SLG - Earnings call 3 2023 | SL Green Realty Corp.

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Operator

Thank you, everybody, for joining us, and welcome to SL Green Realty Corp.'s Third Quarter 2023 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.

You should not rely on forward-looking statements as predictions of future events, as actual results and events may differ from any forward-looking statements that management may make today.

All forward-looking statements made by management on this call are based on their assumptions and beliefs as of today.

of risks, to other in reports appear Factors MDA the cause that the filed regarding Form Commission. and differences latest with such are sections and by information the uncertainties other the factors and could Risk XX-K company Additional and company's Securities subsequent Exchange the set forth under discuss as defined measures during conference the Act. Also, Securities financial today's call, non-GAAP the Regulation company G may by

measure in comparable by measure XXXX on Form The our the found discussed GAAP company's GAAP www.slgreen.com selecting financial most each between website third and quarter financial the press directly of X-K relating non-GAAP company's to earnings to financial release at XXXX financial our regarding our earnings. and differences the in third included be current on both reconciliation the non-GAAP measure comparable measure and quarter report each can the the information supplemental

Officer and call Before over the Executive you. Thank [Operator turning Green Holliday, to Chairman Realty Instructions]. Corp. Chief of Marc SL

now I Holliday. go Marc Please call to over Marc. the ahead, turn will

Marc Holliday

Good on afternoon, quarter and you. do global market. what best this seeing will obviously focus but We're moment third of Thank Okay. great call at stress, to today the in our the we holding company's in a everyone. we're performance

we're and and current market for, for summarize milestones you developments of number a a right positive hard the While because very remains challenging, have them. we of now they're did proud

under ahead of of First, construction months the marking and of we receipt well the building with the of our celebrated of occupancy, budget. temporary certificate Avenue completion X Madison X schedule completion

sales negotiations our already and unsecured Armani million partners, repay units. $XXX equivalent Giorgio pending units beautifully used joint launched this venture XX at received of we Importantly, this which XXX for Madison milestone of the triggered additional final spoken the executed designed Earlier we Avenue, with and amount equity and an Residences month, to half already debt. payment on the from

process We the and Armani over lease. Armani completed the to retail turning of have in the are substantially space store commence also the restaurant and to

Building refinancing XXX at I'm our debt With X future. combined the business plan, Avenue Seventh we closed now that foreclosure the to and which owner in the through are fee year, been the we XXX December. mezzanine of paydowns in intend unveil acquired a Spring loan off planned XXX partners, successfully the are billion with we our modifications, momentum has previous and litigation loan Madison at XXX resolved, report now interest and of well-executed bringing in fee JV Street, experience billion and UCC our our are sales to for positive additional extensions Madison, extensions finalizing on Avenue and fee. in happy our reducing have to we extremely near All we total $X.X $X for and by extensions control

Madison gross Avenue million, Upper most we first retail for last And the in $XX resiliency sale partners and boutique East our our Perhaps in alongside and value quarters. XXth interests yesterday, the significantly of demand of the Street a for demonstrating of announced time XX total XX properties. for the

assets. operating quarter a occupancy should back that I the next continue in XXXX. report to steady way portfolio of with into all trended quarter but can that to important an that and slow signifies projections of into got the of the This past You've is on the December go same-store stabilizing this moment XXXX. up climb

leasing million this those back negotiation workers Those nearly good in are X.X important activity average, XX expected probability renewal sitting The favor in of are indicating and or trend calling evenly leases. year. half represented we as continue tenants a occupancy of lengthier a amount companies back feet January. week closure lines of that is we position our high has new XXX,XXX footage for are being pipeline of either this to of of Decision people leases back work signature, news transactions. hoped to time which past by in delayed at are to achieve than by and with had square It's particular with that called note some another alpha between gains leases split about the square this

office businesses crisis from and it way productivity. maximizing are establishing relationships more directionally, is in of and predictions community, workplace building York overblown. City's in that of presence as physical But City leading best championing buildings way promoting the the way, New appears existential meaningful fact, of and more an York And New most teamwork,

