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 ~~June 30, 2021~~March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-13199 (SL Green Realty Corp.)

Commission File Number: 33-167793-02 (SL Green Operating Partnership, L.P.)

SL GREEN REALTY CORP.

SL GREEN OPERATING PARTNERSHIP, L.P.

(Exact name of registrant as specified in its charter)


SL Green Realty Corp.	Maryland	13-3956775
SL Green Operating Partnership, L.P.	Delaware	13-3960938
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One Vanderbilt Avenue, New York, NY 10017

(Address of principal executive offices—Zip Code)

(212) 594-2700

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

SL Green Realty Corp. Yes x No o SL Green Operating Partnership, L.P. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

SL Green Realty Corp. Yes x No o SL Green Operating Partnership, L.P. Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

SL Green Realty Corp.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

SL Green Operating Partnership, L.P.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

Smaller Reporting Company

☐

Emerging Growth Company

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

SL Green Realty Corp. Yes ☐ No x SL Green Operating Partnership, L.P. Yes ☐ No x

Securities registered pursuant to Section 12(b) of the Act:

Registrant

Trading Symbol

Title of Each Class

Name of Each Exchange on Which Registered

SL Green Realty Corp.

SLG

Common Stock, $0.01 par value

New York Stock Exchange

SL Green Realty Corp.

SLG.PRI

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

New York Stock Exchange

As of ~~August 5, 2021, 67,158,759~~May 6, 2022, 64,124,349 shares of SL Green Realty Corp.'s common stock, par value $0.01 per share, were outstanding. As of ~~August 5, 2021,~~May 6, 2022, 689,437 common units of limited partnership interest of SL Green Operating Partnership, L.P. were held by non-affiliates. There is no established trading market for such units.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended ~~June 30, 2021~~March 31, 2022 of SL Green Realty Corp. and SL Green Operating Partnership, L.P. Unless stated otherwise or the context otherwise requires, references to "SL Green Realty Corp.," the "Company" or "SL Green" mean SL Green Realty Corp. and its consolidated subsidiaries, including SL Green Operating Partnership, L.P.; and references to "SL Green Operating Partnership, L.P.," the "Operating Partnership" or "SLGOP" mean SL Green Operating Partnership, L.P. and its consolidated subsidiaries. The terms "we," "our" and "us" mean the Company and all the entities owned or controlled by the Company, including the Operating Partnership.

The Company is a Maryland corporation which operates as a self-administered and self-managed real estate investment trust, or REIT, and is the sole managing general partner of the Operating Partnership. As a general partner of the Operating Partnership, the Company has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Operating Partnership.

As of ~~June 30, 2021,~~March 31, 2022, the Company owns ~~94.69%~~94.00% of the outstanding general and limited partnership interest in the Operating Partnership and owns 9,200,000 Series I Preferred Units of the Operating Partnership. As of ~~June 30, 2021,~~March 31, 2022, noncontrolling investors held, in aggregate, a ~~5.31%~~6.00% limited partnership interest in the Operating Partnership. We refer to these interests as the noncontrolling interests in the Operating Partnership.

The Company and the Operating Partnership are managed and operated as one entity. The financial results of the Operating Partnership are consolidated into the financial statements of the Company. The Company has no significant assets other than its investment in the Operating Partnership. Substantially all of our assets are held by, and our operations are conducted through, the Operating Partnership. Therefore, the assets and liabilities of the Company and the Operating Partnership are substantially the same.

Noncontrolling interests in the Operating Partnership, stockholders' equity of the Company and partners' capital of the Operating Partnership are the main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership. The common limited partnership interests in the Operating Partnership not owned by the Company are accounted as noncontrolling interests, within mezzanine equity, in the Company's and the Operating Partnership's consolidated financial statements.

We believe combining the quarterly reports on Form 10-Q of the Company and the Operating Partnership into this single report results in the following benefits:

•Combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

•Combined reports eliminate duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company's disclosure applies to both the Company and the Operating Partnership; and

•Combined reports create time and cost efficiencies through the preparation of one combined report instead of two separate reports.

To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:

•consolidated financial statements; and

•the following notes to the consolidated financial statements:

◦Note 11, Noncontrolling Interests on the Company’s Consolidated Financial Statements;

◦Note 12, Stockholders' Equity of the Company; and

◦Note 13, Partners' Capital of the Operating Partnership.

This report also includes separate Part I, Item 4. Controls and Procedures sections and separate Exhibit 31 and 32 certifications for each of the Company and the Operating Partnership, respectively, in order to establish that the Chief Executive Officer and the Chief Financial Officer of the Company, in both their capacity as the principal executive officer and principal financial officer of the Company and the principal executive officer and principal financial officer of the general partner of the Operating Partnership, have made the requisite certifications and that the Company and the Operating Partnership are compliant with Rule 13a-15 and Rule 15d-15 of the Securities Exchange Act of 1934, as amended, or the Exchange Act.

On December ~~4, 2020,~~2, 2021, our Board of Directors declared an ordinary dividend of $0.3108 per share and a special dividend of $2.4392 per share (together, "the Total Dividend"). The Total Dividend was paid on January ~~15, 2021~~18, 2022 to shareholders of record at the close of business on December 15, ~~2020~~2021 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed. As a result of the elections made, the cash option was oversubscribed and was prorated. Shareholders who elected to receive cash received, for each share of common stock they owned as of the Record Date, approximately ~~$0.3735~~$0.3976 in cash and ~~0.0279~~0.0295 shares of common stock. Shareholders who elected to receive shares received, for each share of common stock they owned as of the Record Date, approximately ~~0.0343~~0.0345 shares of common stock. The number of shares issued was calculated based on the volume weighted average trading price of SLG's common stock between January 5-7, ~~2021,~~2022 of ~~$58.15~~$79.71 per share.

To mitigate the dilutive impact of the common stock issued in the special dividend, the Board of Directors also authorized a reverse stock split, which was effective after markets closed on January ~~20, 2021.~~21, 2022. On January ~~8, 2021,~~10, 2022, a committee of the Board of Directors calculated the ratio for the reverse stock split of our issued and outstanding shares of common stock as ~~1.02918-for-1.~~1.03060-for-1. After the issuance of the dividend and the completion of the reverse stock split, the number of shares of our common stock outstanding was equivalent to the number of total shares outstanding on the Record Date (not including any issuances or repurchases that occurred following the Record Date, as well as any fractional shares that would have been issued but for which cash-in-lieu was paid). However, on a relative basis, some individual shareholders may have more shares of SLG’s common stock, and some individual shareholders may have fewer shares of our common stock, depending on their individual elections to receive cash or stock and as a result of the cash option being oversubscribed.

All share-related references and measurements including the number of shares outstanding, share prices, number of shares repurchased, earnings per share, dividends per share, and share-based compensation awards, have been retroactively adjusted to reflect the reverse stock split for all periods presented in this Quarterly Report on Form 10-Q.

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

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS	76

	FINANCIAL STATEMENTS OF SL GREEN REALTY CORP.
	Consolidated Balance Sheets as of ~~June 30, 2021~~March 31, 2022 (unaudited) and December 31, ~~2020~~2021	76
	Consolidated Statements of Operations for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	98
	Consolidated Statements of Comprehensive Income for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 (unaudited)	9
	Consolidated Statements of Equity for the three months ended March 31, 2022 and ~~2020~~2021 (unaudited)	10
	Consolidated Statements of ~~Equity for the three and six months ended June 30, 2021 and 2020 (unaudited)~~	11
	~~Consolidated Statements of~~ Cash Flows for the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	1312

	FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P.
	Consolidated Balance Sheets as of ~~June 30, 2021~~March 31, 2022 (unaudited) and December 31, ~~2020~~2021	1614
	Consolidated Statements of Operations for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	1816
	Consolidated Statements of Comprehensive Income for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	1917
	Consolidated Statements of Capital for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	2018
	Consolidated Statements of Cash Flows for the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	2220
	Notes to Consolidated Financial Statements (unaudited)	2322
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	6457
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	8070
Item 4.	Controls and Procedures (SL Green Realty Corp. and SL Green Operating Partnership, L.P.)	8171
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	8272
Item 1A.	Risk Factors	8272
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	8373
Item 3.	Defaults Upon Senior Securities	8474
Item 4.	Mine Safety Disclosures	8575
Item 5.	Other Information	8676
Item 6.	Exhibits	8777
	Signatures	8878

Table of Contents

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

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Table of Contents

SL Green Realty Corp.

Consolidated Balance Sheets

(in thousands)


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
		(unaudited)					(unaudited)
Assets	Assets					Assets
Commercial real estate properties, at cost:	Commercial real estate properties, at cost:					Commercial real estate properties, at cost:
Land and land interests	Land and land interests	$	1,403,399	$	1,315,832	Land and land interests	$	1,352,610	$	1,350,701
Building and improvements	Building and improvements	4,088,659		4,168,193		Building and improvements	3,709,795		3,671,402
Building leasehold and improvements	Building leasehold and improvements	1,642,595		1,448,134		Building leasehold and improvements	1,654,571		1,645,081
Right of use asset - financing leases		27,445		55,711

Right of use asset - operating leases	Right of use asset - operating leases	502,316		367,209		Right of use asset - operating leases	983,723		983,723
		7,664,414		7,355,079			7,700,699		7,650,907
Less: accumulated depreciation	Less: accumulated depreciation	(2,008,438)		(1,956,077)		Less: accumulated depreciation	(1,938,804)		(1,896,199)
		5,655,976		5,399,002			5,761,895		5,754,708

Assets held for sale						Assets held for sale	49,757		140,855
Cash and cash equivalents	Cash and cash equivalents	218,337		266,059		Cash and cash equivalents	223,674		251,417
Restricted cash	Restricted cash	98,164		106,736		Restricted cash	83,644		85,567
Investments in marketable securities	Investments in marketable securities	32,339		28,570		Investments in marketable securities	32,889		34,752
Tenant and other receivables	Tenant and other receivables	40,147		44,507		Tenant and other receivables	41,257		47,616
Related party receivables	Related party receivables	36,430		34,657		Related party receivables	31,711		29,408
Deferred rents receivable	Deferred rents receivable	304,140		302,791		Deferred rents receivable	250,028		248,313
Debt and preferred equity investments, net of discounts and deferred origination fees of $7,922 and $11,232 and allowances of $13,213 and $13,213 in 2021 and 2020, respectively		1,072,711		1,076,542
Debt and preferred equity investments, net of discounts and deferred origination fees of $3,670 and $5,057 and allowances of $6,630 and $6,630 in 2022 and 2021, respectively						Debt and preferred equity investments, net of discounts and deferred origination fees of $3,670 and $5,057 and allowances of $6,630 and $6,630 in 2022 and 2021, respectively	1,107,870		1,088,723
Investments in unconsolidated joint ventures	Investments in unconsolidated joint ventures	3,209,151		3,823,322		Investments in unconsolidated joint ventures	3,000,986		2,997,934
Deferred costs, net	Deferred costs, net	161,962		177,168		Deferred costs, net	122,294		124,495
Other assets	Other assets	336,807		448,213		Other assets	308,960		262,841
Total assets (1)	Total assets (1)	$	11,166,164	$	11,707,567	Total assets (1)	$	11,014,965	$	11,066,629
Liabilities	Liabilities					Liabilities
Mortgages and other loans payable, net	Mortgages and other loans payable, net	$	1,857,829	$	1,979,972	Mortgages and other loans payable, net	$	1,344,775	$	1,394,386
Revolving credit facility, net	Revolving credit facility, net	0		105,262		Revolving credit facility, net	491,998		381,334
Unsecured term loans, net	Unsecured term loans, net	1,496,062		1,495,275		Unsecured term loans, net	1,242,345		1,242,002
Unsecured notes, net	Unsecured notes, net	1,248,930		1,248,219		Unsecured notes, net	899,541		899,308
Accrued interest payable	Accrued interest payable	13,771		14,825		Accrued interest payable	21,545		12,698
Other liabilities	Other liabilities	193,321		302,798		Other liabilities	276,254		195,390
Accounts payable and accrued expenses	Accounts payable and accrued expenses	126,929		151,309		Accounts payable and accrued expenses	139,460		157,571
Deferred revenue	Deferred revenue	114,536		118,572		Deferred revenue	110,631		107,275
Lease liability - financing leases	Lease liability - financing leases	124,808		152,521		Lease liability - financing leases	103,238		102,914
Lease liability - operating leases	Lease liability - operating leases	443,313		339,458		Lease liability - operating leases	852,194		851,370
Dividend and distributions payable	Dividend and distributions payable	24,407		149,294		Dividend and distributions payable	23,628		187,372
Security deposits	Security deposits	54,797		53,836		Security deposits	54,179		52,309

Liabilities related to assets held for sale						Liabilities related to assets held for sale	64,041		64,120
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities	Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities	100,000		100,000		Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities	100,000		100,000
Total liabilities (1)	Total liabilities (1)	5,798,703		6,211,341		Total liabilities (1)	5,723,829		5,748,049

Table of Contents

SL Green Realty Corp.

Consolidated Balance Sheets

(in thousands)


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
		(unaudited)					(unaudited)
Commitments and contingencies	Commitments and contingencies	0		0		Commitments and contingencies	0		0
Noncontrolling interests in Operating Partnership	Noncontrolling interests in Operating Partnership	355,201		358,262		Noncontrolling interests in Operating Partnership	374,078		344,252
Preferred units	Preferred units	198,503		202,169		Preferred units	177,943		196,075

Equity	Equity					Equity
SL Green stockholders' equity:	SL Green stockholders' equity:					SL Green stockholders' equity:
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2021 and December 31, 2020		221,932		221,932
Common stock, $0.01 par value, 160,000 shares authorized and 68,906 and 69,534 issued and outstanding at June 30, 2021 and December 31, 2020, respectively (including 1,026 and 1,026 shares held in treasury at June 30, 2021 and December 31, 2020, respectively)		690		716
Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2022 and December 31, 2021						Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2022 and December 31, 2021	221,932		221,932
Common stock, $0.01 par value, 160,000 shares authorized and 65,184 and 65,132 issued and outstanding at March 31, 2022 and December 31, 2021, respectively (including 1,060 and 1,027 shares held in treasury at March 31, 2022 and December 31, 2021, respectively)						Common stock, $0.01 par value, 160,000 shares authorized and 65,184 and 65,132 issued and outstanding at March 31, 2022 and December 31, 2021, respectively (including 1,060 and 1,027 shares held in treasury at March 31, 2022 and December 31, 2021, respectively)	653		672
Additional paid-in-capital	Additional paid-in-capital	3,823,290		3,862,949		Additional paid-in-capital	3,792,689		3,739,409
Treasury stock at cost	Treasury stock at cost	(124,049)		(124,049)		Treasury stock at cost	(128,655)		(126,160)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(66,863)		(67,247)		Accumulated other comprehensive loss	(7,261)		(46,758)
Retained earnings	Retained earnings	934,132		1,015,462		Retained earnings	846,646		975,781
Total SL Green stockholders' equity	Total SL Green stockholders' equity	4,789,132		4,909,763		Total SL Green stockholders' equity	4,726,004		4,764,876
Noncontrolling interests in other partnerships	Noncontrolling interests in other partnerships	24,625		26,032		Noncontrolling interests in other partnerships	13,111		13,377
Total equity	Total equity	4,813,757		4,935,795		Total equity	4,739,115		4,778,253
Total liabilities and equity	Total liabilities and equity	$	11,166,164	$	11,707,567	Total liabilities and equity	$	11,014,965	$	11,066,629

(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $179.6 million and $41.2 million of land, $281.0 million and $57.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $53.2 million and $37.8 million of right of use assets, $17.3 million and $10.3 million of accumulated depreciation, $291.4 million and $289.5 million of other assets included in other line items, $377.1 million and $94.0 million of real estate debt, net, $1.1 million and $0.7 million of accrued interest payable, $45.4 million and $29.9 million of lease liabilities, and $23.6 million and $56.6 million of other liabilities included in other line items as of June 30, 2021 and December 31, 2020, respectively.
(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $179.6 million and $193.4 million of land, $291.2 million and $336.9 million of building and improvements, $— million and $— million of building and leasehold improvements, $15.4 million and $15.4 million of right of use assets, $11.5 million and $11.7 million of accumulated depreciation, $569.7 million and $574.4 million of other assets included in other line items, $372.5 million and $418.9 million of real estate debt, net, $0.8 million and $0.8 million of accrued interest payable, $15.3 million and $15.3 million of lease liabilities, and $226.4 million and $145.2 million of other liabilities included in other line items as of March 31, 2022 and December 31, 2021, respectively.						(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $179.6 million and $193.4 million of land, $291.2 million and $336.9 million of building and improvements, $— million and $— million of building and leasehold improvements, $15.4 million and $15.4 million of right of use assets, $11.5 million and $11.7 million of accumulated depreciation, $569.7 million and $574.4 million of other assets included in other line items, $372.5 million and $418.9 million of real estate debt, net, $0.8 million and $0.8 million of accrued interest payable, $15.3 million and $15.3 million of lease liabilities, and $226.4 million and $145.2 million of other liabilities included in other line items as of March 31, 2022 and December 31, 2021, respectively.

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

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Operations

(unaudited, in thousands, except per share data)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Revenues	Revenues									Revenues
Rental revenue, net	Rental revenue, net	$	184,611	$	195,886	$	372,700	$	418,517	Rental revenue, net	$	156,031	$	188,089
Investment income	Investment income	20,107		39,943		39,380		78,476		Investment income	19,888		19,273
Other income	Other income	13,389		17,870		32,129		71,009		Other income	12,045		18,740
Total revenues	Total revenues	218,107		253,699		444,209		568,002		Total revenues	187,964		226,102
Expenses	Expenses									Expenses
Operating expenses, including related party expenses of $3,039 and $5,264 in 2021 and $2,739 and $6,488 in 2020		43,883		40,897		86,167		94,763
Operating expenses, including related party expenses of $2,523 in 2022 and $2,225 in 2021										Operating expenses, including related party expenses of $2,523 in 2022 and $2,225 in 2021	42,583		42,284
Real estate taxes	Real estate taxes	43,768		41,661		89,179		88,283		Real estate taxes	30,747		45,411
Operating lease rent	Operating lease rent	6,707		7,831		13,446		15,198		Operating lease rent	6,564		6,739
Interest expense, net of interest income	Interest expense, net of interest income	18,960		30,070		42,348		67,564		Interest expense, net of interest income	15,070		23,388
Amortization of deferred financing costs	Amortization of deferred financing costs	3,386		2,661		7,160		5,161		Amortization of deferred financing costs	1,948		3,774
Depreciation and amortization	Depreciation and amortization	57,261		95,941		120,257		164,220		Depreciation and amortization	46,983		62,996
Loan loss and other investment reserves, net of recoveries		0		6,813		0		18,061

Transaction related costs	Transaction related costs	3		373		25		438		Transaction related costs	28		22
Marketing, general and administrative	Marketing, general and administrative	22,064		23,510		44,949		43,080		Marketing, general and administrative	24,776		22,885
Total expenses	Total expenses	196,032		249,757		403,531		496,768		Total expenses	168,699		207,499

Equity in net loss from unconsolidated joint ventures	Equity in net loss from unconsolidated joint ventures	(12,970)		(2,199)		(15,834)		(15,013)		Equity in net loss from unconsolidated joint ventures	(4,715)		(2,864)
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate		8,471		0		(4,158)		0
Equity in net loss on sale of interest in unconsolidated joint venture/real estate										Equity in net loss on sale of interest in unconsolidated joint venture/real estate	—		(12,629)
Purchase price and other fair value adjustments	Purchase price and other fair value adjustments	(1,947)		0		717		0		Purchase price and other fair value adjustments	(63)		2,664
Gain on sale of real estate, net		98,960		64,884		97,572		137,520
Loss on sale of real estate, net										Loss on sale of real estate, net	(1,002)		(1,388)
Depreciable real estate reserves and impairment	Depreciable real estate reserves and impairment	2,545		0		(5,696)		0		Depreciable real estate reserves and impairment	—		(8,241)

Net income		117,134		66,627		113,279		193,741
Net income attributable to noncontrolling interests:
Net income (loss)										Net income (loss)	13,485		(3,855)
Net (income) loss attributable to noncontrolling interests:										Net (income) loss attributable to noncontrolling interests:
Noncontrolling interests in the Operating Partnership	Noncontrolling interests in the Operating Partnership	(6,282)		(3,070)		(5,806)		(9,272)		Noncontrolling interests in the Operating Partnership	(492)		476
Noncontrolling interests in other partnerships	Noncontrolling interests in other partnerships	40		(1,023)		1,539		(730)		Noncontrolling interests in other partnerships	143		1,499
Preferred units distributions	Preferred units distributions	(1,823)		(2,353)		(3,669)		(5,019)		Preferred units distributions	(1,647)		(1,846)
Net income attributable to SL Green		109,069		60,181		105,343		178,720
Net income (loss) attributable to SL Green										Net income (loss) attributable to SL Green	11,489		(3,726)
Perpetual preferred stock dividends	Perpetual preferred stock dividends	(3,737)		(3,737)		(7,475)		(7,475)		Perpetual preferred stock dividends	(3,738)		(3,738)
Net income attributable to SL Green common stockholders		$	105,332	$	56,444	$	97,868	$	171,245
Net income (loss) attributable to SL Green common stockholders										Net income (loss) attributable to SL Green common stockholders	$	7,751	$	(7,464)

Basic earnings per share		$	1.52	$	0.76	$	1.41	$	2.28
Basic earnings (loss) per share										Basic earnings (loss) per share	$	0.12	$	(0.12)

Diluted earnings per share		$	1.51	$	0.76	$	1.40	$	2.28
Diluted earnings (loss) per share										Diluted earnings (loss) per share	$	0.11	$	(0.12)

Basic weighted average common shares outstanding	Basic weighted average common shares outstanding	68,980		73,538		68,996		74,598		Basic weighted average common shares outstanding	64,349		66,961
Diluted weighted average common shares and common share equivalents outstanding	Diluted weighted average common shares and common share equivalents outstanding	73,727		78,066		73,899		79,208		Diluted weighted average common shares and common share equivalents outstanding	70,228		72,004

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

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Comprehensive Income

(unaudited, in thousands)

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net income $ 117,134 $ 66,627 $ 113,279 $ 193,741
Other comprehensive (loss) income:
Decrease in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments (51,313) (3,590) (50) (54,325)
Increase (decrease) in unrealized value of marketable securities 506 1,992 248 (2,542)
Other comprehensive (loss) income (50,807) (1,598) 198 (56,867)
Comprehensive income 66,327 65,029 113,477 136,874
Net income attributable to noncontrolling interests and preferred units distributions (8,065) (6,446) (7,936) (15,021)
Other comprehensive loss attributable to noncontrolling interests 2,841 95 186 2,981
Comprehensive income attributable to SL Green $ 61,103 $ 58,678 $ 105,727 $ 124,834


	Three Months Ended March 31,
	2022		2021
Net income (loss)	$	13,485	$	(3,855)
Other comprehensive income:
Increase in unrealized value of derivative instruments, including SL Green's share of joint venture derivative instruments	43,567		51,263
Decrease in unrealized value of marketable securities	(1,793)		(258)
Other comprehensive income	41,774		51,005
Comprehensive income	55,259		47,150
Net (income) loss attributable to noncontrolling interests and preferred units distributions	(1,996)		129
Other comprehensive income attributable to noncontrolling interests	(2,277)		(2,655)
Comprehensive income attributable to SL Green	$	50,986	$	44,624

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

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Equity

(unaudited, in thousands, except per share data)


		SL Green Realty Corp. Stockholders																			SL Green Realty Corp. Stockholders
					Common Stock																			Common Stock
			Series I Preferred Stock		Shares	Par Value		Additional Paid- In-Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Noncontrolling Interests		Total				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, 2020			$	221,932	68,508	$	716	$	3,862,949	$	(124,049)	$	(67,247)	$	1,015,462	$	26,032	$	4,935,795
Balance at December 31, 2021																				Balance at December 31, 2021		$	221,932	64,105	$	672	$	3,739,409	$	(126,160)	$	(46,758)	$	975,781	$	13,377	$	4,778,253

Net loss														(3,726)		(1,499)		(5,225)
Net income																				Net income													11,489		(143)		11,346

Other comprehensive income	Other comprehensive income											48,350						48,350		Other comprehensive income											39,497						39,497
Preferred dividends	Preferred dividends													(3,738)				(3,738)		Preferred dividends													(3,738)				(3,738)
DRSPP proceeds	DRSPP proceeds				5			351										351		DRSPP proceeds				1			89										89

Reallocation of noncontrolling interest in the Operating Partnership	Reallocation of noncontrolling interest in the Operating Partnership													(26,609)				(26,609)		Reallocation of noncontrolling interest in the Operating Partnership													(43,023)				(43,023)

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings	Deferred compensation plan and stock awards, net of forfeitures and tax withholdings				113	2		6,726										6,728		Deferred compensation plan and stock awards, net of forfeitures and tax withholdings				28	1		5,055										5,056

Repurchases of common stock	Repurchases of common stock				(1,306)	(13)		(80,297)						—				(80,310)		Repurchases of common stock				(1,971)	(20)		(114,979)						(36,198)				(151,197)

Contributions to consolidated joint venture interests																171		171

Cash distributions to noncontrolling interests	Cash distributions to noncontrolling interests															(110)		(110)		Cash distributions to noncontrolling interests															(123)		(123)
Issuance of special dividend paid primarily in stock	Issuance of special dividend paid primarily in stock				2,034			123,529										123,529		Issuance of special dividend paid primarily in stock				1,961			163,115		(2,495)								160,620
Cash distributions declared ($0.910 per common share, none of which represented a return of capital for federal income tax purposes)														(63,312)				(63,312)
Balance at March 31, 2021			$	221,932	69,354	$	705	$	3,913,258	$	(124,049)	$	(18,897)	$	918,077	$	24,594	$	4,935,620
Net income (loss)														109,069		(40)		109,029

Other comprehensive loss												(47,966)						(47,966)
Preferred dividends														(3,737)				(3,737)
DRSPP proceeds					2			116										116

Reallocation of noncontrolling interest in the Operating Partnership														(5,866)				(5,866)

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings					(1)	0		7,591										7,591
Cash distributions declared ($0.932 per common share, none of which represented a return of capital for federal income tax purposes)																				Cash distributions declared ($0.932 per common share, none of which represented a return of capital for federal income tax purposes)													(57,665)				(57,665)
Balance at March 31, 2022																				Balance at March 31, 2022		$	221,932	64,124	$	653	$	3,792,689	$	(128,655)	$	(7,261)	$	846,646	$	13,111	$	4,739,115

Repurchases of common stock					(1,475)	(15)		(97,675)						(20,887)				(118,577)

Contributions to consolidated joint venture interests																134		134

Cash distributions to noncontrolling interests																(63)		(63)
Cash distributions declared ($0.910 per common share, none of which represented a return of capital for federal income tax purposes)														(62,524)				(62,524)
Balance at June 30, 2021			$	221,932	67,880	$	690	$	3,823,290	$	(124,049)	$	(66,863)	$	934,132	$	24,625	$	4,813,757

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Equity

(unaudited, in thousands, except per share data)


		SL Green Realty Corp. Stockholders																			SL Green Realty Corp. Stockholders
					Common Stock																			Common Stock
			Series I Preferred Stock		Shares	Par Value		Additional Paid- In-Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Noncontrolling Interests		Total				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	76,956	$	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	76,956	$	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)
Balance at December 31, 2020																				Balance at December 31, 2020		$	221,932	66,474	$	716	$	3,862,949	$	(124,049)	$	(67,247)	$	1,015,462	$	26,032	$	4,935,795

Net loss																				Net loss													(3,726)		(1,499)		(5,225)

Other comprehensive income																				Other comprehensive income											48,350						48,350
Preferred dividends	Preferred dividends													(3,738)				(3,738)		Preferred dividends													(3,738)				(3,738)
DRSPP proceeds	DRSPP proceeds				2			166										166		DRSPP proceeds				5			351										351
Conversion of units in the Operating Partnership for common stock					1			84										84

Reallocation of noncontrolling interest in the Operating Partnership	Reallocation of noncontrolling interest in the Operating Partnership													38,529				38,529		Reallocation of noncontrolling interest in the Operating Partnership													(26,609)				(26,609)

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings	Deferred compensation plan and stock awards, net of forfeitures and tax withholdings				(32)	(1)		5,503										5,502		Deferred compensation plan and stock awards, net of forfeitures and tax withholdings				110	2		6,726										6,728

Repurchases of common stock	Repurchases of common stock				(2,562)	(26)		(142,719)						(76,831)				(219,576)		Repurchases of common stock				(1,267)	(13)		(80,297)										(80,310)

Contributions to consolidated joint venture interests	Contributions to consolidated joint venture interests															3,814		3,814		Contributions to consolidated joint venture interests															171		171

Cash distributions to noncontrolling interests	Cash distributions to noncontrolling interests															(492)		(492)		Cash distributions to noncontrolling interests															(110)		(110)
Cash distributions declared ($0.304 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	74,365	$	776	$	4,146,306	$	(124,049)	$	(80,868)	$	1,099,369	$	80,499	$	5,343,965
Net income														60,181		1,023		61,204

Other comprehensive loss												(1,503)						(1,503)
Preferred dividends														(3,737)				(3,737)
DRSPP proceeds					4			198										198
Conversion of units in the Operating Partnership for common stock					97	1		8,659										8,660
Reallocation of noncontrolling interest in the Operating Partnership														(7,385)				(7,385)

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings						1		7,990										7,991
Issuance of special dividend paid primarily in stock																				Issuance of special dividend paid primarily in stock				1,974			123,529										123,529
Cash distributions declared ($0.938 per common share, none of which represented a return of capital for federal income tax purposes)																				Cash distributions declared ($0.938 per common share, none of which represented a return of capital for federal income tax purposes)													(63,312)				(63,312)
Balance at March 31, 2021																				Balance at March 31, 2021		$	221,932	67,296	$	705	$	3,913,258	$	(124,049)	$	(18,897)	$	918,077	$	24,594	$	4,935,620

Repurchases of common stock					(2,880)	(30)		(141,262)										(141,292)

Contributions to consolidated joint venture interests																4,372		4,372

Cash distributions to noncontrolling interests																(104)		(104)
Cash distributions declared ($0.911 per common share, none of which represented a return of capital for federal income tax purposes)														(66,607)				(66,607)
Balance at June 30, 2020			$	221,932	71,586	$	748	$	4,021,891	$	(124,049)	$	(82,371)	$	1,081,821	$	85,790	$	5,205,762

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

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Cash Flows

(unaudited, in thousands, except per share data)


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Operating Activities	Operating Activities					Operating Activities
Net income		$	113,279	$	193,741
Adjustments to reconcile net income to net cash provided by operating activities:
Net income (loss)						Net income (loss)	$	13,485	$	(3,855)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:						Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	127,417		169,381		Depreciation and amortization	48,931		66,770
Equity in net loss from unconsolidated joint ventures	Equity in net loss from unconsolidated joint ventures	15,834		15,013		Equity in net loss from unconsolidated joint ventures	4,715		2,864
Distributions of cumulative earnings from unconsolidated joint ventures	Distributions of cumulative earnings from unconsolidated joint ventures	174		206		Distributions of cumulative earnings from unconsolidated joint ventures	188		69
Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate	Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate	4,158		0		Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate	—		12,629
Purchase price and other fair value adjustments	Purchase price and other fair value adjustments	(717)		0		Purchase price and other fair value adjustments	63		(2,664)
Depreciable real estate reserves and impairment	Depreciable real estate reserves and impairment	5,696		0		Depreciable real estate reserves and impairment	—		8,241
Gain on sale of real estate, net		(97,572)		(137,520)
Loan loss reserves and other investment reserves, net of recoveries		0		18,061
Loss on sale of real estate, net						Loss on sale of real estate, net	1,002		1,388

Deferred rents receivable	Deferred rents receivable	(7,144)		2,577		Deferred rents receivable	(546)		(2,685)
Non-cash lease expense	Non-cash lease expense	7,538		6,547		Non-cash lease expense	6,043		3,375
Other non-cash adjustments	Other non-cash adjustments	18,137		7,648		Other non-cash adjustments	(6,964)		15,564
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Tenant and other receivables	Tenant and other receivables	(2,493)		(57,325)		Tenant and other receivables	13,673		(4,138)
Related party receivables	Related party receivables	(2,055)		4,395		Related party receivables	(2,335)		(683)
Deferred lease costs	Deferred lease costs	(3,602)		(11,143)		Deferred lease costs	(4,240)		(240)
Other assets	Other assets	15,550		(17,363)		Other assets	(25,076)		(24,354)
Accounts payable, accrued expenses, other liabilities and security deposits	Accounts payable, accrued expenses, other liabilities and security deposits	(60,592)		39,318		Accounts payable, accrued expenses, other liabilities and security deposits	28,049		(38,640)
Deferred revenue	Deferred revenue	888		(3,503)		Deferred revenue	3,550		4,121
Lease liability - operating leases	Lease liability - operating leases	(31,232)		(5,728)		Lease liability - operating leases	864		(19,160)
Net cash provided by operating activities	Net cash provided by operating activities	103,264		224,305		Net cash provided by operating activities	81,402		18,602
Investing Activities	Investing Activities					Investing Activities
Acquisitions of real estate property		(28,688)		(86,846)

Additions to land, buildings and improvements	Additions to land, buildings and improvements	(118,076)		(183,297)		Additions to land, buildings and improvements	(61,680)		(49,328)

Acquisition deposits and deferred purchase price						Acquisition deposits and deferred purchase price	(15,000)		—
Investments in unconsolidated joint ventures	Investments in unconsolidated joint ventures	(38,198)		(18,318)		Investments in unconsolidated joint ventures	(11,399)		(21,027)
Distributions in excess of cumulative earnings from unconsolidated joint ventures	Distributions in excess of cumulative earnings from unconsolidated joint ventures	417,457		76,091		Distributions in excess of cumulative earnings from unconsolidated joint ventures	16,089		19,692
Net proceeds from disposition of real estate/joint venture interest	Net proceeds from disposition of real estate/joint venture interest	398,173		249,820		Net proceeds from disposition of real estate/joint venture interest	91,994		62,800
Cash assumed from consolidation of real estate investment	Cash assumed from consolidation of real estate investment	9,475		0		Cash assumed from consolidation of real estate investment	—		9,475
Proceeds from sale or redemption of marketable securities	Proceeds from sale or redemption of marketable securities	4,528		0		Proceeds from sale or redemption of marketable securities	—		4,528
Purchases of marketable securities		(10,000)		0

Other investments	Other investments	(4,108)		(7,324)		Other investments	209		(54)
Origination of debt and preferred equity investments	Origination of debt and preferred equity investments	(74,148)		(265,574)		Origination of debt and preferred equity investments	(13,122)		(5,905)
Repayments or redemption of debt and preferred equity investments	Repayments or redemption of debt and preferred equity investments	85,106		639,267		Repayments or redemption of debt and preferred equity investments	6,405		—
Net cash provided by investing activities	Net cash provided by investing activities	641,521		403,819		Net cash provided by investing activities	13,496		20,181

Table of Contents

SL Green Realty Corp.

