5 |
| 389,176 |
| 426,246 |
| $ | 49.80 |
| $ | 41.75 |
| $ | 24.49 |
| 3.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total Available Space as of 9/30/06 |
|
|
|
|
| 723,388 |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Early Renewals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 461 Fifth Avenue |
| 1 |
| 10.0 |
| 10,595 |
| 10,932 |
| $ | 66.50 |
| $ | 60.24 |
| $ | 10.00 |
| — |
|
|
| 100 Park Avenue |
| 1 |
| 1.4 |
| 8,550 |
| 10,293 |
| $ | 65.00 |
| $ | 42.00 |
| $ | — |
| — |
|
|
| 1250 Broadway |
| 1 |
| 4.3 |
| 13,500 |
| 14,947 |
| $ | 34.00 |
| $ | 33.58 |
| $ | — |
| — |
|
|
| 19 West 44th Street |
| 1 |
| 5.0 |
| 3,798 |
| 4,841 |
| $ | 37.00 |
| $ | 38.83 |
| $ | 5.00 |
| 1.0 |
|
|
| 28 West 44th Street |
| 1 |
| 1.0 |
| 972 |
| 972 |
| $ | 37.81 |
| $ | 37.69 |
| $ | — |
| — |
|
|
| 1221 Sixth Avenue |
| 4 |
| 5.2 |
| 173,829 |
| 178,463 |
| $ | 87.00 |
| $ | 66.07 |
| $ | — |
| — |
|
|
| 420 Lexington Avenue |
| 1 |
| 0.6 |
| 846 |
| 962 |
| $ | 47.00 |
| $ | 39.68 |
| $ | — |
| — |
|
|
| Total/Weighted Average |
| 10 |
| 5.1 |
| 212,090 |
| 221,410 |
| $ | 79.90 |
| $ | 61.63 |
| $ | 0.60 |
| 0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Storage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| 461 Fifth Avenue |
| 1 |
| 10.0 |
| 840 |
| 840 |
| $ | 23.38 |
| $ | 23.36 |
| $ | — |
| — |
|
|
| Total/Weighted Average |
| 1 |
| 10.0 |
| 840 |
| 840 |
| $ | 23.38 |
| $ | 23.36 |
| $ | — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Renewals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Expired/Renewed |
| 7 |
| 4.7 |
| 27,252 |
| 30,520 |
| $ | 41.39 |
| $ | 32.92 |
| $ | 1.07 |
| — |
|
|
| Early Renewals Office |
| 10 |
| 5.1 |
| 212,090 |
| 221,410 |
| $ | 79.90 |
| $ | 61.63 |
| $ | 0.60 |
| — |
|
|
| Early Renewals Storage |
| 1 |
| 10.0 |
| 840 |
| 840 |
| $ | 23.38 |
| $ | 23.36 |
| $ | — |
| — |
|
|
| Total |
| 18 |
| 5.1 |
| 240,182 |
| 252,770 |
| $ | 75.07 |
| $ | 58.04 |
| $ | 0.66 |
| — |
|
(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 $50.41/rsf for 311,305 rentable SF.
Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) is $62.67/rsf for 532,715 rentable SF.