We will provide experiences. convenience our is core to today looking a and workplace maximum properties to benefits continue and elevated amenitize enhance workforce that to for

exposure XX plan strategic are months, implementing going the real We, our projects, are just up and indebtedness, but industry we increasing pay increase debt to development the and refinance estate portfolio, along succeed. rate hedge JV certain future maturities our interest selling to with our extend by to and of rates, impacted experienced assets over and rest the down the lease past rapid we the complete sharp are

that our strategic we assured will opportunity, but moment in this conference, about upcoming are business. at advantage We rest growth repricing and the dislocation of for asset greater our take plan at management XXXX to talk we through liquid length borrower market great ready and intend of our investor

we look into optimism. for XXXX, reasons So as we real see

as my for the call say estimation, farewell a -- earnings XXX years, plan me a over and will leaders the last Mathias. generation his of help That be execute today company company. have bittersweet calls, for We Andrew After to XX earnings to to new is prepare it. execute of and we last to and part for

it's time and While company well. right Andrew this hard the extraordinarily the right as for decision, time was probably an for the

to a invaluable company will me. and of as best new he contribution he's from and to he's the and other I'm become the history. Andrew Director an City ready a and for be will will one trajectory Andrew He younger friend talent before well the and the on opportunity the to been as company us the adviser made opportunities an to certain can have to in on embarked partner speak biggest estate as -- first that. for things, year. move have undoubtedly bring New is time York opportunity incredible will leadership some we that and the of mentoring of that to is the up we're that's to we've we is assume positions as real continue happy a But a new in rest thing that

that in to nearly on and unimaginable company, ago. in and of essential opportunity loyalty Andrew thank XX this for take personal the want to things been it's a I On entire ride note, been. years side-by-side this work and years incredible company have behalf accomplishing XX for I friendship. Andrew been Andrew's were in What have dedication

few Now I'd like to hand say it words. off to to a Andrew

Andrew Mathias

in and many Thank the great far analysts together. inevitably them quite this this has come. run in written the expected with been by best we who ups from will a all positions. years not the Buffalo and kid his talent come, go, and formed the of company will experience I deep a with I and long I'm positioned you, It for over confident appreciate many kept would a amazing Marc. touch business, lot quite SL industry, life. in their relationships anymore. some young, it like kind shareholders for that so of stay just say truly be never it and have a comes, downs have some bench many young company, recovery new when and And of we've seen an at anything and Green a it's But

involvement to appreciated. I company's Board continued look as over member they'll kind as as and reach Marc I've words an the and success me of in as greatly is And all a forward that adviser the last to gotten have and couple weeks long the

thank So you.

Marc Holliday

open guess note end up you, for Andrew. on And questions, we'll Thank great. I that That's operator. and it

Operator

line Kim [Operator BMO John of from question Capital from Markets. Instructions] first Our the comes

John Kim

time Congratulations if compete take over got what you he's wishes savings responsibilities Who's and be more going more company. to G&A decision or the the talk and him non lead at the elaborate day-to-day forward? going the to will for best Andrew. a this Can on to

Marc Holliday

Okay.

themselves but So guess us a it's I little I heard think, about it's muffled, correctly, John, when the really know right have if none you And that talent I a of timing first cases, we know, professionals new starting I question are XX, starting at XX was in if decision. time, have with younger I XX, it think extraordinary And but here we you there's never unbelievable now. XXXX was think why very when's of hard and SL a chapter in that of time, years. of Green, new opportunity, and recognition in this some been a

and the felt that relationships think partners loss, that knowing feel a opportunities a additive serves going the just a moment of this best think this an that time the have company is at Andrew time we for of good I'm time that role the we out is it's of step critical move a I with still feel restructuring, where their for something you for interest to overall maximize move and can in that don't the and co-investors still amount me he's talent kind for generation good to we on and will, for And of a to in allow limitless if new was the of front adviser a lenders this me, I is because there in just I probably And them. company. and up right to sure Andrew great a to board that is but

of the vision of to In effect. you responsibility or terms something that I think mentioned

'XX, do, are to we'll to Board we're to there's announcements several some The is and like measured. next always to and still a months, imagine meet, like for we'll reactive. about successorship some Andrew role we how And lot additional we to do. just work the want to being, I going I the going through make. on But we to As forward. take -- be we'll talk have I be division time year-end, don't here that in going would time

when take we'll 'XX, we'll will and we're some you and in sure to style, right Green doing we'll numerical The I December running. piece, stock extremely nothing -- know, address. issues, the make stone will be day of to of that of XX no get No year and well off Matt, then with last the be think, you it last dealt be want unattended SL and which entering be As we positioned. the to

