SL Green Realty Corp. Reports Fourth Quarter 2024 EPS of $0.13 per Share; and FFO of $1.81 per Share

Financial and Operating Highlights

• Net income attributable to common stockholders of $0.13 per share for the fourth quarter of 2024 as compared to net loss of $2.45 per share for the same period in 2023.
• Funds from operations ("FFO") of $1.81 per share for the fourth quarter of 2024, inclusive of $26.0 million, or $0.36 per share, of gain on discounted debt extinguishment at 690 Madison Avenue and $7.7 million, or $0.10 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of $0.72 per share for the same period in 2023.
• FFO of $8.11 per share for the full year, inclusive of $216.1 million, or $3.08 per share, of gains on discounted debt extinguishments and $5.3 million, or $0.07 per share, of positive non-cash fair value adjustments on mark-to-market derivatives, as compared to $4.94 for the same period in 2023.
• Signed 48 Manhattan office leases covering 1,789,996 square feet in the fourth quarter of 2024 and 188 Manhattan office leases covering 3,607,924 square feet for the full year. The mark-to-market on signed Manhattan office leases was 9.0% higher for the fourth quarter and 8.5% higher for the full year than the previous fully escalated rents on the same spaces.
• Same-store cash net operating income ("NOI"), including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased 2.7% for the fourth quarter and 1.2% for the full year, excluding lease termination income, as compared to the same periods in 2023.
• Manhattan same-store office occupancy increased to 92.5% as of December 31, 2024, inclusive of leases signed but not yet commenced.

Investing Highlights

• Closed on the sale of an 11.0% interest in One Vanderbilt Avenue for a gross asset valuation of $4.7 billion. The transaction generated net proceeds to the Company of $189.5 million.
• Closed on the sale of three of the Giorgio Armani Residences at 760 Madison Avenue. The transactions generated net proceeds to the Company of $61.5 million. Sales of the remaining units, which are all under contract, are expected to close in the first quarter of 2025.
• Closed on the previously announced acquisition of 500 Park Avenue for $130.0 million. The Company financed the acquisition with a new $80.0 million mortgage. The mortgage has a term of up to 5 years, as fully extended, and bears interest at a floating rate of 2.40% over Term SOFR, which the Company has swapped to a fixed rate of 6.57% through February 2028.
• Closed on the previously announced acquisition of our partner's 45.0% interest in 10 East 53rd Street for cash consideration of $7.2 million, net of all outstanding debt obligations.
• The Company continues to close commitments for the SLG Opportunistic Debt Fund, following the $250.0 million closing with a Canadian institutional investor to anchor the Fund.

Financing Highlights

• The Company repaid the previous $60.9 million mortgage on 690 Madison Avenue for a net payment of $32.1 million.
• Together with our joint venture partner, closed on a modification, extension and upsize of the $360.0 million mortgage on 100 Park Avenue. The modification extended the maturity date to December 2027, as fully extended, while maintaining the interest rate at 2.25% over Term SOFR. The lenders also provided a new $70.0 million future funding facility for leasing costs at the property.
• Together with our joint venture partners, closed on a modification and extension of the $1.3 billion mortgage facility on One Madison Avenue. The modification extended the final maturity date to November 2027, while maintaining the interest rate at 3.10% over Term SOFR.
• Together with our joint venture partner, closed on a modification and extension of the $742.8 million mortgage on 1515 Broadway. The modification extended the maturity date to March 2028, as fully extended, while maintaining the interest rate at 3.93%.
• Closed on a modification and extension of a $100.0 million funded term loan component of the Company's unsecured corporate credit facility. The modification extended the maturity date to November 2026, as fully extended, at a rate of 1.80% over Term SOFR.
• Inclusive of the above, the Company completed $5.3 billion of strategic debt refinancings, modifications and extensions in 2024.

Special Servicing and Asset Management Highlights

• The Company further expanded its special servicing business with active assignments now totaling $5.0 billion and an additional $8.2 billion for which the Company has been designated as special servicer on assets that are not currently in special servicing.

