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falsefalse--12-31--12-31Q1Q12020202000010409710001492869Non-accelerated Filerfalse12000001200000110000011000000124770001247700011711000117110002000000200000020000002000000P1YP1YP1Y1456200014562000162300001623000017836800075729000P6M00279300027930003749000374900012369000123690001187600011876000175000037957000275000000.850.850.2950.2950.0116000000080257000775910008025700077591000P3YP3YP5Y57700000577000005790000057900000617000006170000061700000617000000P14YP1YP1YP1Y8340008070004819000004819000005012000005012000000.0950.0290.110.0650.060.03205200000205200000199000000199000000419600041450000.07250.060.15290.04950.0550.020169500000169500000179200000179200000437000004370000045800000458000000.0350.040.03750.040.0350.0350.040.02750.0450.0350.0350.070.04525.000.010.019200000920000092000009200000P3Y17600000176000001740000017400000457100000457100000468600000468600000P1YP5YP10Y50000000050000000050000025.0025.00920000092000009200000920000010550001055000The 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: $199.0 million and $205.2 million of land, $501.2 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $61.7 million and $61.7 million of right of use assets, $17.4 million and $17.6 million of accumulated depreciation, $179.2 million and $169.5 million of other assets included in other line items, $468.6 million and $457.1 million of real estate debt, net, $1.1 million and $1.2 million of accrued interest payable, $57.9 million and $57.7 million of lease liabilities, and $45.8 million and $43.7 million of other liabilities included in other line items as of March 31, 2020 and December 31, 2019, respectively.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: $199.0 million and $205.2 million of land, $501.2 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $61.7 million and $61.7 million of right of use assets, $17.4 million and $17.6 million of accumulated depreciation, $179.2 million and $169.5 million of other assets included in other line items, $468.6 million and $457.1 million of real estate debt, net, $1.1 million and $1.2 million of accrued interest payable, $57.9 million and $57.7 million of lease liabilities, and $45.8 million and $43.7 million of other liabilities included in other line items as of March 31, 2020 and December 31, 2019, respectively. 0001040971 us-gaap:PreferredStockMember 2020-01-01 2020-03-31 0001040971 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001040971 srt:SubsidiariesMember 2020-01-01 2020-03-31 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                to                
Commission File Number: 1-13199 (SL Green Realty Corp.)
Commission File Number: 33-167793-02 (SL Green Operating Partnership, L.P.)
______________________________________________________________________
SL GREEN REALTY CORP.
SL GREEN OPERATING PARTNERSHIP, L.P.
(Exact name of registrant as specified in its charter)
______________________________________________________________________
SL Green Realty Corp.
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.)
420 Lexington AvenueNew YorkNY 10170
(Address of principal executive offices—Zip Code)

(212594-2700
(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
x
 
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
x
 
 
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.
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 May 8, 2020, 76,538,603 shares of SL Green Realty Corp.'s common stock, par value $0.01 per share, were outstanding. As of May 8, 2020, 1,025,366 common units of limited partnership interest of SL Green Operating Partnership, L.P. were held by non-affiliates. There is no established trading market for such units.
 




EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2020 of SL Green Realty Corp. and SL Green Operating Partnership, L.P. Unless stated otherwise or the context otherwise requires, references to "SL Green Realty Corp.," the "Company" or "SL Green" mean SL Green Realty Corp. and its consolidated subsidiaries, including SL Green Operating Partnership, L.P.; and references to "SL Green Operating Partnership, L.P.," the "Operating Partnership" or "SLGOP" mean SL Green Operating Partnership, L.P. and its consolidated subsidiaries. The terms "we," "our" and "us" mean the Company and all the entities owned or controlled by the Company, including the Operating Partnership.
The Company is a Maryland corporation which operates as a self-administered and self-managed real estate investment trust, or REIT, and is the sole managing general partner of the Operating Partnership. As a general partner of the Operating Partnership, the Company has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Operating Partnership.
As of March 31, 2020 the Company owns 94.86% of the outstanding general and limited partnership interest in the Operating Partnership and owns 9,200,000 Series I Preferred Units of the Operating Partnership. As of March 31, 2020, noncontrolling investors held, in aggregate, a 5.14% 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;
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;
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.



SL GREEN REALTY CORP. AND SL GREEN OPERATING PARTNERSHIP, L.P.
TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
 
Item 1.
FINANCIAL STATEMENTS
 
 
 
 
FINANCIAL STATEMENTS OF SL GREEN REALTY CORP.
 
 
Consolidated Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019
 
Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 (unaudited)
 
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019 (unaudited)
 
Consolidated Statements of Equity for the three months ended March 31, 2020 and 2019 (unaudited)
 
Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 (unaudited)
 
 
 
 
FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P.
 
 
Consolidated Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019
 
Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 (unaudited)
 
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019 (unaudited)
 
Consolidated Statements of Capital for the three months ended March 31, 2020 and 2019 (unaudited)
 
Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 (unaudited)
 
Notes to Consolidated Financial Statements (unaudited)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures about Market Risk
Controls and Procedures (SL Green Realty Corp. and SL Green Operating Partnership, L.P.)
PART II.
OTHER INFORMATION
 
Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Other Information
Exhibits
 
Signatures


Table of Contents


PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands)
 
March 31, 2020
 
December 31, 2019
 
(unaudited)
 
 
Assets
 
 
 
Commercial real estate properties, at cost:
 
 
 
Land and land interests 
$
1,662,840

 
$
1,751,544

Building and improvements 
5,417,965

 
5,154,990

Building leasehold and improvements 
1,435,811

 
1,433,793

Right of use asset - financing leases
163,960

 
47,445

Right of use asset - operating leases
381,255

 
396,795

 
9,061,831

 
8,784,567

Less: accumulated depreciation 
(2,130,033
)
 
(2,060,560
)
 
6,931,798

 
6,724,007

Assets held for sale

 
391,664

Cash and cash equivalents
554,195

 
166,070

Restricted cash
66,827

 
75,360

Investments in marketable securities
25,353

 
29,887

Tenant and other receivables, net of allowance of $11,876 and $12,369 in 2020 and 2019, respectively
88,587

 
43,968

Related party receivables
26,092

 
21,121

Deferred rents receivable, net of allowance of $11,711 and $12,477 in 2020 and 2019, respectively
310,138

 
283,011

Debt and preferred equity investments, net of discounts and deferred origination fees of $16,230 and $14,562 and allowances of $37,957 and $1,750 in 2020 and 2019, respectively
1,783,336

 
1,580,306

Investments in unconsolidated joint ventures
2,848,363

 
2,912,842

Deferred costs, net
232,274

 
205,283

Other assets
353,644

 
332,801

Total assets (1)
$
13,220,607

 
$
12,766,320

Liabilities
 
 
 
Mortgages and other loans payable, net
$
1,987,073

 
$
2,183,253

Revolving credit facility, net
1,294,477

 
234,013

Unsecured term loans, net
1,494,470

 
1,494,024

Unsecured notes, net
1,247,246

 
1,496,847

Accrued interest payable
26,377

 
22,148

Other liabilities
214,968

 
177,080

Accounts payable and accrued expenses
158,750

 
166,905

Deferred revenue
116,197

 
114,052

Lease liability - financing leases
162,299

 
44,448

Lease liability - operating leases
363,990

 
381,671

Dividend and distributions payable
26,563

 
79,282

Security deposits
59,318

 
62,252

Liabilities related to assets held for sale

 

Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities
100,000

 
100,000

Total liabilities (1)
7,251,728

 
6,555,975


4

Table of Contents

SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands, except per share data)

 
March 31, 2020
 
December 31, 2019
 
(unaudited)
 
 
Commitments and contingencies


 


Noncontrolling interests in Operating Partnership
358,895

 
409,862

Preferred units
266,019

 
283,285

 
 
 
 
Equity
 
 
 
SL Green stockholders' equity:
 
 
 
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2020 and December 31, 2019
221,932

 
221,932

Common stock, $0.01 par value, 160,000 shares authorized and 77,591 and 80,257 issued and outstanding at March 31, 2020 and December 31, 2019, respectively (including 1,055 and 1,055 shares held in treasury at March 31, 2020 and December 31, 2019, respectively)
776

 
803

Additional paid-in-capital
4,146,306

 
4,286,395

Treasury stock at cost
(124,049
)
 
(124,049
)
Accumulated other comprehensive loss
(80,868
)
 
(28,485
)
Retained earnings
1,099,369

 
1,084,719

Total SL Green stockholders' equity
5,263,466

 
5,441,315

Noncontrolling interests in other partnerships
80,499

 
75,883

Total equity
5,343,965

 
5,517,198

Total liabilities and equity
$
13,220,607

 
$
12,766,320

 
 
 
 
(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: $199.0 million and $205.2 million of land, $501.2 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $61.7 million and $61.7 million of right of use assets, $17.4 million and $17.6 million of accumulated depreciation, $179.2 million and $169.5 million of other assets included in other line items, $468.6 million and $457.1 million of real estate debt, net, $1.1 million and $1.2 million of accrued interest payable, $57.9 million and $57.7 million of lease liabilities, and $45.8 million and $43.7 million of other liabilities included in other line items as of March 31, 2020 and December 31, 2019, respectively.


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

5

Table of Contents

SL Green Realty Corp.
Consolidated Statements of Operations
(unaudited, in thousands, except per share data)


 
 
Three Months Ended March 31,
 
 
2020
 
2019
Revenues
 
 
 
 
Rental revenue, net
 
$
222,631

 
$
240,118

Investment income
 
38,533

 
50,031

Other income
 
53,139

 
14,106

Total revenues
 
314,303

 
304,255

Expenses
 

 
 
Operating expenses, including related party expenses of $3,749 in 2020 and $2,793 in 2019
 
53,866

 
57,698

Real estate taxes
 
46,622

 
46,688

Operating lease rent
 
7,367

 
8,298

Interest expense, net of interest income
 
37,494

 
50,525

Amortization of deferred financing costs
 
2,500

 
2,742

Depreciation and amortization
 
68,279

 
68,343

Loan loss and other investment reserves, net of recoveries
 
11,248

 

Transaction related costs
 
65

 
55

Marketing, general and administrative
 
19,570

 
25,979

Total expenses
 
247,011

 
260,328


 


 


Equity in net loss from unconsolidated joint ventures
 
(12,814
)
 
(5,234
)
Equity in net gain on sale of interest in unconsolidated joint venture/real estate
 

 
17,166

Purchase price and other fair value adjustments
 

 
(2,041
)
Gain (loss) on sale of real estate, net
 
72,636

 
(1,049
)
Net income
 
127,114

 
52,769

Net (income) loss attributable to noncontrolling interests:
 
 
 
 
Noncontrolling interests in the Operating Partnership

(6,202
)
 
(2,278
)
Noncontrolling interests in other partnerships

293

 
(237
)
Preferred units distributions

(2,666
)
 
(2,724
)
Net income attributable to SL Green
 
118,539

 
47,530

Perpetual preferred stock dividends
 
(3,738
)
 
(3,738
)
Net income attributable to SL Green common stockholders
 
$
114,801

 
$
43,792

 
 
 
 
 
Basic earnings per share
 
$
1.47

 
$
0.52

Diluted earnings per share
 
$
1.47

 
$
0.52

 
 
 
 
 
Basic weighted average common shares outstanding
 
77,864

 
83,313

Diluted weighted average common shares and common share equivalents outstanding
 
82,567

 
87,810

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

6

Table of Contents


SL Green Realty Corp.
Consolidated Statements of Comprehensive Income
(unaudited, in thousands)

 
 
Three Months Ended March 31,
 
 
2020
 
2019
Net income

$
127,114

 
$
52,769

Other comprehensive loss:


 
 
Decrease in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments

(50,735
)
 
(20,884
)
(Decrease) increase in unrealized value of marketable securities

(4,534
)
 
768

Other comprehensive loss

(55,269
)
 
(20,116
)
Comprehensive income

71,845

 
32,653

Net income attributable to noncontrolling interests and preferred units distributions

(8,575
)
 
(5,239
)
Other comprehensive loss attributable to noncontrolling interests

2,886

 
1,003

Comprehensive income attributable to SL Green

$
66,156

 
$
28,417



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


7

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 Loss
 
Retained
Earnings
 
Noncontrolling
Interests
 
Total
Balance at December 31, 2019
 
$
221,932

 
79,202

 
$
803

 
$
4,286,395

 
$
(124,049
)
 
$
(28,485
)
 
$
1,084,719

 
$
75,883

 
$
5,517,198

Cumulative adjustment upon adoption of ASC 326
 
 
 
 
 
 
 
 
 
 
 
 
 
(39,184
)
 
 
 
(39,184
)
Balance at January 1, 2020
 
$
221,932

 
79,202

 
$
803

 
$
4,286,395

 
$
(124,049
)
 
$
(28,485
)
 
$
1,045,535

 
$
75,883

 
$
5,478,014

Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
118,539

 
(293
)
 
118,246

Acquisition of subsidiary interest from noncontrolling interest
 
 
 
 
 
 
 
(3,123
)
 
 
 
 
 
 
 
1,587

 
(1,536
)
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
(52,383
)
 
 
 
 
 
(52,383
)
Preferred dividends
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,738
)
 
 
 
(3,738
)
DRSPP proceeds
 
 
 
2

 
 
 
166

 
 
 
 
 
 
 
 
 
166

Conversion of units in the Operating Partnership for common stock
 
 
 
1

 
 
 
84

 
 
 
 
 
 
 
 
 
84

Reallocation of noncontrolling interest in the Operating Partnership
 
 
 
 
 
 
 
 
 
 
 
 
 
38,529

 
 
 
38,529

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
 
 
 
(33
)
 
(1
)
 
5,503

 
 
 
 
 
 
 
 
 
5,502

Repurchases of common stock
 
 
 
(2,637
)
 
(26
)
 
(142,719
)
 
 
 
 
 
(76,831
)
 
 
 
(219,576
)
Contributions to consolidated joint venture interests
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,814

 
3,814

Cash distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(492
)
 
(492
)
Cash distributions declared ($0.295 per common share, none of which represented a return of capital for federal income tax purposes)
 
 
 
 
 
 
 
 
 
 
 
 
 
(22,665
)
 
 
 
(22,665
)
Balance at March 31, 2020
 
$
221,932

 
76,535

 
$
776

 
$
4,146,306

 
$
(124,049
)
 
$
(80,868
)
 
$
1,099,369

 
$
80,499

 
$
5,343,965


8

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 (Loss)
 
Retained
Earnings
 
Noncontrolling
Interests
 
Total
Balance at December 31, 2018
 
$
221,932

 
83,684

 
$
847

 
$
4,508,685

 
$
(124,049
)
 
$
15,108

 
$
1,278,998

 
$
46,334

 
$
5,947,855

Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
47,530

 
237

 
47,767

Other comprehensive income
 
 
 
 
 
 
 
 
 
 
 
(19,113
)
 
 
 
 
 
(19,113
)
Preferred dividends
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,738
)
 
 
 
(3,738
)
DRSPP proceeds
 
 
 
1

 
 
 
47

 
 
 
 
 
 
 
 
 
47

Conversion of units in the Operating Partnership for common stock
 
 
 
5

 

 
446

 
 
 
 
 
 
 
 
 
446

Reallocation of noncontrolling interest in the Operating Partnership
 
 
 
 
 
 
 
 
 
 
 
 
 
(28,932
)
 
 
 
(28,932
)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
 
 
 
(20
)
 
 
 
4,835

 
 
 
 
 
 
 
 
 
4,835

Repurchases of common stock
 
 
 
(398
)
 
(4
)
 
(21,432
)
 
 
 
 
 
(12,807
)
 
 
 
(34,243
)
Contributions to consolidated joint venture interests
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
161

 
161

Cash distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(208
)
 
(208
)
Cash distributions declared ($0.85 per common share, none of which represented a return of capital for federal income tax purposes)
 
 
 
 
 
 
 
 
 
 
 
 
 
(70,554
)
 
 
 
(70,554
)
Balance at March 31, 2019
 
$
221,932

 
83,272

 
$
843

 
$
4,492,581

 
$
(124,049
)
 
$
(4,005
)
 
$
1,210,497

 
$
46,524

 
$
5,844,323


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

9

Table of Contents

SL Green Realty Corp.
Consolidated Statements of Cash Flows
(unaudited, in thousands, except per share data)


 
Three Months Ended March 31,
 
2020
 
2019
Operating Activities
 
 
 
Net income
$
127,114

 
$
52,769

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

Depreciation and amortization
70,779

 
71,085

Equity in net loss from unconsolidated joint ventures
12,814

 
5,234

Distributions of cumulative earnings from unconsolidated joint ventures
108

 
425

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

 
(17,166
)
Purchase price and other fair value adjustments

 
2,041

(Gain) loss on sale of real estate, net
(72,636
)
 
1,049

Loan loss reserves and other investment reserves, net of recoveries
11,248

 

Deferred rents receivable
3,717

 
(1,114
)
Non-cash lease expense
3,390

 
3,381

Other non-cash adjustments
1,110

 
9,027

Changes in operating assets and liabilities:
 
 
 
Tenant and other receivables
(44,960
)
 
(4,759
)
Related party receivables
(4,711
)
 
(1,270
)
Deferred lease costs
(8,603
)
 
(13,111
)
Other assets
(48,130
)
 
(40,218
)
Accounts payable, accrued expenses, other liabilities and security deposits
(13,877
)
 
(12,915
)
Deferred revenue
7,622

 
10,721

Change in lease liability - operating leases
(2,959
)
 
(2,866
)
Net cash provided by operating activities
42,026


62,313

Investing Activities
 
 
 
Acquisitions of real estate property
(86,846
)
 

Additions to land, buildings and improvements
(101,726
)
 
(39,524
)
Acquisition deposits and deferred purchase price

 
(4,910
)
Investments in unconsolidated joint ventures
(8,906
)
 
(73,351
)
Distributions in excess of cumulative earnings from unconsolidated joint ventures
53,516

 
23,664

Net proceeds from disposition of real estate/joint venture interest
91,156

 
14,489

Other investments
(4,786
)
 
(1,056
)
Origination of debt and preferred equity investments
(223,374
)
 
(430,034
)
Repayments or redemption of debt and preferred equity investments
151,548

 
218,879

Net cash used in investing activities
(129,418
)
 
(291,843
)

10

Table of Contents

SL Green Realty Corp.
Consolidated Statements of Cash Flows
(unaudited, in thousands, except per share data)

 
Three Months Ended March 31,
 
2020
 
2019
Financing Activities
 
 
 
Proceeds from mortgages and other loans payable
101,103

 
109,872

Repayments of mortgages and other loans payable
(102,777
)
 
(1,127
)
Proceeds from revolving credit facility and senior unsecured notes
1,125,000

 
520,000

Repayments of revolving credit facility and senior unsecured notes
(315,000
)
 
(230,000
)
Proceeds from stock options exercised and DRSPP issuance
166

 
47

Repurchase of common stock
(219,576
)
 
(34,243
)
Redemption of preferred stock
(19,392
)
 
(15,142
)
Redemption of OP units
(18,066
)
 
(15,697
)
Distributions to noncontrolling interests in other partnerships
(492
)
 
(208
)
Contributions from noncontrolling interests in other partnerships
3,814

 
161

Acquisition of subsidiary interest from noncontrolling interest
(1,536
)
 

Distributions to noncontrolling interests in the Operating Partnership
(1,284
)
 
(3,643
)
Dividends paid on common and preferred stock
(79,662
)
 
(77,399
)
Tax withholdings related to restricted share awards
(4,752
)
 
(3,126
)
Deferred loan costs
(562
)
 
(3,367
)
Net cash provided by financing activities
466,984

 
246,128

Net increase in cash, cash equivalents, and restricted cash
379,592

 
16,598

Cash, cash equivalents, and restricted cash at beginning of year
241,430

 
279,113

Cash, cash equivalents, and restricted cash at end of period
$
621,022

 
$
295,711

 
 
 
 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
 
 
 
Conversion of units in the Operating Partnership
$
84

 
$
446

Tenant improvements and capital expenditures payable
602

 
9,350

Reversal of assets held for sale
391,664

 

Seller financed purchases
100,000

 

Debt and preferred equity reserves
4,638

 

Removal of fully depreciated commercial real estate properties
512

 
4,012

Recognition of right of use assets and related lease liabilities
102,782

 
389,120

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
 
Three Months Ended March 31,
 
2020
 
2019
Cash and cash equivalents
$
554,195

 
$
144,323

Restricted cash
66,827

 
151,388

Total cash, cash equivalents, and restricted cash
$
621,022

 
$
295,711

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


11

Table of Contents
SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands)


 
March 31, 2020
 
December 31, 2019
 
(unaudited)
 
 
Assets
 
 
 
Commercial real estate properties, at cost:
 
 
 
Land and land interests 
$
1,662,840

 
$
1,751,544

Building and improvements 
5,417,965

 
5,154,990

Building leasehold and improvements 
1,435,811

 
1,433,793

Right of use asset - financing leases
163,960

 
47,445

Right of use asset - operating leases
381,255

 
396,795

 
9,061,831

 
8,784,567

Less: accumulated depreciation 
(2,130,033
)
 
(2,060,560
)
 
6,931,798

 
6,724,007

Assets held for sale

 
391,664

Cash and cash equivalents
554,195

 
166,070

Restricted cash
66,827

 
75,360

Investments in marketable securities
25,353

 
29,887

Tenant and other receivables, net of allowance of $11,876 and $12,369 in 2020 and 2019, respectively
88,587

 
43,968

Related party receivables
26,092

 
21,121

Deferred rents receivable, net of allowance of $11,711 and $12,477 in 2020 and 2019, respectively
310,138

 
283,011

Debt and preferred equity investments, net of discounts and deferred origination fees of $16,230 and $14,562 and allowances of $37,957 and $1,750 in 2020 and 2019, respectively
1,783,336

 
1,580,306

Investments in unconsolidated joint ventures
2,848,363

 
2,912,842

Deferred costs, net
232,274

 
205,283

Other assets
353,644

 
332,801

Total assets (1)
$
13,220,607

 
$
12,766,320

Liabilities
 
 
 
Mortgages and other loans payable, net
$
1,987,073

 
$
2,183,253

Revolving credit facility, net
1,294,477

 
234,013

Unsecured term loans, net
1,494,470

 
1,494,024

Unsecured notes, net
1,247,246

 
1,496,847

Accrued interest payable
26,377

 
22,148

Other liabilities
214,968

 
177,080

Accounts payable and accrued expenses
158,750

 
166,905

Deferred revenue
116,197

 
114,052

Lease liability - financing leases
162,299

 
44,448

Lease liability - operating leases
363,990

 
381,671

Dividend and distributions payable
26,563

 
79,282

Security deposits
59,318

 
62,252

Liabilities related to assets held for sale

 

Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities
100,000

 
100,000

Total liabilities (1)
7,251,728

 
6,555,975

Commitments and contingencies


 


Limited partner interests in SLGOP (4,145 and 4,196 limited partner common units outstanding at March 31, 2020 and December 31, 2019, respectively)
358,895

 
409,862

Preferred units
266,019

 
283,285


12

Table of Contents
SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands)


 
March 31, 2020
 
December 31, 2019
 
(unaudited)
 
 
Capital
 
 
 
SLGOP partners' capital:
 
 
 
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2020 and December 31, 2019
221,932

 
221,932

SL Green partners' capital (807 and 834 general partner common units and 75,729 and 78,368 limited partner common units outstanding at March 31, 2020 and December 31, 2019, respectively)
5,122,402

 
5,247,868

Accumulated other comprehensive loss
(80,868
)
 
(28,485
)
Total SLGOP partners' capital
5,263,466

 
5,441,315

Noncontrolling interests in other partnerships
80,499

 
75,883

Total capital
5,343,965

 
5,517,198

Total liabilities and capital
$
13,220,607

 
$
12,766,320

 
 
 
 
(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: $199.0 million and $205.2 million of land, $501.2 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $61.7 million and $61.7 million of right of use assets, $17.4 million and $17.6 million of accumulated depreciation, $179.2 million and $169.5 million of other assets included in other line items, $468.6 million and $457.1 million of real estate debt, net, $1.1 million and $1.2 million of accrued interest payable, $57.9 million and $57.7 million of lease liabilities, and $45.8 million and $43.7 million of other liabilities included in other line items as of March 31, 2020 and December 31, 2019, respectively.


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

13

Table of Contents

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



 
 
Three Months Ended March 31,
 
 
2020

2019
Revenues
 
 
 
 
Rental revenue, net
 
$
222,631

 
$
240,118

Investment income
 
38,533

 
50,031

Other income
 
53,139

 
14,106

Total revenues
 
314,303

 
304,255

Expenses
 

 
 
Operating expenses, including related party expenses of $3,749 in 2020 and $2,793 in 2019
 
53,866

 
57,698

Real estate taxes
 
46,622

 
46,688

Operating lease rent
 
7,367

 
8,298

Interest expense, net of interest income
 
37,494

 
50,525

Amortization of deferred financing costs
 
2,500

 
2,742

Depreciation and amortization
 
68,279

 
68,343

Loan loss and other investment reserves, net of recoveries
 
11,248

 

Transaction related costs
 
65

 
55

Marketing, general and administrative
 
19,570

 
25,979

Total expenses
 
247,011

 
260,328

 
 
 
 
 
Equity in net loss from unconsolidated joint ventures
 
(12,814
)
 
(5,234
)
Equity in net gain on sale of interest in unconsolidated joint venture/real estate
 

 
17,166

Purchase price and other fair value adjustments
 

 
(2,041
)
Gain (loss) on sale of real estate, net
 
72,636

 
(1,049
)
Net income
 
127,114

 
52,769

Net loss (income) attributable to noncontrolling interests:
 
 
 
 
Noncontrolling interests in other partnerships
 
293

 
(237
)
Preferred units distributions
 
(2,666
)
 
(2,724
)
Net income attributable to SLGOP
 
124,741

 
49,808

Perpetual preferred unit distributions
 
(3,738
)
 
(3,738
)
Net income attributable to SLGOP common unitholders
 
$
121,003

 
$
46,070

 
 
 
 
 
Basic earnings per unit
 
$
1.47

 
$
0.52

Diluted earnings per unit
 
$
1.47

 
$
0.52

 
 
 
 
 
Basic weighted average common units outstanding
 
82,084

 
87,646

Diluted weighted average common units and common unit equivalents outstanding
 
82,567

 
87,810



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

14

Table of Contents


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

 
 
Three Months Ended March 31,
 
 
2020

2019
Net income
 
$
127,114

 
$
52,769

Other comprehensive loss:
 
 
 
 
Decrease in unrealized value of derivative instruments, including SLGOP's share of joint venture derivative instruments
 
(50,735
)
 
(20,884
)
(Decrease) increase in unrealized value of marketable securities
 
(4,534
)
 
768

Other comprehensive loss
 
(55,269
)
 
(20,116
)
Comprehensive income
 
71,845

 
32,653

Net loss (income) attributable to noncontrolling interests
 
293

 
(237
)
Other comprehensive loss attributable to noncontrolling interests
 
2,886

 
1,003

Comprehensive income attributable to SLGOP
 
$
75,024

 
$
33,419



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


15

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 (Loss)
 
Noncontrolling
Interests
 
Total
Balance at December 31, 2019
 
$
221,932

 
79,202

 
$
5,247,868

 
$
(28,485
)
 
$
75,883

 
$
5,517,198

Cumulative adjustment upon adoption of ASC 326
 
 
 
 
 
(39,184
)
 
 
 
 
 
(39,184
)
Balance at January 1, 2020
 
$
221,932

 
79,202

 
$
5,208,684

 
$
(28,485
)
 
$
75,883

 
$
5,478,014

Net income (loss)
 
 
 
 
 
118,539

 
 
 
(293
)
 
118,246

Acquisition of subsidiary interest from noncontrolling interest
 
 
 
 
 
(3,123
)
 
 
 
1,587

 
(1,536
)
Other comprehensive loss
 
 
 
 
 
 
 
(52,383
)
 


 
(52,383
)
Preferred distributions
 
 
 
 
 
(3,738
)
 
 
 
 
 
(3,738
)
DRSPP proceeds
 
 
 
2

 
166

 
 
 
 
 
166

Conversion of common units
 
 
 
1

 
84

 
 
 
 
 
84

Reallocation of noncontrolling interests in the operating partnership
 
 
 
 
 
38,529

 
 
 
 
 
38,529

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
 
 
 
(33
)
 
5,502

 
 
 
 
 
5,502

Repurchases of common stock
 
 
 
(2,637
)
 
(219,576
)
 
 
 
 
 
(219,576
)
Contribution to consolidated joint venture interests
 
 
 
 
 
 
 
 
 
3,814

 
3,814

Cash distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
(492
)
 
(492
)
Cash distributions declared ($0.295 per common unit, none of which represented a return of capital for federal income tax purposes)
 
 
 
 
 
(22,665
)
 
 
 
 
 
(22,665
)
Balance at March 31, 2020
 
$
221,932

 
76,535

 
$
5,122,402

 
$
(80,868
)
 
$
80,499

 
$
5,343,965

   

16

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 Loss
 
Noncontrolling
Interests
 
Total
Balance at December 31, 2018
 
$
221,932

 
83,684

 
$
5,664,481

 
$
15,108

 
$
46,334

 
$
5,947,855

Net income
 
 
 
 
 
47,530

 
 
 
237

 
47,767

Other comprehensive income
 
 
 
 
 
 
 
(19,113
)
 
 
 
(19,113
)
Preferred distributions
 
 
 
 
 
(3,738
)
 
 
 
 
 
(3,738
)
DRSPP proceeds
 
 
 
1

 
47

 
 
 
 
 
47

Conversion of common units
 
 
 
5

 
446

 
 
 
 
 
446

Reallocation of noncontrolling interests in the operating partnership
 
 
 
 
 
(28,932
)
 
 
 
 
 
(28,932
)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings
 
 
 
(20
)
 
4,835

 
 
 
 
 
4,835

Repurchases of common stock
 
 
 
(398
)
 
(34,243
)
 
 
 
 
 
(34,243
)
Contribution to consolidated joint venture interests
 
 
 
 
 
 
 
 
 
161

 
161

Cash distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
(208
)
 
(208
)
Cash distributions declared ($0.85 per common unit, none of which represented a return of capital for federal income tax purposes)
 
 
 
 
 
(70,554
)
 
 
 
 
 
(70,554
)
Balance at March 31, 2019
 
$
221,932

 
83,272

 
$
5,579,872

 
$
(4,005
)
 
$
46,524

 
$
5,844,323



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


17

Table of Contents

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



 
Three Months Ended March 31,
 
2020

2019
Operating Activities
 
 
 
Net income
$
127,114

 
$
52,769

Adjustments to reconcile net income to net cash provided by operating activities:

 
 
Depreciation and amortization
70,779

 
71,085

Equity in net loss from unconsolidated joint ventures
12,814

 
5,234

Distributions of cumulative earnings from unconsolidated joint ventures
108

 
425

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

 
(17,166
)
Purchase price and other fair value adjustments

 
2,041

(Gain) loss on sale of real estate, net
(72,636
)
 
1,049

Loan loss reserves and other investment reserves, net of recoveries
11,248

 

Deferred rents receivable
3,717

 
(1,114
)
Non-cash lease expense
3,390

 
3,381

Other non-cash adjustments
1,110

 
9,027

Changes in operating assets and liabilities:
 
 
 
Tenant and other receivables
(44,960
)
 
(4,759
)
Related party receivables
(4,711
)
 
(1,270
)
Deferred lease costs
(8,603
)
 
(13,111
)
Other assets
(48,130
)
 
(40,218
)
Accounts payable, accrued expenses, other liabilities and security deposits
(13,877
)
 
(12,915
)
Deferred revenue
7,622

 
10,721

Change in lease liability - operating leases
(2,959
)
 
(2,866
)
Net cash provided by operating activities
42,026

 
62,313

Investing Activities

 
 
Acquisitions of real estate property
(86,846
)
 

Additions to land, buildings and improvements
(101,726
)
 
(39,524
)
Acquisition deposits and deferred purchase price

 
(4,910
)
Investments in unconsolidated joint ventures
(8,906
)
 
(73,351
)
Distributions in excess of cumulative earnings from unconsolidated joint ventures
53,516

 
23,664

Net proceeds from disposition of real estate/joint venture interest
91,156

 
14,489

Other investments
(4,786
)
 
(1,056
)
Origination of debt and preferred equity investments
(223,374
)
 
(430,034
)
Repayments or redemption of debt and preferred equity investments
151,548

 
218,879

Net cash used in investing activities
(129,418
)
 
(291,843
)
 
 
 
 

18

Table of Contents

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


 
Three Months Ended March 31,
 
2020

2019
Financing Activities
 
 
 
Proceeds from mortgages and other loans payable
$
101,103

 
$
109,872

Repayments of mortgages and other loans payable
(102,777
)
 
(1,127
)
Proceeds from revolving credit facility and senior unsecured notes
1,125,000

 
520,000

Repayments of revolving credit facility and senior unsecured notes
(315,000
)
 
(230,000
)
Proceeds from stock options exercised and DRSPP issuance
166

 
47

Repurchase of common units
(219,576
)
 
(34,243
)
Redemption of preferred units
(19,392
)
 
(15,142
)
Redemption of OP units
(18,066
)
 
(15,697
)
Distributions to noncontrolling interests in other partnerships
(492
)
 
(208
)
Contributions from noncontrolling interests in other partnerships
3,814

 
161

Acquisition of subsidiary interest from noncontrolling interest
(1,536
)
 

Distributions paid on common and preferred units
(80,946
)
 
(81,042
)
Tax withholdings related to restricted share awards
(4,752
)

(3,126
)
Deferred loan costs
(562
)
 
(3,367
)
Net cash provided by financing activities
466,984

 
246,128

Net increase in cash, cash equivalents, and restricted cash
379,592

 
16,598

Cash, cash equivalents, and restricted cash at beginning of year
241,430

 
279,113

Cash, cash equivalents, and restricted cash at end of period
$
621,022

 
$
295,711

 
 
 
 
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
 
 
 
Conversion of units in the Operating Partnership
$
84

 
$
446

Tenant improvements and capital expenditures payable
602

 
9,350

Fair value adjustment to noncontrolling interest in the Operating Partnership
38,529

 
28,932

Reversal of assets held for sale
391,664

 

Seller financed purchases
100,000

 

Debt and preferred equity reserves
4,638

 

Removal of fully depreciated commercial real estate properties
512

 
4,012

Recognition of right of use assets and related lease liabilities
102,782

 
389,120

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
 
Three Months Ended March 31,
 
2020
 
2019
Cash and cash equivalents
$
554,195

 
$
144,323

Restricted cash
66,827

 
151,388

Total cash, cash equivalents, and restricted cash
$
621,022

 
$
295,711

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

19

Table of Contents


SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements
March 31, 2020
(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 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 which is 100% owned by the Operating Partnership. The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT. A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to minimize the payment of Federal income taxes at the corporate level. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. The Company is the sole managing general partner of the Operating Partnership. As of March 31, 2020, noncontrolling investors held, in the aggregate, a 5.14% 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."
As of March 31, 2020, 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 Properties

Approximate Square Feet (unaudited)
 
Number of Properties
 
Approximate Square Feet (unaudited)
 
Number of Properties
 
Approximate Square Feet (unaudited)
 
Weighted Average Occupancy(1) (unaudited)
Commercial:
 



 

 

 

 

 

Manhattan
 
Office
 
18


10,647,191

 
10

 
11,216,183

 
28

 
21,863,374

 
93.7
%

 
Retail
 
4

 
44,189

 
8

 
289,050

 
12

 
333,239

 
98.0
%

 
Development/Redevelopment
 
11

 
3,028,211

 
1

 
1,657,198

 
12

 
4,685,409

 
N/A


 
Fee Interest
 

 

 
1

 

 
1

 

 
%

 

 
33

 
13,719,591

 
20

 
13,162,431

 
53

 
26,882,022

 
93.8
%
Suburban
 
Office
 
8

 
1,044,800

 

 

 
8

 
1,044,800

 
85.5
%

 
Retail
 
1

 
52,000

 

 

 
1

 
52,000

 
100.0
%

 

 
9

 
1,096,800

 

 

 
9

 
1,096,800

 
86.2
%
Total commercial properties
 
42

 
14,816,391

 
20

 
13,162,431

 
62

 
27,978,822

 
93.4
%
Residential:
 

 

 

 

 

 

 

 

Manhattan
 
Residential
 
2

 
222,250

 
8

 
1,663,774

 
10

 
1,886,024

 
96.7
%
Total residential properties
 
2


222,250

 
8

 
1,663,774

 
10

 
1,886,024

 
96.7
%
Total portfolio
 
44


15,038,641

 
28

 
14,826,205

 
72

 
29,864,846

 
93.6
%
   
(1)
The weighted average occupancy for commercial properties represents the total occupied square footage divided by the total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by the total available units.
As of March 31, 2020, we also managed two office buildings owned by third parties encompassing approximately 2.1 million square feet (unaudited), and held debt and preferred equity investments with a book value of $1.9 billion, including $0.1 billion of debt and preferred equity investments and other financing receivables that are included in balance sheet line items other than the Debt and Preferred Equity Investments line item.
Partnership Agreement

20

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

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 LTIP Units. As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to minimize any Federal income or excise tax at the Company level. Under the Operating Partnership Agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of SL Green's common stock on a one-for-one basis.
Basis of Quarterly Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the financial position of the Company and the Operating Partnership at March 31, 2020 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, 2020. 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, 2019 of the Company and the Operating Partnership.
The consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements as of that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
Subsequent Events
Beginning in late 2019, a novel strain of Coronavirus (“COVID-19”) began to spread throughout the world, including the United States, ultimately being declared a pandemic by the World Health Organization. Over the past several months the pandemic has caused, and continues to cause, severe disruptions with wide ranging impacts to the global economy and everyday life. We expect that our business, results of operations, liquidity, cash flows, prospects, and our ability to achieve forward-looking targets and expectations could be materially and adversely affected for at least the duration of the COVID-19 pandemic and possibly longer. This could also cause significant volatility in the trading prices of our securities. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration, severity and spread of the pandemic, health and safety actions taken to contain its spread, any possible resurgence that may occur after the initial outbreak subsides and how quickly and to what extent normal economic and operating conditions can resume. Additionally, the COVID-19 pandemic could increase the magnitude of many of the other risks described in our latest Annual Report on Form 10-K and other SEC filings and may have other adverse effects on our operations that we are not currently able to predict.
In May 2020, the Company entered into contract to sell the retail condominium at 609 Fifth Avenue for a gross asset valuation of $168.0 million. This transaction is scheduled to close in the second quarter of 2020, subject to satisfaction of various closing conditions. At March 31, 2020, we determined that the held for sale criteria was not met for this property as it was not probable that the sale of the asset would be completed within one year.
In May 2020, the Company closed on the sale of a 49.5% interest in One Madison Avenue to the National Pension Service of Korea and Hines Interest LP. NPS and Hines have committed aggregate equity to the project totaling no less than $492.2 million. The Company and Hines will co-develop the $2.3 billion project, which will span 1.4 million rentable square feet upon completion. At March 31, 2020, we determined that the held for sale criteria was not met for this property as it was not probable that the sale of the asset would be completed within one year.
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.

21

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

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 three 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 one to 14 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 one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period.
The Company classifies those leases under which the Company is the lessee at lease commencement as finance or operating leases. Leases qualify as finance leases if the lease transfers ownership of the asset at the end of the lease term, the lease grants an option to purchase the asset that we are reasonably certain to exercise, the lease term is for a major part of the remaining economic life of the asset, or the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. At lease commencement the Company records a lease liability which is measured as the present value of the lease payments and a right of use asset which is measured as the amount of the lease liability and any initial direct costs incurred. The Company applies a discount rate to determine the present value of the lease payments. If the rate implicit in the lease is known, the Company uses that rate. If the rate implicit in the lease is not known, the Company uses a discount rate reflective of the Company’s collateralized borrowing rate given the term of the lease. To determine the discount rate, the Company employs a third party specialist to develop an analysis based primarily on the observable borrowing rates of the Company, other REITs, and other corporate borrowers with long-term borrowings. On the consolidated statements of operations, operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense. On the consolidated balance sheet, financing leases include the amounts previously captioned "Properties under capital lease." 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 calculated fair value of the property. 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.
We recognized $1.2 million and $1.2 million of rental revenue for the three months ended March 31, 2020 and 2019, respectively, for the amortization of aggregate below-market leases in excess of above-market leases.

22

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Identified intangible assets (included in other assets):
 
 
 
Gross amount
$
225,025

 
$
255,198

Accumulated amortization
(202,581
)
 
(228,223
)
Net(1)
$
22,444

 
$
26,975

Identified intangible liabilities (included in deferred revenue):
 
 
 
Gross amount
$
274,208

 
$
282,048

Accumulated amortization
(246,464
)
 
(249,514
)
Net(1)
$
27,744

 
$
32,534


(1)
As of March 31, 2020, and December 31, 2019, no net intangible assets and no net intangible liabilities, were reclassified to assets held for sale or liabilities related to assets held for sale.
Fair Value Measurements
See Note 16, "Fair Value Measurements."
Investment in Marketable Securities
At acquisition, we designate a security as held-to-maturity, available-for-sale, or trading. As of March 31, 2020, we did not have any securities designated as held-to-maturity or trading. We account for our available-for-sale securities at fair value pursuant to Accounting Standards Codification, or 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. Any unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component.
At March 31, 2020 and December 31, 2019, we held the following marketable securities (in thousands):
 
March 31, 2020
 
December 31, 2019
Commercial mortgage-backed securities
$
25,353

 
$
29,887

Total marketable securities available-for-sale
$
25,353

 
$
29,887


The cost basis of the commercial mortgage-backed securities was $27.5 million at both March 31, 2020 and December 31, 2019. These securities mature at various times through 2035. We held no equity marketable securities as of March 31, 2020 and December 31, 2019.
We did not dispose of any marketable securities during either the three months ended March 31, 2020 or the three months ended March 31, 2019.
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 venture's projected discounted cash flows. We do not believe that the values of any of our equity investments were impaired at March 31, 2020.
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.

23

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(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 substantially ready for its intended use.
To determine whether the leased space is substantially ready for its intended use, management evaluates whether we are or the tenant is 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.
When management concludes that we are the owner of tenant improvements for accounting purposes, we record amounts funded to construct the tenant improvements as a capital asset. For these tenant improvements, we record amounts reimbursed by tenants as a reduction of the capital asset. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, we record our contribution towards those improvements as a lease incentive, which is included in deferred costs, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease.
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 hold a controlling financial interest in the entity holding 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,

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest is collectible. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.
Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as an adjustment to interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cash flows through the expected maturity date of the related investment. If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt investments acquired at a discount for credit quality, the difference between contractual cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which is expected, are also recognized over the term of the loan as an adjustment to yield.
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 investment becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received.
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. 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.
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

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its expected amount to be collected.
Other financing receivables that are included in balance sheet line items other than the Debt and Preferred Equity Investments line are also measured at the net amount expected to the 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. Write offs of accrued interest receivables are recognized as an expense for 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 months ended March 31, 2020, we recorded Federal, state and local tax provisions of $1.1 million. During the three months ended March 31, 2019, we recorded Federal, state and local tax provisions of $0.8 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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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(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 source of funds to offset the economic costs associated with lost revenue and the costs associated with re-tenanting a space. The properties in our real estate portfolio are located in the New York metropolitan area. The tenants located in our buildings operate in various industries. Other than one tenant, ViacomCBS Inc., which accounts for 5.5% of our share of annualized cash rent, 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 rent, at March 31, 2020.
For the three months ended March 31, 2020, 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 March 31, 2020
1185 Avenue of the Americas
8.5%
11 Madison Avenue
8.3%
420 Lexington Avenue
7.5%
1515 Broadway
6.8%
220 East 42nd Street
6.2%
280 Park Avenue
5.4%
485 Lexington
5.3%

Reclassification
Certain prior year balances have been reclassified to conform to our current year presentation.
Accounting Standards Updates
In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. The Lease Modification Q&A has no material impact on the Company’s consolidated financial statements as of and for the three months ended March 31, 2020, however, its future impact to the Company is dependent upon the extent of lease concessions granted to tenants as a result of the COVID-19 pandemic in future periods and the elections made by the Company at the time of entering into such concessions.
In January 2020, the FASB issued Accounting Standard Update, or ASU, No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendment most relevant to the Company is how to apply the fair value measurement alternative in Topic 321 when an investor must apply the fair value to an investment under the equity method in Topic 323. The amendment clarifies that an entity should consider observable transactions when considering the fair value of an investment. The guidance is effective for the Company for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and

27

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other- Internal-Use Software (Topic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendments provide guidance on accounting for fees paid when the arrangement includes a software license and align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs to develop or obtain internal-use software. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This amendment removed, modified and added the disclosure requirements under Topic 820. The changes are effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted for the removed or modified disclosures with adoption of the additional disclosures upon the effective date. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; in November 2018 issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, in April, May and November 2019, issued ASU No. 2019-04, 2019-05 and 2019-11, which provide codification improvements and targeted transition relief; and in 2020 issued ASU 2020-02 Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842), which updates SEC guidance in those Topics. The guidance changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. The Company’s DPE portfolio and financing lease assets are subject to this guidance. ASU No. 2018-19 excludes operating lease receivables from the scope of this guidance. The Company adopted this guidance on January 1, 2020 and recorded a $39.2 million cumulative adjustment to retained earnings upon adoption.
3. Property Acquisitions
The following table summarizes the properties acquired during the three months ended March 31, 2020:
Property
 
Acquisition Date
 
Property Type
 
Approximate Square Feet
 
Gross Asset Valuation
(in millions)
762 Madison Avenue (1)
 
January 2020
 
Fee Interest
 
6,109
 
$
29.3

707 Eleventh Avenue
 
January 2020
 
Fee Interest
 
159,720
 
90.0

126-132 Nassau Street (2)
 
January 2020
 
Leasehold Interest
 
98,412
 

(1)
In January 2020, the Company acquired from our joint venture partner the remaining 10% interest in this property that the Company did not already own.
(2)
In January 2020, the Company entered into a 99-year ground lease of 126-132 Nassau Street. This lease is classified as a financing lease in our consolidated balance sheets.
4. Properties Held for Sale and Property Dispositions
Properties Held for Sale
As of March 31, 2020, no properties were classified as held for sale.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

Property Dispositions
The following table summarizes the properties sold during the three months ended March 31, 2020:
Property
 
Disposition Date
 
Property Type
 
Approximate Square Feet
 
Sales Price(1)
(in millions)
 
Gain (loss)(2)
(in millions)
315 West 33rd Street - The Olivia
 
March 2020
 
Fee Interest
 
492,987

 
$
446.5

 
$
72.3

(1)
Sales price represents the gross sales price for a property or the gross asset valuation for interests in a property.
(2)
The gain on sale for 315 West 33rd Street is net of $6.0 million of employee compensation accrued in connection with the realization of this investment gain. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.
5. Debt and Preferred Equity Investments
Below is a summary of the activity in our debt and preferred equity investments for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of year (1)
$
1,580,306

 
$
2,099,393

Debt investment originations/accretion (2)
246,075

 
652,866

Preferred equity investment originations/accretion (2)
154,710

 
14,736

Redemptions/sales/syndications/amortization (3)
(161,548
)
 
(1,190,689
)
Net change in loan loss reserves
(36,207
)
 
4,000

Balance at end of period (1)
$
1,783,336

 
$
1,580,306

(1)
Net of unamortized fees, discounts, and premiums.
(2)
Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)
Certain participations in debt investments that were sold or syndicated, but did not meet the conditions for sale accounting, are included in other assets and other liabilities on the consolidated balance sheets.
Below is a summary of our debt and preferred equity investments as of March 31, 2020 (dollars in thousands):
 
Floating Rate
 
Fixed Rate
 
Total Carrying Value
Senior Financing
Maturity
Type
Carrying Value
Face Value
Interest Rate
 
Carrying Value
Face Value
Interest Rate
 
Senior Mortgage Debt
$
372,547

$374,002
L + 2.00 - 5.50%
 
$
100,202

$101,250
3.00 - 6.00%
 
$
472,749

$

2020 - 2022
Junior Mortgage Debt
83,004

90,300
L + 6.00 - 7.25%
 

 
$
83,004

438,138

2020 - 2023
Mezzanine Debt
368,053

375,098
L + 4.95 - 15.29%
 
491,838

509,920
2.90 - 9.50%
 
$
859,891

5,169,422

2020 - 2029
Preferred Equity

 
367,692

386,953
6.50 - 11.00%
 
$
367,692

522,000

2020 -2027
Balance at end of period
$
823,604

$
839,400

 
$
959,732

$
998,123

 
$
1,783,336

$
6,129,560


The following table is a rollforward of our total allowance for loan losses for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of year
$
1,750

 
$
5,750

Cumulative adjustment upon adoption of ASC 326
27,804

 

Current period provision for loan loss
8,403

 

Writeoffs charged against the allowance

 
(4,000
)
Balance at end of period
$
37,957

 
$
1,750



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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

At March 31, 2020, all debt and preferred equity investments were performing in accordance with their respective terms, with the exception of one investment with a carrying value of $70.0 million, as discussed in subnotes 4 of the Debt Investments table below. At December 31, 2019, all debt and preferred equity investments were performing in accordance with their respective terms.
No financing receivables were 90 days past due at March 31, 2020 and December 31, 2019 with the exception of a $28.5 million financing receivable which was put on nonaccrual in August 2018 as a result of interest default.
As of March 31, 2020, management estimated the weighted average risk rating for our debt and preferred equity investments to be 1.4.
We have determined that we have one portfolio segment of financing receivables at March 31, 2020 and December 31, 2019 comprising 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 $120.7 million and $131.1 million at March 31, 2020 and December 31, 2019, respectively, for which the Company recorded adjustments upon adoption of ASC 326 of $11.4 million and provisions for loan losses for the three months ended March 31, 2020 of $2.8 million.
Debt Investments
As of March 31, 2020 and December 31, 2019, we held the following debt investments with an aggregate weighted average current yield of 7.87% at March 31, 2020 (dollars in thousands):

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

Loan Type
 
March 31, 2020
Future Funding
Obligations
 
March 31, 2020 Senior
Financing
 
March 31,
2020
Amortized Cost
(1)
 
December 31, 2019
Amortized Cost
(1)
 
Maturity
Date
(2)
Fixed Rate Investments:
 
 
 
 
 
 
 
 
 
 
Mortgage/Mezzanine Loan
 
$

 
$
63,908

 
$
55,798

 
$
55,573

 
October 2020
Mezzanine Loan
 
10,000

 

 
99,110

 

 
January 2021
Mezzanine Loan
 

 
15,000

 
3,500

 
3,500

 
September 2021
Mezzanine Loan
 

 
147,000

 
24,957

 
24,952

 
April 2022
Mezzanine Loan
 

 
280,000

 
39,296

 
38,734

 
August 2022
Mezzanine Loan
 

 
330,204

 
220,420

 
215,737

 
June 2023
Mezzanine Loan
 

 
83,369

 
12,716

 
12,714

 
November 2023
Mezzanine Loan
 

 
180,000

 
30,000

 
30,000

 
December 2023
Mezzanine Loan(3a)(4)
 

 
115,000

 
12,952

 
12,950

 
June 2024
Mezzanine Loan
 

 
95,000

 
30,000

 
30,000

 
January 2025
Mezzanine Loan
 

 
1,712,750

 
55,250

 
55,250

 
June 2027
Mezzanine Loan
 

 
85,000

 
20,000

 
20,000

 
December 2029
Total fixed rate
 
$
10,000

 
$
3,107,231

 
$
603,999

 
$
499,410

 
 
Floating Rate Investments:
 
 
 
 
 
 
 
 
 
 
Mortgage/Mezzanine Loan(4)
 

 

 
70,000

 
69,839

 
March 2020
Mortgage/Mezzanine Loan(4)
 
1,618

 
29,053

 
71,964

 
82,696

 
April 2020
Junior Mortgage(4)
 

 
40,000

 
20,000

 
20,000

 
April 2020
Mortgage/Mezzanine Loan
 

 

 
19,983

 
19,971

 
August 2020
Mortgage Loan
 
32,972

 

 
118,378

 
106,473

 
September 2020
Mezzanine Loan
 
17,376

 
436,763

 
53,329

 
51,387

 
December 2021
Mortgage/Mezzanine Loan(3b)
 
9,429

 

 
96,880

 
96,570

 
April 2021
Mezzanine Loan
 

 
275,000

 
49,845

 
49,809

 
April 2021
Junior Mortgage Participation/Mezzanine Loan
 

 
60,000

 
15,706

 
15,698

 
July 2021
Mezzanine Loan
 
11,459

 
156,759

 
42,985

 
41,395

 
July 2021
Mezzanine Loan
 
8,427

 
49,616

 
20,595

 
15,743

 
July 2021
Mezzanine Loan(3c)
 

 
1,115,000

 
123,419

 
222,775

 
March 2022
Mortgage/Mezzanine Loan(5)
 
7,795

 

 
59,597

 
35,386

 
May 2022
Mezzanine Loan
 
44,000

 

 
13,941

 
13,918

 
December 2022
Mortgage Loan
 
41,700

 
338,138

 
57,349

 

 
February 2023
Total floating rate
 
$
174,776

 
$
2,500,329

 
$
833,971

 
$
841,660

 
 
Allowance for loan loss
 
$

 
$

 
$
(22,326
)
 
$

 
 
Total
 
$
184,776

 
$
5,607,560

 
$
1,415,644

 
$
1,341,070

 
 
(1)
Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2)
Represents contractual maturity, excluding any unexercised extension options.
(3)
Carrying value is net of the following amounts that were sold or syndicated, which are included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $12.0 million, (b) $96.4 million and (c) $0.4 million.
(4)
This loan is in default as of the date of this filing. The Company is in discussions with the borrower.
(5)
The original loan was repaid in February 2020 and a new loan was originated to the new owners of the underlying asset.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

Preferred Equity Investments
As of March 31, 2020 and December 31, 2019, we held the following preferred equity investments with an aggregate weighted average current yield of 9.87% at March 31, 2020 (dollars in thousands):
Type
 
March 31, 2020
Future Funding
Obligations
 
March 31, 2020 Senior
Financing
 
March 31,
2020
Amortized Cost
(1)
 
December 31, 2019
Amortized Cost
(1)
 
Mandatory Redemption (2)
Preferred Equity
 
$

 
$
272,000

 
$
133,050

 
$
142,921

 
April 2021
Preferred Equity
 

 
1,712,750

 
150,273

 
98,065

 
June 2022
Preferred Equity
 

 
250,000

 
100,000

 

 
February 2027
Total Preferred Equity
 
$

 
$
2,234,750

 
$
383,323

 
$
240,986

 
 
Allowance for loan loss
 
$

 
$

 
$
(15,631
)
 
$
(1,750
)
 
 
Total
 
$

 
$
2,234,750

 
$
367,692

 
$
239,236

 
 
(1)
Carrying value is net of deferred origination fees.
(2)
Represents contractual maturity, 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 March 31, 2020, the book value of these investments was $2.8 billion, net of investments with negative book values totaling $80.0 million for which we have an implicit commitment to fund future capital needs.
As of March 31, 2020 and December 31, 2019, 800 Third Avenue, 21 East 66th Street, 605 West 42nd Street, 333 East 22nd Street, and certain properties within the Stonehenge Portfolio are VIEs in which we are not the primary beneficiary. Our net equity investment in these VIEs was $138.1 million and $145.9 million as of March 31, 2020 and December 31, 2019, 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.

