SLG - Earnings call transcript Q1 2019

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Operator

Thank you, everybody, for joining us, and welcome to SL Green Realty Corp.'s First Quarter 2019 Earnings Results Conference Call. This conference call is being recorded. At this time, the company would like to remind listeners that during the call, management may make forward-looking statements. Actual results may differ from the forward-looking statements that management may make today.

Additional information regarding the factors that could cause such differences appear in the MD&A section of the company's Form 10-K and other reports filed by the company with the Securities and Exchange Commission. call, by may SEC conference measures non-GAAP today's defined as Regulation during the discuss company financial Also G. company's differences the The comparable GAPP GAAP press company's of financial and on be the selecting the website to directly earnings. non-GAAP the the reconciliation the each non-GAAP measure, release measure financial financial first measure comparable measure and XXXX between each most at quarter found by financial can discussed, regarding www.slgreen.com Instructions]. [Operator the call you, to I and now turn Thank Holliday. over will Marc Please Marc. go ahead,

Marc Holliday

Okay, Good us you. afternoon, thank you everyone, for today. and joining thank

leased. and asset. market. for quiet valuation, the for in several church $X billion foot, at X.X%, strong growth confluence XX of Downtown organic active SL to in there that partial billion. investments, a good Hudson continues fairly by range the announced this provided for evidence within contained office market pipeline. the The direction leases, of quarter, for tenant more major our The in above City XXX sell that own sale attractive Green NAV portfolio most In square portfolio, typically of of broad closing our in support consummated square end $XXX still new internal as again, sold continues milestones high quarter. originate XXX,XXX square square the feet in and market of unprecedented Yet XXX Manhattan detailed we however, first the square player in to represented signing start is our XXX,XXX a winnowing to the deals in bridges Avenue you market, million, active the stock. have to the In asset. Green, And and a feet At preferred feet expectations goals have April, of of hitting And in and quarter equity at leases Clearly, New of swiftly dispose-off December, for for of our to typical employment sizable the slowest in otherwise success. our Investor and SL we another category, thereby in this $X.XX course, was the XXXX we in we and entering was surprised Conference the excess our in debt of price our Yards to of that inventory, December. than demonstrate rents into moving deals price on for quarter Green XX them fund our non-core for the yesterday another the Notably, completed quarter. program, effective of strong Manhattan contract office increase aggressive York a and angled and feet leases, to in $XXX mature QX above in that contracting XX right specific already further XXX,XXX for improvement drive this our searches buyback significantly were objectives performance deals each level of in Park categories million capitalizing driving suitable a is to we sold And development was opportunities space mark-to-market performance. was Xth tracking. are is assets period discount for a moving our leasing for rents. York leasing three net growth, per along supply far with economy City of over There X the away the New area SL the is and executed market XXX internal participated share over the doubling

Throughout no global investors, appeal to in market, a true estate trust City recalibrate estimated representing the highly the was almost $XX $X and eventually mission in this of estate, than of estate valuation we and we make quarter of work, at for product market powder for buying $X more and is quarter, the will trillion real anyone. prior total to the private think the real it around who which the And investing, private continue During in global contrast stark vast garner views are real now potential in dry developing and real will that investors, fair of power investment billion with are dry the capital over stands billion quarter, be depth type in to and have there public and analysis that York York assets. share than with concerned for world-class actions it raised of our market New the market of investment, XXXX of investors billion its managing for tenancy our enormous to private right remain world. estate commercial liquidity. $XXX strong the first of market billion fair to than with incredible exact These invest powder certainly, we majority that transactions. New looking invest a York City. and of as We core City New market targeting with more did $XX up assets to sought-after return in Obviously, public properties

as be of projects We continue now complex activity. $X development is soon to redevelopment. worth process over undertake to leasing our One asset, or as Vanderbilt billion construction development demonstrate or with to in ability vigorous our just

