SLG - Earnings call transcript Q1 2024

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Operator

Thank you, everybody, for joining us, and welcome to the SL Green Realty Corp.'s First Quarter 2024 Earnings Results Conference Call. This 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.

Additional information regarding risks, uncertainties and other factors that could cause such differences to appear are set forth in the risk factors and MD&A sections of the company's latest Form 10-K and other subsequent reports filed by the company with the Securities and Exchange Commission. comparable quarter call, by may Securities reconciliation Regulation financial most conference measures non-GAAP Act. The of today's financial the in press both at www.slgreen.com website supplemental GAAP measure defined measure release the non-GAAP in each report comparable regarding company's as G our financial directly measure the and during first differences the and can relating non-GAAP discuss company on financial the be GAAP XXXX XXXX company's measure included information between Form fourth selecting Also discussed earnings. each financial the our and to to found the under the earnings quarter on current by our X-K

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

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

Marc Holliday

our appreciate this quarter After navigated today. to announcements. few more when developing with Okay. our the and discuss and others us for challenging joining our than felt within working dislocation you years did change capitalizing and by keeping when deals focus Good us It's of portfolio, our leasing you ever, a we've it trajectory we projects to portfolio, a business an than for didn't. about a harder thank years all forward. recent been afternoon, on unprecedented even nobody moving recapitalizing Certainly, emerged since the and opportunity you stronger where review with came diversified exciting more extraordinary market results I've sharper We strategy optimistic the and with business. and first

plans new of us home. generation of advancement their within building community we signs of allowed improvement, that to recognize innings tech believe of sector, a maturities, We're be early and in career strength happen extraordinary of City's the workers resurge and capitalize what of and New period market to the relationships reputation forward. the at sector move extend by will a reemergence a Our the debt and who fueled York lending relationship in financial doesn't create

we the other positive are which to space where at leases. in are strong tailwinds. certainly core leased a of rather experience our the fundamentals, were of our which buildings. This extremely signed average growth rate per rents. And tenant X/X economic be in and one contrary and we we signed by a stable The XXX,XXX portfolio to our for an hype, the new office hospitality And square the of foot, first SL majority premium in in Green's the of these commutable vast aligns easily highly well which the construction and not projects, well-located, but elevated leases media amenitized results existing were group support square which leasing $XX case. were X/X the starting new of We over of quarter renewals feet a specializes. New shifting with we City's is this higher portfolio and of encouraged and there's at significant Even enter of York strengths as XXX momentum among opportunity, market the to base. interest Now economy believe period this what solid leases year record market in is cities and a rate compared environment, to expect foundation were become of diversity market reflected triple-digit last of

The and New high-yielding origination York we market the initial investments feedback for moment to in allow is Fundamentally, are positioned the the billion debt this and are no existing in investments. this This is of some launched best debt that of capital acquisition years approach debt via XX opportunistic this new X of On as last looking City in the in New our one entirely advantage instruments. February, current investing through only will that scale on summer. our are properties we us to fund front, the closings to market strategic of fund discounted York a $X better investment replicate time capitalize dislocation we centric. for take of City is debt targeted the the

Manhattan new that voted to event. And reached and downtown affordable of housing Just called weekend. New produce effect we Side well. districts. comprehensive central conversion this the SL and need of incentivizing Manhattan targeted this bill to conversion signed in on assembly passed Midtown to this traffic the we Green market office By should that build, I encapsulated the more office Avenue of Lower more legislature office commercial retailers governor East printed buildings way. even midtown the restaurants the on pressing the the foot most state's landmark past Senate certainly office on to played week, an office-to-residential have tomorrow fiscal than in this the instrumental transformative create in and will of on as the which which will and support uniquely is budget, legislation legislation housing, crisis a be program on role this same the applaud York particularly get impactful challenges. in housing local conversion New would of the vacancy, we office early Hochul, part that very passing residential conversion building rate being believe Park will vital business XXth The effect record-high doorstep underutilized south way have and generate Street a address see office X I comprehensive agreement bill, stability overcome to Corridor. market, obsolete and office space as York's Amidst has existing this Access transformative city's helping and and have upon as and the the Governor, much the market the in to and this