Matthew Diliberto

and Yes. million rate basis $XX G&A $XX savings between run on million. a

John Kim

ask report wanted maybe you XXX now about core I Madison, at Okay. to condo number. that's the sales

assume included that to fair condo sale it be So next year? gains earnings is will in

Matthew Diliberto

sales, FFO themselves 'XX Condo close proceeds the earnings sales. they from to are benefit, the Well, gains though. those condo not extent in an have would sales on

John Kim

is new this development, correct? So

Matthew Diliberto

-- we those gains XXX from utilized at It's said units XX -- to Those long-term FFO, hope, Madison in be are was up our come think 'XX. this the -- turned I half proceeds and I the would which the the condo to a Armani Condos, is your which been will base are spoken general then that's answer question. not top, in, to was late but of for. at retail Armani. over lease least

Operator

question of Sakwa from next line Our Evercore from ISI. Steve comes the

Steve Sakwa

pipeline of maybe guess maybe best demand see just front, you services, Congrats tech about I whether any buildings that's types tenants little maybe leasing of kind the you bit a the to on and law firms, the kind just its the talk for could of hibernation? of that out wishes. and or Marc break down its of big Andrew, head hearing types financial the most be they Steve,

Steven Durels

Sure.

big like So a X.X that. pipeline. from million behind in that care, tents. pipeline business million between the got other XX% are prospects said, feet mixed nonprofits, to current as out got a we've health balance of The long are leases those is list services, the Of fire we've X governments, bag of include number. things right that, our that in Marc now, square -- There's pipeline premature

-- and pending. services, the busy, quality the XXX the continue a -- of deals we financial Park, in at -- So is, portfolio might are XXX behind are the very the as all news said active price-sensitive or and Park out leases Avenue, XXX that driving in very now. with leases is of buildings more last of are rest expect, The to increased in call boat earnings the A type we the foot is good that see lot the have right in traffic as product. clearly, proposals we Park larger are Park, particular, of buildings. big deals better you lot that is the

And to next year the The I to the traction to now going continue as come and think year. over leases. note. I see to that needs that's into convert early a think next is step positive going to -- we end we're that And of the as on

Steve Sakwa

year? impact disposition Okay. or Vanderbilt uncertainty. what interest light How you some I leverage you are Andrew, in about And just you guys maybe talked Can and rates over and know, just about seeing market the talk to dispositions, economic possibly of of you're then forward the and sales bit question, where asset doing moving maybe maybe that thinking next a little the about the are down more maybe One selling additional second even Marc don't and had XXX.

Andrew Mathias

really Steve, the One matching to of And Vanderbilt. up in the of on it's of on Madison. further which actively some with just yet. you right XXX condo We're made we , have. still out decision Andrew. the Marc interests really timing balance world to from sale other that Sure, regarding interest the talking And We're a the lot there, requirements as it's either the retail mentioned interest firms a and the around certainly, these a in saw groups trying haven't

turn Asia demand have a Harry further. you're I'd So there. speak him from He it what to like to investor over got to back out seeing just from about little

Harrison Sitomer

Andrew. Thanks, Sure.

this quality from specific just stuff in get plans, to from to ability interested we they're in quarterly investors hear making Asia. mentioned, and business investments, do roadshow fundamentals office done. believe in us. select returned our for that Andrew believe in new They office, continuing to really underwrite as We're So they foreign execute more in and the market our

on our helping are push the as of foreign focused in to specifically rates. have that that the still the relates to they it borrowing So variable Asian the ForEx very very cases, We're interest impact low certain one and fact has against countries investors some rates these on currencies. U.S. with back in dollar some that U.S. rates,

last through successfully us saw Park. quarter that You XXX navigate at

One good a would We're very I've And response ours, we focused momentum high pressure that parts expect Asia and that different to and on putting we'll get how by happy be try on was hard world premier XXX something we're that party, working going getting. next priority few Vanderbilt for to very lot got interested the of Park asset, but a Obviously, OVA. the get It premier in see multiple highly of location not only I we're that done. year-end, we're done up. been and to of around getting to comes on And that and see with the months. counterparties,

Operator

Sandler. Our next question Goldfarb of comes from from Piper Alexander the line

Alexander Goldfarb

carve. earnings guess the Marble congrats. to Andrew, you it is having do I call. this for