32

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

The table below provides general information on each of our joint ventures as of March 31, 2020:
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

121 Greene Street
Wharton Properties
50.00%
50.00%
7,131

55 West 46th Street
Prudential Real Estate Investors
25.00%
25.00%
347,000

Stonehenge Portfolio
Various
Various
Various
1,439,016

605 West 42nd Street
The Moinian Group
20.00%
20.00%
927,358

11 Madison Avenue
PGIM Real Estate
60.00%
60.00%
2,314,000

333 East 22nd Street
Private Investors
33.33%
33.33%
26,926

400 East 57th Street(5)
BlackRock, Inc and Stonehenge Partners
51.00%
41.00%
290,482

One Vanderbilt
National Pension Service of Korea/Hines Interest LP
71.01%
71.01%

Worldwide Plaza
RXR Realty / New York REIT / Private Investor
24.35%
24.35%
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

(1)
Ownership interest and economic interest represent the Company's interests in the joint venture as of March 31, 2020. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)
The acquisition price represents only the purchase of the 1552 Broadway interest, which comprised approximately 13,045 square feet. The joint venture also owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. Beginning in April 2020, debt service and ground rent payments for this investment were not made primarily as a result of the failure of the primary tenant to pay rent. The Company, on behalf of the venture, is in discussions with the lessor and lender.
(3)
We hold a 32.28% interest in three retail units and one residential unit at the property and a 16.14% interest in three residential units at the property.
(4)
The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.
(5)
In October 2016, we sold a 49% interest in this property. Our interest in the property was sold within a consolidated joint venture owned 90% by the Company and 10% by Stonehenge. The transaction resulted in the deconsolidation of the venture's remaining 51% interest in the property. Our joint venture with Stonehenge remains consolidated resulting in the combined 51% interest being shown within investments in unconsolidated joint ventures on our balance sheet.
Disposition of Joint Venture Interests or Properties
We did not dispose of any investments in unconsolidated joint ventures during the three months ended March 31, 2020:
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 for tenant space, 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 at March 31, 2020 and December 31, 2019, respectively, are as follows (dollars in thousands):
Property
 
Economic
Interest
(1)
 
Initial Maturity
Date
Final Maturity Date (2)
 
Interest
Rate (3)
 
March 31, 2020
 
December 31, 2019
Fixed Rate Debt:
 
 
 
 
 
 
 
 
 
 
 
 
717 Fifth Avenue (mortgage)
 
10.92
%
 
July 2022
July 2022
 
 
4.45
%
 
$
300,000

 
$
300,000



33

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

Property
 
Economic
Interest
(1)
 
Initial Maturity
Date
Final Maturity Date (2)
 
Interest
Rate (3)
 
March 31, 2020
 
December 31, 2019
717 Fifth Avenue (mezzanine)
 
10.92
%
 
July 2022
July 2022
 
 
5.50
%
 
355,328

 
355,328

650 Fifth Avenue (mortgage)
 
50.00
%
 
October 2022
October 2022
 
 
4.46
%
 
210,000

 
210,000

650 Fifth Avenue (mezzanine)
 
50.00
%
 
October 2022
October 2022
 
 
5.45
%
 
65,000

 
65,000

21 East 66th Street
 
32.28
%
 
April 2023
April 2028
 
 
3.60
%
 
12,000

 
12,000

919 Third Avenue
 
51.00
%
 
June 2023
June 2023
 
 
5.12
%
 
500,000

 
500,000

1515 Broadway
 
56.87
%
 
March 2025
March 2025
 
 
3.93
%
 
834,084

 
838,546

11 Madison Avenue
 
60.00
%
 
September 2025
September 2025
 
 
3.84
%
 
1,400,000

 
1,400,000

800 Third Avenue
 
60.52
%
 
February 2026
February 2026
 
 
3.37
%
 
177,000

 
177,000

400 East 57th Street
 
41.00
%
 
November 2026
November 2026
 
 
3.00
%
 
97,202

 
97,735

Worldwide Plaza
 
24.35
%
 
November 2027
November 2027
 
 
3.98
%
 
1,200,000

 
1,200,000

Stonehenge Portfolio (4)
 
Various

 
Various
Various
 
 
3.50
%
 
196,112

 
196,112

Total fixed rate debt
 
 
 
 
 
 
 
 
 
$
5,346,726

 
$
5,351,721

Floating Rate Debt:
 
 
 
 
 
 
 
 
 
 
 
 
280 Park Avenue
 
50.00
%
 
September 2020
September 2024
 
L+
1.73
%
 
$
1,200,000

 
$
1,200,000

1552 Broadway (5)
 
50.00
%
 
October 2020
October 2022
 
L+
2.65
%
 
195,000

 
195,000

121 Greene Street
 
50.00
%
 
November 2020
November 2021
 
L+
1.50
%
 
15,000

 
15,000

11 West 34th Street
 
30.00
%
 
January 2021
January 2023
 
L+
1.45
%
 
23,000

 
23,000

100 Park Avenue
 
49.90
%
 
February 2021
February 2021
 
L+
1.75
%
 
356,027

 
356,972

One Vanderbilt (6)
 
71.01
%
 
September 2021
September 2023
 
L+
2.50
%
 
838,936

 
732,928

2 Herald Square
 
51.00
%
 
November 2021
November 2023
 
L+
1.55
%
 
198,629

 
190,000

55 West 46th Street (7)
 
25.00
%
 
August 2022
August 2024
 
L+
1.25
%
 
192,524

 
192,524

115 Spring Street
 
51.00
%
 
September 2023
September 2023
 
L+
3.40
%
 
65,550

 
65,550

10 East 53rd Street
 
55.00
%
 
February 2025
February 2025
 
L+
1.35
%
 
220,000

 
170,000

605 West 42nd Street
 
20.00
%
 
August 2027
August 2027
 
L+
1.44
%
 
550,000

 
550,000

21 East 66th Street
 
32.28
%
 
June 2033
June 2033
 
1 Year Treasury+
2.75
%
 
708

 
712

Total floating rate debt
 
 
 
 
 
 
 
 
 
$
3,855,374

 
$
3,691,686

Total joint venture mortgages and other loans payable
 
 
 
 
 
$
9,202,100

 
$
9,043,407

Deferred financing costs, net
 
 
 
 
 
 
 
 
 
(85,928
)
 
(91,538
)
Total joint venture mortgages and other loans payable, net
 
 
 
 
 
$
9,116,172

 
$
8,951,869


(1)
Economic interest represents the Company's interests in the joint venture as of March 31, 2020. 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 extension options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(3)
Interest rates as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(4)
Amount is comprised of three mortgages totaling $132.6 million that mature in April 2028 and two mortgages totaling $63.5 million that mature in July 2029.
(5)
Beginning in April 2020, debt service and ground rent payments for this investment were not made primarily as a result of the failure of the primary tenant to pay rent. The Company, on behalf of the venture, is in discussions with the lessor and lender.
(6)
This loan is a $1.75 billion construction facility with reductions in interest cost based on meeting conditions, the first of which has been satisfied, and has an initial five-year term with two one-year extension options. Advances under the loan are subject to costs incurred.
(7)
This loan has a committed amount of $198.0 million, of which $5.5 million was unfunded as of March 31, 2020.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $2.2 million from these services, net of our ownership share of the joint ventures, for the three months ended March 31, 2020. We earned $2.5 million from these services, net of our ownership share of the joint ventures, for the three months ended March 31, 2019. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.

34

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

The combined balance sheets for the unconsolidated joint ventures, at March 31, 2020 and December 31, 2019 are as follows (in thousands):
 
March 31, 2020
 
December 31, 2019
Assets (1)
 
 
 
Commercial real estate property, net
$
14,392,907

 
$
14,349,628

Cash and restricted cash
329,205

 
336,189

Tenant and other receivables, related party receivables, and deferred rents receivable
346,837

 
371,065

Other assets
1,997,553

 
2,039,429

Total assets
$
17,066,502

 
$
17,096,311

Liabilities and equity (1)
 
 
 
Mortgages and other loans payable, net
$
9,116,172

 
$
8,951,869

Deferred revenue
1,459,796

 
1,501,616

Lease liabilities
902,161

 
897,380

Other liabilities
284,364

 
308,304

Equity
5,304,009

 
5,437,142

Total liabilities and equity
$
17,066,502

 
$
17,096,311

Company's investments in unconsolidated joint ventures
$
2,848,363

 
$
2,912,842


(1)
The combined assets, liabilities and equity for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained, non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018. In addition, at March 31, 2020, $122.6 million of net unamortized basis differences between the amount at which our investments are carried and our share of equity in net assets of the underlying property will be amortized through equity in net income (loss) from unconsolidated joint ventures over the remaining life of the underlying items having given rise to the differences.
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three months ended March 31, 2020 and 2019, are as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Total revenues
$
282,520

 
$
307,519

Operating expenses
51,590

 
54,124

Real estate taxes
53,372

 
54,236

Operating lease rent
6,361

 
5,901

Interest expense, net of interest income
86,324

 
96,623

Amortization of deferred financing costs
4,814

 
5,216

Depreciation and amortization
98,584

 
104,331

Total expenses
301,045

 
320,431

Net loss before gain on sale (1)
$
(18,525
)
 
$
(12,912
)
Company's equity in net loss from unconsolidated joint ventures (1)
$
(12,814
)
 
$
(5,234
)

(1)
The combined statements of operations and the Company's equity in net loss for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018.
7. Deferred Costs
Deferred costs at March 31, 2020 and December 31, 2019 consisted of the following (in thousands):
 
March 31, 2020
 
December 31, 2019
Deferred leasing costs
$
506,314

 
$
466,136

Less: accumulated amortization
(274,040
)
 
(260,853
)
Deferred costs, net
$
232,274

 
$
205,283



35

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(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 at March 31, 2020 and December 31, 2019, respectively, were as follows (dollars in thousands):
Property
 
Initial Maturity
Date
Final Maturity Date (1)
 
Interest
Rate (2)
 
March 31, 2020
 
December 31, 2019
Fixed Rate Debt:
 
 
 
 
 
 
 
 
 
 
100 Church Street
 
July 2022
July 2022
 
 
4.68
%
 
$
208,197

 
$
209,296

420 Lexington Avenue
 
October 2024
October 2040
 
 
3.99
%
 
297,885

 
299,165

400 East 58th Street (3)
 
November 2026
November 2026
 
 
3.00
%
 
38,881

 
39,094

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

1080 Amsterdam (4)
 
February 2027
February 2027
 
 
3.59
%
 
34,947

 
35,123

762 Madison Avenue (5)
 
 
 
 
 
 
 

 
771

315 West 33rd Street (6)
 
 
 
 
 
 
 

 
250,000

Total fixed rate debt
 
 
 
 
 
 
 
$
1,129,910

 
$
1,383,449

Floating Rate Debt:
 
 
 
 
 
 
 
 
 
 
FHLB Facility
 
June 2020
June 2020
 
L+
0.17%
 
$
14,500

 
$
14,500

2017 Master Repurchase Agreement
 
June 2020
June 2022
 
L+
2.09%
 
137,473

 
152,684

FHLB Facility
 
July 2020
July 2020
 
L+
0.17%
 
10,000

 

133 Greene Street
 
August 2020
August 2021
 
L+
2.00%
 
15,523

 
15,523

FHLB Facility
 
August 2020
August 2020
 
L+
0.26%
 
15,000

 

106 Spring Street
 
January 2021
January 2022
 
L+
2.50%
 
38,025

 
38,025

FHLB Facility
 
January 2021
January 2021
 
L+
0.18%
 
35,000

 

609 Fifth Avenue
 
March 2021
March 2024
 
L+
2.40%
 
55,416

 
53,773

185 Broadway (7)
 
November 2021
November 2023
 
L+
2.85%
 
130,791

 
120,110

712 Madison Avenue
 
December 2021
December 2022
 
L+
1.85%
 
28,000

 
28,000

410 Tenth Avenue (8)
 
May 2022
May 2024
 
L+
2.23%
 
350,578

 
330,819

719 Seventh Avenue
 
September 2023
September 2023
 
L+
1.20%
 
50,000

 
50,000

FHLB Facility (9)
 
 
 
 
 


 

 
10,000

FHLB Facility (9)
 
 
 
 
 


 

 
15,000

Total floating rate debt
 
 
 
 
 
 
 
$
880,306

 
$
828,434

Total mortgages and other loans payable
 
 
 
 
 
 
 
$
2,010,216

 
$
2,211,883

Deferred financing costs, net of amortization
 
 
 
 
 
 
 
(23,143
)
 
(28,630
)
Total mortgages and other loans payable, net
 
 
 
 
 
 
 
$
1,987,073

 
$
2,183,253

(1)
Reflects exercise of all available extension options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(2)
Interest rate as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(3)
The loan carries a fixed interest rate of 300 basis points for the first five years and is prepayable without penalty at the end of the fifth year.
(4)
The loan is comprised of a $34.0 million mortgage loan and $0.9 million mezzanine loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of fifth year.
(5)
In January 2020, the Company closed on the acquisition of the remaining 10% interest in this property from our joint venture partner. As part of this transaction, the loan was repaid.
(6)
In March 2020, the loan was assumed by the buyer in connection with the sale of the property.
(7)
This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three-year term with two one-year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.
(8)
This loan is a $465.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three-year term with two one-year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.
(9)
In 2020, the loan was repaid.


36

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

At March 31, 2020 and December 31, 2019, the gross book value of the properties and debt and preferred equity investments collateralizing the mortgages and other loans payable was approximately $3.0 billion and $3.3 billion, respectively.
Federal Home Loan Bank of New York ("FHLB") Facility
The Company's wholly-owned subsidiary, Ticonderoga Insurance Company, or Ticonderoga, a Vermont licensed captive insurance company, is a member of the Federal Home Loan Bank of New York, or FHLBNY. As a member, Ticonderoga may borrow funds from the FHLBNY in the form of secured advances that bear interest at a floating rate. As of March 31, 2020, we had a total of $74.5 million in outstanding secured advances with an average spread of 19 basis points over 30-day LIBOR.
Master Repurchase Agreement
The Company entered into a Master Repurchase Agreement, or MRA, known as the 2017 MRA, which provides us with the ability to sell certain mortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to recollateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity. As of March 31, 2020, there have been no margin calls on the 2017 MRA.
The 2017 MRA has a maximum facility capacity of $300.0 million. In April 2018, we increased the maximum facility capacity to $400.0 million. The facility bears interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate. In June 2018, we exercised a one year extension option and in June 2019, we exercised another one year extension option. In August 2019, we amended our agreement to include two additional one year extension options. At March 31, 2020, the facility had a carrying value of $137.3 million, net of deferred financing costs.
9. Corporate Indebtedness
2017 Credit Facility
In November 2017, we entered into an amendment to the credit facility, referred to as the 2017 credit facility, that was originally entered into by the Company in November 2012, or the 2012 credit facility. As of March 31, 2020, the 2017 credit facility consisted of a $1.5 billion revolving credit facility, a $1.3 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of March 31, 2022, March 31, 2023, and November 21, 2024, respectively. The revolving credit facility has two six-month, as-of-right extension options to March 31, 2023. 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 or other financial institutions.
As of March 31, 2020, the 2017 credit facility bore interest at a spread over 30-day LIBOR ranging from (i) 82.5 basis points to 155 basis points for loans under the revolving credit facility, (ii) 90 basis points to 175 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.
At March 31, 2020, the applicable spread was 100 basis points for the revolving credit facility, 110 basis points for Term Loan A, and 100 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of March 31, 2020, the facility fee was 20 basis points.
As of March 31, 2020, we had $11.8 million of outstanding letters of credit, $1.3 billion drawn under the revolving credit facility and $1.5 billion outstanding under the term loan facilities, with total undrawn capacity of $0.2 billion under the 2017 credit facility. At March 31, 2020 and December 31, 2019, the revolving credit facility had a carrying value of $1.3 billion and $0.2 billion, respectively, net of deferred financing costs. At March 31, 2020 and December 31, 2019, the term loan facilities had a carrying value of $1.5 billion and $1.5 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2017 credit facility.
The 2017 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

37

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

Senior Unsecured Notes
The following table sets forth our senior unsecured notes and other related disclosures as of March 31, 2020 and December 31, 2019, respectively, by scheduled maturity date (dollars in thousands):
Issuance
 
March 31,
2020
Unpaid
Principal
Balance
 
March 31,
2020
Accreted
Balance
 
December 31,
2019
Accreted
Balance
 
Interest
Rate (1)
 
Initial Term
(in Years)
 
Maturity Date
August 7, 2018 (2) (3)
 
$
350,000

 
$
350,000

 
$
350,000

 
L+
0.98
%
 
3
 
August 2021
October 5, 2017 (2)
 
500,000

 
499,722

 
499,695

 
 
3.25
%
 
5
 
October 2022
November 15, 2012 (4)
 
300,000

 
302,881

 
303,142

 
 
4.50
%
 
10
 
December 2022
December 17, 2015 (5)
 
100,000

 
100,000

 
100,000

 
 
4.27
%
 
10
 
December 2025
March 16, 2020 (6)
 

 

 
250,000

 
 
 
 
 
 
 
 
 
$
1,250,000

 
$
1,252,603

 
$
1,502,837

 
 
 
 
 
 
 
Deferred financing costs, net
 
 
 
(5,357
)
 
(5,990
)
 
 
 
 
 
 
 
 
 
$
1,250,000

 
$
1,247,246

 
$
1,496,847

 
 
 
 
 
 
 
(1)
Interest rate as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate notes are presented with the stated spread over the 3-month LIBOR, unless otherwise specified.
(2)
Issued by the Operating Partnership with the Company as the guarantor.
(3)
The notes are subject to redemption at the Company's option, in whole but not in part, at a redemption price equal to 100% of the principal amount of the notes, plus unpaid accrued interest thereon to the redemption date. In April 2020, the Company entered into $350.0 million of fixed rate interest swaps at a rate of 0.54375% through August 2021.
(4)
In October 2017, the Company and the Operating Partnership as co-obligors issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334% of par.
(5)
Issued by the Company and the Operating Partnership as co-obligors.
(6)
In March 2020, the notes were repaid.
Restrictive Covenants
The terms of the 2017 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of March 31, 2020 and December 31, 2019, we were in compliance with all such covenants.
Junior Subordinated Deferrable Interest Debentures
In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments. The Trust preferred securities are redeemable at the option of the Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

Principal Maturities
Combined aggregate principal maturities of mortgages and other loans payable, the 2017 credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of March 31, 2020, including as-of-right extension options, were as follows (in thousands):
 
Scheduled
Amortization
 
Mortgages and Other Loans Payable
 
Revolving
Credit
Facility
 
Unsecured Term Loans
 
Trust
Preferred
Securities
 
Senior
Unsecured
Notes
 
Total
 
Joint
Venture
Debt
Remaining 2020
$
8,351

 
$
55,023

 
$

 
$

 
$

 
$

 
$
63,374

 
$
114,897

2021
11,638

 
231,815

 

 

 

 
350,000

 
593,453

 
884,953

2022
9,430

 
741,252

 

 

 

 
800,000

 
1,550,682

 
268,952

2023
7,301

 
50,000

 
1,300,000

 
1,300,000

 

 

 
2,657,301

 
311,436

2024
6,032

 
272,749

 

 
200,000

 

 

 
478,781

 
617,022

Thereafter
3,258

 
613,367

 

 

 
100,000

 
100,000

 
816,625

 
1,934,823

 
$
46,010

 
$
1,964,206

 
$
1,300,000

 
$
1,500,000

 
$
100,000

 
$
1,250,000

 
$
6,160,216

 
$
4,132,083


Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Interest expense before capitalized interest
$
56,813

 
$
60,810

Interest on financing leases
1,663

 
804

Interest capitalized
(20,483
)
 
(10,509
)
Interest income
(499
)
 
(580
)
Interest expense, net
$
37,494

 
$
50,525


10. Related Party Transactions
Cleaning/ Security/ Messenger and Restoration Services
Alliance Building Services, or Alliance, and its affiliates are partially owned by Gary Green, a son of Stephen L. Green, who serves as a member and as the chairman emeritus of our board of directors, and provide services to certain properties owned by us. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide cleaning, extermination, security, messenger, and restoration services, respectively. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.
Income earned from the profit participation, which is included in other income on the consolidated statements of operations, was $0.9 million and $0.9 million for the three months ended March 31, 2020 and 2019, respectively.
We also recorded expenses, inclusive of capitalized expenses, of $3.9 million and $2.9 million for the three months ended March 31, 2020 and 2019, respectively, for these services (excluding services provided directly to tenants).
Management Fees
S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. We received management fees from this entity of $0.2 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

One Vanderbilt Investment
In December 2016, we entered into agreements with entities owned and controlled by our Chairman and CEO, Marc Holliday, and our President, Andrew Mathias, pursuant to which they agreed to make an investment in our One Vanderbilt project at the appraised fair market value for the interests acquired. This investment entitles these entities to receive approximately 1.50% - 1.80% and 1.00% - 1.20%, respectively, of any profits realized by the Company from its One Vanderbilt project in excess of the Company’s capital contributions. The entities have no right to any return of capital. Accordingly, subject to previously disclosed repurchase rights, these interests will have no value and will not entitle these entities to any amounts (other than limited distributions to cover tax liabilities incurred) unless and until the Company has received distributions from the One Vanderbilt project in excess of the Company’s aggregate investment in the project. In the event that the Company does not realize a profit on its investment in the project (or would not realize a profit based on the value at the time the interests are repurchased), the entities owned and controlled by Messrs. Holliday and Mathias will lose the entire amount of their investment. The entities owned and controlled by Messrs. Holliday and Mathias paid $1.4 million and $1.0 million, respectively, which equal 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.
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 at March 31, 2020 and December 31, 2019 consisted of the following (in thousands):
 
March 31, 2020
 
December 31, 2019
Due from joint ventures
$
18,996

 
$
9,352

Other
7,096

 
11,769

Related party receivables
$
26,092

 
$
21,121


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 March 31, 2020 and December 31, 2019, the noncontrolling interest unit holders owned 5.14%, or 4,144,555 units, and 5.03%, or 4,195,875 units, of the Operating Partnership, respectively. As of March 31, 2020, 4,144,555 shares of our common stock were reserved for issuance upon the redemption of units of limited partnership interest of the Operating Partnership.
Noncontrolling interests in the Operating Partnership is recorded at the greater of its cost basis or fair market value based on the closing stock price of our common stock at the end of the reporting period.
Below is a summary of the activity relating to the noncontrolling interests in the Operating Partnership for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
$
409,862

 
$
387,805

Distributions
(1,284
)
 
(14,729
)
Issuance of common units
3,680

 
19,403

Redemption and conversion of common units
(18,150
)
 
(27,962
)
Net income
6,202

 
13,301

Accumulated other comprehensive loss allocation
(2,886
)
 
(2,276
)
Fair value adjustment
(38,529
)
 
34,320

Balance at end of period
$
358,895

 
$
409,862



40

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(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 March 31, 2020:
Issuance
 
Number of Units Authorized
 
Number of Units Issued
 
Annual Dividend Per Unit(1)
 
Liquidation Preference Per Unit(2)
 
Conversion Price Per Unit(3)
 
Date of Issuance
3.50% Series A (4)
 
109,161

 
109,161

 
$
35.0000

 
$
1,000.00

 
$

 
August 2015
7.00% Series F
 
60

 
60

 
$
70.0000

 
$
1,000.00

 
$
29.12

 
January 2007
4.50% Series G (5)
 
1,902,000

 
1,902,000

 
$
1.1250

 
$
25.00

 
$
88.50

 
January 2012
3.50% Series K
 
700,000

 
563,954

 
$
0.8750

 
$
25.00

 
$
134.67

 
August 2014
4.00% Series L
 
500,000

 
378,634

 
$
1.0000

 
$
25.00

 

 
August 2014
3.75% Series M
 
1,600,000

 
1,600,000

 
$
0.9375

 
$
25.00

 

 
February 2015
4.00% Series P
 
200,000

 
200,000

 
$
1.0000

 
$
25.00

 

 
July 2015
3.50% Series Q
 
268,000

 
268,000

 
$
0.8750

 
$
25.00

 
$
148.95

 
July 2015
3.50% Series R
 
400,000

 
400,000

 
$
0.8750

 
$
25.00

 
$
154.89

 
August 2015
4.00% Series S
 
1,077,280

 
1,077,280

 
$
1.0000

 
$
25.00

 

 
August 2015
2.75% Series T
 
230,000

 
230,000

 
$
0.6875

 
$
25.00

 
$
119.02

 
March 2016
4.50% Series U (6)
 
680,000

 
680,000

 
$
1.1250

 
$
25.00

 

 
March 2016
3.50% Series V
 
40,000

 
40,000

 
$
0.8750

 
$
25.00

 

 
May 2019
Series W (7)
 
1

 
1

 
(6 
) 
 
(6 
) 
 

 
January 2020
(1)
Dividends are cumulative, subject to certain provisions.
(2)
Units are redeemable at any time at par for cash at the option of the unitholder unless otherwise specified.
(3)
If applicable, units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) the amount shown in the table.
(4)
Issued through a consolidated subsidiary. The units are convertible on a one-for-one basis, into the Series B Preferred Units of limited partnership interest, or the Subsidiary Series B Preferred Units. The Subsidiary Series B Preferred Units can be converted at any time, at the option of the unitholder, into a number of common stock equal to 6.71348 shares of common stock for each Subsidiary Series B Preferred Unit. As of March 31, 2020, no Subsidiary Series B Preferred Units have been issued.
(5)
Common units of limited partnership interest in the Operating Partnership issued in a conversion may be redeemed in exchange for our common stock on a 1-to-1 basis. The Series G Preferred Units also provide the holder with the right to require the Operating Partnership to repurchase the Series G Preferred Units for cash before January 31, 2022.
(6)
The annual dividend is subject to reduction upon the occurrence of certain circumstances. The minimum annual dividend is $0.75 per unit.
(7)
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 three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
$
283,285

 
$
300,427

Issuance of preferred units

 
1,000

Redemption of preferred units
(19,392
)
 
(18,142
)
Accrued dividends on preferred units
2,126

 

Balance at end of period
$
266,019

 
$
283,285


12. Stockholders’ Equity of the Company
Common Stock
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of March 31, 2020, 76,535,433 shares of common stock and no shares of excess stock were issued and outstanding.

41

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

Share Repurchase Program
In August 2016, our Board of Directors approved a share repurchase program under which we can buy up to $1.0 billion of shares of our common stock. The Board of Directors has since authorized four 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, and fourth quarter of 2019 bringing the total program size to $3.0 billion.
At March 31, 2020, repurchases executed under the program were as follows:
Period
Shares repurchased
Average price paid per share
Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017
8,342,411
$101.64
8,342,411
Year ended 2018
9,744,911
$96.22
18,087,322
Year ended 2019
4,596,171
$83.62
22,683,493
First quarter 2020
2,637,099
$83.25
25,320,592

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 par for cash at our option. 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 2018, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three months ended March 31, 2020 and 2019, respectively (dollars in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Shares of common stock issued
1,777

 
540

Dividend reinvestments/stock purchases under the DRSPP
$
166

 
$
47


Earnings per Share
We use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the income available to common stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

SL Green's earnings per share for the three months ended March 31, 2020 and 2019 are computed as follows (in thousands):
 
Three Months Ended March 31,
Numerator
2020
 
2019
Basic Earnings:
 
 
 
Income attributable to SL Green common stockholders
$
114,801

 
$
43,792

Less: distributed earnings allocated to participating securities
(113
)
 
(124
)
Less: undistributed earnings allocated to participating securities
(448
)
 

Net income attributable to SL Green common stockholders (numerator for basic earnings per share)
$
114,240

 
$
43,668

Add back: dilutive effect of earnings allocated to participating securities
113

 
124

Add back: undistributed earnings allocated to participating securities
448

 

Add back: effect of dilutive securities (redemption of units to common shares)
6,202

 
2,278

Income attributable to SL Green common stockholders (numerator for diluted earnings per share)
$
121,003

 
$
46,070

 
Three Months Ended March 31,
Denominator
2020
 
2019
Basic Shares:
 
 
 
Weighted average common stock outstanding
77,864

 
83,313

Effect of Dilutive Securities:
 
 
 
Operating Partnership units redeemable for common shares
4,220

 
4,333

Stock-based compensation plans
483

 
164

Diluted weighted average common stock outstanding
82,567

 
87,810


The Company has excluded 1,204,736 and 1,211,943 common stock equivalents from the calculation of diluted shares outstanding for the three months ended March 31, 2020 and the three months ended March 31, 2019, respectively, as they were anti-dilutive.
13. Partners' Capital of the Operating Partnership
The Company is the sole managing general partner of the Operating Partnership and at March 31, 2020 owned 76,535,433 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.

43

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

Limited Partner Units
As of March 31, 2020, limited partners other than SL Green owned 5.14%, or 4,144,555 common units, of the Operating Partnership.
Preferred Units
Preferred units not owned by SL Green are further described in Note 11, “Noncontrolling Interests on the Company’s Consolidated Financial Statements - Preferred Units of Limited Partnership Interest in the Operating Partnership.”
Earnings per Unit
The Operating Partnership's earnings per unit for the three months ended March 31, 2020 and 2019, respectively, are computed as follows (in thousands):
 
Three Months Ended March 31,
Numerator
2020

2019
Basic Earnings:
 
 
 
Income attributable to SLGOP common unitholders
$
121,003

 
$
46,070

Less: distributed earnings allocated to participating securities
(113
)
 
(124
)
Less: undistributed earnings allocated to participating securities
(448
)
 

Net Income attributable to SLGOP common unitholders (numerator for basic earnings per unit)
$
120,442

 
$
45,946

Add back: dilutive effect of earnings allocated to participating securities
113

 
124

Add back: undistributed earnings allocated to participating securities
448

 

Income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
$
121,003

 
$
46,070

 
Three Months Ended March 31,
Denominator
2020

2019
Basic units:
 
 
 
Weighted average common units outstanding
82,084

 
87,646

Effect of Dilutive Securities:
 
 
 
Stock-based compensation plans
483

 
164

Diluted weighted average common units outstanding
82,567

 
87,810


The Operating Partnership has excluded 1,204,736 and 1,211,943 common unit equivalents from the diluted units outstanding for the three months ended March 31, 2020 and the three months ended March 31, 2019, respectively, as they were anti-dilutive.
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.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's board of directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights, cash-based awards and other equity-based awards. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted under the 2005 Plan. Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 3.74 Fungible Units per share subject to such awards, (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five years from the date of grant counting as 0.73 fungible units per share subject to such awards, and (3) all other awards (e.g., ten-year stock options) counting as 1.0 fungible units per share subject to such awards. Awards granted under the 2005 Plan prior to the approval of the fourth amendment and restatement in June 2016 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios. As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 27,030,000 shares. If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares. Currently, unless the 2005 Plan has been previously terminated by the Company's board of directors, new awards may be granted under the 2005 Plan until June 2, 2026, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by the Company's stockholders. As of March 31, 2020, 3.1 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 or ten years from the date of grant, are not transferable other than on death, and generally vest in one to five years commencing one year from the date of grant. We have also granted Class O LTIP Units, which are a class of LTIP Units in the Operating Partnership structured to provide economics similar to those of stock options. Class O LTIP Units, once vested, may be converted, at the election of the holder, into a number of common units of the Operating Partnership per Class O LTIP Unit determined by the increase in value of a share of the Company’s common stock at the time of conversion over a participation threshold, which equals the fair market value of a share of the Company’s common stock at the time of grant. Class O LTIP Units are entitled to distributions, subject to vesting, equal per unit to 10% of the per unit distributions paid with respect to the common units of the Operating Partnership. The fair value of each stock option or LTIP Unit granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information.
There were no options granted during the three months ended March 31, 2020 or the year ended December 31, 2019.
A summary of the status of the Company's stock options as of March 31, 2020 and December 31, 2019, and changes during the three months ended March 31, 2020 and year ended December 31, 2019 are as follows:
 
March 31, 2020
 
December 31, 2019
 
Options Outstanding
 
Weighted Average
Exercise Price
 
Options Outstanding
 
Weighted Average
Exercise Price
Balance at beginning of period
1,037,068

 
$
102.36

 
1,137,017

 
$
103.54

Granted

 

 

 

Exercised

 

 

 

Lapsed or canceled
(5,500
)
 
109.90

 
(99,949
)
 
115.81

Balance at end of period
1,031,568

 
$
102.32

 
1,037,068

 
$
102.36

Options exercisable at end of period
1,029,568

 
$
102.32

 
914,929

 
$
101.69


The remaining weighted average contractual life of the options outstanding was 2.4 years and the remaining average contractual life of the options exercisable was 2.4 years.
During the three months ended March 31, 2020, we recognized compensation expense for these options of $0.02 million. During the three months ended March 31, 2019, we recognized compensation expense for these options of $0.6 million.

45

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

As of March 31, 2020, there was $0.02 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 0.6 years.
Restricted Shares
Shares are granted to certain employees, including our executives, and vesting occurs annually upon the completion of a service period or our meeting established financial performance criteria. Annual vesting occurs at rates ranging from 15% to 35% once performance criteria are reached.
A summary of the Company's restricted stock as of March 31, 2020 and December 31, 2019 and charges during the three months ended March 31, 2020 and the year ended December 31, 2019, are as follows:
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
3,566,466

 
3,452,016

Granted
8,320

 
126,350

Canceled
(13,267
)
 
(11,900
)
Balance at end of period
3,561,519

 
3,566,466

Vested during the period
131,602

 
113,259

Compensation expense recorded
$
2,929,781

 
$
12,892,249

Total fair value of restricted stock granted during the period
$
687,839

 
$
11,131,181


The fair value of restricted stock that vested during the three months ended March 31, 2020 and the year ended December 31, 2019 was $12.4 million and $12.1 million, respectively. As of March 31, 2020, there was $17.5 million of total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 1.8 years.
We granted LTIP Units, which include bonus, time-based and performance-based awards, with a fair value of $34.6 million and $58.3 million as of March 31, 2020 and December 31, 2019, respectively. The grant date fair value of the LTIP Unit awards was calculated in accordance with ASC 718. A third party consultant determined the fair value of the LTIP Units to have a discount from our common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP Units will reach parity with other common partnership units and the illiquidity due to transfer restrictions. As of March 31, 2020, there was $56.7 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 2.4 years.
During the three months ended March 31, 2020, we recorded compensation expense related to bonus, time-based and performance based awards of $7.3 million. During the three months ended March 31, 2019, we recorded compensation expense related to bonus, time-based and performance based awards of $8.0 million.
For the three months ended March 31, 2020, $0.6 million was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options. For the three months ended March 31, 2019, $0.5 million was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.
Deferred Compensation Plan for Directors
Under our Non-Employee Director's Deferral Program, which commenced July 2004, the Company's non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees, meeting fees and annual stock grant. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The program provides that a director's phantom stock units generally will be settled in an equal number of shares of common stock upon the earlier of (i) the January 1 coincident with or the next following such director's termination of service from the Board of Directors or (ii) a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the first business day of the respective quarter. Each participating non-employee director is also credited with dividend equivalents or phantom stock units based on the dividend rate for each quarter, which are either paid in cash currently or credited to the director’s account as additional phantom stock units.
During the three months ended March 31, 2020, 11,966 phantom stock units and 7,999 shares of common stock were issued to our board of directors. We recorded compensation expense of $1.8 million during the three months ended March 31, 2020 related to the Deferred Compensation Plan. We recorded compensation expense of $1.9 million during the three months ended March 31, 2019 related to the Deferred Compensation Plan.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

As of March 31, 2020, there were 131,989 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 encourage our employees to make our business more successful by providing equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase the Company's shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. The Company filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of March 31, 2020, 137,923 shares of our common stock had been issued under the ESPP.
15. Accumulated Other Comprehensive Loss
The following tables set forth the changes in accumulated other comprehensive loss by component as of March 31, 2020 (in thousands):
 
Net unrealized loss on derivative instruments (1)
 
SL Green’s share
of joint venture
net unrealized loss on derivative
instruments (2)
 
Net unrealized gain (loss) on marketable securities
 
Total
Balance at December 31, 2019
$
(22,780
)
 
$
(7,982
)
 
$
2,277

 
$
(28,485
)
Other comprehensive loss before reclassifications
(42,728
)
 
(6,709
)
 
(4,306
)
 
(53,743
)
Amounts reclassified from accumulated other comprehensive loss
687

 
673

 

 
1,360

Balance at March 31, 2020
$
(64,821
)
 
$
(14,018
)
 
$
(2,029
)
 
$
(80,868
)
(1)
Amount reclassified from accumulated other comprehensive loss is included in interest expense in the respective consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the deferred net (gains) losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized (loss) gain on derivative instrument, was $(0.4) million and $(0.7) million, respectively.
(2)
Amount reclassified from accumulated other comprehensive loss is included in equity in net loss from unconsolidated joint ventures in the respective consolidated statements of operations.
16. Fair Value Measurements
We are required to disclose fair value information with regard to 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 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.

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

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 at March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Marketable securities
$
25,353

 
$

 
$
25,353

 
$

Interest rate cap and swap agreements (included in other assets)
$
2

 
$

 
$
2

 
$

Liabilities:
 
 
 
 
 
 
 
Interest rate cap and swap agreements (included in other liabilities)
$
68,722

 
$

 
$
68,722

 
$

 
December 31, 2019
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Marketable securities
$
29,887

 
$

 
$
29,887

 
$

Interest rate cap and swap agreements (included in other assets)
$
4,419

 
$

 
$
4,419

 
$

Liabilities:
 
 
 
 
 
 
 
Interest rate cap and swap agreements (included in other liabilities)
$
29,110

 
$

 
$
29,110

 
$


We evaluate real estate investments and debt and preferred equity investments, including intangibles, for potential impairment primarily utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of which are classified as Level 3 inputs.
Marketable securities classified as Level 1 are derived from quoted prices in active markets. The valuation technique used to measure the fair value of marketable securities classified as Level 2 were valued based on quoted market prices or model driven valuations using the significant inputs derived from or corroborated by observable market data. Marketable securities in an unrealized loss position are not considered to be other than temporarily impaired. 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.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

The following table provides the carrying value and fair value of these financial instruments as of March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
 
Carrying Value (1)
 
Fair Value
 
Carrying Value (1)
 
Fair Value
 
 
 
 
 
 
 
 
Debt and preferred equity investments
$
1,783,336

 
(2) 
 
$
1,580,306

 
(2) 
 
 
 
 
 
 
 
 
Fixed rate debt
$
3,032,513

 
$
3,117,072

 
$
3,536,286

 
$
3,642,770

Variable rate debt
3,130,306

 
3,125,267

 
2,018,434

 
2,018,714

 
$
6,162,819

 
$
6,242,339

 
$
5,554,720

 
$
5,661,484

(1)
Amounts exclude net deferred financing costs.
(2)
At March 31, 2020, debt and preferred equity investments had an estimated fair value ranging between $1.6 billion and $1.8 billion. At December 31, 2019, debt and preferred equity investments had an estimated fair value ranging between $1.6 billion and $1.7 billion.

Disclosure about fair value of financial instruments was based on pertinent information available to us as of March 31, 2020 and December 31, 2019. 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.
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, collar 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 at March 31, 2020 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 Cap
$
300,000

 
3.750
%
 
May 2019
 
May 2020
 
Other Assets
 
$

Interest Rate Swap
100,000

 
1.928
%
 
December 2017
 
November 2020
 
Other Liabilities
 
(1,029
)
Interest Rate Swap
100,000

 
1.934
%
 
December 2017
 
November 2020
 
Other Liabilities
 
(1,033
)
Interest Rate Cap
111,869

 
3.500
%
 
December 2019
 
December 2020
 
Other Assets
 

Interest Rate Cap
85,000

 
4.000
%
 
March 2019
 
March 2021
 
Other Assets
 
2

Interest Rate Swap
200,000

 
1.131
%
 
July 2016
 
July 2023
 
Other Liabilities
 
(5,352
)
Interest Rate Swap
100,000

 
1.161
%
 
July 2016
 
July 2023
 
Other Liabilities
 
(2,774
)
Interest Rate Swap
150,000

 
2.696
%
 
January 2019
 
January 2024
 
Other Liabilities
 
(13,202
)
Interest Rate Swap
150,000

 
2.721
%
 
January 2019
 
January 2026
 
Other Liabilities
 
(19,338
)
Interest Rate Swap
200,000

 
2.740
%
 
January 2019
 
January 2026
 
Other Liabilities
 
(25,994
)
 
 
 
 
 
 
 
 
 
 
 
$
(68,720
)

No gains or losses on the changes in the fair values were included in interest expense in the consolidated statements of operations during the three months ended March 31, 2020 or 2019.
The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of March 31,

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SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

2020, 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 $69.2 million. As of March 31, 2020, the Company has not posted 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 $70.6 million at March 31, 2020.
Gains and losses on terminated hedges are included in accumulated other comprehensive income (loss), and are recognized into earnings over the term of the related mortgage obligation. Over time, the realized and unrealized gains and losses held in accumulated other comprehensive loss will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that $16.7 million of the current balance held in accumulated other comprehensive loss will be reclassified into interest expense and $5.8 million of the portion related to our share of joint venture accumulated other comprehensive loss will be reclassified into equity in net income 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 March 31, 2020 and 2019, respectively (in thousands):
 

Amount of Loss
Recognized in
Other Comprehensive
Loss

Location of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income

Amount of (Loss) Gain Reclassified from
Accumulated Other
Comprehensive Loss into Income


Three Months Ended March 31,


Three Months Ended March 31,
Derivative

2020

2019


2020

2019
Interest Rate Swaps/Caps

$
(45,082
)
 
$
(11,963
)

Interest expense

$
(725
)
 
$
535

Share of unconsolidated joint ventures' derivative instruments

(7,089
)
 
(5,369
)

Equity in net loss from unconsolidated joint ventures

(711
)
 
368



$
(52,171
)

$
(17,332
)



$
(1,436
)

$
903


18. Rental Income
The Operating Partnership is the lessor and the sublessor to tenants under operating 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 revenues were as follows (in thousands):
 
 
Three Months Ended  
 March 31, 2020
 
Three Months Ended  
 March 31, 2019
Fixed lease payments
 
$
194,224

 
$
211,430

Variable lease payments
 
27,168

 
27,479

Total lease payments
 
$
221,392

 
$
238,909

Amortization of acquired above and below-market leases
 
1,239

 
1,209

Total rental revenue
 
$
222,631

 
$
240,118


19. Commitments and Contingencies
Legal Proceedings
As of March 31, 2020, 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.

50

Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

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.
Ground Lease Arrangements
We are a tenant under ground leases for certain properties. These leases have expirations from 2022 to 2114, or 2043 to 2114 as fully extended. Certain leases offer extension options which we assess against relevant economic factors to determine whether we are reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that we are reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and right of use asset.
Certain of our ground leases are subject to rent resets, generally based on a percentage of the then fair market value, a fixed amount, or a percentage of the preceding rent at specified future dates. Rent resets will be recognized in the periods in which they are incurred.
The table below summarizes our current ground lease arrangements as of March 31, 2020:
Property (1)
Year of Current Expiration
Year of Final Expiration (2)
1185 Avenue of the Americas
2043
2043
625 Madison Avenue
2022
2054
420 Lexington Avenue
2050
2080
711 Third Avenue (3)
2033
2083
461 Fifth Avenue (4)
2027
2084
1055 Washington Blvd, Stamford, Connecticut
2090
2090
1080 Amsterdam Avenue (5)
2111
2111
30 East 40th Street (5)
2114
2114
126 Nassau Street (4)
2119
2119
Other
Various
Various
(1)
All leases are classified as operating leases unless otherwise specified.
(2)
Reflects exercise of all available renewal options.
(3)
The Company owns 50% of the fee interest.
(4)
The Company has an option to purchase the ground lease for a fixed price on a specific date. The lease is classified as a financing lease.
(5)
A portion of the lease is classified as a financing lease.