remove zoning If our in is be to as office will the space into as of a whatever existing X next and the X under their space, private far would convert again in out elected his place accelerated will the otherwise demand. believe significant available these through New Adams housing Mayor, many conversions over in million sector as million years, Albany yes, officials owners we now that Thanks relocate program rentable result reduction future. the have from would positioned from be think feet of new leadership of city somewhere buildings. Ultimately, simply invest be to to we via space this XX of for we impact will absorption between and bears to natural While tenants City's buildings out the as inventory immediately initiatives, this under space the the York taking of well to program. XX governor square occurred felt other

office a the XXX the conversion this incentive part from we year. important Third to Avenue are city, spur conversion planning of of residential Third of new this use. As blocks build, more with first and The be there'll of be the XXX throughout new among development conversion the for the to out on to on will come

grower gain not opportunity proposal we continue beyond a Operator, on is will ours to benefits is We because time bids you, the and due that please. and and far Palace, is for partners, Times use thing past Square. with this had bid only long so we'd York Caesars stands walls. Thank process stakeholders likely strengthening effort to Square our the to until will with its vision a to and meet the enormous XXXX, Nation significant your and One of our year quarter's Lastly, project the be the know progress much. support. now like we coalition questions results, take questions? Times hundreds sure, with on the for extra providing worth Roc that Caesars We Entertainment gain our know to New approach true made we over gaining, this

Operator

Goldfarb [Operator first Piper Sandler. from Instructions] question Our Alexander comes with

Alexander Goldfarb

me think, have floor, Douglas first pretty take we convert vacant. they didn't let a go it questions. if so guys, Hawaii, the Obviously, of to I that's I all floor guess office been Marc, for what X-part out in able my XXX, hopefully, they've is service. you doesn't you've done at to But by fully to building look resi and out conversion. did say Emmett Matt question, to

you one, to XX million your go and how on two, the would is. think those feet, force guys, into then do impact meaning And buildings XX portfolio? thoughts coming million square this buildings? But convert to that really XX of those the plans demand does off-line you that XX buildings office million your out really million you out of that accelerate what Or with if going are that are carry-on service, does more competitive

Marc Holliday

bottom a secondary of These market of bad just buildings, they're bottom the Well, buildings. because of Yes. the these I they not buildings. the all certain the to extent -- call would form or what middle competitive are market. They're some the

not do mean buildings Secondary buildings. bad

when concessions them, to use a can be would of just full-scale really in that means monetization obsolete, relative they Some I warrant rents that to it that of redevelopment and types redevelopment be the achieved capital don't of the light term the given. have

those -- better eyes, the relocating like had them So a use, quantity we've in such It's and and perfect at they're buildings a example. many our of our good space not and space of eliminating and building, other taking tenants of and out bad buildings. vast into into Midtown, portfolio tenants did in surrounding a They're Third the definitely buildings XXX office relocated is out we it better just by those existing a higher buildings.

are term have don't They as obsolete. be be warrant be these foot level or bad we a the foot that's So don't buildings I and optimized that secondary thereabouts residential simply equivalent. buildings buildings same resi that footage go. a as buildings get a and the above, $XX square that square the $XXX should optimized of residential are investment And as because rentable Midtown -- used might on should office can that might just $XX necessarily investment be impression buildings we're and otherwise foot where have, on these or achieving that

doing I The Douglas of I becomes to example market, your Honolulu, same. 'XX. was being obviously, fairly mean, -- size a market. being way it's different some spot it's out. you an about benefits, a tenants Emmett market, on your by one tax comment an have a of is dozens time converting, imagine for maximum this in There it's impact So think is in on. the having to of it file relocated get the bill building structured very different point clear. And what offline, But is office permits the buildings, taken significant

see, right intended is This to smartly get means you and That to now. housing got affordable of coerce housing this expedited one 'XX, transition to it to but get road. This those just 'XX. 'XX, because isn't now, XX I'll and going right wait down X, we transition in addressed want see market not building and years building and workforce ultimate to to the not problem

to that's the look who So in me, cohesive need for positive think, later. renters very city for intentionally a than I affordable way and tax sooner positive solutions benefits,

Alexander Goldfarb

Okay.

did, $X do change $X your things? out guys expect. achieved need interconnected, the pressure stake accelerating asset you Investor at sales any does with billion here because as exceeded Does guys change million have means have Second How look that and you of you laid either anything question really and top-tier paydown. One you to Vanderbilt your $XX things debt clearly, less that is refinancing, do taking the the off of out I others other do far? is only billion other things. stake future off You that But think, sell especially pressure or the everything of debt Day a so calculus than expected, the you what the that of do assets, sales you or would to does It right? better to