building As and superstructure and out this months deck projected is of in October of above original off the the year steel the just plan. of to reached the is height top which of floor, the XXth April,

leases of far more spending with expansion of bringing Carlyle at are lease Group so KPF & team, Gensler, Madison and So Vanderbilt, to on of reassemble One Park. for Building design with server with Square the along Avenue we to this a success to underway the Emery a outsize the sweeping leased announced signed Heinz the our XX% end McDermott Madison Capital year, deals XXXX. One XX% A goal and we of Class well in to Will KPF, One Vanderbilt redevelopment plans we the new and project office across December Partners, the leased same to by development

for in One of the We transform that in XXXX the are break very are development confirming all can same peers has put plan of Madison excited We East South that getting the to dramatic tenants, already as to this game. is strong Midtown. that will our program ground plan. of in at these believe response the OME our redevelopment commenced leasing project know we with enough. outperform of and X together, for we you you Vanderbilt pieces excellence done from the stay Midtown When not we a But see comprehensive have our place our top and design in

profitable of invested to doing portfolio. buy a into a Our and York buying public share, And continue will price that New matter market capital value everything connection time the a of our team the desirable is we in stock, redeploy between we're only before of share executive we time restore and assets a market entire our in real because power laser the share buybacks estate focus we stable, In the deeply assets. in follows our monetize on to broad share remains and private investment. we know XXXX, your and our it's every recognizing more underlying

So with it up for we'll questions. that, open

Operator

comes of Instructions]. Emmanuel [Operator with Korchman the And from Citi. our first line question

Emmanuel Korchman

you've the book looking an within we're performing? Andrew, for appropriate couple you your of the also assets it's just over invented you on repossessed few about it of a had maybe Can And tell or that business, your we quarters. rest at talk environment Marc, last the overall? you retail assets maybe update the DTE how and

Andrew Mathias

Sure.

retail I we end think part portfolio. XX the positions two came after of QX, of or We Spring repayments as -- XXX next X on days the over so. of board the remaining in DPE of we those as anticipate have

So remaining. to we'd down assets be four

of majors on owner their rents And for probably we've take, out. market, XXX well. towards going retail you out -- think reducing assets are bottomed excess our we the unless distressed XX%. the the end case from acquire, be the ask find So new the we have example, I of the in terms if where back we asking from coming two seen to property borrowers assets to submarkets spring, retail probably in where rule think, wouldn't definitely of as we're most book, we're of did to in that going asking which Generally, than we're of to new

are There markets owners that active So on in you'll property Manhattan. will to other retailers meet market rents. the are we you activity generate major think and all activity in see will where at see, able are properties that the in tenants

think most bottomed the up. submarkets of have I So

Emmanuel Korchman

there's feet market? for into in you Marc, Great. for is in more that how may And said Could demand may of tenant either XX down think chairs? expanding or your be million tenants that musical remarks, space prepared how of And break be square much New of us that you new in the York. much looking active I is

Marc Holliday

you to for a and No, already. can employment in you another growth employment start, market, private from for are which space I elsewhere, good by growth year But growth was in over growth chunk sector our a driven off I in the is tell enormous is Emmanuel. it sure. portfolio growth. that XX,XXX Last We're is I this Paris seeing, good year job jobs City. year big mean can't, the of

using So segment. in as office not long jobs, a as jobs is there growth new and there a is big that

yesterday that most, Republic all believe example where of growth. great not First is the I of that, a lease is announced if that, we

the case And and enormous because leading most the million just think, releasing, is have people past in in as There had would but within year that's for So big certainly entirely XX and X of technology a thought we've to mean so sector is growth, spoken X, financial favorable. I'd services I reemerged there's a be a also one significant -- sector. the obviously, years new that's, the I growth -- enormously demand the the to they're almost growing. that's what with And industry both or contrary technology that's the why tenant of ago.

