SL GREEN REALTY CORP - Quarter Report: 2023 September (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 September 30, 2023

☐ 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.	Maryland	13-3956775
SL Green Operating Partnership, L.P.	Delaware	13-3960938
	(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 filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller Reporting Company

☐

Emerging 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 filer

☐

Accelerated filer

☐

Non-accelerated filer

Smaller Reporting Company

☐

Emerging Growth Company

☐

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:

Registrant

Trading Symbol

Title of Each Class

Name of Each Exchange on Which Registered

SL Green Realty Corp.

SLG

Common Stock, $0.01 par value

New York Stock Exchange

SL Green Realty Corp.

SLG.PRI

6.500% Series I Cumulative Redeemable Preferred Stock, $0.01 par value

New York Stock Exchange

As of November 2, 2023, 64,416,699 shares of SL Green Realty Corp.'s common stock, par value $0.01 per share, were outstanding. As of November 2, 2023, 306,808 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 September 30, 2023 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 September 30, 2023, the Company owns 93.96% 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 September 30, 2023, noncontrolling investors held, in aggregate, a 6.04% 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.

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

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS	5

	FINANCIAL STATEMENTS OF SL GREEN REALTY CORP.
	Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022	5
	Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 (unaudited)	7
	Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended September 30, 2023 and 2022 (unaudited)	8
	Consolidated Statements of Equity for the three and nine months ended September 30, 2023 and 2022 (unaudited)	9
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (unaudited)	11

	FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P.
	Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022	14
	Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 (unaudited)	16
	Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended September 30, 2023 and 2022 (unaudited)	17
	Consolidated Statements of Capital for the three and nine months ended September 30, 2023 and 2022 (unaudited)	18
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (unaudited)	20
	Notes to Consolidated Financial Statements (unaudited)	22
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	57
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	73
Item 4.	Controls and Procedures (SL Green Realty Corp. and SL Green Operating Partnership, L.P.)	74
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	75
Item 1A.	Risk Factors	75
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	76
Item 3.	Defaults Upon Senior Securities	77
Item 4.	Mine Safety Disclosures	78
Item 5.	Other Information	79
Item 6.	Exhibits	80
	Signatures	81

Table of Contents

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

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Table of Contents

SL Green Realty Corp.

Consolidated Balance Sheets

(in thousands)


	September 30, 2023		December 31, 2022
	(unaudited)
Assets
Commercial real estate properties, at cost:
Land and land interests	$	1,090,370	$	1,576,927
Building and improvements	3,605,247		4,903,776
Building leasehold and improvements	1,343,386		1,691,831

Right of use asset - operating leases	953,236		1,026,265
	6,992,239		9,198,799
Less: accumulated depreciation	(1,997,942)		(2,039,554)
	4,994,297		7,159,245

Cash and cash equivalents	189,750		203,273
Restricted cash	119,573		180,781
Investments in marketable securities	9,616		11,240
Tenant and other receivables	37,295		34,497
Related party receivables	9,723		27,352
Deferred rents receivable	262,808		257,887
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,638 and $1,811 and allowances of $13,520 and $6,630 in 2023 and 2022, respectively	334,327		623,280
Investments in unconsolidated joint ventures	3,152,752		3,190,137
Deferred costs, net	108,370		121,157
Other assets	472,071		546,945
Total assets (1)	$	9,690,582	$	12,355,794
Liabilities
Mortgages and other loans payable, net	$	1,512,746	$	3,227,563
Revolving credit facility, net	394,368		443,217
Unsecured term loans, net	1,243,649		1,641,552
Unsecured notes, net	99,769		99,692
Accrued interest payable	17,934		14,227
Other liabilities	453,349		236,211
Accounts payable and accrued expenses	146,332		154,867
Deferred revenue	136,063		272,248
Lease liability - financing leases	105,198		104,218
Lease liability - operating leases	887,412		895,100
Dividend and distributions payable	21,725		21,569
Security deposits	50,071		50,472

Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities	100,000		100,000
Total liabilities (1)	5,168,616		7,260,936

Table of Contents

SL Green Realty Corp.

Consolidated Balance Sheets

(in thousands)


	September 30, 2023		December 31, 2022
	(unaudited)
Commitments and contingencies
Noncontrolling interests in Operating Partnership	248,222		269,993
Preferred units	166,501		177,943

Equity
SL Green stockholders' equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both September 30, 2023 and December 31, 2022	221,932		221,932
Common stock, $0.01 par value, 160,000 shares authorized and 65,458 and 65,440 issued and outstanding at September 30, 2023 and December 31, 2022, respectively (including 1,060 and 1,060 shares held in treasury at September 30, 2023 and December 31, 2022, respectively)	656		656
Additional paid-in-capital	3,813,758		3,790,358
Treasury stock at cost	(128,655)		(128,655)
Accumulated other comprehensive income	69,616		49,604
Retained earnings	62,406		651,138
Total SL Green stockholders' equity	4,039,713		4,585,033
Noncontrolling interests in other partnerships	67,530		61,889
Total equity	4,107,243		4,646,922
Total liabilities and equity	$	9,690,582	$	12,355,794

(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: $41.2 million and $41.2 million of land, $39.8 million and $41.0 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $5.2 million and $4.4 million of accumulated depreciation, $664.1 million and $599.2 million of other assets included in other line items, $50.0 million and $49.8 million of real estate debt, net, $0.0 million and $0.2 million of accrued interest payable, $— million and $— million of lease liabilities, and $304.7 million and $146.4 million of other liabilities included in other line items as of September 30, 2023 and December 31, 2022, respectively.

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

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Operations

(unaudited, in thousands, except per share data)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues
Rental revenue, net	$	150,991	$	162,952	$	531,978	$	474,215
Investment income	9,689		29,513		27,849		69,808
Other income	12,540		19,991		58,038		57,842
Total revenues	173,220		212,456		617,865		601,865
Expenses
Operating expenses, including related party expenses of $2 and $3 in 2023, and $0 and $5,695 in 2022	49,585		45,011		148,606		127,151
Real estate taxes	31,195		35,111		112,463		96,677
Operating lease rent	7,253		7,388		20,209		20,429
Interest expense, net of interest income	27,440		21,824		109,714		51,854
Amortization of deferred financing costs	2,152		2,043		6,327		5,908
Depreciation and amortization	50,212		48,462		197,844		142,359
Loan loss and other investment reserves, net of recoveries	—		—		6,890		—
Transaction related costs	166		292		1,083		321
Marketing, general and administrative	22,873		21,276		69,132		69,574
Total expenses	190,876		181,407		672,268		514,273

Equity in net loss from unconsolidated joint ventures	(15,126)		(21,997)		(44,470)		(31,262)
Equity in net loss on sale of interest in unconsolidated joint venture/real estate	—		—		(79)		(131)
Purchase price and other fair value adjustments	10,183		(1,117)		(6,987)		(7,348)
Gain (loss) on sale of real estate, net	516		4,276		(27,813)		(61,104)
Depreciable real estate reserves and impairment	389		—		(305,527)		—





Net (loss) income	(21,694)		12,211		(439,279)		(12,253)
Net loss (income) attributable to noncontrolling interests:
Noncontrolling interests in the Operating Partnership	1,574		(491)		27,493		1,831
Noncontrolling interests in other partnerships	1,794		993		4,459		(2,269)
Preferred units distributions	(1,903)		(1,598)		(5,352)		(4,844)
Net (loss) income attributable to SL Green	(20,229)		11,115		(412,679)		(17,535)
Perpetual preferred stock dividends	(3,738)		(3,738)		(11,213)		(11,213)
Net (loss) income attributable to SL Green common stockholders	$	(23,967)	$	7,377	$	(423,892)	$	(28,748)






















Basic (loss) earnings per share	$	(0.38)	$	0.11	$	(6.63)	$	(0.47)










Diluted (loss) earnings per share	$	(0.38)	$	0.11	$	(6.63)	$	(0.47)

Basic weighted average common shares outstanding	64,114		63,949		64,099		63,971
Diluted weighted average common shares and common share equivalents outstanding	68,296		68,897		68,274		69,249

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

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SL Green Realty Corp.

Consolidated Statements of Comprehensive (Loss) Income

(unaudited, in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net (loss) income	$	(21,694)	$	12,211	$	(439,279)	$	(12,253)
Other comprehensive income:
Increase in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments	12,799		50,488		23,062		111,378
(Decrease) increase in unrealized value of marketable securities	(181)		1,605		(1,625)		(642)
Other comprehensive income	12,618		52,093		21,437		110,736
Comprehensive (loss) income	(9,076)		64,304		(417,842)		98,483
Net loss (income) attributable to noncontrolling interests and preferred units distributions	1,465		(1,096)		26,600		(5,282)
Other comprehensive income attributable to noncontrolling interests	(771)		(3,114)		(1,425)		(6,404)
Comprehensive (loss) income attributable to SL Green	$	(8,382)	$	60,094	$	(392,667)	$	86,797

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		Shares	Par Value		Additional Paid- In-Capital		Treasury Stock		Accumulated Other Comprehensive Income		Retained Earnings		Noncontrolling Interests		Total
Balance at June 30, 2023		$	221,932	64,387	$	656	$	3,805,704	$	(128,655)	$	57,769	$	135,518	$	66,909	$	4,159,833
Net loss													(20,229)		(1,794)		(22,023)

Other comprehensive income											11,847						11,847
Preferred dividends													(3,738)				(3,738)
DRSPP proceeds				3			97										97

Reallocation of noncontrolling interest in the Operating Partnership													3,126				3,126

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings				8			7,957										7,957




Contributions to consolidated joint venture interests															3,266		3,266

Cash distributions to noncontrolling interests															(851)		(851)

Cash distributions declared ($0.812 per common share, none of which represented a return of capital for federal income tax purposes)													(52,271)				(52,271)
Balance at September 30, 2023		$	221,932	64,398	$	656	$	3,813,758	$	(128,655)	$	69,616	$	62,406	$	67,530	$	4,107,243

	SL Green Realty Corp. Stockholders
				Common Stock
		Series I Preferred Stock		Shares	Par Value		Additional Paid- In-Capital		Treasury Stock		Accumulated Other Comprehensive Income		Retained Earnings		Noncontrolling Interests		Total
Balance at June 30, 2022		$	221,932	64,302	$	655	$	3,801,272	$	(128,655)	$	8,595	$	779,999	$	64,966	$	4,748,764
Net income													11,115		(993)		10,122
Acquisition of subsidiary interest from noncontrolling interest							(29,742)								(75)		(29,817)
Other comprehensive income											48,979						48,979
Preferred dividends													(3,738)				(3,738)
DRSPP proceeds				3			140										140

Reallocation of noncontrolling interest in the Operating Partnership													28,624				28,624

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings				11			8,616										8,616




Contributions to consolidated joint venture interests															817		817


Cash distributions to noncontrolling interests															(148)		(148)

Cash distributions declared ($0.932 per common share, none of which represented a return of capital for federal income tax purposes)													(60,138)				(60,138)
Balance at September 30, 2022		$	221,932	64,316	$	655	$	3,780,286	$	(128,655)	$	57,574	$	755,862	$	64,567	$	4,752,221

Table of Contents

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		Shares	Par Value		Additional Paid- In-Capital		Treasury Stock		Accumulated Other Comprehensive Income		Retained Earnings		Noncontrolling Interests		Total
Balance at December 31, 2022		$	221,932	64,380	$	656	$	3,790,358	$	(128,655)	$	49,604	$	651,138	$	61,889	$	4,646,922


Net loss													(412,679)		(4,459)		(417,138)

Other comprehensive income											20,012						20,012
Preferred dividends													(11,213)				(11,213)
DRSPP proceeds				15			439										439

Reallocation of noncontrolling interest in the Operating Partnership													(8,072)				(8,072)

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings				3			22,961										22,961




Contributions to consolidated joint venture interests															11,714		11,714

Cash distributions to noncontrolling interests															(1,614)		(1,614)

Cash distributions declared ($2.437 per common share, none of which represented a return of capital for federal income tax purposes)													(156,768)				(156,768)
Balance at September 30, 2023		$	221,932	64,398	$	656	$	3,813,758	$	(128,655)	$	69,616	$	62,406	$	67,530	$	4,107,243

	SL Green Realty Corp. Stockholders
				Common Stock
		Series I Preferred Stock		Shares	Par Value		Additional Paid- In-Capital		Treasury Stock		Accumulated Other Comprehensive Income		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 loss													(17,535)		2,269		(15,266)
Acquisition of subsidiary interest from noncontrolling interest							(29,742)								(75)		(29,817)
Other comprehensive income											104,332						104,332
Preferred dividends													(11,213)				(11,213)
DRSPP proceeds				6			339										339

Reallocation of noncontrolling interest in the Operating Partnership													23,539				23,539

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings				215	3		22,144										22,147


Repurchases of common stock				(1,971)	(20)		(114,979)						(36,198)				(151,197)

Contributions to consolidated joint venture interests															52,164		52,164


Cash distributions to noncontrolling interests															(3,168)		(3,168)
Issuance of special dividend paid primarily in stock				1,961			163,115		(2,495)								160,620
Cash distributions declared ($2.797 per common share, none of which represented a return of capital for federal income tax purposes)													(178,512)				(178,512)
Balance at September 30, 2022		$	221,932	64,316	$	655	$	3,780,286	$	(128,655)	$	57,574	$	755,862	$	64,567	$	4,752,221

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

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Cash Flows

(unaudited, in thousands, except per share data)


	Nine Months Ended September 30,
	2023		2022
Operating Activities
Net loss	$	(439,279)	$	(12,253)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	204,171		148,267
Equity in net loss from unconsolidated joint ventures	44,470		31,262
Distributions of cumulative earnings from unconsolidated joint ventures	514		448
Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate	79		131
Purchase price and other fair value adjustments	6,987		7,348
Depreciable real estate reserves and impairment	305,527		—
Loss on sale of real estate, net	27,813		61,104
Loan loss reserves and other investment reserves, net of recoveries	6,890		—



Deferred rents receivable	(16,195)		(1,371)
Non-cash lease expense	15,477		17,332
Other non-cash adjustments	6,645		(11,950)
Changes in operating assets and liabilities:
Tenant and other receivables	(2,852)		7,800
Related party receivables	16,466		5,803
Deferred lease costs	(8,066)		(10,227)
Other assets	(13,254)		(35,114)
Accounts payable, accrued expenses, other liabilities and security deposits	23,655		21,345
Deferred revenue	9,978		17,208
Lease liability - operating leases	(7,688)		2,495
Net cash provided by operating activities	181,338		249,628
Investing Activities
Acquisitions of real estate property	—		(64,491)
Additions to land, buildings and improvements	(194,035)		(194,997)
Acquisition deposits and deferred purchase price	—		75,400
Investments in unconsolidated joint ventures	(119,522)		(146,598)
Distributions in excess of cumulative earnings from unconsolidated joint ventures	108,884		92,217
Net proceeds from disposition of real estate/joint venture interest	547,605		353,853
Cash and restricted cash assumed from acquisition of real estate investment	—		60,494

Proceeds from sale or redemption of marketable securities	—		11,465

Other investments	(17,545)		1,619
Origination of debt and preferred equity investments	(53,703)		(40,053)
Repayments or redemption of debt and preferred equity investments	—		124,405
Net cash provided by investing activities	271,684		273,314

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SL Green Realty Corp.

