SLG - Earnings call transcript Q2 2024

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Operator

Thank you, everybody, for joining us, and welcome to SL Green Realty Corp.'s Second Quarter 2020 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 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 the 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. Also during today's conference call, the company may discuss non-GAAP financial measures as defined by Regulation G under the Securities Act.

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

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

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

Marc Holliday

afternoon, Thank in appreciate and joining everybody I you. Good today.

for want even standards. recent. contributed impressive for have think this own lofty to lead our to the of SL who company's Green most challenging my by this SL great I was, sincere I by massively times our by all quarter the off expressing measures, team appreciation and throughout for Green quarter results a

buildings The SL X believe simply of week, best are a City, negativity night, doing these business. Green of the the Green New the who weekends print the corporate cannot X,XXX-plus and XXX-plus and are men We extremely in employees York we days deeply tide against in and care the work and about day, talented what results women dedication the in of work SL without holidays. defeatism and loyalty and another

first can good making X, far amenitizing sector deciding such an reason strategic knowledge past This X outperformance it of and biggest shareholders that a making professionals, we achievement in ago and and to will commercial improve the market outperforming year-to-date decisions. for the out is X always the plan deliberate outperform vastly We a recovery because we of Green, a the bad in team be the something investment still our than unsettled years SL market. It laid portfolio we estate result real greater that simply illustrates of fit are years. And quality factor are to assets physically and in in the the in profile office our it's the along put markets by in our then we extremely spine didn't fund selling a diverse that and have talented and East should lucky assets monetizing in our the our development over and efforts that Midtown, Park new to properties, focusing improving activity. Avenue best

I path New on execution When now now What plan you sequential foreseeable picking and was financial operating said the Florida and we York, in what quarterly seen for metrics that believed. York. quarter and positive fueled billion our we that compared part growth into But Wall in the Florida. the $XX of the and elsewhere first are sector XXXX, by as believe in the last we've on Street is are others in gave South significant People sector financial future. in year. Growth mean up to seeing consequence of of of is here in to a the to seeing just right here profits that's all New improvement up $XX moving our and contraction of doesn't hometown billion

the it continue XXX Park they as In is all expanding fact, it's companies footprint buying Bloomberg Fargo their been JPMorgan Citadel, report extremely neighboring are appears the that at and building like and strong Blackstone, opposite Wells to here, profits. Avenue

million deals, -- which of Park outwards is the interestingly, is out think Sixth feet beyond leasing of look for rather, dispersed, the on have Avenue, that Midtown, yesterday and leases more signature, big radiating to Avenue But X.X not of term middle, just for feet. sheets, space think signed activity. And I I of is lots everywhere X.X of East office than lots pipeline date. have sites best million that feet This leases announced of XX% of the There's of balance in we to another we it's goes totaling after activity that Third far illustration elements through square what Avenue square year. on in the square more we Park over for activity this our deals. the one of to of the at pending, not after from our demand strength all that fairly to X.X looking the on But it's is evenly And current mid-market exciting of Avenue. million identifiable forward

it is limits wrote daily at hotel off no tourism be in back. tenants of some now to New result but on properties tourists support under destination, attendance Airbnb's If this well is value New numbers again to brings as had evidence our is saw is up our And very of up approaching year-over-year. Occupancy right expectations housing. last year One this expected us again New year. to over this retail average in clearly from And were Midtown to we surge because are then attendance soon. XXX% and residents continues, York, hoteled Retail global curated Madison, rates at of XX% release is City, in likely real off There and yesterday, X% back. hotel this and SUMMIT and is million neighborhood. is Yesterday, a outperformance trend Manhattan. better you the naysayers we of is in retail announced where the the York upstairs over the again, XX of the going of of Everyone York Flatiron a year that tourists building that this but beating way leased, conversion

we fall come everyone to I'm an I the questions. today. excited on and York higher have announce all that. and proving And thank compelling details most on quarterly and to on destination note. we New listening just I again and contributor of our that Today, and more become has say you today, want to Language] this a one in take our for it's SUMMIT to even to was again to experiences But that global first City's results to Paris. More and [Foreign Paris, that we'll and are listening, But secured soon, in new location, expanding you see come can end

Operator

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

John Kim

ask it? this the And could you of about location anything with announcement, have of ball it? talk with Can the SUMMIT curve more that. so about timing To anything Paris, else I just you in to Paris describe on the

