x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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.) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller Reporting Company o |
(Do not check if a smaller reporting company) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller Reporting Company o |
(Do not check if a smaller reporting company) |
• | 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. |
• | consolidated financial statements; |
• | the following notes to the consolidated financial statements: |
◦ | Note 11, Noncontrolling Interests on the Company’s Consolidated Financial Statements; |
◦ | Note 12, Stockholders' Equity of the Company; |
◦ | Note 13, Partners' Capital of the Operating Partnership; |
◦ | Note 15, Accumulated Other Comprehensive Loss of the Company; |
◦ | Note 16, Accumulated Other Comprehensive Loss of the Operating Partnership. |
PART I. FINANCIAL INFORMATION | ||
FINANCIAL STATEMENTS OF SL GREEN REALTY CORP. | ||
FINANCIAL STATEMENTS OF SL GREEN OPERATING PARTNERSHIP, L.P. | ||
PART II. OTHER INFORMATION | ||
June 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
Assets | |||||||
Commercial real estate properties, at cost: | |||||||
Land and land interests | $ | 3,756,488 | $ | 3,844,518 | |||
Building and improvements | 8,397,117 | 8,778,593 | |||||
Building leasehold and improvements | 1,424,822 | 1,418,585 | |||||
Property under capital lease | 27,445 | 27,445 | |||||
13,605,872 | 14,069,141 | ||||||
Less: accumulated depreciation | (2,081,646 | ) | (1,905,165 | ) | |||
11,524,226 | 12,163,976 | ||||||
Assets held for sale | 420,569 | 462,430 | |||||
Cash and cash equivalents | 215,896 | 281,409 | |||||
Restricted cash | 128,234 | 149,176 | |||||
Investment in marketable securities | 46,251 | 39,429 | |||||
Tenant and other receivables, net of allowance of $16,369 and $18,068 in 2015 and 2014, respectively | 64,873 | 57,369 | |||||
Related party receivables | 11,395 | 11,735 | |||||
Deferred rents receivable, net of allowance of $23,656 and $27,411 in 2015 and 2014, respectively | 433,999 | 374,944 | |||||
Debt and preferred equity investments, net of discounts and deferred origination fees of $18,867 and $19,172 in 2015 and 2014, respectively | 1,685,234 | 1,408,804 | |||||
Investments in unconsolidated joint ventures | 1,262,723 | 1,172,020 | |||||
Deferred costs, net | 328,838 | 327,962 | |||||
Other assets | 1,144,720 | 647,333 | |||||
Total assets | $ | 17,266,958 | $ | 17,096,587 | |||
Liabilities | |||||||
Mortgages and other loans payable | $ | 5,287,934 | $ | 5,586,709 | |||
Revolving credit facility | 705,000 | 385,000 | |||||
Term loan and senior unsecured notes | 2,113,050 | 2,107,078 | |||||
Accrued interest payable and other liabilities | 161,188 | 137,634 | |||||
Accounts payable and accrued expenses | 147,028 | 173,246 | |||||
Deferred revenue | 337,571 | 187,148 | |||||
Capital lease obligations | 21,013 | 20,822 | |||||
Deferred land leases payable | 1,387 | 1,215 | |||||
Dividend and distributions payable | 66,026 | 64,393 | |||||
Security deposits | 67,985 | 66,614 | |||||
Liabilities related to assets held for sale | 178,252 | 266,873 | |||||
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | |||||
Total liabilities | 9,186,434 | 9,096,732 | |||||
Commitments and contingencies | — | — | |||||
Noncontrolling interests in Operating Partnership | 431,418 | 469,524 | |||||
Preferred units | 124,723 | 71,115 |
June 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
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, 2015 and December 31, 2014 | 221,932 | 221,932 | |||||
Common stock, $0.01 par value, 160,000 shares authorized and 103,233 and 100,928 issued and outstanding at June 30, 2015 and December 31, 2014, respectively (including 3,643 and 3,603 shares held in Treasury at June 30, 2015 and December 31, 2014, respectively) | 1,033 | 1,010 | |||||
Additional paid-in-capital | 5,570,746 | 5,289,479 | |||||
Treasury stock at cost | (325,207 | ) | (320,471 | ) | |||
Accumulated other comprehensive loss | (10,906 | ) | (6,980 | ) | |||
Retained earnings | 1,657,911 | 1,752,404 | |||||
