SL Green Realty Corp. Reports Fourth Quarter and Full Year 2012 FFO of $1.16 and $5.35 Per Share before Transaction Costs and
SL Green Realty Corp. Reports Fourth Quarter and Full Year 2012 FFO of $1.16
and $5.35 Per Share before Transaction Costs and EPS of $0.22 and $1.74 Per
Share
Business Wire
NEW YORK -- January 30, 2013
SL Green Realty Corp. (NYSE: SLG):
Financial and Operating Highlights
* Fourth quarter FFO of $1.16 per diluted share before transaction related
costs of $0.02 per diluted share compared to prior year FFO of $1.04 per
diluted share before transaction related costs of $0.02 per diluted share.
Full year FFO of $5.35 per diluted share before transaction related costs
of $0.07 per diluted share compared to prior year FFO of $4.88 per diluted
share before transaction related costs of $0.08 per diluted share.
* Fourth quarter net income attributable to common stockholders of $0.22 per
diluted share compared to prior year net income of $0.03 per diluted
share. Full year net income attributable to common stockholders of $1.74
per diluted share compared to prior year net income of $7.33 per diluted
share.
* Combined same-store cash NOI increased 4.6 percent and 4.8 percent for the
fourth quarter and full year, compared to the prior year, an increase of
$6.7 million and $27.6 million, respectively.
* Signed 54 Manhattan office leases totaling 321,622 square feet during the
fourth quarter. The mark-to-market on office leases signed in Manhattan
was 4.2 percent higher in the fourth quarter than the previously fully
escalated rents on the same office spaces.
* Year-end occupancy of 93.8 percent in Manhattan same-store properties
compared to 93.0 percent at year-end 2011 and 93.3 percent at September
30, 2012.
* Signed 25 Suburban office leases totaling 109,410 square feet during the
fourth quarter. The mark-to-market on office leases signed in the Suburban
portfolio was 6.4 percent lower in the fourth quarter than the previously
fully escalated rents on the same office spaces.
* Year-end occupancy of 81.3 percent in the Suburban portfolio compared to
82.6 percent at year-end 2011 and 81.5 percent at September 30, 2012.
Investing Highlights
* Extended the ground lease at 673 First Avenue by 50 years to August 2087,
significantly enhancing the value of the asset.
* Formed a joint venture which entered into a 99-year triple net ground
lease on 1080 Amsterdam Avenue, Manhattan. The 82,250 square foot building
comprising 96 units will be redeveloped into a luxury residential
building.
* Sold a 49.5 percent interest in 521 Fifth Avenue at a gross sales price of
$315.0 million. Simultaneous with the sale, refinanced the property with a
new $170.0 million mortgage.
* Acquired the 68,342 square foot retail property anchored by Burberry and
Diesel at 131-137 Spring Street in Manhattan’s popular SoHo neighborhood,
for total consideration of $122.3 million.
* Acquired a 35.5 percent interest in the 147,619 square foot office
property at 315 West 36th Street at a gross purchase price of $45.0
million. The acquisition was financed with a $25.0 million mortgage.
* Subsequent to the end of the year, sold a 50 percent interest in a
mezzanine loan secured by a New York City office property generating $57.8
million of proceeds, inclusive of $12.9 million of income.
Financing Highlights
* Issued $200.0 million aggregate principal amount of 4.50 percent senior
notes due December 1, 2022, generating $198.2 million in net proceeds for
the Company.
* Refinanced the Company’s credit facility with a new, lower cost, 5-year
$1.2 billion revolving line of credit and a $400 million term loan.
* Repurchased $22.7 million of the outstanding 5.875 percent notes due 2014
and $19.7 million of the outstanding 6.00 percent notes due 2016, pursuant
to a tender offer, resulting in a charge of $3.9 million in the fourth
quarter.
* Added 673 First Avenue, 110 East 42nd Street and 609 Fifth Avenue to the
unencumbered asset pool, resulting in a charge of $3.1 million in the
fourth quarter.
* Increased the quarterly common stock dividend by 32 percent to $0.33 per
share.