34
ANNUAL LEASE EXPIRATIONS
|
|
| Consolidated Properties |
| Joint Venture Properties |
| ||||||||||||||||||||||||||
Year of Lease Expiration |
| Number of |
| Rentable |
| Percentage of |
| Annualized |
| Annualized Rent |
| Year 2006 |
| Number of |
| Rentable |
| Percentage of |
| Annualized |
| Annualized Rent |
| Year 2006 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
In 1st Quarter 2006 (1) |
| 16 |
| 11,695 |
| 0.12 | % | $ | 419,508 |
| $ | 35.87 |
| $ | 51.90 |
| 1 |
| 202 |
| 0.00 | % | $ | 2,196 |
| $ | 10.87 |
| $ | 20.00 |
|
In 2nd Quarter 2006 (1) |
| 3 |
| 5,135 |
| 0.05 | % | $ | 180,996 |
| $ | 35.25 |
| $ | 43.00 |
| 1 |
| 6,485 |
| 0.08 | % | $ | 71,340 |
| $ | 11.00 |
| $ | 20.00 |
|
In 3rd Quarter 2006 (1) |
| 4 |
| 8,930 |
| 0.09 | % | $ | 365,100 |
| $ | 40.88 |
| $ | 62.76 |
| 4 |
| 58,615 |
| 0.70 | % | $ | 2,972,112 |
| $ | 50.71 |
| $ | 52.89 |
|
In 4th Quarter 2006 |
| 25 |
| 90,089 |
| 0.93 | % | $ | 3,355,152 |
| $ | 37.24 |
| $ | 50.33 |
| 1 |
| 9,749 |
| 0.12 | % | $ | 401,436 |
| $ | 41.18 |
| $ | 55.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total 2006 |
| 48 |
| 115,849 |
| 1.20 | % | $ | 4,320,756 |
| $ | 37.30 |
| $ | 51.12 |
| 7 |
| 75,051 |
| 0.90 | % | $ | 3,447,084 |
| $ | 45.93 |
| $ | 50.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
In 1st Quarter 2007 |
| 27 |
| 69,173 |
| 0.72 | % | $ | 2,928,204 |
| $ | 42.33 |
| $ | 56.38 |
| 2 |
| 4,281 |
| 0.05 | % | $ | 181,500 |
| $ | 42.40 |
| $ | 42.87 |
|
In 2nd Quarter 2007 |
| 37 |
| 138,034 |
| 1.43 | % | $ | 5,625,660 |
| $ | 40.76 |
| $ | 48.51 |
| 4 |
| 120,997 |
| 1.45 | % | $ | 8,338,200 |
| $ | 68.91 |
| $ | 73.21 |
|
In 3rd Quarter 2007 |
| 36 |
| 82,436 |
| 0.85 | % | $ | 3,860,436 |
| $ | 46.83 |
| $ | 52.73 |
| 3 |
| 25,260 |
| 0.30 | % | $ | 639,984 |
| $ | 25.34 |
| $ | 40.41 |
|
In 4th Quarter 2007 |
| 18 |
| 78,847 |
| 0.82 | % | $ | 3,274,344 |
| $ | 41.53 |
| $ | 71.58 |
| 3 |
| 159,480 |
| 1.91 | % | $ | 7,685,820 |
| $ | 48.19 |
| $ | 65.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total 2007 |
| 118 |
| 368,490 |
| 3.81 | % | $ | 15,688,644 |
| $ | 42.58 |
| $ | 55.87 |
| 12 |
| 310,018 |
| 3.72 | % | $ | 16,845,504 |
| $ | 54.34 |
| $ | 66.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
2008 |
| 117 |
| 674,819 |
| 6.98 | % | $ | 27,094,536 |
| $ | 40.15 |
| $ | 49.33 |
| 17 |
| 566,556 |
| 6.79 | % | $ | 25,196,532 |
| $ | 44.47 |
| $ | 65.70 |
|
2009 |
| 100 |
| 714,576 |
| 7.39 | % | $ | 31,722,252 |
| $ | 44.39 |
| $ | 51.28 |
| 19 |
| 534,359 |
| 6.41 | % | $ | 25,823,604 |
| $ | 48.33 |
| $ | 58.35 |
|
2010 |
| 133 |
| 1,533,220 |
| 15.85 | % | $ | 63,012,048 |
| $ | 41.10 |
| $ | 46.89 |
| 20 |
| 1,259,613 |
| 15.10 | % | $ | 62,889,384 |
| $ | 49.93 |
| $ | 65.61 |
|
2011 |
| 102 |
| 700,973 |
| 7.25 | % | $ | 33,426,948 |
| $ | 47.69 |
| $ | 52.27 |
| 9 |
| 152,568 |
| 1.83 | % | $ | 6,391,644 |
| $ | 41.89 |
| $ | 56.28 |
|
2012 |
| 52 |
| 799,842 |
| 8.27 | % | $ | 24,662,868 |
| $ | 30.83 |
| $ | 41.68 |
| 9 |
| 235,454 |
| 2.82 | % | $ | 8,816,328 |
| $ | 37.44 |
| $ | 55.17 |
|
2013 |
| 52 |
| 905,010 |
| 9.35 | % | $ | 35,787,504 |
| $ | 39.54 |
| $ | 46.88 |
| 8 |
| 985,609 |
| 11.82 | % | $ | 50,846,268 |
| $ | 51.59 |
| $ | 67.37 |
|
2014 |
| 27 |
| 365,405 |
| 3.78 | % | $ | 13,650,144 |
| $ | 37.36 |
| $ | 46.04 |
| 11 |
| 170,671 |
| 2.05 | % | $ | 14,072,580 |
| $ | 82.45 |
| $ | 100.21 |
|
2015 |
| 42 |
| 602,526 |
| 6.23 | % | $ | 25,107,612 |
| $ | 41.67 |
| $ | 49.97 |
| 12 |
| 464,843 |
| 5.57 | % | $ | 19,990,188 |
| $ | 43.00 |
| $ | 48.06 |
|
Thereafter |
| 98 |
| 2,893,603 |
| 29.91 | % | $ | 119,259,696 |
| $ | 41.21 |
| $ | 58.65 |
| 31 |
| 3,586,979 |
| 43.00 | % | $ | 175,215,852 |
| $ | 48.85 |
| $ | 74.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 889 |
| 9,674,313 |
| 100.00 | % | $ | 393,733,008 |
| $ | 40.70 |
| $ | 51.41 |
| 155 |
| 8,341,721 |
| 100.00 | % | $ | 409,534,968 |
| $ | 49.09 |
| $ | 68.14 |
|
(1) Includes month to month holdover tenants that expired prior to 9/30/06.