Consolidated Statements of Cash Flows

(unaudited, in thousands, except per share data)


	Nine Months Ended September 30,
	2023		2022
Financing Activities
Proceeds from mortgages and other loans payable	—		381,980
Repayments of mortgages and other loans payable	(4,340)		(290,936)
Proceeds from revolving credit facility, term loans and unsecured notes	358,000		1,124,000
Repayments of revolving credit facility, term loans and unsecured notes	(808,000)		(1,364,000)
Proceeds from stock options exercised and DRSPP issuance	439		339

Repurchase of common stock	—		(151,197)
Redemption of preferred stock	(11,700)		(17,967)
Redemption of OP units	(8,900)		(35,316)
Distributions to noncontrolling interests in other partnerships	(1,614)		(3,168)
Contributions from noncontrolling interests in other partnerships	3,580		52,164
Acquisition of subsidiary interest from noncontrolling interest	—		(29,817)
Distributions to noncontrolling interests in the Operating Partnership	(11,225)		(12,635)
Dividends paid on common and preferred stock	(172,920)		(197,124)
Other obligations related to secured borrowing	129,656		77,874
Tax withholdings related to restricted share awards	—		(3,915)
Deferred loan costs	(729)		(5,130)

Net cash used in financing activities	(527,753)		(474,848)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(74,731)		48,094
Cash, cash equivalents, and restricted cash at beginning of year	384,054		336,984
Cash, cash equivalents, and restricted cash at end of period	$	309,323	$	385,078





Supplemental Disclosure of Non-Cash Investing and Financing Activities:



Exchange of preferred equity investment for real estate or equity in joint venture	$	—	$	190,652
Exchange of debt investment for real estate or equity in joint venture	349,946		193,995
Assumption of mortgage and mezzanine loans	—		1,712,750
Issuance of special dividend paid primarily in stock	—		160,620
Tenant improvements and capital expenditures payable	—		18,518

Fair value adjustment to noncontrolling interest in the Operating Partnership	8,072		23,539

Deconsolidation of a subsidiary	101,351		—
Contribution to consolidated joint venture interest	8,134		—




Debt and preferred equity investments	—		302


Removal of fully depreciated commercial real estate properties	7,747		4,048





Recognition of right of use assets and related lease liabilities	—		57,938

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Cash Flows

(unaudited, in thousands, except per share data)

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.


	Nine Months Ended September 30,
	2023		2022
Cash and cash equivalents	$	189,750	$	201,267
Restricted cash	119,573		183,811
Total cash, cash equivalents, and restricted cash	$	309,323	$	385,078

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

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Balance Sheets

(in thousands)


	September 30, 2023		December 31, 2022
	(unaudited)
Assets
Commercial real estate properties, at cost:
Land and land interests	$	1,090,370	$	1,576,927
Building and improvements	3,605,247		4,903,776
Building leasehold and improvements	1,343,386		1,691,831

Right of use asset - operating leases	953,236		1,026,265
	6,992,239		9,198,799
Less: accumulated depreciation	(1,997,942)		(2,039,554)
	4,994,297		7,159,245

Cash and cash equivalents	189,750		203,273
Restricted cash	119,573		180,781
Investments in marketable securities	9,616		11,240
Tenant and other receivables	37,295		34,497
Related party receivables	9,723		27,352
Deferred rents receivable	262,808		257,887
Debt and preferred equity investments, net of discounts and deferred origination fees of $1,638 and $1,811 and allowances of $13,520 and $6,630 in 2023 and 2022, respectively	334,327		623,280
Investments in unconsolidated joint ventures	3,152,752		3,190,137
Deferred costs, net	108,370		121,157
Other assets	472,071		546,945
Total assets (1)	$	9,690,582	$	12,355,794
Liabilities
Mortgages and other loans payable, net	$	1,512,746	$	3,227,563
Revolving credit facility, net	394,368		443,217
Unsecured term loans, net	1,243,649		1,641,552
Unsecured notes, net	99,769		99,692
Accrued interest payable	17,934		14,227
Other liabilities	453,349		236,211
Accounts payable and accrued expenses	146,332		154,867
Deferred revenue	136,063		272,248
Lease liability - financing leases	105,198		104,218
Lease liability - operating leases	887,412		895,100
Dividend and distributions payable	21,725		21,569
Security deposits	50,071		50,472

Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities	100,000		100,000
Total liabilities (1)	5,168,616		7,260,936
Commitments and contingencies
Limited partner interests in SLGOP (4,139 and 3,670 limited partner common units outstanding at September 30, 2023 and December 31, 2022, respectively)	248,222		269,993
Preferred units	166,501		177,943

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Balance Sheets

(in thousands)


	September 30, 2023		December 31, 2022
	(unaudited)
Capital
SLGOP partners' capital:
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both September 30, 2023 and December 31, 2022	221,932		221,932
SL Green partners' capital (685 and 680 general partner common units and 63,713 and 63,700 limited partner common units outstanding at September 30, 2023 and December 31, 2022, respectively)	3,748,165		4,313,497
Accumulated other comprehensive income	69,616		49,604
Total SLGOP partners' capital	4,039,713		4,585,033
Noncontrolling interests in other partnerships	67,530		61,889
Total capital	4,107,243		4,646,922
Total liabilities and capital	$	9,690,582	$	12,355,794

(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: $41.2 million and $41.2 million of land, $39.8 million and $41.0 million of building and improvements, $— million and $— million of building and leasehold improvements, $— million and $— million of right of use assets, $5.2 million and $4.4 million of accumulated depreciation, $664.1 million and $599.2 million of other assets included in other line items, $50.0 million and $49.8 million of real estate debt, net, $0.0 million and $0.2 million of accrued interest payable, $— million and $— million of lease liabilities, and $304.7 million and $146.4 million of other liabilities included in other line items as of September 30, 2023 and December 31, 2022, 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues
Rental revenue, net	$	150,991	$	162,952	$	531,978	$	474,215

Investment income	9,689		29,513		27,849		69,808
Other income	12,540		19,991		58,038		57,842
Total revenues	173,220		212,456		617,865		601,865
Expenses
Operating expenses, including related party expenses of $2 and $3 in 2023, and $0 and $5,695 in 2022	49,585		45,011		148,606		127,151
Real estate taxes	31,195		35,111		112,463		96,677
Operating lease rent	7,253		7,388		20,209		20,429
Interest expense, net of interest income	27,440		21,824		109,714		51,854
Amortization of deferred financing costs	2,152		2,043		6,327		5,908
Depreciation and amortization	50,212		48,462		197,844		142,359
Loan loss and other investment reserves, net of recoveries	—		—		6,890		—
Transaction related costs	166		292		1,083		321
Marketing, general and administrative	22,873		21,276		69,132		69,574
Total expenses	190,876		181,407		672,268		514,273


Equity in net loss from unconsolidated joint ventures	(15,126)		(21,997)		(44,470)		(31,262)
Equity in net loss on sale of interest in unconsolidated joint venture/real estate	—		—		(79)		(131)
Purchase price and other fair value adjustments	10,183		(1,117)		(6,987)		(7,348)
Gain (loss) on sale of real estate, net	516		4,276		(27,813)		(61,104)
Depreciable real estate reserves and impairment	389		—		(305,527)		—





Net (loss) income	(21,694)		12,211		(439,279)		(12,253)
Net loss (income) attributable to noncontrolling interests:
Noncontrolling interests in other partnerships	1,794		993		4,459		(2,269)
Preferred units distributions	(1,903)		(1,598)		(5,352)		(4,844)
Net (loss) income attributable to SLGOP	(21,803)		11,606		(440,172)		(19,366)
Perpetual preferred unit distributions	(3,738)		(3,738)		(11,213)		(11,213)
Net (loss) income attributable to SLGOP common unitholders	$	(25,541)	$	7,868	$	(451,385)	$	(30,579)






















Basic (loss) earnings per unit	$	(0.38)	$	0.11	$	(6.63)	$	(0.47)










Diluted (loss) earnings per unit	$	(0.38)	$	0.11	$	(6.63)	$	(0.47)

Basic weighted average common units outstanding	68,296		68,037		68,274		68,075
Diluted weighted average common units and common unit equivalents outstanding	68,296		68,897		68,274		69,249

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

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Statements of Comprehensive (Loss) Income

(unaudited, in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net (loss) income	$	(21,694)	$	12,211	$	(439,279)	$	(12,253)
Other comprehensive income:
Increase in unrealized value of derivative instruments, including SLGOP's share of joint venture derivative instruments	12,799		50,488		23,062		111,378
(Decrease) increase in unrealized value of marketable securities	(181)		1,605		(1,625)		(642)
Other comprehensive income	12,618		52,093		21,437		110,736
Comprehensive (loss) income	(9,076)		64,304		(417,842)		98,483
Net loss (income) attributable to noncontrolling interests	1,794		993		4,459		(2,269)
Other comprehensive income attributable to noncontrolling interests	(771)		(3,114)		(1,425)		(6,404)
Comprehensive (loss) income attributable to SLGOP	$	(8,053)	$	62,183	$	(414,808)	$	89,810

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 June 30, 2023	$	221,932	64,387	$	3,813,223	$	57,769	$	66,909	$	4,159,833


Net loss				(20,229)				(1,794)		(22,023)

Other comprehensive income						11,847				11,847
Preferred distributions				(3,738)						(3,738)
DRSPP proceeds			3	97						97

Reallocation of noncontrolling interests in the Operating Partnership				3,126						3,126

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings			8	7,957						7,957



Contribution to consolidated joint venture interests								3,266		3,266


Cash distributions to noncontrolling interests								(851)		(851)

Cash distributions declared ($0.812 per common unit, none of which represented a return of capital for federal income tax purposes)				(52,271)						(52,271)
Balance at September 30, 2023	$	221,932	64,398	$	3,748,165	$	69,616	$	67,530	$	4,107,243

	SL Green Operating Partnership Unitholders
			Partners' Interest
	Series I Preferred Units		Common Units	Common Unitholders		Accumulated Other Comprehensive Income		Noncontrolling Interests		Total
Balance at June 30, 2022	$	221,932	64,302	$	4,453,271	$	8,595	$	64,966	$	4,748,764
Net income				11,115				(993)		10,122
Acquisition of subsidiary interest from noncontrolling interest				(29,742)				(75)		(29,817)
Other comprehensive income						48,979				48,979
Preferred distributions				(3,738)						(3,738)
DRSPP proceeds			3	140						140

Reallocation of noncontrolling interests in the operating partnership				28,624						28,624

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings			11	8,616						8,616



Contribution to consolidated joint venture interests								817		817



Cash distributions to noncontrolling interests								(148)		(148)

Cash distributions declared ($0.932 per common unit, none of which represented a return of capital for federal income tax purposes)				(60,138)						(60,138)
Balance at September 30, 2022	$	221,932	64,316	$	4,408,148	$	57,574	$	64,567	$	4,752,221

Table of Contents

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 Income		Noncontrolling Interests		Total
Balance at December 31, 2022	$	221,932	64,380	$	4,313,497	$	49,604	$	61,889	$	4,646,922


Net loss				(412,679)				(4,459)		(417,138)

Other comprehensive income						20,012				20,012
Preferred distributions				(11,213)						(11,213)
DRSPP proceeds			15	439						439

Reallocation of noncontrolling interests in the Operating Partnership				(8,072)						(8,072)

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings			3	22,961						22,961



Contributions to consolidated joint venture interests								11,714		11,714


Cash distributions to noncontrolling interests								(1,614)		(1,614)

Cash distributions declared ($2.437 per common unit, none of which represented a return of capital for federal income tax purposes)				(156,768)						(156,768)
Balance at September 30, 2023	$	221,932	64,398	$	3,748,165	$	69,616	$	67,530	$	4,107,243

	SL Green Operating Partnership Unitholders
			Partners' Interest
	Series I Preferred Units		Common Units	Common Unitholders		Accumulated Other Comprehensive Income		Noncontrolling Interests		Total
Balance at December 31, 2021	$	221,932	64,105	$	4,589,702	$	(46,758)	$	13,377	$	4,778,253
Net loss				(17,535)				2,269		(15,266)
Acquisition of subsidiary interest from noncontrolling interest				(29,742)				(75)		(29,817)
Other comprehensive income						104,332				104,332
Preferred distributions				(11,213)						(11,213)
DRSPP proceeds			6	339						339

Reallocation of noncontrolling interests in the operating partnership				23,539						23,539

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings			215	22,147						22,147


Repurchases of common stock			(1,971)	(151,197)						(151,197)
Contributions to consolidated joint venture interests								52,164		52,164



Cash distributions to noncontrolling interests								(3,168)		(3,168)
Issuance of special distribution paid primarily in units			1,961	160,620						160,620
Cash distributions declared ($2.797 per common unit, none of which represented a return of capital for federal income tax purposes)				(178,512)						(178,512)
Balance at September 30, 2022	$	221,932	64,316	$	4,408,148	$	57,574	$	64,567	$	4,752,221

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

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Statements of Cash Flows

(unaudited, in thousands)


	Nine Months Ended September 30,
	2023		2022
Operating Activities
Net loss	$	(439,279)	$	(12,253)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	204,171		148,267
Equity in net loss from unconsolidated joint ventures	44,470		31,262
Distributions of cumulative earnings from unconsolidated joint ventures	514		448
Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate	79		131
Purchase price and other fair value adjustments	6,987		7,348
Depreciable real estate reserves and impairment	305,527		—
Loss on sale of real estate, net	27,813		61,104
Loan loss reserves and other investment reserves, net of recoveries	6,890		—