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

The following is a schedule of future minimum lease payments as evaluated in accordance with ASC 842 for our financing leases and operating leases with initial terms in excess of one year as of March 31, 2020 (in thousands):
 
Financing leases
 
Operating leases (1)
Remaining 2020
$
5,812

 
$
22,077

2021
34,885

 
29,452

2022
5,881

 
27,148

2023
5,927

 
24,844

2024
5,999

 
24,863

2025
6,266

 
24,962

Thereafter
1,018,013

 
618,326

Total minimum lease payments
$
1,082,783

 
$
771,672

Amount representing interest
(920,484
)
 
 
Amount discounted using incremental borrowing rate
 
 
(407,682
)
Lease liabilities
$
162,299

 
$
363,990


(1)
As of March 31, 2020, the total minimum sublease rentals to be received in the future under non-cancelable subleases is $1.6 billion.
During the three months ended March 31, 2020, we recognized $2.0 million of financing lease costs, of which $1.7 million represented interest and $0.3 million represented amortization of the right-of-use assets. During the three months ended March 31, 2019, we recognized $1.1 million of financing lease costs, of which $0.8 million represented interest and $0.3 million represented amortization of the right-of-use assets. These amounts are included in interest expense, net of interest income and depreciation and amortization in our consolidated statements of operations, respectively.
During the three months ended March 31, 2020 and 2019, we recognized $7.4 million and $8.3 million of operating lease costs, respectively, which is calculated on a straight-line basis over the remaining lease terms. This amount is included in operating lease rent in our consolidated statements of operations.
As of March 31, 2020, the weighted-average discount rate used to calculate the lease liabilities was 8.01%. As of March 31, 2020, the weighted-average remaining lease term was 70 years.
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 and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, insurance, real estate taxes and ground rent expense (at certain applicable properties). See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments.
Selected consolidated results of operations for the three months ended March 31, 2020 and 2019, and selected asset information as of March 31, 2020 and December 31, 2019, regarding our operating segments are as follows (in thousands):

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Table of Contents
SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
March 31, 2020
(unaudited)

 
 
Real Estate Segment
 
Debt and Preferred Equity Segment
 
Total Company
Total revenues
 
 
 
 
 
 
Three months ended:
 
 
 
 
 
 
March 31, 2020
 
$
275,770

 
$
38,533

 
$
314,303

March 31, 2019
 
254,224

 
50,031

 
304,255

Net income
 
 
 
 
 


Three months ended:
 
 
 
 
 


March 31, 2020
 
$
111,233

 
$
15,881

 
$
127,114

March 31, 2019
 
21,572

 
31,197

 
52,769

Total assets
 
 
 
 
 


As of:
 
 
 
 
 


March 31, 2020
 
$
11,345,239

 
$
1,875,368

 
$
13,220,607

December 31, 2019
 
11,063,155

 
1,703,165

 
12,766,320


Interest costs for the debt and preferred equity segment include actual costs incurred for borrowings on the 2017 MRA and the FHLB Facility. Interest is imputed on the investments that do not collateralize the 2017 MRA and the FHLB Facility using our weighted average corporate borrowing cost. We also allocate loan loss reserves, net of recoveries, and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses to the debt and preferred equity segment because the use of personnel and resources is dependent on transaction volume between the two segments and varies period over period. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. For the three months ended March 31, 2020 and 2019, marketing, general and administrative expenses totaled $19.6 million and $26.0 million, respectively. 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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Table of Contents


ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
SL Green Realty Corp., which is referred to as SL Green or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the acquisition, development, ownership, management and operation of commercial and residential real estate properties, principally office properties, located in the New York metropolitan area. 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, 2019.
As of March 31, 2020, 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 Properties
 
Approximate Square Feet (unaudited)
 
Number of Properties
 
Approximate Square Feet (unaudited)
 
Number of Properties
 
Approximate Square Feet (unaudited)
 
Weighted Average Occupancy(1) (unaudited)
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan
 
Office
 
18


10,647,191

 
10

 
11,216,183

 
28

 
21,863,374

 
93.7
%
 
 
Retail
 
4

 
44,189

 
8

 
289,050

 
12

 
333,239

 
98.0
%
 
 
Development/Redevelopment
 
11

 
3,028,211

 
1

 
1,657,198

 
12

 
4,685,409

 
N/A
 
 
Fee Interest
 

 

 
1

 

 
1

 

 
%
 
 
 
 
33

 
13,719,591

 
20

 
13,162,431

 
53

 
26,882,022

 
93.8
%
Suburban
 
Office
 
8

 
1,044,800

 

 

 
8

 
1,044,800

 
85.5
%
 
 
Retail
 
1

 
52,000

 

 

 
1

 
52,000

 
100.0
%
 
 
Development/Redevelopment
 

 

 

 

 

 

 
%
 
 
 
 
9

 
1,096,800

 

 

 
9

 
1,096,800

 
86.2
%
Total commercial properties
 
42

 
14,816,391

 
20

 
13,162,431

 
62

 
27,978,822

 
93.4
%
Residential:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan
 
Residential
 
2

 
222,250

 
8

 
1,663,774

 
10

 
1,886,024

 
96.7
%
Total residential properties
 
2

 
222,250

 
8

 
1,663,774

 
10

 
1,886,024

 
96.7
%
Total portfolio
 
44

 
15,038,641

 
28

 
14,826,205

 
72

 
29,864,846

 
93.6
%
(1)
The weighted average occupancy for commercial properties represents the total occupied square footage divided by the total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by the total available units. Properties under construction are not included in the calculation of weighted average occupancy.
As of March 31, 2020, we also managed two office buildings owned by third parties encompassing approximately 2.1 million square feet (unaudited), and held debt and preferred equity investments with a book value of $1.9 billion, including $0.1 billion of debt and preferred equity investments and other financing receivables that are included in other balance sheet line items other than the Debt and Preferred Equity Investments line item.
Critical Accounting Policies
Refer to the 2019 Annual Report on Form 10-K of the Company and the Operating Partnership for a discussion of our critical accounting policies, which include investment in commercial real estate properties, investment in unconsolidated joint ventures, revenue recognition, reserve for possible credit losses and derivative instruments. During the three months ended March 31, 2020, there were no material changes to these policies, other than the adoption of the Accounting Standards Codification Topic 326, Financial Instruments - Credit Losses, described in Note 2 - Significant Accounting Policies and Note 5 - Debt and Preferred Equity Investments to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q.

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Results of Operations
Beginning in late 2019, a novel strain of Coronavirus (“COVID-19”) began to spread throughout the world, including the United States, ultimately being declared a pandemic by the World Health Organization. Over the past several months the pandemic has caused, and continues to cause, severe disruptions with wide ranging impacts to the global economy and everyday life. We expect that our business, results of operations, liquidity, cash flows, prospects, and our ability to achieve forward-looking targets and expectations could be materially and adversely affected for at least the duration of the COVID-19 pandemic and possibly longer. This could also cause significant volatility in the trading prices of our securities. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration, severity and spread of the pandemic, health and safety actions taken to contain its spread, any possible resurgence that may occur after the initial outbreak subsides and how quickly and to what extent normal economic and operating conditions can resume. Additionally, the COVID-19 pandemic could increase the magnitude of many of the other risks described in our latest Annual Report on Form 10-K and other SEC filings and may have other adverse effects on our operations that we are not currently able to predict.
Comparison of the three months ended March 31, 2020 to the three months ended March 31, 2019
The following comparison for the three months ended March 31, 2020, or 2020, to the three months ended March 31, 2019, or 2019, makes reference to the effect of the following:
i.
“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2019 and still owned by us in the same manner at March 31, 2020 (Same-Store Properties totaled 31 of our 44 consolidated operating properties),
ii.
“Acquisition Properties,” which represents all properties or interests in properties acquired in 2020 and 2019 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 2020 and 2019, 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)
 
2020
 
2019
 
$
Change
 
%
Change
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
 
$
Change
 
%
Change
Rental revenue
 
$
194.1

 
$
189.8

 
$
4.3

 
2.3
 %
 
$
8.3

 
$
18.5

 
$
20.2

 
$
31.8

 
$
222.6

 
$
240.1

 
$
(17.5
)
 
(7.3
)%
Investment income
 

 

 

 
 %
 

 

 
38.5

 
50.0

 
38.5

 
50.0

 
(11.5
)
 
(23.0
)%
Other income
 
0.4

 
0.6

 
(0.2
)
 
(33.3
)%
 

 
4.2

 
52.8

 
9.3

 
53.2

 
14.1

 
39.1

 
277.3
 %
Total revenues
 
194.5

 
190.4

 
4.1

 
2.2
 %
 
8.3

 
22.7

 
111.5

 
91.1

 
314.3

 
304.2

 
10.1

 
3.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses
 
91.4

 
89.5

 
1.9

 
2.1
 %
 
4.5

 
9.0

 
11.9

 
14.2

 
107.8

 
112.7

 
(4.9
)
 
(4.3
)%
Transaction related costs
 

 

 

 
 %
 

 

 
0.1

 
0.1

 
0.1

 
0.1

 

 
 %
Marketing, general and administrative
 

 

 

 
 %
 

 

 
19.6

 
26.0

 
19.6

 
26.0

 
(6.4
)
 
(24.6
)%
 
 
91.4

 
89.5

 
1.9

 
2.1
 %
 
4.5

 
9.0

 
31.6

 
40.3

 
127.5

 
138.8

 
(11.3
)
 
(8.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income (expenses):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense and amortization of deferred financing costs, net of interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(40.0
)
 
(53.3
)
 
13.3

 
(25.0
)%
Depreciation and amortization
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
(68.3
)
 
(68.3
)
 

 
 %
Equity in net loss from unconsolidated joint ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(12.8
)
 
(5.2
)
 
(7.6
)
 
146.2
 %
Equity in net gain on sale of interest in unconsolidated joint venture/real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
17.2

 
(17.2
)
 
(100.0
)%
Purchase price and other fair value adjustments
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 

 
(2.0
)
 
2.0

 
(100.0
)%
Gain (loss) on sale of real estate, net
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 
72.6

 
(1.0
)
 
73.6

 
(7,360
)%
Loan loss and other investment reserves, net of recoveries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(11.2
)
 

 
(11.2
)
 
100.0
 %
Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
127.1

 
$
52.8

 
$
74.3

 
140.7
 %

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Rental Revenue
Rental revenues decreased primarily due to Credit Suisse vacating its space at One Madison Avenue in January 2020 pursuant to an agreement to terminate its lease ($10.6 million) and lower revenue from our Disposed Properties ($10.2 million). This was partially offset by increased revenue at our Same-Store properties ($4.3 million).
The following table presents a summary of the commenced leasing activity for the three months ended March 31, 2020 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
1,306,757

 
 

 
 
 
 

 
 

 
 

 
 

Properties in redevelopment
(10,695
)
 
 
 
 
 
 
 
 
 
 
 
 
Space which became available during the period (3)
 
 
 

 
 
 
 

 
 

 
 

 
 

•       Office
272,044

 
 

 
 

 
 

 
 

 
 

 
 

•       Retail
51,211

 
 

 
 

 
 

 
 

 
 

 
 

•       Storage
1,422

 
 

 
 

 
 

 
 

 
 

 
 

 
324,677

 
 

 
 

 
 

 
 

 
 

 
 

Total space available
1,620,739

 
 

 
 

 
 

 
 

 
 

 
 

Leased space commenced during the period:
 

 
 

 
 

 
 

 
 

 
 

 
 

•       Office(4)
154,666

 
163,700

 
$
69.23

 
$
73.68

 
$
60.97

 
6.1

 
11.5

•       Retail
81,378

 
77,498

 
$
148.29

 
$
79.61

 
$
86.46

 
10.2

 
14.9

•       Storage
422

 
422

 
$
58.58

 
$
56.87

 
$

 

 
1.0

Total leased space commenced
236,466

 
241,620

 
$
94.57

 
$
75.38

 
$
69.04

 
7.4

 
12.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total available space at end of period
1,384,273

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Early renewals
 

 
 
 
 

 
 

 
 

 
 

 
 

•       Office
2,462

 
2,761

 
$
65.46

 
$
65.98

 
$
20.72

 
0.5

 
3.2

•       Retail
2,812

 
2,740

 
$
121.84

 
$
125.53

 
$

 

 
1.0

•       Storage
2,280

 
2,434

 
$
35.00

 
$
46.71

 
$

 
4.0

 
12.6

Total early renewals
7,554

 
7,935

 
$
75.59

 
$
80.63

 
$
7.21

 
1.4

 
5.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total commenced leases, including replaced previous vacancy
 

 
 

 
 
 
 
 
 
 
 
 
 
•       Office
 
 
166,461

 
$
69.16

 
$
73.52

 
$
60.30

 
6.0

 
11.3

•       Retail
 

 
80,238

 
$
147.39

 
$
81.76

 
$
83.50

 
9.9

 
14.4

•       Storage
 

 
2,856

 
$
38.48

 
$
48.21

 
$

 
3.4

 
10.9

Total commenced leases
 

 
249,555

 
$
93.96

 
$
75.60

 
$
67.07

 
7.2

 
12.3

(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 $68.39 per rentable square feet for 133,762 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $68.33 per rentable square feet for 136,523 rentable square feet.


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Investment Income
For the three months ended March 31, 2020, investment income decreased primarily as a result of a decrease in the weighted average balance and weighted average yield of our debt and preferred equity investments. For the three months ended March 31, 2020, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $1.8 billion and 8.3%, respectively, compared to $2.2 billion and 8.8%, respectively, for the same period in 2019.
Other Income
Other income increased primarily due to the receipt of a lease termination payment from Credit Suisse at One Madison Avenue in the first quarter of 2020 ($51.1 million), compared to a lease settlement payment at 180 Maiden Lane in the first quarter of 2019 ($4.1 million) and lower asset management fee revenue in the first quarter of 2020 ($2.4 million).
Property Operating Expenses
Property operating expenses decreased primarily due to decreased operating expenses and real estate taxes at our Disposed properties ($3.2 million and $1.4 million, respectively), partially offset by increased real estate taxes at our Same-Store properties ($2.4 million).
Marketing, General and Administrative Expenses
Marketing, general and administrative expenses decreased to $19.6 million for the three months ended March 31, 2020, compared to $26.0 million for the same period in 2019 due primarily to reduced stock based compensation expense for the Company's executives.
Interest Expense and Amortization of Deferred Financing Costs, Net of Interest Income
Interest expense and amortization of deferred financing costs, net of interest income, decreased primarily as a result of the interest capitalization in connection with properties that are under development ($4.8 million) and lower interest expense from the 2017 master repurchase agreement ($2.3 million), 2017 revolving credit facility ($2.0 million), senior unsecured notes ($1.6 million), and term loans ($1.3 million) resulting from a decrease in average LIBOR rates during the three months ended March 31, 2020 compared to the three months ended March 31, 2019. The weighted average consolidated debt balance outstanding was $6.1 billion for the three months ended March 31, 2020, compared to $5.9 billion for the three months ended March 31, 2019. The consolidated weighted average interest rate was 3.62% for the three months ended March 31, 2020, as compared to 4.04% for the three months ended March 31, 2019.
Depreciation and Amortization
Depreciation and amortization was unchanged due to increased depreciation and amortization at our Same Store properties ($8.4 million), offset by decreased depreciation and amortization at our Acquired properties ($5.1 million) and Disposed properties ($3.7 million).
Equity in Net Loss in Unconsolidated Joint Ventures
Equity in net loss from unconsolidated joint ventures increased primarily as a result of depreciation expense at our unconsolidated joint venture properties ($7.8 million).
Equity in net gain on sale of interest in unconsolidated joint venture/real estate
During the three months ended March 31, 2020, we did not sell any joint venture interests or properties. During the three months ended March 31, 2019, we recognized a gain on sale related to our interests in 131-137 Spring Street ($17.7 million).
Purchase price and other fair value adjustments
During the three months ended March 31, 2020, we did not recognize any purchase price and other fair value adjustments. During the three months ended March 31, 2019, we recorded a purchase price and other fair value adjustment related to our investment in 2 Herald Square ($2.0 million).
Gain (loss) on sale of real estate, net
During the three months ended March 31, 2020, we recognized a gain on sale related to our interest in 315 West 33rd Street ("The Olivia") ($72.3 million).
Loan loss and other investment reserves, net of recoveries
During the three months ended March 31, 2020, we recorded $11.2 million of loan loss and other investment reserves in conjunction with recording Debt and Preferred Equity Investments and other financing receivables at the net amount expected to be collected.

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Liquidity and Capital Resources
We currently expect that our principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, acquisitions, development or redevelopment of properties, tenant improvements, leasing costs, share repurchases, dividends to shareholders, distributions to unitholders, repurchases or repayments of outstanding indebtedness and for debt and preferred equity investments will include:
(1)
Cash flow from operations;
(2)
Cash on hand;
(3)
Net proceeds from divestitures of properties and redemptions, participations and dispositions of debt and preferred equity investments;
(4)
Borrowings under the revolving credit facility;
(5)
Other forms of secured or unsecured financing; and
(6)
Proceeds from common or preferred equity or debt offerings by the Company or the Operating Partnership (including issuances of units of limited partnership interest in the Operating Partnership and Trust preferred securities).
Cash flow from operations is primarily dependent upon the collectability of rent, the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent, operating escalations and recoveries from our tenants and the level of operating and other costs. Additionally, we believe that our debt and preferred equity investment program will continue to serve as a source of operating cash flow.
As of the date of this filing, we have collected approximately 87.8% of rent due for the month of April 2020 from all tenants, including 93.4% from office tenants and 63.4% from retail tenants.
The combined aggregate principal maturities of our property mortgages and other loans payable, Master Repurchase Agreement ("MRA") and Federal Home Loan Bank of New York ("FHLB") facilities, corporate obligations and our share of joint venture debt, including as-of-right extension options, as of March 31, 2020 were as follows (in thousands):
 
Remaining 2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
 
Total
Property mortgages and other loans
$
23,874

 
$
208,453

 
$
613,209

 
$
57,301

 
$
278,781

 
$
616,625

 
$
1,798,243

MRA and FHLB facilities
39,500

 
35,000

 
137,473

 

 

 

 
211,973

Corporate obligations

 
350,000

 
800,000

 
2,600,000

 
200,000

 
200,000

 
4,150,000

Joint venture debt-our share
114,897

 
884,953

 
268,952

 
311,436

 
617,022

 
1,934,823

 
4,132,083

Total
$
178,271

 
$
1,478,406

 
$
1,819,634

 
$
2,968,737

 
$
1,095,803

 
$
2,751,448

 
$
10,292,299

As of March 31, 2020, we had liquidity of $0.8 billion, comprised of $0.2 billion of availability under our revolving credit facility and $579.5 million of consolidated cash on hand, inclusive of $25.4 million of marketable securities and excluding $112.7 million representing our share of cash at unconsolidated joint venture properties. We expect to generate positive cash flow from operations for the foreseeable future. We may also 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 also have investments in several real estate joint ventures with various partners who we consider to be financially stable and who have the ability to fund a capital call when needed. Most of our joint ventures are financed with non-recourse debt. We believe that property level cash flows along with unfunded committed indebtedness and proceeds from the refinancing of outstanding secured indebtedness will be sufficient to fund the capital needs of our joint venture properties.
Cash Flows
The following summary discussion of our cash flows is based on our consolidated statements of cash flows in "Item 1. Financial Statements" and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

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Table of Contents


Cash, restricted cash, and cash equivalents were $621.0 million and $295.7 million at March 31, 2020 and 2019, respectively, representing an increase of $325.3 million. The increase was a result of the following changes in cash flows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
 
Change
Net cash provided by operating activities
$
42,026

 
$
62,313

 
$
(20,287
)
Net cash used in investing activities
$
(129,418
)
 
$
(291,843
)
 
$
162,425

Net cash provided by financing activities
$
466,984

 
$
246,128

 
$
220,856

Our principal sources of operating cash flow are the properties in our consolidated and joint venture portfolios and our debt and preferred equity portfolio. These sources generate a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service and fund dividend and distribution requirements.
Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria. During the three months ended March 31, 2020, when compared to the three months ended March 31, 2019, we used cash primarily for the following investing activities (in thousands):
Acquisitions of real estate
$
(86,846
)
Capital expenditures and capitalized interest
(62,202
)
Escrow cash-capital improvements/acquisition deposits/deferred purchase price
4,910

Joint venture investments
64,445

Distributions from joint ventures
29,852

Proceeds from sales of real estate/partial interest in property
76,667

Debt and preferred equity and other investments
135,599

Increase in net cash provided by investing activities
$
162,425

Funds spent on capital expenditures, which are comprised of building and tenant improvements, increased from $39.5 million for the three months ended March 31, 2019 to $101.7 million for the three months ended March 31, 2020.
We generally fund our investment activity through the sale of real estate, property-level financing, our credit facilities, our MRA facility, our FHLB facility, senior unsecured notes, and construction loans. From time to time, the Company may issue common or preferred stock, or the Operating Partnership may issue common or preferred units of limited partnership interest.
During the three months ended March 31, 2020, when compared to the three months ended March 31, 2019, we used cash for the following financing activities (in thousands):
Proceeds from our debt obligations
$
596,231

Repayments of our debt obligations
(186,650
)
Net distribution to noncontrolling interests
5,728

Other financing activities
(1,190
)
Proceeds from stock options exercised and DRSPP issuance
119

Repurchase of common stock
(185,333
)
Redemption of preferred stock
(4,250
)
Acquisition of subsidiary interest from noncontrolling interest
(1,536
)
Dividends and distributions paid
(2,263
)
Increase in net cash provided by financing activities
$
220,856

Capitalization
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, $0.01 par value per share. As of March 31, 2020, 76,535,433 shares of common stock and no shares of excess stock were issued and outstanding.

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Table of Contents


Share Repurchase Program
In August 2016, our Board of Directors approved a share repurchase program under which we can repurchase up to $1.0 billion of shares of our common stock. The Board of Directors has since authorized four 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, and fourth quarter of 2019 bringing the total program size to $3.0 billion.
At March 31, 2020, repurchases executed under the program were as follows:
Period
Shares repurchased
Average price paid per share
Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017
8,342,411
$101.64
8,342,411
Year ended 2018
9,744,911
$96.22
18,087,322
Year ended 2019
4,596,171
$83.62
22,683,493
First quarter 2020
2,637,099
$83.25
25,320,592
Dividend Reinvestment and Stock Purchase Plan ("DRSPP")
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three months ended March 31, 2020 and 2019, respectively (dollars in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Shares of common stock issued
1,777

 
540

Dividend reinvestments/stock purchases under the DRSPP
$
166

 
$
47

Fourth Amended and Restated 2005 Stock Option and Incentive Plan
The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's board of directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the 2005 Plan. As of March 31, 2020, 3.1 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.
Deferred Compensation Plan for Directors
During the three months ended March 31, 2020, 11,966 phantom stock units and 7,999 shares of common stock were issued to our board of directors. We recorded compensation expense of $1.8 million during the three months ended March 31, 2020 related to the Deferred Compensation Plan. We recorded compensation expense of $1.9 million during the three months ended March 31, 2019 related to the Deferred Compensation Plan.
As of March 31, 2020, there were 131,989 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.

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Table of Contents


Indebtedness
The table below summarizes our consolidated mortgages and other loans payable, 2017 credit facility, senior unsecured notes and trust preferred securities outstanding at March 31, 2020 and December 31, 2019, (amounts in thousands).
Debt Summary:
March 31, 2020
 
December 31, 2019
Balance
 
 
 
Fixed rate
$
2,032,513

 
$
2,536,286

Variable rate—hedged
1,000,000

 
1,000,000

Total fixed rate
3,032,513

 
3,536,286

Total variable rate
3,130,306

 
2,018,434

Total debt
$
6,162,819

 
$
5,554,720

 
 
 
 
Debt, preferred equity, and other investments subject to variable rate
823,603

 
618,885

Net exposure to variable rate debt
2,306,703

 
1,399,549

 

 
 
Percent of Total Debt:
 
 
 
Fixed rate
49.2
%
 
63.7
%
Variable rate (1)
50.8
%
 
36.3
%
Total
100.0
%
 
100.0
%
Effective Interest Rate for the Year:
 
 
 
Fixed rate
4.01
%
 
4.05
%
Variable rate
3.09
%
 
3.93
%
Effective interest rate
3.62
%
 
3.85
%
(1)
Inclusive of the mitigating effect of our debt, preferred equity, and other investments subject to variable rate, the percent of total debt of our net exposure to variable rate debt was 43.2% and 28.4% as of March 31, 2020 and December 31, 2019, respectively.
The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (0.98% and 1.76% at March 31, 2020 and December 31, 2019, respectively). Our consolidated debt at March 31, 2020 had a weighted average term to maturity of 3.21 years.
Certain of our debt and equity investments and other investments, with carrying values of $0.8 billion at March 31, 2020 and $0.6 billion at December 31, 2019, are variable rate investments which mitigate our exposure to interest rate changes on our unhedged variable rate debt. Inclusive of the mitigating effect of these investments, the net percent of our variable rate debt to total debt was 43.2% and 28.4% , respectively.
2017 Credit Facility
In November 2017, we entered into an amendment to the credit facility, referred to as the 2017 credit facility, that was originally entered into by the Company in November 2012, or the 2012 credit facility. As of March 31, 2020, the 2017 credit facility consisted of a $1.5 billion revolving credit facility, a $1.3 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of March 31, 2022, March 31, 2023, and November 21, 2024, respectively. The revolving credit facility has two six-month as-of-right extension options to March 31, 2023. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.
As of March 31, 2020, the 2017 credit facility bore interest at a spread over 30-day LIBOR ranging from (i) 82.5 basis points to 155 basis points for loans under the revolving credit facility, (ii) 90 basis points to 175 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.
At March 31, 2020, the applicable spread was 100 basis points for the revolving credit facility, 110 basis points for Term Loan A, and 100 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of March 31, 2020, the facility fee was 20 basis points.

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As of March 31, 2020, we had $11.8 million of outstanding letters of credit, $1.3 billion drawn under the revolving credit facility and $1.5 billion outstanding under the term loan facilities, with total undrawn capacity of $0.2 billion under the 2017 credit facility. At March 31, 2020 and December 31, 2019, the revolving credit facility had a carrying value of $1.3 billion and $0.2 billion, respectively, net of deferred financing costs. At March 31, 2020 and December 31, 2019, the term loan facilities had a carrying value of $1.5 billion and $1.5 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2017 credit facility.
The 2017 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).
Restrictive Covenants
The terms of the 2017 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of March 31, 2020 and December 31, 2019, we were in compliance with all such covenants.
Interest Rate Risk
We are exposed to changes in interest rates primarily from our variable rate debt. Our exposure to interest rate fluctuations are managed through either the use of interest rate derivative instruments and/or through our variable rate debt and preferred equity investments. Based on the debt outstanding as of March 31, 2020, a hypothetical 100 basis point increase in the floating rate interest rate curve would increase our consolidated annual interest cost, net of interest income from variable rate debt and preferred equity investments, by $21.9 million and would increase our share of joint venture annual interest cost by $18.0 million. At March 31, 2020, 46.2% of our $1.8 billion debt and preferred equity portfolio is indexed to LIBOR.
We recognize most derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through income. If a derivative is considered a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings.
Our long-term debt of $3.0 billion bears interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates. Our variable rate debt and variable rate joint venture debt as of March 31, 2020 bore interest based on a spread of LIBOR plus 17 basis points to LIBOR plus 340 basis points.
Contractual Obligations
Refer to our 2019 Annual Report on Form 10-K for a discussion of our contractual obligations. There have been no material changes, outside the ordinary course of business, to these contractual obligations during the three months ended March 31, 2020.
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. Substantially all 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.
Capital Expenditures
We estimate that for the remainder of the year ending December 31, 2020, we expect to incur $80.5 million of recurring capital expenditures on existing consolidated properties and $138.8 million of development or redevelopment expenditures on existing consolidated properties, of which $114.6 million will be funded by construction financing facilities. We expect our share of capital expenditures at our joint venture properties will be $361.0 million, of which $307.8 million will be funded by construction financing facilities. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. We expect our capital needs over the next twelve months and thereafter will be met through a combination of cash on hand, net cash provided by operations, potential asset sales, or additional borrowings.

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Dividends/Distributions
We expect to pay cash dividends to our stockholders based on the distributions we receive from our Operating Partnership, which are generated by the collection of property revenues, net of operating expenses, and interest on our debt and preferred equity portfolio.
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. 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 2017 credit facility and senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.
Insurance
We maintain “all-risk” property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism, excluding nuclear, biological, chemical, and radiological terrorism ("NBCR")), within three property insurance programs and liability insurance. Separate property and liability coverage may be purchased on a stand-alone basis for certain assets, such as the development of One Vanderbilt. Additionally, one of our captive insurance companies, Belmont Insurance Company, or Belmont, provides coverage for NBCR terrorist acts above a specified trigger. Belmont's retention is reinsured by our other captive insurance company, Ticonderoga Insurance Company ("Ticonderoga"). If Belmont or Ticonderoga are required to pay a claim under our insurance policies, we would ultimately record the loss to the extent of required payments. However, there is no assurance that in the future we will be able to procure coverage at a reasonable cost. Further, if we experience losses that are uninsured or that exceed policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. Additionally, our debt instruments contain customary covenants requiring us to maintain insurance and we could default under our debt instruments if the cost and/or availability of certain types of insurance make it impractical or impossible to comply with such covenants relating to insurance. Belmont and Ticonderoga provide coverage solely on properties owned by the Company or its affiliates.
Furthermore, with respect to certain of our properties, including properties held by joint ventures or subject to triple net leases, insurance coverage is obtained by a third-party and we do not control the coverage. While we may have agreements with such third parties to maintain adequate coverage and we monitor these policies, such coverage ultimately may not be maintained or adequately cover our risk of loss.
Funds from Operations
FFO is a widely recognized non-GAAP financial measure of REIT performance. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended in December 2018, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of properties and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based compensation for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and real estate related impairment charges, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, and interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including our ability to make cash distributions.

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FFO for the three months ended March 31, 2020 and 2019 are as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Net income attributable to SL Green common stockholders
$
114,801

 
$
43,792

Add:
 
 
 
Depreciation and amortization
68,279

 
68,343

Joint venture depreciation and noncontrolling interest adjustments
56,318

 
47,625

Net income attributable to noncontrolling interests
5,909

 
2,515

Less:
 
 
 
Equity in net gain on sale of interest in unconsolidated joint venture/real estate

 
17,166

Gain (loss) on sale of real estate, net
72,636

 
(1,049
)
Purchase price and other fair value adjustments

 
(2,041
)
Depreciation on non-rental real estate assets
650

 
707

Funds from Operations attributable to SL Green common stockholders
$
172,021

 
$
147,492

Cash flows used in operating activities
$
(175,889
)
 
$
(183,899
)
Cash flows provided by (used in) investing activities
$
336,986

 
$
(559,907
)
Cash flows provided by financing activities
$
256,461

 
$
630,450

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 Consumer Price Index or other measures such as porters' wage. In addition, many of the leases provide for fixed base rent increases. We believe that inflationary increases will be at least partially offset by the contractual rent increases and expense escalations described above.
Accounting Standards Updates
The Accounting Standards Updates are discussed in Note 2, "Significant Accounting Policies-Accounting Standards Updates" in the accompanying consolidated financial statements.
Forward-Looking Information
This report includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this report that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate.
Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.
Forward-looking statements contained in this report are subject to a number of risks and uncertainties that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. These risks and uncertainties include:
the effect of general economic, business and financial conditions, and their effect on the New York City real estate market in particular;
the effect of the on-going COVID-19 pandemic and the impact it will have on our business and the industry as a whole
dependence upon certain geographic markets;
risks of real estate acquisitions, dispositions, development and redevelopment, including the cost of construction delays and cost overruns;

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risks relating to debt and preferred equity investments;
availability and creditworthiness of prospective tenants and borrowers;
bankruptcy or insolvency of a major tenant or a significant number of smaller tenants or borrowers;
adverse changes in the real estate markets, including reduced demand for office space, increasing vacancy, and increasing availability of sublease space;
availability of capital (debt and equity);
unanticipated increases in financing and other costs, including a rise in interest rates;
our ability to comply with financial covenants in our debt instruments;
our ability to maintain our status as a REIT;
risks of investing through joint venture structures, including the fulfillment by our partners of their financial obligations;
the threat of terrorist attacks;
our ability to obtain adequate insurance coverage at a reasonable cost and the potential for losses in excess of our insurance coverage, including as a result of environmental contamination; and
legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.
Other factors and risks to our business, many of which are beyond our control, are described in other sections of this report and in our other filings with the SEC. 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 - Market Risk" in this Quarterly Report on Form 10-Q for the three months ended March 31, 2020 for the Company and the Operating Partnership and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Market Rate Risk" in the Annual Report on Form 10-K for the year ended December 31, 2019 for the Company and the Operating Partnership. Our exposures to market risk have not changed materially since December 31, 2019.

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ITEM 4.    CONTROLS AND PROCEDURES
SL GREEN REALTY CORP.
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e) of the Exchange Act. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports. Also, the Company has investments in certain unconsolidated entities. As the Company does not control these entities, its disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those the Company maintains with respect to its consolidated subsidiaries.
As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation as of the end of the period covered by this report, the Company's Chief Executive Officer and Chief Financial Officer concluded that its disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.
Changes in Internal Control over Financial Reporting
There have been no significant changes in the Company's internal control over financial reporting during the quarter ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.
SL GREEN OPERATING PARTNERSHIP, L.P.
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e) of the Exchange Act. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports. Also, the Company has investments in certain unconsolidated entities. As the Company does not control these entities, its disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those the Company maintains with respect to its consolidated subsidiaries.
As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation as of the end of the period covered by this report, the Company's Chief Executive Officer and Chief Financial Officer concluded that its disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.
Changes in Internal Control over Financial Reporting
There have been no significant changes in the Operating Partnership's internal control over financial reporting during the quarter ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

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PART II. OTHER INFORMATION
ITEM 1.    LEGAL PROCEEDINGS
As of March 31, 2020, 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.
ITEM 1A.    RISK FACTORS
As of March 31, 2020 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, 2019, other than the addition of the following risk factor:
The COVID-19 pandemic and health and safety measures intended to reduce its spread could adversely affect our business, results of operations, and financial condition.
Beginning in late 2019, a novel strain of Coronavirus (“COVID-19”) began to spread throughout the world, including the United States, ultimately being declared a pandemic by the World Health Organization. Over the past several months the pandemic has caused, and continues to cause, severe disruptions with wide ranging impacts to the global economy and everyday life. We expect that our business, results of operations, liquidity, cash flows, prospects, and our ability to achieve forward-looking targets and expectations could be materially and adversely affected for at least the duration of the COVID-19 pandemic and possibly longer. This could also cause significant volatility in the trading prices of our securities. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration, severity and spread of the pandemic, health and safety actions taken to contain its spread, any possible resurgence that may occur after the initial outbreak subsides and how quickly and to what extent normal economic and operating conditions can resume. Additionally, the COVID-19 pandemic could increase the magnitude of many of the other risks described in our latest Annual Report on Form 10-K and other SEC filings and may have other adverse effects on our operations that we are not currently able to predict.
The scale and magnitude of adverse impacts could depend on, among other factors:
the financial condition of our tenants and their ability or willingness to pay rent in full on a timely basis;
the impact on rents and demand for office and retail space;
the impact of new regulations or norms on physical space needs and expectations;
the financial condition of the borrowers and sponsors of our debt and preferred equity investments and their ability or willingness to make interest and principal payments;
the effectiveness of governmental measures aimed at slowing and containing the spread;
the effect of changes in laws and regulation;
the extent and terms associated with governmental relief programs;
the ability of debt and equity markets to function and provide liquidity;
the ability to avoid delays or cost increases associated with building materials or construction services necessary for development, redevelopment and tenant improvements; and
our tenants’ ability to ensure business continuity in the event a continuity of operations plan is not effective or improperly implemented.


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ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
During the three months ended March 31, 2020 the Operating Partnership issued 2,742 units of limited partnership interest in connection with an acquisition. SL Green may satisfy redemption requests for the units issued in the transaction described above with shares of SL Green’s common stock pursuant to the Operating Partnership agreement. The units were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended.
In August 2016, our Board of Directors approved a share repurchase program under which we can buy up to $1.0 billion of shares of our common stock. The Board of Directors has since authorized four 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, and fourth quarter of 2019 bringing the total program size to $3.0 billion.
At March 31, 2020, repurchases executed under the program were as follows:
Period
Shares repurchased
Average price paid per share
Total number of shares repurchased as part of the repurchase plan or programs
Year ended 2017
8,342,411
$101.64
8,342,411
Year ended 2018
9,744,911
$96.22
18,087,322
Year ended 2019
4,596,171
$83.62
22,683,493
First quarter 2020
2,637,099
$83.25
25,320,592
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

Certification by the Chairman and Chief Executive Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

Certification by the Chief Financial Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

Certification by the Chairman and Chief Executive Officer of the Company, the sole general partner of the Operating Partnership pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

Certification by the Chief Financial Officer of the Company, the sole general partner of the Operating Partnership pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

Certification by the Chairman and Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

Certification by the Chief Financial Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

Certification by the Chairman and Chief Executive Officer of the Company, the sole general partner of the Operating Partnership pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

Certification by the Chief Financial Officer of the Company, the sole general partner of the Operating Partnership pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
 
 
SL GREEN REALTY CORP.
 
 
By:
 
 SL Green Realty Corp.
 
 
 
 
 
 
 
 
 
/s/ Matthew J. DiLiberto
Dated: May 11, 2020
 
By:
 
Matthew J. DiLiberto
 Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:
Signatures
Title
Date
 
 
 
/s/ Marc Holliday
Chairman of the Board of Directors and Chief Executive Officer and Director of SL Green, the sole general partner of the Operating Partnership (Principal Executive Officer)
May 11, 2020
Marc Holliday
 
 
 
/s/ Andrew W. Mathias
President and Director of SL Green, the sole general partner of the Operating Partnership
May 11, 2020
Andrew W. Mathias
 
 
 
/s/ Matthew J. DiLiberto
Chief Financial Officer of
SL Green, the sole general partner of
the Operating Partnership (Principal Financial and Accounting Officer)
May 11, 2020
Matthew J. DiLiberto
 
 
 
/s/ Stephen L. Green
Director of SL Green, the sole general
partner of the Operating Partnership
May 11, 2020
Stephen L. Green
 
 
 
/s/ John H. Alschuler, Jr.
Director of SL Green, the sole general
partner of the Operating Partnership
May 11, 2020
John H. Alschuler, Jr.
 
 
 
/s/ Edwin T. Burton, III
Director of SL Green, the sole general
partner of the Operating Partnership
May 11, 2020
Edwin T. Burton, III
 
 
 
/s/ John S. Levy
Director of SL Green, the sole general
partner of the Operating Partnership
May 11, 2020
John S. Levy
 
 
 
/s/ Craig M. Hatkoff
Director of SL Green, the sole general
partner of the Operating Partnership
May 11, 2020
Craig M. Hatkoff
 
 
 
/s/ Betsy S. Atkins
Director of SL Green, the sole general
partner of the Operating Partnership
May 11, 2020
Betsy S. Atkins
 
 
 
/s/ Lauren B. Dillard
Director of SL Green, the sole general
partner of the Operating Partnership
May 11, 2020
Lauren B. Dillard

73


SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
 
 
SL GREEN OPERATING PARTNERSHIP, L.P.
 
 
 
 
 
 
 
By:
 
/s/ Matthew J. DiLiberto
Dated: May 11, 2020
 
 
 
Matthew J. DiLiberto
 Chief Financial Officer


74
Exhibit


Exhibit 31.1

CERTIFICATION
I, Marc Holliday, certify that:

1.
I have reviewed this quarterly report on Form 10-Q of SL Green Realty Corp. (the “registrant”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2020
 
 
 
 
/s/ Marc Holliday
 
Name:
Marc Holliday
 
Title:
Chairman and Chief Executive Officer
 




Exhibit


Exhibit 31.2
 
CERTIFICATION
I, Matthew J. DiLiberto, certify that:
 
1.
I have reviewed this quarterly report on Form 10-Q of SL Green Realty Corp. (the “registrant”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: May 11, 2020
 
 
 
 
/s/ Matthew J. DiLiberto
 
Name:
Matthew J. DiLiberto
 
Title:
Chief Financial Officer
 



Exhibit


Exhibit 31.3

CERTIFICATION
I, Marc Holliday, certify that:

1.
I have reviewed this quarterly report on Form 10-Q of SL Green Operating Partnership, L.P. (the “registrant”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2020
 
 
 
 
/s/ Marc Holliday
 
Name:
Marc Holliday
 
Title:
Chairman and Chief Executive Officer
 
 
of SL Green Realty Corp., the
 
 
general partner of the registrant
 



Exhibit


Exhibit 31.4

CERTIFICATION
I, Matthew J. DiLiberto, certify that:

1.
I have reviewed this quarterly report on Form 10-Q of SL Green Operating Partnership, L.P. (the “registrant”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2020
 
 
 
 
/s/ Matthew J. DiLiberto
 
Name:
Matthew J. DiLiberto
 
Title:
Chief Financial Officer
 
 
of SL Green Realty Corp., the
 
 
general partner of the registrant
 



Exhibit


Exhibit 32.1
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Quarterly Report of SL Green Realty Corp. (the “Company”) on Form 10-Q as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc Holliday, Chairman and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
 
1.
The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ Marc Holliday
 
Name:
Marc Holliday
 
Title:
Chairman and Chief Executive Officer
 
 
 
May 11, 2020
 


Exhibit


Exhibit 32.2
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Quarterly Report of SL Green Realty Corp. (the “Company”) on Form 10-Q as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew J. DiLiberto, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
 
1.
The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ Matthew J. DiLiberto
 
Name:
Matthew J. DiLiberto
 
Title:
Chief Financial Officer
 
 
 
May 11, 2020
 


Exhibit


Exhibit 32.3

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SL Green Operating Partnership, L.P. (the “Operating Partnership”) on Form 10-Q as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc Holliday, Chairman and Chief Executive Officer of SL Green Realty Corp, the sole general partner of the Operating Partnership, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.
The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership.


 
/s/ Marc Holliday
 
Name:
Marc Holliday
 
Title:
Chairman and Chief Executive Officer
 
 
of SL Green Realty Corp., the
 
 
general partner of the Operating Partnership
 
 
 
May 11, 2020
 




Exhibit


Exhibit 32.4

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SL Green Operating Partnership, L.P. (the “Operating Partnership”) on Form 10-Q as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew J. DiLiberto, Chief Financial Officer of SL Green Realty Corp, the sole general partner of the Operating Partnership, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.
The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership.


 
/s/ Matthew J. DiLiberto
 
Name:
Matthew J. DiLiberto
 
Title:
Chief Financial Officer
 
 
of SL Green Realty Corp., the
 
 
general partner of the Operating Partnership
 
 
 
May 11, 2020
 



v3.20.1
Consolidated Statements of Capital (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Increase (Decrease) in Partner's Capital      
Acquisition of subsidiary interest from noncontrolling interest $ (1,536)    
DRSPP proceeds 166 $ 47  
Conversion of common units 84 446  
Reallocation of noncontrolling interests in the operating partnership 38,529 (28,932)  
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings 5,502 4,835  
Repurchases of common stock (219,576) (34,243)  
Contribution to consolidated joint venture interests 3,814 161  
Cash distributions to noncontrolling interests $ (492) $ (208)  
Common Stock      
Increase (Decrease) in Partner's Capital      
DRSPP proceeds (in shares) 2 1  
Conversion of common units    
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings (in shares) (33) (20)  
Repurchases of common stock (in shares) (2,637) (398)  
Repurchases of common stock $ (26) $ (4)  
Noncontrolling Interests      
Increase (Decrease) in Partner's Capital      
Acquisition of subsidiary interest from noncontrolling interest 1,587    
Contribution to consolidated joint venture interests 3,814 161  
Cash distributions to noncontrolling interests (492) (208)  
SL Green Operating Partnership      
Increase (Decrease) in Partner's Capital      
Beginning Balance 5,517,198 5,947,855 $ 5,947,855
Net income (loss) 118,246 47,767  
Acquisition of subsidiary interest from noncontrolling interest (1,536)    
Other comprehensive loss (52,383) (19,113)  
Preferred distributions (3,738) (3,738)  
DRSPP proceeds 166 47  
Conversion of common units 84 446  
Reallocation of noncontrolling interests in the operating partnership 38,529 (28,932)  
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings 5,502 4,835  
Repurchases of common stock (219,576) (34,243)  
Contribution to consolidated joint venture interests 3,814 161  
Cash distributions to noncontrolling interests (492) (208)  
Cash distributions declared (per common unit, none of which represented a return of capital for federal income tax purposes) (22,665) (70,554)  
Ending Balance 5,343,965 5,844,323 5,517,198
SL Green Operating Partnership | Common Stock | Partners' Interest      
Increase (Decrease) in Partner's Capital      
Beginning Balance $ 5,247,868 $ 5,664,481 $ 5,664,481
Beginning Balance (units) 79,202 83,684 83,684
Net income (loss) $ 118,539 $ 47,530  
Acquisition of subsidiary interest from noncontrolling interest (3,123)    
Preferred distributions $ (3,738) $ (3,738)  
DRSPP proceeds (in shares) 2 1  
DRSPP proceeds $ 166 $ 47  
Conversion of common units (in shares) 1 5  
Conversion of common units $ 84 $ 446  
Reallocation of noncontrolling interests in the operating partnership $ 38,529 $ (28,932)  
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings (in shares) (33) (20)  
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings $ 5,502 $ 4,835  
Repurchases of common stock (in shares) (2,637) (398)  
Repurchases of common stock $ (219,576) $ (34,243)  
Cash distributions declared (per common unit, none of which represented a return of capital for federal income tax purposes) (22,665) (70,554)  
Ending Balance $ 5,122,402 $ 5,579,872 $ 5,247,868
Ending Balance (units) 76,535 83,272 79,202
SL Green Operating Partnership | Accumulated Other Comprehensive Loss      
Increase (Decrease) in Partner's Capital      
Beginning Balance $ (28,485) $ 15,108 $ 15,108
Other comprehensive loss (52,383) (19,113)  
Ending Balance (80,868) (4,005) (28,485)
SL Green Operating Partnership | Noncontrolling Interests      
Increase (Decrease) in Partner's Capital      
Beginning Balance 75,883 46,334 46,334
Net income (loss) (293) 237  
Acquisition of subsidiary interest from noncontrolling interest 1,587    
Contribution to consolidated joint venture interests 3,814 161  
Cash distributions to noncontrolling interests (492) (208)  
Ending Balance 80,499 46,524 75,883
Series I Preferred Stock | SL Green Operating Partnership | Preferred Units      
Increase (Decrease) in Partner's Capital      
Beginning Balance 221,932 221,932 221,932
Ending Balance 221,932 $ 221,932 221,932
Cumulative Effect, Period Of Adoption, Adjusted Balance | SL Green Operating Partnership      
Increase (Decrease) in Partner's Capital      
Beginning Balance 5,478,014    
Ending Balance     5,478,014
Cumulative Effect, Period Of Adoption, Adjusted Balance | SL Green Operating Partnership | Common Stock | Partners' Interest      
Increase (Decrease) in Partner's Capital      
Beginning Balance 5,208,684    
Ending Balance     5,208,684
Cumulative Effect, Period Of Adoption, Adjusted Balance | SL Green Operating Partnership | Accumulated Other Comprehensive Loss      
Increase (Decrease) in Partner's Capital      
Beginning Balance (28,485)    
Ending Balance     (28,485)
Cumulative Effect, Period Of Adoption, Adjusted Balance | SL Green Operating Partnership | Noncontrolling Interests      
Increase (Decrease) in Partner's Capital      
Beginning Balance 75,883    
Ending Balance     75,883
Cumulative Effect, Period Of Adoption, Adjusted Balance | Series I Preferred Stock | SL Green Operating Partnership | Preferred Units      
Increase (Decrease) in Partner's Capital      
Beginning Balance 221,932    
Ending Balance     221,932
Accounting Standards Update 2016-13 | Cumulative Effect, Period Of Adoption, Adjustment | SL Green Operating Partnership      
Increase (Decrease) in Partner's Capital      
Beginning Balance (39,184)    
Ending Balance     (39,184)
Accounting Standards Update 2016-13 | Cumulative Effect, Period Of Adoption, Adjustment | SL Green Operating Partnership | Common Stock | Partners' Interest      
Increase (Decrease) in Partner's Capital      
Beginning Balance $ (39,184)    
Ending Balance     $ (39,184)
v3.20.1
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating expenses, paid to related parties $ 3,749 $ 2,793
SL Green Operating Partnership    
Operating expenses, paid to related parties $ 3,749 $ 2,793
v3.20.1
Cover Page - shares
3 Months Ended
Mar. 31, 2020
May 08, 2020
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Entity File Number 1-13199  
Entity Registrant Name SL GREEN REALTY CORP  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 13-3956775  
Entity Address, Address Line One 420 Lexington Avenue  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10170  
City Area Code 212  
Local Phone Number 594-2700  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   76,538,603
Entity Central Index Key 0001040971  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Preferred Stock    
Document Information [Line Items]    
Trading Symbol SLG.PRI  
Title of 12(b) Security 6.500% Series I Cumulative Redeemable Preferred Stock, $0.01 par value  
Security Exchange Name NYSE  
Common Stock    
Document Information [Line Items]    
Trading Symbol SLG  
Title of 12(b) Security Common Stock, $0.01 par value  
Security Exchange Name NYSE  
SL Green Operating Partnership    
Document Information [Line Items]    
Entity File Number 33-167793-02  
Entity Registrant Name SL GREEN OPERATING PARTNERSHIP, L.P.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 13-3960938  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,025,366
Entity Central Index Key 0001492869  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.20.1
Noncontrolling Interests on the Company's Consolidated Financial Statements
3 Months Ended
Mar. 31, 2020
Noncontrolling Interest [Abstract]  
Noncontrolling Interests on the Company's Consolidated Financial Statements 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 March 31, 2020 and December 31, 2019, the noncontrolling interest unit holders owned 5.14%, or 4,144,555 units, and 5.03%, or 4,195,875 units, of the Operating Partnership, respectively. As of March 31, 2020, 4,144,555 shares of our common stock were reserved for issuance upon the redemption of units of limited partnership interest of the Operating Partnership.
Noncontrolling interests in the Operating Partnership is recorded at the greater of its cost basis or fair market value based on the closing stock price of our common stock at the end of the reporting period.
Below is a summary of the activity relating to the noncontrolling interests in the Operating Partnership for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
$
409,862

 
$
387,805

Distributions
(1,284
)
 
(14,729
)
Issuance of common units
3,680

 
19,403

Redemption and conversion of common units
(18,150
)
 
(27,962
)
Net income
6,202

 
13,301

Accumulated other comprehensive loss allocation
(2,886
)
 
(2,276
)
Fair value adjustment
(38,529
)
 
34,320

Balance at end of period
$
358,895

 
$
409,862


Preferred Units of Limited Partnership Interest in the Operating Partnership
Below is a summary of the preferred units of limited partnership interest in the Operating Partnership as of March 31, 2020:
Issuance
 
Number of Units Authorized
 
Number of Units Issued
 
Annual Dividend Per Unit(1)
 
Liquidation Preference Per Unit(2)
 
Conversion Price Per Unit(3)
 
Date of Issuance
3.50% Series A (4)
 
109,161

 
109,161

 
$
35.0000

 
$
1,000.00

 
$

 
August 2015
7.00% Series F
 
60

 
60

 
$
70.0000

 
$
1,000.00

 
$
29.12

 
January 2007
4.50% Series G (5)
 
1,902,000

 
1,902,000

 
$
1.1250

 
$
25.00

 
$
88.50

 
January 2012
3.50% Series K
 
700,000

 
563,954

 
$
0.8750

 
$
25.00

 
$
134.67

 
August 2014
4.00% Series L
 
500,000

 
378,634

 
$
1.0000

 
$
25.00

 

