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SL GREEN REALTY CORP - Quarter Report: 2022 March (Form 10-Q)


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________
FORM 10-Q
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                to                
Commission File Number: 1-13199 (SL Green Realty Corp.)
Commission File Number: 33-167793-02 (SL Green Operating Partnership, L.P.)
______________________________________________________________________
SL GREEN REALTY CORP.
SL GREEN OPERATING PARTNERSHIP, L.P.
(Exact name of registrant as specified in its charter)
______________________________________________________________________
SL Green Realty Corp.Maryland13-3956775
SL Green Operating Partnership, L.P.Delaware13-3960938
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
One Vanderbilt Avenue, New York, NY 10017
(Address of principal executive offices—Zip Code)

(212) 594-2700
(Registrant's telephone number, including area code)
______________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 
SL Green Realty Corp.    Yes x    No o            SL Green Operating Partnership, L.P.    Yes x    No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 
SL Green Realty Corp.     Yes x    No o            SL Green Operating Partnership, L.P.    Yes x    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
SL Green Realty Corp.
Large accelerated filerxAccelerated filer
Non-accelerated filer
Smaller Reporting CompanyEmerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
SL Green Operating Partnership, L.P.
Large accelerated filerAccelerated filer
Non-accelerated filerx
Smaller Reporting CompanyEmerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). 
SL Green Realty Corp.    Yes     No x            SL Green Operating Partnership, L.P.    Yes     No x
Securities registered pursuant to Section 12(b) of the Act:
RegistrantTrading SymbolTitle of Each ClassName of Each Exchange on Which Registered
SL Green Realty Corp.SLGCommon Stock, $0.01 par valueNew York Stock Exchange
SL Green Realty Corp.SLG.PRI6.500% Series I Cumulative Redeemable Preferred Stock, $0.01 par valueNew York Stock Exchange
As of May 6, 2022, 64,124,349 shares of SL Green Realty Corp.'s common stock, par value $0.01 per share, were outstanding. As of May 6, 2022, 689,437 common units of limited partnership interest of SL Green Operating Partnership, L.P. were held by non-affiliates. There is no established trading market for such units.




EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2022 of SL Green Realty Corp. and SL Green Operating Partnership, L.P. Unless stated otherwise or the context otherwise requires, references to "SL Green Realty Corp.," the "Company" or "SL Green" mean SL Green Realty Corp. and its consolidated subsidiaries, including SL Green Operating Partnership, L.P.; and references to "SL Green Operating Partnership, L.P.," the "Operating Partnership" or "SLGOP" mean SL Green Operating Partnership, L.P. and its consolidated subsidiaries. The terms "we," "our" and "us" mean the Company and all the entities owned or controlled by the Company, including the Operating Partnership.
The Company is a Maryland corporation which operates as a self-administered and self-managed real estate investment trust, or REIT, and is the sole managing general partner of the Operating Partnership. As a general partner of the Operating Partnership, the Company has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Operating Partnership.
As of March 31, 2022, the Company owns 94.00% of the outstanding general and limited partnership interest in the Operating Partnership and owns 9,200,000 Series I Preferred Units of the Operating Partnership. As of March 31, 2022, noncontrolling investors held, in aggregate, a 6.00% limited partnership interest in the Operating Partnership. We refer to these interests as the noncontrolling interests in the Operating Partnership.
The Company and the Operating Partnership are managed and operated as one entity. The financial results of the Operating Partnership are consolidated into the financial statements of the Company. The Company has no significant assets other than its investment in the Operating Partnership. Substantially all of our assets are held by, and our operations are conducted through, the Operating Partnership. Therefore, the assets and liabilities of the Company and the Operating Partnership are substantially the same.
Noncontrolling interests in the Operating Partnership, stockholders' equity of the Company and partners' capital of the Operating Partnership are the main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership. The common limited partnership interests in the Operating Partnership not owned by the Company are accounted as noncontrolling interests, within mezzanine equity, in the Company's and the Operating Partnership's consolidated financial statements.
We believe combining the quarterly reports on Form 10-Q of the Company and the Operating Partnership into this single report results in the following benefits:
Combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
Combined reports eliminate duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company's disclosure applies to both the Company and the Operating Partnership; and
Combined reports create time and cost efficiencies through the preparation of one combined report instead of two separate reports.
To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:
consolidated financial statements; and
the following notes to the consolidated financial statements:
Note 11, Noncontrolling Interests on the Company’s Consolidated Financial Statements;
Note 12, Stockholders' Equity of the Company; and
Note 13, Partners' Capital of the Operating Partnership.
This report also includes separate Part I, Item 4. Controls and Procedures sections and separate Exhibit 31 and 32 certifications for each of the Company and the Operating Partnership, respectively, in order to establish that the Chief Executive Officer and the Chief Financial Officer of the Company, in both their capacity as the principal executive officer and principal financial officer of the Company and the principal executive officer and principal financial officer of the general partner of the Operating Partnership, have made the requisite certifications and that the Company and the Operating Partnership are compliant with Rule 13a-15 and Rule 15d-15 of the Securities Exchange Act of 1934, as amended, or the Exchange Act.



On December 2, 2021, our Board of Directors declared an ordinary dividend of $0.3108 per share and a special dividend of $2.4392 per share (together, "the Total Dividend"). The Total Dividend was paid on January 18, 2022 to shareholders of record at the close of business on December 15, 2021 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed. As a result of the elections made, the cash option was oversubscribed and was prorated. Shareholders who elected to receive cash received, for each share of common stock they owned as of the Record Date, approximately $0.3976 in cash and 0.0295 shares of common stock. Shareholders who elected to receive shares received, for each share of common stock they owned as of the Record Date, approximately 0.0345 shares of common stock. The number of shares issued was calculated based on the volume weighted average trading price of SLG's common stock between January 5-7, 2022 of $79.71 per share.
To mitigate the dilutive impact of the common stock issued in the special dividend, the Board of Directors also authorized a reverse stock split, which was effective after markets closed on January 21, 2022. On January 10, 2022, a committee of the Board of Directors calculated the ratio for the reverse stock split of our issued and outstanding shares of common stock as 1.03060-for-1. After the issuance of the dividend and the completion of the reverse stock split, the number of shares of our common stock outstanding was equivalent to the number of total shares outstanding on the Record Date (not including any issuances or repurchases that occurred following the Record Date, as well as any fractional shares that would have been issued but for which cash-in-lieu was paid). However, on a relative basis, some individual shareholders may have more shares of SLG’s common stock, and some individual shareholders may have fewer shares of our common stock, depending on their individual elections to receive cash or stock and as a result of the cash option being oversubscribed.
All share-related references and measurements including the number of shares outstanding, share prices, number of shares repurchased, earnings per share, dividends per share, and share-based compensation awards, have been retroactively adjusted to reflect the reverse stock split for all periods presented in this Quarterly Report on Form 10-Q.



SL GREEN REALTY CORP. AND SL GREEN OPERATING PARTNERSHIP, L.P.
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION 
Item 1.FINANCIAL STATEMENTS
FINANCIAL STATEMENTS OF SL GREEN REALTY CORP.
Consolidated Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021
Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021 (unaudited)
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and 2021 (unaudited)
Consolidated Statements of Equity for the three months ended March 31, 2022 and 2021 (unaudited)
Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)
FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P.
Consolidated Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021
Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021 (unaudited)
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and 2021 (unaudited)
Consolidated Statements of Capital for the three months ended March 31, 2022 and 2021 (unaudited)
Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)
Notes to Consolidated Financial Statements (unaudited)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures about Market Risk
Controls and Procedures (SL Green Realty Corp. and SL Green Operating Partnership, L.P.)
PART II.OTHER INFORMATION
Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Other Information
Exhibits
Signatures


Table of Contents


SL GREEN REALTY CORP. AND SL GREEN OPERATING PARTNERSHIP, L.P.

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

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SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands)
March 31, 2022December 31, 2021
(unaudited)
Assets
Commercial real estate properties, at cost:
Land and land interests
$1,352,610 $1,350,701 
Building and improvements
3,709,795 3,671,402 
Building leasehold and improvements
1,654,571 1,645,081 
Right of use asset - operating leases983,723 983,723 
7,700,699 7,650,907 
Less: accumulated depreciation
(1,938,804)(1,896,199)
5,761,895 5,754,708 
Assets held for sale49,757 140,855 
Cash and cash equivalents223,674 251,417 
Restricted cash83,644 85,567 
Investments in marketable securities32,889 34,752 
Tenant and other receivables41,257 47,616 
Related party receivables31,711 29,408 
Deferred rents receivable250,028 248,313 
Debt and preferred equity investments, net of discounts and deferred origination fees of $3,670 and $5,057 and allowances of $6,630 and $6,630 in 2022 and 2021, respectively
1,107,870 1,088,723 
Investments in unconsolidated joint ventures3,000,986 2,997,934 
Deferred costs, net122,294 124,495 
Other assets308,960 262,841 
Total assets (1)
$11,014,965 $11,066,629 
Liabilities
Mortgages and other loans payable, net$1,344,775 $1,394,386 
Revolving credit facility, net491,998 381,334 
Unsecured term loans, net1,242,345 1,242,002 
Unsecured notes, net899,541 899,308 
Accrued interest payable21,545 12,698 
Other liabilities276,254 195,390 
Accounts payable and accrued expenses139,460 157,571 
Deferred revenue110,631 107,275 
Lease liability - financing leases103,238 102,914 
Lease liability - operating leases852,194 851,370 
Dividend and distributions payable23,628 187,372 
Security deposits54,179 52,309 
Liabilities related to assets held for sale64,041 64,120 
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities100,000 100,000 
Total liabilities (1)
5,723,829 5,748,049 
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SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands)
March 31, 2022December 31, 2021
(unaudited)
Commitments and contingencies
Noncontrolling interests in Operating Partnership374,078 344,252 
Preferred units177,943 196,075 
Equity
SL Green stockholders' equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2022 and December 31, 2021
221,932 221,932 
Common stock, $0.01 par value, 160,000 shares authorized and 65,184 and 65,132 issued and outstanding at March 31, 2022 and December 31, 2021, respectively (including 1,060 and 1,027 shares held in treasury at March 31, 2022 and December 31, 2021, respectively)
653 672 
Additional paid-in-capital3,792,689 3,739,409 
Treasury stock at cost(128,655)(126,160)
Accumulated other comprehensive loss(7,261)(46,758)
Retained earnings846,646 975,781 
Total SL Green stockholders' equity4,726,004 4,764,876 
Noncontrolling interests in other partnerships13,111 13,377 
Total equity4,739,115 4,778,253 
Total liabilities and equity$11,014,965 $11,066,629 
(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $179.6 million and $193.4 million of land, $291.2 million and $336.9 million of building and improvements, $— million and $— million of building and leasehold improvements, $15.4 million and $15.4 million of right of use assets, $11.5 million and $11.7 million of accumulated depreciation, $569.7 million and $574.4 million of other assets included in other line items, $372.5 million and $418.9 million of real estate debt, net, $0.8 million and $0.8 million of accrued interest payable, $15.3 million and $15.3 million of lease liabilities, and $226.4 million and $145.2 million of other liabilities included in other line items as of March 31, 2022 and December 31, 2021, respectively.


The accompanying notes are an integral part of these consolidated financial statements.
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SL Green Realty Corp.
Consolidated Statements of Operations
(unaudited, in thousands, except per share data)

Three Months Ended March 31,
 20222021
Revenues
Rental revenue, net$156,031 $188,089 
Investment income19,888 19,273 
Other income12,045 18,740 
Total revenues187,964 226,102 
Expenses
Operating expenses, including related party expenses of $2,523 in 2022 and $2,225 in 2021
42,583 42,284 
Real estate taxes30,747 45,411 
Operating lease rent6,564 6,739 
Interest expense, net of interest income15,070 23,388 
Amortization of deferred financing costs1,948 3,774 
Depreciation and amortization46,983 62,996 
Transaction related costs28 22 
Marketing, general and administrative24,776 22,885 
Total expenses168,699 207,499 
Equity in net loss from unconsolidated joint ventures(4,715)(2,864)
Equity in net loss on sale of interest in unconsolidated joint venture/real estate (12,629)
Purchase price and other fair value adjustments(63)2,664 
Loss on sale of real estate, net(1,002)(1,388)
Depreciable real estate reserves and impairment (8,241)
Net income (loss)13,485 (3,855)
Net (income) loss attributable to noncontrolling interests:
Noncontrolling interests in the Operating Partnership(492)476 
Noncontrolling interests in other partnerships143 1,499 
Preferred units distributions(1,647)(1,846)
Net income (loss) attributable to SL Green11,489 (3,726)
Perpetual preferred stock dividends(3,738)(3,738)
Net income (loss) attributable to SL Green common stockholders$7,751 $(7,464)
Basic earnings (loss) per share$0.12 $(0.12)
Diluted earnings (loss) per share$0.11 $(0.12)
Basic weighted average common shares outstanding64,349 66,961 
Diluted weighted average common shares and common share equivalents outstanding 70,228 72,004 
    
The accompanying notes are an integral part of these consolidated financial statements.
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SL Green Realty Corp.
Consolidated Statements of Comprehensive Income
(unaudited, in thousands)
Three Months Ended March 31,
 20222021
Net income (loss)$13,485 $(3,855)
Other comprehensive income:
Increase in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments43,567 51,263 
Decrease in unrealized value of marketable securities(1,793)(258)
Other comprehensive income41,774 51,005 
Comprehensive income55,259 47,150 
Net (income) loss attributable to noncontrolling interests and preferred units distributions(1,996)129 
Other comprehensive income attributable to noncontrolling interests(2,277)(2,655)
Comprehensive income attributable to SL Green$50,986 $44,624 


The accompanying notes are an integral part of these consolidated financial statements.

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SL Green Realty Corp.
Consolidated Statements of Equity
(unaudited, in thousands, except per share data)
SL Green Realty Corp. Stockholders
 Common Stock
Series I
Preferred
Stock
SharesPar
Value
Additional
Paid-
In-Capital
Treasury
Stock
Accumulated
Other
Comprehensive Loss
Retained
Earnings
Noncontrolling
Interests
Total
Balance at December 31, 2021$221,932 64,105 $672 $3,739,409 $(126,160)$(46,758)$975,781 $13,377 $4,778,253 
Net income11,489 (143)11,346 
Other comprehensive income39,497 39,497 
Preferred dividends (3,738)(3,738)
DRSPP proceeds89 89 
Reallocation of noncontrolling interest in the Operating Partnership(43,023)(43,023)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings28 5,055 5,056 
Repurchases of common stock(1,971)(20)(114,979)(36,198)(151,197)
Cash distributions to noncontrolling interests(123)(123)
Issuance of special dividend paid primarily in stock1,961 163,115 (2,495)160,620 
Cash distributions declared ($0.932 per common share, none of which represented a return of capital for federal income tax purposes)
(57,665)(57,665)
Balance at March 31, 2022$221,932 64,124 $653 $3,792,689 $(128,655)$(7,261)$846,646 $13,111 $4,739,115 
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SL Green Realty Corp.
Consolidated Statements of Equity
(unaudited, in thousands, except per share data)
SL Green Realty Corp. Stockholders 
Common Stock
Series I
Preferred
Stock
SharesPar
Value
Additional
Paid-
In-Capital
Treasury
Stock
Accumulated
Other
Comprehensive Loss
Retained
Earnings
Noncontrolling
Interests
Total
Balance at December 31, 2020$221,932 66,474 $716 $3,862,949 $(124,049)$(67,247)$1,015,462 $26,032 $4,935,795 
Net loss(3,726)(1,499)(5,225)
Other comprehensive income48,350 48,350 
Preferred dividends (3,738)(3,738)
DRSPP proceeds351 351 
Reallocation of noncontrolling interest in the Operating Partnership(26,609)(26,609)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings110 6,726 6,728 
Repurchases of common stock(1,267)(13)(80,297)(80,310)
Contributions to consolidated joint venture interests171 171 
Cash distributions to noncontrolling interests(110)(110)
Issuance of special dividend paid primarily in stock1,974 123,529 123,529 
Cash distributions declared ($0.938 per common share, none of which represented a return of capital for federal income tax purposes)
(63,312)(63,312)
Balance at March 31, 2021$221,932 67,296 $705 $3,913,258 $(124,049)$(18,897)$918,077 $24,594 $4,935,620 