QX to square [ph], because XX let's X there not in million They're technology when new So given -- of legacy X because to XX% you all they're That's minutes leases. growth taking down of free market. mostly feet in see rolling the space. year, million a growth, say

an them, on the to cuff the off can't giving that I based I you at want the just But from in extrapolating represents answer million, XX% portfolio. you to growth. give So exact say to but an question least of XX our I have of XX% sort number of own experience just

Operator

of line O'Neill. Goldfarb the from comes question Alexander from next our And Sandler

Alexander Goldfarb

questions. two So

First, on leave at of a year. some this this modeling perspective, out Lauren year, which end will would coming in by that, get a but then that later the on, offset year next abducting exploration diesel came hole NOI Puma million $XX Ralph the

So And NOI that's next maybe think this what interchange are going away you just PUMA at $XX the the and how Diesel guys end year thinking should we could we on backfill this of million you be to impact about of about some should their doing perspective provide year? Lauren the to so year? how Ralph

Andrew Mathias

very I'll on is first before we probably charge The line. but late in situation. for of depending it's year, quarter course, highlight over year, so the we of don't nominal. out I'll for the back to so to a future be impact outcome address that we cover the noncash let took we certain, to 'XX expected I is The more of adjustment had because and for the that happens, PUMA market expect know be so really the coming to the off in part we'll half is have big straight 'XX, PUMA. the couple deal, the Diesel yet see months to and first last because take the of numbers much important what uncertainty that's December. the of write so a the play Diesel on not on on impact there And that that in not the million $XXX

Marc Holliday

million about Ralph that portfolio, get XXX,XXX XXX, has I a million and Every there X.XX I feet. have lot Polo the Lauren, think, the of between to year attention. in X here seems At number have square anywhere we feed gross. are some

and building at attention, different on. all and had a dealing it? doesn't. lease say so be in I the with if VNS, think Building The it’s on and a go Madison, it we deal than into with now we lot have doesn't We into are XX the gets then to how it fashion with of leasing XXrd, We large at lease go going can that we in it had very if tenant we'll paper, it, see I East goes a role at had that deal backfilled paper it [indiscernible] we with we'll rolled XXX News vacancy of and the the don't building, we vacancy portfolio. vacancy a

square as X given In million year, feet million and roll. said, square feet manage. any XX have We X.XX about we that a I quarter, million own

So the the. in nor exceptional XXXX it. I with it's end Paula how or think a we'll -- in deal of notable will its at 'XX, of don't part be size,

building a go that -- through which and earnings has long-term than when to see for again, level over place Our been years tenant of replace the for an notable I and upgraded POLO. in in because different what lease years, redevelopment to space will be was that XX space we we've for, done then of rollout have don't typical Polo a approach, we XX But building any think, I what for of. of any I know be a some to horse certainly don't and that needs building, XXX, that I'll decades call have

the space below just what revisit itself is need ever company. in why and of been think leased building, probably XX% and of really we Alex. in which related leased XX% turning that's I is and the the a of building kind they at we don't reposition, history So are in do, It's is

Alexander Goldfarb

perspective. Right. the I for and understand thanks

long-term permanent was planning reset I guys of on until rehab you Our is is... That's lease. if ground hold what the there asking

Marc Holliday

we mean, XXX. very our I necessarily. position feel in in say wouldn't confident I

but as we I are leaseholder was the the it fee or at Citigroup. well one maybe think and a venues, I I I meeting said X city that had, very a owner. of last the that said experienced on that those in that, maybe call at as we mentioned both

plan. market I be aggregate owner and the any a space wipe you of space, revaluation, But almost you actively an experience think, in going X could have you have of XXXX. kind where really But and about land more you rents XX in we've will I we we're so which as the until marketing had have And can't in probably to those in the city. elaborate say can expectation on off this on -- you buildings. position, redevelopment that other other

to different, not Steve it. which for think So a plan we're you add really going to bought treat the we here, any when and don't anything rent reset, and now know, deal building and By is we anticipated date this we originally we'll with want the the manageable fully to that? have we I

