SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported
net income attributable to common stockholders for the quarter
ended September 30, 2021 of $388.2 million, or $5.75 per
share, as compared to net income of $13.9 million, or $0.19 per
share, for the same quarter in 2020. Net income attributable to
common stockholders for the third quarter of 2021 includes $186.5
million, or $2.61 per share, of net gains recognized from the sale
of real estate interests and $208.8 million, or $2.92 per share, of
non-cash fair value adjustments.
The Company also reported net income
attributable to common stockholders for the nine months ended
September 30, 2021 of $486.1 million, or $7.04 per share, as
compared to net income of $185.1 million, or $2.50 per share, for
the same period in 2020. Net income attributable to common
stockholders for the nine months ended September 30, 2021
includes $279.9 million, or $3.83 per share, of net gains
recognized from the sale of real estate interests and $209.5
million, or $2.87 per share, of non-cash fair value adjustments.
Net income for the nine months ended September 30, 2020 included
$163.6 million, or $2.04 per share, of net gains recognized from
the sale of real estate interests.
The Company reported FFO for the quarter ended
September 30, 2021 of $127.0 million, or $1.78 per share, as
compared to FFO for the same period in 2020 of $135.5 million, or
$1.75 per share. FFO for the third quarter of 2021 included $11.4
million, or $0.16 per share, of lease termination income related to
the termination of the WeWork lease at 609 Fifth Avenue. FFO for
the third quarter of 2020 included $20.2 million, or $0.26 per
share, of net proceeds derived from a legal settlement.
The Company also reported FFO for the nine
months ended September 30, 2021 of $373.0 million, or $5.10
per share, as compared to FFO of $443.6 million, or $5.54 per
share, for the same period in 2020.
All per share amounts are presented on a diluted
basis.
Operating and Leasing
Activity
Same-store cash NOI, including our share of
same-store cash NOI from unconsolidated joint ventures, increased
by 5.7% for the third quarter of 2021, and increased 3.6% excluding
lease termination income, as compared to the same period in
2020.
Same-store cash NOI, including our share of
same-store cash NOI from unconsolidated joint ventures, decreased
by 1.3% for the nine months ended September 30, 2021, and
increased 0.2% excluding lease termination income, as compared to
the same period in 2020.
During the third quarter of 2021, the Company
signed 44 office leases in its Manhattan office portfolio totaling
445,453 square feet. The average lease term on the Manhattan office
leases signed in the third quarter of 2021 was 10.7 years and
average tenant concessions were 8.8 months of free rent with a
tenant improvement allowance of $77.63 per rentable square foot,
excluding leases signed at One Vanderbilt Avenue. Thirty-two leases
comprising 317,709 square feet, representing office leases on space
that had been occupied within the prior twelve months, are
considered replacement leases on which mark-to-market is
calculated. Those replacement leases had average starting rents of
$71.39 per rentable square foot, representing a 1.8% decrease over
the previous fully escalated rents on the same office spaces.
During the first nine months of 2021, the
Company signed 107 office leases in its Manhattan office portfolio
totaling 1,355,908 square feet. The average lease term on the
Manhattan office leases signed in the first nine months of 2021 was
7.2 years and average tenant concessions were 6.2 months of free
rent with a tenant improvement allowance of $53.40 per rentable
square foot, excluding leases signed at One Vanderbilt Avenue.
Seventy leases comprising 770,833 square feet, representing office
leases on space that had been occupied within the prior twelve
months, are considered replacement leases on which mark-to-market
is calculated. Those replacement leases had average starting rents
of $72.32 per rentable square foot, representing a 1.7% decrease
over the previous fully escalated rents on the same office
spaces.
Occupancy in the Company's Manhattan same-store
office portfolio was 93.1% as of September 30, 2021, inclusive
of 99,764 square feet of leases signed but not yet commenced, as
compared to 93.6% at the end of the previous quarter.
Significant leases that were signed in the third
quarter included:
- Expansion lease
with Carlyle Investment Management, Inc. for 33,924 square feet at
One Vanderbilt Avenue, for 15.2 years;
- New lease with
UiPath for 26,363 square feet at One Vanderbilt Avenue, for 15.0
years;
- New lease with
Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo, PC for 101,394
square feet at 919 Third Avenue, for 21.5 years;
- Early renewal
with Grant & Eisenhofer P.A. for 14,078 square feet at 485
Lexington Avenue, for 7.7 years;
- New lease with
TigerRisk Partners LLC for 13,284 square feet at 1350 Avenue of the
Americas, for 4.8 years;
- New lease with
Pennant Park Investment Advisors for 10,705 square feet at 1350
Avenue of the Americas, for 7.8 years; and
- New retail lease
with Piano Software, Inc. for 13,092 square feet at 85 Fifth
Avenue, for 12.0 years.