New the next estate questions here. real asset deals. Two to look columns forward and where congrats York your So have

always capitalized the modeling. bane sort first question, of of Matt, The interest,

did the X You Madison you guys, delivery.

got $XXX million. the You've

on closed interest of XXX some you could just just capitalized given moving should expense also framework we think put maybe about those year, You impact so pieces? the how about next Madison, interest

Matthew Diliberto

consolidated specific X to Yes. projects, multiple joint something thing your It's when Madison, a $XXX million, average you particularly whatever proceeds Capitalized million, is development, based call in interest times you in the when that's that rate interest property development it's you even that complicated $XXX capitalize interests like is to rate, want. full interest. but million X.X% reduces big a use therefore, in tough by fully interest X.X%, is It's weighted in, have investment the that interest a so venture get model you redevelopment here. on exercise, capitalized question, $XXX on and asset million our $XXX because capitalized can't lower at our a number which

up matter goes gets capitalized as Other that for assets that else anything XXX leased comes on, leasing like down. or interest

to on an coming offset from capitalization. there's NOI interest So

Madison So start that forward-looking I will through NOI as maybe but online significant and capitalized sure some seen as into optimistic models changes will to that yet, through people comes appear. X interest even you benefit, yes, roll and XXXX haven't models. there flow be it tune through I'm flow those so as will people up XXXX just I'm reduction their their

Alexander Goldfarb

were reduce that on, But I we bringing is we it running because make sounds that's would the that -- like XXX already building for that that one to that big X helpful. that -- want clarity, XXX correctly? capitalizing of obviously on brought just your Madison, is through? be And that -- account then the sort for you and now because you're on sure interest your just it Or it? just books by you would

Matthew Diliberto

in being We would prior We interest right? have previously, quarter wrote that had written it leasehold the that off investment a back against it second to investment. been capitalized off,

Now will interest a investment. against the be would capitalized capitalized be new there -- there

interest, but there on So be still investment capitalized a different will amount.

Alexander Goldfarb

with question and Okay. -- mentioned then the people having other And is, second bringing younger departure, the up Marc, step bench forward. Andrew's you

the sort On rate this Andrew the have that. But mezz start regrow people big interest business? the mezz transaction of we normalize? down comments is long you've to a Does other wind take into should that once you wind departure into step mezz signal will of down? and held this that this markets business will a guys and Or and you preferred as that was business Andrew's

Marc Holliday

for have worked debt company, and investments the probably years. included Sitomer, question. an forget. I been of bench, Schiffer, the don't Herschenfeld, Yes, by my over whom Harry I we've Andrew sort business 'XX, it's good billions investments led professionals know, a Brett since on, investment over presided XX which Remember, of XXXX all under whole and countless doing Andrew's or this tutelage well equity of and billions Rob

core $X business Harry anywhere always I that guys elaborate and a backing Falk, There up and $X with to it's has to that team on. him. young Special that So are Servicing of Head billion billion us, year behind been say, that average, of Andrew helping runs we on originations other have under who's and team, can would between gross a him

that going a deep. we're experienced 'XX. in in But in the state very way 'XX whatsoever will like what very, bench be very in to bench in big a much I is illusion hope not be The very we that XXXX, business, is no are that business and

I think there's solid very opportunities. I months, be of to said XX going months ago, year said years X A X months. X ago, I

and What December, I aspects you where you're other debt, then assets, hedging, down many together monetizing and that business like to is deep that now this what capital in of we of opportunities we should going situation are to with taking going we've as be settled advantage is market pivot new to years. discretionary XX about expect the respect that investments think managed for our have account of think, the I both assume to full in and capital ways conversations to nothing going paying hear the out various the opportunity focus in is a with putting partners in in plan probably seen

late back dial to of 'XXs first I experiences early have get a comparable 'XXs, bench sort to point. my to in

say, an mean, is So I'd yes, or program, the active understatement. continuing I

Operator

Bank of from the Camille Bonnel America. line of Our comes from next question

Jing Xian Tan

guidance, that the implies about excluding swing has only consider midpoint which tap you more talk you can Can to factors wide? the your so quarter to the we given talk onetime go, you update changed, And should full with year range items. big one the drivers to behind