Marc Holliday

as our board this it, the points for view tide for doesn't this putting don't the what in it, this -- enjoy our we changing as business and We're New plan. we XX seeing is We we've enjoy turning impact Well, I feel We're shareholders. the done pressured. we love do, this what back. This look, watching we it on and and I've and and And progress, years. enjoying mean, view not the stock York we this. on what done come is because we and it's

more any pressure less to anything. feel don't we do So or

beginning much of we Our sell regards JV identified which from plus X amount to big remains and objective we're restructurings, is or may deals working both along certain add with or business is as intend still to same, of activity for on aggregate have as which we've debt or that to our still we go. just the year, the eliminate mix. the modification year, goal we buildings, that plan we But in the important do X the the expenses year, and announced,

front, to we working events the best of on well-located for disposition harvest domestic internationally And premium the like and strong, appetite, then very two, remain decades the committed our remains we done reinvest. assets that through as both assets, we've think and these now the monetization gains we for and

Operator

And from comes Kim BMO our John question with Markets. Capital next

John Kim

get what's run a had your earnings, or quarter, the I wondering modest. other And is from if and visibility your of question seems on fees it's all is fund? extinguishment onetime onetime a basis sourcing debt on on good items, -- items, this was additional rate extinguishments the was a $X.XX excluding that debt any whether rate? for which kind run I

Matthew Diliberto

Yes, John, Matt. it's

DPO a commentary on that look me was, the quarter adjustment discounted read out there XXX our Herald, at actually, our we new the which bit was adjustment due what kind guidance range, night you made I've numbers. incremental X debt to And gains, and are at adjustment threw this was ahead quite of the made of guidance Seventh. extinguishment Park we last miss, because in gains So if back XXX a but January, our the

assumptions would are guidance intact. in our other I December all fed of that say, the back

same. basis, So and on full a is the a we if guide who don't full basis, guide on year guidance first, quarter-by-quarter the our year we

fourth and reflect SUMMIT to, and quarter, as do their NOI that's a if by the should -- mostly that back get side. And models that. of adjust their second, to few low first core to the it model higher if So the on people struck need to we number not were people ahead relative models, quarters it in to We third ours. our was to they in the pennies guided

earnings linear. are not quarterly Our

that We that have fee streams come make them through lumpy.

of occupancy. We have as year NOI building increase the we can course over the

So first intact. expectations is quarter full our guidance was and year better than our

John Kim

I Can in little residual It loan there's refinancing. the ask the very XXX about and Park like seems assets. equity

You them. was didn't part lenders of transaction? on have really the senior in it the any senior down of What other for pay this to mortgage

Marc Holliday

the symbolic some deals. game. At term in to we cash some on And spend for some of form as the to for I'll assessment all. just were return, statement just first, So all form make put Not and see a market the of and residual assets then we the the speak these with at skin about upfront, that the general, about respect to With to equity. XXX, going costs of demonstrate through lenders flow, the the disagree in balance that we in we we're and all and able these with otherwise extensions CMBS announcements, in as sheet we saw runway the want and leasing with asset reserves have side, what we're those free demonstrated all were looking to XXX, both seeing game, substantial which and skin at pay the in downs. lenders get up in

been earnings the have and these relationships on and few calls, faith people looking in they that with we've are big lenders we us. telling tremendous as have past they're So --

see So program. of down balance the got as should expect over you $X what the of past done billion we to more get we quarter the

Operator

Tom Catherwood And our from comes with BTIG. next question

William Catherwood

could of you on convinced this to the remarks? roughly How compare And some feet tech sector the the you at million last on mentioned start Obviously, your your X.X more leasing had in demand. color provide leasing pipeline does that of durability the that Marc, very and you sound you reemergence the on quarter square front, strong of quarter. the

Marc Holliday

Steve ball off to Yes, Durels. to going actually that I'm hand

have that source can fourth well, go some some first obviously, quarter, -- would in he's is the by to big because depleted, I maybe we leasing pipeline, tech in as we on that quarter, that the on the -- So charge but so. about done here And sector, in the and pipeline can of go can having not. thoughts into leasing think the right you discussion big after way,

Steven Durels

Sure.

