SLG - Earnings call 4 2023 | SL Green Realty Corp.

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Operator

Thank you, everybody, for joining us, and welcome to SL Green Realty Corp.'s Fourth 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 the 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.

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

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

call of go turn the over turning like over to Marc and the Holliday, Realty Chairman Thank Marc. would Instructions]. Please Holliday. Green Before [Operator to SL Executive you. I Marc Officer ahead, call to Chief Corp.,

Marc Holliday

with release. only so and on Most press Normally, it. conference, year share want from you. to we what have glad Good don't today. weeks repeat afternoon proud year join XXXX, weeks going and just could X today. ended turned activity much talk extremely have and into challenging showing you Thank new corner happy, that I'm the was I have few the extremely everybody a I'm the that we navigating you into and with our We're a Okay. us and how about we already XXXX. of to investor but earnings like we

I that and like it different. I But these on think read today is do calls. to You've don't

a the deserves on what it reflect few during of moment quarter weeks. at the outset have and achieved these the first in to fourth think year we I

X and ourselves month There's of asset sure, are sale Prada accomplished legacy add this asset. $XXX.X confidently leasehold a of be increased out Avenue New $X,XXX XXX ownership our you're stack that for what also pulled to among There Fifth not Wharton best street, to to million million amazing closed. the deal if and for and but Green and across you're another I just quickly makers right city. on which very we exciting ] Sutton, retail know work a deal price. our for partner Herald, Fifth it's long-term the XXX prove distributions fully X mortgage, way Sutton the the Ave. as the bought maker this pocket. was news resolved all to of more in city, and And we well-located $XXX our an And was Jeff wait, little deals. friend equating to the asset, sold best very, York repayment deals I outlier think [ developed these city, with this XXX $XXX stabilizing X, in At was and very recently million, but done City of a listening in square per approximately capital off for full and retail generating plus for seismic the thinking, foot retail deal in in, Jeff,

year. at we in user XXth and days retail retail from buying City acquisitions to Akris is SL in past assets. great Street We of for retailer retailers desirable $XX second space the past point that the the Akris' exclamation retail making with permanent owned foot, This the $X,XXX New the condo York had square per the over East of on XX exceeding thereby through example purchase a trend million commitments of third entire an purchase XX Green putting Swiss over the

of the already trend as are we transaction another continue in expect works to of in We this aware town. that part

here Obviously, street in rise. is on you death City headlines apocalypse recent Avenue But York high talked XXX let people sector. declared a in New change from me retail anomaly mind underestimate and FT that I confidence read years abandoned urge often once Street about office retail, all few from past on when you quickly retail again is and few to sort York and similar Fifth New record-setting of in point retail that High how transactions these of wasn't to has ] When things Manhattan. Fifth the Cranes remind Times a can headlines. the of just years, headlines some about media relatively later. the you headlines the concluded My simply an this the hysterical keep [

enabled the with stated quarter XXX,XXX York Speaking fourth which the strong of of office, over for office us in occupancy that New the an year SL market in report second signed reported greatest the all City to ended last York we uptick last year. the quarter, square leasing we having in believe Green essentially consecutive after JLL feet New of bottom. number hit publicly recently that of And summer leases had triple-digit

a help ended, billion and of we our as of the year new which early the meeting Board favorable first the X report asset. X the on gives us debt, the terms JV with extend, to put that $X you in before years to on the X Dey, we get are with extended on for goal. at debt that done in successfully We asset even stretch should There's plans that for certainly plan which December good Happy front business well. ambitious to upwards modify news gave definition

set already last the year. debt billion of sitting of $X $X reduction debt sort here reduction Another reduction aspirational we of billion on we've year $XXX goal of this of million accomplished over mid-Jan. And in debt of heels

us standard premier set, for development XXX floor, on for luxury, and East out to which York contract for news, be bringing has just we contract Upper morning this of New really X great Side, bespoke new seventh. our not on units think, out with XX spoken to overshadowed this signed the a a the So a by Madison all ninth I

off we great recovery a to the city's some start, continued positive indicators our have where about plan confident report. certainly optimistic business in we're and So to

certainly The XX,XXX record city's New OMB another hot looks the press to forecast and York's forecasted with private off really XX,XXX year employment for for for base this jobs XXXX bring highs. over is forecasted and good XXXX, to continuing jobs sector

