SL GREEN REALTY CORP. Overview
SL Green Realty Corp. , which is referred to as SL Green or the Company, aMaryland corporation, andSL Green Operating Partnership, L.P. , which is referred to as SLGOP or theOperating Partnership , aDelaware limited partnership, were formed inJune 1997 for the purpose of combining the commercial real estate business ofS.L. Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the acquisition, development, ownership, management and operation of commercial and residential real estate properties, principally office properties, located in theNew York metropolitan area. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including theOperating 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 endedDecember 31, 2019 . As ofMarch 31, 2020 , we owned the following interests in properties in theNew York metropolitan area, primarily in midtownManhattan . Our investments located outside ofManhattan are referred to as the Suburban properties: Consolidated Unconsolidated Total Approximate Approximate Approximate Property Number of Square Feet Number of Square Feet Number of Square Feet Weighted Average Location Type Properties (unaudited) Properties (unaudited) Properties (unaudited) Occupancy(1) (unaudited) Commercial: Manhattan Office 18 10,647,191 10 11,216,183 28 21,863,374 93.7 % Retail 4 44,189 8 289,050 12 333,239 98.0 % Development/Redevelopment 11 3,028,211 1 1,657,198 12 4,685,409 N/A Fee Interest - - 1 - 1 - - % 33 13,719,591 20 13,162,431 53 26,882,022 93.8 % Suburban Office 8 1,044,800 - - 8 1,044,800 85.5 % Retail 1 52,000 - - 1 52,000 100.0 % Development/Redevelopment - - - - - - - % 9 1,096,800 - - 9 1,096,800 86.2 % Total commercial properties 42 14,816,391 20 13,162,431 62 27,978,822 93.4 % Residential: Manhattan Residential 2 222,250 8 1,663,774 10 1,886,024 96.7 % Total residential properties 2 222,250 8 1,663,774 10 1,886,024 96.7 % Total portfolio 44 15,038,641 28 14,826,205 72 29,864,846 93.6 %
(1) The weighted average occupancy for commercial properties represents the total
occupied square footage divided by the total square footage at acquisition.
The weighted average occupancy for residential properties represents the
total occupied units divided by the total available units. Properties under
construction are not included in the calculation of weighted average
occupancy.
As ofMarch 31, 2020 , we also managed two office buildings owned by third parties encompassing approximately 2.1 million square feet (unaudited), and held debt and preferred equity investments with a book value of$1.9 billion , including$0.1 billion of debt and preferred equity investments and other financing receivables that are included in other balance sheet line items other than the Debt and Preferred Equity Investments line item. Critical Accounting Policies Refer to the 2019 Annual Report on Form 10-K of the Company and theOperating Partnership for a discussion of our critical accounting policies, which include investment in commercial real estate properties, investment in unconsolidated joint ventures, revenue recognition, reserve for possible credit losses and derivative instruments. During the three months endedMarch 31, 2020 , there were no material changes to these policies, other than the adoption of the Accounting Standards Codification Topic 326, Financial Instruments - Credit Losses, described in Note 2 - Significant Accounting Policies and Note 5 - Debt and Preferred Equity Investments to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q. 54
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Table of Contents
Results of Operations
Beginning in late 2019, a novel strain of Coronavirus ("COVID-19") began to
spread throughout the world, including the United States , ultimately being
declared a pandemic by the World Health Organization . Over the past several
months the pandemic has caused, and continues to cause, severe disruptions with
wide ranging impacts to the global economy and everyday life. We expect that our
business, results of operations, liquidity, cash flows, prospects, and our
ability to achieve forward-looking targets and expectations could be materially
and adversely affected for at least the duration of the COVID-19 pandemic and
possibly longer. This could also cause significant volatility in the trading
prices of our securities. The extent of the impact of the COVID-19 pandemic will
depend on future developments, including the duration, severity and spread of
the pandemic, health and safety actions taken to contain its spread, any
possible resurgence that may occur after the initial outbreak subsides and how
quickly and to what extent normal economic and operating conditions can resume.
Additionally, the COVID-19 pandemic could increase the magnitude of many of the
other risks described in our latest Annual Report on Form 10-K and other SEC
filings and may have other adverse effects on our operations that we are not
currently able to predict.
Comparison of the three months ended March 31, 2020 to the three months ended
March 31, 2019
The following comparison for the three months ended March 31, 2020 , or 2020, to
the three months ended March 31, 2019 , or 2019, makes reference to the effect of
the following:
i. "Same-Store Properties ," which represents all operating properties owned
by us at
operating properties),
ii. "
properties acquired in 2020 and 2019 and all non-
including properties that are under development or redevelopment,
iii. "Disposed Properties ," which represents all properties or interests in
properties sold in 2020 and 2019, and
iv. "Other," which represents properties where we sold an interest resulting
in deconsolidation and corporate level items not allocable to specific
properties, as well as the Service Corporation and eEmerge Inc.
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