(2) Tenants may have multiple leases.
(3) Represents in place annualized rent allocated by year of maturity.
35
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997
|
|
|
|
|
|
|
|
|
|
| % Leased |
| Acquisition |
| ||||
|
| Property |
| Type of Ownership |
| Submarket |
| Net Rentable sf |
| at acquisition |
| 9/30/2006 |
| Price ($ ’s) (1) |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1998 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Mar-98 |
| 420 Lexington |
| Operating Sublease |
| Grand Central |
| 1,188,000 |
| 83.0 |
| 98.9 |
| $ | 78,000,000 |
| |
Mar-98 |
| 1466 Broadway |
| Fee Interest |
| Times Square |
| 289,000 |
| 87.0 |
| N/A |
| $ | 64,000,000 |
| |
Mar-98 |
| 321 West 44th |
| Fee Interest |
| Times Square |
| 203,000 |
| 96.0 |
| N/A |
| $ | 17,000,000 |
| |
May-98 |
| 711 3rd Avenue |
| Operating Sublease |
| Grand Central |
| 524,000 |
| 79.0 |
| 100.0 |
| $ | 65,600,000 |
| |
Jun-98 |
| 440 9th Avenue |
| Fee Interest |
| Penn Station |
| 339,000 |
| 76.0 |
| 99.4 |
| $ | 32,000,000 |
| |
Aug-98 |
| 1412 Broadway |
| Fee Interest |
| Times Square South |
| 389,000 |
| 89.5 |
| 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 |
| 100.0 |
| 100.0 |
| $ | 66,700,000 |
| |
May-99 |
| 90 Broad Street - 35% JV |
| Fee Interest |
| Financial |
| 339,000 |
| 81.8 |
| N/A |
| $ | 34,500,000 |
| |
May-99 |
| The Madison Properties: |
| Fee Interest |
| Grand Central |
|
|
|
|
|
|
|
| $ | 50,000,000 |
|
|
| 286 Madison Avenue |
|
|
|
|
| 112,000 |
| 98.8 |
| N/A |
|
|
| ||
|
| 290 Madison Avenue |
|
|
|
|
| 36,800 |
| 85.6 |
| N/A |
|
|
| ||
|
| 292 Madison Avenue |
|
|
|
|
| 187,000 |
| 97.0 |
| 99.7 |
|
|
| ||
Aug-99 |
| 1250 Broadway - 50% JV |
| Fee Interest |
| Penn Station |
| 670,000 |
| 96.5 |
| 98.6 |
| $ | 93,000,000 |
| |
Nov-99 |
| 555 West 57th - remaining 35% |
| Fee Interest |
| Midtown West |
| — |
|
|
| 99.9 |
| $ | 34,100,000 |
| |
|
|
|
|
|
|
|
| 2,285,800 |
|
|
|
|
| $ | 305,600,000 |
| |
2000 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Feb-00 |
| 100 Park Avenue |
| Fee Interest |
| Grand Central |
| 834,000 |
| 96.5 |
| 93.3 |
| $ | 192,000,000 |
| |
Dec-00 |
| 180 Madison Avenue |
| Fee Interest |
| Grand Central |
| 265,000 |
| 90.0 |
| N/A |
| $ | 41,250,000 |
| |
Contribution to JV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
May-00 |
| 321 West 44th |
| Fee Interest |
| Times Square |
| 203,000 |
| 98.0 |
| N/A |
| $ | 28,400,000 |
| |
|
|
|
|
|
|
|
| 1,302,000 |
|
|
|
|
| $ | 261,650,000 |
| |
2001 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Jan-01 |
| 1370 Broadway |
| Fee Interest |
| Times Square South |
| 255,000 |
| 97.0 |
| N/A |
| $ | 50,500,000 |
| |
Jan-01 |
| 1 Park Avenue |
| Various Interests |
| Grand Central |
| 913,000 |
| 97.0 |
| 93.5 |
| $ | 233,900,000 |
| |
Jan-01 |
| 469 7th Avenue - 35% JV |
| Fee Interest |
| Penn Station |
| 253,000 |
| 97.7 |
| N/A |
| $ | 45,700,000 |
| |
Jun-01 |
| 317 Madison |
| Fee Interest |