The accompanying notes are an integral part of these consolidated financial statements.
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SL Green Realty Corp.
Consolidated Statements of Cash Flows
(unaudited, in thousands, except per share data)
Three Months Ended March 31,
20222021
Operating Activities
Net income (loss)$13,485 $(3,855)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization48,931 66,770 
Equity in net loss from unconsolidated joint ventures4,715 2,864 
Distributions of cumulative earnings from unconsolidated joint ventures188 69 
Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate 12,629 
Purchase price and other fair value adjustments63 (2,664)
Depreciable real estate reserves and impairment 8,241 
Loss on sale of real estate, net1,002 1,388 
Deferred rents receivable(546)(2,685)
Non-cash lease expense6,043 3,375 
Other non-cash adjustments (6,964)15,564 
Changes in operating assets and liabilities:
Tenant and other receivables13,673 (4,138)
Related party receivables(2,335)(683)
Deferred lease costs(4,240)(240)
Other assets(25,076)(24,354)
Accounts payable, accrued expenses, other liabilities and security deposits28,049 (38,640)
Deferred revenue3,550 4,121 
Lease liability - operating leases864 (19,160)
Net cash provided by operating activities81,402 18,602 
Investing Activities
Additions to land, buildings and improvements(61,680)(49,328)
Acquisition deposits and deferred purchase price(15,000)— 
Investments in unconsolidated joint ventures(11,399)(21,027)
Distributions in excess of cumulative earnings from unconsolidated joint ventures16,089 19,692 
Net proceeds from disposition of real estate/joint venture interest91,994 62,800 
Cash assumed from consolidation of real estate investment 9,475 
Proceeds from sale or redemption of marketable securities 4,528 
Other investments209 (54)
Origination of debt and preferred equity investments(13,122)(5,905)
Repayments or redemption of debt and preferred equity investments6,405 — 
Net cash provided by investing activities13,496 20,181 
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SL Green Realty Corp.
Consolidated Statements of Cash Flows
(unaudited, in thousands, except per share data)
Three Months Ended March 31,
20222021
Financing Activities
Proceeds from mortgages and other loans payable5,309 10,391 
Repayments of mortgages and other loans payable(55,715)(362,542)
Proceeds from revolving credit facility and unsecured notes320,000 530,000 
Repayments of revolving credit facility and unsecured notes(210,000)(10,000)
Proceeds from stock options exercised and DRSPP issuance89 351 
Repurchase of common stock(151,197)(84,089)
Redemption of preferred stock(17,967)(3,631)
Redemption of OP units(18,272)(13,261)
Distributions to noncontrolling interests in other partnerships(123)(110)
Contributions from noncontrolling interests in other partnerships 171 
Distributions to noncontrolling interests in the Operating Partnership(4,415)(4,148)
Dividends paid on common and preferred stock(66,339)(69,772)
Other obligations related to secured borrowing77,874 — 
Tax withholdings related to restricted share awards(3,888)(2,788)
Deferred loan costs80 (288)
Principal payments of on financing lease liabilities (255)
Net cash used in financing activities(124,564)(9,971)
Net (decrease) increase in cash, cash equivalents, and restricted cash(29,666)28,812 
Cash, cash equivalents, and restricted cash at beginning of year336,984 372,795 
Cash, cash equivalents, and restricted cash at end of period$307,318 $401,607 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issuance of special dividend paid primarily in stock$160,620 $123,529 
Tenant improvements and capital expenditures payable8,700 15,214 
Fair value adjustment to noncontrolling interest in the Operating Partnership43,023 26,609 
Consolidation of real estate investment 119,444 
Extinguishment of debt in connection with property dispositions 53,548 
Debt and preferred equity investments 10,000 
Removal of fully depreciated commercial real estate properties651 1,120 
Share repurchase payable  3,779 
Recognition of right of use assets and related lease liabilities 119,711 
    The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
Three Months Ended March 31,
 20222021
Cash and cash equivalents$223,674 $304,999 
Restricted cash83,644 96,608 
Total cash, cash equivalents, and restricted cash$307,318 $401,607 
The accompanying notes are an integral part of these consolidated financial statements.
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SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands)

March 31, 2022December 31, 2021
(unaudited)
Assets  
Commercial real estate properties, at cost:  
Land and land interests
$1,352,610 $1,350,701 
Building and improvements
3,709,795 3,671,402 
Building leasehold and improvements
1,654,571 1,645,081 
Right of use asset - operating leases983,723 983,723 
7,700,699 7,650,907 
Less: accumulated depreciation
(1,938,804)(1,896,199)
5,761,895 5,754,708 
Assets held for sale49,757 140,855 
Cash and cash equivalents223,674 251,417 
Restricted cash83,644 85,567 
Investments in marketable securities32,889 34,752 
Tenant and other receivables41,257 47,616 
Related party receivables31,711 29,408 
Deferred rents receivable250,028 248,313 
Debt and preferred equity investments, net of discounts and deferred origination fees of $3,670 and $5,057 and allowances of $6,630 and $6,630 in 2022 and 2021, respectively
1,107,870 1,088,723 
Investments in unconsolidated joint ventures3,000,986 2,997,934 
Deferred costs, net122,294 124,495 
Other assets308,960 262,841 
Total assets (1)
$11,014,965 $11,066,629 
Liabilities 
Mortgages and other loans payable, net$1,344,775 $1,394,386 
Revolving credit facility, net491,998 381,334 
Unsecured term loans, net1,242,345 1,242,002 
Unsecured notes, net899,541 899,308 
Accrued interest payable21,545 12,698 
Other liabilities276,254 195,390 
Accounts payable and accrued expenses139,460 157,571 
Deferred revenue110,631 107,275 
Lease liability - financing leases103,238 102,914 
Lease liability - operating leases852,194 851,370 
Dividend and distributions payable23,628 187,372 
Security deposits54,179 52,309 
Liabilities related to assets held for sale64,041 64,120 
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities100,000 100,000 
Total liabilities (1)
5,723,829 5,748,049 
Commitments and contingencies
Limited partner interests in SLGOP (4,095 and 3,782 limited partner common units outstanding at March 31, 2022 and December 31, 2021, respectively)
374,078 344,252 
Preferred units177,943 196,075 
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SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands)

March 31, 2022December 31, 2021
(unaudited)
Capital   
SLGOP partners' capital:  
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2022 and December 31, 2021
221,932 221,932 
SL Green partners' capital (682 and 677 general partner common units and 63,442 and 63,428 limited partner common units outstanding at March 31, 2022 and December 31, 2021, respectively)
4,511,333 4,589,702 
Accumulated other comprehensive loss(7,261)(46,758)
Total SLGOP partners' capital4,726,004 4,764,876 
Noncontrolling interests in other partnerships13,111 13,377 
Total capital4,739,115 4,778,253 
Total liabilities and capital$11,014,965 $11,066,629 
(1) The Operating Partnership's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $179.6 million and $193.4 million of land, $291.2 million and $336.9 million of building and improvements, $— million and $— million of building and leasehold improvements, $15.4 million and $15.4 million of right of use assets, $11.5 million and $11.7 million of accumulated depreciation, $569.7 million and $574.4 million of other assets included in other line items, $372.5 million and $418.9 million of real estate debt, net, $0.8 million and $0.8 million of accrued interest payable, $15.3 million and $15.3 million of lease liabilities, and $226.4 million and $145.2 million of other liabilities included in other line items as of March 31, 2022 and December 31, 2021, respectively.


The accompanying notes are an integral part of these consolidated financial statements.
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SL Green Operating Partnership, L.P.
Consolidated Statements of Operations
(unaudited, in thousands, except per unit data)

Three Months Ended March 31,
 20222021
Revenues
Rental revenue, net$156,031 $188,089 
Investment income19,888 19,273 
Other income12,045 18,740 
Total revenues187,964 226,102 
Expenses
Operating expenses, including related party expenses of $2,523 in 2022 and $2,225 in 2021
42,583 42,284 
Real estate taxes30,747 45,411 
Operating lease rent6,564 6,739 
Interest expense, net of interest income15,070 23,388 
Amortization of deferred financing costs1,948 3,774 
Depreciation and amortization46,983 62,996 
Transaction related costs28 22 
Marketing, general and administrative24,776 22,885 
Total expenses168,699 207,499 
Equity in net loss from unconsolidated joint ventures(4,715)(2,864)
Equity in net loss on sale of interest in unconsolidated joint venture/real estate (12,629)
Purchase price and other fair value adjustments(63)2,664 
Loss on sale of real estate, net(1,002)(1,388)
Depreciable real estate reserves and impairment (8,241)
Net income (loss)13,485 (3,855)
Net (income) loss attributable to noncontrolling interests:
Noncontrolling interests in other partnerships143 1,499 
Preferred units distributions(1,647)(1,846)
Net income (loss) attributable to SLGOP11,981 (4,202)
Perpetual preferred unit distributions(3,738)(3,738)
Net income (loss) attributable to SLGOP common unitholders$8,243 $(7,940)
Basic earnings (loss) per unit$0.12 $(0.12)
Diluted earnings (loss) per unit$0.11 $(0.12)
Basic weighted average common units outstanding68,470 71,109 
Diluted weighted average common units and common unit equivalents outstanding70,228 72,004 


The accompanying notes are an integral part of these consolidated financial statements.
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SL Green Operating Partnership, L.P.
Consolidated Statements of Comprehensive Income
(unaudited, in thousands)

Three Months Ended March 31,
 20222021
Net income (loss)$13,485 $(3,855)
Other comprehensive income:
Increase in unrealized value of derivative instruments, including SLGOP's share of joint venture derivative instruments43,567 51,263 
Decrease in unrealized value of marketable securities(1,793)(258)
Other comprehensive income41,774 51,005 
Comprehensive income55,259 47,150 
Net loss attributable to noncontrolling interests and preferred units distributions143 1,499 
Other comprehensive income attributable to noncontrolling interests(2,277)(2,655)
Comprehensive income attributable to SLGOP$53,125 $45,994 


The accompanying notes are an integral part of these consolidated financial statements.

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SL Green Operating Partnership, L.P.
Consolidated Statements of Capital
(unaudited, in thousands, except per unit data)

 SL Green Operating Partnership Unitholders  
  Partners' Interest   
Series I
Preferred
Units
Common
Units
Common
Unitholders
Accumulated
Other
Comprehensive Loss
Noncontrolling
Interests
Total
Balance at December 31, 2021$221,932 64,105 $4,589,702 $(46,758)$13,377 $4,778,253 
Net income11,489 (143)11,346 
Other comprehensive income39,497 39,497 
Preferred distributions(3,738)(3,738)
DRSPP proceeds89 89 
Reallocation of noncontrolling interests in the Operating Partnership(43,023)(43,023)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings28 5,056 5,056 
Repurchases of common units(1,971)(151,197)(151,197)
Cash distributions to noncontrolling interests(123)(123)
Issuance of special distribution paid primarily in units1,961 160,620 160,620 
Cash distributions declared ($0.932 per common unit, none of which represented a return of capital for federal income tax purposes)
(57,665)(57,665)
Balance at March 31, 2022$221,932 64,124 $4,511,333 $(7,261)$13,111 $4,739,115 
   
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SL Green Operating Partnership, L.P.
Consolidated Statements of Capital
(unaudited, in thousands, except per unit data)

 SL Green Operating Partnership Unitholders  
  Partners' Interest   
Series I
Preferred
Units
Common
Units
Common
Unitholders
Accumulated
Other
Comprehensive Loss
Noncontrolling
Interests
Total
Balance at December 31, 2020$221,932 66,474 $4,755,078 $(67,247)$26,032 $4,935,795 
Net loss(3,726)(1,499)(5,225)
Other comprehensive income48,350 48,350 
Preferred distributions(3,738)(3,738)
DRSPP proceeds351 351 
Reallocation of noncontrolling interests in the Operating Partnership(26,609)(26,609)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings110 6,728 6,728 
Repurchases of common stock(1,267)(80,310)(80,310)
Contribution to consolidated joint venture interests171 171 
Cash distributions to noncontrolling interests(110)(110)
Issuance of special distribution paid primarily in units1,974 123,529 123,529 
Cash distributions declared ($0.938 per common unit, none of which represented a return of capital for federal income tax purposes)
(63,312)(63,312)
Balance at March 31, 2021$221,932 67,296 $4,707,991 $(18,897)$24,594 $4,935,620 


The accompanying notes are an integral part of these consolidated financial statements.

19

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SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(unaudited, in thousands)

Three Months Ended March 31,
 20222021
Operating Activities   
Net income (loss)$13,485 $(3,855)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization48,931 66,770 
Equity in net loss from unconsolidated joint ventures4,715 2,864 
Distributions of cumulative earnings from unconsolidated joint ventures188 69 
Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate 12,629 
Purchase price and other fair value adjustments63 (2,664)
Depreciable real estate reserves and impairment 8,241 
Loss on sale of real estate, net1,002 1,388 
Deferred rents receivable(546)(2,685)
Non-cash lease expense6,043 3,375 
Other non-cash adjustments (6,964)15,564 
Changes in operating assets and liabilities:
Tenant and other receivables13,673 (4,138)
Related party receivables(2,335)(683)
Deferred lease costs(4,240)(240)
Other assets(25,076)(24,354)
Accounts payable, accrued expenses, other liabilities and security deposits28,049 (38,640)
Deferred revenue3,550 4,121 
Lease liability - operating leases864 (19,160)
Net cash provided by operating activities81,402 18,602 
Investing Activities
Additions to land, buildings and improvements(61,680)(49,328)
Acquisition deposits and deferred purchase price(15,000)— 
Investments in unconsolidated joint ventures(11,399)(21,027)
Distributions in excess of cumulative earnings from unconsolidated joint ventures16,089 19,692 
Net proceeds from disposition of real estate/joint venture interest91,994 62,800 
Cash assumed from consolidation of real estate investment 9,475 
Proceeds from sale or redemption of marketable securities 4,528 
Other investments209 (54)
Origination of debt and preferred equity investments(13,122)(5,905)
Repayments or redemption of debt and preferred equity investments6,405 — 
Net cash provided by investing activities13,496 20,181 
Financing Activities  
Proceeds from mortgages and other loans payable5,309 10,391 
Repayments of mortgages and other loans payable(55,715)(362,542)
Proceeds from revolving credit facility and unsecured notes320,000 530,000 
Repayments of revolving credit facility and unsecured notes(210,000)(10,000)
Proceeds from stock options exercised and DRSPP issuance89 351 
Repurchase of common units(151,197)(84,089)
Redemption of preferred units(17,967)(3,631)
Redemption of OP units(18,272)(13,261)
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SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(unaudited, in thousands)

Three Months Ended March 31,
 20222021
Distributions to noncontrolling interests in other partnerships(123)(110)
Contributions from noncontrolling interests in other partnerships 171 
Distributions paid on common and preferred units(70,754)(73,920)
Other obligations related to secured borrowing77,874 — 
Tax withholdings related to restricted share awards(3,888)(2,788)
Deferred loan costs80 (288)
Principal payments of on financing lease liabilities (255)
Net cash used in financing activities(124,564)(9,971)
Net (decrease) increase in cash, cash equivalents, and restricted cash(29,666)28,812 
Cash, cash equivalents, and restricted cash at beginning of year336,984 372,795 
Cash, cash equivalents, and restricted cash at end of period$307,318 $401,607 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issuance of special distribution paid primarily in units$160,620 $123,529 
Tenant improvements and capital expenditures payable8,700 15,214 
Fair value adjustment to noncontrolling interest in the Operating Partnership43,023 26,609 
Consolidation of real estate investment 119,444 
Extinguishment of debt in connection with property dispositions 53,548 
Debt and preferred equity investments 10,000 
Removal of fully depreciated commercial real estate properties651 1,120 
Share repurchase payable  3,779 
Recognition of right of use assets and related lease liabilities 119,711 
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
Three Months Ended March 31,
 20222021
Cash and cash equivalents$223,674 $304,999 
Restricted cash83,644 96,608 
Total cash, cash equivalents, and restricted cash$307,318 $401,607 
    
The accompanying notes are an integral part of these consolidated financial statements.