the grown little now actually XXX,XXX of X.X a of And new pipeline. over are of it X/X is as quarter. X.X we square that tenants. to cover another to same-store give the square strong out pipeline I of think pipeline leases the almost tenants first pipeline negotiation current that leasing to feet have very in at portfolio. just We're that It's -- those over you renewal within vacancy a negotiation. color million feet square feet. term million, XXX,XXX current in the leases XXX,XXX on that space is opposed despite actually the are our Of So sheets feet current in within that square that, the the point is of of are to make leases out opposed Of as

a X to tracked tech but are the the today, that population. demand that's started head to from result give of tech of sector, Figma market, of big increasing household are requirements tech ago. and portfolio, within With that kick obviously, tenants And flavor, increase not current regards are in Fanatics million their names other active and a market to our just necessarily from over as the the there's just tires count like we've you adding that a seen a market tenants to a feet year that the being in Intuit, XX% have searching with tenants employee Manhattan square couple

William Catherwood

OVA, see closing plan? potentially we going the is Obviously, in year, the sale partial the the Seventh then on same. expected though aggregate great can And And that And Palisades there to is the dispositions. the mix what remains maybe it throughout XXX That's Madison? XXX That to shift understand still on and great. was said, contract. interest the

Marc Holliday

of in confident deals, happen active big still be the documenting, But deals plan are negotiations, any if their year. guidance don't sooner beyond this we're big get do than hope later. terms they in assets to advanced. we've given Certainly, we very is in mean outcome. need to And know much quick OVA, nor in Those rushed. more which don't I them buttoned timing, I up

you one said was? second The

William Catherwood

Yes, XXX.

Marc Holliday

or XXX in closing contract. was that

So time on about frame question a XXX? there it's closing

William Catherwood

Yes. Yes.

Marc Holliday

close deal is of end slated to That month. this Okay. the at

second to away X expect we that motions Park And buyer so the on And XXX another traction getting process we're through OVA, on. it's in through And happen or this then with the I so. closing mentioned that steaming weeks And are to enormous is go another that going we're leasing. and quarter. one

We have that X.X are in more leases pending that million.

The better, Avenue. is the on more for redevelopment, the leasing all enhanced ahead to the is commitment we the company, JV us. the on so shareholders, going leasing non-new even execution the of best of The really Park but which just we're make redevelopment, the done having think going buildings get everybody, keep and the to one started redevelopment promise of it I of of

Operator

our with next comes question Stanley. And from Morgan Kamdem Ronald

Ronald Kamdem

Great.

Just quick ones X for me.

targets both volumes front, staying about because maybe pipeline track. about the leasing well well I sort on But leases if add, could mark-to-market could the saw the as sort the you of which, the on the I in year, on it of expectation the little based like leasing just a sounds the bit if mark-to-market. Just on reiterated talk pipeline, talk sort you're you of occupancy as this on

Steven Durels

Yes.

number We mark-to-market we're on negative had first of for negative a the the the leases some Third give really the overall in and leasing of at XXX were color by the that drove Graybar Building Avenue, X quarter. for quarter driven sort to mark-to-market buildings. Just

rest in positive. of the balance, signed portfolio, leases the On generally most the were of

forward that it's -- overall We've what the us be the feet. couple going that's of confidence as positive pipeline ourselves that, out that for a But us year. are we got stragglers we're beyond right leases then we square that not big had positive look some into unfortunate it's to down. the and pulled now So that of and X,XXX,XXX mark-to-markets gives assure to

Ronald Kamdem

taking it I of target wanted one how sheet. guess asset Great. balance on, into in of back a of the of just terms you step the much debt And you out take just then and which year my of but just sales, to last kind on touched sort ties the

better? you off of the trying that expectations? of asset If Is you Could there about you think can this the sort year. plan get how success trending? refinancing sense in for Just much sales, that a with the even had, is to come balance line how of sheet sort the do

Matthew Diliberto

intact, is and What Marc said that's that earlier our plan remains true. business

billion of out we December laid reduction debt $X of in So this execution through plan. north of

additional XXX wired we minimum, in debt we extinguishment some at things like at and we've in didn't would that, So sales Palisade. had but expect Herald XXX success the and some like have discounted a asset X in

that entire ahead we back So even see that laid plan have the out original execute if laid would us be we that of in business we target out. December

Operator

comes question next with Griffin from Our Michael Citi.