NEW YORK, Jan. 22, 2025 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported a net income attributable to common stockholders for the quarter ended December 31, 2024 of $9.4 million, or $0.13 per share, as compared to a net loss of $155.6 million, or $2.45 per share, for the same quarter in 2023.

The Company reported net income attributable to common stockholders for the year ended December 31, 2024 of $7.1 million, or $0.08 per share, as compared to a net loss of $579.5 million, or $9.12 per share, for the same period in 2023.

The Company reported FFO for the quarter ended December 31, 2024 of $131.9 million or $1.81 per share, inclusive of $26.0 million, or $0.36 per share, of gain on discounted debt extinguishment at 690 Madison Avenue and $7.7 million, or $0.10 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of $49.7 million, or $0.72 per share, for the same period in 2023.

The Company reported FFO for the year ended December 31, 2024 of $569.8 million, or $8.11 per share, inclusive of $216.1 million, or $3.08 per share, of gains on discounted debt extinguishments at 2 Herald Square, 280 Park Avenue, 719 Seventh Avenue and 690 Madison Avenue and $5.3 million, or $0.07 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of $341.3 million, or $4.94 per share, for the same period in 2023.

All per share amounts are presented on a diluted basis.

Operating and Leasing Activity

Same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased by 1.9% for the fourth quarter of 2024, or 2.7% excluding lease termination income, as compared to the same period in 2023.

Same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased by 0.7% for the year ended December 31, 2024, and decreased 1.2% excluding lease termination income, as compared to the same period in 2023.

During the fourth quarter of 2024, the Company signed 48 office leases in its Manhattan office portfolio totaling 1,789,996 square feet. The average rent on the Manhattan office leases signed in the fourth quarter of 2024 was $74.38 per rentable square foot with an average lease term of 10.6 years and average tenant concessions of 12.5 months of free rent with a tenant improvement allowance of $116.36 per rentable square foot. Twenty-seven leases comprising 1,126,626 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 $76.24 per rentable square foot, representing a 9.0% increase over the previous fully escalated rents on the same office spaces.

During the year ended December 31, 2024, the Company signed 188 office leases in its Manhattan office portfolio totaling 3,607,924 square feet. The average rent on the Manhattan office leases signed in 2024 was $87.91 per rentable square foot with an average lease term of 10 years and average tenant concessions of 10.8 months of free rent with a tenant improvement allowance of $102.74 per rentable square foot. One hundred six leases comprising 2,260,684 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 $89.09 per rentable square foot, representing a 8.5% increase over the previous fully escalated rents on the same office spaces.

Occupancy in the Company's Manhattan same-store office portfolio increased to 92.5% as of December 31, 2024, inclusive of 946,927 square feet of leases signed but not yet commenced, as compared to 90.1% at the end of the previous quarter.

Significant leasing activity in the fourth quarter and to date in January includes:

• Early renewal and expansion with Bloomberg, L.P. for 924,876 square feet at 919 Third Avenue;
• New lease with Alvarez & Marsal Holdings, LLC for 220,221 square feet at 100 Park Avenue;
• Early renewal and expansion with The Travelers Indemnity Company for 122,788 square feet at 485 Lexington Avenue;
• Expansion lease with IBM for 92,663 square feet at One Madison Avenue;
• Expansion lease with Verition Group NY, Inc. for 72,515 square feet at 245 Park Avenue;
• Early renewal and expansion with the Brazilian Government for 66,331 square feet at 220 East 42nd Street;
• New lease with Hartree Partners, LP for 54,250 square feet at 1185 Avenue of the Americas;
• New lease with New York State Office of General Services for 51,284 square feet at 919 Third Avenue; and
• Expansion lease with Ares Management LLC for 38,074 square feet at 245 Park Avenue.

Investment Activity

In November, the Company closed on the sale of an 11.0% interest in One Vanderbilt Avenue for a gross asset valuation of $4.7 billion. The Company now holds a 60.0% interest in the property. The transaction generated net proceeds to the Company of $189.5 million.

In December, the Company closed on three of the Giorgio Armani Residences at 760 Madison Avenue. The transactions generated net proceeds to the Company of $61.5 million. Sales of the remaining units, which are all under contract, are expected to close in the first quarter of 2025.