| Grand Central |
| 450,000 |
| 95.0 |
| 91.7 |
| $ | 105,600,000 |
| |
Acquisition of JV Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Sep-01 |
| 1250 Broadway - 49.9% JV (2) |
| Fee Interest |
| Penn Station |
| 670,000 |
| 97.7 |
| 98.6 |
| $ | 126,500,000 |
| |
|
|
|
|
|
|
|
| 2,541,000 |
|
|
|
|
| $ | 562,200,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2002 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
May-02 |
| 1515 Broadway - 55% JV |
| Fee Interest |
| Times Square |
| 1,750,000 |
| 98.0 |
| 99.0 |
| $ | 483,500,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 483,500,000 |
| |
2003 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Feb-03 |
| 220 East 42nd Street |
| Fee Interest |
| Grand Central |
| 1,135,000 |
| 91.9 |
| 100.0 |
| $ | 265,000,000 |
| |
Mar-03 |
| 125 Broad Street |
| Fee Interest |
| Downtown |
| 525,000 |
| 100.0 |
| 100.0 |
| $ | 92,000,000 |
| |
Oct-03 |
| 461 Fifth Avenue |
| Leasehold Interest |
| Midtown |
| 200,000 |
| 93.9 |
| 87.6 |
| $ | 60,900,000 |
| |
Dec-03 |
| 1221 Ave of Americas -45% JV |
| Fee Interest |
| Rockefeller Center |
| 2,550,000 |
| 98.8 |
| 97.3 |
| $ | 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 |
| 86.0 |
| 99.4 |
| $ | 67,000,000 |
| |
Jul-04 |
| 750 Third Avenue |
| Fee Interest |
| Grand Central |
| 779,000 |
| 100.0 |
| 98.0 |
| $ | 255,000,000 |
| |
Jul-04 |
| 485 Lexington Avenue - 30% JV |
| Fee Interest |
| Grand Central |
| 921,000 |
| 100.0 |
| 78.7 |
| $ | 225,000,000 |
| |
Oct-04 |
| 625 Madison Avenue |
| Leasehold Interest |
| Plaza District |
| 563,000 |
| 68.0 |
| 99.0 |
| $ | 231,500,000 |
| |
|
|
|
|
|
|
|
| 2,555,000 |
|
|
|
|
| $ | 778,500,000 |
| |
2005 Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Feb-05 |
| 28 West 44th Street |
| Fee Interest |
| Midtown |
| 359,000 |
| 87.0 |
| 95.7 |
| $ | 105,000,000 |
| |
Apr-05 |
| 1 Madison Ave - 55% JV |
| Fee Interest |
| Park Avenue South |
| 1,177,000 |
| 96.0 |
| 98.6 |
| $ | 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 |
| — |
|
|
| 99.4 |
| $ | 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 |
| 90.0 |
| 100.0 |
| $ | 13,250,000 |
| |
Nov-05 |
| 1604 Broadway - 45% JV |
| Leasehold Interest |
| Times Square |
| 41,100 |
| 17.2 |
| 17.2 |
| $ | 4,400,000 |
| |
Dec-05 |
| 379 West Broadway - 45% JV |
| Leasehold Interest |
| Cast Iron / Soho |
| 62,006 |
| 100.0 |
| 100.0 |
| $ | 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 |
| 55.8 |
| 52.8 |
| $ | 30,000,000 |
| |
Mar-06 |
| 521 Fifth Avenue |
| Leasehold Interest |
| Midtown |
| 460,000 |
| 97.0 |
| 94.2 |
| $ | 210,000,000 |
| |
Jun-06 |
| 609 Fifth Avenue |
| Fee Interest |
| Midtown |
| 160,000 |
| 98.5 |
| 98.8 |
| $ | 182,000,000 |
| |
Sep-06 |
| 717 Fifth Avenue |
| Fee Interest |
| Midtown / Plaza District |
| 76,400 |
| 63.1 |
| 63.1 |
| $ | 235,000,000 |
| |
|
|
|
|
|
|
|
| 747,400 |
|
|
|
|
| $ | 657,000,000 |
| |
(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.)