Investment Activity
To date in 2021, the Company has repurchased
3.8 million shares of its common stock and redeemed
0.6 million units of its Operating Partnership, or OP units,
bringing total repurchases and redemptions to 35.3 million
shares of common stock and 1.6 million OP units for a combined
total of $3.2 billion under the previously announced
$3.5 billion share repurchase program.
In September, the Company acquired the fee
position in 1591-1597 Broadway for a purchase price of
$121.0 million. The 7,684 square foot parcel, located on the
northwest corner of 48th Street and Broadway, is subject to a
ground lease, and sits beneath a portion of the Crowne Plaza Hotel.
A third party has asserted ownership rights to the fee, which the
Company is contesting.
In September, the Company acquired 690 Madison
Avenue. The 7,848 SF five-story building, currently leased to
Hermes, is located on the northwest corner of 62nd street along
Madison Avenue’s Gold Coast, neighboring luxury retail and a
collection of high-end residential, hotels and restaurants
including 760 Madison, SL Green’s condo development project in
partnership with Giorgio Armani. The property previously served as
collateral for a debt and preferred equity investment.
In September, together with its joint venture
partners, the Company closed on the sale of the 5.0% interest in
410 Tenth Avenue that was retained when the joint venture sold its
controlling interest in the property in December 2020. This
transaction generated net cash proceeds to the Company of
$14.8 million.
In September, the Company closed on the
previously announced sale of its interests in 400 East 57th Street
for a gross asset valuation of $133.5 million. The property
included 263 residential units and approximately 10,000 square feet
of retail leased to essential service providers. The transaction
generated net cash proceeds to the Company of
$19.8 million.
In July, the Company closed on the previously
announced sale of a 49% interest in 220 East 42nd Street for gross
consideration of $790.1 million. SL Green retained a 51%
interest in the property and will continue to oversee management
and leasing of the building. The transaction generated net cash
proceeds to the Company of $136.1 million.
Debt and Preferred Equity Investment
Activity
The carrying value of the Company’s debt and
preferred equity ("DPE") portfolio was $1.09 billion at
September 30, 2021. The portfolio is comprised of $1.05
billion of investments, which are classified in the debt and
preferred equity line item of the balance sheet, at a weighted
average current yield of 7.4%, or 9.4% excluding the effect of
$238.7 million of investments that are on non-accrual, and
mortgage investments aggregating $0.04 billion at a weighted
average current yield of 3.6% that are included in other balance
sheet line items for accounting purposes.
Guidance
The Company is revising its earnings guidance
ranges, resulting in an increase to the midpoint of those ranges
for the year ending December 31, 2021 to net income per share of
$7.21 to $7.41, and FFO per share of $6.45 to $6.65, as compared to
the previous guidance range of net income per share of $0.20 to
$0.60 and FFO per share of $6.30 to $6.70 per share.
Dividends
In the third quarter of 2021, the Company
declared:
- Three monthly
dividends on its outstanding common stock of $0.3033 per share
which were paid on August 16, September 15, and October 15, 2021,
equating to an annualized dividend of $3.64 per share of common
stock; and
- Quarterly
dividend on its outstanding 6.50% Series I Cumulative Redeemable
Preferred Stock of $0.40625 per share for the period July 15, 2021
through and including October 14, 2021, which was paid on October
15, 2021 and is the equivalent of an annualized dividend of $1.625
per share.
Institutional Investor
Conference
The Company will host its Annual Institutional
Investor Conference on Monday, December 6, 2021. The Company’s
presentation, led by Marc Holliday, Chairman and Chief Executive
Officer, Andrew Mathias, President, and Matt DiLiberto, Chief
Financial Officer, will begin at 9:30 AM ET.
The event will be held in-person, by invitation
only. The presentation will be available online via audio webcast,
in listen only mode, and the accompanying presentation materials
can be accessed in the Investors section of the SL Green Realty
Corp. website at http://slgreen.com on the day of the
conference.
An audio replay of the presentation will be
available in the Investors section of the SL Green Realty Corp.
website following the conference.
Conference Call and Audio
Webcast
The Company's executive management team, led by
Marc Holliday, Chairman and Chief Executive Officer, will host a
conference call and audio webcast on Thursday, October 21, 2021, at
2:00 pm ET to discuss the financial results.
The supplemental data will be available prior to
the quarterly conference call in the Investors section of the SL
Green Realty Corp. website at www.slgreen.com under “Financial
Reports.”
The live conference call will be webcast in
listen-only mode in the Investors section of the SL Green Realty
Corp. website at www.slgreen.com under “Presentations &
Webcasts.” The conference may also be accessed by dialing toll-free
(877) 312-8765 or international (419) 386-0002, and using
conference ID 8382966.
A replay of the call will be available for 7
days after the call by dialing (855) 859-2056 using conference ID
8382966. A webcast replay will also be available in the Investors
section of the SL Green Realty Corp. website at
www.slgreen.com under “Presentations & Webcasts.”