Summary
SL Green Realty Corp. (NYSE: SLG) today reported funds from operations, or
FFO, of $107.2 million, or $1.14 per diluted share, for the quarter ended
December 31, 2012, compared to $90.3 million, or $1.02 per diluted share, for
the same quarter in 2011. The Company also reported funds from operations, or
FFO, of $490.3 million, or $5.28 per diluted share, for the year ended
December 31, 2012, compared to $413.8 million, or $4.80 per diluted share, for
the year ended December 31, 2011.
Net income attributable to common stockholders totaled $20.0 million, or $0.22
per diluted share, for the quarter ended December 31, 2012, compared to $2.8
million, or $0.03 per diluted share, for the same quarter in 2011. Full year
net income attributable to common stockholders totaled $156.0 million, or
$1.74 per diluted share, for the year ended December 31, 2012, compared to
$617.2 million, or $7.33 per diluted share, for the year ended December 31,
2011.
Operating and Leasing Activity
For the fourth quarter of 2012, the Company reported revenues and operating
income of $350.7 million and $180.2 million, respectively, compared to $328.9
million and $167.5 million, respectively, for the same period in 2011. For the
year ended December 31, 2012, the Company reported revenues and operating
income of $1.4 billion and $834.0 million, respectively, compared to $1.3
billion and $702.4 million, respectively, for the same period in 2011.
Same-store cash NOI on a combined basis increased by 3.8 percent to $173.6
million for the quarter ended December 31, 2012 as compared to the same period
in 2011, after giving consideration to 1515 Broadway as a consolidated
property and 521 Fifth Avenue as an unconsolidated joint venture. After giving
effect to these same adjustments, consolidated property same-store NOI
increased by 3.8 percent to $147.7 million and unconsolidated joint venture
property same-store NOI increased 3.4 percent to $25.9 million.
Same-store cash NOI on a combined basis increased by 4.8 percent to $684.2
million for the year ended December 31, 2012 as compared to the same period in
2011, after giving consideration to 1515 Broadway as a consolidated property
and 521 Fifth Avenue as an unconsolidated joint venture. After giving effect
to these same adjustments, consolidated property same-store cash NOI increased
by 4.7 percent to $580.9 million and unconsolidated joint venture property
same-store cash NOI increased 4.9 percent to $103.4 million.
Occupancy for the Company’s stabilized, same-store Manhattan portfolio at
December 31, 2012 was 93.8 percent compared to 93.0 percent at December 31,
2011 and 93.3 percent at September 30, 2012.
During the quarter, the Company signed 54 office leases in its Manhattan
portfolio totaling 321,622 square feet. Fourteen leases totaling 131,746
square feet represented office leases that replaced previous vacancy, and 40
office leases comprising 189,876 square feet had average starting rents of
$57.99 per rentable square foot, representing a 4.2 percent increase over the
previously fully escalated rents on the same office spaces. The average lease
term on the Manhattan office leases signed in the fourth quarter was 8.3 years
and average tenant concessions were 4.4 months of free rent with a tenant
improvement allowance of $36.96 per rentable square foot.
During the quarter, 290,108 square feet of office leases commenced in the
Manhattan portfolio, 83,819 square feet of which represented office leases
that replaced previous vacancy, and 206,289 square feet of which represented
office leases that had average starting rents of $56.96 per rentable square
foot, representing a 2.4 percent increase over the previously fully escalated
rents on the same office spaces.
Occupancy for the Company’s Suburban portfolio was 81.3 percent at December
31, 2012, compared to 82.6 percent at December 31, 2011, prior to the sale of
One Court Square in Long Island City, and 81.5 percent at September 30, 2012.
During the quarter, the Company signed 25 office leases in the Suburban
portfolio totaling 109,410 square feet. Eleven leases totaling 30,470 square
feet represented office leases that replaced previous vacancy, and 14 office
leases comprising 78,940 square feet had average starting rents of $31.74 per
rentable square foot, representing a 6.4 percent decrease over the previously
fully escalated rents on the same office spaces. The average lease term on the
Suburban office leases signed in the fourth quarter was 5.2 years and average
tenant concessions were 3.2 months of free rent with a tenant improvement
allowance of $16.48 per rentable square foot.