-- record make up losses reversal office slippage this set As and office-using year, with more importantly, jobs for more saw we using projected the forecasting that that city will where XX,XXX XXXX. than those is office a the in after is in employment, also using a year for would robust

kudos So involved policies. all the pro-business and them administrations Adams for helping back bring Hochul implement and to tourism, security and improve

result amass are recovery efforts city's billion fundraising to launching to participants minimum allocation all in capital of a we and this a our of that, a $X resiliency. ongoing As become active

get we phone, plane to and the the off after off we're formally efforts. airport, to heading Asia we're those kick fact, In to on a

with efforts. forming and lot this. We what the inbound doing, other shows We're market. is along importantly, announced on in capital of response excellent a new Most of deals, that prospects this excited inquiries we're these got about

statements we last in year. that bottom, indicator to July you the the being of second The our passed of indicator course, first

it to you. open happy With for up questions. Thank that,

Operator

[Operator Instructions].

to Evercore the come of is ISI. question Our first from Steve going line Sakwa with

Steve Sakwa

just Marc, I on a color X provide bit if was wondering Herald could little more you transaction. the

to basically close off X. It's think what deal letting that mortgage great just effectively for you I and pay the for you. bank did a

of the of I deal? and whys here understand economics how unfolds and everyone you're think is about trying kind thinking deal kind hows and the ultimately to that just how of that the

Marc Holliday

getting take on as for kudos great a job done that that Well, I deal.

everybody a a sure is these together this location. that to trying in asset. think the is love to come safe I I have landing. that assets great market make This

-- I think know it's entire throughout well, the Ulta's its in it's country. per #X in location sales store portfolio foot XXX I

Unknown Executive

X,XXX.

Marc Holliday

XXXX.

right to throughout It's to one, the for here. in because use. of have mean, Mercy options It's an ability flex The and that the It's X,XXX which I something, part a about seeing an great residential, to asset also we conversion lot that's actually at it start for beauty going really retail a to can and town across residential says Macy's. to alternatives Number It of best that dormitory, think use. of has the both a there's seen lot office. that unbelievable and upgrade. College country. other location, that there it's is look says as what's potentially Sorry, some we're investment different capital is but we've

come the We've And that will but something plan capital got executing that's what we hopefully, of including And partners part We all of options. others about X. just here the us and time is sleeves us, writing of up lot business give talk will roll our optionality. this to like A good our out stack X, deals future. in to the over with part be and like.

Steve Sakwa

the think for talked the XXXX. you X% Investor to second at my And being question, mark-to-market Day, I X% Okay. about in range

I schedule you at look both your I expiration towards like roll owned 'XX It Day? today. and any have maybe in lease wholly signed. the way and your provided and But of these realize kind of back when the of unconsolidated the what two there the what Or you supplemental, of tie and looks And expectations However, are at rents they're just to disclosure asking the show provide on together? Investor where we downs. the Page from that leases what rents, is just on those different schedule asking kind missing are XX gets you

Steven Durels

Durels. Steve, it's Steve

mark-to-market kind are as convert the look prospective down mark-to-market million varying particular to now or it's we half within that the board. them pending the they're about our all deals our X.X the right of deals, we positive, current say on foot of pipeline. are pipeline But of with deal degrees. are any associated square is think transactions at the the So half likely and I'd over to

up. deals positive significant overall mark-to-markets there that -- We will large are with are that very the drive are enough average

Operator

come Our next question with from Alexander of Sandler. line Goldfarb the is going Piper to

Alexander Goldfarb

X stake, Marc, thinking want are international on institutional about you to Vanderbilt debt directly. about options? a One domestic get Congrats potentially Asia, investors to but before investing capital is two I I you're And better you're with in your just plane that Herald. real fund or estate debt a just fund. understand in with private investors, investing understand how on versus those how the to out trying also out thinking mean

Marc Holliday

a investors. good I for it's mean different question. It's different flavors Yes.

different the having we're what debt meetings I didn't that just investors both. for going imply have We're element fund about. pockets FYI. not of to one mean Some It's -- exclusive. is

about. talk we've a X-day to got I and think lined over a over up there's meetings XX-some-odd period lot

debt certainly the is fund exciting. On

JV in As are talking addition our some and we'll we're hospitality involved of to in entertainment the about be opportunities some that of that and world. the with things equity other

got a this that's best the of long-term -- are are agenda. And and retail about So and investors opportunities domestically New sort way just front, opportunities, are credit-oriented, key on Others but legs that The to about on putting over trips, occupancy talk just going lots all to on ADRs the equity-oriented in investors they couple Certain meetings, play of or these we'll is the be and talk just both office fund, is it. internationally, make job York growth. full me, there. up leg want hotels the doing this of not tourism, on ones we've City and to high -- end, of the be both. that many not one trust to significantly, credit these the of going out the we'll what's front, months, sure next the

in that's there have. were I think created most pandemic, businesses New cities since XX,XXX than more new even York

needs on on So sort you to what's a only the if that the comments earlier, get made taking because on like an amazing I it's think different the ground. place headlines, of I you told rely story of be impression