Steven Durels

in the one majority locations repositioning best point great. of I are of the designing lobby, space. of into at this part don't we of the large of program time, And extremely know the very development city. It's relative be of elevator obviously The blocks entrance for the Polo building. It's pricing other has will for capital that moons a for got the building's the space think to for town. deep we've we're cabs the that -- appealing design we're building. and the of competitive

Alexander Goldfarb

go city the all the today act as that question, Marc, today just control at Okay. what's guys second and discussions. you then passed rent the profiles what Real Estate given buildings by passage you passed? are people seen City how that have Council in the look or way you could that the Have any NOI still energy or anything underwriting of buildings the know Banking Hall upgrade be would potentially to discussion, with change you been recent into is And did in Commercial commercial

Marc Holliday

management are and for possible goes today passed our a been being citizens are what major with everything buildings systems their by or buildings carbon of preserving making And XX is with doing the and if any we've was as city proposed that being lines this, good because corporate Not conservation wrong materials that we've been smart green electricity along being very and building in owners on and being years. of what's emission -- passed and at case, extraordinary something potentially lowest Council lot the as it.

is XX% certified. we our So of -- portfolio I LEED think

We number scales rating something of have like shareholders published EPA, energy and levels. another XX We're in a energy were We that store of high on -- star XXXX, partner again, very year. see. rank the the

performance So like were on the our of one, sector. over Bloomberg index and we top in

the there'll haven't operating -- investing of to is buildings and cost lowered. bill as the some you some done renovate this So they'll we're been own because be onetime contemplated, buildings older passes ours benefit you are that we certainly in as have costs the leading be if are won. would at already like path I anyway for compliance, But your but additional edge, that the think it that's

times in XX% be internal we me goal that. that partner own the emissions more many XXXX, heard than lead about reducing to administration's are wanting energy accelerated goals a and have our You've of by

So shoe revisited approach, they've be fits badly bill cases, X are I of a one the do all an look, which to appropriate. taken, there think, in massaged that, -- is and some because elements need

we're like spirit the get the I have the Green of having making input Urban a sustainable, down had, which with already path. on and changed our within, of So more a hope Council blind there're buildings turn in eye some that to those framework in path continue owners to doesn't more that feel help we of that recommendations. But City general reflect the and details hour and the had bill we've to the Council would them final other fully

Operator

[Operator Instructions].

KeyBanc Craig of the Our next call from Capital. comes with Mailman line

Craig Mailman

you million. in just had of big to book, you see the how year? guys another have maybe the to trajectory us -- it for could target the shrink the going the rest give DPE balance origination a XQ, Just $XX for back to year but the for But quarter by guys you is

David Schonbraun

our It's change in David. originations. We there's and think we any XXX% we when attractive when guidance. And I past find can't get control

And think in to end you're payouts year, we quarter So get be next level as the by the and set. probably, we originations. the of the higher will seeing, I starting more front-end have that you'll at expect

Craig Mailman

got on just sales guys then you And environment, the done. XXX

Just of update else And pool what the us guys just what near-term? the buyer curious in be market kind the have on maybe what you was of there? may depth the currently market in here

Andrew Mathias

Sure. on It's contract were demand were still process unique strong which Andrew. We we for market great had foreign There so that a offer, the asset, due New -- that and kind of asset without both felt hard to the and York period, to diligence is went there. about there domestic. very

Second of question? part the

David Schonbraun

market? the to We have

Andrew Mathias

Out appropriate healthy market. as we we're watch next of have will be and evaluating of sort the rollout which demand. steps to discussed, next meet the it , we're more

Craig Mailman

on That's was the XXX? helpful. What

Andrew Mathias

X-X. X.X.