During the quarter, 140,803 square feet of office leases commenced in the
Suburban portfolio, 32,545 square feet of which represented office leases that
replaced previous vacancy, and 108,258 square feet of which represented office
leases that had average starting rents of $30.04 per rentable square foot,
representing a 7.0 percent decrease over the previously fully escalated rents
on the same office spaces.
Significant leases that were signed during the fourth quarter included:
* New lease on 57,359 square feet with Emerge212 3CC LLC for 15 years at 3
Columbus Circle;
* Early renewal on 44,646 square feet with Seven Eleven Car Park LLC for 10
years at 711 Third Avenue;
* New lease on 38,026 square feet with Robert Half International, Inc. for
11 years at 125 Park Avenue;
* Renewal and expansion on 29,397 square feet with Everest Reinsurance
Company for 10 years at 461 Fifth Avenue;
* New lease on 22,047 square feet with Microsoft Corporation for 10.3 years
at 641 Sixth Avenue; and
* Early renewal on 17,000 square feet with Blaire Corporation for 10.4 years
at 6 Landmark Square, Stamford, CT.
Marketing, general and administrative, or MG&A, expenses for the quarter ended
December 31, 2012 were $21.4 million, or 5.2 percent of total revenues
including the Company’s share of joint venture revenue compared to $18.7
million, or 4.9 percent for the quarter ended December 31, 2011. MG&A expenses
for the fourth quarter of 2012 included contributions totaling $430,000 to
Hurricane Sandy-related charities. MG&A for the year ended December 31, 2012
was $82.8 million, or 5.1 percent of total revenues including the Company’s
share of joint venture revenue compared to $80.1 million, or 5.4 percent for
the year ended December 31, 2011.
Real Estate Investment Activity
In October 2012, the Company extended the ground lease at 673 First Avenue to
August 2087, an additional 50 years past its scheduled 2037 expiration date,
ensuring the Company’s ability to control the property and significantly
enhancing its value.
In October 2012, the Company, formed a joint venture which entered into a
99-year triple net ground lease on 1080 Amsterdam Avenue, Manhattan, an 82,250
square foot, 96 unit residential building. The joint venture intends to embark
on an extensive capital improvement program over the next two years to convert
the property into a luxury Upper West Side residential address.
In November 2012, the Company sold a 49.5 percent interest in 521 Fifth Avenue
at a gross sales price of $315.0 million and refinanced the property with a
new $170.0 million, 7-year mortgage which bears interest at 220 basis points
over the 30-day LIBOR for the first 2 years and at a fixed rate of 3.725
percent thereafter. This transaction generated $84.8 million in proceeds for
the Company and resulted in a gain on sale of $19.4 million.
In December 2012, the Company acquired a 35.5 percent interest in the 147,619
square foot office property at 315 West 36^th Street at a gross purchase price
of $45.0 million. Simultaneously, the Company closed on a $25.0 million 5-year
loan that bears a fixed rate of interest of 3.16 percent.
In December 2012, the Company acquired the 68,342 square foot retail property
anchored by Burberry and Diesel located at 131-137 Spring Street in the
popular SoHo neighborhood of Manhattan for total consideration of $122.3
million. The property includes prime retail space, office space, 6 residential
rental units and 100 feet of ground floor frontage.
Debt and Preferred Equity Investment Activity
The Company’s debt and preferred equity investment portfolio totaled $1.4
billion at December 31, 2012. During the fourth quarter, the Company purchased
and originated new debt and preferred equity investments totaling $291.6
million, all of which are collateralized by New York City commercial office
properties, and recorded $13.0 million of principal reductions from
investments that were sold, repaid or otherwise resolved. The debt and
preferred equity investment portfolio had a weighted average maturity of 2.2
years as of December 31, 2012 and had a weighted average yield during the
quarter ended December 31, 2012 of 9.88 percent.
In January 2013, the Company sold a 50 percent interest in a mezzanine loan
secured by a New York City office property at 97 percent of par value,
generating $57.8 million of proceeds to the Company, inclusive of $12.9
million of income.