21


SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements
March 31, 2022
(unaudited)
1. Organization and Basis of Presentation
SL Green Realty Corp., which is referred to as the Company or SL Green, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Operating Partnership received a contribution of interest in the real estate properties, as well as 95% of the economic interest in the management, leasing and construction companies which are referred to as S.L. Green Management Corp, or the Service Corporation. All of the management, leasing and construction services that are provided to the properties that are wholly-owned by us and that are provided to certain joint ventures are conducted through SL Green Management LLC and S.L. Green Management Corp., respectively, which are 100% owned by the Operating Partnership. The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT. A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to minimize the payment of Federal income taxes at the corporate level. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. The Company is the sole managing general partner of the Operating Partnership. As of March 31, 2022, noncontrolling investors held, in the aggregate, a 6.00% limited partnership interest in the Operating Partnership. We refer to these interests as the noncontrolling interests in the Operating Partnership. The Operating Partnership is considered a variable interest entity, or VIE, in which we are the primary beneficiary. See Note 11, "Noncontrolling Interests on the Company's Consolidated Financial Statements."
On December 2, 2021, our Board of Directors declared an ordinary dividend of $0.3108 per share and a special dividend of $2.4392 per share (together, "the Total Dividend"). The Total Dividend was paid on January 18, 2022 to shareholders of record at the close of business on December 15, 2021 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed. As a result of the elections made, the cash option was oversubscribed and was prorated. Shareholders who elected to receive cash received, for each share of common stock they owned as of the Record Date, approximately $0.3976 in cash and 0.0295 shares of common stock. Shareholders who elected to receive shares received, for each share of common stock they owned as of the Record Date, approximately 0.0345 shares of common stock. The number of shares issued was calculated based on the volume weighted average trading price of SLG's common stock between January 5-7, 2022 of $79.71 per share.
To mitigate the dilutive impact of the common stock issued in the special dividend, the Board of Directors also authorized a reverse stock split, which was effective after markets closed on January 21, 2022. On January 10, 2022, a committee of the Board of Directors calculated the ratio for the reverse stock split of our issued and outstanding shares of common stock as 1.03060-for-1. After the issuance of the dividend and the completion of the reverse stock split, the number of shares of our common stock outstanding was equivalent to the number of total shares outstanding on the Record Date (not including any issuances or repurchases that occurred following the Record Date, as well as any fractional shares that would have been issued but for which cash-in-lieu was paid). However, on a relative basis, some individual shareholders may have more shares of SLG’s common stock, and some individual shareholders may have fewer shares of our common stock, depending on their individual elections to receive cash or stock and as a result of the cash option being oversubscribed.
All share-related references and measurements including the number of shares outstanding, share prices, number of shares repurchased, earnings per share, dividends per share, and share-based compensation awards, have been retroactively adjusted to reflect the reverse stock split for all periods presented in this Quarterly Report on Form 10-Q.
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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
As of March 31, 2022, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:
  ConsolidatedUnconsolidatedTotal
LocationProperty
Type
Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)
Weighted Average Occupancy(1) (unaudited)
Commercial:
ManhattanOffice12 8,180,345 11 13,661,381 23 21,841,726 91.5 %
Retail(2)17,888 301,996 11 319,884 91.2 %
Development/Redevelopment(1)2,230,282 1,618,310 3,848,592 N/A
Fee Interest7,684 — — 7,684 N/A
21 10,436,199 22 15,581,687 43 26,017,886 91.5 %
SuburbanOffice862,800 — — 862,800 78.6 %
Total commercial properties28 11,298,999 22 15,581,687 50 26,880,686 91.0 %
Residential:
ManhattanResidential(2)222,632 445,934 668,566 87.9 %
Total portfolio30 11,521,631 28 16,027,621 58 27,549,252 91.0 %
(1)The weighted average occupancy for commercial properties represents the total occupied square footage divided by the total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by the total available units. Properties under construction are not included in the calculation of weighted average occupancy.
(2)As of March 31, 2022, we owned a building at 7 Dey / 185 Broadway that was comprised of approximately 50,206 square feet (unaudited) of retail space and approximately 140,382 square feet (unaudited) of residential space. For the purpose of this report, we have included this building in the number of retail properties we own. However, we have included only the retail square footage in the retail approximate square footage, and have listed the balance of the square footage as residential square footage.
As of March 31, 2022, we also manage one office building owned by a third party encompassing approximately 0.3 million square feet (unaudited), and held debt and preferred equity investments with a book value of $1.1 billion, excluding debt and preferred equity investments and other financing receivables totaling less than $0.1 billion that are included in balance sheet line items other than the Debt and preferred equity investments line item.
Partnership Agreement
In accordance with the partnership agreement of the Operating Partnership, or the Operating Partnership Agreement, we allocate all distributions and profits and losses in proportion to the percentage of ownership interests of the respective partners, subject to the priority distributions with respect to preferred units and special provisions that apply to Long Term Incentive Plan ("LTIP") Units. As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to minimize any Federal income or excise tax at the Company level. Under the Operating Partnership Agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of SL Green's common stock on a one-for-one basis.
Basis of Quarterly Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the financial position of the Company and the Operating Partnership at March 31, 2022 and the results of operations for the periods presented have been included. The operating results for the period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2021 of the Company and the Operating Partnership.
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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements as of that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
Subsequent Events
In April 2022, the Company closed on the sale of 1080 Amsterdam Avenue and its remaining interests in the Stonehenge portfolio for a gross sales price of $42.7 million and $1.0 million, respectively.
2. Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method. See Note 5, "Debt and Preferred Equity Investments" and Note 6, "Investments in Unconsolidated Joint Ventures." All significant intercompany balances and transactions have been eliminated.
We consolidate a VIE in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.
Investment in Commercial Real Estate Properties
We allocate the purchase price of real estate to land and building (inclusive of tenant improvements) and, if determined to be material, intangibles, such as the value of above- and below-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building (inclusive of tenant improvements) over their estimated useful lives, which generally range from 3 years to 40 years. We amortize the amount allocated to the above- and below-market leases over the remaining term of the associated lease, which generally range from 1 year to 15 years, and record it as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income. We amortize the amount allocated to the values associated with in-place leases over the expected term of the associated lease, which generally ranges from 1 year to 15 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period.
The Company classifies those leases under which the Company is the lessee at lease commencement as finance or operating leases. Leases qualify as finance leases if the lease transfers ownership of the asset at the end of the lease term, the lease grants an option to purchase the asset that we are reasonably certain to exercise, the lease term is for a major part of the remaining economic life of the asset, or the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. At lease commencement the Company records a lease liability which is measured as the present value of the lease payments and a right of use asset which is measured as the amount of the lease liability and any initial direct costs incurred. The Company applies a discount rate to determine the present value of the lease payments. If the rate implicit in the lease is known, the Company uses that rate. If the rate implicit in the lease is not known, the Company uses a discount rate reflective of the Company’s collateralized borrowing rate given the term of the lease. To determine the discount rate, the Company employs a third party specialist to develop an analysis based primarily on the observable borrowing rates of the Company, other REITs, and other corporate borrowers with long-term borrowings. On the consolidated statements of operations, operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense. When applicable, the Company combines the consideration for lease and non-lease components in the calculation of the value of the lease obligation and right-of-use asset.
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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the fair value of the property as calculated in accordance with Accounting Standards Codification, or ASC 820. We also evaluate our real estate properties for impairment when a property has been classified as held for sale. Real estate assets held for sale are valued at the lower of their carrying value or fair value less costs to sell and depreciation expense is no longer recorded.
For the three months ended March 31, 2022 and 2021, we recognized a reduction of rental revenue of ($0.1 million) and ($1.9 million), respectively, for the amortization of aggregate above-market leases in excess of below-market leases resulting from the allocation of the purchase price of the applicable properties.
The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of March 31, 2022 and December 31, 2021 (in thousands):
March 31, 2022December 31, 2021
Identified intangible assets (included in other assets):
Gross amount$199,722 $199,722 
Accumulated amortization(184,129)(182,643)
Net (1)
$15,593 $17,079 
Identified intangible liabilities (included in deferred revenue):
Gross amount$212,767 $212,767 
Accumulated amortization(210,454)(210,262)
Net (1)
$2,313 $2,505 
(1)As of March 31, 2022, no net intangible assets and no net intangible liabilities were reclassified to assets held for sale or liabilities related to assets held for sale. As of December 31, 2021, $1.8 million of net intangible assets and no net intangible liabilities were reclassified to assets held for sale and liabilities related to assets held for sale.
Cash and Cash Equivalents
We consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.
Restricted Cash
Restricted cash primarily consists of security deposits held on behalf of our tenants, interest reserves, as well as capital improvement and real estate tax escrows required under certain loan agreements.
Fair Value Measurements
See Note 16, "Fair Value Measurements."
Investment in Marketable Securities
At acquisition, we designate a debt security as held-to-maturity, available-for-sale, or trading. As of March 31, 2022, we did not have any debt securities designated as held-to-maturity or trading. We account for our available-for-sale securities at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive income or loss. The cost of marketable securities sold and the amount reclassified out of accumulated other comprehensive income into earnings is determined using the specific identification method. Credit losses are recognized in accordance with ASC 326. We account for our equity marketable securities at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported in net income.
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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
As of March 31, 2022 and December 31, 2021, we held the following marketable securities (in thousands):
March 31, 2022December 31, 2021
Commercial mortgage-backed securities$22,353 $24,146 
Total marketable securities available-for-sale$22,353 $24,146 
Equity marketable securities$10,536 $10,606 
Total investment in marketable securities$32,889 $34,752 
The cost basis of the commercial mortgage-backed securities was $23.0 million as of March 31, 2022 and as of December 31, 2021. These securities mature at various times through 2035. All securities were in an unrealized gain position as of March 31, 2022 and December 31, 2021 except for one security, which had an unrealized loss of $2.1 million and a fair market value of $5.7 million as of March 31, 2022, and an unrealized loss of $0.6 million and a fair value of $7.2 million as of December 31, 2021. This marketable security was in a continuous unrealized loss position for more than 12 months as of March 31, 2022 and December 31, 2021. We do not intend to sell these securities, and it is more likely than not that we will not be required to sell the investments before recovery of their amortized cost bases.
We held equity marketable securities as of March 31, 2022 and December 31, 2021. We recognized $0.1 million of unrealized loss for the three months ended March 31, 2022. We did not hold any equity marketable securities during the three months ended March 31, 2021.
We did not dispose of any debt or equity marketable securities during the three months ended March 31, 2022. During the three months ended March 31, 2021, we received aggregate net proceeds of $5.0 million from the repayment of one debt marketable security.
Investments in Unconsolidated Joint Ventures
We assess our investments in unconsolidated joint ventures for recoverability and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on each joint ventures' actual and projected cash flows. We do not believe that the values of any of our equity investments were impaired at March 31, 2022.
Deferred Lease Costs
Deferred lease costs consist of incremental fees and direct costs that would not have been incurred if the lease had not been obtained and are amortized on a straight-line basis over the related lease term.
Lease Classification
Lease classification for leases under which the Company is the lessor is evaluated at lease commencement and leases not classified as sales-type leases or direct financing leases are classified as operating leases. Leases qualify as sales-type leases if the contract includes either transfer of ownership clauses, certain purchase options, a lease term representing a major part of the economic life of the asset, or the present value of the lease payments and residual guarantees provided by the lessee exceeds substantially all of the fair value of the asset. Additionally, leasing an asset so specialized that it is not deemed to have any value to the Company at the end of the lease term may also result in classification as a sales-type lease. Leases qualify as direct financing leases when the present value of the lease payments and residual value guarantees provided by the lessee and unrelated third parties exceeds substantially all of the fair value of the asset and collection of the payments is probable.
Revenue Recognition
Rental revenue for operating leases is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the leased space is available for its intended use by the lessee.
To determine whether the leased space is available for its intended use by the lessee, management evaluates whether we or the tenant are the owner of tenant improvements for accounting purposes. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the consolidated balance sheets.
In addition to base rent, our tenants also generally will pay variable rent, which represents their pro rata share of increases in real estate taxes and certain operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in certain building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) are typically provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours. These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year.
Rental revenue is recognized if collectability is probable. If collectability of substantially all of the lease payments is assessed as not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current-period adjustment to rental revenue. A subsequent change in the assessment of collectability to probable may result in a current-period adjustment to rental revenue for any difference between the rental revenue that would have been recognized if collectability had always been assessed as probable and the rental revenue recognized to date.
The Company provides its tenants with certain customary services for lease contracts such as common area maintenance and general security. We have elected to combine the non-lease components with the lease components of our operating lease agreements and account for them as a single lease component in accordance with ASC 842.
We record a gain or loss on sale of real estate assets when we no longer have a controlling financial interest in the entity owning the real estate, a contract exists with a third party and that third party has control of the assets acquired.
Investment income on debt and preferred equity investments is accrued based on the contractual terms of the instruments and when it is deemed collectible. Some debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest is collectible. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.
Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as an adjustment to interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cash flows through the expected maturity date of the related investment. If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt investments acquired at a discount for credit quality, the difference between contractual cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which is expected, are also recognized over the term of the loan as an adjustment to yield.
We consider a debt and preferred equity investment to be past due when amounts contractually due have not been paid. Debt and preferred equity investments are placed on a non-accrual status at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of interest income becomes doubtful. Interest income recognition is resumed on any debt or preferred equity investment that is on non-accrual status when such debt or preferred equity investment becomes contractually current and performance is demonstrated to be resumed.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
We may syndicate a portion of the loans that we originate or sell the loans individually. When a transaction meets the criteria for sale accounting, we recognize gain or loss based on the difference between the sales price and the carrying value of the loan sold. Any related unamortized deferred origination fees, original issue discounts, loan origination costs, discounts or premiums at the time of sale are recognized as an adjustment to the gain or loss on sale, which is included in investment income on the consolidated statement of operations. Any fees received at the time of sale or syndication are recognized as part of investment income.
Asset management fees are recognized on a straight-line basis over the term of the asset management agreement.
Debt and Preferred Equity Investments
Debt and preferred equity investments are presented at the net amount expected to be collected in accordance with ASC 326. An allowance for loan losses is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected through the expected maturity date of such investments. The expense for loan loss and other investment reserves is the charge to earnings to adjust the allowance for loan losses to the appropriate level. Amounts are written off from the allowance when we de-recognize the related investment either as a result of a sale of the investment or acquisition of equity interests in the collateral.
The Company evaluates the amount expected to be collected based on current market and economic conditions, historical loss information, and reasonable and supportable forecasts. The Company's assumptions are derived from both internal data and external data which may include, among others, governmental economic projections for the New York City Metropolitan area, public data on recent transactions and filings for securitized debt instruments. This information is aggregated by asset class and adjusted for duration. Based on these inputs, loans are evaluated at the individual asset level. In certain instances, we may also use a probability-weighted model that considers the likelihood of multiple outcomes and the amount expected to be collected for each outcome.
The evaluation of the possible credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor requires significant judgment, which include both asset level and market assumptions over the relevant time period.
In addition, quarterly, the Company assigns each loan a risk rating. Based on a 3-point scale, loans are rated “1” through “3,” from lower risk to higher risk, which ratings are defined as follows: 1 - Low Risk Assets - Low probability of loss, 2 - Watch List Assets - Higher potential for loss, 3 - High Risk Assets - Loss more likely than not. Loans with risk ratings of 2 or above are evaluated to determine whether the expected risk of loss is appropriately captured through the combination of our expectations of current conditions, historical loss information and supportable forecasts described above or whether risk characteristics specific to the loan warrant the use of a probability-weighted model.
Financing investments that are classified as held for sale are carried at the expected amount to be collected or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its expected amount to be collected.
Other financing receivables that are included in balance sheet line items other than the Debt and preferred equity investments line are also measured at the net amount expected to be collected.
Accrued interest receivable amounts related to these debt and preferred equity investment and other financing receivables are recorded at the net amount expected to be collected within Other assets in the consolidated balance sheets. Accrued interest receivables that are written off are recognized as an expense in loan loss and other investment reserves.
Income Taxes
SL Green is taxed as a REIT under Section 856(c) of the Code. As a REIT, SL Green generally is not subject to Federal income tax. To maintain its qualification as a REIT, SL Green must distribute at least 90% of its REIT taxable income to its stockholders and meet certain other requirements. If SL Green fails to qualify as a REIT in any taxable year, SL Green will be subject to Federal income tax on its taxable income at regular corporate rates. SL Green may also be subject to certain state, local and franchise taxes. Under certain circumstances, Federal income and excise taxes may be due on its undistributed taxable income.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
The Operating Partnership is a partnership and, as a result, all income and losses of the partnership are allocated to the partners for inclusion in their respective income tax returns. The only provision for income taxes included in the consolidated statements of operations relates to the Operating Partnership’s consolidated taxable REIT subsidiaries. The Operating Partnership may also be subject to certain state, local and franchise taxes.
We have elected, and may elect in the future, to treat certain of our corporate subsidiaries as taxable REIT subsidiaries, or TRSs. In general, TRSs may perform non-customary services for the tenants of the Company, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business. The TRSs generate income, resulting in Federal and state income tax liability for these entities.
We recorded Federal, state and local tax provisions totaling $0.9 million and $0.7 million during the three months ended March 31, 2022 and 2021, respectively.
We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Concentrations of Credit Risk
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable. We place our cash investments with high quality financial institutions. The collateral securing our debt and preferred equity investments is located in New York City. See Note 5, "Debt and Preferred Equity Investments."
We perform initial and ongoing evaluations of the credit quality of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a potential source of funds to offset the economic costs associated with lost revenue from that tenant and the costs associated with re-tenanting a space. The properties in our real estate portfolio are located in the New York metropolitan area, principally in Manhattan. Our tenants operate in various industries. Other than one tenant, Viacom CBS Inc., which accounted for 6.3% of our share of annualized cash rent as of March 31, 2022, no other tenant in our portfolio accounted for more than 5.0% of our share of annualized cash rent, including our share of joint venture annualized cash rent, as of March 31, 2022.
For the three months ended March 31, 2022, the following properties contributed more than 5.0% of our annualized cash rent from office properties, including our share of annualized cash rent from joint venture office properties:
PropertyThree months ended March 31, 2022
One Vanderbilt Avenue14.3%
11 Madison Avenue9.3%
420 Lexington Ave7.0%
1185 Avenue of the Americas7.0%
1515 Broadway6.9%
280 Park Avenue 5.8%
Reclassification
Certain prior year balances have been reclassified to conform to our current year presentation.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Accounting Standards Updates
In March 2022, the FASB issued ASU No. 2022-02 Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the troubled debt restructuring recognition and measurement guidance and, instead, requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulties. Additionally, ASU 2022-02 requires an entity to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for entities in accordance with Subtopic 326-20, which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for reporting periods beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2022-02 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.
In July 2021, the FASB issued ASU No. 2021-05 Leases (Topic 842) Lessors - Certain Leases with Variable Lease Payments. ASU 2021-05 amends the lease classification requirements for lessors when classifying and accounting for a lease with variable lease payments that do not depend on a reference rate index or a rate. The update provides criteria, that if met, the lease would be classified and accounted for as an operating lease. ASU 2021-05 is effective for reporting periods beginning after December 15, 2021. The Company adopted this guidance on January 1, 2022 and it did not have a material impact on the Company's consolidated financial statements.
In August 2020, the FASB issued Accounting Standard Update, or "ASU," No. 2020-06 Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for reporting periods beginning after December 15, 2021. The Company adopted this guidance on January 1, 2022 and it did not have a material impact on the Company's consolidated financial statements.
In March 2020, the FASB issued ASU No. 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting and then in January 2021, the FASB issued ASU No. 2021-01. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
3. Property Acquisitions
During the three months ended March 31, 2022, we did not acquire any properties from a third party.
4. Properties Held for Sale and Property Dispositions
Properties Held for Sale
As of March 31, 2022, 1080 Amsterdam Avenue was classified as held for sale as we entered into an agreement to sell the property for total consideration of $42.7 million. The sale closed in the second quarter of 2022.
Property Dispositions
The following table summarizes the properties disposed of during the three months ended March 31, 2022:
PropertyDisposition DateProperty TypeApproximate Square Feet
Sales Price
(in millions)
Gain (Loss) (in millions)
707 Eleventh AvenueFebruary 2022Fee Interest159,720 $95.0 $(0.8)
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
5. Debt and Preferred Equity Investments
Below is a summary of the activity in our debt and preferred equity investments for the three months ended March 31, 2022 and the twelve months ended December 31, 2021 (in thousands):
March 31, 2022December 31, 2021
Balance at beginning of year (1)
$1,088,723 $1,076,542 
Debt investment originations/fundings/accretion (2)
16,615 193,824 
Preferred equity investment originations/accretion (2)
8,937 13,220 
Redemptions/sales/syndications/equity ownership/amortization (3)
(6,405)(201,446)
Net change in loan loss reserves 6,583 
Balance at end of period (1)
$1,107,870 $1,088,723 
(1)Net of unamortized fees, discounts, and premiums.
(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)Certain participations in debt investments that were sold or syndicated, but did not meet the conditions for sale accounting, are included in Other assets and Other liabilities on the consolidated balance sheets.
Below is a summary of our debt and preferred equity investments as of March 31, 2022 (dollars in thousands):
Floating RateFixed RateTotal Carrying ValueSenior FinancingWeighted Average Yield at End of Period
Maturity (1)
TypeCarrying ValueFace ValueInterest RateCarrying ValueFace ValueInterest Rate
Senior Mortgage Debt$26,088 $26,233 
L + 3.50%
$73,000 $73,000 
3.00%
$99,088 $ 4.25%2022 - 2023
Mezzanine Debt276,040 276,670 
L + 4.95% - 12.57%
450,799 459,865 
2.90% - 14.30%
726,839 4,700,426 6.98% 2022 - 2029
Preferred Equity  281,943 282,403 
6.50% - 11.00%
281,943 1,962,750 9.64% 2022 - 2027
Balance at end of period$302,128 $302,903 $805,742 $815,268 $1,107,870 $6,663,176 
(1)Excludes available extension options to the extent they have not been exercised as of the date of this filing.
The following table is a roll forward of our total allowance for loan losses for the three months ended March 31, 2022 and the twelve months ended December 31, 2021 (in thousands):
March 31, 2022December 31, 2021
Balance at beginning of year$6,630 $13,213 
Write-offs charged against the allowance (6,583)
Balance at end of period (1)
$6,630 $6,630 
(1)As of March 31, 2022, all financing receivables on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $225.4 million.