Company Profile
SL Green Realty Corp., Manhattan's largest
office landlord, is a fully integrated real estate investment
trust, or REIT, that is focused primarily on acquiring, managing
and maximizing value of Manhattan commercial properties. As of
September 30, 2021, SL Green held interests in 76 buildings
totaling 35.3 million square feet. This included ownership
interests in 27.2 million square feet of Manhattan buildings and
7.3 million square feet securing debt and preferred equity
investments.
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 investor.relations@slgreen.com.
Disclaimers
Non-GAAP Financial
MeasuresDuring 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 in this release and in the Company’s Supplemental
Package.
Forward-looking StatementsThis
press release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and are intended to be
covered by the safe harbor provisions thereof. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that we
expect, believe or anticipate will or may occur in the future, are
forward-looking statements. These forward-looking statements are
based on certain assumptions and analyses made by us in light of
our experience and our perception of historical trends, current
conditions, expected future developments and other factors we
believe are appropriate. Forward-looking statements are not
guarantees of future performance and actual results or developments
may differ materially, and we caution you not to place undue
reliance on such statements. Forward-looking statements are
generally identifiable by the use of the words "may," "will,"
"should," "expect," "anticipate," "estimate," "believe," "intend,"
"project," "continue," or the negative of these words, or other
similar words or terms.
Forward-looking statements contained in this
press release are subject to a number of risks and uncertainties,
many of which are beyond our control, that may cause our actual
results, performance or achievements to be materially different
from future results, performance or achievements expressed or
implied by forward-looking statements made by us. Factors and risks
to our business that could cause actual results to differ from
those contained in the forward-looking statements include risks and
uncertainties related to the on-going COVID-19 pandemic and the
duration and impact it will have on our business and the industry
as a whole and the other risks and uncertainties described in our
filings with the Securities and Exchange Commission. Except to the
extent required by law, we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a
result of future events, new information or otherwise.
SL GREEN REALTY
CORP.CONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited and in thousands, except per share
data)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
Revenues: |
2021 |
|
2020 |
|
2021 |
|
2020 |
Rental revenue, net |
$ |
142,703 |
|
|
|
$ |
173,536 |
|
|
|
$ |
469,429 |
|
|
|
$ |
543,140 |
|
|
Escalation and
reimbursement |
12,660 |
|
|
|
21,979 |
|
|
|
58,634 |
|
|
|
70,892 |
|
|
Investment income |
20,072 |
|
|
|
22,988 |
|
|
|
59,452 |
|
|
|
101,464 |
|
|
Other income |
29,766 |
|
|
|
31,341 |
|
|
|
61,895 |
|
|
|
102,350 |
|
|
Total revenues |
205,201 |
|
|
|
249,844 |
|
|
|
649,410 |
|
|
|
817,846 |
|
|
Expenses: |
|
|
|
|
|
|
|
Operating expenses, including
related party expenses of $3,563 and $8,827 in 2021 and $2,801 and
$9,289 in 2020 |
40,684 |
|
|
|
45,910 |
|
|
|
126,851 |
|
|
|
140,673 |
|
|
Real estate taxes |
32,139 |
|
|
|
43,522 |
|
|
|
121,318 |
|
|
|
131,805 |
|
|
Operating lease rent |
6,557 |
|
|
|
6,973 |
|
|
|
20,003 |
|
|
|
22,171 |
|
|
Interest expense, net of
interest income |
14,807 |
|
|
|
23,536 |
|
|
|
57,155 |
|
|
|
91,100 |
|
|
Amortization of deferred
financing costs |
2,345 |
|
|
|
3,151 |
|
|
|
9,505 |
|
|
|
8,312 |
|
|
Depreciation and
amortization |
49,277 |