Total SL Green stockholders' equity | 7,115,509 | 6,937,374 | |||||
Noncontrolling interests in other partnerships | 408,874 | 521,842 | |||||
Total equity | 7,524,383 | 7,459,216 | |||||
Total liabilities and equity | $ | 17,266,958 | $ | 17,096,587 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
Rental revenue, net | $ | 304,226 | $ | 279,608 | $ | 607,555 | $ | 535,584 | ||||||||
Escalation and reimbursement | 41,407 | 38,576 | 82,376 | 76,383 | ||||||||||||
Investment income | 45,191 | 39,714 | 87,260 | 93,798 | ||||||||||||
Other income | 18,250 | 22,734 | 28,182 | 37,312 | ||||||||||||
Total revenues | 409,074 | 380,632 | 805,373 | 743,077 | ||||||||||||
Expenses | ||||||||||||||||
Operating expenses, including $4,472 and $8,189 in 2015 and $4,567 and $8,080 in 2014 of related party expenses | 70,114 | 69,098 | 146,891 | 139,010 | ||||||||||||
Real estate taxes | 56,286 | 51,804 | 112,009 | 104,154 | ||||||||||||
Ground rent | 8,086 | 8,040 | 16,274 | 16,073 | ||||||||||||
Interest expense, net of interest income | 75,746 | 77,870 | 151,553 | 154,048 | ||||||||||||
Amortization of deferred financing costs | 5,952 | 5,401 | 12,567 | 9,058 | ||||||||||||
Depreciation and amortization | 199,565 | 93,379 | 307,902 | 179,894 | ||||||||||||
Transaction related costs | 3,067 | 1,697 | 4,210 | 4,171 | ||||||||||||
Marketing, general and administrative | 23,200 | 23,872 | 48,664 | 47,128 | ||||||||||||
Total expenses | 442,016 | 331,161 | 800,070 | 653,536 | ||||||||||||
(Loss) income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, purchase price fair value adjustment and loss on early extinguishment of debt | (32,942 | ) | 49,471 | 5,303 | 89,541 | |||||||||||
Equity in net income from unconsolidated joint ventures | 2,994 | 8,619 | 7,024 | 14,748 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 769 | 1,444 | 769 | 106,084 | ||||||||||||
Purchase price fair value adjustment | — | 71,446 | — | 71,446 | ||||||||||||
Loss on early extinguishment of debt | — | (1,028 | ) | (49 | ) | (1,025 | ) | |||||||||
(Loss) income from continuing operations | (29,179 | ) | 129,952 | 13,047 | 280,794 | |||||||||||
Net income from discontinued operations | — | 5,645 | 427 | 11,414 | ||||||||||||
Gain on sale of discontinued operations | — | 114,735 | 12,983 | 114,735 | ||||||||||||
Net (loss) income | (29,179 | ) | 250,332 | 26,457 | 406,943 | |||||||||||
Net loss (income) attributable to noncontrolling interests: | ||||||||||||||||
Noncontrolling interests in the Operating Partnership | 1,577 | (8,645 | ) | (166 | ) | (13,374 | ) | |||||||||
Noncontrolling interests in other partnerships | (6,626 | ) | (1,843 | ) | (12,553 | ) | (3,333 | ) | ||||||||
Preferred units distributions | (1,140 | ) | (565 | ) | (2,091 | ) | (1,130 | ) | ||||||||
Net (loss) income attributable to SL Green | (35,368 | ) | 239,279 | 11,647 | 389,106 | |||||||||||
Perpetual preferred stock dividends | (3,738 | ) | (3,738 | ) | (7,476 | ) | (7,475 | ) | ||||||||
Net (loss) income attributable to SL Green common stockholders | $ | (39,106 | ) | $ | 235,541 | $ | 4,171 | $ | 381,631 | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Amounts attributable to SL Green common stockholders: | ||||||||||||||||
(Loss) income from continuing operations before purchase price fair value adjustment, gains on sale and discontinued operations | $ | (39,846 | ) | $ | 49,134 | $ | (9,467 | ) | $ | 88,234 | ||||||
Purchase price fair value adjustment | — | 68,909 | — | 69,027 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 740 | 1,393 | 740 | 102,492 | ||||||||||||
Net income from discontinued operations | — | 5,445 | 411 | 11,028 | ||||||||||||
Gain on sale of discontinued operations | — | 110,660 | 12,487 | 110,850 | ||||||||||||
Net (loss) income attributable to SL Green common stockholders | $ | (39,106 | ) | $ | 235,541 | $ | 4,171 | $ | 381,631 | |||||||
Basic earnings per share: | ||||||||||||||||
(Loss) income from continuing operations before purchase price fair value adjustment, gains on sale and discontinued operations | $ | (0.40 | ) | $ | 0.52 | $ | (0.10 | ) | $ | 0.93 | ||||||