Deferred rents receivable	(16,195)		(1,371)
Non-cash lease expense	15,477		17,332
Other non-cash adjustments	6,645		(11,950)
Changes in operating assets and liabilities:
Tenant and other receivables	(2,852)		7,800
Related party receivables	16,466		5,803
Deferred lease costs	(8,066)		(10,227)
Other assets	(13,254)		(35,114)
Accounts payable, accrued expenses, other liabilities and security deposits	23,655		21,345
Deferred revenue	9,978		17,208
Lease liability - operating leases	(7,688)		2,495
Net cash provided by operating activities	181,338		249,628
Investing Activities
Acquisitions of real estate property	—		(64,491)
Additions to land, buildings and improvements	(194,035)		(194,997)
Acquisition deposits and deferred purchase price	—		75,400
Investments in unconsolidated joint ventures	(119,522)		(146,598)
Distributions in excess of cumulative earnings from unconsolidated joint ventures	108,884		92,217
Net proceeds from disposition of real estate/joint venture interest	547,605		353,853
Cash and restricted cash assumed from acquisition of real estate investment	—		60,494

Proceeds from sale or redemption of marketable securities	—		11,465

Other investments	(17,545)		1,619
Origination of debt and preferred equity investments	(53,703)		(40,053)
Repayments or redemption of debt and preferred equity investments	—		124,405
Net cash provided by investing activities	271,684		273,314

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Statements of Cash Flows

(unaudited, in thousands)


	Nine Months Ended September 30,
	2023		2022
Financing Activities
Proceeds from mortgages and other loans payable	—		381,980
Repayments of mortgages and other loans payable	(4,340)		(290,936)
Proceeds from revolving credit facility, term loans and unsecured notes	358,000		1,124,000
Repayments of revolving credit facility, term loans and unsecured notes	(808,000)		(1,364,000)
Proceeds from stock options exercised and DRSPP issuance	439		339

Repurchase of common units	—		(151,197)
Redemption of preferred units	(11,700)		(17,967)
Redemption of OP units	(8,900)		(35,316)
Distributions to noncontrolling interests in other partnerships	(1,614)		(3,168)
Contributions from noncontrolling interests in other partnerships	3,580		52,164
Acquisition of subsidiary interest from noncontrolling interest	—		(29,817)
Distributions paid on common and preferred units	(184,145)		(209,759)
Other obligations related to secured borrowing	129,656		77,874
Tax withholdings related to restricted share awards	—		(3,915)
Deferred loan costs	(729)		(5,130)

Net cash used in financing activities	(527,753)		(474,848)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(74,731)		48,094
Cash, cash equivalents, and restricted cash at beginning of year	384,054		336,984
Cash, cash equivalents, and restricted cash at end of period	$	309,323	$	385,078





Supplemental Disclosure of Non-Cash Investing and Financing Activities:



Exchange of preferred equity investment for real estate or equity in joint venture	$	—	$	190,652
Exchange of debt investment for real estate or equity in joint venture	349,946		193,995
Assumption of mortgage and mezzanine loans	—		1,712,750
Issuance of special distribution paid primarily in units	—		160,620
Tenant improvements and capital expenditures payable	—		18,518

Fair value adjustment to noncontrolling interest in the Operating Partnership	8,072		23,539

Deconsolidation of a subsidiary	101,351		—
Contribution to consolidated joint venture interest	8,134		—




Debt and preferred equity investments	—		302


Removal of fully depreciated commercial real estate properties	7,747		4,048





Recognition of right of use assets and related lease liabilities	—		57,938


	Nine Months Ended September 30,
	2023		2022
Cash and cash equivalents	$	189,750	$	201,267
Restricted cash	119,573		183,811
Total cash, cash equivalents, and restricted cash	$	309,323	$	385,078

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

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements

September 30, 2023

(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 September 30, 2023, noncontrolling investors held, in the aggregate, a 6.04% 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 September 30, 2023, 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:


			Consolidated			Unconsolidated		Total
Location	Property Type		Number of Buildings		Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Weighted Average Leased Occupancy (1) (unaudited)
Commercial:
Manhattan	Office		13		8,399,141	12	15,412,174	25	23,811,315	89.3	%
	Retail		2		17,888	8	294,865	10	312,753	91.0	%
	Development/Redevelopment	(1)	4	(2)	1,466,419	3	2,893,357	7	4,359,776	N/A

			19		9,883,448	23	18,600,396	42	28,483,844	N/A
Suburban	Office		7		862,800	—	—	7	862,800	77.4	%



Total commercial properties			26		10,746,248	23	18,600,396	49	29,346,644	N/A
Residential:
Manhattan	Residential		1	(2)	140,382	1	221,884	2	362,266	99.0	%

Total portfolio			27		10,886,630	24	18,822,280	51	29,708,910	N/A

(1)The weighted average leased occupancy for commercial properties represents the total leased square footage divided by the total square footage at acquisition. The weighted average leased occupancy for residential properties represents the total leased units divided by the total available units. Properties under construction are not included in the calculation of weighted average leased occupancy.

(2)As of September 30, 2023, we owned a building at 7 Dey Street / 185 Broadway that was comprised of approximately 140,382 square feet (unaudited) of residential space and approximately 50,206 square feet (unaudited) of office and retail space that is under development. For the purpose of this report, we have included this building in the number of residential properties we own. However, we have included only the residential square footage in the residential approximate square footage, and have listed the balance of the square footage as development square footage.

As of September 30, 2023, 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 $334.3 million, excluding debt and preferred equity investments and other financing receivables totaling $8.3 million that are included in balance sheet line items other than the Debt and preferred equity investments line item.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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 September 30, 2023 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, 2023. 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, 2022 of the Company and the Operating Partnership.

The consolidated balance sheet at December 31, 2022 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.

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.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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.

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.

In April 2023, the ground rent appraisal proceeding concluded for our wholly-owned leasehold interest at 625 Madison Avenue. As a result of that proceeding, the ground rent was reset from the previous rent of $4.61 million per annum to a new rent of $20.25 million per annum, effective as of July 1, 2022. Following a strategic review of the property that addressed a range of relevant considerations, including the increase in ground rent to an amount substantially above what the Company believed was appropriate, the Company recorded a $305.9 million charge to write down the carrying value of its investment in the leasehold interest to zero in the quarter ending June 30, 2023, which is included in Depreciable real estate reserves and impairments in the consolidated statement of operations.

For the three months ended September 30, 2023, we recognized a reduction of rental revenue of ($0.1 million) 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. For the nine months ended September 30, 2023, we recognized additional rental revenue of $14.3 million for the amortization of aggregate below-market leases in excess of above-market leases. For the three and nine months ended September 30, 2022, we recognized additional rental revenue of $0.2 million and a reduction of rental revenue of ($0.1 million), respectively.

The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023		December 31, 2022
Identified intangible assets (included in other assets):
Gross amount	$	189,680	$	403,552
Accumulated amortization	(184,491)		(190,066)
Net	$	5,189	$	213,486
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	205,394	$	361,338
Accumulated amortization	(202,000)		(212,191)
Net	$	3,394	$	149,147

Cash and Cash Equivalents

We consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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 September 30, 2023, 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.

As of September 30, 2023 and December 31, 2022, we held the following marketable securities (in thousands):


	September 30, 2023		December 31, 2022
Commercial mortgage-backed securities	$	9,616	$	11,240



Total investment in marketable securities	$	9,616	$	11,240

The cost basis of the commercial mortgage-backed securities was $11.5 million as of September 30, 2023 and December 31, 2022, respectively. These securities mature at various times through 2030. All securities were in an unrealized loss position as of September 30, 2023 and December 31, 2022 with an unrealized loss of $1.9 million and a fair value of $9.6 million as of September 30, 2023, and an unrealized loss of $0.3 million and a fair value of $11.2 million as of December 31, 2022. The securities were in a continuous unrealized loss position for less than 12 months as of September 30, 2023 and December 31, 2022. We do not intend to sell our other 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 did not dispose of any debt marketable securities during three and nine months ended September 30, 2023. During the three and nine months ended September 30, 2022, we received aggregate net proceeds of $7.8 million from the sale of one debt marketable security and $3.7 million from the repayment of one debt marketable security.

We held no equity marketable securities as of September 30, 2023 and December 31, 2022. We recognized $0.1 million of unrealized gain for the three months ended September 30, 2022 and $6.1 million of unrealized loss for the nine months ended September 30, 2022.

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 September 30, 2023.

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.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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.

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.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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.

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.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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.

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.

During the three and nine months ended September 30, 2023, we recorded Federal, state and local tax provisions totaling $2.5 million and $5.2 million, respectively. During the three months ended September 30, 2022, we recorded a Federal, state and local tax benefit of $0.1 million. During the nine months ended September 30, 2022, we recorded a Federal, state and local tax provision of $2.2 million.

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.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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, Paramount Global (formerly ViacomCBS Inc.), which accounted for 6.0% of our share of annualized cash rent as of September 30, 2023, 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, for the three months ended September 30, 2023.

For the three months ended September 30, 2023, 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:


Property			Three months ended September 30, 2023
One Vanderbilt Avenue			15.6%
11 Madison Avenue			8.3%
420 Lexington Ave			6.8%
1515 Broadway			6.4%
245 Park Avenue			5.7%
280 Park Avenue			5.7%
1185 Avenue of the Americas			5.5%

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. The Company adopted this guidance on January 1, 2023 and it did not have a material impact on the Company's consolidated financial statements.

In August 2023, the FASB issued ASU No. 2023-05 Business Combinations - Joint Venture Formations (Subtopic 805-60) Recognition and Initial Measurement. ASU 2023-05 addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The objectives of the amendments are to provide decision-useful information to investors and other allocators of capital (collectively, investors) in a joint venture's financial statements and reduce diversity in practice. The amendments require that a joint venture apply the following key adaptations from the business combinations guidance upon formation: (i) a joint venture is the formation of a new entity without an accounting acquirer, (ii) a joint venture measures its identifiable net assets and goodwill, if any, at the formation date, (iii) initial measurement of a joint venture's total net assets is equal to the fair value of 100 percent of the joint venture's equity, and (iv) a joint venture provides relevant disclosures. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted in any interim or annual period in which financial statements have not yet been issued, either prospectively or retrospectively. We are currently evaluating the impact of the adoption of ASU 2023-05 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

3. Property Acquisitions

During the nine months ended September 30, 2023, we did not acquire any properties from a third party.

4. Properties Held for Sale and Property Dispositions

Properties Held for Sale

As of September 30, 2023, no properties were classified as held for sale.

Property Dispositions

The following table summarizes the properties disposed of during the nine months ended September 30, 2023:

Property

Disposition Date

Property Type

Unaudited Approximate Usable Square Feet

Sales Price (1)

(in millions)

Loss on Sale (2)

(in millions)

245 Park Avenue (3)

June 2023

Fee Interest

1,782,793

1,995.0

(28.3)

(1)Sales price represents the gross sales price for a property or the gross asset value for the sale of interests in a property.

(2)The loss on sale is net of $8.0 million of employee compensation accrued in connection with the realization of the investment. The amounts do not include adjustments for expenses recorded in periods subsequent to the quarter in which the disposition was consummated.

(3)In June 2023, the Company sold a 49.9% interest, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and deconsolidation of the 50.1% interest we retained. We recorded our retained investment at fair value which resulted in the recognition of a fair value adjustment of ($17.0 million), which is reflected in the Company's consolidated statements of operations within Purchase price and other fair value adjustments. See Note 6, "Investments in Unconsolidated Joint Venture."

5. Debt and Preferred Equity Investments

Below is a summary of the activity in our debt and preferred equity investments for the nine months ended September 30, 2023 and the twelve months ended December 31, 2022 (in thousands):


	September 30, 2023		December 31, 2022
Balance at beginning of year (1)	$	623,280	$	1,088,723
Debt investment originations/fundings/accretion (2)	61,845		62,992
Preferred equity investment originations/accretion (2)	6,039		37,505
Redemptions/sales/syndications/equity ownership/amortization	(349,947)		(565,940)
Net change in loan loss reserves	(6,890)		—
Balance at end of period (1)	$	334,327	$	623,280

(1)Net of unamortized fees, discounts, and premiums.

(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.

Below is a summary of our debt and preferred equity investments as of September 30, 2023 (dollars in thousands):


	Floating Rate					Fixed Rate					Total Carrying Value		Senior Financing		Weighted Average Yield at End of Period	Maturity (1)
Type	Carrying Value		Face Value		Interest Rate	Carrying Value		Face Value		Interest Rate


Mezzanine Debt	$	158,430	$	158,604	S + 4.95% - 13.25%	$	50,000	$	64,985	7.00% - 14.30%	$	208,430	$	1,069,704	9.15%	2023 - 2029
Preferred Equity	—		—		—	125,897		125,897		6.5%	125,897		250,000		6.55%	2027
Balance at end of period	$	158,430	$	158,604		$	175,897	$	190,882		$	334,327	$	1,319,704

(1)Excludes available extension options to the extent they have not been exercised as of the date of this filing.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

The following table is a roll forward of our total allowance for loan losses for the nine months ended September 30, 2023 and the twelve months ended December 31, 2022 (in thousands):


	September 30, 2023		December 31, 2022
Balance at beginning of year	$	6,630	$	6,630



Current period provision for loan loss	6,890		—

Balance at end of period (1)	$	13,520	$	6,630

(1)As of September 30, 2023, all debt and preferred equity investments on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $50.0 million.

As of September 30, 2023, three investments with carrying values, net of reserves, totaling of $88.8 million were not performing in accordance with their respective terms. As of December 31, 2022, one investment with a carrying value, net of reserves, of $6.9 million was not performing in accordance with its respective terms. This is further discussed in the Debt Investments and Preferred Equity Investments tables below.

No other financing receivables were 90 days past due as of September 30, 2023 and December 31, 2022.

The following table sets forth the carrying value of our debt and preferred equity investment portfolio by risk rating as of September 30, 2023 and December 31, 2022 (dollars in thousands):


Risk Rating	September 30, 2023		December 31, 2022
1 - Low Risk Assets - Low probability of loss	$	207,156	$	264,069
2 - Watch List Assets - Higher potential for loss	127,171		352,321
3 - High Risk Assets - Loss more likely than not	—		6,890
	$	334,327	$	623,280

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 September 30, 2023 (dollars in thousands):


	As of September 30, 2023
Risk Rating	2023 (1)		2022 (1)		2021 (1)		Prior (1)(2)		Total
1 - Low Risk Assets - Low probability of loss	$	—	$	—	$	—	$	207,156	$	207,156
2 - Watch List Assets - Higher potential for loss	—		—		—		127,171		127,171
3 - High Risk Assets - Loss more likely than not	—		—		—		—		—
	$	—	$	—	$	—	$	334,327	$	334,327

(1)Year in which the investment was originated or acquired by us or in which a material modification occurred.