Marc Holliday

stay more formal leave the in that, exciting. everyone Yes. about, rollout But very we're Lots wanted to coming know months. No, to tuned, to we're coming. talk going just

John Kim

York. could if Maybe SUMMIT, on focus I New then

in XX% is revenue also mechanics remind us on rent that How the how this is quarter the count How a the had much of price? rent was much visitor year-over-year. to that versus average JV? You the growth figure? of you paid can And OpEx ticket of

Marc Holliday

part I mostly the of attendance. -- it's question. got The the first

city the ticket SUMMIT point XXX,XXX affordable attendance, year and can enjoy goal around as goal of and so people price had above I possible, year the just is want -- within and as think the numbers. -- an of the it another which come is really world. my to budgeted I the to SUMMIT keep the our the we both are for fixed. prices The up was half first for up

We programs New they for where have York discounts. get residents

those active discounted at at price. evaluate We that We fixed the have surge We and for the don't are every prices them prices and think in end fixed. best set veterans We programs I class of duty and year. beginning of year. the the personnel are hold

So again? of almost you can if that you John, all What that ask asked, you, is second see what I was attendance. part

John Kim

revenue or do you -- rent start on opening or the of And JV, is also paid or expense? rent the that the on is intercompany that visitor counts, when The expanding hours? up the operating how you Mondays much in at that the

Marc Holliday

you Why the part. Well, answer don't rent

Matthew Diliberto

John, building. how SUMMIT rent, schedules We into much rent. to get the don't the supplemental, rent Yes, the percentage base the pays in

Marc Holliday

Okay. And...

Matthew Diliberto

then And hours.

Marc Holliday

of Hours operation?

Matthew Diliberto

is facility think now, I typically operation. sale go are longer. of the and ticket as opening the could night we're last city at We hours Sunset, we curated from and right at the in morning, better lights the night of that air and XX:XX closes at evening. -- X daytime around because night Yes, feature SUMMIT something Those good in experience The as bit we've have -- every midnight. with --

on going So closing the maybe first summer of it's open on Tuesdays, half I later X We're closed of be is were we demand is X of ramping end now. down imagine the possible end season, hours. the until to excellent going half days. we'll right second we'll Portions I that year. the up days in The days year week believe, will go a after facility days, the of year, the the the in But strong. We're of almost right and now, condition. the the X

Operator

next the of comes Mitchell Connor of question Sandler. Piper Our line from

Connor Mitchell

on higher able an expand of guys might the other as changing you at just Park in concessions, example. give? the you terms rents touched seeing with quarter are in you color opening up story the neighboring to you your it activity? but Marc, leases remarks, submarkets dynamic just Avenue in on be pricing activity, as recent of Could Any how

Marc Holliday

in rent over you just for a for -- which I But average leases XX% The done quarter over the about up Yes. sense give first the the second in was the quarter. $XXX quarter, in the second starting $XX the don't rent average was have the to pipeline. to

and It's will, dynamic regardless driving it's will of block as I it's is buildings, influenced relates your of its you new think the it old it. Avenue So if because of Park of in you run to sort Park, is And of all particularly concessions, a that or it availability, -- but Steve off much really definitely dearth, the buildings of or thoughts? it's whether through of not and lot Park Park, as Steve, big in by rents. tops of on tops as

Steven Durels

is in don't spot the of mean got renovated Well, is point construction our skewed we've the or space The just half a floors. points. a of -- lot the in that but of with mid-price on heavily buildings, amount even Mark to portfolio. new a that that tremendous regards upper to What the towards to activity of migration quality we're buildings. better couple is seeing and confuse

floors tower the in So particular.

you portfolio, you would base overall base buildings. -- beyond availability direct that the If are there out our is marketplace of floors the in current there's the in XX% of just stat a in look the located in that tell market building

Avenue. you're seeing So appreciation price on Park

price tower the the floors and in leasing You're of heavily irrespective appreciation point price velocity the buildings. and mid-price the heavy buildings you're seeing location, buildings renovated both appreciation and seeing of and strong high-quality in

and I we while buildings year that now, That's haven't seen the pretty the unfold And better irrespective a building for I the market commented of exactly get prices Concessions, said to remain had things to static. in. of think, in in concessions the improve. think we've we And as earlier you're same portions buildings. pushed any continues better the how change I seeing we're when question. as quality asked expected on