Purchase price fair value adjustment | — | 0.72 | — | 0.72 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 0.01 | 0.02 | 0.01 | 1.08 | ||||||||||||
Net income from discontinued operations | — | 0.05 | — | 0.12 | ||||||||||||
Gain on sale of discontinued operations | — | 1.16 | 0.13 | 1.16 | ||||||||||||
Net (loss) income attributable to SL Green common stockholders | $ | (0.39 | ) | $ | 2.47 | $ | 0.04 | $ | 4.01 | |||||||
Diluted earnings per share: | ||||||||||||||||
(Loss) income from continuing operations before purchase price fair value adjustment, gains on sale and discontinued operations | $ | (0.40 | ) | $ | 0.51 | $ | (0.10 | ) | $ | 0.92 | ||||||
Purchase price fair value adjustment | — | 0.72 | — | 0.72 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 0.01 | 0.02 | 0.01 | 1.07 | ||||||||||||
Net income from discontinued operations | — | 0.06 | — | 0.12 | ||||||||||||
Gain on sale of discontinued operations | — | 1.15 | 0.13 | 1.16 | ||||||||||||
Net (loss) income attributable to SL Green common stockholders | $ | (0.39 | ) | $ | 2.46 | $ | 0.04 | $ | 3.99 | |||||||
Dividends per share | $ | 0.60 | $ | 0.50 | $ | 1.20 | $ | 1.00 | ||||||||
Basic weighted average common shares outstanding | 99,579 | 95,455 | 98,994 | 95,288 | ||||||||||||
Diluted weighted average common shares and common share equivalents outstanding | 99,579 | 99,484 | 103,423 | 99,128 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net (loss) income | $ | (29,179 | ) | $ | 250,332 | $ | 26,457 | $ | 406,943 | ||||||
Other comprehensive income (loss): | |||||||||||||||
Change in net unrealized gain (loss) on derivative instruments, including SL Green's share of joint venture net unrealized gain (loss) on derivative instruments | 2,250 | 7,293 | (3,430 | ) | 7,461 | ||||||||||
Change in unrealized gain on marketable securities | (1,304 | ) | 1,659 | (654 | ) | 1,788 | |||||||||
Other comprehensive income (loss) | 946 | 8,952 | (4,084 | ) | 9,249 | ||||||||||
Comprehensive (loss) income | (28,233 | ) | 259,284 | 22,373 | 416,192 | ||||||||||
Net loss attributable to noncontrolling interests and preferred units distributions | (6,189 | ) | (11,053 | ) | (14,810 | ) | (17,837 | ) | |||||||
Other comprehensive (loss) income attributable to noncontrolling interests | (42 | ) | (276 | ) | 158 | (234 | ) | ||||||||
Comprehensive (loss) income attributable to SL Green | $ | (34,464 | ) | $ | 247,955 | $ | 7,721 | $ | 398,121 |
SL Green Realty Corp. Stockholders | |||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||
Series I Preferred Stock | Shares | Par Value | Additional Paid- In-Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | Total | |||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 221,932 | 97,325 | $ | 1,010 | $ | 5,289,479 | $ | (320,471 | ) | $ | (6,980 | ) | $ | 1,752,404 | $ | 521,842 | $ | 7,459,216 | ||||||||||||||||
Net income | 11,647 | 12,553 | 24,200 | ||||||||||||||||||||||||||||||||
Acquisition of subsidiary interest from noncontrolling interest | (9,566 | ) | (11,084 | ) | (20,650 | ) | |||||||||||||||||||||||||||||
Other comprehensive loss | (3,926 | ) | (3,926 | ) | |||||||||||||||||||||||||||||||
Preferred dividends | (7,476 | ) | (7,476 | ) | |||||||||||||||||||||||||||||||
DRSPP proceeds | 775 | 8 | 99,497 | 99,505 | |||||||||||||||||||||||||||||||
Conversion of units of the Operating Partnership to common stock | 321 | 3 | 37,989 | 37,992 | |||||||||||||||||||||||||||||||
Reallocation of noncontrolling interest in the Operating Partnership | 20,670 | 20,670 | |||||||||||||||||||||||||||||||||
Reallocation of capital account relating to sale | (10,144 | ) | (10,144 | ) | |||||||||||||||||||||||||||||||
Deferred compensation plan and stock award, net | 27 | 1,638 | (4,736 | ) | (3,098 | ) | |||||||||||||||||||||||||||||
Amortization of deferred compensation plan | 14,920 | 14,920 | |||||||||||||||||||||||||||||||||
Issuance of common stock | 987 | 10 | 124,989 | 124,999 | |||||||||||||||||||||||||||||||
Proceeds from stock options exercised | 155 | 2 | 11,800 | 11,802 | |||||||||||||||||||||||||||||||