(2)During the nine months ended September 30, 2023, we recognized a $6.9 million provision for loan loss related to an investment originated prior to 2021.

We have determined that we have one portfolio segment of financing receivables as of September 30, 2023 and December 31, 2022 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 $9.1 million and $9.0 million as of September 30, 2023 and December 31, 2022, respectively. The Company recorded no provisions for loan losses related to these financing receivables for the three and nine months ended September 30, 2023 and 2022. All of these loans have a risk rating of 2 and were performing in accordance with their respective terms. One loan with a carrying value of $5.6 million was put on non-accrual in July 2020 and remains on non-accrual as of September 30, 2023. No investment income has been recognized subsequent to it being put on non-accrual.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

Debt Investments

As of September 30, 2023 and December 31, 2022, we held the following debt investments with an aggregate weighted average current yield of 9.15% as of September 30, 2023 (dollars in thousands):


Loan Type	September 30, 2023 Future Funding Obligations		September 30, 2023 Senior Financing		September 30, 2023 Carrying Value (1)		December 31, 2022 Carrying Value (1)		Maturity Date (2)
Fixed Rate Investments:
Mezzanine Loan (3)(4)	$	—	$	105,000	$	13,366	$	13,366	June 2024
Mezzanine Loan	—		95,000		30,000		30,000		January 2025
Mezzanine Loan	—		85,000		20,000		20,000		December 2029
Mezzanine Loan (5)	—		—		—		225,367
Mezzanine Loan (5)	—		—		—		77,109
Total fixed rate	$	—	$	285,000	$	63,366	$	365,842
Floating Rate Investments:
Mezzanine Loan (6)	$	—	$	275,000	$	50,000	$	50,000	April 2023
Mezzanine Loan	3,761		54,000		8,243		8,243		November 2023
Mezzanine Loan	3,723		269,620		61,258		46,884		May 2024
Mezzanine Loan	—		186,084		39,083		39,083		January 2026
Total floating rate	$	7,484	$	784,704	$	158,584	$	144,210
Allowance for loan loss	$	—	$	—	$	(13,520)	$	(6,630)
Total	$	7,484	$	1,069,704	$	208,430	$	503,422

(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)Carrying value is net of a $12.0 million participation that was sold and did not meet the conditions for sale accounting. That participation is included in Other assets and Other liabilities on the consolidated balance sheets as a result.

(4)This loan went into default and was put on non-accrual in June 2020 and remains on non-accrual as of September 30, 2023. No investment income has been recognized subsequent to it being put on non-accrual. In the first quarter of 2023, the Company fully reserved the balance of the investment. Additionally, we determined the borrower entity to be a VIE, in which we are not the primary beneficiary.

(5)In September 2023, following a UCC foreclosure, the Company converted its previous mezzanine debt investments in the fee interest at 625 Madison Avenue to a 90.43% ownership interest.

(6)This loan went into default and was put on non-accrual in January 2023 and remains on non-accrual as of September 30, 2023. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower with respect to the loan.

Preferred Equity Investments

As of September 30, 2023 and December 31, 2022, we held the following preferred equity investment with an aggregate weighted average current yield of 6.55% as of September 30, 2023 (dollars in thousands):


Type	September 30, 2023 Future Funding Obligations		September 30, 2023 Senior Financing		September 30, 2023 Carrying Value (1)		December 31, 2022 Carrying Value (1)		Mandatory Redemption (2)
Preferred Equity	$	—	$	250,000	$	125,897	$	119,858	February 2027

Allowance for loan loss	$	—	$	—	$	—	$	—
Total	$	—	$	250,000	$	125,897	$	119,858

(1)Carrying value is net of deferred origination fees.

(2)Represents contractual redemption, excluding any unexercised extension options.

6. Investments in Unconsolidated Joint Ventures

We have investments in several real estate joint ventures with various partners. As of September 30, 2023, the book value of these investments was $3.2 billion, net of investments with negative book values totaling $129.1 million for which we have an implicit commitment to fund future capital needs.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

As of September 30, 2023, 800 Third Avenue, 21 East 66th Street and 625 Madison Avenue are VIEs in which we are not the primary beneficiary. As of December 31, 2022, 800 Third Avenue and 21 East 66th Street are VIEs in which we are not the primary beneficiary. Our net equity investment in these VIEs was $453.7 million and $86.2 million as of September 30, 2023 and December 31, 2022, 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.

The table below provides general information on each of our joint ventures as of September 30, 2023:


Property	Partner	Ownership Interest (1)	Economic Interest (1)	Unaudited Approximate Square Feet
100 Park Avenue	Prudential Real Estate Investors	49.90%	49.90%	834,000
717 Fifth Avenue	Wharton Properties / Private Investor	10.92%	10.92%	119,500
800 Third Avenue	Private Investors	60.52%	60.52%	526,000
919 Third Avenue	New York State Teacher's Retirement System	51.00%	51.00%	1,454,000
11 West 34th Street	Private Investor / Wharton Properties	30.00%	30.00%	17,150
280 Park Avenue	Vornado Realty Trust	50.00%	50.00%	1,219,158
1552-1560 Broadway (2)	Wharton Properties	50.00%	50.00%	57,718
10 East 53rd Street	Canadian Pension Plan Investment Board	55.00%	55.00%	354,300
21 East 66th Street (3)	Private Investors	32.28%	32.28%	13,069
650 Fifth Avenue (4)	Wharton Properties	50.00%	50.00%	69,214
11 Madison Avenue	PGIM Real Estate	60.00%	60.00%	2,314,000
One Vanderbilt Avenue	National Pension Service of Korea / Hines Interest LP	71.01%	71.01%	1,657,198
Worldwide Plaza	RXR Realty / New York REIT	24.95%	24.95%	2,048,725
1515 Broadway	Allianz Real Estate of America	56.87%	56.87%	1,750,000
2 Herald Square	Israeli Institutional Investor	51.00%	51.00%	369,000
115 Spring Street	Private Investor	51.00%	51.00%	5,218
15 Beekman (5)	A fund managed by Meritz Alternative Investment Management	20.00%	20.00%	221,884
85 Fifth Avenue	Wells Fargo	36.27%	36.27%	12,946
One Madison Avenue (6)	National Pension Service of Korea / Hines Interest LP / International Investor	25.50%	25.50%	1,048,700
220 East 42nd Street	A fund managed by Meritz Alternative Investment Management	51.00%	51.00%	1,135,000
450 Park Avenue (7)	Korean Institutional Investor / Israeli Institutional Investor	50.10%	25.10%	337,000
5 Times Square	RXR Realty led investment group	31.55%	31.55%	1,131,735
245 Park Avenue (8)	U.S. Affiliate of Mori Trust Co., Ltd	50.10%	50.10%	1,782,793
625 Madison Avenue (9)	Private Investor	90.43%	90.43%	563,000

(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of September 30, 2023. Changes in ownership or economic interests within the current year are disclosed in the notes below.

(2)The joint venture that owns 1552 Broadway 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. In October, together with our joint venture partners, we entered into an agreement to sell the equity interests in the condominium units at the property. The sale is anticipated to close in the fourth quarter of 2023, subject to customary closing conditions.

(4)The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.

(5)In 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

(6)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 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. The fair value of our investment was determined by the terms of the joint venture agreement governing the capitalization of the project. In 2021, the Company admitted an additional partner to the development project with the partner's indirect ownership in the joint venture totaling 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 September 30, 2023 and December 31, 2022.

(7)The 50.1% ownership interest reflected in this table is comprised of our 25.1% economic interest and a 25.0% economic interest held by a third-party. The third-party's economic interest is held within a joint venture that we consolidate and recognize in Noncontrolling interests in other partnerships on our consolidated balance sheet. An additional third-party owns the remaining 49.9% economic interest in the property.

(8)In June 2023, the Company sold a 49.9% interest, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and deconsolidation of the 50.1% interest we retained. We recorded our investment at fair value which resulted in the recognition of a fair value adjustment of ($17.0 million) during the three and nine months ended September 30, 2023. The fair value of our investment was determined by the terms of the joint venture agreement.

(9)In September 2023, following a UCC foreclosure, the Company converted its previous mezzanine debt investments in the fee interest at 625 Madison Avenue to a 90.43% ownership interest. See Note 5, "Debt and Preferred Equity Investments."

Disposition of Joint Venture Interests or Properties

The following table summarizes the investments in unconsolidated joint ventures sold during the nine months ended September 30, 2023:


Property	Ownership Interest Disposed	Disposition Date	Gross Asset Valuation (in millions)		Loss on Sale (in millions) (1)
121 Greene Street	50.0%	February 2023	$	14.0	$	(0.3)

(1)Represents the Company's share of the loss.

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 September 30, 2023 and December 31, 2022, respectively, are as follows (dollars in thousands):

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)


Property	Economic Interest (1)		Maturity Date	Final Maturity Date (2)	Interest Rate (3)		September 30, 2023		December 31, 2022
Fixed Rate Debt:
717 Fifth Avenue	10.92	%	July 2022 (4)	July 2022 (4)		5.02%	$	655,328	$	655,328
650 Fifth Avenue	50.00	%	October 2023 (6)	January 2024		5.45%	65,000		65,000
220 East 42nd Street	51.00	%	June 2024	June 2025		5.86%	505,412		510,000
5 Times Square	31.55	%	September 2024	September 2026		7.07%	434,816		400,000
10 East 53rd Street	55.00	%	February 2025	February 2025		5.45%	220,000		220,000
1515 Broadway	56.87	%	March 2025	March 2025		3.93%	767,179		782,321
115 Spring Street	51.00	%	March 2025	March 2025		5.50%	65,550		—
450 Park Avenue	25.10	%	June 2025	June 2027		6.10%	267,000		267,000
11 Madison Avenue	60.00	%	September 2025	September 2025		3.84%	1,400,000		1,400,000
One Madison Avenue (5)	25.50	%	November 2025	November 2026		3.59%	662,663		467,008
800 Third Avenue	60.52	%	February 2026	February 2026		3.37%	177,000		177,000
919 Third Avenue	51.00	%	April 2026	April 2028		6.11%	500,000		500,000
625 Madison Avenue	90.43	%	December 2026	December 2026		6.05%	223,200		—
245 Park Avenue	50.10	%	June 2027	June 2027		4.30%	1,768,000		—
Worldwide Plaza	24.95	%	November 2027	November 2027		3.98%	1,200,000		1,200,000
One Vanderbilt Avenue	71.01	%	July 2031	July 2031		2.95%	3,000,000		3,000,000
280 Park Avenue									1,200,000
21 East 66th Street							—		12,000
Total fixed rate debt							$	11,911,148	$	10,855,657
Floating Rate Debt:
11 West 34th Street	30.00	%	February 2023 (4)	February 2023 (4)	L+	1.45%	$	23,000	$	23,000
650 Fifth Avenue	50.00	%	October 2023 (6)	January 2024	S+	2.25%	210,000		210,000
2 Herald Square	51.00	%	November 2023	November 2023	S+	2.06%	182,500		182,500
100 Park Avenue	49.90	%	December 2023	December 2025	S+	2.36%	360,000		360,000
15 Beekman (7)	20.00	%	January 2024	July 2025	S+	1.61%	123,168		86,738
1552 Broadway	50.00	%	February 2024	February 2024	S+	2.75%	193,132		193,132
280 Park Avenue	50.00	%	September 2024	September 2024	S+	2.03%	1,200,000		—
5 Times Square	31.55	%	September 2024	September 2026	S+	5.69%	604,598		495,924
21 East 66th Street	32.28	%	April 2027	April 2027	S+	1.75%	12,000		—
21 East 66th Street	32.28	%	June 2033	June 2033	T+	2.75%	555		586
115 Spring Street							—		65,550
121 Greene Street							—		12,550
Total floating rate debt							$	2,908,953	$	1,629,980
Total joint venture mortgages and other loans payable							$	14,820,101	$	12,485,637
Deferred financing costs, net							(112,175)		(136,683)
Total joint venture mortgages and other loans payable, net							$	14,707,926	$	12,348,954

(1)Economic interest represents the Company's interests in the joint venture as of September 30, 2023. 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 September 30, 2023, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over Term SOFR ("S") or 1-year Treasury ("T").

(4)As of the date of this filing, the loan is in maturity default. The Company is in discussions with the lender on a resolution.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

(5)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, the Company provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics. In July 2023, the facility was modified, which will allow the partnership to utilize the final tranche of the facility for an expanded range of uses, including additional amenities funded by construction cost savings and for hedging activities in contemplation of a permanent financing.

(6)As of the date of this filing, the Company has submitted its request to extend the maturity date of the loan in accordance with the loan agreement. While the Company believes the extension will be granted, the lender group is currently unable to respond given the turmoil in the Middle East.