As of March 31, 2022 and December 31, 2021, all debt and preferred equity investments were performing in accordance with their respective terms, with the exception of two investments with a carrying value, net of reserves, of $223.1 million and $6.8 million, as discussed in the Debt Investments and Preferred Equity Investments tables further below.
No other financing receivables were 90 days past due as of March 31, 2022 and December 31, 2021.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
The following table sets forth the carrying value of our debt and preferred equity investment portfolio by risk rating as of March 31, 2022 and December 31, 2021 (dollars in thousands):
Risk RatingMarch 31, 2022December 31, 2021
1 - Low Risk Assets - Low probability of loss
$517,330 $644,489 
2 - Watch List Assets - Higher potential for loss
583,650 437,344 
3 - High Risk Assets - Loss more likely than not6,890 6,890 
$1,107,870 $1,088,723 
The following table sets forth the carrying value of our debt and preferred equity investment portfolio by year of origination and risk rating as of March 31, 2022 (dollars in thousands):
As of March 31, 2022
Risk Rating
2022(1)
2021(1)
2020(1)
Prior(1)
Total
1 - Low Risk Assets - Low probability of loss
$— $142,264 $153,055 $222,011 $517,330 
2 - Watch List Assets - Higher potential for loss
— — 135,157 448,493 583,650 
3 - High Risk Assets - Loss more likely than not
— — — 6,890 6,890 
$— $142,264 $288,212 $677,394 $1,107,870 
(1)Year in which the investment was originated or acquired by us or in which a material modification occurred.
We have determined that we have one portfolio segment of financing receivables as of March 31, 2022 and December 31, 2021 comprised of commercial real estate which is primarily recorded in debt and preferred equity investments.
Included in Other assets is an additional amount of financing receivables representing loans to joint venture partners totaling $10.4 million and $10.5 million as of March 31, 2022 and December 31, 2021, respectively. The Company recorded no provisions for loan losses related to these financing receivables for the three months ended March 31, 2022 and 2021. All of these loans have a risk rating of 2 and were performing in accordance with their respective terms.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Debt Investments
    As of March 31, 2022 and December 31, 2021, we held the following debt investments with an aggregate weighted average current yield of 6.65% as of March 31, 2022 (dollars in thousands):
Loan TypeMarch 31, 2022
Future Funding
Obligations
March 31, 2022 Senior
Financing
March 31, 2022
Carrying Value (1)
December 31, 2021
Carrying Value
(1)
Maturity
Date
(2)
Fixed Rate Investments:
Mezzanine Loan$ $280,000 $44,182 $43,521 August 2022
Mortgage Loan  73,000 73,000 April 2023
Mezzanine Loan (3)
 382,473 225,367 225,367 June 2023
Mezzanine Loan 276,885 69,264 66,873 June 2023
Mezzanine Loan (4a)(5)
 105,000 13,366 13,366 June 2024
Mezzanine Loan 95,000 30,000 30,000 January 2025
Mezzanine Loan (6)
 1,712,750 55,250 55,250 June 2027
Mezzanine Loan 85,000 20,000 20,000 December 2029
Total fixed rate$ $2,937,108 $530,429 $527,377  
Floating Rate Investments:
Mezzanine Loan$ $275,000 $49,999 $49,998 April 2023
Mezzanine Loan4,624 181,536 37,824 37,511 July 2022
Mezzanine Loan (4b)(7)
 1,115,000 135,157 133,735 April 2022
Mezzanine Loan3,761 54,000 8,238 8,050 May 2022
Mortgage and Mezzanine Loan18,142  40,161 34,874 December 2022
Mezzanine Loan33,685 137,783 30,749 30,802 May 2023
Total floating rate$60,212 $1,763,319 $302,128 $294,970  
Allowance for loan loss   (6,630)(6,630)
Total$60,212 $4,700,427 $825,927 $815,717 
(1)Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2)Represents contractual maturity, excluding any extension options to the extent they have not been exercised as of the date of this filing.
(3)This loan was put on non-accrual in July 2020 and remains on non-accrual as of March 31, 2022. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower.
(4)Carrying value is net of the following amounts that were sold or syndicated, which are included in Other assets and Other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $12.0 million, and (b) $0.4 million.
(5)This loan went into default and was put on non-accrual in June 2020 and remains on non-accrual as of March 31, 2022. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower. Additionally, we determined the borrower entity to be a VIE, in which we are not the primary beneficiary.
(6)The borrower under this mezzanine loan is an entity affiliated with HNA, which owns an equity interest in 245 Park Avenue. The borrower filed for bankruptcy protection on October 31, 2021, which the Company contested.
(7)In the second quarter of 2022, this loan was extended for two months to May 2022.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Preferred Equity Investments
As of March 31, 2022 and December 31, 2021, we held the following preferred equity investments with an aggregate weighted average current yield of 9.64% as of March 31, 2022 (dollars in thousands):
TypeMarch 31, 2022
Future Funding
Obligations
March 31, 2022 Senior
Financing
March 31, 2022
Carrying Value (1)
December 31, 2021
Carrying Value
(1)
Mandatory Redemption (2)
Preferred Equity (3)
$ $1,712,750 $167,875 $160,772 June 2022
Preferred Equity 250,000 114,068 112,234 February 2027
Total Preferred Equity$ $1,962,750 $281,943 $273,006  
Allowance for loan loss    — 
Total$ $1,962,750 $281,943 $273,006 
(1)Carrying value is net of deferred origination fees.
(2)Represents contractual redemption, excluding any unexercised extension options.
(3)On October 31, 2021, HNA, through an affiliated entity, filed for Chapter 11 bankruptcy protection on account of its investment in 245 Park Avenue, together with another asset in Chicago. The Company contested the filing, on the basis that the filing was done in bad faith and in violation of HNA's agreements with the Company, and is currently appealing the Bankruptcy court's ruling upholding the filing by HNA.

6. Investments in Unconsolidated Joint Ventures
We have investments in several real estate joint ventures with various partners. As of March 31, 2022, the book value of these investments was $3.0 billion, net of investments with negative book values totaling $105.6 million for which we have an implicit commitment to fund future capital needs.
As of March 31, 2022 and December 31, 2021, 800 Third Avenue, 21 East 66th Street, and certain properties within the Stonehenge Portfolio are VIEs in which we are not the primary beneficiary. Our net equity investment in these VIEs was $86.2 million and $85.6 million as of March 31, 2022 and December 31, 2021, respectively. Our maximum loss is limited to the amount of our equity investment in these VIEs. See the "Principles of Consolidation" section of Note 2, "Significant Accounting Policies." All other investments below are voting interest entities. As we do not control the joint ventures listed below, we account for them under the equity method of accounting.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
The table below provides general information on each of our joint ventures as of March 31, 2022:
PropertyPartner
Ownership
Interest
(1)
Economic
Interest
(1)
Unaudited Approximate Square Feet
100 Park AvenuePrudential Real Estate Investors49.90%49.90%834,000 
717 Fifth AvenueWharton Properties/Private Investor10.92%10.92%119,500 
800 Third AvenuePrivate Investors60.52%60.52%526,000 
919 Third AvenueNew York State Teacher's Retirement System51.00%51.00%1,454,000 
11 West 34th StreetPrivate Investor/Wharton Properties30.00%30.00%17,150 
280 Park AvenueVornado Realty Trust50.00%50.00%1,219,158 
1552-1560 Broadway (2)
Wharton Properties50.00%50.00%57,718 
10 East 53rd StreetCanadian Pension Plan Investment Board55.00%55.00%354,300 
21 East 66th Street (3)
Private Investors32.28%32.28%13,069 
650 Fifth Avenue (4)
Wharton Properties50.00%50.00%69,214 
121 Greene StreetWharton Properties50.00%50.00%7,131 
Stonehenge Portfolio (5)
VariousVariousVarious1,439,016 
11 Madison AvenuePGIM Real Estate60.00%60.00%2,314,000 
One Vanderbilt AvenueNational Pension Service of Korea/Hines Interest LP71.01%71.01%1,657,198 
Worldwide PlazaRXR Realty / New York REIT24.95%24.95%2,048,725 
1515 BroadwayAllianz Real Estate of America56.87%56.87%1,750,000 
2 Herald SquareIsraeli Institutional Investor51.00%51.00%369,000 
115 Spring StreetPrivate Investor51.00%51.00%5,218 
15 Beekman (6)
A fund managed by Meritz Alternative Investment Management20.00%20.00%221,884 
85 Fifth AvenueWells Fargo36.27%36.27%12,946 
One Madison Avenue (7)
National Pension Service of Korea/Hines Interest LP/International Investor25.50%25.50%1,048,700 
220 East 42nd StreetA fund managed by Meritz Alternative Investment Management51.00%51.00%1,135,000 
(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of March 31, 2022. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)The joint venture also owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway.
(3)We hold a 32.28% interest in three retail units and one residential unit at the property and a 16.14% interest in two residential units at the property.
(4)The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.
(5)The sale of this investment closed in April 2022 for a gross consideration of $1.0 million.
(6)In 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.
(7)In 2020, the Company admitted partners to the One Madison Avenue development project, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of our remaining 50.5% interest. We recorded our investment at fair value, which resulted in the recognition of a fair value adjustment of $187.5 million in 2020. The fair value of our investment was determined by the terms of the joint venture agreement governing the capitalization of the project. The partners have committed aggregate equity to the project totaling no less than $492.2 million and their ownership interest in the joint venture is based on their capital contributions, up to an aggregate maximum of 49.5%. As of March 31, 2022, the total of the two partners' ownership interests based on equity contributed was 39.2%. In 2021, the Company admitted an additional partner to the development project for a committed aggregate equity investment totaling no less than $259.3 million. The partner's indirect ownership interest in the joint venture is based on it's capital contributions, up to an aggregate maximum of 25.0%. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes and is included in Other liabilities in our consolidated balance sheets at March 31, 2022 and December 31, 2021.

Disposition of Joint Venture Interests or Properties
We did not dispose of any investments in unconsolidated joint ventures during the three months ended March 31, 2022.



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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)