Financing and Capital Activity
In November 2012, the Company closed on a new $1.6 billion credit facility,
which refinanced, extended and upsized the Company’s previous $1.5 billion
revolving credit facility that was put in place in November 2011. The new
facility consists of a $1.2 billion revolving line of credit and a $400
million term loan, which currently bear interest at 145 basis points over
LIBOR and 165 basis points over LIBOR, respectively. The facility now has an
extended maturity date of March 2018, inclusive of the Company’s aggregate
one-year as of right extension option on the revolving line of credit.
In November 2012, the Company closed an offering of $200.0 million aggregate
principal amount of 4.50 percent senior notes due December 1, 2022. This
offering generated $198.2 million in net proceeds for the Company.
In December 2012, the Company repurchased $22,680,000 of Reckson’s outstanding
5.875 percent notes due 2014 and $19,692,000 of Reckson’s outstanding 6.00
percent notes due 2016, pursuant to a tender offer, resulting in a charge of
$3.9 million in the fourth quarter.
In the fourth quarter, the Company also added 673 First Avenue, 110 East 42^nd
Street and 609 Fifth Avenue to the unencumbered asset pool, resulting in a
charge of $3.1 million in the fourth quarter.
Dividends
During the fourth quarter of 2012, the Company declared quarterly dividends on
its outstanding common and preferred stock as follows:
* $0.33 per share of common stock, which was paid on January 15, 2013 to
stockholders of record on the close of business on January 2, 2013;
* $0.4766 per share on the Company's Series C Preferred Stock for the period
October 15, 2012 through and including January 14, 2013, which was paid on
January 15, 2013 to stockholders of record on the close of business on
January 2, 2013, and reflects the regular quarterly dividend which is the
equivalent of annualized dividend of $1.9064 per share; and
* $0.40625 per share on the Company's Series I Preferred Stock for the
period October 15, 2012 through and including January 14, 2013, which was
paid on January 15, 2013 to stockholders of record on the close of
business on January 2, 2013, and reflects the regular quarterly dividend
which is the equivalent of annualized dividend of $1.625 per share.
Conference Call and Audio Webcast
The Company's executive management team, led by Marc Holliday, Chief Executive
Officer, will host a conference call and audio webcast on Thursday, January
31, 2013 at 2:00 pm EST to discuss the financial results.
The Supplemental Package will be available prior to the quarterly conference
call on the Company's website, www.slgreen.com, under “Financial Reports” in
the Investors section.
The live conference will be webcast in listen-only mode on the Company's web
site under “Event Calendar & Webcasts” in the Investors section and on
Thomson's StreetEvents Network. The conference may also be accessed by dialing
866.271.0675 Domestic or 617.213.8892 International, using pass-code “SL
Green.”
A replay of the call will be available through February 7, 2013 by dialing
888.286.8010 Domestic or 617.801.6888 International, using pass-code 66429574.
Company Profile
SL Green Realty Corp., New York City's largest office landlord, is the only
fully integrated real estate investment trust, or REIT, that is focused
primarily on acquiring, managing and maximizing value of Manhattan commercial
properties. As of December 31, 2012, SL Green owned interests in 85 Manhattan
properties totaling 40.8 million square feet. This included ownership
interests in 27.8 million square feet of commercial properties and debt and
preferred equity investments secured by 13.0 million square feet of
properties. In addition to its Manhattan investments, SL Green holds ownership
interests in 31 suburban assets totaling 5.4 million square feet in Brooklyn,
Long Island, Westchester County, Connecticut and New Jersey, along with four
development properties in the suburbs encompassing approximately 0.5 million
square feet. The Company also has ownership interests in 31 properties
totaling 4.5 million square feet in southern California.
To be added to the Company's distribution list or to obtain the latest news
releases and other Company information, please visit our website at
www.slgreen.com or contact Investor Relations at 212.594.2700.