Connor Mitchell

Okay. And maybe question Appreciate debt just well. on quick a the that. then JV fund as

any kind any of on there's -- look is of surprise still if primary fund the debt at you're focus of the outside update wondering Manhattan? opportunities Manhattan primarily for maybe focus a submarkets, outside or if on may the company's taking any opportunities Just you

Matthew Diliberto

I add focus is the Manhattan. Manhattan, to will that.

the continue or not special start which you'll -- investment As us to servicing business. grow and principal business, see is asset see a us management to

see You'll that's for assignments to purely Manhattan, business of outside but us fee up us. continue pick a

Operator

line Tourist Lewis comes Our Michael of next of Securities. question the from

Michael Lewis

Manhattan far My first question about in leasing so year-to-date. is the

or as know, to I Manhattan for square half year Your weighted X year. first don't guidance, know you full leases be expected you time the million if office for feet that not.

question guess guidance? just are, running seeing the of year-to-date? is you you're is Or you it strength market? expected Are is, volume broad if what So And your there in your the reason? in that you is I ahead a

Marc Holliday

first think just but our -- sake, heading we're as in mean, you guidance. you're in I direction And that seeing of was and been occupancy volume and year I other the running really year in ways. Well, where of terms for as us leases The saw good well really on the half right we're strong guidance -- volume's not for ahead definitely has satisfied with.

good that's results. So I we'll work our is X.X Steve, we'll of some a guess, up million of should to But give what's look, -- by for and team it's strength driving yes, pipeline. pipeline see to parameters fantastic exceed blow away of goal we where this it do that year, that lot coming and see. I'd much from? how on end really the like there's sort and some that you -- could sort around with

Steven Durels

Yes.

earlier, and currently, sheets mentioned -- number, being have feet. pipe square just term about is leases the or for feet So at the we negotiation as that that deals the pipeline overall of in In million, of out negotiated, in XX% to of square XXX,XXX in X.X we deals the the it of that's over pending covering building. square stands current as footage for pipeline vacancy X,XXX,XXX is opposed number

bodies new makes you're sector, filling up square of So XX% lot add seeing current see to tenants pipeline vacancy, come of we're which and service portfolio, seeing and the the into footage continue expansions. our add a dramatic financial

Avenue. Park recently areas Park were were that size. very were each year Avenue XXX in announce doubling us seen large both you've at transactions of that them deals bigger tenants the for PJT XXX this and with Those of of and Some

So drivers to and the some our I we're think date, -- those those our of were pipeline. were that big in success seeing

the no year. So that's for rest slowing expectation the of down

Michael Lewis

about in and I slide We'll up bit in second the deck to Matt about that income, on look Great. question December. talked green is a for fee My thumbs that little this.

fees? And Can about other of I million mid-teens it in talk want quarter. item? $XX look to rest lumpier don't million they're multiples in what item kind the the recurring was If was the maybe servicing modeling in to frame the talk driven. more quarter. the But fees call just it's streams couple it guidance, put and appears somewhere run first revenue about transaction transaction next The this I might me because the in versus revenue quarterly only to at line rate the quarters. It on you line of the nonrecurring some realize I the lumpy help of that not of fees but to $XX

Matthew Diliberto

Yes, it's Matt.

illuminates this strength which the now. its finally quarter be can over this in the fees people, to machines we've think the it's and fee-generating forms they people years, showing few I So telegraphed lumpy. platform These various convey, last in, come and really

fees muted was forms. those they basic timing but be the was fees until basis about be in unpredictable, in from a in. what buyers many then That's And are time, a restructuring income. sizable you of Those come ancillary the often come last deals. quarter So quarter a assets monthly resolution servicing partners, a or the of business the get they're Those through talked is modest of fee when We big. can resolve you situation, closing the of debt. We can This on flowed business. That those fairly of can lumpy, fee. special in quarter. function fees part those get success

out not come challenging. guidance. can of quarterly and course recurring? therefore, months, you than even blessing Well, So it's By every fees most when very servicing But is and our as say fees see what's move business, from when those all continue margin you of the in months. fees, are have to putting the estate to higher do the over quarter-to-quarter. much these requires But X it even will asset be what categories, of a the and guess that real is us, management we multiple. don't special for recurring. The those of a much income, timing can categories higher that's bigger fees, high-margin bigger way, ancillary things a part recurring of XX as I