Alexander Goldfarb

you XX the are a institution? how stand-alone your CMBS Matt, understand your directly a in of for is held many trying deals, X about negotiate, assets. can, potentially Herald servicers, Can directly held us ability can it's for CMBS? you as being to And of question by a sense give versus strategic you negotiate just well with second financial those Just special other as if Okay. loans to the thinking as template

Matthew Diliberto

Harrison. to Matt. it's Yes, one kick to going I'm over this

Harrison Sitomer

negotiations the about had To CMBS sheet. answer good the first question of or it's off sit head, my and we've as in -- and X top X special well lenders as CMBS think to the balance loans balance with both that servicers great opposed sheet the I as

working more we're CMBS now the either There are on plan, negotiations. complexities lenders, some those underway $X So when I with a well wouldn't say that us. billion but to as of few we're obviously working loans restrictive that is part option in through and

Operator

question is from the of next our going And come BTIG. line Tom to with Catherwood

William Catherwood

answer to maybe your back to a going question. Steve, previous

leases You 'XX, large in mid-sized mark-to-market A small mentioned sizes kind the that the in skew. was far several average as seeing more your for that to year. activity up -- it least starting tenant and are earlier of at bulk should of in bump the is leases, you as Has pipeline? what 'XX,

Or in smaller starting see by requirements? back You're to is still coming those the tenants market? it dominated larger mainly kind of

Steven Durels

since almost or the if is say pending financial feet businesses. XXX,XXX now of period the investor as we That's -- Well, the X,XXX,XXX right conference sole would and necessarily they're Right couple I'll in I probably of square I the up an services driver face that's at points. are feet. more time leases well. of that commentary feet square as XXX,XXX market. signing don't in deals square think pipeline our XX% we've were make over a where got over of now,

of As to firms, portfolio. of within firms tour have even of we're a right It happens a it's pretty range where be we reflection education, broad lot fact, just a matter from tech sizes. a seeing of And some activity availability now. government, our law

the them bigger Third requirement. activity negotiation. buildings Building, of having those like deals to some price on component space driven that a midsized number got kind of is are of tenants financial requirements. more of Avenue And buildings service Graybar that the are by tenants, a of A we've notably their large of single of growth small lot some But then of in every the one in some moderate

William Catherwood

or for second then question, And Steve. maybe a that, Appreciate Marc Matt.

Dey $X we're early First priorities next trending on and the when -- laid Marc And investor off, how the what of on mentioned refinancing getting so had refinancings? but congrats are you had the comes know should far? kind refinancings conversations your it the at that the at I done to are X out billion in of list conference. year, those

Marc Holliday

Well, in we think, done set out I which asset for asset never just by before. December, conciseness, we've

modification 'XX. we We maturities maturity and on -- all some so 'XX. getting in new of noted want to would case mostly to in the And try able each and 'XX, successful getting 'XX take extension we be end we care done with really and of has 'XX. almost debt of 'XX of certainly dates 'XX, where of plan, 'XX and goal be thought in Our kind beyond, that of

next And priority, all like group assets that so in priority. of the of is terms

market look, probably X or stages. X total in working easy there's that think is various on we're this it's I And -- in in for nothing like sure.

partners is be lenders differentiation you not There's happens of lenders the and a I mean a may where dislocation weeding it happens get like out time in going -- and this continue this are quarter, with market we to between process. partners between then want sponsors year But want this. and bit it going show in to. there's future, in what and you And we that a what again. the market sponsors market sometime showed recovers and to last work to to every

trying we've best sometimes it with are the people trying counterparties the always just feel they us come happy solutions knowing for these I'm future. more do got a sort from to around that with I counterparties, to and be or this able the they're to deal but a way what that painful in fortunate productively platform solutions, of our work solutions year. have to available all, as sometimes great that are company, and resources that these and off to up the And So for reputation pay after always think, we year in in market, efforts, with after solutions, comes we're year the

get of that have we of So about manage, can and all are us only restructured, we year it's January. on we the sort feel pretty good terms can debt that next job extended and ahead to I that this where landed firmly of we but