 
August 2014
3.75% Series M
 
1,600,000

 
1,600,000

 
$
0.9375

 
$
25.00

 

 
February 2015
4.00% Series P
 
200,000

 
200,000

 
$
1.0000

 
$
25.00

 

 
July 2015
3.50% Series Q
 
268,000

 
268,000

 
$
0.8750

 
$
25.00

 
$
148.95

 
July 2015
3.50% Series R
 
400,000

 
400,000

 
$
0.8750

 
$
25.00

 
$
154.89

 
August 2015
4.00% Series S
 
1,077,280

 
1,077,280

 
$
1.0000

 
$
25.00

 

 
August 2015
2.75% Series T
 
230,000

 
230,000

 
$
0.6875

 
$
25.00

 
$
119.02

 
March 2016
4.50% Series U (6)
 
680,000

 
680,000

 
$
1.1250

 
$
25.00

 

 
March 2016
3.50% Series V
 
40,000

 
40,000

 
$
0.8750

 
$
25.00

 

 
May 2019
Series W (7)
 
1

 
1

 
(6 
) 
 
(6 
) 
 

 
January 2020
(1)
Dividends are cumulative, subject to certain provisions.
(2)
Units are redeemable at any time at par for cash at the option of the unitholder unless otherwise specified.
(3)
If applicable, units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) the amount shown in the table.
(4)
Issued through a consolidated subsidiary. The units are convertible on a one-for-one basis, into the Series B Preferred Units of limited partnership interest, or the Subsidiary Series B Preferred Units. The Subsidiary Series B Preferred Units can be converted at any time, at the option of the unitholder, into a number of common stock equal to 6.71348 shares of common stock for each Subsidiary Series B Preferred Unit. As of March 31, 2020, no Subsidiary Series B Preferred Units have been issued.
(5)
Common units of limited partnership interest in the Operating Partnership issued in a conversion may be redeemed in exchange for our common stock on a 1-to-1 basis. The Series G Preferred Units also provide the holder with the right to require the Operating Partnership to repurchase the Series G Preferred Units for cash before January 31, 2022.
(6)
The annual dividend is subject to reduction upon the occurrence of certain circumstances. The minimum annual dividend is $0.75 per unit.
(7)
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 three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
$
283,285

 
$
300,427

Issuance of preferred units

 
1,000

Redemption of preferred units
(19,392
)
 
(18,142
)
Accrued dividends on preferred units
2,126

 

Balance at end of period
$
266,019

 
$
283,285


v3.20.1
Accumulated Other Comprehensive Loss
3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Accumulated Other Comprehensive Loss Stockholders’ Equity of the Company
Common Stock
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of March 31, 2020, 76,535,433 shares of common stock and no shares of excess stock were issued and outstanding.
Share Repurchase Program
In August 2016, our Board of Directors approved a share repurchase program under which we can buy up to $1.0 billion of shares of our common stock. The Board of Directors has since authorized four 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, and fourth quarter of 2019 bringing the total program size to $3.0 billion.
At March 31, 2020, repurchases executed under the program were as follows:
Period
Shares repurchased
Average price paid per share
Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017
8,342,411
$101.64
8,342,411
Year ended 2018
9,744,911
$96.22
18,087,322
Year ended 2019
4,596,171
$83.62
22,683,493
First quarter 2020
2,637,099
$83.25
25,320,592

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 par for cash at our option. 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 2018, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three months ended March 31, 2020 and 2019, respectively (dollars in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Shares of common stock issued
1,777

 
540

Dividend reinvestments/stock purchases under the DRSPP
$
166

 
$
47


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.
SL Green's earnings per share for the three months ended March 31, 2020 and 2019 are computed as follows (in thousands):
 
Three Months Ended March 31,
Numerator
2020
 
2019
Basic Earnings:
 
 
 
Income attributable to SL Green common stockholders
$
114,801

 
$
43,792

Less: distributed earnings allocated to participating securities
(113
)
 
(124
)
Less: undistributed earnings allocated to participating securities
(448
)
 

Net income attributable to SL Green common stockholders (numerator for basic earnings per share)
$
114,240

 
$
43,668

Add back: dilutive effect of earnings allocated to participating securities
113

 
124

Add back: undistributed earnings allocated to participating securities
448

 

Add back: effect of dilutive securities (redemption of units to common shares)
6,202

 
2,278

Income attributable to SL Green common stockholders (numerator for diluted earnings per share)
$
121,003

 
$
46,070

 
Three Months Ended March 31,
Denominator
2020
 
2019
Basic Shares:
 
 
 
Weighted average common stock outstanding
77,864

 
83,313

Effect of Dilutive Securities:
 
 
 
Operating Partnership units redeemable for common shares
4,220

 
4,333

Stock-based compensation plans
483

 
164

Diluted weighted average common stock outstanding
82,567

 
87,810


The Company has excluded 1,204,736 and 1,211,943 common stock equivalents from the calculation of diluted shares outstanding for the three months ended March 31, 2020 and the three months ended March 31, 2019, respectively, as they were anti-dilutive.
Accumulated Other Comprehensive Loss
The following tables set forth the changes in accumulated other comprehensive loss by component as of March 31, 2020 (in thousands):
 
Net unrealized loss on derivative instruments (1)
 
SL Green’s share
of joint venture
net unrealized loss on derivative
instruments (2)
 
Net unrealized gain (loss) on marketable securities
 
Total
Balance at December 31, 2019
$
(22,780
)
 
$
(7,982
)
 
$
2,277

 
$
(28,485
)
Other comprehensive loss before reclassifications
(42,728
)
 
(6,709
)
 
(4,306
)
 
(53,743
)
Amounts reclassified from accumulated other comprehensive loss
687

 
673

 

 
1,360

Balance at March 31, 2020
$
(64,821
)
 
$
(14,018
)
 
$
(2,029
)
 
$
(80,868
)
(1)
Amount reclassified from accumulated other comprehensive loss is included in interest expense in the respective consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the deferred net (gains) losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized (loss) gain on derivative instrument, was $(0.4) million and $(0.7) million, respectively.
(2)
Amount reclassified from accumulated other comprehensive loss is included in equity in net loss from unconsolidated joint ventures in the respective consolidated statements of operations.
v3.20.1
Accumulated Other Comprehensive Loss (Tables)
3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Schedule of accumulated other comprehensive income (loss)
The following tables set forth the changes in accumulated other comprehensive loss by component as of March 31, 2020 (in thousands):
 
Net unrealized loss on derivative instruments (1)
 
SL Green’s share
of joint venture
net unrealized loss on derivative
instruments (2)
 
Net unrealized gain (loss) on marketable securities
 
Total
Balance at December 31, 2019
$
(22,780
)
 
$
(7,982
)
 
$
2,277

 
$
(28,485
)
Other comprehensive loss before reclassifications
(42,728
)
 
(6,709
)
 
(4,306
)
 
(53,743
)
Amounts reclassified from accumulated other comprehensive loss
687

 
673

 

 
1,360

Balance at March 31, 2020
$
(64,821
)
 
$
(14,018
)
 
$
(2,029
)
 
$
(80,868
)
(1)
Amount reclassified from accumulated other comprehensive loss is included in interest expense in the respective consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the deferred net (gains) losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized (loss) gain on derivative instrument, was $(0.4) million and $(0.7) million, respectively.
(2)
Amount reclassified from accumulated other comprehensive loss is included in equity in net loss from unconsolidated joint ventures in the respective consolidated statements of operations.
v3.20.1
Noncontrolling Interests on the Company's Consolidated Financial Statements (Tables)
3 Months Ended
Mar. 31, 2020
Noncontrolling Interest [Abstract]  
Schedule of Noncontrolling Interest
Below is a summary of the activity relating to the noncontrolling interests in the Operating Partnership for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
$
409,862

 
$
387,805

Distributions
(1,284
)
 
(14,729
)
Issuance of common units
3,680

 
19,403

Redemption and conversion of common units
(18,150
)
 
(27,962
)
Net income
6,202

 
13,301

Accumulated other comprehensive loss allocation
(2,886
)
 
(2,276
)
Fair value adjustment
(38,529
)
 
34,320

Balance at end of period
$
358,895

 
$
409,862


Schedule of Preferred Unit Activity
Below is a summary of the preferred units of limited partnership interest in the Operating Partnership as of March 31, 2020:
Issuance
 
Number of Units Authorized
 
Number of Units Issued
 
Annual Dividend Per Unit(1)
 
Liquidation Preference Per Unit(2)
 
Conversion Price Per Unit(3)
 
Date of Issuance
3.50% Series A (4)
 
109,161

 
109,161

 
$
35.0000

 
$
1,000.00

 
$

 
August 2015
7.00% Series F
 
60

 
60

 
$
70.0000

 
$
1,000.00

 
$
29.12

 
January 2007
4.50% Series G (5)
 
1,902,000

 
1,902,000

 
$
1.1250

 
$
25.00

 
$
88.50

 
January 2012
3.50% Series K
 
700,000

 
563,954

 
$
0.8750

 
$
25.00

 
$
134.67

 
August 2014
4.00% Series L
 
500,000

 
378,634

 
$
1.0000

 
$
25.00

 

 
August 2014
3.75% Series M
 
1,600,000

 
1,600,000

 
$
0.9375

 
$
25.00

 

 
February 2015
4.00% Series P
 
200,000

 
200,000

 
$
1.0000

 
$
25.00

 

 
July 2015
3.50% Series Q
 
268,000

 
268,000

 
$
0.8750

 
$
25.00

 
$
148.95

 
July 2015
3.50% Series R
 
400,000

 
400,000

 
$
0.8750

 
$
25.00

 
$
154.89

 
August 2015
4.00% Series S
 
1,077,280

 
1,077,280

 
$
1.0000

 
$
25.00

 

 
August 2015
2.75% Series T
 
230,000

 
230,000

 
$
0.6875

 
$
25.00

 
$
119.02

 
March 2016
4.50% Series U (6)
 
680,000

 
680,000

 
$
1.1250

 
$
25.00

 

 
March 2016
3.50% Series V
 
40,000

 
40,000

 
$
0.8750

 
$
25.00

 

 
May 2019
Series W (7)
 
1

 
1

 
(6 
) 
 
(6 
) 
 

 
January 2020
(1)
Dividends are cumulative, subject to certain provisions.
(2)
Units are redeemable at any time at par for cash at the option of the unitholder unless otherwise specified.
(3)
If applicable, units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) the amount shown in the table.
(4)
Issued through a consolidated subsidiary. The units are convertible on a one-for-one basis, into the Series B Preferred Units of limited partnership interest, or the Subsidiary Series B Preferred Units. The Subsidiary Series B Preferred Units can be converted at any time, at the option of the unitholder, into a number of common stock equal to 6.71348 shares of common stock for each Subsidiary Series B Preferred Unit. As of March 31, 2020, no Subsidiary Series B Preferred Units have been issued.
(5)
Common units of limited partnership interest in the Operating Partnership issued in a conversion may be redeemed in exchange for our common stock on a 1-to-1 basis. The Series G Preferred Units also provide the holder with the right to require the Operating Partnership to repurchase the Series G Preferred Units for cash before January 31, 2022.
(6)
The annual dividend is subject to reduction upon the occurrence of certain circumstances. The minimum annual dividend is $0.75 per unit.
(7)
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 three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
$
283,285

 
$
300,427

Issuance of preferred units

 
1,000

Redemption of preferred units
(19,392
)
 
(18,142
)
Accrued dividends on preferred units
2,126

 

Balance at end of period
$
266,019

 
$
283,285


v3.20.1
Significant Accounting Policies - Accounting Standards Update (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Retained earnings $ 1,099,369   $ 1,084,719
Cumulative Effect, Period Of Adoption, Adjustment | Accounting Standards Update 2016-13      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Retained earnings   $ 39,200  
v3.20.1
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) of the Company [Roll Forward]    
Beginning Balance $ 5,517,198  
Other comprehensive loss before reclassifications (53,743)  
Amounts reclassified from accumulated other comprehensive loss 1,360  
Ending Balance 5,343,965  
Deferred net losses from terminated hedges (400) $ (700)
Net unrealized (loss) gain on derivative instruments    
Accumulated Other Comprehensive Income (Loss) of the Company [Roll Forward]    
Beginning Balance (22,780)  
Other comprehensive loss before reclassifications (42,728)  
Amounts reclassified from accumulated other comprehensive loss 687  
Ending Balance (64,821)  
Net unrealized gain (loss) on marketable securities    
Accumulated Other Comprehensive Income (Loss) of the Company [Roll Forward]    
Beginning Balance 2,277  
Other comprehensive loss before reclassifications (4,306)  
Amounts reclassified from accumulated other comprehensive loss 0  
Ending Balance (2,029)  
Accumulated Other Comprehensive Loss    
Accumulated Other Comprehensive Income (Loss) of the Company [Roll Forward]    
Beginning Balance (28,485)  
Ending Balance (80,868)  
Joint venture | Net unrealized (loss) gain on derivative instruments    
Accumulated Other Comprehensive Income (Loss) of the Company [Roll Forward]    
Beginning Balance (7,982)  
Other comprehensive loss before reclassifications (6,709)  
Amounts reclassified from accumulated other comprehensive loss 673  
Ending Balance $ (14,018)  
v3.20.1
Commitments and Contingencies (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Lessee, Lease, Description [Line Items]      
Operating leases, minimum lease term 1 year    
Finance lease, cost $ 2,000 $ 1,100  
Interest on financing leases 1,663 804  
Finance lease, right-of-use asset, amortization 300 300  
Operating lease rent $ 7,367 $ 8,298  
Operating lease, weighted average discount rate, percent 8.01%    
Operating lease, weighted average remaining lease term 70 years    
Financing leases      
Remaining 2020 $ 5,812    
2021 34,885    
2022 5,881    
2023 5,927    
2024 5,999    
2025 6,266    
Thereafter 1,018,013    
Total minimum lease payments 1,082,783    
Amount representing interest (920,484)    
Lease liabilities 162,299   $ 44,448
Operating leases      
Remaining 2020 22,077    
2021 29,452    
2022 27,148    
2023 24,844    
2024 24,863    
2025 24,962    
Thereafter 618,326    
Total minimum lease payments 771,672    
Amount discounted using incremental borrowing rate (407,682)    
Lease liabilities 363,990   $ 381,671
Total minimum sublease rentals to be received $ 1,600,000    
711 Third Avenue      
Lessee, Lease, Description [Line Items]      
Ownership Interest 50.00%    
v3.20.1
Debt and Preferred Equity Investments - Debt and Preferred Equity Investments (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Carrying Value $ 1,783,336 $ 1,580,306
Senior Financing 6,129,560  
Total floating rate    
Debt Instrument [Line Items]    
Carrying Value 823,604  
Face Value 839,400  
Total fixed rate    
Debt Instrument [Line Items]    
Carrying Value 959,732  
Face Value 998,123  
Senior Mortgage Debt    
Debt Instrument [Line Items]    
Carrying Value 472,749  
Senior Financing 0  
Senior Mortgage Debt | Total floating rate    
Debt Instrument [Line Items]    
Carrying Value 372,547  
Face Value 374,002  
Senior Mortgage Debt | Total fixed rate    
Debt Instrument [Line Items]    
Carrying Value 100,202  
Face Value 101,250  
Junior Mortgage Debt    
Debt Instrument [Line Items]    
Carrying Value 83,004  
Senior Financing 438,138  
Junior Mortgage Debt | Total floating rate    
Debt Instrument [Line Items]    
Carrying Value 83,004  
Face Value 90,300  
Junior Mortgage Debt | Total fixed rate    
Debt Instrument [Line Items]    
Carrying Value 0  
Face Value 0  
Mezzanine Debt    
Debt Instrument [Line Items]    
Carrying Value 859,891  
Senior Financing 5,169,422  
Mezzanine Debt | Total floating rate    
Debt Instrument [Line Items]    
Carrying Value 368,053  
Face Value 375,098  
Mezzanine Debt | Total fixed rate    
Debt Instrument [Line Items]    
Carrying Value 491,838  
Face Value 509,920  
Preferred Equity    
Debt Instrument [Line Items]    
Carrying Value 367,692  
Senior Financing 522,000  
Preferred Equity | Total floating rate    
Debt Instrument [Line Items]    
Carrying Value 0  
Face Value 0  
Preferred Equity | Total fixed rate    
Debt Instrument [Line Items]    
Carrying Value 367,692  
Face Value $ 386,953  
Minimum | Senior Mortgage Debt | Total fixed rate    
Debt Instrument [Line Items]    
Interest rate 3.00%  
Minimum | Mezzanine Debt | Total fixed rate    
Debt Instrument [Line Items]    
Interest rate 2.90%  
Minimum | Preferred Equity | Total fixed rate    
Debt Instrument [Line Items]    
Interest rate 6.50%  
Maximum | Senior Mortgage Debt | Total fixed rate    
Debt Instrument [Line Items]    
Interest rate 6.00%  
Maximum | Mezzanine Debt | Total fixed rate    
Debt Instrument [Line Items]    
Interest rate 9.50%  
Maximum | Preferred Equity | Total fixed rate    
Debt Instrument [Line Items]    
Interest rate 11.00%  
LIBOR | Minimum | Senior Mortgage Debt | Total floating rate    
Debt Instrument [Line Items]    
Basis spread on variable rate 2.00%  
LIBOR | Minimum | Junior Mortgage Debt | Total floating rate    
Debt Instrument [Line Items]    
Basis spread on variable rate 6.00%  
LIBOR | Minimum | Mezzanine Debt | Total floating rate    
Debt Instrument [Line Items]    
Basis spread on variable rate 4.95%  
LIBOR | Maximum | Senior Mortgage Debt | Total floating rate    
Debt Instrument [Line Items]    
Basis spread on variable rate 5.50%  
LIBOR | Maximum | Junior Mortgage Debt | Total floating rate    
Debt Instrument [Line Items]    
Basis spread on variable rate 7.25%  
LIBOR | Maximum | Mezzanine Debt | Total floating rate    
Debt Instrument [Line Items]    
Basis spread on variable rate 15.29%  
v3.20.1
Debt and Preferred Equity Investments - Narrative (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
segment
Dec. 31, 2019
USD ($)
segment
Jan. 01, 2020
USD ($)
Dec. 31, 2018
USD ($)
Preferred equity investment        
Allowance for loan and lease losses, real estate $ 37,957,000 $ 1,750,000   $ 5,750,000
Number of portfolio segments of financial receivables (segment) | segment 1 1    
Additional amount of financing receivables included in other assets $ 120,700,000 $ 131,100,000    
Recorded investment, nonaccrual status 28,500,000      
Weighted average risk rating   1.4    
Provision for loan losses 2,800,000      
Financing Receivables, Equal to Greater than 90 Days Past Due        
Preferred equity investment        
Recorded investment, past due $ 0 $ 0    
Cumulative Effect, Period Of Adoption, Adjustment        
Preferred equity investment        
Allowance for loan and lease losses, real estate   $ 27,804,000   $ 0
Additional amount of financing receivables included in other assets     $ 11,400,000  
v3.20.1
Segment Information (Tables)
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Schedule of selected results of operations and selected asset information
Selected consolidated results of operations for the three months ended March 31, 2020 and 2019, and selected asset information as of March 31, 2020 and December 31, 2019, regarding our operating segments are as follows (in thousands):
 
 
Real Estate Segment
 
Debt and Preferred Equity Segment
 
Total Company
Total revenues
 
 
 
 
 
 
Three months ended:
 
 
 
 
 
 
March 31, 2020
 
$
275,770

 
$
38,533

 
$
314,303

March 31, 2019
 
254,224

 
50,031

 
304,255

Net income
 
 
 
 
 


Three months ended:
 
 
 
 
 


March 31, 2020
 
$
111,233

 
$
15,881

 
$
127,114

March 31, 2019
 
21,572

 
31,197

 
52,769

Total assets
 
 
 
 
 


As of:
 
 
 
 
 


March 31, 2020
 
$
11,345,239

 
$
1,875,368

 
$
13,220,607

December 31, 2019
 
11,063,155

 
1,703,165

 
12,766,320


v3.20.1
Significant Accounting Policies - Investments in Commercial Real Estate Properties (Details) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Investment in Commercial Real Estate Properties      
Rental revenue from amortization of acquired leases $ 1,200,000 $ 1,200,000  
Identified intangible assets (included in other assets):      
Gross amount 225,025,000   $ 255,198,000
Accumulated amortization (202,581,000)   (228,223,000)
Net 22,444,000   26,975,000
Identified intangible liabilities (included in deferred revenue):      
Gross amount 274,208,000   282,048,000
Accumulated amortization (246,464,000)   (249,514,000)
Net 27,744,000   32,534,000
Net intangible assets reclassified to assets held for sale 0   0
Net intangible liabilities reclassified to liabilities relates to assets held for sale $ 0   $ 0
Minimum | Above-market leases      
Investment in Commercial Real Estate Properties      
Estimated useful life of other intangible assets (in years) 1 year    
Minimum | Below-market leases      
Investment in Commercial Real Estate Properties      
Estimated useful life of other intangible assets (in years) 1 year    
Minimum | In-place leases      
Investment in Commercial Real Estate Properties      
Estimated useful life of other intangible assets (in years) 1 year    
Maximum | Above-market leases      
Investment in Commercial Real Estate Properties      
Estimated useful life of other intangible assets (in years) 14 years    
Maximum | Below-market leases      
Investment in Commercial Real Estate Properties      
Estimated useful life of other intangible assets (in years) 14 years    
Maximum | In-place leases      
Investment in Commercial Real Estate Properties      
Estimated useful life of other intangible assets (in years) 14 years    
Building | Minimum      
Investment in Commercial Real Estate Properties      
Estimated useful life (in years) 3 years    
Building | Maximum      
Investment in Commercial Real Estate Properties      
Estimated useful life (in years) 40 years    
v3.20.1
Share-based Compensation - Stock Options and Restricted Stock Activity (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Stock options    
Options Outstanding    
Balance at beginning of period (in shares) 1,037,068 1,137,017
Granted (in shares) 0 0
Exercised (in shares) 0 0
Lapsed or cancelled (in shares) (5,500) (99,949)
Balance at end of period (in shares) 1,031,568 1,037,068
Options exercisable at end of period (in shares) 1,029,568 914,929
Weighted Average Exercise Price    
Balance at beginning of year (in dollars per share) $ 102.36 $ 103.54
Granted (in dollars per share) 0 0
Exercised (in dollars per share) 0 0
Lapsed or cancelled (in dollars per share) 109.90 115.81
Balance at end of period (in dollars per share) 102.32 102.36
Options exercisable at end of period (in dollars per share) $ 102.32 $ 101.69
Restricted Stock Awards    
Options Outstanding    
Total fair value of options granted during the period $ 687,839 $ 11,131,181
Summary of restricted stock    
Balance at beginning of year (in shares) 3,566,466 3,452,016
Granted (in shares) 8,320 126,350
Cancelled (in shares) (13,267) (11,900)
Balance at end of period (in shares) 3,561,519 3,566,466
Vested during the period (in shares) 131,602 113,259
v3.20.1
Related Party Transactions (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended
Dec. 31, 2016
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Amounts due from/to related parties        
Due from joint ventures   $ 18,996   $ 9,352
Other   7,096   11,769
Related party receivables   26,092   $ 21,121
Alliance Building Services        
Related Party Transactions        
Profit participation from related party   900 $ 900  
Payments made for services   3,900 2,900  
Entity with Stephen L Green ownership interest        
Related Party Transactions        
Property management fees from related party   200 $ 100  
One Vanderbilt | Marc Holliday        
Related Party Transactions        
Due from related party   1,400    
One Vanderbilt | Andrew Mathias        
Related Party Transactions        
Due from related party   $ 1,000    
One Vanderbilt | Minimum | Marc Holliday        
Related Party Transactions        
Percentage of profits due to investors (as a percentage) 1.50%      
One Vanderbilt | Minimum | Andrew Mathias        
Related Party Transactions        
Percentage of profits due to investors (as a percentage) 1.00%      
One Vanderbilt | Maximum | Marc Holliday        
Related Party Transactions        
Percentage of profits due to investors (as a percentage) 1.80%      
One Vanderbilt | Maximum | Andrew Mathias        
Related Party Transactions        
Percentage of profits due to investors (as a percentage) 1.20%      
v3.20.1
Corporate Indebtedness - Additional Information (Details)
3 Months Ended
Mar. 31, 2020
USD ($)
extension
Dec. 31, 2019
USD ($)
Corporate Indebtedness    
Outstanding under line of credit facility $ 1,294,477,000 $ 234,013,000
Term Loan B, Maturity November 21, 2024 | Term loan    
Corporate Indebtedness    
Credit facility, maximum borrowing capacity $ 200,000,000.0  
Term Loan B, Maturity November 21, 2024 | LIBOR | Term loan    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 1.00%  
Term Loan B, Maturity November 21, 2024 | LIBOR | Minimum | Term loan    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 0.85%  
Term Loan B, Maturity November 21, 2024 | LIBOR | Maximum | Term loan    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 1.65%  
Revolving credit facility    
Corporate Indebtedness    
Facility fee (as a percent) 0.20%  
Outstanding under line of credit facility $ 1,300,000,000  
Revolving credit facility | Minimum    
Corporate Indebtedness    
Facility fee (as a percent) 0.125%  
Revolving credit facility | Maximum    
Corporate Indebtedness    
Facility fee (as a percent) 0.30%  
Term loan    
Corporate Indebtedness    
Credit facility, maximum borrowing capacity $ 1,500,000,000  
Term loan | Line of Credit    
Corporate Indebtedness    
Long-term debt, carrying value 1,500,000,000 1,500,000,000
2012 Credit Facility    
Corporate Indebtedness    
Letters of credit 11,800,000  
Ability to borrow under line of credit facility 200,000,000  
2012 Credit Facility | Line of Credit    
Corporate Indebtedness    
Long-term debt, carrying value 1,300,000,000 $ 200,000,000
Term Loan A, Maturity March 31, 2023 | Term loan    
Corporate Indebtedness    
Credit facility, maximum borrowing capacity $ 1,300,000,000  
Term Loan A, Maturity March 31, 2023 | LIBOR | Term loan    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 1.10%  
Term Loan A, Maturity March 31, 2023 | LIBOR | Minimum | Term loan    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 0.90%  
Term Loan A, Maturity March 31, 2023 | LIBOR | Maximum | Term loan    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 1.75%  
Revolving credit facility | Revolving Credit Facility, Maturity March 31, 2022 | Line of Credit    
Corporate Indebtedness    
Credit facility, maximum borrowing capacity $ 1,500,000,000  
Number of extensions | extension 2  
Term of extension 6 months  
Maximum borrowing capacity, optional expansion $ 4,500,000,000  
Revolving credit facility | Revolving Credit Facility, Maturity March 31, 2022 | LIBOR | Line of Credit    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 1.00%  
Revolving credit facility | Revolving Credit Facility, Maturity March 31, 2022 | LIBOR | Minimum | Line of Credit    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 0.825%  
Revolving credit facility | Revolving Credit Facility, Maturity March 31, 2022 | LIBOR | Maximum | Line of Credit    
Corporate Indebtedness    
Interest rate added to base rate (as a percent) 1.55%  
v3.20.1
Stockholders' Equity of the Company - Earnings per Share (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Basic Earnings:    
Income attributable to SL Green common stockholders $ 114,801 $ 43,792
Net Income attributable to common unitholders (numerator for basic earnings per unit) 114,240 43,668
Effect of Dilutive Securities:    
Add back: dilutive effect of earnings allocated to participating securities 113 124
Add back: undistributed earnings allocated to participating securities 448 0
Redemption of units to common shares 6,202 2,278
Diluted Earnings:    
Income attributable to SL Green common stockholders $ 121,003 $ 46,070
Basic Shares:    
Weighted average common shares outstanding (shares) 77,864,000 83,313,000
Effect of Dilutive Securities:    
Operating Partnership units redeemable for common shares (shares) 4,220,000 4,333,000
Stock-based compensation plans (shares) 483,000 164,000
Diluted weighted average common stock outstanding (shares) 82,567,000 87,810,000
Common stock shares excluded from the diluted shares outstanding (shares) 1,204,736 1,211,943
v3.20.1
Noncontrolling Interests on the Company's Consolidated Financial Statements - Common Unit Activity (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Rollforward Analysis of Preferred Unit Activity    
Redemption of preferred units $ (1,536)  
SL Green Operating Partnership    
Rollforward Analysis of Preferred Unit Activity    
Redemption of preferred units (1,536)  
SL Green Operating Partnership | Preferred Units    
Rollforward Analysis of Preferred Unit Activity    
Balance at beginning of period 283,285 $ 300,427
Issuance of preferred units 0 1,000
Redemption of preferred units (19,392) (18,142)
Accrued dividends on preferred units 2,126 0
Balance at end of period $ 266,019 $ 283,285
v3.20.1
Investments in Unconsolidated Joint Ventures - Mortgages and Other Loans Payable (Details)
3 Months Ended
Mar. 31, 2020
USD ($)
extension
Dec. 31, 2019
USD ($)
Aug. 31, 2019
USD ($)
Debt Instrument [Line Items]      
Total fixed rate debt $ 1,129,910,000 $ 1,383,449,000  
Total floating rate debt 880,306,000 828,434,000  
Joint venture      
Debt Instrument [Line Items]      
Total fixed rate debt 5,346,726,000 5,351,721,000  
Total floating rate debt 3,855,374,000 3,691,686,000  
Total fixed rate and floating rate debt 9,202,100,000 9,043,407,000  
Deferred financing costs, net (85,928,000) (91,538,000)  
Total joint venture mortgages and other loans payable, net $ 9,116,172,000 8,951,869,000  
Joint venture | 717 Fifth Avenue      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 10.92%    
Joint venture | 717 Fifth Avenue | Mortgage loan      
Debt Instrument [Line Items]      
Interest rate, fixed rate debt (as a percent) 4.45%    
Total fixed rate debt $ 300,000,000 300,000,000  
Joint venture | 717 Fifth Avenue | Mezzanine loans      
Debt Instrument [Line Items]      
Interest rate, fixed rate debt (as a percent) 5.50%    
Total fixed rate debt $ 355,328,000 355,328,000  
Joint venture | 650 Fifth Avenue      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 50.00%    
Joint venture | 650 Fifth Avenue | Mortgage loan      
Debt Instrument [Line Items]      
Interest rate, fixed rate debt (as a percent) 4.46%    
Total fixed rate debt $ 210,000,000 210,000,000  
Joint venture | 650 Fifth Avenue | Mezzanine loans      
Debt Instrument [Line Items]      
Interest rate, fixed rate debt (as a percent) 5.45%    
Total fixed rate debt $ 65,000,000 65,000,000  
Joint venture | 21 East 66th Street      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 32.28%    
Interest rate, fixed rate debt (as a percent) 3.60%    
Interest rate, floating rate debt (as a percent) 2.75%    
Total fixed rate debt $ 12,000,000 12,000,000  
Total floating rate debt $ 708,000 712,000  
Joint venture | 919 Third Avenue      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 51.00%    
Interest rate, fixed rate debt (as a percent) 5.12%    
Total fixed rate debt $ 500,000,000 500,000,000  
Joint venture | 1515 Broadway      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 56.87%    
Interest rate, fixed rate debt (as a percent) 3.93%    
Total fixed rate debt $ 834,084,000 838,546,000  
Joint venture | 11 Madison Avenue      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 60.00%    
Interest rate, fixed rate debt (as a percent) 3.84%    
Total fixed rate debt $ 1,400,000,000 1,400,000,000  
Joint venture | 800 Third Avenue      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 60.52%    
Interest rate, fixed rate debt (as a percent) 3.37%    
Total fixed rate debt $ 177,000,000 177,000,000  
Joint venture | East 400 Street 57      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 41.00%    
Interest rate, fixed rate debt (as a percent) 3.00%    
Total fixed rate debt $ 97,202,000 97,735,000  
Joint venture | Worldwide Plaza      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 24.35%    
Interest rate, fixed rate debt (as a percent) 3.98%    
Total fixed rate debt $ 1,200,000,000 1,200,000,000  
Joint venture | Stonehenge Portfolio      
Debt Instrument [Line Items]      
Interest rate, fixed rate debt (as a percent) 3.50%    
Total fixed rate debt $ 196,112,000 196,112,000  
Joint venture | 280 Park Avenue      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 50.00%    
Interest rate, floating rate debt (as a percent) 1.73%    
Total floating rate debt $ 1,200,000,000 1,200,000,000  
Joint venture | 1552 Broadway      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 50.00%    
Interest rate, floating rate debt (as a percent) 2.65%    
Total floating rate debt $ 195,000,000 195,000,000  
Joint venture | 121 Greene Street      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 50.00%    
Interest rate, floating rate debt (as a percent) 1.50%    
Total floating rate debt $ 15,000,000 15,000,000  
Joint venture | 11 West 34th Street      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 30.00%    
Interest rate, floating rate debt (as a percent) 1.45%    
Total floating rate debt $ 23,000,000 23,000,000  
Joint venture | 100 Park Avenue      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 49.90%    
Interest rate, floating rate debt (as a percent) 1.75%    
Total floating rate debt $ 356,027,000 356,972,000  
Joint venture | One Vanderbilt      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 71.01%    
Interest rate, floating rate debt (as a percent) 2.50%    
Total floating rate debt $ 838,936,000 732,928,000  
Joint venture | One Vanderbilt | Construction Loans      
Debt Instrument [Line Items]      
Maximum facility capacity $ 1,750,000,000    
Term (in Years) 5 years    
Number of extension options | extension 2    
Period of extension options 1 year    
Joint venture | 2 Herald Square      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 51.00%    
Interest rate, floating rate debt (as a percent) 1.55%    
Total floating rate debt $ 198,629,000 190,000,000  
Joint venture | 55 West 46th Street      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 25.00%    
Interest rate, floating rate debt (as a percent) 1.25%    
Total floating rate debt $ 192,524,000 192,524,000  
Joint venture | 55 West 46th Street | Mortgage loan      
Debt Instrument [Line Items]      
Committed amount     $ 198,000,000.0
Unfunded Amount $ 5,500,000    
Joint venture | 115 Spring Street      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 51.00%    
Interest rate, floating rate debt (as a percent) 3.40%    
Total floating rate debt $ 65,550,000 65,550,000  
Joint venture | 10 East 53rd Street      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 55.00%    
Interest rate, floating rate debt (as a percent) 1.35%    
Total floating rate debt $ 220,000,000 170,000,000  
Joint venture | 605 West 42nd Street      
Debt Instrument [Line Items]      
Economic Interest (as a percent) 20.00%    
Interest rate, floating rate debt (as a percent) 1.44%    
Total floating rate debt $ 550,000,000 $ 550,000,000  
Secured Debt, Initial Maturity August 2019 | Joint venture | Stonehenge Portfolio      
Debt Instrument [Line Items]      
Total fixed rate debt 132,600,000    
Secured Debt, Initial Maturity June 2024 | Joint venture | Stonehenge Portfolio      
Debt Instrument [Line Items]      
Total fixed rate debt $ 63,500,000    
v3.20.1
Consolidated Statements of Capital (Parenthetical) - $ / shares
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash distribution declared, per common share (in dollars per share) $ 0.295 $ 0.85
SL Green Operating Partnership    
Cash distribution declared, per common share (in dollars per share) $ 0.295 $ 0.85
v3.20.1
Property Acquisitions
3 Months Ended
Mar. 31, 2020
Business Combinations [Abstract]  
Property Acquisitions Property Acquisitions
The following table summarizes the properties acquired during the three months ended March 31, 2020:
Property
 
Acquisition Date
 
Property Type
 
Approximate Square Feet
 
Gross Asset Valuation
(in millions)
762 Madison Avenue (1)
 
January 2020
 
Fee Interest
 
6,109
 
$
29.3

707 Eleventh Avenue
 
January 2020
 
Fee Interest
 
159,720
 
90.0

126-132 Nassau Street (2)
 
January 2020
 
Leasehold Interest
 
98,412
 

(1)
In January 2020, the Company acquired from our joint venture partner the remaining 10% interest in this property that the Company did not already own.
(2)
In January 2020, the Company entered into a 99-year ground lease of 126-132 Nassau Street. This lease is classified as a financing lease in our consolidated balance sheets.
v3.20.1
Deferred Costs
3 Months Ended
Mar. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Deferred Costs Deferred Costs
Deferred costs at March 31, 2020 and December 31, 2019 consisted of the following (in thousands):
 
March 31, 2020
 
December 31, 2019
Deferred leasing costs
$
506,314

 
$
466,136

Less: accumulated amortization
(274,040
)
 
(260,853
)
Deferred costs, net
$
232,274

 
$
205,283


v3.20.1
Debt and Preferred Equity Investments (Tables)
3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Schedule of debt and preferred equity book balance roll forward
Below is a summary of the activity in our debt and preferred equity investments for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of year (1)
$
1,580,306

 
$
2,099,393

Debt investment originations/accretion (2)
246,075

 
652,866

Preferred equity investment originations/accretion (2)
154,710

 
14,736

Redemptions/sales/syndications/amortization (3)
(161,548
)
 
(1,190,689
)
Net change in loan loss reserves
(36,207
)
 
4,000

Balance at end of period (1)
$
1,783,336

 
$
1,580,306

(1)
Net of unamortized fees, discounts, and premiums.
(2)
Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)
Certain participations in debt investments that were sold or syndicated, but did not meet the conditions for sale accounting, are included in other assets and other liabilities on the consolidated balance sheets.
Schedule of Debt
Below is a summary of our debt and preferred equity investments as of March 31, 2020 (dollars in thousands):
 
Floating Rate
 
Fixed Rate
 
Total Carrying Value
Senior Financing
Maturity
Type
Carrying Value
Face Value
Interest Rate
 
Carrying Value
Face Value
Interest Rate
 
Senior Mortgage Debt
$
372,547

$374,002
L + 2.00 - 5.50%
 
$
100,202

$101,250
3.00 - 6.00%
 
$
472,749

$

2020 - 2022
Junior Mortgage Debt
83,004

90,300
L + 6.00 - 7.25%
 

 
$
83,004

438,138

2020 - 2023
Mezzanine Debt
368,053

375,098
L + 4.95 - 15.29%
 
491,838

509,920
2.90 - 9.50%
 
$
859,891

5,169,422

2020 - 2029
Preferred Equity

 
367,692

386,953
6.50 - 11.00%
 
$
367,692

522,000

2020 -2027
Balance at end of period
$
823,604

$
839,400

 
$
959,732

$
998,123

 
$
1,783,336

$
6,129,560


Allowance for Credit Losses on Financing Receivables
The following table is a rollforward of our total allowance for loan losses for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of year
$
1,750

 
$
5,750

Cumulative adjustment upon adoption of ASC 326
27,804

 

Current period provision for loan loss
8,403

 

Writeoffs charged against the allowance

 
(4,000
)
Balance at end of period
$
37,957

 
$
1,750


Summary of debt investments
As of March 31, 2020 and December 31, 2019, we held the following debt investments with an aggregate weighted average current yield of 7.87% at March 31, 2020 (dollars in thousands):
Loan Type
 
March 31, 2020
Future Funding
Obligations
 
March 31, 2020 Senior
Financing
 
March 31,
2020
Amortized Cost
(1)
 
December 31, 2019
Amortized Cost
(1)
 
Maturity
Date
(2)
Fixed Rate Investments:
 
 
 
 
 
 
 
 
 
 
Mortgage/Mezzanine Loan
 
$

 
$
63,908

 
$
55,798

 
$
55,573

 
October 2020
Mezzanine Loan
 
10,000

 

 
99,110

 

 
January 2021
Mezzanine Loan
 

 
15,000

 
3,500

 
3,500

 
September 2021
Mezzanine Loan
 

 
147,000

 
24,957

 
24,952

 
April 2022
Mezzanine Loan
 

 
280,000

 
39,296

 
38,734

 
August 2022
Mezzanine Loan
 

 
330,204

 
220,420

 
215,737

 
June 2023
Mezzanine Loan
 

 
83,369

 
12,716

 
12,714

 
November 2023
Mezzanine Loan
 

 
180,000

 
30,000

 
30,000

 
December 2023
Mezzanine Loan(3a)(4)
 

 
115,000

 
12,952

 
12,950

 
June 2024
Mezzanine Loan
 

 
95,000

 
30,000

 
30,000

 
January 2025
Mezzanine Loan
 

 
1,712,750

 
55,250

 
55,250

 
June 2027
Mezzanine Loan
 

 
85,000

 
20,000

 
20,000

 
December 2029
Total fixed rate
 
$
10,000

 
$
3,107,231

 
$
603,999

 
$
499,410

 
 
Floating Rate Investments:
 
 
 
 
 
 
 
 
 
 
Mortgage/Mezzanine Loan(4)
 

 

 
70,000

 
69,839

 
March 2020
Mortgage/Mezzanine Loan(4)
 
1,618

 
29,053

 
71,964

 
82,696

 
April 2020
Junior Mortgage(4)
 

 
40,000

 
20,000

 
20,000

 
April 2020
Mortgage/Mezzanine Loan
 

 

 
19,983

 
19,971

 
August 2020
Mortgage Loan
 
32,972

 

 
118,378

 
106,473

 
September 2020
Mezzanine Loan
 
17,376

 
436,763

 
53,329

 
51,387

 
December 2021
Mortgage/Mezzanine Loan(3b)
 
9,429

 

 
96,880

 
96,570

 
April 2021
Mezzanine Loan
 

 
275,000

 
49,845

 
49,809

 
April 2021
Junior Mortgage Participation/Mezzanine Loan
 

 
60,000

 
15,706

 
15,698

 
July 2021
Mezzanine Loan
 
11,459

 
156,759

 
42,985

 
41,395

 
July 2021
Mezzanine Loan
 
8,427

 
49,616

 
20,595

 
15,743

 
July 2021
Mezzanine Loan(3c)
 

 
1,115,000

 
123,419

 
222,775

 
March 2022
Mortgage/Mezzanine Loan(5)
 
7,795

 

 
59,597

 
35,386

 
May 2022
Mezzanine Loan
 
44,000

 

 
13,941

 
13,918

 
December 2022
Mortgage Loan
 
41,700

 
338,138

 
57,349

 

 
February 2023
Total floating rate
 
$
174,776

 
$
2,500,329

 
$
833,971

 
$
841,660

 
 
Allowance for loan loss
 
$

 
$

 
$
(22,326
)
 
$

 
 
Total
 
$
184,776

 
$
5,607,560

 
$
1,415,644

 
$
1,341,070

 
 
(1)
Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2)
Represents contractual maturity, excluding any unexercised extension options.
(3)
Carrying value is net of the following amounts that were sold or syndicated, which are included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $12.0 million, (b) $96.4 million and (c) $0.4 million.
(4)
This loan is in default as of the date of this filing. The Company is in discussions with the borrower.
(5)
The original loan was repaid in February 2020 and a new loan was originated to the new owners of the underlying asset.
Summary of preferred equity investments
As of March 31, 2020 and December 31, 2019, we held the following preferred equity investments with an aggregate weighted average current yield of 9.87% at March 31, 2020 (dollars in thousands):
Type
 
March 31, 2020
Future Funding
Obligations
 
March 31, 2020 Senior
Financing
 
March 31,
2020
Amortized Cost
(1)
 
December 31, 2019
Amortized Cost
(1)
 
Mandatory Redemption (2)
Preferred Equity
 
$

 
$
272,000

 
$
133,050

 
$
142,921

 
April 2021
Preferred Equity
 

 
1,712,750

 
150,273

 
98,065

 
June 2022
Preferred Equity
 

 
250,000

 
100,000

 

 
February 2027
Total Preferred Equity
 
$

 
$
2,234,750

 
$
383,323

 
$
240,986

 
 
Allowance for loan loss
 
$

 
$

 
$
(15,631
)
 
$
(1,750
)
 
 
Total
 
$

 
$
2,234,750

 
$
367,692

 
$
239,236

 
 
(1)
Carrying value is net of deferred origination fees.
(2)
Represents contractual maturity, excluding any unexercised extension options.
v3.20.1
Organization and Basis of Presentation (Tables)
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of commercial office properties
As of March 31, 2020, 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 Properties

Approximate Square Feet (unaudited)
 
Number of Properties
 
Approximate Square Feet (unaudited)
 
Number of Properties
 
Approximate Square Feet (unaudited)
 
Weighted Average Occupancy(1) (unaudited)
Commercial:
 



 

 

 

 

 

Manhattan
 
Office
 
18


10,647,191

 
10

 
11,216,183

 
28

 
21,863,374

 
93.7
%

 
Retail
 
4

 
44,189

 
8

 
289,050

 
12

 
333,239

 
98.0
%

 
Development/Redevelopment
 
11

 
3,028,211

 
1

 
1,657,198

 
12

 
4,685,409

 
N/A


 
Fee Interest
 

 

 
1

 

 
1

 

 
%

 

 
33

 
13,719,591

 
20

 
13,162,431

 
53

 
26,882,022

 
93.8
%
Suburban
 
Office
 
8

 
1,044,800

 

 

 
8

 
1,044,800

 
85.5
%

 
Retail
 
1

 
52,000

 

 

 
1

 
52,000

 
100.0
%

 

 
9

 
1,096,800

 

 

 
9

 
1,096,800

 
86.2
%
Total commercial properties
 
42

 
14,816,391

 
20

 
13,162,431

 
62

 
27,978,822

 
93.4
%
Residential:
 

 

 

 

 

 

 

 