Michael Lewis

do to continue I'll quarter-to-quarter, best. Well, I have my to do so

Operator

Bank. line of question Yulico the of next Our Scotia Nick comes from

Nicholas Yulico

to it the I done was renewal mark-to-market in Ares the for First that Is think a feel possible and that? July. on question for get expansion, is

Matthew Diliberto

want sizable It's are up leases, to a mark-to-market statement, vintage. in Park as specific prior get it's I number. on XXX into the leases don't being but from a -- significantly general marked a

Marc Holliday

it a of should was be Avenue Yes. location commitment I the in an to in was order time. it responsive capital and asset receiving Park mean got really of deserved be market And address. in you a by terms period for unbelievable HNA building a the that's to of understand leader probably amount to not owned

repositioning the everything commitment property, to rooftop, do from new be that underway. We very the significant we've building obviously quarter by plaza of mean robust we're done marketing program be addressing launched. it's done. to that through phenomenal off lobby 'XX. building end And when hope So we're to first amenities, it's going cetera. I already of a to capital of 'XX, It's the et a

So signed, when at state reflective building. top them bit we're it's as supply than The at renewal I a digits, the the lease-up current maxing rents in completely we different period. quarters. go or expansion there's you a apples we'll compare and probably as oranges the or the full because of be able given all look few and to or you've forward building what's to even kind leases achieve of seen unfair rents But higher left. its building. this go of rents foot mark-to-market, raising thereabouts. And because We for to we new much forecasted lease-up we've space longer out over bunch decidedly past is as as and of space forward to it's demand the predecessor of and bottom a a expect that diminishing both building had are from a $XXX mark-to-market triple --

Nicholas Yulico

done versus like focused the on still, us asset a year? I could interest leasing it higher. you're as I rents gotten then? sale then in I know thinking how a for gone is feel and Mark, like building, that. you about of give think, a have you've just lot you done you're was that sounds Can Okay. be realize that just guess, last valuation the the follow-up then mentioned, I What

for or an feel based it's else, any ago NOI that what year trying may achieve you're to how have underwriting the changed Just a now. whether something on number versus

Marc Holliday

in have forward, up me. don't numbers of looking done a of think lot mean, at those budget. front we've intuitively time in terms on just a I space. leased Well, I year But where like I over We've it elapsed, of

value So warrant time type premium. some of would alone

say, On great the progress. that's could you one well, hand,

hand, Harry? other did when it was On the progress. That's the this brought our they progress into we the When deal. partner budgeted

Unknown Executive

XX months ago.

Matthew Diliberto

of but guys numbers the you put is test XX partners it and months of with They're with our the like we not shy not down they're we've think rely one partners do we obviously, shy. been ago. ourselves every and piece just put do we December our can rents unobtainable, things And they're we a packages, and on scorecard, not with on paper, same achieve, both what our achieving that. concession we we timing

news come the plan. are for where the coming of we're good The nose executing to So in. expected is the on right we cost them the development in

to rooftop In scope improved fact, we at more did like increased One include a we we bit dramatic a Madison.

way, And venue down one area real be think the at going to that I in forward. for icons One and space by of rooftop going it's Madison spectacular, the is the

And the hand, one value. so on the you pick up time

On dead hand, the we're our numbers. other on

we would premium the I And to So where some expect news. transacted. that's good be there'll

Operator

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

Steve Sakwa

Park, back of as seeing of the I the to just asset? much of Park, there. demand that foot hasn't made lot maybe One Madison? you're X.X filled up a Madison kind had leased holding on been pipeline But Vanderbilt what's you that within One know is And leasing XXX traction, or up that Steve, the you at maybe kind speak million Mark. have side obviously, for guys retail square the maybe office One success You XXX leasing all

Marc Holliday

want just to... I Steve,

Steve Sakwa

No, stop. no, don't

Marc Holliday

Steve, I it. got

all, somebody guy. First restrained of this

doesn't quite or Steve statement all, I leased that's budget, we're on until, something. a leased, over open Sakwa, economically right right XX% XX% our think, that of given really building numbers our on budget, the like which -- November was original Second a pre-COVID and even

XXX% is to [ we chance or The leased. on building words retail no dead or behind X/X tower mean XXX% leased is in I are, whatever podium not the numbers. ] friend. the or anything, that, schedule like that we or the say I think, building and you is So something leased, my leasing it use leased that is

the fine, asset we notion That's talk challenger but status. any leasing about in underperformance of So that any no could on way. no

down Now calmed Steve bit can he's Durels, a he so go.