Operator

going is Capital with Markets. BMO line question John to from next Kim Our come the of

John Kim

Or going your the the alternative inclined X more be Herald venture plan like keep intensive. or this given high to on joint pretty of point, still sell to in the stay capital At Kudos to you reposition going ground is Square. And are forward, it cost And it's strategy balance But asset? it, it sounds you're going this fairly carry to lease. on if you sheet? portfolio? do will it

Harry Olsen

Right through the a is of this, We've working through over lot few Harry. We've the we're we well. time of avenues for But quarters. got of very lot have time. the which We're first through with the through asset. a coming you lease got present is now, to lender. the it we'll We years and various it we're and working now This here. avenues. working of We path owned know it a

Marc Holliday

Yes.

is think year. December. we'll course one I the a guys highlighted this the for It's plan of developing business that in over not we you be

were priorities elsewhere. Our

work situation. will and game something on old going not process to going through basis, XX have might to the plan asset the it going testing Now and this is about feasible worked the now in be we're a but day capital certainly that's to to months, going stack, in thinking there's two. of we're we're try a in now And it's it's market. long-term study and this -- reordering that or start formula to going that something reset have we by -- I a the a X to for value, can't now we're we're do this mean to

John Kim

And will in as this stay value should going option view And we your this forward? just ASP?

Matthew Diliberto

Yes.

that in now, John, stay ASP. For will

John Kim

My holdover. XXX,XXX like leases higher than it square was second on Okay. looks feet It month-to-month previous question your is which quarters. is or combined,

So just out remaining in comment likelihood moving I was tenants the portfolio? just you of wondering on the or these if versus renewing month-to-month could

Steven Durels

lot by XXX of at Madison I think some Avenue. the driven a of that is tenancy

Matthew Diliberto

technically That's they right, are terminated, holdovers. have there the been leases

Steven Durels

building, in for is know, contract that So as sale. you

really of broader that's anything So it's in else market. the an not going indicator on

Operator

is question next Anthony the Paolone come Our JPMorgan. from going of to line with

Anthony Paolone

in big though, retail earlier the you picked in any your terms Can about about in in Marc, you up of changed that and you that's talk trades shift sentiment that whether office occurred talked just investing comments. much?

Marc Holliday

I Well, pools of to was I the think goes that that back to. capital referring

So yes, -- many equity, I'd first of of [ couple very is significant to amount going fundamentals there's a people is ] And the X because towards a say first own dollars this years and are are since don't back strong of changed it's for billions -- the not I rodeo. It's and how playbook sector, this but sign our like, credit it's of in times exclusively, pandemic. and lot know efforts. And you capital announced been already including office that's And be the certainly guys business city seen before. billions have a forming targeted work. anybody's targeting a not to

investors step liquidity the there's I like see chance. locations, forming of these mean et are assets to the in and institutions to. other period great the of for to And buildings there's office, And be a right lot of out have you're there my lot it's rode going follow been for to But those in that pools first time sort cetera. -- of think behind, through call And kinds of I off capital then special sort break. will need opinion. attended what assets the I'll of time except a who this

Anthony Paolone

Okay. this but second Green's it, one, be co-investment? you maybe how debt And on guess, may then to the out given I fund, is have and going just missed I much SL

Marc Holliday

terms announcement. that's I but of in know, we Well, think TBD

I I I for are know, we're mean, skin question. the you -- guess, others. investors like much have game. of managers a -- say tend we as it's in to not would to monies standby, we I as So as we we mean real

have about and to overall levels very it So But we'll And we're good within will program. confidence liquidity game. in real the our year. in belief we the skin show our feel which this program this has going out fit for

Operator

question with Vikram Our Malhotra to Mizuho. next the going of is from come line

Vikram Malhotra

you and Durels mentioned at you market talked just, cash square if all perhaps I you be even to It square -- about just like picture then pipeline, before flow ultimate plus I'm -- the look improvement, trying to lag factor could the occupancy on that the underlying big rates. you thoughts and with better generation. a all and generation. job move-outs, with that cetera, wanted leasing the maybe Steve or a all looking Matt, I'm -- occupancy return and how inflection just a renewal to outlook just lease-up, your FAD work there Matt, that expirations trying latest between that in et see tying the that. lot in just seems to meaningful FAD back, known to actually you