Consolidated Statements of Cash Flows

(unaudited, in thousands, except per share data)

Six Months Ended June 30,
2021 2020
Financing Activities
Proceeds from mortgages and other loans payable 19,772 642,196
Repayments of mortgages and other loans payable (364,994) (266,795)
Proceeds from revolving credit facility and unsecured notes 570,000 1,275,000
Repayments of revolving credit facility and unsecured notes (680,000) (815,000)
Proceeds from stock options exercised and DRSPP issuance 467 364
Repurchase of common stock (178,666) (352,048)
Redemption of preferred stock (3,631) (59,800)
Redemption of OP units (13,930) (18,066)
Distributions to noncontrolling interests in other partnerships (173) (596)
Contributions from noncontrolling interests in other partnerships 305 8,186
Acquisition of subsidiary interest from noncontrolling interest 0 (1,536)
Distributions to noncontrolling interests in the Operating Partnership (8,110) (5,110)
Dividends paid on common and preferred stock (138,373) (153,474)
Tax withholdings related to restricted share awards (2,842) (4,752)
Deferred loan costs (470) (16,510)
Principal payments of on financing lease liabilities (434) (330)
Net cash (used in) provided by financing activities (801,079) 231,729
Net (decrease) increase in cash, cash equivalents, and restricted cash (56,294) 859,853
Cash, cash equivalents, and restricted cash at beginning of year 372,795 241,430
Cash, cash equivalents, and restricted cash at end of period $ 316,501 $ 1,101,283
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Conversion of units in the Operating Partnership $ 0 $ 8,744
Redemption of units in the Operating Partnership for a joint venture sale 27,586 0
Exchange of preferred equity investment for real estate or equity in joint venture 0 119,467
Issuance of special dividend paid primarily in stock 123,529 0
Tenant improvements and capital expenditures payable 8,911 6,653
Fair value adjustment to noncontrolling interest in the Operating Partnership 32,475 31,144
Consolidation of real estate investment 119,444 0
Reversal of assets held for sale 0 391,664
Extinguishment of debt in connection with property dispositions 53,548 0
Seller financed purchases 0 100,000
Debt and preferred equity investments 5,184 4,638
Transfer of assets related to assets held for sale 0 49,687
Transfer of liabilities related to assets held for sale 0 38,272
Removal of fully depreciated commercial real estate properties 4,288 534
Share repurchase payable 20,221 8,820
Recognition of right of use assets and related lease liabilities 119,711 114,974

~~Table of Contents~~

~~SL Green Realty Corp.~~

~~Consolidated Statements of Cash Flows~~

~~(unaudited, in thousands, except per share data)~~


	Three Months Ended March 31,
	2022		2021

Financing Activities
Proceeds from mortgages and other loans payable	5,309		10,391
Repayments of mortgages and other loans payable	(55,715)		(362,542)
Proceeds from revolving credit facility and unsecured notes	320,000		530,000
Repayments of revolving credit facility and unsecured notes	(210,000)		(10,000)
Proceeds from stock options exercised and DRSPP issuance	89		351

Repurchase of common stock	(151,197)		(84,089)
Redemption of preferred stock	(17,967)		(3,631)
Redemption of OP units	(18,272)		(13,261)
Distributions to noncontrolling interests in other partnerships	(123)		(110)
Contributions from noncontrolling interests in other partnerships	—		171

Distributions to noncontrolling interests in the Operating Partnership	(4,415)		(4,148)
Dividends paid on common and preferred stock	(66,339)		(69,772)
Other obligations related to secured borrowing	77,874		—
Tax withholdings related to restricted share awards	(3,888)		(2,788)
Deferred loan costs	80		(288)
Principal payments of on financing lease liabilities	—		(255)
Net cash used in financing activities	(124,564)		(9,971)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(29,666)		28,812
Cash, cash equivalents, and restricted cash at beginning of year	336,984		372,795
Cash, cash equivalents, and restricted cash at end of period	$	307,318	$	401,607





Supplemental Disclosure of Non-Cash Investing and Financing Activities:






Issuance of special dividend paid primarily in stock	$	160,620	$	123,529
Tenant improvements and capital expenditures payable	8,700		15,214
Fair value adjustment to noncontrolling interest in the Operating Partnership	43,023		26,609
Consolidation of real estate investment	—		119,444



Extinguishment of debt in connection with property dispositions	—		53,548


Debt and preferred equity investments	—		10,000


Removal of fully depreciated commercial real estate properties	651		1,120


Share repurchase payable	—		3,779


Recognition of right of use assets and related lease liabilities	—		119,711

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Cash and cash equivalents	Cash and cash equivalents	$	218,337	$	1,015,348	Cash and cash equivalents	$	223,674	$	304,999
Restricted cash	Restricted cash	98,164		85,935		Restricted cash	83,644		96,608
Total cash, cash equivalents, and restricted cash	Total cash, cash equivalents, and restricted cash	$	316,501	$	1,101,283	Total cash, cash equivalents, and restricted cash	$	307,318	$	401,607

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

1413

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Balance Sheets

(in thousands)


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
		(unaudited)					(unaudited)
Assets	Assets					Assets
Commercial real estate properties, at cost:	Commercial real estate properties, at cost:					Commercial real estate properties, at cost:
Land and land interests	Land and land interests	$	1,403,399	$	1,315,832	Land and land interests	$	1,352,610	$	1,350,701
Building and improvements	Building and improvements	4,088,659		4,168,193		Building and improvements	3,709,795		3,671,402
Building leasehold and improvements	Building leasehold and improvements	1,642,595		1,448,134		Building leasehold and improvements	1,654,571		1,645,081
Right of use asset - financing leases		27,445		55,711

Right of use asset - operating leases	Right of use asset - operating leases	502,316		367,209		Right of use asset - operating leases	983,723		983,723
		7,664,414		7,355,079			7,700,699		7,650,907
Less: accumulated depreciation	Less: accumulated depreciation	(2,008,438)		(1,956,077)		Less: accumulated depreciation	(1,938,804)		(1,896,199)
		5,655,976		5,399,002			5,761,895		5,754,708

Assets held for sale						Assets held for sale	49,757		140,855
Cash and cash equivalents	Cash and cash equivalents	218,337		266,059		Cash and cash equivalents	223,674		251,417
Restricted cash	Restricted cash	98,164		106,736		Restricted cash	83,644		85,567
Investments in marketable securities	Investments in marketable securities	32,339		28,570		Investments in marketable securities	32,889		34,752
Tenant and other receivables	Tenant and other receivables	40,147		44,507		Tenant and other receivables	41,257		47,616
Related party receivables	Related party receivables	36,430		34,657		Related party receivables	31,711		29,408
Deferred rents receivable	Deferred rents receivable	304,140		302,791		Deferred rents receivable	250,028		248,313
Debt and preferred equity investments, net of discounts and deferred origination fees of $7,922 and $11,232 and allowances of $13,213 and $13,213 in 2021 and 2020, respectively		1,072,711		1,076,542
Debt and preferred equity investments, net of discounts and deferred origination fees of $3,670 and $5,057 and allowances of $6,630 and $6,630 in 2022 and 2021, respectively						Debt and preferred equity investments, net of discounts and deferred origination fees of $3,670 and $5,057 and allowances of $6,630 and $6,630 in 2022 and 2021, respectively	1,107,870		1,088,723
Investments in unconsolidated joint ventures	Investments in unconsolidated joint ventures	3,209,151		3,823,322		Investments in unconsolidated joint ventures	3,000,986		2,997,934
Deferred costs, net	Deferred costs, net	161,962		177,168		Deferred costs, net	122,294		124,495
Other assets	Other assets	336,807		448,213		Other assets	308,960		262,841
Total assets (1)	Total assets (1)	$	11,166,164	$	11,707,567	Total assets (1)	$	11,014,965	$	11,066,629
Liabilities	Liabilities					Liabilities
Mortgages and other loans payable, net	Mortgages and other loans payable, net	$	1,857,829	$	1,979,972	Mortgages and other loans payable, net	$	1,344,775	$	1,394,386
Revolving credit facility, net	Revolving credit facility, net	0		105,262		Revolving credit facility, net	491,998		381,334
Unsecured term loans, net	Unsecured term loans, net	1,496,062		1,495,275		Unsecured term loans, net	1,242,345		1,242,002
Unsecured notes, net	Unsecured notes, net	1,248,930		1,248,219		Unsecured notes, net	899,541		899,308
Accrued interest payable	Accrued interest payable	13,771		14,825		Accrued interest payable	21,545		12,698
Other liabilities	Other liabilities	193,321		302,798		Other liabilities	276,254		195,390
Accounts payable and accrued expenses	Accounts payable and accrued expenses	126,929		151,309		Accounts payable and accrued expenses	139,460		157,571
Deferred revenue	Deferred revenue	114,536		118,572		Deferred revenue	110,631		107,275
Lease liability - financing leases	Lease liability - financing leases	124,808		152,521		Lease liability - financing leases	103,238		102,914
Lease liability - operating leases	Lease liability - operating leases	443,313		339,458		Lease liability - operating leases	852,194		851,370
Dividend and distributions payable	Dividend and distributions payable	24,407		149,294		Dividend and distributions payable	23,628		187,372
Security deposits	Security deposits	54,797		53,836		Security deposits	54,179		52,309

Liabilities related to assets held for sale						Liabilities related to assets held for sale	64,041		64,120
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities	Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities	100,000		100,000		Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities	100,000		100,000
Total liabilities (1)	Total liabilities (1)	5,798,703		6,211,341		Total liabilities (1)	5,723,829		5,748,049
Commitments and contingencies	Commitments and contingencies	0		0		Commitments and contingencies	0		0
Limited partner interests in SLGOP (3,808 and 3,939 limited partner common units outstanding at June 30, 2021 and December 31, 2020, respectively)		355,201		358,262
Limited partner interests in SLGOP (4,095 and 3,782 limited partner common units outstanding at March 31, 2022 and December 31, 2021, respectively)						Limited partner interests in SLGOP (4,095 and 3,782 limited partner common units outstanding at March 31, 2022 and December 31, 2021, respectively)	374,078		344,252
Preferred units	Preferred units	198,503		202,169		Preferred units	177,943		196,075

1514

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Balance Sheets

(in thousands)


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
		(unaudited)					(unaudited)
Capital	Capital					Capital
SLGOP partners' capital:	SLGOP partners' capital:					SLGOP partners' capital:
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2021 and December 31, 2020		221,932		221,932
SL Green partners' capital (717 and 724 general partner common units and 67,163 and 67,784 limited partner common units outstanding at June 30, 2021 and December 31, 2020, respectively)		4,634,063		4,755,078
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2022 and December 31, 2021						Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both March 31, 2022 and December 31, 2021	221,932		221,932
SL Green partners' capital (682 and 677 general partner common units and 63,442 and 63,428 limited partner common units outstanding at March 31, 2022 and December 31, 2021, respectively)						SL Green partners' capital (682 and 677 general partner common units and 63,442 and 63,428 limited partner common units outstanding at March 31, 2022 and December 31, 2021, respectively)	4,511,333		4,589,702
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(66,863)		(67,247)		Accumulated other comprehensive loss	(7,261)		(46,758)
Total SLGOP partners' capital	Total SLGOP partners' capital	4,789,132		4,909,763		Total SLGOP partners' capital	4,726,004		4,764,876
Noncontrolling interests in other partnerships	Noncontrolling interests in other partnerships	24,625		26,032		Noncontrolling interests in other partnerships	13,111		13,377
Total capital	Total capital	4,813,757		4,935,795		Total capital	4,739,115		4,778,253
Total liabilities and capital	Total liabilities and capital	$	11,166,164	$	11,707,567	Total liabilities and capital	$	11,014,965	$	11,066,629

(1) The Operating Partnership's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $179.6 million and $41.2 million of land, $281.0 million and $57.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $53.2 million and $37.8 million of right of use assets, $17.3 million and $10.3 million of accumulated depreciation, $291.4 million and $289.5 million of other assets included in other line items, $377.1 million and $94.0 million of real estate debt, net, $1.1 million and $0.7 million of accrued interest payable, $45.4 million and $29.9 million of lease liabilities, and $23.6 million and $56.6 million of other liabilities included in other line items as of June 30, 2021 and December 31, 2020, respectively.
(1) The Operating Partnership's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $179.6 million and $193.4 million of land, $291.2 million and $336.9 million of building and improvements, $— million and $— million of building and leasehold improvements, $15.4 million and $15.4 million of right of use assets, $11.5 million and $11.7 million of accumulated depreciation, $569.7 million and $574.4 million of other assets included in other line items, $372.5 million and $418.9 million of real estate debt, net, $0.8 million and $0.8 million of accrued interest payable, $15.3 million and $15.3 million of lease liabilities, and $226.4 million and $145.2 million of other liabilities included in other line items as of March 31, 2022 and December 31, 2021, respectively.						(1) The Operating Partnership's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $179.6 million and $193.4 million of land, $291.2 million and $336.9 million of building and improvements, $— million and $— million of building and leasehold improvements, $15.4 million and $15.4 million of right of use assets, $11.5 million and $11.7 million of accumulated depreciation, $569.7 million and $574.4 million of other assets included in other line items, $372.5 million and $418.9 million of real estate debt, net, $0.8 million and $0.8 million of accrued interest payable, $15.3 million and $15.3 million of lease liabilities, and $226.4 million and $145.2 million of other liabilities included in other line items as of March 31, 2022 and December 31, 2021, respectively.

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

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,
	2022		2021
Revenues
Rental revenue, net	$	156,031	$	188,089

Investment income	19,888		19,273
Other income	12,045		18,740
Total revenues	187,964		226,102
Expenses
Operating expenses, including related party expenses of $2,523 in 2022 and $2,225 in 2021	42,583		42,284
Real estate taxes	30,747		45,411
Operating lease rent	6,564		6,739
Interest expense, net of interest income	15,070		23,388
Amortization of deferred financing costs	1,948		3,774
Depreciation and amortization	46,983		62,996

Transaction related costs	28		22
Marketing, general and administrative	24,776		22,885
Total expenses	168,699		207,499


Equity in net loss from unconsolidated joint ventures	(4,715)		(2,864)
Equity in net loss on sale of interest in unconsolidated joint venture/real estate	—		(12,629)
Purchase price and other fair value adjustments	(63)		2,664
Loss on sale of real estate, net	(1,002)		(1,388)
Depreciable real estate reserves and impairment	—		(8,241)





Net income (loss)	13,485		(3,855)
Net (income) loss attributable to noncontrolling interests:
Noncontrolling interests in other partnerships	143		1,499
Preferred units distributions	(1,647)		(1,846)
Net income (loss) attributable to SLGOP	11,981		(4,202)
Perpetual preferred unit distributions	(3,738)		(3,738)
Net income (loss) attributable to SLGOP common unitholders	$	8,243	$	(7,940)






















Basic earnings (loss) per unit	$	0.12	$	(0.12)










Diluted earnings (loss) per unit	$	0.11	$	(0.12)

Basic weighted average common units outstanding	68,470		71,109
Diluted weighted average common units and common unit equivalents outstanding	70,228		72,004

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

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Statements of ~~Operations~~

~~(unaudited, in thousands, except per unit data)~~

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Revenues
Rental revenue, net $ 184,611 $ 195,886 $ 372,700 $ 418,517
Investment income 20,107 39,943 39,380 78,476
Other income 13,389 17,870 32,129 71,009
Total revenues 218,107 253,699 444,209 568,002
Expenses
Operating expenses, including related party expenses of $3,039 and $5,264 in 2021 and $2,739 and $6,488 in 2020 43,883 40,897 86,167 94,763
Real estate taxes 43,768 41,661 89,179 88,283
Operating lease rent 6,707 7,831 13,446 15,198
Interest expense, net of interest income 18,960 30,070 42,348 67,564
Amortization of deferred financing costs 3,386 2,661 7,160 5,161
Depreciation and amortization 57,261 95,941 120,257 164,220
Loan loss and other investment reserves, net of recoveries 0 6,813 0 18,061
Transaction related costs 3 373 25 438
Marketing, general and administrative 22,064 23,510 44,949 43,080
Total expenses 196,032 249,757 403,531 496,768
Equity in net loss from unconsolidated joint ventures (12,970) (2,199) (15,834) (15,013)
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate 8,471 0 (4,158) 0
Purchase price and other fair value adjustments (1,947) 0 717 0
Gain on sale of real estate, net 98,960 64,884 97,572 137,520
Depreciable real estate reserves and impairment 2,545 0 (5,696) 0
Net income 117,134 66,627 113,279 193,741
Net income attributable to noncontrolling interests:
Noncontrolling interests in other partnerships 40 (1,023) 1,539 (730)
Preferred units distributions (1,823) (2,353) (3,669) (5,019)
Net income attributable to SLGOP 115,351 63,251 111,149 187,992
Perpetual preferred unit distributions (3,737) (3,737) (7,475) (7,475)
Net income attributable to SLGOP common unitholders $ 111,614 $ 59,514 $ 103,674 $ 180,517
Basic earnings per unit $ 1.52 $ 0.76 $ 1.41 $ 2.28
Diluted earnings per unit $ 1.51 $ 0.76 $ 1.40 $ 2.28
Basic weighted average common units outstanding 73,073 77,658 73,117 78,768
Diluted weighted average common units and common unit equivalents outstanding 73,727 78,066 73,899 79,208

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

~~Table of Contents~~

~~SL Green Operating Partnership, L.P.~~

~~Consolidated Statements of~~ Comprehensive Income

(unaudited, in thousands)

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net income $ 117,134 $ 66,627 $ 113,279 $ 193,741
Other comprehensive (loss) income:
Decrease in unrealized value of derivative instruments, including SLGOP's share of joint venture derivative instruments (51,313) (3,590) (50) (54,325)
Increase (decrease) in unrealized value of marketable securities 506 1,992 248 (2,542)
Other comprehensive (loss) income (50,807) (1,598) 198 (56,867)
Comprehensive income 66,327 65,029 113,477 136,874
Net loss (income) attributable to noncontrolling interests 40 (1,023) 1,539 (730)
Other comprehensive loss attributable to noncontrolling interests 2,841 95 186 2,981
Comprehensive income attributable to SLGOP $ 69,208 $ 64,101 $ 115,202 $ 139,125


	Three Months Ended March 31,
	2022		2021
Net income (loss)	$	13,485	$	(3,855)
Other comprehensive income:
Increase in unrealized value of derivative instruments, including SLGOP's share of joint venture derivative instruments	43,567		51,263
Decrease in unrealized value of marketable securities	(1,793)		(258)
Other comprehensive income	41,774		51,005
Comprehensive income	55,259		47,150
Net loss attributable to noncontrolling interests and preferred units distributions	143		1,499
Other comprehensive income attributable to noncontrolling interests	(2,277)		(2,655)
Comprehensive income attributable to SLGOP	$	53,125	$	45,994

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

1817

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, 2020 $ 221,932 68,508 $ 4,755,078 $ (67,247) $ 26,032 $ 4,935,795
Net loss (3,726) (1,499) (5,225)
Other comprehensive income 48,350 48,350
Preferred distributions (3,738) (3,738)
DRSPP proceeds 5 351 351
Reallocation of noncontrolling interests in the operating partnership (26,609) (26,609)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings 113 6,728 6,728
Repurchases of common units (1,306) (80,310) (80,310)
Contribution to consolidated joint venture interests 171 171
Cash distributions to noncontrolling interests (110) (110)
Issuance of special distribution paid primarily in units 2,034 123,529 123,529
Cash distributions declared ($0.910 per common unit, none of which represented a return of capital for federal income tax purposes) (63,312) (63,312)
Balance at March 31, 2021 $ 221,932 69,354 $ 4,707,991 $ (18,897) $ 24,594 $ 4,935,620
Net income (loss) 109,069 (40) 109,029
Other comprehensive loss (47,966) (47,966)
Preferred distributions (3,737) (3,737)
DRSPP proceeds 2 116 116
Reallocation of noncontrolling interests in the operating partnership (5,866) (5,866)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings (1) 7,591 7,591
Repurchases of common stock (1,475) (118,577) (118,577)
Contribution to consolidated joint venture interests 134 134
Cash distributions to noncontrolling interests (63) (63)
Cash distributions declared ($0.910 per common unit, none of which represented a return of capital for federal income tax purposes) (62,524) (62,524)
Balance at June 30, 2021 $ 221,932 67,880 $ 4,634,063 $ (66,863) $ 24,625 $ 4,813,757


	SL Green Operating Partnership Unitholders
			Partners' Interest
	Series I Preferred Units		Common Units	Common Unitholders		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total
Balance at December 31, 2021	$	221,932	64,105	$	4,589,702	$	(46,758)	$	13,377	$	4,778,253


Net income				11,489				(143)		11,346

Other comprehensive income						39,497				39,497
Preferred distributions				(3,738)						(3,738)
DRSPP proceeds			1	89						89

Reallocation of noncontrolling interests in the Operating Partnership				(43,023)						(43,023)

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings			28	5,056						5,056


Repurchases of common units			(1,971)	(151,197)						(151,197)



Cash distributions to noncontrolling interests								(123)		(123)
Issuance of special distribution paid primarily in units			1,961	160,620						160,620
Cash distributions declared ($0.932 per common unit, none of which represented a return of capital for federal income tax purposes)				(57,665)						(57,665)
Balance at March 31, 2022	$	221,932	64,124	$	4,511,333	$	(7,261)	$	13,111	$	4,739,115

1918

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, 2019 $ 221,932 76,956 $ 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 76,956 $ 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 (32) 5,502 5,502
Repurchases of common stock (2,562) (219,576) (219,576)
Contribution to consolidated joint venture interests 3,814 3,814
Cash distributions to noncontrolling interests (492) (492)
Cash distributions declared ($0.304 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 74,365 $ 5,122,402 $ (80,868) $ 80,499 $ 5,343,965
Net income 60,181 1,023 61,204
Other comprehensive loss (1,503) (1,503)
Preferred distributions (3,737) (3,737)
DRSPP proceeds 4 198 198
Conversion of common units 97 8,660 8,660
Reallocation of noncontrolling interests in the operating partnership (7,385) (7,385)
Deferred compensation plan and stock awards, net of forfeitures and tax withholdings 0 7,991 7,991
Repurchases of common stock (2,880) (141,292) (141,292)
Contribution to consolidated joint venture interests 4,372 4,372
Cash distributions to noncontrolling interests (104) (104)
Cash distributions declared ($0.911 per common unit, none of which represented a return of capital for federal income tax purposes) (66,607) (66,607)
Balance at June 30, 2020 $ 221,932 71,586 $ 4,980,411 $ (82,371) $ 85,790 $ 5,205,762


	SL Green Operating Partnership Unitholders
			Partners' Interest
	Series I Preferred Units		Common Units	Common Unitholders		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total
Balance at December 31, 2020	$	221,932	66,474	$	4,755,078	$	(67,247)	$	26,032	$	4,935,795


Net loss				(3,726)				(1,499)		(5,225)

Other comprehensive income						48,350				48,350
Preferred distributions				(3,738)						(3,738)
DRSPP proceeds			5	351						351

Reallocation of noncontrolling interests in the Operating Partnership				(26,609)						(26,609)

Deferred compensation plan and stock awards, net of forfeitures and tax withholdings			110	6,728						6,728


Repurchases of common stock			(1,267)	(80,310)						(80,310)
Contribution to consolidated joint venture interests								171		171


Cash distributions to noncontrolling interests								(110)		(110)
Issuance of special distribution paid primarily in units			1,974	123,529						123,529
Cash distributions declared ($0.938 per common unit, none of which represented a return of capital for federal income tax purposes)				(63,312)						(63,312)
Balance at March 31, 2021	$	221,932	67,296	$	4,707,991	$	(18,897)	$	24,594	$	4,935,620

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

2019

Table of Contents

SL Green Operating Partnership, L.P.

Consolidated Statements of Cash Flows

(unaudited, in thousands)


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Operating Activities	Operating Activities					Operating Activities
Net income		$	113,279	$	193,741
Adjustments to reconcile net income to net cash provided by operating activities:
Net income (loss)						Net income (loss)	$	13,485	$	(3,855)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:						Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	127,417		169,381		Depreciation and amortization	48,931		66,770
Equity in net loss from unconsolidated joint ventures	Equity in net loss from unconsolidated joint ventures	15,834		15,013		Equity in net loss from unconsolidated joint ventures	4,715		2,864
Distributions of cumulative earnings from unconsolidated joint ventures	Distributions of cumulative earnings from unconsolidated joint ventures	174		206		Distributions of cumulative earnings from unconsolidated joint ventures	188		69
Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate	Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate	4,158		0		Equity in net loss on sale of interest in unconsolidated joint venture interest/real estate	—		12,629
Purchase price and other fair value adjustments	Purchase price and other fair value adjustments	(717)		0		Purchase price and other fair value adjustments	63		(2,664)
Depreciable real estate reserves and impairment	Depreciable real estate reserves and impairment	5,696		0		Depreciable real estate reserves and impairment	—		8,241
Gain on sale of real estate, net		(97,572)		(137,520)
Loan loss reserves and other investment reserves, net of recoveries		0		18,061
Loss on sale of real estate, net						Loss on sale of real estate, net	1,002		1,388

Deferred rents receivable	Deferred rents receivable	(7,144)		2,577		Deferred rents receivable	(546)		(2,685)
Non-cash lease expense	Non-cash lease expense	7,538		6,547		Non-cash lease expense	6,043		3,375
Other non-cash adjustments	Other non-cash adjustments	18,137		7,648		Other non-cash adjustments	(6,964)		15,564
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Tenant and other receivables	Tenant and other receivables	(2,493)		(57,325)		Tenant and other receivables	13,673		(4,138)
Related party receivables	Related party receivables	(2,055)		4,395		Related party receivables	(2,335)		(683)
Deferred lease costs	Deferred lease costs	(3,602)		(11,143)		Deferred lease costs	(4,240)		(240)
Other assets	Other assets	15,550		(17,363)		Other assets	(25,076)		(24,354)
Accounts payable, accrued expenses, other liabilities and security deposits	Accounts payable, accrued expenses, other liabilities and security deposits	(60,592)		39,318		Accounts payable, accrued expenses, other liabilities and security deposits	28,049		(38,640)
Deferred revenue	Deferred revenue	888		(3,503)		Deferred revenue	3,550		4,121
Lease liability - operating leases	Lease liability - operating leases	(31,232)		(5,728)		Lease liability - operating leases	864		(19,160)
Net cash provided by operating activities	Net cash provided by operating activities	103,264		224,305��		Net cash provided by operating activities	81,402		18,602
Investing Activities	Investing Activities					Investing Activities
Acquisitions of real estate property		(28,688)		(86,846)

Additions to land, buildings and improvements	Additions to land, buildings and improvements	(118,076)		(183,297)		Additions to land, buildings and improvements	(61,680)		(49,328)

Acquisition deposits and deferred purchase price						Acquisition deposits and deferred purchase price	(15,000)		—
Investments in unconsolidated joint ventures	Investments in unconsolidated joint ventures	(38,198)		(18,318)		Investments in unconsolidated joint ventures	(11,399)		(21,027)
Distributions in excess of cumulative earnings from unconsolidated joint ventures	Distributions in excess of cumulative earnings from unconsolidated joint ventures	417,457		76,091		Distributions in excess of cumulative earnings from unconsolidated joint ventures	16,089		19,692
Net proceeds from disposition of real estate/joint venture interest	Net proceeds from disposition of real estate/joint venture interest	398,173		249,820		Net proceeds from disposition of real estate/joint venture interest	91,994		62,800
Cash assumed from consolidation of real estate investment	Cash assumed from consolidation of real estate investment	9,475		0		Cash assumed from consolidation of real estate investment	—		9,475
Proceeds from sale or redemption of marketable securities	Proceeds from sale or redemption of marketable securities	4,528		0		Proceeds from sale or redemption of marketable securities	—		4,528
Purchases of marketable securities		(10,000)		0

Other investments	Other investments	(4,108)		(7,324)		Other investments	209		(54)
Origination of debt and preferred equity investments	Origination of debt and preferred equity investments	(74,148)		(265,574)		Origination of debt and preferred equity investments	(13,122)		(5,905)
Repayments or redemption of debt and preferred equity investments	Repayments or redemption of debt and preferred equity investments	85,106		639,267		Repayments or redemption of debt and preferred equity investments	6,405		—
Net cash provided by investing activities	Net cash provided by investing activities	641,521		403,819		Net cash provided by investing activities	13,496		20,181

Financing Activities	Financing Activities					Financing Activities
Proceeds from mortgages and other loans payable	Proceeds from mortgages and other loans payable	19,772		642,196		Proceeds from mortgages and other loans payable	5,309		10,391
Repayments of mortgages and other loans payable	Repayments of mortgages and other loans payable	(364,994)		(266,795)		Repayments of mortgages and other loans payable	(55,715)		(362,542)
Proceeds from revolving credit facility and unsecured notes	Proceeds from revolving credit facility and unsecured notes	570,000		1,275,000		Proceeds from revolving credit facility and unsecured notes	320,000		530,000
Repayments of revolving credit facility and unsecured notes	Repayments of revolving credit facility and unsecured notes	(680,000)		(815,000)		Repayments of revolving credit facility and unsecured notes	(210,000)		(10,000)
Proceeds from stock options exercised and DRSPP issuance	Proceeds from stock options exercised and DRSPP issuance	467		364		Proceeds from stock options exercised and DRSPP issuance	89		351

Repurchase of common units	Repurchase of common units	(178,666)		(352,048)		Repurchase of common units	(151,197)		(84,089)
Redemption of preferred units						Redemption of preferred units	(17,967)		(3,631)
Redemption of OP units						Redemption of OP units	(18,272)		(13,261)

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SL Green Operating Partnership, L.P.