Manhattan
 
Residential
 
2

 
222,250

 
8

 
1,663,774

 
10

 
1,886,024

 
96.7
%
Total residential properties
 
2


222,250

 
8

 
1,663,774

 
10

 
1,886,024

 
96.7
%
Total portfolio
 
44


15,038,641

 
28

 
14,826,205

 
72

 
29,864,846

 
93.6
%
   
(1)
The weighted average occupancy for commercial properties represents the total occupied square footage divided by the total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by the total available units.
v3.20.1
Organization and Basis of Presentation - Additional Information (Details)
3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Service Corporation    
Organization    
Percentage of ownership in SL Green Management LLC owned by operating partnership (percent) 95.00%  
Operating Partnership | SL Green Operating Partnership    
Organization    
Noncontrolling interest in the operating partnership (as a percent) 5.14% 5.03%
SL Green Management | SL Green Management LLC    
Organization    
Percentage of ownership in SL Green Management LLC owned by operating partnership (percent) 100.00%  
v3.20.1
Significant Accounting Policies - Investment in Marketable Securities (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Investment in Marketable Securities    
Marketable securities $ 25,353,000 $ 29,887,000
Equity marketable securities 25,353,000 29,887,000
Fair Value    
Investment in Marketable Securities    
Marketable securities 25,353,000 29,887,000
Equity marketable securities    
Investment in Marketable Securities    
Equity marketable securities 0 0
Commercial mortgage-backed securities    
Investment in Marketable Securities    
Marketable securities 25,353,000 29,887,000
Cost basis of commercial mortgage-backed securities $ 27,500,000 $ 27,500,000
v3.20.1
Mortgages and Other Loans Payable (Details)
1 Months Ended 3 Months Ended
Aug. 31, 2019
extension
Jun. 30, 2019
Jun. 30, 2018
Mar. 31, 2020
USD ($)
extension
Jan. 31, 2020
Dec. 31, 2019
USD ($)
Apr. 30, 2018
USD ($)
Debt Instrument [Line Items]              
Total fixed rate debt       $ 1,129,910,000   $ 1,383,449,000  
Total floating rate debt       880,306,000   828,434,000  
Total mortgages and other loans payable       2,010,216,000   2,211,883,000  
Deferred financing costs, net of amortization       (23,143,000)   (28,630,000)  
Total mortgages and other loans payable, net       1,987,073,000   2,183,253,000  
Book value of collateral       3,000,000,000.0   3,300,000,000  
Outstanding under line of credit facility       1,294,477,000   234,013,000  
FHLB Facility June 2020              
Debt Instrument [Line Items]              
Total floating rate debt       $ 14,500,000   14,500,000  
FHLB Facility June 2020 | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       0.17%      
2017 Master Repurchase Agreement              
Debt Instrument [Line Items]              
Total floating rate debt       $ 137,473,000   152,684,000  
Maximum facility capacity       300,000,000.0     $ 400,000,000.0
Number of extension options | extension 2            
Extension option exercised, term 1 year 1 year 1 year        
Outstanding under line of credit facility       $ 137,300,000      
2017 Master Repurchase Agreement | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       2.09%      
FHLB Facility July 2020              
Debt Instrument [Line Items]              
Total floating rate debt       $ 10,000,000   0  
FHLB Facility July 2020 | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       0.17%      
FHLB Facility August 2020              
Debt Instrument [Line Items]              
Total floating rate debt       $ 15,000,000   0  
FHLB Facility August 2020 | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       0.26%      
FHLB Facility January 2021              
Debt Instrument [Line Items]              
Total floating rate debt       $ 35,000,000   0  
FHLB Facility January 2021 | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       0.18%      
FHLB Facility January 2020              
Debt Instrument [Line Items]              
Total floating rate debt       $ 0   10,000,000  
FHLB Facility, February 2020              
Debt Instrument [Line Items]              
Total floating rate debt       0   15,000,000  
100 Church Street              
Debt Instrument [Line Items]              
Total fixed rate debt       $ 208,197,000   209,296,000  
100 Church Street | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, fixed rate debt (as a percent)       4.68%      
420 Lexington Avenue              
Debt Instrument [Line Items]              
Total fixed rate debt       $ 297,885,000   299,165,000  
420 Lexington Avenue | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, fixed rate debt (as a percent)       3.99%      
400 East 58th Street              
Debt Instrument [Line Items]              
Total fixed rate debt       $ 38,881,000   39,094,000  
400 East 58th Street | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, fixed rate debt (as a percent)       3.00%      
Term (in Years)       5 years      
Landmark Square              
Debt Instrument [Line Items]              
Total fixed rate debt       $ 100,000,000   100,000,000  
Landmark Square | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, fixed rate debt (as a percent)       4.90%      
485 Lexington Avenue              
Debt Instrument [Line Items]              
Total fixed rate debt       $ 450,000,000   450,000,000  
485 Lexington Avenue | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, fixed rate debt (as a percent)       4.25%      
1080 Amsterdam Avenue              
Debt Instrument [Line Items]              
Total fixed rate debt       $ 34,947,000   35,123,000  
Total fixed rate debt       34,000,000.0      
Subordinate loan       $ 900,000      
1080 Amsterdam Avenue | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, fixed rate debt (as a percent)       3.59%      
Term (in Years)       5 years      
1080 Amsterdam Avenue | Mortgage loan | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, fixed rate debt (as a percent)       3.50%      
1080 Amsterdam Avenue | Subordinate loan | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, fixed rate debt (as a percent)       7.00%      
762 Madison Avenue              
Debt Instrument [Line Items]              
Total fixed rate debt       $ 0   771,000  
315 West 33rd Street              
Debt Instrument [Line Items]              
Total fixed rate debt       0   250,000,000  
133 Greene Street              
Debt Instrument [Line Items]              
Total floating rate debt       $ 15,523,000   15,523,000  
133 Greene Street | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       2.00%      
106 Spring Street              
Debt Instrument [Line Items]              
Total floating rate debt       $ 38,025,000   38,025,000  
106 Spring Street | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       2.50%      
609 Fifth Avenue              
Debt Instrument [Line Items]              
Total floating rate debt       $ 55,416,000   53,773,000  
609 Fifth Avenue | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       2.40%      
185 Broadway              
Debt Instrument [Line Items]              
Total floating rate debt       $ 130,791,000   120,110,000  
185 Broadway | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       2.85%      
712 Madison Avenue              
Debt Instrument [Line Items]              
Total floating rate debt       $ 28,000,000   28,000,000  
712 Madison Avenue | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       1.85%      
410 Tenth Avenue              
Debt Instrument [Line Items]              
Total floating rate debt       $ 350,578,000   330,819,000  
410 Tenth Avenue | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       2.23%      
719 Seventh Avenue              
Debt Instrument [Line Items]              
Total floating rate debt       $ 50,000,000   $ 50,000,000  
719 Seventh Avenue | Weighted Average              
Debt Instrument [Line Items]              
Interest rate, floating rate debt (as a percent)       1.20%      
Construction Loans | 185 Broadway              
Debt Instrument [Line Items]              
Term (in Years)       3 years      
Maximum facility capacity       $ 225,000,000.0      
Number of extension options | extension       2      
Period of extension options       1 year      
Construction Loans | 410 Tenth Avenue              
Debt Instrument [Line Items]              
Term (in Years)       3 years      
Maximum facility capacity       $ 465,000,000.0      
Number of extension options | extension       2      
Period of extension options       1 year      
LIBOR Plus 19 Basis Points | Ticonderoga Insurance Company              
Debt Instrument [Line Items]              
FHLB advances       $ 74,500,000      
LIBOR Plus 19 Basis Points | Ticonderoga Insurance Company | LIBOR              
Debt Instrument [Line Items]              
Interest rate added to base rate (as a percent)       0.19%      
762 Madison Avenue              
Debt Instrument [Line Items]              
Interest acquired         10.00%    
v3.20.1
Stockholders' Equity of the Company - Schedule of Common Stock Issued and Proceeds Received Dividend Reinvestments (Details) - Dividend Reinvestment and Stock Purchase Plan (DRIP) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Stockholders' Equity    
Issuance of common stock (in shares) 1,777 540
Dividend reinvestments/stock purchases under the DRSPP $ 166 $ 47
v3.20.1
Noncontrolling Interests on the Company's Consolidated Financial Statements - Additional Information (Details)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
shares
$ / shares
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
shares
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Redemption and conversion of common units | $ $ (1,536)    
Net income | $ 6,202 $ 2,278  
Accumulated other comprehensive loss allocation | $ (2,886) (1,003)  
Partnership Interest      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Balance at beginning of period | $ 409,862 387,805 $ 387,805
Distributions | $ (1,284)   (14,729)
Issuance of common units | $ 3,680   19,403
Redemption and conversion of common units | $ (18,150)   (27,962)
Net income | $ 6,202   13,301
Accumulated other comprehensive loss allocation | $ (2,886)   (2,276)
Fair value adjustment | $ (38,529)   34,320
Balance at end of period | $ $ 358,895   $ 409,862
SL Green Operating Partnership      
Organization      
Number of units of operating partnership owned by the noncontrolling interest unit holders (shares) | shares 4,144,555   4,195,875
Shares of common stock reserved for issuance upon redemption of units of limited partnership interest in operating partnership (shares) | shares 4,144,555    
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Redemption and conversion of common units | $ $ (1,536)    
Accumulated other comprehensive loss allocation | $ $ (2,886) $ (1,003)  
SL Green Operating Partnership | 3.50% Series A      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 3.50%    
Preferred units, shares authorized (in shares) | shares 109,161    
Number of preferred units issued (in shares) | shares 109,161    
Annual dividends on preferred units (in dollars per share) $ 35.0000    
Liquidation preference of preferred units (in dollars per share) 1,000.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 0    
Number of company common stock issued on conversion of Series B preferred units 6.71348    
SL Green Operating Partnership | 3.50% Series A | Minimum      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 75.00%    
SL Green Operating Partnership | 7.00% Series F      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 7.00%    
Preferred units, shares authorized (in shares) | shares 60    
Number of preferred units issued (in shares) | shares 60    
Annual dividends on preferred units (in dollars per share) $ 70.0000    
Liquidation preference of preferred units (in dollars per share) 1,000.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 29.12    
SL Green Operating Partnership | 4.50% Series G      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 4.50%    
Preferred units, shares authorized (in shares) | shares 1,902,000    
Number of preferred units issued (in shares) | shares 1,902,000    
Annual dividends on preferred units (in dollars per share) $ 1.1250    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 88.50    
Number of company common stock issue on redemption of operation partnership common units 1    
SL Green Operating Partnership | 3.50% Series K      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 3.50%    
Preferred units, shares authorized (in shares) | shares 700,000    
Number of preferred units issued (in shares) | shares 563,954    
Annual dividends on preferred units (in dollars per share) $ 0.8750    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 134.67    
SL Green Operating Partnership | 4.00% Series L      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 4.00%    
Preferred units, shares authorized (in shares) | shares 500,000    
Number of preferred units issued (in shares) | shares 378,634    
Annual dividends on preferred units (in dollars per share) $ 1.0000    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 0    
SL Green Operating Partnership | 3.75% Series M      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 3.75%    
Preferred units, shares authorized (in shares) | shares 1,600,000    
Number of preferred units issued (in shares) | shares 1,600,000    
Annual dividends on preferred units (in dollars per share) $ 0.9375    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 0    
SL Green Operating Partnership | 4.00% Series P      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 4.00%    
Preferred units, shares authorized (in shares) | shares 200,000    
Number of preferred units issued (in shares) | shares 200,000    
Annual dividends on preferred units (in dollars per share) $ 1.0000    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 0    
SL Green Operating Partnership | 3.50% Series Q      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 3.50%    
Preferred units, shares authorized (in shares) | shares 268,000    
Number of preferred units issued (in shares) | shares 268,000    
Annual dividends on preferred units (in dollars per share) $ 0.8750    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 148.95    
SL Green Operating Partnership | 3.50% Series R      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 3.50%    
Preferred units, shares authorized (in shares) | shares 400,000    
Number of preferred units issued (in shares) | shares 400,000    
Annual dividends on preferred units (in dollars per share) $ 0.8750    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 154.89    
SL Green Operating Partnership | 4.00% Series S      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 4.00%    
Preferred units, shares authorized (in shares) | shares 1,077,280    
Number of preferred units issued (in shares) | shares 1,077,280    
Annual dividends on preferred units (in dollars per share) $ 1.0000    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 0    
SL Green Operating Partnership | 2.75% Series T      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 2.75%    
Preferred units, shares authorized (in shares) | shares 230,000    
Number of preferred units issued (in shares) | shares 230,000    
Annual dividends on preferred units (in dollars per share) $ 0.6875    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 119.02    
SL Green Operating Partnership | 4.50% Series U      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 4.50%    
Preferred units, shares authorized (in shares) | shares 680,000    
Number of preferred units issued (in shares) | shares 680,000    
Annual dividends on preferred units (in dollars per share) $ 1.1250    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 0    
SL Green Operating Partnership | 3.50% Series V      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Dividend rate preferred units (as a percent) 3.50%    
Preferred units, shares authorized (in shares) | shares 40,000    
Number of preferred units issued (in shares) | shares 40,000    
Annual dividends on preferred units (in dollars per share) $ 0.8750    
Liquidation preference of preferred units (in dollars per share) 25.00    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 0    
SL Green Operating Partnership | Series W      
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership      
Preferred units, shares authorized (in shares) | shares 1    
Number of preferred units issued (in shares) | shares 1    
Operating partnership common stock value use for conversion of preferred units (in dollars per share) $ 0    
Preferred stock, dividend, multiplier per common unit distribution 1,350    
Operating Partnership | SL Green Operating Partnership      
Organization      
Noncontrolling interest in the operating partnership (as a percent) 5.14%   5.03%
v3.20.1
Investments in Unconsolidated Joint Ventures - Acquisition, Development and Construction Arrangements/Sale of Joint Venture Interest or Property (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Oct. 31, 2016
Schedule of Equity Method Investments [Line Items]        
Equity method investments $ 2,848,363   $ 2,912,842  
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate $ 0 $ 17,166    
Stonehenge Portfolio        
Schedule of Equity Method Investments [Line Items]        
Ownership Interest       90.00%
v3.20.1
Share-based Compensation - Additional Information (Details)
fungible_unit in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
unit / shares
unit
fungible_unit
shares
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
shares
Dec. 31, 2018
USD ($)
shares
Jan. 01, 2008
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options $ 600,000 $ 500,000      
Stock options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Period of commencement of option vesting, from date of grant (in years) 1 year        
Options granted (in shares) | shares 0   0    
Remaining weighted average contractual life of the options outstanding (in years) 2 years 4 months 24 days        
Remaining average contractual life of the options exercisable (in years) 2 years 4 months 24 days        
Total unrecognized compensation cost related to unvested stock awards $ 20,000.00        
Weighted average period for recognition of compensation cost related to unvested stock awards (in years) 7 months 6 days        
Stock options | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award expiration period (in years) 5 years        
Options vesting period (in years) 1 year        
Stock options | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award expiration period (in years) 10 years        
Options vesting period (in years) 5 years        
Class O LTIP Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Preferred unit distributions as a percentage of common unit distributions 10.00%        
Restricted Stock Awards          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Compensation expense $ 2,929,781   $ 12,892,249    
Total unrecognized compensation cost related to unvested stock awards $ 17,500,000        
Weighted average period for recognition of compensation cost related to unvested stock awards (in years) 1 year 9 months 18 days        
Annual award vesting rate, low end of range (as a percent) 15.00%        
Annual award vesting rate, high end of range (as a percent) 35.00%        
Fair value of restricted stock vested during the period $ 12,400,000     $ 12,100,000  
Weighted average fair value of options granted during the period $ 687,839   $ 11,131,181    
Awards granted (in shares) | shares 8,320   126,350    
Awards outstanding (in shares) | shares 3,561,519   3,566,466 3,452,016  
LTIP units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Weighted average fair value of options granted during the period $ 34,600,000   $ 58,300,000    
Performance Shares          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Compensation expense 7,300,000 8,000,000.0      
Total unrecognized compensation cost related to unvested stock awards $ 56,700,000        
Weighted average period for recognition of compensation cost related to unvested stock awards (in years) 2 years 4 months 24 days        
Third Amendment and Restated 2005 Stock Option and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Maximum fungible units that may be granted (in shares) | unit 27,030,000        
Fungible units per share (in fungible units per share) | unit / shares 3.74        
Shares that may be issued if equal to fungible units (shares) (less than) | shares 27,030,000        
Fungible units | fungible_unit 3.1        
Third Amendment and Restated 2005 Stock Option and Incentive Plan | Stock options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Compensation expense $ 20,000.00 600,000      
Stock options, stock appreciation rights and other awards          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Fungible units per share (in fungible units per share) | unit / shares 0.73        
Award expiration period (in years) 5 years        
All other awards          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Fungible units per share (in fungible units per share) | unit / shares 1.0        
Award expiration period (in years) 10 years        
Deferred Stock Compensation Plan for Directors          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Compensation expense $ 1,800,000 $ 1,900,000      
Maximum percentage of the annual retainer fee, chairman fees and meeting fees that may be deferred by non-employee directors (percent) 100.00%        
Awards granted (in shares) | shares 11,966        
Shares issued (in shares) | shares 7,999        
Awards outstanding (in shares) | shares 131,989        
Employee Stock Purchase Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares of common stock available for issuance (shares) | shares         500,000
Duration of each offering period starting the first day of each calendar quarter (in months) 3 months        
Discount from market price 85.00%        
Shares of common stock issued (shares) | shares 137,923        
v3.20.1
Corporate Indebtedness - Schedule of Consolidated Interest Expense, Excluding Capitalized Interest (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Interest expense    
Interest expense before capitalized interest $ 56,813 $ 60,810
Interest on financing leases 1,663 804
Interest capitalized (20,483) (10,509)
Interest income (499) (580)
Interest expense, net $ 37,494 $ 50,525
v3.20.1
Mortgages and Other Loans Payable
3 Months Ended
Mar. 31, 2020
Mortgages and Other Loans Payable  
Mortgages and other loans payable Mortgages and Other Loans Payable
The mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments at March 31, 2020 and December 31, 2019, respectively, were as follows (dollars in thousands):
Property
 
Initial Maturity
Date
Final Maturity Date (1)
 
Interest
Rate (2)
 
March 31, 2020
 
December 31, 2019
Fixed Rate Debt:
 
 
 
 
 
 
 
 
 
 
100 Church Street
 
July 2022
July 2022
 
 
4.68
%
 
$
208,197

 
$
209,296

420 Lexington Avenue
 
October 2024
October 2040
 
 
3.99
%
 
297,885

 
299,165

400 East 58th Street (3)
 
November 2026
November 2026
 
 
3.00
%
 
38,881

 
39,094

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

1080 Amsterdam (4)
 
February 2027
February 2027
 
 
3.59
%
 
34,947

 
35,123

762 Madison Avenue (5)
 
 
 
 
 
 
 

 
771

315 West 33rd Street (6)
 
 
 
 
 
 
 

 
250,000

Total fixed rate debt
 
 
 
 
 
 
 
$
1,129,910

 
$
1,383,449

Floating Rate Debt:
 
 
 
 
 
 
 
 
 
 
FHLB Facility
 
June 2020
June 2020
 
L+
0.17%
 
$
14,500

 
$
14,500

2017 Master Repurchase Agreement
 
June 2020
June 2022
 
L+
2.09%
 
137,473

 
152,684

FHLB Facility
 
July 2020
July 2020
 
L+
0.17%
 
10,000

 

133 Greene Street
 
August 2020
August 2021
 
L+
2.00%
 
15,523

 
15,523

FHLB Facility
 
August 2020
August 2020
 
L+
0.26%
 
15,000

 

106 Spring Street
 
January 2021
January 2022
 
L+
2.50%
 
38,025

 
38,025

FHLB Facility
 
January 2021
January 2021
 
L+
0.18%
 
35,000

 

609 Fifth Avenue
 
March 2021
March 2024
 
L+
2.40%
 
55,416

 
53,773

185 Broadway (7)
 
November 2021
November 2023
 
L+
2.85%
 
130,791

 
120,110

712 Madison Avenue
 
December 2021
December 2022
 
L+
1.85%
 
28,000

 
28,000

410 Tenth Avenue (8)
 
May 2022
May 2024
 
L+
2.23%
 
350,578

 
330,819

719 Seventh Avenue
 
September 2023
September 2023
 
L+
1.20%
 
50,000

 
50,000

FHLB Facility (9)
 
 
 
 
 


 

 
10,000

FHLB Facility (9)
 
 
 
 
 


 

 
15,000

Total floating rate debt
 
 
 
 
 
 
 
$
880,306

 
$
828,434

Total mortgages and other loans payable
 
 
 
 
 
 
 
$
2,010,216

 
$
2,211,883

Deferred financing costs, net of amortization
 
 
 
 
 
 
 
(23,143
)
 
(28,630
)
Total mortgages and other loans payable, net
 
 
 
 
 
 
 
$
1,987,073

 
$
2,183,253

(1)
Reflects exercise of all available extension options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(2)
Interest rate as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(3)
The loan carries a fixed interest rate of 300 basis points for the first five years and is prepayable without penalty at the end of the fifth year.
(4)
The loan is comprised of a $34.0 million mortgage loan and $0.9 million mezzanine loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of fifth year.
(5)
In January 2020, the Company closed on the acquisition of the remaining 10% interest in this property from our joint venture partner. As part of this transaction, the loan was repaid.
(6)
In March 2020, the loan was assumed by the buyer in connection with the sale of the property.
(7)
This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three-year term with two one-year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.
(8)
This loan is a $465.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three-year term with two one-year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.
(9)
In 2020, the loan was repaid.

At March 31, 2020 and December 31, 2019, the gross book value of the properties and debt and preferred equity investments collateralizing the mortgages and other loans payable was approximately $3.0 billion and $3.3 billion, respectively.
Federal Home Loan Bank of New York ("FHLB") Facility
The Company's wholly-owned subsidiary, Ticonderoga Insurance Company, or Ticonderoga, a Vermont licensed captive insurance company, is a member of the Federal Home Loan Bank of New York, or FHLBNY. As a member, Ticonderoga may borrow funds from the FHLBNY in the form of secured advances that bear interest at a floating rate. As of March 31, 2020, we had a total of $74.5 million in outstanding secured advances with an average spread of 19 basis points over 30-day LIBOR.
Master Repurchase Agreement
The Company entered into a Master Repurchase Agreement, or MRA, known as the 2017 MRA, which provides us with the ability to sell certain mortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to recollateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity. As of March 31, 2020, there have been no margin calls on the 2017 MRA.
The 2017 MRA has a maximum facility capacity of $300.0 million. In April 2018, we increased the maximum facility capacity to $400.0 million. The facility bears interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate. In June 2018, we exercised a one year extension option and in June 2019, we exercised another one year extension option. In August 2019, we amended our agreement to include two additional one year extension options. At March 31, 2020, the facility had a carrying value of $137.3 million, net of deferred financing costs.
Corporate Indebtedness
2017 Credit Facility
In November 2017, we entered into an amendment to the credit facility, referred to as the 2017 credit facility, that was originally entered into by the Company in November 2012, or the 2012 credit facility. As of March 31, 2020, the 2017 credit facility consisted of a $1.5 billion revolving credit facility, a $1.3 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of March 31, 2022, March 31, 2023, and November 21, 2024, respectively. The revolving credit facility has two six-month, as-of-right extension options to March 31, 2023. 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 or other financial institutions.
As of March 31, 2020, the 2017 credit facility bore interest at a spread over 30-day LIBOR ranging from (i) 82.5 basis points to 155 basis points for loans under the revolving credit facility, (ii) 90 basis points to 175 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.
At March 31, 2020, the applicable spread was 100 basis points for the revolving credit facility, 110 basis points for Term Loan A, and 100 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of March 31, 2020, the facility fee was 20 basis points.
As of March 31, 2020, we had $11.8 million of outstanding letters of credit, $1.3 billion drawn under the revolving credit facility and $1.5 billion outstanding under the term loan facilities, with total undrawn capacity of $0.2 billion under the 2017 credit facility. At March 31, 2020 and December 31, 2019, the revolving credit facility had a carrying value of $1.3 billion and $0.2 billion, respectively, net of deferred financing costs. At March 31, 2020 and December 31, 2019, the term loan facilities had a carrying value of $1.5 billion and $1.5 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2017 credit facility.
The 2017 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).
Senior Unsecured Notes
The following table sets forth our senior unsecured notes and other related disclosures as of March 31, 2020 and December 31, 2019, respectively, by scheduled maturity date (dollars in thousands):
Issuance
 
March 31,
2020
Unpaid
Principal
Balance
 
March 31,
2020
Accreted
Balance
 
December 31,
2019
Accreted
Balance
 
Interest
Rate (1)
 
Initial Term
(in Years)
 
Maturity Date
August 7, 2018 (2) (3)
 
$
350,000

 
$
350,000

 
$
350,000

 
L+
0.98
%
 
3
 
August 2021
October 5, 2017 (2)
 
500,000

 
499,722

 
499,695

 
 
3.25
%
 
5
 
October 2022
November 15, 2012 (4)
 
300,000

 
302,881

 
303,142

 
 
4.50
%
 
10
 
December 2022
December 17, 2015 (5)
 
100,000

 
100,000

 
100,000

 
 
4.27
%
 
10
 
December 2025
March 16, 2020 (6)
 

 

 
250,000

 
 
 
 
 
 
 
 
 
$
1,250,000

 
$
1,252,603

 
$
1,502,837

 
 
 
 
 
 
 
Deferred financing costs, net
 
 
 
(5,357
)
 
(5,990
)
 
 
 
 
 
 
 
 
 
$
1,250,000

 
$
1,247,246

 
$
1,496,847

 
 
 
 
 
 
 
(1)
Interest rate as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate notes are presented with the stated spread over the 3-month LIBOR, unless otherwise specified.
(2)
Issued by the Operating Partnership with the Company as the guarantor.
(3)
The notes are subject to redemption at the Company's option, in whole but not in part, at a redemption price equal to 100% of the principal amount of the notes, plus unpaid accrued interest thereon to the redemption date. In April 2020, the Company entered into $350.0 million of fixed rate interest swaps at a rate of 0.54375% through August 2021.
(4)
In October 2017, the Company and the Operating Partnership as co-obligors issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334% of par.
(5)
Issued by the Company and the Operating Partnership as co-obligors.
(6)
In March 2020, the notes were repaid.
Restrictive Covenants
The terms of the 2017 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of March 31, 2020 and December 31, 2019, we were in compliance with all such covenants.
Junior Subordinated Deferrable Interest Debentures
In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments. The Trust preferred securities are redeemable at the option of the Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense.
Principal Maturities
Combined aggregate principal maturities of mortgages and other loans payable, the 2017 credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of March 31, 2020, including as-of-right extension options, were as follows (in thousands):
 
Scheduled
Amortization
 
Mortgages and Other Loans Payable
 
Revolving
Credit
Facility
 
Unsecured Term Loans
 
Trust
Preferred
Securities
 
Senior
Unsecured
Notes
 
Total
 
Joint
Venture
Debt
Remaining 2020
$
8,351

 
$
55,023

 
$

 
$

 
$

 
$

 
$
63,374

 
$
114,897

2021
11,638

 
231,815

 

 

 

 
350,000

 
593,453

 
884,953

2022
9,430

 
741,252

 

 

 

 
800,000

 
1,550,682

 
268,952

2023
7,301

 
50,000

 
1,300,000

 
1,300,000

 

 

 
2,657,301

 
311,436

2024
6,032

 
272,749

 

 
200,000

 

 

 
478,781

 
617,022

Thereafter
3,258

 
613,367

 

 

 
100,000

 
100,000

 
816,625

 
1,934,823

 
$
46,010

 
$
1,964,206

 
$
1,300,000

 
$
1,500,000

 
$
100,000

 
$
1,250,000

 
$
6,160,216

 
$
4,132,083


Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Interest expense before capitalized interest
$
56,813

 
$
60,810

Interest on financing leases
1,663

 
804

Interest capitalized
(20,483
)
 
(10,509
)
Interest income
(499
)
 
(580
)
Interest expense, net
$
37,494

 
$
50,525


v3.20.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating Activities    
Net income $ 127,114 $ 52,769
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 70,779 71,085
Equity in net loss from unconsolidated joint ventures 12,814 5,234
Distributions of cumulative earnings from unconsolidated joint ventures 108 425
Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate 0 (17,166)
Purchase price and other fair value adjustments 0 2,041
(Gain) loss on sale of real estate, net (72,636) 1,049
Loan loss reserves and other investment reserves, net of recoveries 11,248 0
Deferred rents receivable 3,717 (1,114)
Non-cash lease expense 3,390 3,381
Other non-cash adjustments 1,110 9,027
Changes in operating assets and liabilities:    
Tenant and other receivables (44,960) (4,759)
Related party receivables (4,711) (1,270)
Deferred lease costs (8,603) (13,111)
Other assets (48,130) (40,218)
Accounts payable, accrued expenses, other liabilities and security deposits (13,877) (12,915)
Deferred revenue 7,622 10,721
Change in lease liability - operating leases (2,959) (2,866)
Net cash provided by operating activities 42,026 62,313
Investing Activities    
Acquisitions of real estate property (86,846) 0
Additions to land, buildings and improvements (101,726) (39,524)
Acquisition deposits and deferred purchase price 0 (4,910)
Investments in unconsolidated joint ventures (8,906) (73,351)
Distributions in excess of cumulative earnings from unconsolidated joint ventures 53,516 23,664
Net proceeds from disposition of real estate/joint venture interest 91,156 14,489
Other investments (4,786) (1,056)
Origination of debt and preferred equity investments (223,374) (430,034)
Repayments or redemption of debt and preferred equity investments 151,548 218,879
Net cash (used in) provided by investing activities (129,418) (291,843)
Financing Activities    
Proceeds from mortgages and other loans payable 101,103 109,872
Repayments of mortgages and other loans payable (102,777) (1,127)
Proceeds from revolving credit facility and senior unsecured notes 1,125,000 520,000
Repayments of revolving credit facility and senior unsecured notes (315,000) (230,000)
Proceeds from stock options exercised and DRSPP issuance 166 47
Repurchase of common stock (219,576) (34,243)
Redemption of preferred stock (19,392) (15,142)
Redemption of OP units (18,066) (15,697)
Distributions to noncontrolling interests in other partnerships (492) (208)
Contributions from noncontrolling interests in other partnerships 3,814 161
Acquisition of subsidiary interest from noncontrolling interest (1,536) 0
Distributions to noncontrolling interests in the Operating Partnership (1,284) (3,643)
Dividends / Distributions paid on common and preferred stock / units (79,662) (77,399)
Tax withholdings related to restricted share awards (4,752) (3,126)
Deferred loan costs (562) (3,367)
Net cash provided by financing activities 466,984 246,128
Net increase in cash, cash equivalents, and restricted cash 379,592 16,598
Cash, cash equivalents, and restricted cash at beginning of year 241,430 279,113
Cash, cash equivalents, and restricted cash at end of period 621,022 295,711
Supplemental Disclosure of Non-Cash Investing and Financing Activities:    
Conversion of units in the Operating Partnership 84 446
Tenant improvements and capital expenditures payable 602 9,350
Reversal of assets held for sale 391,664 0
Seller financed purchases 100,000 0
Debt and preferred equity reserves 4,638 0
Removal of fully depreciated commercial real estate properties 512 4,012
Recognition of right of use assets and related lease liabilities 102,782 389,120
Total cash, cash equivalents, and restricted cash 621,022 295,711
SL Green Operating Partnership    
Operating Activities    
Net income 127,114 52,769
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 70,779 71,085
Equity in net loss from unconsolidated joint ventures 12,814 5,234
Distributions of cumulative earnings from unconsolidated joint ventures 108 425
Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate 0 (17,166)
Purchase price and other fair value adjustments 0 2,041
(Gain) loss on sale of real estate, net (72,636) 1,049
Loan loss reserves and other investment reserves, net of recoveries 11,248 0
Deferred rents receivable 3,717 (1,114)
Non-cash lease expense 3,390 3,381
Other non-cash adjustments 1,110 9,027
Changes in operating assets and liabilities:    
Tenant and other receivables (44,960) (4,759)
Related party receivables (4,711) (1,270)
Deferred lease costs (8,603) (13,111)
Other assets (48,130) (40,218)
Accounts payable, accrued expenses, other liabilities and security deposits (13,877) (12,915)
Deferred revenue 7,622 10,721
Change in lease liability - operating leases (2,959) (2,866)
Net cash provided by operating activities 42,026 62,313
Investing Activities    
Acquisitions of real estate property (86,846) 0
Additions to land, buildings and improvements (101,726) (39,524)
Acquisition deposits and deferred purchase price 0 (4,910)
Investments in unconsolidated joint ventures (8,906) (73,351)
Distributions in excess of cumulative earnings from unconsolidated joint ventures 53,516 23,664
Net proceeds from disposition of real estate/joint venture interest 91,156 14,489
Other investments (4,786) (1,056)
Origination of debt and preferred equity investments (223,374) (430,034)
Repayments or redemption of debt and preferred equity investments 151,548 218,879
Net cash (used in) provided by investing activities (129,418) (291,843)
Financing Activities    
Proceeds from mortgages and other loans payable 101,103 109,872
Repayments of mortgages and other loans payable (102,777) (1,127)
Proceeds from revolving credit facility and senior unsecured notes 1,125,000 520,000
Repayments of revolving credit facility and senior unsecured notes (315,000) (230,000)
Proceeds from stock options exercised and DRSPP issuance 166 47
Repurchase of common stock (219,576) (34,243)
Redemption of preferred stock (19,392) (15,142)
Redemption of OP units (18,066) (15,697)
Distributions to noncontrolling interests in other partnerships (492) (208)
Contributions from noncontrolling interests in other partnerships 3,814 161
Acquisition of subsidiary interest from noncontrolling interest (1,536) 0
Dividends / Distributions paid on common and preferred stock / units (80,946) (81,042)
Tax withholdings related to restricted share awards (4,752) (3,126)
Deferred loan costs (562) (3,367)
Net cash provided by financing activities 466,984 246,128
Net increase in cash, cash equivalents, and restricted cash 379,592 16,598
Cash, cash equivalents, and restricted cash at beginning of year 241,430 279,113
Cash, cash equivalents, and restricted cash at end of period 621,022 295,711
Supplemental Disclosure of Non-Cash Investing and Financing Activities:    
Conversion of units in the Operating Partnership 84 446
Tenant improvements and capital expenditures payable 602 9,350
Fair value adjustment to noncontrolling interest in the Operating Partnership 38,529 28,932
Reversal of assets held for sale 391,664 0
Seller financed purchases 100,000 0
Debt and preferred equity reserves 4,638 0
Removal of fully depreciated commercial real estate properties 512 4,012
Recognition of right of use assets and related lease liabilities 102,782 389,120
Total cash, cash equivalents, and restricted cash $ 621,022 $ 295,711
v3.20.1
Properties Held for Sale and Property Dispositions
3 Months Ended
Mar. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Properties Held for Sale and Property Dispositions Properties Held for Sale and Property Dispositions
Properties Held for Sale
As of March 31, 2020, no properties were classified as held for sale.
Property Dispositions
The following table summarizes the properties sold during the three months ended March 31, 2020:
Property
 
Disposition Date
 
Property Type
 
Approximate Square Feet
 
Sales Price(1)
(in millions)
 
Gain (loss)(2)
(in millions)
315 West 33rd Street - The Olivia
 
March 2020
 
Fee Interest
 
492,987

 
$
446.5

 
$
72.3

(1)
Sales price represents the gross sales price for a property or the gross asset valuation for interests in a property.
(2)
The gain on sale for 315 West 33rd Street is net of $6.0 million of employee compensation accrued in connection with the realization of this investment gain. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.
v3.20.1
Properties Held for Sale and Property Dispositions (Tables)
3 Months Ended
Mar. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Summary Of Properties Sold
The following table summarizes the properties sold during the three months ended March 31, 2020:
Property
 
Disposition Date
 
Property Type
 
Approximate Square Feet
 
Sales Price(1)
(in millions)
 
Gain (loss)(2)
(in millions)
315 West 33rd Street - The Olivia
 
March 2020
 
Fee Interest
 
492,987

 
$
446.5

 
$
72.3

(1)
Sales price represents the gross sales price for a property or the gross asset valuation for interests in a property.
(2)
The gain on sale for 315 West 33rd Street is net of $6.0 million of employee compensation accrued in connection with the realization of this investment gain. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.
v3.20.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Principles of Consolidation
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
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 three 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 one to 14 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 one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period.
The Company classifies those leases under which the Company is the lessee at lease commencement as finance or operating leases. Leases qualify as finance leases if the lease transfers ownership of the asset at the end of the lease term, the lease grants an option to purchase the asset that we are reasonably certain to exercise, the lease term is for a major part of the remaining economic life of the asset, or the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. At lease commencement the Company records a lease liability which is measured as the present value of the lease payments and a right of use asset which is measured as the amount of the lease liability and any initial direct costs incurred. The Company applies a discount rate to determine the present value of the lease payments. If the rate implicit in the lease is known, the Company uses that rate. If the rate implicit in the lease is not known, the Company uses a discount rate reflective of the Company’s collateralized borrowing rate given the term of the lease. To determine the discount rate, the Company employs a third party specialist to develop an analysis based primarily on the observable borrowing rates of the Company, other REITs, and other corporate borrowers with long-term borrowings. On the consolidated statements of operations, operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense. On the consolidated balance sheet, financing leases include the amounts previously captioned "Properties under capital lease." 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 calculated fair value of the property. 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.
Investment in Marketable Securities
Investment in Marketable Securities
At acquisition, we designate a security as held-to-maturity, available-for-sale, or trading. As of March 31, 2020, we did not have any securities designated as held-to-maturity or trading. We account for our available-for-sale securities at fair value pursuant to Accounting Standards Codification, or 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. Any unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component.
Investments in Unconsolidated Joint Ventures
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 venture's projected discounted cash flows.
Deferred Lease Costs and Lease Classification
Deferred Lease Costs
Deferred lease costs consist of incremental fees and direct costs that would not have been incurred if the lease had not been obtained and are amortized on a straight-line basis over the related lease term.
Lease Classification
Lease classification for leases under which the Company is the lessor is evaluated at lease commencement and leases not classified as sales-type leases or direct financing leases are classified as operating leases. Leases qualify as sales-type leases if the contract includes either transfer of ownership clauses, certain purchase options, a lease term representing a major part of the economic life of the asset, or the present value of the lease payments and residual guarantees provided by the lessee exceeds substantially all of the fair value of the asset. Additionally, leasing an asset so specialized that it is not deemed to have any value to the Company at the end of the lease term may also result in classification as a sales-type lease. Leases qualify as direct financing leases when the present value of the lease payments and residual value guarantees provided by the lessee and unrelated third parties exceeds substantially all of the fair value of the asset and collection of the payments is probable.
Revenue Recognition
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 substantially ready for its intended use.
To determine whether the leased space is substantially ready for its intended use, management evaluates whether we are or the tenant is 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.
When management concludes that we are the owner of tenant improvements for accounting purposes, we record amounts funded to construct the tenant improvements as a capital asset. For these tenant improvements, we record amounts reimbursed by tenants as a reduction of the capital asset. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, we record our contribution towards those improvements as a lease incentive, which is included in deferred costs, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease.
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 hold a controlling financial interest in the entity holding the real estate, a contract exists with a third party and that third party has control of the assets acquired.
Investment income on debt and preferred equity investments is accrued based on the contractual terms of the instruments and when it is deemed collectible. Some debt and preferred equity investments provide for accrual of interest at specified rates,
which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest is collectible. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.
Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as an adjustment to interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cash flows through the expected maturity date of the related investment. If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt investments acquired at a discount for credit quality, the difference between contractual cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which is expected, are also recognized over the term of the loan as an adjustment to yield.
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 investment becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received.
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
Debt and preferred equity investments are presented at the net amount expected to be collected. 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.
The Company evaluates the amount expected to be collected based on current market and economic conditions, historical loss information, and reasonable and supportable forecasts. The Company's assumptions are derived from both internal data and external data which may include, among others, governmental economic projections for the New York City Metropolitan area, public data on recent transactions and filings for securitized debt instruments. This information is aggregated by asset class and adjusted for duration. Based on these inputs, loans are evaluated at the individual asset level. In certain instances, we may also use a probability-weighted model that considers the likelihood of multiple outcomes and the amount expected to be collected for each outcome.
The evaluation of the possible credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor requires significant judgment, which include both asset level and market assumptions over the relevant time period.
In addition, quarterly, the Company assigns each loan a risk rating. Based on a 3-point scale, loans are rated “1” through “3,” from lower risk to higher risk, which ratings are defined as follows: 1 - Low Risk Assets - Low probability of loss, 2 - Watch List Assets - Higher potential for loss, 3 - High Risk Assets - Loss more likely than not. Loans with risk ratings of 2 or above are evaluated to determine whether the expected risk of loss is appropriately captured through the combination of our expectations of current conditions, historical loss information and supportable forecasts described above or whether risk characteristics specific to the loan warrant the use of a probability-weighted model.
Financing investments that are classified as held for sale are carried at the expected amount to be collected or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may
conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its expected amount to be collected.
Other financing receivables that are included in balance sheet line items other than the Debt and Preferred Equity Investments line are also measured at the net amount expected to the 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. Write offs of accrued interest receivables are recognized as an expense for loan loss and other investment reserves.
Income Taxes
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 months ended March 31, 2020, we recorded Federal, state and local tax provisions of $1.1 million. During the three months ended March 31, 2019, we recorded Federal, state and local tax provisions of $0.8 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
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Concentrations of Credit Risk
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 source of funds to offset the economic costs associated with lost revenue and the costs associated with re-tenanting a space.
Reclassification
Reclassification
Certain prior year balances have been reclassified to conform to our current year presentation.
Accounting Standards Updates
Accounting Standards Updates
In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. The Lease Modification Q&A has no material impact on the Company’s consolidated financial statements as of and for the three months ended March 31, 2020, however, its future impact to the Company is dependent upon the extent of lease concessions granted to tenants as a result of the COVID-19 pandemic in future periods and the elections made by the Company at the time of entering into such concessions.
In January 2020, the FASB issued Accounting Standard Update, or ASU, No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendment most relevant to the Company is how to apply the fair value measurement alternative in Topic 321 when an investor must apply the fair value to an investment under the equity method in Topic 323. The amendment clarifies that an entity should consider observable transactions when considering the fair value of an investment. The guidance is effective for the Company for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and
December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other- Internal-Use Software (Topic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendments provide guidance on accounting for fees paid when the arrangement includes a software license and align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs to develop or obtain internal-use software. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This amendment removed, modified and added the disclosure requirements under Topic 820. The changes are effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted for the removed or modified disclosures with adoption of the additional disclosures upon the effective date. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; in November 2018 issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, in April, May and November 2019, issued ASU No. 2019-04, 2019-05 and 2019-11, which provide codification improvements and targeted transition relief; and in 2020 issued ASU 2020-02 Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842), which updates SEC guidance in those Topics. The guidance changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. The Company’s DPE portfolio and financing lease assets are subject to this guidance. ASU No. 2018-19 excludes operating lease receivables from the scope of this guidance. The Company adopted this guidance on January 1, 2020 and recorded a $39.2 million cumulative adjustment to retained earnings upon adoption.
Fair Value Measurements Fair Value Measurements
We are required to disclose fair value information with regard to 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 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.
We evaluate real estate investments and debt and preferred equity investments, including intangibles, for potential impairment primarily utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of which are classified as Level 3 inputs.
Marketable securities classified as Level 1 are derived from quoted prices in active markets. The valuation technique used to measure the fair value of marketable securities classified as Level 2 were valued based on quoted market prices or model driven valuations using the significant inputs derived from or corroborated by observable market data. Marketable securities in an unrealized loss position are not considered to be other than temporarily impaired. 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.
v3.20.1
Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Revenues    
Rental revenue, net $ 222,631 $ 240,118
Investment income 38,533 50,031
Other income 53,139 14,106
Total revenues 314,303 304,255
Expenses    
Operating expenses, including related party expenses of $3,749 in 2020 and $2,793 in 2019 53,866 57,698
Real estate taxes 46,622 46,688
Operating lease rent 7,367 8,298
Interest expense, net of interest income 37,494 50,525
Amortization of deferred financing costs 2,500 2,742
Depreciation and amortization 68,279 68,343
Loan loss and other investment reserves, net of recoveries 11,248 0
Transaction related costs 65 55
Marketing, general and administrative 19,570 25,979
Total expenses 247,011 260,328
Equity in net loss from unconsolidated joint ventures (12,814) (5,234)
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate 0 17,166
Purchase price and other fair value adjustments 0 (2,041)
Gain (loss) on sale of real estate, net 72,636 (1,049)
Net income 127,114 52,769
Net (income) loss attributable to noncontrolling interests:    
Noncontrolling interests in the Operating Partnership (6,202) (2,278)
Noncontrolling interests in other partnerships 293 (237)
Preferred units distributions (2,666) (2,724)
Net income (loss) attributable to SL Green/SLGOP 118,539 47,530
Perpetual preferred stock dividends (3,738) (3,738)
Net income attributable to SL Green common stockholders $ 114,801 $ 43,792
Basic earnings per share (usd per share) $ 1.47 $ 0.52
Diluted earnings per share (usd per share) $ 1.47 $ 0.52
Basic weighted average common shares outstanding (in shares) 77,864 83,313
Diluted weighted average common shares and common share equivalents outstanding (in shares) 82,567 87,810
SL Green Operating Partnership    
Revenues    
Rental revenue, net $ 222,631 $ 240,118
Investment income 38,533 50,031
Other income 53,139 14,106
Total revenues 314,303 304,255
Expenses    
Operating expenses, including related party expenses of $3,749 in 2020 and $2,793 in 2019 53,866 57,698
Real estate taxes 46,622 46,688
Operating lease rent 7,367 8,298
Interest expense, net of interest income 37,494 50,525
Amortization of deferred financing costs 2,500 2,742
Depreciation and amortization 68,279 68,343
Loan loss and other investment reserves, net of recoveries 11,248 0
Transaction related costs 65 55
Marketing, general and administrative 19,570 25,979
Total expenses 247,011 260,328
Equity in net loss from unconsolidated joint ventures (12,814) (5,234)
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate 0 17,166
Purchase price and other fair value adjustments 0 (2,041)
Gain (loss) on sale of real estate, net 72,636 (1,049)
Net income 127,114 52,769
Net (income) loss attributable to noncontrolling interests:    
Noncontrolling interests in other partnerships 293 (237)
Preferred units distributions (2,666) (2,724)
Net income (loss) attributable to SL Green/SLGOP 124,741 49,808
Perpetual preferred unit distributions (3,738) (3,738)
Net income attributable to SLGOP common unitholders $ 121,003 $ 46,070
Basic earnings per unit (usd per share) $ 1.47 $ 0.52
Diluted earnings per unit (usd per share) $ 1.47 $ 0.52
Basic weighted average common units outstanding (in shares) 82,084 87,646
Diluted weighted average common units and common unit equivalents outstanding (in shares) 82,567 87,810
v3.20.1
Consolidated Statement of Equity (Parenthetical) - $ / shares
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]    
Cash distribution declared, per common share (in dollars per share) $ 0.295 $ 0.85
v3.20.1
Stockholders' Equity of the Company
3 Months Ended
Mar. 31, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity of the Company Stockholders’ Equity of the Company
Common Stock
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of March 31, 2020, 76,535,433 shares of common stock and no shares of excess stock were issued and outstanding.
Share Repurchase Program
In August 2016, our Board of Directors approved a share repurchase program under which we can buy up to $1.0 billion of shares of our common stock. The Board of Directors has since authorized four 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, and fourth quarter of 2019 bringing the total program size to $3.0 billion.
At March 31, 2020, repurchases executed under the program were as follows:
Period
Shares repurchased
Average price paid per share
Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017
8,342,411
$101.64
8,342,411
Year ended 2018
9,744,911
$96.22
18,087,322
Year ended 2019
4,596,171
$83.62
22,683,493
First quarter 2020
2,637,099
$83.25
25,320,592

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 par for cash at our option. 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 2018, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three months ended March 31, 2020 and 2019, respectively (dollars in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Shares of common stock issued
1,777

 
540

Dividend reinvestments/stock purchases under the DRSPP
$
166

 
$
47


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.
SL Green's earnings per share for the three months ended March 31, 2020 and 2019 are computed as follows (in thousands):
 
Three Months Ended March 31,
Numerator
2020
 
2019
Basic Earnings:
 
 
 
Income attributable to SL Green common stockholders
$
114,801

 
$
43,792

Less: distributed earnings allocated to participating securities
(113
)
 
(124
)
Less: undistributed earnings allocated to participating securities
(448
)
 

Net income attributable to SL Green common stockholders (numerator for basic earnings per share)
$
114,240

 
$
43,668

Add back: dilutive effect of earnings allocated to participating securities
113

 
124

Add back: undistributed earnings allocated to participating securities
448

 

Add back: effect of dilutive securities (redemption of units to common shares)
6,202

 
2,278

Income attributable to SL Green common stockholders (numerator for diluted earnings per share)
$
121,003

 
$
46,070

 
Three Months Ended March 31,
Denominator
2020
 
2019
Basic Shares:
 
 
 
Weighted average common stock outstanding
77,864

 
83,313

Effect of Dilutive Securities:
 
 
 
Operating Partnership units redeemable for common shares
4,220

 
4,333

Stock-based compensation plans
483

 
164

Diluted weighted average common stock outstanding
82,567

 
87,810


The Company has excluded 1,204,736 and 1,211,943 common stock equivalents from the calculation of diluted shares outstanding for the three months ended March 31, 2020 and the three months ended March 31, 2019, respectively, as they were anti-dilutive.
Accumulated Other Comprehensive Loss
The following tables set forth the changes in accumulated other comprehensive loss by component as of March 31, 2020 (in thousands):
 
Net unrealized loss on derivative instruments (1)
 
SL Green’s share
of joint venture
net unrealized loss on derivative
instruments (2)
 
Net unrealized gain (loss) on marketable securities
 
Total
Balance at December 31, 2019
$
(22,780
)
 
$
(7,982
)
 
$
2,277

 
$
(28,485
)
Other comprehensive loss before reclassifications
(42,728
)
 
(6,709
)
 
(4,306
)
 
(53,743
)
Amounts reclassified from accumulated other comprehensive loss
687

 
673

 

 
1,360

Balance at March 31, 2020
$
(64,821
)
 
$
(14,018
)
 
$
(2,029
)
 
$
(80,868
)
(1)
Amount reclassified from accumulated other comprehensive loss is included in interest expense in the respective consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the deferred net (gains) losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized (loss) gain on derivative instrument, was $(0.4) million and $(0.7) million, respectively.
(2)
Amount reclassified from accumulated other comprehensive loss is included in equity in net loss from unconsolidated joint ventures in the respective consolidated statements of operations.
v3.20.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We are required to disclose fair value information with regard to 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 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 at March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Marketable securities
$
25,353

 
$

 
$
25,353

 
$

Interest rate cap and swap agreements (included in other assets)
$
2

 
$

 
$
2

 
$

Liabilities:
 
 
 
 
 
 
 
Interest rate cap and swap agreements (included in other liabilities)
$
68,722

 
$

 
$
68,722

 
$

 
December 31, 2019
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Marketable securities
$
29,887

 
$

 
$
29,887

 
$

Interest rate cap and swap agreements (included in other assets)
$
4,419

 
$

 
$
4,419

 
$

Liabilities:
 
 
 
 
 
 
 
Interest rate cap and swap agreements (included in other liabilities)
$
29,110

 
$

 
$
29,110

 
$


We evaluate real estate investments and debt and preferred equity investments, including intangibles, for potential impairment primarily utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of which are classified as Level 3 inputs.
Marketable securities classified as Level 1 are derived from quoted prices in active markets. The valuation technique used to measure the fair value of marketable securities classified as Level 2 were valued based on quoted market prices or model driven valuations using the significant inputs derived from or corroborated by observable market data. Marketable securities in an unrealized loss position are not considered to be other than temporarily impaired. 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 March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
 
Carrying Value (1)
 
Fair Value
 
Carrying Value (1)
 
Fair Value
 
 
 
 
 
 
 
 
Debt and preferred equity investments
$
1,783,336

 
(2) 
 
$
1,580,306

 
(2) 
 
 
 
 
 
 
 
 
Fixed rate debt
$
3,032,513

 
$
3,117,072

 
$
3,536,286

 
$
3,642,770

Variable rate debt
3,130,306

 
3,125,267

 
2,018,434

 
2,018,714

 
$
6,162,819

 
$
6,242,339

 
$
5,554,720

 
$
5,661,484

(1)
Amounts exclude net deferred financing costs.
(2)
At March 31, 2020, debt and preferred equity investments had an estimated fair value ranging between $1.6 billion and $1.8 billion. At December 31, 2019, debt and preferred equity investments had an estimated fair value ranging between $1.6 billion and $1.7 billion.