Matthew Diliberto

Yes. The guidance probably January, say obviously, having X a about on pipeline here bigger. actually in The we little ago, sitting is -- weeks plan. will we're given

XXX,XXX feet still than back the in grow. after it December. As was XXX,XXX investor feet signing at conference, even January, said, pipeline in will Steve back The

the start the So us a goal on goal with what's it feet of X of our end and occupancy the squarely goals. the by of pipeline, in XX% is was 'XX, square increase, from us great end this a towards million on going those with for which puts of puts year the XX.X% targets based leasing, of at

the when roll particularly to leasing, you've on is over doing And the back through. the how course, a of time couple happen down, takes years, seen and to lags As going down new occupancy last the it yes, up. that translates FAD, when to roll there's of thing you're roll lag, that same through will

No, with XX% the biggest are through and trajectory 'XX in we to the do coming will we FAD? So years. the of consistent we the it benefit right XX.X% the in out December. on going in laid plan But roll from see

Vikram Malhotra

Got it.

you value a if need argue perhaps -- us give is go a of to or can back some equity Okay. time you believe how long X even enough debt maybe been is And buildings, creation. lift. where like values thought XXXX you sorry tremendously. that, about on related value look time can One, Herald, questions today, take think, know, like just mind. strategies based just then on where And line. And I Because mentioned are, office like to there's should had of at us think about just lot very it give variety to a clarifications. would ground perhaps then diminished what precedent leased, you've am lot a just heavy and this building, color to the but any X it's to seems are I XX% you that I frame we in I -- XX% you reset. there about But of have given lease or a think sort you of has you

the So around about, you're more I'm creation. get lease us value and thought thinking trying B, just how A, to then ground

Marc Holliday

with I which creation XX of the is X come investment to an I all is moment exclusively earlier, address is our Well, plan. last much think feet XXX mean, of that's at is is can't we've square I far -- is almost tried for I with Midtown, as really this can go asset this as the as and step with, assets of we've value that this X And up probably I which years. like Herald. been million like involved done redeveloped maximized question

this my referring present unique So and the we'll I doesn't location might I We and the a opportunity. challenges be plan. look flexibility, to. at with you in love up the like this opinion, as come

quick I a it's comment in that that. a of on company XXX this for that going into I to I heard Madison, resolution and a time. about The period Yes, long turned take mean, very of lot excellent very a don't know time. very about

So and other particular It's a unique period had to We're I that I it's just with the subscribe time. no involved it's square manage to million take asset. vacant I manage it's good because we're this we very short I to period mean feet about a go going the think wouldn't or out. a the long have a concern we no asset, it to anything tenant miss. notion of way going XX

think prior tenant out, well leased. very was going it the to like I

sometimes buildings and we're So to when leased that ways, number that. from out, resolve and in different of well having can to we to go but it this. then rolls a do some mentioned vacancy I you tenant a vacancy, look optimize going That's

I On the the but it's I know reset. is ground much there's there reset. don't that because about lease, don't talk anyone know a there's to if a there on early, have details recent?

Unknown Executive

They you to and won't going want I'm us opportunity 'XX is to aligned maximize us give negotiations create to sure well surprised maximize to value. to hear, owner here. we're say the be see correct. a them fee active with we're would just I the have in value.

get working through the we're year. be So will as part updates the of we and through that, it

Vikram Malhotra

my And more helpful. I guess, was comment, wondering if there because.... was specific that was something just No, I

Marc Holliday

and No, not would come business be next I say have more on or won't say, yet. at I stay months don't give plan, the in on we stay a tuned. it we tuned would moment. call, June say on have the us X call. may actually, but I would and next it to

Just...

Vikram Malhotra

loan. for described was sounded the like like $XXX the there million like you a was in I way general like optionality. there was just lender it it, And surprised lot of

my this was and that's to why with I more specific surprised okay asset, the So X that was I thought something yes. was comment, lender just which there was

Marc Holliday

we'll I understand. you, this year. readdress it definitely and Thank later

Operator

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

Jing Xian Tan

these beyond retail demand seeing user the remarks. on you've third-party seen the opening mentioned in Fifth in outcome we've in buyers high -- street at Avenue you that are levels Impressive XXX sale, for deals your the the details

Marc Holliday

don't demand Why rental up We've -- Yes. sort question would you is excellent look? question. user you know, our putting Brett of the Herschenfeld, the got heads an how is strategic. market No, and of aside, high-end all the that's so retail