Operator

line [indiscernible]. And the our question next comes from of

Unidentified Analyst

looking just replenish to want don't or is give this you lot to you amount what guidance do option this next realizing billion there discuss year you expansion your a that capital? on ability can UDP of of willingness know and XXXX, portfolio, of at I in maturity $X.X have

Marc Holliday

loans. Yes, a with working I year, well we extending think we're active on $X originate borrowers and look, existing very over billion

in life kind So of general. somewhere X and think average I X is years usually our between

a where to to have, pipeline some do your think, right no up to but maybe than the we don't it want working has extended them the having in in positions, we'll issue and end with probably levels been ours years. it's be. given It's we're do historical have now exactly some prior larger deals we I junk I little some provide -- So

Andrew Mathias

high, DPE Yes, the over high? push a year. the of I we the add very and of always off it's also interesting for the is and It's probably you hugely that. so mark balance yielded years hear low years that you obviously, shareholders, number always poll direct can case, So us, we in more sort There high, just opportunities this for can the ownership. of managed XX% over led to we a is profitable balance can us from that too a keep properties business, great isn't -- dozen best would but program high, just always investment and this kind confused too rattle balance the it's to or compelling been which business the keep

the great. So programs

in don't I time, this is paper the back think I good moment FFO X% have equity our structured very further a or our think into investment we probably X%, yield and wise. reinvest balances as that that finance also the any earnings reason basis on buying is into stock this we a hovered management for either unique of own paydown, own it. around But of the sort push a on into conversion but X%, shares, almost on leverage of yields debt neutral close to in buying

at for active a expect where but is, out year. a money not market front choose you things parity, as could the very be next But this very is very for which the year be have have next time year, into we'll gauge whatever $X.X next to that it's mentioned billion not. originations us DPE same now, interesting almost year put year, alternative coming and we where the to back So with in it change stock the and interesting years levels certainly case to we're and next if is again, the we of we may reason in

Unidentified Analyst

selling for prepared the apartment eventually And, will and would be referenced -- will back lot happened catalyst assets in Because thought a you you your what hasn't it and shares of market yet? have remarks, just Marc, us the been buy Can valuation. recalibrate that? your cutlass market public

Marc Holliday

share, much NAV XXX higher. went we've into guess, NAV. The underlies got -- that north mean we of we and again, out for Well, put us Take then think, assets they're its much at I than, what worth. levels worth higher NAV a talk just right? XXX, $XX we much, I continue, I extreme, about

Columbus, So just same when X and last year. as the assets that's those and again -- we as XXXX sold Broadway that's so same

have end we properly not it's confidence So able theory, being a you to we portfolio. our value, just sell And NAV back a you limit, conservatively realizing, of get so almost high or shares almost the cash discounted then it, would above when self-fulfilling. I and you buy the as evaluate, in the that, keep of say actually the its at at degree is to or very value taken

not So we doing people of be because that'll come years greatest so But XX whether program catalyst hope so. to fully in certainly a expect company. I've continue we've and of for if to as one investment not, the or that seen public in our and as said we and shares, opportunities can is, probably buy this a the expect would our we before,

Operator

And of James America Merrill our line with next the Bank question Lynch. Feldman comes of from

James Feldman

Matt, your same-store your expect leasing it where Audi the be would portfolio of talk looks for that? your like on trend you looks those like Can year about some metrics, just NOI, maintain full the And like year? what of this are guidance, spreads. trending your you thoughts of guidance ahead around how rest you're

Matthew DiLiberto

that to goals X ahead, course. that trending out back were not same-store to position of was of months but NOI it's but there just guidance were -- occupancy, ahead and so mark-to-market, of everything ahead happy or December, we see in months, encouraged FFO, Sure. three any at we across-the-board, we're in set in lives in, expectations this by Yes, our ahead, a our point actually but if are volumes we same-store growth,

James Feldman

then Madison tenants And think more for might last tenant One be can and about just you talk in the Vanderbilt? you and might be Steve, Okay. of type invested may discussions of X for what even