Disclosure about fair value of financial instruments was based on pertinent information available to us as of March 31, 2020 and December 31, 2019. 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.
v3.20.1
Share-based Compensation (Tables)
3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Summary of the status of stock options and changes during the period
A summary of the status of the Company's stock options as of March 31, 2020 and December 31, 2019, and changes during the three months ended March 31, 2020 and year ended December 31, 2019 are as follows:
 
March 31, 2020
 
December 31, 2019
 
Options Outstanding
 
Weighted Average
Exercise Price
 
Options Outstanding
 
Weighted Average
Exercise Price
Balance at beginning of period
1,037,068

 
$
102.36

 
1,137,017

 
$
103.54

Granted

 

 

 

Exercised

 

 

 

Lapsed or canceled
(5,500
)
 
109.90

 
(99,949
)
 
115.81

Balance at end of period
1,031,568

 
$
102.32

 
1,037,068

 
$
102.36

Options exercisable at end of period
1,029,568

 
$
102.32

 
914,929

 
$
101.69


Summary of restricted stock and charges during the period
A summary of the Company's restricted stock as of March 31, 2020 and December 31, 2019 and charges during the three months ended March 31, 2020 and the year ended December 31, 2019, are as follows:
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
3,566,466

 
3,452,016

Granted
8,320

 
126,350

Canceled
(13,267
)
 
(11,900
)
Balance at end of period
3,561,519

 
3,566,466

Vested during the period
131,602

 
113,259

Compensation expense recorded
$
2,929,781

 
$
12,892,249

Total fair value of restricted stock granted during the period
$
687,839

 
$
11,131,181


v3.20.1
Related Party Transactions (Tables)
3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Schedule of amounts due from/to related parties Amounts due from joint ventures and related parties at March 31, 2020 and December 31, 2019 consisted of the following (in thousands):
 
March 31, 2020
 
December 31, 2019
Due from joint ventures
$
18,996

 
$
9,352

Other
7,096

 
11,769

Related party receivables
$
26,092

 
$
21,121


v3.20.1
Investments in Unconsolidated Joint Ventures - Additional Information (Details)
$ in Thousands
1 Months Ended 3 Months Ended
Oct. 31, 2016
Mar. 31, 2020
USD ($)
ft²
unit
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
General information on each joint venture        
Equity method investments | $   $ 2,848,363   $ 2,912,842
Net equity investment in VIEs in which the entity is not primary beneficiary | $   $ 138,100   145,900
Unaudited Approximate Square Feet (sqft)   29,864,846    
Purchase price and other fair value adjustments | $   $ 0 $ (2,041)  
1552-1560 Broadway        
General information on each joint venture        
Unaudited Approximate Square Feet (sqft)   13,045    
Stonehenge Portfolio        
General information on each joint venture        
Ownership Interest 90.00%      
East 400 Street 57        
General information on each joint venture        
Ownership Interest 51.00%      
East 400 Street 57        
General information on each joint venture        
Ownership percentage in disposed asset 49.00%      
21 East 66th Street | Three Retail and Two Residential Units        
General information on each joint venture        
Ownership Interest   3228.00%    
Number of stores | unit   3    
Number of residential units | unit   1    
21 East 66th Street | Three Residential Units        
General information on each joint venture        
Ownership Interest   1614.00%    
Number of residential units | unit   3    
Joint venture        
General information on each joint venture        
Equity method investments | $   $ 2,848,363   $ 2,912,842
Equity method investments with negative book value | $   $ 80,000    
Joint venture | 100 Park Avenue        
General information on each joint venture        
Ownership Interest   49.90%    
Economic Interest (as a percent)   49.90%    
Unaudited Approximate Square Feet (sqft)   834,000    
Joint venture | 717 Fifth Avenue        
General information on each joint venture        
Ownership Interest   10.92%    
Economic Interest (as a percent)   10.92%    
Unaudited Approximate Square Feet (sqft)   119,500    
Joint venture | 800 Third Avenue        
General information on each joint venture        
Ownership Interest   60.52%    
Economic Interest (as a percent)   60.52%    
Unaudited Approximate Square Feet (sqft)   526,000    
Joint venture | 919 Third Avenue        
General information on each joint venture        
Ownership Interest   51.00%    
Economic Interest (as a percent)   51.00%    
Unaudited Approximate Square Feet (sqft)   1,454,000    
Joint venture | 11 West 34th Street        
General information on each joint venture        
Ownership Interest   30.00%    
Economic Interest (as a percent)   30.00%    
Unaudited Approximate Square Feet (sqft)   17,150    
Joint venture | 280 Park Avenue        
General information on each joint venture        
Ownership Interest   50.00%    
Economic Interest (as a percent)   50.00%    
Unaudited Approximate Square Feet (sqft)   1,219,158    
Joint venture | 1552-1560 Broadway        
General information on each joint venture        
Ownership Interest   50.00%    
Economic Interest (as a percent)   50.00%    
Unaudited Approximate Square Feet (sqft)   57,718    
Joint venture | 10 East 53rd Street        
General information on each joint venture        
Ownership Interest   55.00%    
Economic Interest (as a percent)   55.00%    
Unaudited Approximate Square Feet (sqft)   354,300    
Joint venture | 21 East 66th Street        
General information on each joint venture        
Ownership Interest   32.28%    
Economic Interest (as a percent)   32.28%    
Unaudited Approximate Square Feet (sqft)   13,069    
Joint venture | 650 Fifth Avenue        
General information on each joint venture        
Ownership Interest   50.00%    
Economic Interest (as a percent)   50.00%    
Unaudited Approximate Square Feet (sqft)   69,214    
Joint venture | 121 Greene Street        
General information on each joint venture        
Ownership Interest   50.00%    
Economic Interest (as a percent)   50.00%    
Unaudited Approximate Square Feet (sqft)   7,131    
Joint venture | 55 West 46th Street        
General information on each joint venture        
Ownership Interest   25.00%    
Economic Interest (as a percent)   25.00%    
Unaudited Approximate Square Feet (sqft)   347,000    
Joint venture | Stonehenge Portfolio        
General information on each joint venture        
Ownership Interest 10.00%      
Unaudited Approximate Square Feet (sqft)   1,439,016    
Joint venture | 605 West 42nd Street        
General information on each joint venture        
Ownership Interest   20.00%    
Economic Interest (as a percent)   20.00%    
Unaudited Approximate Square Feet (sqft)   927,358    
Joint venture | 11 Madison Avenue        
General information on each joint venture        
Ownership Interest   60.00%    
Economic Interest (as a percent)   60.00%    
Unaudited Approximate Square Feet (sqft)   2,314,000    
Joint venture | 333 East 22nd St        
General information on each joint venture        
Ownership Interest   33.33%    
Economic Interest (as a percent)   33.33%    
Unaudited Approximate Square Feet (sqft)   26,926    
Joint venture | East 400 Street 57        
General information on each joint venture        
Ownership Interest   51.00%    
Economic Interest (as a percent)   41.00%    
Unaudited Approximate Square Feet (sqft)   290,482    
Joint venture | One Vanderbilt        
General information on each joint venture        
Ownership Interest   71.01%    
Economic Interest (as a percent)   71.01%    
Unaudited Approximate Square Feet (sqft)   0    
Joint venture | Worldwide Plaza        
General information on each joint venture        
Ownership Interest   24.35%    
Economic Interest (as a percent)   24.35%    
Unaudited Approximate Square Feet (sqft)   2,048,725    
Joint venture | 1515 Broadway        
General information on each joint venture        
Ownership Interest   56.87%    
Economic Interest (as a percent)   56.87%    
Unaudited Approximate Square Feet (sqft)   1,750,000    
Joint venture | 2 Herald Square        
General information on each joint venture        
Ownership Interest   51.00%    
Economic Interest (as a percent)   51.00%    
Unaudited Approximate Square Feet (sqft)   369,000    
Joint venture | 115 Spring Street        
General information on each joint venture        
Ownership Interest   51.00%    
Economic Interest (as a percent)   51.00%    
Unaudited Approximate Square Feet (sqft)   5,218    
v3.20.1
Property Acquisitions (Details)
$ in Millions
1 Months Ended
Jan. 31, 2020
USD ($)
ft²
Mar. 31, 2020
ft²
Property Acquisitions    
Approximate Square Feet   29,864,846
762 Madison Avenue    
Property Acquisitions    
Approximate Square Feet 6,109  
Gross Asset Valuation (in millions) | $ $ 29.3  
Interest acquired 10.00%  
707 Eleventh Avenue    
Property Acquisitions    
Approximate Square Feet 159,720  
Gross Asset Valuation (in millions) | $ $ 90.0  
126-132 Nassau Street    
Property Acquisitions    
Approximate Square Feet 98,412  
Gross Asset Valuation (in millions) | $ $ 0.0  
Ground leases, term of contract 99 years  
v3.20.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Fair Value of Financial Instruments      
Marketable securities $ 25,353   $ 29,887
Interest rate cap and swap agreements (included in other assets) 2   4,419
Purchase price and other fair value adjustments 0 $ (2,041)  
Debt and preferred equity investments 1,783,336   1,580,306
Equity method investments 2,848,363   2,912,842
Additional amount of financing receivables included in other assets 120,700   131,100
Carrying Value      
Fair Value of Financial Instruments      
Debt and preferred equity investments 1,783,336   1,580,306
Fixed rate debt 3,032,513   3,536,286
Variable rate debt 3,130,306   2,018,434
Total 6,162,819   5,554,720
Fair Value      
Fair Value of Financial Instruments      
Marketable securities 25,353   29,887
Total 6,242,339   5,661,484
Estimated fair value of debt and preferred equity investments, low end of range 1,600,000   1,600,000
Estimated fair value of debt and preferred equity investments, high end of range 1,800,000   1,700,000
Level 1      
Fair Value of Financial Instruments      
Interest rate cap and swap agreements (included in other assets) 0   0
Level 2      
Fair Value of Financial Instruments      
Interest rate cap and swap agreements (included in other assets) 2   4,419
Level 3      
Fair Value of Financial Instruments      
Marketable securities 0   0
Interest rate cap and swap agreements (included in other assets) 0   0
Level 3 | Fair Value      
Fair Value of Financial Instruments      
Fixed rate debt 3,117,072   3,642,770
Variable rate debt 3,125,267   2,018,714
Equity marketable securities | Level 1      
Fair Value of Financial Instruments      
Marketable securities 0   0
Commercial mortgage-backed securities      
Fair Value of Financial Instruments      
Marketable securities 25,353   29,887
Commercial mortgage-backed securities | Level 2      
Fair Value of Financial Instruments      
Marketable securities 25,353   29,887
Joint venture      
Fair Value of Financial Instruments      
Equity method investments 2,848,363   2,912,842
Accrued Interest Payable And Other      
Fair Value of Financial Instruments      
Interest rate cap and swap agreements (included in other liabilities) 68,722   29,110
Accrued Interest Payable And Other | Level 1      
Fair Value of Financial Instruments      
Interest rate cap and swap agreements (included in other liabilities) 0   0
Accrued Interest Payable And Other | Level 2      
Fair Value of Financial Instruments      
Interest rate cap and swap agreements (included in other liabilities) 68,722   29,110
Accrued Interest Payable And Other | Level 3      
Fair Value of Financial Instruments      
Interest rate cap and swap agreements (included in other liabilities) $ 0   $ 0
v3.20.1
Segment Information - Additional Information (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2020
USD ($)
segment
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Segment information      
Number of reportable segments | segment 2    
Total revenues $ 314,303 $ 304,255  
Net income 127,114 52,769  
Total assets [1] 13,220,607   $ 12,766,320
Marketing, general and administrative 19,570 25,979  
Operating Segments | Real Estate Segment      
Segment information      
Total revenues 275,770 254,224  
Net income 111,233 21,572  
Total assets 11,345,239   11,063,155
Operating Segments | Debt and Preferred Equity Segment      
Segment information      
Total revenues 38,533 50,031  
Net income 15,881 $ 31,197  
Total assets $ 1,875,368   $ 1,703,165
[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: $199.0 million and $205.2 million of land, $501.2 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $61.7 million and $61.7 million of right of use assets, $17.4 million and $17.6 million of accumulated depreciation, $179.2 million and $169.5 million of other assets included in other line items, $468.6 million and $457.1 million of real estate debt, net, $1.1 million and $1.2 million of accrued interest payable, $57.9 million and $57.7 million of lease liabilities, and $45.8 million and $43.7 million of other liabilities included in other line items as of March 31, 2020 and December 31, 2019, respectively.
v3.20.1
Debt and Preferred Equity Investments - Rollforward of Total Allowance for Loan Loss Reserves (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Loan loss reserve activity    
Balance at beginning of year $ 1,750 $ 5,750
Current period provision for loan loss 8,403 0
Writeoffs charged against the allowance 0 (4,000)
Balance at end of period 37,957 1,750
Cumulative adjustment upon adoption of ASC 326    
Loan loss reserve activity    
Balance at beginning of year $ 27,804 0
Balance at end of period   $ 27,804
v3.20.1
Corporate Indebtedness - Senior Unsecured Notes (Details) - USD ($)
1 Months Ended 3 Months Ended
Aug. 08, 2019
Oct. 31, 2017
Mar. 31, 2020
Apr. 30, 2020
Dec. 31, 2019
Debt disclosures by scheduled maturity date          
Accreted Balance     $ 1,494,470,000   $ 1,494,024,000
Senior unsecured notes          
Debt disclosures by scheduled maturity date          
Unpaid Principal Balance     1,250,000,000    
Accreted Balance     1,252,603,000   1,502,837,000
Deferred financing costs, net     (5,357,000)   (5,990,000)
Accreted Balance, net of deferred financing costs     1,247,246,000   1,496,847,000
Senior unsecured notes | Senior Unsecured Notes Due August 2021          
Debt disclosures by scheduled maturity date          
Unpaid Principal Balance     350,000,000    
Accreted Balance     $ 350,000,000   350,000,000
Coupon Rate (as a percent)     0.98%    
Initial Term (in Years)     3 years    
Redemption price, percentage 100.00%        
Senior unsecured notes | 3.25 Percent Senior Unsecured Notes Due October 2022          
Debt disclosures by scheduled maturity date          
Unpaid Principal Balance     $ 500,000,000    
Accreted Balance     $ 499,722,000   499,695,000
Coupon Rate (as a percent)     3.25%    
Initial Term (in Years)     5 years    
Senior unsecured notes | 4.50% Senior unsecured notes maturing on December 1, 2022          
Debt disclosures by scheduled maturity date          
Unpaid Principal Balance     $ 300,000,000    
Accreted Balance     $ 302,881,000   303,142,000
Coupon Rate (as a percent)   4.50% 4.50%    
Initial Term (in Years)     10 years    
Face amount of loan   $ 100,000,000.0      
Redemption price, percentage   105.334%      
Senior unsecured notes | 4.27% Senior unsecured notes maturing on December 17, 2025          
Debt disclosures by scheduled maturity date          
Unpaid Principal Balance     $ 100,000,000    
Accreted Balance     $ 100,000,000   100,000,000
Coupon Rate (as a percent)     4.27%    
Initial Term (in Years)     10 years    
Senior unsecured notes | Senior Unsecured Note Due March 16, 2020          
Debt disclosures by scheduled maturity date          
Unpaid Principal Balance     $ 0    
Accreted Balance     $ 0   $ 250,000,000
Subsequent Event | Interest Rate Swap | Senior Unsecured Notes Due August 2021          
Debt disclosures by scheduled maturity date          
Notional amount       $ 350,000,000.0  
Derivative, fixed interest rate       0.54375%  
v3.20.1
Partners' Capital of the Operating Partnership - Additional Information (Details) - shares
3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Common Stock        
Stockholders' Equity        
Units outstanding (units) 76,535,000 79,202,000 83,272,000 83,684,000
SL Green Operating Partnership        
Stockholders' Equity        
Number of units of operating partnership owned by the noncontrolling interest unit holders (units) 4,144,555 4,195,875    
SL Green Operating Partnership | Series I Preferred Units        
Stockholders' Equity        
Units outstanding (units) 9,200,000      
Period of restriction to redeem OP Units 1 year      
Conversion of stock, shares issued 1      
SL Green Operating Partnership | Common Stock        
Stockholders' Equity        
Units outstanding (units) 76,535,433      
v3.20.1
Stockholders' Equity of the Company - Additional Information (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
increase
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
USD ($)
$ / shares
shares
Mar. 31, 2019
shares
Jun. 30, 2018
USD ($)
Aug. 31, 2016
USD ($)
Equity, Class of Treasury Stock [Line Items]              
Authorized capital stock (shares) 260,000,000            
Authorized shares, par value (in dollars per share) | $ / shares $ 0.01            
Common stock, shares authorized (in shares) 160,000,000 160,000,000          
Common stock, par value (in dollars per share) | $ / shares $ 0.01 $ 0.01          
Excess stock, shares authorized (shares) 75,000,000            
Excess stock, par value (in dollars per share) | $ / shares $ 0.01            
Preferred stock, shares authorized (shares) 25,000,000            
Preferred stock, par value (in dollars per share) | $ / shares $ 0.01            
Excess shares issued (shares) 0            
Shares repurchased 2,637,099 4,596,171 9,744,911 8,342,411      
Average price paid per share (in dollars per share) | $ / shares $ 83.25 $ 83.62 $ 96.22 $ 101.64      
2016 Repurchase Program              
Equity, Class of Treasury Stock [Line Items]              
Stock repurchase program, authorized amount | $   $ 500,000 $ 500,000,000 $ 500,000,000.0   $ 500,000,000 $ 1,000,000,000.0
Number of increases to share repurchase program | increase 4            
Shares repurchased 25,320,592 22,683,493 18,087,322 8,342,411      
Stock repurchase program, authorized amount | $ $ 3,000,000,000.0            
Common Stock              
Equity, Class of Treasury Stock [Line Items]              
Shares, outstanding (in shares) 76,535,000 79,202,000 83,684,000   83,272,000    
SL Green Operating Partnership | Common Stock              
Equity, Class of Treasury Stock [Line Items]              
Shares, outstanding (in shares) 76,535,433            
v3.20.1
Investments in Unconsolidated Joint Ventures - Schedules of Combined Financial Statements for the Unconsolidated Joint Ventures (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Assets      
Commercial real estate property, net $ 6,931,798   $ 6,724,007
Cash and cash equivalents 554,195 $ 144,323 166,070
Tenant and other receivables, related party receivables, and deferred rents receivable 88,587   43,968
Other assets 353,644   332,801
Liabilities and equity      
Mortgages and other loans payable, net 1,987,073   2,183,253
Deferred revenue 116,197   114,052
Lease liabilities 363,990   381,671
Other liabilities 214,968   177,080
Company's investments in unconsolidated joint ventures 2,848,363   2,912,842
Investments difference between carrying amount and underlying equity 122,600    
Combined statements of income for the unconsolidated joint ventures      
Operating expenses 53,866 57,698  
Real estate taxes 46,622 46,688  
Operating lease rent 7,367 8,298  
Interest expense, net of interest income 37,494 50,525  
Amortization of deferred financing costs 2,500 2,742  
Depreciation and amortization 68,279 68,343  
Total expenses 247,011 260,328  
Company's equity in net (loss) income from unconsolidated joint ventures (12,814) (5,234)  
Joint venture      
Assets      
Commercial real estate property, net 14,392,907   14,349,628
Cash and cash equivalents 329,205   336,189
Tenant and other receivables, related party receivables, and deferred rents receivable 346,837   371,065
Other assets 1,997,553   2,039,429
Total assets 17,066,502   17,096,311
Liabilities and equity      
Mortgages and other loans payable, net 9,116,172   8,951,869
Deferred revenue 1,459,796   1,501,616
Lease liabilities 902,161   897,380
Other liabilities 284,364   308,304
Equity 5,304,009   5,437,142
Total liabilities and equity 17,066,502   17,096,311
Company's investments in unconsolidated joint ventures 2,848,363   $ 2,912,842
Combined statements of income for the unconsolidated joint ventures      
Total revenues 282,520 307,519  
Operating expenses 51,590 54,124  
Real estate taxes 53,372 54,236  
Operating lease rent 6,361 5,901  
Interest expense, net of interest income 86,324 96,623  
Amortization of deferred financing costs 4,814 5,216  
Depreciation and amortization 98,584 104,331  
Total expenses 301,045 320,431  
Net loss before gain on sale (18,525) (12,912)  
Company's equity in net (loss) income from unconsolidated joint ventures (12,814) (5,234)  
Management Service, Base | Joint venture      
Investment in Unconsolidated Joint Ventures      
Escalation and reimbursement $ 2,200 $ 2,500  
v3.20.1
Commitments and Contingencies (Tables)
3 Months Ended
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Schedule Of Ground Lease Arrangements
The table below summarizes our current ground lease arrangements as of March 31, 2020:
Property (1)
Year of Current Expiration
Year of Final Expiration (2)
1185 Avenue of the Americas
2043
2043
625 Madison Avenue
2022
2054
420 Lexington Avenue
2050
2080
711 Third Avenue (3)
2033
2083
461 Fifth Avenue (4)
2027
2084
1055 Washington Blvd, Stamford, Connecticut
2090
2090
1080 Amsterdam Avenue (5)
2111
2111
30 East 40th Street (5)
2114
2114
126 Nassau Street (4)
2119
2119
Other
Various
Various
(1)
All leases are classified as operating leases unless otherwise specified.
(2)
Reflects exercise of all available renewal options.
(3)
The Company owns 50% of the fee interest.
(4)
The Company has an option to purchase the ground lease for a fixed price on a specific date. The lease is classified as a financing lease.
(5)
A portion of the lease is classified as a financing lease.
Finance lease, liability, maturity
The following is a schedule of future minimum lease payments as evaluated in accordance with ASC 842 for our financing leases and operating leases with initial terms in excess of one year as of March 31, 2020 (in thousands):
 
Financing leases
 
Operating leases (1)
Remaining 2020
$
5,812

 
$
22,077

2021
34,885

 
29,452

2022
5,881

 
27,148

2023
5,927

 
24,844

2024
5,999

 
24,863

2025
6,266

 
24,962

Thereafter
1,018,013

 
618,326

Total minimum lease payments
$
1,082,783

 
$
771,672

Amount representing interest
(920,484
)
 
 
Amount discounted using incremental borrowing rate
 
 
(407,682
)
Lease liabilities
$
162,299

 
$
363,990


(1)
As of March 31, 2020, the total minimum sublease rentals to be received in the future under non-cancelable subleases is $1.6 billion.
Schedule of future minimum rental payments for operating leases
The following is a schedule of future minimum lease payments as evaluated in accordance with ASC 842 for our financing leases and operating leases with initial terms in excess of one year as of March 31, 2020 (in thousands):
 
Financing leases
 
Operating leases (1)
Remaining 2020
$
5,812

 
$
22,077

2021
34,885

 
29,452

2022
5,881

 
27,148

2023
5,927

 
24,844

2024
5,999

 
24,863

2025
6,266

 
24,962

Thereafter
1,018,013

 
618,326

Total minimum lease payments
$
1,082,783

 
$
771,672

Amount representing interest
(920,484
)
 
 
Amount discounted using incremental borrowing rate
 
 
(407,682
)
Lease liabilities
$
162,299

 
$
363,990


(1)
As of March 31, 2020, the total minimum sublease rentals to be received in the future under non-cancelable subleases is $1.6 billion.
v3.20.1
Organization and Basis of Presentation - Subsequent Events (Details)
$ in Millions
May 07, 2020
USD ($)
ft²
Mar. 31, 2020
ft²
Subsequent Event [Line Items]    
Approximate Square Feet | ft²   29,864,846
609 Fifth Avenue | Subsequent Event    
Subsequent Event [Line Items]    
Sales Price $ 168.0  
National Pension Service of Korea And Hines Interest LP | One Madison Ave | Subsequent Event    
Subsequent Event [Line Items]    
Ownership percentage in disposed asset 49.50%  
Committed aggregate equity to the project $ 492.2  
Co-venturer | National Pension Service of Korea And Hines Interest LP | One Madison Ave | Subsequent Event    
Subsequent Event [Line Items]    
Project value $ 2,300.0  
Approximate Square Feet | ft² 1,400,000  
v3.20.1
Significant Accounting Policies - Concentrations of Credit Risk/Accounting Standards Updates (Details) - Annualized rent - Customer concentration
3 Months Ended
Mar. 31, 2020
Tenant
Concentration of Credit Risk  
Number of tenants (tenants) 1
Maximum percentage of annualized rent for any one tenant not individually disclosed (percent) (more than) 5.00%
1185 Avenue of the Americas  
Concentration of Credit Risk  
Percentage of concentration (percent) 8.50%
11 Madison Avenue  
Concentration of Credit Risk  
Percentage of concentration (percent) 8.30%
420 Lexington Avenue  
Concentration of Credit Risk  
Percentage of concentration (percent) 7.50%
1515 Broadway  
Concentration of Credit Risk  
Percentage of concentration (percent) 6.80%
220 East 42nd Street  
Concentration of Credit Risk  
Percentage of concentration (percent) 6.20%
280 Park Avenue  
Concentration of Credit Risk  
Percentage of concentration (percent) 5.40%
485 Lexington Avenue  
Concentration of Credit Risk  
Percentage of concentration (percent) 5.30%
Tenant 1  
Concentration of Credit Risk  
Percentage of concentration (percent) 5.50%
v3.20.1
Investments in Unconsolidated Joint Ventures (Tables)
3 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of general information on joint ventures
The table below provides general information on each of our joint ventures as of March 31, 2020:
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

121 Greene Street
Wharton Properties
50.00%
50.00%
7,131

55 West 46th Street
Prudential Real Estate Investors
25.00%
25.00%
347,000

Stonehenge Portfolio
Various
Various
Various
1,439,016

605 West 42nd Street
The Moinian Group
20.00%
20.00%
927,358

11 Madison Avenue
PGIM Real Estate
60.00%
60.00%
2,314,000

333 East 22nd Street
Private Investors
33.33%
33.33%
26,926

400 East 57th Street(5)
BlackRock, Inc and Stonehenge Partners
51.00%
41.00%
290,482

One Vanderbilt
National Pension Service of Korea/Hines Interest LP
71.01%
71.01%

Worldwide Plaza
RXR Realty / New York REIT / Private Investor
24.35%
24.35%
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

(1)
Ownership interest and economic interest represent the Company's interests in the joint venture as of March 31, 2020. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)
The acquisition price represents only the purchase of the 1552 Broadway interest, which comprised approximately 13,045 square feet. The joint venture also owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. Beginning in April 2020, debt service and ground rent payments for this investment were not made primarily as a result of the failure of the primary tenant to pay rent. The Company, on behalf of the venture, is in discussions with the lessor and lender.
(3)
We hold a 32.28% interest in three retail units and one residential unit at the property and a 16.14% interest in three residential units at the property.
(4)
The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.
(5)
In October 2016, we sold a 49% interest in this property. Our interest in the property was sold within a consolidated joint venture owned 90% by the Company and 10% by Stonehenge. The transaction resulted in the deconsolidation of the venture's remaining 51% interest in the property. Our joint venture with Stonehenge remains consolidated resulting in the combined 51% interest being shown within investments in unconsolidated joint ventures on our balance sheet.
Schedule of first mortgage notes payable collateralized by the respective joint venture properties and assignment of leases The mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases at March 31, 2020 and December 31, 2019, respectively, are as follows (dollars in thousands):
Property
 
Economic
Interest
(1)
 
Initial Maturity
Date
Final Maturity Date (2)
 
Interest
Rate (3)
 
March 31, 2020
 
December 31, 2019
Fixed Rate Debt:
 
 
 
 
 
 
 
 
 
 
 
 
717 Fifth Avenue (mortgage)
 
10.92
%
 
July 2022
July 2022
 
 
4.45
%
 
$
300,000

 
$
300,000


Property
 
Economic
Interest
(1)
 
Initial Maturity
Date
Final Maturity Date (2)
 
Interest
Rate (3)
 
March 31, 2020
 
December 31, 2019
717 Fifth Avenue (mezzanine)
 
10.92
%
 
July 2022
July 2022
 
 
5.50
%
 
355,328

 
355,328

650 Fifth Avenue (mortgage)
 
50.00
%
 
October 2022
October 2022
 
 
4.46
%
 
210,000

 
210,000

650 Fifth Avenue (mezzanine)
 
50.00
%
 
October 2022
October 2022
 
 
5.45
%
 
65,000

 
65,000

21 East 66th Street
 
32.28
%
 
April 2023
April 2028
 
 
3.60
%
 
12,000

 
12,000

919 Third Avenue
 
51.00
%
 
June 2023
June 2023
 
 
5.12
%
 
500,000

 
500,000

1515 Broadway
 
56.87
%
 
March 2025
March 2025
 
 
3.93
%
 
834,084

 
838,546

11 Madison Avenue
 
60.00
%
 
September 2025
September 2025
 
 
3.84
%
 
1,400,000

 
1,400,000

800 Third Avenue
 
60.52
%
 
February 2026
February 2026
 
 
3.37
%
 
177,000

 
177,000

400 East 57th Street
 
41.00
%
 
November 2026
November 2026
 
 
3.00
%
 
97,202

 
97,735

Worldwide Plaza
 
24.35
%
 
November 2027
November 2027
 
 
3.98
%
 
1,200,000

 
1,200,000

Stonehenge Portfolio (4)
 
Various

 
Various
Various
 
 
3.50
%
 
196,112

 
196,112

Total fixed rate debt
 
 
 
 
 
 
 
 
 
$
5,346,726

 
$
5,351,721

Floating Rate Debt:
 
 
 
 
 
 
 
 
 
 
 
 
280 Park Avenue
 
50.00
%
 
September 2020
September 2024
 
L+
1.73
%
 
$
1,200,000

 
$
1,200,000

1552 Broadway (5)
 
50.00
%
 
October 2020
October 2022
 
L+
2.65
%
 
195,000

 
195,000

121 Greene Street
 
50.00
%
 
November 2020
November 2021
 
L+
1.50
%
 
15,000

 
15,000

11 West 34th Street
 
30.00
%
 
January 2021
January 2023
 
L+
1.45
%
 
23,000

 
23,000

100 Park Avenue
 
49.90
%
 
February 2021
February 2021
 
L+
1.75
%
 
356,027

 
356,972

One Vanderbilt (6)
 
71.01
%
 
September 2021
September 2023
 
L+
2.50
%
 
838,936

 
732,928

2 Herald Square
 
51.00
%
 
November 2021
November 2023
 
L+
1.55
%
 
198,629

 
190,000

55 West 46th Street (7)
 
25.00
%
 
August 2022
August 2024
 
L+
1.25
%
 
192,524

 
192,524

115 Spring Street
 
51.00
%
 
September 2023
September 2023
 
L+
3.40
%
 
65,550

 
65,550

10 East 53rd Street
 
55.00
%
 
February 2025
February 2025
 
L+
1.35
%
 
220,000

 
170,000

605 West 42nd Street
 
20.00
%
 
August 2027
August 2027
 
L+
1.44
%
 
550,000

 
550,000

21 East 66th Street
 
32.28
%
 
June 2033
June 2033
 
1 Year Treasury+
2.75
%
 
708

 
712

Total floating rate debt
 
 
 
 
 
 
 
 
 
$
3,855,374

 
$
3,691,686

Total joint venture mortgages and other loans payable
 
 
 
 
 
$
9,202,100

 
$
9,043,407

Deferred financing costs, net
 
 
 
 
 
 
 
 
 
(85,928
)
 
(91,538
)
Total joint venture mortgages and other loans payable, net
 
 
 
 
 
$
9,116,172

 
$
8,951,869


(1)
Economic interest represents the Company's interests in the joint venture as of March 31, 2020. 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 extension options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(3)
Interest rates as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(4)
Amount is comprised of three mortgages totaling $132.6 million that mature in April 2028 and two mortgages totaling $63.5 million that mature in July 2029.
(5)
Beginning in April 2020, debt service and ground rent payments for this investment were not made primarily as a result of the failure of the primary tenant to pay rent. The Company, on behalf of the venture, is in discussions with the lessor and lender.
(6)
This loan is a $1.75 billion construction facility with reductions in interest cost based on meeting conditions, the first of which has been satisfied, and has an initial five-year term with two one-year extension options. Advances under the loan are subject to costs incurred.
(7)
This loan has a committed amount of $198.0 million, of which $5.5 million was unfunded as of March 31, 2020.
Schedule of combined balance sheets for the unconsolidated joint ventures
The combined balance sheets for the unconsolidated joint ventures, at March 31, 2020 and December 31, 2019 are as follows (in thousands):
 
March 31, 2020
 
December 31, 2019
Assets (1)
 
 
 
Commercial real estate property, net
$
14,392,907

 
$
14,349,628

Cash and restricted cash
329,205

 
336,189

Tenant and other receivables, related party receivables, and deferred rents receivable
346,837

 
371,065

Other assets
1,997,553

 
2,039,429

Total assets
$
17,066,502

 
$
17,096,311

Liabilities and equity (1)
 
 
 
Mortgages and other loans payable, net
$
9,116,172

 
$
8,951,869

Deferred revenue
1,459,796

 
1,501,616

Lease liabilities
902,161

 
897,380

Other liabilities
284,364

 
308,304

Equity
5,304,009

 
5,437,142

Total liabilities and equity
$
17,066,502

 
$
17,096,311

Company's investments in unconsolidated joint ventures
$
2,848,363

 
$
2,912,842


(1)
The combined assets, liabilities and equity for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained, non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018. In addition, at March 31, 2020, $122.6 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.
Schedule of combined statements of income for the unconsolidated joint ventures
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three months ended March 31, 2020 and 2019, are as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Total revenues
$
282,520

 
$
307,519

Operating expenses
51,590

 
54,124

Real estate taxes
53,372

 
54,236

Operating lease rent
6,361

 
5,901

Interest expense, net of interest income
86,324

 
96,623

Amortization of deferred financing costs
4,814

 
5,216

Depreciation and amortization
98,584

 
104,331

Total expenses
301,045

 
320,431

Net loss before gain on sale (1)
$
(18,525
)
 
$
(12,912
)
Company's equity in net loss from unconsolidated joint ventures (1)
$
(12,814
)
 
$
(5,234
)

(1)
The combined statements of operations and the Company's equity in net loss for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018.
v3.20.1
Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Summary of identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases)
The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Identified intangible assets (included in other assets):
 
 
 
Gross amount
$
225,025

 
$
255,198

Accumulated amortization
(202,581
)
 
(228,223
)
Net(1)
$
22,444

 
$
26,975

Identified intangible liabilities (included in deferred revenue):
 
 
 
Gross amount
$
274,208

 
$
282,048

Accumulated amortization
(246,464
)
 
(249,514
)
Net(1)
$
27,744

 
$
32,534


(1)
As of March 31, 2020, and December 31, 2019, no net intangible assets and no net intangible liabilities, were reclassified to assets held for sale or liabilities related to assets held for sale.
Schedule of marketable securities
At March 31, 2020 and December 31, 2019, we held the following marketable securities (in thousands):
 
March 31, 2020
 
December 31, 2019
Commercial mortgage-backed securities
$
25,353

 
$
29,887

Total marketable securities available-for-sale
$
25,353

 
$
29,887


Schedules of Concentration of Risk, by Risk Factor
For the three months ended March 31, 2020, 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 March 31, 2020
1185 Avenue of the Americas
8.5%
11 Madison Avenue
8.3%
420 Lexington Avenue
7.5%
1515 Broadway
6.8%
220 East 42nd Street
6.2%
280 Park Avenue
5.4%
485 Lexington
5.3%

v3.20.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Proceedings
As of March 31, 2020, 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.
Ground Lease Arrangements
We are a tenant under ground leases for certain properties. These leases have expirations from 2022 to 2114, or 2043 to 2114 as fully extended. Certain leases offer extension options which we assess against relevant economic factors to determine whether we are reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that we are reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and right of use asset.
Certain of our ground leases are subject to rent resets, generally based on a percentage of the then fair market value, a fixed amount, or a percentage of the preceding rent at specified future dates. Rent resets will be recognized in the periods in which they are incurred.
The table below summarizes our current ground lease arrangements as of March 31, 2020:
Property (1)
Year of Current Expiration
Year of Final Expiration (2)
1185 Avenue of the Americas
2043
2043
625 Madison Avenue
2022
2054
420 Lexington Avenue
2050
2080
711 Third Avenue (3)
2033
2083
461 Fifth Avenue (4)
2027
2084
1055 Washington Blvd, Stamford, Connecticut
2090
2090
1080 Amsterdam Avenue (5)
2111
2111
30 East 40th Street (5)
2114
2114
126 Nassau Street (4)
2119
2119
Other
Various
Various
(1)
All leases are classified as operating leases unless otherwise specified.
(2)
Reflects exercise of all available renewal options.
(3)
The Company owns 50% of the fee interest.
(4)
The Company has an option to purchase the ground lease for a fixed price on a specific date. The lease is classified as a financing lease.
(5)
A portion of the lease is classified as a financing lease.
The following is a schedule of future minimum lease payments as evaluated in accordance with ASC 842 for our financing leases and operating leases with initial terms in excess of one year as of March 31, 2020 (in thousands):
 
Financing leases
 
Operating leases (1)
Remaining 2020
$
5,812

 
$
22,077

2021
34,885

 
29,452

2022
5,881

 
27,148

2023
5,927

 
24,844

2024
5,999

 
24,863

2025
6,266

 
24,962

Thereafter
1,018,013

 
618,326

Total minimum lease payments
$
1,082,783

 
$
771,672

Amount representing interest
(920,484
)
 
 
Amount discounted using incremental borrowing rate
 
 
(407,682
)
Lease liabilities
$
162,299

 
$
363,990


(1)
As of March 31, 2020, the total minimum sublease rentals to be received in the future under non-cancelable subleases is $1.6 billion.
During the three months ended March 31, 2020, we recognized $2.0 million of financing lease costs, of which $1.7 million represented interest and $0.3 million represented amortization of the right-of-use assets. During the three months ended March 31, 2019, we recognized $1.1 million of financing lease costs, of which $0.8 million represented interest and $0.3 million represented amortization of the right-of-use assets. These amounts are included in interest expense, net of interest income and depreciation and amortization in our consolidated statements of operations, respectively.
During the three months ended March 31, 2020 and 2019, we recognized $7.4 million and $8.3 million of operating lease costs, respectively, which is calculated on a straight-line basis over the remaining lease terms. This amount is included in operating lease rent in our consolidated statements of operations.
As of March 31, 2020, the weighted-average discount rate used to calculate the lease liabilities was 8.01%. As of March 31, 2020, the weighted-average remaining lease term was 70 years.
v3.20.1
Significant Accounting Policies
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Significant Accounting Policies 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 three 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 one to 14 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 one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period.
The Company classifies those leases under which the Company is the lessee at lease commencement as finance or operating leases. Leases qualify as finance leases if the lease transfers ownership of the asset at the end of the lease term, the lease grants an option to purchase the asset that we are reasonably certain to exercise, the lease term is for a major part of the remaining economic life of the asset, or the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. At lease commencement the Company records a lease liability which is measured as the present value of the lease payments and a right of use asset which is measured as the amount of the lease liability and any initial direct costs incurred. The Company applies a discount rate to determine the present value of the lease payments. If the rate implicit in the lease is known, the Company uses that rate. If the rate implicit in the lease is not known, the Company uses a discount rate reflective of the Company’s collateralized borrowing rate given the term of the lease. To determine the discount rate, the Company employs a third party specialist to develop an analysis based primarily on the observable borrowing rates of the Company, other REITs, and other corporate borrowers with long-term borrowings. On the consolidated statements of operations, operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense. On the consolidated balance sheet, financing leases include the amounts previously captioned "Properties under capital lease." 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 calculated fair value of the property. 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.
We recognized $1.2 million and $1.2 million of rental revenue for the three months ended March 31, 2020 and 2019, respectively, for the amortization of aggregate below-market leases in excess of above-market leases.
The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Identified intangible assets (included in other assets):
 
 
 
Gross amount
$
225,025

 
$
255,198

Accumulated amortization
(202,581
)
 
(228,223
)
Net(1)
$
22,444

 
$
26,975

Identified intangible liabilities (included in deferred revenue):
 
 
 
Gross amount
$
274,208

 
$
282,048

Accumulated amortization
(246,464
)
 
(249,514
)
Net(1)
$
27,744

 
$
32,534


(1)
As of March 31, 2020, and December 31, 2019, no net intangible assets and no net intangible liabilities, were reclassified to assets held for sale or liabilities related to assets held for sale.
Fair Value Measurements
See Note 16, "Fair Value Measurements."
Investment in Marketable Securities
At acquisition, we designate a security as held-to-maturity, available-for-sale, or trading. As of March 31, 2020, we did not have any securities designated as held-to-maturity or trading. We account for our available-for-sale securities at fair value pursuant to Accounting Standards Codification, or 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. Any unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component.
At March 31, 2020 and December 31, 2019, we held the following marketable securities (in thousands):
 
March 31, 2020
 
December 31, 2019
Commercial mortgage-backed securities
$
25,353

 
$
29,887

Total marketable securities available-for-sale
$
25,353

 
$
29,887


The cost basis of the commercial mortgage-backed securities was $27.5 million at both March 31, 2020 and December 31, 2019. These securities mature at various times through 2035. We held no equity marketable securities as of March 31, 2020 and December 31, 2019.
We did not dispose of any marketable securities during either the three months ended March 31, 2020 or the three months ended March 31, 2019.
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 venture's projected discounted cash flows. We do not believe that the values of any of our equity investments were impaired at March 31, 2020.
Deferred Lease Costs
Deferred lease costs consist of incremental fees and direct costs that would not have been incurred if the lease had not been obtained and are amortized on a straight-line basis over the related lease term.
Lease Classification
Lease classification for leases under which the Company is the lessor is evaluated at lease commencement and leases not classified as sales-type leases or direct financing leases are classified as operating leases. Leases qualify as sales-type leases if the contract includes either transfer of ownership clauses, certain purchase options, a lease term representing a major part of the economic life of the asset, or the present value of the lease payments and residual guarantees provided by the lessee exceeds substantially all of the fair value of the asset. Additionally, leasing an asset so specialized that it is not deemed to have any value to the Company at the end of the lease term may also result in classification as a sales-type lease. Leases qualify as direct financing leases when the present value of the lease payments and residual value guarantees provided by the lessee and unrelated third parties exceeds substantially all of the fair value of the asset and collection of the payments is probable.
Revenue Recognition
Rental revenue for operating leases is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the leased space is substantially ready for its intended use.
To determine whether the leased space is substantially ready for its intended use, management evaluates whether we are or the tenant is 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.
When management concludes that we are the owner of tenant improvements for accounting purposes, we record amounts funded to construct the tenant improvements as a capital asset. For these tenant improvements, we record amounts reimbursed by tenants as a reduction of the capital asset. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, we record our contribution towards those improvements as a lease incentive, which is included in deferred costs, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease.
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 hold a controlling financial interest in the entity holding the real estate, a contract exists with a third party and that third party has control of the assets acquired.
Investment income on debt and preferred equity investments is accrued based on the contractual terms of the instruments and when it is deemed collectible. Some debt and preferred equity investments provide for accrual of interest at specified rates,
which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest is collectible. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.
Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as an adjustment to interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cash flows through the expected maturity date of the related investment. If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt investments acquired at a discount for credit quality, the difference between contractual cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which is expected, are also recognized over the term of the loan as an adjustment to yield.
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 investment becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received.
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. 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.
The Company evaluates the amount expected to be collected based on current market and economic conditions, historical loss information, and reasonable and supportable forecasts. The Company's assumptions are derived from both internal data and external data which may include, among others, governmental economic projections for the New York City Metropolitan area, public data on recent transactions and filings for securitized debt instruments. This information is aggregated by asset class and adjusted for duration. Based on these inputs, loans are evaluated at the individual asset level. In certain instances, we may also use a probability-weighted model that considers the likelihood of multiple outcomes and the amount expected to be collected for each outcome.
The evaluation of the possible credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor requires significant judgment, which include both asset level and market assumptions over the relevant time period.
In addition, quarterly, the Company assigns each loan a risk rating. Based on a 3-point scale, loans are rated “1” through “3,” from lower risk to higher risk, which ratings are defined as follows: 1 - Low Risk Assets - Low probability of loss, 2 - Watch List Assets - Higher potential for loss, 3 - High Risk Assets - Loss more likely than not. Loans with risk ratings of 2 or above are evaluated to determine whether the expected risk of loss is appropriately captured through the combination of our expectations of current conditions, historical loss information and supportable forecasts described above or whether risk characteristics specific to the loan warrant the use of a probability-weighted model.
Financing investments that are classified as held for sale are carried at the expected amount to be collected or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may
conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its expected amount to be collected.
Other financing receivables that are included in balance sheet line items other than the Debt and Preferred Equity Investments line are also measured at the net amount expected to the 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. Write offs of accrued interest receivables are recognized as an expense for 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 months ended March 31, 2020, we recorded Federal, state and local tax provisions of $1.1 million. During the three months ended March 31, 2019, we recorded Federal, state and local tax provisions of $0.8 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.
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 source of funds to offset the economic costs associated with lost revenue and the costs associated with re-tenanting a space. The properties in our real estate portfolio are located in the New York metropolitan area. The tenants located in our buildings operate in various industries. Other than one tenant, ViacomCBS Inc., which accounts for 5.5% of our share of annualized cash rent, 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 rent, at March 31, 2020.
For the three months ended March 31, 2020, 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 March 31, 2020
1185 Avenue of the Americas
8.5%
11 Madison Avenue
8.3%
420 Lexington Avenue
7.5%
1515 Broadway
6.8%
220 East 42nd Street
6.2%
280 Park Avenue
5.4%
485 Lexington
5.3%

Reclassification
Certain prior year balances have been reclassified to conform to our current year presentation.
Accounting Standards Updates
In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. The Lease Modification Q&A has no material impact on the Company’s consolidated financial statements as of and for the three months ended March 31, 2020, however, its future impact to the Company is dependent upon the extent of lease concessions granted to tenants as a result of the COVID-19 pandemic in future periods and the elections made by the Company at the time of entering into such concessions.
In January 2020, the FASB issued Accounting Standard Update, or ASU, No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendment most relevant to the Company is how to apply the fair value measurement alternative in Topic 321 when an investor must apply the fair value to an investment under the equity method in Topic 323. The amendment clarifies that an entity should consider observable transactions when considering the fair value of an investment. The guidance is effective for the Company for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and
December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other- Internal-Use Software (Topic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendments provide guidance on accounting for fees paid when the arrangement includes a software license and align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs to develop or obtain internal-use software. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This amendment removed, modified and added the disclosure requirements under Topic 820. The changes are effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted for the removed or modified disclosures with adoption of the additional disclosures upon the effective date. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; in November 2018 issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, in April, May and November 2019, issued ASU No. 2019-04, 2019-05 and 2019-11, which provide codification improvements and targeted transition relief; and in 2020 issued ASU 2020-02 Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842), which updates SEC guidance in those Topics. The guidance changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. The Company’s DPE portfolio and financing lease assets are subject to this guidance. ASU No. 2018-19 excludes operating lease receivables from the scope of this guidance. The Company adopted this guidance on January 1, 2020 and recorded a $39.2 million cumulative adjustment to retained earnings upon adoption.
v3.20.1
Investments in Unconsolidated Joint Ventures
3 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Joint Ventures Investments in Unconsolidated Joint Ventures
We have investments in several real estate joint ventures with various partners. As of March 31, 2020, the book value of these investments was $2.8 billion, net of investments with negative book values totaling $80.0 million for which we have an implicit commitment to fund future capital needs.
As of March 31, 2020 and December 31, 2019, 800 Third Avenue, 21 East 66th Street, 605 West 42nd Street, 333 East 22nd Street, and certain properties within the Stonehenge Portfolio are VIEs in which we are not the primary beneficiary. Our net equity investment in these VIEs was $138.1 million and $145.9 million as of March 31, 2020 and December 31, 2019, 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 March 31, 2020:
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

121 Greene Street
Wharton Properties
50.00%
50.00%
7,131

55 West 46th Street
Prudential Real Estate Investors
25.00%
25.00%
347,000

Stonehenge Portfolio
Various
Various
Various
1,439,016

605 West 42nd Street
The Moinian Group
20.00%
20.00%
927,358

11 Madison Avenue
PGIM Real Estate
60.00%
60.00%
2,314,000

333 East 22nd Street
Private Investors
33.33%
33.33%
26,926

400 East 57th Street(5)
BlackRock, Inc and Stonehenge Partners
51.00%
41.00%
290,482

One Vanderbilt
National Pension Service of Korea/Hines Interest LP
71.01%
71.01%

Worldwide Plaza
RXR Realty / New York REIT / Private Investor
24.35%
24.35%
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

(1)
Ownership interest and economic interest represent the Company's interests in the joint venture as of March 31, 2020. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)
The acquisition price represents only the purchase of the 1552 Broadway interest, which comprised approximately 13,045 square feet. The joint venture also owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. Beginning in April 2020, debt service and ground rent payments for this investment were not made primarily as a result of the failure of the primary tenant to pay rent. The Company, on behalf of the venture, is in discussions with the lessor and lender.
(3)
We hold a 32.28% interest in three retail units and one residential unit at the property and a 16.14% interest in three residential units at the property.
(4)
The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.
(5)
In October 2016, we sold a 49% interest in this property. Our interest in the property was sold within a consolidated joint venture owned 90% by the Company and 10% by Stonehenge. The transaction resulted in the deconsolidation of the venture's remaining 51% interest in the property. Our joint venture with Stonehenge remains consolidated resulting in the combined 51% interest being shown within investments in unconsolidated joint ventures on our balance sheet.
Disposition of Joint Venture Interests or Properties
We did not dispose of any investments in unconsolidated joint ventures during the three months ended March 31, 2020:
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 for tenant space, 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 at March 31, 2020 and December 31, 2019, respectively, are as follows (dollars in thousands):
Property
 
Economic
Interest
(1)
 
Initial Maturity
Date
Final Maturity Date (2)
 
Interest
Rate (3)
 
March 31, 2020
 
December 31, 2019
Fixed Rate Debt:
 
 
 
 
 
 
 
 
 
 
 
 
717 Fifth Avenue (mortgage)
 
10.92
%
 
July 2022
July 2022
 
 
4.45
%
 
$
300,000

 
$
300,000


Property
 
Economic
Interest
(1)
 
Initial Maturity
Date
Final Maturity Date (2)
 
Interest
Rate (3)
 
March 31, 2020
 
December 31, 2019
717 Fifth Avenue (mezzanine)
 
10.92
%
 
July 2022
July 2022
 
 
5.50
%
 
355,328

 
355,328

650 Fifth Avenue (mortgage)
 
50.00
%
 
October 2022
October 2022
 
 
4.46
%
 
210,000

 
210,000

650 Fifth Avenue (mezzanine)
 
50.00
%
 
October 2022
October 2022
 
 
5.45
%
 
65,000

 
65,000

21 East 66th Street
 
32.28
%
 
April 2023
April 2028
 
 
3.60
%
 
12,000

 
12,000

919 Third Avenue
 
51.00
%
 
June 2023
June 2023
 
 
5.12
%
 
500,000

 
500,000

1515 Broadway
 
56.87
%
 
March 2025
March 2025
 
 
3.93
%
 
834,084

 
838,546

11 Madison Avenue
 
60.00
%
 
September 2025
September 2025
 
 
3.84
%
 
1,400,000

 
1,400,000

800 Third Avenue
 
60.52
%
 
February 2026
February 2026
 
 
3.37
%
 
177,000

 
177,000

400 East 57th Street
 
41.00
%
 
November 2026
November 2026
 
 
3.00
%
 
97,202

 
97,735

Worldwide Plaza
 
24.35
%
 
November 2027
November 2027
 
 
3.98
%
 
1,200,000

 
1,200,000

Stonehenge Portfolio (4)
 
Various

 
Various
Various
 
 
3.50
%
 
196,112

 
196,112

Total fixed rate debt
 
 
 
 
 
 
 
 
 
$
5,346,726

 
$
5,351,721

Floating Rate Debt:
 
 
 
 
 
 
 
 
 
 
 
 
280 Park Avenue
 
50.00
%
 
September 2020
September 2024
 
L+
1.73
%
 
$
1,200,000

 
$
1,200,000

1552 Broadway (5)
 
50.00
%
 
October 2020
October 2022
 
L+
2.65
%
 
195,000

 
195,000

121 Greene Street
 
50.00
%
 
November 2020
November 2021
 
L+
1.50
%
 
15,000

 
15,000

11 West 34th Street
 
30.00
%
 
January 2021
January 2023
 
L+
1.45
%
 
23,000

 
23,000

100 Park Avenue
 
49.90
%
 
February 2021
February 2021
 
L+
1.75
%
 
356,027

 
356,972

One Vanderbilt (6)
 