(7)This loan is a $125.0 million construction facility. Advances under the loan are subject to costs incurred.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $3.5 million and $16.3 million from these services, net of our ownership share of the joint ventures, for the three and nine months ended September 30, 2023, respectively. We earned $5.8 million and $15.0 million from these services, net of our ownership share of the joint ventures, for the three and nine months ended September 30, 2022, 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 September 30, 2023 and December 31, 2022 are as follows (in thousands):


	September 30, 2023		December 31, 2022
Assets (1)
Commercial real estate property, net	$	18,667,334	$	15,989,642
Cash and restricted cash	691,274		709,299
Tenant and other receivables, related party receivables, and deferred rents receivable	668,137		601,552

Other assets	2,656,613		2,551,426
Total assets	$	22,683,358	$	19,851,919
Liabilities and equity (1)
Mortgages and other loans payable, net	$	14,707,926	$	12,348,954
Deferred revenue	1,156,816		1,077,901
Lease liabilities	993,041		1,000,356
Other liabilities	444,208		456,537
Equity	5,381,367		4,968,171
Total liabilities and equity	$	22,683,358	$	19,851,919
Company's investments in unconsolidated joint ventures	$	3,152,752	$	3,190,137

(1)At September 30, 2023, $537.4 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.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three and nine months ended September 30, 2023 and 2022, are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total revenues	$	407,148	$	330,705	$	1,140,889	$	997,670
Operating expenses	63,081		59,841		183,825		173,327
Real estate taxes	78,564		66,594		210,428		186,710
Operating lease rent	7,307		6,616		21,746		19,465
Interest expense, net of interest income	162,897		112,747		421,528		305,977
Amortization of deferred financing costs	6,897		7,116		21,140		20,568

Depreciation and amortization	138,199		116,511		380,867		343,183
Total expenses	456,945		369,425		1,239,534		1,049,230
Loss on early extinguishment of debt	—		—		—		(467)
Net loss before gain (loss) on sale	$	(49,797)	$	(38,720)	$	(98,645)	$	(52,027)
Company's equity in net loss from unconsolidated joint ventures	$	(15,126)	$	(21,997)	$	(44,470)	$	(31,262)

7. Deferred Costs

Deferred costs as of September 30, 2023 and December 31, 2022 consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Deferred leasing costs	$	392,760	$	407,188
Less: accumulated amortization	(284,390)		(286,031)
Deferred costs, net	$	108,370	$	121,157

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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 September 30, 2023 and December 31, 2022, respectively, were as follows (dollars in thousands):


Property	Maturity Date	Final Maturity Date (1)	Interest Rate (2)		September 30, 2023		December 31, 2022
Fixed Rate Debt:

7 Dey / 185 Broadway (3)	November 2023	November 2023		7.59%	$	200,000	$	200,000
420 Lexington Avenue	October 2024	October 2040		3.99%	278,724		283,064
100 Church Street	June 2025	June 2027		5.89%	370,000		370,000
Landmark Square	January 2027	January 2027		4.90%	100,000		100,000
485 Lexington Avenue	February 2027	February 2027		4.25%	450,000		450,000
245 Park Avenue					—		1,712,750
Total fixed rate debt					$	1,398,724	$	3,115,814
Floating Rate Debt:
7 Dey / 185 Broadway (3)	November 2023	November 2023	S+	2.85%	$	10,148	$	10,148
690 Madison Avenue	July 2024	July 2025	S+	0.50%	60,000		60,000
719 Seventh Avenue	December 2024	December 2024	S+	1.31%	50,000		50,000
Total floating rate debt					$	120,148	$	120,148


Total mortgages and other loans payable					$	1,518,872	$	3,235,962
Deferred financing costs, net of amortization					(6,126)		(8,399)
Total mortgages and other loans payable, net					$	1,512,746	$	3,227,563

(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 September 30, 2023, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over Term SOFR ("S"), unless otherwise specified.

(3)This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions. Advances under the loan are subject to incurred costs and funded equity requirements.

As of September 30, 2023 and December 31, 2022, the gross book value of the properties collateralizing the mortgages and other loans payable was approximately $1.9 billion and $3.8 billion, respectively.

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, and was originally entered into by the Company in November 2012. As of September 30, 2023, 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 September 30, 2023, 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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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

As of September 30, 2023, the applicable spread over adjusted Term SOFR plus 10 basis points for the 2021 credit facility was 140 basis points for the revolving credit facility, 160 basis points for Term Loan A, and 165 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 September 30, 2023, the facility fee was 30 basis points.

As of September 30, 2023, we had $2.0 million of outstanding letters of credit, $400.0 million drawn under the revolving credit facility and $1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $850.0 million under the 2021 credit facility. As of September 30, 2023 and December 31, 2022, the revolving credit facility had a carrying value of $394.4 million and $443.2 million, respectively, net of deferred financing costs. As of September 30, 2023 and December 31, 2022, 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).

2022 Term Loan

In October 2022, we entered into a term loan agreement, referred to as the 2022 term loan. In September 2023, the 2022 term loan was repaid in full. The 2022 term loan consisted of a $425.0 million term loan with a maturity date of October 6, 2023. The 2022 term loan had one six-month as-of-right extension option to April 6, 2024. We also had an option, subject to customary conditions, to increase the capacity of the 2022 term loan to $500.0 million on or before January 7, 2023 without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions. In January 2023, the 2022 term loan was increased by $25.0 million to $425.0 million.

The 2022 term loan bore interest at a spread over adjusted Term SOFR plus 10 basis points, ranging from 100 basis points to 180 basis points, in each case based on the credit rating assigned to the senior unsecured long-term indebtedness of the Company. In instances where there were either only two ratings available or where there was more than two and the difference between them was one rating category, the applicable rating was the highest rating. In instances where there were more than two ratings and the difference between the highest and the lowest were two or more rating categories, then the applicable rating used was the average of the highest two, rounded down if the average was not a recognized category. As of December 31, 2022, the 2022 term loan had a carrying value of $398.2 million, net of deferred financing costs.

The Company and the Operating Partnership were borrowers jointly and severally obligated under the 2022 term loan.

Senior Unsecured Notes

The following table sets forth our senior unsecured notes and other related disclosures as of September 30, 2023 and December 31, 2022, respectively, by scheduled maturity date (dollars in thousands):


Issuance	September 30, 2023 Unpaid Principal Balance		September 30, 2023 Accreted Balance		December 31, 2022 Accreted Balance		Interest Rate (1)			Initial Term (in Years)	Maturity Date
December 17, 2015 (2)	$	100,000	$	100,000	$	100,000		4.27	%	10	December 2025


	$	100,000	$	100,000	$	100,000
Deferred financing costs, net	—		(231)		(308)
	$	100,000	$	99,769	$	99,692

(1)Interest rate as of September 30, 2023.

(2)Issued by the Company and the Operating Partnership as co-obligors.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

Restrictive Covenants

The terms of the 2021 credit facility and 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 September 30, 2023 and December 31, 2022, 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 26 basis points over three-month Term SOFR. 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.

Principal Maturities

Combined aggregate principal maturities of mortgages and other loans payable, the 2021 credit facility, the 2022 term loan, trust preferred securities, senior unsecured notes and our share of joint venture debt as of September 30, 2023, including as-of-right extension options, were as follows (in thousands):


	Scheduled Amortization		Principal		Revolving Credit Facility		Unsecured Term Loans		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
Remaining 2023	$	1,486	$	260,149	$	—	$	—	$	—	$	—	$	261,635	$	525,028
2024	4,488		332,749		—		200,000		—		—		537,237		1,318,885
2025	—		370,000		—		—		—		100,000		470,000		1,618,381
2026	—		—		—		—		—		—		—		563,977
2027	—		550,000		400,000		1,000,000		—		—		1,950,000		1,189,059
Thereafter	—		—		—		50,000		100,000		—		150,000		2,130,404
	$	5,974	$	1,512,898	$	400,000	$	1,250,000	$	100,000	$	100,000	$	3,368,872	$	7,345,734

Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest expense before capitalized interest	$	52,877	$	40,553	$	183,652	$	105,165
Interest on financing leases	1,113		1,099		3,329		3,453
Interest capitalized	(25,483)		(19,659)		(77,916)		(55,952)
Amortization of discount on assumed debt	—		—		2,842		—
Interest income	(1,067)		(169)		(2,193)		(812)
Interest expense, net	$	27,440	$	21,824	$	109,714	$	51,854

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

10. Related Party Transactions

Cleaning/ Security/ Messenger and Restoration Services

Prior to 2023, Alliance Building Services, or Alliance, and its affiliates, which provide services to certain properties owned by us, were previously 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 while Alliance was partially owned by Gary Green prior to 2023, which is included in Other income on the consolidated statements of operations, was $0.0 million and $1.4 million for the three and nine months ended September 30, 2022, respectively. We also recorded expenses, inclusive of capitalized expenses, of $0.0 million and $8.6 million for these services (excluding services provided directly to tenants) for the three and nine months ended September 30, 2022, respectively.

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 (inclusive of the property and Summit One Vanderbilt) 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 have the right to tender their interests in the project upon stabilization (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 a tender of the interests will equal the liquidation value of the interests at the time, with the value being based on the project's sale price, if applicable, or fair market value as determined by an independent third party appraiser. In 2022, stabilization of the property (but not Summit One Vanderbilt) was achieved. Therefore, Messrs. Holiday and Mathias exercised their rights to tender 50% of their interests in the property (but not Summit One Vanderbilt) for liquidation values of $17.9 million and $11.9 million, respectively, which were paid in July 2022.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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 and nine months ended September 30, 2023, we recorded $0.7 million and $2.2 million, respectively, of rent expense under the lease. For the three and nine months ended September 30, 2022, we recorded $0.7 million and $2.2 million, respectively, of rent expense under the lease. Additionally, in June 2021, through a wholly-owned subsidiary, we entered into a lease agreement with the One Vanderbilt Avenue joint venture for Summit One Vanderbilt, which commenced in October 2021. For the three and nine months ended September 30, 2023 we recorded $17.0 million and $31.1 million, respectively, of rent expense under the lease, including percentage rent, of which $11.7 million and $21.0 million, respectively, was recognized as income as a component of Equity in net loss from unconsolidated joint ventures in our consolidated statements of operations. For the three and nine months ended September 30, 2022, we recorded $8.3 million and $26.0 million, respectively, of rent expense under the lease, including percentage rent, of which $5.5 million and $17.4 million, respectively, was recognized as income in 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 September 30, 2023 and December 31, 2022 consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Due from joint ventures	$	8,219	$	26,812
Other	1,504		540
Related party receivables	$	9,723	$	27,352

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.

Common Units of Limited Partnership Interest in the Operating Partnership

As of September 30, 2023 and December 31, 2022, the noncontrolling interest unit holders owned 6.04%, or 4,139,334 units, and 5.39%, or 3,670,343 units, of the Operating Partnership, respectively. As of September 30, 2023, 4,139,334 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 nine months ended September 30, 2023 and the twelve months ended December 31, 2022 (in thousands):


	September 30, 2023		December 31, 2022
Balance at beginning of period	$	269,993	$	344,252
Distributions	(11,225)		(16,272)
Issuance of common units	16,350		22,855
Redemption and conversion of common units	(8,900)		(40,901)
Net loss	(27,493)		(5,794)
Accumulated other comprehensive (loss) income allocation	1,425		5,827
Fair value adjustment	8,072		(39,974)
Balance at end of period	$	248,222	$	269,993

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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 September 30, 2023:


Issuance	Stated Distribution Rate		Number of Units Authorized	Number of Units Issued	Number of Units Outstanding	Annual Dividend Per Unit(1)		Liquidation Preference Per Unit(2)		Conversion Price Per Unit(3)		Date of Issuance
Series A (4)	5.00	%	109,161	109,161	109,161	$	50.0000	$	1,000.00	$	—	August 2015
Series F	7.00	%	60	60	60	70.0000		1,000.00		29.12		January 2007
Series K	3.50	%	700,000	563,954	341,677	0.8750		25.00		134.67		August 2014
Series L	4.00	%	500,000	378,634	372,634	1.0000		25.00		—		August 2014
Series R	3.50	%	400,000	400,000	400,000	0.8750		25.00		154.89		August 2015
Series S	4.00	%	1,077,280	1,077,280	1,077,280	1.0000		25.00		—		August 2015
Series V (5)	5.00	%	40,000	40,000	40,000	1.2500		25.00		—		May 2019
Series W (6)	(6)		1	1	1	(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 unit holder 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 after July 15, 2024 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 such, no Subsidiary Series B Preferred Units have been issued as of September 30, 2023.

(5)The Series V Preferred Units are redeemable at any time after January 1, 2025 at par for cash at the option of the unit holder.

(6)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.

Below is a summary of the activity relating to the preferred units in the Operating Partnership for the nine months ended September 30, 2023 and the twelve months ended December 31, 2022 (in thousands):


	September 30, 2023		December 31, 2022
Balance at beginning of period	$	177,943	$	196,075
Issuance of preferred units	—		—
Redemption of preferred units	(11,700)		(17,967)
Dividends paid on preferred units	(4,582)		(6,198)
Accrued dividends on preferred units	4,840		6,033
Balance at end of period	$	166,501	$	177,943

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 September 30, 2023, 64,397,983 shares of common stock and no shares of excess stock were issued and outstanding.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(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 September 30, 2023, share repurchases executed under the program, excluding the redemption of OP units, were as follows:


Period	Shares repurchased(1)	Average price paid per share	Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2020	8,276,032	$64.30	29,661,978
Year ended 2021	4,474,649	$75.44	34,136,627
Year ended 2022	1,971,092	$76.69	36,107,719

(1)There were no share repurchases during the nine months ended September 30, 2023.

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 and nine months ended September 30, 2023 and 2022, respectively (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Shares of common stock issued	2,695		2,933		14,736		5,827
Dividend reinvestments/stock purchases under the DRSPP	$	97	$	140	$	439	$	339

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.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

SL Green's earnings per share for the three and nine months ended September 30, 2023 and 2022 are computed as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
Numerator	2023		2022		2023		2022
Basic Earnings:
(Loss) income attributable to SL Green common stockholders	$	(23,967)	$	7,377	$	(423,892)	$	(28,748)
Less: distributed earnings allocated to participating securities	(408)		(505)		(1,225)		(1,516)

Net (loss) income attributable to SL Green common stockholders (numerator for basic earnings per share)	$	(24,375)	$	6,872	$	(425,117)	$	(30,264)
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable shares	—		505		—		(484)

Add back: effect of dilutive securities (redemption of units to common shares)	(1,574)		491		(27,493)		(1,831)
Net (loss) income attributable to SL Green common stockholders (numerator for diluted earnings per share)	$	(25,949)	$	7,868	$	(452,610)	$	(32,579)


	Three Months Ended September 30,		Nine Months Ended September 30,
Denominator	2023	2022	2023	2022
Basic Shares:
Weighted average common stock outstanding	64,114	63,949	64,099	63,971
Effect of Dilutive Securities:
Operating Partnership units redeemable for common shares	4,182	4,088	4,175	4,104
Stock-based compensation plans	—	860	—	1,052
Contingently issuable shares	—	—	—	122
Diluted weighted average common stock outstanding	68,296	68,897	68,274	69,249

The Company has excluded 1,402,771 and 1,380,364 common stock equivalents from the calculation of diluted shares outstanding for the three and nine months ended September 30, 2023, respectively, as they were anti-dilutive. The Company has excluded 621,134 and 517,574 common stock equivalents from the calculation of diluted shares outstanding for the three and nine months ended September 30, 2022, 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 September 30, 2023 owned 64,397,983 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.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

Limited Partner Units

As of September 30, 2023, limited partners other than SL Green owned 6.04%, or 4,139,334 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 and nine months ended September 30, 2023 and 2022, respectively, are computed as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
Numerator	2023		2022		2023		2022
Basic Earnings:
Net (loss) income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)	$	(25,541)	$	7,868	$	(451,385)	$	(30,579)
Less: distributed earnings allocated to participating securities	(408)		(505)		(1,225)		(1,516)

Net (loss) income attributable to SLGOP common unitholders (numerator for basic earnings per unit)	$	(25,949)	$	7,363	$	(452,610)	$	(32,095)
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable shares	—		505		—		(484)

Net (loss) income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)	$	(25,949)	$	7,868	$	(452,610)	$	(32,579)


	Three Months Ended September 30,		Nine Months Ended September 30,
Denominator	2023	2022	2023	2022
Basic units:
Weighted average common units outstanding	68,296	68,037	68,274	68,075
Effect of Dilutive Securities:
Stock-based compensation plans	—	860	—	1,052
Contingently issuable units	—	—	—	122
Diluted weighted average common units outstanding	68,296	68,897	68,274	69,249

The Operating Partnership has excluded 1,402,771 and 1,380,364 common unit equivalents from the diluted units outstanding for the three and nine months ended September 30, 2023, respectively, as they were anti-dilutive. The Operating Partnership has excluded 621,134 and 517,574 common unit equivalents from the diluted units outstanding for the three and nine months ended September 30, 2022, respectively, as they were anti-dilutive.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(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 Fifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2022 and its stockholders in June 2022 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 32,210,000 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 2.59 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 0.84 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 fifth amendment and restatement in June 2022 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 32,210,000 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 1, 2032, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by the Company's stockholders. As of September 30, 2023, 4.0 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.