Steven Durels

equity with good Vanderbilt the called towards related attention building One got of almost I tours house, Vanderbilt. exclusively the tenants start and another we financial it KPIs will site be basis. services in on over upper of presentations [indiscernible], The podium third or board case years. the off doing I'll a think, our We've the with financial almost -- at well fund. we're services. We've business every One of the other but a sized as discussions several of finish lease of focus the with tours done daily, And would private were one Sure. all signing day active there very got that not services if and

feeding point. that, tenant With at But business. So regards Madison, said there is base obvious X to we've is the the large from this RFPs momentum having financial received really on Tammy. services itself a

about street the park. the exist brand-new, bringing because large-scale, not that where So of plans across a be XX a sitting in Fintech it's to the from been for does development surprised building candidate But likely I submarket a XX and at right point. may the be for to of building. of we're tenant opportunities product front be tenants wouldn't that this for we've People enthusiastic state-of-the-art on or really top line sort the type are subway

leasing all checks be that is whether financial your whether services perspective. the type your it wild tenant. going So to building, success a I But or boxes think, and time from

James Feldman

full user And you think discussions? based it's billing on a

Steven Durels

users. be will it space think I large

X,XXX, its way square-foot X,XXX don't the to leading finish whether its and X,XXX, it or will be think Vanderbilt billion X of off X going is leasing So program. tenants there's One

Operator

next our comes question And the from Derek of Johnston Deutsche Bank. line with

Derek Johnston

versus on and leasing differences interest development, the could and redeveloped assets significant that notable? trends, any power your us you separate Just out are pricing portfolio and with trends concessions give

Marc Holliday

Steve?

Steven Durels

where been are for there on lot quality the construction two vast of portfolio there's demand let's has brought, a to quality which see, over buildings, That's redeveloped camp into go slight majority or good for mouthful. the better that's the new a redeveloped Certainly a year mouthful. and our sort Let's buildings, of past buildings. been of tenant a of the

Now new beneficiary demand have it. on we've we're finding tenant a Street to because investments and we reinvested the capital acquisitions heavy for a XXth lease continuing of make by buildings Republic that the like those in and portfolio, West strong we're First XXX evidenced the buildings into as

where a slight with building. carries odd done go, to think TI you we've but can a As Vanderbilt, example a One far leasing than where other given that $XX tenant situation square we in actually foot Yet this the go construction savings. more more concessions that we've as I don't there's be and foot high at new buildings all as commodity $XXX tenant in best paying less and function to supply and than more went. order have to of have But a is spend TI to lot in sometimes in quality doesn't [indiscernible] buildings where a I product demand think you and demand that's a the case.

Derek Johnston

any in switching update there? And out the that Okay. just market interest markets on the portfolio have and Great. gears, you Suburban

Andrew Mathias

Andrew. The not is markets significantly today. capital It's Sure. are the with challenging in suburbs. us more Isaacs

We work and Arps be to want generate trying including assets is to recent at don't accept deal if XXX which the a kind for White you Hamilton we're the in continue of we through But prices with us. renewal distressed portfolio big to activity, Plains, for leasing decent will. patient Skadden, our because

wind resolution expect, strategies of portfolio. of the we So to over execute the the some different and the year, course up

Operator

from comes Nicholas question of line Scotiabank. the Yulico with next our And

Nicholas Yulico

stock buyback, Marc. Just turning back to the

that of a where valuation if gap. to this You you're issue to do that's once needed doing the prevent program you it tax willingness do ends? at just what's terms But [indiscernible] whether more close is current can you buyback to in a remind or talked us about over from time larger would