Contributions to consolidated joint venture interests | 8,655 | 8,655 | |||||||||||||||||||||||||||||||||
Cash distributions to noncontrolling interests | (112,948 | ) | (112,948 | ) | |||||||||||||||||||||||||||||||
Cash distributions declared ($1.20 per common share, none of which represented a return of capital for federal income tax purposes) | (119,334 | ) | (119,334 | ) | |||||||||||||||||||||||||||||||
Balance at June 30, 2015 | $ | 221,932 | 99,590 | $ | 1,033 | $ | 5,570,746 | $ | (325,207 | ) | $ | (10,906 | ) | $ | 1,657,911 | $ | 408,874 | $ | 7,524,383 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Operating Activities | |||||||
Net income | $ | 26,457 | $ | 406,943 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 320,472 | 194,029 | |||||
Equity in net income from unconsolidated joint ventures | (7,024 | ) | (14,748 | ) | |||
Distributions of cumulative earnings from unconsolidated joint ventures | 22,464 | 14,645 | |||||
Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate | (769 | ) | (106,084 | ) | |||
Purchase price fair value adjustment | — | (71,446 | ) | ||||
Gain on sale of discontinued operations | (12,983 | ) | (114,735 | ) | |||
Loss on early extinguishment of debt | 49 | 1,025 | |||||
Deferred rents receivable | (65,260 | ) | (26,727 | ) | |||
Other non-cash adjustments | (3,592 | ) | (16,905 | ) | |||
Changes in operating assets and liabilities: | |||||||
Restricted cash—operations | (1,246 | ) | (4,850 | ) | |||
Tenant and other receivables | (6,826 | ) | 5,890 | ||||
Related party receivables | 340 | (853 | ) | ||||
Deferred lease costs | (35,918 | ) | (10,688 | ) | |||
Other assets | 11,410 | 5,305 | |||||
Accounts payable, accrued expenses and other liabilities and security deposits | (16,987 | ) | 12,973 | ||||
Deferred revenue and land leases payable | 2,872 | 2,788 | |||||
Net cash provided by operating activities | 233,459 | 276,562 | |||||
Investing Activities | |||||||
Acquisitions of real estate property | (42,556 | ) | (208,614 | ) | |||
Additions to land, buildings and improvements | (122,520 | ) | (134,249 | ) | |||
Escrowed cash—capital improvements/acquisition deposits | (229,853 | ) | (38,227 | ) | |||
Investments in unconsolidated joint ventures | (109,135 | ) | (170,532 | ) | |||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 49,059 | 157,699 | |||||
Proceeds from disposition of real estate/joint venture interest | 491,598 | 258,076 | |||||
Proceeds from sale of marketable securities | 295 | 3,555 | |||||
Purchases of marketable securities | (7,769 | ) | (10,025 | ) | |||
Other investments | (9,620 | ) | 20,594 | ||||
Origination of debt and preferred equity investments | (387,216 | ) | (256,730 | ) | |||
Repayments or redemption of debt and preferred equity investments | 109,784 | 60,412 | |||||
Net cash used in investing activities | (257,933 | ) | (318,041 | ) | |||
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Financing Activities | |||||||
Proceeds from mortgages and other loans payable | $ | 106,421 | $ | 1,601,603 | |||
Repayments of mortgages and other loans payable | (489,138 | ) | (1,496,224 | ) | |||
Proceeds from revolving credit facility and senior unsecured notes | 1,055,000 | 683,000 | |||||
Repayments of revolving credit facility and senior unsecured notes | (735,007 | ) | (520,690 | ) | |||
Proceeds from stock options exercised and DRSSP issuance | 111,307 | 19,777 | |||||
Proceeds from sale of common stock | 124,999 | 8,750 | |||||
Redemption of preferred unit | (200 | ) | — | ||||
Distributions to noncontrolling interests in other partnerships | (111,715 | ) | (4,352 | ) | |||
Contributions from noncontrolling interests in other partnerships | 8,655 | 1,548 | |||||
Distributions to noncontrolling interests in the Operating Partnership | (4,693 | ) | (3,598 | ) | |||
Dividends paid on common and preferred stock | (127,310 | ) | (102,943 | ) | |||
Other obligations related to mortgage loan participations | 25,000 | — | |||||
Deferred loan costs and capitalized lease obligation | (4,358 | ) | (43,981 | ) | |||
Net cash (used in) provided by financing activities | (41,039 | ) | 142,890 | ||||