Consolidated Statements of Cash Flows

(unaudited, in thousands)


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Redemption of preferred units		(3,631)		(59,800)
Redemption of OP units		(13,930)		(18,066)
Distributions to noncontrolling interests in other partnerships	Distributions to noncontrolling interests in other partnerships	(173)		(596)		Distributions to noncontrolling interests in other partnerships	(123)		(110)
Contributions from noncontrolling interests in other partnerships	Contributions from noncontrolling interests in other partnerships	305		8,186		Contributions from noncontrolling interests in other partnerships	—		171
Acquisition of subsidiary interest from noncontrolling interest		0		(1,536)

Distributions paid on common and preferred units	Distributions paid on common and preferred units	(146,483)		(158,584)		Distributions paid on common and preferred units	(70,754)		(73,920)

Other obligations related to secured borrowing						Other obligations related to secured borrowing	77,874		—
Tax withholdings related to restricted share awards	Tax withholdings related to restricted share awards	(2,842)		(4,752)		Tax withholdings related to restricted share awards	(3,888)		(2,788)
Deferred loan costs	Deferred loan costs	(470)		(16,510)		Deferred loan costs	80		(288)
Principal payments of on financing lease liabilities	Principal payments of on financing lease liabilities	(434)		(330)		Principal payments of on financing lease liabilities	—		(255)
Net cash (used in) provided by financing activities		(801,079)		231,729
Net cash used in financing activities						Net cash used in financing activities	(124,564)		(9,971)
Net (decrease) increase in cash, cash equivalents, and restricted cash	Net (decrease) increase in cash, cash equivalents, and restricted cash	(56,294)		859,853		Net (decrease) increase in cash, cash equivalents, and restricted cash	(29,666)		28,812
Cash, cash equivalents, and restricted cash at beginning of year	Cash, cash equivalents, and restricted cash at beginning of year	372,795		241,430		Cash, cash equivalents, and restricted cash at beginning of year	336,984		372,795
Cash, cash equivalents, and restricted cash at end of period	Cash, cash equivalents, and restricted cash at end of period	$	316,501	$	1,101,283	Cash, cash equivalents, and restricted cash at end of period	$	307,318	$	401,607

Supplemental Disclosure of Non-Cash Investing and Financing Activities:	Supplemental Disclosure of Non-Cash Investing and Financing Activities:					Supplemental Disclosure of Non-Cash Investing and Financing Activities:

Conversion of units in the Operating Partnership		$	0	$	8,744
Redemption of units in the Operating Partnership for a joint venture sale		27,586		0
Exchange of preferred equity investment for real estate or equity in joint venture		0		119,467

Issuance of special distribution paid primarily in units	Issuance of special distribution paid primarily in units	123,529		0		Issuance of special distribution paid primarily in units	$	160,620	$	123,529
Tenant improvements and capital expenditures payable	Tenant improvements and capital expenditures payable	8,911		6,653		Tenant improvements and capital expenditures payable	8,700		15,214
Fair value adjustment to noncontrolling interest in the Operating Partnership	Fair value adjustment to noncontrolling interest in the Operating Partnership	32,475		31,144		Fair value adjustment to noncontrolling interest in the Operating Partnership	43,023		26,609
Consolidation of real estate investment	Consolidation of real estate investment	119,444		0		Consolidation of real estate investment	—		119,444

Reversal of assets held for sale		0		391,664

Extinguishment of debt in connection with property dispositions	Extinguishment of debt in connection with property dispositions	53,548		0		Extinguishment of debt in connection with property dispositions	—		53,548
Seller financed purchases		0		100,000

Debt and preferred equity investments	Debt and preferred equity investments	5,184		4,638		Debt and preferred equity investments	—		10,000
Transfer of assets related to assets held for sale		0		49,687
Transfer of liabilities related to assets held for sale		0		38,272

Removal of fully depreciated commercial real estate properties	Removal of fully depreciated commercial real estate properties	4,288		534		Removal of fully depreciated commercial real estate properties	651		1,120

Share repurchase payable	Share repurchase payable	20,221		8,820		Share repurchase payable	—		3,779

Recognition of right of use assets and related lease liabilities	Recognition of right of use assets and related lease liabilities	119,711		114,974		Recognition of right of use assets and related lease liabilities	—		119,711


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Cash and cash equivalents	Cash and cash equivalents	$	218,337	$	1,015,348	Cash and cash equivalents	$	223,674	$	304,999
Restricted cash	Restricted cash	98,164		85,935		Restricted cash	83,644		96,608
Total cash, cash equivalents, and restricted cash	Total cash, cash equivalents, and restricted cash	$	316,501	$	1,101,283	Total cash, cash equivalents, and restricted cash	$	307,318	$	401,607

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

2221

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

Notes to Consolidated Financial Statements

~~June 30, 2021~~March 31, 2022

(unaudited)

1. Organization and Basis of Presentation

SL Green Realty Corp., which is referred to as the Company or SL Green, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Operating Partnership received a contribution of interest in the real estate properties, as well as 95% of the economic interest in the management, leasing and construction companies which are referred to as S.L. Green Management Corp, or the Service Corporation. All of the management, leasing and construction services that are provided to the properties that are wholly-owned by us and that are provided to certain joint ventures are conducted through SL Green Management LLC and SLS.L. Green Management Corp., respectively, which are 100% owned by the Operating Partnership. The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT. A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to minimize the payment of Federal income taxes at the corporate level. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.

Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. The Company is the sole managing general partner of the Operating Partnership. As of ~~June 30, 2021,~~March 31, 2022, noncontrolling investors held, in the aggregate, a ~~5.31%~~6.00% limited partnership interest in the Operating Partnership. We refer to these interests as the noncontrolling interests in the Operating Partnership. The Operating Partnership is considered a variable interest entity, or VIE, in which we are the primary beneficiary. See Note 11, "Noncontrolling Interests on the Company's Consolidated Financial Statements."

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

As of ~~June 30, 2021,~~March 31, 2022, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:


				Consolidated		Unconsolidated		Total							Consolidated			Unconsolidated		Total
Location	Location	Property Type		Number of Buildings	Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Weighted Average Occupancy(1) (unaudited)		Location	Property Type		Number of Buildings		Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Weighted Average Occupancy(1) (unaudited)
Commercial:	Commercial:											Commercial:
Manhattan	Manhattan	Office		16	10,259,345	9	10,869,183	25	21,128,528	93.0	%	Manhattan	Office		12		8,180,345	11	13,661,381	23	21,841,726	91.5	%
		Retail		1	10,040	9	301,996	10	312,036	90.5	%		Retail		2	(2)	17,888	9	301,996	11	319,884	91.2	%
		Development/Redevelopment	(1)	7	1,912,984	3	2,927,782	10	4,840,766	N/A			Development/Redevelopment	(1)	6		2,230,282	2	1,618,310	8	3,848,592	N/A
													Fee Interest		1		7,684	—	—	1	7,684	N/A
				24	12,182,369	21	14,098,961	45	26,281,330	93.0	%				21		10,436,199	22	15,581,687	43	26,017,886	91.5	%
Suburban	Suburban	Office		7	862,800	0	0	7	862,800	82.4	%	Suburban	Office		7		862,800	—	—	7	862,800	78.6	%

Total commercial properties	Total commercial properties			31	13,045,169	21	14,098,961	52	27,144,130	92.6	%	Total commercial properties			28		11,298,999	22	15,581,687	50	26,880,686	91.0	%
Residential:	Residential:											Residential:
Manhattan	Manhattan	Residential		1	82,250	7	736,416	8	818,666	74.0	%	Manhattan	Residential		2	(2)	222,632	6	445,934	8	668,566	87.9	%

Total portfolio	Total portfolio			32	13,127,419	28	14,835,377	60	27,962,796	92.0	%	Total portfolio			30		11,521,631	28	16,027,621	58	27,549,252	91.0	%

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

(2)As of ~~June 30, 2021,~~March 31, 2022, we owned a building at 7 Dey / 185 Broadway that was comprised of approximately 50,206 square feet (unaudited) of retail space and approximately 140,382 square feet (unaudited) of residential space. For the purpose of this report, we have included this building in the number of retail properties we own. However, we have included only the retail square footage in the retail approximate square footage, and have listed the balance of the square footage as residential square footage.

As of March 31, 2022, we also ~~managed 2~~manage 1 office ~~buildings~~building owned by a third ~~parties~~party encompassing approximately ~~2.1~~0.3 million square feet (unaudited), and held debt and preferred equity investments with a book value of $1.1 billion, excluding ~~less than $0.1 billion of~~ debt and preferred equity investments and other financing receivables totaling less than $0.1 billion that are included in balance sheet line items other than the Debt and preferred equity investments line item.

Partnership Agreement

In accordance with the partnership agreement of the Operating Partnership, or the Operating Partnership Agreement, we allocate all distributions and profits and losses in proportion to the percentage of ownership interests of the respective partners, subject to the priority distributions with respect to preferred units and special provisions that apply to Long Term Incentive Plan ("LTIP") Units. As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to minimize any Federal income or excise tax at the Company level. Under the Operating Partnership Agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of SL Green's common stock on a one-for-1 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 ~~June 30, 2021~~March 31, 2022 and the results of operations for the periods presented have been included. The operating results for the period presented are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2021.~~2022. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 of the Company and the Operating Partnership.

Table of Contents

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

The consolidated balance sheet at December 31, ~~2020~~2021 has been derived from the audited financial statements as of that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

Subsequent Events

In ~~July 2021,~~April 2022, the Company ~~sold a 49% joint venture interest~~closed on the sale of 1080 Amsterdam Avenue and its remaining interests in ~~220 East 42nd Street~~the Stonehenge portfolio for a gross ~~asset valuation~~sales price of ~~$783.5~~$42.7 million and gross consideration of $790.1 million. The Company retained a 51% interest in the joint venture and will continue to oversee management and leasing of the property. At June 30, 2021, we determined that the held for sale criteria was not met for this property.$1.0 million, respectively.

2. Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method. See Note 5, "Debt and Preferred Equity Investments" and Note 6, "Investments in Unconsolidated Joint Ventures." All significant intercompany balances and transactions have been eliminated.

We consolidate a VIE in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

Investment in Commercial Real Estate Properties

We allocate the purchase price of real estate to land and building (inclusive of tenant improvements) and, if determined to be material, intangibles, such as the value of above- and below-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building (inclusive of tenant improvements) over their estimated useful lives, which generally range from 3 years to 40 years. We amortize the amount allocated to the above- and below-market leases over the remaining term of the associated lease, which generally range from 1 year to 15 years, and record it as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income. We amortize the amount allocated to the values associated with in-place leases over the expected term of the associated lease, which generally ranges from 1 year to 15 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period.

The Company classifies those leases under which the Company is the lessee at lease commencement as finance or operating leases. Leases qualify as finance leases if the lease transfers ownership of the asset at the end of the lease term, the lease grants an option to purchase the asset that we are reasonably certain to exercise, the lease term is for a major part of the remaining economic life of the asset, or the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. At lease commencement the Company records a lease liability which is measured as the present value of the lease payments and a right of use asset which is measured as the amount of the lease liability and any initial direct costs incurred. The Company applies a discount rate to determine the present value of the lease payments. If the rate implicit in the lease is known, the Company uses that rate. If the rate implicit in the lease is not known, the Company uses a discount rate reflective of the Company’s collateralized borrowing rate given the term of the lease. To determine the discount rate, the Company employs a third party specialist to develop an analysis based primarily on the observable borrowing rates of the Company, other REITs, and other corporate borrowers with long-term borrowings. On the consolidated statements of operations, operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense. ~~On the consolidated balance sheets, 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.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the fair value of the property as calculated in accordance with Accounting Standards Codification, or ASC 820. We also evaluate our real estate properties for impairment when a property has been classified as held for sale. Real estate assets held for sale are valued at the lower of their carrying value or fair value less costs to sell and depreciation expense is no longer recorded.

For the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, we recognized a reduction of rental revenue of ($~~1.9~~0.1 million) and ($~~3.8~~1.9 million), respectively, for the amortization of aggregate above-market leases in excess of below-market leases resulting from the allocation of the purchase price of the applicable properties. For the three and six months ended June 30, 2020 , we recognized $1.6 million and $2.9 million, respectively, of additional rental revenue 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 ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Identified intangible assets (included in other assets):	Identified intangible assets (included in other assets):					Identified intangible assets (included in other assets):
Gross amount	Gross amount	$	220,873	$	215,673	Gross amount	$	199,722	$	199,722
Accumulated amortization	Accumulated amortization	(190,828)		(190,523)		Accumulated amortization	(184,129)		(182,643)
Net(1)	Net(1)	$	30,045	$	25,150	Net (1)	$	15,593	$	17,079
Identified intangible liabilities (included in deferred revenue):	Identified intangible liabilities (included in deferred revenue):					Identified intangible liabilities (included in deferred revenue):
Gross amount	Gross amount	$	225,029	$	241,409	Gross amount	$	212,767	$	212,767
Accumulated amortization	Accumulated amortization	(217,907)		(230,479)		Accumulated amortization	(210,454)		(210,262)
Net(1)	Net(1)	$	7,122	$	10,930	Net (1)	$	2,313	$	2,505

(1)As of ~~June 30, 2021 and December~~March 31, ~~2020, 0~~2022, no net intangible assets and 0no net intangible liabilities were reclassified to assets held for sale or liabilities related to assets held for sale. As of December 31, 2021, $1.8 million of net intangible assets and no net intangible liabilities were reclassified to assets held for sale and liabilities related to assets held for sale.

Cash and Cash Equivalents

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

Restricted Cash

Restricted cash primarily consists of security deposits held on behalf of our tenants, interest reserves, as well as capital improvement and real estate tax escrows required under certain loan agreements.

Fair Value Measurements

See Note 16, "Fair Value Measurements."

Investment in Marketable Securities

At acquisition, we designate a debt security as held-to-maturity, available-for-sale, or trading. As of ~~June 30, 2021,~~March 31, 2022, we did not have any debt securities designated as held-to-maturity or trading. We account for our available-for-sale securities at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive income or loss. The cost of marketable securities sold and the amount reclassified out of accumulated other comprehensive income into earnings is determined using the specific identification method. Credit losses are recognized in accordance with ASC 326. We account for our equity marketable securities at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported in net income.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

~~At June 30, 2021~~As of March 31, 2022 and December 31, ~~2020,~~2021, we held the following marketable securities (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Commercial mortgage-backed securities	Commercial mortgage-backed securities	$	24,289	$	28,570	Commercial mortgage-backed securities	$	22,353	$	24,146
Total marketable securities available-for-sale	Total marketable securities available-for-sale	$	24,289	$	28,570	Total marketable securities available-for-sale	$	22,353	$	24,146

Equity marketable securities	Equity marketable securities	$	8,050	$	0	Equity marketable securities	$	10,536	$	10,606
Total investment in marketable securities	Total investment in marketable securities	$	32,339	$	28,570	Total investment in marketable securities	$	32,889	$	34,752

The cost basis of the commercial mortgage-backed securities was $23.0 million as of March 31, 2022 and ~~$27.5 million at June 30, 2021 and~~as of December 31, ~~2020, respectively.~~2021. These securities mature at various times through 2035. All securities were in an unrealized gain position ~~at June 30, 2021~~as of March 31, 2022 and December 31, ~~2020~~2021 except for 1 security, which had an unrealized loss of ~~$0.6~~$2.1 million and a fair market value of ~~$7.1~~$5.7 million ~~at June 30, 2021,~~as of March 31, 2022, and an unrealized loss of ~~$0.7~~$0.6 million and a fair value of ~~$7.0~~$7.2 million atas of December 31, ~~2020.~~2021. This marketable security was in a continuous unrealized loss position for more than 12 months ~~at June 30, 2021~~as of March 31, 2022 and ~~less than 12 months at~~ December 31, ~~2020.~~2021. We do not intend to sell these securities, and it is more likely than not that we will not be required to sell the investments before recovery of their amortized cost bases.

We held equity marketable securities as of ~~June 30, 2021~~March 31, 2022 and 0December 31, 2021. We recognized $0.1 million of unrealized loss for the three months ended March 31, 2022. We did not hold any equity marketable securities ~~as of December 31, 2020. We recognized $1.9 million of unrealized losses for both~~during the three ~~and six~~ months ended ~~June 30,~~March 31, 2021.

We did not dispose of any debt or equity marketable securities during the three months ended ~~June 30, 2021.~~March 31, 2022. During the ~~six~~three months ended ~~June 30,~~March 31, 2021, we received aggregate net proceeds of $5.0 million from the repayment of 1 debt marketable security. ~~During the three and six months ended June 30, 2020, we did 0t dispose of or receive repayment of any debt or equity marketable securities.~~

Investments in Unconsolidated Joint Ventures

We assess our investments in unconsolidated joint ventures for recoverability and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on each joint ventures' actual and projected cash flows. We do not believe that the values of any of our equity investments were impaired at ~~June 30, 2021.~~March 31, 2022.

Deferred Lease Costs

Deferred lease costs consist of incremental fees and direct costs that would not have been incurred if the lease had not been obtained and are amortized on a straight-line basis over the related lease term.

Lease Classification

Lease classification for leases under which the Company is the lessor is evaluated at lease commencement and leases not classified as sales-type leases or direct financing leases are classified as operating leases. Leases qualify as sales-type leases if the contract includes either transfer of ownership clauses, certain purchase options, a lease term representing a major part of the economic life of the asset, or the present value of the lease payments and residual guarantees provided by the lessee exceeds substantially all of the fair value of the asset. Additionally, leasing an asset so specialized that it is not deemed to have any value to the Company at the end of the lease term may also result in classification as a sales-type lease. Leases qualify as direct financing leases when the present value of the lease payments and residual value guarantees provided by the lessee and unrelated third parties exceeds substantially all of the fair value of the asset and collection of the payments is probable.

Revenue Recognition

Rental revenue for operating leases is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the leased space is available for its intended use by the lessee.

To determine whether the leased space is available for its intended use by the lessee, management evaluates whether we or the tenant are the owner of tenant improvements for accounting ~~purposes or if the tenant is.~~purposes. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

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.

We recognize lease concessions related to COVID-19, such as rent deferrals and abatements, in accordance with the Lease Modification Q&A issued by the FASB in April 2020, which 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. When total cash flows resulting from the modified lease are not substantially similar to the cash flows in the original lease, we account for the concession agreement as a new lease.

The Company provides its tenants with certain customary services for lease contracts such as common area maintenance and general security. We have elected to combine the non-lease components with the lease components of our operating lease agreements and account for them as a single lease component in accordance with ASC 842.

We record a gain or loss on sale of real estate assets when we no longer have a controlling financial interest in the entity owning the real estate, a contract exists with a third party and that third party has control of the assets acquired.

Investment income on debt and preferred equity investments is accrued based on the contractual terms of the instruments and when it is deemed collectible. Some debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest is collectible. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as an adjustment to interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cash flows through the expected maturity date of the related investment. If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt investments acquired at a discount for credit quality, the difference between contractual

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which is expected, are also recognized over the term of the loan as an adjustment to yield.

We consider a debt and preferred equity investment to be past due when amounts contractually due have not been paid. Debt and preferred equity investments are placed on a non-accrual status at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of interest income becomes doubtful. Interest income recognition is resumed on any debt or preferred equity investment that is on non-accrual status when such debt or preferred equity investment becomes contractually current and performance is demonstrated to be resumed.

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

We may syndicate a portion of the loans that we originate or sell the loans individually. When a transaction meets the criteria for sale accounting, we recognize gain or loss based on the difference between the sales price and the carrying value of the loan sold. Any related unamortized deferred origination fees, original issue discounts, loan origination costs, discounts or premiums at the time of sale are recognized as an adjustment to the gain or loss on sale, which is included in investment income on the consolidated statement of operations. Any fees received at the time of sale or syndication are recognized as part of investment income.

Asset management fees are recognized on a straight-line basis over the term of the asset management agreement.

Debt and Preferred Equity Investments

Debt and preferred equity investments are presented at the net amount expected to be collected in accordance with ASC 326. An allowance for loan losses is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected through the expected maturity date of such investments. The expense for loan loss and other investment reserves is the charge to earnings to adjust the allowance for loan losses to the appropriate level. Amounts are written off from the allowance when we de-recognize the related investment either as a result of a sale of the investment or acquisition of equity interests in the collateral.

The Company evaluates the amount expected to be collected based on current market and economic conditions, historical loss information, and reasonable and supportable forecasts. The Company's assumptions are derived from both internal data and external data which may include, among others, governmental economic projections for the New York City Metropolitan area, public data on recent transactions and filings for securitized debt instruments. This information is aggregated by asset class and adjusted for duration. Based on these inputs, loans are evaluated at the individual asset level. In certain instances, we may also use a probability-weighted model that considers the likelihood of multiple outcomes and the amount expected to be collected for each outcome.

The evaluation of the possible credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor requires significant judgment, which include both asset level and market assumptions over the relevant time period.

In addition, quarterly, the Company assigns each loan a risk rating. Based on a 3-point scale, loans are rated “1” through “3,” from lower risk to higher risk, which ratings are defined as follows: 1 - Low Risk Assets - Low probability of loss, 2 - Watch List Assets - Higher potential for loss, 3 - High Risk Assets - Loss more likely than not. Loans with risk ratings of 2 or above are evaluated to determine whether the expected risk of loss is appropriately captured through the combination of our expectations of current conditions, historical loss information and supportable forecasts described above or whether risk characteristics specific to the loan warrant the use of a probability-weighted model.

Financing investments that are classified as held for sale are carried at the expected amount to be collected or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its expected amount to be collected.

Other financing receivables that are included in balance sheet line items other than the Debt and preferred equity investments line are also measured at the net amount expected to be collected.

Accrued interest receivable amounts related to these debt and preferred equity investment and other financing receivables are recorded at the net amount expected to be collected within Other assets in the consolidated balance sheets. Accrued interest receivables that are written off are recognized as an expense in loan loss and other investment reserves.

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

Income Taxes

SL Green is taxed as a REIT under Section 856(c) of the Code. As a REIT, SL Green generally is not subject to Federal income tax. To maintain its qualification as a REIT, SL Green must distribute at least 90% of its REIT taxable income to its stockholders and meet certain other requirements. If SL Green fails to qualify as a REIT in any taxable year, SL Green will be subject to Federal income tax on its taxable income at regular corporate rates. SL Green may also be subject to certain state, local and franchise taxes. Under certain circumstances, Federal income and excise taxes may be due on its undistributed taxable income.

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

The Operating Partnership is a partnership and, as a result, all income and losses of the partnership are allocated to the partners for inclusion in their respective income tax returns. The only provision for income taxes included in the consolidated statements of operations relates to the Operating Partnership’s consolidated taxable REIT subsidiaries. The Operating Partnership may also be subject to certain state, local and franchise taxes.

We have elected, and may elect in the future, to treat certain of our corporate subsidiaries as taxable REIT subsidiaries, or TRSs. In general, TRSs may perform non-customary services for the tenants of the Company, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business. The TRSs generate income, resulting in Federal and state income tax liability for these entities.

~~During the three and six months ended June 30, 2021, we~~We recorded a Federal, state and local tax ~~provision of $0.8 million and $1.5 million, respectively. During the three and six months ended June 30, 2020, we recorded a Federal, state and local provision of~~provisions totaling $0.9 million and ~~$2.0~~$0.7 million during the three months ended March 31, 2022 and 2021, respectively.

We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable. We place our cash investments with high quality financial institutions. The collateral securing our debt and preferred equity investments is located in New York City. See Note 5, "Debt and Preferred Equity Investments."

We perform initial and ongoing evaluations of the credit quality of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a potential source of funds to offset the economic costs associated with lost revenue from that tenant and the costs associated with re-tenanting a space. The properties in our real estate portfolio are located in the New York metropolitan ~~area. The~~area, principally in Manhattan. Our tenants ~~located in our buildings~~ operate in various industries. Other than 1 tenant, Viacom CBS Inc., which accounted for ~~6.0%~~6.3% of our share of annualized cash rent as of ~~June 30, 2021,~~March 31, 2022, no other tenant in our portfolio accounted for more than 5.0% of our share of annualized cash rent, including our share of joint venture annualized cash rent, ~~at June 30, 2021.~~as of March 31, 2022.

For the three months ended ~~June 30, 2021,~~March 31, 2022, the following properties contributed more than 5.0% of our annualized cash rent from office properties, including our share of annualized cash rent from joint venture office properties:


Property			Three months ended ~~June 30, 2021~~March 31, 2022
One Vanderbilt Avenue			14.3%
11 Madison Avenue			~~9.4%~~9.3%
420 Lexington ~~Avenue (Graybar)~~Ave			~~7.5%~~
~~1515 Broadway~~			~~7.4%~~7.0%
1185 Avenue of the Americas			~~7.3%~~7.0%
~~220 East 42nd Street~~1515 Broadway			~~6.5%~~6.9%
280 Park Avenue			~~5.9%~~
~~485 Lexington Avenue~~			~~5.1%~~5.8%

Reclassification

Certain prior year balances have been reclassified to conform to our current year presentation.

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

Accounting Standards Updates

In March 2022, the FASB issued ASU No. 2022-02 Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the troubled debt restructuring recognition and measurement guidance and, instead, requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulties. Additionally, ASU 2022-02 requires an entity to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for entities in accordance with Subtopic 326-20, which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for reporting periods beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2022-02 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.

In July 2021, the FASB issued ASU No. 2021-05 Leases (Topic 842) Lessors - Certain Leases with Variable Lease Payments. ASU 2021-05 amends the lease classification requirements for lessors when classifying and accounting for a lease with variable lease payments that do not depend on a reference rate index or a rate. The update provides criteria, that if met, the lease would be classified and accounted for as an operating lease. ASU 2021-05 is effective for reporting periods beginning after December 15, 2021. The Company adopted this guidance on January 1, 2022 and it did not have a material impact on the Company's consolidated financial statements.

In August 2020, the FASB issued Accounting Standard Update, or "ASU," No. 2020-06 Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for reporting periods beginning after December 15, ~~2021, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2020-06~~2021. The Company adopted this guidance on ~~our consolidated financial statements, but do~~January 1, 2022 and it did not ~~believe the adoption of this standard will~~ have a material impact on ~~our~~the Company's consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting and then in January 2021, the FASB issued ASU No. 2021-01. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

In July 2021, the FASB issued ASU No. 2021-05 Leases (Topic 842) Lessors - Certain Leases with Variable Lease Payments. ASU 2021-05 amends the lease classification requirements for lessors when classifying and accounting for a lease with variable lease payments that do not depend on a reference rate index or a rate. The update provides criteria, that if met, the lease would be classified and accounted for as an operating lease. ASU 2021-05 is effective for reporting periods beginning after December 15, 2021, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2021-05 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.

3. Property Acquisitions

~~The following table summarizes~~During the ~~properties acquired during the six~~three months ended ~~June 30, 2021:~~

Property Acquisition Date Property Type Approximate Square Feet
Gross Asset Valuation
(in millions)
885 Third Avenue (1)
January 2021 Fee Interest 625,000 $ 387.9
461 Fifth Avenue (2)
June 2021 Fee Interest 200,000 $ 28.0

~~(1)In January 2021, pursuant to the partnership documents of our 885 Third Avenue investment, certain participating rights of the common member expired. As~~March 31, 2022, we did not acquire any properties from a result, it was determined that this investment is a VIE of which we are the primary beneficiary, and the investment was consolidated in our financial statements. Upon consolidating the entity, the assets and liabilities of the entity were recorded at fair value. Prior to January 2021, the investment was accounted for under the equity method. See Note 6, "Investments in Unconsolidated Joint Ventures" and Note 16, "Fair Value Measurements."

~~(2)~~In April 2021, the Company exercised its option to acquire the fee interest in the property from the ground lessor. The Company held the leasehold interest in the property prior to exercising its option.

third party.

4. Properties Held for Sale and Property Dispositions

Properties Held for Sale

As of ~~June 30, 2021, no properties were~~March 31, 2022, 1080 Amsterdam Avenue was classified as held for ~~sale.~~sale as we entered into an agreement to sell the property for total consideration of $42.7 million. The sale closed in the second quarter of 2022.

Property Dispositions

The following table summarizes the properties disposed of during the ~~six~~three months ended ~~June 30, 2021:~~March 31, 2022:

Property Disposition Date Property Type Approximate Square Feet
Gross Asset Valuation
(in millions)
Gain (Loss) (in millions) (1)
712 Madison Avenue (2)
January 2021 Fee Interest 6,600 $ 43.0 $ (1.4)
133 Greene Street (3)
February 2021 Fee Interest 6,425 15.8 0.2
106 Spring Street (3)
March 2021 Fee Interest 5,928 35.0 (2.8)
635-641 Sixth Avenue June 2021 Fee Interest 267,000 325.0 99.4

~~(1)~~The gain (loss) on sale is net of $5.7 million of employee compensation accrued in connection with the realization of the investment gains during the six months ended June 30, 2021. Additionally, the amounts do not include adjustments for expenses recorded in subsequent periods.

~~(2)Disposition resulted from the buyer exercising its purchase option under a ground lease arrangement.~~

~~(3)In the first quarter of 2021, the property was foreclosed by the lender in conjunction with the related debt extinguishment.~~

Property

Disposition Date

Property Type

Approximate Square Feet

Sales Price
(in millions)

Gain (Loss) (in millions)

707 Eleventh Avenue

February 2022

Fee Interest

159,720

95.0

(0.8)

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

5. Debt and Preferred Equity Investments

Below is a summary of the activity in our debt and preferred equity investments for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and the twelve months ended December 31, ~~2020~~2021 (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Balance at beginning of year (1)	Balance at beginning of year (1)	$	1,076,542	$	1,580,306	Balance at beginning of year (1)	$	1,088,723	$	1,076,542
Debt investment originations/fundings/accretion (2)	Debt investment originations/fundings/accretion (2)	89,990		389,300		Debt investment originations/fundings/accretion (2)	16,615		193,824
Preferred equity investment originations/accretion (2)	Preferred equity investment originations/accretion (2)	6,469		167,042		Preferred equity investment originations/accretion (2)	8,937		13,220
Redemptions/sales/syndications/equity ownership/amortization (3)	Redemptions/sales/syndications/equity ownership/amortization (3)	(100,290)		(1,048,643)		Redemptions/sales/syndications/equity ownership/amortization (3)	(6,405)		(201,446)
Net change in loan loss reserves	Net change in loan loss reserves	0		(11,463)		Net change in loan loss reserves	—		6,583
Balance at end of period (1)	Balance at end of period (1)	$	1,072,711	$	1,076,542	Balance at end of period (1)	$	1,107,870	$	1,088,723

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

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

(3)Certain participations in debt investments that were sold or syndicated, but did not meet the conditions for sale accounting, are included in Other assets and Other liabilities on the consolidated balance sheets.