36
SUMMARY OF REAL ESTATE SALES ACTIVITY POST 1999
|
|
|
|
|
|
|
|
|
|
| Sales |
| Sales |
| ||
|
| Property |
| Type of Ownership |
| Submarket |
| Net Rentable sf |
| Price ($’s) |
| Price ($’s/SF) |
| ||
2000 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Feb-00 |
| 29 West 35th Street |
| Fee Interest |
| Penn Station |
| 78,000 |
| $ | 11,700,000 |
| $ | 150 |
|
Mar-00 |
| 36 West 44th Street |
| Fee Interest |
| Grand Central |
| 178,000 |
| $ | 31,500,000 |
| $ | 177 |
|
May-00 |
| 321 West 44th Street - 35% JV |
| Fee Interest |
| Times Square |
| 203,000 |
| $ | 28,400,000 |
| $ | 140 |
|
Nov-00 |
| 90 Broad Street |
| Fee Interest |
| Financial |
| 339,000 |
| $ | 60,000,000 |
| $ | 177 |
|
Dec-00 |
| 17 Battery South |
| Fee Interest |
| Financial |
| 392,000 |
| $ | 53,000,000 |
| $ | 135 |
|
|
|
|
|
|
|
|
| 1,190,000 |
| $ | 184,600,000 |
| $ | 156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2001 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Jan-01 |
| 633 Third Ave |
| Fee Interest |
| Grand Central North |
| 40,623 |
| $ | 13,250,000 |
| $ | 326 |
|
May-01 |
| 1 Park Ave - 45% JV |
| Fee Interest |
| Grand Central South |
| 913,000 |
| $ | 233,900,000 |
| $ | 256 |
|
Jun-01 |
| 1412 Broadway |
| Fee Interest |
| Times Square South |
| 389,000 |
| $ | 90,700,000 |
| $ | 233 |
|
Jul-01 |
| 110 E. 42nd Street |
| Fee Interest |
| Grand Central |
| 69,700 |
| $ | 14,500,000 |
| $ | 208 |
|
Sep-01 |
| 1250 Broadway (1) |
| Fee Interest |
| Penn Station |
| 670,000 |
| $ | 126,500,000 |
| $ | 189 |
|
|
|
|
|
|
|
|
| 2,082,323 |
| $ | 478,850,000 |
| $ | 242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2002 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Jun-02 |
| 469 Seventh Avenue |
| Fee Interest |
| Penn Station |
| 253,000 |
| $ | 53,100,000 |
| $ | 210 |
|
|
|
|
|
|
|
|
| 253,000 |
| $ | 53,100,000 |
| $ | 210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2003 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Mar-03 |
| 50 West 23rd Street |
| Fee Interest |
| Chelsea |
| 333,000 |
| $ | 66,000,000 |
| $ | 198 |
|
Jul-03 |
| 1370 Broadway |
| Fee Interest |
| Times Square South |
| 255,000 |
| $ | 58,500,000 |
| $ | 229 |
|
Dec-03 |
| 321 W 44th Street |
| Fee Interest |
| Times Square |
| 203,000 |
| $ | 35,000,000 |
| $ | 172 |
|
|
|
|
|
|
|
|
| 791,000 |
| $ | 159,500,000 |
| $ | 202 |
|
2004 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
May-04 |
| 1 Park Avenue (2) |
| Fee Interest |
| Grand Central South |
| 913,000 |
| $ | 318,500,000 |
| $ | 349 |
|
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 |
| $ | 338 |
|
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 |
| $ | 407 |
| |
2006 Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Jul-06 |
| 286 & 290 Madison Avenue |
| Fee Interest |
| Grand Central |
| 149,000 |
| $ | 63,000,000 |
| $ | 423 |
|
Aug-06 |
| 1140 Avenue of the Americas |
| Leasehold Interest |
| Rockefeller Center |
| 191,000 |
| $ | 97,500,000 |
| $ | 510 |
|
|
|
|
|
|
|
|
| 340,000 |
| 160,500,000 |
| $ | 472 |
|
(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.
37
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).
38
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
ANALYST COVERAGE |
|
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 |
| jonathan.habermann@gs.com |
Green Street Advisors |
| Michael Knott |
| (949) 640-8780 |
| mknott@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@stifel.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.
39