Joint Venture Mortgages and Other Loans Payable
We generally finance our joint ventures with non-recourse debt. In certain cases we may provide guarantees or master leases, which terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases as of March 31, 2022 and December 31, 2021, respectively, are as follows (dollars in thousands):
Property
Economic
Interest
(1)
Current Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
March 31, 2022December 31, 2021
Fixed Rate Debt:
717 Fifth Avenue (mortgage)10.92 %July 2022July 20224.45 %$300,000 $300,000 
717 Fifth Avenue (mezzanine)10.92 %July 2022July 20225.50 %355,328 355,328 
650 Fifth Avenue (mortgage)50.00 %October 2022October 20224.46 %210,000 210,000 
650 Fifth Avenue (mezzanine)50.00 %October 2022October 20225.45 %65,000 65,000 
21 East 66th Street32.28 %April 2023April 20283.60 %12,000 12,000 
919 Third Avenue51.00 %June 2023June 20235.12 %500,000 500,000 
1515 Broadway56.87 %March 2025March 20253.93 %796,929 801,845 
11 Madison Avenue60.00 %September 2025September 20253.84 %1,400,000 1,400,000 
800 Third Avenue60.52 %February 2026February 20263.37 %177,000 177,000 
Worldwide Plaza24.95 %November 2027November 20273.98 %1,200,000 1,200,000 
One Vanderbilt Avenue71.01 %July 2031July 20312.95 %3,000,000 3,000,000 
Stonehenge Portfolio (4)
VariousVariousVarious3.50 %194,558 195,493 
Total fixed rate debt $8,210,815 $8,216,666 
Floating Rate Debt:
1552 Broadway 50.00 %October 2022October 2022L+2.65 %$193,132 $193,132 
280 Park Avenue 50.00 %September 2022September 2024L+1.73 %1,200,000 1,200,000 
121 Greene Street50.00 %November 2022November 2022L+2.00 %13,056 13,228 
2 Herald Square51.00 %November 2022November 2023L+1.95 %199,664 200,989 
11 West 34th Street30.00 %January 2023January 2023L+1.45 %23,000 23,000 
220 East 42nd Street51.00 %June 2023June 2025L+2.75 %510,000 510,000 
115 Spring Street51.00 %September 2023September 2023L+3.40 %65,550 65,550 
100 Park Avenue49.90 %December 2023December 2025L+2.25 %360,000 360,000 
15 Beekman (5)
20.00 %January 2024July 2025L+1.50 %50,805 43,566 
10 East 53rd Street55.00 %February 2025February 2025L+1.35 %220,000 220,000 
One Madison Avenue (6)
25.50 %November 2025November 2026L+3.35 %193,184 169,629 
21 East 66th Street32.28 %June 2033June 2033T+2.75 %620 632 
Total floating rate debt$3,029,011 $2,999,726 
Total joint venture mortgages and other loans payable$11,239,826 $11,216,392 
Deferred financing costs, net(121,491)(130,516)
Total joint venture mortgages and other loans payable, net$11,118,335 $11,085,876 
(1)Economic interest represents the Company's interests in the joint venture as of March 31, 2022. Changes in ownership or economic interests, if any, within the current year are disclosed in the notes to the investment in unconsolidated joint ventures table above.
(2)Reflects exercise of all available options. The ability to exercise extension options may be subject to certain conditions, including meeting tests based on the operating performance of the property.
(3)Interest rates as of March 31, 2022, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR ("L") or 1-year Treasury ("T").
(4)Comprised of three mortgages totaling $131.6 million that mature in April 2028 and two mortgages totaling $63.0 million that mature in July 2029. The sale of this investment closed in April 2022.
(5)This loan is a $125.0 million construction facility. Advances under the loan are subject to costs incurred.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
(6)The loan is a $1.25 billion construction facility with an initial term of five years with one, one year extension option. Advances under the loan are subject to costs incurred. In conjunction with the loan, we provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $6.2 million and $2.4 million from these services, net of our ownership share of the joint ventures, for the three months ended March 31, 2022 and 2021, respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.
The combined balance sheets for the unconsolidated joint ventures, at March 31, 2022 and December 31, 2021 are as follows (in thousands):
March 31, 2022December 31, 2021
Assets (1)
Commercial real estate property, net$14,785,274 $14,763,874 
Cash and restricted cash751,944 768,510 
Tenant and other receivables, related party receivables, and deferred rents receivable562,483 533,455 
Other assets1,796,952 1,776,030 
Total assets$17,896,653 $17,841,869 
Liabilities and equity (1)
Mortgages and other loans payable, net$11,118,335 $11,085,876 
Deferred revenue1,141,181 1,158,242 
Lease liabilities999,553 980,595 
Other liabilities368,957 352,499 
Equity4,268,627 4,264,657 
Total liabilities and equity$17,896,653 $17,841,869 
Company's investments in unconsolidated joint ventures$3,000,986 $2,997,934 
(1)At March 31, 2022, $550.4 million of net unamortized basis differences between the amount at which our investments are carried and our share of equity in net assets of the underlying property will be amortized through equity in net income (loss) from unconsolidated joint ventures over the remaining life of the underlying items having given rise to the differences.
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three months ended March 31, 2022 and 2021, are as follows (in thousands):
Three Months Ended March 31,
20222021
Total revenues$335,266 $301,541 
Operating expenses59,914 46,233 
Real estate taxes60,722 54,592 
Operating lease rent6,268 5,644 
Interest expense, net of interest income94,913 78,749 
Amortization of deferred financing costs6,757 6,384 
Depreciation and amortization112,713 114,879 
Total expenses341,287 306,481 
Net loss before gain on sale$(6,021)$(4,940)
Company's equity in net loss from unconsolidated joint ventures$(4,715)$(2,864)
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
7. Deferred Costs
Deferred costs as of March 31, 2022 and December 31, 2021 consisted of the following (in thousands):
March 31, 2022December 31, 2021
Deferred leasing costs$404,778 $400,419 
Less: accumulated amortization
(282,484)(275,924)
Deferred costs, net$122,294 $124,495 
8. Mortgages and Other Loans Payable
The mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments as of March 31, 2022 and December 31, 2021, respectively, were as follows (dollars in thousands):
PropertyCurrent Maturity
Date
Final Maturity Date (1)
Interest
Rate (2)
March 31, 2022December 31, 2021
Fixed Rate Debt:
100 Church StreetJuly 2022July 20224.68%$198,980 $200,212 
420 Lexington AvenueOctober 2024October 20403.99%287,243 288,660 
Landmark SquareJanuary 2027January 20274.90%100,000 100,000 
485 Lexington AvenueFebruary 2027February 20274.25%450,000 450,000 
1080 Amsterdam (3)
February 2027February 20273.59%34,348 34,537 
Total fixed rate debt$1,070,571 $1,073,409 
Floating Rate Debt:
7 Dey / 185 Broadway (4)
November 2022November 2023L+2.85%$203,478 $198,169 
719 Seventh AvenueSeptember 2023September 2023L+1.20%50,000 50,000 
690 Madison AvenueJuly 2024July 2025L+1.50%60,000 60,000 
609 Fifth AvenueMarch 2022March 2025L+—% 52,882 
2017 Master Repurchase Agreement (5)
 — 
Total floating rate debt$313,478 $361,051 
Total fixed rate and floating rate debt$1,384,049 $1,434,460 
Mortgages reclassed to liabilities related to assets held for sale(34,348)(34,537)
Total mortgages and other loans payable$1,349,701 $1,399,923 
Deferred financing costs, net of amortization(4,926)(5,537)
Total mortgages and other loans payable, net$1,344,775 $1,394,386 
(1)Reflects exercise of all available options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(2)Interest rate as of March 31, 2022, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(3)The loan is comprised of a $33.4 million mortgage loan and $0.9 million mezzanine loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of the fifth year. The Company closed on the sale of this investment in April 2022.
(4)This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three year term with two one year extension options. In October 2021, an extension option was exercised, and the maturity date of this loan was extended by one year. Advances under the loan are subject to incurred costs and funded equity requirements.
(5)In June 2021, we exercised a one year extension option which extended the maturity date to June 2022. As of March 31, 2022, there was no outstanding balance on the $400 million facility.
As of March 31, 2022 and December 31, 2021, the gross book value of the properties collateralizing the mortgages and other loans payable was approximately $1.9 billion and $2.1 billion, respectively.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Master Repurchase Agreement
The Company entered into a Master Repurchase Agreement, or MRA, known as the 2017 MRA, which provides us with the ability to sell certain mortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to collateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity. As of March 31, 2022, there have been no margin calls on the 2017 MRA.
In April 2018, we increased the maximum facility capacity from $300.0 million to $400.0 million. The facility bears interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate and is scheduled to mature in June 2022. As of March 31, 2022, the facility had no outstanding balance.
9. Corporate Indebtedness
2021 Credit Facility
In December 2021, we entered into an amended and restated credit facility, referred to as the 2021 credit facility, that was previously amended by the Company in November 2017, or the 2017 credit facility, and was originally entered into by the Company in November 2012, or the 2012 credit facility. As of March 31, 2022, the 2021 credit facility consisted of a $1.25 billion revolving credit facility, a $1.05 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of May 15, 2026, May 15, 2027, and November 21, 2024, respectively. The revolving credit facility has two six-month, as-of-right extension options to May 15, 2027. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.
As of March 31, 2022, the 2021 credit facility bore interest at a spread over adjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) 72.5 basis points to 140 basis points for loans under the revolving credit facility, (ii) 80 basis points to 160 basis points for loans under Term Loan A, and (iii) 85 basis points to 165 basis points for loans under Term Loan B, in each case based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category.
As of March 31, 2022, the applicable spread over adjusted Term SOFR plus 10 basis points was 105 basis points for the revolving credit facility, 120 basis points for Term Loan A, and 125 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of March 31, 2022, the facility fee was 20 basis points.
As of March 31, 2022, we had $2.0 million of outstanding letters of credit, $500.0 million drawn under the revolving credit facility and $1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $0.75 billion under the 2021 credit facility. As of March 31, 2022 and December 31, 2021, the revolving credit facility had a carrying value of $492.0 million and $381.3 million, respectively, net of deferred financing costs. As of March 31, 2022 and December 31, 2021, the term loan facilities had a carrying value of $1.2 billion and $1.2 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2021 credit facility. The 2021 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Senior Unsecured Notes
The following table sets forth our senior unsecured notes and other related disclosures as of March 31, 2022 and December 31, 2021, respectively, by scheduled maturity date (dollars in thousands):
IssuanceMarch 31, 2022
Unpaid
Principal
Balance
March 31, 2022
Accreted
Balance
December 31,
2021
Accreted
Balance
Interest
Rate (1)
Initial Term
(in Years)
Maturity Date
October 5, 2017 (2)
$500,000 $499,940 $499,913 3.25 %5October 2022
November 15, 2012 (3)
300,000 300,728 301,002 4.50 %10December 2022
December 17, 2015 (4)
100,000 100,000 100,000 4.27 %10December 2025
$900,000 $900,668 $900,915 
Deferred financing costs, net— (1,127)(1,607)
$900,000 $899,541 $899,308 
(1)Interest rate as of March 31, 2022, taking into account interest rate hedges in effect during the period.
(2)Issued by the Operating Partnership with the Company as the guarantor.
(3)In October 2017, the Company and the Operating Partnership as co-obligors issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334% of par.
(4)Issued by the Company and the Operating Partnership as co-obligors.
Restrictive Covenants
The terms of the 2021 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that we will not, during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of March 31, 2022 and December 31, 2021, we were in compliance with all such covenants.
Junior Subordinated Deferrable Interest Debentures
In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments. The Trust preferred securities are redeemable at the option of the Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense.
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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Principal Maturities
Combined aggregate principal maturities of mortgages and other loans payable, the 2021 credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of March 31, 2022, including as-of-right extension options, were as follows (in thousands):
Scheduled
Amortization
PrincipalRevolving
Credit
Facility
Unsecured Term LoansTrust
Preferred
Securities
Senior
Unsecured
Notes
TotalJoint
Venture
Debt
Remaining 2022$5,962 $401,261 $— $— $— $800,000 $1,207,223 $422,442 
20236,640 50,000 — — — — 56,640 750,696 
20245,328 332,749 — 200,000 — — 538,077 626,671 
2025873 — — — — 100,000 100,873 1,431,734 
2026904 — 500,000 — — — 500,904 107,230 
Thereafter75 580,257 — 1,050,000 100,000 — 1,730,332 2,435,913 
$19,782 $1,364,267 $500,000 $1,250,000 $100,000 $900,000 $4,134,049 $5,774,686 
Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):
Three Months Ended March 31,
20222021
Interest expense before capitalized interest$32,052 $39,868 
Interest on financing leases1,237 1,492 
Interest capitalized(17,941)(17,583)
Interest income(278)(389)
Interest expense, net$15,070 $23,388 
10. Related Party Transactions
Cleaning/ Security/ Messenger and Restoration Services
Alliance Building Services, or Alliance, and its affiliates, which provide services to certain properties owned by us, are partially owned by Gary Green, a son of Stephen L. Green, who serves as a member and as the chairman emeritus of our Board of Directors. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide cleaning, extermination, security, messenger, and restoration services, respectively. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.
Income earned from the profit participation, which is included in Other income on the consolidated statements of operations, was $0.7 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively.
We also recorded expenses, inclusive of capitalized expenses, of $4.3 million and $2.3 million for the three months ended March 31, 2022 and 2021, respectively, for these services (excluding services provided directly to tenants).
Management Fees
S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. We received management fees from this entity of $0.2 million and $0.1 million for the three months ended March 31, 2022 and 2021, respectively.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
One Vanderbilt Avenue Investment
In December 2016, we entered into agreements with entities owned and controlled by our Chairman and CEO, Marc Holliday, and our President, Andrew Mathias, pursuant to which they agreed to make an investment in our One Vanderbilt project at the appraised fair market value for the interests acquired. This investment entitles these entities to receive approximately 1.50% - 1.80% and 1.00% - 1.20%, respectively, of any profits realized by the Company from its One Vanderbilt project in excess of the Company’s capital contributions. The entities have no right to any return of capital. Accordingly, subject to previously disclosed repurchase rights, these interests will have no value and will not entitle these entities to any amounts (other than limited distributions to cover tax liabilities incurred) unless and until the Company has received distributions from the One Vanderbilt project in excess of the Company’s aggregate investment in the project. In the event that the Company does not realize a profit on its investment in the project (or would not realize a profit based on the value at the time the interests are repurchased), the entities owned and controlled by Messrs. Holliday and Mathias will lose the entire amount of their investment. The entities owned and controlled by Messrs. Holliday and Mathias paid $1.4 million and $1.0 million, respectively, which equaled the fair market value of the interests acquired as of the date the investment agreements were entered into as determined by an independent third party appraisal that we obtained.
Messrs. Holliday and Mathias cannot monetize their interests until after stabilization of the property (50% within three years after stabilization and 100% three years or more after stabilization). In addition, the agreement calls for us to repurchase these interests in the event of a sale of One Vanderbilt or a transactional change of control of the Company. We also have the right to repurchase these interests on the 7-year anniversary of the stabilization of the project or upon the occurrence of certain separation events prior to the stabilization of the project relating to each of Messrs. Holliday’s and Mathias’s continued service with us. The price paid upon monetization of the interests will equal the liquidation value of the interests at the time, with the value of One Vanderbilt being based on its sale price, if applicable, or fair market value as determined by an independent third party appraiser. As of March 31, 2022, stabilization of the property was achieved.
One Vanderbilt Avenue Leases
In November 2018, we entered into a lease agreement with the One Vanderbilt Avenue joint venture covering certain floors at the property. In March 2021, the lease commenced and we relocated our corporate headquarters to the leased space. For the three months ended March 31, 2022 and 2021, we recorded $0.7 million and $0.1 million, respectively, of rent expense under the lease. Additionally, in June 2021, we, through a wholly-owned subsidiary, entered into a lease agreement with the One Vanderbilt Avenue joint venture for SUMMIT One Vanderbilt, which commenced in October 2021. For the three months ended March 31, 2022, we recorded $9.8 million of rent expense under the lease, including percentage rent, of which $6.6 million was recognized as income as a component of Equity in net loss from unconsolidated joint ventures in our consolidated statements of operations.
Other
We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures as further described in Note 6, "Investments in Unconsolidated Joint Ventures." Amounts due from joint ventures and related parties as of March 31, 2022 and December 31, 2021 consisted of the following (in thousands):
March 31, 2022December 31, 2021
Due from joint ventures$31,001 $28,204 
Other710 1,204 
Related party receivables$31,711 $29,408 
11. Noncontrolling Interests on the Company's Consolidated Financial Statements
Noncontrolling interests represent the common and preferred units of limited partnership interest in the Operating Partnership not held by the Company as well as third party equity interests in our other consolidated subsidiaries. Noncontrolling interests in the Operating Partnership are shown in the mezzanine equity while the noncontrolling interests in our other consolidated subsidiaries are shown in the equity section of the Company’s consolidated financial statements.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Common Units of Limited Partnership Interest in the Operating Partnership
As of March 31, 2022 and December 31, 2021, the noncontrolling interest unit holders owned 6.00%, or 4,095,291 units, and 5.57%, or 3,781,565 units, of the Operating Partnership, respectively, inclusive of retroactive adjustments to reflect the reverse stock split effectuated by SL Green in January 2022. As of March 31, 2022, 4,095,291 shares of our common stock were reserved for issuance upon the redemption of units of limited partnership interest of the Operating Partnership.
Noncontrolling interests in the Operating Partnership is recorded at the greater of its cost basis or fair market value based on the closing stock price of our common stock at the end of the reporting period.
Below is a summary of the activity relating to the noncontrolling interests in the Operating Partnership for the three months ended March 31, 2022 and the twelve months ended December 31, 2021 (in thousands):
March 31, 2022December 31, 2021
Balance at beginning of period$344,252 $358,262 
Distributions(4,415)(15,749)
Issuance of common units6,721 18,678 
Redemption and conversion of common units(18,272)(53,289)
Net income492 25,457 
Accumulated other comprehensive loss allocation2,277 1,042 
Fair value adjustment43,023 9,851 
Balance at end of period$374,078 $344,252 
Preferred Units of Limited Partnership Interest in the Operating Partnership
Below is a summary of the preferred units of limited partnership interest in the Operating Partnership as of March 31, 2022:
IssuanceStated Distribution RateNumber of Units AuthorizedNumber of Units IssuedNumber of Units Outstanding
Annual Dividend Per Unit(1)
Liquidation Preference Per Unit(2)
Conversion Price Per Unit(3)
Date of Issuance
Series A (4)
3.50 %109,161 109,161 109,161 $35.0000 $1,000.00 $— August 2015
Series F7.00%60 60 60 70.0000 1,000.00 29.12 January 2007
Series K3.50%700,000 563,954 341,677 0.8750 25.00 134.67 August 2014
Series L4.00%500,000 378,634 372,634 1.0000 25.00 — August 2014
Series P4.00%200,000 200,000 200,000 1.0000 25.00 — July 2015
Series Q3.50%268,000 268,000 268,000 0.8750 25.00 148.95 July 2015
Series R3.50%400,000 400,000 400,000 0.8750 25.00 154.89 August 2015
Series S4.00%1,077,280 1,077,280 1,077,280 1.0000 25.00 — August 2015
Series V3.50%40,000 40,000 40,000 0.8750 25.00 — May 2019
Series W (5)
(6)(6)(6)(6)January 2020
(1)Dividends are cumulative, subject to certain provisions.
(2)Units are redeemable at any time at par for cash at the option of the unitholder unless otherwise specified.
(3)If applicable, units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) the amount shown in the table.
(4)Issued through a consolidated subsidiary. The units are convertible on a one-for-one basis, into the Series B Preferred Units of limited partnership interest, or the Subsidiary Series B Preferred Units. The Subsidiary Series B Preferred Units can be converted at any time, at the option of the unitholder, into a number of common stock equal to 6.71348 shares of common stock for each Subsidiary Series B Preferred Unit. As of March 31, 2022, no Subsidiary Series B Preferred Units have been issued.
(5)The Series W preferred unit was issued in January 2020 in exchange for the then-outstanding Series O preferred unit. The holder of the Series W preferred unit is entitled to quarterly dividends in an amount calculated as (i) 1,350 multiplied by (ii) the current distribution per common unit of limited partnership in SL Green Operating Partnership. The holder has the right to require the Operating Partnership to repurchase the Series W unit for cash, or convert the Series W unit for Class B units, in each case at a price that is determined based on the closing price of the Company's common stock at the time such right is exercised. The unit's liquidation preference is the fair market value of the unit plus accrued distributions at the time of a liquidation event.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Below is a summary of the activity relating to the preferred units in the Operating Partnership for the three months ended March 31, 2022 and the twelve months ended December 31, 2021 (in thousands):
March 31, 2022December 31, 2021
Balance at beginning of period$196,075 $202,169 
Issuance of preferred units — 
Redemption of preferred units(17,967)(6,040)
Dividends paid on preferred units(1,662)(6,760)
Accrued dividends on preferred units1,497 6,706 
Balance at end of period$177,943 $196,075 
12. Stockholders’ Equity of the Company
Common Stock
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of March 31, 2022, 64,124,447 shares of common stock and no shares of excess stock were issued and outstanding.
On December 2, 2021, our Board of Directors declared an ordinary dividend of $0.3108 per share and a special dividend of $2.4392 per share (together, "the Total Dividend"). The Total Dividend was paid on January 18, 2022 to shareholders of record at the close of business on December 15, 2021 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed. As a result of the elections made, the cash option was oversubscribed and was prorated. Shareholders who elected to receive cash received, for each share of common stock they owned as of the Record Date, approximately $0.3976 in cash and 0.0295 shares of common stock. Shareholders who elected to receive shares received, for each share of common stock they owned as of the Record Date, approximately 0.0345 shares of common stock. The number of shares issued was calculated based on the volume weighted average trading price of SLG's common stock between January 5-7, 2022 of $79.71 per share.
To mitigate the dilutive impact of the common stock issued in the special dividend, the Board of Directors also authorized a reverse stock split, which was effective after markets closed on January 21, 2022. On January 10, 2022, a committee of the Board of Directors calculated the ratio for the reverse stock split of our issued and outstanding shares of common stock as 1.03060-for-1. After the issuance of the dividend and the completion of the reverse stock split, the number of shares of our common stock outstanding was equivalent to the number of total shares outstanding on the Record Date (not including any issuances or repurchases that occurred following the Record Date, as well as any fractional shares that would have been issued but for which cash-in-lieu was paid). However, on a relative basis, some individual shareholders may have more shares of SLG’s common stock, and some individual shareholders may have fewer shares of our common stock, depending on their individual elections to receive cash or stock and as a result of the cash option being oversubscribed.
All share-related references and measurements including the number of shares outstanding, share prices, number of shares repurchased, earnings per share, dividends per share, and share-based compensation awards, have been retroactively adjusted to reflect the reverse stock split for all periods presented in this Quarterly Report on Form 10-Q.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Share Repurchase Program
In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.
As of March 31, 2022, share repurchases executed under the program, excluding the redemption of OP units, were as follows:
Period
Shares repurchased
Average price paid per share
Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 20177,865,206$107.817,865,206
Year ended 20189,187,480$102.0617,052,686
Year ended 20194,333,260$88.6921,385,946
Year ended 20208,276,032$64.3029,661,978
Year ended 20214,474,649$75.4434,136,627
Three months ended March 31, 20221,971,092$76.6936,107,719
Perpetual Preferred Stock
We have 9,200,000 shares of our 6.50% Series I Cumulative Redeemable Preferred Stock, or the Series I Preferred Stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series I Preferred stockholders receive annual dividends of $1.625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. We are entitled to redeem the Series I Preferred Stock at any time, in whole or from time to time in part, at par for cash. In August 2012, we received $221.9 million in net proceeds from the issuance of the Series I Preferred Stock, which were recorded net of underwriters' discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 9,200,000 units of 6.50% Series I Cumulative Redeemable Preferred Units of limited partnership interest, or the Series I Preferred Units.
Dividend Reinvestment and Stock Purchase Plan ("DRSPP")
In February 2021, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three months ended March 31, 2022 and 2021, respectively (dollars in thousands):
Three Months Ended March 31,
20222021
Shares of common stock issued1,132 5,320 
Dividend reinvestments/stock purchases under the DRSPP$89 $351 
Earnings per Share
We use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the income available to common stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
SL Green's earnings per share for the three months ended March 31, 2022 and 2021 are computed as follows (in thousands):
Three Months Ended March 31,
Numerator20222021
Basic Earnings:
Income (loss) attributable to SL Green common stockholders$7,751 $(7,464)
Less: distributed earnings allocated to participating securities(335)(364)
Net income (loss) attributable to SL Green common stockholders (numerator for basic earnings per share)$7,416 $(7,828)
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable shares(96)
Add back: effect of dilutive securities (redemption of units to common shares)492 (476)
Net income (loss) attributable to SL Green common stockholders (numerator for diluted earnings per share)$7,812 $(8,297)
Three Months Ended March 31,
Denominator20222021
Basic Shares:
Weighted average common stock outstanding64,349 66,961 
Effect of Dilutive Securities:
Operating Partnership units redeemable for common shares4,121 4,148 
Stock-based compensation plans984 588 
Contingently issuable shares774 307 
Diluted weighted average common stock outstanding70,228 72,004 
The Company has excluded 351,927 and 1,124,920 common stock equivalents from the calculation of diluted shares outstanding for the three months ended March 31, 2022 and 2021, respectively, as they were anti-dilutive.
13. Partners' Capital of the Operating Partnership
The Company is the sole managing general partner of the Operating Partnership and at March 31, 2022 owned 64,124,447 general and limited partnership interests in the Operating Partnership and 9,200,000 Series I Preferred Units. Partnership interests in the Operating Partnership are denominated as “common units of limited partnership interest” (also referred to as “OP Units”) or “preferred units of limited partnership interest” (also referred to as “Preferred Units”). All references to OP Units and Preferred Units outstanding exclude such units held by the Company. A holder of an OP Unit may present such OP Unit to the Operating Partnership for redemption at any time (subject to restrictions agreed upon at the issuance of OP Units to particular holders that may restrict such right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, the Operating Partnership must redeem such OP Unit in exchange for the cash equal to the then value of a share of common stock of the Company, except that the Company may, at its election, in lieu of cash redemption, acquire such OP Unit for one share of common stock. Because the number of shares of common stock outstanding at all times equals the number of OP Units that the Company owns, one share of common stock is generally the economic equivalent of one OP Unit, and the quarterly distribution that may be paid to the holder of an OP Unit equals the quarterly dividend that may be paid to the holder of a share of common stock. Each series of Preferred Units makes a distribution that is set in accordance with an amendment to the partnership agreement of the Operating Partnership. Preferred Units may also be convertible into OP Units at the election of the holder thereof or the Company, subject to the terms of such Preferred Units.
Net income (loss) allocated to the preferred unitholders and common unitholders reflects their pro rata share of net income (loss) and distributions.
All unit-related references and measurements including the number of units outstanding and earnings per unit have been retroactively adjusted to reflect the reverse stock split effectuated by SL Green’s Board of Directors in January 2021 for all periods presented in this Quarterly Report on Form 10-Q.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
Limited Partner Units
As of March 31, 2022, limited partners other than SL Green owned 6.00%, or 4,095,291 common units, of the Operating Partnership.
Preferred Units
Preferred units not owned by SL Green are further described in Note 11, “Noncontrolling Interests on the Company’s Consolidated Financial Statements - Preferred Units of Limited Partnership Interest in the Operating Partnership.”
Earnings per Unit
The Operating Partnership's earnings per unit for the three months ended March 31, 2022 and 2021, respectively, are computed as follows (in thousands):
Three Months Ended March 31,
Numerator20222021
Basic Earnings:
Net income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
$8,243 $(7,940)
Less: distributed earnings allocated to participating securities(335)(364)
Net Income attributable to SLGOP common unitholders (numerator for basic earnings per unit)$7,908 $(8,304)
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable shares(96)
Net Income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)$7,812 $(8,297)