Steven Durels

when boss you good your says that Steve back way. is

Steve Sakwa

project. I'm the passionate glad about he's

Steven Durels

We building the building you just XX% I an Well, top the the FanDuel. with expansion have to think Mark, is the It's leased. tower is of leased. highlights. all portion The -- floor signed fully

have houses, floor before the in share there's opposed the doubt, actively Midtown floor the in brokerage of in market. done Those are as that have come large the that everybody positioned, exceeded now read the are back Without as our they the the we that X tour matter very remaining than we transacting the in foot some great market right the are large -- a have is are we the no Midtown fair have South of a is those large project. success. last in the more loves tenants there market of a and we'll So podium underwrite the through South It's in floor. What building square we've building our market. South dearth tenants plates. And rents large deals of Midtown of floors And X sort building. just challenge tenants been it XX,XXX into where in and to for available they X of floors The building reports the the in do building Midtown what best Midtown it's time large now you've submarket, well when plates. doubt,

Steve Sakwa

Vanderbilt? I of any One part marketed something that XXXX. then was And share? stake the there know you update curious and if update any plan can your that on potential just there's for Okay. actively is was in I'm

Marc Holliday

globally thing throughout no and we to Yes, the it through talk von tourist Award and It's sure. average to Jamie as XXXX, investors prestigious $XX by Michelin first globally, leased. The want restaurant. in And the outperform standard comparable last for for Star work second of nationally at foot We set a month, the excess what the it continues market, One I recognized Vanderbilt National locked matter is fully the KPF really in a just their think factors. SUMMIT to continues continues bunch horizon estimation, are recognition destination. Vanderbilt. the added of to sub-X%. my embedded debt just and team AIA is to world, One our meeting at receive have Architecturally, building. we Klemperer I was received, like Architecture the growth, a the as which scarcity rent in really, look the supply on no and due demonstrating of about

project right this location, anchors of time, construction Sourcing up lead long commitments. the some for comparable of affordable signed big needed any recently lack financing, to

I have these Citadel. Blackstone, for One Vanderbilt. create Bloomberg think all really factors think a that I you of and And moat

wants And everyone news most at reasons, think course, call And really quarter-by-quarter. quarter. the have working but investors. right very all investor and speed, on I we so and do for and share this on important not documents, these on right I With later of know the is expect are transaction appetite offers I strong terms from looking this it investor multiple we to said, that

Operator

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

Jing Xian Tan

transaction this It the starting open like seems year. up to market financing and is

talk lease-up you can So City? for are underwriting investors and York returns office time more in lines how broadly, New to

Marc Holliday

question? the repeating So just you mind -- do repeat

Jing Xian Tan

for more office if buildings? are at underwriting looking you the when that on provide could investors Just color wondering looking

Marc Holliday

Look.. Yes.

Jing Xian Tan

yields? line time The

Matthew Diliberto

assets. of we've in fundamental market. or for our the think, deals be we're generalize the the say real head Investors, investing at XXX Yes, isn't specific for fundamentals on through lot The deals, investors Park. the at on point. we can't assets, the whether underwrite types this a about question whether sheet. the side said, I downtime, of fund it their or you of lot always concessions talked again, be deals to very types about it balance even easily fund or the the rents, have are would looking wrapping through But ability for in as a of confidence our estate of right I We own they around today. There

underwrite and said, presented our XXX,XXX just leasing of that ago, is we're that on to Mark As months. in over a we dead year the square partner XX feet

lot we're investor a we of to not the -- just reason as lack of With there's seeing liquidity is is head significant transactions, transaction really the those we're around and is in their capital us driving ability to fundamentals. investors the market, trying liquidity. But where come there's will of liquidity lot efforts be of we're from a are lot their to that a them the still launch because putting to that is seeing overall right for there of said the really source what around today. want wrap of investor number fund is that investors the now, reason to in So debt head not wrap the respect significant activity to the debt And markets.