Marc Holliday

that of, us I'm me. in you're prevents here, correct that aware nothing Andrew and there's No,

we funds But of question in have of efficient, inefficient. tax at we that's efficient, authorization. a moment, source completed partially a $X.X billion of tax and source have cases, some funds that's tax Somewhere the

may $X.X be think, I well or billion so into authorization, we're that billion. $X.XXX

call to earlier a has portfolio, cash I the was I just those can really for And feel to more the that we take we yield that on $X.X that acquisitions X.X. then have deal neutral going future, extreme, coincidentally referenced, in comfortable least get at somebody when for into in from billion the repurchase. the guess, point we its dirt FFO the not than sources the which the -- of to differentiated making have invested revenue but just way get finance DPE the of So we evaluate there, on that's

is that well could that formidable source billion. another the beyond clearly go So $X.X

nor year. mean it a a we So -- for beyond that and the for balance further with this other strategies. much is have need next But here sitting fairly obvious that, taken to haven't that of don't we probably expendable XXXX -- I in we plan think do plant year than we

have not would of enable have We I developed us yet get go deployed, ahead want don't yourself. which to further. to But

it probably I to is the know would reach be if which the our price level, value by that we think that certainly, increase then of And we see they'll it's program. equal that occurs, assets. and next is the happens, of see that should. to over occurred be -- or kind the Once two, natural goal year

Nicholas Yulico

Okay.

question, I'd the within is thought of valuation was the wondering, that was X of I you that about we Hudson credit what do market? XX a is around deal. hear pricing the? What XX-year earlier, does mentioned building in asset? lease the you And that credit would Second affect to like indicative call cap more. it trade long-term Or rate just the that long-term deal heard

Marc Holliday

and it's exploration, a type universe certain of that multitenanted large you the I given of it not expiring, the takes makes given it's so if very aggregate billion how certainly, the a -- transaction, of $X this sort I bullet entire think buyer. buyers And the of you size. space have think, will, smaller

in So we of of rate on terms I or inside same around XXXX, we achieved were think cap that? the

Andrew Mathias

inside were of it. We

Marc Holliday

the depending think the X.X leases good tenant, city market where the credit is I cap, sort foot large single stated, tenant of per for second a right now. in on rent between So and estimate versus stands X

Operator

our next the comes line [indiscernible]. of question And from

Unidentified Analyst

are next other any out we years, that renewal early look X Viacom or perspective? of similar to should we over from there the into NOI kind a X cash taken As be account

Steven Durels

XXXrd larger Avenue, we have in a years tenants Well, general prime case, we where different all years and you X for a paying publication of out variety mark-to-market magazine foot. county the most $XX leases to subleased part ago advanced them of in that at when to subtenants. lease that's market but are that The space us was In with out. of national, case for those And time, of expectations. significant X instance, have have go several increase

we're treating So we're there, a on in going to fish. already big paper and big rent on see uptick people that of

couple for going big have of opportunities to I up outcome. very to a be us So a there's positive think

Unidentified Analyst

had Okay. asset guys after the stabilized? leased long of be to living by end the I it year. we you limit XX% you should a One guess delivering Vanderbilt, expect being as And for of at goal the year, in how QX next

Andrew Mathias

have unless or at that I the there Well, thought was I conferences, the scheduled think to have at but the you X Matthew, because, right do get X numbers lease we to or fingertips. end, XX% full We'll last which don't have you don't I remember. out that back I put on it? my it through has December XX%, of

Matthew DiLiberto

it year think drop XX% you'd basis. XX% year at starting a wraps up full the I of on

Andrew Mathias

think, full XX% stabilized. is year, I

schedule. I was what think that that's on

Matthew DiLiberto

And revenue the for then intended recognition start this Summaries as building tenants order start earning space XXXX. of tenant be August X the our of earliest its of should you for three its XXXX use. standard space later revenue was But intend with base use, ready the the building early to as purposes, is the when But recognition year. opens late in is use space for hundred revenue. recognize we sort

Steven Durels

construction this Yes, over quarter start turned of we year. of building, for tenants the to their the summer by

in of year the of a having a and TCO in hand. advance construction building So completing

which XX recognizing days, will tenants revenue to within those we'll means all at the days probably and space move So in their of that construct XX TCO the point.