Brett Herschenfeld

rental the Jimmy and the to likes to driven pick Avenue Avenue on high-end XXX Avenue Fifth right on up, filled past leases is signed The Valentino Choo being be will by market Avenue. was Madison nice and Fifth see Dior of start. and really big to We McQueen, Madison and in Van year. starting had behind that Cleef, all and

the are mean, and they of terms XXX their of of a an big that investor, a part Madison, not investors, acquisition In obviously, I transaction retail and recognition related value of in user. is

So there come. the be that behind months to we'll more sharing are but that, in

Jing Xian Tan

can Matt, your at rate how December And operating by today? you you to year-end And anything set Has levels the or you're changed to Guidance would in front? reduce exposure exposure to this digits was look on down 'XX. that floating your talk current be higher? thinking out Okay. single about comfortable

Matthew Diliberto

year. No, even expected the of I we debt we're on. end think today fixed to we is have the the be fixed path that the on Most beyond of rate

do So there's can that. much not with we

course a to the we take out as over is of rate debt the As debt, to lot what that year. the other of floating we reduce expect

to forward looks ourselves, rate taking revolver be has exposure more We protect out gotten floating bit reduces addresses and want the and we still little the want In down coming the taking XXX to be prudent though curve to constructive environment rest. by the fact, our a protective. down. And itself, even rate

a forward something year. mark-to-market, than ] We hedge. rate the That's had balance but headed, last on the year, keep want [ our that the we put through what's exercise at this are but debt of earnings. they Rates sheet. the prudent starting hedge expect is we rate and We, point, it's higher fairly floating why protecting were again, optimistic environment are execute be where negative protective about for to a is we which end today, a It's still at late floating low. to

Operator

the Wells come our going from And question of with is line next Fargo. to Heck Blaine

Blaine Heck

kind submarkets specific that a the buildings up? that we're given point in space really seeing effect Tier tenant maybe leased interest since has your is tight are now the you seeing or in portfolio getting this more gotten that So hearing any corridor spillover are strong Avenue of that X at within submarket, interest Park

Steven Durels

an Yes, I right, But Avenue. Park Park to don't Avenue's that's like something X.X%. got think you're it's availability unique like

a least of more So at to on equilibrium, having and to tilting more come leverage by expected market if back the not standards, landlord on transactions say supply because it's in big of blocks would anytime you the lack historical it limited at the of the a the which the filling with short you've near of or But take you've any future. seen level, online new in construction is buildings newer new buildings up. renovated coming different absence term, heavily in lot the to seen

the So Central the of Avenue, beneficiary that is Terminal Xth demand. all Center. Park Avenue, around been And Grand more anything Rock has seeing tenant

certainly or Midtown. spill to side west being focus various tenant tenants more And to think we're that of it's to shop our market as is drive majority are tenants their for I on over But forced the the parts downtown So portfolio. seeing parts the far in Midtown attention of all the clearly, opposed market. of the market

Blaine Heck

quick with Square. Great. Herald just X to a second And one, respect one then the

As ground it stands asset does cover that the now, at payments? the NOI lease

Matthew Diliberto

you the I'm can Does and NOI repeat what. sorry, that?

Blaine Heck

does that X there? at that the At payment the Herald, you lease ground have guys cover --

Matthew Diliberto

the No, of reason no, portfolio. in doesn't Blaine. occupancy, its ASP it Part the current it's in

Operator

question Jefferies. with of Abramowitz next Peter from line comes the our And

Peter Abramowitz

the raise node was So on was I guidance $X.XX FFO $X guidance and ]. in think the there the range range [ EPS the

the gains two? related was to the items the there raise but So in those that between mostly the there's other just pieces I in caused extinguishment, moving think any offsetting magnitude of difference any you if said debt or wondering it on

Matthew Diliberto

the for discounted Herald of generic purely the offset as adjustment is out FFO extinguishment by taking $XX the gain in X guidance we debt there. the gain Yes, million had

So so and $X essentially of that I all FFO did it's books the gain. think, basis gain between a the math on out That and is works $X. net we'll exactly $X.XX, recognize The difference XXX. on to of have not the asset income

Peter Abramowitz

question Okay. X it. Got Herald. then And other one on

lenders' they the from walk just I where could partners' talk perspective, it asset. wanted think like for a away your It from the of situation seems was I I everything you from perspective, to So guys cover motivation kind a them. mean about guess you

said consideration So you're almost press -- taking full no in it for think over release. I control the

reasoning you their that motivation So from and just was what was the kind perspective. and the of covered