Jing Xian Tan

have those assignments when special to the have your side? in take who Okay. more? to engage on they company understand How asset to much more on the you benefit follow the servicing for started teams And capacity kind of your do curious involvement only recently, for have

Marc Holliday

special asset really us and Look, is exponentially an management servicing Yes. for growing opportunity.

Loan run by as we opportunities whether would $X were on a Services just services $X special at billion and side. entity the And to servicing for Right come that have management continue We Andrew subsidiary to Falk. asset capital side or be Green real providers the special of us another and servicer, servicing billion which I look special active future $X billion named have servicing for special about now, -- asset business. management over estate

grow the coming quarters. exponentially I pretty that In over expect addition to to that,

not And all shortly I going of And have earlier, land as to Those opportunities, billion over are entirely of right Matt all a figures alluded continue the to goes We if additional I not pipeline to New very almost most, grow. would to to line. now $X that of those. expect York. think in bottom right

big So ours. that's a of focus

we're on I and have question, resources opportunities new to your continue terms team staff, the the if go I line. to additional staff if part of again, constantly to the take But not to firm. it. bottom expect on his right was think we the the would need But of revenues In Andrew within use to second most, which people monitoring and ability all,

Jing Xian Tan

designated to that factored so the is guidance the of $X night? you timing And provided updated billion into clarify, you're as last that

Matthew Diliberto

billion $X guidance not we all last into factored got The the night. is

Operator

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

Blaine Heck

much much been Rent reflection characterize to you mix growth a lower just whether rent a really this of you level kind try guys on kind increased to rents a issue more spreads Can quarter. level be for that mid-teens how could is a signed more that guys quarter of recently, quarter get leases nicely kind this trying expirations at you or might of really how on sustainable? of versus have think that that just and have seen is of this seen of market blip of the you

Matthew Diliberto

X.X% the Yes. The the out first a the to the for do question is when and mix to I correlate the quarter full our put down you positive mean, guidance going place. and to year. in we activity over how bounce all quarter X% mark-to-market then first reported people quarterly

to a So yes, good had date, we quarter.

to strong second, relatively just do be the quarter, periods. those the quarter on expected of We expected we mix leases third that based in to

of on hit back read now. our thus the I function do the trajectory that, that year. or of far. movement what wouldn't think targets. mix you a can to like the into happens anything too market Volume, yes, mark-to-market be a basis year That but we're half achieved much that But will still a I we've for on full

Blaine Heck

question. second Great. That's you helpful. provide? And bid update casino just can Any on that the then

Marc Holliday

mean, if casino you're is be of stage of anything -- calling expedite of there I timing, asking We the produced in out the for terms are want now getting of stage. We, the don't drag as see the to course, in the CAC strong York will underway. And billions decision of to in trades to get that by that advocates about on then think of the process tens operating no, of the No, fees. there's undoubtedly jobs number hyper of state and -- the they're forming taxation think reasons lot I built, hopefully of there's on there's think what formed there's in excellent which out significant really industry the indefinitely, by of impactful to I and process casino X everything newly hopefully, what addition, for upfront dollars licenses in be local past think the beneficiary And paying, upfront governor the because good I submissions to will will to that's not the right construction aggregate there's expediting. the moneys extraordinary the process, whether also because is of after front not first that a construction City just order a X of the the jobs, but be be New certainly of in number benefit license stands X, licenses. reasons jobs from will front the

operations. gaming earned to be taxes And the will that significant then by be the obviously, projected ongoing

So a ready. lot We're to certainly good of expedite. reasons

our is There's have no building. built. We building or issues displacement really issues. interruption The

and coalition bid the that of all outward be when a that Rewards have working the which also who Square great solicit Caesars a of and in the of the like as casino into supporters hundreds we're uplift comes city Times because things to We whole Caesars will Square benefit entertainment. to Palace way hotels bid with the Times fact retail, restaurants, from will facing really will it all

think most It's development, in of community can of New City. economic one I like the York compelling projects development

So I to when ready. and decision called up will for process said, get in will bids like still see we're there's the With a to they to the we'd Albany be be as think pending that when exactly hopeful prevail, going. that and

Operator

question Paolone from next the Our Anthony line JPMorgan. of of comes

Anthony Paolone

I'd like you able mentioned, and to sheet go market to and partners lack back you of to the the are transaction the have balance But as get out there. that. been debt understand

something unlevered all mean, to to find attractive? I on levered IRRs So to out assets do put what that have you there would and for be capital you