Matthew Diliberto

Matt. it's Camille, Yes,

muffled. little You're a

details details So more just our talking the the the I question first a guidance bit behind revision. -- of think was little about

nonrecurring stock-based the -- accelerated coming basis. savings a $XX on of take than of million I'm expected. sorry, charge that, part, the modestly of in a contributes and related though, been company comp have to been run $X.XX better severance total Offsetting that That, the to rate to have would $X.XX $XX We the $X.XX Andrew. to performance G&A rest and has million That's over $X.XX recognized years. that's

So not a the pennies. up for taking would rest we be by the we're the range charges, few of

the And an we in of FFO. do sale left wide range it 'XX, even to still fairly that on execution part a or we X amount a has have go, months on where depending interest left One Vanderbilt in leave 'XX and significant falls, impact be JV because with whether

range we at primarily had same was while So charges. leave the $X.XX it previously the to adjusting level for Andrew's

Jing Xian Tan

operating standpoint? strategy, your G&A about transition programs model thinking operating any saving from you're there to And are to cost considering an it. further implement or continued and Got asset-light

Marc Holliday

could you the repeat sorry, I'm question?

Matthew Diliberto

savings there Are or there be G&A on to any transition management? cost will asset

Marc Holliday

budgets the as a making operational almost are through for for like I net -- mean, year, best-of-class team, areas looking and savings would where appropriate, to to still close an team property say, or I we, generally, environment, sure me meeting are otherwise members as that service. the level, expenses keep let daily of meeting, inflationary Well, we're operational trying next expense our in increase like construction daily, but scrubbing X delivering of

never 'XX, do. lobbies XX that's detriment the say buildings to have benefited excellence and million programs, capital anything work buildings on of that. been much of we amenitize to this 'XX local but years we're do because little delivering and going looking we So the reputation can investing the are program that that light in replacements repositioned the of that by and hyper-focused something or capital 'XX, not And way. XX to at in the security completely so only maybe more we a through over any most And system, our go building not feet we're new jeopardize out group the now simply there's to to to

to and be of in hand market operating strong capital feel 'XX enter the control. with I we'll in cost control like expense terms really But a able

controlling had in peak it. leaders so. or if As at of G&A, terms in peer it, G&A I or wouldn't only reducing that specific question item. or our it of its if say not relates was to I'd $XXX million We the one will, say but you maintaining group, of G&A, are we

Andrew Mathias

$XXX million.

Marc Holliday

million. $XXX

it So million and next around year all at below cetera, austerity year, of that. planning, come in through would smart sorts $XX to this expect measures, in bring et will and I

know but it's say say We haven't December to we'll in I'd done $XX below -- million. safe

So sector. industry that's we're unequal our And I able building and in or ever and unusual a services yet, to trend high more is think is and I with do level less performance think of it's been. that the

if next don't focused but I the But and what to yes, capital going be we're working December, that's G&A answers conservation, into we're operating in question, between all maybe cost, reduction So on know that. I that things now further and on going And December. on elaborate year. efficiency expense can are in

Jing Xian Tan

That's debt XXnd helpful. your have caps swap the your swap East East thinking respective instance, debt Street XXX maturities, Matt to know for you maturities? you've sheet. for exposure are I final to balance expiries XX but to Street XXrd next the And how on are maturing in maturities final and question cap managed XXXX its about For year?

Matthew Diliberto

Happy I'll are as the answer swaps operator associated Camille, as give which We free only, And people debt Sure. reminding we when those is questions please. swap But far I'll X to do save one. the the you hedge it. a trouble out goes. to

financing. And often have of we relates to are to it the requirement X referenced, instances As a you underlying specific JV the caps caps, partners.

We on agreed the is X-year regard required with by put place need with cap to a partners sign-off the to a are in able put cap, time a partner. terms the a our those unilateral without financing. our to those to we So X, not agree make we caps decision and of as be back to

Operator

of from Heck question Our from Blaine comes line Wells next Fargo. the

Blaine Heck

lending touch the lending the to maybe looking interest stand changed where may now, office and about office have for talk coverage that ratios? on what how and buildings respect just lenders debt for high-quality actively are service loan-to-value and with they're rates of to you Can environment pool

Harrison Sitomer

Sure. Harry. is This

positioned be ahead we really market -- to a on and in prominence to lenders We're modifying maturities. these look, continuing the existing think we're makes this modifying, the portfolio. And confidence the of to capitulation markets of getting market, very the that So relationships their who our current we're we from of debt what environment, now terms debt. right working our are We're right sense through well extending existing given mean seeing given in well navigate the with steward we're we secured capital work depth of existing this us lenders. debt with to