|
|
|
92,516 |
|
|
|
169,534 |
|
|
|
256,736 |
|
|
Loan loss and other investment
reserves, net of recoveries |
— |
|
|
|
8,957 |
|
|
|
— |
|
|
|
27,018 |
|
|
Transaction related costs |
190 |
|
|
|
45 |
|
|
|
215 |
|
|
|
483 |
|
|
Marketing, general and
administrative |
23,477 |
|
|
|
23,602 |
|
|
|
68,426 |
|
|
|
66,682 |
|
|
Total expenses |
169,476 |
|
|
|
248,212 |
|
|
|
573,007 |
|
|
|
744,980 |
|
|
|
|
|
|
|
|
|
|
Equity in net loss from
unconsolidated joint ventures |
(15,487 |
) |
|
|
(432 |
) |
|
|
(31,321 |
) |
|
|
(15,445 |
) |
|
Equity in net loss on sale of
interest in unconsolidated joint venture/real estate |
(1,280 |
) |
|
|
— |
|
|
|
(5,438 |
) |
|
|
— |
|
|
Purchase price and other fair
value adjustment |
208,810 |
|
|
|
— |
|
|
|
209,527 |
|
|
|
— |
|
|
Gain on sale of real estate,
net |
187,766 |
|
|
|
26,104 |
|
|
|
285,338 |
|
|
|
163,624 |
|
|
Depreciable real estate
reserves |
— |
|
|
|
(6,627 |
) |
|
|
(5,696 |
) |
|
|
(6,627 |
) |
|
Net income |
415,534 |
|
|
|
20,677 |
|
|
|
528,813 |
|
|
|
214,418 |
|
|
Net income attributable to
noncontrolling interests in the Operating Partnership |
(22,683 |
) |
|
|
(802 |
) |
|
|
(28,489 |
) |
|
|
(10,073 |
) |
|
Net loss (income) attributable
to noncontrolling interests in other partnerships |
915 |
|
|
|
(414 |
) |
|
|
2,454 |
|
|
|
(1,145 |
) |
|
Preferred unit
distributions |
(1,823 |
) |
|
|
(1,864 |
) |
|
|
(5,492 |
) |
|
|
(6,883 |
) |
|
Net income attributable to SL
Green |
391,943 |
|
|
|
17,597 |
|
|
|
497,286 |
|
|
|
196,317 |
|
|
Perpetual preferred stock
dividends |
(3,738 |
) |
|
|
(3,738 |
) |
|
|
(11,213 |
) |
|
|
(11,213 |
) |
|
Net income attributable to SL Green common stockholders |
$ |
388,205 |
|
|
|
$ |
13,859 |
|
|
|
$ |
486,073 |
|
|
|
$ |
185,104 |
|
|
Earnings Per Share
(EPS) |
|
|
|
|
|
|
|
Net income per share (Basic)
(1) |
$ |
5.77 |
|
|
|
$ |
0.19 |
|
|
|
$ |
7.08 |
|
|
|
$ |
2.51 |
|
|
Net income per share (Diluted)
(1) |
$ |
5.75 |
|
|
|
$ |
0.19 |
|
|
|
$ |
7.04 |
|
|
|
$ |
2.50 |
|
|
|
|
|
|
|
|
|
|
Funds From Operations
(FFO) |
|
|
|
|
|
|
|
FFO per share (Basic) (1) |
$ |
1.79 |
|
|
|
$ |
1.80 |
|
|
|
$ |
5.14 |
|
|
|
$ |
5.71 |
|
|
FFO per share (Diluted)
(1) |
$ |
1.78 |
|
|
|
$ |
1.80 |
|
|
|
$ |
5.10 |
|
|
|
$ |
5.69 |
|
|
FFO per share (Pro forma)
(2) |
$ |
1.78 |
|
|
|
$ |
1.75 |
|
|
|
$ |
5.10 |
|
|
|
$ |
5.54 |
|
|
|
|
|
|
|
|
|
|
Basic ownership
interest |
|
|
|
|
|
|
|
Weighted average REIT common
shares for net income per share |
66,840 |
|
|
|
70,943 |
|
|
|
68,275 |
|
|
|
73,373 |
|
|
Weighted average partnership
units held by noncontrolling interests |
3,834 |
|
|
|
4,029 |
|
|
|
4,024 |
|
|
|
4,123 |
|
|
Basic weighted average
shares and units outstanding (1) |
70,674 |
|
|
|
74,972 |
|
|
|
72,299 |
|
|
|
77,496 |
|
|
|
|
|
|
|
|
|
|
Diluted ownership
interest |
|
|
|
|
|
|
|
Weighted average REIT common
share and common share equivalents |
67,653 |
|
|
|
71,385 |
|
|
|
69,063 |
|
|
|
73,814 |
|
|
Weighted average partnership
units held by noncontrolling interests |
3,834 |
|
|
|
4,029 |
|
|
|
4,024 |
|
|
|
4,123 |
|
|
Diluted weighted
average shares and units outstanding
(1) |
71,487 |
|
|
|
75,414 |
|
|
|
73,087 |
|
|
|
77,937 |
|
|
Pro forma adjustment (2) |
— |
|
|
|
2,077 |
|
|
|
— |
|
|
|
2,148 |
|
|
Pro forma diluted
weighted average shares and units outstanding
(2) |
71,487 |
|
|
|
77,491 |
|
|
|
73,087 |
|
|
|
80,085 |
|
|
(1) During the
first quarter of 2021, the Company completed a reverse stock split
to mitigate the dilutive impact of stock issued for a special
dividend paid primarily in stock. The 2020 basic and diluted
weighted average common shares outstanding have been retroactively
adjusted to reflect the reverse stock split. |
(2) During the
first quarter of 2021, the Company completed a reverse stock split
to mitigate the dilutive impact of stock issued for a special
dividend paid primarily in stock. GAAP requires the weighted