Marc Holliday

-- and -- there's Attractive be debt I unlevered we intend doing preferred. for type Obviously, lot to for of in of lot kind got a which a -- has of to what mean everything of order -- we're well, -- business doing

every in in product teens the fee-based pipeline, about own for very -- which that of safe that is subordinate I talked I different teens light. activity, all other anywhere think it's capital of fund. And which low the that's good on teens average spread. saying it's because or very think well, spoke range the intended intended high the a for market most think as of, I extrapolate credit, of of its is returns, Harry for is asset, is terms the past growing lending, in low -- so the I deal nuances. But about that the from talked you -- hard all teens in I those feel of think high we've on obviously, can location, to type to And activity type from the to depending

some expansion some are the the So but having business, that towards out high-margin is and dollars and years relatively a for business. The platform brand. high-margin capital positions, we'll spent be resources, that's SUMMIT very strong. extremely And cases, with which building very building of returns committing in there additional years return a is in a taking some

physical and to strength right design on We're roll programming therefore, higher design office first we're really of acquisitions, intend to new we so be Third construction out. headway activity. being residential, we're that our property a as XXXX. at in because conversion of our XXX intending We're the early see in sometime development. that in We've team. development residential the are return We it's doing now retained of making that the that terms building. professionals focused in a being program already and we of to looking in market. And And And conversion,

is I to real you to to will, like be something it's a returns high-teens vintage building if And mid- will will that sort the of think think it's destination. standard, in -- that what could to more a route one able and do I affordable return. very which residential, the for compelling really good on order that's Midtown set for of And think I just that be in going attractive of levered be these something going affordable be vogue of we're produce project. XXX project to housing conversions a be the and to of office terms I in city in levered. And that's, it's because units than going days, or think, the very

generate balance go being to capitalization on working with. we this We'll throughout at And can able to we time, the be that we'll same returns that debt year. and be able attract of the forward equity capital that think

So to at we those in could light what think I would investor probably and December, meeting, prototypical those returns more returns. shed exactly be like, look will

Anthony Paolone

guidance Investor for a my right, then think second just for this maybe million at I notes And just Matt. and Matt, the detailed year million, I other was, the I income for are got question, Okay. my I if Day, if one included think right. think, it $XX.X SUMMIT, for $XX.X

just And wondering guidance because might number was there? changed part of what like so be that new it the sounds bump

Matthew Diliberto

of rest I'd increased a that Well, little is of the income. $X.XX, guidance is part by half in We No. was NOI. say income. fee guidance The other SUMMIT bump

or roughly is income. $X.X $X.XX so. That's the incremental that's So million fee

servicing there's to we're of levels the year. slightly ahead head on into far think we anticipated And of exactly we'll do special than depending potential trending as be, assignments income out that our But maybe the we see ahead. running the other play balance overall. But how levels to that, where expect next better similar to I not year. we're So over expected

Anthony Paolone

Okay.

that make about a rest little to core? ahead, $X.XX, from income running just the $X.XX got from right, the other from sure SUMMIT and $X.XX So I the

Matthew Diliberto

Correct.

Operator

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

Michael Griffin

and I earlier wanted think in mentioned call to minute. touch the leasing back for a on I go you Steve, that.

then mentioned like in as well. the that lower Avenue particularly we're those floors, you effective wouldn't the to face in is bottom Some lot particularly expect those from seen if any net properties strong a it submarket? concessions is given not been of tower come place you've if to believe of as led demand level, I'm it's increasing, you have floors? in Park rents, greater market change rents the that kind of been And but as seems curious vacancy you're leasing seeing

Steven Durels

being vacancy the to the referred was to towards I in buildings, I the heavily market. overall -- bottom speaking when Well, the weighted the of

So up that have sector. what you're than really was that not in Avenue a has Class buildings mean less of Park limited the as X%. A that's asking. I vacancy overall, Park all ended to Avenue current

quality Park, rents far our at those submarket, as tenant Park why XXX top Park, in whether Park Avenue the those So a that is see don't at Park. are Avenue demand the us let spaces I buildings building. raise favorable landlord is up any located And XXX bottom or which you've at buildings on of XXX as for of the seen irrespective

right Concession rents change. just wise, as I tightened spoke haven't any now. -- a as to I'm There's to I earlier, to ability concessions. push seen believer an that I of opposed

heavily form tenants in landlords TI think But to a build-out With thing why sort will the rent. free are But of they reeled will off passage expect while the cover first for get cost come the concessions you'll is be see allowances being table get time, on I the of the of. tenants still very it expensive. in and little That's the some of bit. the