Michael Griffin

back the bit going an as keys? mainly more for back to indication a is Great. refinancings Maybe owners have that relationships the having it the existing that quarter. just opposed with to to the as take to that the you this take in in work we to willing market? specific Should did lenders Or you are

Marc Holliday

want relationships, to beyond generalize our don't Green, assets, I our et activity to SL cetera. the anything Yes,

as skin said the sponsor, a to plan, deal, is come in still in Harry cetera. where lines market up. game, all there. in equity it's And belief sure making tough it's it the lot et going think the earlier, out the a I sponsor's to down And

conclude case. path that the that's resolution isn't will that, payoff. and But have lenders many think optimization loan I every towards and best necessarily

of occurred all way see through think improving around that think very ourselves of that good, program, years. But is market, a position that to we're the sort the while don't I conversion effects earlier a think examples that you're and and can throughout back rate take think gone And I very, have there's what There's city. you of extrapolate have we've positioned through other backdrop past trajectory manage fortunate going the the really with what of can which we very the of we very X to feel it's in for all and it's a we're I that. increases, what in the examples leasing You the or to work we direction. this that which over I to an interest And in resi growth But said hearing. year, responsible of harkens today, way office steady, is generalize optimistic. from just and done,

Michael Griffin

a you. That's XXrd then the maybe Got transaction. helpful. on East And question XX

to partner rents it, guess, potential more JV Just And seem for your some looking venture if same of seems you insight why curious your for It's of other property, the at any can of decided this in properties? relatively we some relationships exiting attractive, building? and as positive. exit the the leased. fully call these I I'm flow mid- that to joint could high It see, XXs. the to give cash

Marc Holliday

comment us, words continue We their have are opportunity. we to want partners lenders continue a real thinking We policy in we'll that for put but I to here not going in for and estate opportunities make see to on invest do we're mouth, or to sense to if don't what it. look and our

Operator

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

Jing Xian Tan

billion. how with December in just assets opportunities to deleveraging thinking of given process another center Can moving your $X about we of were And the pipeline? thought and the disposals be since not XXX further you're working you the forward conference should on speak these

Marc Holliday

a up. Palisades, an instances, pertains front not to They strategy it long that plan. as our in -- those opportunities sit business of that was us But part it for us Certainly, look of term as are business were core asset in that us. again, for both they're In we in Yes. the came front to even continue they if to see mine of not plan. main opportunities had

Jing Xian Tan

your about you your and through income? of weighted more as how flows earnings are And volatility Okay. more cash becoming you deleveraging when the ancillary to work programs, think disposition and do

Marc Holliday

that, the that's think case. I

Matthew Diliberto

it's to separate Yes. that's plans joint at business, don't business trying you We're ancillary the interest. acquire have that. of all. No, grow case always as do things special business. servicing we assets. assets, venture disproportionate good I becoming our should I to income we're think are that we to think don't But like It's diversifying revenue streams. fund the to the going and building managing we're streams aside, which That's dispose and do, we

have years. for a of deleveraging had We strategy couple a

and on offense. have going of We that back this more year we're then

continue So separate streams the they're dispositions. distinct. and the We'll acquisitions I and kind opportunistic sheet try while to portfolio income the grow and and think of with managing balance diversify and

Marc Holliday

progress. into grow I globally. It's the wouldn't additional line, now like at I making other Yes. it want in-house. income the and look business expand and It of of but we've business business some a organically that the a substantial good an line minimalize very was developed that the light. profitable. as and you ability attractive some fairly capital attractiveness locations We're working guess, entertainment to to call or I ancillary importance to that Technically, can it,

doing mention, special soon, entertainment, the rating past we think well, but York since our quite food funds I stock hospitality, an business where the an the interested I it's to already in areas only the didn't what hopefully, don't a is prowess servicing in we -- not deep And overall which Green in we definitely New business, incredible management from. beverage, fee-for-service got into we've know, really just and we're space of traction what business, inception. be is do gotten over additional important commercial track in an City, in SL reason in

Matthew Diliberto

Morningstar.

Marc Holliday

acronym. what's the Morningstar, From

Matthew Diliberto

DBRS.

Marc Holliday

ability from and sorts our loans, that customer designation gave an and relationships. to third and now these just special to are as client accredited SASB new by. having us S&P Morningstar of servicer, And an Fitch DBRS gives loans, Morningstar large us come accreditations create not all easy

getting that previously. now think on got serviced top we've $XX serviced we've And of started another to about there. just $X billion specialty billion I we're and close right that's

important they're on business So We them. focus lines.

people We internally have in of those who are specialized grow to them. areas, looking all we're and

Operator

Our line the Deutsche with of Bank. from Omotayo Okusanya next question comes

Omotayo Okusanya

me? hear Can you

Marc Holliday

We can now.