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 nine months ended September 30, 2023 or the year ended December 31, 2022.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

A summary of the status of the Company's stock options as of September 30, 2023 and December 31, 2022, and changes during the nine months ended September 30, 2023 and year ended December 31, 2022 are as follows:


	September 30, 2023			December 31, 2022
	Options Outstanding	Weighted Average Exercise Price		Options Outstanding	Weighted Average Exercise Price
Balance at beginning of period	313,480	$	97.59	394,089	$	100.56

Exercised	—	—		—	—
Lapsed or canceled	(120,000)	79.56		(80,609)	112.14
Balance at end of period	193,480	$	99.03	313,480	$	97.59
Options exercisable at end of period	193,480	$	99.03	313,480	$	97.59

The remaining weighted average contractual life of the options outstanding was 2.1 years and the remaining average contractual life of the options exercisable was 2.1 years.

During the three and nine months ended September 30, 2023, we recognized no compensation expense related to options. During the three and nine months ended September 30, 2022, we recognized no compensation expense related to options. As of September 30, 2023, 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 September 30, 2023 and December 31, 2022 and changes during the nine months ended September 30, 2023 and the year ended December 31, 2022, are as follows:


	September 30, 2023		December 31, 2022
Balance at beginning of period	3,758,174		3,459,363
Granted	13,000		314,995
Canceled	(1,650)		(16,184)
Balance at end of period	3,769,524		3,758,174
Vested during the period	145,415		118,255
Compensation expense recorded	$	5,782,841	$	10,133,905
Total fair value of restricted stock granted during the period	$	483,860	$	16,804,931

The fair value of restricted stock that vested during the nine months ended September 30, 2023 and the year ended December 31, 2022 was $10.0 million and $9.7 million, respectively. As of September 30, 2023, there was $7.1 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 $37.9 million and $45.0 million as of September 30, 2023 and December 31, 2022, 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 September 30, 2023, there was $50.5 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 1.6 years.

During the three and nine months ended September 30, 2023, we recorded compensation expense related to bonus, time-based and performance-based awards of $10.6 million and $31.2 million, respectively. During the three and nine months ended September 30, 2022, we recorded compensation expense related to bonus, time-based and performance-based awards of $10.1 million and $30.5 million, respectively.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

For the three and nine months ended September 30, 2023, $0.3 million and $1.0 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options. For the three and nine months ended September 30, 2022, $0.5 million and $1.4 million, respectively, 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 nine months ended September 30, 2023, 37,112 phantom stock units and 27,739 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $0.2 million and $2.5 million during the three and nine months ended September 30, 2023, respectively, related to the Deferred Compensation Plan. We recorded compensation expense of $0.2 million and $2.4 million during the three and nine months ended September 30, 2022, respectively, related to the Deferred Compensation Plan.

As of September 30, 2023, there were 228,105 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 September 30, 2023, 217,081 shares of our common stock had been issued under the ESPP.

15. Accumulated Other Comprehensive Income

The following tables set forth the changes in accumulated other comprehensive income by component as of September 30, 2023 (in thousands):


	Net unrealized gain (loss) on derivative instruments (1)		SL Green’s share of joint venture net unrealized gain (loss) on derivative instruments (2)		Net unrealized loss on marketable securities		Total
Balance at December 31, 2022	$	47,800	$	2,046	$	(242)	$	49,604
Other comprehensive income before reclassifications	49,326		12,649		(1,525)		60,450
Amounts reclassified from accumulated other comprehensive income	(29,175)		(11,263)		—		(40,438)
Balance at September 30, 2023	$	67,951	$	3,432	$	(1,767)	$	69,616

(1)Amount reclassified from accumulated other comprehensive income is included in interest expense in the respective consolidated statements of operations. As of September 30, 2023 and December 31, 2022, the deferred net gains from these terminated hedges, which is included in accumulated other comprehensive income relating to net unrealized gain (loss) on derivative instruments, was ($0.4 million)and ($0.5 million), respectively.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

(2)Amount reclassified from accumulated other comprehensive income is included in equity in net loss from unconsolidated joint ventures in the respective consolidated statements of operations.

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 September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023
	Total		Level 1		Level 2		Level 3
Assets:
Marketable securities available-for-sale	$	9,616	$	—	$	9,616	$	—
Interest rate cap and swap agreements (included in Other assets)	77,921		—		77,921		—
Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)	$	5,968	$	—	$	5,968	$	—


	December 31, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Marketable securities available-for-sale	$	11,240	$	—	$	11,240	$	—
Interest rate cap and swap agreements (included in Other assets)	57,660		—		57,660		—
Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)	$	10,142	$	—	$	10,142	$	—

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.

In June 2023, the Company sold a 49.9% interest in its 245 Park Avenue investment, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and deconsolidation of the 50.1% interest we retained. We recorded our investment at fair value which resulted in the recognition of a fair value adjustment of ($17.0 million) during the three and nine months ended September 30, 2023. The fair value of our investment was determined by the terms of the joint venture agreement.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

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.

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 September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023				December 31, 2022
	Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value

Debt and preferred equity investments	$	334,327	(2)		$	623,280	(2)

Fixed rate debt	$	3,248,724	$	3,188,552	$	5,015,814	$	4,784,691
Variable rate debt	120,148		118,264		520,148		519,669
	$	3,368,872	$	3,306,816	$	5,535,962	$	5,304,360

(1)Amounts exclude net deferred financing costs.

(2)As of September 30, 2023, debt and preferred equity investments had an estimated fair value ranging between $0.3 billion and $0.3 billion. As of December 31, 2022, debt and preferred equity investments had an estimated fair value ranging between $0.6 billion and $0.6 billion.

Disclosures regarding fair value of financial instruments was based on pertinent information available to us as of September 30, 2023 and December 31, 2022. 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.)

September 30, 2023

(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 September 30, 2023 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 Location	Fair Value
Interest Rate Swap	$	200,000	4.739	%	November 2022	November 2023	Other Assets	$	149
Interest Rate Cap	196,717		3.500	%	November 2022	November 2023	Other Assets	449
Interest Rate Cap	196,717		3.500	%	November 2022	November 2023	Other Liabilities	(449)
Interest Rate Swap	150,000		2.600	%	December 2021	January 2024	Other Assets	1,061
Interest Rate Swap	200,000		4.490	%	November 2022	January 2024	Other Assets	447
Interest Rate Swap	200,000		4.411	%	November 2022	January 2024	Other Assets	488
Interest Rate Cap	370,000		3.250	%	June 2023	June 2024	Other Assets	5,526
Interest Rate Cap	370,000		3.250	%	June 2023	June 2024	Other Liabilities	(5,519)
Interest Rate Swap	150,000		2.621	%	December 2021	January 2026	Other Assets	6,885
Interest Rate Swap	200,000		2.662	%	December 2021	January 2026	Other Assets	9,035
Interest Rate Swap	100,000		2.903	%	February 2023	February 2027	Other Assets	4,896
Interest Rate Swap	100,000		2.733	%	February 2023	February 2027	Other Assets	5,422
Interest Rate Swap	50,000		2.463	%	February 2023	February 2027	Other Assets	3,130
Interest Rate Swap	200,000		2.591	%	February 2023	February 2027	Other Assets	11,727
Interest Rate Swap	300,000		2.866	%	July 2023	May 2027	Other Assets	15,663
Interest Rate Swap	150,000		3.524	%	January 2024	May 2027	Other Assets	3,850
Interest Rate Swap	370,000		3.888	%	November 2022	June 2027	Other Assets	6,757
Interest Rate Swap	100,000		3.756	%	January 2023	January 2028	Other Assets	2,436
								$	71,953

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(unaudited)

During the three and nine months ended September 30, 2023, we recorded losses of $0.0 million and $0.2 million, respectively, based on the changes in the fair value of an interest rate cap we sold, which is included in Purchase price and other fair value adjustments in the consolidated statements of operations. During both the three and nine months ended September 30, 2022, we recorded a loss of $1.3 million based on the changes in the fair value of an interest rate cap we sold, which is included in Purchase price and other fair value adjustments in the consolidated statements of operations. During the three and nine months ended September 30, 2023, we recorded losses of $0.0 million and $0.2 million, respectively, on the changes in fair value, which is included in interest expense in the consolidated statements of operations. No gains or losses on the changes in fair value were included in interest expense in the consolidated statements of operations during the three and nine months ended September 30, 2022.

Certain agreements the Company has with each of its derivative counterparties 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 September 30, 2023, 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 $6.6 million. As of September 30, 2023, 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 $6.6 million as of September 30, 2023.

Gains and losses on terminated hedges are included in accumulated other comprehensive income, and are recognized into earnings over the term of the related obligation. Over time, the realized and unrealized gains and losses held in accumulated other comprehensive income 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 ($46.8 million) of the current balance held in accumulated other comprehensive income will be reclassified into interest expense and ($13.8 million) of the portion related to our share of joint venture accumulated other comprehensive income will be reclassified into equity in net loss from unconsolidated joint ventures within the next 12 months.

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 September 30, 2023 and 2022, respectively (in thousands):


	Amount of Gain Recognized in Other Comprehensive (Loss) Income				Location of Gain Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain Reclassified from Accumulated Other Comprehensive Income into Income
	Three Months Ended September 30,					Three Months Ended September 30,
Derivative	2023		2022				2023		2022
Interest Rate Swaps/Caps	$	24,910	$	44,057		Interest expense	$	11,422	$	3,061
Share of unconsolidated joint ventures' derivative instruments	3,927		9,354			Equity in net loss from unconsolidated joint ventures	4,616		(138)
	$	28,837	$	53,411			$	16,038	$	2,923

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(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 nine months ended September 30, 2023 and 2022, respectively (in thousands):


	Amount of Gain Recognized in Other Comprehensive (Loss) Income				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain Reclassified from Accumulated Other Comprehensive Income into Income
	Nine Months Ended September 30,					Nine Months Ended September 30,
Derivative	2023		2022				2023		2022
Interest Rate Swaps/Caps	$	52,624	$	83,768		Interest expense	$	31,043	$	(2,673)
Share of unconsolidated joint ventures' derivative instruments	13,467		22,951			Equity in net loss from unconsolidated joint ventures	11,986		(1,986)
	$	66,091	$	106,719			$	43,029	$	(4,659)

The following table summarizes the notional value at inception and fair value of our joint ventures' derivative financial instruments as of September 30, 2023 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	Classification	Fair Value
Interest Rate Cap	$	220,000	4.000	%	February 2023	February 2024	Asset	$	1,097
Interest Rate Cap	410,070		0.490	%	February 2022	May 2024	Asset	14,040
Interest Rate Cap	410,070		0.490	%	February 2022	May 2024	Asset	14,035
Interest Rate Cap	505,412		3.000	%	June 2023	June 2024	Asset	8,524
Interest Rate Cap	272,000		4.000	%	August 2023	August 2024	Asset	3,176
Interest Rate Cap	434,816		3.500	%	September 2023	September 2024	Asset	8,781
Interest Rate Swap	250,000		3.608	%	April 2023	February 2026	Asset	6,305
Interest Rate Swap	250,000		3.608	%	April 2023	February 2026	Asset	6,299
Interest Rate Swap	177,000		1.555	%	December 2022	February 2026	Asset	12,655
								$	74,912

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(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 and nine months ended September 30, 2023 and 2022 were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Fixed lease payments	$	131,664	$	142,778	$	457,454	$	416,033
Variable lease payments	19,467		19,990		60,211		58,283
Total lease payments (1)	$	151,131	$	162,768	$	517,665	$	474,316
Amortization of acquired above and below-market leases	(140)		184		14,313		(101)
Total rental revenue	$	150,991	$	162,952	$	531,978	$	474,215

(1)Amounts include $49.7 million and $147.4 million of sublease income during the three and nine months ended September 30, 2023 and $55.7 million and $169.9 million of sublease income during the three and nine months ended September 30, 2022, respectively.

The components of lease income from sales-type leases during the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

Interest income (1)	$	1,113	$	1,099	$	3,328	$	3,286

(1)These amounts are included in Other income in our consolidated statements of operations.

19. Commitments and Contingencies

Legal Proceedings

As of September 30, 2023, 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.

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.

Table of Contents

SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

September 30, 2023

(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, at certain properties, ground rent expense. 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 and nine months ended September 30, 2023 and 2022, and selected asset information as of September 30, 2023 and December 31, 2022, regarding our operating segments are as follows (in thousands):


	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues
Three months ended:
September 30, 2023	$	163,531	$	9,689	$	173,220
September 30, 2022	$	182,943	$	29,513	$	212,456
Nine months ended:
September 30, 2023	$	590,016	$	27,849	$	617,865
September 30, 2022	$	532,057	$	69,808	$	601,865
Net (loss) income
Three months ended:
September 30, 2023	$	(22,282)	$	588	$	(21,694)
September 30, 2022	$	(8,934)	$	21,145	$	12,211
Nine months ended:
September 30, 2023	$	(446,005)	$	6,726	$	(439,279)
September 30, 2022	$	(65,824)	$	53,571	$	(12,253)
Total assets
As of:
September 30, 2023	$	9,354,243	$	336,339	$	9,690,582
December 31, 2022	$	11,727,418	$	628,376	$	12,355,794

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 that segment does not have dedicated personnel and 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 and nine months ended September 30, 2023, marketing, general and administrative expenses totaled $22.9 million and $69.1 million. For the three months ended September 30, 2022, marketing, general and administrative expenses totaled $21.3 million and $69.6 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, primarily engaged in the acquisition, development, redevelopment, repositioning, ownership, management and operation of commercial 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, 2022.