Disclaimers
Non-GAAP Financial Measures
During the quarterly conference call, the Company may discuss non-GAAP
financial measures as defined by SEC Regulation G. In addition, the Company
has used non-GAAP financial measures in this press release. A reconciliation
of each non-GAAP financial measure and the comparable GAAP financial measure
can be found on pages 11 and 12 of this release and in the Company’s
Supplemental Package.
Forward-looking Statement
This press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this press release are
forward-looking statements. All forward-looking statements speak only as of
the date of this press release. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance, achievements or transactions of the Company to be
materially different from any future results, performance, achievements or
transactions expressed or implied by such forward-looking statements. Such
risks, uncertainties and other factors relate to, among others, the strength
of the commercial office real estate markets in the New York Metropolitan
area, reduced demand for office space, unanticipated increases in financing
and other costs, competitive market conditions, unanticipated administrative
costs, divergent interests from or the financial condition of our joint
venture partners, timing of leasing income, general and local economic
conditions, interest rates, capital market conditions, tenant bankruptcies and
defaults, the availability and cost of comprehensive insurance, including
coverage for terrorist acts, environmental, regulatory and/or safety
requirements, and other factors, all of which are beyond the Company's
control. Additional information or factors that could affect the Company and
the forward-looking statements contained herein are included in the Company's
filings with the Securities and Exchange Commission. The Company assumes no
obligation to update or supplement forward-looking statements that become
untrue because of subsequent events.
SL GREEN REALTY CORP.
CONSOLIDATED STATEMENTS OF INCOME-UNAUDITED
(Amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Revenues:
Rental $ 268,067 $ 253,343 $ 1,077,976 $ 961,935
revenue, net
Escalation and 41,362 41,152 167,388 145,596
reimbursement
Investment and
preferred 31,500 22,162 119,155 120,418
equity income
Other income 9,805 12,222 35,736 35,479
Total revenues 350,734 328,879 1,400,255 1,263,428
Expenses:
Operating
expenses
(including
approximately
$5,187 and
$18,101 (2012) 72,198 71,916 298,322 263,709
and $5,252 and
$16,266 (2011)
paid to
related
parties)
Real estate 52,874 45,497 210,467 174,454
taxes
Ground rent 11,296 8,810 37,866 32,919
Interest
expense, net 82,277 78,876 330,569 285,917
of interest
income
Amortization
of deferred 7,824 4,649 19,450 14,118
financing
costs
Depreciation
and 93,765 74,951 332,028 277,345
amortization
Loan loss and
other
investment --- 8,592 564 6,722
reserves, net
of recoveries
Transaction 1,227 1,741 5,625 5,561
related costs
Marketing,
general and 21,372 18,728 82,840 80,103
administrative
Total expenses 342,833 313,760 1,317,731 1,140,848
Income from
continuing
operations
before equity
in net income
of
unconsolidated 7,901 15,119 82,524 122,580
joint
ventures,
noncontrolling
interests and
discontinued
operations
Equity in net
income (loss)
from (4,570 ) (6,080 ) 76,418 1,583
unconsolidated
joint ventures
Equity in net
gain (loss) on
sale of
interest in 19,277 (114 ) 37,053 2,918
unconsolidated
joint venture/
real estate
Purchase price
fair value --- 8,306 --- 498,195
adjustment
Gain (loss) on
investment in 2,703 4,999 4,940 4,866
marketable
securities
Depreciable
real estate --- (5,789 ) --- (5,789 )
reserves
Gain (loss) on
early (6,978 ) --- (6,978 ) 904
extinguishment
of debt
Income from
continuing 18,333 16,441 193,957 625,257
operations
Net income
from 9,127 1,115 9,116 5,780