Omotayo Okusanya

specifically, I'm an the SUMMIT about probably a business that's kind associated why of with may Excellent. some make saying getting Could given first lumpiness happens you of quarter have the there these most in was earnings bit miss that earnings of and talk that you wondering whether summer? little the been of over earnings

Marc Holliday

I got restrain that. to

Matthew Diliberto

miss That if more down I'm I going me hear going mind. to hold Yes. lose probably earnings time. to Marc's one my because

X was first actually wrong, it fourth there the sales. at model, is to and that slightly as miss is better, it's if buoyed down happens do and your quarter. time SUMMIT, and slot about for quarter first we're day speaking, maxed missed was we every sold weeks shut only linear. actually generally because the But is year obviously, So out. in SUMMIT, Separately, just SUMMIT is because fairly and every is linear quarter anybody's the model The the We fourth a numbers. holiday lower. quarter by pretty no out the slightly not And

Operator

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

Peter Abramowitz

Yes.

of Just of the earnings continuing topic the the kind throughout on trajectory year.

fourth about first quarter quarter. kind I debt of and through extinguishment for the the per items, versus in think without back implying it's second debt onetime the quarter if we extinguishment out $X.XX the $X.XX

it year, I lumpy of could to but you know kind if getting we if it's said average curious $X.XX. out, throughout should just overview. an be that we So the provide you

gap to the it bridges the rest quarter year. of for expect where kind what of first to So from the you be

Matthew Diliberto

lumpy never guidance. in depending fees or or sale can quarterly I'm earnings servicing the success on transactions come annual give be don't, guidance. through fees not The going So recognized on special We like. We to that will. give

the low. full And year give is off So income, quarter obviously, the an guidance. because is first first of acceleration there quarter we

close to going the are special not full How occupancy is we be or going deals But rate get how we dependent to that takes we year that's quarter-to-quarter that, and or And guidance it's you obviously, confident why maintained that's full on to if to how it. fees not -- gave. it number, the servicing shape. recognized going bounces in year run are

Peter Abramowitz

Got it.

acceleration the extent that you're the if is occupancy. just mainly improving to NOI guess I that So an say, expecting, on side,

Matthew Diliberto

is we increasing. increasing. million leased Rents last square this million feet are I We're Yes, into NOI lease that Occupancy X increasing mean course. translates going X.X square year. to year. of feet

Operator

Steve Evercore Our ISI. with next from question comes Sakwa

Steve Sakwa

I'm the Matt, the earnings want kidding. about just ask I miss in just to quarter.

Matthew Diliberto

You're that's banned, it. Steve,

Steve Sakwa

sell $X. Okay. the on not might Marc, you at $X.XX

we're think sort maybe it's played execution great part on that to arms get around, out? just our trying of a how So your

Marc Holliday

and think And got it's mandate, dangerous. tell to have monetized that there there don't around term this a those there those better. And There objective of to objective. overread And an environment foreign a earlier or for overthink right who as can is negotiations that a objectives. people's at be get isn't in in own is cases, I capital who has and all It's be to value I in real of -- and want will but to different like trying set price right motives is and their wrong and the you, in debt mandates and this, of want times are out getting instrument estate restructure is unusual not are I is reduce moment really This in that and assets not it's an then liquefied lenders time into, there objective. said have what not to and looks unusual. an hang percent still a are a constrained period. that kind lender to at

in that know equity say a to deal. is all to So calculate how much we how

and derive the Box. think don't and stabilized and The how current numbers a run I it a Black numbers. value, vary, a You done values always and rates we've but that's it's vary

in deal. there's believe the we And equity

probably lender March XXXX. or decides believed I equity April a party here of stabilized to or April in there time But do disconnected future certainly at that's the what any moment in the think from in think I was deal.

best what's moment be to moment. a your And in to that debt mature -- do going the any and is try When take as the at like does to interest worth. what this building You and extrapolate here?