Marc Holliday

the call I their this partner to question. Yes. for motivations want on appreciate don't what speak I were. our and

get much of throughout rest on year. not into go can you update on I to the unfortunately, So there, we'll but continue Herald we X the as

Peter Abramowitz

Anything obviously -- guess, that specific guess. I the I resolution for situation to that influenced you. it's Right. very a another way, that, favorable put anything

Marc Holliday

deal. again, were. about interest still have want as they just Yes. they're And minority know, get their thinking into that, you beyond mean interest, what an and it asset. the I I It's still the a in motivations they're to how but in don't

Operator

to come Kamdem the Our line Ronald from next of going with Stanley. is Morgan question

Ronald Kamdem

Great.

Just X ones. quick

call. that just first to is talking on So after the trips this you're Asia about

going? first to Park that maybe JV? conversations if an Just how or for wondering, of still One timing sort XXX the And is that provide you And was Vanderbilt half... of can update are related the deal on any sort

Marc Holliday

country end parts all plan say, business not Everything, for We like we but lenders mentioned questions couple target over know the different of really weeks, that's I on everything a We're I these I'd make Asia, trips, [ business our ] partners, of there's our talking is of to getting and it. we're about table, lot ] on the trips, of about Asia the world. a else having about don't I on do we give that's know, to to you there'll by Harry, start year. OVA, the to And things and to want X want mean, 'XX December, how got On XXX, -- and and be Dey like we're I it get update? particular, if those. everything you get every an we early done so discussions I done. in yes, in mean OVA, of got it's -- it of you visiting what these not one and -- part talked and this of the do just every whole each I'm plan [

Harry Olsen

the delivered that's obvious and speaking interest. we still Marc global asset. domestic negotiations negotiating that we Yes, message plan exactly it's negotiations for this, which involved consistent we're on we're as we're and to in demand what in they're And this said, every is with. there's on December, said, one-of-a-kind the in, investor, for And confirming active we're year. with a These

Ronald Kamdem

question taking second back. is step my and And taking a just a Great. stab at X Herald

strategy assets. of looks gets it's done? an decision this congrats alternative uneconomic the the bank. what on from Herald, sort the portfolio X So And sort of like XX has And deal,

is ones of could like in Herald and are Or the assets which assets these X out all question outcome? sort So that same other the you where look an such of other and just unique? is ASP, there the have feel

Matthew Diliberto

Yes, it's Matt.

in segregating assets first the said and not was carried of XX any, a look, we I now book generate have will this there, because don't very it's street, XXX But earnings, sold. these correct, little, that's in this there's NAV on So X too, portfolio, It's assets value. if anymore. creating lot for or don't any

Herald. the opportunities XX them. of core there's in interesting first that lot of X but out a days kind happened may they of the XXX were the and of portfolio, So the unique the rest year, come X of of out XX from

of of The -- come more couple opportunities on other are working there? things, lot. we're but a Yes, on there a out working

to like any or -- XXX. there's it. can't But are exactly these going Herald and the that is embedded off because we own like assets of these might its to which we've value when we're in way characterize we what is portfolio. doing not reason are going a X whether I been we be carrying with we're mine appreciated, exactly them and assets the to look again, a are them So put

Operator

Citi. line is Griffin going question Michael next of our with the And to come from

Michael Griffin

if leasing then give very or Can is or particularly concession Maybe you the question leases stabilized to renewal us front, submarket a even that like sense new it's maybe on are in Avenue? a there. the somewhat, on just say mostly high-performing fair it that it's a And pipeline. declined Park

Steven Durels

second I'll the part don't the have first. take concessions come think down. I

they've been think of all last stable for I year.

but strength, more the to think Park on versus expensive packages stabilization -- I the from than on it's But last renewal point we hit concession year. I don't -- your I new Avenue, side a deals, there's the still think perspective go. particularly a as little there was early far as landlord's on point,

a as in through that are the of renewals renewal, And really driven the each it's our news went that's of think, every you out some of new renewals as within so bigger So sort sector, them. significant it's -- expansion components door. pretty our of story. And noteworthy. far very also financial that XX-XX coming tenants versus between of I the lot also that's, see then law good that deals deals firm in but but and new have services -- particularly one Because to if are growth, the there tenants through our much of

to lot We're significant capital tenant their rebrand spaces. confidence, they the a commit by lot growth, look a as more more and rebuild a more seeing to lot willingness

feel good pretty all where So that us makes about right we stand now.