Operator

John question with next Guinee comes the Stifel. from of Our line

John Guinee

one Matthew for quick DiLiberto. First, a

operating asset, a at use the value. leases? the of you that is of the ground million those think that's of right good If Do the assessment about lease ground -- $XXX of value to lessor you look

Matthew DiLiberto

accounts no. That That of out have to balance indication gone is of not leases is that point. answer The the odyssey get simple this an The for coming No. to our long decade's sheet. ground that is lease all new the finally through the accounting value.

You put the it's of some there's and readers of it you are the and statement as abilities on either. on probably to indication the blessed balance balance sheet financial just value no using a and put sheet discounted of value at grosses no cash from the it right, young my flows

Unidentified Analyst

so. Thought

if is Slide Okay. What Thanks watch in write And/or not just to place as your look square this? but me way out your at who in in partner sure deck, rentable this now? total their you how Madison, that development it? rents invested but if JV going the is net you you gross and or to the going a who figured X when and and -- come finance to feet you And created budget be come you of as yet going are redevelop net

Andrew Mathias

million one, going is yes? million X.X Madison, X.X Madison, in X question on a now, place we're escalated The $XX feet in-place square develop. we as what's The to the foot. feet, So rents square about

Matthew DiLiberto

Gross.

Andrew Mathias

spent everyone we give I think and gives probably market and and of loaded JV TI, the the of adding budget will December's That in When think podium construction way, be everything alone plus that cost And hard [indiscernible] range probably redevelopment actual would marketing, redevelopment for the, somewhere or minus. at physical work include it scary. it Gross. don't whatever we in meeting the for time a amount interest, over extraordinary a work this with partner actual the the cost the budget, at, by million comes obviously, we about But commissions past all is which of estimating, of of we've TI designing magnitude tower -- $XXX cost. order give and everything. fully XX this million $XXX have completely budget, land reimagining what, to we'll months up deficit with the

John Guinee

this value what rent have you of creating? or growth And a for do you sense sort for to have XX

Matthew DiLiberto

We down. and yes. is know answer up The

unveil going I to December of to people whole of can as I think having One picture think without in Vanderbilt all going -- it pieces sort it with to we're confusion. did because we the lead we're

point expect being than middle XXXX. we that XXXX, want for tower. of achieved we're buildings if that's we but a Midtown what much average the give that little much at sense all still which, obviously, from to in where point good escalator those rents, is. So to of among there rents are we deliver be most of desirable The over higher Even rents a daily South going podium very higher Downturn alone, today product the the people 'XX, that, will have are in price to of markets think the gross than the current a $XX rent in for

modeling don't rental Doesn't to exist based in we we this a in inflation. hope rate of based be hope mean not business just So although on means inflation, we are pricing that's it we it's higher. expect to not building we're one there XXXX, off

exists redevelopment little So like it's of a this it's deal tower. construction, its One well, tower, underwrites sized new at Vanderbilt and not In large-scale an exercise tower, and easier it's extremely it's it's it's attractive but did. a a very ways a some high-rise construction, but a building because medium bit the space,

more deal with cetera, its think the terms portfolio in operator, returns, that's points, is deal both timing unveil the cost So of efficient. metrics last unless the own et in will I cost, yes? we certainly any question, the financial the And hold think the when we rental I have

Operator

Correct, sir.

Marc Holliday

early XX minutes finished today, tremendous. we've listen, Well, Okay. so

QX a you weekend. and have look to upcoming you very season So questions. quarter. soon. Easter was happy your It Happy everybody thank most great of this for more and importantly, a speak the forward you holiday and to in see We same holiday

Operator

Ladies program, and wonderful disconnect. you, day. a you today's gentlemen, you for the conclude Everyone, in conference. thank and have does participating may may all This

SL Green Realty (SLG) 18 Apr 192019 Q1 Earnings call transcript