Below is a summary of our debt and preferred equity investments as of ~~June 30, 2021~~March 31, 2022 (dollars in thousands):


		Floating Rate					Fixed Rate					Total Carrying Value		Senior Financing		Weighted Average Yield at End of Period	Maturity (1)		Floating Rate					Fixed Rate					Total Carrying Value		Senior Financing		Weighted Average Yield at End of Period	Maturity (1)
Type	Type	Carrying Value		Face Value		Interest Rate	Carrying Value		Face Value		Interest Rate							Type	Carrying Value		Face Value		Interest Rate	Carrying Value		Face Value		Interest Rate
Senior Mortgage Debt	Senior Mortgage Debt	$	13,753	$	14,048	L + 3.50%	$	1,250	$	1,250	3.50%	$	15,003	$	0	5.33%	2021 - 2022	Senior Mortgage Debt	$	26,088	$	26,233	L + 3.50%	$	73,000	$	73,000	3.00%	$	99,088	$	—	4.25%	2022 - 2023
Junior Mortgage Debt		7,213		12,000		L + 7.25%	0		0		—%	7,213		60,000		7.54%	2021

Mezzanine Debt	Mezzanine Debt	287,385		290,789		L + 4.95% - 13.50%	496,855		507,842		2.90% - 14.30%	784,240		4,737,442		6.51%	2021 - 2029	Mezzanine Debt	276,040		276,670		L + 4.95% - 12.57%	450,799		459,865		2.90% - 14.30%	726,839		4,700,426		6.98%	2022 - 2029
Preferred Equity	Preferred Equity	0		0		—	266,255		267,916		6.50% - 11.00%	266,255		1,962,750		9.92%	2022 - 2027	Preferred Equity	—		—		—	281,943		282,403		6.50% - 11.00%	281,943		1,962,750		9.64%	2022 - 2027
Balance at end of period	Balance at end of period	$	308,351	$	316,837		$	764,360	$	777,008		$	1,072,711	$	6,760,192			Balance at end of period	$	302,128	$	302,903		$	805,742	$	815,268		$	1,107,870	$	6,663,176

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

The following table is a ~~rollforward~~roll forward of our total allowance for loan losses for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and the twelve months ended December 31, ~~2020~~2021 (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Balance at beginning of year	Balance at beginning of year	$	13,213	$	1,750	Balance at beginning of year	$	6,630	$	13,213
Cumulative adjustment upon adoption of ASC 326		0		27,803
Current period provision for loan loss		0		20,693

Write-offs charged against the allowance~~(1)~~	Write-offs charged against the allowance~~(1)~~	0		(37,033)		Write-offs charged against the allowance~~(1)~~	—		(6,583)
Balance at end of period~~(2)~~(1)	Balance at end of period~~(2)~~(1)	$	13,213	$	13,213	Balance at end of period~~(2)~~(1)	$	6,630	$	6,630

(1)Includes $19.0 million of charges recorded against investments that were sold during the year ended December 31, 2020. These charges are included in loan loss and other investment reserves, net of recoveries, in our consolidated statements of operations for the year ended December 31, 2020.

~~(2)~~As of ~~June 30, 2021,~~March 31, 2022, all financing receivables on non-accrual had an allowance for loan loss except for 1 debt investment with a carrying value of $225.4 million.

~~At June 30, 2021~~As of March 31, 2022 and December 31, ~~2020,~~2021, all debt and preferred equity investments were performing in accordance with their respective terms, with the exception of ~~1 investment~~2 investments with a carrying value, net of reserves, of $223.1 million and $6.8 million, as discussed in the Debt Investments ~~table~~and Preferred Equity Investments tables further below.

~~NaN~~No other financing receivables were 90 days past due ~~at June 30, 2021~~as of March 31, 2022 and December 31, ~~2020 with the exception of a $27.7 million financing receivable included in Other assets, which was put on non-accrual in August 2018 as a result of an interest default.~~

2021.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

The following table sets forth the carrying value of our debt and preferred equity investment portfolio by risk rating as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 (dollars in thousands):


Risk Rating	Risk Rating	June 30, 2021		December 31, 2020		Risk Rating	March 31, 2022		December 31, 2021
1 - Low Risk Assets - Low probability of loss	1 - Low Risk Assets - Low probability of loss	$	682,565	$	695,035	1 - Low Risk Assets - Low probability of loss	$	517,330	$	644,489
2 - Watch List Assets - Higher potential for loss	2 - Watch List Assets - Higher potential for loss	373,788		365,167		2 - Watch List Assets - Higher potential for loss	583,650		437,344
3 - High Risk Assets - Loss more likely than not	3 - High Risk Assets - Loss more likely than not	16,358		16,340		3 - High Risk Assets - Loss more likely than not	6,890		6,890
		$	1,072,711	$	1,076,542		$	1,107,870	$	1,088,723

The following table sets forth the carrying value of our debt and preferred equity investment portfolio by year of origination and risk rating as of ~~June 30, 2021~~March 31, 2022 (dollars in thousands):


		As of June 30, 2021											As of March 31, 2022
Risk Rating	Risk Rating	2021(1)		2020(1)		2019(1)		Prior(1)		Total		Risk Rating	2022(1)		2021(1)		2020(1)		Prior(1)		Total
1 - Low Risk Assets - Low probability of loss	1 - Low Risk Assets - Low probability of loss	$	62,240	$	270,254	$	57,148	$	292,923	$	682,565	1 - Low Risk Assets - Low probability of loss	$	—	$	142,264	$	153,055	$	222,011	$	517,330
2 - Watch List Assets - Higher potential for loss	2 - Watch List Assets - Higher potential for loss	0		0		246,578		127,210		373,788		2 - Watch List Assets - Higher potential for loss	—		—		135,157		448,493		583,650
3 - High Risk Assets - Loss more likely than not	3 - High Risk Assets - Loss more likely than not	0		0		0		16,358		16,358		3 - High Risk Assets - Loss more likely than not	—		—		—		6,890		6,890
		$	62,240	$	270,254	$	303,726	$	436,491	$	1,072,711		$	—	$	142,264	$	288,212	$	677,394	$	1,107,870

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

We have determined that we have 1 portfolio segment of financing receivables ~~at June 30, 2021~~as of March 31, 2022 and December 31, ~~2020~~2021 comprised of commercial real estate which is primarily recorded in debt and preferred equity investments.

Included in Other assets is an additional amount of financing receivables representing loans to joint venture partners totaling ~~$66.4~~$10.4 million and ~~$66.2~~$10.5 million ~~at June 30, 2021~~as of March 31, 2022 and December 31, ~~2020,~~2021, respectively. The Company recorded 0no provisions for loan losses related to these financing receivables for the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022 and ~~$3.4 million and $6.3 million for the three and six months ended June 30, 2020, respectively.~~2021. All of these loans have a risk rating of 2 and were performing in accordance with their respective ~~terms with the exception of one financing receivable, which was put on nonaccrual in August 2018, that has a risk rating of 3 and a carrying value at June 30, 2021 of $2.5 million.~~terms.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

Debt Investments

As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, we held the following debt investments with an aggregate weighted average current yield of ~~6.51% at June 30, 2021~~6.65% as of March 31, 2022 (dollars in thousands):


Loan Type	Loan Type	June 30, 2021 Future Funding Obligations		June 30, 2021 Senior Financing		June 30, 2021 Carrying Value (1)		December 31, 2020 Carrying Value (1)		Maturity Date (2)	Loan Type	March 31, 2022 Future Funding Obligations		March 31, 2022 Senior Financing		March 31, 2022 Carrying Value (1)		December 31, 2021 Carrying Value (1)		Maturity Date (2)
Fixed Rate Investments:	Fixed Rate Investments:										Fixed Rate Investments:
Mortgage/Mezzanine Loan		$	0	$	0	$	56,248	$	56,244	October 2021
Mezzanine Loan	Mezzanine Loan	0		280,000		42,263		41,057		August 2022	Mezzanine Loan	$	—	$	280,000	$	44,182	$	43,521	August 2022
Mortgage Loan											Mortgage Loan	—		—		73,000		73,000		April 2023
Mezzanine Loan ~~(4)~~(3)	Mezzanine Loan ~~(4)~~(3)	0		364,858		225,367		225,204		June 2023	Mezzanine Loan ~~(4)~~(3)	—		382,473		225,367		225,367		June 2023
Mezzanine Loan	Mezzanine Loan	0		270,550		62,240		0		June 2023	Mezzanine Loan	—		276,885		69,264		66,873		June 2023
Mezzanine Loan (3a)(5)		0		105,000		13,367		13,366		June 2024
Mezzanine Loan (4a)(5)											Mezzanine Loan (4a)(5)	—		105,000		13,366		13,366		June 2024
Mezzanine Loan	Mezzanine Loan	0		95,000		30,000		30,000		January 2025	Mezzanine Loan	—		95,000		30,000		30,000		January 2025
Mezzanine Loan		0		1,712,750		55,250		55,250		June 2027
Mezzanine Loan		0		85,000		20,000		20,000		December 2029
Junior Mortgage		0		0		0		32,888
Mezzanine Loan (6)											Mezzanine Loan (6)	—		1,712,750		55,250		55,250		June 2027
Mezzanine Loan	Mezzanine Loan	0		0		0		3,500			Mezzanine Loan	—		85,000		20,000		20,000		December 2029
Total fixed rate	Total fixed rate	$	0	$	2,913,158	$	504,735	$	477,509		Total fixed rate	$	—	$	2,937,108	$	530,429	$	527,377
Floating Rate Investments:	Floating Rate Investments:										Floating Rate Investments:
Junior Mortgage Participation/Mezzanine Loan (6)		$	0	$	60,000	$	15,751	$	15,733	July 2021
Mezzanine Loan (7)		0		61,744		29,153		29,106		July 2021
Mezzanine Loan	Mezzanine Loan	0		275,000		49,994		49,956		April 2022	Mezzanine Loan	$	—	$	275,000	$	49,999	$	49,998	April 2023
Mezzanine Loan	Mezzanine Loan	5,287		179,132		37,148		35,318		July 2022	Mezzanine Loan	4,624		181,536		37,824		37,511		July 2022
Mezzanine Loan (3b)		0		1,115,000		130,774		127,915		March 2022
Mezzanine Loan (4b)(7)											Mezzanine Loan (4b)(7)	—		1,115,000		135,157		133,735		April 2022
Mezzanine Loan	Mezzanine Loan	4,565		54,000		7,384		6,958		May 2022	Mezzanine Loan	3,761		54,000		8,238		8,050		May 2022
Mortgage and Mezzanine Loan	Mortgage and Mezzanine Loan	36,887		0		21,211		14,011		December 2022	Mortgage and Mezzanine Loan	18,142		—		40,161		34,874		December 2022
Mezzanine Loan	Mezzanine Loan	50,448		79,408		23,519		19,889		May 2023	Mezzanine Loan	33,685		137,783		30,749		30,802		May 2023
Mortgage Loan		0		0		0		53,574
Total floating rate	Total floating rate	$	97,187	$	1,824,284	$	314,934	$	352,460		Total floating rate	$	60,212	$	1,763,319	$	302,128	$	294,970
Allowance for loan loss	Allowance for loan loss	$	—	$	—	$	(13,213)	$	(13,213)		Allowance for loan loss	—		—		(6,630)		(6,630)
Total	Total	$	97,187	$	4,737,442	$	806,456	$	816,756		Total	$	60,212	$	4,700,427	$	825,927	$	815,717

(1)Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.

(2)Represents contractual maturity, excluding any ~~unexercised~~ extension ~~options.~~options to the extent they have not been exercised as of the date of this filing.

(3)This loan was put on non-accrual in July 2020 and remains on non-accrual as of March 31, 2022. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower.

(4)Carrying value is net of the following amounts that were sold or syndicated, which are included in Other assets and Other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $12.0 million, and (b) $0.4 million.

~~(4)This loan was put on non-accrual in July 2020 and remains on non-accrual at June 30, 2021. NaN investment income has been recognized subsequent to it being put on non-accrual.~~

(5)This loan went into default and was put on non-accrual in June 2020 and remains on non-accrual ~~at June 30, 2021. NaN~~as of March 31, 2022. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower. Additionally, we determined the borrower entity to be a VIE, in which we are not the primary beneficiary.

(6)~~This~~The borrower under this mezzanine loan is an entity affiliated with HNA, which owns an equity interest in ~~default as of~~245 Park Avenue. The borrower filed for bankruptcy protection on October 31, 2021, which the ~~date of this filing. The~~ Company ~~is in discussions with the borrower.~~contested.

(7)~~This~~In the second quarter of 2022, this loan was ~~repaid in July 2021.~~extended for two months to May 2022.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

Preferred Equity Investments

As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, we held the following preferred equity investments with an aggregate weighted average current yield of ~~9.92% at June 30, 2021~~9.64% as of March 31, 2022 (dollars in thousands):


Type	Type	June 30, 2021 Future Funding Obligations		June 30, 2021 Senior Financing		June 30, 2021 Carrying Value (1)		December 31, 2020 Carrying Value (1)		Mandatory Redemption (2)	Type	March 31, 2022 Future Funding Obligations		March 31, 2022 Senior Financing		March 31, 2022 Carrying Value (1)		December 31, 2021 Carrying Value (1)		Mandatory Redemption (2)
Preferred Equity(3)	Preferred Equity(3)	$	0	$	1,712,750	$	157,678	$	154,691	June 2022	Preferred Equity(3)	$	—	$	1,712,750	$	167,875	$	160,772	June 2022
Preferred Equity	Preferred Equity	0		250,000		108,577		105,095		February 2027	Preferred Equity	—		250,000		114,068		112,234		February 2027
Total Preferred Equity	Total Preferred Equity	$	0	$	1,962,750	$	266,255	$	259,786		Total Preferred Equity	$	—	$	1,962,750	$	281,943	$	273,006
Allowance for loan loss	Allowance for loan loss	$	—	$	—	$	0	$	0		Allowance for loan loss	—		—		—		—
Total	Total	$	0	$	1,962,750	$	266,255	$	259,786		Total	$	—	$	1,962,750	$	281,943	$	273,006

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

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

(3)On October 31, 2021, HNA, through an affiliated entity, filed for Chapter 11 bankruptcy protection on account of its investment in 245 Park Avenue, together with another asset in Chicago. The Company contested the filing, on the basis that the filing was done in bad faith and in violation of HNA's agreements with the Company, and is currently appealing the Bankruptcy court's ruling upholding the filing by HNA.

6. Investments in Unconsolidated Joint Ventures

We have investments in several real estate joint ventures with various partners. As of ~~June 30, 2021,~~March 31, 2022, the book value of these investments was ~~$3.2~~$3.0 billion, net of investments with negative book values totaling ~~$96.0~~$105.6 million for which we have an implicit commitment to fund future capital needs.

As of ~~June 30,~~March 31, 2022 and December 31, 2021, 800 Third Avenue, 21 East 66th Street, and certain properties within the Stonehenge Portfolio are VIEs in which we are not the primary beneficiary. ~~As of December 31, 2020, 800 Third Avenue, 21 East 66th Street, 605 West 42nd Street, and certain properties within the Stonehenge Portfolio were VIEs in which we were not the primary beneficiary.~~ Our net equity investment in these VIEs was ~~$87.7~~$86.2 million and ~~$134.0~~$85.6 million as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively. Our maximum loss is limited to the amount of our equity investment in these VIEs. See the "Principles of Consolidation" section of Note 2, "Significant Accounting Policies." All other investments below are voting interest entities. As we do not control the joint ventures listed below, we account for them under the equity method of accounting.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

The table below provides general information on each of our joint ventures as of ~~June 30, 2021:~~March 31, 2022:


Property	Property	Partner	Ownership Interest (1)	Economic Interest (1)	Unaudited Approximate Square Feet	Property	Partner	Ownership Interest (1)	Economic Interest (1)	Unaudited Approximate Square Feet
100 Park Avenue	100 Park Avenue	Prudential Real Estate Investors	49.90%		834,000	100 Park Avenue	Prudential Real Estate Investors	49.90%		834,000
717 Fifth Avenue	717 Fifth Avenue	Wharton Properties/Private Investor	10.92%		119,500	717 Fifth Avenue	Wharton Properties/Private Investor	10.92%		119,500
800 Third Avenue	800 Third Avenue	Private Investors	60.52%		526,000	800 Third Avenue	Private Investors	60.52%		526,000
919 Third Avenue	919 Third Avenue	New York State Teacher's Retirement System	51.00%		1,454,000	919 Third Avenue	New York State Teacher's Retirement System	51.00%		1,454,000
11 West 34th Street	11 West 34th Street	Private Investor/Wharton Properties	30.00%		17,150	11 West 34th Street	Private Investor/Wharton Properties	30.00%		17,150
280 Park Avenue	280 Park Avenue	Vornado Realty Trust	50.00%		1,219,158	280 Park Avenue	Vornado Realty Trust	50.00%		1,219,158
1552-1560 Broadway (2)	1552-1560 Broadway (2)	Wharton Properties	50.00%		57,718	1552-1560 Broadway (2)	Wharton Properties	50.00%		57,718
10 East 53rd Street	10 East 53rd Street	Canadian Pension Plan Investment Board	55.00%		354,300	10 East 53rd Street	Canadian Pension Plan Investment Board	55.00%		354,300
21 East 66th Street (3)	21 East 66th Street (3)	Private Investors	32.28%		13,069	21 East 66th Street (3)	Private Investors	32.28%		13,069
650 Fifth Avenue (4)	650 Fifth Avenue (4)	Wharton Properties	50.00%		69,214	650 Fifth Avenue (4)	Wharton Properties	50.00%		69,214
121 Greene Street	121 Greene Street	Wharton Properties	50.00%		7,131	121 Greene Street	Wharton Properties	50.00%		7,131
Stonehenge Portfolio(5)	Stonehenge Portfolio(5)	Various	Various		1,439,016	Stonehenge Portfolio(5)	Various	Various		1,439,016
11 Madison Avenue	11 Madison Avenue	PGIM Real Estate	60.00%		2,314,000	11 Madison Avenue	PGIM Real Estate	60.00%		2,314,000
400 East 57th Street (5)		BlackRock, Inc and Stonehenge Partners	51.00%	41.00%	290,482
One Vanderbilt Avenue	One Vanderbilt Avenue	National Pension Service of Korea/Hines Interest LP	71.01%		1,657,198	One Vanderbilt Avenue	National Pension Service of Korea/Hines Interest LP	71.01%		1,657,198
Worldwide Plaza (6)		RXR Realty / New York REIT	24.95%		2,048,725
Worldwide Plaza						Worldwide Plaza	RXR Realty / New York REIT	24.95%		2,048,725
1515 Broadway	1515 Broadway	Allianz Real Estate of America	56.87%		1,750,000	1515 Broadway	Allianz Real Estate of America	56.87%		1,750,000
2 Herald Square	2 Herald Square	Israeli Institutional Investor	51.00%		369,000	2 Herald Square	Israeli Institutional Investor	51.00%		369,000
115 Spring Street	115 Spring Street	Private Investor	51.00%		5,218	115 Spring Street	Private Investor	51.00%		5,218
15 Beekman (7)		A fund managed by Meritz Alternative Investment Management	20.00%		221,884
15 Beekman (6)						15 Beekman (6)	A fund managed by Meritz Alternative Investment Management	20.00%		221,884
85 Fifth Avenue	85 Fifth Avenue	Wells Fargo	36.30%		12,946	85 Fifth Avenue	Wells Fargo	36.27%		12,946
One Madison Avenue (8)		National Pension Service of Korea/Hines Interest LP	50.50%		1,048,700
One Madison Avenue (7)						One Madison Avenue (7)	National Pension Service of Korea/Hines Interest LP/International Investor	25.50%		1,048,700
220 East 42nd Street						220 East 42nd Street	A fund managed by Meritz Alternative Investment Management	51.00%		1,135,000

(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of ~~June 30, 2021.~~March 31, 2022. Changes in ownership or economic interests within the current year are disclosed in the notes below.

(2)The joint venture also owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway.

(3)We hold a 32.28% interest in 3 retail units and 1 residential unit at the property and a 16.14% interest in 32 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~~The sale of this investment closed in April 2022 for 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~~gross consideration of the venture's remaining 51% interest in the property. Our joint venture with Stonehenge remains consolidated resulting in the combined 51% remaining interest being shown within investments in unconsolidated joint ventures on our balance sheet. In April 2021, we entered into contract to sell our interest in the property. In connection with this contract, we recorded a charge of $5.7 million, which is included in depreciable real estate reserves and impairment in the consolidated statements of operations. This transaction is expected to close in the third quarter of 2021 subject to customary closing conditions.$1.0 million.

(6)In May 2021, the Company and RXR Realty jointly acquired the 1.2% interest in the property previously held by a private investor. This resulted in an increase in the Company's ownership interest of 0.6%.

~~(7)~~In 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.

~~(8)~~(7)In 2020, the Company admitted partners to the One Madison Avenue development project, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of our remaining 50.5% interest. We recorded our investment at fair value, which resulted in the recognition of a fair value adjustment of $187.5 million in ~~2020 and a fair value adjustment of $2.7 million during the six months ended June 30, 2021.~~2020. The fair value of our investment was determined by the terms of the joint venture agreement governing the capitalization of the project. The partners have committed aggregate equity to the project totaling no less than $492.2 million and their ownership interest in the joint venture is based on their capital contributions, up to an aggregate maximum of 49.5%. ~~At June 30, 2021,~~As of March 31, 2022, the total of the 2 partners' ownership interests based on equity contributed was ~~9.0%~~39.2%. In 2021, the Company admitted an additional partner to the development project for a committed aggregate equity investment totaling no less than $259.3 million. The partner's indirect ownership interest in the joint venture is based on it's capital contributions, up to an aggregate maximum of 25.0%. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes and is included in Other liabilities in our consolidated balance sheets at March 31, 2022 and December 31, 2021.

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

Disposition of Joint Venture Interests or Properties

~~The following table summarizes the~~We did not dispose of any investments in unconsolidated joint ventures ~~disposed of~~ during the ~~six~~three months ended ~~June 30, 2021:~~

Property Ownership Interest Disposed Disposition Date Gross Asset Valuation (in millions)
(Loss) Gain on Sale (in millions) (1) (2)
885 Third Avenue (3)
N/A January 2021 N/A N/A
55 West 46th Street - Tower 46 25.0% March 2021 $ 275.0 $ (15.2)
605 West 42nd Street - Sky 20.0% June 2021 $ 858.1 $ 8.9
March 31, 2022.

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

~~(2)~~The (loss) gain on sale is net of $1.4 million of employee compensation accrued in connection with the realization of the investment gains during the six months ended June 30, 2021. Additionally, the amounts do not include adjustments for expenses recorded in subsequent periods.

~~(3)~~

~~In January 2021, pursuant~~Table of Contents

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

Notes to the partnership documents of our 885 Third Avenue investment, certain participating rights of the common member expired. As a result, it was determined that we are the primary beneficiary of the VIE and the investment was consolidated in our financial statements. See Note 3, "Property Acquisitions."Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

Joint Venture Mortgages and Other Loans Payable

We generally finance our joint ventures with non-recourse debt. In certain cases we may provide guarantees or master leases, ~~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 June 30, 2021~~as of March 31, 2022 and December 31, ~~2020,~~2021, respectively, are as follows (dollars in thousands):

Property
Economic
Interest (1)
Initial Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
June 30, 2021 December 31, 2020
Fixed Rate Debt:
717 Fifth Avenue (mortgage) 10.92 % July 2022 July 2022 4.45 % $ 300,000 $ 300,000
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 % 811,275 820,607
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 (4)
41.00 % November 2026 November 2026 3.00 % 96,666 97,024
Worldwide Plaza 24.95 % November 2027 November 2027 3.98 % 1,200,000 1,200,000
One Vanderbilt Avenue (5)
71.01 % July 2031 July 2031 2.95 % 3,000,000 0
Stonehenge Portfolio (6)
Various Various Various 3.50 % 195,899 195,899
885 Third Avenue 0 0 272,000
Total fixed rate debt $ 8,323,168 $ 5,604,858
Floating Rate Debt:
280 Park Avenue 50.00 % September 2021 September 2024 L+ 1.73 % $ 1,200,000 $ 1,200,000
1552 Broadway 50.00 % October 2021 October 2022 L+ 2.65 % 195,000 195,000
2 Herald Square 51.00 % November 2021 November 2023 L+ 1.45 % 214,500 214,500
11 West 34th Street 30.00 % January 2022 January 2023 L+ 1.45 % 23,000 23,000
121 Greene Street 50.00 % November 2022 November 2022 L+ 2.00 % 13,577 15,000
115 Spring Street 51.00 % September 2023 September 2023 L+ 3.40 % 65,550 65,550
100 Park Avenue 49.90 % December 2023 December 2025 L+ 2.25 % 360,000 360,000
15 Beekman (7)
20.00 % January 2024 July 2025 L+ 1.50 % 27,002 11,212
10 East 53rd Street 55.00 % February 2025 February 2025 L+ 1.35 % 220,000 220,000
One Madison Avenue (8)
50.50 % November 2025 November 2026 L+ 3.35 % 81,971 0

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~


Property	Property	Economic Interest (1)		Initial Maturity Date	Final Maturity Date (2)	Interest Rate (3)			June 30, 2021		December 31, 2020		Property	Economic Interest (1)		Current Maturity Date	Final Maturity Date (2)	Interest Rate (3)			March 31, 2022		December 31, 2021
Fixed Rate Debt:													Fixed Rate Debt:
717 Fifth Avenue (mortgage)													717 Fifth Avenue (mortgage)	10.92	%	July 2022			4.45	%	$	300,000	$	300,000
717 Fifth Avenue (mezzanine)													717 Fifth Avenue (mezzanine)	10.92	%	July 2022			5.50	%	355,328		355,328
650 Fifth Avenue (mortgage)													650 Fifth Avenue (mortgage)	50.00	%	October 2022			4.46	%	210,000		210,000
650 Fifth Avenue (mezzanine)													650 Fifth Avenue (mezzanine)	50.00	%	October 2022			5.45	%	65,000		65,000
21 East 66th Street	21 East 66th Street	32.28	%	June 2033		T+	2.75	%	654		677		21 East 66th Street	32.28	%	April 2023	April 2028		3.60	%	12,000		12,000
One Vanderbilt Avenue (5)									0		1,210,329
605 West 42nd Street							0		0		550,000
55 West 46th Street							0		0		192,524
919 Third Avenue													919 Third Avenue	51.00	%	June 2023			5.12	%	500,000		500,000
1515 Broadway													1515 Broadway	56.87	%	March 2025			3.93	%	796,929		801,845
11 Madison Avenue													11 Madison Avenue	60.00	%	September 2025			3.84	%	1,400,000		1,400,000
800 Third Avenue													800 Third Avenue	60.52	%	February 2026			3.37	%	177,000		177,000
Worldwide Plaza													Worldwide Plaza	24.95	%	November 2027			3.98	%	1,200,000		1,200,000
One Vanderbilt Avenue													One Vanderbilt Avenue	71.01	%	July 2031			2.95	%	3,000,000		3,000,000
Stonehenge Portfolio (4)													Stonehenge Portfolio (4)	Various		Various			3.50	%	194,558		195,493
Total fixed rate debt													Total fixed rate debt								$	8,210,815	$	8,216,666
Floating Rate Debt:													Floating Rate Debt:
1552 Broadway													1552 Broadway	50.00	%	October 2022		L+	2.65	%	$	193,132	$	193,132
280 Park Avenue													280 Park Avenue	50.00	%	September 2022	September 2024	L+	1.73	%	1,200,000		1,200,000
121 Greene Street													121 Greene Street	50.00	%	November 2022		L+	2.00	%	13,056		13,228
2 Herald Square													2 Herald Square	51.00	%	November 2022	November 2023	L+	1.95	%	199,664		200,989
11 West 34th Street													11 West 34th Street	30.00	%	January 2023		L+	1.45	%	23,000		23,000
220 East 42nd Street													220 East 42nd Street	51.00	%	June 2023	June 2025	L+	2.75	%	510,000		510,000
115 Spring Street													115 Spring Street	51.00	%	September 2023		L+	3.40	%	65,550		65,550
100 Park Avenue													100 Park Avenue	49.90	%	December 2023	December 2025	L+	2.25	%	360,000		360,000
15 Beekman (5)													15 Beekman (5)	20.00	%	January 2024	July 2025	L+	1.50	%	50,805		43,566
10 East 53rd Street													10 East 53rd Street	55.00	%	February 2025		L+	1.35	%	220,000		220,000
One Madison Avenue (6)													One Madison Avenue (6)	25.50	%	November 2025	November 2026	L+	3.35	%	193,184		169,629
21 East 66th Street													21 East 66th Street	32.28	%	June 2033		T+	2.75	%	620		632
Total floating rate debt	Total floating rate debt								$	2,401,254	$	4,257,792	Total floating rate debt								$	3,029,011	$	2,999,726
Total joint venture mortgages and other loans payable	Total joint venture mortgages and other loans payable								$	10,724,422	$	9,862,650	Total joint venture mortgages and other loans payable								$	11,239,826	$	11,216,392
Deferred financing costs, net	Deferred financing costs, net								(143,318)		(113,446)		Deferred financing costs, net								(121,491)		(130,516)
Total joint venture mortgages and other loans payable, net	Total joint venture mortgages and other loans payable, net								$	10,581,104	$	9,749,204	Total joint venture mortgages and other loans payable, net								$	11,118,335	$	11,085,876

(1)Economic interest represents the Company's interests in the joint venture as of ~~June 30, 2021.~~March 31, 2022. Changes in ownership or economic interests, if any, within the current year are disclosed in the notes to the investment in unconsolidated joint ventures table above.

(2)Reflects exercise of all available options. The ability to exercise extension options may be subject to certain conditions, including meeting tests based on the operating performance of the property.

(3)Interest rates as of ~~June 30, 2021,~~March 31, 2022, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR ("L") or 1-year Treasury ("T").

(4)~~In April 2021, we entered into a contract to sell our interest in the property. This transaction is expected to close in the third quarter of 2021 subject to customary closing conditions.~~

~~(5)In June 2021, the Company refinanced the floating rate construction facility with a fixed rate mortgage loan.~~

~~(6)~~Comprised of 3 mortgages totaling ~~$132.4~~$131.6 million that mature in April 2028 and 2 mortgages totaling ~~$63.5~~$63.0 million that mature in July 2029. The sale of this investment closed in April 2022.

~~(7)~~(5)This loan is a $125.0 million construction facility. Advances under the loan are subject to costs incurred.

~~(8)~~Table of Contents

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

(6)The loan is a $1.25 billion construction facility with an initial term of five years with 1, one year extension option. Advances under the loan are subject to costs incurred. In conjunction with the loan, we provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned ~~$4.2~~$6.2 million and ~~$6.8~~$2.4 million from these services, net of our ownership share of the joint ventures, for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~respectively. We earned $1.7 million and $3.9 million from these services, net of our ownership share of the joint ventures, for the three and six months ended June 30, 2020,~~ respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.