average common shares outstanding to be adjusted retroactively for
all periods presented to reflect the reverse stock split. To
facilitate comparison between the periods presented, the Company
calculated Pro forma diluted weighted average shares and units
outstanding for the 2020 periods presented, which adjusts the share
counts back to the originally-reported numbers. |
SL GREEN REALTY
CORP.CONSOLIDATED BALANCE SHEETS(in
thousands, except per share data)
|
September 30, |
|
December 31, |
|
2021 |
|
2020 |
Assets |
(Unaudited) |
|
|
Commercial real estate
properties, at cost: |
|
|
|
Land and land interests |
$ |
1,489,101 |
|
|
|
$ |
1,315,832 |
|
|
Building and improvements |
3,828,052 |
|
|
|
4,168,193 |
|
|
Building leasehold and
improvements |
1,649,796 |
|
|
|
1,448,134 |
|
|
Right of use asset - financing
leases |
27,445 |
|
|
|
55,711 |
|
|
Right of use asset - operating
leases |
498,416 |
|
|
|
367,209 |
|
|
|
7,492,810 |
|
|
|
7,355,079 |
|
|
Less: accumulated
depreciation |
(1,904,465 |
) |
|
|
(1,956,077 |
) |
|
|
5,588,345 |
|
|
|
5,399,002 |
|
|
Cash and cash equivalents |
257,941 |
|
|
|
266,059 |
|
|
Restricted cash |
87,992 |
|
|
|
106,736 |
|
|
Investment in marketable
securities |
34,428 |
|
|
|
28,570 |
|
|
Tenant and other
receivables |
44,964 |
|
|
|
44,507 |
|
|
Related party receivables |
35,674 |
|
|
|
34,657 |
|
|
Deferred rents receivable |
254,277 |
|
|
|
302,791 |
|
|
Debt and preferred equity
investments, net of discounts and deferred origination fees of
$6,494 and $11,232 and allowances of $6,630 and $13,213 in 2021 and
2020, respectively |
1,052,110 |
|
|
|
1,076,542 |
|
|
Investments in unconsolidated
joint ventures |
3,028,084 |
|
|
|
3,823,322 |
|
|
Deferred costs, net |
124,637 |
|
|
|
177,168 |
|
|
Other assets |
347,407 |
|
|
|
448,213 |
|
|
Total assets |
$ |
10,855,859 |
|
|
|
$ |
11,707,567 |
|
|
|
|
|
|
Liabilities |
|
|
|
Mortgages and other loans
payable |
$ |
1,428,734 |
|
|
|
$ |
2,001,361 |
|
|
Revolving credit facility |
220,000 |
|
|
|
110,000 |
|
|
Unsecured term loan |
1,500,000 |
|
|
|
1,500,000 |
|
|
Unsecured notes |
901,160 |
|
|
|
1,251,888 |
|
|
Deferred financing costs,
net |
(15,004 |
) |
|
|
(34,521 |
) |
|
Total debt, net of deferred
financing costs |
4,034,890 |
|
|
|
4,828,728 |
|
|
Accrued interest payable |
20,777 |
|
|
|
14,825 |
|
|
Accounts payable and accrued
expenses |
137,946 |
|
|
|
151,309 |
|
|
Deferred revenue |
120,567 |
|
|
|
118,572 |
|
|
Lease liability - financing
leases |
125,168 |
|
|
|
152,521 |
|
|
Lease liability - operating
leases |
437,357 |
|
|
|
339,458 |
|
|
Dividend and distributions
payable |
23,958 |
|
|
|
149,294 |
|
|
Security deposits |
54,366 |
|
|
|
53,836 |
|
|
Junior subordinate deferrable
interest debentures held by trusts that issued trust preferred
securities |
100,000 |
|
|
|
100,000 |
|
|
Other liabilities |
157,375 |
|
|
|
302,798 |
|
|
Total liabilities |
5,212,404 |
|
|
|
6,211,341 |
|
|
|
|
|
|
Commitments and
contingencies |
— |
|
|
|
— |
|
|
Noncontrolling interest in the
Operating Partnership |
362,737 |
|
|
|
358,262 |
|
|
Preferred units |
198,503 |
|
|
|
202,169 |
|
|
|
|
|
|
Equity |
|
|
|
Stockholders’ equity: |
|
|
|
Series I Preferred Stock, $0.01 par value, $25.00 liquidation
preference, 9,200 issued and outstanding at both September 30, 2021
and December 31, 2020 |
221,932 |
|
|
|
221,932 |
|
|
Common stock, $0.01 par value
160,000 shares authorized, 67,926 and 69,534 issued and outstanding
(including 1,061 and 1,026 held in Treasury) at September 30, 2021
and December 31, 2020, respectively |
680 |
|
|
|
716 |
|
|
Additional paid-in
capital |
3,774,119 |
|
|
|
3,862,949 |
|
|
Treasury stock at cost |
(126,160 |
) |
|
|
(124,049 |
) |
|
Accumulated other
comprehensive loss |
(60,597 |
) |
|
|
(67,247 |
) |
|
Retained earnings |
1,258,232 |
|
|
|
1,015,462 |
|
|
Total SL Green Realty Corp.