Net (decrease) increase in cash and cash equivalents | (65,513 | ) | 101,411 | ||||
Cash and cash equivalents at beginning of year | 281,409 | 206,692 | |||||
Cash and cash equivalents at end of period | $ | 215,896 | $ | 308,103 | |||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||||||
Issuance of common stock as deferred compensation | $ | 1,638 | $ | 1,406 | |||
Issuance of units in the Operating Partnership | 25,241 | 19,460 | |||||
Redemption of units in the Operating Partnership | 37,992 | 23,066 | |||||
Derivative instruments at fair value | 2,000 | 17,088 | |||||
Exchange of debt investment for equity in joint venture | 10,151 | — | |||||
Transfer of restricted cash to operating cash and cash equivalents as a result of sale | 21,578 | — | |||||
Acquisition of subsidiary interest from noncontrolling interest | 20,630 | — | |||||
Tenant improvements and capital expenditures payable | 17,661 | 7,192 | |||||
Fair value adjustment to noncontrolling interest in the Operating Partnership | 20,670 | 107,925 | |||||
Transfer to net assets held for sale | 420,569 | 339,809 | |||||
Transfer to liabilities related to net assets held for sale | 178,252 | 193,375 | |||||
Transfer of financing receivable to debt investment | — | 19,675 | |||||
Deferred leasing payable | 5,525 | 659 | |||||
Consolidation of real estate | — | 1,316,591 | |||||
Issuance of preferred units | 53,808 | 4,000 |
June 30, 2015 | December 31, 2014 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Commercial real estate properties, at cost: | ||||||||
Land and land interests | $ | 3,756,488 | $ | 3,844,518 | ||||
Building and improvements | 8,397,117 | 8,778,593 | ||||||
Building leasehold and improvements | 1,424,822 | 1,418,585 | ||||||
Property under capital lease | 27,445 | 27,445 | ||||||
13,605,872 | 14,069,141 | |||||||
Less: accumulated depreciation | (2,081,646 | ) | (1,905,165 | ) | ||||
11,524,226 | 12,163,976 | |||||||
Assets held for sale | 420,569 | 462,430 | ||||||
Cash and cash equivalents | 215,896 | 281,409 | ||||||
Restricted cash | 128,234 | 149,176 | ||||||
Investment in marketable securities | 46,251 | 39,429 | ||||||
Tenant and other receivables, net of allowance of $16,369 and $18,068 in 2015 and 2014, respectively | 64,873 | 57,369 | ||||||
Related party receivables | 11,395 | 11,735 | ||||||
Deferred rents receivable, net of allowance of $23,656 and $27,411 in 2015 and 2014, respectively | 433,999 | 374,944 | ||||||
Debt and preferred equity investments, net of discounts and deferred origination fees of $18,867 and $19,172 in 2015 and 2014, respectively | 1,685,234 | 1,408,804 | ||||||
Investments in unconsolidated joint ventures | 1,262,723 | 1,172,020 | ||||||
Deferred costs, net | 328,838 | 327,962 | ||||||
Other assets | 1,144,720 | 647,333 | ||||||
Total assets | $ | 17,266,958 | $ | 17,096,587 | ||||
Liabilities | ||||||||
Mortgages and other loans payable | $ | 5,287,934 | $ | 5,586,709 | ||||
Revolving credit facility | 705,000 | 385,000 | ||||||
Term loan and senior unsecured notes | 2,113,050 | 2,107,078 | ||||||
Accrued interest payable and other liabilities | 161,188 | 137,634 | ||||||
Accounts payable and accrued expenses | 147,028 | 173,246 | ||||||
Deferred revenue | 337,571 | 187,148 | ||||||
Capital lease obligations | 21,013 | 20,822 | ||||||
Deferred land leases payable | 1,387 | 1,215 | ||||||
Dividend and distributions payable | 66,026 | 64,393 | ||||||
Security deposits | 67,985 | 66,614 | ||||||
Liabilities related to assets held for sale | 178,252 | 266,873 | ||||||
Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | ||||||
Total liabilities | 9,186,434 | 9,096,732 | ||||||
Commitments and contingencies | — | — | ||||||
Preferred units | 124,723 | 71,115 |
June 30, 2015 | December 31, 2014 | |||||||
(unaudited) | ||||||||
Capital | ||||||||
SLGOP partners' capital: | ||||||||
Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both June 30, 2015 and December 31, 2014 | 221,932 | 221,932 | ||||||
SL Green partners' capital (1,035 and 1,013 general partner common units and 98,555 and 96,312 limited partner common units outstanding at June 30, 2015 and December 31, 2014, respectively) | 7,240,315 | 7,078,924 | ||||||