In most cases, we're at years looking point. out this X

As in of earlier, in months already over executed ones X we to some expect deals would next to of the And course do Marc the I leading mentioned us end at, the and see the larger going we assessing money refinancing think year. few Each quarter. that conservatively these as new capital prudently in we're any putting that's very underwrite we're about looking to trying refinancings. this

Blaine Heck

All right. That's helpful.

metric? coverage the tighten relative you your quarter-over-quarter ratio and on last it and Matt, just magnitude expectation, question, you've whether you And second about to talked whether covenant bottom kind quarter testing before your your expanding. I charge that go stress call to we comment fixed trip of would on done any expectation the my where the for to line the the be in the to likely for movement to For as to should rates guess that Can third covenant? have relative was with see

Matthew Diliberto

Yes.

You're right.

expect down this a calculation. how I I'll would I consolidated to last people It's works. into trend only it On say calc the did remind QX. call,

other debt is on equity equation. preferred Layered by on the there's side the corporate handful of offset then through. of a of that income, flow and our G&A consolidated that So top properties debt and debt essentially only and any

basis. that XX-month a it's metric, So and done trailing on

will and has XXX a quarters, more and by continue So weighed metric several higher been load. corporate down debt be that to for

proceeds we end So our XX effect consolidated the part was comes the no tail at $XXX from X That sold that obviously year which over will the for we million flows does same of better period. over the we got it the got the a that but through quarter, the effect before the XX-month property had as on XXX partners of but towards as consolidated of calc, quarter. so The Park, of Madison, a quarters benefit interest, out months. next JV the forward

to but of referenced fourth trajectory the the that. quarter, quarter debt. fourth versus affect So as if we're things lower as quarter has reduced in an we and interest Obviously, corporate because a roll reduced through effect is naturally Vanderbilt, third through of it interest through that higher into did consolidated would debt generator and of off The we bounce this could an an result has for that over of that. time. first property income is have consolidated EBITDA we If on and to the that timing the trajectory of expense, is third trend then One the lower result expense effect, growth be a that also might was

Blaine Heck

the the Great. luck for and best of over thanks help with years everything. And Andrew,

Andrew Mathias

very Thanks much.

Operator

the line Our Peter next from of comes Abramowitz question from Jefferies.

Peter Abramowitz

sort Yes, expectations? the to rents do at the you wanted there what interest are trending And X have just leasing coverage kind your in that? space relative what's first to Madison, how ask, kind of the pipeline, of that remaining on of within

Steven Durels

type covering, X We're tenants fintech there. a space. active sort term would is feet mix different now of It's about square theme XXX,XXX in negotiation I the tech, of sheet right between dominant let's with see, tenants say,

then have with above or get our of that them, not more going are at All really to thereafter. on by but other at rents end very And I'm tenants. the far we'll or X those And X I than of prospects least to not the report if about positive underwrite. are year say shortly hopefully, that feel to of being the to discussed

Peter Abramowitz

one other. then And it. Got

as parts, any terms a Just portfolio or about forward of moving in about reminder, kind move-outs? expirations our in thinking think of 'XX, we model, look the just in large to no the

Steven Durels

or new be are not two or 'XX one little would but year. transparency next only is say they not of into news 'XX, downsized that things. current quite those the anywhere. Well, our we building certainly may it's then needle of of tenants all really all the into are the CBS and whether have, in expirations people size, absolute on I to XXX of projections bit tenants and the as to built downside, I renewed building budgets even frankly, staying a currently we're The moving that for that going, probably think, in

Operator

Kamdem the question Stanley. next Ronald of from Our from line Morgan comes

Ronald Kamdem

a Matt, job. Congrats, great on

Just maturing on and those my this X were so think on you is, quick the to I X most extend the really ones I X quarter. loans assets? Dey quickly, the know XXX previous planned there? Are that loan Broadway, update likely sales. -- What's

Harrison Sitomer

multiyear a we With favorable the close are respect on there to very to terms. finalizing very extension debt,

globe resi to a be throughout the we'll in soon venture hopefully, of something with then looking seeing the up we're interested active There's get So we that they're and that groups in shortly. And respect product. after joint discussions up, we'll wrap to the and very on we're wrapping debt. that, done interest with partnership, negotiations lot there be