Three Months Ended March 31,
Denominator20222021
Basic units:
Weighted average common units outstanding68,470 71,109 
Effect of Dilutive Securities:
Stock-based compensation plans984 588 
Contingently issuable units 774 307 
Diluted weighted average common units outstanding70,228 72,004 
The Operating Partnership has excluded 351,927 and 1,124,920 common unit equivalents from the diluted units outstanding for the three months ended March 31, 2022 and 2021, respectively, as they were anti-dilutive.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
14. Share-based Compensation
We have share-based employee and director compensation plans. Our employees are compensated through the Operating Partnership. Under each plan, whenever the Company issues common or preferred stock, the Operating Partnership issues an equivalent number of units of limited partnership interest of a corresponding class to the Company.
The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights, cash-based awards and other equity-based awards. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted under the 2005 Plan. Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 3.74 Fungible Units per share subject to such awards, (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five years from the date of grant counting as 0.73 fungible units per share subject to such awards, and (3) all other awards (e.g., 10-year stock options) counting as 1.0 fungible units per share subject to such awards. Awards granted under the 2005 Plan prior to the approval of the fourth amendment and restatement in June 2016 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios. As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 27,030,000 shares. If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares. Currently, unless the 2005 Plan has been previously terminated by the Company's Board of Directors, new awards may be granted under the 2005 Plan until June 2, 2026, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by the Company's stockholders. As of March 31, 2022, 0.2 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units. A proposal to increase the 2005 Plan by 5,180,000 fungible units was approved by the Board of Directors in April 2022 and will be voted upon at the Company's annual meeting of stockholders on June 1, 2022.
Stock Options and Class O LTIP Units
Options are granted with an exercise price at the fair market value of the Company's common stock on the date of grant and, subject to employment, generally expire five years or ten years from the date of grant, are not transferable other than on death, and generally vest in one year to five years commencing one year from the date of grant. We have also granted Class O LTIP Units, which are a class of LTIP Units in the Operating Partnership structured to provide economics similar to those of stock options. Class O LTIP Units, once vested, may be converted, at the election of the holder, into a number of common units of the Operating Partnership per Class O LTIP Unit determined by the increase in value of a share of the Company’s common stock at the time of conversion over a participation threshold, which equals the fair market value of a share of the Company’s common stock at the time of grant. Class O LTIP Units are entitled to distributions, subject to vesting, equal per unit to 10% of the per unit distributions paid with respect to the common units of the Operating Partnership.
The fair value of each stock option or LTIP Unit granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information. There were no options granted during the three months ended March 31, 2022 or the year ended December 31, 2021.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
A summary of the status of the Company's stock options as of March 31, 2022 and December 31, 2021, and changes during the three months ended March 31, 2022 and year ended December 31, 2021 are as follows:
March 31, 2022December 31, 2021
Options OutstandingWeighted Average
Exercise Price
Options OutstandingWeighted Average
Exercise Price
Balance at beginning of period394,089 $100.56 761,686 $105.76 
Exercised  (11,314)72.30 
Lapsed or canceled(28,283)112.48 (356,283)112.56 
Balance at end of period365,806 $99.64 394,089 $100.56 
Options exercisable at end of period365,806 $99.64 394,089 $100.56 
The remaining weighted average contractual life of the options outstanding was 2.3 years and the remaining average contractual life of the options exercisable was 2.3 years.
During the three months ended March 31, 2022, we recognized no compensation expense related to options. During the three months ended March 31, 2021, we recognized no compensation expense related to options. As of March 31, 2022, there was no unrecognized compensation cost related to unvested stock options.
Restricted Shares
Shares are granted to certain employees, including our executives, and vesting occurs upon the completion of a service period or our meeting established financial performance criteria. Vesting occurs at rates ranging from 15% to 35% once performance criteria are reached.
A summary of the Company's restricted stock as of March 31, 2022 and December 31, 2021 and changes during the three months ended March 31, 2022 and the year ended December 31, 2021, are as follows:
March 31, 2022December 31, 2021
Balance at beginning of period3,459,363 3,337,545 
Granted77,148 141,515 
Canceled(9,075)(19,697)
Balance at end of period3,527,436 3,459,363 
Vested during the period116,862 122,759 
Compensation expense recorded$1,920,738 $8,497,054 
Total fair value of restricted stock granted during the period$5,931,470 $9,214,531 
The fair value of restricted stock that vested during the three months ended March 31, 2022 and the year ended December 31, 2021 was $9.6 million and $11.3 million, respectively. As of March 31, 2022, there was $10.3 million of total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 1.5 years.
We granted LTIP Units, which include bonus, time-based and performance-based awards, with a fair value of $38.6 million and $55.0 million as of March 31, 2022 and December 31, 2021, respectively. The grant date fair value of the LTIP Unit awards was calculated in accordance with ASC 718. A third party consultant determined that the fair value of the LTIP Units has a discount to our common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP Units will reach parity with other common partnership units and the illiquidity due to transfer restrictions. As of March 31, 2022, there was $72.8 million of total unrecognized compensation expense related to the time-based and performance based awards, which is expected to be recognized over a weighted average period of 1.9 years.
During the three months ended March 31, 2022, we recorded compensation expense related to bonus, time-based and performance based awards of $10.2 million. During the three months ended March 31, 2021, we recorded compensation expense related to bonus, time-based and performance based awards of $9.1 million.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
For the three months ended March 31, 2022, $0.3 million was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options. For the three months ended March 31, 2021, $0.5 million was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.
Deferred Compensation Plan for Directors
Under our Non-Employee Director's Deferral Program, which commenced July 2004, the Company's non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees, meeting fees and annual stock grant. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The program provides that a director's phantom stock units generally will be settled in an equal number of shares of common stock upon the earlier of (i) the January 1 coincident with or the next following such director's termination of service from the Board of Directors or (ii) a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the first business day of the respective quarter. Each participating non-employee director is also credited with dividend equivalents or phantom stock units based on the dividend rate for each quarter, which are either paid in cash currently or credited to the director’s account as additional phantom stock units.
During the three months ended March 31, 2022, 14,261 phantom stock units and 9,207 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $1.8 million and $1.8 million during the three months ended March 31, 2022 and 2021, respectively, related to the Deferred Compensation Plan.
As of March 31, 2022, there were 179,462 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.
Employee Stock Purchase Plan
In 2007, the Company's Board of Directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to provide equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase the Company's shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. The Company filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of March 31, 2022, 176,385 shares of our common stock had been issued under the ESPP.
15. Accumulated Other Comprehensive Loss
The following tables set forth the changes in accumulated other comprehensive loss by component as of March 31, 2022 (in thousands):
Net unrealized gain (loss) on derivative instruments (1)
SL Green’s share
of joint venture
net unrealized loss on derivative
instruments (2)
Net unrealized (loss) gain on marketable securitiesTotal
Balance at December 31, 2021$(25,881)$(21,994)$1,117 $(46,758)
Other comprehensive gain before reclassifications26,790 9,785 (1,691)34,884 
Amounts reclassified from accumulated other comprehensive loss3,649 964 — 4,613 
Balance at March 31, 2022$4,558 $(11,245)$(574)$(7,261)
(1)Amount reclassified from accumulated other comprehensive loss is included in interest expense in the respective consolidated statements of operations. As of March 31, 2022 and December 31, 2021, the deferred net gains from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized loss on derivative instruments, was $(0.6) million and $(0.6) million, respectively.
(2)Amount reclassified from accumulated other comprehensive loss is included in equity in net loss from unconsolidated joint ventures in the respective consolidated statements of operations.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
16. Fair Value Measurements
We are required to disclose fair value information with regard to certain of our financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practical to estimate fair value. The FASB guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. We measure and/or disclose the estimated fair value of certain financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. We follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. Our assessment of the significance of the particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
The following tables set forth the assets and liabilities that we measure at fair value on a recurring and non-recurring basis by their levels in the fair value hierarchy as of March 31, 2022 and December 31, 2021 (in thousands):
March 31, 2022
TotalLevel 1Level 2Level 3
Assets:
Marketable securities available-for-sale$22,353 $— $22,353 $— 
Interest rate cap and swap agreements (included in Other assets)10,052 — 10,052 — 
Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)$5,795 $— $5,795 $— 
December 31, 2021
TotalLevel 1Level 2Level 3
Assets:
Marketable securities available-for-sale$24,146 $— $24,146 $— 
Interest rate cap and swap agreements (included in Other assets)1,896 — 1,896 — 
Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)$29,912 $— $29,912 $— 
We evaluate real estate investments and debt and preferred equity investments, including intangibles, for potential impairment primarily utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts, all of which are classified as Level 3 inputs.
Marketable securities classified as Level 1 are derived from quoted prices in active markets. The valuation technique used to measure the fair value of marketable securities classified as Level 2 were valued based on quoted market prices or model driven valuations using the significant inputs derived from or corroborated by observable market data. We do not intend to sell these securities and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases.
The fair value of derivative instruments is based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well-recognized financial principles and reasonable estimates about relevant future market conditions, which are classified as Level 2 inputs.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
The financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, debt and preferred equity investments, mortgages and other loans payable and other secured and unsecured debt. The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses reported in our consolidated balance sheets approximates fair value due to the short-term nature of these instruments. The fair value of debt and preferred equity investments, which is classified as Level 3, is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. The fair value of borrowings, which is classified as Level 3, is estimated by discounting the contractual cash flows of each debt instrument to their present value using adjusted market interest rates, which is provided by a third-party specialist.
The following table provides the carrying value and fair value of these financial instruments as of March 31, 2022 and December 31, 2021 (in thousands):
March 31, 2022December 31, 2021
Carrying Value (1)
Fair Value
Carrying Value (1)
Fair Value
Debt and preferred equity investments$1,107,870 
(2)
$1,088,723 
(2)
Fixed rate debt$3,321,239 $3,322,000 $3,274,324 $3,336,463 
Variable rate debt813,478 813,040 801,051 800,672 
$4,134,717 $4,135,040 $4,075,375 $4,137,135 
(1)Amounts exclude net deferred financing costs.
(2)As of March 31, 2022, debt and preferred equity investments had an estimated fair value ranging between $1.0 billion and $1.1 billion. As of December 31, 2021, debt and preferred equity investments had an estimated fair value ranging between $1.0 billion and $1.1 billion.

Disclosures regarding fair value of financial instruments was based on pertinent information available to us as of March 31, 2022 and December 31, 2021. Such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
17. Financial Instruments: Derivatives and Hedging
In the normal course of business, we use a variety of commonly used derivative instruments, such as interest rate swaps, caps, collars and floors, to manage, or hedge interest rate risk. We hedge our exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on existing debt. We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedge asset, liability, or firm commitment through earnings, or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows. Currently, all of our designated derivative instruments are effective hedging instruments.
The following table summarizes the notional value at inception and fair value of our consolidated derivative financial instruments as of March 31, 2022 based on Level 2 information. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands).
Notional
Value
Strike
Rate
Effective
Date
Expiration
Date
Balance Sheet LocationFair
Value
Interest Rate Cap$111,869 3.500 %November 2021November 2022Other Assets$
Interest Rate Swap100,000 0.212 %January 2021January 2023Other Assets1,223 
Interest Rate Swap400,000 0.184 %January 2022February 2023Other Assets4,838 
Interest Rate Swap50,000 0.633 %February 2022February 2023Other Assets373 
Interest Rate Swap100,000 1.163 %November 2021July 2023Other Assets1,177 
Interest Rate Swap200,000 1.133 %November 2021July 2023Other Assets2,432 
Interest Rate Swap150,000 2.700 %December 2021January 2024Other Liabilities(1,153)
Interest Rate Swap150,000 2.721 %December 2021January 2026Other Liabilities(1,865)
Interest Rate Swap200,000 2.762 %December 2021January 2026Other Liabilities(2,777)
$4,257 
No gains or losses on the changes in the fair values were included in interest expense in the consolidated statements of operations during the three months ended March 31, 2022 or 2021.
The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of March 31, 2022, the fair value of derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $6.8 million. As of March 31, 2022, the Company was not required to post any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $7.0 million as of March 31, 2022.
Gains and losses on terminated hedges are included in accumulated other comprehensive income (loss), and are recognized into earnings over the term of the related mortgage obligation. Over time, the realized and unrealized gains and losses held in accumulated other comprehensive loss will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that $(3.7) million of the current balance held in accumulated other comprehensive loss will be reclassified into interest expense and $1.3 million of the portion related to our share of joint venture accumulated other comprehensive loss will be reclassified into equity in net loss from unconsolidated joint ventures within the next 12 months.
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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
The following table presents the effect of our derivative financial instruments and our share of our joint ventures' derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of operations for the three months ended March 31, 2022 and 2021, respectively (in thousands):
 Amount of Gain
Recognized in
Other Comprehensive
Loss
Location of Loss Reclassified from Accumulated Other Comprehensive Loss into IncomeAmount of Loss Reclassified from
Accumulated Other
Comprehensive Loss into Income
Three Months Ended March 31,Three Months Ended March 31,
Derivative2022202120222021
Interest Rate Swaps/Caps$28,378 $10,220 Interest expense$(3,866)$(4,388)
Share of unconsolidated joint ventures' derivative instruments10,308 34,955 Equity in net loss from unconsolidated joint ventures(1,015)(1,700)
$38,686 $45,175 $(4,881)$(6,088)

The following table summarizes the notional value at inception and fair value of our joint ventures' derivative financial instruments as of March 31, 2022 based on Level 2 information. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands).
Notional
Value
Strike
Rate
Effective
Date
Expiration
Date
ClassificationFair
Value
Interest Rate Cap$1,075,000 2.850 %September 2021September 2022Asset$21 
Interest Rate Cap125,000 2.850 %September 2021September 2022Asset
Interest Rate Cap23,000 4.750 %January 2021January 2023Asset
Interest Rate Cap220,000 4.000 %February 2022February 2023Asset68 
Interest Rate Cap510,000 3.000 %December 2021June 2023Asset1,297 
Interest Rate Cap237,340 0.550 %February 2022May 2024Asset14,994 
Interest Rate Cap118,670 0.550 %February 2022May 2024Asset14,977 
Interest Rate Swap177,000 1.669 %March 2016February 2026Asset5,014 
$36,375 

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
18. Lease Income
The Operating Partnership is the lessor and the sublessor to tenants under operating and sales-type leases. The minimum rental amounts due under the leases are generally subject to scheduled fixed increases or adjustments. The leases generally also require that the tenants reimburse us for increases in certain operating costs and real estate taxes above their base year costs.
The components of lease income from operating leases during the three months ended March 31, 2022 and 2021 were as follows (in thousands):
Three Months Ended March 31,
20222021
Fixed lease payments$136,581 $164,679 
Variable lease payments19,555 25,279 
Total lease payments (1)
$156,136 $189,958 
Amortization of acquired above and below-market leases(105)(1,869)
Total rental revenue$156,031 $188,089 
(1)Amounts include $56.2 million and $65.8 million of sublease income during the three months ended March 31, 2022 and 2021, respectively.
The components of lease income from sales-type leases during the three months ended March 31, 2022 and 2021 were as follows (in thousands):
Three Months Ended March 31,
20222021
Interest income (1)
$1,092 $1,101 
(1)These amounts are included in Other income in our consolidated statements of operations.