The combined balance sheets for the unconsolidated joint ventures, at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 are as follows (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Assets (1)	Assets (1)					Assets (1)
Commercial real estate property, net	Commercial real estate property, net	$	14,588,601	$	16,143,880	Commercial real estate property, net	$	14,785,274	$	14,763,874
Cash and restricted cash	Cash and restricted cash	1,279,021		357,076		Cash and restricted cash	751,944		768,510
Tenant and other receivables, related party receivables, and deferred rents receivable	Tenant and other receivables, related party receivables, and deferred rents receivable	425,129		403,883		Tenant and other receivables, related party receivables, and deferred rents receivable	562,483		533,455

Other assets	Other assets	1,869,772		2,001,612		Other assets	1,796,952		1,776,030
Total assets	Total assets	$	18,162,523	$	18,906,451	Total assets	$	17,896,653	$	17,841,869
Liabilities and equity (1)	Liabilities and equity (1)					Liabilities and equity (1)
Mortgages and other loans payable, net	Mortgages and other loans payable, net	$	10,581,104	$	9,749,204	Mortgages and other loans payable, net	$	11,118,335	$	11,085,876
Deferred revenue	Deferred revenue	1,250,116		1,341,571		Deferred revenue	1,141,181		1,158,242
Lease liabilities	Lease liabilities	983,985		1,002,563		Lease liabilities	999,553		980,595
Other liabilities	Other liabilities	350,062		464,107		Other liabilities	368,957		352,499
Equity	Equity	4,997,256		6,349,006		Equity	4,268,627		4,264,657
Total liabilities and equity	Total liabilities and equity	$	18,162,523	$	18,906,451	Total liabilities and equity	$	17,896,653	$	17,841,869
Company's investments in unconsolidated joint ventures	Company's investments in unconsolidated joint ventures	$	3,209,151	$	3,823,322	Company's investments in unconsolidated joint ventures	$	3,000,986	$	2,997,934

(1)At ~~June 30, 2021, $186.5~~March 31, 2022, $550.4 million of net unamortized basis differences between the amount at which our investments are carried and our share of equity in net assets of the underlying property will be amortized through equity in net income (loss) from unconsolidated joint ventures over the remaining life of the underlying items having given rise to the differences.

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ are as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Total revenues $ 289,188 $ 271,518 $ 590,729 $ 554,038
Operating expenses 42,410 35,338 88,643 86,928
Real estate taxes 54,015 51,735 108,607 105,107
Operating lease rent 5,643 6,201 11,287 12,562
Interest expense, net of interest income 79,129 79,638 157,878 165,962
Amortization of deferred financing costs 7,204 4,808 13,588 9,622
Depreciation and amortization 116,956 98,854 231,835 197,438
Total expenses 305,357 276,574 611,838 577,619
Loss on early extinguishment of debt (1,326) 0 (1,326) 0
Net loss before gain on sale $ (17,495) $ (5,056) $ (22,435) $ (23,581)
Company's equity in net loss from unconsolidated joint ventures $ (12,970) $ (2,199) $ (15,834) $ (15,013)

~~7. Deferred Costs~~

~~Deferred costs at June 30, 2021 and December 31, 2020 consisted of the following (in thousands):~~

June 30, 2021 December 31, 2020
Deferred leasing costs $ 442,771 $ 447,002
Less: accumulated amortization (280,809) (269,834)
Deferred costs, net $ 161,962 $ 177,168


	Three Months Ended March 31,
	2022		2021
Total revenues	$	335,266	$	301,541
Operating expenses	59,914		46,233
Real estate taxes	60,722		54,592
Operating lease rent	6,268		5,644
Interest expense, net of interest income	94,913		78,749
Amortization of deferred financing costs	6,757		6,384

Depreciation and amortization	112,713		114,879
Total expenses	341,287		306,481

Net loss before gain on sale	$	(6,021)	$	(4,940)
Company's equity in net loss from unconsolidated joint ventures	$	(4,715)	$	(2,864)

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

7. Deferred Costs

Deferred costs as of March 31, 2022 and December 31, 2021 consisted of the following (in thousands):


	March 31, 2022		December 31, 2021
Deferred leasing costs	$	404,778	$	400,419
Less: accumulated amortization	(282,484)		(275,924)
Deferred costs, net	$	122,294	$	124,495

8. Mortgages and Other Loans Payable

The mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments ~~at June 30, 2021~~as of March 31, 2022 and December 31, ~~2020,~~2021, respectively, were as follows (dollars in thousands):


Property	Property	Initial Maturity Date	Final Maturity Date (1)	Interest Rate (2)		June 30, 2021		December 31, 2020		Property	Current Maturity Date	Final Maturity Date (1)	Interest Rate (2)		March 31, 2022		December 31, 2021
Fixed Rate Debt:	Fixed Rate Debt:									Fixed Rate Debt:
100 Church Street	100 Church Street	July 2022			4.68%	$	202,558	$	204,875	100 Church Street	July 2022			4.68%	$	198,980	$	200,212
420 Lexington Avenue	420 Lexington Avenue	October 2024	October 2040		3.99%	291,359		294,035		420 Lexington Avenue	October 2024	October 2040		3.99%	287,243		288,660
Landmark Square	Landmark Square	January 2027			4.90%	100,000		100,000		Landmark Square	January 2027			4.90%	100,000		100,000
485 Lexington Avenue	485 Lexington Avenue	February 2027			4.25%	450,000		450,000		485 Lexington Avenue	February 2027			4.25%	450,000		450,000
1080 Amsterdam (3)	1080 Amsterdam (3)	February 2027			3.59%	34,773		34,773		1080 Amsterdam (3)	February 2027			3.59%	34,348		34,537
Total fixed rate debt	Total fixed rate debt					$	1,078,690	$	1,083,683	Total fixed rate debt					$	1,070,571	$	1,073,409
Floating Rate Debt:	Floating Rate Debt:									Floating Rate Debt:
185 Broadway (4)		November 2021	November 2023	L+	2.85%	$	178,251	$	158,478
7 Dey / 185 Broadway (4)										7 Dey / 185 Broadway (4)	November 2022	November 2023	L+	2.85%	$	203,478	$	198,169
719 Seventh Avenue										719 Seventh Avenue	September 2023		L+	1.20%	50,000		50,000
690 Madison Avenue										690 Madison Avenue	July 2024	July 2025	L+	1.50%	60,000		60,000
609 Fifth Avenue	609 Fifth Avenue	March 2022	March 2025	L+	2.95%	57,651		57,651		609 Fifth Avenue	March 2022	March 2025	L+	—%	—		52,882
220 East 42nd Street (5)		June 2023	June 2025	L+	2.75%	510,000		510,000
719 Seventh Avenue		September 2023		L+	1.20%	50,000		50,000
133 Greene Street						0		15,523
106 Spring Street						0		38,025
FHLB Facility						0		10,000
FHLB Facility						0		15,000
FHLB Facility						0		35,000
712 Madison Avenue						0		28,000
2017 Master Repurchase Agreement (6)						0		0
2017 Master Repurchase Agreement (5)										2017 Master Repurchase Agreement (5)					—		—
Total floating rate debt	Total floating rate debt					$	795,902	$	917,677	Total floating rate debt					$	313,478	$	361,051

Total fixed rate and floating rate debt										Total fixed rate and floating rate debt					$	1,384,049	$	1,434,460
Mortgages reclassed to liabilities related to assets held for sale										Mortgages reclassed to liabilities related to assets held for sale					(34,348)		(34,537)
Total mortgages and other loans payable	Total mortgages and other loans payable					$	1,874,592	$	2,001,360	Total mortgages and other loans payable					$	1,349,701	$	1,399,923
Deferred financing costs, net of amortization	Deferred financing costs, net of amortization					(16,763)		(21,388)		Deferred financing costs, net of amortization					(4,926)		(5,537)
Total mortgages and other loans payable, net	Total mortgages and other loans payable, net					$	1,857,829	$	1,979,972	Total mortgages and other loans payable, net					$	1,344,775	$	1,394,386

(1)Reflects exercise of all available options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.

(2)Interest rate as of ~~June 30, 2021,~~March 31, 2022, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.

(3)The loan is comprised of a ~~$33.9~~$33.4 million mortgage loan and $0.9 million mezzanine loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of the fifth year. The Company closed on the sale of this investment in April 2022.

(4)This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three year term with 2 one year extension options. In October 2021, an extension option was exercised, and the maturity date of this loan was extended by one year. Advances under the loan are subject to incurred costs and funded equity requirements.

(5)~~In July 2021, the Company sold a 49% interest in the property. See Note 1, "Organization and Basis of Presentation."~~

~~(6)~~In June 2021, we exercised a one year extension option which extended the maturity date to June 2022. ~~At June 30, 2021,~~As of March 31, 2022, there was 0no outstanding balance on the $400 million facility.

~~At June 30, 2021~~As of March 31, 2022 and December 31, ~~2020,~~2021, the gross book value of the properties ~~and debt and preferred equity investments~~ collateralizing the mortgages and other loans payable was approximately ~~$2.4~~$1.9 billion and ~~$2.5~~$2.1 billion, respectively.

~~Federal Home Loan Bank of New York ("FHLB") Facility~~

As of December 31, 2020, the Company’s wholly-owned subsidiary, Ticonderoga Insurance Company, or Ticonderoga, a Vermont licensed captive insurance company, was a member of the Federal Home Loan Bank of New York, or FHLBNY. As a member, Ticonderoga was able to borrow funds from the FHLBNY in the form of secured advances that bore interest at a floating rate. As a result of a Final Ruling from the Federal Housing Finance Authority, the regulator of the Federal Home Loan Bank system, all captive insurance company memberships were terminated as of February 2021. As such, all advances to Ticonderoga were repaid prior to such termination.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

Master Repurchase Agreement

The Company entered into a Master Repurchase Agreement, or MRA, known as the 2017 MRA, which provides us with the ability to sell certain mortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to collateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity. As of ~~June 30, 2021,~~March 31, 2022, there have been no margin calls on the 2017 MRA.

In April 2018, we increased the maximum facility capacity from $300.0 million to $400.0 million. The facility bears interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate and is scheduled to mature in June 2022. ~~At June 30, 2021,~~As of March 31, 2022, the facility had 0no outstanding balance.

9. Corporate Indebtedness

~~2017~~2021 Credit Facility

In ~~November 2017,~~December 2021, we entered into an ~~amendment to the~~amended and restated credit facility, referred to as the 2021 credit facility, that was previously amended by the Company in November 2017, or the 2017 credit facility, ~~that~~and was originally entered into by the Company in November 2012, or the 2012 credit facility. As of ~~June 30,~~March 31, 2022, the 2021 ~~the 2017~~ credit facility consisted of a ~~$1.5~~$1.25 billion revolving credit facility, a ~~$1.3~~$1.05 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,~~May 15, 2026, May 15, 2027, and November 21, 2024, respectively. The revolving credit facility has 2 six-month, as-of-right extension options to ~~March 31, 2023.~~May 15, 2027. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.

As of ~~June 30,~~March 31, 2022, the 2021 ~~the 2017~~ credit facility bore interest at a spread over ~~30-day LIBOR~~adjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) ~~82.5~~72.5 basis points to ~~155~~140 basis points for loans under the revolving credit facility, (ii) 9080 basis points to ~~175~~160 basis points for loans under Term Loan A, and (iii) 85 basis points to 165 basis points for loans under Term Loan B, in each case based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category.

~~At June 30, 2021,~~As of March 31, 2022, the applicable spread over adjusted Term SOFR plus 10 basis points was ~~100~~105 basis points for the revolving credit facility, ~~110~~120 basis points for Term Loan A, and ~~100~~125 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of ~~June 30, 2021,~~March 31, 2022, the facility fee was 20 basis points.

As of ~~June 30, 2021,~~March 31, 2022, we had ~~$16.5~~$2.0 million of outstanding letters of credit, ~~$0.0~~$500.0 million drawn under the revolving credit facility and ~~$1.5~~$1.25 billion outstanding under the term loan facilities, with total undrawn capacity of ~~$1.5~~$0.75 billion under the ~~2017~~2021 credit facility. ~~At June 30, 2021~~As of March 31, 2022 and December 31, ~~2020,~~2021, the revolving credit facility had a carrying value of ~~$(3.6)~~$492.0 million and ~~$105.3~~$381.3 million, respectively, net of deferred financing costs. ~~At June 30, 2021~~As of March 31, 2022 and December 31, ~~2020,~~2021, the term loan facilities had a carrying value of ~~$1.5~~$1.2 billion and ~~$1.5~~$1.2 billion, respectively, net of deferred financing costs.

The Company and the Operating Partnership are borrowers jointly and severally obligated under the ~~2017~~2021 credit facility. The ~~2017~~2021 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

Senior Unsecured Notes

The following table sets forth our senior unsecured notes and other related disclosures as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively, by scheduled maturity date (dollars in thousands):


Issuance	Issuance	June 30, 2021 Unpaid Principal Balance		June 30, 2021 Accreted Balance		December 31, 2020 Accreted Balance		Interest Rate (1)			Initial Term (in Years)	Maturity Date	Issuance	March 31, 2022 Unpaid Principal Balance		March 31, 2022 Accreted Balance		December 31, 2021 Accreted Balance		Interest Rate (1)			Initial Term (in Years)	Maturity Date
August 7, 2018 (2) (3)		$	350,000	$	350,000	$	350,000		1.52	%	3	August 2021
October 5, 2017 (2)	October 5, 2017 (2)	500,000		499,857		499,803			3.25	%	5	October 2022	October 5, 2017 (2)	$	500,000	$	499,940	$	499,913		3.25	%	5	October 2022
November 15, 2012 (4)		300,000		301,547		302,086			4.50	%	10	December 2022
December 17, 2015 (5)		100,000		100,000		100,000			4.27	%	10	December 2025
November 15, 2012 (3)													November 15, 2012 (3)	300,000		300,728		301,002			4.50	%	10	December 2022
December 17, 2015 (4)													December 17, 2015 (4)	100,000		100,000		100,000			4.27	%	10	December 2025
		$	1,250,000	$	1,251,404	$	1,251,889							$	900,000	$	900,668	$	900,915
Deferred financing costs, net	Deferred financing costs, net			(2,474)		(3,670)							Deferred financing costs, net	—		(1,127)		(1,607)
		$	1,250,000	$	1,248,930	$	1,248,219							$	900,000	$	899,541	$	899,308

(1)Interest rate as of ~~June 30, 2021,~~March 31, 2022, taking into account interest rate hedges in effect during the period.

(2)Issued by the Operating Partnership with the Company as the guarantor.

(3)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)~~(4)Issued by the Company and the Operating Partnership as co-obligors.

Restrictive Covenants

The terms of the ~~2017~~2021 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that we will not, during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, we were in compliance with all such covenants.

Junior Subordinated Deferrable Interest Debentures

In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to 8 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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SL Green Realty Corp. and SL Green Operating Partnership, L.P.

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

Principal Maturities

Combined aggregate principal maturities of mortgages and other loans payable, the ~~2017~~2021 credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of ~~June 30, 2021,~~March 31, 2022, 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			Scheduled Amortization		Principal		Revolving Credit Facility		Unsecured Term Loans		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
Remaining 2021		$	5,281	$	178,251	$	0	$	0	$	0	$	350,000	$	533,532	$	212,756
2022		8,754		255,435		0		0		0		800,000		1,064,189		227,603
Remaining 2022																		Remaining 2022	$	5,962	$	401,261	$	—	$	—	$	—	$	800,000	$	1,207,223	$	422,442
2023	2023	6,583		560,000		0		1,300,000		0		0		1,866,583		491,064		2023	6,640		50,000		—		—		—		—		56,640		750,696
2024	2024	5,268		272,750		0		200,000		0		0		478,018		622,408		2024	5,328		332,749		—		200,000		—		—		538,077		626,671
2025	2025	812		0		0		0		0		100,000		100,812		1,424,406		2025	873		—		—		—		—		100,000		100,873		1,431,734
2026																		2026	904		—		500,000		—		—		—		500,904		107,230
Thereafter	Thereafter	911		580,547		0		0		100,000		0		681,458		2,580,425		Thereafter	75		580,257		—		1,050,000		100,000		—		1,730,332		2,435,913
		$	27,609	$	1,846,983	$	0	$	1,500,000	$	100,000	$	1,250,000	$	4,724,592	$	5,558,662		$	19,782	$	1,364,267	$	500,000	$	1,250,000	$	100,000	$	900,000	$	4,134,049	$	5,774,686

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


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Interest expense before capitalized interest	Interest expense before capitalized interest	$	38,501	$	44,937	$	78,369	$	101,751	Interest expense before capitalized interest	$	32,052	$	39,868
Interest on financing leases	Interest on financing leases	1,494		2,149		2,986		3,812		Interest on financing leases	1,237		1,492
Interest capitalized	Interest capitalized	(20,671)		(16,368)		(38,254)		(36,852)		Interest capitalized	(17,941)		(17,583)
Interest income	Interest income	(364)		(648)		(753)		(1,147)		Interest income	(278)		(389)
Interest expense, net	Interest expense, net	$	18,960	$	30,070	$	42,348	$	67,564	Interest expense, net	$	15,070	$	23,388

10. Related Party Transactions

Cleaning/ Security/ Messenger and Restoration Services

Alliance Building Services, or Alliance, and its affiliates, which provide services to certain properties owned by us, are partially owned by Gary Green, a son of Stephen L. Green, who serves as a member and as the chairman emeritus of our Board of ~~Directors, and provide services to certain properties owned by us.~~Directors. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide cleaning, extermination, security, messenger, and restoration services, respectively. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.

Income earned from the profit participation, which is included in Other income on the consolidated statements of operations, was ~~$0.3~~$0.7 million and ~~$0.7~~$0.3 million for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~respectively, and $0.1 million and $1.0 million for the three and six months ended June 30, 2020,~~ respectively.

We also recorded expenses, inclusive of capitalized expenses, of ~~$3.3~~$4.3 million and ~~$5.6~~$2.3 million for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~respectively, and $2.8 million and $6.7 million for the three and six months ended June 30, 2020,~~ 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 ~~$0.3~~$0.1 million for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~respectively, and $0.1 million and $0.3 million for the three and six months ended June 30, 2020,~~ respectively.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

One Vanderbilt Avenue Investment

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

Messrs. Holliday and Mathias cannot monetize their interests until after stabilization of the property (50% within three years after stabilization and 100% three years or more after stabilization). In addition, the agreement calls for us to repurchase these interests in the event of a sale of One Vanderbilt ~~Lease~~or a transactional change of control of the Company. We also have the right to repurchase these interests on the 7-year anniversary of the stabilization of the project or upon the occurrence of certain separation events prior to the stabilization of the project relating to each of Messrs. Holliday’s and Mathias’s continued service with us. The price paid upon monetization of the interests will equal the liquidation value of the interests at the time, with the value of One Vanderbilt being based on its sale price, if applicable, or fair market value as determined by an independent third party appraiser. As of March 31, 2022, stabilization of the property was achieved.

One Vanderbilt Avenue Leases

In November 2018, we entered into a lease agreement with the One Vanderbilt Avenue joint venture covering certain floors at the property. In March 2021, the lease commenced and we relocated our corporate headquarters to the leased space. For the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, we recorded $0.7 million and ~~$0.9~~$0.1 million, respectively, of rent expense under the lease. Additionally, in June 2021, we, through a wholly-owned subsidiary, entered into a lease agreement with the One Vanderbilt Avenue joint venture for SUMMIT One Vanderbilt, which ~~is included~~commenced in ~~Marketing, general and administrative~~October 2021. For the three months ended March 31, 2022, we recorded $9.8 million of rent expense under the lease, including percentage rent, of which $6.6 million was recognized as income as a component of Equity in ~~the~~net loss from unconsolidated joint ventures in our consolidated statements of operations. ~~See Note 19, “Commitments and Contingencies.”~~

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 June 30, 2021~~as of March 31, 2022 and December 31, ~~2020~~2021 consisted of the following (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Due from joint ventures	Due from joint ventures	$	28,404	$	27,006	Due from joint ventures	$	31,001	$	28,204
Other	Other	8,026		7,651		Other	710		1,204
Related party receivables	Related party receivables	$	36,430	$	34,657	Related party receivables	$	31,711	$	29,408

11. Noncontrolling Interests on the Company's Consolidated Financial Statements

Noncontrolling interests represent the common and preferred units of limited partnership interest in the Operating Partnership not held by the Company as well as third party equity interests in our other consolidated subsidiaries. Noncontrolling interests in the Operating Partnership are shown in the mezzanine equity while the noncontrolling interests in our other consolidated subsidiaries are shown in the equity section of the Company’s consolidated financial statements.

Table of Contents

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

Common Units of Limited Partnership Interest in the Operating Partnership

As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the noncontrolling interest unit holders owned ~~5.31%~~6.00%, or ~~3,808,034~~4,095,291 units, and ~~5.44%~~5.57%, or ~~3,938,823~~3,781,565 units, of the Operating Partnership, respectively, inclusive of retroactive adjustments to reflect the reverse stock split effectuated by SL Green in January ~~2021.~~2022. As of ~~June 30, 2021, 3,808,034~~March 31, 2022, 4,095,291 shares of our common stock were reserved for issuance upon the redemption of units of limited partnership interest of the Operating Partnership.

Noncontrolling interests in the Operating Partnership is recorded at the greater of its cost basis or fair market value based on the closing stock price of our common stock at the end of the reporting period.

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

Below is a summary of the activity relating to the noncontrolling interests in the Operating Partnership for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and the twelve months ended December 31, ~~2020~~2021 (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Balance at beginning of period	Balance at beginning of period	$	358,262	$	409,862	Balance at beginning of period	$	344,252	$	358,262
Distributions	Distributions	(8,110)		(12,652)		Distributions	(4,415)		(15,749)
Issuance of common units	Issuance of common units	8,470		12,018		Issuance of common units	6,721		18,678
Redemption and conversion of common units	Redemption and conversion of common units	(41,516)		(36,085)		Redemption and conversion of common units	(18,272)		(53,289)
Net income	Net income	5,806		20,016		Net income	492		25,457
Accumulated other comprehensive loss allocation	Accumulated other comprehensive loss allocation	(186)		(2,299)		Accumulated other comprehensive loss allocation	2,277		1,042
Fair value adjustment	Fair value adjustment	32,475		(32,598)		Fair value adjustment	43,023		9,851
Balance at end of period	Balance at end of period	$	355,201	$	358,262	Balance at end of period	$	374,078	$	344,252

Preferred Units of Limited Partnership Interest in the Operating Partnership

Below is a summary of the preferred units of limited partnership interest in the Operating Partnership as of ~~June 30, 2021:~~March 31, 2022:


Issuance	Issuance	Stated Distribution Rate		Number of Units Authorized	Number of Units Issued	Number of Units Outstanding	Annual Dividend Per Unit(1)		Liquidation Preference Per Unit(2)		Conversion Price Per Unit(3)		Date of Issuance	Issuance	Stated Distribution Rate		Number of Units Authorized	Number of Units Issued	Number of Units Outstanding	Annual Dividend Per Unit(1)		Liquidation Preference Per Unit(2)		Conversion Price Per Unit(3)		Date of Issuance
Series A (4)	Series A (4)	3.50	%	109,161	109,161	109,161	$	35.0000	$	1,000.00	$	0	August 2015	Series A (4)	3.50	%	109,161	109,161	109,161	$	35.0000	$	1,000.00	$	—	August 2015
Series F	Series F	7.00%		60	60	60	$	70.0000	$	1,000.00	$	29.12	January 2007	Series F	7.00%		60	60	60	70.0000		1,000.00		29.12		January 2007
Series G (5)		4.50%		1,902,000	1,902,000	718,697	$	1.1250	$	25.00	$	88.50	January 2012
Series K	Series K	3.50%		700,000	563,954	341,677	$	0.8750	$	25.00	$	134.67	August 2014	Series K	3.50%		700,000	563,954	341,677	0.8750		25.00		134.67		August 2014
Series L	Series L	4.00%		500,000	378,634	372,634	$	1.0000	$	25.00	$	0	August 2014	Series L	4.00%		500,000	378,634	372,634	1.0000		25.00		—		August 2014
Series M		3.75%		1,600,000	1,600,000	96,357	$	0.9375	$	25.00	$	0	February 2015
Series P	Series P	4.00%		200,000	200,000	200,000	$	1.0000	$	25.00	$	0	July 2015	Series P	4.00%		200,000	200,000	200,000	1.0000		25.00		—		July 2015
Series Q	Series Q	3.50%		268,000	268,000	268,000	$	0.8750	$	25.00	$	148.95	July 2015	Series Q	3.50%		268,000	268,000	268,000	0.8750		25.00		148.95		July 2015
Series R	Series R	3.50%		400,000	400,000	400,000	$	0.8750	$	25.00	$	154.89	August 2015	Series R	3.50%		400,000	400,000	400,000	0.8750		25.00		154.89		August 2015
Series S	Series S	4.00%		1,077,280	1,077,280	1,077,280	$	1.0000	$	25.00	$	0	August 2015	Series S	4.00%		1,077,280	1,077,280	1,077,280	1.0000		25.00		—		August 2015
Series V	Series V	3.50%		40,000	40,000	40,000	$	0.8750	$	25.00	$	0	May 2019	Series V	3.50%		40,000	40,000	40,000	0.8750		25.00		—		May 2019
Series W (6)		(6)		1	1	1	(6)		(6)		(6)		January 2020
Series W (5)														Series W (5)	(6)		1	1	1	(6)		(6)		(6)		January 2020

(1)Dividends are cumulative, subject to certain provisions.

(2)Units are redeemable at any time at par for cash at the option of the 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 ~~June 30, 2021,~~March 31, 2022, 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 Series W preferred unit was issued in January 2020 in exchange for the then-outstanding Series O preferred unit. The holder of the Series W preferred unit is entitled to quarterly dividends in an amount calculated as (i) 1,350 multiplied by (ii) the current distribution per common unit of limited partnership in SL Green Operating Partnership. The holder has the right to require the Operating Partnership to repurchase the Series W unit for cash, or convert the Series W unit for Class B units, in each case at a price that is determined based on the closing price of the Company's common stock at the time such right is exercised. The unit's liquidation preference is the fair market value of the unit plus accrued distributions at the time of a liquidation event.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

Below is a summary of the activity relating to the preferred units in the Operating Partnership for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and the twelve months ended December 31, ~~2020~~2021 (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Balance at beginning of period	Balance at beginning of period	$	202,169	$	283,285	Balance at beginning of period	$	196,075	$	202,169
Issuance of preferred units	Issuance of preferred units	0		0		Issuance of preferred units	—		—
Redemption of preferred units	Redemption of preferred units	(3,631)		(82,750)		Redemption of preferred units	(17,967)		(6,040)
Dividends paid on preferred units	Dividends paid on preferred units	(3,404)		(6,163)		Dividends paid on preferred units	(1,662)		(6,760)
Accrued dividends on preferred units	Accrued dividends on preferred units	3,369		7,797		Accrued dividends on preferred units	1,497		6,706
Balance at end of period	Balance at end of period	$	198,503	$	202,169	Balance at end of period	$	177,943	$	196,075

12. Stockholders’ Equity of the Company

Common Stock

Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of ~~June 30, 2021, 67,879,802~~March 31, 2022, 64,124,447 shares of common stock and 0no shares of excess stock were issued and outstanding.

On December ~~4, 2020,~~2, 2021, our Board of Directors declared ~~the~~an ordinary dividend of $0.3108 per share and a special dividend of $2.4392 per share (together, "the Total ~~Dividend.~~Dividend"). The Total Dividend was paid on January ~~15, 2021~~18, 2022 to shareholders of record at the close of business on December 15, 2021 ("the Record ~~Date.~~Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed. As a result of the elections made, the cash option was oversubscribed and was prorated. Shareholders who elected to receive cash received, for each share of common stock they owned as of the Record Date, approximately ~~$0.3735~~$0.3976 in cash and ~~0.0279~~0.0295 shares of common stock. Shareholders who elected to receive shares received, for each share of common stock they owned as of the Record Date, approximately ~~0.0343~~0.0345 shares of common stock. The number of shares issued was calculated based on the volume weighted average trading price of SLG's common stock between January 5-7, ~~2021,~~2022 of ~~$58.15~~$79.71 per share.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

Share Repurchase Program

In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized 5 separate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.

~~At June 30, 2021,~~As of March 31, 2022, share repurchases executed under the program, excluding the redemption of OP units, ~~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 8,105,881 $104.61 8,105,881
Year ended 2018 9,468,617 $99.03 17,574,498
Year ended 2019 4,465,857 $86.06 22,040,355
Year Ended 2020 8,529,279 $62.39 30,569,634
Six months ended June 30, 2021 (1)
2,780,667 $71.51 33,350,301

~~(1) Includes 296,424 shares of common stock repurchased by the Company in June 2021 that were settled in July 2021.~~


Period	Shares repurchased	Average price paid per share	Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017	7,865,206	$107.81	7,865,206
Year ended 2018	9,187,480	$102.06	17,052,686
Year ended 2019	4,333,260	$88.69	21,385,946
Year ended 2020	8,276,032	$64.30	29,661,978
Year ended 2021	4,474,649	$75.44	34,136,627
Three months ended March 31, 2022	1,971,092	$76.69	36,107,719

Perpetual Preferred Stock

We have 9,200,000 shares of our 6.50% Series I Cumulative Redeemable Preferred Stock, or the Series I Preferred Stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series I Preferred stockholders receive annual dividends of $1.625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. We are entitled to redeem the Series I Preferred Stock at any time, in whole or from time to time in part, at par for cash. In August 2012, we received $221.9 million in net proceeds from the issuance of the Series I Preferred Stock, which were recorded net of underwriters' discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 9,200,000 units of 6.50% Series I Cumulative Redeemable Preferred Units of limited partnership interest, or the Series I Preferred Units.

Dividend Reinvestment and Stock Purchase Plan ("DRSPP")

In February 2021, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.