Limited partner interests in SLGOP (3,907 and 3,973 limited partner common units outstanding at June 30, 2015 and December 31, 2014, respectively) | 96,020 | 113,298 | ||||||
Accumulated other comprehensive loss | (11,340 | ) | (7,256 | ) | ||||
Total SLGOP partners' capital | 7,546,927 | 7,406,898 | ||||||
Noncontrolling interests in other partnerships | 408,874 | 521,842 | ||||||
Total capital | 7,955,801 | 7,928,740 | ||||||
Total liabilities and capital | $ | 17,266,958 | $ | 17,096,587 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
Rental revenue, net | $ | 304,226 | $ | 279,608 | $ | 607,555 | $ | 535,584 | ||||||||
Escalation and reimbursement | 41,407 | 38,576 | 82,376 | 76,383 | ||||||||||||
Investment income | 45,191 | 39,714 | 87,260 | 93,798 | ||||||||||||
Other income | 18,250 | 22,734 | 28,182 | 37,312 | ||||||||||||
Total revenues | 409,074 | 380,632 | 805,373 | 743,077 | ||||||||||||
Expenses | ||||||||||||||||
Operating expenses, including $4,472 and $8,189 in 2015 and $4,567 and $8,080 in 2014 of related party expenses | 70,114 | 69,098 | 146,891 | 139,010 | ||||||||||||
Real estate taxes | 56,286 | 51,804 | 112,009 | 104,154 | ||||||||||||
Ground rent | 8,086 | 8,040 | 16,274 | 16,073 | ||||||||||||
Interest expense, net of interest income | 75,746 | 77,870 | 151,553 | 154,048 | ||||||||||||
Amortization of deferred financing costs | 5,952 | 5,401 | 12,567 | 9,058 | ||||||||||||
Depreciation and amortization | 199,565 | 93,379 | 307,902 | 179,894 | ||||||||||||
Transaction related costs | 3,067 | 1,697 | 4,210 | 4,171 | ||||||||||||
Marketing, general and administrative | 23,200 | 23,872 | 48,664 | 47,128 | ||||||||||||
Total expenses | 442,016 | 331,161 | 800,070 | 653,536 | ||||||||||||
(Loss) income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture/real estate, purchase price fair value adjustment and loss on early extinguishment of debt | (32,942 | ) | 49,471 | 5,303 | 89,541 | |||||||||||
Equity in net income from unconsolidated joint ventures | 2,994 | 8,619 | 7,024 | 14,748 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 769 | 1,444 | 769 | 106,084 | ||||||||||||
Purchase price fair value adjustment | — | 71,446 | — | 71,446 | ||||||||||||
Loss on early extinguishment of debt | — | (1,028 | ) | (49 | ) | (1,025 | ) | |||||||||
(Loss) income from continuing operations | (29,179 | ) | 129,952 | 13,047 | 280,794 | |||||||||||
Net income from discontinued operations | — | 5,645 | 427 | 11,414 | ||||||||||||
Gain on sale of discontinued operations | — | 114,735 | 12,983 | 114,735 | ||||||||||||
Net (loss) income | (29,179 | ) | 250,332 | 26,457 | 406,943 | |||||||||||
Net income attributable to noncontrolling interests in other partnerships | (6,626 | ) | (1,843 | ) | (12,553 | ) | (3,333 | ) | ||||||||
Preferred unit distributions | (1,140 | ) | (565 | ) | (2,091 | ) | (1,130 | ) | ||||||||
Net (loss) income attributable to SLGOP | (36,945 | ) | 247,924 | 11,813 | 402,480 | |||||||||||
Perpetual preferred unit distributions | (3,738 | ) | (3,738 | ) | (7,476 | ) | (7,475 | ) | ||||||||
Net (loss) income attributable to SLGOP common unitholders | $ | (40,683 | ) | $ | 244,186 | $ | 4,337 | $ | 395,005 | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Amounts attributable to SLGOP common unitholders: | ||||||||||||||||
(Loss) income from continuing operations before purchase price fair value adjustment, gains on sale and discontinued operations | $ | (41,452 | ) | $ | 50,916 | $ | (9,842 | ) | $ | 91,326 | ||||||
Purchase price fair value adjustment | — | 71,446 | — | 71,446 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 769 | 1,444 | 769 | 106,084 | ||||||||||||
Net income from discontinued operations | — | 5,645 | 427 | 11,414 | ||||||||||||
Gain on sale of discontinued operations | — | 114,735 | 12,983 | 114,735 | ||||||||||||
Net (loss) income attributable to SLGOP common unitholders | $ | (40,683 | ) | $ | 244,186 | $ | 4,337 | $ | 395,005 | |||||||
Basic earnings per unit: | ||||||||||||||||