In January, the Company closed on the previously announced acquisition of 500 Park Avenue for $130.0 million. The Company financed the acquisition with a new $80.0 million mortgage. The mortgage has a term of up to 5 years, as fully extended, and bears interest at a floating rate of 2.40% over Term SOFR, which the Company has swapped to a fixed rate of 6.57% through February 2028.

In December, the Company closed on the previously announced acquisition of our partner's 45.0% interest in 10 East 53rd Street for cash consideration of $7.2 million, net of those debt obligations in place prior to the loan modification which closed in the first quarter of 2024.

The Company continues to close commitments for the SLG Opportunistic Debt Fund, following the $250.0 million closing with a Canadian institutional investor to anchor the Fund.

Debt and Preferred Equity Investment Activity

The carrying value of the Company's debt and preferred equity portfolio was $518.4 million at December 31, 2024, including $214.7 million representing the Company's share of the preferred equity investment in 625 Madison Avenue that is accounted for as an unconsolidated joint venture. The portfolio had a weighted average current yield of 7.3% as of December 31, 2024, or 8.4% excluding the effect of a $53.7 million investment that is on non-accrual.

In December, the Company closed on a one-year extension of an existing $50.0 million investment that was previously in maturity default.

During the fourth quarter of 2024, the Company invested $15.5 million in real estate debt and commercial mortgage-backed securities ("CMBS").

Financing Activity

In December, the Company repaid the previous $60.9 million mortgage on 690 Madison Avenue for a net payment of $32.1 million.

In December, together with our joint venture partner, closed on a modification, extension and upsize of the $360.0 million mortgage on 100 Park Avenue. The modification extended the maturity date to December 2027, as fully extended, while maintaining the interest rate at 2.25% over Term SOFR. In addition, the lenders provided a new $70.0 million future funding facility for leasing costs at the property. The Company also closed on a modification to the joint venture, which provides the Company with a purchase option to acquire the partner's 49.9% interest in the property.

In November, together with our joint venture partners, closed on a modification and extension of the $1.3 billion mortgage facility on One Madison Avenue. The modification extended the final maturity date to November 2027, while maintaining the interest rate at 3.10% over Term SOFR.

In November, together with our joint venture partner, closed on a modification and extension of the $742.8 million mortgage on 1515 Broadway. The modification extended the maturity date to March 2028, as fully extended, while maintaining the interest rate at 3.93%.

In November, the Company closed on a modification and extension of a $100.0 million funded term loan component of its unsecured corporate credit facility. The modification extended the maturity date to November 2026, as fully extended, at a rate of 1.80% over Term SOFR.

Special Servicing and Asset Management Activity

The Company further expanded its special servicing business with active assignments now totaling $5.0 billion and an additional $8.2 billion for which the Company has been designated as special servicer on assets that are not currently in special servicing. Since inception, the Company's cumulative special servicing and asset management appointments total $21.5 billion.

Dividends

In the fourth quarter of 2024, the Company declared:

• Two monthly ordinary dividends on its outstanding common stock of $0.25 per share, which were paid in cash on November 15 and December 16, 2024;
• One monthly ordinary dividend on its outstanding common stock of $0.2575 per share, which was paid on January 15, 2025, and reflects an increase in the annualized ordinary dividend to $3.09 per share of common stock; and
• A quarterly dividend on its outstanding 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share for the period October 15, 2024 through and including January 14, 2025, which was paid in cash on January 15, 2025, and is the equivalent of an annualized dividend of $1.625 per share.

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, January 23, 2025, at 2:00 p.m. ET to discuss the financial results.

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 and a replay will be available in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under "Presentations & Webcasts.”

Research analysts who wish to participate in the conference call must first register at https://register.vevent.com/register/BI98713c5cf3b747a4b8c7b7969ca7daf4.

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 December 31, 2024, SL Green held interests in 54 buildings totaling 30.6 million square feet. This included ownership interests in 27.0 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.

To obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at [email protected].

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 in this release and in the Company's Supplemental Package.

Forward-looking Statements

This 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, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, 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 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.

PRESS CONTACT

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