Matthew Diliberto

'XX. September

Marc Holliday

'XX. September

And this deal in revisit conversation to the we'll close about issue like So then 'XX. the have in the we'll 'XX. equity

ultimately to to lease this I hard going I this to working respond building market. is up. mean it well think we're

I right? Antares lease, did think we . the

Matthew Diliberto

feet. square XX,XXX was This

Marc Holliday

feet. baby. come And Steve We're on in pending. that. square more Sakwa, props we've XX,XXX the on got

war, duration what party the next did in not And it's So guess, us defined, for it years. a are the X.X it's is the Vornado a fight, best for gamesmanship. not every was in a It's the interest. I duration, in not

business decided was go. want a Everybody -- we they this and to I sensible deal. where think it on was be it

Steve Sakwa

debt how Maybe, that and where dividend just Great. of about say, of Okay. reduction kind remind you, you XXrd? XX thinking that through is Matt, the these got better dividend, investment either kind you just guys the If East or you've income are on the the made, through might dividend? us in be of dividend in relation opportunities taxable investments front served to net

Matthew Diliberto

income, the to generating we taxable try Yes. The based taxable these we've taxable monitoring because And of employ $X. maintain set incremental trajectory basis we've that on was we to keep it. and taxable DPO can we've income as been been have income, that gains, or that But for dividend gains income XXX% that's which the closely well. strategies been on the

So now. even so at very the look set of And end important were the said at dividend comfortable dividend year, with our over we've how and $X we'll us. to the out we over but is we as again the again more

Operator

comes question Caitlin with next Burrows from Sachs. Goldman Our

Caitlin Burrows

we've heard signing some are earlier, Like XQ an about was was heard from quarter, we've leases. mentioned companies industrial companies active XQ that an being REITs some leasing that industrial you hesitant from to, big

different in pipeline? related wondering, I like play to out seeing seem macro story? any So of just your uncertainty are hesitancy does was a you just it Or this

Steven Durels

that of there looked dearth a moment only in no large market large But quarter, very time same that the I No, was surface all. term you big today. where we first overall at the sheets out there's leases if big recall pipeline scratch of on but leases we stats requirements. on if the do doubt don't you the tenants looked I number or not at looked are very, within if the and you had out I not -- pending for signed. mean the our tenants tenants, there, stats mean in list, searches portfolio, in tenant active some I a -- that out deals with there's market large for

timing. the think cork a saw what think the lot in quarter in second you're going the in I signed quarter. There a I majority So see point all signed were bunch tenants first of And back big first a quarter leases you simply is And big that of to or vast deals in balance fourth relocations. year. were I'll and quarter by make that they are as commitments other signed long-term And this are employees office. were bring the those the is one being signed leases upsize of to big in of the through their

Caitlin Burrows

I talked then earlier And disposition the about of it. guys JV Got you and outlook. some know

to is saying kind to more back planning done could going the that's on XXX before that the update XXX maybe I moving that Park you're JV focusing any time? Just in along leasing sale? of be additional you do something Were guess on and briefly. JV any particular? Or Park

Matthew Diliberto

year the Message, through plan second pipeline half of complete, get some We as second And we, for of of is trying noted. first -- half delivered done we the the at these leasing to the focus more was think into city year. us package well Yes. that half it the think, down got the in also for we're business get I year. Marc objectives I as a and very some of will big

Marc Holliday

more any have we questions? do Operator,

Operator

Fargo. from Heck Our Wells Blaine next comes question with

Blaine Heck

ones X quick Just for me.

of foreign the in potential a XXX dramatic we've OVA increase rates pretty some Park. following and seen Just up exchange the at fluctuation sales XX-year. in recent and interest on Obviously,

So of the investors I guess out those deals? impacted running? has is, the level anyone on dynamics any have I those guess, prospective from the the fallen of question interest

Marc Holliday

No.

Blaine Heck

cost putting the some how loan. Can part XXX Park the And as you in enough. Fair quantify then right. All of that of I reserves modification was? leasing think mentioned much you

Matthew Diliberto

collectively amount Vornado million. was that $XX in The with we approximately put

Operator

This to the like I and question-and-answer for over closing Chairman the concludes turn to now session. back would CEO, remarks. Holliday call Marc

Marc Holliday

Thank X kudos they was great listened Thank in Green, here launch team months. that better we're news, on busy when to equally to this the call. at And again some to a hopefully in even SL great, news, we good you. sure you. have work It and fantastic the here, look at Again, maybe speak whole X we we'll months, year, know I making forward it.

Operator

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

You may disconnect. now

SL Green Realty (SLG) 18 Apr 242024 Q1 Earnings call transcript