stockholders’ equity |
5,068,206 |
|
|
|
4,909,763 |
|
|
Noncontrolling interests in
other partnerships |
14,009 |
|
|
|
26,032 |
|
|
Total equity |
5,082,215 |
|
|
|
4,935,795 |
|
|
Total liabilities and
equity |
$ |
10,855,859 |
|
|
|
$ |
11,707,567 |
|
|
SL GREEN REALTY
CORP.RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(unaudited and in thousands, except per share
data)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
Funds From Operations
(FFO) Reconciliation: |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Net income attributable to SL Green common stockholders |
$ |
388,205 |
|
|
|
$ |
13,859 |
|
|
|
$ |
486,073 |
|
|
|
$ |
185,104 |
|
|
Add: |
|
|
|
|
|
|
|
Depreciation and amortization |
49,277 |
|
|
|
92,516 |
|
|
|
169,534 |
|
|
|
256,736 |
|
|
Joint venture depreciation and noncontrolling interest
adjustments |
61,733 |
|
|
|
47,884 |
|
|
|
176,920 |
|
|
|
149,309 |
|
|
Net income attributable to noncontrolling interests |
21,768 |
|
|
|
1,216 |
|
|
|
26,035 |
|
|
|
11,218 |
|
|
Less: |
|
|
|
|
|
|
|
Gain on sale of real estate, net |
187,766 |
|
|
|
26,104 |
|
|
|
285,338 |
|
|
|
163,624 |
|
|
Equity in net loss on sale of interest in unconsolidated joint
venture/real estate |
(1,280 |
) |
|
|
— |
|
|
|
(5,438 |
) |
|
|
— |
|
|
Purchase price and other fair value adjustments |
206,779 |
|
|
|
— |
|
|
|
209,443 |
|
|
|
— |
|
|
Depreciable real estate reserves |
— |
|
|
|
(6,627 |
) |
|
|
(5,696 |
) |
|
|
(6,627 |
) |
|
Depreciation on non-rental real estate assets |
754 |
|
|
|
538 |
|
|
|
1,953 |
|
|
|
1,797 |
|
|
FFO attributable to SL
Green common stockholders and unit holders |
$ |
126,964 |
|
|
|
$ |
135,460 |
|
|
|
$ |
372,962 |
|
|
|
$ |
443,573 |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
Operating income and
Same-store NOI Reconciliation: |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
Net income |
$ |
415,534 |
|
|
|
$ |
20,677 |
|
|
|
$ |
528,813 |
|
|
|
$ |
214,418 |
|
|
Equity in net loss on sale of
interest in unconsolidated joint venture/real estate |
1,280 |
|
|
|
— |
|
|
|
5,438 |
|
|
|
— |
|
|
Purchase price and other fair
value adjustments |
(208,810 |
) |
|
|
— |
|
|
|
(209,527 |
) |
|
|
— |
|
|
Gain on sale of real estate,
net |
(187,766 |
) |
|
|
(26,104 |
) |
|
|
(285,338 |
) |
|
|
(163,624 |
) |
|
Depreciable real estate
reserves |
— |
|
|
|
6,627 |
|
|
|
5,696 |
|
|
|
6,627 |
|
|
Depreciation and
amortization |
49,277 |
|
|
|
92,516 |
|
|
|
169,534 |
|
|
|
256,736 |
|
|
Interest expense, net of
interest income |
14,807 |
|
|
|
23,536 |
|
|
|
57,155 |
|
|
|
91,100 |
|
|
Amortization of deferred
financing costs |
2,345 |
|
|
|
3,151 |
|
|
|
9,505 |
|
|
|
8,312 |
|
|
Operating
income |
86,667 |
|
|
|
120,403 |
|
|
|
281,276 |
|
|
|
413,569 |
|
|
|
|
|
|
|
|
|
|
Equity in net loss from
unconsolidated joint ventures |
15,487 |
|
|
|
432 |
|
|
|
31,321 |
|
|
|
15,445 |
|
|
Marketing, general and
administrative expense |
23,477 |
|
|
|
23,602 |
|
|
|
68,426 |
|
|
|
66,682 |
|
|
Transaction related costs,
net |
190 |
|
|
|
45 |
|
|
|
215 |
|
|
|
483 |
|
|
Investment income |
(20,072 |
) |
|
|
(22,988 |
) |
|
|
(59,452 |
) |
|
|
(101,464 |
) |
|
Loan loss and other investment
reserves, net of recoveries |
— |
|
|
|
8,957 |
|
|
|
— |
|
|
|
27,018 |
|
|
Non-building revenue |
(13,080 |
) |
|
|
(26,668 |
) |
|
|
(25,569 |
) |
|
|
(30,650 |
) |
|
Net operating income
(NOI) |
92,669 |
|
|
|
103,783 |
|
|
|
296,217 |
|
|
|
391,083 |
|
|
|
|
|
|
|
|
|
|
Equity in net loss from
unconsolidated joint ventures |
(15,487 |
) |
|
|
(432 |
) |
|
|
(31,321 |
) |
|
|
(15,445 |
) |
|
SLG share of unconsolidated JV
depreciation and amortization |
60,111 |
|
|
|
49,534 |
|
|
|
173,923 |
|
|
|
141,625 |
|
|
SLG share of unconsolidated JV
interest expense, net of interest income |
41,865 |
|
|
|
34,128 |
|
|
|
109,566 |
|
|
|
102,619 |
|
|
SLG share of unconsolidated JV
amortization of deferred financing costs |
4,766 |
|
|
|
2,232 |
|
|
|
11,196 |
|
|
|
5,612 |
|
|
SLG share of unconsolidated JV
loss on early extinguishment of debt |
748 |
|
|
|
— |
|
|
|
1,689 |
|
|
|
— |
|
|
SLG share of unconsolidated JV