71.01
%
 
September 2021
September 2023
 
L+
2.50
%
 
838,936

 
732,928

2 Herald Square
 
51.00
%
 
November 2021
November 2023
 
L+
1.55
%
 
198,629

 
190,000

55 West 46th Street (7)
 
25.00
%
 
August 2022
August 2024
 
L+
1.25
%
 
192,524

 
192,524

115 Spring Street
 
51.00
%
 
September 2023
September 2023
 
L+
3.40
%
 
65,550

 
65,550

10 East 53rd Street
 
55.00
%
 
February 2025
February 2025
 
L+
1.35
%
 
220,000

 
170,000

605 West 42nd Street
 
20.00
%
 
August 2027
August 2027
 
L+
1.44
%
 
550,000

 
550,000

21 East 66th Street
 
32.28
%
 
June 2033
June 2033
 
1 Year Treasury+
2.75
%
 
708

 
712

Total floating rate debt
 
 
 
 
 
 
 
 
 
$
3,855,374

 
$
3,691,686

Total joint venture mortgages and other loans payable
 
 
 
 
 
$
9,202,100

 
$
9,043,407

Deferred financing costs, net
 
 
 
 
 
 
 
 
 
(85,928
)
 
(91,538
)
Total joint venture mortgages and other loans payable, net
 
 
 
 
 
$
9,116,172

 
$
8,951,869


(1)
Economic interest represents the Company's interests in the joint venture as of March 31, 2020. 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 extension options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(3)
Interest rates as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(4)
Amount is comprised of three mortgages totaling $132.6 million that mature in April 2028 and two mortgages totaling $63.5 million that mature in July 2029.
(5)
Beginning in April 2020, debt service and ground rent payments for this investment were not made primarily as a result of the failure of the primary tenant to pay rent. The Company, on behalf of the venture, is in discussions with the lessor and lender.
(6)
This loan is a $1.75 billion construction facility with reductions in interest cost based on meeting conditions, the first of which has been satisfied, and has an initial five-year term with two one-year extension options. Advances under the loan are subject to costs incurred.
(7)
This loan has a committed amount of $198.0 million, of which $5.5 million was unfunded as of March 31, 2020.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $2.2 million from these services, net of our ownership share of the joint ventures, for the three months ended March 31, 2020. We earned $2.5 million from these services, net of our ownership share of the joint ventures, for the three months ended March 31, 2019. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.
The combined balance sheets for the unconsolidated joint ventures, at March 31, 2020 and December 31, 2019 are as follows (in thousands):
 
March 31, 2020
 
December 31, 2019
Assets (1)
 
 
 
Commercial real estate property, net
$
14,392,907

 
$
14,349,628

Cash and restricted cash
329,205

 
336,189

Tenant and other receivables, related party receivables, and deferred rents receivable
346,837

 
371,065

Other assets
1,997,553

 
2,039,429

Total assets
$
17,066,502

 
$
17,096,311

Liabilities and equity (1)
 
 
 
Mortgages and other loans payable, net
$
9,116,172

 
$
8,951,869

Deferred revenue
1,459,796

 
1,501,616

Lease liabilities
902,161

 
897,380

Other liabilities
284,364

 
308,304

Equity
5,304,009

 
5,437,142

Total liabilities and equity
$
17,066,502

 
$
17,096,311

Company's investments in unconsolidated joint ventures
$
2,848,363

 
$
2,912,842


(1)
The combined assets, liabilities and equity for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained, non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018. In addition, at March 31, 2020, $122.6 million of net unamortized basis differences between the amount at which our investments are carried and our share of equity in net assets of the underlying property will be amortized through equity in net income (loss) from unconsolidated joint ventures over the remaining life of the underlying items having given rise to the differences.
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three months ended March 31, 2020 and 2019, are as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Total revenues
$
282,520

 
$
307,519

Operating expenses
51,590

 
54,124

Real estate taxes
53,372

 
54,236

Operating lease rent
6,361

 
5,901

Interest expense, net of interest income
86,324

 
96,623

Amortization of deferred financing costs
4,814

 
5,216

Depreciation and amortization
98,584

 
104,331

Total expenses
301,045

 
320,431

Net loss before gain on sale (1)
$
(18,525
)
 
$
(12,912
)
Company's equity in net loss from unconsolidated joint ventures (1)
$
(12,814
)
 
$
(5,234
)

(1)
The combined statements of operations and the Company's equity in net loss for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018.
v3.20.1
Related Party Transactions
3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Cleaning/ Security/ Messenger and Restoration Services
Alliance Building Services, or Alliance, and its affiliates are partially owned by Gary Green, a son of Stephen L. Green, who serves as a member and as the chairman emeritus of our board of directors, and provide services to certain properties owned by us. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide cleaning, extermination, security, messenger, and restoration services, respectively. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.
Income earned from the profit participation, which is included in other income on the consolidated statements of operations, was $0.9 million and $0.9 million for the three months ended March 31, 2020 and 2019, respectively.
We also recorded expenses, inclusive of capitalized expenses, of $3.9 million and $2.9 million for the three months ended March 31, 2020 and 2019, respectively, for these services (excluding services provided directly to tenants).
Management Fees
S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. We received management fees from this entity of $0.2 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively.
One Vanderbilt Investment
In December 2016, we entered into agreements with entities owned and controlled by our Chairman and CEO, Marc Holliday, and our President, Andrew Mathias, pursuant to which they agreed to make an investment in our One Vanderbilt project at the appraised fair market value for the interests acquired. This investment entitles these entities to receive approximately 1.50% - 1.80% and 1.00% - 1.20%, respectively, of any profits realized by the Company from its One Vanderbilt project in excess of the Company’s capital contributions. The entities have no right to any return of capital. Accordingly, subject to previously disclosed repurchase rights, these interests will have no value and will not entitle these entities to any amounts (other than limited distributions to cover tax liabilities incurred) unless and until the Company has received distributions from the One Vanderbilt project in excess of the Company’s aggregate investment in the project. In the event that the Company does not realize a profit on its investment in the project (or would not realize a profit based on the value at the time the interests are repurchased), the entities owned and controlled by Messrs. Holliday and Mathias will lose the entire amount of their investment. The entities owned and controlled by Messrs. Holliday and Mathias paid $1.4 million and $1.0 million, respectively, which equal 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.
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 at March 31, 2020 and December 31, 2019 consisted of the following (in thousands):
 
March 31, 2020
 
December 31, 2019
Due from joint ventures
$
18,996

 
$
9,352

Other
7,096

 
11,769

Related party receivables
$
26,092

 
$
21,121


v3.20.1
Share-based Compensation
3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Share-based Compensation Share-based Compensation
We have share-based employee and director compensation plans. Our employees are compensated through the Operating Partnership. Under each plan, whenever the Company issues common or preferred stock, the Operating Partnership issues an equivalent number of units of limited partnership interest of a corresponding class to the Company.
The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's board of directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights, cash-based awards and other equity-based awards. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted under the 2005 Plan. Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 3.74 Fungible Units per share subject to such awards, (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five years from the date of grant counting as 0.73 fungible units per share subject to such awards, and (3) all other awards (e.g., ten-year stock options) counting as 1.0 fungible units per share subject to such awards. Awards granted under the 2005 Plan prior to the approval of the fourth amendment and restatement in June 2016 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios. As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 27,030,000 shares. If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares. Currently, unless the 2005 Plan has been previously terminated by the Company's board of directors, new awards may be granted under the 2005 Plan until June 2, 2026, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by the Company's stockholders. As of March 31, 2020, 3.1 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 or ten years from the date of grant, are not transferable other than on death, and generally vest in one to five years commencing one year from the date of grant. We have also granted Class O LTIP Units, which are a class of LTIP Units in the Operating Partnership structured to provide economics similar to those of stock options. Class O LTIP Units, once vested, may be converted, at the election of the holder, into a number of common units of the Operating Partnership per Class O LTIP Unit determined by the increase in value of a share of the Company’s common stock at the time of conversion over a participation threshold, which equals the fair market value of a share of the Company’s common stock at the time of grant. Class O LTIP Units are entitled to distributions, subject to vesting, equal per unit to 10% of the per unit distributions paid with respect to the common units of the Operating Partnership. The fair value of each stock option or LTIP Unit granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information.
There were no options granted during the three months ended March 31, 2020 or the year ended December 31, 2019.
A summary of the status of the Company's stock options as of March 31, 2020 and December 31, 2019, and changes during the three months ended March 31, 2020 and year ended December 31, 2019 are as follows:
 
March 31, 2020
 
December 31, 2019
 
Options Outstanding
 
Weighted Average
Exercise Price
 
Options Outstanding
 
Weighted Average
Exercise Price
Balance at beginning of period
1,037,068

 
$
102.36

 
1,137,017

 
$
103.54

Granted

 

 

 

Exercised

 

 

 

Lapsed or canceled
(5,500
)
 
109.90

 
(99,949
)
 
115.81

Balance at end of period
1,031,568

 
$
102.32

 
1,037,068

 
$
102.36

Options exercisable at end of period
1,029,568

 
$
102.32

 
914,929

 
$
101.69


The remaining weighted average contractual life of the options outstanding was 2.4 years and the remaining average contractual life of the options exercisable was 2.4 years.
During the three months ended March 31, 2020, we recognized compensation expense for these options of $0.02 million. During the three months ended March 31, 2019, we recognized compensation expense for these options of $0.6 million.
As of March 31, 2020, there was $0.02 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 0.6 years.
Restricted Shares
Shares are granted to certain employees, including our executives, and vesting occurs annually upon the completion of a service period or our meeting established financial performance criteria. Annual vesting occurs at rates ranging from 15% to 35% once performance criteria are reached.
A summary of the Company's restricted stock as of March 31, 2020 and December 31, 2019 and charges during the three months ended March 31, 2020 and the year ended December 31, 2019, are as follows:
 
March 31, 2020
 
December 31, 2019
Balance at beginning of period
3,566,466

 
3,452,016

Granted
8,320

 
126,350

Canceled
(13,267
)
 
(11,900
)
Balance at end of period
3,561,519

 
3,566,466

Vested during the period
131,602

 
113,259

Compensation expense recorded
$
2,929,781

 
$
12,892,249

Total fair value of restricted stock granted during the period
$
687,839

 
$
11,131,181


The fair value of restricted stock that vested during the three months ended March 31, 2020 and the year ended December 31, 2019 was $12.4 million and $12.1 million, respectively. As of March 31, 2020, there was $17.5 million of total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 1.8 years.
We granted LTIP Units, which include bonus, time-based and performance-based awards, with a fair value of $34.6 million and $58.3 million as of March 31, 2020 and December 31, 2019, respectively. The grant date fair value of the LTIP Unit awards was calculated in accordance with ASC 718. A third party consultant determined the fair value of the LTIP Units to have a discount from our common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP Units will reach parity with other common partnership units and the illiquidity due to transfer restrictions. As of March 31, 2020, there was $56.7 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 2.4 years.
During the three months ended March 31, 2020, we recorded compensation expense related to bonus, time-based and performance based awards of $7.3 million. During the three months ended March 31, 2019, we recorded compensation expense related to bonus, time-based and performance based awards of $8.0 million.
For the three months ended March 31, 2020, $0.6 million was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options. For the three months ended March 31, 2019, $0.5 million was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.
Deferred Compensation Plan for Directors
Under our Non-Employee Director's Deferral Program, which commenced July 2004, the Company's non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees, meeting fees and annual stock grant. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The program provides that a director's phantom stock units generally will be settled in an equal number of shares of common stock upon the earlier of (i) the January 1 coincident with or the next following such director's termination of service from the Board of Directors or (ii) a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the first business day of the respective quarter. Each participating non-employee director is also credited with dividend equivalents or phantom stock units based on the dividend rate for each quarter, which are either paid in cash currently or credited to the director’s account as additional phantom stock units.
During the three months ended March 31, 2020, 11,966 phantom stock units and 7,999 shares of common stock were issued to our board of directors. We recorded compensation expense of $1.8 million during the three months ended March 31, 2020 related to the Deferred Compensation Plan. We recorded compensation expense of $1.9 million during the three months ended March 31, 2019 related to the Deferred Compensation Plan.
As of March 31, 2020, there were 131,989 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 encourage our employees to make our business more successful by providing equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase the Company's shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. The Company filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of March 31, 2020, 137,923 shares of our common stock had been issued under the ESPP.
v3.20.1
Rental Income
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Rental Income Rental Income
The Operating Partnership is the lessor and the sublessor to tenants under operating 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 revenues were as follows (in thousands):
 
 
Three Months Ended  
 March 31, 2020
 
Three Months Ended  
 March 31, 2019
Fixed lease payments
 
$
194,224

 
$
211,430

Variable lease payments
 
27,168

 
27,479

Total lease payments
 
$
221,392

 
$
238,909

Amortization of acquired above and below-market leases
 
1,239

 
1,209

Total rental revenue
 
$
222,631

 
$
240,118


v3.20.1
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Net income $ 127,114 $ 52,769
Other comprehensive loss:    
Decrease in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments (50,735) (20,884)
(Decrease) increase in unrealized value of marketable securities (4,534) 768
Other comprehensive loss (55,269) (20,116)
Comprehensive income 71,845 32,653
Net income attributable to noncontrolling interests and preferred units distributions (8,575) (5,239)
Net loss (income) attributable to noncontrolling interests 293 (237)
Other comprehensive loss attributable to noncontrolling interests 2,886 1,003
Comprehensive income attributable to SL Green/SLGOP 66,156 28,417
SL Green Operating Partnership    
Net income 127,114 52,769
Other comprehensive loss:    
Decrease in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments (50,735) (20,884)
(Decrease) increase in unrealized value of marketable securities (4,534) 768
Other comprehensive loss (55,269) (20,116)
Comprehensive income 71,845 32,653
Net loss (income) attributable to noncontrolling interests 293 (237)
Other comprehensive loss attributable to noncontrolling interests 2,886 1,003
Comprehensive income attributable to SL Green/SLGOP $ 75,024 $ 33,419
v3.20.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Commercial real estate properties, at cost:    
Land and land interests $ 1,662,840 $ 1,751,544
Building and improvements 5,417,965 5,154,990
Building leasehold and improvements 1,435,811 1,433,793
Right of use asset - financing leases 163,960 47,445
Right of use asset - operating leases 381,255 396,795
Total commercial real estate properties, at cost 9,061,831 8,784,567
Less: accumulated depreciation (2,130,033) (2,060,560)
Total commercial real estate properties, net 6,931,798 6,724,007
Assets held for sale 0 391,664
Cash and cash equivalents 554,195 166,070
Restricted cash 66,827 75,360
Investments in marketable securities 25,353 29,887
Tenant and other receivables, net of allowance of $11,876 and $12,369 in 2020 and 2019, respectively 88,587 43,968
Related party receivables 26,092 21,121
Deferred rents receivable, net of allowance of $11,711 and $12,477 in 2020 and 2019, respectively 310,138 283,011
Debt and preferred equity investments, net of discounts and deferred origination fees of $16,230 and $14,562 and allowances of $37,957 and $1,750 in 2020 and 2019, respectively 1,783,336 1,580,306
Investments in unconsolidated joint ventures 2,848,363 2,912,842
Deferred costs, net 232,274 205,283
Other assets 353,644 332,801
Total assets [1] 13,220,607 12,766,320
Liabilities    
Mortgages and other loans payable, net 1,987,073 2,183,253
Revolving credit facility, net 1,294,477 234,013
Unsecured term loans, net 1,494,470 1,494,024
Unsecured notes, net 1,247,246 1,496,847
Accrued interest payable 26,377 22,148
Other liabilities 214,968 177,080
Accounts payable and accrued expenses 158,750 166,905
Deferred revenue 116,197 114,052
Lease liability - financing leases 162,299 44,448
Lease liability - operating leases 363,990 381,671
Dividend and distributions payable 26,563 79,282
Security deposits 59,318 62,252
Liabilities related to assets held for sale 0 0
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities 100,000 100,000
Total liabilities [1] 7,251,728 6,555,975
Commitments and contingencies
Noncontrolling interests in Operating Partnership 358,895 409,862
Preferred units 266,019 283,285
Equity    
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2020 and December 31, 2019 221,932 221,932
Common stock, $0.01 par value, 160,000 shares authorized and 77,591 and 80,257 issued and outstanding at March 31, 2020 and December 31, 2019, respectively (including 1,055 and 1,055 shares held in treasury at March 31, 2020 and December 31, 2019, respectively) 776 803
Additional paid-in-capital 4,146,306 4,286,395
Treasury stock at cost (124,049) (124,049)
Accumulated other comprehensive loss (80,868) (28,485)
Retained earnings 1,099,369 1,084,719
Total SL Green stockholders' equity 5,263,466 5,441,315
Noncontrolling interests in other partnerships 80,499 75,883
Total equity 5,343,965 5,517,198
SL Green stockholders equity:    
Total liabilities and equity/capital 13,220,607 12,766,320
SL Green Operating Partnership    
Commercial real estate properties, at cost:    
Land and land interests 1,662,840 1,751,544
Building and improvements 5,417,965 5,154,990
Building leasehold and improvements 1,435,811 1,433,793
Right of use asset - financing leases 163,960 47,445
Right of use asset - operating leases 381,255 396,795
Total commercial real estate properties, at cost 9,061,831 8,784,567
Less: accumulated depreciation (2,130,033) (2,060,560)
Total commercial real estate properties, net 6,931,798 6,724,007
Assets held for sale 0 391,664
Cash and cash equivalents 554,195 166,070
Restricted cash 66,827 75,360
Investments in marketable securities 25,353 29,887
Tenant and other receivables, net of allowance of $11,876 and $12,369 in 2020 and 2019, respectively 88,587 43,968
Related party receivables 26,092 21,121
Deferred rents receivable, net of allowance of $11,711 and $12,477 in 2020 and 2019, respectively 310,138 283,011
Debt and preferred equity investments, net of discounts and deferred origination fees of $16,230 and $14,562 and allowances of $37,957 and $1,750 in 2020 and 2019, respectively 1,783,336 1,580,306
Investments in unconsolidated joint ventures 2,848,363 2,912,842
Deferred costs, net 232,274 205,283
Other assets 353,644 332,801
Total assets [2] 13,220,607 12,766,320
Liabilities    
Mortgages and other loans payable, net 1,987,073 2,183,253
Revolving credit facility, net 1,294,477 234,013
Unsecured term loans, net 1,494,470 1,494,024
Unsecured notes, net 1,247,246 1,496,847
Accrued interest payable 26,377 22,148
Other liabilities 214,968 177,080
Accounts payable and accrued expenses 158,750 166,905
Deferred revenue 116,197 114,052
Lease liability - financing leases 162,299 44,448
Lease liability - operating leases 363,990 381,671
Dividend and distributions payable 26,563 79,282
Security deposits 59,318 62,252
Liabilities related to assets held for sale 0 0
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities 100,000 100,000
Total liabilities [2] 7,251,728 6,555,975
Limited partner interests in SLGOP (4,145 and 4,196 limited partner common units outstanding at March 31, 2020 and December 31, 2019, respectively) 358,895 409,862
Preferred units 266,019 283,285
Equity    
Accumulated other comprehensive loss (80,868) (28,485)
SL Green stockholders equity:    
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2020 and December 31, 2019 221,932 221,932
SL Green partners' capital (807 and 834 general partner common units and 75,729 and 78,368 limited partner common units outstanding at March 31, 2020 and December 31, 2019, respectively) 5,122,402 5,247,868
Total SLGOP partners' capital 5,263,466 5,441,315
Noncontrolling interests in other partnerships 80,499 75,883
Total capital 5,343,965 5,517,198
Total liabilities and equity/capital $ 13,220,607 $ 12,766,320
[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: $199.0 million and $205.2 million of land, $501.2 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $61.7 million and $61.7 million of right of use assets, $17.4 million and $17.6 million of accumulated depreciation, $179.2 million and $169.5 million of other assets included in other line items, $468.6 million and $457.1 million of real estate debt, net, $1.1 million and $1.2 million of accrued interest payable, $57.9 million and $57.7 million of lease liabilities, and $45.8 million and $43.7 million of other liabilities included in other line items as of March 31, 2020 and December 31, 2019, respectively.
[2] 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: $199.0 million and $205.2 million of land, $501.2 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $61.7 million and $61.7 million of right of use assets, $17.4 million and $17.6 million of accumulated depreciation, $179.2 million and $169.5 million of other assets included in other line items, $468.6 million and $457.1 million of real estate debt, net, $1.1 million and $1.2 million of accrued interest payable, $57.9 million and $57.7 million of lease liabilities, and $45.8 million and $43.7 million of other liabilities included in other line items as of March 31, 2020 and December 31, 2019, respectively.
v3.20.1
Debt and Preferred Equity Investments - Rollforward of Net Book Balance (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]    
Balance at beginning of period $ 1,580,306 $ 2,099,393
Redemptions/Sales/Syndications/Amortization (161,548) (1,190,689)
Net change in loan loss reserves (36,207) 4,000
Balance at end of period 1,783,336 1,580,306
Debt Investments in Mortgage Loans    
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]    
Originations/Accretion 246,075 652,866
Preferred equity investments    
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]    
Originations/Accretion $ 154,710 $ 14,736
v3.20.1
Rental Income - Lease Income (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Leases [Abstract]    
Fixed lease payments $ 194,224 $ 211,430
Variable lease payments 27,168 27,479
Total lease payments 221,392 238,909
Amortization of acquired above and below-market leases 1,239 1,209
Total rental revenue $ 222,631 $ 240,118
v3.20.1
Debt and Preferred Equity Investments - Preferred Equity Investments (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Preferred equity investment    
Aggregate weighted average current yield (as a percent) 7.87%  
Carrying Value $ 1,783,336 $ 1,580,306
Preferred Equity, April 2021    
Preferred equity investment    
Future Funding Obligations 0  
Senior Financing 272,000  
Carrying Value 133,050 142,921
Preferred Equity, June 2022    
Preferred equity investment    
Future Funding Obligations 0  
Senior Financing 1,712,750  
Carrying Value 150,273 98,065
Preferred Equity, February 2027    
Preferred equity investment    
Future Funding Obligations 0  
Senior Financing 250,000  
Carrying Value $ 100,000 0
Preferred equity investments    
Preferred equity investment    
Aggregate weighted average current yield (as a percent) 9.87%  
Future Funding Obligations $ 0  
Senior Financing 2,234,750  
Carrying Value 383,323 240,986
Allowance for loan loss (15,631) (1,750)
Total after allowance for loan loss $ 367,692 $ 239,236
v3.20.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair value measurements, recurring and nonrecurring
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 at March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Marketable securities
$
25,353

 
$

 
$
25,353

 
$

Interest rate cap and swap agreements (included in other assets)
$
2

 
$

 
$
2

 
$

Liabilities:
 
 
 
 
 
 
 
Interest rate cap and swap agreements (included in other liabilities)
$
68,722

 
$

 
$
68,722

 
$

 
December 31, 2019
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Marketable securities
$
29,887

 
$

 
$
29,887

 
$

Interest rate cap and swap agreements (included in other assets)
$
4,419

 
$

 
$
4,419

 
$

Liabilities:
 
 
 
 
 
 
 
Interest rate cap and swap agreements (included in other liabilities)
$
29,110

 
$

 
$
29,110

 
$


Fair value, by balance sheet grouping
The following table provides the carrying value and fair value of these financial instruments as of March 31, 2020 and December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
 
Carrying Value (1)
 
Fair Value
 
Carrying Value (1)
 
Fair Value
 
 
 
 
 
 
 
 
Debt and preferred equity investments
$
1,783,336

 
(2) 
 
$
1,580,306

 
(2) 
 
 
 
 
 
 
 
 
Fixed rate debt
$
3,032,513

 
$
3,117,072

 
$
3,536,286

 
$
3,642,770

Variable rate debt
3,130,306

 
3,125,267

 
2,018,434

 
2,018,714

 
$
6,162,819

 
$
6,242,339

 
$
5,554,720

 
$
5,661,484

(1)
Amounts exclude net deferred financing costs.
(2)
At March 31, 2020, debt and preferred equity investments had an estimated fair value ranging between $1.6 billion and $1.8 billion. At December 31, 2019, debt and preferred equity investments had an estimated fair value ranging between $1.6 billion and $1.7 billion.
v3.20.1
Stockholders' Equity of the Company (Tables)
3 Months Ended
Mar. 31, 2020
Stockholders' Equity Note [Abstract]  
Class of Treasury Stock
At March 31, 2020, repurchases executed under the program were as follows:
Period
Shares repurchased
Average price paid per share
Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017
8,342,411
$101.64
8,342,411
Year ended 2018
9,744,911
$96.22
18,087,322
Year ended 2019
4,596,171
$83.62
22,683,493
First quarter 2020
2,637,099
$83.25
25,320,592

Schedule of Common Stock Issued and Proceeds Received Dividend Reinvestments
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three months ended March 31, 2020 and 2019, respectively (dollars in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Shares of common stock issued
1,777

 
540

Dividend reinvestments/stock purchases under the DRSPP
$
166

 
$
47


Schedule of Earnings Per Share
SL Green's earnings per share for the three months ended March 31, 2020 and 2019 are computed as follows (in thousands):
 
Three Months Ended March 31,
Numerator
2020
 
2019
Basic Earnings:
 
 
 
Income attributable to SL Green common stockholders
$
114,801

 
$
43,792

Less: distributed earnings allocated to participating securities
(113
)
 
(124
)
Less: undistributed earnings allocated to participating securities
(448
)
 

Net income attributable to SL Green common stockholders (numerator for basic earnings per share)
$
114,240

 
$
43,668

Add back: dilutive effect of earnings allocated to participating securities
113

 
124

Add back: undistributed earnings allocated to participating securities
448

 

Add back: effect of dilutive securities (redemption of units to common shares)
6,202

 
2,278

Income attributable to SL Green common stockholders (numerator for diluted earnings per share)
$
121,003

 
$
46,070

 
Three Months Ended March 31,
Denominator
2020
 
2019
Basic Shares:
 
 
 
Weighted average common stock outstanding
77,864

 
83,313

Effect of Dilutive Securities:
 
 
 
Operating Partnership units redeemable for common shares
4,220

 
4,333

Stock-based compensation plans
483

 
164

Diluted weighted average common stock outstanding
82,567

 
87,810


v3.20.1
Mortgages and Other Loans Payable (Tables)
3 Months Ended
Mar. 31, 2020
Mortgages and Other Loans Payable  
Schedule of first mortgages and other loans payable collateralized by the respective properties and assignment of leases
The mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments at March 31, 2020 and December 31, 2019, respectively, were as follows (dollars in thousands):
Property
 
Initial Maturity
Date
Final Maturity Date (1)
 
Interest
Rate (2)
 
March 31, 2020
 
December 31, 2019
Fixed Rate Debt:
 
 
 
 
 
 
 
 
 
 
100 Church Street
 
July 2022
July 2022
 
 
4.68
%
 
$
208,197

 
$
209,296

420 Lexington Avenue
 
October 2024
October 2040
 
 
3.99
%
 
297,885

 
299,165

400 East 58th Street (3)
 
November 2026
November 2026
 
 
3.00
%
 
38,881

 
39,094

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

1080 Amsterdam (4)
 
February 2027
February 2027
 
 
3.59
%
 
34,947

 
35,123

762 Madison Avenue (5)
 
 
 
 
 
 
 

 
771

315 West 33rd Street (6)
 
 
 
 
 
 
 

 
250,000

Total fixed rate debt
 
 
 
 
 
 
 
$
1,129,910

 
$
1,383,449

Floating Rate Debt:
 
 
 
 
 
 
 
 
 
 
FHLB Facility
 
June 2020
June 2020
 
L+
0.17%
 
$
14,500

 
$
14,500

2017 Master Repurchase Agreement
 
June 2020
June 2022
 
L+
2.09%
 
137,473

 
152,684

FHLB Facility
 
July 2020
July 2020
 
L+
0.17%
 
10,000

 

133 Greene Street
 
August 2020
August 2021
 
L+
2.00%
 
15,523

 
15,523

FHLB Facility
 
August 2020
August 2020
 
L+
0.26%
 
15,000

 

106 Spring Street
 
January 2021
January 2022
 
L+
2.50%
 
38,025

 
38,025

FHLB Facility
 
January 2021
January 2021
 
L+
0.18%
 
35,000

 

609 Fifth Avenue
 
March 2021
March 2024
 
L+
2.40%
 
55,416

 
53,773

185 Broadway (7)
 
November 2021
November 2023
 
L+
2.85%
 
130,791

 
120,110

712 Madison Avenue
 
December 2021
December 2022
 
L+
1.85%
 
28,000

 
28,000

410 Tenth Avenue (8)
 
May 2022
May 2024
 
L+
2.23%
 
350,578

 
330,819

719 Seventh Avenue
 
September 2023
September 2023
 
L+
1.20%
 
50,000

 
50,000

FHLB Facility (9)
 
 
 
 
 


 

 
10,000

FHLB Facility (9)
 
 
 
 
 


 

 
15,000

Total floating rate debt
 
 
 
 
 
 
 
$
880,306

 
$
828,434

Total mortgages and other loans payable
 
 
 
 
 
 
 
$
2,010,216

 
$
2,211,883

Deferred financing costs, net of amortization
 
 
 
 
 
 
 
(23,143
)
 
(28,630
)
Total mortgages and other loans payable, net
 
 
 
 
 
 
 
$
1,987,073

 
$
2,183,253

(1)
Reflects exercise of all available extension options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(2)
Interest rate as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(3)
The loan carries a fixed interest rate of 300 basis points for the first five years and is prepayable without penalty at the end of the fifth year.
(4)
The loan is comprised of a $34.0 million mortgage loan and $0.9 million mezzanine loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of fifth year.
(5)
In January 2020, the Company closed on the acquisition of the remaining 10% interest in this property from our joint venture partner. As part of this transaction, the loan was repaid.
(6)
In March 2020, the loan was assumed by the buyer in connection with the sale of the property.
(7)
This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three-year term with two one-year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.
(8)
This loan is a $465.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three-year term with two one-year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.
(9)
In 2020, the loan was repaid.
v3.20.1
Financial Instruments: Derivatives and Hedging
3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments: Derivatives and Hedging 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, collar 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 at March 31, 2020 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 Cap
$
300,000

 
3.750
%
 
May 2019
 
May 2020
 
Other Assets
 
$

Interest Rate Swap
100,000

 
1.928
%
 
December 2017
 
November 2020
 
Other Liabilities
 
(1,029
)
Interest Rate Swap
100,000

 
1.934
%
 
December 2017
 
November 2020
 
Other Liabilities
 
(1,033
)
Interest Rate Cap
111,869

 
3.500
%
 
December 2019
 
December 2020
 
Other Assets
 

Interest Rate Cap
85,000

 
4.000
%
 
March 2019
 
March 2021
 
Other Assets
 
2

Interest Rate Swap
200,000

 
1.131
%
 
July 2016
 
July 2023
 
Other Liabilities
 
(5,352
)
Interest Rate Swap
100,000

 
1.161
%
 
July 2016
 
July 2023
 
Other Liabilities
 
(2,774
)
Interest Rate Swap
150,000

 
2.696
%
 
January 2019
 
January 2024
 
Other Liabilities
 
(13,202
)
Interest Rate Swap
150,000

 
2.721
%
 
January 2019
 
January 2026
 
Other Liabilities
 
(19,338
)
Interest Rate Swap
200,000

 
2.740
%
 
January 2019
 
January 2026
 
Other Liabilities
 
(25,994
)
 
 
 
 
 
 
 
 
 
 
 
$
(68,720
)

No gains or losses on the changes in the fair values were included in interest expense in the consolidated statements of operations during the three months ended March 31, 2020 or 2019.
The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of March 31,
2020, 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 $69.2 million. As of March 31, 2020, the Company has not posted 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 $70.6 million at March 31, 2020.
Gains and losses on terminated hedges are included in accumulated other comprehensive income (loss), and are recognized into earnings over the term of the related mortgage obligation. Over time, the realized and unrealized gains and losses held in accumulated other comprehensive loss will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that $16.7 million of the current balance held in accumulated other comprehensive loss will be reclassified into interest expense and $5.8 million of the portion related to our share of joint venture accumulated other comprehensive loss will be reclassified into equity in net income 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 March 31, 2020 and 2019, respectively (in thousands):
 

Amount of Loss
Recognized in
Other Comprehensive
Loss

Location of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income

Amount of (Loss) Gain Reclassified from
Accumulated Other
Comprehensive Loss into Income


Three Months Ended March 31,


Three Months Ended March 31,
Derivative

2020

2019


2020

2019
Interest Rate Swaps/Caps

$
(45,082
)
 
$
(11,963
)

Interest expense

$
(725
)
 
$
535

Share of unconsolidated joint ventures' derivative instruments

(7,089
)
 
(5,369
)

Equity in net loss from unconsolidated joint ventures

(711
)
 
368



$
(52,171
)

$
(17,332
)



$
(1,436
)

$
903


v3.20.1
Corporate Indebtedness
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Corporate Indebtedness Mortgages and Other Loans Payable
The mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments at March 31, 2020 and December 31, 2019, respectively, were as follows (dollars in thousands):
Property
 
Initial Maturity
Date
Final Maturity Date (1)
 
Interest
Rate (2)
 
March 31, 2020
 
December 31, 2019
Fixed Rate Debt:
 
 
 
 
 
 
 
 
 
 
100 Church Street
 
July 2022
July 2022
 
 
4.68
%
 
$
208,197

 
$
209,296

420 Lexington Avenue
 
October 2024
October 2040
 
 
3.99
%
 
297,885

 
299,165

400 East 58th Street (3)
 
November 2026
November 2026
 
 
3.00
%
 
38,881

 
39,094

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

1080 Amsterdam (4)
 
February 2027
February 2027
 
 
3.59
%
 
34,947

 
35,123

762 Madison Avenue (5)
 
 
 
 
 
 
 

 
771

315 West 33rd Street (6)
 
 
 
 
 
 
 

 
250,000

Total fixed rate debt
 
 
 
 
 
 
 
$
1,129,910

 
$
1,383,449

Floating Rate Debt:
 
 
 
 
 
 
 
 
 
 
FHLB Facility
 
June 2020
June 2020
 
L+
0.17%
 
$
14,500

 
$
14,500

2017 Master Repurchase Agreement
 
June 2020
June 2022
 
L+
2.09%
 
137,473

 
152,684

FHLB Facility
 
July 2020
July 2020
 
L+
0.17%
 
10,000

 

133 Greene Street
 
August 2020
August 2021
 
L+
2.00%
 
15,523

 
15,523

FHLB Facility
 
August 2020
August 2020
 
L+
0.26%
 
15,000

 

106 Spring Street
 
January 2021
January 2022
 
L+
2.50%
 
38,025

 
38,025

FHLB Facility
 
January 2021
January 2021
 
L+
0.18%
 
35,000

 

609 Fifth Avenue
 
March 2021
March 2024
 
L+
2.40%
 
55,416

 
53,773

185 Broadway (7)
 
November 2021
November 2023
 
L+
2.85%
 
130,791

 
120,110

712 Madison Avenue
 
December 2021
December 2022
 
L+
1.85%
 
28,000

 
28,000

410 Tenth Avenue (8)
 
May 2022
May 2024
 
L+
2.23%
 
350,578

 
330,819

719 Seventh Avenue
 
September 2023
September 2023
 
L+
1.20%
 
50,000

 
50,000

FHLB Facility (9)
 
 
 
 
 


 

 
10,000

FHLB Facility (9)
 
 
 
 
 


 

 
15,000

Total floating rate debt
 
 
 
 
 
 
 
$
880,306

 
$
828,434

Total mortgages and other loans payable
 
 
 
 
 
 
 
$
2,010,216

 
$
2,211,883

Deferred financing costs, net of amortization
 
 
 
 
 
 
 
(23,143
)
 
(28,630
)
Total mortgages and other loans payable, net
 
 
 
 
 
 
 
$
1,987,073

 
$
2,183,253

(1)
Reflects exercise of all available extension options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(2)
Interest rate as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(3)
The loan carries a fixed interest rate of 300 basis points for the first five years and is prepayable without penalty at the end of the fifth year.
(4)
The loan is comprised of a $34.0 million mortgage loan and $0.9 million mezzanine loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of fifth year.
(5)
In January 2020, the Company closed on the acquisition of the remaining 10% interest in this property from our joint venture partner. As part of this transaction, the loan was repaid.
(6)
In March 2020, the loan was assumed by the buyer in connection with the sale of the property.
(7)
This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three-year term with two one-year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.
(8)
This loan is a $465.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three-year term with two one-year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.
(9)
In 2020, the loan was repaid.

At March 31, 2020 and December 31, 2019, the gross book value of the properties and debt and preferred equity investments collateralizing the mortgages and other loans payable was approximately $3.0 billion and $3.3 billion, respectively.
Federal Home Loan Bank of New York ("FHLB") Facility
The Company's wholly-owned subsidiary, Ticonderoga Insurance Company, or Ticonderoga, a Vermont licensed captive insurance company, is a member of the Federal Home Loan Bank of New York, or FHLBNY. As a member, Ticonderoga may borrow funds from the FHLBNY in the form of secured advances that bear interest at a floating rate. As of March 31, 2020, we had a total of $74.5 million in outstanding secured advances with an average spread of 19 basis points over 30-day LIBOR.
Master Repurchase Agreement
The Company entered into a Master Repurchase Agreement, or MRA, known as the 2017 MRA, which provides us with the ability to sell certain mortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to recollateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity. As of March 31, 2020, there have been no margin calls on the 2017 MRA.
The 2017 MRA has a maximum facility capacity of $300.0 million. In April 2018, we increased the maximum facility capacity to $400.0 million. The facility bears interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate. In June 2018, we exercised a one year extension option and in June 2019, we exercised another one year extension option. In August 2019, we amended our agreement to include two additional one year extension options. At March 31, 2020, the facility had a carrying value of $137.3 million, net of deferred financing costs.
Corporate Indebtedness
2017 Credit Facility
In November 2017, we entered into an amendment to the credit facility, referred to as the 2017 credit facility, that was originally entered into by the Company in November 2012, or the 2012 credit facility. As of March 31, 2020, the 2017 credit facility consisted of a $1.5 billion revolving credit facility, a $1.3 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of March 31, 2022, March 31, 2023, and November 21, 2024, respectively. The revolving credit facility has two six-month, as-of-right extension options to March 31, 2023. 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 or other financial institutions.
As of March 31, 2020, the 2017 credit facility bore interest at a spread over 30-day LIBOR ranging from (i) 82.5 basis points to 155 basis points for loans under the revolving credit facility, (ii) 90 basis points to 175 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.
At March 31, 2020, the applicable spread was 100 basis points for the revolving credit facility, 110 basis points for Term Loan A, and 100 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of March 31, 2020, the facility fee was 20 basis points.
As of March 31, 2020, we had $11.8 million of outstanding letters of credit, $1.3 billion drawn under the revolving credit facility and $1.5 billion outstanding under the term loan facilities, with total undrawn capacity of $0.2 billion under the 2017 credit facility. At March 31, 2020 and December 31, 2019, the revolving credit facility had a carrying value of $1.3 billion and $0.2 billion, respectively, net of deferred financing costs. At March 31, 2020 and December 31, 2019, the term loan facilities had a carrying value of $1.5 billion and $1.5 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2017 credit facility.
The 2017 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).
Senior Unsecured Notes
The following table sets forth our senior unsecured notes and other related disclosures as of March 31, 2020 and December 31, 2019, respectively, by scheduled maturity date (dollars in thousands):
Issuance
 
March 31,
2020
Unpaid
Principal
Balance
 
March 31,
2020
Accreted
Balance
 
December 31,
2019
Accreted
Balance
 
Interest
Rate (1)
 
Initial Term
(in Years)
 
Maturity Date
August 7, 2018 (2) (3)
 
$
350,000

 
$
350,000

 
$
350,000

 
L+
0.98
%
 
3
 
August 2021
October 5, 2017 (2)
 
500,000

 
499,722

 
499,695

 
 
3.25
%
 
5
 
October 2022
November 15, 2012 (4)
 
300,000

 
302,881

 
303,142

 
 
4.50
%
 
10
 
December 2022
December 17, 2015 (5)
 
100,000

 
100,000

 
100,000

 
 
4.27
%
 
10
 
December 2025
March 16, 2020 (6)
 

 

 
250,000

 
 
 
 
 
 
 
 
 
$
1,250,000

 
$
1,252,603

 
$
1,502,837

 
 
 
 
 
 
 
Deferred financing costs, net
 
 
 
(5,357
)
 
(5,990
)
 
 
 
 
 
 
 
 
 
$
1,250,000

 
$
1,247,246

 
$
1,496,847

 
 
 
 
 
 
 
(1)
Interest rate as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate notes are presented with the stated spread over the 3-month LIBOR, unless otherwise specified.
(2)
Issued by the Operating Partnership with the Company as the guarantor.
(3)
The notes are subject to redemption at the Company's option, in whole but not in part, at a redemption price equal to 100% of the principal amount of the notes, plus unpaid accrued interest thereon to the redemption date. In April 2020, the Company entered into $350.0 million of fixed rate interest swaps at a rate of 0.54375% through August 2021.
(4)
In October 2017, the Company and the Operating Partnership as co-obligors issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334% of par.
(5)
Issued by the Company and the Operating Partnership as co-obligors.
(6)
In March 2020, the notes were repaid.
Restrictive Covenants
The terms of the 2017 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of March 31, 2020 and December 31, 2019, we were in compliance with all such covenants.
Junior Subordinated Deferrable Interest Debentures
In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments. The Trust preferred securities are redeemable at the option of the Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense.
Principal Maturities
Combined aggregate principal maturities of mortgages and other loans payable, the 2017 credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of March 31, 2020, including as-of-right extension options, were as follows (in thousands):
 
Scheduled
Amortization
 
Mortgages and Other Loans Payable
 
Revolving
Credit
Facility
 
Unsecured Term Loans
 
Trust
Preferred
Securities
 
Senior
Unsecured
Notes
 
Total
 
Joint
Venture
Debt
Remaining 2020
$
8,351

 
$
55,023

 
$

 
$

 
$

 
$

 
$
63,374

 
$
114,897

2021
11,638

 
231,815

 

 

 

 
350,000

 
593,453

 
884,953

2022
9,430

 
741,252

 

 

 

 
800,000

 
1,550,682

 
268,952

2023
7,301

 
50,000

 
1,300,000

 
1,300,000

 

 

 
2,657,301

 
311,436

2024
6,032

 
272,749

 

 
200,000

 

 

 
478,781

 
617,022

Thereafter
3,258

 
613,367

 

 

 
100,000

 
100,000

 
816,625

 
1,934,823

 
$
46,010

 
$
1,964,206

 
$
1,300,000

 
$
1,500,000

 
$
100,000

 
$
1,250,000

 
$
6,160,216

 
$
4,132,083


Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Interest expense before capitalized interest
$
56,813

 
$
60,810

Interest on financing leases
1,663

 
804

Interest capitalized
(20,483
)
 
(10,509
)
Interest income
(499
)
 
(580
)
Interest expense, net
$
37,494

 
$
50,525


v3.20.1
Partners' Capital of the Operating Partnership
3 Months Ended
Mar. 31, 2020
Stockholders' Equity  
Partners' Capital of the Operating Partnership Stockholders’ Equity of the Company
Common Stock
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of March 31, 2020, 76,535,433 shares of common stock and no shares of excess stock were issued and outstanding.
Share Repurchase Program
In August 2016, our Board of Directors approved a share repurchase program under which we can buy up to $1.0 billion of shares of our common stock. The Board of Directors has since authorized four 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, and fourth quarter of 2019 bringing the total program size to $3.0 billion.
At March 31, 2020, repurchases executed under the program were as follows:
Period
Shares repurchased
Average price paid per share
Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017
8,342,411
$101.64
8,342,411
Year ended 2018
9,744,911
$96.22
18,087,322
Year ended 2019
4,596,171
$83.62
22,683,493
First quarter 2020
2,637,099
$83.25
25,320,592

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 par for cash at our option. 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 2018, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.
The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three months ended March 31, 2020 and 2019, respectively (dollars in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Shares of common stock issued
1,777

 
540

Dividend reinvestments/stock purchases under the DRSPP
$
166

 
$
47


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.
SL Green's earnings per share for the three months ended March 31, 2020 and 2019 are computed as follows (in thousands):
 
Three Months Ended March 31,
Numerator
2020
 
2019
Basic Earnings:
 
 
 
Income attributable to SL Green common stockholders
$
114,801

 
$
43,792

Less: distributed earnings allocated to participating securities
(113
)
 
(124
)
Less: undistributed earnings allocated to participating securities
(448
)
 

Net income attributable to SL Green common stockholders (numerator for basic earnings per share)
$
114,240

 
$
43,668

Add back: dilutive effect of earnings allocated to participating securities
113

 
124

Add back: undistributed earnings allocated to participating securities
448

 

Add back: effect of dilutive securities (redemption of units to common shares)
6,202

 
2,278

Income attributable to SL Green common stockholders (numerator for diluted earnings per share)
$
121,003

 
$
46,070

 
Three Months Ended March 31,
Denominator
2020
 
2019
Basic Shares:
 
 
 
Weighted average common stock outstanding
77,864

 
83,313

Effect of Dilutive Securities:
 
 
 
Operating Partnership units redeemable for common shares
4,220

 
4,333

Stock-based compensation plans
483

 
164

Diluted weighted average common stock outstanding
82,567

 
87,810


The Company has excluded 1,204,736 and 1,211,943 common stock equivalents from the calculation of diluted shares outstanding for the three months ended March 31, 2020 and the three months ended March 31, 2019, respectively, as they were anti-dilutive.
Accumulated Other Comprehensive Loss
The following tables set forth the changes in accumulated other comprehensive loss by component as of March 31, 2020 (in thousands):
 
Net unrealized loss on derivative instruments (1)
 
SL Green’s share
of joint venture
net unrealized loss on derivative
instruments (2)
 
Net unrealized gain (loss) on marketable securities
 
Total
Balance at December 31, 2019
$
(22,780
)
 
$
(7,982
)
 
$
2,277

 
$
(28,485
)
Other comprehensive loss before reclassifications
(42,728
)
 
(6,709
)
 
(4,306
)
 
(53,743
)
Amounts reclassified from accumulated other comprehensive loss
687

 
673

 

 
1,360

Balance at March 31, 2020
$
(64,821
)
 
$
(14,018
)
 
$
(2,029
)
 
$
(80,868
)
(1)
Amount reclassified from accumulated other comprehensive loss is included in interest expense in the respective consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the deferred net (gains) losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized (loss) gain on derivative instrument, was $(0.4) million and $(0.7) million, respectively.
(2)
Amount reclassified from accumulated other comprehensive loss is included in equity in net loss from unconsolidated joint ventures in the respective consolidated statements of operations.
SL Green Operating Partnership  
Stockholders' Equity  
Partners' Capital of the Operating Partnership Partners' Capital of the Operating Partnership
The Company is the sole managing general partner of the Operating Partnership and at March 31, 2020 owned 76,535,433 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.
Limited Partner Units
As of March 31, 2020, limited partners other than SL Green owned 5.14%, or 4,144,555 common units, of the Operating Partnership.
Preferred Units
Preferred units not owned by SL Green are further described in Note 11, “Noncontrolling Interests on the Company’s Consolidated Financial Statements - Preferred Units of Limited Partnership Interest in the Operating Partnership.”
Earnings per Unit
The Operating Partnership's earnings per unit for the three months ended March 31, 2020 and 2019, respectively, are computed as follows (in thousands):
 
Three Months Ended March 31,
Numerator
2020

2019
Basic Earnings:
 
 
 
Income attributable to SLGOP common unitholders
$
121,003

 
$
46,070

Less: distributed earnings allocated to participating securities
(113
)
 
(124
)
Less: undistributed earnings allocated to participating securities
(448
)
 

Net Income attributable to SLGOP common unitholders (numerator for basic earnings per unit)
$
120,442

 
$
45,946

Add back: dilutive effect of earnings allocated to participating securities
113

 
124

Add back: undistributed earnings allocated to participating securities
448

 

Income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
$
121,003

 
$
46,070

 
Three Months Ended March 31,
Denominator
2020

2019
Basic units:
 
 
 
Weighted average common units outstanding
82,084

 
87,646

Effect of Dilutive Securities:
 
 
 