The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (dollars in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Shares of common stock issued	Shares of common stock issued	1,551		3,791		7,034		5,518		Shares of common stock issued	1,132		5,320
Dividend reinvestments/stock purchases under the DRSPP	Dividend reinvestments/stock purchases under the DRSPP	$	116	$	198	$	467	$	364	Dividend reinvestments/stock purchases under the DRSPP	$	89	$	351

Earnings per Share

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

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

SL Green's earnings per share for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ are computed as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,
Numerator 2021 2020 2021 2020
Basic Earnings:
Net income attributable to SL Green common stockholders $ 105,332 $ 56,444 $ 97,868 $ 171,245
Less: distributed earnings allocated to participating securities (369) (333) (738) (444)
Less: undistributed earnings allocated to participating securities (246) 0 0 (391)
Net income attributable to SL Green common stockholders (numerator for basic earnings per share) $ 104,717 $ 56,111 $ 97,130 $ 170,410
Add back: dilutive effect of earnings allocated to participating securities 369 333 738 444
Add back: undistributed earnings allocated to participating securities 246 0 0 391
Add back: effect of dilutive securities (redemption of units to common shares) 6,282 3,070 5,806 9,272
Net income attributable to SL Green common stockholders (numerator for diluted earnings per share) $ 111,614 $ 59,514 $ 103,674 $ 180,517


	Three Months Ended March 31,
Numerator	2022		2021
Basic Earnings:
Income (loss) attributable to SL Green common stockholders	$	7,751	$	(7,464)
Less: distributed earnings allocated to participating securities	(335)		(364)

Net income (loss) attributable to SL Green common stockholders (numerator for basic earnings per share)	$	7,416	$	(7,828)
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable shares	(96)		7

Add back: effect of dilutive securities (redemption of units to common shares)	492		(476)
Net income (loss) attributable to SL Green common stockholders (numerator for diluted earnings per share)	$	7,812	$	(8,297)


		Three Months Ended June 30,		Six Months Ended June 30,			Three Months Ended March 31,
Denominator	Denominator	2021	2020	2021	2020	Denominator	2022	2021
Basic Shares:	Basic Shares:					Basic Shares:
Weighted average common stock outstanding	Weighted average common stock outstanding	68,980	73,538	68,996	74,598	Weighted average common stock outstanding	64,349	66,961
Effect of Dilutive Securities:	Effect of Dilutive Securities:					Effect of Dilutive Securities:
Operating Partnership units redeemable for common shares	Operating Partnership units redeemable for common shares	4,093	4,120	4,121	4,170	Operating Partnership units redeemable for common shares	4,121	4,148
Stock-based compensation plans	Stock-based compensation plans	654	408	625	440	Stock-based compensation plans	984	588
Contingently issuable shares from special dividend declared December 4, 2020 and issued January 15, 2021		0	0	157	0
Contingently issuable shares						Contingently issuable shares	774	307
Diluted weighted average common stock outstanding	Diluted weighted average common stock outstanding	73,727	78,066	73,899	79,208	Diluted weighted average common stock outstanding	70,228	72,004

The Company has excluded ~~993,847~~351,927 and ~~1,064,788~~1,124,920 common stock equivalents from the calculation of diluted shares outstanding for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, respectively, as they were anti-dilutive. The Company has excluded 2,130,084 and 1,597,015 common stock equivalents from the calculation of diluted shares outstanding for the three and six months ended June 30, 2020, 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 ~~June 30, 2021~~March 31, 2022 owned ~~67,879,802~~64,124,447 general and limited partnership interests in the Operating Partnership and 9,200,000 Series I Preferred Units. Partnership interests in the Operating Partnership are denominated as “common units of limited partnership interest” (also referred to as “OP Units”) or “preferred units of limited partnership interest” (also referred to as “Preferred Units”). All references to OP Units and Preferred Units outstanding exclude such units held by the Company. A holder of an OP Unit may present such OP Unit to the Operating Partnership for redemption at any time (subject to restrictions agreed upon at the issuance of OP Units to particular holders that may restrict such right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, the Operating Partnership must redeem such OP Unit in exchange for the cash equal to the then value of a share of common stock of the Company, except that the Company may, at its election, in lieu of cash redemption, acquire such OP Unit for 1 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, 1 share of common stock is generally the economic equivalent of 1 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.

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

Net income (loss) allocated to the preferred unitholders and common unitholders reflects their pro rata share of net income (loss) and distributions.

All unit-related references and measurements including the number of units outstanding and earnings per unit have been retroactively adjusted to reflect the reverse stock split effectuated by SL Green’s Board of Directors in January 2021 for all periods presented in this Quarterly Report on Form 10-Q.

Table of Contents

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

Limited Partner Units

As of ~~June 30, 2021,~~March 31, 2022, limited partners other than SL Green owned ~~5.31%~~6.00%, or ~~3,808,034~~4,095,291 common units, of the Operating Partnership.

Preferred Units

Preferred units not owned by SL Green are further described in Note 11, “Noncontrolling Interests on the Company’s Consolidated Financial Statements - Preferred Units of Limited Partnership Interest in the Operating Partnership.”

Earnings per Unit

The Operating Partnership's earnings per unit for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively, are computed as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,
Numerator 2021 2020 2021 2020
Basic Earnings:
Net income attributable to SLGOP common unitholders $ 111,614 $ 59,514 $ 103,674 $ 180,517
Less: distributed earnings allocated to participating securities (369) (333) (738) (444)
Less: undistributed earnings allocated to participating securities (246) 0 0 (391)
Net income attributable to SLGOP common unitholders (numerator for basic earnings per unit) $ 110,999 $ 59,181 $ 102,936 $ 179,682
Add back: dilutive effect of earnings allocated to participating securities 369 333 738 444
Add back: undistributed earnings allocated to participating securities 246 0 0 391
Net income attributable to SLGOP common unitholders (numerator for diluted earnings per unit) $ 111,614 $ 59,514 $ 103,674 $ 180,517


	Three Months Ended March 31,
Numerator	2022		2021
Basic Earnings:
Net income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)	$	8,243	$	(7,940)
Less: distributed earnings allocated to participating securities	(335)		(364)

Net Income attributable to SLGOP common unitholders (numerator for basic earnings per unit)	$	7,908	$	(8,304)
Add back: dilutive effect of earnings allocated to participating securities and contingently issuable shares	(96)		7

Net Income attributable to SLGOP common unitholders (numerator for diluted earnings per unit)	$	7,812	$	(8,297)


		Three Months Ended June 30,		Six Months Ended June 30,			Three Months Ended March 31,
Denominator	Denominator	2021	2020	2021	2020	Denominator	2022	2021
Basic units:	Basic units:					Basic units:
Weighted average common units outstanding	Weighted average common units outstanding	73,073	77,658	73,117	78,768	Weighted average common units outstanding	68,470	71,109
Effect of Dilutive Securities:	Effect of Dilutive Securities:					Effect of Dilutive Securities:
Stock-based compensation plans	Stock-based compensation plans	654	408	625	440	Stock-based compensation plans	984	588
Contingently issuable units from special distribution declared December 4, 2020 and issued January 15, 2021		0	0	157	0
Contingently issuable units						Contingently issuable units	774	307
Diluted weighted average common units outstanding	Diluted weighted average common units outstanding	73,727	78,066	73,899	79,208	Diluted weighted average common units outstanding	70,228	72,004

The Operating Partnership has excluded ~~993,847~~351,927 and ~~1,064,788~~1,124,920 common unit equivalents from the diluted units outstanding for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, respectively, as they were anti-dilutive. The Operating Partnership has excluded 2,130,084 and 1,597,015 common unit equivalents from the diluted units outstanding for the three and six months ended June 30, 2020, respectively, as they were anti-dilutive.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

14. Share-based Compensation

We have share-based employee and director compensation plans. Our employees are compensated through the Operating Partnership. Under each plan, whenever the Company issues common or preferred stock, the Operating Partnership issues an equivalent number of units of limited partnership interest of a corresponding class to the Company.

The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights, cash-based awards and other equity-based awards. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted under the 2005 Plan. Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 3.74 Fungible Units per share subject to such awards, (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five years from the date of grant counting as 0.73 fungible units per share subject to such awards, and (3) all other awards (e.g., 10-year stock options) counting as 1.0 fungible units per share subject to such awards. Awards granted under the 2005 Plan prior to the approval of the fourth amendment and restatement in June 2016 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios. As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 27,030,000 shares. If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares. Currently, unless the 2005 Plan has been previously terminated by the Company's Board of Directors, new awards may be granted under the 2005 Plan until June 2, 2026, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by the Company's stockholders. As of ~~June 30, 2021, 2.3~~March 31, 2022, 0.2 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units. A proposal to increase the 2005 Plan by 5,180,000 fungible units was approved by the Board of Directors in April 2022 and will be voted upon at the Company's annual meeting of stockholders on June 1, 2022.

Stock Options and Class O LTIP Units

Options are granted with an exercise price at the fair market value of the Company's common stock on the date of grant and, subject to employment, generally expire five years or ten years from the date of grant, are not transferable other than on death, and generally vest in one year to five years commencing one year from the date of grant. We have also granted Class O LTIP Units, which are a class of LTIP Units in the Operating Partnership structured to provide economics similar to those of stock options. Class O LTIP Units, once vested, may be converted, at the election of the holder, into a number of common units of the Operating Partnership per Class O LTIP Unit determined by the increase in value of a share of the Company’s common stock at the time of conversion over a participation threshold, which equals the fair market value of a share of the Company’s common stock at the time of grant. Class O LTIP Units are entitled to distributions, subject to vesting, equal per unit to 10% of the per unit distributions paid with respect to the common units of the Operating Partnership.

The fair value of each stock option or LTIP Unit granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information.

There were 0no options granted during the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 or the year ended December 31, ~~2020.~~2021.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

A summary of the status of the Company's stock options as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, and changes during the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and year ended December 31, ~~2020~~2021 are as follows:


		June 30, 2021			December 31, 2020				March 31, 2022			December 31, 2021
		Options Outstanding	Weighted Average Exercise Price		Options Outstanding	Weighted Average Exercise Price			Options Outstanding	Weighted Average Exercise Price		Options Outstanding	Weighted Average Exercise Price
Balance at beginning of period	Balance at beginning of period	784,995	$	102.62	1,007,665	$	105.35	Balance at beginning of period	394,089	$	100.56	761,686	$	105.76
Granted		0	0		0	0

Exercised	Exercised	0	0		—	0		Exercised	—	—		(11,314)	72.30
Lapsed or canceled	Lapsed or canceled	(68,015)	100.95		(222,670)	114.97		Lapsed or canceled	(28,283)	112.48		(356,283)	112.56
Balance at end of period	Balance at end of period	716,980	$	102.77	784,995	$	102.62	Balance at end of period	365,806	$	99.64	394,089	$	100.56
Options exercisable at end of period	Options exercisable at end of period	716,980	$	102.77	782,022	$	102.62	Options exercisable at end of period	365,806	$	99.64	394,089	$	100.56

The remaining weighted average contractual life of the options outstanding was ~~1.8~~2.3 years and the remaining average contractual life of the options exercisable was ~~1.8~~2.3 years.

During the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, we recognized 0no compensation expense related to options. During the three ~~and six~~ months ended ~~June 30, 2020,~~March 31, 2021, we recognized no compensation expense related to ~~options of $0.01 million and $0.03 million, respectively.~~options. As of ~~June 30, 2021,~~March 31, 2022, there was 0no unrecognized compensation cost related to unvested stock options.

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~~Vesting occurs at rates ranging from 15% to 35% once performance criteria are reached.

A summary of the Company's restricted stock as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 and changes during the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and the year ended December 31, ~~2020,~~2021, are as follows:


		June 30, 2021		December 31, 2020		March 31, 2022		December 31, 2021
Balance at beginning of period	Balance at beginning of period	3,439,674		3,465,347			Balance at beginning of period	3,459,363		3,337,545
Granted	Granted	145,845		8,959			Granted	77,148		141,515
Canceled	Canceled	(16,759)		(34,632)			Canceled	(9,075)		(19,697)
Balance at end of period	Balance at end of period	3,568,760		3,439,674			Balance at end of period	3,527,436		3,459,363
Vested during the period	Vested during the period	122,715		128,891			Vested during the period	116,862		122,759
Compensation expense recorded	Compensation expense recorded	$	4,258,931	$	10,895,459		Compensation expense recorded	$	1,920,738	$	8,497,054
Total fair value of restricted stock granted during the period	Total fair value of restricted stock granted during the period	$	9,214,531	$	734,315		Total fair value of restricted stock granted during the period	$	5,931,470	$	9,214,531

The fair value of restricted stock that vested during the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and the year ended December 31, ~~2020~~2021 was ~~$11.0~~$9.6 million and ~~$12.5~~$11.3 million, respectively. As of ~~June 30, 2021,~~March 31, 2022, there was ~~$11.5~~$10.3 million of total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of ~~1.9~~1.5 years.

We granted LTIP Units, which include bonus, time-based and performance-based awards, with a fair value of ~~$40.1~~$38.6 million and ~~$37.0~~$55.0 million as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively. The grant date fair value of the LTIP Unit awards was calculated in accordance with ASC 718. A third party consultant determined that the fair value of the LTIP Units has a discount to our common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP Units will reach parity with other common partnership units and the illiquidity due to transfer restrictions. As of ~~June 30, 2021,~~March 31, 2022, there was ~~$55.4~~$72.8 million of total unrecognized compensation expense related to the time-based and performance based awards, which is expected to be recognized over a weighted average period of ~~1.8~~1.9 years.

During the three ~~and six~~ months ended ~~June 30,~~March 31, 2022, we recorded compensation expense related to bonus, time-based and performance based awards of $10.2 million. During the three months ended March 31, 2021, we recorded compensation expense related to bonus, time-based and performance based awards of $9.1 million and $18.2 million, respectively. During the three and six months ended June 30, 2020, we recorded compensation expense related to bonus, time-based and performance based awards of $6.7 million and $14.0 million, respectively.million.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

For the three ~~and six~~ months ended ~~June 30, 2021, $0.5~~March 31, 2022, $0.3 million ~~and $1.0 million, respectively,~~ was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options. For the three ~~and six~~ months ended ~~June 30, 2020, $0.6~~March 31, 2021, $0.5 million ~~and $1.1 million, respectively,~~ was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.

Deferred Compensation Plan for Directors

Under our Non-Employee Director's Deferral Program, which commenced July 2004, the Company's non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees, meeting fees and annual stock grant. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The program provides that a director's phantom stock units generally will be settled in an equal number of shares of common stock upon the earlier of (i) the January 1 coincident with or the next following such director's termination of service from the Board of Directors or (ii) a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the first business day of the respective quarter. Each participating non-employee director is also credited with dividend equivalents or phantom stock units based on the dividend rate for each quarter, which are either paid in cash currently or credited to the director’s account as additional phantom stock units.

During the ~~six~~three months ended ~~June 30, 2021, 20,363~~March 31, 2022, 14,261 phantom stock units and ~~12,150~~9,207 shares of common stock were issued to our Board of Directors. We recorded compensation expense of ~~$0.2~~$1.8 million and ~~$2.0~~$1.8 million during the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~respectively, related to the Deferred Compensation Plan. We recorded compensation expense of $0.2 million and $2.0 million during the three and six months ended June 30, 2020,~~ respectively, related to the Deferred Compensation Plan.

As of ~~June 30, 2021,~~March 31, 2022, there were ~~161,139~~179,462 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.

Employee Stock Purchase Plan

In 2007, the Company's Board of Directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to ~~encourage our employees to make our business more successful by providing~~provide equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase the Company's shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. The Company filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of ~~June 30, 2021, 165,906~~March 31, 2022, 176,385 shares of our common stock had been issued under the ESPP.

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

15. Accumulated Other Comprehensive Loss

The following tables set forth the changes in accumulated other comprehensive loss by component as of ~~June 30, 2021~~March 31, 2022 (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 on marketable securities Total
Balance at December 31, 2020 $ (57,415) $ (10,853) $ 1,021 $ (67,247)
Other comprehensive loss before reclassifications 7,454 (19,320) 231 (11,635)
Amounts reclassified from accumulated other comprehensive loss 8,478 3,541 0 12,019
Balance at June 30, 2021 $ (41,483) $ (26,632) $ 1,252 $ (66,863)


	Net unrealized gain (loss) on derivative instruments (1)		SL Green’s share of joint venture net unrealized loss on derivative instruments (2)		Net unrealized (loss) gain on marketable securities		Total
Balance at December 31, 2021	$	(25,881)	$	(21,994)	$	1,117	$	(46,758)
Other comprehensive gain before reclassifications	26,790		9,785		(1,691)		34,884
Amounts reclassified from accumulated other comprehensive loss	3,649		964		—		4,613
Balance at March 31, 2022	$	4,558	$	(11,245)	$	(574)	$	(7,261)

(1)Amount reclassified from accumulated other comprehensive loss is included in interest expense in the respective consolidated statements of operations. As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the deferred net gains from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized loss on derivative instruments, was ~~$(0.7)~~$(0.6) million and ~~$(0.5)~~$(0.6) million, respectively.

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

Table of Contents

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

16. Fair Value Measurements

We are required to disclose fair value information with regard to certain of our financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practical to estimate fair value. The FASB guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. We measure and/or disclose the estimated fair value of certain financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. We follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. Our assessment of the significance of the particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(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 June 30, 2021~~as of March 31, 2022 and December 31, ~~2020~~2021 (in thousands):


		June 30, 2021									March 31, 2022
		Total		Level 1		Level 2		Level 3			Total		Level 1		Level 2		Level 3
Assets:	Assets:									Assets:
Marketable securities available-for-sale	Marketable securities available-for-sale	$	24,289	$	0	$	24,289	$	0	Marketable securities available-for-sale	$	22,353	$	—	$	22,353	$	—
Interest rate cap and swap agreements (included in Other assets)	Interest rate cap and swap agreements (included in Other assets)	$	275	$	0	$	275	$	0	Interest rate cap and swap agreements (included in Other assets)	10,052		—		10,052		—
Liabilities:	Liabilities:									Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)	Interest rate cap and swap agreements (included in Other liabilities)	$	44,912	$	0	$	44,912	$	0	Interest rate cap and swap agreements (included in Other liabilities)	$	5,795	$	—	$	5,795	$	—


		December 31, 2020									December 31, 2021
		Total		Level 1		Level 2		Level 3			Total		Level 1		Level 2		Level 3
Assets:	Assets:									Assets:
Marketable securities		$	28,570	$	0	$	28,570	$	0
Marketable securities available-for-sale										Marketable securities available-for-sale	$	24,146	$	—	$	24,146	$	—
Interest rate cap and swap agreements (included in Other assets)	Interest rate cap and swap agreements (included in Other assets)	$	28	$	0	$	28	$	0	Interest rate cap and swap agreements (included in Other assets)	1,896		—		1,896		—
Liabilities:	Liabilities:									Liabilities:
Interest rate cap and swap agreements (included in Other liabilities)	Interest rate cap and swap agreements (included in Other liabilities)	$	61,217	$	0	$	61,217	$	0	Interest rate cap and swap agreements (included in Other liabilities)	$	29,912	$	—	$	29,912	$	—

We evaluate real estate investments and debt and preferred equity investments, including intangibles, for potential impairment primarily utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts, all of which are classified as Level 3 inputs.

In January 2021, pursuant to the partnership documents of our 885 Third Avenue investment, certain participating rights of the common member expired. As a result, it was determined that this investment is a VIE of which we are the primary beneficiary, and the investment was consolidated in our financial statements. Upon consolidating the entity, the assets and liabilities of the entity were recorded at fair value. This fair value was determined using a third party valuation which primarily utilized cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts, all of which are classified as Level 3 inputs.

Marketable securities classified as Level 1 are derived from quoted prices in active markets. The valuation technique used to measure the fair value of marketable securities classified as Level 2 were valued based on quoted market prices or model driven valuations using the significant inputs derived from or corroborated by observable market data. We do not intend to sell these securities and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases.

The fair value of derivative instruments is based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well-recognized financial principles and reasonable estimates about relevant future market conditions, which are classified as Level 2 inputs.

Table of Contents

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

Notes to Consolidated Financial Statements (cont.)

March 31, 2022

(unaudited)

The 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.

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

The following table provides the carrying value and fair value of these financial instruments as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 (in thousands):


		June 30, 2021				December 31, 2020					March 31, 2022				December 31, 2021
		Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value			Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value

Debt and preferred equity investments	Debt and preferred equity investments	$	1,072,711	(2)		$	1,076,542	(2)		Debt and preferred equity investments	$	1,107,870	(2)		$	1,088,723	(2)

Fixed rate debt	Fixed rate debt	$	3,930,094	$	4,014,621	$	3,135,572	$	3,237,075	Fixed rate debt	$	3,321,239	$	3,322,000	$	3,274,324	$	3,336,463
Variable rate debt	Variable rate debt	795,902		801,014		1,827,677		1,822,740		Variable rate debt	813,478		813,040		801,051		800,672
		$	4,725,996	$	4,815,635	$	4,963,249	$	5,059,815		$	4,134,717	$	4,135,040	$	4,075,375	$	4,137,135

(1)Amounts exclude net deferred financing costs.

(2)~~At June 30, 2021,~~As of March 31, 2022, debt and preferred equity investments had an estimated fair value ranging between $1.0 billion and $1.1 billion. AtAs of December 31, ~~2020,~~2021, debt and preferred equity investments had an estimated fair value ranging between $1.0 billion and $1.1 billion.

~~Disclosure about~~Disclosures regarding fair value of financial instruments was based on pertinent information available to us as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021. Such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

17. Financial Instruments: Derivatives and Hedging

In the normal course of business, we use a variety of commonly used derivative instruments, such as interest rate swaps, caps, ~~collar~~collars and floors, to manage, or hedge interest rate risk. We hedge our exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on existing debt. We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedge asset, liability, or firm commitment through earnings, or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows. Currently, all of our designated derivative instruments are effective hedging instruments.

The following table summarizes the notional value at inception and fair value of our consolidated derivative financial instruments ~~at June 30, 2021~~as of March 31, 2022 based on Level 2 information. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands).


		Notional Value		Strike Rate		Effective Date	Expiration Date	Balance Sheet Location	Fair Value			Notional Value		Strike Rate		Effective Date	Expiration Date	Balance Sheet Location	Fair Value
Interest Rate Swap		$	350,000	0.544	%	April 2020	August 2021	Other Liabilities	$	(173)
Interest Rate Cap		111,869		3.500	%	December 2020	November 2021	Other Assets	0
Interest Rate Cap		510,000		3.000	%	June 2020	December 2021	Other Assets	0
Interest Rate Swap		200,000		0.138	%	February 2021	February 2022	Other Liabilities	(25)
Interest Rate Swap		100,000		0.136	%	February 2021	February 2022	Other Liabilities	(11)
Interest Rate Cap	Interest Rate Cap	85,000		4.000	%	March 2021	March 2022	Other Assets	0		Interest Rate Cap	$	111,869	3.500	%	November 2021	November 2022	Other Assets	$	9
Interest Rate Swap	Interest Rate Swap	100,000		0.212	%	January 2021	January 2023	Other Assets	57		Interest Rate Swap	100,000		0.212	%	January 2021	January 2023	Other Assets	1,223
Interest Rate Swap	Interest Rate Swap	400,000		0.160	%	February 2021	February 2023	Other Assets	218		Interest Rate Swap	400,000		0.184	%	January 2022	February 2023	Other Assets	4,838
Interest Rate Swap	Interest Rate Swap	200,000		1.131	%	July 2016	July 2023	Other Liabilities	(3,526)		Interest Rate Swap	50,000		0.633	%	February 2022	February 2023	Other Assets	373
Interest Rate Swap	Interest Rate Swap	100,000		1.161	%	July 2016	July 2023	Other Liabilities	(1,825)		Interest Rate Swap	100,000		1.163	%	November 2021	July 2023	Other Assets	1,177
Interest Rate Swap	Interest Rate Swap	150,000		2.696	%	January 2019	January 2024	Other Liabilities	(8,742)		Interest Rate Swap	200,000		1.133	%	November 2021	July 2023	Other Assets	2,432
Interest Rate Swap	Interest Rate Swap	150,000		2.721	%	January 2019	January 2026	Other Liabilities	(13,045)		Interest Rate Swap	150,000		2.700	%	December 2021	January 2024	Other Liabilities	(1,153)
Interest Rate Swap	Interest Rate Swap	200,000		2.740	%	January 2019	January 2026	Other Liabilities	(17,565)		Interest Rate Swap	150,000		2.721	%	December 2021	January 2026	Other Liabilities	(1,865)
Interest Rate Swap											Interest Rate Swap	200,000		2.762	%	December 2021	January 2026	Other Liabilities	(2,777)
									$	(44,637)									$	4,257

~~NaN~~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 ~~and six~~ months ended ~~June 30, 2021~~March 31, 2022 or ~~2020.~~2021.

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of ~~June 30, 2021,~~March 31, 2022, the fair value of derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was ~~$46.2~~$6.8 million. As of ~~June 30, 2021,~~March 31, 2022, the Company was not required to post any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of ~~$46.9~~$7.0 million ~~at June 30, 2021.~~as of March 31, 2022.

Gains and losses on terminated hedges are included in accumulated other comprehensive income (loss), and are recognized into earnings over the term of the related mortgage obligation. Over time, the realized and unrealized gains and losses held in accumulated other comprehensive loss will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that ~~$16.3~~$(3.7) million of the current balance held in accumulated other comprehensive loss will be reclassified into interest expense and ~~$5.8~~$1.3 million of the portion related to our share of joint venture accumulated other comprehensive loss will be reclassified into equity in net loss from unconsolidated joint ventures within the next 12 months.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

The following table presents the effect of our derivative financial instruments and our share of our joint ventures' derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of operations for the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands):


		Amount of Loss Recognized in Other Comprehensive Loss				Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income		Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income								Amount of Gain Recognized in Other Comprehensive Loss			Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income			Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income
		Three Months Ended June 30,					Three Months Ended June 30,						Three Months Ended March 31,								Three Months Ended March 31,
Derivative	Derivative	2021		2020					2021			2020					Derivative				2021			Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income		2022			2021
Interest Rate Swaps/Caps	Interest Rate Swaps/Caps	$	(2,465)	$	(7,407)			Interest expense		$	(4,555)			$	(3,722)			Interest Rate Swaps/Caps	$	28,378		$	10,220		Interest expense		$	(3,866)		$	(4,388)
Share of unconsolidated joint ventures' derivative instruments	Share of unconsolidated joint ventures' derivative instruments	(55,453)		(1,087)				Equity in net loss from unconsolidated joint ventures		(2,050)				(1,182)				Share of unconsolidated joint ventures' derivative instruments	10,308			34,955			Equity in net loss from unconsolidated joint ventures		(1,015)			(1,700)
		$	(57,918)	$	(8,494)					$	(6,605)			$	(4,904)				$	38,686		$	45,175				$	(4,881)		$	(6,088)

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 six months ended June 30, 2021 and 2020, respectively (in thousands):

Amount of Gain (Loss)
Recognized in
Other Comprehensive
Loss Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Loss Reclassified from
Accumulated Other
Comprehensive Loss into Income
Six Months Ended June 30, Six Months Ended June 30,
Derivative 2021 2020 2021 2020
Interest Rate Swaps/Caps $ 7,755 $ (52,489) Interest expense $ (8,943) $ (4,447)
Share of unconsolidated joint ventures' derivative instruments (20,498) (8,175) Equity in net loss from unconsolidated joint ventures (3,750) (1,893)
$ (12,743) $ (60,664) $ (12,693) $ (6,340)

The following table summarizes the notional value at inception and fair value of our joint ventures' derivative financial instruments ~~at June 30, 2021~~as of March 31, 2022 based on Level 2 information. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands).


		Notional Value		Strike Rate		Effective Date	Expiration Date	Classification	Fair Value			Notional Value		Strike Rate		Effective Date	Expiration Date	Classification	Fair Value
Interest Rate Cap	Interest Rate Cap	$	1,250,000	1.250	%	November 2020	October 2024	Asset	$	5,259	Interest Rate Cap	$	1,075,000	2.850	%	September 2021	September 2022	Asset	$	21
Interest Rate Cap											Interest Rate Cap	125,000		2.850	%	September 2021	September 2022	Asset	2
Interest Rate Cap											Interest Rate Cap	23,000		4.750	%	January 2021	January 2023	Asset	2
Interest Rate Cap											Interest Rate Cap	220,000		4.000	%	February 2022	February 2023	Asset	68
Interest Rate Cap											Interest Rate Cap	510,000		3.000	%	December 2021	June 2023	Asset	1,297
Interest Rate Cap											Interest Rate Cap	237,340		0.550	%	February 2022	May 2024	Asset	14,994
Interest Rate Cap											Interest Rate Cap	118,670		0.550	%	February 2022	May 2024	Asset	14,977
Interest Rate Swap	Interest Rate Swap	177,000		1.669	%	March 2016	February 2026	Liability	(6,953)		Interest Rate Swap	177,000		1.669	%	March 2016	February 2026	Asset	5,014
									$	(1,694)									$	36,375

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

18. Lease Income

The Operating Partnership is the lessor and the sublessor to tenants under operating and sales-type leases. The minimum rental amounts due under the leases are generally subject to scheduled fixed increases or adjustments. The leases generally also require that the tenants reimburse us for increases in certain operating costs and real estate taxes above their base year costs.

The components of lease income from operating leases during the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ were as follows (in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Fixed lease payments	Fixed lease payments	$	165,808	$	172,511	$	330,487	$	366,735	Fixed lease payments	$	136,581	$	164,679
Variable lease payments	Variable lease payments	20,695		21,745		45,974		48,913		Variable lease payments	19,555		25,279
Total lease payments (1)	Total lease payments (1)	$	186,503	$	194,256	$	376,461	$	415,648	Total lease payments (1)	$	156,136	$	189,958
Amortization of acquired above and below-market leases	Amortization of acquired above and below-market leases	(1,892)		1,630		(3,761)		2,869		Amortization of acquired above and below-market leases	(105)		(1,869)
Total rental revenue	Total rental revenue	$	184,611	$	195,886	$	372,700	$	418,517	Total rental revenue	$	156,031	$	188,089

(1)Amounts include ~~$66.7~~$56.2 million and ~~$132.5~~$65.8 million of sublease income during the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and $60.8 million and $127.1 million of sublease income for the three and six months ended June 2020,~~ respectively.

The components of lease income from sales-type leases during the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Interest income (1)
$ 1,105 $ 0 $ 2,205 $ 0


	Three Months Ended March 31,
	2022		2021

Interest income (1)	$	1,092	$	1,101

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

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(unaudited)~~

19. Commitments and Contingencies

Legal Proceedings

As of ~~June 30, 2021,~~March 31, 2022, the Company and the Operating Partnership were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio which if adversely determined could have a material adverse impact on us.

In September 2021, the Company acquired the fee position in 1591-1597 Broadway. The property was conveyed by the Company to a third party in May 2022, in connection with a settlement.

On October 31, 2021, HNA, through an affiliated entity, filed for Chapter 11 bankruptcy protection on account of its investment in 245 Park Avenue, together with another asset in Chicago. The Company contested the filing, on the basis that the filing was done in bad faith and in violation of HNA's agreements with the Company, and is currently appealing the Bankruptcy court’s ruling upholding the filing by HNA. See Note 5, "Debt and Preferred Equity Investments."

Environmental Matters

Our management believes that the properties are in compliance in all material respects with applicable ~~Federal,~~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.

~~Lease Arrangements~~

We are a tenant under leases for certain properties, including ground leases. These leases have expirations from 2022 to 2119, or 2043 to 2119 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 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 lease arrangements as of June 30, 2021:~~

Property (1)
Year of Current Expiration
Year of Final Expiration (2)
1185 Avenue of the Americas 2043 2043
SL Green Headquarters at One Vanderbilt (3)
2043 2048
625 Madison Avenue 2022 2054
420 Lexington Avenue 2050 2080
885 Third Avenue 2080 2080
711 Third Avenue (4)
2033 2083
1080 Amsterdam Avenue (5)
2111 2111
15 Beekman (6)(7)
2119 2119

~~(1)All leases are classified as operating leases unless otherwise specified.~~

~~(2)Reflects exercise of all available extension options.~~

~~(3)In March 2021, the Company commenced its lease for its corporate headquarters at One Vanderbilt. See note 10, "Related Party Transactions."~~

~~(4)The Company owns 50% of the fee interest.~~

~~(5)A portion of the lease is classified as a financing lease.~~

~~(6)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.~~

~~(7)~~In August 2020, the Company entered into a long-term sublease with an unconsolidated joint venture as part of the capitalization of the 15 Beekman development project. See Note 6, "Investments in Unconsolidated Joint Ventures."