discontinued
operations
Gain on sale
of --- --- 6,627 46,085
discontinued
operations
Net income 27,460 17,556 209,700 677,122
Net income
attributable
to
noncontrolling (721 ) (683 ) (5,597 ) (14,629 )
interests in
the operating
partnership
Preferred unit (574 ) --- (2,107 ) ---
distributions
Net (income)
loss
attributable
to 1,202 (6,519 ) (5,591 ) (15,083 )
noncontrolling
interests in
other
partnerships
Net income
attributable 27,367 10,354 196,405 647,410
to SL Green
Preferred
stock --- --- (10,010 ) ---
redemption
costs
Preferred
stock (7,407 ) (7,545 ) (30,411 ) (30,178 )
dividends
Net income
attributable
to SL Green $ 19,960 $ 2,809 $ 155,984 $ 617,232
common
stockholders
Earnings Per
Share (EPS)
Net income per $ 0.22 $ 0.03 $ 1.75 $ 7.37
share (Basic)
Net income per
share $ 0.22 $ 0.03 $ 1.74 $ 7.33
(Diluted)
Funds From
Operations
(FFO)
FFO per share $ 1.14 $ 1.02 $ 5.30 $ 4.83
(Basic)
FFO per share $ 1.14 $ 1.02 $ 5.28 $ 4.80
(Diluted)
Basic
ownership
interest
Weighted
average REIT
common shares 90,481 86,020 89,319 83,762
for net income
per share
Weighted
average
partnership 3,266 2,306 3,207 1,985
units held by
noncontrolling
interests
Basic weighted
average shares
and units 93,747 88,326 92,526 85,747
outstanding
for FFO per
share
Diluted
ownership
interest
Weighted
average REIT
common share 90,745 86,438 89,666 84,259
and common
share
equivalents
Weighted
average
partnership 3,266 2,306 3,207 1,985
units held by
noncontrolling
interests
Diluted
weighted
average shares 94,011 88,744 92,873 86,244
and units
outstanding
SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
December 31, December 31,
2012 2011
Assets (Unaudited)
Commercial real estate
properties, at cost:
Land and land interests $ 2,886,099 $ 2,684,626
Buildings and improvements 7,389,766 7,147,527
Building leasehold and 1,346,748 1,302,790
improvements
Properties under capital lease 40,340 12,208
11,662,953 11,147,151
Less accumulated depreciation (1,393,323 ) (1,136,603 )
10,269,630 10,010,548
Assets held for sale 4,901 76,562
Cash and cash equivalents 189,984 138,192
Restricted cash 136,071 86,584
Investment in marketable 21,429 25,323
securities
Tenant and other receivables,
net of allowance of $21,652 and 48,544 32,107
$16,772 in 2012 and 2011,
respectively
Related party receivables 7,531 4,001
Deferred rents receivable, net
of allowance of $29,580 and 340,747 281,974
$29,156 in 2012 and 2011,
respectively
Debt and preferred equity
investments, net of discount of
$13,572 and $24,996 and 1,357,203 985,942
allowance of $7,000 and $50,175
in 2012 and 2011, respectively
Investments in and advances to 1,032,243 893,933
unconsolidated joint ventures
Deferred costs, net 261,145 210,786
Other assets 718,326 737,900
Total assets $ 14,387,754 $ 13,483,852
Liabilities
Mortgages and other loans $ 4,615,464 $ 4,314,741
payable
Revolving credit facility 70,000 350,000
Term loan and senior unsecured 1,734,956 1,270,656
notes
Accrued interest and other 73,769 126,135
liabilities
Accounts payable and accrued 159,598 142,428
expenses
Deferred revenue/gain 321,764 357,193
Capitalized lease obligation 37,518 17,112
Deferred land lease payable 20,897 18,495
Dividend and distributions 37,839 28,398
payable
Security deposits 46,253 46,367
Liabilities related to assets 136 61,988
held for sale
Junior subordinate deferrable
interest debentures held by
100,000 100,000
trusts that issued trust
preferred securities
Total liabilities 7,218,194 6,833,513
Commitments and contingencies --- ---
Noncontrolling interests in the 212,907 195,030
operating partnership
Series G preferred units, $25.00
liquidation preference, 1,902
issued and 47,550 ---
outstanding at December 31, 2012
Series H preferred units, $25.00
liquidation preference, 80
issued and 2,000 2,000
outstanding at December 31, 2012
and 2011, respectively
Equity
SL Green Realty Corp.