Michael Griffin

you, plan, kind where as maintain issuing sense. one, equity arrow on plan trading, of Or just for capital makes laid outlook think currently for equity Day? capital And That is the the given maybe Matt, you Great. to in I could look kind an quiver? maybe out the your at is your then needs the Investor of at

Matthew Diliberto

sheet course it's play good in to over us. of case for in -- analogy a an we the quiver of like our balance of any 'XX. the -- place. public is we're that out need beauty company the plan, available on being see equity The I is base the We don't to arrow our because part the as

plan the we Our out liquidity playing expected. laid in in that is where December is place, as good out

saw opportunity might top I to if liquidities we we see opportunities. where an additional up investment think

it like So eyes -- that's source expensive. the out keep always at really still for it as to stuff we'll that. keep take would we a But because look us is relatively for what equity

Operator

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

Ronald Kamdem

Great.

same-store the on just me NOI. for one quick one Just

big about the in comparing you're Day second sort acceleration of trending the guidance suggests of at there's of where thinking half to Just Investor year. and year-to-date, the that a sort the

X% Just half? half the sort takes we're second sort about of in am store right going And second and same the could XXXX? X%, thinking I be thinking into and the about that that any of puts as

Matthew Diliberto

Yes.

clarify to Let's can so sitting needs and he that, him, to. next he if I'm reach me

be we to So would said same-store of objectives tongue for me, X% NOI in our X% A next CEO cheek goals certain was that to up down X%. guidance and for X%. to kind

Now we year. the first are of half trending ahead

that's So good.

to we it to outstanding. But opposed to our be -- trending a bit think be little today, see love goal would closer original guidance sit to as as we're the to reach I I'd objective. the

Marc Holliday

as are those we're Look, of to. tracking We all. for many that can. like the year, is all many to well I midway although look believe in levels. When through of hit objectives them, goals and an should hit ambitious most goals. all But target on we'd the stretch them having goal I them, on those year, at And a the we as we, Yes. never of target nor is not certainly, really

the here shoot of I'm as the the that we This hit a try as squeeze do, But we hit it's down try and But bottom other, we without end in half X% our it's of can it is we that these to scenario be December. thing in it a X% not have the of is a market XXX second to year. way scenario vast year or to And goal. how and was the see out the and try been much X% said sacrificing of those early much where we're we And expenses and let's going goal. the one going but important tough. goals. that push second dozens, we're half a all up, to going majority may the actually. And in where year, may the be shapes I one this pretty to still range order we and make be to can and X% half we too lights was to can dozens push. There in particular second on -- that confident do could a range. leases with half There as or second say line probably But year on any the big -- of quality to in as we over said the going to

Ronald Kamdem

interest your of from building buyers, demand Are line? those conviction a of my Vanderbilt in be have helpful. JVs then about getting XXX there lot conviction? would through one redevelopment you to Maybe finish just guys buyers second local what level of of sort deals Great. your was One is been do U.S. just international the of could talk And right and X Just comments a you've you from looking where lot or the sort Herald properties any there you Park, Square.

Marc Holliday

for strong. It Yes. investors in very news our the demand to today heavily us plan the in and as our attractive for cases, many those all believe is across extend to investors the of we earlier. own working foreign -- good assets on that more today, the the buyers what makes assets you is, I There's assets we're hits from invest. assets. Look, know, debt And fundamentals said through

the next So our in see there's joint of over the real market new from of and fundamentals belief estate, the a lot years. foreign continue to ventures we'll few

Operator

now for session. question-and-answer back remarks. Marc I the closing to concludes like This to Holliday turn would it

Marc Holliday

you we'll constructive We'll participating We Okay. summer, in. QX. on, heart. you. have in Thank great questions. again Well, to a the take We thank love feedback. like We Everyone, and it. for listening speak it appreciate and the those still for

Operator

Thank This the conclude program. for in you your does conference. participation today's

You may disconnect. now

SL Green Realty (SLG) 18 Jul 242024 Q2 Earnings call transcript