~~Table of Contents~~

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

~~Notes to Consolidated Financial Statements (cont.)~~

~~June 30, 2021~~

~~(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 June 30, 2021 (in thousands):

Financing leases Operating leases
Remaining 2021 $ 1,741 $ 14,647
2022 3,522 29,386
2023 3,570 29,502
2024 3,641 30,545
2025 3,810 30,772
2026 3,858 30,911
Thereafter 256,692 631,532
Total minimum lease payments $ 276,834 $ 797,295
Amount representing interest (152,026)
Amount discounted using incremental borrowing rate (353,982)
Lease liabilities $ 124,808 $ 443,313

~~The following table provides lease cost information for the Company's operating leases for the three and six months ended June 30, 2021 and 2020 (in thousands):~~

Three Months Ended June 30, Six Months Ended June 30,
Operating Lease Costs 2021 2020 2021 2020
Operating lease costs before capitalized operating lease costs $ 7,568 $ 8,622 $ 15,135 $ 16,735
Operating lease costs capitalized (861) (791) (1,689) (1,537)
Operating lease costs, net (1)
$ 6,707 $ 7,831 $ 13,446 $ 15,198

~~(1)This amount is included in operating lease rent in our consolidated statements of operations.~~

~~The following table provides lease cost information for the Company's financing leases for the three and six months ended June 30, 2021 and 2020 (in thousands):~~

Three Months Ended June 30, Six Months Ended June 30,
Financing Lease Costs 2021 2020 2021 2020
Interest on financing leases before capitalized interest $ 1,494 $ 2,149 $ 2,986 $ 3,812
Interest on financing leases capitalized 0 (1,043) 0 (1,790)
Interest on financing leases, net (1)
1,494 1,106 2,986 2,022
Amortization of right-of-use assets (2)
180 305 360 610
Financing lease costs, net $ 1,674 $ 1,411 $ 3,346 $ 2,632

~~(1)These amounts are included in interest expense, net of interest income in our consolidated statements of operations.~~

~~(2)These amounts are included in depreciation and amortization in our consolidated statements of operations.~~

As of June 30, 2021, the weighted-average discount rate used to calculate the lease liabilities was 4.55%. As of June 30, 2021, the weighted-average remaining lease term was 28 years, inclusive of purchase options expected to be exercised.

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

Notes to Consolidated Financial Statements (cont.)

~~June 30, 2021~~March 31, 2022

(unaudited)

20. Segment Information

The Company has 2 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 ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ and selected asset information as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, regarding our operating segments are as follows (in thousands):

Real Estate Segment Debt and Preferred Equity Segment Total Company
Total revenues
Three months ended:
June 30, 2021 $ 198,000 $ 20,107 $ 218,107
June 30, 2020 213,756 39,943 253,699
Six months ended:
June 30, 2021 $ 404,829 $ 39,380 $ 444,209
June 30, 2020 489,526 78,476 568,002
Net income
Three months ended:
June 30, 2021 $ 100,239 $ 16,895 $ 117,134
June 30, 2020 40,057 26,570 66,627
Six months ended:
June 30, 2021 $ 80,212 $ 33,067 $ 113,279
June 30, 2020 151,290 42,451 193,741
Total assets
As of:
June 30, 2021 $ 10,042,944 $ 1,123,220 $ 11,166,164
December 31, 2020 10,579,899 1,127,668 11,707,567


	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues
Three months ended:
March 31, 2022	$	168,076	$	19,888	$	187,964
March 31, 2021	206,829		19,273		226,102



Net income (loss)
Three months ended:
March 31, 2022	$	(3,482)	$	16,967	$	13,485
March 31, 2021	(20,027)		16,172		(3,855)



Total assets
As of:
March 31, 2022	$	9,902,557	$	1,112,408	$	11,014,965
December 31, 2021	9,974,140		1,092,489		11,066,629

Interest costs for the debt and preferred equity segment include actual costs incurred for borrowings on the 2017 ~~MRA and the FHLB Facility.~~MRA. 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 between periods. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. For the three ~~and six~~ months ended ~~June 30,~~March 31, 2022, marketing, general and administrative expenses totaled $24.8 million. For the three months ended March 31, 2021, marketing, general and administrative expenses totaled ~~$22.1 million and $44.9 million, respectively. For the three and six months ended June 30, 2020, marketing, general and administrative expenses totaled $23.5 million and $43.1 million, respectively.~~$22.9 million. All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

SL Green Realty Corp., which is referred to as SL Green or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the acquisition, development, repositioning, ownership, management and operation of commercial and residential real estate properties, principally office properties, located in the New York metropolitan ~~area.~~area, principally Manhattan. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.

The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements appearing in this Quarterly Report on this Form 10-Q and in Item 8 of our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.


				Consolidated		Unconsolidated		Total							Consolidated			Unconsolidated		Total
Location	Location	Property Type		Number of Buildings	Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Weighted Average Occupancy(1) (unaudited)		Location	Property Type		Number of Buildings		Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Number of Buildings	Approximate Square Feet (unaudited)	Weighted Average Occupancy(1) (unaudited)
Commercial:	Commercial:											Commercial:
Manhattan	Manhattan	Office		16	10,259,345	9	10,869,183	25	21,128,528	93.0	%	Manhattan	Office		12		8,180,345	11	13,661,381	23	21,841,726	91.5	%
		Retail		1	10,040	9	301,996	10	312,036	90.5	%		Retail		2	(2)	17,888	9	301,996	11	319,884	91.2	%
		Development/Redevelopment	(1)	7	1,912,984	3	2,927,782	10	4,840,766	N/A			Development/Redevelopment	(1)	6		2,230,282	2	1,618,310	8	3,848,592	N/A
													Fee Interest		1		7,684	—	—	1	7,684	N/A
				24	12,182,369	21	14,098,961	45	26,281,330	93.0	%				21		10,436,199	22	15,581,687	43	26,017,886	91.5	%
Suburban	Suburban	Office		7	862,800	—	—	7	862,800	82.4	%	Suburban	Office		7		862,800	—	—	7	862,800	78.6	%

Total commercial properties	Total commercial properties			31	13,045,169	21	14,098,961	52	27,144,130	92.6	%	Total commercial properties			28		11,298,999	22	15,581,687	50	26,880,686	91.0	%
Residential:	Residential:											Residential:
Manhattan	Manhattan	Residential		1	82,250	7	736,416	8	818,666	74.0	%	Manhattan	Residential		2	(2)	222,632	6	445,934	8	668,566	87.9	%

Total portfolio	Total portfolio			32	13,127,419	28	14,835,377	60	27,962,796	92.0	%	Total portfolio			30		11,521,631	28	16,027,621	58	27,549,252	91.0	%

As of March 31, 2022, we also managed ~~two~~one office ~~buildings~~building owned by a third ~~parties~~party encompassing approximately ~~2.1~~0.3 million square feet (unaudited), and held debt and preferred equity investments with a book value of $1.1 billion, excluding approximately $0.1 billion of debt and preferred equity investments and other financing receivables that are included in other balance sheet line items other than the Debt and preferred equity investments line item.

Critical Accounting Policies and Estimates

Refer to the ~~2020~~2021 Annual Report on Form 10-K of the Company and the Operating Partnership for a discussion of our critical accounting policies and estimates, which include investment in commercial real estate properties, investment in unconsolidated joint ventures, lease classification, revenue recognition, and debt and preferred equity investments. During the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, there were no material changes to these policies.

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Results of Operations

The COVID-19 pandemic has caused, and continues to cause, severe disruptions with wide ranging impacts to the global economy and everyday life. 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. 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 including vaccination efforts, the impact of new variants, 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 our 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 ~~June 30, 2021~~March 31, 2022 to the three months ended ~~June 30, 2020~~March 31, 2021

The following comparison for the three months ended ~~June 30, 2021,~~March 31, 2022, or ~~2021,~~2022, to the three months ended ~~June 30, 2020,~~March 31, 2021, or ~~2020,~~2021, makes reference to the effect of the following:

i.“Same-Store Properties,” which represents all operating properties owned by us at January 1, ~~2020~~2021 and still owned by us in the same manner ~~at June 30, 2021~~as of March 31, 2022 (Same-Store Properties totaled 2321 of our 3230 consolidated operating buildings),

ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in ~~2021~~2022 and ~~2020~~2021 and all non-Same-Store Properties, including properties that are under development or redevelopment,

iii."Disposed Properties," which represents all properties or interests in properties sold in ~~2021~~2022 and ~~2020,~~2021, and

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


		Same-Store								Disposed				Other				Consolidated										Same-Store								Disposed				Other								Consolidated
(in millions)	(in millions)	2021		2020		$ Change		% Change		2021		2020		2021		2020		2021		2020			$ Change		% Change		(in millions)	2022		2021		$ Change		% Change		2022		2021		2022				2021				2022				2021				$ Change		% Change

Rental revenue	Rental revenue	$	156.6	$	155.9	$	0.7	0.4	%	$	5.0	$	14.0	$	23.0	$	26.0	$	184.6	$	195.9		$	(11.3)	(5.8)	%	Rental revenue	$	141.9	$	134.6	$	7.3	5.4	%	$	(0.6)	$	10.3	$	14.7			$	43.2			$	156.0			$	188.1			$	(32.1)	(17.1)	%

Investment income	Investment income	—		—		—		—	%	—		—		20.1		39.9		20.1		39.9			(19.8)		(49.6)	%	Investment income	—		—		—		—	%	—		—		19.9				19.3				19.9				19.3				0.6		3.1	%
Other income	Other income	1.2		10.8		(9.6)		(88.9)	%	2.1		—		10.1		7.1		13.4		17.9			(4.5)		(25.1)	%	Other income	0.2		—		0.2		100.0	%	—		0.1		11.8				18.6				12.0				18.7				(6.7)		(35.8)	%
Total revenues	Total revenues	157.8		166.7		(8.9)		(5.3)	%	7.1		14.0		53.2		73.0		218.1		253.7			(35.6)		(14.0)	%	Total revenues	142.1		134.6		7.5		5.6	%	(0.6)		10.4		46.4				81.1				187.9				226.1				(38.2)		(16.9)	%

Property operating expenses	Property operating expenses	73.2		71.2		2.0		2.8	%	1.4		4.8		19.7		14.5		94.3		90.5			3.8		4.2	%	Property operating expenses	65.6		66.5		(0.9)		(1.4)	%	0.2		4.1		14.0				23.9				79.8				94.5				(14.7)		(15.6)	%
Transaction related costs		—		—		—		—	%	—		—		—		0.4		—		0.4			(0.4)		(100.0)	%

Marketing, general and administrative	Marketing, general and administrative	—		—		—		—	%	—		—		22.1		23.5		22.1		23.5			(1.4)		(6.0)	%	Marketing, general and administrative	—		—		—		—	%	—		—		24.8				22.9				24.8				22.9				1.9		8.3	%
		73.2		71.2		2.0		2.8	%	1.4		4.8		41.8		38.4		116.5		114.4			2.0		1.7	%		65.6		66.5		(0.9)		(1.4)	%	0.2		4.1		38.8				46.8				104.6				117.4				(12.8)		(10.9)	%

Other income (expenses):	Other income (expenses):																							Other income (expenses):
Interest expense and amortization of deferred financing costs, net of interest income	Interest expense and amortization of deferred financing costs, net of interest income																	(22.3)		(32.7)			10.4		(31.8)	%	Interest expense and amortization of deferred financing costs, net of interest income																					(17.0)				(27.2)				10.2		(37.5)	%
Depreciation and amortization	Depreciation and amortization																	(57.3)		(95.9)			38.6		(40.3)	%	Depreciation and amortization																					(47.0)				(63.0)				16.0		(25.4)	%
Equity in net loss from unconsolidated joint ventures	Equity in net loss from unconsolidated joint ventures																	(13.0)		(2.2)			(10.8)		490.9	%	Equity in net loss from unconsolidated joint ventures																					(4.7)				(2.9)				(1.8)		62.1	%
Equity in net gain on sale of interest in unconsolidated joint venture/real estate																		8.5		—			8.5		100.0	%
Equity in net loss on sale of interest in unconsolidated joint venture/real estate																						Equity in net loss on sale of interest in unconsolidated joint venture/real estate																				—				(12.6)				12.6				(100.0)	%
Purchase price and other fair value adjustments	Purchase price and other fair value adjustments																	(1.9)		—			(1.9)		100.0	%	Purchase price and other fair value adjustments																					(0.1)				2.7				(2.8)		(103.7)	%
Gain on sale of real estate, net																		99.0		64.9			34.1		52.5	%
Loss on sale of real estate, net																						Loss on sale of real estate, net																				(1.0)				(1.4)				0.4				(28.6)	%
Depreciable real estate reserves and impairment	Depreciable real estate reserves and impairment																	2.5		—			2.5		100.0	%	Depreciable real estate reserves and impairment																					—				(8.2)				8.2		(100.0)	%

Loan loss and other investment reserves, net of recoveries																		—		(6.8)			6.8		(100.0)	%

Net income																		$	117.1	$	66.6		$	50.5	75.8	%

Net income (loss)																						Net income (loss)																				$	13.5			$	(3.9)			$	17.4			(446.2)	%

6458

Table of Contents

Rental Revenue

Rental revenues decreased primarily due to Disposed Properties ($10.9 million), properties moved into redevelopment ($~~12.6 million) and our Disposed Properties ($9.0~~6.7 million), ~~partially offset by~~and the ~~addition~~deconsolidation of ~~885 Third Avenue to~~220 East 42nd Street as a result of the ~~consolidated portfolio in~~sale of a joint venture interest during the ~~first~~third quarter of 2021 ($~~10.8~~16.5 million).

The following table presents a summary of the commenced leasing activity for the three months ended ~~June 30, 2021~~March 31, 2022 in our Manhattan portfolio:


		Usable SF	Rentable SF	New Cash Rent (per rentable SF) (1)		Prev. Escalated Rent (per rentable SF) (2)		TI/LC per rentable SF		Free Rent (in months)	Average Lease Term (in years)		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	Manhattan											Manhattan
Space available at beginning of the period	Space available at beginning of the period	1,414,540										Space available at beginning of the period	1,638,009

Property out of redevelopment												Property out of redevelopment	107,612
Space which became available during the period (3)	Space which became available during the period (3)											Space which became available during the period (3)
• Office	• Office	181,190										• Office	371,968
• Retail	• Retail	1,384										• Retail	10,695

• Storage												• Storage	3,111
		182,574											385,774
Total space available	Total space available	1,597,114										Total space available	2,131,395
Leased space commenced during the period:	Leased space commenced during the period:											Leased space commenced during the period:
• Office(4)	• Office(4)	99,482	110,714	$	68.53	$	66.63	$	45.80	7.5	8.4	• Office(4)	237,557	269,385	$	66.72	$	74.00	$	79.40	9.2	9.0
• Retail	• Retail	12,306	14,845	$	79.42	$	159.83	$	31.32	5.9	12.6	• Retail	5,945	5,399	$	89.83	$	—	$	—	7.0	10.6
• Storage	• Storage	623	623	$	40.00	$	—	$	—	5.0	10.3	• Storage	2,946	3,191	$	28.75	$	31.25	$	5.79	9.0	10.0
Total leased space commenced	Total leased space commenced	112,411	126,182	$	69.67	$	73.01	$	43.87	7.3	8.9	Total leased space commenced	246,448	277,975	$	66.74	$	73.40	$	77.01	9.1	9.0

Total available space at end of period	Total available space at end of period	1,484,703										Total available space at end of period	1,884,947

Early renewals	Early renewals											Early renewals
• Office	• Office	124,147	134,549	$	82.43	$	84.80	$	0.57	1.7	2.3	• Office	24,679	27,031	$	87.40	$	85.70	$	18.29	1.6	3.1
• Retail	• Retail	2,364	2,551	$	226.06	$	226.06	$	—	—	0.8	• Retail	7,198	8,152	$	187.79	$	206.76	$	—	—	8.1
• Storage		2,248	2,262	$	28.09	$	28.09	$	—	0.5	1.4

Total early renewals	Total early renewals	128,759	139,362	$	84.18	$	86.47	$	0.55	1.6	2.3	Total early renewals	31,877	35,183	$	110.66	$	113.75	$	14.05	1.3	4.2

Total commenced leases, including replaced previous vacancy	Total commenced leases, including replaced previous vacancy											Total commenced leases, including replaced previous vacancy
• Office	• Office		245,263	$	76.16	$	78.90	$	20.99	4.3	5.1	• Office		296,416	$	68.61	$	75.26	$	73.83	8.5	8.5
• Retail	• Retail		17,396	$	100.92	$	182.94	$	26.73	5.1	10.8	• Retail		13,551	$	148.76	$	206.76	$	—	2.8	9.1
• Storage	• Storage		2,885	$	30.66	$	28.09	$	—	1.4	3.3	• Storage		3,191	$	28.75	$	31.25	$	5.79	9.0	10.0
Total commenced leases	Total commenced leases		265,544	$	77.28	$	81.99	$	21.13	4.3	5.4	Total commenced leases		313,158	$	71.67	$	78.81	$	69.94	8.3	8.5

(1)Annual initial base rent.

(2)Escalated rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment.

(3)Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants held over.

(4)Average starting office rent excluding new tenants replacing vacancies was ~~$67.01~~$65.71 per rentable square feet for ~~64,792~~224,300 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was ~~$77.42~~$68.04 per rentable square feet for ~~199,341~~251,331 rentable square feet.

Table of Contents

Investment Income

For the three months ended ~~June 30, 2021,~~March 31, 2022, investment income ~~decreased~~increased primarily as a result of ~~a decrease~~an increase in the ~~weighted average balance and~~ weighted average yield of our debt and preferred equity investments. For the three months ended ~~June 30, 2021 and 2020,~~March 31, 2022, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were ~~$1.2~~$1.1 billion and ~~7.1%~~7.3%, respectively, as compared to ~~$1.6~~$1.1 billion and ~~8.4%~~6.8%, ~~respectively.~~respectively, for the three months ended March 31, 2021.

Other Income

Other income decreased primarily due to ~~a decrease in~~lower lease termination income for the three months ended ~~June 30, 2021~~March 31, 2022 ($5.4 million) as compared to the same period in ~~2020.~~

~~Table of Contents~~

2021 ($9.9 million).

Property Operating Expenses

Property operating expenses ~~increased~~decreased primarily due to reduced variable expenses and real estate taxes at our Acquisition and Disposed Properties ($6.9 million and $3.9 million, respectively). Further decreases resulted from the ~~addition~~sale of ~~885 Third Avenue to~~a joint venture interest and deconsolidation of 220 East 42nd Street ($5.7 million) in the ~~consolidated portfolio ($6.1 million), rising variable operating expenses, such as utilities, cleaning,~~third quarter of 2021 and ~~security, and~~reduced real estate taxes at our Same-Store Properties ~~as a result of higher physical occupancy at the properties during the second quarter of 2021~~ ($~~1.6 million and $1.3 million, respectively). These increases were~~5.2 million), partially offset by ~~decreased operating~~increased variable expenses ~~and real estate taxes~~ at our ~~Disposed~~Same-Store Properties ($~~1.6 million and $1.5 million, respectively)~~4.3 million).

Marketing, General and Administrative Expenses

Marketing, general and administrative expenses ~~decreased~~increased primarily due to ~~$22.1 million~~an increase in rent expense for the ~~three months ended June 30, 2021, compared to $23.5 million for the same period in 2020 due to reduced compensation expense.~~Company's corporate offices at One Vanderbilt Avenue.

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

Interest expense and amortization of deferred financing costs, net of interest income, decreased primarily due to the deconsolidation of 220 East 42nd Street ($4.8 million), lower interest expense from ~~the 2017 revolving credit facility~~term loans ($~~3.7~~1.4 million) and ~~term loans~~senior unsecured notes ($~~1.7~~1.1 million) resulting from a decrease in ~~the average LIBOR rate~~balances outstanding during the three months ended ~~June 30, 2021~~March 31, 2022 as compared to the three months ended ~~June 30, 2020,~~March 31, 2021, and interest capitalization in connection with properties that are under development ($~~3.5~~1.5 million). The weighted average consolidated debt balance outstanding was ~~$5.3~~$4.2 billion for the three months ended ~~June 30, 2021,~~March 31, 2022, compared to ~~$6.2~~$5.4 billion for the three months ended ~~June 30, 2020.~~March 31, 2021. The consolidated weighted average interest rate was ~~2.82%~~3.01% for the three months ended ~~June 30, 2021,~~March 31, 2022, as compared to ~~2.77%~~2.88% for the three months ended ~~June 30, 2020.~~March 31, 2021.

Depreciation and Amortization

Depreciation and amortization decreased inat our Acquired Properties ($7.1 million), Disposed Properties ($3.0 million) and Same-Store Properties ($1.3 million) during the ~~first half of 2021 primarily~~three months ended March 31, 2022. Depreciation and amortization decreased further due to ~~accelerated depreciation at One Madison Avenue in~~ the ~~second~~deconsolidation of 220 East 42nd Street ($4.5 million) as a result of the interest sale during the third quarter of ~~2020 related to the property's redevelopment ($36.1 million) and decreased depreciation and amortization at our Same Store Properties ($6.0 million) and Disposed Properties ($1.0 million).~~2021.

Equity in net loss from unconsolidated joint ventures

Equity in net loss from unconsolidated joint ventures increased primarily as a result of higher depreciation expense at One Vanderbilt Avenue ($~~9.8 million), which went into service during the fourth quarter of 2020.~~

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

During the three months ended June 30, 2021, we recognized a gain on sale related to the sale of our interest in 605 West 42nd Street ($8.9 million). During the three months ended June 30, 2020, we did not sell any joint venture interests or properties.

~~Purchase price and other fair value adjustments~~

During the three months ended June 30, 2021, we recorded a $1.9 million fair value adjustment related to equity marketable securities. During the three months ended June 30, 2020, we did not record any purchase price and other fair value adjustments.

~~Gain on sale of real estate, net~~

During the three months ended June 30, 2021, we recognized a gain from the sale of 635-641 Sixth Avenue ($99.4 million). During the three months ended June 30, 2020, we recognized a gain from the sale of the retail condominium at 609 Fifth Avenue ($65.4 million).

~~Depreciable real estate reserves and impairment~~

During the three months ended June 30, 2021, we recognized depreciable real estate reserves and impairment related to 106 Spring Street ($2.8 million). During the three months ended June 30, 2020, we did not recognize any depreciable real estate reserves.

~~Loan loss and other investment reserves, net of recoveries~~

During the three months ended June 30, 2021 we did not recognize any loan loss and other investment reserves. During the three months ended June 30, 2020, we recorded $3.4 million of losses related to certain Debt and Preferred Equity investments that were sold and $3.4 million of loan loss and other investment reserves in conjunction with recording other financing receivables at the net amount expected to be collected.

~~Table of Contents~~

~~Comparison of the six months ended June 30, 2021 to the six months ended June 30, 2020~~

~~The following comparison for the six months ended June 30, 2021, or 2021, to the six months ended June 30, 2020, or 2020, makes reference to the effect of the following:~~

i.~~“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2020 and still owned by us in the same manner at June 30, 2021 (Same-Store Properties totaled 23~~ ~~of our 32 consolidated operating properties),~~

~~ii.~~“Acquisition Properties,” which represents all properties or interests in properties acquired in 2021 and 2020 and all non-Same-Store Properties, including properties that are under development, redevelopment or were deconsolidated during the period,

~~iii."Disposed Properties," which represents all properties or interests in properties sold or partially sold in 2021 and 2020, and~~

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

Same-Store Disposed Other Consolidated
(in millions) 2021 2020 $
Change %
Change 2021 2020 2021 2020 2021 2020 $
Change %
Change
Rental revenue $ 311.4 $ 322.9 $ (11.5) (3.6) % $ 12.3 $ 37.7 $ 49.0 $ 57.9 $ 372.7 $ 418.5 $ (45.8) (10.9) %
Investment income — — — — % — — 39.4 78.5 39.4 78.5 (39.1) (49.8) %
Other income 1.3 11.2 (9.9) (88.4) % 2.2 — 28.6 59.8 32.1 71.0 (38.9) (54.8) %
Total revenues 312.7 334.1 (21.4) (6.4) % 14.5 37.7 117.0 196.2 444.2 568.0 (123.8) (21.8) %
Property operating expenses 147.1 150.6 (3.5) (2.3) % 3.8 14.9 37.9 32.8 188.8 198.3 (9.5) (4.8) %
Transaction related costs — — — — % — — — 0.4 — 0.4 (0.4) (100.0) %
Marketing, general and administrative — — — — % — — 44.9 43.1 44.9 43.1 1.8 4.2 %
147.1 150.6 (3.5) (2.3) % 3.8 14.9 82.8 76.3 233.7 241.8 (8.1) (3.3) %
Other income (expenses):
Interest expense and amortization of deferred financing costs, net of interest income (49.5) (72.7) 23.2 (31.9) %
Depreciation and amortization (120.3) (164.2) 43.9 (26.7) %
Equity in net loss from unconsolidated joint ventures (15.8) (15.0) (0.8) 5.3 %
Equity in net loss on sale of interest in unconsolidated joint venture/real estate (4.2) — (4.2) 100.0 %
Purchase price and other fair value adjustments 0.7 — 0.7 100.0 %
Gain on sale of real estate, net 97.6 137.5 (39.9) (29) %
Depreciable real estate reserves and impairment (5.7) — (5.7) 100.0 %
Loan loss and other investment reserves, net of recoveries — (18.1) 18.1 (100.0) %
Net income $ 113.3 $ 193.7 $ (80.4) (41.5) %

~~Rental Revenue~~

Rental revenue decreased primarily due to our Disposed Properties ($25.5 million), properties moved into redevelopment ($23.9 million), and a lower contribution from our Same-Store Properties ($11.5 million) driven by increased vacancy at 1185 Avenue of the Americas ($5.8 million) and 485 Lexington Avenue ($2.6 million). This was partially offset by the addition of 885 Third Avenue to the consolidated portfolio in the first quarter of 2021 ($20.2 million).

~~Table of Contents~~

~~The following table presents a summary of the commenced leasing activity for the six months ended June 30, 2021 in our Manhattan and Suburban portfolio:~~

Usable
SF Rentable
SF
New
Cash
Rent (per
rentable
SF) (1)
Prev.
Escalated
Rent (per
rentable
SF) (2)
TI/LC
per
rentable
SF Free
Rent (in
months) Average
Lease
Term (in
years)
Manhattan
Space available at beginning of the period 1,717,735
Sold Vacancies (28,174)
Property in redevelopment (257,789)
Space which became available during the period (3)

•       Office 525,980
•       Retail 46,192
•       Storage —
572,172
Total space available 2,003,944
Leased space commenced during the period:
•       Office(4)
467,061 498,089 $ 68.99 $ 66.44 $ 81.68 7.6 9.9
•       Retail 51,557 52,909 $ 49.99 $ 78.58 $ 8.79 1.7 10.9
•       Storage 623 623 $ 40.00 $ — $ — 5.0 10.3
Total leased space commenced 519,241 551,621 $ 67.13 $ 68.31 $ 74.60 7.0 10.0
Total available space at end of period 1,484,703
Early renewals
•       Office 245,173 255,981 $ 68.81 $ 69.16 $ 0.38 1.3 1.7
•       Retail 39,013 66,230 $ 97.77 $ 86.26 $ — 0.6 4.8
•       Storage 2,248 2,262 $ 28.09 $ 28.09 $ — 0.5 1.4
Total early renewals 286,434 324,473 $ 74.44 $ 72.36 $ 0.30 1.2 2.3
Total commenced leases, including replaced previous vacancy
•       Office 754,070 $ 68.93 $ 67.86 $ 54.08 5.5 7.1
•       Retail 119,139 $ 76.55 $ 83.25 $ 3.90 1.1 7.5
•       Storage 2,885 $ 30.66 $ 28.09 $ — 1.4 3.3
Total commenced leases 876,094 $ 69.84 $ 70.49 $ 47.08 4.9 7.2

~~(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 $60.98 per rentable square feet for 235,985 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $65.06 per rentable square feet for 491,966 rentable square feet.

~~Investment Income~~

For the six months ended June 30, 2021, 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 six months ended June 30, 2021 and 2020, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $1.1 billion and 6.9% compared to $1.7 billion and 8.3%, respectively.

~~Other Income~~

Other income decreased primarily due to lower lease termination income for the six months ended June 30, 2021 ($9.9 million) as compared to the same period in 2020 ($56.7 million), offset by an increase in management and leasing income for the six months ended June 30, 2021 ($5.3 million).

~~Table of Contents~~

~~Property Operating Expenses~~

Property operating expenses decreased primarily due to reduced variable expenses and real estate taxes at our Disposed Properties ($5.2 million and $5.2 million, respectively) and reduced variable expenses at our Same-Store Properties ($4.9 million), partially offset by increased real estate taxes at our Same-Store Properties ($2.6 million).

~~Marketing, General and Administrative Expenses~~

Marketing, general and administrative expenses increased to $44.9 million for the six months ended June 30, 2021, compared to $43.1 million for the same period in 2020 due to an increase in stock based compensation expense as a result of a higher stock price.

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

Interest expense and amortization of deferred financing costs, net of interest income, decreased primarily due to lower interest expense from the 2017 revolving credit facility ($8.2 million), senior unsecured notes ($5.4 million) and term loans ($5.1 million) resulting from a decrease in the average LIBOR rate during the six months ended June 30, 2021 as compared to the six months ended June 30, 2020. In addition, interest decreased as a result of interest capitalization in connection with properties that are under development ($4.9 million). These reductions were partially offset by higher interest expense at 220 East 42nd Street ($6.8 million) during the six months ended June 30, 2021. The weighted average consolidated debt balance outstanding was $5.3 billion for the six months ended June 30, 2021, compared to $6.2 billion for the six months ended June 30, 2020. The consolidated weighted average interest rate was 2.85% for the six months ended June 30, 2021, as compared to 3.20% for the six months ended June 30, 2020.

~~Depreciation and Amortization~~

Depreciation and amortization decreased primarily due to accelerated depreciation in the first half of 2020 at One Madison Avenue related to the redevelopment of the property ($37.6 million) and decreased depreciation and amortization at our Same-Store Properties ($12.6 million).

~~Equity in net loss from unconsolidated joint ventures~~

~~Equity in net loss from unconsolidated joint ventures increased primarily as a result of higher depreciation expense at One Vanderbilt Avenue ($13.8~~7.8 million), partially offset by an increase in income from operations ~~primarily~~ at ~~2 Herald Square~~1515 Broadway ($~~6.1 million) and 280 Park Avenue ($4.0~~6.2 million).

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

During the ~~six~~three months ended June 30, 2021, we recognized a loss on the sale of our interest in 55 West 46th Street ($15.2 million) offset by a gain on the sale of our interest in 605 West 42nd Street ($8.9 million). During the six months ended June 30, 2020,March 31, 2022, we did not sell any joint venture interests or properties. During the three months ended March 31, 2021, we recognized a loss on sale related to our interests in 55 West 46th Street ($15.2 million).

Purchase price and other fair value adjustments

During the ~~six~~three months ended ~~June 30,~~March 31, 2022, we did not record any significant purchase price and other fair value adjustments. During the three months ended March 31, 2021, we recorded $2.7 million of purchase price and other fair value ~~adjustment gains~~adjustments related to One Madison Avenue, partially offset by a ($1.9 million) fair value adjustment related to equity marketable securities. During the six months ended June 30, 2020, we did not recorded any purchase price and other fair value adjustments.Avenue.

~~Gain~~Loss on sale of real estate, net

During the ~~six~~three months ended ~~June 30,~~March 31, 2022, we recognized a loss on sale related to our interest in 707 Eleventh Avenue ($0.8 million). During the three months ended March 31, 2021, we recognized a ~~gain from the~~loss on sale ~~of 635-641 Sixth~~related to our interest in 712 Madison Avenue ($~~99.4~~1.4 million). ~~During the six months ended June 30, 2020, we recognized a gain from the sales~~

Table of ~~315 West 33rd Street ($72.3 million) and the retail condominium at 609 Fifth Avenue ($65.4 million).~~Contents

Depreciable real estate reserves and impairment

During the ~~six~~three months ended ~~June 30,~~March 31, 2022, we did not recognize any depreciable real estate reserves and impairment. During the three months ended March 31, 2021, we recognized depreciable real estate reserves and impairments related to 400 East 57th Street ($5.7 million)~~. During the six months ended June 30, 2020, we did not recognize any depreciable real estate reserves.~~

~~Loan loss~~ and ~~other investment reserves, net of recoveries~~

During the six months ended June 30, 2021 we did not record any loan losses. During the six months ended June 30, 2020 we recorded $3.4 million of losses related to certain Debt and Preferred Equity investments that were sold and $14.7 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.

