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 ofSeptember 30, 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 Property Approximate Square Feet Approximate Square Feet Approximate Square Feet Weighted Average Location Type Number of Properties (unaudited) Number of Properties (unaudited) Number of Properties (unaudited) Occupancy(1) (unaudited) Commercial:Manhattan Office 18 10,647,191 11 11,841,483 29 22,488,674 93.1 % Retail 4 44,189 8 289,050 12 333,239 94.0 % Development/Redevelopment 10 2,908,362 2 1,755,610 12 4,663,972 N/A Fee Interest - - 1 - 1 - - % 32 13,599,742 22 13,886,143 54 27,485,885 93.1 % Suburban Office 8 1,044,800 - - 8 1,044,800 85.0 % Retail 1 52,000 - - 1 52,000 100.0 % Development/Redevelopment - - - - - - - % 9 1,096,800 - - 9 1,096,800 85.7 % Total commercial properties 41 14,696,542 22 13,886,143 63 28,582,685 92.7 % Residential:Manhattan Residential 1 82,250 8 1,663,774 9 1,746,024 78.8 % Total residential properties 1 82,250 8 1,663,774 9 1,746,024 78.8 % Total portfolio 42 14,778,792 30 15,549,917 72 30,328,709 91.9 % (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 ofSeptember 30, 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$1.15 billion , excluding$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 and nine months endedSeptember 30, 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. 59
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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 . 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 has also caused 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 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 September 30, 2020 to the three months
ended September 30, 2019
The following comparison for the three months ended September 30, 2020 , or 2020,
to the three months ended September 30, 2019 , or 2019, makes reference to the
effect of the following:
i."Same-Store Properties ," which represents all operating properties owned by us
at January 1, 2019 and still owned by us in the same manner at September 30,
2020 (Same-Store Properties totaled 30 of our 42 consolidated operating
properties),
ii."Acquisition Properties ," which represents all properties or interests in
properties acquired in 2020 and 2019 and all non-Same-Store Properties ,
including properties that are under development or redevelopment,
iii."Disposed Properties ," which represents all properties or interests in
properties sold in 2020 and 2019, and
iv."Other," which represents properties where we sold an interest resulting in
deconsolidation and corporate level items not allocable to specific properties,
as well as the Service Corporation and eEmerge Inc.
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