19. Commitments and Contingencies
Legal Proceedings
As of March 31, 2022, the Company and the Operating Partnership were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio which if adversely determined could have a material adverse impact on us.
In September 2021, the Company acquired the fee position in 1591-1597 Broadway. The property was conveyed by the Company to a third party in May 2022, in connection with a settlement.
On October 31, 2021, HNA, through an affiliated entity, filed for Chapter 11 bankruptcy protection on account of its investment in 245 Park Avenue, together with another asset in Chicago. The Company contested the filing, on the basis that the filing was done in bad faith and in violation of HNA's agreements with the Company, and is currently appealing the Bankruptcy court’s ruling upholding the filing by HNA. See Note 5, "Debt and Preferred Equity Investments."
Environmental Matters
Our management believes that the properties are in compliance in all material respects with applicable federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2022
(unaudited)
20. Segment Information
The Company has two reportable segments, real estate and debt and preferred equity investments. We evaluate real estate performance and allocate resources based on earnings contributions.
The primary sources of revenue are generated from tenant rents, escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, insurance, real estate taxes and ground rent expense (at certain applicable properties). See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments.
Selected consolidated results of operations for the three months ended March 31, 2022 and 2021, and selected asset information as of March 31, 2022 and December 31, 2021, regarding our operating segments are as follows (in thousands):
Real Estate SegmentDebt and Preferred Equity SegmentTotal Company
Total revenues
Three months ended:
March 31, 2022$168,076 $19,888 $187,964 
March 31, 2021206,829 19,273 226,102 
Net income (loss)
Three months ended:
March 31, 2022$(3,482)$16,967 $13,485 
March 31, 2021(20,027)16,172 (3,855)
Total assets
As of:
March 31, 2022$9,902,557 $1,112,408 $11,014,965 
December 31, 20219,974,140 1,092,489 11,066,629 
Interest costs for the debt and preferred equity segment include actual costs incurred for borrowings on the 2017 MRA. Interest is imputed on the investments that do not collateralize the 2017 MRA using our weighted average corporate borrowing cost. We also allocate loan loss reserves, net of recoveries, and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses to the debt and preferred equity segment because the use of personnel and resources is dependent on transaction volume between the two segments and varies between periods. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. For the three months ended March 31, 2022, marketing, general and administrative expenses totaled $24.8 million. For the three months ended March 31, 2021, marketing, general and administrative expenses totaled $22.9 million. All other expenses, except interest, relate entirely to the real estate assets.
There were no transactions between the above two segments.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
SL Green Realty Corp., which is referred to as SL Green or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the acquisition, development, repositioning, ownership, management and operation of commercial and residential real estate properties, principally office properties, located in the New York metropolitan area, principally Manhattan. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements appearing in this Quarterly Report on this Form 10-Q and in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021.
As of March 31, 2022, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:
ConsolidatedUnconsolidatedTotal
LocationProperty
Type
Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)Number of BuildingsApproximate Square Feet (unaudited)
Weighted Average Occupancy(1) (unaudited)
Commercial:
ManhattanOffice12 8,180,345 11 13,661,381 23 21,841,726 91.5 %
Retail(2)17,888 301,996 11 319,884 91.2 %
Development/Redevelopment(1)2,230,282 1,618,310 3,848,592 N/A
Fee Interest7,684 — — 7,684 N/A
21 10,436,199 22 15,581,687 43 26,017,886 91.5 %
SuburbanOffice862,800 — — 862,800 78.6 %
Total commercial properties28 11,298,999 22 15,581,687 50 26,880,686 91.0 %
Residential:
ManhattanResidential(2)222,632 445,934 668,566 87.9 %
Total portfolio30 11,521,631 28 16,027,621 58 27,549,252 91.0 %
(1)The weighted average occupancy for commercial properties represents the total occupied square footage divided by the total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by the total available units. Properties under construction are not included in the calculation of weighted average occupancy.
(2)As of March 31, 2022, we owned a building at 7 Dey / 185 Broadway that was comprised of approximately 50,206 square feet (unaudited) of retail space and approximately 140,382 square feet (unaudited) of residential space. For the purpose of this report, we have included this building in the number of retail properties we own. However, we have included only the retail square footage in the retail approximate square footage, and have listed the balance of the square footage as residential square footage.
As of March 31, 2022, we also managed one office building owned by a third party encompassing approximately 0.3 million square feet (unaudited), and held debt and preferred equity investments with a book value of $1.1 billion, excluding approximately $0.1 billion of debt and preferred equity investments and other financing receivables that are included in other balance sheet line items other than the Debt and preferred equity investments line item.
Critical Accounting Policies and Estimates
Refer to the 2021 Annual Report on Form 10-K of the Company and the Operating Partnership for a discussion of our critical accounting policies and estimates, which include investment in commercial real estate properties, investment in unconsolidated joint ventures, lease classification, revenue recognition, and debt and preferred equity investments. During the three months ended March 31, 2022, there were no material changes to these policies.
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Results of Operations
Comparison of the three months ended March 31, 2022 to the three months ended March 31, 2021
The following comparison for the three months ended March 31, 2022, or 2022, to the three months ended March 31, 2021, or 2021, makes reference to the effect of the following:
i.“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2021 and still owned by us in the same manner as of March 31, 2022 (Same-Store Properties totaled 21 of our 30 consolidated operating buildings),
ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2022 and 2021 and all non-Same-Store Properties, including properties that are under development or redevelopment,
iii."Disposed Properties," which represents all properties or interests in properties sold in 2022 and 2021, and
iv.“Other,” which represents properties where we sold an interest resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.
 Same-StoreDisposedOtherConsolidated
(in millions)20222021$
Change
%
Change
202220212022202120222021$
Change
%
Change
Rental revenue$141.9 $134.6 $7.3 5.4 %$(0.6)$10.3 $14.7 $43.2 $156.0 $188.1 $(32.1)(17.1)%
Investment income— — — — %— — 19.9 19.3 19.9 19.3 0.6 3.1 %
Other income0.2 — 0.2 100.0 %— 0.1 11.8 18.6 12.0 18.7 (6.7)(35.8)%
Total revenues142.1 134.6 7.5 5.6 %(0.6)10.4 46.4 81.1 187.9 226.1 (38.2)(16.9)%
Property operating expenses65.6 66.5 (0.9)(1.4)%0.2 4.1 14.0 23.9 79.8 94.5 (14.7)(15.6)%
Marketing, general and administrative— — — — %— — 24.8 22.9 24.8 22.9 1.9 8.3 %
65.6 66.5 (0.9)(1.4)%0.2 4.1 38.8 46.8 104.6 117.4 (12.8)(10.9)%
Other income (expenses):
Interest expense and amortization of deferred financing costs, net of interest income(17.0)(27.2)10.2 (37.5)%
Depreciation and amortization(47.0)(63.0)16.0 (25.4)%
Equity in net loss from unconsolidated joint ventures(4.7)(2.9)(1.8)62.1 %
Equity in net loss on sale of interest in unconsolidated joint venture/real estate— (12.6)12.6 (100.0)%
Purchase price and other fair value adjustments(0.1)2.7 (2.8)(103.7)%
Loss on sale of real estate, net(1.0)(1.4)0.4 (28.6)%
Depreciable real estate reserves and impairment— (8.2)8.2 (100.0)%
Net income (loss)$13.5 $(3.9)$17.4 (446.2)%
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Rental Revenue
Rental revenues decreased primarily due to Disposed Properties ($10.9 million), properties moved into redevelopment ($6.7 million), and the deconsolidation of 220 East 42nd Street as a result of the sale of a joint venture interest during the third quarter of 2021 ($16.5 million).
The following table presents a summary of the commenced leasing activity for the three months ended March 31, 2022 in our Manhattan portfolio:
 Usable
SF
Rentable
SF
New Cash Rent (per rentable SF) (1)
Prev.
Escalated
Rent (per
rentable
SF) (2)
TI/LC
per
rentable
SF
Free
Rent (in
months)
Average
Lease
Term (in
years)
Manhattan       
Space available at beginning of the period1,638,009      
Property out of redevelopment107,612 
Space which became available during the period (3)
     
•       Office
371,968       
•       Retail
10,695       
•       Storage
3,111       
 385,774       
Total space available2,131,395       
Leased space commenced during the period:       
•       Office(4)
237,557 269,385 $66.72 $74.00 $79.40 9.2 9.0 
•       Retail
5,945 5,399 $89.83 $— $— 7.0 10.6 
•       Storage
2,946 3,191 $28.75 $31.25 $5.79 9.0 10.0 
Total leased space commenced246,448 277,975 $66.74 $73.40 $77.01 9.1 9.0 
Total available space at end of period1,884,947       
Early renewals      
•       Office24,679 27,031 $87.40 $85.70 $18.29 1.6 3.1 
•       Retail7,198 8,152 $187.79 $206.76 $— — 8.1 
Total early renewals31,877 35,183 $110.66 $113.75 $14.05 1.3 4.2 
Total commenced leases, including replaced previous vacancy  
•       Office296,416 $68.61 $75.26 $73.83 8.5 8.5
•       Retail 13,551 $148.76 $206.76 $— 2.8 9.1
•       Storage 3,191 $28.75 $31.25 $5.79 9.0 10.0 
Total commenced leases 313,158 $71.67 $78.81 $69.94 8.3 8.5 
(1)Annual initial base rent.
(2)Escalated rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment.
(3)Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants held over.
(4)Average starting office rent excluding new tenants replacing vacancies was $65.71 per rentable square feet for 224,300 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $68.04 per rentable square feet for 251,331 rentable square feet.