As of September 30, 2023, 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:


			Consolidated			Unconsolidated		Total
Location	Property Type		Number of Buildings		Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Weighted Average Leased Occupancy (1) (unaudited)
Commercial:
Manhattan	Office		13		8,399,141	12	15,412,174	25	23,811,315	89.3	%
	Retail		2		17,888	8	294,865	10	312,753	91.0	%
	Development/Redevelopment	(1)	4	(2)	1,466,419	3	2,893,357	7	4,359,776	N/A

			19		9,883,448	23	18,600,396	42	28,483,844	N/A
Suburban	Office		7		862,800	—	—	7	862,800	77.4	%



Total commercial properties			26		10,746,248	23	18,600,396	49	29,346,644	N/A
Residential:
Manhattan	Residential		1	(2)	140,382	1	221,884	2	362,266	99.0	%

Total portfolio			27		10,886,630	24	18,822,280	51	29,708,910	N/A

As of September 30, 2023, 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 excluding the impact of credit losses of $334.3 million, excluding approximately $8.3 million 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 2022 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 and nine months ended September 30, 2023, there were no material changes to these policies.

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Results of Operations

Comparison of the three months ended September 30, 2023 to the three months ended September 30, 2022

The following comparison for the three months ended September 30, 2023, or 2023, to the three months ended September 30, 2022, or 2022, makes reference to the effect of the following:

i.“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2022 and still owned by us in the same manner as of September 30, 2023 (Same-Store Properties totaled 20 of our 27 consolidated operating buildings),

ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2023 and 2022 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 2023 and 2022, 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-Store								Disposed				Other				Consolidated
(in millions)	2023		2022		$ Change		% Change		2023		2022		2023		2022		2023		2022		$ Change		% Change

Rental revenue	$	136.6	$	139.1	$	(2.5)	(1.8)	%	$	—	$	—	$	14.4	$	23.9	$	151.0	$	163.0	$	(12.0)	(7.4)	%

Investment income	—		—		—		—	%	—		—		9.7		29.5		9.7		29.5		(19.8)		(67.1)	%
Other income	2.2		2.6		(0.4)		(15.4)	%	—		—		10.3		17.4		12.5		20.0		(7.5)		(37.5)	%
Total revenues	138.8		141.7		(2.9)		(2.0)	%	—		—		34.4		70.8		173.2		212.5		(39.3)		(18.5)	%

Property operating expenses	71.4		68.7		2.7		3.9	%	—		0.3		16.6		18.5		88.0		87.5		0.5		0.6	%
Transaction related costs	—		—		—		—	%	—		—		0.2		0.3		0.2		0.3		(0.1)		(33.3)	%
Marketing, general and administrative	—		—		—		—	%	—		—		22.9		21.3		22.9		21.3		1.6		7.5	%
	71.4		68.7		2.7		3.9	%	—		0.3		39.7		40.1		111.1		109.1		2.0		1.8	%



Other income (expenses):
Interest expense and amortization of deferred financing costs, net of interest income																	(29.6)		(23.9)		(5.7)		23.8	%
Depreciation and amortization																	(50.2)		(48.5)		(1.7)		3.5	%
Equity in net loss from unconsolidated joint ventures																	(15.1)		(22.0)		6.9		(31.4)	%

Purchase price and other fair value adjustments																	10.2		(1.1)		11.3		(1,027.3)	%
Gain on sale of real estate, net																	0.5		4.3		(3.8)		(88.4)	%
Depreciable real estate reserves and impairment																	0.4		—		0.4		100.0	%






Net (loss) income																	$	(21.7)	$	12.2	$	(33.9)	(277.9)	%

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Rental Revenue

Rental revenues decreased primarily due to the deconsolidation of 245 Park Avenue as a result of the sale of a joint venture interest during the second quarter of 2023 ($9.2 million).

The following table presents a summary of the commenced leasing activity for the three months ended September 30, 2023 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 period	2,789,889




Space which became available during the period (3)
• Office	114,470
• Retail	2,900
• Storage	3,328
	120,698
Total space available	2,910,587
Leased space commenced during the period:
• Office(4)	144,906	153,969	$	79.49	$	87.56	$	44.31	4.6	5.0
• Retail	1,674	1,916	$	178.50	$	195.87	$	—	4.0	13.7
• Storage	3,018	2,978	$	22.68	$	20.38	$	—	—	3.9
Total leased space commenced	149,598	158,863	$	79.62	$	88.07	$	42.95	4.6	5.1

Total available space at end of period	2,760,989

Early renewals
• Office	135,912	145,480	$	82.01	$	85.36	$	21.54	5.4	4.8
• Retail	7,201	6,234	$	320.82	$	325.47	$	—	—	2.0

Total early renewals	143,113	151,714	$	91.82	$	95.23	$	20.66	5.2	4.7

Total commenced leases, including replaced previous vacancy
• Office		299,449	$	80.71	$	86.10	$	33.25	5.0	4.9
• Retail		8,150	$	287.36	$	295.00	$	—	0.9	4.7
• Storage		2,978	$	22.68	$	20.38	$	—	—	3.9
Total commenced leases		310,577	$	85.58	$	92.80	$	32.06	4.9	4.9

(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 $84.86 per rentable square feet for 73,484 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $82.96 per rentable square feet for 218,964 rentable square feet.

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Investment Income

Investment income decreased due to a lower weighted average debt and preferred equity investment balance and a lower weighted average yield for the three months ended September 30, 2023 as compared to the same period in 2022, and due to the recognition of previously unrecorded default interest on our preferred equity investment at 245 Park Avenue in the third quarter of 2022. For the three months ended September 30, 2023, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $608.7 million and 6.2%, respectively, as compared to $995.0 million and 11.7%, respectively, for the three months ended September 30, 2022.

Other Income

Other income decreased due to reduced lease termination income ($2.5 million) and lower management, leasing and construction fee income ($1.4 million) during the three months ended September 30, 2023 as compared to the three months ended September 30, 2022.

Property Operating Expenses

Property operating expenses increased due primarily to increased variable expenses at our Acquired and Same-Store Properties ($3.8 million and $2.6 million, respectively), offset by the sale of a joint venture interest and deconsolidation of 245 Park Avenue in the second quarter of 2023 ($4.0 million).

Marketing, General and Administrative Expenses

Marketing, general and administrative expenses increased to $22.9 million for three months ended September 30, 2023, as compared to $21.3 million for the same period in 2022 due to the timing of compensation related expenses.

Interest Expense and Amortization of Deferred Financing Costs, Net of Interest Income

Interest expense and amortization of deferred financing costs, net of interest income, increased due to rising SOFR rates, higher interest expense from unsecured corporate term loans ($12.4 million) and the revolving credit facility ($6.5 million) during three months ended September 30, 2023 compared to the three months ended September 30, 2022. These increases were offset primarily by repayments of unsecured bonds ($5.9 million) in the third quarter of 2022, the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($4.4 million), and a decrease in interest capitalization in connection with properties that are under development ($3.6 million). The weighted average consolidated debt balance outstanding was $3.9 billion for the three months ended September 30, 2023, compared to $4.4 billion for the three months ended September 30, 2022. The consolidated weighted average interest rate was 5.06% for the three months ended September 30, 2023, as compared to 3.57% for the three months ended September 30, 2022.

Depreciation and Amortization

Depreciation and amortization increased at our Acquired Properties ($3.5 million) and Same-Store Properties ($1.0 million) during the three months ended September 30, 2023, partially offset by the deconsolidation of 245 Park Avenue ($2.6 million) as a result of the interest sale during the second quarter of 2023.

Equity in net loss from unconsolidated joint ventures

Equity in net loss from unconsolidated joint ventures decreased as a result of an increase in income from operations at One Vanderbilt Avenue ($13.3 million) and 245 Park ($5.4 million) and the conversion of previous mezzanine debt investments into a 90.43% ownership in the fee interest at 625 Madison ($10.0 million), offset by increased interest expense across our joint venture portfolio ($20.8 million).

Purchase price and other fair value adjustments

During the three months ended September 30, 2023, we recorded a $10.2 million purchase price adjustment related to a previous transaction. During the three months ended September 30, 2022, we recorded a $1.1 million fair value adjustment related to derivatives that are not designated as hedges.

Gain on sale of real estate, net

Gain on sale of real estate, net remained relatively flat for the three months ended September 30, 2023 as compared to the same period in 2022, as we did not dispose of any properties.

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Comparison of the nine months ended September 30, 2023 to the nine months ended September 30, 2022

The following comparison for the nine months ended September 30, 2023, or 2023, to the nine months ended September 30, 2022, or 2022, makes reference to the effect of the following:

iii."Disposed Properties," which represents all properties or interests in properties sold or partially sold in 2023 and 2022, and

iv.“Other,” which represents properties that were partially sold resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.


	Same-Store								Disposed				Other				Consolidated
(in millions)	2023		2022		$ Change		% Change		2023		2022		2023		2022		2023		2022		$ Change		% Change

Rental revenue	$	411.8	$	419.4	$	(7.6)	(1.8)	%	$	—	$	0.9	$	120.2	$	53.9	$	532.0	$	474.2	$	57.8	12.2	%

Investment income	—		—		—		—	%	—		—		27.8		69.8		27.8		69.8		(42.0)		(60.2)	%
Other income	3.0		3.6		(0.6)		(16.7)	%	—		10.4		55.0		43.8		58.0		57.8		0.2		0.3	%
Total revenues	414.8		423.0		(8.2)		(1.9)	%	—		11.3		203.0		167.5		617.8		601.8		16.0		2.7	%

Property operating expenses	207.0		198.3		8.7		4.4	%	0.2		1.9		74.1		44.0		281.3		244.2		37.1		15.2	%
Transaction related costs	—		—		—		—	%	—		—		1.1		0.3		1.1		0.3		0.8		266.7	%
Marketing, general and administrative	—		—		—		—	%	—		—		69.1		69.6		69.1		69.6		(0.5)		(0.7)	%
	207.0		198.3		8.7		4.4	%	0.2		1.9		144.3		113.9		351.5		314.1		37.4		11.9	%



Other income (expenses):
Interest expense and amortization of deferred financing costs, net of interest income																	(116.0)		(57.8)		(58.2)		100.7	%
Depreciation and amortization																	(197.8)		(142.4)		(55.4)		38.9	%
Equity in net loss from unconsolidated joint ventures																	(44.5)		(31.3)		(13.2)		42.2	%
Equity in net loss on sale of interest in unconsolidated joint venture/real estate																	(0.1)		(0.1)		—		—	%
Purchase price and other fair value adjustments																	(7.0)		(7.3)		0.3		(4.1)	%
Loss on sale of real estate, net																	(27.8)		(61.1)		33.3		(54.5)	%
Depreciable real estate reserves and impairment																	(305.5)		—		(305.5)		100.0	%


Loan loss and other investment reserves, net of recoveries																	(6.9)		—		(6.9)		100.0	%



Net loss																	$	(439.3)	$	(12.3)	$	(427.0)	3,471.5	%

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Rental Revenue

Rental revenues increased due primarily to the acquisition of 245 Park Avenue ($67.8 million) during the third quarter of 2022 and prior to its deconsolidation as a result of the sale of a joint venture interest during the second quarter of 2023, offset by a lower contribution from our Same-Store Properties ($7.5 million).

The following table presents a summary of the commenced leasing activity for the nine months ended September 30, 2023 in our Manhattan and Suburban 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 period	2,227,978
Property out of redevelopment	51,490


Property in redevelopment	(56,718)
Space which became available during the period (3)
• Office	1,065,826
• Retail	32,666
• Storage	10,825
	1,109,317
Total space available	3,332,067
Leased space commenced during the period:
• Office(4)	560,288	603,951	$	76.97	$	77.32	$	59.86	7.0	6.0
• Retail	4,575	4,811	$	226.98	$	195.87	$	519.64	6.5	14.9
• Storage	6,215	8,236	$	28.00	$	17.25	$	—	3.3	9.9
Total leased space commenced	571,078	616,998	$	77.48	$	76.86	$	62.65	6.9	6.1

Total available space at end of period	2,760,989

Early renewals
• Office	516,646	573,863	$	72.56	$	71.37	$	27.93	4.3	5.3
• Retail	15,592	15,751	$	209.41	$	206.75	$	—	—	5.0
• Storage	5,146	5,554	$	31.46	$	33.07	$	—	3.6	6.0
Total early renewals	537,384	595,168	$	75.80	$	74.59	$	26.93	4.2	5.3

Total commenced leases, including replaced previous vacancy
• Office		1,177,814	$	74.82	$	73.81	$	44.30	5.7	5.7
• Retail		20,562	$	213.52	$	205.57	$	121.58	1.5	7.3
• Storage		13,790	$	29.39	$	24.30	$	—	3.4	8.4
Total commenced leases		1,212,166	$	76.66	$	75.51	$	45.11	5.6	5.7

(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 $78.24 per rentable square feet for 399,048 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $74.89 per rentable square feet for 972,911 rentable square feet.

Investment Income

Investment income decreased due to a lower weighted average debt and preferred equity investment balance and a lower weighted average yield for the nine months ended September 30, 2023 as compared to the same period in 2022 and due to the recognition of previously unrecorded default interest on our preferred equity investment at 245 Park Avenue in the third quarter of 2022. For the nine months ended September 30, 2023, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $632.3 million and 5.9%, respectively, as compared to $1.1 billion and 8.7%, respectively, for the nine months ended September 30, 2022.

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Other Income

Other income increased due to SUMMIT One Vanderbilt operations ($6.5 million) and fee income related to the 49.9% joint venture interest sale of 245 Park Avenue ($4.7 million). This increase was offset by income related to the resolution of the Company's investment in 1591-1597 Broadway ($5.0 million) and fee income related to the acquisition of 450 Park Avenue ($4.7 million) during the nine months ended September 30, 2022, and lower lease termination income ($1.2 million) during the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022.

Property Operating Expenses

Property operating expenses increased primarily due to acquiring 245 Park Avenue ($23.2 million) in the third quarter of 2022 and prior to its deconsolidation in the second quarter of 2023, increased variable expenses ($6.3 million) and real estate taxes ($2.4 million) at our Same-Store Properties, and increased variable expenses at our Acquired Properties ($6.0 million), partially offset by decreased variable expenses at our Disposed Properties ($1.2 million).

Marketing, General and Administrative Expenses

Marketing, general and administrative expenses decreased to $69.1 million for the nine months ended September 30, 2023, compared to $69.6 million for the same period in 2022, due to lower compensation related expenses.