Stock-based compensation plans
483

 
164

Diluted weighted average common units outstanding
82,567

 
87,810


The Operating Partnership has excluded 1,204,736 and 1,211,943 common unit equivalents from the diluted units outstanding for the three months ended March 31, 2020 and the three months ended March 31, 2019, respectively, as they were anti-dilutive.
v3.20.1
Consolidated Statement of Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In-Capital
Treasury Stock
Accumulated Other Comprehensive Loss
Retained Earnings
Noncontrolling Interests
Series I Preferred Stock
Preferred Stock
Cumulative Effect, Period Of Adoption, Adjustment
Cumulative Effect, Period Of Adoption, Adjustment
Retained Earnings
Cumulative Effect, Period Of Adoption, Adjusted Balance
Cumulative Effect, Period Of Adoption, Adjusted Balance
Common Stock
Cumulative Effect, Period Of Adoption, Adjusted Balance
Additional Paid-In-Capital
Cumulative Effect, Period Of Adoption, Adjusted Balance
Treasury Stock
Cumulative Effect, Period Of Adoption, Adjusted Balance
Accumulated Other Comprehensive Loss
Cumulative Effect, Period Of Adoption, Adjusted Balance
Retained Earnings
Cumulative Effect, Period Of Adoption, Adjusted Balance
Noncontrolling Interests
Cumulative Effect, Period Of Adoption, Adjusted Balance
Series I Preferred Stock
Preferred Stock
Beginning Balance at Dec. 31, 2018 $ 5,947,855 $ 847 $ 4,508,685 $ (124,049) $ 15,108 $ 1,278,998 $ 46,334 $ 221,932                    
Beginning Balance (in shares) at Dec. 31, 2018   83,684                                
Increase (Decrease) in Stockholders' Equity                                    
Net income (loss) 47,767         47,530 237                      
Other comprehensive loss (19,113)       (19,113)                          
Preferred dividends (3,738)         (3,738)                        
DRSPP proceeds (in shares)   1                                
DRSPP proceeds 47   47                              
Conversion of units of the Operating Partnership to common stock (in shares)   5                                
Conversion of units in the Operating Partnership for common stock 446 446                              
Reallocation of noncontrolling interest in the Operating Partnership (28,932)         (28,932)                        
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings (in shares)   (20)                                
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings 4,835   4,835                              
Repurchases of common stock (in shares)   (398)                                
Repurchases of common stock (34,243) $ (4) (21,432)     12,807                        
Contributions to consolidated joint venture interests 161           161                      
Cash distributions to noncontrolling interests (208)           (208)                      
Cash distributions declared (per common share, none of which represented a return of capital for federal income tax purposes) (70,554)         (70,554)                        
Ending Balance at Mar. 31, 2019 5,844,323 $ 843 4,492,581 (124,049) (4,005) 1,210,497 46,524 221,932                    
Ending Balance (in shares) at Mar. 31, 2019   83,272                                
Beginning Balance at Dec. 31, 2018 5,947,855 $ 847 4,508,685 (124,049) 15,108 1,278,998 46,334 221,932                    
Beginning Balance (in shares) at Dec. 31, 2018   83,684                                
Ending Balance at Dec. 31, 2019 5,517,198 $ 803 4,286,395 (124,049) (28,485) 1,084,719 75,883 221,932     $ 5,478,014 $ 803 $ 4,286,395 $ (124,049) $ (28,485) $ 1,045,535 $ 75,883 $ 221,932
Ending Balance (Accounting Standards Update 2016-13) at Dec. 31, 2019                 $ (39,184) $ (39,184)                
Ending Balance (in shares) at Dec. 31, 2019   79,202                                
Increase (Decrease) in Stockholders' Equity                                    
Net income (loss) 118,246         118,539 (293)                      
Acquisition of subsidiary interest from noncontrolling interest (1,536)   (3,123)       1,587                      
Other comprehensive loss (52,383)       (52,383)                          
Preferred dividends (3,738)         (3,738)                        
DRSPP proceeds (in shares)   2                                
DRSPP proceeds 166   166                              
Conversion of units of the Operating Partnership to common stock (in shares)   1                                
Conversion of units in the Operating Partnership for common stock 84   84                              
Reallocation of noncontrolling interest in the Operating Partnership 38,529         38,529                        
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings (in shares)   (33)                                
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings 5,502   5,503                              
Repurchases of common stock (in shares)   (2,637)                                
Repurchases of common stock (219,576) $ (26) (142,719)     (76,831)                        
Contributions to consolidated joint venture interests 3,814           3,814                      
Cash distributions to noncontrolling interests (492)           (492)                      
Cash distributions declared (per common share, none of which represented a return of capital for federal income tax purposes) (22,665)         (22,665)                        
Ending Balance at Mar. 31, 2020 $ 5,343,965 $ 776 $ 4,146,306 $ (124,049) $ (80,868) $ 1,099,369 $ 80,499 $ 221,932                    
Ending Balance (in shares) at Mar. 31, 2020   76,535                                
v3.20.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Allowance for doubtful accounts receivable $ 11,876 $ 12,369
Allowance for deferred rents receivable 11,711 12,477
Debt and preferred equity investments, discount and deferred origination fees 16,230 14,562
Allowance for loan and lease losses, real estate $ 37,957 $ 1,750
Preferred stock, par value (in dollars per share) $ 0.01  
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 160,000,000 160,000,000
Common stock, shares issued (in shares) 77,591,000 80,257,000
Common stock, shares outstanding (in shares) 77,591,000 80,257,000
Treasury stock, shares (in shares) 1,055,000 1,055,000
Land and land interests $ 1,662,840 $ 1,751,544
Building and improvements 5,417,965 5,154,990
Building leasehold and improvements 1,435,811 1,433,793
Right of use asset - financing leases 163,960 47,445
Accumulated depreciation 2,130,033 2,060,560
Other assets 353,644 332,801
Mortgages and other loans payable, net 1,987,073 2,183,253
Accrued interest payable 26,377 22,148
Lease liability - financing leases 162,299 44,448
Other liabilities $ 214,968 $ 177,080
Series I Preferred Stock    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, liquidation preference (in dollars per share) $ 25.00 $ 25.00
Preferred stock, shares issued (in shares) 9,200,000 9,200,000
Preferred stock, shares outstanding (in shares) 9,200,000 9,200,000
SL Green Operating Partnership    
Allowance for doubtful accounts receivable $ 11,876 $ 12,369
Allowance for deferred rents receivable 11,711 12,477
Debt and preferred equity investments, discount and deferred origination fees 16,230 14,562
Allowance for loan and lease losses, real estate $ 37,957 $ 1,750
Limited partner interests in Operating Partnership, limited partner common units outstanding (shares) 4,145,000 4,196,000
SL Green partner's capital, general partner common units outstanding (shares) 807,000 834,000
SL Green partners' capital, limited partner common units outstanding (shares) 75,729,000 78,368,000
Land and land interests $ 1,662,840 $ 1,751,544
Building and improvements 5,417,965 5,154,990
Building leasehold and improvements 1,435,811 1,433,793
Right of use asset - financing leases 163,960 47,445
Accumulated depreciation 2,130,033 2,060,560
Other assets 353,644 332,801
Mortgages and other loans payable, net 1,987,073 2,183,253
Accrued interest payable 26,377 22,148
Lease liability - financing leases 162,299 44,448
Other liabilities $ 214,968 $ 177,080
SL Green Operating Partnership | Series I Preferred Stock    
Preferred units, liquidation preference (in dollars per share) $ 25.00 $ 25.00
Preferred units, shares issued (in shares) 9,200,000 9,200,000
Preferred units, shares outstanding (in shares) 9,200,000 9,200,000
Consolidated VIEs    
Land and land interests $ 199,000 $ 205,200
Building and improvements 501,200 481,900
Building leasehold and improvements 2,000 2,000
Right of use asset - financing leases 61,700 61,700
Accumulated depreciation 17,400 17,600
Other assets 179,200 169,500
Mortgages and other loans payable, net 468,600 457,100
Accrued interest payable 1,100 1,200
Lease liability - financing leases 57,900 57,700
Other liabilities 45,800 43,700
Consolidated VIEs | SL Green Operating Partnership    
Land and land interests 199,000 205,200
Building and improvements 501,200 481,900
Building leasehold and improvements 2,000 2,000
Right of use asset - financing leases 61,700 61,700
Accumulated depreciation 17,400 17,600
Other assets 179,200 169,500
Mortgages and other loans payable, net 468,600 457,100
Accrued interest payable 1,100 1,200
Lease liability - financing leases 57,900 57,700
Other liabilities $ 45,800 $ 43,700
v3.20.1
Properties Held for Sale and Property Dispositions (Details)
$ in Millions
1 Months Ended
Mar. 31, 2020
USD ($)
ft²
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Approximate Square Feet | ft² 29,864,846
315 West 33rd Street  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Sales Price $ 446.5
Approximate Square Feet | ft² 492,987
Gain (loss) $ 72.3
Accrued employee compensation in connection with realization of investment $ 6.0
v3.20.1
Financial Instruments: Derivatives and Hedging (Details) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Financial Instruments: Derivatives and Hedging      
Fair Value $ 2,000   $ 4,419,000
Gain (loss) from changes in fair value 0 $ 0  
Fair value of derivatives in a net liability position 69,200,000    
Aggregate termination value 70,600,000    
Estimated current balance held in accumulated other comprehensive loss to be reclassified into earnings within the next 12 months 16,700,000    
Share of joint venture of accumulated other comprehensive loss reclassified into equity in net income from unconsolidated joint ventures within the next 12 months 5,800,000    
Amount of Loss Recognized in Other Comprehensive Loss (52,171,000) (17,332,000)  
Amount of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income (1,436,000) 903,000  
Interest Rate Cap Expiring May 2020      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 300,000,000    
Strike Rate 3.75%    
Fair Value $ 0    
Interest Rate Swap Expiring November 2020      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 100,000,000    
Strike Rate 1.928%    
Fair Value $ (1,029,000)    
Interest Rate Swap Expiring November 2020, 2      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 100,000,000    
Strike Rate 1.934%    
Fair Value $ (1,033,000)    
Interest Rate Swap Expiring December 2020      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 111,869,000    
Strike Rate 3.50%    
Fair Value $ 0    
Interest Rate Cap Expiring March 2021      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 85,000,000    
Strike Rate 4.00%    
Fair Value $ 2,000    
Interest Rate Swap Expiring in July 2023      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 200,000,000    
Strike Rate 1.131%    
Fair Value $ (5,352,000)    
Interest Rate Swap Expiring in July 2023, 2      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 100,000,000    
Strike Rate 1.161%    
Fair Value $ (2,774,000)    
Interest Rate Swap Expiring January 2024      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 150,000,000    
Strike Rate 2.696%    
Fair Value $ (13,202,000)    
Interest Rate Swap Expiring January 2026      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 150,000,000    
Strike Rate 2.721%    
Fair Value $ (19,338,000)    
Interest Rate Swap Expiring January 2026, 2      
Financial Instruments: Derivatives and Hedging      
Notional Value $ 200,000,000    
Strike Rate 2.74%    
Fair Value $ (25,994,000)    
Interest Rate Contract      
Financial Instruments: Derivatives and Hedging      
Fair Value (68,720,000)    
Interest Rate Swaps/Caps      
Financial Instruments: Derivatives and Hedging      
Amount of Loss Recognized in Other Comprehensive Loss (45,082,000) (11,963,000)  
Amount of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income (725,000) 535,000  
Joint venture      
Financial Instruments: Derivatives and Hedging      
Amount of Loss Recognized in Other Comprehensive Loss (7,089,000) (5,369,000)  
Amount of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income $ (711,000) $ 368,000  
v3.20.1
Debt and Preferred Equity Investments - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]    
Aggregate weighted average current yield (as a percent) 7.87%  
Debt Investments Held [Abstract]    
Carrying Value $ 1,783,336 $ 1,580,306
Mezzanine Loan with an Initial Maturity Date of June 2024    
Debt Investments Held [Abstract]    
Amount participated out 12,000  
Mortgage/Mezzanine Loan With An Initial Maturity Due April 2021    
Debt Investments Held [Abstract]    
Amount participated out 96,400  
Mezzanine Loan Due March 2022    
Debt Investments Held [Abstract]    
Amount participated out 400  
Debt Investments in Mortgage Loans    
Debt Investments Held [Abstract]    
Future Funding Obligations 184,776  
Senior Financing 5,607,560  
Allowance for loan loss (22,326) 0
Carrying Value 1,415,644 1,341,070
Total fixed rate    
Debt Investments Held [Abstract]    
Future Funding Obligations 10,000  
Senior Financing 3,107,231  
Carrying Value 603,999 499,410
Total fixed rate | Mortgage And Mezzanine Loan With An Initial Maturity Date Of October 2020    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 63,908  
Carrying Value 55,798 55,573
Total fixed rate | Mezzanine Loan With Initial Maturity Date Of January 2021    
Debt Investments Held [Abstract]    
Future Funding Obligations 10,000  
Senior Financing 0  
Carrying Value 99,110 0
Total fixed rate | Mezzanine Loan, September 2021    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 15,000  
Carrying Value 3,500 3,500
Total fixed rate | Mezzanine Loan with an Initial Maturity Date of April 2022    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 147,000  
Carrying Value 24,957 24,952
Total fixed rate | Mezzanine Loan With An Initial Maturity Of August 2022    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 280,000  
Carrying Value 39,296 38,734
Total fixed rate | Mezzanine Loan With Maturity June 2023    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 330,204  
Carrying Value 220,420 215,737
Total fixed rate | Mezzanine Loan, with an Initial Maturity Date of November 2023    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 83,369  
Carrying Value 12,716 12,714
Total fixed rate | Mezzanine Loan With An Initial Maturity Date Of December 2023    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 180,000  
Carrying Value 30,000 30,000
Total fixed rate | Mezzanine Loan with an Initial Maturity Date of June 2024    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 115,000  
Carrying Value 12,952 12,950
Total fixed rate | Mezzanine Loan, with an Initial Maturity Date of January 2025    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 95,000  
Carrying Value 30,000 30,000
Total fixed rate | Mezzanine Loan with an Initial Maturity Date of June 2027    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 1,712,750  
Carrying Value 55,250 55,250
Total fixed rate | Mezzanine Loan With Initial Maturity Date Of December 2029    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 85,000  
Carrying Value 20,000 20,000
Total floating rate    
Debt Investments Held [Abstract]    
Future Funding Obligations 174,776  
Senior Financing 2,500,329  
Carrying Value 833,971 841,660
Total floating rate | Mortgage/Mezzanine Loan Due March 2020    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 0  
Carrying Value 70,000 69,839
Total floating rate | Mortgage and Mezzanine Loan with an Initial Maturity Date of April 2020    
Debt Investments Held [Abstract]    
Future Funding Obligations 1,618  
Senior Financing 29,053  
Carrying Value 71,964 82,696
Total floating rate | Junior Mortgage Loan With An Initial Maturity April 2020    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 40,000  
Carrying Value 20,000 20,000
Total floating rate | Mortgage/Mezzanine Loan Due August 2020    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 0  
Carrying Value 19,983 19,971
Total floating rate | Mezzanine Loan Due September 2020    
Debt Investments Held [Abstract]    
Future Funding Obligations 32,972  
Senior Financing 0  
Carrying Value 118,378 106,473
Total floating rate | Mezzanine Loan With An Initial Maturity Date Of December 2021    
Debt Investments Held [Abstract]    
Future Funding Obligations 17,376  
Senior Financing 436,763  
Carrying Value 53,329 51,387
Total floating rate | Mortgage/Mezzanine Loan With An Initial Maturity Due April 2021    
Debt Investments Held [Abstract]    
Future Funding Obligations 9,429  
Senior Financing 0  
Carrying Value 96,880 96,570
Total floating rate | Mezzanine Loan With An Initial Maturity Due April 2021    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 275,000  
Carrying Value 49,845 49,809
Total floating rate | Jr Mortgage Participation/Mezzanine Loan with an Initial Maturity of July 2021    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 60,000  
Carrying Value 15,706 15,698
Total floating rate | Mezzanine Loan With An Initial Maturity Due July 2021    
Debt Investments Held [Abstract]    
Future Funding Obligations 11,459  
Senior Financing 156,759  
Carrying Value 42,985 41,395
Total floating rate | Mezzanine Loan Due July 2021, 2    
Debt Investments Held [Abstract]    
Future Funding Obligations 8,427  
Senior Financing 49,616  
Carrying Value 20,595 15,743
Total floating rate | Mezzanine Loan Due March 2022    
Debt Investments Held [Abstract]    
Future Funding Obligations 0  
Senior Financing 1,115,000  
Carrying Value 123,419 222,775
Total floating rate | Mortgage/Mezzanine Loan Due May 2022    
Debt Investments Held [Abstract]    
Future Funding Obligations 7,795  
Senior Financing 0  
Carrying Value 59,597 35,386
Total floating rate | Mezzanine Loan Due December 2022    
Debt Investments Held [Abstract]    
Future Funding Obligations 44,000  
Senior Financing 0  
Carrying Value 13,941 13,918
Total floating rate | Mortgage Loan Due February 2023    
Debt Investments Held [Abstract]    
Future Funding Obligations 41,700  
Senior Financing 338,138  
Carrying Value $ 57,349 $ 0
v3.20.1
Partners' Capital of the Operating Partnership (Tables)
3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Schedule of calculation of numerator and denominator in earnings per unit
The Operating Partnership's earnings per unit for the three months ended March 31, 2020 and 2019, respectively, are computed as follows (in thousands):
 
Three Months Ended March 31,
Numerator
2020

2019
Basic Earnings:
 
 
 
Income attributable to SLGOP common unitholders
$
121,003

 
$
46,070

Less: distributed earnings allocated to participating securities
(113
)
 
(124
)
Less: undistributed earnings allocated to participating securities
(448
)
 

Net Income attributable to SLGOP common unitholders (numerator for basic earnings per unit)
$
120,442

 
$
45,946

Add back: dilutive effect of earnings allocated to participating securities
113

 
124

Add back: undistributed earnings allocated to participating securities
448

 

Income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)
$
121,003

 
$
46,070

 
Three Months Ended March 31,
Denominator
2020

2019
Basic units:
 
 
 
Weighted average common units outstanding
82,084

 
87,646

Effect of Dilutive Securities:
 
 
 
Stock-based compensation plans
483

 
164

Diluted weighted average common units outstanding
82,567

 
87,810


v3.20.1
Corporate Indebtedness (Tables)
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Schedule of senior unsecured notes and other related disclosures by scheduled maturity date
The following table sets forth our senior unsecured notes and other related disclosures as of March 31, 2020 and December 31, 2019, respectively, by scheduled maturity date (dollars in thousands):
Issuance
 
March 31,
2020
Unpaid
Principal
Balance
 
March 31,
2020
Accreted
Balance
 
December 31,
2019
Accreted
Balance
 
Interest
Rate (1)
 
Initial Term
(in Years)
 
Maturity Date
August 7, 2018 (2) (3)
 
$
350,000

 
$
350,000

 
$
350,000

 
L+
0.98
%
 
3
 
August 2021
October 5, 2017 (2)
 
500,000

 
499,722

 
499,695

 
 
3.25
%
 
5
 
October 2022
November 15, 2012 (4)
 
300,000

 
302,881

 
303,142

 
 
4.50
%
 
10
 
December 2022
December 17, 2015 (5)
 
100,000

 
100,000

 
100,000

 
 
4.27
%
 
10
 
December 2025
March 16, 2020 (6)
 

 

 
250,000

 
 
 
 
 
 
 
 
 
$
1,250,000

 
$
1,252,603

 
$
1,502,837

 
 
 
 
 
 
 
Deferred financing costs, net
 
 
 
(5,357
)
 
(5,990
)
 
 
 
 
 
 
 
 
 
$
1,250,000

 
$
1,247,246

 
$
1,496,847

 
 
 
 
 
 
 
(1)
Interest rate as of March 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate notes are presented with the stated spread over the 3-month LIBOR, unless otherwise specified.
(2)
Issued by the Operating Partnership with the Company as the guarantor.
(3)
The notes are subject to redemption at the Company's option, in whole but not in part, at a redemption price equal to 100% of the principal amount of the notes, plus unpaid accrued interest thereon to the redemption date. In April 2020, the Company entered into $350.0 million of fixed rate interest swaps at a rate of 0.54375% through August 2021.
(4)
In October 2017, the Company and the Operating Partnership as co-obligors issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334% of par.
(5)
Issued by the Company and the Operating Partnership as co-obligors.
(6)
In March 2020, the notes were repaid.
Schedule of combined aggregate principal maturities
Combined aggregate principal maturities of mortgages and other loans payable, the 2017 credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of March 31, 2020, including as-of-right extension options, were as follows (in thousands):
 
Scheduled
Amortization
 
Mortgages and Other Loans Payable
 
Revolving
Credit
Facility
 
Unsecured Term Loans
 
Trust
Preferred
Securities
 
Senior
Unsecured
Notes
 
Total
 
Joint
Venture
Debt
Remaining 2020
$
8,351

 
$
55,023

 
$

 
$

 
$

 
$

 
$
63,374

 
$
114,897

2021
11,638

 
231,815

 

 

 

 
350,000

 
593,453

 
884,953

2022
9,430

 
741,252

 

 

 

 
800,000

 
1,550,682

 
268,952

2023
7,301

 
50,000

 
1,300,000

 
1,300,000

 

 

 
2,657,301

 
311,436

2024
6,032

 
272,749

 

 
200,000

 

 

 
478,781

 
617,022

Thereafter
3,258

 
613,367

 

 

 
100,000

 
100,000

 
816,625

 
1,934,823

 
$
46,010

 
$
1,964,206

 
$
1,300,000

 
$
1,500,000

 
$
100,000

 
$
1,250,000

 
$
6,160,216

 
$
4,132,083


Schedule of consolidated interest expense, excluding capitalized interest
Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Interest expense before capitalized interest
$
56,813

 
$
60,810

Interest on financing leases
1,663

 
804

Interest capitalized
(20,483
)
 
(10,509
)
Interest income
(499
)
 
(580
)
Interest expense, net
$
37,494

 
$
50,525


v3.20.1
Financial Instruments: Derivatives and Hedging (Tables)
3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of notional and fair value of derivative financial instruments and foreign currency hedges
The following table summarizes the notional value at inception and fair value of our consolidated derivative financial instruments at March 31, 2020 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 Cap
$
300,000

 
3.750
%
 
May 2019
 
May 2020
 
Other Assets
 
$

Interest Rate Swap
100,000

 
1.928
%
 
December 2017
 
November 2020
 
Other Liabilities
 
(1,029
)
Interest Rate Swap
100,000

 
1.934
%
 
December 2017
 
November 2020
 
Other Liabilities
 
(1,033
)
Interest Rate Cap
111,869

 
3.500
%
 
December 2019
 
December 2020
 
Other Assets
 

Interest Rate Cap
85,000

 
4.000
%
 
March 2019
 
March 2021
 
Other Assets
 
2

Interest Rate Swap
200,000

 
1.131
%
 
July 2016
 
July 2023
 
Other Liabilities
 
(5,352
)
Interest Rate Swap
100,000

 
1.161
%
 
July 2016
 
July 2023
 
Other Liabilities
 
(2,774
)
Interest Rate Swap
150,000

 
2.696
%
 
January 2019
 
January 2024
 
Other Liabilities
 
(13,202
)
Interest Rate Swap
150,000

 
2.721
%
 
January 2019
 
January 2026
 
Other Liabilities
 
(19,338
)
Interest Rate Swap
200,000

 
2.740
%
 
January 2019
 
January 2026
 
Other Liabilities
 
(25,994
)
 
 
 
 
 
 
 
 
 
 
 
$
(68,720
)

Schedule of effect of derivative financial instruments on consolidated statements of income
The following table presents the effect of our derivative financial instruments and our share of our joint ventures' derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of operations for the three months ended March 31, 2020 and 2019, respectively (in thousands):
 

Amount of Loss
Recognized in
Other Comprehensive
Loss

Location of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income

Amount of (Loss) Gain Reclassified from
Accumulated Other
Comprehensive Loss into Income


Three Months Ended March 31,


Three Months Ended March 31,
Derivative

2020

2019


2020

2019
Interest Rate Swaps/Caps

$
(45,082
)
 
$
(11,963
)

Interest expense

$
(725
)
 
$
535

Share of unconsolidated joint ventures' derivative instruments

(7,089
)
 
(5,369
)

Equity in net loss from unconsolidated joint ventures

(711
)
 
368



$
(52,171
)

$
(17,332
)



$
(1,436
)

$
903


v3.20.1
Corporate Indebtedness - Junior Subordinated Deferrable Interest Debentures and Principal Maturities (Details)
1 Months Ended 3 Months Ended
Jun. 30, 2005
USD ($)
Mar. 31, 2020
USD ($)
quarter
Principal Repayments and Joint Venture Debt    
Remaining 2020   $ 63,374,000
2021   593,453,000
2022   1,550,682,000
2023   2,657,301,000
2024   478,781,000
Thereafter   816,625,000
Total principal repayments   $ 6,160,216,000
Trust Preferred Securities    
Debt Instrument [Line Items]    
Proceeds from issuance of debt $ 100,000,000.0  
LIBOR | Trust Preferred Securities    
Debt Instrument [Line Items]    
Interest rate added to base rate (as a percent)   1.25%
Interest payment deferment, number of consecutive quarters | quarter   8
Joint venture    
Principal Repayments and Joint Venture Debt    
Remaining 2020   $ 114,897,000
2021   884,953,000
2022   268,952,000
2023   311,436,000
2024   617,022,000
Thereafter   1,934,823,000
Total principal repayments   4,132,083,000
Joint venture | Trust Preferred Securities    
Principal Repayments and Joint Venture Debt    
Remaining 2020   0
2021   0
2022   0
2023   0
2024   0
Thereafter   100,000,000
Total principal repayments   100,000,000
Joint venture | Mortgages and other loans payable    
Scheduled Amortization    
Remaining 2020   8,351,000
2021   11,638,000
2022   9,430,000
2023   7,301,000
2024   6,032,000
Thereafter   3,258,000
Total amortization of debt   46,010,000
Principal Repayments and Joint Venture Debt    
Remaining 2020   55,023,000
2021   231,815,000
2022   741,252,000
2023   50,000,000
2024   272,749,000
Thereafter   613,367,000
Total principal repayments   1,964,206,000
Joint venture | Revolving Credit Facility    
Principal Repayments and Joint Venture Debt    
Remaining 2020   0
2021   0
2022   0
2023   1,300,000,000
2024   0
Thereafter   0
Total principal repayments   1,300,000,000
Joint venture | Unsecured Term Loans    
Principal Repayments and Joint Venture Debt    
Remaining 2020   0
2021   0
2022   0
2023   1,300,000,000
2024   200,000,000
Thereafter   0
Total principal repayments   1,500,000,000
Joint venture | Senior Unsecured Notes    
Principal Repayments and Joint Venture Debt    
Remaining 2020   0
2021   350,000,000
2022   800,000,000
2023   0
2024   0
Thereafter   100,000,000
Total principal repayments   $ 1,250,000,000
v3.20.1
Partners' Capital of the Operating Partnership - EPS (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Numerator    
Net Income attributable to common unitholders (numerator for basic earnings per unit) $ 114,240 $ 43,668
Add back: dilutive effect of earnings allocated to participating securities 113 124
Add back: undistributed earnings allocated to participating securities 448 0
Income attributable to SL Green common stockholders $ 121,003 $ 46,070
Denominator    
Common stock shares excluded from the diluted shares outstanding (shares) 1,204,736 1,211,943
SL Green Operating Partnership    
Numerator    
Net income attributable to SLGOP common unitholders $ 121,003 $ 46,070
Less: distributed earnings allocated to participating securities (113) (124)
Less: undistributed earnings allocated to participating securities (448) 0
Net Income attributable to common unitholders (numerator for basic earnings per unit) 120,442 45,946
Add back: dilutive effect of earnings allocated to participating securities 113 124
Add back: undistributed earnings allocated to participating securities 448 0
Income attributable to SL Green common stockholders $ 121,003 $ 46,070
Denominator    
Basic weighted average common units outstanding (in shares) 82,084,000 87,646,000
Stock-based compensation plans (shares) 483,000 164,000
Diluted weighted average common units outstanding (shares) 82,567,000 87,810,000
Common stock shares excluded from the diluted shares outstanding (shares) 1,204,736 1,211,943
v3.20.1
Stockholders' Equity of the Company - Perpetual Preferred Stock (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 3 Months Ended
Aug. 31, 2012
Mar. 31, 2020
Dec. 31, 2019
Feb. 28, 2018
Stockholders' Equity        
Common stock, shares authorized (in shares)   160,000,000 160,000,000  
Series I Preferred Stock        
Stockholders' Equity        
Preferred stock, shares outstanding (in shares)   9,200,000 9,200,000  
Dividend rate preferred units (as a percent)   6.50%    
Perpetual preferred stock, liquidation preference (in dollars per share)   $ 25.00 $ 25.00  
Perpetual preferred stock, annual dividends per share (in dollars per share)   $ 1.625    
Contributions of net proceeds from sale of preferred stock $ 221.9      
Dividend Reinvestment and Stock Purchase Plan (DRIP)        
Stockholders' Equity        
Common stock, shares authorized (in shares)       3,500,000
v3.20.1
Deferred Costs (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Deferred leasing costs $ 506,314 $ 466,136
Less: accumulated amortization (274,040) (260,853)
Deferred costs, net $ 232,274 $ 205,283
v3.20.1
Significant Accounting Policies - Revenue Recognition/Income Taxes (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Income taxes    
Federal, state and local tax provision $ 1.1 $ 0.8
v3.20.1
Rental Income (Tables)
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Operating Lease, Lease Income
The components of lease revenues were as follows (in thousands):
 
 
Three Months Ended  
 March 31, 2020
 
Three Months Ended  
 March 31, 2019
Fixed lease payments
 
$
194,224

 
$
211,430

Variable lease payments
 
27,168

 
27,479

Total lease payments
 
$
221,392

 
$
238,909

Amortization of acquired above and below-market leases
 
1,239

 
1,209

Total rental revenue
 
$
222,631

 
$
240,118


v3.20.1
Organization and Basis of Presentation - Schedule of Commercial Office Properties (Details)
$ in Billions
3 Months Ended
Mar. 31, 2020
USD ($)
ft²
building
shares
Real estate properties  
Number of Properties | building 72
Approximate Square Feet unaudited (sqft) | ft² 29,864,846
Weighted Average Occupancy unaudited (as a percent) 93.60%
Debt and preferred equity investments including investments held by unconsolidated joint ventures | $ $ 1.9
Debt and preferred equity investments and other financing receivables included in other balance sheet items | $ $ 0.1
Number of shares to be received on redemption of one unit of limited partnership interests (shares) | shares 1
Commercial properties  
Real estate properties  
Number of Properties | building 62
Approximate Square Feet unaudited (sqft) | ft² 27,978,822
Weighted Average Occupancy unaudited (as a percent) 93.40%
Residential  
Real estate properties  
Number of Properties | building 10
Approximate Square Feet unaudited (sqft) | ft² 1,886,024
Weighted Average Occupancy unaudited (as a percent) 96.70%
Managed office properties  
Real estate properties  
Number of Properties | building 2
Approximate Square Feet unaudited (sqft) | ft² 2,100,000
Consolidated properties  
Real estate properties  
Number of Properties | building 44
Approximate Square Feet unaudited (sqft) | ft² 15,038,641
Consolidated properties | Commercial properties  
Real estate properties  
Number of Properties | building 42
Approximate Square Feet unaudited (sqft) | ft² 14,816,391
Consolidated properties | Residential  
Real estate properties  
Number of Properties | building 2
Approximate Square Feet unaudited (sqft) | ft² 222,250
Unconsolidated properties  
Real estate properties  
Number of Properties | building 28
Approximate Square Feet unaudited (sqft) | ft² 14,826,205
Unconsolidated properties | Commercial properties  
Real estate properties  
Number of Properties | building 20
Approximate Square Feet unaudited (sqft) | ft² 13,162,431
Unconsolidated properties | Residential  
Real estate properties  
Number of Properties | building 8
Approximate Square Feet unaudited (sqft) | ft² 1,663,774
Manhattan  
Real estate properties  
Number of Properties | building 53
Approximate Square Feet unaudited (sqft) | ft² 26,882,022
Weighted Average Occupancy unaudited (as a percent) 93.80%
Manhattan | Office  
Real estate properties  
Number of Properties | building 28
Approximate Square Feet unaudited (sqft) | ft² 21,863,374
Weighted Average Occupancy unaudited (as a percent) 93.70%
Manhattan | Retail  
Real estate properties  
Number of Properties | building 12
Approximate Square Feet unaudited (sqft) | ft² 333,239
Weighted Average Occupancy unaudited (as a percent) 98.00%
Manhattan | Development/Redevelopment  
Real estate properties  
Number of Properties | building 12
Approximate Square Feet unaudited (sqft) | ft² 4,685,409
Manhattan | Fee Interest  
Real estate properties  
Number of Properties | building 1
Approximate Square Feet unaudited (sqft) | ft² 0
Weighted Average Occupancy unaudited (as a percent) 0.00%
Manhattan | Residential  
Real estate properties  
Number of Properties | building 10
Approximate Square Feet unaudited (sqft) | ft² 1,886,024
Weighted Average Occupancy unaudited (as a percent) 96.70%
Manhattan | Consolidated properties  
Real estate properties  
Number of Properties | building 33
Approximate Square Feet unaudited (sqft) | ft² 13,719,591
Manhattan | Consolidated properties | Office  
Real estate properties  
Number of Properties | building 18
Approximate Square Feet unaudited (sqft) | ft² 10,647,191
Manhattan | Consolidated properties | Retail  
Real estate properties  
Number of Properties | building 4
Approximate Square Feet unaudited (sqft) | ft² 44,189
Manhattan | Consolidated properties | Development/Redevelopment  
Real estate properties  
Number of Properties | building 11
Approximate Square Feet unaudited (sqft) | ft² 3,028,211
Manhattan | Consolidated properties | Fee Interest  
Real estate properties  
Number of Properties | building 0
Approximate Square Feet unaudited (sqft) | ft² 0
Manhattan | Consolidated properties | Residential  
Real estate properties  
Number of Properties | building 2
Approximate Square Feet unaudited (sqft) | ft² 222,250
Manhattan | Unconsolidated properties  
Real estate properties  
Number of Properties | building 20
Approximate Square Feet unaudited (sqft) | ft² 13,162,431
Manhattan | Unconsolidated properties | Office  
Real estate properties  
Number of Properties | building 10
Approximate Square Feet unaudited (sqft) | ft² 11,216,183
Manhattan | Unconsolidated properties | Retail  
Real estate properties  
Number of Properties | building 8
Approximate Square Feet unaudited (sqft) | ft² 289,050
Manhattan | Unconsolidated properties | Development/Redevelopment  
Real estate properties  
Number of Properties | building 1
Approximate Square Feet unaudited (sqft) | ft² 1,657,198
Manhattan | Unconsolidated properties | Fee Interest  
Real estate properties  
Number of Properties | building 1
Approximate Square Feet unaudited (sqft) | ft² 0
Manhattan | Unconsolidated properties | Residential  
Real estate properties  
Number of Properties | building 8
Approximate Square Feet unaudited (sqft) | ft² 1,663,774
Suburban  
Real estate properties  
Number of Properties | building 9
Approximate Square Feet unaudited (sqft) | ft² 1,096,800
Weighted Average Occupancy unaudited (as a percent) 86.20%
Suburban | Office  
Real estate properties  
Number of Properties | building 8
Approximate Square Feet unaudited (sqft) | ft² 1,044,800
Weighted Average Occupancy unaudited (as a percent) 85.50%
Suburban | Retail  
Real estate properties  
Number of Properties | building 1
Approximate Square Feet unaudited (sqft) | ft² 52,000
Weighted Average Occupancy unaudited (as a percent) 100.00%
Suburban | Consolidated properties  
Real estate properties  
Number of Properties | building 9
Approximate Square Feet unaudited (sqft) | ft² 1,096,800
Suburban | Consolidated properties | Office  
Real estate properties  
Number of Properties | building 8
Approximate Square Feet unaudited (sqft) | ft² 1,044,800
Suburban | Consolidated properties | Retail  
Real estate properties  
Number of Properties | building 1
Approximate Square Feet unaudited (sqft) | ft² 52,000
Suburban | Unconsolidated properties  
Real estate properties  
Number of Properties | building 0
Approximate Square Feet unaudited (sqft) | ft² 0
Suburban | Unconsolidated properties | Office  
Real estate properties  
Number of Properties | building 0
Approximate Square Feet unaudited (sqft) | ft² 0
Suburban | Unconsolidated properties | Retail  
Real estate properties  
Number of Properties | building 0
Approximate Square Feet unaudited (sqft) | ft² 0
v3.20.1
Property Acquisitions (Tables)
3 Months Ended
Mar. 31, 2020
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition
The following table summarizes the properties acquired during the three months ended March 31, 2020:
Property
 
Acquisition Date
 
Property Type
 
Approximate Square Feet
 
Gross Asset Valuation
(in millions)
762 Madison Avenue (1)
 
January 2020
 
Fee Interest
 
6,109
 
$
29.3

707 Eleventh Avenue
 
January 2020
 
Fee Interest
 
159,720
 
90.0

126-132 Nassau Street (2)
 
January 2020
 
Leasehold Interest
 
98,412
 

(1)
In January 2020, the Company acquired from our joint venture partner the remaining 10% interest in this property that the Company did not already own.
(2)
In January 2020, the Company entered into a 99-year ground lease of 126-132 Nassau Street. This lease is classified as a financing lease in our consolidated balance sheets.
v3.20.1
Segment Information
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information 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 and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, insurance, real estate taxes and ground rent expense (at certain applicable properties). See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments.
Selected consolidated results of operations for the three months ended March 31, 2020 and 2019, and selected asset information as of March 31, 2020 and December 31, 2019, regarding our operating segments are as follows (in thousands):
 
 
Real Estate Segment
 
Debt and Preferred Equity Segment
 
Total Company
Total revenues
 
 
 
 
 
 
Three months ended:
 
 
 
 
 
 
March 31, 2020
 
$
275,770

 
$
38,533

 
$
314,303

March 31, 2019
 
254,224

 
50,031

 
304,255

Net income
 
 
 
 
 


Three months ended:
 
 
 
 
 


March 31, 2020
 
$
111,233

 
$
15,881

 
$
127,114

March 31, 2019
 
21,572

 
31,197

 
52,769

Total assets
 
 
 
 
 


As of:
 
 
 
 
 


March 31, 2020
 
$
11,345,239

 
$
1,875,368

 
$
13,220,607

December 31, 2019
 
11,063,155

 
1,703,165

 
12,766,320


Interest costs for the debt and preferred equity segment include actual costs incurred for borrowings on the 2017 MRA and the FHLB Facility. Interest is imputed on the investments that do not collateralize the 2017 MRA and the FHLB Facility using our weighted average corporate borrowing cost. We also allocate loan loss reserves, net of recoveries, and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses to the debt and preferred equity segment because the use of personnel and resources is dependent on transaction volume between the two segments and varies period over period. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. For the three months ended March 31, 2020 and 2019, marketing, general and administrative expenses totaled $19.6 million and $26.0 million, respectively. All other expenses, except interest, relate entirely to the real estate assets.
There were no transactions between the above two segments.
v3.20.1
Deferred Costs (Tables)
3 Months Ended
Mar. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of components of deferred costs
Deferred costs at March 31, 2020 and December 31, 2019 consisted of the following (in thousands):
 
March 31, 2020
 
December 31, 2019
Deferred leasing costs
$
506,314

 
$
466,136

Less: accumulated amortization
(274,040
)
 
(260,853
)
Deferred costs, net
$
232,274

 
$
205,283


v3.20.1
Organization and Basis of Presentation
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Basis of Presentation 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 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 which is 100% owned by the Operating Partnership. The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT. A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to minimize the payment of Federal income taxes at the corporate level. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. The Company is the sole managing general partner of the Operating Partnership. As of March 31, 2020, noncontrolling investors held, in the aggregate, a 5.14% 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."
As of March 31, 2020, 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 Properties

Approximate Square Feet (unaudited)
 
Number of Properties
 
Approximate Square Feet (unaudited)
 
Number of Properties
 
Approximate Square Feet (unaudited)
 
Weighted Average Occupancy(1) (unaudited)
Commercial:
 



 

 

 

 

 

Manhattan
 
Office
 
18


10,647,191

 
10

 
11,216,183

 
28

 
21,863,374

 
93.7
%

 
Retail
 
4

 
44,189

 
8

 
289,050

 
12

 
333,239

 
98.0
%

 
Development/Redevelopment
 
11

 
3,028,211

 
1

 
1,657,198

 
12

 
4,685,409

 
N/A


 
Fee Interest
 

 

 
1

 

 
1

 

 
%

 

 
33

 
13,719,591

 
20

 
13,162,431

 
53

 
26,882,022

 
93.8
%
Suburban
 
Office
 
8

 
1,044,800

 

 

 
8

 
1,044,800

 
85.5
%

 
Retail
 
1

 
52,000

 

 

 
1

 
52,000

 
100.0
%

 

 
9

 
1,096,800

 

 

 
9

 
1,096,800

 
86.2
%
Total commercial properties
 
42

 
14,816,391

 
20

 
13,162,431

 
62

 
27,978,822

 
93.4
%
Residential:
 

 

 

 

 

 

 

 

Manhattan
 
Residential
 
2

 
222,250

 
8

 
1,663,774

 
10

 
1,886,024

 
96.7
%
Total residential properties
 
2


222,250

 
8

 
1,663,774

 
10

 
1,886,024

 
96.7
%
Total portfolio
 
44


15,038,641

 
28

 
14,826,205

 
72

 
29,864,846

 
93.6
%
   
(1)
The weighted average occupancy for commercial properties represents the total occupied square footage divided by the total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by the total available units.
As of March 31, 2020, we also managed two office buildings owned by third parties encompassing approximately 2.1 million square feet (unaudited), and held debt and preferred equity investments with a book value of $1.9 billion, including $0.1 billion of debt and preferred equity investments and other financing receivables that are included in balance sheet line items other than the Debt and Preferred Equity Investments line item.
Partnership Agreement
In accordance with the partnership agreement of the Operating Partnership, or the Operating Partnership Agreement, we allocate all distributions and profits and losses in proportion to the percentage of ownership interests of the respective partners, subject to the priority distributions with respect to preferred units and special provisions that apply to LTIP Units. As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to minimize any Federal income or excise tax at the Company level. Under the Operating Partnership Agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of SL Green's common stock on a one-for-one basis.
Basis of Quarterly Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the financial position of the Company and the Operating Partnership at March 31, 2020 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, 2020. 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, 2019 of the Company and the Operating Partnership.
The consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements as of that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
Subsequent Events
Beginning in late 2019, a novel strain of Coronavirus (“COVID-19”) began to spread throughout the world, including the United States, ultimately being declared a pandemic by the World Health Organization. Over the past several months the pandemic has caused, and continues to cause, severe disruptions with wide ranging impacts to the global economy and everyday life. We expect that our business, results of operations, liquidity, cash flows, prospects, and our ability to achieve forward-looking targets and expectations could be materially and adversely affected for at least the duration of the COVID-19 pandemic and possibly longer. This could also cause significant volatility in the trading prices of our securities. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration, severity and spread of the pandemic, health and safety actions taken to contain its spread, any possible resurgence that may occur after the initial outbreak subsides and how quickly and to what extent normal economic and operating conditions can resume. Additionally, the COVID-19 pandemic could increase the magnitude of many of the other risks described in our latest Annual Report on Form 10-K and other SEC filings and may have other adverse effects on our operations that we are not currently able to predict.
In May 2020, the Company entered into contract to sell the retail condominium at 609 Fifth Avenue for a gross asset valuation of $168.0 million. This transaction is scheduled to close in the second quarter of 2020, subject to satisfaction of various closing conditions. At March 31, 2020, we determined that the held for sale criteria was not met for this property as it was not probable that the sale of the asset would be completed within one year.
In May 2020, the Company closed on the sale of a 49.5% interest in One Madison Avenue to the National Pension Service of Korea and Hines Interest LP. NPS and Hines have committed aggregate equity to the project totaling no less than $492.2 million. The Company and Hines will co-develop the $2.3 billion project, which will span 1.4 million rentable square feet upon completion. At March 31, 2020, we determined that the held for sale criteria was not met for this property as it was not probable that the sale of the asset would be completed within one year.
v3.20.1
Debt and Preferred Equity Investments
3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Debt and Preferred Equity Investments Debt and Preferred Equity Investments
Below is a summary of the activity in our debt and preferred equity investments for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of year (1)
$
1,580,306

 
$
2,099,393

Debt investment originations/accretion (2)
246,075

 
652,866

Preferred equity investment originations/accretion (2)
154,710

 
14,736

Redemptions/sales/syndications/amortization (3)
(161,548
)
 
(1,190,689
)
Net change in loan loss reserves
(36,207
)
 
4,000

Balance at end of period (1)
$
1,783,336

 
$
1,580,306

(1)
Net of unamortized fees, discounts, and premiums.
(2)
Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)
Certain participations in debt investments that were sold or syndicated, but did not meet the conditions for sale accounting, are included in other assets and other liabilities on the consolidated balance sheets.
Below is a summary of our debt and preferred equity investments as of March 31, 2020 (dollars in thousands):
 
Floating Rate
 
Fixed Rate
 
Total Carrying Value
Senior Financing
Maturity
Type
Carrying Value
Face Value
Interest Rate
 
Carrying Value
Face Value
Interest Rate
 
Senior Mortgage Debt
$
372,547

$374,002
L + 2.00 - 5.50%
 
$
100,202

$101,250
3.00 - 6.00%
 
$
472,749

$

2020 - 2022
Junior Mortgage Debt
83,004

90,300
L + 6.00 - 7.25%
 

 
$
83,004

438,138

2020 - 2023
Mezzanine Debt
368,053

375,098
L + 4.95 - 15.29%
 
491,838

509,920
2.90 - 9.50%
 
$
859,891

5,169,422

2020 - 2029
Preferred Equity

 
367,692

386,953
6.50 - 11.00%
 
$
367,692

522,000

2020 -2027
Balance at end of period
$
823,604

$
839,400

 
$
959,732

$
998,123

 
$
1,783,336

$
6,129,560


The following table is a rollforward of our total allowance for loan losses for the three months ended March 31, 2020 and the twelve months ended December 31, 2019 (in thousands):
 
March 31, 2020
 
December 31, 2019
Balance at beginning of year
$
1,750

 
$
5,750

Cumulative adjustment upon adoption of ASC 326
27,804

 

Current period provision for loan loss
8,403

 

Writeoffs charged against the allowance

 
(4,000
)
Balance at end of period
$
37,957

 
$
1,750


At March 31, 2020, all debt and preferred equity investments were performing in accordance with their respective terms, with the exception of one investment with a carrying value of $70.0 million, as discussed in subnotes 4 of the Debt Investments table below. At December 31, 2019, all debt and preferred equity investments were performing in accordance with their respective terms.
No financing receivables were 90 days past due at March 31, 2020 and December 31, 2019 with the exception of a $28.5 million financing receivable which was put on nonaccrual in August 2018 as a result of interest default.
As of March 31, 2020, management estimated the weighted average risk rating for our debt and preferred equity investments to be 1.4.
We have determined that we have one portfolio segment of financing receivables at March 31, 2020 and December 31, 2019 comprising 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 $120.7 million and $131.1 million at March 31, 2020 and December 31, 2019, respectively, for which the Company recorded adjustments upon adoption of ASC 326 of $11.4 million and provisions for loan losses for the three months ended March 31, 2020 of $2.8 million.
Debt Investments
As of March 31, 2020 and December 31, 2019, we held the following debt investments with an aggregate weighted average current yield of 7.87% at March 31, 2020 (dollars in thousands):
Loan Type
 
March 31, 2020
Future Funding
Obligations
 
March 31, 2020 Senior
Financing
 
March 31,
2020
Amortized Cost
(1)
 
December 31, 2019
Amortized Cost
(1)
 
Maturity
Date
(2)
Fixed Rate Investments:
 
 
 
 
 
 
 
 
 
 
Mortgage/Mezzanine Loan
 
$

 
$
63,908

 
$
55,798

 
$
55,573

 
October 2020
Mezzanine Loan
 
10,000

 

 
99,110

 

 
January 2021
Mezzanine Loan
 

 
15,000

 
3,500

 
3,500

 
September 2021
Mezzanine Loan
 

 
147,000

 
24,957

 
24,952

 
April 2022
Mezzanine Loan
 

 
280,000

 
39,296

 
38,734

 
August 2022
Mezzanine Loan
 

 
330,204

 
220,420

 
215,737

 
June 2023
Mezzanine Loan
 

 
83,369

 
12,716

 
12,714

 
November 2023
Mezzanine Loan
 

 
180,000

 
30,000

 
30,000

 
December 2023
Mezzanine Loan(3a)(4)
 

 
115,000

 
12,952

 
12,950

 
June 2024
Mezzanine Loan
 

 
95,000

 
30,000

 
30,000

 
January 2025
Mezzanine Loan
 

 
1,712,750

 
55,250

 
55,250

 
June 2027
Mezzanine Loan
 

 
85,000

 
20,000

 
20,000

 
December 2029
Total fixed rate
 
$
10,000

 
$
3,107,231

 
$
603,999

 
$
499,410

 
 
Floating Rate Investments:
 
 
 
 
 
 
 
 
 
 
Mortgage/Mezzanine Loan(4)
 

 

 
70,000

 
69,839

 
March 2020
Mortgage/Mezzanine Loan(4)
 
1,618

 
29,053

 
71,964

 
82,696

 
April 2020
Junior Mortgage(4)
 

 
40,000

 
20,000

 
20,000

 
April 2020
Mortgage/Mezzanine Loan
 

 

 
19,983

 
19,971

 
August 2020
Mortgage Loan
 
32,972

 

 
118,378

 
106,473

 
September 2020
Mezzanine Loan
 
17,376

 
436,763

 
53,329

 
51,387

 
December 2021
Mortgage/Mezzanine Loan(3b)
 
9,429

 

 
96,880

 
96,570

 
April 2021
Mezzanine Loan
 

 
275,000

 
49,845

 
49,809

 
April 2021
Junior Mortgage Participation/Mezzanine Loan
 

 
60,000

 
15,706

 
15,698

 
July 2021
Mezzanine Loan
 
11,459

 
156,759

 
42,985

 
41,395

 
July 2021
Mezzanine Loan
 
8,427

 
49,616

 
20,595

 
15,743

 
July 2021
Mezzanine Loan(3c)
 

 
1,115,000

 
123,419

 
222,775

 
March 2022
Mortgage/Mezzanine Loan(5)
 
7,795

 

 
59,597

 
35,386

 
May 2022
Mezzanine Loan
 
44,000

 

 
13,941

 
13,918

 
December 2022
Mortgage Loan
 
41,700

 
338,138

 
57,349

 

 
February 2023
Total floating rate
 
$
174,776

 
$
2,500,329

 
$
833,971

 
$
841,660

 
 
Allowance for loan loss
 
$

 
$

 
$
(22,326
)
 
$

 
 
Total
 
$
184,776

 
$
5,607,560

 
$
1,415,644

 
$
1,341,070

 
 
(1)
Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2)
Represents contractual maturity, excluding any unexercised extension options.
(3)
Carrying value is net of the following amounts that were sold or syndicated, which are included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $12.0 million, (b) $96.4 million and (c) $0.4 million.
(4)
This loan is in default as of the date of this filing. The Company is in discussions with the borrower.
(5)
The original loan was repaid in February 2020 and a new loan was originated to the new owners of the underlying asset.
Preferred Equity Investments
As of March 31, 2020 and December 31, 2019, we held the following preferred equity investments with an aggregate weighted average current yield of 9.87% at March 31, 2020 (dollars in thousands):
Type
 
March 31, 2020
Future Funding
Obligations
 
March 31, 2020 Senior
Financing
 
March 31,
2020
Amortized Cost
(1)
 
December 31, 2019
Amortized Cost
(1)
 
Mandatory Redemption (2)
Preferred Equity
 
$

 
$
272,000

 
$
133,050

 
$
142,921

 
April 2021
Preferred Equity
 

 
1,712,750

 
150,273

 
98,065

 
June 2022
Preferred Equity
 

 
250,000

 
100,000

 

 
February 2027
Total Preferred Equity
 
$

 
$
2,234,750

 
$
383,323

 
$
240,986

 
 
Allowance for loan loss
 
$

 
$

 
$
(15,631
)
 
$
(1,750
)
 
 
Total
 
$

 
$
2,234,750

 
$
367,692

 
$
239,236

 
 
(1)
Carrying value is net of deferred origination fees.
(2)
Represents contractual maturity, excluding any unexercised extension options.