investment income |
(310 |
) |
|
|
(314 |
) |
|
|
(920 |
) |
|
|
(931 |
) |
|
SLG share of unconsolidated JV
non-building revenue |
(814 |
) |
|
|
(4,374 |
) |
|
|
(3,000 |
) |
|
|
(8,398 |
) |
|
NOI including SLG
share of unconsolidated JVs |
183,548 |
|
|
|
184,557 |
|
|
|
557,350 |
|
|
|
616,165 |
|
|
|
|
|
|
|
|
|
|
NOI from other
properties/affiliates |
(33,481 |
) |
|
|
(37,889 |
) |
|
|
(108,961 |
) |
|
|
(162,539 |
) |
|
Same-store
NOI |
150,067 |
|
|
|
146,668 |
|
|
|
448,389 |
|
|
|
453,626 |
|
|
|
|
|
|
|
|
|
|
Ground lease straight-line
adjustment |
245 |
|
|
|
245 |
|
|
|
734 |
|
|
|
777 |
|
|
Joint Venture ground lease
straight-line adjustment |
232 |
|
|
|
232 |
|
|
|
697 |
|
|
|
826 |
|
|
Straight-line and free
rent |
(1,271 |
) |
|
|
(4,407 |
) |
|
|
(6,486 |
) |
|
|
(3,682 |
) |
|
Amortization of acquired above
and below-market leases, net |
(100 |
) |
|
|
(630 |
) |
|
|
(295 |
) |
|
|
(3,058 |
) |
|
Joint Venture straight-line
and free rent |
(1,772 |
) |
|
|
(3,510 |
) |
|
|
(11,157 |
) |
|
|
(13,518 |
) |
|
Joint Venture amortization of
acquired above and below-market leases, net |
(4,876 |
) |
|
|
(3,806 |
) |
|
|
(14,010 |
) |
|
|
(11,436 |
) |
|
Same-store cash
NOI |
$ |
142,525 |
|
|
|
$ |
134,792 |
|
|
|
$ |
417,872 |
|
|
|
$ |
423,535 |
|
|
|
|
|
|
|
|
|
|
Lease termination income |
(1,856 |
) |
|
|
(195 |
) |
|
|
(2,956 |
) |
|
|
(10,785 |
) |
|
Joint Venture lease
termination income |
(1,217 |
) |
|
|
(7 |
) |
|
|
(1,471 |
) |
|
|
(186 |
) |
|
Same-store cash NOI
excluding lease termination income |
$ |
139,452 |
|
|
|
$ |
134,590 |
|
|
|
$ |
413,445 |
|
|
|
$ |
412,564 |
|
|
SL GREEN REALTY
CORP.NON-GAAP FINANCIAL MEASURES -
DISCLOSURES
Funds from Operations (FFO)
FFO is a widely recognized non-GAAP financial
measure of REIT performance. The Company computes FFO in accordance
with standards established by NAREIT, which may not be comparable
to FFO reported by other REITs that do not compute FFO in
accordance with the NAREIT definition, or that interpret the NAREIT
definition differently than the Company does. The revised White
Paper on FFO approved by the Board of Governors of NAREIT in April
2002, and subsequently amended, defines FFO as net income (loss)
(computed in accordance with GAAP), excluding gains (or losses)
from sales of properties, and real estate related impairment
charges, plus real estate related depreciation and amortization and
after adjustments for unconsolidated partnerships and joint
ventures.
The Company presents FFO because it considers it
an important supplemental measure of the Company’s operating
performance and believes that it is frequently used by securities
analysts, investors and other interested parties in the evaluation
of REITs, particularly those that own and operate commercial office
properties. The Company also uses FFO as one of several criteria to
determine performance-based bonuses for members of its senior
management. FFO is intended to exclude GAAP historical cost
depreciation and amortization of real estate and related assets,
which assumes that the value of real estate assets diminishes
ratably over time. Historically, however, real estate values have
risen or fallen with market conditions. Because FFO excludes
depreciation and amortization unique to real estate, gains and
losses from property dispositions, and real estate related
impairment charges, it provides a performance measure that, when
compared year over year, reflects the impact to operations from
trends in occupancy rates, rental rates, operating costs, and
interest costs, providing perspective not immediately apparent from
net income. FFO does not represent cash generated from operating
activities in accordance with GAAP and should not be considered as
an alternative to net income (determined in accordance with GAAP),
as an indication of the Company’s financial performance or to cash
flow from operating activities (determined in accordance with GAAP)
as a measure of the Company’s liquidity, nor is it indicative of
funds available to fund the Company’s cash needs, including the
Company's ability to make cash distributions.