Interest Expense and Amortization of Deferred Financing Costs, Net of Interest Income

Interest expense and amortization of deferred financing costs, net of interest income, increased due to rising LIBOR and SOFR rates, higher interest expense from unsecured corporate term loans ($32.3 million) and the revolving credit facility ($19.1 million) during the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, acquiring 245 Park Avenue in the third quarter of 2022 ($25.6 million) prior to its deconsolidation in the second quarter of 2023, and the refinancing of 100 Church ($7.6 million) in the second quarter of 2022. These increases were offset primarily by repayments of unsecured bonds ($20.3 million) in the third quarter of 2022, and a decrease in interest capitalization in connection with properties that are under development ($3.9 million). The weighted average consolidated debt balance outstanding was $5.0 billion for the nine months ended September 30, 2023, compared to $4.2 billion for the nine months ended September 30, 2022. The consolidated weighted average interest rate was 4.64% for the nine months ended September 30, 2023, as compared to 3.28% for the nine months ended September 30, 2022.

Depreciation and Amortization

Depreciation and amortization increased primarily due to acquiring 245 Park Avenue ($45.8 million) in the third quarter of 2022 and prior to its deconsolidation in the second quarter of 2023, an increase at our Acquired Properties ($7.7 million) and Same-Store Properties ($2.1 million) during the nine months ended September 30, 2023.

Equity in net loss from unconsolidated joint ventures

Equity in net loss from unconsolidated joint ventures increased as a result of increased interest expense across our joint venture portfolio ($50.7 million) and a decrease in income from operations at 919 Third Avenue ($7.8 million) due to a large tenant expiration in February 2023. This was partially offset by an increase at 2 Herald Square ($26.7 million) primarily due to holdover rent, interest, settlement income, lease termination income and reimbursement of attorneys' fees collected following the completion of legal proceedings against a former tenant and its guarantor as well as an increase in income from operations at One Vanderbilt Avenue ($16.1 million).

Equity in net loss on sale of interest in unconsolidated joint venture/real estate

During the nine months ended September 30, 2023, we recognized a loss on the sale of our interest in 121 Greene Street. During the nine months ended September 30, 2022, we recognized a loss on the sale of our interest in the Stonehenge Portfolio.

Purchase price and other fair value adjustments

During the nine months ended September 30, 2023, we recorded a $17.0 million fair value adjustment relating to the 50.1% interest we retained in 245 Park Avenue, which was deconsolidated when a 49.9% joint venture interest was sold. This was partially offset by a $10.2 million purchase price adjustment related to a previous transaction. During the nine months ended September 30, 2022, we recorded a $6.1 million fair value adjustment related to an investment in marketable securities and a $1.3 million fair value adjustment related to derivatives that are not designated as hedges.

Loss on sale of real estate, net

During the nine months ended September 30, 2023, we recognized a loss on the sale of a 49.9% joint venture interest in 245 Park Avenue ($28.3 million). During the nine months ended September 30, 2022, we recognized losses on the sales of 609 Fifth Avenue ($80.2 million) and 707 Eleventh Avenue ($0.8 million), offset by a gain on the sale of 1080 Amsterdam Avenue ($17.9 million).

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Depreciable real estate reserves and impairment

During the nine months ended September 30, 2023, we recognized depreciable real estate reserves and impairments related to our leasehold interest at 625 Madison Avenue ($305.9 million) following a strategic review of the property that addressed a range of relevant considerations, including the increase in ground rent to an amount substantially above what the Company believed was appropriate. During the nine months ended September 30, 2022, we did not recognize any depreciable real estate reserves.

Loan loss and other investment reserves, net of recoveries

During the nine months ended September 30, 2023, we recorded $6.9 million of loan loss reserve on one debt and preferred equity investment. During the nine months ended September 30, 2022, we did not recognize any loan loss and other investment reserves.

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, development or redevelopment of properties, tenant improvements, leasing costs, dividends to shareholders, distributions to unitholders, repurchases or repayments of outstanding indebtedness, acquisitions, share repurchases 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, operating escalations and recoveries from our tenants and the level of operating and other costs. We also believe that our ability to generate third-party fees and the debt and preferred equity investment program will continue to serve as a supplemental source of operating cash flow.

The combined aggregate principal maturities of mortgages and other loans payable, the 2021 credit facility, 2022 term loan, 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 September 30, 2023 are as follows (in thousands):


	Remaining 2023		2024		2025		2026		2027		Thereafter		Total
Property mortgages and other loans	$	261,635	$	337,237	$	370,000	$	—	$	550,000	$	—	$	1,518,872
Revolving credit facility	—		—		—		—		400,000		—		400,000
Unsecured term loans	—		200,000		—		—		1,000,000		50,000		1,250,000
Senior unsecured notes	—		—		100,000		—		—		—		100,000
Trust preferred securities	—		—		—		—		—		100,000		100,000
Financing leases	784		3,180		3,228		3,276		3,325		200,169		213,962
Operating leases	14,162		58,068		58,207		58,347		58,358		1,334,569		1,581,711
Estimated interest expense	41,348		154,931		115,836		88,188		27,380		43,104		470,787
Joint venture debt	525,028		1,318,885		1,618,381		563,977		1,189,059		2,130,404		7,345,734
Total	$	842,957	$	2,072,301	$	2,265,652	$	713,788	$	3,228,122	$	3,858,246	$	12,981,066

We estimate that for the remainder of the year ending December 31, 2023, we expect to incur $19.5 million of recurring capital expenditures on existing consolidated properties and $26.5 million of development or redevelopment expenditures on existing consolidated properties, of which $0.4 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 $62.9 million, of which $50.1 million will be funded by construction financing facilities or loan reserves.

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As of September 30, 2023, we had liquidity of $1.0 billion, comprised of $850.0 million of availability under our revolving credit facility and $199.4 million of consolidated cash on hand, inclusive of $9.6 million of marketable securities. This liquidity excludes $165.8 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 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 are generally considered to be financially stable. 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 $309.3 million and $385.1 million as of September 30, 2023 and 2022, respectively, representing a decrease of $75.8 million. The decrease was a result of the following changes in cash flows (in thousands):


	Nine Months Ended September 30,
	2023		2022		Change
Net cash provided by operating activities	$	181,338	$	249,628	$	(68,290)
Net cash provided by investing activities	271,684		273,314		(1,630)
Net cash used in financing activities	(527,753)		(474,848)		(52,905)

Our principal sources of operating cash flow are the properties in our consolidated and joint venture portfolios, third-party fees 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 nine months ended September 30, 2023, when compared to the nine months ended September 30, 2022, we used cash primarily for the following investing activities (in thousands):


Acquisitions of real estate	$	64,491
Capital expenditures and capitalized interest	962
Acquisition deposits and deferred purchase price	(75,400)
Joint venture investments	27,076
Distributions from joint ventures	16,667
Proceeds from sales of real estate/partial interest in property	193,752
Cash and restricted cash assumed from acquisition of real estate investment	(60,494)

Debt and preferred equity and other investments	(168,684)
Decrease in net cash provided by investing activities	$	(1,630)

Funds spent on capital expenditures, which are comprised of building and tenant improvements, decreased from $195.0 million for the nine months ended September 30, 2022 to $194.0 million for the nine months ended September 30, 2023 due to decreased spending on development and redevelopment properties.

We generally fund our investment activity through the sale of real estate, the sale or repayment of debt and preferred equity investments, property-level financing, our corporate credit facilities, or construction facilities. From time to time, the Company may issue common or preferred stock or equity-linked securities, or the Operating Partnership may issue common or preferred units of limited partnership interest.

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During the nine months ended September 30, 2023, when compared to the nine months ended September 30, 2022, we used cash for the following financing activities (in thousands):


Proceeds from our debt obligations	$	(1,147,980)
Repayments of our debt obligations	842,596
Net distribution to noncontrolling interests	(45,620)
Other financing activities	86,514
Proceeds from stock options exercised and DRSPP issuance	100

Repurchase of common stock	151,197
Redemption of preferred stock	6,267
Acquisition of subsidiary interest from noncontrolling interest	29,817
Dividends and distributions paid	24,204
Increase in net cash used in financing activities	$	(52,905)

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 September 30, 2023, 64,397,983 shares of common stock and no shares of excess stock were issued and outstanding.

Share Repurchase Program

As of September 30, 2023, share repurchases executed under the program, excluding the redemption of OP units, were as follows:


Period	Shares repurchased(1)	Average price paid per share	Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2020	8,276,032	$64.30	29,661,978
Year ended 2021	4,474,649	$75.44	34,136,627
Year ended 2022	1,971,092	$76.69	36,107,719

(1)There were no share repurchases during the nine months ended September 30, 2023.

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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 September 30, 2023 and 2022, respectively (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Shares of common stock issued	2,695		2,933		14,736		5,827
Dividend reinvestments/stock purchases under the DRSPP	$	97	$	140	$	439	$	339

Fifth Amended and Restated 2005 Stock Option and Incentive Plan

The Fifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2022 and its stockholders in June 2022 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 32,210,000 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 September 30, 2023, 4.0 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, and phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.

Deferred Compensation Plan for Directors

As of September 30, 2023, there were 228,105 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, 2022 term loan, senior unsecured notes and trust preferred securities outstanding as of September 30, 2023 and December 31, 2022, (amounts in thousands).


Debt Summary:	September 30, 2023			December 31, 2022
Balance
Fixed rate	$	928,724		$	2,695,814
Variable rate—hedged	2,320,000			2,320,000
Total fixed rate	3,248,724			5,015,814
Total variable rate	120,148			520,148
Total debt	$	3,368,872		$	5,535,962

Debt, preferred equity, and other investments subject to variable rate	$	158,430		$	144,056
Net exposure to variable rate debt	(38,282)			376,092

Percent of Total Debt:
Fixed rate	96.4		%	90.6		%
Variable rate (1)	3.6		%	9.4		%
Total	100.0		%	100.0		%
Effective Interest Rate for the Year:
Fixed rate	4.61		%	3.60		%
Variable rate	5.89		%	3.23		%
Effective interest rate	4.64		%	3.55		%

(1) Inclusive of the mitigating effect of our debt, preferred equity, and other investments subject to variable rates, the percent of total debt of our net exposure to variable rate debt was (1.2)% and 7.0% as of September 30, 2023 and December 31, 2022, respectively.

The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (0.00% and 4.39% as of September 30, 2023 and December 31, 2022, respectively), and adjusted Term SOFR (5.32% and 4.30% as of September 30, 2023 and December 31, 2022, respectively). Our consolidated debt as of September 30, 2023 had a weighted average term to maturity of 2.82 years.

Certain of our debt and equity investments and other investments, with carrying values of $158.4 million as of September 30, 2023 and $144.1 million as of December 31, 2022, 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 ratio of our variable rate debt to total debt was (1.2)% and 7.0% as of September 30, 2023 and December 31, 2022, respectively.

2021 Credit Facility

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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).

2022 Term Loan

The Company and the Operating Partnership were borrowers jointly and severally obligated under the 2022 term loan.

Restrictive 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 the use of interest rate derivative instruments and through our variable rate debt and preferred equity investments. Based on the debt outstanding as of September 30, 2023, a hypothetical 100 basis point increase in the floating rate interest rate curve would reduce our consolidated annual interest cost, net of interest income from variable rate debt and preferred equity investments, by $0.4 million and would increase our share of joint venture annual interest cost by $12.2 million. As of September 30, 2023, $0.2 billion of our debt and preferred equity portfolio was indexed to SOFR.

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 consolidated long-term debt of $3.2 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 September 30, 2023 bore interest based on a spread to LIBOR of 145 basis points and Term SOFR of 50 basis points to 569 basis points.

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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.

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.

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 two 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.

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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.

FFO for the three and nine months ended September 30, 2023 and 2022 are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net (loss) income attributable to SL Green common stockholders	$	(23,967)	$	7,377	$	(423,892)	$	(28,748)
Add:
Depreciation and amortization	50,212		48,462		197,844		142,359
Joint venture depreciation and noncontrolling interest adjustments	76,539		63,890		211,222		185,352
Net (income) loss attributable to noncontrolling interests	(3,368)		(502)		(31,952)		438
Less:
Equity in net loss on sale of interest in unconsolidated joint venture/real estate	—		—		(79)		(131)
Depreciable real estate reserves and impairment	389		—		(305,527)		—
Gain (loss) on sale of real estate, net	516		4,276		(27,813)		(61,104)
Purchase price and other fair value adjustments	10,200		—		(6,813)		—
Depreciation on non-rental real estate assets	572		709		1,806		1,845
Funds from Operations attributable to SL Green common stockholders and unit holders	$	87,739	$	114,242	$	291,648	$	358,791
Cash flows provided by operating activities	$	77,346	$	67,193	$	181,338	$	249,628
Cash flows provided by investing activities	310,552		137,990		271,684		273,314
Cash flows used in financing activities	(389,634)		(97,166)		(527,753)		(474,848)

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.

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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 the New York City real estate market;

•risks of real estate acquisitions, dispositions, development and redevelopment, including the cost of construction delays and cost overruns;

•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 and nine months ended September 30, 2023 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, 2022 for the Company and the Operating Partnership. Our exposures to market risk have not changed materially since December 31, 2022.

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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 September 30, 2023 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

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 September 30, 2023 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

ITEM 1A. RISK FACTORS

As of September 30, 2023, 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, 2022.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

As of September 30, 2023, share repurchases executed under the program, excluding the redemption of OP units, were as follows:


Period	Shares repurchased(1)	Average price paid per share	Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2020	8,276,032	$64.30	29,661,978
Year ended 2021	4,474,649	$75.44	34,136,627
Year ended 2022	1,971,092	$76.69	36,107,719

(1)There were no share repurchases during the nine months ended September 30, 2023.

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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
10.1						Non-Renewal and Advisory Agreement, dated as of October 9, 2023, by and between SL Green Realty Corp. and Andrew Mathias, incorporated by reference to the Company's Form 8-K, dated October 9, 2023, filed with the SEC on October 10, 2023.
31.1						Certification by the Chairman and Chief Executive Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2						Certification by the Chief Financial Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.3						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.
31.4						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.
32.1						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.
32.2						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.
32.3						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.
32.4						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 September 30, 2023, formatted in Inline XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive (Loss) 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: November 3, 2023

By:

Matthew J. DiLiberto

Chief Financial Officer

(Principal Financial and Accounting Officer)

SIGNATURES

SL GREEN OPERATING PARTNERSHIP, L.P.

By:

/s/ Matthew J. DiLiberto

Dated: November 3, 2023

Matthew J. DiLiberto
Chief Financial Officer of SL Green, the sole general partner of the Operating Partnership (Principal Financial and Accounting Officer)