stockholders’ equity
7.625% Series C perpetual
preferred shares, $0.01 par
value, $25.00 liquidation
preference, 7,700 and 11,700 180,340 274,022
issued and outstanding at
December 31, 2012 and 2011,
respectively
7.875% Series D perpetual
preferred shares, $0.01 par
value, $25.00 liquidation
preference, none and 4,000 --- 96,321
issued and outstanding at
December 31, 2012 and 2011,
respectively
6.5% Series I perpetual
preferred shares, $0.01 par
value, $25.00 liquidation 221,965 ---
preference, 9,200 issued and
outstanding at December 31, 2012
Common stock, $0.01 par value
160,000 shares authorized,
94,896 and 89,210 issued and
outstanding at December 31, 2012
and 2011, respectively 950 892
(inclusive of 3,646 and 3,427
shares held in Treasury at
December 31, 2012 and 2011,
respectively)
Additional paid-in capital 4,667,900 4,236,959
Treasury stock-at cost (322,858 ) (308,708 )
Accumulated other comprehensive (29,587 ) (28,445 )
loss
Retained earnings 1,701,092 1,704,506
Total SL Green Realty Corp. 6,419,802 5,975,547
stockholders’ equity
Noncontrolling interests in 487,301 477,762
other partnerships
Total equity 6,907,103 6,453,309
Total liabilities and equity $ 14,387,754 $ 13,483,852
SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
FFO
Reconciliation:
Net income
attributable to $ 19,960 $ 2,809 $ 155,984 $ 617,232
common
stockholders
Add:
Depreciation
and 93,765 74,951 332,028 277,345
amortization
Discontinued
operations 21 --- 82 676
depreciation
adjustments
Joint venture
depreciation
and 13,417 8,005 35,593 31,179
noncontrolling
interest
adjustments
Net income
attributable to (481 ) 7,202 11,188 29,712
noncontrolling
interests
Less:
Gain on sale of
discontinued --- --- 6,627 46,085
operations
Equity in net
gain (loss) on
sale of joint 19,277 (114 ) 37,053 2,918
venture
interest
Purchase price
fair value --- 8,306 --- 498,195
adjustment
Depreciable
real estate --- (5,789 ) --- (5,789 )
reserves
Depreciation on
non-rental real 243 255 940 922
estate assets
Funds from 107,162 90,309 490,255 413,813
Operations
Transaction
related 1,533 1,785 6,585 6,734
costs^(1)
Funds from
Operations
before $ 108,695 $ 92,094 $ 496,840 $ 420,547
transaction
related costs
(1) Includes the Company’s share of joint
venture transaction related costs.
SL Green’s share of
Consolidated Properties Unconsolidated Joint Combined
Ventures
Three Months Ended Three Months Ended Three Months Ended
December 31, December 31, December 31,
Operating income and
Same-store NOI 2012 2011 2012 2011 2012 2011
Reconciliation:
Income from
continuing operations
before equity in net
income of
unconsolidated joint $ 7,901 $ 15,119 $ $
ventures,
noncontrolling
interests and
discontinued
operations
Equity in net income
(loss) from joint (4,570 ) (6,080 ) (4,570 ) (6,080 )
ventures
Depreciation and 93,765 74,951 21,911 15,031
amortization
Interest expense, net 82,277 78,876 21,540 26,702
of interest income
Amortization of
deferred financing 7,824 4,649 1,104 1,095
costs
Gain (loss) on early
extinguishment of (6,978 ) --- --- ---
debt
Operating income $ 180,219 $ 167,515 $ 39,985 $ 36,748
Marketing, general &
administrative 21,372 18,728 --- ---
expense
Net operating income
from discontinued 116 1,945 --- ---
operations
Loan loss and other
investment reserves, --- 8,592 --- ---
net of recoveries
Transaction related 1,227 1,741 306 44
costs
Non-building revenue (36,306 ) (28,560 ) (3,687 ) (6,608 )
Equity in net
(income) loss from 4,570 6,080 --- ---