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Investment Income
For the three months ended March 31, 2022, investment income increased primarily as a result of an increase in the weighted average yield of our debt and preferred equity investments. For the three months ended March 31, 2022, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $1.1 billion and 7.3%, respectively, as compared to $1.1 billion and 6.8%, respectively, for the three months ended March 31, 2021.
Other Income
Other income decreased primarily due to lower lease termination income for the three months ended March 31, 2022 ($5.4 million) as compared to the same period in 2021 ($9.9 million).
Property Operating Expenses
Property operating expenses decreased primarily due to reduced variable expenses and real estate taxes at our Acquisition and Disposed Properties ($6.9 million and $3.9 million, respectively). Further decreases resulted from the sale of a joint venture interest and deconsolidation of 220 East 42nd Street ($5.7 million) in the third quarter of 2021 and reduced real estate taxes at our Same-Store Properties ($5.2 million), partially offset by increased variable expenses at our Same-Store Properties ($4.3 million).
Marketing, General and Administrative Expenses
Marketing, general and administrative expenses increased primarily due to an increase in rent expense for the Company's corporate offices at One Vanderbilt Avenue.
Interest Expense and Amortization of Deferred Financing Costs, Net of Interest Income
Interest expense and amortization of deferred financing costs, net of interest income, decreased primarily due to the deconsolidation of 220 East 42nd Street ($4.8 million), lower interest expense from term loans ($1.4 million) and senior unsecured notes ($1.1 million) resulting from a decrease in balances outstanding during the three months ended March 31, 2022 as compared to the three months ended March 31, 2021, and interest capitalization in connection with properties that are under development ($1.5 million). The weighted average consolidated debt balance outstanding was $4.2 billion for the three months ended March 31, 2022, compared to $5.4 billion for the three months ended March 31, 2021. The consolidated weighted average interest rate was 3.01% for the three months ended March 31, 2022, as compared to 2.88% for the three months ended March 31, 2021.
Depreciation and Amortization
Depreciation and amortization decreased at our Acquired Properties ($7.1 million), Disposed Properties ($3.0 million) and Same-Store Properties ($1.3 million) during the three months ended March 31, 2022. Depreciation and amortization decreased further due to the deconsolidation of 220 East 42nd Street ($4.5 million) as a result of the interest sale during the third quarter of 2021.
Equity in net loss from unconsolidated joint ventures
Equity in net loss from unconsolidated joint ventures increased primarily as a result of higher depreciation expense at One Vanderbilt Avenue ($7.8 million), partially offset by an increase in income from operations at 1515 Broadway ($6.2 million).
Equity in net loss on sale of interest in unconsolidated joint venture/real estate
During the three months ended March 31, 2022, we did not sell any joint venture interests or properties. During the three months ended March 31, 2021, we recognized a loss on sale related to our interests in 55 West 46th Street ($15.2 million).
Purchase price and other fair value adjustments
During the three months ended March 31, 2022, we did not record any significant purchase price and other fair value adjustments. During the three months ended March 31, 2021, we recorded $2.7 million of purchase price and other fair value adjustments related to One Madison Avenue.
Loss on sale of real estate, net
During the three months ended March 31, 2022, we recognized a loss on sale related to our interest in 707 Eleventh Avenue ($0.8 million). During the three months ended March 31, 2021, we recognized a loss on sale related to our interest in 712 Madison Avenue ($1.4 million).
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Depreciable real estate reserves and impairment
During the three months ended March 31, 2022, we did not recognize any depreciable real estate reserves and impairment. During the three months ended March 31, 2021, we recognized depreciable real estate reserves and impairments related to 400 East 57th Street ($5.7 million) and 106 Spring Street ($2.7 million), offset by 133 Greene Street ($0.2 million).
Liquidity and Capital Resources
We currently expect that the principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, acquisitions, development or redevelopment of properties, tenant improvements, leasing costs, share repurchases, dividends to shareholders, distributions to unitholders, repurchases or repayments of outstanding indebtedness and for debt and preferred equity investments will include:
(1)Cash flow from operations;
(2)Cash on hand;
(3)Net proceeds from divestitures of properties and redemptions, participations, dispositions and repayments of debt and preferred equity investments;
(4)Borrowings under the revolving credit facility;
(5)Other forms of secured or unsecured financing; and
(6)Proceeds from common or preferred equity or debt offerings by the Company or the Operating Partnership (including issuances of units of limited partnership interest in the Operating Partnership and Trust preferred securities).
Cash flow from operations is primarily dependent upon the collectability of rent, the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent, operating escalations and recoveries from our tenants and the level of operating and other costs. Additionally, we believe that our debt and preferred equity investment program will continue to serve as a source of operating cash flow.
The combined aggregate principal maturities of mortgages and other loans payable, the 2021 credit facility, senior unsecured notes (net of discount), trust preferred securities, our share of joint venture debt, including as-of-right extension options and put options, estimated interest expense, and our obligations under our financing and operating leases, as of March 31, 2022 were as follows (in thousands):
Remaining 20222023202420252026ThereafterTotal
Property mortgages and other loans$407,223 $56,640 $338,077 $873 $904 $580,332 $1,384,049 
Revolving credit facility— — — — 500,000 — 500,000 
Unsecured term loans— — 200,000 — — 1,050,000 1,250,000 
Senior unsecured notes800,000 — — 100,000 — — 900,000 
Trust preferred securities— — — — — 100,000 100,000 
Financing leases2,645 3,570 3,641 3,810 3,858 256,692 274,216 
Operating leases27,960 48,680 54,545 54,772 54,911 1,395,533 1,636,401 
Estimated interest expense94,851 116,214 111,418 88,476 70,216 45,307 526,482 
Joint venture debt422,442 750,696 626,671 1,431,734 107,230 2,435,913 5,774,686 
Total$1,755,121 $975,800 $1,334,352 $1,679,665 $737,119 $5,863,777 $12,345,834 
We estimate that for the remainder of the year ending December 31, 2022, we expect to incur $67.2 million of recurring capital expenditures on existing consolidated properties and $71.5 million of development or redevelopment expenditures on existing consolidated properties, of which $2.7 million will be funded by construction financing facilities or loan reserves. We expect our share of capital expenditures at our joint venture properties will be $171.9 million, of which $93.9 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.
As of March 31, 2022, we had liquidity of $1.1 billion, comprised of $0.8 billion of availability under our revolving credit facility and $0.3 billion of consolidated cash on hand, inclusive of $32.9 million of marketable securities. This liquidity excludes $150.2 million representing our share of cash at unconsolidated joint venture properties. We may seek to divest of properties, interests in properties or debt and preferred equity investments or access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all. Management believes that these sources of liquidity, if we are able to access them, along with potential
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refinancing opportunities for secured and unsecured debt, will allow us to satisfy our debt obligations, as described above, upon maturity, if not before.
We have investments in several real estate joint ventures with various partners who we consider to be financially stable and who have the ability to fund a capital call when needed. Most of our joint ventures are financed with non-recourse debt. We believe that property level cash flows along with unfunded committed indebtedness and proceeds from the refinancing of outstanding secured indebtedness will be sufficient to fund the capital needs of our joint venture properties.
Cash Flows
The following summary discussion of our cash flows is based on our consolidated statements of cash flows in "Item 1. Financial Statements" and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.
Cash, restricted cash, and cash equivalents were $307.3 million and $401.6 million as of March 31, 2022 and 2021, respectively, representing a decrease of $94.3 million. The decrease was a result of the following changes in cash flows (in thousands):
Three Months Ended March 31,
20222021Change
Net cash provided by operating activities$81,402 $18,602 $62,800 
Net cash provided by investing activities13,496 20,181 (6,685)
Net cash used in financing activities(124,564)(9,971)(114,593)
Our principal sources of operating cash flow are the properties in our consolidated and joint venture portfolios and our debt and preferred equity portfolio. These sources generate a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service and fund dividend and distribution requirements.
Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria. During the three months ended March 31, 2022, when compared to the three months ended March 31, 2021, we used cash primarily for the following investing activities (in thousands):
Capital expenditures and capitalized interest$(12,352)
Escrow cash-capital improvements/acquisition deposits/deferred purchase price(15,000)
Joint venture investments9,628 
Distributions from joint ventures(3,603)
Proceeds from sales of real estate/partial interest in property29,194 
Cash assumed from consolidation of real estate investment(9,475)
Debt and preferred equity and other investments(5,077)
Decrease in net cash provided by investing activities$(6,685)
Funds spent on capital expenditures, which are comprised of building and tenant improvements, increased from $49.3 million for the three months ended March 31, 2021 to $61.7 million for the three months ended March 31, 2022 due to increased spending on development and redevelopment projects.
We generally fund our investment activity through the sale of real estate, the sale of debt and preferred equity investments, property-level financing, our credit facilities, senior unsecured notes, and construction loans. From time to time, the Company may issue common or preferred stock, or the Operating Partnership may issue common or preferred units of limited partnership interest.
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During the three months ended March 31, 2022, when compared to the three months ended March 31, 2021, we used cash for the following financing activities (in thousands):
Proceeds from our debt obligations$(215,082)
Repayments of our debt obligations106,827 
Net distribution to noncontrolling interests(451)
Other financing activities72,386 
Proceeds from stock options exercised and DRSPP issuance(262)
Repurchase of common stock(67,108)
Redemption of preferred stock(14,336)
Dividends and distributions paid3,433 
Increase in net cash used in financing activities$(114,593)
Capitalization
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, $0.01 par value per share. As of March 31, 2022, 64,124,447 shares of common stock and no shares of excess stock were issued and outstanding.
On December 2, 2021, our Board of Directors declared an ordinary dividend of $0.3108 per share and a special dividend of $2.4392 per share (together, "the Total Dividend"). The Total Dividend was paid on January 18, 2022 to shareholders of record at the close of business on December 15, 2021 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed. As a result of the elections made, the cash option was oversubscribed and was prorated. Shareholders who elected to receive cash received, for each share of common stock they owned as of the Record Date, approximately $0.3976 in cash and 0.0295 shares of common stock. Shareholders who elected to receive shares received, for each share of common stock they owned as of the Record Date, approximately 0.0345 shares of common stock. The number of shares issued was calculated based on the volume weighted average trading price of SLG's common stock between January 5-7, 2022 of $79.71 per share.
To mitigate the dilutive impact of the common stock issued in the special dividend, the Board of Directors also authorized a reverse stock split, which was effective after markets closed on January 21, 2022. On January 10, 2022, a committee of the Board of Directors calculated the ratio for the reverse stock split of our issued and outstanding shares of common stock as 1.03060-for-1. After the issuance of the dividend and the completion of the reverse stock split, the number of shares of our common stock outstanding was equivalent to the number of total shares outstanding on the Record Date (not including any issuances or repurchases that occurred following the Record Date, as well as any fractional shares that would have been issued but for which cash-in-lieu was paid). However, on a relative basis, some individual shareholders may have more shares of SLG’s common stock, and some individual shareholders may have fewer shares of our common stock, depending on their individual elections to receive cash or stock and as a result of the cash option being oversubscribed.
All share-related references and measurements including the number of shares outstanding, share prices, number of shares repurchased, earnings per share, dividends per share, and share-based compensation awards, have been retroactively adjusted to reflect the reverse stock split for all periods presented in this Quarterly Report on Form 10-Q.
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Share Repurchase Program
In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.
As of March 31, 2022, share repurchases executed under the program, excluding the redemption of OP units, were as follows:
Period
Shares repurchased
Average price paid per share
Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 20177,865,206$107.817,865,206
Year ended 20189,187,480$102.0617,052,686
Year ended 20194,333,260$88.6921,385,946
Year ended 20208,276,032$64.3029,661,978
Year ended 20214,474,649$75.4434,136,627
Three months ended March 31, 20221,971,092$76.6936,107,719
Dividend Reinvestment and Stock Purchase Plan ("DRSPP")
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three months ended March 31, 2022 and 2021, respectively (dollars in thousands):
Three Months Ended March 31,
20222021
Shares of common stock issued1,132 5,320 
Dividend reinvestments/stock purchases under the DRSPP$89 $351 
Fourth Amended and Restated 2005 Stock Option and Incentive Plan
The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the 2005 Plan. As of March 31, 2022, 0.2 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.
Deferred Compensation Plan for Directors
During the three months ended March 31, 2022, 14,261 phantom stock units and 9,207 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $1.8 million and $1.8 million during the three months ended March 31, 2022 and 2021, respectively, related to the Deferred Compensation Plan.
As of March 31, 2022, there were 179,462 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.
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Indebtedness
The table below summarizes our consolidated mortgages and other loans payable, 2021 credit facility, senior unsecured notes and trust preferred securities outstanding as of March 31, 2022 and December 31, 2021, (amounts in thousands).
Debt Summary:March 31, 2022December 31, 2021
Balance
Fixed rate$1,971,239 $1,974,324 
Variable rate—hedged1,350,000 1,300,000 
Total fixed rate3,321,239 3,274,324 
Total variable rate813,478 801,051 
Total debt$4,134,717 $4,075,375 
Debt, preferred equity, and other investments subject to variable rate$302,217 $294,970 
Net exposure to variable rate debt511,261 506,081 
Percent of Total Debt:
Fixed rate80.3 %80.3 %
Variable rate (1)
19.7 %19.7 %
Total100.0 %100.0 %
Effective Interest Rate for the Year:
Fixed rate3.34 %3.14 %
Variable rate1.70 %2.11 %
Effective interest rate3.01 %3.02 %
(1)    Inclusive of the mitigating effect of our debt, preferred equity, and other investments subject to variable rate, the percent of total debt of our net exposure to variable rate debt was 13.3% and 13.4% as of March 31, 2022 and December 31, 2021, respectively.
The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (0.45% and 0.10% as of March 31, 2022 and December 31, 2021, respectively). As of December 6, 2021, the variable rate for our 2021 Credit facility bears interest at an interest rate based on adjusted Term SOFR (0.29% as of March 31, 2022). Our consolidated debt as of March 31, 2022 had a weighted average term to maturity of 3.46 years.
Certain of our debt and equity investments and other investments, with carrying values of $302.2 million as of March 31, 2022 and $295.0 million as of December 31, 2021, are variable rate investments which mitigate our exposure to interest rate changes on our unhedged variable rate debt. Inclusive of the mitigating effect of these investments, the net percent of our variable rate debt to total debt was 13.3% and 13.4%, respectively.
2021 Credit Facility
    In December 2021, we entered into an amended and restated credit facility, referred to as the 2021 credit facility, that was previously amended by the Company in November 2017, or the 2017 credit facility, and was originally entered into by the Company in November 2012, or the 2012 credit facility. As of March 31, 2022, the 2021 credit facility consisted of a $1.25 billion revolving credit facility, a $1.05 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of May 15 2026, May 15, 2027, and November 21, 2024, respectively. The revolving credit facility has two six-month as-of-right extension options to May 15, 2027. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.
As of March 31, 2022, the 2021 credit facility bore interest at a spread over adjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) 72.5 basis points to 140 basis points for loans under the revolving credit facility, (ii) 80 basis points to 160 basis points for loans under Term Loan A, and (iii) 85 basis points to 165 basis points for loans under Term Loan B, in each case based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category.
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As of March 31, 2022, the applicable spread over adjusted Term SOFR plus 10 basis points was 105 basis points for the revolving credit facility, 120 basis points for Term Loan A, and 125 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of March 31, 2022, the facility fee was 20 basis points.
As of March 31, 2022, we had $2.0 million of outstanding letters of credit, $500.0 million drawn under the revolving credit facility and $1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $0.75 billion under the 2021 credit facility. As of March 31, 2022 and December 31, 2021, the revolving credit facility had a carrying value of $492.0 million and $381.3 million, respectively, net of deferred financing costs. As of March 31, 2022 and December 31, 2021, the term loan facilities had a carrying value of $1.2 billion and $1.2 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2021 credit facility.
The 2021 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).
Restrictive Covenants
The terms of the 2021 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of March 31, 2022 and December 31, 2021, we were in compliance with all such covenants.
Interest Rate Risk
We are exposed to changes in interest rates primarily from our variable rate debt. Our exposure to interest rate fluctuations are managed through either the use of interest rate derivative instruments and/or through our variable rate debt and preferred equity investments. Based on the debt outstanding as of March 31, 2022, a hypothetical 100 basis point increase in the floating rate interest rate curve would increase our consolidated annual interest cost, net of interest income from variable rate debt and preferred equity investments, by $4.8 million and would increase our share of joint venture annual interest cost by $13.8 million. As of March 31, 2022, 27.3% of our $1.1 billion debt and preferred equity portfolio was indexed to LIBOR.
We recognize most derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through income. If a derivative is considered a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings.
Our long-term debt of $3.3 billion bears interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates. Our variable rate debt and variable rate joint venture debt as of March 31, 2022 bore interest based on a spread to LIBOR of 120 basis points to 340 basis points, and adjusted Term SOFR of 115 basis points to 130 basis points.
Off-Balance Sheet Arrangements
We have off-balance sheet investments, including joint ventures and debt and preferred equity investments. These investments all have varying ownership structures. A majority of our joint venture arrangements are accounted for under the equity method of accounting as we have the ability to exercise significant influence, but not control, over the operating and financial decisions of these joint venture arrangements. Our off-balance sheet arrangements are discussed in Note 5, "Debt and Preferred Equity Investments" and Note 6, "Investments in Unconsolidated Joint Ventures" in the accompanying consolidated financial statements.
Dividends/Distributions
We expect to pay dividends to our stockholders based on the distributions we receive from our Operating Partnership, which are generated by the collection of property revenues, net of operating expenses, interest on our debt and preferred equity portfolio, and asset sales.
To maintain our qualification as a REIT, we must pay annual dividends to our stockholders of at least 90% of our REIT taxable income, determined before taking into consideration the dividends paid deduction and net capital gains.
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Any dividend we pay may be in the form of cash, stock or a combination thereof, subject to IRS limitations on the use of stock for dividends. Additionally, if our REIT taxable income in a particular year exceeds the amount of cash dividends we pay in that year, we may pay stock dividends in order to maintain our REIT status and avoid certain REIT-level taxes.
Before we pay any cash dividend, whether for Federal income tax purposes or otherwise, which would only be paid out of available cash to the extent permitted under the 2021 credit facility and senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.
Insurance
We maintain “all-risk” property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism, excluding nuclear, biological, chemical, and radiological terrorism ("NBCR")), within three property insurance programs and liability insurance. Separate property and liability coverage may be purchased on a stand-alone basis for certain assets, such as development projects. Additionally, one of our captive insurance companies, Belmont Insurance Company, or Belmont, provides coverage for NBCR terrorist acts above a specified trigger. Belmont's retention is reinsured by our other captive insurance company, Ticonderoga Insurance Company ("Ticonderoga"). If Belmont or Ticonderoga are required to pay a claim under our insurance policies, we would ultimately record the loss to the extent of required payments. However, there is no assurance that in the future we will be able to procure coverage at a reasonable cost. Further, if we experience losses that are uninsured or that exceed policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. Additionally, our debt instruments contain customary covenants requiring us to maintain insurance and we could default under our debt instruments if the cost and/or availability of certain types of insurance make it impractical or impossible to comply with such covenants relating to insurance. Belmont and Ticonderoga provide coverage solely on properties owned by the Company or its affiliates.
Furthermore, with respect to certain of our properties, including properties held by joint ventures or subject to triple net leases, insurance coverage is obtained by a third-party and we do not control the coverage. While we may have agreements with such third parties to maintain adequate coverage and we monitor these policies, such coverage ultimately may not be maintained or adequately cover our risk of loss.
Funds from Operations
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 in December 2018, 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 compensation 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 our ability to make cash distributions.
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FFO for the three months ended March 31, 2022 and 2021 are as follows (in thousands):
Three Months Ended March 31,
20222021
Net income (loss) attributable to SL Green common stockholders$7,751 $(7,464)
Add:
Depreciation and amortization46,983 62,996 
Joint venture depreciation and noncontrolling interest adjustments60,432 55,702 
Net income (loss) attributable to noncontrolling interests349 (1,975)
Less:
Equity in net loss on sale of interest in unconsolidated joint venture/real estate (12,629)
Depreciable real estate reserves and impairment (8,241)
Loss on sale of real estate, net(1,002)(1,388)
Purchase price and other fair value adjustments 2,664 
Depreciation on non-rental real estate assets721 527 
Funds from Operations attributable to SL Green common stockholders and unit holders
$115,796 $128,326 
Cash flows provided by operating activities$81,402 $18,602 
Cash flows provided by investing activities13,496 20,181 
Cash flows used in financing activities(124,564)(9,971)
Inflation
Substantially all of our office leases provide for separate real estate tax and operating expense escalations as well as operating expense recoveries based on increases in the CPI or other measures such as porters' wage. In addition, many of the leases provide for fixed base rent increases. We believe that inflationary increases will be at least partially offset by the contractual rent increases and expense escalations described above.
Accounting Standards Updates
The Accounting Standards Updates are discussed in Note 2, "Significant Accounting Policies-Accounting Standards Updates" in the accompanying consolidated financial statements.
Forward-Looking Information
This report 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 report 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, 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 report are subject to a number of risks and uncertainties 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. These risks and uncertainties include:
the effect of general economic, business and financial conditions, and their effect on the New York City real estate market in particular;
dependence upon certain geographic markets;
risks of real estate acquisitions, dispositions, development and redevelopment, including the cost of construction delays and cost overruns;
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risks relating to debt and preferred equity investments;
availability and creditworthiness of prospective tenants and borrowers;
bankruptcy or insolvency of a major tenant or a significant number of smaller tenants or borrowers;
adverse changes in the real estate markets, including reduced demand for office space, increasing vacancy, and increasing availability of sublease space;
availability of capital (debt and equity);
unanticipated increases in financing and other costs, including a rise in interest rates;
our ability to comply with financial covenants in our debt instruments;
our ability to maintain our status as a REIT;
risks of investing through joint venture structures, including the fulfillment by our partners of their financial obligations;
the threat of terrorist attacks;
our ability to obtain adequate insurance coverage at a reasonable cost and the potential for losses in excess of our insurance coverage, including as a result of environmental contamination; and
legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.
Other factors and risks to our business, many of which are beyond our control, are described in other sections of this report and in our other filings with the SEC. 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.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
For quantitative and qualitative disclosure about market risk, see Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operation - Interest Rate Risk" in this Quarterly Report on Form 10-Q for the three months ended March 31, 2022 for the Company and the Operating Partnership and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk" in the Annual Report on Form 10-K for the year ended December 31, 2021 for the Company and the Operating Partnership. Our exposures to market risk have not changed materially since December 31, 2021.
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ITEM 4. CONTROLS AND PROCEDURES
SL GREEN REALTY CORP.
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e) of the Exchange Act. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports. Also, the Company has investments in certain unconsolidated entities. As the Company does not control these entities, its disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those the Company maintains with respect to its consolidated subsidiaries.
As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation as of the end of the period covered by this report, the Company's Chief Executive Officer and Chief Financial Officer concluded that its disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.
Changes in Internal Control over Financial Reporting
There have been no significant changes in the Company's internal control over financial reporting during the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.
SL GREEN OPERATING PARTNERSHIP, L.P.
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e) of the Exchange Act. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports. Also, the Company has investments in certain unconsolidated entities. As the Company does not control these entities, its disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those the Company maintains with respect to its consolidated subsidiaries.
As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation as of the end of the period covered by this report, the Company's Chief Executive Officer and Chief Financial Officer concluded that its disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.
Changes in Internal Control over Financial Reporting
There have been no significant changes in the Operating Partnership's internal control over financial reporting during the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As of March 31, 2022, the Company and the Operating Partnership were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio which if adversely determined could have a material adverse impact on us.
In September 2021, the Company acquired the fee position in 1591-1597 Broadway. The property was conveyed by the Company to a third party in May 2022, in connection with a settlement.
On October 31, 2021, HNA, through an affiliated entity, filed for Chapter 11 bankruptcy protection on account of its investment in 245 Park Avenue, together with another asset in Chicago. The Company contested the filing, on the basis that the filing was done in bad faith and in violation of HNA's agreements with the Company, and is currently appealing the Bankruptcy court’s ruling upholding the filing by HNA. See Note 5, "Debt and Preferred Equity Investments."
ITEM 1A. RISK FACTORS
As of March 31, 2022 there have been no material changes to the Risk Factors disclosed in "Part I. Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.
As of March 31, 2022, share repurchases executed under the program, excluding the redemption of OP units, were as follows:
Period
Shares repurchased
Average price paid per share
Total number of shares repurchased as part of the repurchase plan or programs
Year ended 20177,865,206$107.817,865,206
Year ended 20189,187,480$102.0617,052,686
Year ended 20194,333,260$88.6921,385,946
Year ended 20208,276,032$64.3029,661,978
Year ended 20214,474,649$75.4434,136,627
Three months ended March 31, 20221,971,092$76.6936,107,719
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
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ITEM 4. MINE SAFETY DISCLOSURES
Not Applicable.
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ITEM 5. OTHER INFORMATION
None.
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ITEM 6. EXHIBITS
Exhibits required by Item 601 of Regulation S-K are filed herewith or incorporated herein by reference and are listed in the attached Exhibit Index.
Exhibit No.Description
Certification by the Chairman and Chief Executive Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chief Financial Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chairman and Chief Executive Officer of the Company, the sole general partner of the Operating Partnership pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chief Financial Officer of the Company, the sole general partner of the Operating Partnership pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chairman and Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chief Financial Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chairman and Chief Executive Officer of the Company, the sole general partner of the Operating Partnership pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
Certification by the Chief Financial Officer of the Company, the sole general partner of the Operating Partnership pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
101 The following financial statements from SL Green Realty Corp. and SL Green Operating Partnership L.P.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Capital (unaudited) (vi) Consolidated Statements of Cash Flows (unaudited), and (vii) Notes to Consolidated Financial Statements (unaudited), detail tagged and filed herewith.
104 Cover Page Interactive Data File (formatted as Inline XBRL in Exhibit 101)
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SL GREEN REALTY CORP.
  By: SL Green Realty Corp.
/s/ Matthew J. DiLiberto
Dated: May 9, 2022 By: 
Matthew J. DiLiberto
Chief Financial Officer
(Principal Financial and Accounting Officer)
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
  SL GREEN OPERATING PARTNERSHIP, L.P.
By:/s/ Matthew J. DiLiberto
Dated: May 9, 2022  Matthew J. DiLiberto
Chief Financial Officer of SL Green, the sole general partner of the Operating Partnership (Principal Financial and Accounting Officer)

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