Ronald Kamdem

about a quarter, talked Great. you Vanderbilt. And a -- then at think lot to One the potential JV just I last back coming

in, thinking past Vanderbilt? what month with big in sort if investors the rate Is over on it of X or your that's still of move. wondering a happened move a a had and come how you Maybe more conversations sort same color impacting just thinking pretty in bit the on Have size? the there there? the can investors out was dropped provide just Just we've new little obviously One rate your

Marc Holliday

one, in X.X obviously, It's anywhere terms product, size, almost It who if of stand you I think investors another X of for debt term. attributes an foreign will, one the average appetite years. out that or it's weighted it have makes a almost in X favorable unequal assets are has core for building. X low-rate in long for, I or and It's lease the think, locked got great incredibly -- it's country. very got as

core the on more unaffected. money stream put basis. this is differentiated of And any investments I in can moving not to it's one core working won't as rates the say, the mark-to-market with year debt are certainly embedded have whenever rise, it. 'XX, obviously, -- And we're And we we valuable the seen becomes a or deal on get early hard lease done, going diminution to best -- the that rates of that interest work I'm I as say the but one people remainder only, think up, as of

XX years rates think And guess I or conjecture. as or I rates could, don't extrapolations you be would XX out? cap can any you but make interest it

insulated in So had building there. we've that to hoping is be any. well And way, and we're as the great reception something to able conclude

Operator

from Goldman comes Sachs. Caitlin of question Burrows next Our from the line

Caitlin Burrows

parts fourth response portfolio, earlier the on going seem in significant a of It meet like expected. business just question. the Manhattan The are for to the need mentioned better the does various in Maybe target the same-store to occupancy occupancy you pickup front, than guidance quarter. the you

you So the increasing in the where just visibility are outlook of today term? the wondering, on we occupancy that materially have near and kind for based

Matthew Diliberto

Yes.

had of a heavy goal XX%. we north very of So

not feet his done already will of pipeline, goal. million Marc make good that comments a to alluded leasing. in we We have X.X square that we've

done. longer but have X.X therefore, pipeline, of And to but feet million we a anticipated. is than We picking deals trajectory square slower taking get occupancy up at had are the

do we we 'XX had into into year. beginning pipeline, as pick the we XX% will but of So it up be on the we the 'XX at expect laid close of that the and short out to

Marc Holliday

to too internally have on I goal -- to to vacant the that's the want a a goal be I get market And we sorry, set it's Yes. just know -- but that's ambitious it's what market goals, that. for ourselves XX% versus nuanced, That we projected in that vacant what in clear our and maybe stretch is what I I'm whatever was occupancy XX-point vacant. XX% X.X% call X.X%

where or know, in doing that's XX% those said but goals design. anywhere be projected tapping, and And ourselves. don't fact, if I in all that, trying were from, XX I XX realistic, by every we to we're generally about to meet from trying to meet a they we're anywhere of all to to XX% XX Obviously, year them goals, push we year.

here line flat we achievement we that market the vacancy on been think where amazing is year, finish see the occupancy We'll throughout that, So XX a at has point fact cross otherwise this be I on sit have in a in relatively our at around in is an the as XX% XXs. time the trending December to will up year. and

more And that we they're XX than telling to close because I we February going a are the January do deals at think is those X months where saying to December to exactly from what in we're the have have foot it's million because typically, take is And square pipeline. time pipeline pipeline. a X.X X big December, and

So it next really year. well sets up for

who the in the So I know out Green pipeline XX-point-something we and goal bottomed the quarter. second the XX%, that at -- is confidence our how it about all to come and reality be, XX%, they are about works trend, going at it's or headlines knows. the But and well, SL in it's in it's vacancy

saying had more actually, or we'll Third million going quarter is. into of much it think until stretch hopefully, turned tide, less way back, if signed those set Today, of don't 'XX at X.X relevant quarter? signed. square do see. and million than march sit XX% No December We the the we year. I fourth same numbers how have you we're in where our that's post we on above quarter, and of X.X investor, But almost kind lease feet to a to next

$X.X About million.

be well tens we're the but And So dancing of on 'XX leases over and there's chance good I'm a of our yet. not throwing signed, which in for points. we'll telling also basis up sets you heads

let's deals quick. there. close mid-XX,and pipelines just got keep try the to those We at Let's