Michael Griffin

for DPE the and dislocation Great. or originations you're we've more seen the the distress appetite opportunities that That's if I'm market? seeing just any book, then curious in on future And helpful. given out

Marc Holliday

the money the see of and prior We than our made that set in fully I've in raising. capital. because ones to recoveries, past said, done in really to alongside only marketing opportunity process lot third that's But see mean recovery. want opportunities. like is underpinnings I we many, are interest in is Well, coming the X opportunities. first different year fund the us a or to and of we've But parties think have that of we advantage so to with we deploy that many always the we're us of big select markets, out obviously, where we lot of want some the opportunity of a no take

and that's where liquidity a going like preemptively values illuminate falling backfill think think where get more participation to And that's now. levels up yes, possibly especially certainly again. to once first ducks can the lined But of environment will may ease got advantage how I and things. then make are I our act institutional I pipeline where and these want we we've are, feel the things in right we We we lot take things see I with fund. We'll normalized this got step go. And very we're which the towards rates now. sure seeing

Operator

And the line with from to Goldman Caitlin our Burrows of is next come going question Sachs.

Caitlin Burrows

square XXX question included, and a starting leasing Park at was the just high per Maybe and signed leases you as Park. square leasing foot mentioned, foot at pretty the rent quarter per in broadly, on XXX on $XXX the some

the activity buildings? So wondering, how of could I about portfolio, across the up shaping was you is leasing tenant affordable some and talk more more including activity

Steven Durels

buildings. they our the were high on yes, But big as more I'm square higher we have and of by Avenue of feet rents one one moderate-sized some list just now, moderate because that we looking with XXX,XXX real single quick, deals did of the price of of of pipeline some out in see looking now, at right exception every the were right the driven deal the Park buildings. Well, is point price leases at point those we it

like XXX Avenue XXX Sixth, Avenue, things that. Graybar, XXXX, Third So Lexington

to to price year. the as of opposed $XX you us on saw Avenue buildings are generally point those some triple-digit in our of are at print $XX end that rents that the Park rents So the last

Caitlin Burrows

that were to generally like are sense else a deals those have Okay. that ones renewing if they from do are they kind that Got they're at, moving list tenants follow-up have a been it. And you're space And as for you alternatively might from? in already somewhere just coming maybe looking if of of in. where

Steven Durels

renewals, the or in a those good and now to different tenants the are it's relocating -- coming renewing portfolio. our renewals of of it's is or And of within roughly feet whether articulated as XX-XX, they is places a tenants. a on XX-XX I new deals that But tenants what's that X.X our XX% number that really that portfolio. working significant renewal the we're to between into different as deals not right Well, are have mentioned Yes. new square million opposed building the earlier of in as saying space components, on be far expansion well pipeline,

Caitlin Burrows

the expansion you're or future? are to saying component expanding by they an they have expand Sorry, in option

Steven Durels

are searching for they're making they spaces. meaning No, larger --

Operator

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

Nicholas Yulico

the X just of citing? buy number back or already that's and last and that clear there mortgage you're here. the what's like some it to to any point, go affecting own payment be I piece you at year, the Herald wanted Did in net

Marc Holliday

question. I don't understand the

Matthew Diliberto

Did own we question, is Nick? Or it debt? third-party -- Is do your we that it? of any

Nicholas Yulico

Yes, exactly.

Matthew Diliberto

party. third didn't All any. We own

Nicholas Yulico

on second joint there the piece any pref the venture... part, or just that equity piece Okay. a higher the mezz a And there then get in was like -- also there also of was to affected ability

Marc Holliday

the Street Is Wall Journal asking?

Nicholas Yulico

the just it's clear not up, trying -- release I'm very in to in clear press your here.

Marc Holliday

the What's answer, Matt?

Matthew Diliberto

No. The of None answer is that. no.

Operator

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

Marc Holliday

in you. good things for Thank was getting on there appreciate those well work X glad through support, And you This to We that to conference we'll very call. some aren't as the months. that muscle thank much portfolio the to X you for end. other listening the got ASP talk and a we in, and Okay. fund, I'm in the in Herald

Operator

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

You now may disconnect.

SL Green Realty (SLG) 25 Jan 242023 Q4 Earnings call transcript