(Loss) income from continuing operations before gains on sale and discontinued operations | $ | (0.40 | ) | $ | 0.52 | $ | (0.10 | ) | $ | 0.93 | ||||||
Purchase price fair value adjustment | — | 0.72 | — | 0.72 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 0.01 | 0.02 | 0.01 | 1.08 | ||||||||||||
Net income from discontinued operations | — | 0.05 | — | 0.12 | ||||||||||||
Gain on sale of discontinued operations | — | 1.16 | 0.13 | 1.16 | ||||||||||||
Net (loss) income attributable to SLGOP common unitholders | $ | (0.39 | ) | $ | 2.47 | $ | 0.04 | $ | 4.01 | |||||||
Diluted earnings per unit: | ||||||||||||||||
(Loss) income from continuing operations before gains on sale and discontinued operations | $ | (0.40 | ) | $ | 0.51 | $ | (0.10 | ) | $ | 0.92 | ||||||
Purchase price fair value adjustment | — | 0.72 | — | 0.72 | ||||||||||||
Equity in net gain on sale of interest in unconsolidated joint venture/real estate | 0.01 | 0.02 | 0.01 | 1.07 | ||||||||||||
Net income from discontinued operations | — | 0.06 | — | 0.12 | ||||||||||||
Gain on sale of discontinued operations | — | 1.15 | 0.13 | 1.16 | ||||||||||||
Net (loss) income attributable to SLGOP common unitholders | $ | (0.39 | ) | $ | 2.46 | $ | 0.04 | $ | 3.99 | |||||||
Dividends per unit | $ | 0.60 | $ | 0.50 | $ | 1.20 | $ | 1.00 | ||||||||
Basic weighted average common units outstanding | 103,487 | 98,970 | 102,930 | 98,627 | ||||||||||||
Diluted weighted average common units and common unit equivalents outstanding | 103,487 | 99,484 | 103,423 | 99,128 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net (loss) income | $ | (29,179 | ) | $ | 250,332 | $ | 26,457 | $ | 406,943 | |||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in net unrealized gain (loss) on derivative instruments, including SLGOP's share of joint venture net unrealized gain (loss) on derivative instruments | 2,250 | 7,293 | (3,430 | ) | 7,461 | |||||||||||
Change in unrealized gain on marketable securities | (1,304 | ) | 1,659 | (654 | ) | 1,788 | ||||||||||
Other comprehensive income (loss) | 946 | 8,952 | (4,084 | ) | 9,249 | |||||||||||
Comprehensive (loss) income | (28,233 | ) | 259,284 | 22,373 | 416,192 | |||||||||||
Net income attributable to noncontrolling interests | (6,626 | ) | (1,843 | ) | (12,553 | ) | (3,333 | ) | ||||||||
Comprehensive (loss) income attributable to SLGOP | $ | (34,859 | ) | $ | 257,441 | $ | 9,820 | $ | 412,859 |
SL Green Operating Partnership Unitholders | ||||||||||||||||||||||||||||||
General Partner | Limited Partners | |||||||||||||||||||||||||||||
Series I Preferred Units | Common Units | Common Unitholders | Common Units | Common Unitholders | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total | |||||||||||||||||||||||
Balance at December 31, 2014 | $ | 221,932 | 97,325 | $ | 7,078,924 | 3,973 | $ | 113,298 | $ | (7,256 | ) | $ | 521,842 | $ | 7,928,740 | |||||||||||||||
Net income | 7,476 | 4,171 | 166 | 12,553 | 24,366 | |||||||||||||||||||||||||
Acquisition of subsidiary interest from noncontrolling interest | (9,566 | ) | (11,084 | ) | (20,650 | ) | ||||||||||||||||||||||||
Other comprehensive loss | (4,084 | ) | (4,084 | ) | ||||||||||||||||||||||||||
Preferred distributions | (7,476 | ) | (7,476 | ) | ||||||||||||||||||||||||||
Issuance of common units | 255 | 25,241 | 25,241 | |||||||||||||||||||||||||||
DRSPP proceeds | 775 | 99,505 | 99,505 | |||||||||||||||||||||||||||
Conversion of units of the Operating Partnership to common stock | 321 | 37,992 | (321 | ) | (37,992 | ) | — | |||||||||||||||||||||||
Reallocation of capital account relating to sale | (10,144 | ) | (10,144 | ) | ||||||||||||||||||||||||||
Deferred compensation plan and stock award, net | 27 | (3,098 | ) | (3,098 | ) | |||||||||||||||||||||||||
Amortization of deferred compensation plan | 14,920 | 14,920 | ||||||||||||||||||||||||||||
Contribution to consolidated joint venture interest | 8,655 | 8,655 | ||||||||||||||||||||||||||||
Contributions - net proceeds from common stock offering | 987 | 124,999 | 124,999 | |||||||||||||||||||||||||||
Contributions - proceeds from stock options exercised | 155 | 11,802 | 11,802 | |||||||||||||||||||||||||||