joint ventures
(Gain) loss on early
extinguishment of 6,978 --- --- ---
debt $ $
Net operating income 178,176 176,041 36,604 30,184 214,780 206,225
( NOI)
Net operating income
from discontinued (116 ) (1,945 ) --- --- (116 ) (1,945 )
operations
NOI from other (16,000 ) (8,506 ) (8,471 ) (3,422 ) (24,471 ) (11,928 )
properties/affiliates
Same-Store NOI $ 162,060 $ 165,590 $ 28,133 $ 26,762 $ 190,193 $ 192,352
Ground lease
straight-line 2,186 44 --- --- 2,186 44
adjustment
Straight-line and (12,659 ) (19,204 ) (1,582 ) (1,408 ) (14,241 ) (20,612 )
free rent
Rental income – FAS (3,900 ) (4,206 ) (658 ) (320 ) (4,558 ) (4,526 )
141
Same-store cash NOI $ 147,687 $ 142,224 $ 25,893 $ 25,034 $ 173,580 $ 167,258
SL Green’s share of
Consolidated Properties Unconsolidated Joint Combined
Ventures
Twelve Months Ended Twelve Months Ended Twelve Months Ended
December 31, December 31, December 31,
Operating income and
Same-store NOI 2012 2011 2012 2011 2012 2011
Reconciliation:
Income from
continuing operations
before equity in net
income of
unconsolidated joint $ 82,524 $ 122,580 $ --- $ ---
ventures,
noncontrolling
interests and
discontinued
operations
Equity in net income
(loss) from joint 76,418 1,583 76,418 1,583
ventures
Depreciation and 332,028 277,345 69,116 58,598
amortization
Interest expense, net 330,569 285,917 86,268 88,546
of interest income
Amortization of
deferred financing 19,450 14,118 3,859 4,996
costs
Gain (loss) on early
extinguishment of (6,978 ) 904 --- ---
debt
Operating income $ 834,011 $ 702,447 $ 235,661 $ 153,723
Marketing, general &
administrative 82,840 80,103 --- ---
expense
Net operating income
from discontinued 1,385 10,878 --- ---
operations
Loan loss and other
investment reserves, 564 6,722 --- ---
net of recoveries
Transaction related 5,625 5,561 960 1,173
costs
Non-building revenue (134,392 ) (135,987 ) (93,144 ) (12,346 )
Equity in net income (76,418 ) (1,583 ) --- ---
from joint ventures
(Gain) loss on early
extinguishment of 6,978 (904 ) (10,711 ) ---
debt $ $
Net operating income 720,593 667,237 132,766 142,550 853,359 809,787
( NOI)
Net operating income
from discontinued (1,385 ) (10,878 ) --- --- (1,385 ) (10,878 )
operations
NOI from other (69,006 ) (1,514 ) (23,150 ) (36,641 ) (92,156 ) (38,155 )
properties/affiliates
Same-Store NOI $ 650,202 $ 654,845 $ 109,616 $ 105,909 $ 759,818 $ 760,754
Ground lease
straight-line 2,702 440 --- (9 ) 2,702 431
adjustment
Straight-line and (54,686 ) (79,496 ) (4,217 ) (6,219 ) (58,903 ) (85,715 )
free rent
Rental income – FAS (17,365 ) (21,201 ) (2,030 ) (1,172 ) (19,395 ) (22,373 )
141
Same-store cash NOI $ 580,853 $ 554,588 $ 103,369 $ 98,509 $ 684,222 $ 653,097
SL GREEN REALTY CORP.
SELECTED OPERATING DATA-UNAUDITED
December 31,
2012 2011
Manhattan Operating Data: ^(1)
Net rentable area at end of period 24,282 24,622
(in 000’s)
Portfolio percentage leased at end 94.1 % 92.5 %
of period
Same-Store percentage leased at end 93.8 % 94.0 %
of period
Number of properties in operation 36 33
Office square feet where leases 290,108 412,704
commenced during quarter (rentable)
Average mark-to-market 2.4 % 7.6 %
percentage-office
Average starting cash rent per $ 56.96 $ 63.11
rentable square foot-office
^(1) Includes wholly-owned and joint venture
properties.
Contact:
SL Green Realty Corp.
James Mead
Chief Financial Officer
or
Heidi Gillette
Investor Relations
212-594-2700
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