106 Spring Street ($2.7 million), offset by 133 Greene Street ($0.2 million).

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Liquidity and Capital Resources

We currently expect that ~~our~~the principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, acquisitions, development or redevelopment of properties, tenant improvements, leasing costs, share repurchases, dividends to shareholders, distributions to unitholders, repurchases or repayments of outstanding indebtedness and for debt and preferred equity investments will include:

(1)Cash flow from operations;

(2)Cash on hand;

(3)Net proceeds from divestitures of properties and redemptions, participations, dispositions and repayments of debt and preferred equity investments;

(4)Borrowings under the revolving credit facility;

(5)Other forms of secured or unsecured financing; and

(6)Proceeds from common or preferred equity or debt offerings by the Company or the Operating Partnership (including issuances of units of limited partnership interest in the Operating Partnership and Trust preferred securities).

Cash flow from operations is primarily dependent upon the collectability of rent, the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent, operating escalations and recoveries from our tenants and the level of operating and other costs. Additionally, we believe that our debt and preferred equity investment program will continue to serve as a source of operating cash flow.

The combined aggregate principal maturities of ~~our property~~ mortgages and other loans payable, ~~Master Repurchase Agreement ("MRA")~~the 2021 credit facility, senior unsecured notes (net of discount), ~~corporate obligations and~~trust preferred securities, our share of joint venture debt, including as-of-right extension options and put options, estimated interest expense, and our obligations under our financing and operating leases, as of ~~June 30, 2021~~March 31, 2022 were as follows (in thousands):

Remaining 2021 2022 2023 2024 2025 Thereafter Total
Property mortgages and other loans $ 183,532 $ 264,189 $ 566,583 $ 278,018 $ 812 $ 581,458 $ 1,874,592
MRA — — — — — — —
Corporate obligations 350,000 800,000 1,300,000 200,000 100,000 100,000 2,850,000
Joint venture debt-our share 212,756 227,603 491,064 622,408 1,424,406 2,580,425 5,558,662
Total $ 746,288 $ 1,291,792 $ 2,357,647 $ 1,100,426 $ 1,525,218 $ 3,261,883 $ 10,283,254


	Remaining 2022		2023		2024		2025		2026		Thereafter		Total
Property mortgages and other loans	$	407,223	$	56,640	$	338,077	$	873	$	904	$	580,332	$	1,384,049
Revolving credit facility	—		—		—		—		500,000		—		500,000
Unsecured term loans	—		—		200,000		—		—		1,050,000		1,250,000
Senior unsecured notes	800,000		—		—		100,000		—		—		900,000
Trust preferred securities	—		—		—		—		—		100,000		100,000
Financing leases	2,645		3,570		3,641		3,810		3,858		256,692		274,216
Operating leases	27,960		48,680		54,545		54,772		54,911		1,395,533		1,636,401
Estimated interest expense	94,851		116,214		111,418		88,476		70,216		45,307		526,482
Joint venture debt	422,442		750,696		626,671		1,431,734		107,230		2,435,913		5,774,686
Total	$	1,755,121	$	975,800	$	1,334,352	$	1,679,665	$	737,119	$	5,863,777	$	12,345,834

We estimate that for the remainder of the year ending December 31, 2022, we expect to incur $67.2 million of recurring capital expenditures on existing consolidated properties and $71.5 million of development or redevelopment expenditures on existing consolidated properties, of which $2.7 million will be funded by construction financing facilities or loan reserves. We expect our share of capital expenditures at our joint venture properties will be $171.9 million, of which $93.9 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.

As of ~~June 30, 2021,~~March 31, 2022, we had liquidity of ~~$1.8~~$1.1 billion, comprised of ~~$1.5~~$0.8 billion of availability under our revolving credit facility and $0.3 billion of consolidated cash on hand, inclusive of ~~$32.3~~$32.9 million of marketable securities. This liquidity excludes ~~$395.5~~$150.2 million representing our share of cash at unconsolidated joint venture properties. We may seek to divest of properties, interests in properties or debt and preferred equity investments or access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all. Management believes that these sources of liquidity, if we are able to access them, along with potential

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refinancing opportunities for secured and unsecured debt, will allow us to satisfy our debt obligations, as described above, upon maturity, if not before.

We have investments in several real estate joint ventures with various partners who we consider to be financially stable and who have the ability to fund a capital call when needed. Most of our joint ventures are financed with non-recourse debt. We believe that property level cash flows along with unfunded committed indebtedness and proceeds from the refinancing of outstanding secured indebtedness will be sufficient to fund the capital needs of our joint venture properties.

Cash Flows

The following summary discussion of our cash flows is based on our consolidated statements of cash flows in "Item 1. Financial Statements" and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

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Cash, restricted cash, and cash equivalents were ~~$316.5~~$307.3 million and ~~$1.1 billion at June 30,~~$401.6 million as of March 31, 2022 and 2021, ~~and 2020,~~ respectively, representing a decrease of ~~$784.8~~$94.3 million. The decrease was a result of the following changes in cash flows (in thousands):


		Six Months Ended June 30,							Three Months Ended March 31,
		2021		2020		Change			2022		2021		Change
Net cash provided by operating activities	Net cash provided by operating activities	$	103,264	$	224,305	$	(121,041)	Net cash provided by operating activities	$	81,402	$	18,602	$	62,800
Net cash provided by investing activities	Net cash provided by investing activities	$	641,521	$	403,819	$	237,702	Net cash provided by investing activities	13,496		20,181		(6,685)
Net cash (used in) provided by financing activities		$	(801,079)	$	231,729	$	(1,032,808)
Net cash used in financing activities								Net cash used in financing activities	(124,564)		(9,971)		(114,593)

Our principal sources of operating cash flow are the properties in our consolidated and joint venture portfolios and our debt and preferred equity portfolio. These sources generate a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service and fund dividend and distribution requirements.

Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria. During the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, when compared to the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, we used cash primarily for the following investing activities (in thousands):


~~Acquisitions of real estate~~	$	~~58,158~~
Capital expenditures and capitalized interest	~~65,221~~ $	(12,352)
Escrow cash-capital improvements/acquisition deposits/deferred purchase price	(15,000)
Joint venture investments	~~(19,880)~~9,628
Distributions from joint ventures	~~341,366~~ (3,603)
Proceeds from sales of real estate/partial interest in property	~~148,353~~29,194
Cash assumed from consolidation of real estate investment	~~9,475~~ (9,475)
Debt and preferred equity and other investments	~~(364,991)~~(5,077)
~~Increase~~Decrease in net cash provided by investing activities	$	~~237,702~~ (6,685)

Funds spent on capital expenditures, which are comprised of building and tenant improvements, ~~decreased~~increased from ~~$183.3~~$49.3 million for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 to ~~$118.1~~$61.7 million for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 due to ~~decreased~~increased spending on development and redevelopment projects.

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

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During the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, when compared to the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, we used cash for the following financing activities (in thousands):


Proceeds from our debt obligations	$	~~(1,327,424)~~(215,082)
Repayments of our debt obligations	~~36,801~~106,827
Net distribution to noncontrolling interests	~~(10,458)~~(451)
Other financing activities	~~21,982~~72,386
Proceeds from stock options exercised and DRSPP issuance	~~103~~ (262)

Repurchase of common stock	~~173,382~~ (67,108)
Redemption of preferred stock	~~56,169~~ (14,336)
~~Acquisition of subsidiary interest from noncontrolling interest~~	~~1,536~~
Dividends and distributions paid	~~15,101~~3,433
~~Decrease~~Increase in net cash ~~provided by~~used in financing activities	$	~~(1,032,808)~~(114,593)

Capitalization

Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, $0.01 par value per share. As of ~~June 30, 2021, 67,879,802~~March 31, 2022, 64,124,447 shares of common stock and no shares of excess stock were issued and outstanding.

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Share Repurchase Program

In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.

~~At June 30, 2021,~~As of March 31, 2022, share repurchases executed under the program, excluding the redemption of OP units, ~~executed under the program~~ were as follows:

~~(1) Includes 296,424 shares of common stock repurchased by the Company in June 2021 that were settled in July 2021.~~

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Period	Shares repurchased	Average price paid per share	Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017	7,865,206	$107.81	7,865,206
Year ended 2018	9,187,480	$102.06	17,052,686
Year ended 2019	4,333,260	$88.69	21,385,946
Year ended 2020	8,276,032	$64.30	29,661,978
Year ended 2021	4,474,649	$75.44	34,136,627
Three months ended March 31, 2022	1,971,092	$76.69	36,107,719

Dividend Reinvestment and Stock Purchase Plan ("DRSPP")


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Shares of common stock issued	Shares of common stock issued	1,551		3,791		7,034		5,518		Shares of common stock issued	1,132		5,320
Dividend reinvestments/stock purchases under the DRSPP	Dividend reinvestments/stock purchases under the DRSPP	$	116	$	198	$	467	$	364	Dividend reinvestments/stock purchases under the DRSPP	$	89	$	351

Fourth Amended and Restated 2005 Stock Option and Incentive Plan

The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the 2005 Plan. As of ~~June 30, 2021, 2.3~~March 31, 2022, 0.2 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.

Deferred Compensation Plan for Directors

As of ~~June 30, 2021,~~March 31, 2022, there were ~~161,139~~179,462 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.

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Indebtedness

The table below summarizes our consolidated mortgages and other loans payable, ~~2017~~2021 credit facility, senior unsecured notes and trust preferred securities outstanding ~~at June 30, 2021~~as of March 31, 2022 and December 31, ~~2020,~~2021, (amounts in thousands).


Debt Summary:	Debt Summary:	June 30, 2021			December 31, 2020			Debt Summary:	March 31, 2022			December 31, 2021
Balance	Balance							Balance
Fixed rate	Fixed rate	$	1,980,094		$	1,985,572		Fixed rate	$	1,971,239		$	1,974,324
Variable rate—hedged	Variable rate—hedged	1,950,000			1,150,000			Variable rate—hedged	1,350,000			1,300,000
Total fixed rate	Total fixed rate	3,930,094			3,135,572			Total fixed rate	3,321,239			3,274,324
Total variable rate	Total variable rate	795,902			1,827,677			Total variable rate	813,478			801,051
Total debt	Total debt	$	4,725,996		$	4,963,249		Total debt	$	4,134,717		$	4,075,375

Debt, preferred equity, and other investments subject to variable rate	Debt, preferred equity, and other investments subject to variable rate	308,351			345,877			Debt, preferred equity, and other investments subject to variable rate	$	302,217		$	294,970
Net exposure to variable rate debt	Net exposure to variable rate debt	$	487,551		$	1,481,800		Net exposure to variable rate debt	511,261			506,081

Percent of Total Debt:	Percent of Total Debt:							Percent of Total Debt:
Fixed rate	Fixed rate	83.2		%	63.2		%	Fixed rate	80.3		%	80.3		%
Variable rate (1)	Variable rate (1)	16.8		%	36.8		%	Variable rate (1)	19.7		%	19.7		%
Total	Total	100.0		%	100.0		%	Total	100.0		%	100.0		%
Effective Interest Rate for the Year:	Effective Interest Rate for the Year:							Effective Interest Rate for the Year:
Fixed rate	Fixed rate	3.08		%	3.65		%	Fixed rate	3.34		%	3.14		%
Variable rate	Variable rate	2.14		%	2.30		%	Variable rate	1.70		%	2.11		%
Effective interest rate	Effective interest rate	2.80		%	2.91		%	Effective interest rate	3.01		%	3.02		%

(1) Inclusive of the mitigating effect of our debt, preferred equity, and other investments subject to variable rate, the percent of total debt of our net exposure to variable rate debt was ~~11.0%~~13.3% and ~~32.1%~~13.4% as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR ~~(0.10%~~(0.45% and ~~0.14% at June 30, 2021~~0.10% as of March 31, 2022 and December 31, ~~2020,~~2021, respectively). As of December 6, 2021, the variable rate for our 2021 Credit facility bears interest at an interest rate based on adjusted Term SOFR (0.29% as of March 31, 2022). Our consolidated debt ~~at June 30, 2021~~as of March 31, 2022 had a weighted average term to maturity of ~~2.48~~3.46 years.

Certain of our debt and equity investments and other investments, with carrying values of ~~$0.3 billion at June 30, 2021~~$302.2 million as of March 31, 2022 and ~~$0.3 billion at~~$295.0 million as of December 31, ~~2020,~~2021, are variable rate investments which mitigate our exposure to interest rate changes on our unhedged variable rate debt. Inclusive of the mitigating effect of these investments, the net percent of our variable rate debt to total debt was ~~11.0%~~13.3% and ~~32.1%~~13.4%, respectively.

~~2017~~2021 Credit Facility

In ~~November 2017,~~December 2021, we entered into an ~~amendment to the~~amended and restated credit facility, referred to as the 2021 credit facility, that was previously amended by the Company in November 2017, or the 2017 credit facility, ~~that~~and was originally entered into by the Company in November 2012, or the 2012 credit facility. As of ~~June 30,~~March 31, 2022, the 2021 ~~the 2017~~ credit facility consisted of a ~~$1.5~~$1.25 billion revolving credit facility, a ~~$1.3~~$1.05 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,~~May 15 2026, May 15, 2027, and November 21, 2024, respectively. The revolving credit facility has two six-month as-of-right extension options to ~~March 31, 2023.~~May 15, 2027. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.

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As of ~~June 30, 2021,~~March 31, 2022, we had ~~$16.5~~$2.0 million of outstanding letters of credit, ~~$0.0~~$500.0 million drawn under the revolving credit facility and ~~$1.5~~$1.25 billion outstanding under the term loan facilities, with total undrawn capacity of ~~$1.5~~$0.75 billion under the ~~revolving~~2021 credit facility. ~~At June 30, 2021~~As of March 31, 2022 and December 31, ~~2020,~~2021, the revolving credit facility had a carrying value of ~~$(3.6)~~$492.0 million and ~~$105.3~~$381.3 million, respectively, net of deferred financing costs. ~~At June 30, 2021~~As of March 31, 2022 and December 31, ~~2020,~~2021, the term loan facilities had a carrying value of ~~$1.5~~$1.2 billion and ~~$1.5~~$1.2 billion, respectively, net of deferred financing costs.

The Company and the Operating Partnership are borrowers jointly and severally obligated under the ~~2017~~2021 credit facility.

The ~~2017~~2021 credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

Restrictive Covenants

The terms of the ~~2017~~2021 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, we were in compliance with all such covenants.

Interest Rate Risk

We are exposed to changes in interest rates primarily from our variable rate debt. Our exposure to interest rate fluctuations are managed through either the use of interest rate derivative instruments and/or through our variable rate debt and preferred equity investments. Based on the debt outstanding as of ~~June 30, 2021,~~March 31, 2022, a hypothetical 100 basis point increase in the floating rate interest rate curve would increase our consolidated annual interest cost, net of interest income from variable rate debt and preferred equity investments, by ~~$4.6~~$4.8 million and would increase our share of joint venture annual interest cost by ~~$11.3~~$13.8 million. ~~At June 30, 2021, 28.7%~~As of March 31, 2022, 27.3% of our $1.1 billion debt and preferred equity portfolio iswas 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 ~~$3.9~~$3.3 billion bears interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates. Our variable rate debt and variable rate joint venture debt as of ~~June 30, 2021~~March 31, 2022 bore interest based on a spread to LIBOR of ~~LIBOR plus 100~~120 basis points to ~~LIBOR plus~~ 340 basis ~~points.~~

~~Contractual Obligations~~

~~Refer~~points, and adjusted Term SOFR of 115 basis points to our 2020 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 six months ended June 30, 2021.130 basis points.

Off-Balance Sheet Arrangements

We have off-balance sheet investments, including joint ventures and debt and preferred equity investments. These investments all have varying ownership structures. A majority of our joint venture arrangements are accounted for under the equity method of accounting as we have the ability to exercise significant influence, but not control, over the operating and financial decisions of these joint venture arrangements. Our off-balance sheet arrangements are discussed in Note 5, "Debt and Preferred Equity Investments" and Note 6, "Investments in Unconsolidated Joint Ventures" in the accompanying consolidated financial statements.

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~~Capital Expenditures~~

We estimate that for the remainder of the year ending December 31, 2021, we expect to incur $57.1 million of recurring capital expenditures on existing consolidated properties and $91.0 million of development or redevelopment expenditures on existing consolidated properties, of which $5.3 million will be funded by construction financing facilities or loan reserves. We expect our share of capital expenditures at our joint venture properties will be $162.8 million, of which $122.6 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.

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.~~portfolio, and asset sales.

To maintain our qualification as a REIT, we must pay annual dividends to our stockholders of at least 90% of our REIT taxable income, determined before taking into consideration the dividends paid deduction and net capital gains.

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Any dividend we pay may be in the form of cash, stock or a combination thereof, subject to IRS limitations on the use of stock for dividends. Additionally, if our REIT taxable income in a particular year exceeds the amount of cash dividends we pay in that year, we may pay stock dividends in order to maintain our REIT status and avoid certain REIT-level taxes.

Before we pay any cash dividend, whether for Federal income tax purposes or otherwise, which would only be paid out of available cash to the extent permitted under the ~~2017~~2021 credit facility and senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.

Insurance

We maintain “all-risk” property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism, excluding nuclear, biological, chemical, and radiological terrorism ("NBCR")), within three property insurance programs and liability insurance. Separate property and liability coverage may be purchased on a stand-alone basis for certain assets, such as development projects. Additionally, one of our captive insurance companies, Belmont Insurance Company, or Belmont, provides coverage for NBCR terrorist acts above a specified trigger. Belmont's retention is reinsured by our other captive insurance company, Ticonderoga Insurance Company ("Ticonderoga"). If Belmont or Ticonderoga are required to pay a claim under our insurance policies, we would ultimately record the loss to the extent of required payments. However, there is no assurance that in the future we will be able to procure coverage at a reasonable cost. Further, if we experience losses that are uninsured or that exceed policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. Additionally, our debt instruments contain customary covenants requiring us to maintain insurance and we could default under our debt instruments if the cost and/or availability of certain types of insurance make it impractical or impossible to comply with such covenants relating to insurance. Belmont and Ticonderoga provide coverage solely on properties owned by the Company or its affiliates.

Furthermore, with respect to certain of our properties, including properties held by joint ventures or subject to triple net leases, insurance coverage is obtained by a third-party and we do not control the coverage. While we may have agreements with such third parties to maintain adequate coverage and we monitor these policies, such coverage ultimately may not be maintained or adequately cover our risk of loss.

Funds from Operations

FFO is a widely recognized non-GAAP financial measure of REIT performance. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended in December 2018, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of properties and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

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The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based compensation for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and real estate related impairment charges, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, and interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including our ability to make cash distributions.

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FFO for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ are as follows (in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Net income attributable to SL Green common stockholders		$	105,332	$	56,444	$	97,868	$	171,245
Net income (loss) attributable to SL Green common stockholders										Net income (loss) attributable to SL Green common stockholders	$	7,751	$	(7,464)
Add:	Add:									Add:
Depreciation and amortization	Depreciation and amortization	57,261		95,941		120,257		164,220		Depreciation and amortization	46,983		62,996
Joint venture depreciation and noncontrolling interest adjustments	Joint venture depreciation and noncontrolling interest adjustments	59,485		45,107		115,187		101,425		Joint venture depreciation and noncontrolling interest adjustments	60,432		55,702
Net income attributable to noncontrolling interests		6,242		4,093		4,267		10,002
Net income (loss) attributable to noncontrolling interests										Net income (loss) attributable to noncontrolling interests	349		(1,975)
Less:	Less:									Less:
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate		8,471		—		(4,158)		—
Equity in net loss on sale of interest in unconsolidated joint venture/real estate										Equity in net loss on sale of interest in unconsolidated joint venture/real estate	—		(12,629)
Depreciable real estate reserves and impairment	Depreciable real estate reserves and impairment	2,545		—		(5,696)		—		Depreciable real estate reserves and impairment	—		(8,241)
Gain on sale of real estate, net		98,960		64,884		97,572		137,520
Loss on sale of real estate, net										Loss on sale of real estate, net	(1,002)		(1,388)
Purchase price and other fair value adjustments	Purchase price and other fair value adjustments	—		—		2,664		—		Purchase price and other fair value adjustments	—		2,664
Depreciation on non-rental real estate assets	Depreciation on non-rental real estate assets	672		609		1,199		1,259		Depreciation on non-rental real estate assets	721		527
Funds from Operations attributable to SL Green common stockholders		$	117,672	$	136,092	$	245,998	$	308,113
Funds from Operations attributable to SL Green common stockholders and unit holders										Funds from Operations attributable to SL Green common stockholders and unit holders	$	115,796	$	128,326
Cash flows provided by operating activities	Cash flows provided by operating activities	$	84,662	$	182,279	$	103,264	$	224,305	Cash flows provided by operating activities	$	81,402	$	18,602
Cash flows provided by investing activities	Cash flows provided by investing activities	$	621,340	$	533,237	$	641,521	$	403,819	Cash flows provided by investing activities	13,496		20,181
Cash flows (used in) provided by financing activities		$	(791,108)	$	(235,255)	$	(801,079)	$	231,729
Cash flows used in financing activities										Cash flows used in financing activities	(124,564)		(9,971)

Inflation

Substantially all of our office leases provide for separate real estate tax and operating expense escalations as well as operating expense recoveries based on increases in the CPI or other measures such as porters' wage. In addition, many of the leases provide for fixed base rent increases. We believe that inflationary increases will be at least partially offset by the contractual rent increases and expense escalations described above.

Accounting Standards Updates

The Accounting Standards Updates are discussed in Note 2, "Significant Accounting Policies-Accounting Standards Updates" in the accompanying consolidated financial statements.

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Forward-Looking Information

This report includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this report that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate.

Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this report are subject to a number of risks and uncertainties that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. These risks and uncertainties include:

•the effect of general economic, business and financial conditions, and their effect on the New York City real estate market in particular;

•~~the effect of the on-going COVID-19 pandemic and the duration of 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. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

For quantitative and qualitative disclosure about market risk, see Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operation - Interest Rate Risk" in this Quarterly Report on Form 10-Q for the three ~~and six~~ months ended ~~June 30, 2021~~March 31, 2022 for the Company and the Operating Partnership and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk" in the Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 for the Company and the Operating Partnership. Our exposures to market risk have not changed materially since December 31, ~~2020.~~2021.

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ITEM 4. CONTROLS AND PROCEDURES

SL GREEN REALTY CORP.

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e) of the Exchange Act. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports. Also, the Company has investments in certain unconsolidated entities. As the Company does not control these entities, its disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those the Company maintains with respect to its consolidated subsidiaries.

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation as of the end of the period covered by this report, the Company's Chief Executive Officer and Chief Financial Officer concluded that its disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.

Changes in Internal Control over Financial Reporting

There have been no significant changes in the Company's internal control over financial reporting during the quarter ended ~~June 30, 2021~~March 31, 2022 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

SL GREEN OPERATING PARTNERSHIP, L.P.

Evaluation of Disclosure Controls and Procedures

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 ~~June 30, 2021~~March 31, 2022 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In September 2021, the Company acquired the fee position in 1591-1597 Broadway. The property was conveyed by the Company to a third party in May 2022, in connection with a settlement.

ITEM 1A. RISK FACTORS

As of ~~June 30, 2021~~March 31, 2022 there have been no material changes to the Risk Factors disclosed in "Part I. Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

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

In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we can buy shares of our common stock. The Board of Directors has since authorized five separate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, fourth quarter of 2018, fourth quarter of 2019, and fourth quarter of 2020 bringing the total program size to $3.5 billion.

~~At June 30, 2021,~~As of March 31, 2022, share repurchases executed under the program, excluding the redemption of OP units, ~~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 8,105,881 $104.61 8,105,881
Year ended 2018 9,468,617 $99.03 17,574,498
Year ended 2019 4,465,857 $86.06 22,040,355
Year Ended 2020 8,529,279 $62.39 30,569,634
Six months ended June 30, 2021 (1)
2,780,667 $71.51 33,350,301

~~(1) Includes 296,424 shares of common stock repurchased by the Company in June 2021 that were settled in July 2021.~~


Period	Shares repurchased	Average price paid per share	Total number of shares repurchased as part of the repurchase plan or programs
Year ended 2017	7,865,206	$107.81	7,865,206
Year ended 2018	9,187,480	$102.06	17,052,686
Year ended 2019	4,333,260	$88.69	21,385,946
Year ended 2020	8,276,032	$64.30	29,661,978
Year ended 2021	4,474,649	$75.44	34,136,627
Three months ended March 31, 2022	1,971,092	$76.69	36,107,719

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

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ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

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ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibits required by Item 601 of Regulation S-K are filed herewith or incorporated herein by reference and are listed in the attached Exhibit Index.


Exhibit No.						Description
31.1						Certification by the Chairman and Chief Executive Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2						Certification by the Chief Financial Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.3						Certification by the Chairman and Chief Executive Officer of the Company, the sole general partner of the Operating Partnership pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.4						Certification by the Chief Financial Officer of the Company, the sole general partner of the Operating Partnership pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.1						Certification by the Chairman and Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.2						Certification by the Chief Financial Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.3						Certification by the Chairman and Chief Executive Officer of the Company, the sole general partner of the Operating Partnership pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.4						Certification by the Chief Financial Officer of the Company, the sole general partner of the Operating Partnership pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
101						The following financial statements from SL Green Realty Corp. and SL Green Operating Partnership L.P.’s Quarterly Report on Form 10-Q for the quarter ended ~~June 30, 2021,~~March 31, 2022, formatted in Inline XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Capital (unaudited) (vi) Consolidated Statements of Cash Flows (unaudited), and (vii) Notes to Consolidated Financial Statements (unaudited), detail tagged and filed herewith.
104						Cover Page Interactive Data File (formatted as Inline XBRL in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SL GREEN REALTY CORP.

By:

SL Green Realty Corp.

/s/ Matthew J. DiLiberto

Dated: ~~August 6, 2021~~May 9, 2022

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)~~	~~August 6, 2021~~
~~Marc Holliday~~

~~/s/ Andrew W. Mathias~~	~~President and Director of SL Green, the sole general partner of the Operating Partnership~~	~~August 6, 2021~~
~~Andrew W. Mathias~~

~~/s/ Matthew J. DiLiberto~~	Chief Financial Officer of SL Green, the sole general partner of the Operating Partnership (Principal(Principal Financial and Accounting Officer)	~~August 6, 2021~~
~~Matthew J. DiLiberto~~

~~/s/ Stephen L. Green~~	Director of SL Green, the sole general partner of the Operating Partnership	~~August 6, 2021~~
~~Stephen L. Green~~

~~/s/ John H. Alschuler, Jr.~~	Director of SL Green, the sole general partner of the Operating Partnership	~~August 6, 2021~~
~~John H. Alschuler, Jr.~~

~~/s/ Edwin T. Burton, III~~	Director of SL Green, the sole general partner of the Operating Partnership	~~August 6, 2021~~
~~Edwin T. Burton, III~~

~~/s/ John S. Levy~~	Director of SL Green, the sole general partner of the Operating Partnership	~~August 6, 2021~~
~~John S. Levy~~

~~/s/ Craig M. Hatkoff~~	Director of SL Green, the sole general partner of the Operating Partnership	~~August 6, 2021~~
~~Craig M. Hatkoff~~

~~/s/ Betsy S. Atkins~~	Director of SL Green, the sole general partner of the Operating Partnership	~~August 6, 2021~~
~~Betsy S. Atkins~~

~~/s/ Lauren B. Dillard~~	Director of SL Green, the sole general partner of the Operating Partnership	~~August 6, 2021~~
~~Lauren B. Dillard~~

SIGNATURES

SL GREEN OPERATING PARTNERSHIP, L.P.

By:

/s/ Matthew J. DiLiberto

Dated: ~~August 6, 2021~~May 9, 2022

Matthew J. DiLiberto

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

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Property	Ownership Interest Disposed	Disposition Date	Gross Asset Valuation (in millions)		(Loss) Gain on Sale (in millions) (1) (2)
885 Third Avenue (3)	N/A	January 2021	N/A		N/A
55 West 46th Street - Tower 46	25.0%	March 2021	$	275.0	$	(15.2)
605 West 42nd Street - Sky	20.0%	June 2021	$	858.1	$	8.9


	Net unrealized loss on derivative instruments (1)		SL Green’s share of joint venture net unrealized loss on derivative instruments (2)		Net unrealized gain on marketable securities		Total
Balance at December 31, 2020	$	(57,415)	$	(10,853)	$	1,021	$	(67,247)
Other comprehensive loss before reclassifications	7,454		(19,320)		231		(11,635)
Amounts reclassified from accumulated other comprehensive loss	8,478		3,541		0		12,019
Balance at June 30, 2021	$	(41,483)	$	(26,632)	$	1,252	$	(66,863)


Property (1)	Year of Current Expiration	Year of Final Expiration (2)
1185 Avenue of the Americas	2043	2043
SL Green Headquarters at One Vanderbilt (3)	2043	2048
625 Madison Avenue	2022	2054
420 Lexington Avenue	2050	2080
885 Third Avenue	2080	2080
711 Third Avenue (4)	2033	2083
1080 Amsterdam Avenue (5)	2111	2111
15 Beekman (6)(7)	2119	2119


	Three Months Ended June 30,				Six Months Ended June 30,
Operating Lease Costs	2021		2020		2021		2020
Operating lease costs before capitalized operating lease costs	$	7,568	$	8,622	$	15,135	$	16,735
Operating lease costs capitalized	(861)		(791)		(1,689)		(1,537)
Operating lease costs, net (1)	$	6,707	$	7,831	$	13,446	$	15,198


	Three Months Ended June 30,				Six Months Ended June 30,
Financing Lease Costs	2021		2020		2021		2020
Interest on financing leases before capitalized interest	$	1,494	$	2,149	$	2,986	$	3,812
Interest on financing leases capitalized	0		(1,043)		0		(1,790)
Interest on financing leases, net (1)	1,494		1,106		2,986		2,022
Amortization of right-of-use assets (2)	180		305		360		610


Financing lease costs, net	$	1,674	$	1,411	$	3,346	$	2,632


	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	1,717,735

Sold Vacancies	(28,174)

Property in redevelopment	(257,789)
Space which became available during the period (3)
• Office	525,980
• Retail	46,192
• Storage	—
	572,172
Total space available	2,003,944
Leased space commenced during the period:
• Office(4)	467,061	498,089	$	68.99	$	66.44	$	81.68	7.6	9.9
• Retail	51,557	52,909	$	49.99	$	78.58	$	8.79	1.7	10.9
• Storage	623	623	$	40.00	$	—	$	—	5.0	10.3
Total leased space commenced	519,241	551,621	$	67.13	$	68.31	$	74.60	7.0	10.0

Total available space at end of period	1,484,703

Early renewals
• Office	245,173	255,981	$	68.81	$	69.16	$	0.38	1.3	1.7
• Retail	39,013	66,230	$	97.77	$	86.26	$	—	0.6	4.8
• Storage	2,248	2,262	$	28.09	$	28.09	$	—	0.5	1.4
Total early renewals	286,434	324,473	$	74.44	$	72.36	$	0.30	1.2	2.3

Total commenced leases, including replaced previous vacancy
• Office		754,070	$	68.93	$	67.86	$	54.08	5.5	7.1
• Retail		119,139	$	76.55	$	83.25	$	3.90	1.1	7.5
• Storage		2,885	$	30.66	$	28.09	$	—	1.4	3.3
Total commenced leases		876,094	$	69.84	$	70.49	$	47.08	4.9	7.2