Cash distributions to noncontrolling interests | (112,948 | ) | (112,948 | ) | ||||||||||||||||||||||||||
Cash distributions declared ($1.20 per common unit, none of which represented a return of capital for federal income tax purposes) | (119,334 | ) | (4,693 | ) | (124,027 | ) | ||||||||||||||||||||||||
Balance at June 30, 2015 | $ | 221,932 | 99,590 | $ | 7,240,315 | 3,907 | $ | 96,020 | $ | (11,340 | ) | $ | 408,874 | $ | 7,955,801 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Operating Activities | |||||||
Net income | $ | 26,457 | $ | 406,943 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 320,472 | 194,029 | |||||
Equity in net income from unconsolidated joint ventures | (7,024 | ) | (14,748 | ) | |||
Distributions of cumulative earnings from unconsolidated joint ventures | 22,464 | 14,645 | |||||
Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate | (769 | ) | (106,084 | ) | |||
Purchase price fair value adjustment | — | (71,446 | ) | ||||
Gain on sale of discontinued operations | (12,983 | ) | (114,735 | ) | |||
Loss on early extinguishment of debt | 49 | 1,025 | |||||
Deferred rents receivable | (65,260 | ) | (26,727 | ) | |||
Other non-cash adjustments | (3,592 | ) | (16,905 | ) | |||
Changes in operating assets and liabilities: | |||||||
Restricted cash—operations | (1,246 | ) | (4,850 | ) | |||
Tenant and other receivables | (6,826 | ) | 5,890 | ||||
Related party receivables | 340 | (853 | ) | ||||
Deferred lease costs | (35,918 | ) | (10,688 | ) | |||
Other assets | 11,410 | 5,305 | |||||
Accounts payable, accrued expenses and other liabilities and security deposits | (16,987 | ) | 12,973 | ||||
Deferred revenue and land leases payable | 2,872 | 2,788 | |||||
Net cash provided by operating activities | 233,459 | 276,562 | |||||
Investing Activities | |||||||
Acquisitions of real estate property | (42,556 | ) | (208,614 | ) | |||
Additions to land, buildings and improvements | (122,520 | ) | (134,249 | ) | |||
Escrowed cash—capital improvements/acquisition deposits | (229,853 | ) | (38,227 | ) | |||
Investments in unconsolidated joint ventures | (109,135 | ) | (170,532 | ) | |||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 49,059 | 157,699 | |||||
Proceeds from disposition of real estate/joint venture interest | 491,598 | 258,076 | |||||
Proceeds from sale of marketable securities | 295 | 3,555 | |||||
Purchases of marketable securities | (7,769 | ) | (10,025 | ) | |||
Other investments | (9,620 | ) | 20,594 | ||||
Origination of debt and preferred equity investments | (387,216 | ) | (256,730 | ) | |||
Repayments or redemption of debt and preferred equity investments | 109,784 | 60,412 | |||||
Net cash used in investing activities | (257,933 | ) | (318,041 | ) | |||
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Financing Activities | |||||||
Proceeds from mortgages and other loans payable | $ | 106,421 | $ | 1,601,603 | |||
Repayments of mortgages and other loans payable | (489,138 | ) | (1,496,224 | ) | |||
Proceeds from revolving credit facility, term loan and senior unsecured notes | 1,055,000 | 683,000 | |||||
Repayments of revolving credit facility, term loan and senior unsecured notes | (735,007 | ) | (520,690 | ) | |||
Proceeds from stock options exercised and DRSSP issuance | 111,307 | 19,777 | |||||
Proceeds from sale of common stock | 124,999 | 8,750 | |||||
Redemption of preferred units | (200 | ) | — | ||||
Distributions to noncontrolling interests in other partnerships | (111,715 | ) | (4,352 | ) | |||
Contributions from noncontrolling interests in other partnerships | 8,655 | 1,548 | |||||
Distributions paid on common and preferred units | (132,003 | ) | (106,541 | ) | |||
Other obligations related to mortgage loan participations | 25,000 | — | |||||
Deferred loan costs and capitalized lease obligation | (4,358 | ) | (43,981 | ) | |||
Net cash (used in) provided by financing activities | (41,039 | ) | 142,890 | ||||
Net (decrease) increase in cash and cash equivalents | (65,513 | ) | 101,411 | ||||
Cash and cash equivalents at beginning of year | 281,409 |