Funds Available for Distribution
(FAD)
FAD is a non-GAAP financial measure that is
calculated as FFO plus non-real estate depreciation, allowance for
straight line credit loss, adjustment for straight line operating
lease rent, non-cash deferred compensation, and pro-rata
adjustments from the Company's unconsolidated JVs, less straight
line rental income, free rent net of amortization, second cycle
tenant improvement and leasing costs, and recurring capital
expenditures.
FAD is not intended to represent cash flow for
the period and is not indicative of cash flow provided by operating
activities as determined in accordance with GAAP. FAD is presented
solely as a supplemental disclosure with respect to liquidity
because the Company believes it provides useful information
regarding the Company’s ability to fund its dividends. Because all
companies do not calculate FAD the same way, the presentation of
FAD may not be comparable to similarly titled measures of other
companies. FAD does not represent cash flow from operating,
investing and finance activities in accordance with GAAP and should
not be considered as an alternative to net income (determined in
accordance with GAAP), as an indication of the Company’s financial
performance, as an alternative to net cash flows from operating
activities (determined in accordance with GAAP), or as a measure of
the Company’s liquidity.
Earnings Before Interest, Taxes,
Depreciation and Amortization for Real Estate
(EBITDAre)
EBITDAre is a non-GAAP financial measure. The
Company computes EBITDAre in accordance with standards established
by the National Association of Real Estate Investment Trusts, or
NAREIT, which may not be comparable to EBITDAre reported by other
REITs that do not compute EBITDAre in accordance with the NAREIT
definition, or that interpret the NAREIT definition differently
than the Company does. The White Paper on EBITDAre approved by the
Board of Governors of NAREIT in September 2017 defines EBITDAre as
net income (loss) (computed in accordance with Generally Accepted
Accounting Principles, or GAAP), plus interest expense, plus income
tax expense, plus depreciation and amortization, plus (minus)
losses and gains on the disposition of depreciated property, plus
impairment write-downs of depreciated property and investments in
unconsolidated joint ventures, plus adjustments to reflect the
entity's share of EBITDAre of unconsolidated joint ventures.
The Company presents EBITDAre because the
Company believes that EBITDAre, along with cash flow from operating
activities, investing activities and financing activities, provides
investors with an additional indicator of the Company’s ability to
incur and service debt. EBITDAre should not be considered as an
alternative to net income (determined in accordance with GAAP), as
an indication of the Company’s financial performance, as an
alternative to net cash flows from operating activities (determined
in accordance with GAAP), or as a measure of the Company’s
liquidity.
Net Operating Income (NOI) and Cash
NOI
NOI is a non-GAAP financial measure that is
calculated as operating income before transaction related costs,
gains/losses on early extinguishment of debt, marketing general and
administrative expenses and non-real estate revenue. Cash NOI is
also a non-GAAP financial measure that is calculated by subtracting
free rent (net of amortization), straight-line rent, and the
amortization of acquired above and below-market leases from NOI,
while adding operating lease straight-line adjustment and the
allowance for straight-line tenant credit loss.
The Company presents NOI and Cash NOI because
the Company believes that these measures, when taken together with
the corresponding GAAP financial measures and reconciliations,
provide investors with meaningful information regarding the
operating performance of properties. When operating performance is
compared across multiple periods, the investor is provided with
information not immediately apparent from net income that is
determined in accordance with GAAP. NOI and Cash NOI provide
information on trends in the revenue generated and expenses
incurred in operating the Company's properties, unaffected by the
cost of leverage, straight-line adjustments, depreciation,
amortization, and other net income components. The Company uses
these metrics internally as performance measures. None of these
measures is an alternative to net income (determined in accordance
with GAAP) and same-store performance should not be considered an
alternative to GAAP net income performance.
Coverage Ratios
The Company presents fixed charge and debt
service coverage ratios to provide a measure of the Company’s
financial flexibility to service current debt amortization,
interest expense and operating lease rent from current cash net
operating income. These coverage ratios represent a common measure
of the Company’s ability to service fixed cash payments; however,
these ratios are not used as an alternative to cash flow from
operating, financing and investing activities (determined in
accordance with GAAP).
SLG-EARN
CONTACTMatt DiLibertoChief Financial
Officer(212) 594-2700
Grafico Azioni SL Green Realty (NYSE:SLG)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni SL Green Realty (NYSE:SLG)
Storico
Da Apr 2023 a Apr 2024