Caitlin Burrows

current yes, as last Got on to as close can it. call goals. possible. dividend. you I dividend you stretched levels the that mentioned mentioned appreciate guys goals that I be you have separately Maybe the know then keep And want those the to

see the next year? maintain you savings help thoughts the could pursuing to you're thought to wanted if dividend updated just you G&A share? any Or So

Marc Holliday

my there I can, that we last the always is as that dividends, in along to lines or think for of dividend, where think, best we an of reason cutting fundamental going REIT -- as to dividend related hard it in the comments, and were I FAD companies our the in to and on case, some believe the the stocks, that call, important was eliminating light year. dividend be to people Yes. of maintain were the that still invest almost FFO I is where work and process we're

that is. income. taxable this next So you that's I sense Fed's, year's couldn't publish about don't call, on one just It's we FFO, thing. it, to about begin numbers -- it's where we the have it's a give so about of

Board, maybe we're we aligned or that when we obligations our everything capital we'll goal of for cutting dividend the all way expenses our to we shareholders, earlier But year, we'll possible. and off the meeting It in when announced, it's all until I And with based income. spend maintain next importance, before a December we paying we about meet only try best year. December cutting as just to our do, got can. recognize But set we need for a reason to level and be the is of and as we'll taxable will mentioned everything our a basic do next

Operator

Griffin Citi. comes question next the from line Michael from Our of

Michael Griffin

for give looking get IRR the I'm to around are curious sales. interested? investment back return getting in that potential hurdles potential color can Maybe to asset some or if partners you order

Marc Holliday

to broad the mean be the be Michael, equity going a positions. trying different. -- up liking be market first will that's positions. will that's therefore, more there there's it Well, be I credit there'll debt hurdles coming so and position, to and take mezzanine to play return in lot That there'll position ways will there, people because lien be many be

before that say will, were the increases, hurdles are to rate up fair XXX positions, sort over of to the it's you return across various range. think the probably whatever return in of generally if that board I for the hurdles sort XXX

might ever, what low it the discount was a mean have XX%. XXX to probably think it, of X.X% XXX number. origination what is just might mid-teens, that But is level teens, or range I mid-teens, an think. it in Andrew, that of class? perspective asset in a I what's are mezzanine et movement, been class, kind teens a perspective, -- you where maybe high is cetera. up from depends where don't in but return investing good the asset unlevered So you be be is from requirements And I ownership know, it might

Andrew Mathias

I agree.

Marc Holliday

are? seeing you're What

Andrew Mathias

Yes.

good a think I number. all that's

Michael Griffin

being know that new then, signing for increased. this your prepared specific maybe taking leases to occupancy? Marc, have a drag Should put normal elongated that Or And something leases as the leases of that year getting was these there terms going kind I about mentioned take of in sign the time you this on signed in it's Great. been we remarks at forward? with

Marc Holliday

don't forecast to have an question. And year will like. I of be what got that, a good for you economic next It's kind know. Yes. for

the having more line choice. decision, at less I think is the about and more uncertainty the time moment about

tenants that just mind So we because in people their so are the my have are there more sense past just more of they that than that no all would And the in are will out that exploring choices say people who are that they're choices. tenants real there's year are have next amount and taking at, inventory narrow in sign serious, think I more more looking whether before the they're it's or opportunities be or they're leases they the to vet minus finish in signing Will on one they those opportunities year. leases, this the and want. line time plus at cross they

because will I I think X-month is a line or actions terms like lot vacant we're been development overhang Then the X seeing I in time what think more space pre-pandemic better the think something And be then it in a have exercise of and don't fewer become the And and But already. again. comes that planned fully the of months leased. might so becomes as leased now, that. might X --

Operator

for to closing Holliday now to conference back Marc the would turn remarks. over I like

Marc Holliday

us day Okay. Only for December. coming in up is closing remark special for today

December X X I a.m. -- think X, it's December

Matthew Diliberto

presentation available website. our via with X:XX webcast a.m. be here Vanderbilt at the will entire in and only, One person but invitation

Marc Holliday

and work say to of it for are safe people. And busy for good information we to make visioning a at lot meaningful strategic session that preparing

coming to then. and everyone we speaking come, or And invites to that are to hope chance every in listening for I accept call has it forward you with or year. those and look forward and a So look

Operator

This concludes participating. call. today's Thank for conference you

You may now disconnect.

SL Green Realty (SLG) 19 Oct 232023 Q3 Earnings call transcript